Paratek Pharmaceuticals (PRTK) 10-Q 7 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 05, 2013
Document and Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Entity Registrant Name	'Transcept Pharmaceuticals Inc	'
Entity Central Index Key	'0001178711	'
Entity Filer Category	'Accelerated Filer	'
Current Fiscal Year End Date	'--12-31	'
Trading Symbol	'tspt	'
Entity Common Stock, Shares Outstanding	'	18,842,388

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$13,642	$39,368
Marketable securities	62,123	45,907
Prepaid advertising	244	8,571
Prepaid and other current assets	3,089	920
Restricted cash	200	200
Total current assets	79,298	94,966
Property and equipment, net	51	128
Goodwill	0	2,962
Total assets	79,349	98,056
Current liabilities:	'	'
Accounts payable	1,895	1,001
Accrued liabilities	1,165	1,639
Other liabilities, short-term portion	0	23
Total current liabilities	3,060	2,663
Commitments and contingencies	'	'
Stockholders’ equity:	'	'
Common stock	19	19
Additional paid-in capital	210,260	207,477
Accumulated deficit	-134,021	-112,110
Accumulated other comprehensive income	31	7
Total stockholders’ equity	76,289	95,393
Total liabilities and stockholders’ equity	$79,349	$98,056

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue:	'	'	'	'
Gross royalty revenue	$418	$190	$1,381	$683
Non refundable intellectual property	0	10,000	0	10,000
Gross other revenue	50	250	50	250
Advertising expense - Purdue Pharma	-86	0	-6,681	0
Net revenue	382	10,440	-5,250	10,933
Operating expenses:	'	'	'	'
Research and development	2,410	3,057	5,151	8,273
General and administrative	2,658	2,483	8,490	7,998
Goodwill impairment	0	0	2,962	0
Total operating expenses	5,068	5,540	16,603	16,271
(Loss) income from operations	-4,686	4,900	-21,853	-5,338
Interest and other income (expense), net	-17	-45	-58	-124
Net (loss) income	-4,703	4,855	-21,911	-5,462
Earnings Per Share, Basic (usd per share)	($0.25)	$0.26	($1.17)	($0.33)
Earnings Per Share, Diluted (usd per share)	($0.25)	$0.25	($1.17)	($0.33)
Weighted Average Number of Shares Outstanding, Basic	18,782	18,568	18,748	16,523
Weighted Average Number of Shares Outstanding, Diluted	18,782	19,232	18,748	16,523
Other comprehensive (loss) income:	'	'	'	'
Changes in unrealized gain (loss) on marketable securities	40	7	24	-23
Comprehensive (loss) income	($4,663)	$4,862	($21,887)	($5,485)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Operating activities	'	'
Net loss	($21,911)	($5,462)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	82	182
Stock-based compensation	2,339	2,199
Amortization of lease liability	0	-186
Gain on disposals of fixed assets	-25	0
Amortization of premium on available for sale securities	641	466
Impairment of goodwill	2,962	0
Changes in operating assets and liabilities:	'	'
Prepaid and other current assets	6,158	927
Other assets	0	-38
Accounts payable	894	113
Accrued and other liabilities	-497	44
Net cash used in operating activities	-9,357	-1,679
Investing activities	'	'
Purchases of property and equipment, net	20	-34
Purchases of marketable securities	-63,813	-12,421
Maturities of marketable securities	46,980	35,000
Net cash (used in) provided by investing activities	-16,813	22,545
Financing activities	'	'
Proceeds from issuance of common stock, net	444	38,512
Net cash provided by financing activities	444	38,512
Net (decrease) increase in cash and cash equivalents	-25,726	59,378
Cash and cash equivalents at beginning of period	39,368	10,659
Cash and cash equivalents at end of period	$13,642	$70,037

