Biodelivery Sciences International (BDSI) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 09, 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	BDSI
Entity Registrant Name	BIODELIVERY SCIENCES INTERNATIONAL INC
Entity Central Index Key	1,103,021
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		55,883,436

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash	$ 19,746	$ 32,019
Accounts receivable, net	10,791	3,569
Inventory, net	6,466	3,368
Prepaid expenses and other current assets	2,310	4,136
Total current assets	39,313	43,092
Property and equipment, net	4,202	4,230
Goodwill	2,715	2,715
BELBUCA®license and distribution rights intangible	41,625
Other intangible assets, net	1,558	2,285
Total assets	89,413	52,322
Current liabilities:
Accounts payable and accrued liabilities	30,807	18,174
Deferred revenue, current		1,716
Total current liabilities	30,807	19,890
Notes payable, net of discount and loan costs	35,701	29,272
Deferred revenue, long-term		20,000
Other long-term liabilities	4,050	825
Total liabilities	70,558	69,987
Commitments and contingencies (Notes 11 and 16)
Stockholders' equity:
Preferred Stock, $.001 par value; 5,000,000 shares authorized; 2,093,155 shares of Series A Non-Voting Convertible Preferred Stock outstanding at both September 30, 2017 and December 31, 2016, respectively.	2	2
Common Stock, $.001 par value; 75,000,000 shares authorized; 55,852,926 and 54,133,511 shares issued; 55,837,435 and 54,118,020 shares outstanding at September 30, 2017 and December 31, 2016, respectively.	56	54
Additional paid-in capital	307,690	292,667
Treasury stock, at cost, 15,491 shares	(47)	(47)
Accumulated deficit	(288,846)	(310,341)
Total stockholders' equity (deficit)	18,855	(17,665)
Total liabilities and stockholders' equity (deficit)	$ 89,413	$ 52,322

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	5,000,000	5,000,000
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	75,000,000	75,000,000
Common Stock, shares issued	55,852,926	54,133,511
Common Stock, shares outstanding	55,837,435	54,118,020
Treasury stock, shares	15,491	15,491
Series A Non-Voting Convertible Preferred Stock [Member]
Preferred Stock, shares outstanding	2,093,155	2,093,155

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Product sales	$ 8,118	$ 2,009	$ 23,798	$ 6,221
Product royalty revenues	1,409	1,065	3,682	2,393
Research and development reimbursements	532	497	799	501
Contract revenues	1,194		21,194	2,500
Total Revenues:	11,253	3,571	49,473	11,615
Cost of sales	4,445	2,314	14,261	8,958
Expenses:
Research and development	1,986	4,402	6,246	13,786
Selling, general and administrative	14,867	12,054	44,094	37,606
Total Expenses:	16,853	16,456	50,340	51,392
Loss from operations	(10,045)	(15,199)	(15,128)	(48,735)
Interest expense	(1,893)	(786)	(6,657)	(2,477)
Derivative gain		14		36
Other expense, net	(13)	(6)	(28)	(20)
Bargain purchase gain			27,336
(Loss) income before income taxes	(11,951)	(15,977)	5,523	(51,196)
Income tax benefit			15,972
Net (loss) income attributable to common stockholders	$ (11,951)	$ (15,977)	$ 21,495	$ (51,196)
Basic
Basic (loss) income per share:	$ (0.21)	$ (0.30)	$ 0.39	$ (0.96)
Weighted average common stock shares outstanding:	55,604,708	53,767,099	55,170,569	53,531,770
Diluted
Diluted (loss) income per share:	$ (0.21)	$ (0.30)	$ 0.38	$ (0.96)
Diluted weighted average common stock shares outstanding:	55,604,708	53,767,099	56,204,358	53,531,770

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]	Series A Preferred Stock [Member]
Beginning Balance at Dec. 31, 2016	$ (17,665)	$ 54	$ 292,667	$ (47)	$ (310,341)	$ 2
Beginning Balance, shares at Dec. 31, 2016		54,133,511				2,093,155
Stock-based compensation	10,223		10,223
Restricted stock awards		$ 2	(2)
Restricted stock awards, shares		1,568,042
Issuance of warrants	4,489		4,489
Exercise of stock options	$ 313		313
Exercise of stock options, shares	151,373	151,373
Net income	$ 21,495				21,495
Ending Balance at Sep. 30, 2017	$ 18,855	$ 56	$ 307,690	$ (47)	$ (288,846)	$ 2
Ending Balance, shares at Sep. 30, 2017		55,852,926				2,093,155

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
Operating activities:
Net income (loss)	$ 21,495	$ (51,196)
Depreciation	465	325
Accretion of debt discount and loan costs	1,941	297
Amortization of intangible assets	4,103	728
Derivative liability		100
Stock-based compensation expense	10,223	11,600
Deferred income taxes	(15,972)
Bargain purchase gain	(27,336)
Changes in assets and liabilities:
Accounts receivable	(7,222)	(601)
Inventories, net of effect of acquisition	2,314	(1,460)
Prepaid expenses and other assets	1,826	(537)
Accounts payable and accrued expenses, net of effect of acquisition	8,998	(662)
Deferred revenue	(21,716)	47
Net cash flows from operating activities	(20,881)	(41,359)
Investing activities:
BELBUCA® acquisition	(3,902)
Purchase of equipment	(5)	(316)
Net cash flows from investing activities	(3,907)	(316)
Financing activities:
Proceeds from notes payable	45,000
Payment of notes payable	(30,000)
Payment of deferred financing fees	(2,798)
Equity financing costs		40
Proceeds from exercise of stock options	313	297
Proceeds from issuance of common stock		2,460
Net cash flows from financing activities	12,515	2,797
Net change in cash and cash equivalents	(12,273)	(38,878)
Cash and cash equivalents at beginning of year	32,019	83,560
Cash and cash equivalents at end of period	19,746	44,682
Cash paid for interest	3,816	$ 2,045
Non-cash Operating, Financing and Investing Activities:
Fair value of bargain purchase price of BELBUCA acquisition	27,300
Fair value of warrants, in connection with CRG term loan	$ 4,500

Organization, Basis of Presenta

Organization, Basis of Presentation and Summary of Significant Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Organization, Basis of Presentation and Summary of Significant Policies	1. Organization, basis of presentation and summary of significant policies: Overview BioDelivery Sciences International, Inc., together with its subsidiaries (collectively, the “Company”) is a specialty pharmaceutical company that is developing and commercializing, either on its own or in partnerships with third parties, new applications of approved therapeutics to address important unmet medical needs using both proven and new drug delivery technologies. The Company is focusing on developing products to meet unmet patient needs in the areas of pain management and addiction. The accompanying unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring adjustments) necessary for a fair presentation of these financial statements. The condensed consolidated balance sheet at December 31, 2016 has been derived from the Company’s audited consolidated financial statements included in its annual report on Form 10-K Form 10-K Operating results for the three and nine month periods ended September 30, 2017 are not necessarily indicative of results for the full year or any other future periods. As used herein, the Company’s common stock, par value $.001 per share, is referred to as the “Common Stock.” Principles of consolidation The condensed consolidated financial statements include the accounts of the Company, Arius Pharmaceuticals, Inc. (“Arius”), Arius Two, Inc. (“Arius Two”) and Bioral Nutrient Delivery, LLC (“BND”). For each period presented BND has been an inactive subsidiary. All significant inter-company balances and transactions have been eliminated. Use of estimates in financial statements The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The Company reviews all significant estimates affecting the consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their issuance. Significant estimates of the Company include: revenue recognition, sales allowances such as returns of product sold, government program rebates, customer coupon redemptions, wholesaler/pharmacy discounts, product service fees, rebates and chargebacks, sales commissions, amortization, stock-based compensation, determination of fair values of assets and liabilities in connection with business combinations, and deferred income taxes. Reacquisition of BELBUCA ® On December 7, 2016, the Company entered into an agreement (the “Termination Agreement”) with Endo Pharmaceuticals, Inc. (“Endo”) terminating Endo’s licensing of rights to the Company’s BELBUCA ® ® ® Inventory Other than the inventory purchased from Endo that remains in inventory at September 30, 2017 and is stated at fair value, inventories are stated at the lower of cost or net realizable value with costs determined for each batch under the first-in, first-out On a quarterly basis, the Company analyzes its inventory levels and records allowances for inventory that has become obsolete, inventory that has a cost basis in excess of the expected net realizable value and inventory that is in excess of expected demand based upon projected product sales. The Company recorded $0.2 million in inventory allowances as of September 30, 2017. There were no allowances recorded as of December 31, 2016. Deferred revenue Consistent with the Company’s revenue recognition policy, deferred revenue represents cash received in advance for licensing fees, consulting, research and development services and related supply agreements. Such payments are reflected as deferred revenue until recognized under the Company’s revenue recognition policy. Deferred revenue is classified as current if management believes the Company will be able to recognize the deferred amount as revenue within twelve months of the balance sheet date. The Company deferred sales, until January 1, 2017, of its BUNAVAIL ® ® ® Revenue recognition Net product sales Beginning in the first quarter of 2017, the Company has determined that it had sufficient experience with BELBUCA ® ® ex-factory ® ® sell-in The Company establishes allowances for estimated rebates, chargebacks and product returns based on numerous qualitative and quantitative factors, including: • the number of and specific contractual terms of agreements with customers; • estimated levels of inventory in the distribution channel; • historical rebates, chargebacks and returns of products; • direct communication with customers; • anticipated introduction of competitive products or generics; • anticipated pricing strategy changes by the Company and/or its competitors; • analysis of prescription data gathered by a third-party prescription data provider; • the impact of changes in state and federal regulations; and • the estimated remaining shelf life of products. In its analyses, the Company uses prescription data purchased from a third-party data provider to develop estimates of historical inventory channel sell-through. The Company utilizes an internal analysis to compare historical net product shipments to estimated historical prescriptions written. Based on that analysis, management develops an estimate of the quantity of product in the channel which may be subject to various rebate, chargeback and product return exposures. To estimate months of ending inventory in the Company’s distribution channel, the Company divides estimated ending inventory in the distribution channel by the Company’s recent prescription data, not taking into account any future anticipated demand growth beyond the succeeding quarter. Monthly for each product line, the Company prepares an internal estimate of ending inventory units in the distribution channel by adding estimated inventory in the channel at the beginning of the period, plus net product shipments for the period, less estimated prescriptions written for the period. This is done for each product line by applying a rate of historical activity for rebates, chargebacks and product returns, adjusted for relevant quantitative and qualitative factors discussed above, to the potential exposed product estimated to be in the distribution channel. Product Returns 18-month Rebates Price Adjustments and Chargebacks The Company, from time to time, offers certain promotional product-related incentives to its customers. These programs include certain product incentives to pharmacy customers and other sales stocking allowances. The Company has voucher programs for BELBUCA ® ® point-of-sale Prompt Payment Discounts Gross to Net Accruals Cost of sales Cost of sales includes the direct costs attributable to the production of BREAKYL ™ ™ out-licensed For BELBUCA ® ® ® ® Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, 2016-10, 2016-10 The FASB’s new leases standard, ASU 2016-02 2016-02 right-of-use In January 2017, the FASB issued ASU 2017-01, Business In January 2017, the FASB issued ASU Update No. 2017-04, Intangibles—Goodwill in-process

