Ocera Therapeutics 10-Q 7 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Ocera Therapeutics, Inc.
Entity Central Index Key	1274644
Current Fiscal Year End Date	-19
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding		19,747,362

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$10,294	$10,127
Short-term investments, available-for-sale	33,659	37,112
Accounts receivable	31	62
Prepaid expenses and other current assets	543	970
Total current assets	44,527	48,271
Property and equipment, net	53	61
Long-term investments	2,169	3,928
Deposits	0	26
Intangible assets, net	130	171
Goodwill	595	595
Total assets	47,474	53,052
Current liabilities:
Accounts payable	1,029	941
Accrued liabilities	1,958	1,966
Total liabilities	2,987	2,907
Commitments and contingencies
Stockholders' equity:
Preferred stock - $0.00001 par value, 5,000,000 shares authorized and no shares issued or outstanding at March 31, 2015 and December 31, 2014.	0	0
Common stock - $0.00001 par value, 100,000,000 shares authorized, 19,747,362 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively.	0	0
Additional paid-in capital	156,048	155,083
Accumulated other comprehensive income (loss)	1	-27
Accumulated deficit	-111,562	-104,911
Total stockholders' equity	44,487	50,145
Total liabilities and stockholders' equity	$47,474	$53,052

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	19,747,362	19,747,362
Common stock, shares outstanding	19,747,362	19,747,362

Consolidated_Statements_of_Ope

Consolidated Statements of Operations and Comprehensive Loss (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Revenue:
Royalty revenue	$31	$45
Total Revenue	31	45
Operating expenses:
Research and development	4,398	2,466
General and administrative	2,256	2,733
Amortization of intangibles	41	41
Total operating expenses	6,695	5,240
Other income (expense)	13	13
Net loss from continuing operations	-6,651	-5,182
Net income from discontinued operations (including gain on disposal of $1,149)	0	1,117
Net loss	-6,651	-4,065
Net loss per share:
Net loss per share from continuing operations, basic and diluted	($0.34)	($0.34)
Net income per share from discontinued operations, basic and diluted	$0	$0.07
Net loss per share, basic and diluted	($0.34)	($0.27)
Weighted average number of shares used to compute net loss per share of common stock, basic and diluted	19,747,362	15,421,234
Unrealized gain on investments	28	2
Comprehensive loss	($6,623)	($4,063)

Consolidated_Statements_of_Ope1

Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net gain on disposal of assets	$0
Tranzyme Pharma Inc. [Member]
Net gain on disposal of assets	$1,149,000	$1,149,000

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Operating activities
Net loss	($6,651)	($4,065)
Adjustments to reconcile net loss to net cash used in operating activities:
Net income from discontinued operations	0	-1,117
Depreciation	8	10
Amortization of intangibles	41	41
Stock based compensation	965	1,375
Accretion of premium on investment securities	154	95
Changes in operating assets and liabilities:
Accounts receivable	31	47
Prepaid expenses and other assets	453	-57
Accounts payable	88	-406
Accrued liabilities	-8	-896
Net cash used in continuing operating activities	-4,919	-4,973
Net cash used in discontinued operating activities	0	-412
Net cash used in operating activities	-4,919	-5,385
Investing activities
Purchases of property and equipment	0	-2
Purchase of short-term and long-term investments	-13,414	-5,371
Sale and maturities of short-term investments	18,500	4,250
Net cash provided by (used in) continuing investing activities	5,086	-1,123
Net cash provided by discontinued investing activities	0	1,000
Net cash provided by (used in) investing activities	5,086	-123
Financing activities
Proceeds from exercise of common stock options	0	396
Net cash provided by continuing financing activities	0	396
Net increase (decrease) in cash and cash equivalents	167	-5,112
Cash and cash equivalentsbbeginning of period	10,127	15,533
Cash and cash equivalentsbend of period	$10,294	$10,421

