Collegium Pharmaceutical (COLL) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
Document and Entity Information
Entity Registrant Name	COLLEGIUM PHARMACEUTICAL, INC
Entity Central Index Key	1,267,565
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		29,458,557
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 129,558	$ 153,225
Accounts receivable	3,349	2,129
Inventory	1,495	1,316
Prepaid expenses and other current assets	2,064	1,905
Total current assets	136,466	158,575
Property and equipment, net	1,007	1,038
Intangible assets, net	1,973	2,103
Restricted cash	97	97
Other long-term assets	305	204
Total assets	139,848	162,017
Current liabilities:
Accounts payable	6,793	9,106
Accrued expenses	6,488	8,879
Deferred revenue	8,695	4,944
Current portion of term loan payable	2,556	2,667
Total current liabilities	24,532	25,596
Lease incentive obligation	25	34
Term loan payable, long-term	924	1,479
Total liabilities	25,481	27,109
Commitments and contingencies (see Note 10)
Shareholders’ equity (deficit):
Preferred stock, $0.001 par value; authorized shares - 5,000,000 at March 31, 2017 and December 31, 2016; issued and outstanding shares - none at March 31, 2017 and December 31, 2016
Common stock, $0.001 par value; authorized shares - 100,000,000 at March 31, 2017 and December 31, 2016; issued and outstanding shares - 29,458,557 at March 31, 2017 and 29,364,100 at December 31, 2016	29	29
Additional paid-in capital	360,600	358,063
Accumulated deficit	(246,262)	(223,184)
Total shareholders’ equity	114,367	134,908
Total liabilities and shareholders’ equity	$ 139,848	$ 162,017

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	29,458,557	29,364,100
Common stock, outstanding shares	29,458,557	29,364,100

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues
Product revenues, net	$ 2,172
Costs and expenses
Cost of product revenues	371
Research and development	2,130	$ 4,062
Selling, general and administrative	22,847	11,525
Total costs and expenses	25,348	15,587
Loss from operations	(23,176)	(15,587)
Other expense (income):
Interest income (expense), net	98	(66)
Total other income (expense), net	98	(66)
Net loss	$ (23,078)	$ (15,653)
Loss per share - basic and diluted	$ (0.79)	$ (0.68)
Weighted-average shares - basic and diluted	29,350,268	23,130,153

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net loss	$ (23,078)	$ (15,653)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	208	43
Lease incentive	(9)	(8)
Stock-based compensation expense	1,821	1,101
Changes in operating assets and liabilities:
Accounts receivable	(1,220)
Inventories	(179)
Prepaid expenses and other assets	(148)	365
Accounts payable	(2,313)	2,651
Accrued expenses	(2,521)	(15)
Deferred revenue	3,751
Net cash used in operating activities	(23,688)	(11,516)
Investing activities
Purchases of property and equipment	(29)
Net cash used in investing activities	(29)
Financing activities
Proceeds from issuances of common stock from public offerings, net of issuance costs of $526		51,174
Proceeds from issuances of common stock from employee stock purchase plans	673
Repayment of term note	(666)	(667)
Proceeds from the exercise of stock options	94	42
Payments made for employee restricted stock tax withholdings	(51)
Net cash provided by financing activities	50	50,549
Net (decrease) increase in cash and cash equivalents	(23,667)	39,033
Cash and cash equivalents at beginning of period	153,225	95,697
Cash and cash equivalents at end of period	129,558	134,730
Supplemental disclosure of cash flow information
Cash paid for offering costs		384
Cash paid for interest	49	83
Supplemental disclosure of non-cash activities
Offering costs in accrued expenses	112	$ 128
Acquisition of property and equipment in accrued expenses	$ 99