Organization_and_Summary_of_Si

Organization and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Organization and Summary of Significant Accounting Policies	'
	Organization and Summary of Significant Accounting Policies
	Transcept Pharmaceuticals, Inc. (the “Company”) is a specialty pharmaceutical company focused on the development and commercialization of proprietary products that address important therapeutic needs in the field of neuroscience. Intermezzo® (zolpidem tartrate) sublingual tablet C-IV is the first U.S. Food and Drug Administration, or FDA, approved Transcept product. Purdue Pharmaceutical Products L.P. (“Purdue Pharma”) holds commercialization and development rights for Intermezzo in the United States. The Company's lead development candidate is TO-2070, a novel, rapidly absorbed treatment for acute migraine incorporating dihydroergotamine (DHE) as the active drug. The Company operates in one business segment.
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not contain all of the information and footnotes required for complete consolidated financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company's interim financial information. The accompanying condensed consolidated balance sheet at December 31, 2012 has been derived from our audited financial statements at that date, but does not include all the disclosures required for complete financial statements. The results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year ending December 31, 2013 or for any other interim period or any other future year.
	The accompanying unaudited condensed consolidated financial statements and notes to condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the United States Securities and Exchange Commission on March 12, 2013.
	Use of Estimates
	The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates. Management makes estimates when preparing the financial statements including those relating to revenue recognition, clinical trials expense, advertising expense, and stock-based compensation.
	Concentration of Risk
	The Company is dependent on Purdue Pharma to market and sell Intermezzo from which all of its royalty and milestone revenue to date has been derived.
	Significant Accounting Policies
	Principles of Consolidation
	The accompanying condensed consolidated financial statements include the results of operations of Transcept Pharmaceuticals, Inc. and its wholly-owned subsidiary, Transcept Pharma, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.
	Goodwill
	Goodwill is not subject to amortization, but is tested for impairment on an annual basis during the third quarter or whenever events or changes in circumstances indicate the carrying amount of these assets may not be recoverable. Goodwill impairment testing is a two-step process and performed on a reporting unit level. In the first step, the Company conducts an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not that the fair value of its reporting unit is less than its carrying amount, it then conducts the second step, a two-part test for impairment of goodwill. The Company first compares the fair value of its reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the reporting unit's net assets, goodwill is not considered impaired and no further analysis is required. If the carrying value of the net assets exceeds the fair value of the reporting unit, then the second part of the impairment test must be performed in order to determine the implied fair value of the goodwill. If the carrying value of the goodwill exceeds the implied fair value, then an impairment loss equal to the difference would be recorded. For 2012, the Company performed its annual goodwill impairment analysis as of September 30, 2012 and concluded that goodwill was not impaired. The Company operates in one reporting unit and believes that its market capitalization is indicative of the fair value of the Company.
	During the second quarter of 2013, several events occurred that indicated that the carrying amount of goodwill exceeded the fair value of the reporting unit, including:
	•	the approximately 30% decline in Intermezzo prescriptions at June 30, 2013 from the peak of the direct to consumer ("DTC") advertising campaign, which was substantially completed in April 2013; and
	•	the May 2013 termination by Purdue of 90 contract sales representatives dedicated exclusively to promoting Intermezzo, resulting in reliance solely on Purdue's existing analgesics sales force of approximately 525 sales representatives.
	As a result of these factors, the Company experienced a 37% decline in its stock price during the quarter ended June 30, 2013. The decline in stock price resulted in a market capitalization of approximately $56.7 million at June 30, 2013 which, when compared to the Company's stockholders' equity of $79.9 million, and in consideration of the early nature of ongoing internal research and development, the progress of new product search and evaluation efforts and the declining sales of Intermezzo, was an indication of impairment under step one of the goodwill impairment testing accounting guidance.
	Step two of the goodwill test consisted of comparing the fair value of the Company to its carrying value at June 30, 2013. If the carrying value exceeds fair value, then a hypothetical purchase price exercise is to be performed to determine the amount, if any, of goodwill impairment. In determining the fair value of the Company, management considered the Company's market capitalization, including any premium that would be necessary for an acquirer to obtain control of the Company, as well as net cash and investments on hand at June 30, 2013. In each of these scenarios, the carrying value of the Company exceeded its fair value in excess of the carrying value of goodwill.
	The impairment analysis indicated that the entire goodwill balance of $3.0 million was impaired, which was recognized during the three-months ended June 30, 2013. No previous impairments of goodwill had been recognized by the Company.
	Revenue Recognition
	The Company applies the revenue recognition criteria outlined in Staff Accounting Bulletin No. 104, Revenue Recognition in Financial Statements, and Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605 Revenue Recognition, sub-topic 25 Multiple-Element Arrangements.
	Revenue arrangements with multiple components are divided into separate units of accounting if certain criteria are met, including whether the delivered component has stand-alone value to the customer. Consideration received is allocated among the separate units of accounting based on their relative fair values or if fair value is not determinable, based on the Company’s best estimate of selling price. Applicable revenue recognition criteria are then applied to each of the units.
	Revenue is recognized when the four basic criteria of revenue recognition are met: (1) persuasive evidence of an arrangement exists; (2) transfer of technology has been completed or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured.
	For each source of revenue, the Company complies with the above revenue recognition criteria in the following manner:
	•	Up-front license payments are assessed to determine whether or not the licensee is able to obtain any stand-alone value from the license. Where this is not the case, the Company does not consider the license deliverable to be a separate unit of accounting, and the revenue is deferred with revenue recognition for the license fee assessed in conjunction with the other deliverables that constitute the combined unit of accounting. When the period of deferral cannot be specifically identified from the agreement, management estimates the period based upon provisions contained within the related agreements and other relevant facts. The Company periodically reviews the estimated involvement period, which could impact the deferral period and, therefore, the timing and the amount of revenue recognized. It is possible that future adjustments will be made if actual conditions differ from the Company’s current plan and involvement assumptions;
	•	Payments received that are related to substantive, performance-based “at-risk” milestones are recognized as revenue upon achievement of the milestone or event specified in the underlying contracts, which represents the culmination of the earnings process. Amounts received in advance, if any, are recorded as deferred revenue until the milestone is reached; and
	•	Royalty revenue from sales of the Company’s licensed product is recognized as earned in accordance with the contract terms when royalties from licensees can be estimated and collectability is reasonably assured.
	Advertising
	The Company expenses non-direct response advertising as incurred. Advertising expense consists of the Company's December 2012 $10.0 million contribution to Purdue Pharma's national direct-to-consumer ("DTC") advertising campaign, including digital, print and television advertising to support Intermezzo commercialization. The Company initially recorded the $10.0 million payment to Purdue Pharma as a prepaid expense. This payment is being recognized as the advertising costs are incurred. As this payment was made directly to Purdue Pharma, recognition of the expense is recorded as an offset to revenue. At September 30, 2013, Purdue Pharma estimates that approximately $1.6 million of the Company's original contribution will be returned due to reduced overall DTC campaign spending. Accordingly, $1.6 million is recorded as a receivable and included in prepaid and other current assets at September 30, 2013.
	For the three and nine months ended September 30, 2013, the offset to revenue totaled $0.1 million and $6.7 million, respectively. Prepaid advertising costs were $0.2 million at September 30, 2013. There was no advertising offset to revenue in the first nine months of 2012.
	Stock-Based Compensation
	The Company records stock-based compensation in accordance with ASC Topic 718 Compensation - Stock Compensation (“ASC Topic 718”) (formerly Statement of Financial Accounting Standards (“SFAS”) No. 123(R), Share-Based Payment). ASC Topic 718 requires an entity to measure the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the date of grant and to recognize the cost over the period during which the employee is required to provide service in exchange for the award. Additionally, the Company is required to include an estimate of the number of awards that will be forfeited in calculating compensation costs, which are recognized over the requisite service period of the awards on a straight-line basis.
	The Company recognized employee stock-based compensation costs of $0.8 million and $2.3 million during the three and nine months ended September 30, 2013, respectively and $0.7 million and $2.0 million during the three and nine months ended September 30, 2012, respectively, in accordance with the provisions of ASC Topic 718. No related tax benefits of stock-based compensation costs have been recognized since the Company's inception. The Company issued 82,500 and 162,133 shares of common stock for the three and nine months ended September 30, 2013, upon stock option exercises.
	During the nine months ended September 30, 2013, the Company modified the terms of stock options previously granted to six of its employees in connection with a reduction in force. The modifications included accelerated vesting of certain options and extension of the exercise period after termination with respect to certain of the options. These modifications resulted in additional compensation expense of $23,000. During the nine months ended September 30, 2012, the Company modified the terms of stock options previously granted to a member of its Board of Directors to accelerate vesting of the option upon the director's anticipated end of service to the Company in April 2012. These modifications resulted in additional compensation expense of $28,000 during the nine months ended September 30, 2012. The Company accounted for the modification of these stock option awards in accordance with the provisions of ASC Topic 718.
	The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC Topic 505, subtopic 50, Equity-Based Payments to Non-Employees (formerly Emerging Issues Task Force No. 96-18, Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling Goods or Services), using a fair-value approach. The equity instruments, consisting of stock options and warrants granted to lenders and consultants, are valued using the Black-Scholes valuation model. The measurement of stock-based compensation is subject to periodic adjustments as the underlying equity instruments vest and is recognized as an expense over the term of the related financing or the period over which services are received. The Company recorded non-employee stock-based compensation costs of $12,000 and $69,000 during the three and nine months ended September 30, 2013, respectively and $33,000 and $166,000 during the three and nine months ended September 30, 2012, respectively.
	Clinical Trials
	The Company accrues and expenses costs for clinical trial activities performed by third parties, including clinical research organizations and clinical investigators, based upon estimates made of the work completed as of each reporting date, in accordance with agreements established with contract research organizations and clinical trial sites and the agreed upon fee to be paid for the services. The Company determines these estimates through discussion with internal personnel and outside service providers as to the progress or stage of completion of the trials or services. Costs of setting up clinical trial sites for participation in the trials are expensed immediately as research and development expenses. Clinical trial site costs related to patient enrollment are accrued as patients are entered into the trial and reduced by any initial payment made to the clinical trial site when the first patient is enrolled.

Results_of_Operations

Results of Operations	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Results of Operations	'
	Results of Operations
	Net (Loss) Income Per Share
	Basic net (loss) income per share is computed by dividing net (loss) income by the weighted average number of vested shares outstanding during the period. Diluted net (loss) income per share is computed by giving effect to all potential dilutive common securities, including options, warrants and common stock subject to repurchase.
	Potentially dilutive common shares include the dilutive effect of the common stock underlying in-the-money stock options and is calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of an option and the average amount of compensation cost, if any, for future service that the Company has not yet recognized when the option is exercised, are assumed to be used to repurchase shares in the current period.
	For the three and nine months ended September 30, 2013, and the nine months ended September 30, 2012, diluted net loss per share was identical to basic earnings per share ("EPS") since potential common shares were excluded from the calculation, as their effect was anti-dilutive.
	The following table presents the calculation of basic and diluted net (loss) income per share (in thousands, except per share amounts):
		Three Months Ended							Nine Months Ended
		September 30,							September 30,
		2013				2012			2013			2012
	Numerator:
	Net (loss) income	$	(4,703	)		$	4,855		$	(21,911	)	$	(5,462	)
	Denominator for basic and diluted net (loss) income per share:
	Weighted average common shares outstanding - basic	18,782				18,568			18,748			16,523
	Effect of dilutive equity incentive plans	—				664			—			—
	Weighted average common shares outstanding - diluted	18,782				19,232			18,748			16,523
	Weighted average anti-dilutive securities
	The following common equivalent shares were not included in the computation of diluted net (loss) income per share because their effect was anti-dilutive (in thousands):
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013		2012
	Shares subject to options to purchase common stock	4,456			1,958			4,064		3,147
	Shares subject to warrants to purchase common stock	61			156			61		156
	Total	4,517			2,114			4,125		3,303
	At September 30, 2013, there were 4,454,000 shares subject to options to purchase common stock outstanding and 61,000 shares subject to warrants to purchase common stock outstanding.

