EPIRUS Biopharmaceuticals (EPRSQ) 10-Q9 May 142014 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2014	7-May-14
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Entity Registrant Name	'Zalicus Inc.	'
Entity Central Index Key	'0001135906	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	26,108,910

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$11,044	$17,958
Restricted cash	50	50
Accounts receivable	584	2,511
Prepaid expenses and other current assets	511	223
Total current assets	12,189	20,742
Property and equipment, net	2,132	2,363
Intangible asset, net	'	7,200
Restricted cash and other assets	1,800	1,801
Total assets	16,121	32,106
Current liabilities:	'	'
Accounts payable	1,472	2,237
Accrued expenses and other current liabilities	1,300	3,339
Deferred revenue	1,617	2,392
Current portion of term loan payable	'	6,640
Current portion of lease incentive obligation	284	284
Total current liabilities	4,673	14,892
Term loan payable, net of current portion	0	2,132
Deferred rent, net of current portion	272	309
Lease incentive obligation, net of current portion	520	591
Stockholders' equity:	'	'
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued and outstanding	'	'
Common stock, $0.001 par value; 200,000 shares authorized; 26,109 and 26,090 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	26	26
Additional paid-in capital	394,060	393,796
Accumulated deficit	-383,430	-379,640
Stockholders' equity	10,656	14,182
Total liabilities and stockholders' equity	$16,121	$32,106

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	'	'
Preferred stock, shares outstanding	'	'
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	26,109	26,090
Common stock, shares outstanding	26,109	26,090

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenue:	'	'
cHTS services and other collaborations	$1,603	$2,242
Royalties	'	1,432
Total revenue	1,603	3,674
Operating expenses:	'	'
Research and development	3,081	7,079
General and administrative	2,010	2,042
Amortization of intangible	'	2,181
Total operating expenses	5,091	11,302
Loss from operations	-3,488	-7,628
Interest income	1	23
Interest expense	-85	-440
Loss on early extinguishment of debt	-217	'
Other expense	-1	-2
Net loss	-3,790	-8,047
Net loss per share-basic and diluted	($0.15)	($0.38)
Weighted average number of common shares used in net loss per share calculation - basic and diluted	26,106,731	21,204,220
Comprehensive loss	($3,790)	($8,053)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flow (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Operating activities	'	'
Net loss	($3,790)	($8,047)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	231	2,516
Loss on extinguishment of term loan	67	'
Noncash interest expense	9	53
Noncash rent expense	-71	-71
Stock-based compensation expense	305	531
Foreign exchange gain	'	-3
Decrease in deferred rent	-37	-37
Changes in assets and liabilities:	'	'
Decrease in accounts receivable	1,927	513
Increase in prepaid expenses and other assets	-286	-139
Decrease in accounts payable	-765	-1,835
Decrease in accrued restructuring	'	-34
Decrease in accrued expenses and other long-term liabilities	-2,039	-1,302
Decrease in deferred revenue	-775	-860
Net cash used in operating activities	-5,224	-8,715
Investing activities	'	'
Proceeds from sale of intangible asset	7,200	'
Purchases of property and equipment	'	-12
Purchases of short-term investments	'	-7,976
Sales and maturities of short-term investments	'	16,958
Net cash provided by investing activities	7,200	8,970
Financing activities	'	'
Repayment of term loan	-8,848	-1,562
Repurchases of common stock	-41	'
Net cash used in financing activities	-8,889	-1,562
Effect of exchange rate changes on cash and cash equivalents	-1	-3
Net decrease in cash and cash equivalents	-6,914	-1,310
Cash and cash equivalents at beginning of the period	17,958	4,531
Cash and cash equivalents at end of the period	11,044	3,221
Cash paid for interest	$148	$385

Basis_of_Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2014
Accounting Policies [Abstract]	'
Basis of Presentation	'
	1. Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements of Zalicus Inc. (“Zalicus” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and as required by Regulation S-X, Rule 10-01. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including those which are normal and recurring) considered necessary for a fair presentation of the interim financial information have been included. When preparing financial statements in conformity with GAAP, the Company must make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements. Actual results could differ from those estimates. Additionally, operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2014. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission (“SEC”) on March 14, 2014.
	Reverse Stock Split
	The Company effected a 1-for-6 reverse stock split of its outstanding common stock on October 3, 2013. The accompanying consolidated financial statements and notes to the consolidated financial statements give retroactive effect to the reverse stock split for all periods presented. The shares of common stock retained a par value of $0.001 per share. Accordingly, stockholders’ equity reflects the reverse stock split by reclassifying from common stock to additional paid-in capital an amount equal to the par value of the decreased shares resulting from the reverse stock split.