CONSOLIDATED STATEMENTS OF CAS6

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Issuance costs	$ 526

NATURE OF BUSINESS

NATURE OF BUSINESS	3 Months Ended
	Mar. 31, 2017
NATURE OF BUSINESS
NATURE OF BUSINESS	1. Nature of Business Collegium Pharmaceutical, Inc. (the “Company”) was incorporated in Delaware in April 2002 and then reincorporated in Virginia in July 2014. The Company has its principal operations in Canton, Massachusetts. The Company is a specialty pharmaceutical company developing and commercializing next-generation abuse-deterrent products that incorporate the Company’s patented DETERx® technology platform for the treatment of chronic pain and other diseases. The Company’s first product, Xtampza ER®, or Xtampza, is an abuse-deterrent, extended-release, oral formulation of oxycodone, a widely prescribed opioid medication. In April 2016, the U.S. Food and Drug Administration (“FDA”) approved the Company’s new drug application (“NDA”) filing for Xtampza for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment and for which alternative treatment options are inadequate. In June 2016, the Company announced the commercial launch of Xtampza. The Company’s operations are subject to certain risks and uncertainties. The principal risks include inability to successfully commercialize products, changing market conditions for products and product candidates (including development of competing products), changing regulatory environment and reimbursement landscape, negative outcome of clinical trials, inability or delay in completing clinical trials or obtaining regulatory approvals, the need to retain key personnel and protect intellectual property, patent infringement litigation and the availability of additional capital financing on terms acceptable to the Company. The Company has experienced net losses and negative cash flows from operating activities since its inception, and, as of March 31, 2017 had an accumulated deficit of $246,262. The Company expects to continue to incur net losses in the foreseeable future. A successful transition to profitable operations is dependent upon achieving a level of revenues adequate to support the Company’s cost structure. The Company believes that its cash and cash equivalents at March 31, 2017, together with expected cash inflows from the commercialization of Xtampza will enable the Company to fund its operating expenses, debt service and capital expenditure requirements into 2019. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional cash. Management intends to fund future operations through additional private or public debt or equity offerings, and may seek additional capital through arrangements with strategic partners or from other sources. If the Company is unable to obtain financing or increase profitability, the related lack of liquidity will have a material adverse effect on the Company’s operations and future prospects.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Collegium Pharmaceutical, Inc., a Virginia corporation, as well as the accounts of Collegium Securities Corp., a Massachusetts corporation, incorporated in December 2015, a wholly-owned subsidiary requiring consolidation. The financial statements of 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 the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to fairly present the financial position as of March 31, 2017, the results of operations for the three months ended March 31, 2017 and 2016, and cash flows for the three months ended March 31, 2017 and 2016. The results of operations for the three month period ended March 31, 2017 are not necessarily indicative of the results to be expected for the full year. When preparing financial statements in conformity with GAAP, the Company must make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to revenue recognition, including the estimates of units prescribed, discounts and allowances related to commercial sales of Xtampza, estimates utilized in the valuation of inventory, estimates of useful lives with respect to intangible assets, accounting for stock-based compensation, contingencies, intangible assets, tax valuation reserves and accrued expenses. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis. The Company’s actual results may differ from these estimates under different assumptions or conditions. The consolidated interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report. Public Offerings of Common Stock In January 2016, the Company issued and sold in a public offering an aggregate of 2,750,000 shares of its common stock at $20.00 per share. The Company received net proceeds from this public offering of approximately $51,174, after deduction of underwriting discounts and commissions and expenses payable by the Company. In October 2016, the Company issued and sold in a public offering an aggregate of 5,750,000 shares of its common stock at $16.00 per share. The Company received net proceeds from this public offering of approximately $86,166, after deduction of underwriting discounts and commissions and expenses payable by the Company. Controlled Equity Offering Sales Agreement In March 2017, the Company entered into a Controlled Equity Offering Sales Agreement (the “ATM Sales Agreement”), with Cantor Fitzgerald & Co., as sales agent (“Cantor Fitzgerald”), pursuant to which the Company may issue and sell, from time to time, through Cantor Fitzgerald, shares of the Company’s common stock, up to an aggregate offering price of $60,000 (the “ATM Shares”). Under the ATM Sales Agreement, Cantor Fitzgerald may sell the ATM Shares by methods deemed to be an “at-the-market” offering as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the “Securities Act”), including sales made directly on The NASDAQ Global Select Market, on any other existing trading market for the ATM Shares or to or through a market maker. In addition, under the ATM Sales Agreement, Cantor Fitzgerald may sell the ATM Shares by any other method permitted by law, including in privately negotiated transactions. The Company is not obligated to make any sales of the ATM Shares under the ATM Sales Agreement. The Company or Cantor Fitzgerald may suspend or terminate the offering of ATM Shares upon notice to the other party and subject to other conditions. The Company will pay Cantor Fitzgerald a commission of up to 3.0% of the gross proceeds from the sale of the ATM Shares pursuant to the ATM Sales Agreement and has agreed to provide Cantor Fitzgerald with customary indemnification and contribution rights. As of March 31, 2017, the Company had not sold any ATM Shares under the ATM Sales Agreement. As of March 31, 2017, the Company has capitalized $112 of deferred offering costs within other long-term assets in connection with the ATM Sales Agreement. Subsequent Events The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. The Company has concluded that no subsequent events have occurred that require disclosure. Significant Accounting Policies The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Advertising and Product Promotion Costs Advertising and product promotion costs are included in selling, general and administrative expenses and were $3,860 and $2,326 in the three months ended March 31, 2017 and 2016 respectively. Advertising and product promotion costs are expensed as incurred. Recent Accounting Pronouncements New accounting pronouncements are issued periodically by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as of the specified effective dates. In May 2014, the FASB, issued Accounting Standards Update, or ASU , 2014-09 (ASC 606), Revenue from Contracts with Customers , which affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers , which defers the effective date of ASU 2014-09 for all entities by one year. ASU 2014-09, which has been codified with the Accounting Standards Codification as Topic 606, is now effective for public companies for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In addition, ASC 606 provides guidance on accounting for certain revenue-related costs including, but not limited to, when to capitalize costs associated with obtaining and fulfilling a contract. ASC 606 provides companies with two implementation methods. Companies can choose to apply the standard retrospectively to each prior reporting period presented (full retrospective application) or retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application (modified retrospective application). Since ASU 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. The Company anticipates that this standard will have a material impact on its consolidated financial statements with respect to inventory and deferred revenues and is continuing to assess all potential impacts of the standard, including evaluating the impact of each potential method of adoption on the Company’s consolidated financial statements and the impact to the pattern with which the Company will recognize revenue. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 most significantly impacts lessee accounting and disclosures. First, this guidance requires lessees to identify arrangements that should be accounted for as leases. Under ASU 2016-02, for lease arrangements exceeding a 12-month term, a right-of-use asset and lease obligation is recorded by the lessee for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities. The Company has not chosen early adoption for this ASU and is currently evaluating its effect on the Company’s consolidated financial statements.