Liquidity and Management's Plan

Liquidity and Management's Plans	9 Months Ended
	Sep. 30, 2017
Text Block [Abstract]
Liquidity and Management's Plans	2. Liquidity and management’s plans: At September 30, 2017, the Company had cash of approximately $19.7 million. The Company used $12.3 million of cash during the nine months ended September 30, 2017 and had stockholders’ equity of $18.9 million, versus stockholders’ deficit of $17.7 million at December 31, 2016. The Company has access to additional capital through CRG Servicing LLC (“CRG”) from the CRG loan of $15 million as well as equity markets if the Company chooses or a combination of both that would provide sufficient capital to extend its runway through the end of 2018 and beyond. This estimation assumes that the Company does not accelerate the development of existing, or acquire other drug development opportunities or otherwise face unexpected events, costs or contingencies, any of which could affect the Company’s cash requirements. As a result of the Company’s late filing of certain financing information related to its reacquisition of BELBUCA ® at-the-market Additional capital will be required to support the commercialization of the Company’s reacquired BELBUCA ® ® ® out-licensed

Inventory

Inventory	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventory	3. Inventory: The following table represents the components of inventory as of: September 30, December 31, Raw materials & supplies $1,752 $ 978 Work-in-process 2,180 1,660 Finished goods 2,687 730 Finished goods reserve (153) — Total inventories, net $6,466 $ 3,368

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities	4. Accounts payable and accrued liabilities: The following table represents the components of accounts payable and accrued liabilities as of: September 30, December 31, Accounts payable $11,645 $ 9,397 Accrued price adjustments 3,036 592 Accrued returns 857 — Accrued acquisition consideration 4,838 — Accrued rebates 5,057 3,842 Accrued chargebacks 101 10 Accrued compensation and benefits 3,067 2,052 Accrued royalties 488 518 Accrued clinical trial costs 7 615 Accrued legal costs 562 490 Accrued manufacturing costs 200 200 Accrued sales and marketing costs — 193 Accrued other 949 265 Total accounts payable and accrued expenses $30,807 $ 18,174

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment	5. Property and equipment: Property and equipment, summarized by major category, consist of the following as of: September 30, December 31, Machinery & equipment $ 5,629 $ 4,476 Computer equipment & software 394 464 Office furniture & equipment 169 202 Leasehold improvements 44 53 Idle equipment 766 1,486 Total 7,002 6,681 Less accumulated depreciation (2,800) (2,451 ) Total property, plant & equipment, net $ 4,202 $ 4,230 Depreciation expense for the nine month periods ended September 30, 2017 and September 30, 2016, was approximately $0.5 million and $0.3 million, respectively. Depreciation expense for the three month periods ended September 30, 2017 and September 30, 2016, was approximately $0.2 million and $0.1 million, respectively.

License and Development Agreeme

License and Development Agreements	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
License and Development Agreements	6. License and development agreements: The Company has periodically entered into license and development agreements to develop and commercialize certain of its products. The arrangements typically are multi-deliverable arrangements that are funded through upfront payments, milestone payments, royalties and other forms of payment to the Company. The Company’s most significant license and development agreements are as follows: Meda license, development and supply agreements On January 27, 2015, the Company announced that it had entered into an assignment and revenue sharing agreement with Meda AB (“Meda”), a subsidiary of Mylan N.V., to return to the Company the marketing authorization for ONSOLIS ® ® Efforts to extend the Company’s supply agreement with its ONSOLIS ® On May 11, 2016, the Company and Collegium executed a definitive License and Development Agreement (the “License Agreement”) under which the Company has granted to Collegium the exclusive rights to develop and commercialize ONSOLIS ® Collegium license and development agreement On May 11, 2016, the Company and Collegium executed a License Agreement under which the Company granted Collegium the exclusive rights to develop and commercialize ONSOLIS ® Under the terms of the License Agreement, Collegium will be responsible for the manufacturing, distribution, marketing and sales of ONSOLIS ® ® ® ® Financial terms of the License Agreement include: • a $2.5 million upfront non-refundable • reimbursement to the Company for a pre-determined ® • $4 million payable to the Company upon first commercial sale of ONSOLIS ® • $3 million payable to the Company related to ONSOLIS ® ® ® • up to $17 million in potential payments to the Company based on achievement of certain performance and sales milestones; and • upper-teen percent royalties payable by Collegium to the Company based on various annual U.S. net sales thresholds, subject to customary adjustments and the royalty sharing arrangements described below. Pursuant to the License Agreement, the royalty from Collegium to the Company terminates after the (a) expiration of the last-to-expire ONSOLIS ® ® ® ® ® Endo license and development agreement In January 2012, the Company entered into a License and Development Agreement with Endo pursuant to which the Company granted Endo an exclusive commercial world-wide license to develop, manufacture, market and sell the Company’s BELBUCA ® ® around-the-clock, Pursuant to the Endo Agreement, the Company has received the following payments: • $30 million non-refundable • $15 million for enhancement of intellectual property rights (earned in May 2012); • $20 million for full enrollment in two clinical trials ($10 million earned in January 2014 and $10 million earned in June 2014); • $10 million upon FDA acceptance of filing NDA (earned in February 2015); • $50 million upon regulatory approval, earned in October 2015 and received in November 2015. Of the $50 million received in November 2015, $20 million related to a patent extension and was recorded as deferred revenue because all or a portion of such $20 million was contingently refundable to Endo if a third party generic product was introduced in the U.S. during the patent extension period from 2020 to 2027. However, due to the Company and Endo entering into a Termination Agreement on December 7, 2016 which terminated the BELBUCA ®

Business Combination and BELBUC

Business Combination and BELBUCA Acquisition	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Business Combination and BELBUCA Acquisition	7. Business combination and BELBUCA ® On December 7, 2016, the Company and Endo entered into the Termination Agreement to terminate Endo’s licensing rights for BELBUCA ® ® work-in-progress, ® ® ® ® (v) all pre-approval regulatory ® of work-in- progress inventory, and (iii) the assumption of any assumed liabilities. Together with the Asset Purchase Price, pursuant to the terms of the Termination Agreement, the Company will also pay to Endo a fee in the amount of $5 million in consideration for (i) Endo’s agreement not to compete for a period of two years from the closing date of the termination agreement and (ii) Endo’s waiver of its right to sell product for twelve months following the closing of the termination agreement. At the closing date, the Company accepted transfer of the net assets and assumed and agreed to discharge when due all applicable liabilities assumed by the Company, which consisted of post-closing obligations for liabilities and payments associated with the net assets, the assumed contracts related to the net assets and applicable taxes (with the obligation for pre-closing non-compete At the closing date, the Company and Endo entered into a Transition Services Agreement which governed the post-closing rights and responsibilities of the Company and Endo in connection with the license termination and the transfer of the Assets to the Company. Under this agreement, the Company and Endo agreed to the handling of transition matters such as managing customer contracts, BELBUCA ® ® The BELBUCA ® Business Combinations ® The following table summarizes the consideration paid to acquire BELBUCA ® Asset purchase price: Deferred cash consideration to Endo $ 7,536 Total asset purchase price $ 7,536 Estimated fair value of assets acquired: Current BELBUCA ® work-in $ 5,412 BELBUCA ® 432 License and distribution rights intangible assets 45,000 Deferred tax liability (15,972 ) Amount attributable to assets acquired $ 34,872 Bargain purchase gain $ (27,336 ) Inventories acquired included raw materials, work-in-progress work-in-process, The fair value of the equipment was determined by consideration of replacement cost and equipment condition and was assigned a useful life of seven years. The fair value of the license and distribution rights intangible assets as amortized in the accompanying condensed consolidated balance sheets were estimated primarily using the “income method,” which starts with a forecast of all expected future cash flows. As such, it is considered level 3 in the fair value hierarchy. Some of the more significant assumptions inherent in the development of intangible asset values, from the perspective of a market participant, include: the amount and timing of projected future cash flows (including net revenue, cost of sales, commercial expenses, research and development costs and working capital requirements) as well as estimated contributory asset charges; the discount rate selected to measure the risks inherent in the future cash flows; and the assessment of the asset’s life cycle and the competitive trends impacting the asset, among other factors. The license and distribution rights intangible assets will be amortized over ten years, which approximates the current, remaining patent life of the BELBUCA ® As a result of the business combination, the Company recognized a deferred tax liability of $16.0 million. This deferred tax liability was netted against its deferred tax assets as of September 30, 2017. Because a full valuation allowance has been provided against the Company’s deferred tax assets as it is considered more likely than not that they will not be utilized, the Company released a corresponding amount of its valuation allowance during the nine months ended September 30, 2017 and recognized a $16.0 million tax benefit in the accompanying condensed consolidated statement of operations. In January 2017, the Company recorded the asset acquisition as a bargain purchase gain of $27.3 million in the accompanying condensed consolidated statement of operations. Pro forma impact of acquisition of BELBUCA ® The following pro forma combined results of operations are provided for the year ended December 31, 2016, as though the BELBUCA ® ® ® ® (in thousands, except per share data) December 31, Revenue $ 25,010 Net loss $ (201,769 ) Pro forma net loss per common share Basic $ (3.76 ) Diluted $ (3.76 ) The Company’s historical financial information was adjusted to give effect to the pro forma events that were directly attributable to the BELBUCA ® • Adjustment to recognize incremental amortization expense based on the fair value of intangibles acquired; • Adjustment to recognize incremental depreciation expense for equipment acquired in the acquisition. 8. License obligations: Evonik development and exclusive license option agreement: On October 27, 2014, the Company entered into a definitive Development and Exclusive License Option Agreement (the “Development Agreement”) with Evonik Corporation, (“Evonik”) to develop and commercialize an injectable, extended release, microparticle formulation of buprenorphine for the treatment of opioid dependence (the “Evonik Product”). Under the Development Agreement, the Company also has the right to pursue development of the Evonik Product for pain management. This product candidate is currently in the pre-clinical