Significant_Accounting_Policie

Significant Accounting Policies	3 Months Ended
Significant Accounting Policies	Mar. 31, 2014
Accounting Policies [Abstract]	'
Significant Accounting Policies	'
	2. Significant Accounting Policies
	In the three months ended March 31, 2014, there were no changes to the Company’s significant accounting policies identified in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
	Recent Accounting Pronouncements
	Unrecognized Tax Benefits
	In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 amended existing guidance related to the presentation of unrecognized tax benefits and allows for the reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. ASU 2013-11 is effective for annual and interim periods for fiscal years beginning after December 15, 2013, and early adoption is permitted. Because the guidance relates only to the presentation of unrecognized tax benefits, the adoption had no material effect on the Company’s results of operations or financial position.

Intangible_Asset

Intangible Asset	3 Months Ended
Intangible Asset	Mar. 31, 2014
Goodwill And Intangible Assets Disclosure [Abstract]	'
Intangible Asset	'
	3. Intangible Asset
	The intangible asset relates to rights to receive milestone payments and royalties from Mallinckrodt Inc. for the commercial rights to Exalgo that were acquired as part of the merger with Neuromed Pharmaceuticals Ltd., or Neuromed. The intangible asset was initially recorded on December 21, 2009 at a value of $45,943 with an ongoing useful life of five years, representing the remaining patent life of Exalgo.
	On January 31, 2014, Zalicus’s subsidiary Zalicus Pharmaceuticals Ltd., or Zalicus Canada, and Mallinckrodt Medical Imaging – Ireland, an affiliate of Mallinckrodt plc, entered into a Royalty Purchase Agreement (the “Royalty Purchase Agreement”) relating to the asset purchase agreement, dated as of June 11, 2009, between Zalicus and Mallinckrodt Inc. (collectively with Mallinckrodt Medical Imaging – Ireland and Mallinckrodt plc, “Mallinckrodt”), as amended (the “Asset Purchase Agreement”). Under the terms of the Royalty Purchase Agreement, in exchange for the payment of $7,200 from Mallinckrodt to the Company on January 31, 2014, the Company terminated any further rights it has to the payment of royalties on net sales of Exalgo by Mallinckrodt for any period subsequent to December 31, 2013.
	As of December 31, 2013, the Company concluded that facts and circumstances existed which indicated that the carrying value of the intangible asset exceeded its estimated fair value. The Company determined the estimated fair value of the intangible asset as of December 31, 2013 based on the $7,200 in proceeds from the Royalty Purchase Agreement. As a result, during the year ended December 31, 2013, the Company recorded an impairment charge of $1,732 in the consolidated statements of operations and comprehensive loss.
	The Company recorded the sale of the intangible asset for proceeds of $7,200, with no gain or loss, in the three months ended March 31, 2014.

Accrued_Expenses

Accrued Expenses	3 Months Ended
Accrued Expenses	Mar. 31, 2014
Payables And Accruals [Abstract]	'
Accrued Expenses	'
	4. Accrued Expenses
	Accrued expenses consisted of the following:


		March 31,		December 31,
		2014		2013
	Accrued clinical trial costs	$	117	$	803
	Accrued payroll and related benefits		215		656
	Accrued professional fees		538		290
	Accrued research collaboration expense		—		1,015
	Accrued other expenses		430		575

