DURECT (DRRX) 10-Q 2 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 27, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		148,546,131

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 35,287	$ 5,404
Short-term investments	6,379	19,600
Accounts receivable (net of allowances of $94 at September 30, 2017 and $73 at December 31, 2016)	2,180	1,154
Inventories, net	3,155	3,782
Prepaid expenses and other current assets	2,877	2,486
Total current assets	49,878	32,426
Property and equipment (net of accumulated depreciation of $21,709 and $21,376 at September 30, 2017 and December 31, 2016, respectively)	1,045	1,297
Goodwill	6,399	6,399
Long-term restricted investments	150	150
Other long-term assets	282	236
Total assets	57,754	40,508
Current liabilities:
Accounts payable	2,058	2,086
Accrued liabilities	5,718	5,060
Contract research liabilities	728	783
Deferred revenue, current portion	16,002	968
Term loan, current portion, net	5,276	19,853
Total current liabilities	29,782	28,750
Deferred revenue, non-current portion	1,140	1,879
Term loan, non-current portion, net	14,623
Other long-term liabilities	2,170	1,541
Commitments and contingencies
Stockholders’ equity:
Common stock	15	14
Additional paid-in capital	462,031	448,404
Accumulated other comprehensive loss		(3)
Accumulated deficit	(452,007)	(440,077)
Stockholders’ equity	10,039	8,338
Total liabilities and stockholders’ equity	$ 57,754	$ 40,508

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Allowances for accounts receivable	$ 94	$ 73
Accumulated depreciation on property and equipment	$ 21,709	$ 21,376

Condensed Statements of Compreh

Condensed Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Collaborative research and development and other revenue	$ 5,602	$ 352	$ 7,304	$ 1,142
Product revenue, net	2,644	3,391	9,828	9,366
Revenue from sale of intellectual property rights	12,500		12,500
Total revenues	20,746	3,743	29,632	10,508
Operating expenses:
Cost of product revenues	3,105	2,180	5,572	4,335
Research and development	8,378	6,805	25,005	21,282
Selling, general and administrative	3,138	3,043	9,862	8,993
Total operating expenses	14,621	12,028	40,439	34,610
Income (Loss) from operations	6,125	(8,285)	(10,807)	(24,102)
Other income (expense):
Interest and other income	605	45	680	112
Interest expense	(619)	(592)	(1,803)	(1,708)
Net other expense	(14)	(547)	(1,123)	(1,596)
Net income (loss)	6,111	(8,832)	(11,930)	(25,698)
Net change in unrealized gain (loss) on available-for-sale securities, net of reclassification adjustments and taxes	3	(4)	3	20
Total comprehensive income (loss)	$ 6,114	$ (8,836)	$ (11,927)	$ (25,678)
Net income (loss) per share
Basic	$ 0.04	$ (0.06)	$ (0.08)	$ (0.20)
Diluted	$ 0.04	$ (0.06)	$ (0.08)	$ (0.20)
Weighted-average shares used in computing net income (loss) per share
Basic	147,213	137,933	143,873	130,990
Diluted	151,885	137,933	143,873	130,990

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (11,930)	$ (25,698)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Sale of intellectual property rights for non-operating purposes	(500)
Depreciation and amortization	333	309
Stock-based compensation	1,929	2,023
Inventory write-down	2,176	642
Amortization of debt issuance cost	46	89
Loss on debt extinguishment		9
Net accretion/amortization on investments	(61)	(172)
Changes in assets and liabilities:
Accounts receivable	(1,026)	973
Inventories	(50)	(366)
Prepaid expenses and other assets	(937)	1,398
Accounts payable	(28)	208
Accrued and other liabilities	1,897	583
Contract research liabilities	(55)	(20)
Deferred revenue	14,295	92
Total adjustments	18,019	5,768
Net cash provided by (used in) operating activities	6,089	(19,930)
Cash flows from investing activities
Sale of intellectual property rights for non-operating purposes	500
Purchases of property and equipment	(81)	(33)
Purchases of available-for-sale securities	(5,248)	(24,488)
Proceeds from maturities of available-for-sale securities	18,533	26,734
Net cash provided by investing activities	13,704	2,213
Cash flows from financing activities
Payments on equipment financing obligations	(10)	(16)
Payment of additional issuance cost for long-term debt		(173)
Payment of accrued final payment for long-term debt		(886)
Net proceeds from issuances of common stock	10,100	20,572
Net cash provided by financing activities	10,090	19,497
Net increase in cash and cash equivalents	29,883	1,780
Cash and cash equivalents, beginning of the period	5,404	3,583
Cash and cash equivalents, end of the period	35,287	5,363
Supplementary disclosure of non-cash financing information
Fully vested options issued to settle accrued liabilities	$ 1,600	$ 1,143