The_Company

The Company	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	The Company
	Ocera Therapeutics, Inc. (the "Company") is a clinical-stage biopharmaceutical company focused on the development and commercialization of OCR-002 (ornithine phenylacetate). OCR-002 is an ammonia scavenger which has been granted orphan drug designation and Fast Track status from the U.S. Food and Drug Administration to treat hyperammonemia and associated hepatic encephalopathy in patients with liver cirrhosis, acute liver failure and acute liver injury.
	On July 15, 2013, Terrapin Acquisition, Inc., a Delaware corporation (“Merger Sub”), a wholly owned subsidiary of Tranzyme, Inc., a Delaware corporation (“Tranzyme”), completed its merger (the “Merger”) with and into Ocera Therapeutics, Inc., a private Delaware corporation (“Private Ocera”).  Private Ocera is considered the acquiring company in the Merger for accounting purposes.  In connection with the Merger, the combined company changed its name to Ocera Therapeutics, Inc. and the name of Private Ocera was changed to Ocera Subsidiary, Inc.
	The Company's business is subject to significant risks consistent with biopharmaceutical companies seeking to develop technologies and product candidates for human therapeutic use. These risks include, but are not limited to, uncertainties regarding research and development, access to capital, obtaining and enforcing patents, receiving regulatory approval and competition with other biotechnology and pharmaceutical companies.
	The Company has a limited operating history and the sales and income potential of the Company's business and market are unproven. As of March 31, 2015, the Company has incurred losses since inception of $111.6 million. The Company anticipates that it will continue to incur net losses into the foreseeable future as it continues the development and commercialization of OCR-002 and as it expands its corporate infrastructure. Based on the Company's current operating plan, the Company believes its working capital is sufficient to fund its operations through at least the next twelve months.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies
	Basis of Presentation
	The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with United States of America generally accepted accounting principles ("U.S. GAAP") for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements and related notes do not include all information and footnotes required by U.S. GAAP for annual reports. This quarterly report should be read in conjunction with the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2014.
	Unaudited Interim Financial Information
	The accompanying interim consolidated financial statements and related disclosures are unaudited, have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The year-end balance sheet was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The consolidated results of operations for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future year or interim period.
	Use of Estimates
	The preparation of financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements
	The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2015, and December 31, 2014, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. As a basis for categorizing inputs, the Company uses a three-tier fair value hierarchy, which prioritizes the inputs used to measure fair value from market-based assumptions to entity specific assumptions:
	Level 1: Quoted prices in active markets for identical assets or liabilities;
	Level 2: Inputs, other than level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
	Level 3: Unobservable inputs that are supported by little or no market activity, which require the reporting entity to develop its own assumptions.
	Assets measured at fair value on a recurring basis as of March 31, 2015 are as follows (in thousands):
		Balance as of		Quoted Prices		Significant		Significant
		March 31,		in Active		Other		Unobservable
		2015		Markets for		Observable		Inputs
				Identical Assets		Inputs		(Level 3)
				(Level 1)		(Level 2)
	Assets:
	Money market funds	$	9,364	$	9,364	$	—	$	—
	Commercial paper	5,249		—		5,249		—
	Corporate debt securities	30,079		—		30,079		—
	Government agency debt securities	500		—		500		—
	Total assets	$	45,192	$	9,364	$	35,828	$	—
	Assets measured at fair value on a recurring basis as of December 31, 2014 are as follows (in thousands):
		Balance as of		Quoted Prices		Significant		Significant
		December 31,		in Active		Other		Unobservable
		2014		Markets for		Observable		Inputs
				Identical Assets		Inputs		(Level 3)
				(Level 1)		(Level 2)
	Assets:
	Money market funds	$	9,171	$	9,171	$	—	$	—
	Commercial paper	3,750		—		3,750		—
	Corporate debt securities	36,790		—		36,790		—
	Government agency debt securities	$	500	$	—	$	500	$	—
	Total assets	$	50,211	$	9,171	$	41,040	$	—