		$	1,300	$	3,339

Term_Loan_Payable

Term Loan Payable	3 Months Ended
Term Loan Payable	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Term Loan Payable	'
	5. Term Loan Payable
	On January 31, 2014, the Company prepaid its outstanding indebtedness of $8,647 to Oxford Finance Corporation (the “Lender”) under the loan and security agreement (the “Loan and Security Agreement”). The proceeds from the Royalty Purchase Agreement of $7,200, along with the royalty payment of approximately $2,006 from Mallinckrodt for royalties earned on net sales of Exalgo for the quarter ended December 31, 2013, were sufficient to prepay the remaining balance of $8,647, including accrued interest and a final payment fee of $300, under the Loan and Security Agreement. As a result, the Loan and Security Agreement was terminated effective January 31, 2014, and the Lender has released all security interests in the Company’s tangible and intangible property. The Company recorded a loss on extinguishment of $217 in the condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2014.

Net_Loss_Per_Share

Net Loss Per Share	3 Months Ended
Net Loss Per Share	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Net Loss Per Share	'
	6. Net Loss Per Share
	Basic and diluted net loss per common share is calculated by dividing net loss applicable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. The Company’s potentially dilutive shares, which include outstanding stock options, unvested restricted stock units, warrants and stock issuance commitments, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.

	The following potentially dilutive securities outstanding, prior to the use of the treasury stock method, have been excluded from the computation of diluted weighted-average shares outstanding as of March 31, 2014 and 2013, as they would be anti-dilutive.


		As of March 31,
		2014		2013
	Options outstanding		1,774,270		1,798,624
	Unvested restricted stock units		527,777		72,916
	Warrants outstanding		68,600		68,600

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]	'
Stock-Based Compensation	'
	7. Stock-Based Compensation
	The Company recognized, for the three months ended March 31, 2014 and 2013, stock-based compensation expense of approximately $305 and $531, in connection with its stock-based payment awards.
	Stock Options
	A summary of the status of the Company’s stock option plans at March 31, 2014 and changes during the three months then ended is presented in the table and narrative below:


		Options			Weighted-			Weighted-		Aggregate
					Average			Average		Intrinsic Value
					Exercise Price			Remaining
								Contractual
								Term (In Years)
	Outstanding at December 31, 2013		1,681,325		$	7.63
	Granted		250,000			1.47
	Exercised		—			—
	Cancelled		(157,055	)		6.52

	Outstanding at March 31, 2014		1,774,270		$	6.86			6.87		—

	Vested or expected to vest at March 31, 2014		1,510,376		$	7.29			6.53		—

	Exercisable at March 31, 2014		959,468		$	9.01			5.16		—

	The aggregate intrinsic value in the table above represents the value (the difference between the Company’s closing common stock price on the last trading day of the three months ended March 31, 2014 and the exercise price of the options, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2014. As of March 31, 2014, there was $1,607 of total unrecognized stock-based compensation expense related to stock options granted under the plans. The expense is expected to be recognized over a weighted-average period of 2.13 years.
	The table above includes 238,332 stock options issued on January 3, 2013 with performance-based vesting criteria. The fair value of the options granted was determined using the Black-Scholes pricing model. In November 2013, the Company concluded the vesting criteria would not be achieved with respect to these outstanding performance-based options, as confirmed by the Compensation Committee of the Board of Directors, such that the options would expire July 1, 2014. Accordingly, for the three months ended March 31, 2014, the Company did not recognize any expense related to these stock options.
	During the three months ended March 31, 2014 and 2013, respectively, the weighted-average assumptions used in the Black-Scholes pricing model for new grants were as follows:


		Three Months Ended March 31,
		2014			2013
	Volatility factor		122.6	%		106.46	%
	Risk-free interest rate		2.02	%		1.01	%
	Dividend yield		—			—
	Expected term (in years)		6			6

	Restricted Stock
	A summary of the status of non-vested restricted stock units (RSUs) as of March 31, 2014 and changes during the three months then ended is as follows:


		Restricted Stock			Weighted-			Weighted		Aggregate
		Units			Average			Average		Intrinsic Value
					Grant Date Fair			Remaining
					Value			Contractual
								Term (in Years)
	Nonvested at December 31, 2013		72,916		$	5.05
	Granted		500,000			1.47
	Vested		(45,139	)		5.34
	Cancelled		—			—