Availableforsale_Securities

Available-for-sale Securities	9 Months Ended
	Sep. 30, 2013
Available-for-sale Securities [Abstract]	'
Available-for-sale Securities	'
	Available-for-sale Securities
	The following is a summary of available-for-sale debt securities recognized as cash and cash equivalents, marketable securities, or restricted cash in the Company's condensed consolidated balance sheets. Estimated fair values of available-for-sale securities are generally based on prices obtained from commercial pricing services (in thousands):
		September 30, 2013
		Amortized			Unrealized			Unrealized		Estimated
		Cost			Gains			Losses		Fair Value
	Certificates of deposit	$	200		$	—		$	—	200
	Money market funds	30			—			—		30
	Commercial paper	10,000			—			—		10,000
	Corporate notes	19,777			10			—		19,787
	Government sponsored enterprise issues	42,059			17			—		42,076
	U.S. Treasury securities	3,257			4			—		3,261
		$	75,323		$	31		$	—	$	75,354
		31-Dec-12
		Amortized			Unrealized			Unrealized		Estimated
		Cost			Gains			Losses		Fair Value
	Certificates of deposit	$	200		$	—		$	—	200
	Money market funds	27			—			—		27
	Commercial paper	23,932			—			—		23,932
	Corporate notes	6,294			—			—		6,294
	Government sponsored enterprise issues	36,575			2			—		36,577
	U.S. Treasury securities	17,308			5			—		17,313
		$	84,336		$	7		$	—	$	84,343
	The following table summarizes the classification of the available-for-sale securities on the Company's condensed consolidated balance sheets (in thousands):
			September 30,			December 31,
			2013			2012
	Cash and cash equivalents		$	13,031		$	38,236
	Marketable securities		62,123			45,907
	Restricted cash		200			200
			$	75,354		$	84,343
	There were no sales of available-for-sale marketable securities during 2013 or 2012.
	Based on the fair value of the Company’s marketable securities at September 30, 2013, $16.1 million had a maturity of between one and two years, and the remaining $46.0 million had maturities of one year or less.

Fair_Value

Fair Value	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value	'
	Fair Value
	The Company defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
	The Company's valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect the Company's market assumptions. The Company classifies these inputs into the following hierarchy:
	•	Level 1—Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs;
	•	Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
	•	Level 3—Unobservable inputs (i.e. inputs that reflect the reporting entity’s own assumptions about the assumptions that market participants would use in estimating the fair value of an asset or liability) are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
	A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Where quoted prices are available in an active market, securities are classified as Level 1 of the valuation hierarchy. Level 1 securities include highly liquid money market funds. If quoted market prices are not available for the specific security, then the Company estimates fair value by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 instruments include commercial paper, U.S. corporate debt, and U.S. government sponsored enterprise issues. There are no Level 3 assets in the periods presented.
	The estimated fair values of the Company's financial assets (cash equivalents and marketable securities) as of September 30, 2013 (in thousands) are as follows:
				Fair Value Measurements at Reporting Date Using
		September 30,		Quoted		Significant		Significant
		2013		Prices in		Other		Unobservable
				Active		Observable		Inputs
				Markets for		Inputs		(Level 3)
				Identical		(Level 2)
				Assets
				(Level 1)
	Assets
	Certificates of deposit	$	200	$	200	$	—	$	—
	Money market funds	30		30		—		—
	Commercial paper	10,000		—		10,000		—
	Corporate notes	19,787		—		19,787		—
	Government sponsored enterprise issues	42,076		—		42,076		—
	U.S. Treasury securities	3,261		—		3,261		—
		$	75,354	$	230	$	75,124	$	—
	The estimated fair values of the Company's financial assets (cash equivalents and marketable securities) as of December 31, 2012 (in thousands) are as follows:
				Fair Value Measurements at Reporting Date Using
		December 31,		Quoted		Significant		Significant
		2012		Prices in		Other		Unobservable
				Active		Observable		Inputs
				Markets for		Inputs		(Level 3)
				Identical		(Level 2)
				Assets
				(Level 1)
	Assets
	Certificates of deposit	$	200	$	200	$	—	$	—
	Money market funds	27		27		—		—
	Commercial paper	23,932		—		23,932		—
	Corporate notes	6,294		—		6,294		—
	Government sponsored enterprise issues	36,577		—		36,577		—
	U.S. Treasury securities	17,313		—		17,313		—
		$	84,343	$	227	$	84,116	$	—
	During the three and nine months ended September 30, 2013 and the year ended December 31, 2012, there were no significant changes to the valuation models used for purposes of determining the fair value of Level 2 assets. No other assets and liabilities were carried at fair value as of September 30, 2013 and December 31, 2012.
	Level 2 securities are priced using quoted market prices for similar instruments, nonbinding market prices that are corroborated by observable market data, or discounted cash flow techniques. There were no transfers of assets between different fair-value levels during the periods presented.