License Obligations

License Obligations	9 Months Ended
	Sep. 30, 2017
Text Block [Abstract]
License Obligations	8. License obligations: Evonik development and exclusive license option agreement: On October 27, 2014, the Company entered into a definitive Development and Exclusive License Option Agreement (the “Development Agreement”) with Evonik Corporation, (“Evonik”) to develop and commercialize an injectable, extended release, microparticle formulation of buprenorphine for the treatment of opioid dependence (the “Evonik Product”). Under the Development Agreement, the Company also has the right to pursue development of the Evonik Product for pain management. This product candidate is currently in the pre-clinical

Other License Agreements and Ac

Other License Agreements and Acquired Product Rights	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Other License Agreements and Acquired Product Rights	9. Other license agreements and acquired product rights: Purdue license and supply agreement: On July 12, 2017, the Company, along with Purdue Pharma, an Ontario limited partnership (“Purdue”), announced that they had executed an exclusive agreement granting to Purdue the licensing, distribution, marketing and sale rights related to BELBUCA ® ® ® ® Pursuant to the agreement, the royalty from Purdue to the Company terminates on the later of (a) the first date on which there is not at least one valid claim of the licensed patents in the territory covering any licensed product or (b) February 14th of the calendar year immediately following the first complete calendar year following the tenth anniversary of first commercial sale in which net sales total less than a predetermined amount. On September 12, 2017, the Company announced Health Canada had granted market authorization to formally transfer the Drug Identification Number (DIN) ownership of BELBUCA ® TTY license and supply agreement On October 7, 2010, the Company announced a license and supply agreement with TTY Biopharm Co., Ltd. (“TTY”) for the exclusive rights to develop and commercialize BEMA ® ® In February, March, June, August and September 2017, the Company received payments of $0.2 million, $0.03 million, $0.1 million, $0.2 million and $0.3 million, respectively, from TTY, which related to royalties based on product purchased in Taiwan by TTY of PAINKYL ™ In February 2016 and June 2016, the Company received separate payments of $0.24 million each from TTY which is recorded in the accompanying condensed consolidated statements of operations for the nine months ended September 30, 2016. No such payments were received in the quarter ended September 30, 2016.

Note Payable (MidCap Loan)

Note Payable (MidCap Loan)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Note Payable (MidCap Loan)	10. Note payable (MidCap loan): On May 29, 2015, the Company entered into a $30 million secured loan facility (the “Loan”) with MidCap Financial Trust, as agent and lender (“MidCap”), pursuant to the terms and conditions of that certain Amended and Restated Credit and Security Agreement, dated as of May 29, 2015 (the “Credit Agreement”), between the Company and MidCap (the “MidCap Credit Agreement”). On February 21, 2017, the Company entered into a term loan agreement (the “Term Loan Agreement”) with CRG, as administrative agent and collateral agent, and the lenders named in the Term Loan Agreement (the “Lenders”). The Company utilized approximately $29.4 million of the initial loan proceeds under the Term Loan Agreement to repay all of the amounts owed by the Company under the MidCap Credit Agreement. Upon the repayment of all amounts owed by the Company under the MidCap Credit Agreement, all commitments under the MidCap Credit Agreement were terminated and all security interests granted by the Company and its subsidiary guarantors under the MidCap Credit Agreement were released (see note 11, Term Loan Agreement (CRG)). Certain warrants issued to MidCap and its affiliates in May 2016 related to the extension of the interest only period under the MidCap Credit Agreement remain outstanding as of September 30, 2017 and will expire, if not earlier exercised in May 2021. Such warrants are exercisable for 84,986 shares of Common Stock at an exercise price of $3.53 per share. During the nine months ended September 30, 2017, $0.7 million of deferred loan costs arising out of the MidCap Credit Agreement were expensed and recorded as interest expense in the accompanying condensed consolidated statement of operations.

Term Loan Agreement (CRG)

Term Loan Agreement (CRG)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Term Loan Agreement (CRG)	11. Term loan agreement (CRG): Pursuant to the Term Loan Agreement, the Company borrowed $45.0 million from the Lenders as of the Closing Date, and may be eligible to borrow up to an additional $30.0 million in two tranches of $15.0 million each contingent upon achievement of certain conditions, including: (i) in the case of the first tranche, representing the second potential draw under the Loan Agreement (the “Second Draw”), satisfying both (a) certain minimum net revenue thresholds on or before September 30, 2017 or December 31, 2017 and (b) a certain minimum market capitalization threshold for a period of time prior to the funding of the Second Draw (provided, that if the Company does not achieve the minimum net revenue thresholds necessary for the Second Draw but does achieve a certain minimum market capitalization threshold for a period of time prior to December 31, 2017, the Company would be eligible for a Second Draw funding in the amount of $5.0 million); and (ii) in the case of the second tranche, representing the third potential draw under the Loan Agreement (the “Third Draw”), satisfying both (a) certain minimum net revenue thresholds on or before June 30, 2018 or September 30, 2018 and (b) a certain minimum market capitalization threshold for a period of time prior to the funding of the Third Draw. The Company has qualified for the Second Draw. After the payoff of the MidCap Credit Agreement (see note 10), the Company is utilizing the initial proceeds under the Term Loan Agreement (after deducting loan origination costs and broker and other fees) of approximately $13.7 million, plus any additional amounts that may be borrowed in the future, for general corporate purposes and working capital. The Term Loan Agreement has a six-year term The Company may prepay all or a portion of the outstanding principal and accrued unpaid interest under the Term Loan Agreement at any time upon prior notice to the Lenders subject to a certain prepayment fees during the first five years of the term (which fees are lowered over time) and no prepayment fee thereafter. In certain circumstances, including a change of control and certain asset sales or licensing transactions, the Company is required to prepay all or a portion of the loan, including the applicable prepayment premium of on the amount of the outstanding principal to be prepaid. As security for its obligations under the Term Loan Agreement, on the funding date of the initial borrowing, the Company and the Subsidiary Guarantors entered into a security agreement with CRG whereby the Company and the subsidiary guarantors of the Company under the Term Loan Agreement (the “Subsidiary Guarantors”) granted to CRG, as collateral agent for the Lenders, a lien on substantially all of its assets including intellectual property (subject to certain exceptions). The Term Loan Agreement requires the Company to maintain minimum cash and cash equivalents balance and, each year through the end of 2022, to meet a minimum net annual revenue threshold. The Company is in compliance as of September 30, 2017. In the event that the Company does not meet the minimum net annual revenue threshold, then the Company can satisfy the requirement for that year by raising two (2) times the shortfall by way of raising equity or subordinated debt. The Term Loan Agreement also contains customary affirmative and negative covenants for a credit facility of this size and type, including covenants that limit or restrict the Company’s ability to, among other things (but subject in each case to negotiated exceptions), incur indebtedness, grant liens, merge or consolidate, dispose of assets, make investments, make acquisitions, enter into transactions with affiliates, pay dividends or make distributions, license intellectual property rights on an exclusive basis or repurchase stock. The Term Loan Agreement includes customary events of default that include, among other things, non-payment, inaccuracy The following table represents future maturities of the CRG obligation as of September 30, 2017: 2017 $ — 2018 — 2019 — 2020 15,054 2021 15,054 2022 15,054 Total maturities $ 45,162 Unamortized discount and loan costs (9,461 ) Total CRG obligation $ 35,701 In connection with the initial borrowing made under the Term Loan Agreement, the Company issued to CRG and certain of its affiliates five separate warrants to purchase an aggregate of 1,701,583 shares of the Common Stock (the “CRG Warrants”). The CRG Warrants are exercisable any time prior to February 21, 2027 at a price of $2.38 per share, with typical provisions for cashless exercises. The exercise of the CRG Warrants could have a dilutive effect to the Common Stock to the extent that the market price per share of the Common Stock, as measured under the terms of the CRG Warrants, exceeds the exercise price of the CRG Warrants. CRG is also entitled to receive a smaller amount of similar warrants concurrently with the funding, if applicable, of the Second Draw and the Third Draw.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segment Reporting	12. Segment reporting: The Company operates in a single industry engaging in the development and commercialization of pharmaceutical products principally in the areas of pain management and addiction. Accordingly, the Company’s business is classified as a single reportable segment. The following table presents net sales by product (in thousands): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 BELBUCA ® $ 6,437 $ — $ 17,554 $ — BUNAVAIL ® 1,681 2,009 6,244 6,221 Net product sales $ 8,118 $ 2,009 $ 23,798 $ 6,221