	Nonvested at March 31, 2014		527,777		$	1.63			2.81	$	644

	As of March 31, 2014, there was $756 of total unrecognized stock-based compensation expense related to non-vested RSUs. The expense is expected to be recognized over a weighted-average period of 2.81 years.
	During February 2014, the Company issued 500,000 RSUs to certain employees, which vest with respect to one third (1/3) of the RSUs on the first anniversary of the grant date and an additional one third (1/3) on each anniversary thereafter until the third anniversary of the grant date. In the event of a change of control, as defined in the agreements, 50% of the unvested portion of the RSUs shall immediately vest. In the event of the employee’s termination of employment within 12 months following a change of control without cause or for good reason, each as defined in the agreements, any then unvested RSUs shall immediately vest.

Subsequent_Event

Subsequent Event	3 Months Ended
Subsequent Event	Mar. 31, 2014
Subsequent Events [Abstract]	'
Subsequent Event	'
	8. Subsequent Event
	Agreement and Plan of Merger and Related Litigation
	On April 15, 2014, the Company entered into an Agreement and Plan of Merger and Reorganization (the “Agreement”) with Epirus Biopharmaceuticals, Inc., a privately held biopharmaceutical company (“Epirus”) and BRunning, Inc., a wholly owned subsidiary of Zalicus (“Merger Subsidiary”), pursuant to which the Merger Subsidiary will be merged with and into Epirus (the “Merger”) at the effective time of the Merger, with Epirus continuing after the Merger as the surviving corporation and a wholly-owned subsidiary of Zalicus. On May 7, 2014, the Company and Epirus entered into Amendment No. 1 to the Merger Agreement (the “Amendment” and together with the Agreement, collectively, the “Merger Agreement”).
	Subject to the terms and conditions of the Merger Agreement, the percentage of the combined company that Zalicus stockholders will own following the closing of the Merger is subject to adjustment based on the level of Zalicus’s net cash as of a certain determination date prior to the effective time of the Merger. On a pro forma basis, based upon the number of shares of Zalicus common stock to be issued in the Merger, following the closing of the Merger (i) current Zalicus stockholders will own approximately 19% of the combined company and current Epirus equityholders will own approximately 81% of the combined company if Zalicus’s net cash as of a certain determination date prior to the effective time of the Merger is equal to or in excess of $12,000, (ii) current Zalicus stockholders will own approximately 17% of the combined company and current Epirus equityholders will own approximately 83% of the combined company if Zalicus’s net cash as of a certain determination date prior to the effective time of the Merger is in excess of $9,000 but less than $12,000, and (iii) current Zalicus stockholders will own approximately 14% of the combined company and current Epirus equityholders will own approximately 86% of the combined company if Zalicus’s net cash as of a certain determination date prior to the effective time of the Merger is equal to or less than $9,000. Zalicus is exploring different alternatives to increase its level of net cash.
	The Merger Agreement contains a customary “no-shop” provision pursuant to which neither Zalicus nor Epirus is permitted to (i) solicit any alternative acquisition proposals, (ii) participate in any negotiations or discussions with any person relating to any alternative acquisition proposal, (iii) waive, terminate or release any person from a “standstill” or similar agreement, (iv) approve, endorse or recommend any alternative acquisition proposal, or (iv) enter into any agreement relating to any alternative acquisition proposal. The “no-shop” provision is subject to certain exceptions that permit the board of directors of each of Zalicus and Epirus to comply with its fiduciary duties, which, under certain circumstances, would enable either Zalicus or Epirus to provide information to, and engage in discussions or negotiations with, third parties with respect to alternative acquisition proposals.
	The Merger Agreement provides each of Zalicus and Epirus with specified termination rights. If the Merger Agreement is terminated to accept a superior acquisition proposal or under other circumstances specified in the Merger Agreement, Zalicus will be required to pay to Epirus a termination fee of $1,100 or Epirus will be required to pay to Zalicus a termination fee of $2,500, as the case may be.