Collaboration_Agreement

Collaboration Agreement	9 Months Ended
	Sep. 30, 2013
Collaboration Agreement [Abstract]	'
Collaboration Agreements	'
	Collaboration Agreements
	Intermezzo
	In July 2009, the Company entered into the Collaboration Agreement with Purdue Pharma that grants an exclusive license to Purdue Pharma to commercialize Intermezzo in the United States and pursuant to which:
	◦	Purdue Pharma paid a $25.0 million non-refundable license fee in August 2009;
	◦	Purdue Pharma paid a $10.0 million non-refundable intellectual property milestone in December 2011 when the first of two issued formulation patents was listed in the FDA's Approved Drug Products with Therapeutic Equivalence Evaluations, or Orange Book;
	◦	Purdue Pharma paid a $10.0 million non-refundable intellectual property milestone in August 2012 when the first of two issued method of use patents was listed in the FDA's Orange Book;
	◦	The Company transferred the Intermezzo New Drug Application (NDA) to Purdue Pharma, and Purdue Pharma is obligated to assume the expense associated with maintaining the NDA and further development of Intermezzo in the United States, including any expense associated with post-approval studies;
	◦	Purdue Pharma is obligated to commercialize Intermezzo in the United States at its expense using commercially reasonable efforts;
	◦	Purdue Pharma is obligated to pay the Company tiered base royalties on net sales of Intermezzo in the United States ranging from the mid-teens up to the mid-20% level. The base royalty is tiered depending upon the achievement of certain fixed net sales thresholds by Purdue Pharma, which net sales levels reset each year for the purpose of calculating the royalty; and
	◦	Purdue Pharma is obligated to pay the Company up to an additional $70.0 million upon the achievement of certain net sales targets for Intermezzo in the United States.
	The Company has retained an option to co-promote Intermezzo to psychiatrists in the United States. The option can be exercised as late as August 2015. The Company may begin promotion to psychiatrists 8 to 15 months after option exercise. The exact timing of when the Company begins promoting to psychiatrists is determined by the calendar month in which the option exercise notice is delivered to Purdue Pharma. If the Company exercises the co-promote option and enters the marketplace, it is entitled to receive an additional co-promote royalty from Purdue Pharma on net sales that are generated by psychiatrist prescriptions. Had the Company chosen to exercise the option as soon as it was eligible, it could have begun promoting to psychiatrists in May 2013 and received a co-promote royalty of 40%. The co-promote royalty rate declines on a straight-line basis to approximately 22% if the Company does not begin promoting to psychiatrists until November 2016, at which time the right to co-promote expires. Net sales qualifying for this additional co-promote royalty are limited by an annual cap of 15% of total Intermezzo annual net sales in the United States. The co-promote option cannot be transferred to a third party, except under a limited circumstance at the discretion of Purdue Pharma.
	Purdue Pharma has the right to terminate the Collaboration Agreement at any time upon advance notice of 180 days. The Company's co-promote option may also be terminated by Purdue Pharma upon the Company's acquisition by a third party or in the event of entry of generic competition to Intermezzo. The royalty payments discussed above are subject to reduction in connection with, among other things, the entry of generic competition to Intermezzo. The Collaboration Agreement expires on the later of 15 years from the date of first commercial sale in the United States or the expiration of patent claims related to Intermezzo. The Collaboration Agreement is also subject to termination by Purdue Pharma in the event of FDA or governmental action that materially impairs Purdue Pharma's ability to commercialize Intermezzo or the occurrence of a serious event with respect to the safety of Intermezzo. The Collaboration Agreement may also be terminated by the Company upon Purdue Pharma commencing an action that challenges the validity of Intermezzo related patents. The Company also has the right to terminate the Collaboration Agreement immediately if Purdue Pharma is excluded from participation in federal healthcare programs. The Collaboration Agreement may also be terminated by either party in the event of a material breach by or insolvency of the other party.
	The Company began earning royalty revenue upon commercial launch of Intermezzo in April 2012. Royalty revenue earned during the three and nine months ended September 30, 2013 was $0.4 million and $1.4 million, respectively. Royalty revenue earned during the three and nine months ended September 30, 2012 was $0.2 million and $0.7 million, respectively.
	The Company recorded as revenue the $10.0 million milestone payment received in August 2012. The patent-related milestone was substantive and at-risk given the inherent uncertainty and risks associated with obtaining patent approval from the U.S. Patent and Trademark Office and subsequent listing in the FDA's Orange Book. The Company had no additional performance obligations under the Collaboration Agreement related to this milestone.
	During the three and nine months ended September 30, 2013, the Company granted Purdue Pharma the right to negotiate for the commercialization of Intermezzo in Mexico, and retained rights to commercialize Intermezzo in the rest of the world. During the three and nine months ended September 30, 2012, the Company granted Purdue Pharma and an associated company the right to negotiate for the commercialization of Intermezzo in Mexico and Canada, and retained rights to commercialize Intermezzo in the rest of the world. During the three months ended September 30, 2013 and 2012, the Company recorded revenue of $0.1 million and $0.2 million in Other Revenue associated with these rights.
	On November 21, 2012, the Company agreed to contribute $10.0 million to Purdue Pharma's $29.0 million national DTC advertising campaign, including digital, print and television advertising to support Intermezzo commercialization. The Company initially recorded the $10.0 million payment to Purdue as a prepaid expense. The Company is recognizing this payment as an offset to revenue as the advertising costs are incurred. At September 30, 2013, Purdue Pharma estimated that approximately $1.6 million of the Company's original contribution will be returned due to reduced overall DTC campaign spending. Accordingly, $1.6 million is recorded as a receivable included in prepaid and other current assets at September 30, 2013.
	For the three and nine months ended September 30, 2013, the offset to revenue totaled $0.1 million and $6.7 million. Prepaid advertising costs were $0.2 million at September 30, 2013. There was no advertising offset to revenue during the three and nine months ended September 30, 2012.
	TO-2070: a developmental product candidate for migraine treatment
	In September 2013, the Company entered into the License Agreement with Shin Nippon Biomedical Laboratories Ltd. ("SNBL") pursuant to which SNBL granted the Company an exclusive worldwide license to commercialize SNBL's proprietary nasal drug delivery technology to develop TO-2070. The Company is developing TO-2070 as a treatment for acute migraine using SNBL’s proprietary nasal powder drug delivery system. Under the License Agreement, the Company is required to fund, lead and be responsible for product development, preparing and submitting regulatory filings and obtaining and maintaining regulatory approval with respect to TO-2070. Pursuant to the License Agreement, the Company has incurred an upfront nonrefundable technology license fee of $1.0 million, and is also obligated to pay:
	•	up to $6.5 million upon the occurrence of certain development milestones, including NDA approval of TO-2070 by the FDA,
	•	up to $35.0 million in commercialization milestone payments tied to the achievement of specified annual sales levels of TO-2070, and
	•	tiered, low double-digit royalties on annual net sales of TO-2070.
	Under the License Agreement, the Company is responsible for the clinical and commercial manufacture, supply, and distribution of TO-2070 products. SNBL has agreed to supply its nasal drug delivery device to the Company to conduct development activities for non-registration studies, and has the right of first negotiation to be the Company's exclusive supplier for devices for any registration studies and for incorporation into commercial TO-2070 products under the License Agreement thereafter.
	The License Agreement terminates on a country-by-country basis upon the later of (i) the expiration of the last patent licensed under the License Agreement in such country and (ii) 15 years from the first commercial sale in such country. The License Agreement may also be terminated (i) by either party upon 90 days' written notice in connection with an uncured material breach of the License Agreement, (ii) by either party upon insolvency of the other party, (iii) immediately by SNBL if the Company challenges the validity of the patents licensed under the License Agreement, or (iv) by the Company at its convenience upon 90 days' prior notice.
	The $1.0 million license fee was recorded as research and development expense during the three and nine month period ended September 30, 2013 because the licensed technology was incomplete and has no alternative future use. Payments to SNBL that relate to pre-approval development milestones will be recognized as research and development expense when incurred.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Commitments and Contingencies
	Leases
	On March 6, 2013, the Company extended its lease agreement for 11,600 square feet of space in its current facility in Point Richmond, California by one year through May 31, 2014.
	Legal Proceedings
	ANDA Litigation - Intermezzo
	In July 2012, the Company received notifications from three companies, Actavis Elizabeth LLC (Actavis), Watson Laboratories, Inc. - Florida (Watson), and Novel Laboratories, Inc. (Novel), in September 2012, from each of Par Pharmaceutical, Inc. and Par Formulations Private Ltd. (together, the Par Entities), in February 2013 from Dr. Reddy's Laboratories, Inc. and Dr. Reddy's Laboratories, Ltd. (together, Dr. Reddy's), and in July 2013 from TWi Pharmaceuticals, Inc. (TWi) stating that each has filed with the FDA an Abbreviated New Drug Application, or ANDA, that references Intermezzo.
	•	Actavis & Watson: In the July 2012 notifications, Actavis and Watson indicated that each company's ANDA includes Paragraph IV patent certifications to our U.S. Patent Nos. 7,658,945 (expiring April 15, 2027) and 7,682,628 (expiring February 16, 2025) (together, the “'945 and '628 Patents”). On November 28, 2012, Watson withdrew its ANDA, and, as a result of such withdrawal, on December 18, 2012, the Company and Purdue agreed to voluntarily dismiss the action without prejudice and on December 20, 2012 a court order was entered to such effect. The dismissal of Watson's ANDA had no effect on the ANDA filed by Actavis, a wholly owned subsidiary of Watson Pharmaceuticals, Inc. On January 24, 2013, Actavis notified the Company that it has included Paragraph IV patent certifications to Transcept's U.S. Patent Nos. 8,242,131 (expiring August 20, 2029) and 8,252,809 (expiring February 16, 2025) (together, the “'131 and '809 Patents”).
	•	Novel: In the July 2012 notifications, Novel indicated that its ANDA includes Paragraph IV patent certifications to the '945 and '628 Patents. On December 10, 2012, Novel notified the Company that it has included Paragraph IV patent certifications to the '131 and '809 Patents.
	•	Par Entities: The ANDAs submitted by the Par Entities each include Paragraph IV patent certifications to the '945, '628, '131 and '809 Patents.
	•	Dr. Reddy's: The ANDA submitted by Dr. Reddy's includes Paragraph IV patent certifications to the '945, '628, '131 and '809 Patents.
	•	TWi: The ANDA submitted by TWi includes Paragraph IV patent certifications to the '945, '628, '131 and '809 Patents.
	In August 2012, August 2012, September 2012, and October 2012, respectively, the Company joined Purdue Pharma in filing actions against Actavis, Watson and certain of their affiliates, Novel, and the Par Entities, in the U.S. District Court for the District of New Jersey, in each action alleging patent infringement and seeking injunctive and other relief. In December 2012, the Company and Purdue Pharma agreed to voluntarily dismiss the action against Watson following its withdrawal of its ANDA. After receiving the supplemental notifications referenced above, the Company and Purdue Pharma amended their pending complaints against Actavis and Novel to also allege infringement of the '131 and '809 patents, as well as the '628 patent previously asserted against those companies. The actions against the Par Entities alleged infringement of the '131 and '809 patents. In September 2013, the Company and Purdue Pharma agreed to voluntarily dismiss the action against one of the two Par Entities, Par Formulations Private Ltd., following that Par Entity’s withdrawal of its ANDA. The action against the other Par Entity, Par Pharmaceutical, Inc., remains pending and continues to allege infringement of the ‘131 and ‘809 patents. In April 2013, the Company joined Purdue Pharma in filing an action in the U.S. District Court for the District of New Jersey against Dr. Reddy's, alleging patent infringement of the '628, '131 and '809 patents, and seeking injunctive and other relief.
	In August 2013, the Company joined Purdue Pharma in filing two actions against TWi. The first action against TWi was filed on August 20, 2013 in the U.S. District Court for the District of New Jersey, and the second action against TWi was filed on August 22, 2013 in the U.S. District Court for the Northern District of Illinois. Each action alleges patent infringement of the ‘131 and ‘809 patents, and seeks injunctive and other relief. On October 17, 2013, TWi filed answers and counterclaims in both New Jersey and Illinois, in both cases seeking declarations of non-infringement and invalidity as to the ‘945, ‘628, ‘131, and ‘809 patents, as well as other relief.
	Patent Term Adjustment Suit
	In January 2013, the Company and Purdue Pharma filed suit in the Eastern District of Virginia against the United States Patent and Trademark Office, or USPTO, in connection with certain changes to the Leahy-Smith America Invents Act. The Company and Purdue Pharma are seeking a recalculation of the patent term adjustment of the '131 Patent. Purdue Pharma has agreed to bear the costs and expenses associated with this litigation. In June of 2013, the judge granted a joint motion to stay the proceedings pending a final decision on appeal by the Federal Circuit in Exelixis, Inc. v. Rea, No. 2013-11 75 (Fed. Cir.), and Exelixis, Inc. v. Rea, No. 20 13-11 98 (Fed. Cir.).
	Derivative Suit
	In October 2013, one of the Company’s stockholders, Retrophin, Inc., filed a purported derivative suit against the Company’s Board of Directors in the Court of Chancery of the State of Delaware purporting to assert claims on behalf of the Company, and alleging that the Board of Directors approved and paid excessive compensation to its directors. The complaint seeks, among other things, a declaration that the compensation paid to the directors is excessive and the approval of such compensation is a breach of the directors’ fiduciary duties, as well as a return of any excessive compensation and payment of Retrophin’s costs and attorney’s fees. The Company's directors believe the suit is without merit and intend to defend themselves vigorously.
	From time to time the Company is involved in legal proceedings arising in the ordinary course of business. The Company believes there is no other litigation pending that could have, individually or in the aggregate, a material adverse effect on its results of operations or financial condition.