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Stockholders' Equity	13. Stockholders’ equity: Stock-based compensation During the nine months ended September 30, 2017, a total of 908,661 options to purchase Common Stock, with an aggregate fair market value of approximately $1.8 million, were granted to Company employees. Options granted to employees have a term of 10 years from the grant date and vest ratably over a three year period. Options granted to the Company’s Board of Directors have a term of 10 years from the grant date and one-half The Company’s stock-based compensation expense is allocated between research and development and selling, general and administrative as follows: Three months ended, Nine months ended, Stock-based compensation expense September 30, September 30, September 30, September 30, Research and Development $ 0.5 $ 0.5 $ 1.3 $ 2.1 Selling, General and Administrative $ 3.7 $ 3.6 $ 8.9 $ 9.5 The fair value of each option award is estimated on the grant date using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. Expected volatilities are based on implied volatilities from historical volatility of the Common Stock, and other factors estimated over the expected term of the options. Expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus contract term. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term. The weighted average for key assumptions used in determining the fair value of options granted during the nine months ended September 30, 2017 follows: Expected price volatility 78.68% -78.77% Risk-free interest rate 1.77% -1.87% Weighted average expected life in years 6 years Dividend yield — Option activity during the nine months ended September 30, 2017 was as follows: Number of Weighted Aggregate Outstanding at January 1, 2017 3,468,991 $ 4.14 Granted in 2017 Officers and Directors 83,658 2.64 Others 825,003 1.91 Exercised (151,373 ) 2.07 Forfeitures (1,183,795 ) 5.89 Outstanding at September 30, 2017 3,042,484 $ 2.92 $ 1,466 As of September 30, 2017, options exercisable totaled 1,807,765. There was approximately $8.1 million of unrecognized compensation cost related to non-vested During the nine month ended September 31, 2017, an executive officer of the Company exercised approximately 0.15 million stock options, with net proceeds to the Company of approximately $0.3 million. Restricted stock units During the nine months ended September 30, 2017, 2,342,315 RSUs were granted to the Company’s executive officers and employees, with a fair market value of approximately $4.5 million. The fair value of restricted units is determined using quoted market prices of the Common Stock and the number of shares expected to vest. These RSUs were issued under the Company’s 2011 Equity Incentive Plan, as amended. Of the aforementioned 2017 RSU grants, 2,060,000 are one-half one-half one-half Number of Weighted Outstanding at January 1, 2017 4,584,297 $ 7.29 Granted: Executive officers 1,640,000 1.80 Directors 162,315 2.80 Employees 540,000 2.04 Vested (1,568,042 ) 2.17 Forfeitures (554,675 ) 2.28 Outstanding at September 30, 2017 4,803,895 $ 5.14 Warrants The Company has granted warrants to purchase shares of Common Stock. The fair value of each warrant grant is estimated on the grant date using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. Expected volatilities are based on implied volatilities from historical volatility of the Common Stock, and other factors estimated over the expected term of the warrants. Expected term of warrants granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus contract term. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term. The weighted average for key assumptions used in determining the fair value of warrants granted during the nine months ended September 30, 2017 follows: Expected price volatility 78.39% Risk-free interest rate 1.92% Weighted average expected life in years 6 years Dividend yield — Warrant activity during the nine months ended September 30, 2017 was as follows: Number of Weighted Aggregate Outstanding at January 1, 2017 84,986 $ 3.53 Granted in 2017 1,701,583 2.38 Exercised — — Forfeitures — — Outstanding at September 30, 2017 1,786,569 $ 2.43 $ 970

Earnings per Common Share

Earnings per Common Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Earnings per Common Share	14. Earnings per common share: The following table reconciles the numerators and denominators of the basic and diluted loss per share computations (in thousands, except per share data). Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic: Net income (loss) $ (11,951 ) $ (15,977 ) $ 21,495 $ (51,196 ) Weighted average common shares outstanding 55,604,708 53,767,099 55,170,569 53,531,770 Basic income (loss) per common share $ (0.21 ) $ (0.30 ) $ 0.39 $ (0.96 ) Diluted: Effect of dilutive securities: Net income (loss) $ (11,951 ) $ (15,977 ) $ 21,495 $ (51,196 ) Weighted average common shares outstanding 55,604,708 53,767,099 55,170,569 53,531,770 Effect of dilutive options and warrants — — 1,033,789 — Diluted weighted average common shares outstanding 55,604,708 53,767,099 56,204,358 53,531,770 Diluted income (loss) per common share $ (0.21 ) $ (0.30 ) $ 0.38 $ (0.96 ) Basic earnings per common share is calculated using the weighted average shares of Common Stock outstanding during the period. In addition to the weighted average shares of Common Stock outstanding, common equivalent shares from stock options, RSUs and warrants using the treasury stock method, are included in the diluted per share calculations unless the effect of inclusion would be antidilutive. During the three months ended September 30, 2017 and 2016, outstanding stock options, RSUs and warrants of 9,638,211 and 9,986,447, respectively, were not included in the computation of diluted earnings per common share, because to do so would have had an antidilutive effect. During the nine months ended September 30, 2017 and 2016, outstanding stock options, RSUs and warrants of 5,230,179 and 10,196,872, respectively, were not included in the computation of diluted earnings per common share, because to do so would have had an antidilutive effect.