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
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 Epigenetics 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 September 30, 2017, the operating results and comprehensive income (loss) for the three and nine months ended September 30, 2017 and 2016, and cash flows for the nine months ended September 30, 2017 and 2016. The balance sheet as of December 31, 2016 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, 2016 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. Liquidity and Need to Raise Additional Capital As of September 30, 2017, the Company had an accumulated deficit of $452.0 million. Although the Company had positive cash flow in the three months ended September 30, 2017, primarily as a result of an upfront payment from Indivior for the assignment of certain patent rights, the Company historically has had negative cash flows from operating activities and expects its negative cash flows to continue. The Company will continue to require substantial funds to continue research and development, including clinical trials of its product candidates. Management’s plans in order to meet its operating cash flow requirements include seeking additional collaborative agreements for certain of its programs and achieving milestone and other payments under its collaboration and licensing agreements as well as financing activities such as public offerings and private placements of its common stock, preferred stock offerings, issuances of debt and convertible debt instruments. There are no assurances that such additional funding will be obtained and that the Company will succeed in its future operations. If the Company cannot successfully raise additional capital and implement its strategic development plan, its liquidity, financial condition and business prospects will be materially and adversely affected. 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 for a currently marketed animal health product and included in several products in development or awaiting regulatory approval. These inventories are capitalized based on management’s judgment of probable sale prior to their expiration dates. The valuation of inventory requires management to estimate the quantities of inventory that may become expired prior to use. The Company may be required to record a reserve for certain amounts of its inventory 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 October 2017, the Company announced that PERSIST, the Phase 3 clinical trial for POSIMIR ® ® The Company’s inventories consist of the following (in thousands): September 30, 2017 December 31, 2016 (unaudited) Raw materials $ 260 $ 745 Work in process 1,665 1,672 Finished goods 1,230 1,365 Total inventories, net $ 3,155 $ 3,782 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. For multiple-element arrangements, each deliverable within a multiple deliverable revenue arrangement is accounted for as a separate unit of accounting if both of the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis and (2) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the Company’s control. 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. Deferred revenue associated with a non-refundable payment received under a license and collaboration agreement for which the performance obligations are terminated will result in an immediate recognition of any remaining deferred revenue in the period that termination occurred provided that all performance obligations have been satisfied. From time-to-time, the Company also enters into sales of intellectual property rights under which it may receive upfront payments, contingent milestone payments and earn-outs from third party collaborators. The Company’s deliverable under these arrangements typically consists of sale of intellectual property rights, and does not contain any substantive continuing obligations subsequent to the transfer of the related rights, title, and interest to the buyer. The Company recognizes the upfront payment as revenue because such arrangement constitutes the Company's revenue-earning activities and is in line with its ordinary course of ongoing business operations. Research and development revenue related to services performed under the collaborative arrangements with the Company’s third-party collaborators is recognized as the related research and development services are performed. These research payments received under each respective agreement are not refundable and are generally based on reimbursement of qualified expenses, as defined in the agreements. Research and development expenses under the collaborative research and development agreements generally approximate or exceed the revenue recognized under such agreements over the term of the respective agreements. Deferred revenue may result when the Company does not expend the required level of effort during a specific period in comparison to funds received under the respective agreement. Milestone payments under collaborative arrangements are triggered either by the results of the Company’s research and development efforts or by specified sales results by a third-party collaborator. Milestones related to the Company’s development-based activities may include initiation of various phases of clinical trials, successful completion of a phase of development or results from a clinical trial, acceptance of a New Drug Application by the FDA or an equivalent filing with an equivalent regulatory agency in another territory, or regulatory approval by the FDA or by an equivalent regulatory agency in another territory. Due to the uncertainty involved in meeting these development-based milestones, the development-based milestones are considered to be substantive (i.e., not just achieved through passage of time) at the inception of the collaboration agreement. In addition, the amounts of the payments assigned thereto are considered to be commensurate with the enhancement of the value of the delivered intellectual property as a result of the Company’s performance. The Company’s involvement is generally necessary to the achievement of development-based milestones. The Company would account for development-based milestones as revenue upon achievement of the substantive milestone events. Milestones related to sales-based activities may be triggered upon events such as the first commercial sale of a product or when sales first achieve a defined level. Under the Company’s collaborative agreements, the Company’s third-party collaborators will take the lead in commercialization activities and the Company is typically not involved in the achievement of sales-based milestones. These sales-based milestones would be achieved after the completion of the Company’s development activities. The Company would account for the sales-based milestones in the same manner as royalties, with revenue recognized upon achievement of the milestone. In addition, upon the achievement of either development-based or sales-based milestone events, the Company has no future performance obligations related to any milestone payments. 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 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 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. The numerators and denominators in the calculation of basic and diluted net income (loss) per share were as follows: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Numerators: Net income (loss) 6,111 (8,832 ) (11,930 ) (25,698 ) Denominator: Weighted average shares used to compute basic net income (loss) per share 147,213 137,933 143,873 130,990 Dilutive common shares from stock options and ESPP 4,672 - - - Weighted average shares used to compute diluted net income (loss) per share 151,885 137,933 143,873 130,990 Net income (loss) per share: Basic $ 0.04 $ (0.06 ) $ (0.08 ) $ (0.20 ) Diluted $ 0.04 $ (0.06 ) $ (0.08 ) $ (0.20 ) Options to purchase approximately 20.0 million shares of common stock were excluded from the denominator in the calculation of diluted net loss per share for the nine months ended September 30, 2017, as the effect would be anti-dilutive. Options to purchase approximately 16.9 million and 18.8 million shares of common stock were excluded from the denominator in the calculation of diluted net loss per share for the three and nine months ended September 30, 2016, respectively, as the effect would be anti-dilutive. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09), 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 will be effective for the Company in the first quarter of 2018. The Company is in the process of identifying revenue streams for analysis and has begun its analysis of a major collaboration under the new standard. However, the Company has not yet completed its final analysis of the impact of this guidance. To date, the Company’s revenues have been derived from product sales, from license and collaboration agreements and from sale of intellectual property rights. Based on the Company’s preliminary analysis, it does not currently anticipate a material quantitative impact on product revenue as the timing of revenue recognition for product sales is not expected to significantly change. For the Company’s license and collaboration agreements, the consideration the Company is eligible to receive under these agreements typically consists of upfront payments, research and development funding, milestone payments, and royalties. For the Company’s agreements related to sale of intellectual property rights, the consideration the Company is eligible to receive under these agreements typically consists of upfront payments, milestone payments, and earn-outs. Each of the license and collaboration agreements and the agreements related to sale of intellectual property rights is unique and will need to be assessed separately under the five-step process under the new standard. The Company continues to review the impact that this new standard will have on its collaboration and license arrangements and intellectual property purchase agreements as well as on its financial statement disclosures. The Company will select the modified retrospective method to adopt the standard. In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). For lessees, leases will continue to be classified as either operating or financing in the income statement. This ASU becomes effective for the Company in the first quarter of fiscal year 2019 and early adoption is permitted. This ASU is required to be applied with a modified retrospective approach and requires application of the new standard at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact that ASU 2016-02 will have on its financial statements.