Restructuring

Restructuring	9 Months Ended
	Sep. 30, 2013
Restructuring and Related Activities [Abstract]	'
Restructuring	'
	Restructuring
	On January 2, 2013, the Company implemented a reduction of 29% of its workforce, which resulted in $0.3 million of expenses which primarily consisted of severance charges. The severance was paid during the quarter ended March 31, 2013 and no additional charges are expected to be incurred under this reduction in force.

Preferred_Stock_Purchase_Right

Preferred Stock Purchase Rights (Notes)	9 Months Ended
	Sep. 30, 2013
Preferred Stock Purchase Rights [Abstract]	'
Preferred Stock [Text Block]	'
	8. Preferred Stock Purchase Rights
	On September 13, 2013, the Company's Board of Directors adopted a tax benefit preservation plan to help preserve the value of certain deferred tax benefits, including those generated by net operating losses and net unrealized built-in losses. the Company’s ability to use these tax benefits would be substantially limited if it were to experience an “ownership change” as defined under Section 382 of the Internal Revenue Code. Holders of the Company’s common stock of record on September 27, 2013 received preferred stock purchase rights ("Rights") that initially trade together with the Company’s common stock and are not exercisable. As long as the Rights are attached to the common stock, the Company will issue one Right (subject to adjustment) with each new share of the common stock so that all such shares will have attached Rights. When exercisable, each Right will entitle the registered holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock, par value $0.001 per share (the “Series A Preferred”), of the Company at a price of $14.24 per one one-hundredth of a share of Series A Preferred, subject to adjustment (the “Purchase Price”).
	The plan, subject to limited exceptions, provides that any stockholder or group that acquires beneficial ownership of 4.99 percent or more of the Company’s securities without the approval of the Company's Board of Directors would be subject to significant dilution of its holdings. In addition, subject to limited exceptions, any existing 4.99 percent or greater stockholder that acquires beneficial ownership of any additional shares of the Company’s securities without the approval of the Board of Directors would also be subject to dilution. In both cases, such person would be deemed to be an “acquiring person” for purposes of the tax plan.
	In the event that a person becomes an "Acquiring Person" under the plan, then, subject to certain exceptions, the Rights, other than Rights that are or were acquired or beneficially owned by the Acquiring Person (which Rights will thereafter be null and void), will become exercisable for the Company’s common stock having a market value equal to twice the exercise price of the Right. The Board of Directors has established procedures to consider requests to exempt certain acquisitions of the Company’s securities from the plan if the Board of Directors determines that doing so would not limit or impair the availability of the tax benefits or is otherwise in the best interests of the Company.