	The Merger Agreement provides that, immediately following the Effective Time, the board of directors of the combined company will consist of one former director of Zalicus, five former directors of Epirus, and two directors to be designated by Epirus (subject to the reasonable consent of Zalicus) following the completion of a mutually agreeable director search and selection process, provided that such persons shall be named at least seven days prior to the mailing of the proxy statement to the stockholders of Zalicus. In connection with the Merger, Zalicus will seek the approval of its stockholders to amend its certificate of incorporation to: (i) effect a reverse split of Zalicus common stock at a ratio mutually agreed to by Zalicus and Epirus, which is intended to ensure that the listing requirements of the Nasdaq Capital Market are satisfied, and (ii) increase the number of authorized shares of Zalicus common stock from 200 million shares to 300 million shares and change the name of Zalicus to “EPIRUS Biopharmaceuticals, Inc.”, subject to the consummation of the Merger. In addition, Zalicus will seek to amend its Amended and Restated 2004 Incentive Plan to increase the number of shares available for issuance by 3 million shares after giving effect to the reverse stock split described above.
	Zalicus’s and Epirus’s obligations to consummate the Merger are subject to the satisfaction or waiver of customary closing conditions, including, among others, obtaining the requisite approvals of the stockholders of Zalicus and Epirus, including the approval of the issuance of the shares of common stock of Zalicus to be issued in connection with the Merger and the charter amendments by the stockholders of Zalicus, Zalicus having a minimum level of cash of $3,000 as of a certain determination date prior to the effective time of the Merger, and the effectiveness of a registration statement on Form S-4 relating to the shares of Zalicus common stock to be issued to Epirus stockholders pursuant to the Merger Agreement.
	The foregoing description of the Merger Agreement is qualified in its entirety by reference to the full text of the Merger Agreement, which is attached as Exhibit 2.1 to our Current Report on Form 8-K, dated and filed on April 16, 2014, and is incorporated in this report by reference. The Merger Agreement has been incorporated to provide information regarding its terms. It is not intended to provide any other factual information about us, Epirus or the Merger Subsidiary.
	Between April 28, 2014 and May 2, 2014, three putative class action lawsuits were filed by purported stockholders of Zalicus in the Business Litigation Session of the Massachusetts Superior Court, Suffolk County, against Zalicus, BRunning, Inc., the members of Zalicus’ board of directors and Epirus. These actions are: Paul Patrick Laky v. Zalicus Inc., et al., Civ. A. No. 14-1380; Michael Ma v. Zalicus Inc., et al., Civ. A. No. 14-1381; Harrypersaud v. Zalicus Inc., et al., Civ. A. No. 14-1455 (collectively, the “Massachusetts Actions”). The Massachusetts Actions allege that the Zalicus board breached its fiduciary duties, and that Epirus, Zalicus and BRunning aided and abetted the purported breaches, in connection with the proposed merger. The Massachusetts Actions seek relief including, among other things, to enjoin defendants from proceeding with the merger, to enjoin defendants from consummating the merger unless additional procedures are implemented, and an award of all costs of the Massachusetts Actions, including reasonable attorneys’ fees and experts’ fees.
	On May 1, 2014, another putative class action lawsuit, Harvey Stein v. Zalicus, Inc. et al., Case No. 9602, was filed by a purported stockholder of Zalicus in the Court of Chancery of the State of Delaware against Zalicus, Zalicus’ directors and Epirus (the “Delaware Action”). The Delaware Action alleges that the Zalicus board breached their fiduciary duties, and Epirus and BRunning aided and abetted the purported breaches, in connection with the proposed merger. The Delaware Action seeks relief including, among other things, to preliminary and permanently enjoin the proposed merger, to enjoin consummation of the proposed merger and rescind the merger if consummated (or to award rescissionary damages), and an award of all costs of the Delaware Action, including reasonable attorneys’ fees and experts’ fees.
	The defendants deny the allegations in the Massachusetts and Delaware Actions, believe the actions are meritless, and intend to vigorously defend the actions.
	As discussed herein, the percentage of the combined company that Zalicus stockholders will own as of the closing of the merger is subject to adjustment at the closing based on the level of Zalicus’ net cash as of a certain determination date prior to closing, as net cash is defined and is to be calculated under the merger agreement. The level of net cash as of that determination date will be reduced by certain specified liabilities, as defined further in the merger agreement, including all out-of-pocket costs in connection with the Massachusetts and Delaware Actions (and any other similar litigation that may be filed), including amounts payable to advisors and attorneys. Thus, the Zalicus parties’ costs in defending the actions insofar as they reduce net cash may reduce the percentage of the combined company that Zalicus stockholders will own as of the closing of the merger.