Strategic Agreements

Strategic Agreements	9 Months Ended
	Sep. 30, 2017
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 September 30, Nine months ended September 30, 2017 2016 2017 2016 Collaborator Sandoz AG (Sandoz) (1) $ 3,846 $ - $ 4,615 $ - Zogenix, Inc. (Zogenix) (2) 750 63 835 503 Santen Pharmaceutical Co. Ltd. (Santen) (3) 85 110 234 420 Pain Therapeutics, Inc. (Pain Therapeutics) 4 153 109 163 Others 917 26 1,511 56 Total collaborative research and development and other revenue $ 5,602 $ 352 $ 7,304 $ 1,142 (1) Amounts related to ratable recognition of upfront fees were $3.8 million and $4.6 million for the three and nine months ended September 30, 2017, respectively, compared to zero for the corresponding periods in 2016. (2) Amounts related to ratable recognition of upfront fees were $750,000 and $833,000 for the three and nine months ended September 30, 2017, respectively, compared to $52,000 and $156,000 for the corresponding periods in 2016. In August 2017, we and Zogenix terminated the Development and License Agreement between us dated July 11, 2011 relating to the development and commercialization of Relday. As a result, we recognized as revenue all of the remaining upfront fees in the three months ended September 30, 2017 that had previously been deferred. (3) Amounts related to ratable recognition of upfront fees were $48,000 and $153,000 for the three and nine months ended September 30, 2017, respectively, compared to $57,000 and $171,000 for the corresponding periods in 2016. Agreement with Sandoz AG In May 2017, the Company and Sandoz AG (“Sandoz”) entered into a license agreement to develop and market POSIMIR in the United States. Following expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ( ® The Company evaluated the agreement under the accounting guidance for multiple element arrangements and identified three deliverables: the license to develop and market POSIMIR, the research and development services and the manufacturing services. Given that the delivery of the manufacturing services by the Company is dependent upon approval of POSIMIR by the FDA, and that the fee to be received by the Company for these services, should they be delivered, is consistent with their estimated selling price, the Company considers the manufacturing services to be a contingent deliverable and has excluded them from the initial measurement and allocation of the arrangement consideration. The Company evaluated the license deliverable and concluded that it did not have stand alone value separate from the research and development services and accordingly combined these deliverables into a single unit of accounting. The Company allocated the arrangement consideration, which consists of the $20.0 million upfront payment, to this single unit of accounting and will recognize this revenue ratably over the term of its estimated performance period under the agreement, which is the term over which the research and development services are provided. The effect of a change made to the estimated performance period, and the related ratably recognized revenue, would occur on a prospective basis in the period that the change was made. The Company considers the development and regulatory milestones to be substantive, and will recognize the associated milestone payments as revenue when the underlying milestone events are achieved. Total collaborative research and development revenue recognized by the Company for Sandoz was $3.8 million and $4.6 million for the three and nine months ended September 30, 2017 respectively, compared with zero for the corresponding periods in 2016. The cumulative aggregate payments received by the Company from Sandoz as of September 30, 2017 were $20.0 million under this agreement. Patent Purchase Agreement with Indivior On September 26, 2017, the Company entered into a Patent Purchase Agreement (the “Agreement”) with Indivior UK Limited (“Indivior”). Pursuant to the Agreement, the Company has assigned to Indivior certain patents that may provide further intellectual property protection for RBP-7000, Indivior’s investigational once-monthly injectable risperidone product for the treatment of schizophrenia. In consideration for such assignment, Indivior has made an upfront non-refundable payment to DURECT of $12.5 million, and has also agreed to make an additional $5 million payment to DURECT contingent upon the achievement of a regulatory milestone, as well as quarterly earn-out payments that are based on a single digit percentage of U.S. net sales for certain products covered by the assigned patent rights, including RBP-7000. The assigned patent rights include granted patents extending through at least 2026. DURECT also receives a non-exclusive right under the assigned patents to develop and commercialize certain risperidone-containing products and products that do not contain risperidone or buprenorphine. The agreement contains customary representations, warranties and indemnities of the parties. The Company received the payment of $12.5 million from Indivior in September 2017 and recognized the $12.5 million as revenue from sale of intellectual property rights in the three months ended September 30, 2017 as the Company does not have any continuing obligations under the purchase agreement. 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 ER and other oral sustained release, abuse deterrent opioid products incorporating four specified opioid drugs, using the ORADUR technology. This agreement currently covers only REMOXY ER. 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 $3.0 million in performance milestone payments based on the successful development and approval of REMOXY ER. Of these potential milestones, all $3.0 million are development-based milestones. There are no sales-based milestones under the agreement. As of September 30, 2017, the Company had received $1.5 million in cumulative milestone payments. In March 2016, Pain Therapeutics resubmitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA), and in September 2016, Pain Therapeutics received a Complete Response Letter from the FDA for REMOXY ER. Based on its review, the FDA has determined that the NDA cannot be approved in its present form and specifies additional actions and data that are needed for drug approval. Total collaborative research and development revenue recognized for REMOXY-related work performed by the Company for Pain Therapeutics was $4,000 and $109,000 for the three and nine months ended September 30, 2017, compared with $153,000 and $163,000 for the corresponding periods in 2016. The cumulative aggregate payments received by the Company from Pain Therapeutics as of September 30, 2017 were $40.4 million under this agreement. The Company recognized no product revenue related to key excipients for REMOXY ER for each of the three and nine months ended September 30, 2017 compared to $374,000 and $653,000 for the corresponding periods in 2016. The associated cost of goods sold were zero for each of the three and nine months ended September 30, 2017, compared to $92,000 and $216,000 for the corresponding periods in 2016. Pursuant to the Company’s 2002 agreement with Pain Therapeutics, the Company is to be the exclusive supplier of certain defined excipients for products in the 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 was 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 potentially in combination with Zogenix’s DosePro® needle-free, subcutaneous drug delivery system. DURECT was responsible for non-clinical, formulation and CMC development activities. The Company was to be reimbursed by Zogenix for its research and development efforts on the product. 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 had been recognized as collaborative research and development revenue ratably over the term of the Company’s research and development involvement with Zogenix with respect to this product candidate. 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 retained the right to supply Zogenix’s Phase 3 clinical trial and commercial product requirements on the terms set forth in the Zogenix Agreement. Zogenix was permitted to terminate the Zogenix Agreement without cause at any time upon prior written notice, and either party was permitted to terminate the Zogenix Agreement upon certain circumstances including written notice of a material uncured breach. In August 2017, the Company and Zogenix terminated the Zogenix Agreement. Under the mutual termination agreement, Zogenix’s development and commercialization rights are returned to the Company, and Zogenix will transfer to the Company all regulatory filings and development information related to Relday. As a result of the termination of the Zogenix agreement, the Company recognized revenue during the third quarter of 2017 for the remaining $750,000 of deferred revenue related to the upfront fee as the Company had no remaining performance obligations under the agreement; this recognition of revenue did not result in additional cash proceeds to the Company. 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 September 30, 2017 were $20.1 million under these agreements. Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Ratable recognition of upfront payment $ 750 $ 52 $ 833 $ 156 Research and development expenses reimbursable by Zogenix - 11 2 347 Total collaborative research and development revenue $ 750 $ 63 $ 835 $ 503 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 controls and funds the development and commercialization program, and the parties 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 September 30, 2017). 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 low double digits, determined on a country-by-country basis. 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 $2.0 million upfront fee had been recognized as collaborative research and development revenue ratably over the term of the Company’s research and development involvement with Santen with respect to this product candidate. As of September 30, 2017, the cumulative aggregate payments received by the Company under this agreement were $3.3 million. The following table provides a summary of collaborative research and development revenue recognized under the Santen Agreement (in thousands). Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Ratable recognition of upfront payment $ 48 $ 57 $ 153 $ 171 Research and development expenses reimbursable by Santen 37 53 81 249 Total collaborative research and development revenue $ 85 $ 110 $ 234 $ 420