NET LOSS PER COMMON SHARE

NET LOSS PER COMMON SHARE	3 Months Ended
	Mar. 31, 2017
NET LOSS PER COMMON SHARE
NET LOSS PER COMMON SHARE	3. Loss per Common Share The following table presents the computations of basic and dilutive net loss per share: Three months ended March 31, 2017 2016 Loss attributable to common shareholders — basic and diluted $ (23,078) $ (15,653) Weighted-average number of common shares used in net loss per share - basic and diluted 29,350,268 23,130,153 Loss per share - basic and diluted $ (0.79) $ (0.68) The following potentially dilutive securities, which represent all outstanding potentially dilutive securities, were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect (in common stock equivalent shares): Three months ended March 31, 2017 2016 Outstanding stock options 2,835,630 1,950,276 Warrants 2,445 2,445 Unvested restricted stock 69,870 67,606 Restricted stock units 156,361 41,739

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2017
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	4. Fair Value of Financial Instruments Disclosures of fair value information about financial instruments are required, whether or not recognized in the balance sheet, for financial instruments with respect to which it is practicable to estimate that value. Fair value measurements and disclosures describe the fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, as follows: Level 1 inputs: Quoted prices in (unadjusted) active markets for identical assets or liabilities Level 2 inputs: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3 inputs: Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability The following tables present the Company’s financial instruments carried at fair value using the lowest level input applicable to each financial instrument at March 31, 2017 and December 31, 2016. Significant Quoted Prices other Significant in active observable unobservable markets inputs inputs Description Total (Level 1) (Level 2) (Level 3) March 31, 2017 Money market funds, included in cash equivalents $ 100,659 $ 100,659 $ — $ — December 31, 2016 Money market funds, included in cash equivalents $ 125,515 $ 125,515 $ — $ — The Company’s cash equivalents are comprised of money market funds that are measured on a recurring basis based on quoted market prices. As of March 31, 2017 and December 31, 2016 the carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, deferred revenue and loan payable approximated their estimated fair values because of the short-term nature of these financial instruments.

INVENTORY

INVENTORY	3 Months Ended
	Mar. 31, 2017
INVENTORY
INVENTORY	5. Inventory Inventory consisted of the following: As of March 31, As of December 31, 2017 2016 Raw materials $ 388 $ 294 Work in process 83 67 Finished goods 1,024 955 Total inventory $ 1,495 $ 1,316 During the three months ended March 31, 2017, the Company incurred aggregate charges of $93 related to excess inventory. These expenses were recorded as a component of cost of product revenues.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2017
INTANGIBLE ASSETS
INTANGIBLE ASSETS	6. Intangible Asset In May 2016, the Company entered into an agreement with BioDelivery Sciences International, Inc. (“BDSI”) to license the rights to develop, manufacture, and commercialize Onsolis® (fentanyl buccal soluble film), or Onsolis, in the United States. Onsolis is a Transmucosal Immediate-Release Fentanyl (“TIRF”) film indicated for the management of breakthrough pain in certain cancer patients. The Company expects to launch the product after the completion of the transfer of manufacturing and required submission to the FDA of a Prior Approval Supplement. Subject to FDA approval of the Prior Approval Supplement, the Company expects to launch Onsolis during the first half of 2018. In addition, during the term of the License Agreement, milestone payments in the aggregate amount of $21,000 may become payable by the Company subject to the satisfaction of certain commercialization, intellectual property, and net sales milestones, including $4,000 upon the first commercial sale of the product in the U.S. Finally, the Company will be required to pay royalties in the upper teens based on annual net sales of the product in the U.S. As of March 31, 2017, the Company has not satisfied the criteria of any milestones or royalties payable under the License Agreement and has not recognized any liabilities for such milestones or royalties payable in its consolidated financial statements. The Company made an upfront payment of $2,500 and is contractually committed to reimburse BDSI up to a maximum of $2,000 for its out-of-pocket expenses incurred in connection with the manufacturing transfer. The Company recorded the upfront payment as an intangible asset on the Condensed Consolidated Balance Sheet and will amortize it on a straight-line basis over the remaining patent life. As of March 31, 2017, the Company has reimbursed BDSI approximately $1,146 for its out-of-pocket expenses incurred in connection with the manufacturing transfer. As a result of U.S. Patent No. 9,597,288 being issued in March 2017, the patent protection for Onsolis was extended through July 2027, a period of approximately 11.2 years from the date of original acquisition. As such, the Company revised the useful life of its intangible asset during the three months ended March 31, 2017 from 3.7 years to 11.2 years. During the three months ended March 31, 2017, the Company recognized amortization expense of $130. As of March 31, 2017, the remaining amortization period is approximately 10.3 years and estimated remaining amortization for 2017, 2018, 2019, 2020, 2021 and thereafter is expected to be $143, $191, $191 $191, $191 and $1,066, respectively.