Significant_Accounting_Policie1

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2014
Accounting Policies [Abstract]	'
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	Unrecognized Tax Benefits
	In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 amended existing guidance related to the presentation of unrecognized tax benefits and allows for the reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. ASU 2013-11 is effective for annual and interim periods for fiscal years beginning after December 15, 2013, and early adoption is permitted. Because the guidance relates only to the presentation of unrecognized tax benefits, the adoption had no material effect on the Company’s results of operations or financial position.

Accrued_Expenses_Tables

Accrued Expenses (Tables)	3 Months Ended
Accrued Expenses (Tables)	Mar. 31, 2014
Payables And Accruals [Abstract]	'
Accrued Expenses	'
	Accrued expenses consisted of the following:


		March 31,		December 31,
		2014		2013
	Accrued clinical trial costs	$	117	$	803
	Accrued payroll and related benefits		215		656
	Accrued professional fees		538		290
	Accrued research collaboration expense		—		1,015
	Accrued other expenses		430		575

		$	1,300	$	3,339

Net_Loss_Per_Share_Tables

Net Loss Per Share (Tables)	3 Months Ended
Net Loss Per Share (Tables)	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Antidilutive Securities Excluded from Computation of Diluted Weighted-Average Shares Outstanding	'
	The following potentially dilutive securities outstanding, prior to the use of the treasury stock method, have been excluded from the computation of diluted weighted-average shares outstanding as of March 31, 2014 and 2013, as they would be anti-dilutive.


		As of March 31,
		2014		2013
	Options outstanding		1,774,270		1,798,624
	Unvested restricted stock units		527,777		72,916
	Warrants outstanding		68,600		68,600

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
Stock-Based Compensation (Tables)	Mar. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]	'
Summary of Stock Option Activity	'
	A summary of the status of the Company’s stock option plans at March 31, 2014 and changes during the three months then ended is presented in the table and narrative below:


		Options			Weighted-			Weighted-		Aggregate
					Average			Average		Intrinsic Value
					Exercise Price			Remaining
								Contractual
								Term (In Years)
	Outstanding at December 31, 2013		1,681,325		$	7.63
	Granted		250,000			1.47
	Exercised		—			—
	Cancelled		(157,055	)		6.52

	Outstanding at March 31, 2014		1,774,270		$	6.86			6.87		—

	Vested or expected to vest at March 31, 2014		1,510,376		$	7.29			6.53		—

	Exercisable at March 31, 2014		959,468		$	9.01			5.16		—
Assumptions Used in the Black-Scholes Pricing Model	'
	During the three months ended March 31, 2014 and 2013, respectively, the weighted-average assumptions used in the Black-Scholes pricing model for new grants were as follows:


		Three Months Ended March 31,
		2014			2013
	Volatility factor		122.6	%		106.46	%
	Risk-free interest rate		2.02	%		1.01	%
	Dividend yield		—			—
	Expected term (in years)		6			6
Non-vested Restricted Stock Units (RSUs)	'
	A summary of the status of non-vested restricted stock units (RSUs) as of March 31, 2014 and changes during the three months then ended is as follows:


		Restricted Stock			Weighted-			Weighted		Aggregate
		Units			Average			Average		Intrinsic Value
					Grant Date Fair			Remaining
					Value			Contractual
								Term (in Years)
	Nonvested at December 31, 2013		72,916		$	5.05
	Granted		500,000			1.47
	Vested		(45,139	)		5.34
	Cancelled		—			—