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 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 September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Money market funds $ 534 $ — $ — $ 534 Certificates of deposit 150 — — 150 Commercial paper 39,513 — — 39,513 U.S. Government agencies 1,000 — — 1,000 $ 41,197 $ — $ — $ 41,197 Reported as: Cash and cash equivalents $ 34,668 $ — $ — $ 34,668 Short-term investments 6,379 — — 6,379 Long-term restricted investments 150 — — 150 $ 41,197 $ — $ — $ 41,197 December 31, 2016 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Money market funds $ 693 $ — $ — $ 693 Certificates of deposit 150 — — 150 Commercial paper 4,947 — — 4,947 Corporate debt 2,644 — (1 ) 2,643 U.S. Government agencies 14,461 1 (3 ) 14,459 $ 22,895 $ 1 $ (4 ) $ 22,892 Reported as: Cash and cash equivalents $ 3,142 $ — $ — $ 3,142 Short-term investments 19,603 1 (4 ) 19,600 Long-term restricted investments 150 — — 150 $ 22,895 $ 1 $ (4 ) $ 22,892 The following is a summary of the cost and estimated fair value of available-for-sale securities at September 30, 2017, by contractual maturity (in thousands): September 30, 2017 Amortized Cost Estimated Fair Value Mature in one year or less $ 40,663 $ 40,663 $ 40,663 $ 40,663 There were no securities that have had an unrealized loss for more than 12 months as of September 30, 2017. As of September 30, 2017, 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	9 Months Ended
	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	Note 4. Stock-Based Compensation In the first quarter of 2017, the Company elected to adopt ASU 2016-09, Improvement to Employee Share-based Payment, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as equity or liabilities, an option to recognize gross share compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The Company elected to account for forfeitures as they occur, therefore, share-based compensation expense for the nine months ended September 30, 2017 has been calculated based on actual forfeitures, rather than the Company’s previous approach which was net of estimated forfeitures. The Company’s adoption of ASU 2016-09 in the first quarter of 2017 did not have a material impact on its financial statements. As of September 30, 2017, the Company has three stock-based compensation plans. The stock-based compensation cost that has been included in the statements of comprehensive income (loss) is shown as below (in thousands): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Cost of product revenues $ 27 $ 27 $ 83 $ 80 Research and development 374 362 1,057 1,072 Selling, general and administrative 301 227 789 871 Total stock-based compensation $ 702 $ 616 $ 1,929 $ 2,023 As of September 30, 2017 and December 31, 2016, $13,000 and $14,000 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 and shares purchased under its employee stock purchase plan for the three and nine months ended September 30, 2017 and 2016: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Stock Options Risk-free rate 2.0-2.3% 1.4-1.6% 2.0-2.5% 1.3-1.9% Expected dividend yield — — — — Expected life of option (in years) 6.8-10.0 7.0-10.0 6.8-10.0 6.5-10.0 Volatility 75-81% 76-82% 75-82% 76-83% Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Employee Stock Purchase Plan Risk-free rate 1.0% 0.4% 0.6-1.0% 0.3-0.4% Expected dividend yield — — — — Expected life of option (in years) 0.5 0.5 0.5 0.5 Volatility 44% 66% 44-81% 66-68%

Term Loan

Term Loan	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Term Loan	Note 5. Term Loan In July 2016, the Company renegotiated the terms of its $20.0 million secured single-draw term loan with Oxford Finance LLC (Oxford Finance) with such renegotiated terms being formalized in a new Loan and Security Agreement (the “2016 Loan Agreement”). The 2016 Loan Agreement supersedes the 2014 Loan Agreement with Oxford Finance and the 2015 amendment to such agreement. The 2016 Loan Agreement provides for interest only payments for the first 18 months, followed by consecutive monthly payments of principal and interest in arrears starting on March 1, 2018 and continuing through the maturity date of the term loan of August 1, 2020. The 2016 Loan Agreement also provides for a floating interest rate (7.95% initially and 8.54% as of September 30, 2017) based on an index rate plus a spread, a $150,000 facility fee that was paid at closing and an additional payment equal to 9.25% 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 of prepayment. The facility fee and other debt offering/issuance costs have been recorded as debt discount on the Company’s balance sheet and together with the final $1.9 million payment are being amortized to interest expense during 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 2016 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 2016 Loan Agreement also contains customary indemnification obligations and customary events of default, including, among other things, the Company’s failure to fulfill certain obligations of the Company under the 2016 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 2016 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 2016 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. As of September 30, 2017, the Company was in compliance with all material covenants under the Loan Agreement and the Company believes that there have been no material adverse changes. In accordance with ASC 470-10-45-2, the term loan had been reclassified to a current liability from a non-current liability on the Company’s balance sheet as of December 31, 2016 due to recurring losses, liquidity concerns and a subjective acceleration clause in the Company’s 2016 Loan Agreement. In May 2017, the Company signed an agreement with Sandoz whereby Sandoz will have the exclusive commercialization rights to POSIMIR (SABER-bupivacaine) in the United States. Consequently, the Company has sufficient resources to meet its plans for the next twelve months following the issuance of these financial statements. As a result, that portion of the term loan that is due more than 12 months after September 30, 2017 has been reclassified within non-current liabilities. The fair value of the term loan approximates the carrying value. Future maturities and interest payments under the term loan as of September 30, 2017, are as follows (in thousands): Three months ended December 31, 2017 $ 406 2018 8,698 2019 8,724 2020 6,641 Total minimum payments 24,469 Less amount representing interest (4,469 ) Gross balance of term loan 20,000 Less unamortized debt discount (101 ) Carrying value of term loan 19,899 Less term loan, current portion, net (5,276 ) Term loan, non-current portion, net $ 14,623

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Stockholders' Equity	Note 6. Stockholders’ Equity During the three months ended September 30, 2017, the Company raised net proceeds (net of commissions) of approximately $4.7 million from the sale of 2,984,660 shares of the Company’s common stock in the open market at a weighted average price of $1.64 per share, through its Controlled Equity Offering sales agreement with Cantor Fitzgerald, entered into in November 2015 (Controlled Equity Offering). During the nine months ended September 30, 2017, the Company raised net proceeds (net of commission) of approximately $9.6 million from the sale of 6.6 million shares of common stock at a weighted average price of $1.49 per share in the open market through the Controlled Equity Offering. As of October 27, 2017, the Company had up to approximately $20.3 million of common stock available for sale under the Controlled Equity Offering program and approximately $67.8 million of common stock available for sale under its shelf registration statement.