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2017
ACCRUED EXPENSES
ACCRUED EXPENSES	7. Accrued Expenses Accrued expenses consisted of the following: As of March 31, As of December 31, 2017 2016 Accrued payroll and related benefits $ 1,433 $ 1,217 Accrued development costs 1,335 2,485 Accrued incentive compensation 1,028 1,160 Accrued sales and marketing 839 801 Accrued bonuses 730 2,210 Accrued other operating costs 619 572 Accrued audit and legal 489 416 Accrued interest 15 18 Total accrued expenses $ 6,488 $ 8,879

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2017
EQUITY
EQUITY	8. Equity The changes in shareholders’ equity for the three months ended March 31, 2017 were as follows: Additional Total Common Stock Paid- In Accumulated Shareholders’ Shares Amount Capital Deficit Equity (Deficit) Balance, December 31, 2016 29,364,100 $ 29 $ 358,063 $ (223,184) $ 134,908 Exercise of common stock options 20,653 — 94 — 94 Issuance for employee stock purchase plan 66,785 — 673 — 673 Vesting of restricted stock units 10,435 — — — — Shares withheld for employee taxes upon vesting of restricted stock units (3,416) — (51) — (51) Stock-based compensation — — 1,821 — 1,821 Net loss — — — (23,078) (23,078) Balance, March 31, 2017 29,458,557 $ 29 $ 360,600 $ (246,262) $ 114,367