	Nonvested at March 31, 2014		527,777		$	1.63			2.81	$	644

Basis_of_Presentation_Addition

Basis of Presentation - Additional Information (Detail) (USD $)	0 Months Ended
	Oct. 03, 2013	Mar. 31, 2014	Dec. 31, 2013
Organization Consolidation And Presentation Of Financial Statements [Abstract]	'	'	'
Reverse stock split ratio	0.17	'	'
Common stock, par value	$0.00	$0.00	$0.00

Intangible_Asset_Additional_In

Intangible Asset - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Dec. 21, 2009
Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Intangible asset, value	'	'	'	'	$45,943
Proceeds from sale of intangible asset	7,200	7,200	'	7,200	'
Impairment charge	'	'	'	1,732	'
Gain or loss on sale of intangible asset	'	$0	'	'	'
Patents [Member]	'	'	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Intangible asset, useful life	'	'	'5 years	'	'

Accrued_Expenses_Accrued_Expen

Accrued Expenses - Accrued Expenses (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Payables And Accruals [Abstract]	'	'
Accrued clinical trial costs	$117	$803
Accrued payroll and related benefits	215	656
Accrued professional fees	538	290
Accrued research collaboration expense	'	1,015
Accrued other expenses	430	575
Accrued expenses	$1,300	$3,339

Term_Loan_Payable_Additional_I

Term Loan Payable - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended		0 Months Ended	3 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Mar. 31, 2014	Mar. 31, 2013	Jan. 31, 2014	Dec. 31, 2013
	Jan. 31, 2014	Mar. 31, 2014	Mar. 31, 2013	Mallinckrodt Inc. [Member]	Mallinckrodt Inc. [Member]
Debt Instrument [Line Items]	'	'	'	'	'
Prepayment of outstanding indebtedness	$8,647	'	'	'	'
Royalty Purchase exchange payment	'	'	'	7,200	2,006
Accrued interest and final payment fee	300	'	'	'	'
Loss on extinguishment	'	($217)	'	'	'

Net_Loss_Per_Share_Antidilutiv

Net Loss Per Share - Antidilutive Securities Excluded from Computation of Diluted Weighted-Average Shares Outstanding (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Equity Option [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Securities excluded from the computation of diluted weighted-average shares outstanding	1,774,270	1,798,624
Unvested Restricted Stock Units[Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Securities excluded from the computation of diluted weighted-average shares outstanding	527,777	72,916
Warrants Outstanding [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Securities excluded from the computation of diluted weighted-average shares outstanding	68,600	68,600

StockBased_Compensation_Additi

Stock-Based Compensation - Additional Information (Detail) (USD $)	3 Months Ended		0 Months Ended	3 Months Ended	1 Months Ended	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Jan. 03, 2013	Mar. 31, 2014	Feb. 28, 2014	Mar. 31, 2014
	Mar. 31, 2014	Mar. 31, 2013	Options Outstanding [Member]	Options Outstanding [Member]	Restricted Stock Units (RSUs) [Member]	Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'
Stock-based compensation expense	$305	$531	'	'	'	'
Unrecognized stock-based compensation expense	'	'	'	1,607	'	756
Unrecognized stock-based compensation expense, weighted-average recognition period, years	'	'	'	'2 years 1 month 17 days	'	'2 years 9 months 22 days
Stock options issued	'	'	238,332	'	'	'
Stock options, expiration date	'	'	'	1-Jul-14	'	'
Stock options expense	$0	'	'	'	'	'
Granted, Restricted Stock Units	'	'	'	'	500,000	500,000
Stock units vesting description	'	'	'	'	'	'During February 2014, the Company issued 500,000 RSUs to certain employees, which vest with respect to one third (1/3) of the RSUs on the first anniversary of the grant date and an additional one third (1/3) on each anniversary thereafter until the third anniversary of the grant date.
Unvested portion of RSUs	'	'	'	'	50.00%	'
Termination of employment after change of control	'	'	'	'	'12 months	'