Summary of Significant Accoun12

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
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 Epigenetics 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 September 30, 2017, the operating results and comprehensive income (loss) for the three and nine months ended September 30, 2017 and 2016, and cash flows for the nine months ended September 30, 2017 and 2016. The balance sheet as of December 31, 2016 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, 2016 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.
Liquidity and Need to Raise Additional Capital	Liquidity and Need to Raise Additional Capital As of September 30, 2017, the Company had an accumulated deficit of $452.0 million. Although the Company had positive cash flow in the three months ended September 30, 2017, primarily as a result of an upfront payment from Indivior for the assignment of certain patent rights, the Company historically has had negative cash flows from operating activities and expects its negative cash flows to continue. The Company will continue to require substantial funds to continue research and development, including clinical trials of its product candidates. Management’s plans in order to meet its operating cash flow requirements include seeking additional collaborative agreements for certain of its programs and achieving milestone and other payments under its collaboration and licensing agreements as well as financing activities such as public offerings and private placements of its common stock, preferred stock offerings, issuances of debt and convertible debt instruments. There are no assurances that such additional funding will be obtained and that the Company will succeed in its future operations. If the Company cannot successfully raise additional capital and implement its strategic development plan, its liquidity, financial condition and business prospects will be materially and adversely affected.
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 for a currently marketed animal health product and included in several products in development or awaiting regulatory approval. These inventories are capitalized based on management’s judgment of probable sale prior to their expiration dates. The valuation of inventory requires management to estimate the quantities of inventory that may become expired prior to use. The Company may be required to record a reserve for certain amounts of its inventory 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 October 2017, the Company announced that PERSIST, the Phase 3 clinical trial for POSIMIR ® ® The Company’s inventories consist of the following (in thousands): September 30, 2017 December 31, 2016 (unaudited) Raw materials $ 260 $ 745 Work in process 1,665 1,672 Finished goods 1,230 1,365 Total inventories, net $ 3,155 $ 3,782
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. For multiple-element arrangements, each deliverable within a multiple deliverable revenue arrangement is accounted for as a separate unit of accounting if both of the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis and (2) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the Company’s control. 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. Deferred revenue associated with a non-refundable payment received under a license and collaboration agreement for which the performance obligations are terminated will result in an immediate recognition of any remaining deferred revenue in the period that termination occurred provided that all performance obligations have been satisfied. From time-to-time, the Company also enters into sales of intellectual property rights under which it may receive upfront payments, contingent milestone payments and earn-outs from third party collaborators. The Company’s deliverable under these arrangements typically consists of sale of intellectual property rights, and does not contain any substantive continuing obligations subsequent to the transfer of the related rights, title, and interest to the buyer. The Company recognizes the upfront payment as revenue because such arrangement constitutes the Company's revenue-earning activities and is in line with its ordinary course of ongoing business operations. Research and development revenue related to services performed under the collaborative arrangements with the Company’s third-party collaborators is recognized as the related research and development services are performed. These research payments received under each respective agreement are not refundable and are generally based on reimbursement of qualified expenses, as defined in the agreements. Research and development expenses under the collaborative research and development agreements generally approximate or exceed the revenue recognized under such agreements over the term of the respective agreements. Deferred revenue may result when the Company does not expend the required level of effort during a specific period in comparison to funds received under the respective agreement. Milestone payments under collaborative arrangements are triggered either by the results of the Company’s research and development efforts or by specified sales results by a third-party collaborator. Milestones related to the Company’s development-based activities may include initiation of various phases of clinical trials, successful completion of a phase of development or results from a clinical trial, acceptance of a New Drug Application by the FDA or an equivalent filing with an equivalent regulatory agency in another territory, or regulatory approval by the FDA or by an equivalent regulatory agency in another territory. Due to the uncertainty involved in meeting these development-based milestones, the development-based milestones are considered to be substantive (i.e., not just achieved through passage of time) at the inception of the collaboration agreement. In addition, the amounts of the payments assigned thereto are considered to be commensurate with the enhancement of the value of the delivered intellectual property as a result of the Company’s performance. The Company’s involvement is generally necessary to the achievement of development-based milestones. The Company would account for development-based milestones as revenue upon achievement of the substantive milestone events. Milestones related to sales-based activities may be triggered upon events such as the first commercial sale of a product or when sales first achieve a defined level. Under the Company’s collaborative agreements, the Company’s third-party collaborators will take the lead in commercialization activities and the Company is typically not involved in the achievement of sales-based milestones. These sales-based milestones would be achieved after the completion of the Company’s development activities. The Company would account for the sales-based milestones in the same manner as royalties, with revenue recognized upon achievement of the milestone. In addition, upon the achievement of either development-based or sales-based milestone events, the Company has no future performance obligations related to any milestone payments.
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 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 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. The numerators and denominators in the calculation of basic and diluted net income (loss) per share were as follows: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Numerators: Net income (loss) 6,111 (8,832 ) (11,930 ) (25,698 ) Denominator: Weighted average shares used to compute basic net income (loss) per share 147,213 137,933 143,873 130,990 Dilutive common shares from stock options and ESPP 4,672 - - - Weighted average shares used to compute diluted net income (loss) per share 151,885 137,933 143,873 130,990 Net income (loss) per share: Basic $ 0.04 $ (0.06 ) $ (0.08 ) $ (0.20 ) Diluted $ 0.04 $ (0.06 ) $ (0.08 ) $ (0.20 ) Options to purchase approximately 20.0 million shares of common stock were excluded from the denominator in the calculation of diluted net loss per share for the nine months ended September 30, 2017, as the effect would be anti-dilutive. Options to purchase approximately 16.9 million and 18.8 million shares of common stock were excluded from the denominator in the calculation of diluted net loss per share for the three and nine months ended September 30, 2016, respectively, as the effect would be anti-dilutive.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09), 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 will be effective for the Company in the first quarter of 2018. The Company is in the process of identifying revenue streams for analysis and has begun its analysis of a major collaboration under the new standard. However, the Company has not yet completed its final analysis of the impact of this guidance. To date, the Company’s revenues have been derived from product sales, from license and collaboration agreements and from sale of intellectual property rights. Based on the Company’s preliminary analysis, it does not currently anticipate a material quantitative impact on product revenue as the timing of revenue recognition for product sales is not expected to significantly change. For the Company’s license and collaboration agreements, the consideration the Company is eligible to receive under these agreements typically consists of upfront payments, research and development funding, milestone payments, and royalties. For the Company’s agreements related to sale of intellectual property rights, the consideration the Company is eligible to receive under these agreements typically consists of upfront payments, milestone payments, and earn-outs. Each of the license and collaboration agreements and the agreements related to sale of intellectual property rights is unique and will need to be assessed separately under the five-step process under the new standard. The Company continues to review the impact that this new standard will have on its collaboration and license arrangements and intellectual property purchase agreements as well as on its financial statement disclosures. The Company will select the modified retrospective method to adopt the standard. In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). For lessees, leases will continue to be classified as either operating or financing in the income statement. This ASU becomes effective for the Company in the first quarter of fiscal year 2019 and early adoption is permitted. This ASU is required to be applied with a modified retrospective approach and requires application of the new standard at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact that ASU 2016-02 will have on its financial statements.