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	3 Months Ended
	Mar. 31, 2017
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	9. Stock-based Compensation A summary of the Company’s stock-based compensation expense included in the Condensed Consolidated Statements of Operations are as follows: Three months ended March 31, 2017 2016 Research and development expenses $ 209 $ 138 Selling, general and administrative expenses 1,612 963 Total stock-based compensation expense $ 1,821 $ 1,101 At March 31, 2017, there was approximately $20,930 of unrecognized compensation expense related to unvested options, restricted stock units and restricted stock awards, which is expected to be recognized as expense over a weighted average period of approximately 3.0 years. Restricted Stock Awards, Restricted Stock Units and Stock Options In May 2015, the Company adopted the Amended and Restated 2014 Stock Incentive Plan (the “Plan”), under which an aggregate of 2,700,000 shares of common stock are authorized for issuance to employees, officers, directors, consultants and advisors of the Company, plus an annual increase on the first day of each fiscal year until the expiration of the Plan equal to 4% of the total number of outstanding shares of common stock on December 31st of the immediately preceding calendar year (or a lower amount as otherwise determined by the board of directors prior to January 1st). As of March 31, 2017, there were 1,550,276 shares of common stock available for issuance pursuant to the Plan. The Plan provides for granting of both Internal Revenue Service qualified incentive stock options (“ISOs”) and non-qualified options (“NQs”), restricted stock awards (“RSAs”) and restricted stock units (“RSUs”). Stock options generally vest over a four year period of service; however, certain options are also subject to performance conditions. The options generally have a ten year contractual life and, upon termination, vested options are generally exercisable between one and three months following the termination date, while unvested options are forfeited immediately. A summary of the Company’s restricted stock award activity for the three months ended March 31, 2017 and related information is as follows: Weighted-Average Purchase Price Shares per Share Unvested at December 31, 2016 43,265 $ 5.73 Granted — — Vested (8,112) Unvested at March 31, 2017 (1) 35,153 $ (1) A summary of the Company’s restricted stock units activity for the three months ended March 31, 2017 and related information is as follows: Weighted-Average Shares Grant Date Fair Value Outstanding at December 31, 2016 41,741 $ 16.15 Granted 126,750 15.27 Settled (10,435) 16.15 Forfeited (1,695) 16.15 Outstanding at March 31, 2017 156,361 $ 15.44 A summary of the Company’s stock option activity and related information follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Price Contractual Intrinsic Shares per Share Term (in years) Value Outstanding at December 31, 2016 2,326,801 $ 8.7 $ 7,927 Granted 632,900 Exercised (20,653) Cancelled (103,418) Outstanding at March 31, 2017 2,835,630 $ $ 3,454 Exercisable at March 31, 2017 776,506 $ $ 2,022 Vested and expected to vest at March 31, 2017 2,733,848 $ $ 3,464 The fair value of each stock option is estimated on the grant date using the Black-Scholes option-pricing model using the following assumptions: Three months ended March 31, 2017 2016 Risk-free interest rate % % Volatility % % Expected term (years) Expected dividend yield — % — % Employee Stock Purchase Plan The Company’s 2015 Employee Stock Purchase Plan allows employees as designated by the Company’s Board of Directors to purchase shares of the Company’s common stock. The purchase price is equal to 85% of the lower of the closing price of our common stock on (1) the first day of the purchase period or (2) the last day of the purchase period. During the three months ended March 31, 2017, 66,785 shares of common stock were purchased for total proceeds of $673. The expense for the three months ended March 31, 2017 and 2016 was $106 and $67, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	10. Commitments and Contingencies From time to time, the Company may face legal claims or actions in the normal course of business. Except as disclosed below, the Company is not currently a party to any litigation and, accordingly, does not have any amounts recorded for any litigation related matters. The Company’s NDA filing for Xtampza is a 505(b)(2) application, which allows the Company to reference data from an approved drug listed in the FDA’s Approved Drug Products with Therapeutic Equivalence Evaluations (commonly known as the ‘‘Orange Book’’), in this case OxyContin OP. In connection with the 505(b)(2) process, the Company certified to the FDA and notified Purdue Pharma, L.P. (‘‘Purdue’’), as the holder of the NDA and any other Orange Book-listed patent owners, that the Company does not infringe any of the patents listed for OxyContin OP in the Orange Book. Under the Hatch-Waxman Act of 1984 (the ‘‘Hatch-Waxman Act’’), Purdue had the option to sue the Company for infringement and receive a stay of up to 30 months before the FDA could issue a final regulatory approval for Xtampza, unless the stay was earlier terminated. Purdue exercised its option and elected to sue the Company for infringement in the District of Delaware in March 2015 asserting infringement of three of Purdue’s Orange Book ‑ listed patents and one non-Orange Book-listed patent. In October 2015, the Delaware case was transferred to Massachusetts. After the Company filed a partial motion for judgment on the pleadings relating to the Orange Book-listed patents, the District Court of Massachusetts ordered judgment in favor of the Company on those three patents, and dismissed the claims asserting infringement of those patents with prejudice. Upon dismissal of those claims, the 30-month stay of FDA approval was lifted. As a result, the Company obtained final approval of its Xtampza ER products and has launched the products commercially. In November 2015, Purdue filed a follow-on suit asserting infringement of another patent, Patent No. 9,073,933, which was late-listed in the Orange Book and therefore could not trigger any stay of FDA approval. In June 2016, Purdue filed another follow-on suit asserting infringement of another non-Orange Book listed patent, Patent No. 9,155,717. These suits were consolidated by the District of Massachusetts into the original action where Purdue’s infringement claim relating to the ’497 patent remains pending. Purdue continues to assert infringement of these three patents against the Company, none of which is associated with any stay of FDA approval. Purdue has made a demand for monetary relief but has not quantified their alleged damages. Purdue has also requested a judgment of infringement and an injunction on the sale of the Company’s products accused of infringement. The Company has denied all claims and seeks a judgment that the patents are invalid and/or not infringed by the Company, and seeks a judgment that the case is exceptional, with an award to the Company of its fees for defending the case. In April 2017, Purdue filed another suit asserting infringement of U.S. Patent No. 9,522,919, related to the previously asserted ’933 patent, which recently issued and was late-listed in the Orange-Book and therefore could not trigger any stay of FDA approval. Purdue has similarly made a demand for monetary relief and has requested judgment of infringement and an injunction on the sale of the Company’s accused products. The Company will oppose this action. The parties are in the early stages of fact discovery. Written discovery has commenced with depositions expected to commence in the first half of 2017. The parties are also in the claims construction stage of the patent litigation. The parties have briefed their proposed constructions and will argue their positions in front of the Court in the second quarter of 2017. The Company has also filed a motion for summary judgment that the asserted claims of the ’933, ’497, and ’717 patents are invalid and not infringed. The Company is not able to predict with certainty when the Court will decide the Company’s motion. No trial date has been scheduled. The Company is, and plans to continue, defending this case vigorously. At this stage, we are unable to evaluate the likelihood of an unfavorable outcome or estimate the amount or range of potential loss, if any. At this time the Company is unable to provide meaningful quantification of how this potential litigation may impact its future financial condition, results of operations, or cash flows.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Collegium Pharmaceutical, Inc., a Virginia corporation, as well as the accounts of Collegium Securities Corp., a Massachusetts corporation, incorporated in December 2015, a wholly-owned subsidiary requiring consolidation. The financial statements of 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 the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to fairly present the financial position as of March 31, 2017, the results of operations for the three months ended March 31, 2017 and 2016, and cash flows for the three months ended March 31, 2017 and 2016. The results of operations for the three month period ended March 31, 2017 are not necessarily indicative of the results to be expected for the full year. When preparing financial statements in conformity with GAAP, the Company must make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to revenue recognition, including the estimates of units prescribed, discounts and allowances related to commercial sales of Xtampza, estimates utilized in the valuation of inventory, estimates of useful lives with respect to intangible assets, accounting for stock-based compensation, contingencies, intangible assets, tax valuation reserves and accrued expenses. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis. The Company’s actual results may differ from these estimates under different assumptions or conditions. The consolidated interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report.
Subsequent Events	Subsequent Events The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. The Company has concluded that no subsequent events have occurred that require disclosure.
Advertising and Product Promotion Costs	Advertising and Product Promotion Costs Advertising and product promotion costs are included in selling, general and administrative expenses and were $3,860 and $2,326 in the three months ended March 31, 2017 and 2016 respectively. Advertising and product promotion costs are expensed as incurred.
Recent Accounting Pronouncements	Recent Accounting Pronouncements New accounting pronouncements are issued periodically by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as of the specified effective dates. In May 2014, the FASB, issued Accounting Standards Update, or ASU , 2014-09 (ASC 606), Revenue from Contracts with Customers , which affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers , which defers the effective date of ASU 2014-09 for all entities by one year. ASU 2014-09, which has been codified with the Accounting Standards Codification as Topic 606, is now effective for public companies for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In addition, ASC 606 provides guidance on accounting for certain revenue-related costs including, but not limited to, when to capitalize costs associated with obtaining and fulfilling a contract. ASC 606 provides companies with two implementation methods. Companies can choose to apply the standard retrospectively to each prior reporting period presented (full retrospective application) or retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application (modified retrospective application). Since ASU 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. The Company anticipates that this standard will have a material impact on its consolidated financial statements with respect to inventory and deferred revenues and is continuing to assess all potential impacts of the standard, including evaluating the impact of each potential method of adoption on the Company’s consolidated financial statements and the impact to the pattern with which the Company will recognize revenue. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 most significantly impacts lessee accounting and disclosures. First, this guidance requires lessees to identify arrangements that should be accounted for as leases. Under ASU 2016-02, for lease arrangements exceeding a 12-month term, a right-of-use asset and lease obligation is recorded by the lessee for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities. The Company has not chosen early adoption for this ASU and is currently evaluating its effect on the Company’s consolidated financial statements.