Retirement Agreement

Retirement Agreement	9 Months Ended
	Sep. 30, 2017
Retirement Benefits [Abstract]
Retirement Agreement	15. Retirement agreement: On August 23, 2017, the Company and Mark A. Sirgo, the Company’s Vice Chairman, President and Chief Executive Officer (“Sirgo”), executed a Retirement Agreement (“Retirement Agreement”) memorializing the terms of Sirgo’s voluntary retirement from the Company, which will be effective January 2, 2018 (the “Retirement Date”, with the period from August 23, 2017 to the Retirement Date being referred to herein as the “Transition Period”). During the Transition Period and following the Retirement Date, Sirgo will continue to serve as Vice Chairman of the Company’s Board of Directors (the “Board”). Pursuant to the Retirement Agreement, Sirgo will continue to serve as the Company’s President and Chief Executive Officer during the Transition Period. By entering into the Retirement Agreement, the Company and Sirgo agreed to terminate Sirgo’s employment agreement with the Company, dated August 24, 2004, as amended by that First Amendment thereto (collectively with the related confidentiality agreement between the Company and Sirgo, the “Employment Agreement”) as of the Retirement Date, subject to those provisions of the Employment Agreement which survive termination (as the same were modified by the Retirement Agreement), including provisions related to confidentiality, non-solicitation non-competition. In connection with his retirement from the Company, and in consideration of his service to the Company (and in lieu of any similar benefits provided for in the Employment Agreement), Sirgo has received or will receive the following benefit pursuant to the Retirement Agreement: (i) a cash payment of $0.8 million (less applicable withholdings) which was paid by September 5, 2017; (ii) an additional cash payment equal to $0.8 million (less applicable withholdings) to be paid on January 15, 2018; and (iii) an additional potential cash payment of $0.2 million (less applicable withholdings) as provided for in Section 2(a) of the Retirement Agreement. In addition, pursuant to the Retirement Agreement: (i) as of the Retirement Date, all previously vested options held by Sirgo to purchase shares of Common Stock will continue for the life of such options (as opposed to such options terminating on the 90 th (ii) Sirgo will be entitled to receive his ordinary year end equity bonus award (in the form of RSUs) for his service as an officer of the Company during 2017, as determined by the Compensation Committee of the Board (the “2017 Equity Award”); provided, however, that (A) with respect to RSUs which by their terms would vest with the passage of time (“Time Vesting RSUs”), Sirgo shall receive a number of shares of Common Stock equal to (1) the Net Present Value (as defined in the Retirement Agreement) of the Time Vesting RSUs that would have been issued to Sirgo for the 2017 Equity Award had he not retired divided by (2) the 30-day “30-day (iii) as of the Retirement Date, all previously granted Time Vesting RSUs issued to Sirgo pursuant to the Plan that are unvested as of the Retirement Date shall terminate and, in lieu thereof, Sirgo shall receive a one-time 30-day one-time (iv) Sirgo will continue to be entitled to receive (if applicable) one hundred percent (100%) of his regular award of vested Common Stock (the “LTIP Stock”) under the Company’s Performance Long Term Incentive Plan (the “ LTIP”), with the amount of such LTIP Stock to be determined and issued in accordance with the terms and provisions of the LTIP. The issuance of the LTIP Stock to Sirgo as provided for above shall occur, if applicable, concurrently with the issuance of LTIP Stock to the Company’s officers, but no later than March 15, 2018. Should Sirgo (i) voluntarily resign from his officer positions with the Company prior to the Retirement Date or (ii) voluntarily resign from the Board, in each case prior to payment of any amount of LTIP Stock, Sirgo’s right to receive LTIP Stock from and after that time shall terminate. In the event a Change in Control (as defined in the Retirement Agreement) occurs on or within twelve (12) months following the Retirement Date with a company with whom Sirgo had contact about a potential transaction in his capacity as an employee of the Company prior to the Retirement Date, then the Company shall issue to Sirgo, as an additional retirement benefit, fully vested shares of Common Stock in an amount equal to the number of shares Sirgo would have received pursuant to the LTIP had he remained employed with the Company through the Change in Control. For purposes of this Agreement, the term “Change of Control” means the occurrence of any one or more of the following events (it being agreed that, with respect to paragraphs (i) and (iii) of this definition below, a “Change of Control” shall not be deemed to have occurred if the applicable third party acquiring party is an “affiliate” of the Company within the meaning of Rule 405 promulgated under the Securities Act of 1933, as amended): (i) an acquisition (whether directly from the Company or otherwise) of any voting securities of the Company (the “ Voting Securities ”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities and Exchange Act of 1934, as amended (the “ 1934 Act ”)), immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of forty percent (40%) or more of the combined voting power of the Company’s then outstanding Voting Securities. (ii) the individuals who, as of the date hereof, are members of the Company’s Board of Directors cease, by reason of a financing, merger, combination, acquisition, takeover or other non-ordinary course transaction affecting the Company, to constitute at least fifty-one percent (51%) of the members of the Board of Directors; or (iii) approval by the Board of Directors and, if required, stockholders of the Company, or execution by the Company of any definitive agreement with respect to, or the consummation of (it being understood that the mere execution of a term sheet, memorandum of understanding or other non-binding document shall not constitute a Change of Control): (A) a merger, consolidation or reorganization involving the Company, where either or both of the events described in clauses (i) or (ii) above would be the result; (B) a liquidation or dissolution of or appointment of a receiver, rehabilitator, conservator or similar person for, or the filing by a third party of an involuntary bankruptcy against, the Company; or (C) an agreement for the sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a subsidiary of the Company).” If the Retirement Date occurs after there has been a Change in Control, an additional cash payment equal to $0.2 million (less applicable withholdings) (the “CIC Retirement Payment”) to be paid in lump sum within ten (10) days of the Retirement Date, and (iv) if a Change in Control occurs on or after the Retirement Date and within twelve (12) months following the Retirement Date, with a company with whom Sirgo had contact about a potential transaction in his capacity as an employee of the Company prior to the Retirement Date, then the Company shall pay to Sirgo an additional amount equal to $0.2 million (less applicable withholdings) (the “Additional Retirement Payment”) in lump sum on the closing of the Change in Control. The Retirement Agreement also contains other customary provisions, including provisions for Sirgo’s continuing participation in certain Company employee benefit plans, mutual releases of claims by the Company and Sirgo (subject to certain exceptions) and a covenant of cooperation.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	16. Commitments and contingencies: Litigation related to ONSOLIS ® On November 2, 2010, MonoSol Rx LLC (“MonoSol”) filed an action against the Company and its commercial partners for ONSOLIS ® ® ® ® ® ® ® Based on the Company’s original assertion that its proprietary manufacturing process for ONSOLIS ® ® ® ® ® ® Litigation related to BUNAVAIL ® On October 29, 2013, Reckitt Benckiser, Inc., RB Pharmaceuticals Limited, and MonoSol (collectively, the RB Plaintiffs) filed an action against the Company relating to its BUNAVAIL ® ® ® ® On September 20, 2014, based upon the Company’s position and belief that its BUNAVAIL ® ® inter partes 15-19. On September 22, 2014, the RB Plaintiffs filed an action against the Company (and its commercial partner) relating to its BUNAVAIL ® ® ® In a related matter, on October 28, 2014, the Company filed multiple IPR requests on the ’167 Patent demonstrating that certain claims of such patent were anticipated by or obvious in light of prior art references, including prior art references not previously considered by the USPTO, and thus, invalid. The USPTO instituted three of the four IPR requests and the Company filed a request for rehearing for the non-instituted ® On January 13, 2017, MonoSol filed a complaint in the United States District Court for the District of New Jersey alleging BELBUCA ® Teva Pharmaceuticals (formerly Actavis) On February 8, 2016, the Company received a notice relating to a Paragraph IV certification from Actavis Laboratories UT, Inc. (“Actavis”) seeking to find invalid three Orange Book listed patents (the “BUNAVAIL ® ® ® ® ® The Company asserted three different patents against Actavis, the ’019 Patent, the ’866 Patent, and the ’177 Patent. Actavis did not raise non-infringement non-infringement The Company believes that Actavis is unlikely to prevail on its claims that the ’019, ’866, and ’177 Patents are invalid, and, as the Company has done in the past, intends to vigorously defend its intellectual property. Each of the three patents carries the presumption of validity, and the ’019 Patent has already been the subject of an unrelated IPR before the USPTO under which the Company prevailed, and all claims of the ’019 Patent survived. IPR petitioner MonoSol’s request for rehearing of the final IPR decision regarding the ’019 Patent was denied by the USPTO on December 19, 2016. MonoSol did not appeal and the decision is final. On December 20, 2016, the USPTO issued U.S. Patent No. 9,522,188 (“the “’188 Patent”), and this patent was properly listed in the Orange Book as covering the BUNAVAIL ® On January 31, 2017, the Company received a notice relating to a Paragraph IV certification from Teva Pharmaceuticals USA (“Teva”) relating to Teva’s ANDA on additional strengths of BUNAVAIL ® ® ® On May 23, 2017, the USPTO issued U.S. Patent 9,655,843 (the “’843 Patent”), and this patent was properly listed in the Orange Book as covering the BUNAVAIL ® On October 12, 2017, the Company announced that it had entered into a settlement agreement with Teva that resolved the Company’s BUNAVAIL ® non-exclusive ® Litigations related to BELBUCA ® The Company received notices regarding Paragraph IV certifications from Teva on November 8, 2016, November 10, 2016, and December 22, 2016, seeking to find invalid two Orange Book listed patents (the “BELBUCA ® ® ® ® month stay on the FDA’s ability to give final approval to any proposed products that reference BELBUCA ® The Company has asserted two different patents against Teva, the ’019 Patent and the ’866 Patent. Teva did not contest infringement of the claims of the ’019 Patent and also did not contest infringement of the claims of the ’866 Patent that cover BELBUCA ® The Company believes that Teva is unlikely to prevail on its claims that the ’019 and ’866 Patents are invalid, and, as the Company has done in the past, intends to vigorously defend its intellectual property. Both of the patents carry the presumption of validity, and the ’019 Patent has already been the subject of an unrelated IPR before the USPTO under which the Company prevailed, and all claims of the ’019 Patent survived. IPR Petitioner MonoSol’s request for rehearing of the final IPR decision regarding the ’019 Patent was denied by the USPTO on December 19, 2016. MonoSol did not file a timely appeal at the Federal Circuit. On May 23, 2017, the USPTO issued U.S. Patent 9,655,843 (the “’843 Patent”), and this patent was properly listed in the Orange Book as covering the BELBUCA ® A five (5) day bench trial is currently scheduled to begin on November 19, 2018. On August 28, 2017, the Court entered orders staying both BELBUCA ® ®

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	17. Subsequent events: On October 5, 2017, the Company entered into a subsequent party acknowledgement relating to its participation in the Opioid PMR Consortium (the “OPC”). The participants are member companies, collectively undertaking various observational and clinical studies in order to satisfy certain post-marketing requirements by the FDA as holders of a NDA for extended-release and long-acting opioid analgesics. As a requirement of joining the OPC, the Company was required to pay its share of the previous expenses incurred and funded by the existing member companies. The Company’s pro-rata

Organization, Basis of Presen24

Organization, Basis of Presentation and Summary of Significant Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Overview	Overview BioDelivery Sciences International, Inc., together with its subsidiaries (collectively, the “Company”) is a specialty pharmaceutical company that is developing and commercializing, either on its own or in partnerships with third parties, new applications of approved therapeutics to address important unmet medical needs using both proven and new drug delivery technologies. The Company is focusing on developing products to meet unmet patient needs in the areas of pain management and addiction. The accompanying unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring adjustments) necessary for a fair presentation of these financial statements. The condensed consolidated balance sheet at December 31, 2016 has been derived from the Company’s audited consolidated financial statements included in its annual report on Form 10-K Form 10-K Operating results for the three and nine month periods ended September 30, 2017 are not necessarily indicative of results for the full year or any other future periods. As used herein, the Company’s common stock, par value $.001 per share, is referred to as the “Common Stock.”
Principles of consolidation	Principles of consolidation The condensed consolidated financial statements include the accounts of the Company, Arius Pharmaceuticals, Inc. (“Arius”), Arius Two, Inc. (“Arius Two”) and Bioral Nutrient Delivery, LLC (“BND”). For each period presented BND has been an inactive subsidiary. All significant inter-company balances and transactions have been eliminated.
Use of estimates in financial statements	Use of estimates in financial statements The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The Company reviews all significant estimates affecting the consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their issuance. Significant estimates of the Company include: revenue recognition, sales allowances such as returns of product sold, government program rebates, customer coupon redemptions, wholesaler/pharmacy discounts, product service fees, rebates and chargebacks, sales commissions, amortization, stock-based compensation, determination of fair values of assets and liabilities in connection with business combinations, and deferred income taxes.
Reacquisition of BELBUCA	Reacquisition of BELBUCA ® On December 7, 2016, the Company entered into an agreement (the “Termination Agreement”) with Endo Pharmaceuticals, Inc. (“Endo”) terminating Endo’s licensing of rights to the Company’s BELBUCA ® ® ®
Inventory	Inventory Other than the inventory purchased from Endo that remains in inventory at September 30, 2017 and is stated at fair value, inventories are stated at the lower of cost or net realizable value with costs determined for each batch under the first-in, first-out On a quarterly basis, the Company analyzes its inventory levels and records allowances for inventory that has become obsolete, inventory that has a cost basis in excess of the expected net realizable value and inventory that is in excess of expected demand based upon projected product sales. The Company recorded $0.2 million in inventory allowances as of September 30, 2017. There were no allowances recorded as of December 31, 2016.
Deferred revenue	Deferred revenue Consistent with the Company’s revenue recognition policy, deferred revenue represents cash received in advance for licensing fees, consulting, research and development services and related supply agreements. Such payments are reflected as deferred revenue until recognized under the Company’s revenue recognition policy. Deferred revenue is classified as current if management believes the Company will be able to recognize the deferred amount as revenue within twelve months of the balance sheet date. The Company deferred sales, until January 1, 2017, of its BUNAVAIL ® ® ®
Revenue recognition	Revenue recognition Net product sales Beginning in the first quarter of 2017, the Company has determined that it had sufficient experience with BELBUCA ® ® ex-factory ® ® sell-in The Company establishes allowances for estimated rebates, chargebacks and product returns based on numerous qualitative and quantitative factors, including: • the number of and specific contractual terms of agreements with customers; • estimated levels of inventory in the distribution channel; • historical rebates, chargebacks and returns of products; • direct communication with customers; • anticipated introduction of competitive products or generics; • anticipated pricing strategy changes by the Company and/or its competitors; • analysis of prescription data gathered by a third-party prescription data provider; • the impact of changes in state and federal regulations; and • the estimated remaining shelf life of products. In its analyses, the Company uses prescription data purchased from a third-party data provider to develop estimates of historical inventory channel sell-through. The Company utilizes an internal analysis to compare historical net product shipments to estimated historical prescriptions written. Based on that analysis, management develops an estimate of the quantity of product in the channel which may be subject to various rebate, chargeback and product return exposures. To estimate months of ending inventory in the Company’s distribution channel, the Company divides estimated ending inventory in the distribution channel by the Company’s recent prescription data, not taking into account any future anticipated demand growth beyond the succeeding quarter. Monthly for each product line, the Company prepares an internal estimate of ending inventory units in the distribution channel by adding estimated inventory in the channel at the beginning of the period, plus net product shipments for the period, less estimated prescriptions written for the period. This is done for each product line by applying a rate of historical activity for rebates, chargebacks and product returns, adjusted for relevant quantitative and qualitative factors discussed above, to the potential exposed product estimated to be in the distribution channel. Product Returns 18-month Rebates Price Adjustments and Chargebacks The Company, from time to time, offers certain promotional product-related incentives to its customers. These programs include certain product incentives to pharmacy customers and other sales stocking allowances. The Company has voucher programs for BELBUCA ® ® point-of-sale Prompt Payment Discounts Gross to Net Accruals
Cost of sales	Cost of sales Cost of sales includes the direct costs attributable to the production of BREAKYL ™ ™ out-licensed For BELBUCA ® ® ® ®
Recent accounting pronouncements	Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, 2016-10, 2016-10 The FASB’s new leases standard, ASU 2016-02 2016-02 right-of-use In January 2017, the FASB issued ASU 2017-01, Business In January 2017, the FASB issued ASU Update No. 2017-04, Intangibles—Goodwill in-process