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Summary of Components of Inventories	The Company’s inventories consist of the following (in thousands): September 30, 2017 December 31, 2016 (unaudited) Raw materials $ 260 $ 745 Work in process 1,665 1,672 Finished goods 1,230 1,365 Total inventories, net $ 3,155 $ 3,782
Summary of Numerators and Denominators in Calculation of Basic and Diluted Net Income (Loss) per Share	The numerators and denominators in the calculation of basic and diluted net income (loss) per share were as follows: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Numerators: Net income (loss) 6,111 (8,832 ) (11,930 ) (25,698 ) Denominator: Weighted average shares used to compute basic net income (loss) per share 147,213 137,933 143,873 130,990 Dilutive common shares from stock options and ESPP 4,672 - - - Weighted average shares used to compute diluted net income (loss) per share 151,885 137,933 143,873 130,990 Net income (loss) per share: Basic $ 0.04 $ (0.06 ) $ (0.08 ) $ (0.20 ) Diluted $ 0.04 $ (0.06 ) $ (0.08 ) $ (0.20 )

Strategic Agreements (Tables)

Strategic Agreements (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, Nine months ended September 30, 2017 2016 2017 2016 Collaborator Sandoz AG (Sandoz) (1) $ 3,846 $ - $ 4,615 $ - Zogenix, Inc. (Zogenix) (2) 750 63 835 503 Santen Pharmaceutical Co. Ltd. (Santen) (3) 85 110 234 420 Pain Therapeutics, Inc. (Pain Therapeutics) 4 153 109 163 Others 917 26 1,511 56 Total collaborative research and development and other revenue $ 5,602 $ 352 $ 7,304 $ 1,142 (1) Amounts related to ratable recognition of upfront fees were $3.8 million and $4.6 million for the three and nine months ended September 30, 2017, respectively, compared to zero for the corresponding periods in 2016. (2) Amounts related to ratable recognition of upfront fees were $750,000 and $833,000 for the three and nine months ended September 30, 2017, respectively, compared to $52,000 and $156,000 for the corresponding periods in 2016. In August 2017, we and Zogenix terminated the Development and License Agreement between us dated July 11, 2011 relating to the development and commercialization of Relday. As a result, we recognized as revenue all of the remaining upfront fees in the three months ended September 30, 2017 that had previously been deferred. (3) Amounts related to ratable recognition of upfront fees were $48,000 and $153,000 for the three and nine months ended September 30, 2017, respectively, compared to $57,000 and $171,000 for the corresponding periods in 2016.
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 September 30, 2017 were $20.1 million under these agreements. Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Ratable recognition of upfront payment $ 750 $ 52 $ 833 $ 156 Research and development expenses reimbursable by Zogenix - 11 2 347 Total collaborative research and development revenue $ 750 $ 63 $ 835 $ 503
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 September 30, Nine months ended September 30, 2017 2016 2017 2016 Ratable recognition of upfront payment $ 48 $ 57 $ 153 $ 171 Research and development expenses reimbursable by Santen 37 53 81 249 Total collaborative research and development revenue $ 85 $ 110 $ 234 $ 420

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Money market funds $ 534 $ — $ — $ 534 Certificates of deposit 150 — — 150 Commercial paper 39,513 — — 39,513 U.S. Government agencies 1,000 — — 1,000 $ 41,197 $ — $ — $ 41,197 Reported as: Cash and cash equivalents $ 34,668 $ — $ — $ 34,668 Short-term investments 6,379 — — 6,379 Long-term restricted investments 150 — — 150 $ 41,197 $ — $ — $ 41,197 December 31, 2016 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Money market funds $ 693 $ — $ — $ 693 Certificates of deposit 150 — — 150 Commercial paper 4,947 — — 4,947 Corporate debt 2,644 — (1 ) 2,643 U.S. Government agencies 14,461 1 (3 ) 14,459 $ 22,895 $ 1 $ (4 ) $ 22,892 Reported as: Cash and cash equivalents $ 3,142 $ — $ — $ 3,142 Short-term investments 19,603 1 (4 ) 19,600 Long-term restricted investments 150 — — 150 $ 22,895 $ 1 $ (4 ) $ 22,892
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 September 30, 2017, by contractual maturity (in thousands): September 30, 2017 Amortized Cost Estimated Fair Value Mature in one year or less $ 40,663 $ 40,663 $ 40,663 $ 40,663

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock-Based Compensation Cost that has been Included in Statements of Comprehensive Income (Loss)	The stock-based compensation cost that has been included in the statements of comprehensive income (loss) is shown as below (in thousands): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Cost of product revenues $ 27 $ 27 $ 83 $ 80 Research and development 374 362 1,057 1,072 Selling, general and administrative 301 227 789 871 Total stock-based compensation $ 702 $ 616 $ 1,929 $ 2,023
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 and shares purchased under its employee stock purchase plan for the three and nine months ended September 30, 2017 and 2016: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Stock Options Risk-free rate 2.0-2.3% 1.4-1.6% 2.0-2.5% 1.3-1.9% Expected dividend yield — — — — Expected life of option (in years) 6.8-10.0 7.0-10.0 6.8-10.0 6.5-10.0 Volatility 75-81% 76-82% 75-82% 76-83% Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Employee Stock Purchase Plan Risk-free rate 1.0% 0.4% 0.6-1.0% 0.3-0.4% Expected dividend yield — — — — Expected life of option (in years) 0.5 0.5 0.5 0.5 Volatility 44% 66% 44-81% 66-68%