NET LOSS PER COMMON SHARE (Tabl

NET LOSS PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
NET LOSS PER COMMON SHARE
Schedule of computations of basic and diluted net loss per share	Three months ended March 31, 2017 2016 Loss attributable to common shareholders — basic and diluted $ (23,078) $ (15,653) Weighted-average number of common shares used in net loss per share - basic and diluted 29,350,268 23,130,153 Loss per share - basic and diluted $ (0.79) $ (0.68)
Schedule of potentially dilutive securities excluded from computations of diluted weighted-average shares outstanding	Three months ended March 31, 2017 2016 Outstanding stock options 2,835,630 1,950,276 Warrants 2,445 2,445 Unvested restricted stock 69,870 67,606 Restricted stock units 156,361 41,739

FAIR VALUE OF FINANCIAL INSTR19

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of financial instruments measured at fair value by level within fair value hierarchy	Significant Quoted Prices other Significant in active observable unobservable markets inputs inputs Description Total (Level 1) (Level 2) (Level 3) March 31, 2017 Money market funds, included in cash equivalents $ 100,659 $ 100,659 $ — $ — December 31, 2016 Money market funds, included in cash equivalents $ 125,515 $ 125,515 $ — $ —

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Mar. 31, 2017
INVENTORY
Schedule of Inventory	As of March 31, As of December 31, 2017 2016 Raw materials $ 388 $ 294 Work in process 83 67 Finished goods 1,024 955 Total inventory $ 1,495 $ 1,316

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2017
ACCRUED EXPENSES
Schedule of components of accrued expenses	As of March 31, As of December 31, 2017 2016 Accrued payroll and related benefits $ 1,433 $ 1,217 Accrued development costs 1,335 2,485 Accrued incentive compensation 1,028 1,160 Accrued sales and marketing 839 801 Accrued bonuses 730 2,210 Accrued other operating costs 619 572 Accrued audit and legal 489 416 Accrued interest 15 18 Total accrued expenses $ 6,488 $ 8,879

EQUITY (Tables)

EQUITY (Tables)	3 Months Ended
	Mar. 31, 2017
EQUITY
Summary of Changes in Shareholders' Equity	Additional Total Common Stock Paid- In Accumulated Shareholders’ Shares Amount Capital Deficit Equity (Deficit) Balance, December 31, 2016 29,364,100 $ 29 $ 358,063 $ (223,184) $ 134,908 Exercise of common stock options 20,653 — 94 — 94 Issuance for employee stock purchase plan 66,785 — 673 — 673 Vesting of restricted stock units 10,435 — — — — Shares withheld for employee taxes upon vesting of restricted stock units (3,416) — (51) — (51) Stock-based compensation — — 1,821 — 1,821 Net loss — — — (23,078) (23,078) Balance, March 31, 2017 29,458,557 $ 29 $ 360,600 $ (246,262) $ 114,367

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
STOCK BASED COMPENSATION
Summary of stock-based compensation included in statement of operations	Three months ended March 31, 2017 2016 Research and development expenses $ 209 $ 138 Selling, general and administrative expenses 1,612 963 Total stock-based compensation expense $ 1,821 $ 1,101
Summary of restricted stock awards activity	Weighted-Average Purchase Price Shares per Share Unvested at December 31, 2016 43,265 $ 5.73 Granted — — Vested (8,112) Unvested at March 31, 2017 (1) 35,153 $ (1)
Summary of restricted stock units activity	Weighted-Average Shares Grant Date Fair Value Outstanding at December 31, 2016 41,741 $ 16.15 Granted 126,750 15.27 Settled (10,435) 16.15 Forfeited (1,695) 16.15 Outstanding at March 31, 2017 156,361 $ 15.44
Summary of stock option activity	Weighted- Weighted- Average Average Remaining Aggregate Exercise Price Contractual Intrinsic Shares per Share Term (in years) Value Outstanding at December 31, 2016 2,326,801 $ 8.7 $ 7,927 Granted 632,900 Exercised (20,653) Cancelled (103,418) Outstanding at March 31, 2017 2,835,630 $ $ 3,454 Exercisable at March 31, 2017 776,506 $ $ 2,022 Vested and expected to vest at March 31, 2017 2,733,848 $ $ 3,464
Schedule of weighted-average assumptions used in Black-Scholes option-pricing model	Three months ended March 31, 2017 2016 Risk-free interest rate % % Volatility % % Expected term (years) Expected dividend yield — % — %