Balance_Sheet_Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2015
Balance Sheet Components [Abstract]
Balance Sheet Components	Balance Sheet Components
	Investments
	The following table summarizes the Company's available for sale investments as of March 31, 2015 (in thousands):
			Maturity (in Years)		Amortized Cost				Unrealized Gains		Unrealized Losses			Estimated Fair Value
	Short-term investments:
	Commercial paper		1 or less		$	5,244			$	5	$	—		$	5,249
	Corporate debt securities		1 or less		28,414				—		(4		)	28,410
	Total				33,658				5		(4		)	33,659
	Long-term investments:
	Corporate debt securities		1 to 2		1,669				—		—			1,669
	Government agency debt securities		1 to 2		500				—		—			500
	Total				2,169				—		—			2,169
	Total investments				$	35,827			$	5	$	(4	)	$	35,828
	The following table summarizes the Company's available for sale investments as of December 31, 2014 (in thousands):
			Maturity (in Years)		Amortized Cost				Unrealized Gains		Unrealized Losses			Estimated Fair Value
	Short-term investments:
	Commercial paper		1 or less		$	3,748			$	2	$	—		$	3,750
	Corporate debt securities		1 or less		33,379				—		(17		)	33,362
	Total				37,127				2		(17		)	37,112
	Long-term investments:
	Corporate debt securities		1 to 2		3,439				—		(11		)	3,428
	Government agency debt securities		1 to 2		501				—		(1		)	500
	Total				3,940				—		(12		)	3,928
	Total investments				$	41,067			$	2	$	(29	)	$	41,040
	At each reporting date, the Company performs an evaluation of impairment to determine if the unrealized losses are other-than-temporary. For debt securities, management determines whether it intends to sell the impaired securities, and if there is no intent or expected requirement to sell, management considers whether it is likely that the amortized cost will be recovered. The Company does not consider unrealized losses on its debt investment securities to be credit-related. These unrealized losses relate to changes in interest rates and market spreads subsequent to purchase. The Company has not made a decision to sell securities with unrealized losses and believes it is more likely than not it would not be required to sell such securities before recovery of its amortized cost. There have been no other than temporary losses recognized in earnings.
	Property and Equipment, net
	Property and equipment, net consisted of the following (in thousands):
		Useful Life		March 31,				December 31,
		(in years)		2015				2014
	Computer equipment and software	1.5 to 3 years		$	53			$	53
	Office furniture and equipment	5 years		68				68
	Total property and equipment, gross			121				121
	Less: accumulated depreciation			(68		)		(60		)
	Property and equipment, net			$	53			$	61
	Depreciation expense was $8,000 and $10,000 for the three months ended March 31, 2015 and 2014 respectively.
	Acquired Intangible Assets
	The net book value of acquired intangible assets were as follows (in thousands):
		March 31,				December 31,
	Customer Agreements:	2015				2014
	Carrying value	$	410			$	410
	Accumulated amortization	(280		)		(239		)
	Intangible assets, net	$	130			$	171
	Weighted average remaining life (in years)	0.75				1
	The Company recognized $41,000 as amortization expense on the intangible assets for the three months ended March 31, 2015 and 2014. No impairment charges were recorded.
	As of March 31, 2015, expected amortization expense related to our purchased intangible assets is approximately $130,000 during 2015.
	Accrued Liabilities
	Accrued liabilities were as follows (in thousands):
		March 31,				December 31,
		2015				2014
	Clinical trials	$	1,342			$	897
	Payroll and related expenses	400				678
	Professional services	140				343
	Other	76				48
	Total	$	1,958			$	1,966

Stock_Based_Compensation

Stock Based Compensation	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options	Stock Based Compensation
	The Company’s stock option activity and related information for the three months ended March 31, 2015 was as follows (in thousands, except share and per share data):
									Weighted-avg.
		Shares					Weighted-avg.		Remaining	Aggregate
		Available		Stock Options			Exercise Price		Contractual	Intrinsic
		for Grant		Outstanding			Per Share		Life (in Years)	Value
	Balance at December 31, 2014	342,210		2,086,602			$	8.01	8.63	$	871
	Stock options granted	(12,000	)	12,000			$	4.5
	Stock options cancelled	57,417		(57,417	)		$	7.49
	Stock options exercised	—		—			$	—
	Balance at March 31, 2015	387,627		2,041,185			$	8	8.32	$	522
	At March 31, 2015:
	Vested and expected to vest			1,978,575			$	8.02	8.29	$	522
	Exercisable			658,253			$	8.95	6.65	$	519
	The aggregate intrinsic value of options exercised under all option plans was $0 and $2.6 million for the three months ended March 31, 2015 and 2014, respectively, determined as of the date of option exercise.
	The Company recognized stock based compensation expense as follows (in thousands):
		Three Months Ended March 31,
		2015			2014
	Research and development	$	209		$	465
	General and administrative	756			910
	Total	$	965		$	1,375
	As of March 31, 2015, there were unrecognized compensation costs of $9.8 million related to stock options and the Company expects to recognize those costs over a weighted average period of 2.74 years.
	Stock-based compensation cost for stock options is estimated at the grant date based on the fair-value using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee stock options was estimated using the following weighted-average assumptions:
			Three Months Ended March 31,
			2015	2014
	Expected dividend yield		—	—
	Risk-free interest rates		1.52%	2.01%
	Expected life in years		6.08	6.08
	Expected volatility		91%	102%