Organization_and_Summary_of_Si1

Organization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basis of Presentation	'
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not contain all of the information and footnotes required for complete consolidated financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company's interim financial information. The accompanying condensed consolidated balance sheet at December 31, 2012 has been derived from our audited financial statements at that date, but does not include all the disclosures required for complete financial statements. The results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year ending December 31, 2013 or for any other interim period or any other future year.
	The accompanying unaudited condensed consolidated financial statements and notes to condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the United States Securities and Exchange Commission on March 12, 2013.
Use of Estimates	'
	The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates. Management makes estimates when preparing the financial statements including those relating to revenue recognition, clinical trials expense, advertising expense, and stock-based compensation.
Principles of Consolidation	'
	The accompanying condensed consolidated financial statements include the results of operations of Transcept Pharmaceuticals, Inc. and its wholly-owned subsidiary, Transcept Pharma, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]	'
	Goodwill is not subject to amortization, but is tested for impairment on an annual basis during the third quarter or whenever events or changes in circumstances indicate the carrying amount of these assets may not be recoverable. Goodwill impairment testing is a two-step process and performed on a reporting unit level. In the first step, the Company conducts an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not that the fair value of its reporting unit is less than its carrying amount, it then conducts the second step, a two-part test for impairment of goodwill. The Company first compares the fair value of its reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the reporting unit's net assets, goodwill is not considered impaired and no further analysis is required. If the carrying value of the net assets exceeds the fair value of the reporting unit, then the second part of the impairment test must be performed in order to determine the implied fair value of the goodwill. If the carrying value of the goodwill exceeds the implied fair value, then an impairment loss equal to the difference would be recorded. For 2012, the Company performed its annual goodwill impairment analysis as of September 30, 2012 and concluded that goodwill was not impaired. The Company operates in one reporting unit and believes that its market capitalization is indicative of the fair value of the Company.
Revenue Recognition	'
	The Company applies the revenue recognition criteria outlined in Staff Accounting Bulletin No. 104, Revenue Recognition in Financial Statements, and Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605 Revenue Recognition, sub-topic 25 Multiple-Element Arrangements.
	Revenue arrangements with multiple components are divided into separate units of accounting if certain criteria are met, including whether the delivered component has stand-alone value to the customer. Consideration received is allocated among the separate units of accounting based on their relative fair values or if fair value is not determinable, based on the Company’s best estimate of selling price. Applicable revenue recognition criteria are then applied to each of the units.
	Revenue is recognized when the four basic criteria of revenue recognition are met: (1) persuasive evidence of an arrangement exists; (2) transfer of technology has been completed or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured.
	For each source of revenue, the Company complies with the above revenue recognition criteria in the following manner:
	•	Up-front license payments are assessed to determine whether or not the licensee is able to obtain any stand-alone value from the license. Where this is not the case, the Company does not consider the license deliverable to be a separate unit of accounting, and the revenue is deferred with revenue recognition for the license fee assessed in conjunction with the other deliverables that constitute the combined unit of accounting. When the period of deferral cannot be specifically identified from the agreement, management estimates the period based upon provisions contained within the related agreements and other relevant facts. The Company periodically reviews the estimated involvement period, which could impact the deferral period and, therefore, the timing and the amount of revenue recognized. It is possible that future adjustments will be made if actual conditions differ from the Company’s current plan and involvement assumptions;
	•	Payments received that are related to substantive, performance-based “at-risk” milestones are recognized as revenue upon achievement of the milestone or event specified in the underlying contracts, which represents the culmination of the earnings process. Amounts received in advance, if any, are recorded as deferred revenue until the milestone is reached; and
	•	Royalty revenue from sales of the Company’s licensed product is recognized as earned in accordance with the contract terms when royalties from licensees can be estimated and collectability is reasonably assured.
Advertising	'
	The Company expenses non-direct response advertising as incurred. Advertising expense consists of the Company's December 2012 $10.0 million contribution to Purdue Pharma's national direct-to-consumer ("DTC") advertising campaign, including digital, print and television advertising to support Intermezzo commercialization. The Company initially recorded the $10.0 million payment to Purdue Pharma as a prepaid expense. This payment is being recognized as the advertising costs are incurred. As this payment was made directly to Purdue Pharma, recognition of the expense is recorded as an offset to revenue.
Stock-Based Compensation	'
	The Company records stock-based compensation in accordance with ASC Topic 718 Compensation - Stock Compensation (“ASC Topic 718”) (formerly Statement of Financial Accounting Standards (“SFAS”) No. 123(R), Share-Based Payment). ASC Topic 718 requires an entity to measure the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the date of grant and to recognize the cost over the period during which the employee is required to provide service in exchange for the award. Additionally, the Company is required to include an estimate of the number of awards that will be forfeited in calculating compensation costs, which are recognized over the requisite service period of the awards on a straight-line basis.
	The Company recognized employee stock-based compensation costs of $0.8 million and $2.3 million during the three and nine months ended September 30, 2013, respectively and $0.7 million and $2.0 million during the three and nine months ended September 30, 2012, respectively, in accordance with the provisions of ASC Topic 718. No related tax benefits of stock-based compensation costs have been recognized since the Company's inception. The Company issued 82,500 and 162,133 shares of common stock for the three and nine months ended September 30, 2013, upon stock option exercises.
	During the nine months ended September 30, 2013, the Company modified the terms of stock options previously granted to six of its employees in connection with a reduction in force. The modifications included accelerated vesting of certain options and extension of the exercise period after termination with respect to certain of the options. These modifications resulted in additional compensation expense of $23,000. During the nine months ended September 30, 2012, the Company modified the terms of stock options previously granted to a member of its Board of Directors to accelerate vesting of the option upon the director's anticipated end of service to the Company in April 2012. These modifications resulted in additional compensation expense of $28,000 during the nine months ended September 30, 2012. The Company accounted for the modification of these stock option awards in accordance with the provisions of ASC Topic 718.
	The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC Topic 505, subtopic 50, Equity-Based Payments to Non-Employees (formerly Emerging Issues Task Force No. 96-18, Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling Goods or Services), using a fair-value approach. The equity instruments, consisting of stock options and warrants granted to lenders and consultants, are valued using the Black-Scholes valuation model. The measurement of stock-based compensation is subject to periodic adjustments as the underlying equity instruments vest and is recognized as an expense over the term of the related financing or the period over which services are received. The Company recorded non-employee stock-based compensation costs of $12,000 and $69,000 during the three and nine months ended September 30, 2013, respectively and $33,000 and $166,000 during the three and nine months ended September 30, 2012, respectively.
Clinical Trials	'
	The Company accrues and expenses costs for clinical trial activities performed by third parties, including clinical research organizations and clinical investigators, based upon estimates made of the work completed as of each reporting date, in accordance with agreements established with contract research organizations and clinical trial sites and the agreed upon fee to be paid for the services. The Company determines these estimates through discussion with internal personnel and outside service providers as to the progress or stage of completion of the trials or services. Costs of setting up clinical trial sites for participation in the trials are expensed immediately as research and development expenses. Clinical trial site costs related to patient enrollment are accrued as patients are entered into the trial and reduced by any initial payment made to the clinical trial site when the first patient is enrolled.

Results_of_Operations_Tables

Results of Operations (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Calculation of basic and diluted net income (loss) per share	'
	The following table presents the calculation of basic and diluted net (loss) income per share (in thousands, except per share amounts):
		Three Months Ended							Nine Months Ended
		September 30,							September 30,
		2013				2012			2013			2012
	Numerator:
	Net (loss) income	$	(4,703	)		$	4,855		$	(21,911	)	$	(5,462	)
	Denominator for basic and diluted net (loss) income per share:
	Weighted average common shares outstanding - basic	18,782				18,568			18,748			16,523
	Effect of dilutive equity incentive plans	—				664			—			—
	Weighted average common shares outstanding - diluted	18,782				19,232			18,748			16,523
Antidilutive shares excluded from computation of diluted net income (loss) per share	'
	The following common equivalent shares were not included in the computation of diluted net (loss) income per share because their effect was anti-dilutive (in thousands):
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013		2012
	Shares subject to options to purchase common stock	4,456			1,958			4,064		3,147
	Shares subject to warrants to purchase common stock	61			156			61		156
	Total	4,517			2,114			4,125		3,303
	At September 30, 2013, there were 4,454,000 shares subject to options to purchase common stock outstanding and 61,000 shares subject to warrants to purchase common stock outstanding.