Term Loan (Tables)

Term Loan (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Future Maturities and Interest Payments under Term Loan	Future maturities and interest payments under the term loan as of September 30, 2017, are as follows (in thousands): Three months ended December 31, 2017 $ 406 2018 8,698 2019 8,724 2020 6,641 Total minimum payments 24,469 Less amount representing interest (4,469 ) Gross balance of term loan 20,000 Less unamortized debt discount (101 ) Carrying value of term loan 19,899 Less term loan, current portion, net (5,276 ) Term loan, non-current portion, net $ 14,623

Summary of Significant Accoun18

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Summary Of Significant Accounting Policies [Line Items]
State of incorporation			Delaware
Date of incorporation			Feb. 6, 1998
Accumulated deficit	$ 452,007,000		$ 452,007,000		$ 440,077,000
Cost of goods sold	3,105,000	$ 2,180,000	5,572,000	$ 4,335,000
Write-down of the cost basis of inventory on hand			2,176,000	$ 642,000
Inventories	3,155,000		$ 3,155,000		$ 3,782,000
Options to purchase common stock excluded from computation of diluted net loss per share		16.9	20	18.8
Agreement with Pain Therapeutics, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Cost of goods sold	0	$ 92,000	$ 0	$ 216,000
Agreement with Pain Therapeutics, Inc. [Member] | PERSIST, Phase 3 Clinical Trial for POSIMIR [Member]
Summary Of Significant Accounting Policies [Line Items]
Cost of goods sold	2,000,000		2,000,000
Write-down of the cost basis of inventory on hand	503,000		503,000
Minimum purchase commitment	1,000,000		1,000,000
Inventories	81,000		81,000
Agreement with Pain Therapeutics, Inc. [Member] | PERSIST, Phase 3 Clinical Trial for POSIMIR [Member] | Prepaid Inventory [Member]
Summary Of Significant Accounting Policies [Line Items]
Minimum purchase commitment	$ 500,000		$ 500,000

Summary of Significant Accoun19

Summary of Significant Accounting Policies - Summary of Components of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Net [Abstract]
Raw materials	$ 260	$ 745
Work in process	1,665	1,672
Finished goods	1,230	1,365
Total inventories, net	$ 3,155	$ 3,782

Summary of Significant Accoun20

Summary of Significant Accounting Policies - Summary of Numerators and Denominators in Calculation of Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerators:
Net income (loss)	$ 6,111	$ (8,832)	$ (11,930)	$ (25,698)
Denominator:
Weighted average shares used to compute basic net income (loss) per share	147,213	137,933	143,873	130,990
Dilutive common shares from stock options and ESPP	4,672	0	0	0
Weighted average shares used to compute diluted net income (loss) per share	151,885	137,933	143,873	130,990
Net income (loss) per share:
Basic	$ 0.04	$ (0.06)	$ (0.08)	$ (0.20)
Diluted	$ 0.04	$ (0.06)	$ (0.08)	$ (0.20)

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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue	$ 5,602	$ 352	$ 7,304	$ 1,142
Agreement with Sandoz AG [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue	3,846	0	4,615	0
Agreement with Pain Therapeutics, Inc. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue	4	153	109	163
Agreement with Santen Pharmaceutical Co., Ltd. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue	85	110	234	420
Agreement with Zogenix, Inc. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue	750	63	835	503
Agreements With Other Third Party Collaborators [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue	$ 917	$ 26	$ 1,511	$ 56

Strategic Agreements - Summar22

Strategic Agreements - Summary of Collaborative Research and Development and Other Revenues Associated with Company's Major Third-Party Collaborators (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Agreement with Sandoz AG [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Amounts related to the ratable recognition of upfront fees	$ 3,800	$ 0	$ 4,600	$ 0
Agreement with Zogenix, Inc. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Amounts related to the ratable recognition of upfront fees	$ 750	52	$ 833	156
Agreement termination month and year	2017-08		2017-08
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	$ 48	$ 57	$ 153	$ 171

Strategic Agreements - Agreemen

Strategic Agreements - Agreement with Sandoz AG - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue		$ 5,602,000	$ 352,000	$ 7,304,000	$ 1,142,000
Agreement with Sandoz AG [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Upfront license fee	$ 20,000,000
Notice period to terminate agreement, in days	30 days
Notice period to terminate rights, in months	6 months
Total collaborative research and development and other revenue		$ 3,846,000	$ 0	4,615,000	$ 0
Cumulative aggregate payments received by the Company				$ 20,000,000
Agreement with Sandoz AG [Member] | Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Performance milestone payments based on successful development	$ 43,000,000
Sales-Based Milestones [Member] | Agreement with Sandoz AG [Member] | Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Performance milestone payments based on successful development	$ 230,000,000

Strategic Agreements - Patent P

Strategic Agreements - Patent Purchase Agreement with Indivior - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 26, 2017	Sep. 30, 2017	Sep. 30, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue from sale of intellectual property rights		$ 12,500	$ 12,500
Patent Purchase Agreement with Indivior [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Upfront non-refundable payment received	$ 12,500
Granted patents extending year, minimum	2,026
Revenue from sale of intellectual property rights		$ 12,500
Patent Purchase Agreement with Indivior [Member] | Regulatory Based Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Performance milestone payments based on successful development	$ 5,000

Strategic Agreements - Agreem25

Strategic Agreements - Agreement with Pain Therapeutics, Inc. - Additional Information (Detail)	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2002Drug	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue		$ 5,602,000	$ 352,000	$ 7,304,000	$ 1,142,000
Product revenue, net		2,644,000	3,391,000	9,828,000	9,366,000
Cost of goods sold		3,105,000	2,180,000	5,572,000	4,335,000
Agreement with Pain Therapeutics, Inc. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Number of specified opioid drugs | Drug	4
Upfront license fee				1,000,000
Performance milestone payments based on successful development		3,000,000		3,000,000
Revenue recognition milestone achieved				1,500,000
Total collaborative research and development and other revenue		4,000	153,000	109,000	163,000
Cumulative aggregate payments received by the Company				40,400,000
Product revenue, net		0	374,000	0	653,000
Cost of goods sold		0	$ 92,000	0	$ 216,000
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		3,000,000		3,000,000
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		$ 0