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Summary of Inventories	The following table represents the components of inventory as of: September 30, December 31, Raw materials & supplies $1,752 $ 978 Work-in-process 2,180 1,660 Finished goods 2,687 730 Finished goods reserve (153) — Total inventories, net $6,466 $ 3,368

Accounts Payable and Accrued 26

Accounts Payable and Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Summary of Components of Accounts Payable and Accrued Liabilities	The following table represents the components of accounts payable and accrued liabilities as of: September 30, December 31, Accounts payable $11,645 $ 9,397 Accrued price adjustments 3,036 592 Accrued returns 857 — Accrued acquisition consideration 4,838 — Accrued rebates 5,057 3,842 Accrued chargebacks 101 10 Accrued compensation and benefits 3,067 2,052 Accrued royalties 488 518 Accrued clinical trial costs 7 615 Accrued legal costs 562 490 Accrued manufacturing costs 200 200 Accrued sales and marketing costs — 193 Accrued other 949 265 Total accounts payable and accrued expenses $30,807 $ 18,174

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Summarized Category of Fixed Assets	Property and equipment, summarized by major category, consist of the following as of: September 30, December 31, Machinery & equipment $ 5,629 $ 4,476 Computer equipment & software 394 464 Office furniture & equipment 169 202 Leasehold improvements 44 53 Idle equipment 766 1,486 Total 7,002 6,681 Less accumulated depreciation (2,800) (2,451 ) Total property, plant & equipment, net $ 4,202 $ 4,230

Business Combination and BELB28

Business Combination and BELBUCA Acquisition (Tables) - BELBUCA [Member]	9 Months Ended
	Sep. 30, 2017
Summary of Asset Purchase Price and Estimated Values of Assets Acquired and Liabilities Assumed	The following table summarizes the consideration paid to acquire BELBUCA ® Asset purchase price: Deferred cash consideration to Endo $ 7,536 Total asset purchase price $ 7,536 Estimated fair value of assets acquired: Current BELBUCA ® work-in $ 5,412 BELBUCA ® 432 License and distribution rights intangible assets 45,000 Deferred tax liability (15,972 ) Amount attributable to assets acquired $ 34,872 Bargain purchase gain $ (27,336 )
Summary of Proforma Impact of Acquisition	The following pro forma combined results of operations are provided for the year ended December 31, 2016, as though the BELBUCA ® ® ® ® (in thousands, except per share data) December 31, Revenue $ 25,010 Net loss $ (201,769 ) Pro forma net loss per common share Basic $ (3.76 ) Diluted $ (3.76 )

Term Loan Agreement (CRG) (Tabl

Term Loan Agreement (CRG) (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Future Maturities of CRG Obligation	The following table represents future maturities of the CRG obligation as of September 30, 2017: 2017 $ — 2018 — 2019 — 2020 15,054 2021 15,054 2022 15,054 Total maturities $ 45,162 Unamortized discount and loan costs (9,461 ) Total CRG obligation $ 35,701

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Summary of Net Sales by Product	The following table presents net sales by product (in thousands): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 BELBUCA ® $ 6,437 $ — $ 17,554 $ — BUNAVAIL ® 1,681 2,009 6,244 6,221 Net product sales $ 8,118 $ 2,009 $ 23,798 $ 6,221

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Summary of Allocated Stock-based Compensation Expense	The Company’s stock-based compensation expense is allocated between research and development and selling, general and administrative as follows: Three months ended, Nine months ended, Stock-based compensation expense September 30, September 30, September 30, September 30, Research and Development $ 0.5 $ 0.5 $ 1.3 $ 2.1 Selling, General and Administrative $ 3.7 $ 3.6 $ 8.9 $ 9.5
Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted	The weighted average for key assumptions used in determining the fair value of options granted during the nine months ended September 30, 2017 follows: Expected price volatility 78.68% -78.77% Risk-free interest rate 1.77% -1.87% Weighted average expected life in years 6 years Dividend yield —
Summary of Stock Option Activity	Option activity during the nine months ended September 30, 2017 was as follows: Number of Weighted Aggregate Outstanding at January 1, 2017 3,468,991 $ 4.14 Granted in 2017 Officers and Directors 83,658 2.64 Others 825,003 1.91 Exercised (151,373 ) 2.07 Forfeitures (1,183,795 ) 5.89 Outstanding at September 30, 2017 3,042,484 $ 2.92 $ 1,466
Summary of Restricted Stock Activity	Number of Weighted Outstanding at January 1, 2017 4,584,297 $ 7.29 Granted: Executive officers 1,640,000 1.80 Directors 162,315 2.80 Employees 540,000 2.04 Vested (1,568,042 ) 2.17 Forfeitures (554,675 ) 2.28 Outstanding at September 30, 2017 4,803,895 $ 5.14
Weighted Average for Key Assumptions Used in Determining Fair Value of Warrants Granted	The weighted average for key assumptions used in determining the fair value of warrants granted during the nine months ended September 30, 2017 follows: Expected price volatility 78.39% Risk-free interest rate 1.92% Weighted average expected life in years 6 years Dividend yield —
Summary of Warrant Activity	Warrant activity during the nine months ended September 30, 2017 was as follows: Number of Weighted Aggregate Outstanding at January 1, 2017 84,986 $ 3.53 Granted in 2017 1,701,583 2.38 Exercised — — Forfeitures — — Outstanding at September 30, 2017 1,786,569 $ 2.43 $ 970

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Reconciliation of Numerators and Denominators of Basic and Diluted Loss Per Share Computations	The following table reconciles the numerators and denominators of the basic and diluted loss per share computations (in thousands, except per share data). Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic: Net income (loss) $ (11,951 ) $ (15,977 ) $ 21,495 $ (51,196 ) Weighted average common shares outstanding 55,604,708 53,767,099 55,170,569 53,531,770 Basic income (loss) per common share $ (0.21 ) $ (0.30 ) $ 0.39 $ (0.96 ) Diluted: Effect of dilutive securities: Net income (loss) $ (11,951 ) $ (15,977 ) $ 21,495 $ (51,196 ) Weighted average common shares outstanding 55,604,708 53,767,099 55,170,569 53,531,770 Effect of dilutive options and warrants — — 1,033,789 — Diluted weighted average common shares outstanding 55,604,708 53,767,099 56,204,358 53,531,770 Diluted income (loss) per common share $ (0.21 ) $ (0.30 ) $ 0.38 $ (0.96 )

Organization, Basis of Presen33

Organization, Basis of Presentation and Summary of Significant Policies - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Basis Of Presentation [Line Items]
Common Stock, par value	$ 0.001		$ 0.001		$ 0.001
Inventory allowances recorded	$ 200,000		$ 200,000		$ 0
Product sales	$ 8,118,000	$ 2,009,000	$ 23,798,000	$ 6,221,000
Sales return maximum duration			18 months
Offered period for sales return prior to expiration			6 months
Offered period for sales return subsequent to expiration			12 months
Discount for prompt payment	2.00%		2.00%
BELBUCA [Member]
Basis Of Presentation [Line Items]
Product sales	$ 6,437,000		$ 17,554,000		$ 0
Endo Agreement [Member]
Basis Of Presentation [Line Items]
Termination agreement date			Dec. 7, 2016
License termination effective date			Jan. 6, 2017
Minimum [Member]
Basis Of Presentation [Line Items]
Period of payments from customers			30 days
Accrual to payment cycle period			1 month
Maximum [Member]
Basis Of Presentation [Line Items]
Period of payments from customers			37 days
Accrual to payment cycle period			3 months

Liquidity and Management's Pl34

Liquidity and Management's Plans - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Liquidity And Managements Plans [Line Items]
Cash	$ 19,746	$ 44,682	$ 32,019	$ 83,560
Cash generated	(12,273)	$ (38,878)
Stockholders' equity (deficit)	18,855		$ (17,665)
CRG [Member]
Liquidity And Managements Plans [Line Items]
Additional borrowing capacity	$ 15,000

Inventory - Summary of Inventor

Inventory - Summary of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials & supplies	$ 1,752	$ 978
Work-in-process	2,180	1,660
Finished goods	2,687	730
Finished goods reserve	(153)
Total inventories, net	$ 6,466	$ 3,368