Availableforsale_Securities_Ta

Available-for-sale Securities (Tables)	9 Months Ended
	Sep. 30, 2013
Available-for-sale Securities [Abstract]	'
Summary of available-for-sale debt securities recognized as cash and cash equivalents, marketable securities, or restricted cash	'
	The following is a summary of available-for-sale debt securities recognized as cash and cash equivalents, marketable securities, or restricted cash in the Company's condensed consolidated balance sheets. Estimated fair values of available-for-sale securities are generally based on prices obtained from commercial pricing services (in thousands):
		September 30, 2013
		Amortized			Unrealized			Unrealized		Estimated
		Cost			Gains			Losses		Fair Value
	Certificates of deposit	$	200		$	—		$	—	200
	Money market funds	30			—			—		30
	Commercial paper	10,000			—			—		10,000
	Corporate notes	19,777			10			—		19,787
	Government sponsored enterprise issues	42,059			17			—		42,076
	U.S. Treasury securities	3,257			4			—		3,261
		$	75,323		$	31		$	—	$	75,354
		31-Dec-12
		Amortized			Unrealized			Unrealized		Estimated
		Cost			Gains			Losses		Fair Value
	Certificates of deposit	$	200		$	—		$	—	200
	Money market funds	27			—			—		27
	Commercial paper	23,932			—			—		23,932
	Corporate notes	6,294			—			—		6,294
	Government sponsored enterprise issues	36,575			2			—		36,577
	U.S. Treasury securities	17,308			5			—		17,313
		$	84,336		$	7		$	—	$	84,343
Classification of the available-for-sale securities	'
	The following table summarizes the classification of the available-for-sale securities on the Company's condensed consolidated balance sheets (in thousands):
			September 30,			December 31,
			2013			2012
	Cash and cash equivalents		$	13,031		$	38,236
	Marketable securities		62,123			45,907
	Restricted cash		200			200
			$	75,354		$	84,343

Fair_Value_Tables

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair value of financial assets on a recurring basis	'
	The estimated fair values of the Company's financial assets (cash equivalents and marketable securities) as of September 30, 2013 (in thousands) are as follows:
				Fair Value Measurements at Reporting Date Using
		September 30,		Quoted		Significant		Significant
		2013		Prices in		Other		Unobservable
				Active		Observable		Inputs
				Markets for		Inputs		(Level 3)
				Identical		(Level 2)
				Assets
				(Level 1)
	Assets
	Certificates of deposit	$	200	$	200	$	—	$	—
	Money market funds	30		30		—		—
	Commercial paper	10,000		—		10,000		—
	Corporate notes	19,787		—		19,787		—
	Government sponsored enterprise issues	42,076		—		42,076		—
	U.S. Treasury securities	3,261		—		3,261		—
		$	75,354	$	230	$	75,124	$	—
	The estimated fair values of the Company's financial assets (cash equivalents and marketable securities) as of December 31, 2012 (in thousands) are as follows:
				Fair Value Measurements at Reporting Date Using
		December 31,		Quoted		Significant		Significant
		2012		Prices in		Other		Unobservable
				Active		Observable		Inputs
				Markets for		Inputs		(Level 3)
				Identical		(Level 2)
				Assets
				(Level 1)
	Assets
	Certificates of deposit	$	200	$	200	$	—	$	—
	Money market funds	27		27		—		—
	Commercial paper	23,932		—		23,932		—
	Corporate notes	6,294		—		6,294		—
	Government sponsored enterprise issues	36,577		—		36,577		—
	U.S. Treasury securities	17,313		—		17,313		—
		$	84,343	$	227	$	84,116	$	—

Organization_and_Summary_of_Si2

Organization and Summary of Significant Accounting Policies - Narrative (Details) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	31-May-13	Dec. 31, 2012	Dec. 01, 2012
				segment		SalesReps
						Number_of_contract_salesreps
Segment Reporting [Abstract]	'	'	'	'	'	'	'	'
Number of business segments	'	'	'	1	'	'	'	'
Advertising	'	'	'	'	'	'	'	'
Prepaid advertising	$244,000	'	'	$244,000	'	'	$8,571,000	$10,000,000
Partial refund of prepaid advertising from Purdue	1,600,000	'	'	1,600,000	'	'	'	'
Advertising expense - Purdue Pharma	-86,000	'	0	-6,681,000	0	'	'	'
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'	'	'	'	'	'
DeclineInIntermezzoPrescriptions	'	30.00%	'	'	'	'	'	'
ContractSalesRepresentatives	'	'	'	'	'	90	'	'
Sales Representatives	'	'	'	'	'	525	'	'
DeclineInCompanyStockPrice	'	37.00%	'	'	'	'	'	'
MarketCapitalization	'	56,700,000	'	'	'	'	'	'
Stockholders' Equity Attributable to Parent	76,289,000	79,900,000	'	76,289,000	'	'	95,393,000	'
Goodwill impairment	$0	$3,000,000	$0	$2,962,000	$0	'	'	'

Organization_and_Summary_of_Si3

Organization and Summary of Significant Accounting Policies - Stock-Based Compensation (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
			employee
Employee Stock Option [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock based compensation costs	$800	$700	$2,300	$2,000
Shares of common stock issued	'	82,500	162,133	'
Number of employees affected by stock-based modification	'	'	6	'
Stock option modification expense	'	'	23	'
Employee Stock Option [Member] | Director [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock option modification expense	'	'	'	28
Nonemployee Stock Options [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock based compensation costs	$12	$33	$69	$166

Results_of_Operations_Calculat

Results of Operations - Calculation of Basic and Diluted Net Income Per Share(Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Numerator:	'	'	'	'
Net loss	($4,703)	$4,855	($21,911)	($5,462)
Denominator for basic and diluted net (loss) income per share:	'	'	'	'
Weighted Average Number of Shares Outstanding, Basic	18,782	18,568	18,748	16,523
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0	664	0	0
Weighted Average Number of Shares Outstanding, Diluted	18,782	19,232	18,748	16,523

Results_of_Operations_Antidilu

Results of Operations - Antidilutive Shares Excluded from Computation(Details)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	4,454	'	4,454	'
Class of Warrant or Right, Outstanding	61	'	61	'
Excluded potentially dillutive securities:	'	'	'	'
Total	4,517	2,114	4,125	3,303
Shares subject to options to purchase common stock [Member]	'	'	'	'
Excluded potentially dillutive securities:	'	'	'	'
Total	4,456	1,958	4,064	3,147
Shares subject to warrants to purchase common stock [Member]	'	'	'	'
Excluded potentially dillutive securities:	'	'	'	'
Total	61	156	61	156

Availableforsale_Securities_Es

Available-for-sale Securities - Estimated Fair Value (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Summary of available-for-sale debt securities recorded in cash and cash equivalents, marketable securities, or restricted cash	'	'
Amortized Cost	$75,323	$84,336
Unrealized Gains	31	7
Unrealized Losses	0	0
Estimated Fair Value	75,354	84,343
Certificates of deposit [Member]	'	'
Summary of available-for-sale debt securities recorded in cash and cash equivalents, marketable securities, or restricted cash	'	'
Amortized Cost	200	200
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	200	200
Money market funds [Member]	'	'
Summary of available-for-sale debt securities recorded in cash and cash equivalents, marketable securities, or restricted cash	'	'
Amortized Cost	30	27
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	30	27
Commercial paper [Member]	'	'
Summary of available-for-sale debt securities recorded in cash and cash equivalents, marketable securities, or restricted cash	'	'
Amortized Cost	10,000	23,932
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	10,000	23,932
Corporate notes [Member]	'	'
Summary of available-for-sale debt securities recorded in cash and cash equivalents, marketable securities, or restricted cash	'	'
Amortized Cost	19,777	6,294
Unrealized Gains	10	0
Unrealized Losses	0	0
Estimated Fair Value	19,787	6,294
Government sponsored enterprise issues [Member]	'	'
Summary of available-for-sale debt securities recorded in cash and cash equivalents, marketable securities, or restricted cash	'	'
Amortized Cost	42,059	36,575
Unrealized Gains	17	2
Unrealized Losses	0	0
Estimated Fair Value	42,076	36,577
U.S. Treasury securities [Member]	'	'
Summary of available-for-sale debt securities recorded in cash and cash equivalents, marketable securities, or restricted cash	'	'
Amortized Cost	3,257	17,308
Unrealized Gains	4	5
Unrealized Losses	0	0
Estimated Fair Value	$3,261	$17,313