Strategic Agreements - Agreem26

Strategic Agreements - Agreement with Zogenix, Inc. - Additional Information (Detail) - Agreement with Zogenix, Inc. [Member] - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 31, 2011	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Agreement termination month and year		2017-08		2017-08
Amounts related to the ratable recognition of upfront fees		$ 750	$ 52	$ 833	$ 156
Cumulative aggregate payments received by the Company				20,100
Up-front Payment Arrangement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Non-refundable upfront fee	$ 2,250			$ 2,250

Strategic Agreements - Summar27

Strategic Agreements - Summary of Collaborative Research and Development Revenue Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development revenue	$ 5,602	$ 352	$ 7,304	$ 1,142
Agreement with Zogenix, Inc. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Ratable recognition of upfront payment	750	52	833	156
Research and development expenses reimbursable by the Company		11	2	347
Total collaborative research and development revenue	750	63	835	503
Agreement with Santen Pharmaceutical Co., Ltd. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Ratable recognition of upfront payment	48	57	153	171
Research and development expenses reimbursable by the Company	37	53	81	249
Total collaborative research and development revenue	$ 85	$ 110	$ 234	$ 420

Strategic Agreements - Agreem28

Strategic Agreements - Agreement with Santen Pharmaceutical Co., Ltd. - Additional Information (Detail) - Agreement with Santen Pharmaceutical Co., Ltd. [Member] - USD ($)	Dec. 11, 2014	Sep. 30, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Upfront license fee	$ 2,000,000	$ 2,000,000
Cumulative aggregate payments received by the Company		3,300,000
Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Future milestone payments	76,000,000
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	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 41,197	$ 22,895
Unrealized Gain		1
Unrealized Loss		(4)
Estimated Fair Value	41,197	22,892
Money market funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	534	693
Estimated Fair Value	534	693
Certificates of deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	150	150
Estimated Fair Value	150	150
Commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	39,513	4,947
Estimated Fair Value	39,513	4,947
U.S. Government agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,000	14,461
Unrealized Gain		1
Unrealized Loss		(3)
Estimated Fair Value	1,000	14,459
Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	34,668	3,142
Estimated Fair Value	34,668	3,142
Short-term investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	6,379	19,603
Unrealized Gain		1
Unrealized Loss		(4)
Estimated Fair Value	6,379	19,600
Long-term restricted investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	150	150
Estimated Fair Value	$ 150	150
Corporate debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		2,644
Unrealized Loss		(1)
Estimated Fair Value		$ 2,643

Financial Instruments - Summa30

Financial Instruments - Summary of Cost and Estimated Fair Value of Available-for-Sale Securities by Contractual Maturity (Detail) $ in Thousands	Sep. 30, 2017USD ($)
Investments Debt And Equity Securities [Abstract]
Mature in one year or less, Amortized Cost	$ 40,663
Amortized Cost	40,663
Mature in one year or less, Estimated Fair Value	40,663
Estimated Fair Value	$ 40,663

Financial Instruments - Additio

Financial Instruments - Additional Information (Detail)	Sep. 30, 2017USD ($)
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 Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation cost	$ 702	$ 616	$ 1,929	$ 2,023
Cost of product revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation cost	27	27	83	80
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation cost	374	362	1,057	1,072
Selling, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation cost	$ 301	$ 227	$ 789	$ 871

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based compensation cost capitalized in inventory	$ 13,000	$ 14,000

Stock-Based Compensation - Su34

Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value of Options Granted and Shares Purchased (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employees Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free rate	1.00%	0.40%
Risk-free rate, minimum			0.60%	0.30%
Risk-free rate, maximum			1.00%	0.40%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Expected life of option (in years)	6 months	6 months	6 months	6 months
Volatility	44.00%	66.00%
Volatility, minimum			44.00%	66.00%
Volatility, maximum			81.00%	68.00%
Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free rate, minimum	2.00%	1.40%	2.00%	1.30%
Risk-free rate, maximum	2.30%	1.60%	2.50%	1.90%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Volatility, minimum	75.00%	76.00%	75.00%	76.00%
Volatility, maximum	81.00%	82.00%	82.00%	83.00%
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 9 months 18 days	7 years	6 years 9 months 18 days	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)	10 years	10 years	10 years	10 years

Term Loan - Additional Informat

Term Loan - Additional Information (Detail) - USD ($)	1 Months Ended	9 Months Ended
	Jul. 31, 2016	Sep. 30, 2017
Debt Instrument [Line Items]
Debt instrument, covenants in compliance		The Company was in compliance with all material covenants under the Loan Agreement and the Company believes that there have been no material adverse changes.
Oxford Finance 2016 Term Loan [Member]
Debt Instrument [Line Items]
Secured term loan	$ 20,000,000
Term loan repayment description		The 2016 Loan Agreement provides for interest only payments for the first 18 months, followed by consecutive monthly payments of principal and interest in arrears starting on March 1, 2018
First principal payment date	Mar. 1, 2018
Term loan, maturity date	Aug. 1, 2020
Interest rate on term loan	7.95%	8.54%
Term loan, floating interest rate basis		index rate plus a spread
Facility fee paid at final payment	$ 150,000
Percentage of an additional payment equal to principal amount	9.25%
Debt offering/issuance costs	$ 1,900,000
Oxford Finance 2016 Term Loan [Member] | Minimum [Member]
Debt Instrument [Line Items]
Percentage of prepayment fee	1.00%
Oxford Finance 2016 Term Loan [Member] | Maximum [Member]
Debt Instrument [Line Items]
Percentage of prepayment fee	3.00%

Term Loan - Schedule of Future

Term Loan - Schedule of Future Maturities and Interest Payments under Term Loan (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Future maturities and interest payments under the term loan:
Three months ended December 31, 2017	$ 406
2,018	8,698
2,019	8,724
2,020	6,641
Total minimum payments	24,469
Less amount representing interest	(4,469)
Gross balance of term loan	20,000
Less unamortized debt discount	(101)
Carrying value of term loan	19,899
Less term loan, current portion, net	(5,276)	$ (19,853)
Term loan, non-current portion, net	$ 14,623

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Oct. 27, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from sale of common stock, net of commission		$ 10,100	$ 20,572
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for sale				$ 67,800
Cantor Fitzgerald Co [Member] | Maximum [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for sale				$ 20,300
Controlled Equity Offering Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from sale of common stock, net of commission	$ 4,700	$ 9,600
Sale of common stock during period	2,984,660	6,600,000
Common stock weighted average price	$ 1.64	$ 1.49