NATURE OF BUSINESS (Details)

NATURE OF BUSINESS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
NATURE OF BUSINESS
Accumulated deficit	$ 246,262	$ 223,184

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended
	Mar. 31, 2017	Oct. 31, 2016	Jan. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Stock Issued During Period, Shares, New Issues		5,750,000	2,750,000
Shares Issued, Price Per Share		$ 16	$ 20
Sale of Stock, Consideration Received on Transaction		$ 86,166	$ 51,174
Sale of Stock, Consideration Received if Additional Shares are Issued	$ 60,000
Commission fee percentage on gross proceeds from sale of ATM shares	3.00%
Deferred Offering Costs	$ 112			$ 112
Marketing and Advertising Expense				$ 3,860	$ 2,326

NET LOSS PER COMMON SHARE - Com

NET LOSS PER COMMON SHARE - Computation of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
NET LOSS PER COMMON SHARE
Net loss	$ (23,078)	$ (15,653)
Loss attributable to common shareholders — basic and diluted	$ (23,078)	$ (15,653)
Weighted-average number of common shares used in net loss per share-basic and diluted (in shares)	29,350,268	23,130,153
(Loss) earnings per share - basic	$ (0.79)	$ (0.68)

NET LOSS PER COMMON SHARE - Sum

NET LOSS PER COMMON SHARE - Summary of Potentially Dilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock options
Anti-dilutive securities
Potentially dilutive securities excluded from the computations of diluted weighted-average shares outstanding	2,835,630	1,950,276
Warrants
Anti-dilutive securities
Potentially dilutive securities excluded from the computations of diluted weighted-average shares outstanding	2,445	2,445
Unvested restricted stock
Anti-dilutive securities
Potentially dilutive securities excluded from the computations of diluted weighted-average shares outstanding	69,870	67,606
Restricted Stock Awards
Anti-dilutive securities
Potentially dilutive securities excluded from the computations of diluted weighted-average shares outstanding	156,361	41,739

FAIR VALUE OF FINANCIAL INSTR28

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Estimate of fair value - Recurring - Money market funds - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Cash equivalents	$ 100,659	$ 125,515
Quoted Prices in active markets (Level 1)
Cash equivalents	$ 100,659	$ 125,515

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
INVENTORY
Raw materials	$ 388	$ 294
Work in process	83	67
Finished goods	1,024	955
Total inventory	1,495	$ 1,316
Excess inventory charges	$ 93

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	12 Months Ended
	Mar. 31, 2017	May 31, 2016	Mar. 31, 2017	Dec. 31, 2016
INTANGIBLE ASSETS
Milestone payments payable contingent on the satisfaction of certain commercialization, intellectual property, and net sales milestones		$ 21,000
Milestone payment contingent on the first commercial sale of the product in the U.S.		4,000
Upfront payment classified as an intangible asset		2,500
Maximum reimbursement amount for out-of-pocket expenses		$ 2,000,000
Out-Of-Pocket Expenses Reimbursed			$ 1,146
Remaining amortization period	11 years 2 months 12 days		10 years 3 months 18 days	3 years 8 months 12 days
Amortization expense			$ 130
Estimated amortization for 2017	$ 143		143
Estimated amortization for 2018	191		191
Estimated amortization for 2019	191		191
Estimated amortization for 2020	191		191
Estimated amortization for 2021	191		191
Estimated amortization thereafter	$ 1,066		$ 1,066

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ACCRUED EXPENSES
Accrued payroll and related benefits	$ 1,433	$ 1,217
Accrued development costs	1,335	2,485
Accrued incentive compensation	1,028	1,160
Accrued sales and marketing	839	801
Accrued bonuses	730	2,210
Accrued other operating costs	619	572
Accrued audit and legal	489	416
Accrued interest	15	18
Total accrued expenses	$ 6,488	$ 8,879

EQUITY - Changes in Shareholder

EQUITY - Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Balance at beginning of period	$ 134,908
Exercise of common stock options	$ 94
Exercise of common stock options, shares	20,653
Issuance for employee stock purchase plan	$ 673
Issuance for employee stock purchase plan, shares	66,785
Shares withheld for employee taxes upon vesting of restricted stock units	$ (51)
Stock-based compensation expense	1,821
Net loss	(23,078)	$ (15,653)
Balance at end of period	114,367
Common Stock
Balance at beginning of period	$ 29
Balance at beginning of year, shares	29,364,100
Exercise of common stock options, shares	20,653
Issuance for employee stock purchase plan, shares	66,785
Shares withheld for employee taxes upon vesting of restricted stock units, shares	(3,416)
Vesting of restricted stock units, shares	10,435
Balance at end of period	$ 29
Balance at end of year, shares	29,458,557
Additional Paid-In Capital
Balance at beginning of period	$ 358,063
Exercise of common stock options	94
Issuance for employee stock purchase plan	673
Shares withheld for employee taxes upon vesting of restricted stock units	(51)
Stock-based compensation expense	1,821
Balance at end of period	360,600
Accumulated Deficit
Balance at beginning of period	(223,184)
Net loss	(23,078)
Balance at end of period	$ (246,262)