Availableforsale_Securities_Cl

Available-for-sale Securities - Classification (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Classification of the available-for-sale securities	'	'
Available for sale securities total	$75,354,000	$84,343,000
Restricted Cash [Member]	'	'
Classification of the available-for-sale securities	'	'
Available for sale securities total	200,000	200,000
Marketable Securities [Member]	'	'
Classification of the available-for-sale securities	'	'
Available for sale securities total	62,123,000	45,907,000
Available-for-sale securities, maturity between one and two years	16,100,000	'
Available-for-sale securities, maturity of one year or less	46,000,000	'
Cash and Cash Equivalents [Member]	'	'
Classification of the available-for-sale securities	'	'
Available for sale securities total	13,031,000	38,236,000
Marketable Securities [Member]	'	'
Classification of the available-for-sale securities	'	'
Sale of available-for-sale securities	$0	$0

Fair_Value_Details

Fair Value (Details) (Fair Value, Measurements, Recurring [Member], USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets	'	'
Assets, Fair Value Disclosure, Recurring	$75,354	$84,343
Certificates of deposit [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	200	200
Money market funds [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	30	27
Commercial paper [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	10,000	23,932
Corporate notes [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	19,787	6,294
Government sponsored enterprise issues [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	42,076	36,577
U.S. Treasury securities [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	3,261	17,313
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	230	227
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of deposit [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	200	200
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	30	27
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate notes [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government sponsored enterprise issues [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury securities [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Significant Other Observable Inputs (Level 2) [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	75,124	84,116
Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	10,000	23,932
Significant Other Observable Inputs (Level 2) [Member] | Corporate notes [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	19,787	6,294
Significant Other Observable Inputs (Level 2) [Member] | Government sponsored enterprise issues [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	42,076	36,577
Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury securities [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	3,261	17,313
Significant Unobservable Inputs (Level 3) [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member] | Corporate notes [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member] | Government sponsored enterprise issues [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury securities [Member]	'	'
Assets	'	'
Assets, Fair Value Disclosure, Recurring	$0	$0

Collaboration_Agreement_Detail

Collaboration Agreement (Details) (USD $)

3 Months Ended

9 Months Ended

0 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Dec. 01, 2012

Nov. 21, 2012

Aug. 31, 2012

Dec. 31, 2011

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Aug. 31, 2009

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Purdue Pharma [Member]

Purdue Pharma [Member]

Purdue Pharma [Member]

Purdue Pharma [Member]

Purdue Pharma [Member]

Purdue Pharma [Member]

Purdue Pharma [Member]

Purdue Pharma [Member]

SNBL [Member]

SNBL [Member]

Minimum [Member]

Maximum [Member]

Maximum [Member]

Purdue Pharma [Member]

Purdue Pharma [Member]

SNBL [Member]

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Non Refundable License Fee, Revenue

'

'

'

'

'

'

'

'

'

'

'

'

'

$25,000,000

'

'

'

'

'

Non Refundable License Fee

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1,000,000

1,000,000

'

'

'

Non refundable intellectual property

0

10,000,000

0

10,000,000

'

'

'

10,000,000

10,000,000

'

'

'

'

'

'

'

'

'

'

Other Revenue Associated With Commercialization Of Intermezzo

'

'

'

'

'

'

'

'

'

100,000

200,000

'

'

'

'

'

'

'

'

Range of Company tier base royalties

'

'

'

'

'

'

'

'

'

'

'

'from the mid-teens up to the mid-20%

'

'

'

'tiered, low double-digit royalties

'

'

'

Payment on achievement of net sales criteria

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

70,000,000

'

Promotion to psychiatrists

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'8 months

'15 months

'

Additional co-promote royalty

'

'

'

'

'

'

'

'

'

'

'

40.00%

'

'

'

'

'

'

'

Co-promote royalty minimum criteria percentage

'

'

'

'

'

'

'

'

'

'

'

22.00%

'

'

'

'

'

'

'

Percentage of sales limiting co-promote royalty

'

'

'

'

'

'

'

'

'

15.00%

'

15.00%

'

'

'

'

'

'

'

Advance notice to terminate the collaboration agreement

'

'

'

'

'

'

'

'

'

'180 days

'

'180 days

'

'

'90 days

'90 days

'

'

'

Validity of collaboration agreement

'

'

'

'

'

'

'

'

'

'15 years

'

'15 years

'

'

'15 years

'15 years

'

'

'

Gross royalty revenue

418,000

190,000

1,381,000

683,000

'

'

'

'

'

400,000

200,000

1,400,000

700,000

'

'

'

'

'

'

Prepaid advertising

244,000

'

244,000

'

8,571,000

10,000,000

10,000,000

'

'

200,000

'

200,000

'

'

'

'

'

'

'

Partial refund of prepaid advertising from Purdue

1,600,000

'

1,600,000

'

'

'

'

'

'

1,600,000

'

1,600,000

'

'

'

'

'

'

'

Purdue Pharma's national direct-to-consumer advertising campaign

'

'

'

'

'

'

29,000,000

'

'

'

'

'

'

'

'

'

'

'

'

Advertising expense - Purdue Pharma

-86,000

0

-6,681,000

0

'

'

'

'

'

-100,000

0

-6,700,000

0

'

'

'

'

'

'

Payment On Achievement Of DevelopmentalMilestones

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

6,500,000

Payment On Achievement Of CommercialMilestones

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

35,000,000

Research and Development Expense (Excluding Acquired in Process Cost)

$2,410,000

$3,057,000

$5,151,000

$8,273,000

'

'

'

'

'

'

'

'

'

'

$1,000,000

$1,000,000

'

'

'

Commitments_and_Contingencies_

Commitments and Contingencies Leases (Details) (Office Building [Member])	0 Months Ended
	Mar. 06, 2013
	sqft
Office Building [Member]	'
Operating Leased Assets [Line Items]	'
Area of real estate property (square feet)	11,600
Operating lease term	'1 year

Restructuring_Details

Restructuring (Details) (USD $)	0 Months Ended
In Millions, unless otherwise specified	Jan. 02, 2013
Restructuring Cost and Reserve [Line Items]	'
Workforce reduction, percent	29.00%
One-time Termination Benefits [Member]	'
Restructuring Cost and Reserve [Line Items]	'
Restructuring charges	0.3

Preferred_Stock_Purchase_Right1

Preferred Stock Purchase Rights (Details) (USD $)	Sep. 30, 2013
Class of Stock [Line Items]	'
Beneficial Ownership	4.99%
Series A Preferred Stock [Member]	'
Class of Stock [Line Items]	'
Preferred Stock, Par or Stated Value Per Share	0.001
Class of Warrant or Right, Exercise Price of Warrants or Rights	1,424