StockBased_Compensation_Summar

Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]	'
Outstanding, Options, Beginning Balance	1,681,325
Granted, Options	250,000
Exercised, Options	'
Cancelled, Options	-157,055
Outstanding, Options, Ending Balance	1,774,270
Vested or expected to vest, Options, Ending Balance	1,510,376
Exercisable, Options, Ending Balance	959,468
Outstanding, Weighted-Average Exercise Price, Beginning Balance	$7.63
Granted, Weighted-Average Exercise Price	$1.47
Exercised, Weighted-Average Exercise Price	'
Cancelled, Weighted-Average Exercise Price	$6.52
Outstanding, Weighted-Average Exercise Price, Ending Balance	$6.86
Vested or expected to vest, Weighted-Average Exercise Price, Ending Balance	$7.29
Exercisable, Weighted-Average Exercise Price, Ending Balance	$9.01
Outstanding, Weighted-Average Remaining Contractual Term (In Years), Ending Balance	'6 years 10 months 13 days
Vested or expected to vest, Weighted-Average Remaining Contractual Term (In Years), Ending Balance	'6 years 6 months 11 days
Exercisable, Weighted-Average Remaining Contractual Term (In Years), Ending Balance	'5 years 1 month 28 days
Outstanding, Aggregate Intrinsic Value, Ending Balance	'
Vested or expected to vest, Aggregate Intrinsic Value, Ending Balance	'
Exercisable, Aggregate Intrinsic Value, Ending Balance	'

StockBased_Compensation_Assump

Stock-Based Compensation - Assumptions Used in the Black-Scholes Pricing Model (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]	'	'
Volatility factor	122.60%	106.46%
Risk-free interest rate	2.02%	1.01%
Dividend yield	'	'
Expected term (in years)	'6 years	'6 years

StockBased_Compensation_Nonves

Stock-Based Compensation - Non-vested Restricted Stock Units (RSUs) (Detail) (Restricted Stock Units (RSUs) [Member], USD $)	1 Months Ended	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Feb. 28, 2014	Mar. 31, 2014
Restricted Stock Units (RSUs) [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Non-vested, Restricted Stock Units, Beginning Balance	'	72,916
Granted, Restricted Stock Units	500,000	500,000
Vested, Restricted Stock Units	'	-45,139
Cancelled, Restricted Stock Units	'	'
Non-vested, Restricted Stock Units, Ending Balance	'	527,777
Non-vested, Weighted-Average Grant Date Fair Value, Beginning Balance	'	$5.05
Granted, Weighted-Average Grant Date Fair Value	'	$1.47
Vested, Weighted-Average Grant Date Fair Value	'	$5.34
Cancelled, Weighted-Average Grant Date Fair Value	'	'
Non-vested, Weighted-Average Grant Date Fair Value, Ending Balance	'	$1.63
Non-vested, Weighted Average Remaining Contractual Term, Ending Balance	'	'2 years 9 months 22 days
Non-vested, Aggregate Intrinsic Value, Ending Balance	'	$644

Subsequent_Event_Additional_In

Subsequent Event - Additional Information (Detail) (USD $)

3 Months Ended

0 Months Ended

In Thousands, except Share data, unless otherwise specified

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2013

Jan. 03, 2013

2-May-14

1-May-14

Apr. 15, 2014

Subsequent Event [Member]

Lawsuits

Amended and Restated 2004 Incentive Plan [Member]

Zalicus [Member]

Epirus [Member]

Directors

Minimum [Member]

Condition One [Member]

Condition Two [Member]

Condition Three [Member]

Directors

Condition One [Member]

Condition Two [Member]

Condition Three [Member]

Minimum [Member]

Maximum [Member]

Subsequent Event [Line Items]

Agreement and Plan of Merger and Reorganization date

15-Apr-14

Percentage of stockholders equity

19.00%

17.00%

14.00%

81.00%

83.00%

86.00%

Excess of net cash

$11,044

$17,958

$3,221

$4,531

$12,000

$9,000

$12,000

$9,000

Merger agreement termination fee

1,100

2,500

Number of directors

Number of director designated by Epirus

Number of authorized common stock

200,000,000

300,000,000

Number of shares available for issuance

3,000,000

Cash

$3,000

Number of putative class action lawsuits filed