Accounts Payable and Accrued 36

Accounts Payable and Accrued Liabilities - Summary of Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accounts payable	$ 11,645	$ 9,397
Accrued price adjustments	3,036	592
Accrued returns	857
Accrued acquisition consideration	4,838
Accrued rebates	5,057	3,842
Accrued chargebacks	101	10
Accrued compensation and benefits	3,067	2,052
Accrued royalties	488	518
Accrued clinical trial costs	7	615
Accrued legal costs	562	490
Accrued manufacturing costs	200	200
Accrued sales and marketing costs		193
Accrued other	949	265
Total accounts payable and accrued expenses	$ 30,807	$ 18,174

Property and Equipment - Summar

Property and Equipment - Summarized Category of Fixed Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property, plant & equipment, gross	$ 7,002	$ 6,681
Less accumulated depreciation	(2,800)	(2,451)
Total property, plant & equipment, net	4,202	4,230
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant & equipment, gross	5,629	4,476
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property, plant & equipment, gross	394	464
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant & equipment, gross	169	202
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant & equipment, gross	44	53
Idle Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant & equipment, gross	$ 766	$ 1,486

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation	$ 200	$ 100	$ 465	$ 325

License and Development Agree39

License and Development Agreements - Meda License, Development and Supply Agreements - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2015
Revenue Recognition, Milestone Method [Line Items]
Contract revenues	$ 1,194	$ 21,194	$ 2,500
U.S. [Member] | Milestones [Member]
Revenue Recognition, Milestone Method [Line Items]
Contract revenues				$ 1,000

License and Development Agree40

License and Development Agreements - Collegium License and Development Agreement - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Jun. 30, 2016	Sep. 30, 2017	Mar. 31, 2017	Jan. 31, 2012
Revenue Recognition, Milestone Method [Line Items]
Non-refundable payment received				$ 30
Collegium License and Development Agreement [Member]
Revenue Recognition, Milestone Method [Line Items]
Non-refundable payment received	$ 2.5
Execution term of license agreement	30 days
Payment receivable upon first commercial sale		$ 4
Payment receivable related to patent milestone			$ 3
Payment receivable on achievement of potential sales milestones		$ 17
Royalty payment, term		upper-teen percent royalties payable by Collegium to the Company based on various annual U.S. net sales thresholds, subject to customary adjustments and the royalty sharing arrangements

License and Development Agree41

License and Development Agreements - Endo License and Development Agreement - Additional Information (Detail) $ in Millions	1 Months Ended				9 Months Ended
	Nov. 30, 2015USD ($)	Oct. 31, 2015USD ($)	Feb. 28, 2015USD ($)	May 31, 2012USD ($)	Sep. 30, 2017USD ($)Clinical_Trials	Jun. 30, 2014USD ($)	Jan. 31, 2014USD ($)	Jan. 31, 2012USD ($)
Revenue Recognition, Milestone Method [Line Items]
Non-refundable payment received								$ 30
Potential milestone payments on intellectual property rights				$ 15
Potential payments upon filing and acceptance			$ 10
Potential milestone payment receivable upon regulatory approval		$ 50
Milestone payment upon regulatory approval deferred for future revenue recognition	$ 20
Patent extension starting period					2,020
Patent extension ending period					2,027
Royalty payment description					$50 million upon regulatory approval, earned in October 2015 and received in November 2015. Of the $50 million received in November 2015, $20 million related to a patent extension and was recorded as deferred revenue because all or a portion of such $20 million was contingently refundable to Endo if a third party generic product was introduced in the U.S. during the patent extension period from 2020 to 2027. However, due to the Company and Endo entering into a Termination Agreement on December 7, 2016 which terminated the BELBUCA® license to Endo effective January 6, 2017, the deferred $20 million was recognized as revenue during the nine months ended September 30, 2017 in the accompanying condensed consolidated statement of operations (see note 7, Business Combination and Asset Acquisition).
Endo Agreement [Member]
Revenue Recognition, Milestone Method [Line Items]
Deferred revenue refund payment					$ 20
Termination agreement date					Dec. 7, 2016
License termination effective date					Jan. 6, 2017
Clinical Trials Full Enrollment [Member]
Revenue Recognition, Milestone Method [Line Items]
Potential milestone payment received, clinical development					$ 20
Number of clinical trials | Clinical_Trials					2
Clinical Trials One [Member]
Revenue Recognition, Milestone Method [Line Items]
Potential milestone payment received, clinical development							$ 10
Clinical Trials Two [Member]
Revenue Recognition, Milestone Method [Line Items]
Potential milestone payment received, clinical development						$ 10

Business Combination and BELB42

Business Combination and BELBUCA Acquisition - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 06, 2017	Jan. 31, 2017	Sep. 30, 2017
Business Acquisition [Line Items]
Income tax benefit			$ 15,972
Bargain purchase gain			$ 27,336
BELBUCA [Member]
Business Acquisition [Line Items]
Useful life of equipment			7 years
Deferred tax liability	$ (15,972)
Income tax benefit			$ 15,972
Bargain purchase gain	$ 27,336	$ 27,336
BELBUCA [Member] | License and Distribution Rights [Member]
Business Acquisition [Line Items]
Amortization of intangible asset			10 years
Endo Agreement [Member]
Business Acquisition [Line Items]
Termination agreement date			Dec. 7, 2016
License termination effective date			Jan. 6, 2017
Potential milestone payments on intellectual property rights			$ 5,000
Term of Endo Agreement			2 years
Contract termination claims, description			Together with the Asset Purchase Price, pursuant to the terms of the Termination Agreement, the Company will also pay to Endo a fee in the amount of $5 million in consideration for (i) Endo's agreement not to compete for a period of two years from the closing date of the termination agreement and (ii) Endo's waiver of its right to sell product for twelve months following the closing of the termination agreement.

Business Combination and BELB43

Business Combination and BELBUCA Acquisition - Summary of Asset Purchase Price and Estimated Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Jan. 06, 2017	Jan. 31, 2017	Sep. 30, 2017
Asset purchase price:
Deferred cash consideration to Endo			$ 3,902
Estimated fair value of assets acquired:
Bargain purchase gain			$ (27,336)
BELBUCA [Member]
Asset purchase price:
Deferred cash consideration to Endo	$ 7,536
Total asset purchase price	7,536
Estimated fair value of assets acquired:
Current BELBUCA® product inventory and work-in process	5,412
BELBUCA®-related manufacturing equipment	432
License and distribution rights intangible assets	45,000
Deferred tax liability	(15,972)
Amount attributable to assets acquired	34,872
Bargain purchase gain	$ (27,336)	$ (27,336)

Business Combination and BELB44

Business Combination and BELBUCA Acquisition - Summary of Proforma Impact of Acquisition (Detail) - BELBUCA [Member] $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)$ / shares
Business Acquisition [Line Items]
Revenue | $	$ 25,010
Net loss | $	$ (201,769)
Pro forma net loss per common share
Basic | $ / shares	$ (3.76)
Diluted | $ / shares	$ (3.76)

Other License Agreements and 45

Other License Agreements and Acquired Product Rights - Additional Information (Detail)

Jul. 12, 2017CAD

Oct. 07, 2010USD ($)

Oct. 31, 2017CAD

Sep. 30, 2017USD ($)

Aug. 31, 2017USD ($)

Aug. 31, 2017CAD

Jun. 30, 2017USD ($)

Mar. 31, 2017USD ($)

Feb. 28, 2017USD ($)

Jun. 30, 2016USD ($)

Feb. 28, 2016USD ($)

Sep. 30, 2017USD ($)

Sep. 30, 2016USD ($)

Sep. 30, 2017USD ($)

Purdue Pharma [Member] | BELBUCA [Member] | Collaborative Arrangement, Product [Member]

Other License Agreements And Acquired Product Rights [Line Items]

Upfront and potential milestones payable | CAD

CAD 1,500,000

Milestone based payments received | CAD

CAD 1,000,000

CAD 500,000

Maximum [Member] | Purdue Pharma [Member] | BELBUCA [Member] | Collaborative Arrangement, Product [Member]

Other License Agreements And Acquired Product Rights [Line Items]

Upfront and potential milestones payable | CAD

CAD 4,500,000

Subsequent Event [Member] | Purdue Pharma [Member] | BELBUCA [Member] | Collaborative Arrangement, Product [Member]

Other License Agreements And Acquired Product Rights [Line Items]

Milestone based payments received | CAD

CAD 1,000,000

TTY License and Supply Agreement [Member]

Other License Agreements And Acquired Product Rights [Line Items]

Upfront payment | $

$ 300,000

Milestone payments | $

$ 1,300,000

Term of the agreement

15 years

Milestone payment received | $

$ 300,000

$ 200,000

$ 100,000

$ 30,000

$ 200,000

$ 240,000

$ 240,000

$ 0

Milestone payment recorded in statements of operations | $

$ 500,000

$ 1,100,000

Note Payable (MidCap Loan) - Ad

Note Payable (MidCap Loan) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Feb. 21, 2017	Sep. 30, 2017	May 29, 2015
CRG [Member]
Debt Instrument [Line Items]
License termination effective date		Feb. 21, 2017
Number of warrants to purchase common stock	1,701,583
Exercise price of warrants to purchase common stock	$ 2.38
Secured Loan Facility [Member] | MidCap Financial Trust [Member]
Debt Instrument [Line Items]
Secured loan facility			$ 30
Net proceeds in aggregate amount	$ 29.4
Number of warrants to purchase common stock		84,986
Exercise price of warrants to purchase common stock		$ 3.53
Class Of Warrant Or Rights Date From Which Warrants Or Rights Expired		2021-05
Interest Expense [Member] | MidCap Financial Trust [Member]
Debt Instrument [Line Items]
Deferred loan costs expensed		$ 0.7