STOCK BASED COMPENSATION - Narr

STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	May 31, 2015
Stock-based compensation
Shares of common stock authorized for issuance outstanding (in shares)	2,835,630		2,326,801
Employee Stock Purchase Plan, Purchase Price Percentage	85.00%
Issuance for employee stock purchase plan, shares	66,785
Proceeds from issuances of common stock from employee stock purchase plans	$ 673
Employee Stock Purchase Plan, Compensation Expense	106	$ 67
Stock options
Stock-based compensation
Unrecognized compensation cost related to outstanding options	$ 20,930
Period over which unrecognized compensation cost is expected to be recognized as expense	3 years
2014 Stock Incentive Plan
Stock-based compensation
Shares of common stock authorized for issuance (in shares)	1,550,276			2,700,000
Increase in number of authorized shares on the first day of each fiscal year, as a percentage of outstanding common stock (as a percent)	4.00%
Vesting period	4 years
Contractual life	10 years
2014 Stock Incentive Plan | Minimum
Stock-based compensation
Period following termination date vested options are exercisable	1 month
2014 Stock Incentive Plan | Maximum
Stock-based compensation
Period following termination date vested options are exercisable	3 months

STOCK BASED COMPENSATION - Summ

STOCK BASED COMPENSATION - Summary of Stock-Based Compensation Included in Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock-based compensation
Total stock-based compensation expense	$ 1,821	$ 1,101
Research and development expenses
Stock-based compensation
Total stock-based compensation expense	209	138
Selling, general and administrative expenses
Stock-based compensation
Total stock-based compensation expense	$ 1,612	$ 963

STOCK BASED COMPENSATION - Su35

STOCK BASED COMPENSATION - Summary of Restricted Stock Award Activity (Details) - Restricted Stock Awards	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Restricted stock awards
Balance	43,265
Vested/Settled	(8,112)
Balance	35,153
Unvested remaining from the early exercise of stock options (in shares)	34,717
Weighted-average purchase price per share
Balance | $ / shares	$ 5.73
Vested/Settled | $ / shares	5.73
Balance | $ / shares	$ 5.73

STOCK BASED COMPENSATION - Su36

STOCK BASED COMPENSATION - Summary of Restricted Stock Units (RSUs) Activity (Details) - Restricted Stock Units (RSUs)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Restricted stock awards
Balance | shares	41,741
Granted | shares	126,750
Vested/Settled | shares	(10,435)
Forfeited | shares	(1,695)
Balance | shares	156,361
Weighted-average purchase price per share
Balance | $ / shares	$ 16.15
Granted | $ / shares	15.27
Vested/Settled | $ / shares	16.15
Forfeited | $ / shares	16.15
Balance | $ / shares	$ 15.44

STOCK BASED COMPENSATION - Su37

STOCK BASED COMPENSATION - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Stock option activity
Outstanding	2,326,801
Granted	632,900
Exercised	(20,653)
Cancelled	(103,418)
Outstanding	2,835,630	2,326,801
Exercisable at end of period	776,506
Vested and expected to vest at end of period	2,733,848
Weighted average exercise price per share
Outstanding	$ 13.07
Granted	15.20
Exercised	4.57
Cancelled	13.15
Outstanding	13.60	$ 13.07
Exercisable at end of period	10.99
Vested and expected to vest at end of period	$ 13.61
Stock option activity, additional information
Outstanding Weighted-Average Remaining Contractual Term	8 years 8 months 12 days	8 years 8 months 12 days
Outstanding Aggregate Intrinsic Value	$ 3,454	$ 7,927
Exercisable at end of period, Weighted-Average Remaining Contractual Term	8 years
Exercisable at end of period, Aggregate Intrinsic Value	$ 2,022
Vested and expected to vest at end of period, Weighted-Average Remaining Contractual Term	8 years 8 months 12 days
Vested and expected to vest at end of period, Aggregate Intrinsic Value	$ 3,464

STOCK BASED COMPENSATION - Su38

STOCK BASED COMPENSATION - Summary of Valuation Assumptions Used (Details)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the employee stock option grants
Risk-free interest rate	2.10%	1.60%
Volatility	72.30%	77.00%
Expected term (in years)	6 years 22 days	6 years 22 days
Dividend yield

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - Purdue Pharma, L. P. patent infringement suits	3 Months Ended
	Mar. 31, 2017patent
Contingencies
Total number of Orange Book patents asserted to have been infringed	3
Total number of non-Orange Book patents asserted to have been infringed	1
Maximum
Contingencies
Stay period before FDA can issue a final approval unless it is terminated	30 months