Term Loan Agreement (CRG) - Add

Term Loan Agreement (CRG) - Additional Information (Detail)	Feb. 21, 2017USD ($)Warrant$ / sharesshares
Debt Instrument [Line Items]
Remainder of borrowings	$ 13,700,000
CRG [Member]
Debt Instrument [Line Items]
Borrowings outstanding	45,000,000
Additional borrowing capacity upon milestone achievement	30,000,000
Second draw borrowing capacity upon milestone achievement	$ 5,000,000
Loan agreement term	6 years
Loan agreement interest only term	3 years
Loan agreement interest only term threshold	4 years
Agreement maturity date	Dec. 31, 2022
Interest on borrowings	12.50%
Interest on borrowings, interest only period percentage	3.50%
Effective interest on borrowings	9.00%
Final payment fee rate	9.00%
Prepayment period of outstanding principal and accrued unpaid interest	5 years
Prepayment fee after	$ 0
Additional interest rate	4.00%
Number of warrants | Warrant	5
Warrants issued to purchase shares of common stock | shares	1,701,583
Warrants exercisable period | $ / shares	$ 2.38
CRG [Member] | Tranche One [Member]
Debt Instrument [Line Items]
Additional borrowing capacity upon milestone achievement	$ 15,000,000
CRG [Member] | Tranche Two [Member]
Debt Instrument [Line Items]
Additional borrowing capacity upon milestone achievement	$ 15,000,000

Term Loan Agreement (CRG) - Fut

Term Loan Agreement (CRG) - Future Maturities of CRG Obligation (Detail) - CRG [Member] $ in Thousands	Sep. 30, 2017USD ($)
Debt Instrument [Line Items]
2,017	$ 0
2,018	0
2,019	0
2,020	15,054
2,021	15,054
2,022	15,054
Total maturities	45,162
Unamortized discount and loan costs	(9,461)
Total CRG obligation	$ 35,701

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017Segment
Segment Reporting [Abstract]
Number of reportable segment	1

Segment Reporting - Summary of

Segment Reporting - Summary of Net Sales by Product (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Sales Information [Line Items]
Net product sales	$ 8,118	$ 2,009	$ 23,798	$ 6,221
BELBUCA [Member]
Sales Information [Line Items]
Net product sales	6,437		17,554		$ 0
BUNAVAIL [Member]
Sales Information [Line Items]
Net product sales	$ 1,681	$ 2,009	$ 6,244	$ 6,221

Stockholders' Equity - Addition

Stockholders' Equity - Additional information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested share-based compensation awards granted	$ 8,100
Unrecognized compensation cost related to non-vested share-based compensation awards granted year	2,020
Stock option exercisable	1,807,765
Number of shares exercised	151,373
Proceeds from exercise of stock options	$ 313	$ 297
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity instruments awarded in period	2,342,315
Fair market value of RSUs granted	$ 4,500
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of shares	3 years
Number of equity instruments awarded in period	2,060,000
Restricted Stock Units (RSUs) [Member] | Time-Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of vesting	50.00%
Restricted Stock Units (RSUs) [Member] | Performance-Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of vesting	50.00%
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of shares	1 year
Number of equity instruments awarded in period	120,000
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	908,661
Fair market value of shares granted	$ 1,800
Term of options granted period	10 years
Vesting period of shares	3 years
Employees [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity instruments awarded in period	540,000
Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of options granted period	10 years
Vesting period of shares	1 year
Vesting period, description	One-half of those Options vest at grant date and the remaining half vest in one year
Directors [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity instruments awarded in period	162,315
Directors [Member] | Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of shares	1 year
Vesting period, description	One-half of those RSUs vest at grant date and the remaining half vest in one year
Number of equity instruments awarded in period	162,315
Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares exercised	150,000
Proceeds from exercise of stock options	$ 300
Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity instruments awarded in period	1,640,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Allocated Stock-based Compensation Expense (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 0.5	$ 0.5	$ 1.3	$ 2.1
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 3.7	$ 3.6	$ 8.9	$ 9.5

Stockholders' Equity - Weighted

Stockholders' Equity - Weighted Average for Key Assumptions Used in Determining Fair Value of Options Granted (Detail)	9 Months Ended
	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average expected life in years	6 years
Dividend yield	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected price volatility	78.68%
Risk-free interest rate	1.77%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected price volatility	78.77%
Risk-free interest rate	1.87%

Stockholders' Equity - Summar54

Stockholders' Equity - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding at beginning of period | shares	3,468,991
Number of Shares, Exercised | shares	(151,373)
Number of Shares, Forfeitures | shares	(1,183,795)
Number of Shares, Outstanding at end of period | shares	3,042,484
Weighted Average Exercise Price Per Share, Outstanding at beginning of period | $ / shares	$ 4.14
Weighted average Exercise Price Per Share, Exercised | $ / shares	2.07
Weighted Average Exercise Price Per Share, Forfeitures | $ / shares	5.89
Weighted Average Exercise Price Per Share, Outstanding at end of period | $ / shares	$ 2.92
Aggregate Intrinsic Value, Granted | $	$ 0
Aggregate Intrinsic Value, Outstanding at end of period | $	$ 1,466
Officers and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted | shares	83,658
Weighted Average Exercise Price Per Share, Granted | $ / shares	$ 2.64
Others [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted | shares	825,003
Weighted Average Exercise Price Per Share, Granted | $ / shares	$ 1.91

Stockholders' Equity - Summar55

Stockholders' Equity - Summary of Restricted Stock Activity (Detail) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted Shares, Outstanding at beginning of period	4,584,297
Number of Shares, Granted	2,342,315
Number of Restricted Shares, Vested	(1,568,042)
Number of Restricted Shares, Forfeitures	(554,675)
Number of Restricted Shares, Outstanding at end of period	4,803,895
Weighted Average Fair Market Value Per RSU, Outstanding at beginning of period | $ / shares	$ 7.29
Weighted Average Fair Market Value Per RSU, Vested | $ / shares	2.17
Weighted Average Fair Market Value Per RSU, Forfeitures | $ / shares	2.28
Weighted Average Fair Market Value Per RSU, Outstanding at end of period | $ / shares	$ 5.14
Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	1,640,000
Weighted Average Fair Market Value Per RSU, Granted | $ / shares	$ 1.80
Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	162,315
Weighted Average Fair Market Value Per RSU, Granted | $ / shares	$ 2.80
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted	540,000
Weighted Average Fair Market Value Per RSU, Granted | $ / shares	$ 2.04

Stockholders' Equity - Weight56

Stockholders' Equity - Weighted Average for Key Assumptions Used in Determining Fair Value of Warrants Granted (Detail)	9 Months Ended
	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average expected life in years	6 years
Dividend yield	0.00%
Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected price volatility	78.39%
Risk-free interest rate	1.92%
Weighted average expected life in years	6 years
Dividend yield	0.00%

Stockholders' Equity - Summar57

Stockholders' Equity - Summary of Warrant Activity (Detail) - Warrants [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding at beginning of period, Number of Shares | shares	84,986
Warrants granted, Number of Shares | shares	1,701,583
Warrants exercised, Number of Shares | shares	0
Warrants forfeitures, Number of Shares | shares	0
Warrants outstanding at end of period, Number of Shares | shares	1,786,569
Warrants outstanding at beginning of period, Weighted Average Exercise Price Per Share | $ / shares	$ 3.53
Warrants granted, Weighted Average Exercise Price Per Share | $ / shares	2.38
Warrants exercised, Weighted Average Exercise Price Per Share | $ / shares	0
Warrants forfeitures, Weighted Average Exercise Price Per Share | $ / shares	0
Warrants outstanding at end of period, Weighted Average Exercise Price Per Share | $ / shares	$ 2.43
Warrants outstanding, Aggregate Intrinsic Value | $	$ 970

Earnings per Common Share - Rec

Earnings per Common Share - Reconciliation of Numerators and Denominators of Basic and Diluted Loss Per Share Computations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Basic:
Net income (loss)	$ (11,951)	$ (15,977)	$ 21,495	$ (51,196)
Weighted average common shares outstanding	55,604,708	53,767,099	55,170,569	53,531,770
Basic income (loss) per common share	$ (0.21)	$ (0.30)	$ 0.39	$ (0.96)
Effect of dilutive securities:
Net income (loss)	$ (11,951)	$ (15,977)	$ 21,495	$ (51,196)
Weighted average common shares outstanding	55,604,708	53,767,099	55,170,569	53,531,770
Effect of dilutive options and warrants			1,033,789
Diluted weighted average common shares outstanding	55,604,708	53,767,099	56,204,358	53,531,770
Diluted income (loss) per common share	$ (0.21)	$ (0.30)	$ 0.38	$ (0.96)

Earnings per Common Share - Add

Earnings per Common Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Securities excluded from computation of diluted earnings per share	9,638,211	9,986,447	5,230,179	10,196,872

Retirement Agreement - Addition

Retirement Agreement - Additional Information (Detail) - Chief Executive Officer [Member] - USD ($) $ in Millions	Jan. 15, 2018	Jan. 02, 2018	Sep. 05, 2017
Defined Benefit Plan Disclosure [Line Items]
Payment for retirement benefit			$ 0.8
Scenario, Forecast [Member]
Defined Benefit Plan Disclosure [Line Items]
Payment for retirement benefit	$ 0.8	$ 0.2
Vested shares		250,000
Vesting rights, percentage		100.00%
Scenario, Forecast [Member] | CIC Retirement Payment [Member]
Defined Benefit Plan Disclosure [Line Items]
Payment for retirement benefit		$ 0.2
Payment period after retirement date		10 days
Scenario, Forecast [Member] | Additional Retirement Payment [Member]
Defined Benefit Plan Disclosure [Line Items]
Payment for retirement benefit		$ 0.2
Change in control period considered after retirement date		12 months

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) $ in Millions	Oct. 05, 2017USD ($)
Subsequent Event [Member] | Opioid PMR Consortium [Member]
Subsequent Event [Line Items]
Participation expense	$ 4.2