Discontinued_Operations

Discontinued Operations	3 Months Ended
	Mar. 31, 2015
Restructuring and Related Activities [Abstract]
Discontinued Operations	Discontinued Operations
	On September 11, 2013, the Company announced a restructuring plan related to the operations of Tranzyme Pharma. On December 13, 2013, the Company entered into a Technology Transfer and License Agreement with Genentech, Inc. ("Genentech"), and F. Hoffman-La Roche, Ltd. ("Roche") to sell certain Canadian fixed assets and materials, the MATCH technology and rights to the Genentech and Roche customer agreements and related intellectual property through licensing of patents for $4.0 million. The Company concluded that the operations of Tranzyme Pharma and related asset groups sold to Genentech and Roche would be accounted for as discontinued operations as the operations and cash flows of the discontinued component or asset group would be eliminated from ongoing operations of the Company and there would not be significant involvement in the component or asset group after the disposal transaction.
	During the three months ended March 31, 2014, the Company completed its obligations under the Technology Transfer and License Agreement with Genentech and Roche and recognized a gain on disposal of assets of $1.1 million within discontinued operations. There were no income or losses recorded in discontinued operations for the period ended March 31, 2015.
	The results of Tranzyme Pharma and related asset groups are disclosed as discontinued operations in the Consolidated Statements of Operations and Comprehensive Loss for the period ended March 31, 2014 (in thousands):
		Three Months Ended
		March 31, 2014
	Proceeds recognized pursuant to Technology Transfer and License Agreement	$	4,000
	Less carrying value of assets sold:
	Intangibles assets	(2,053		)
	Property and equipment	(356		)
	Goodwill	(442		)
	Net gain on disposal of assets	1,149
	Other expenses of discontinued operations	(3		)
	Recognition of accumulated translation adjustments upon deconsolidation of subsidiary	(29		)
	Net income from discontinued operations	$	1,117

Net_Loss_Per_Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share
	Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. Potentially dilutive securities which include warrants and outstanding stock options under the stock option plan have been excluded from the computation of diluted net loss per share as they would be anti-dilutive. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company’s net loss position. All share and per share amounts for all periods presented in the following table have been adjusted retroactively to reflect the exchange for Tranzyme shares as of the date of the Merger.
	The following table presents the computation of net loss per share (in thousands, except share and per share data):
		Three Months Ended
		March 31,
		2015			2014
	Numerator
	Net loss from continuing operations	$	(6,651	)	$	(5,182	)
	Net income from discontinued operations	—			1,117
	Net loss	$	(6,651	)	$	(4,065	)
	Denominator
	Weighted average common shares outstanding used to compute net loss per share, basic and diluted	19,747,362			15,421,234
	Net loss per share of common stock, basic and diluted
	Net loss per share from continuing operations	$	(0.34	)	$	(0.34	)
	Net income per share from discontinued operations	—			0.07
	Net loss per share	$	(0.34	)	$	(0.27	)
	The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have been anti-dilutive:
		Three Months Ended
		March 31,
		2015		2014
	Common stock warrants	932,535		938,882
	Common stock options	2,039,050		1,758,820
	Total	2,971,585		2,697,702

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies
	From time to time, the Company may be involved in disputes, including litigation, relating to claims arising out of operations in the normal course of business. Any of these claims could subject the Company to costly legal expenses and, while the Company generally believes that it has adequate insurance to cover many different types of liabilities, its insurance carriers may deny coverage or its policy limits may be inadequate to fully satisfy any damage awards or settlements. If this were to happen, the payment of any such awards could have a material adverse effect on the Company's consolidated results of operations and financial position. Additionally, any such claims, whether or not successful, could damage the Company's reputation and business. The Company is currently not a party to any legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on the Company's consolidated results of operations or financial position.
	Rent expense was $57,000 and $52,000 for the three months ended March 31, 2015 and 2014, respectively.
	The following is a schedule of non-cancellable future minimum lease payments for operating leases as of March 31, 2015 (in thousands):
	Years ending December 31:
	2015 (Remaining Nine Months)	$	140
	2016	18
	Total	$	158

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Basis of Accounting	Basis of Presentation
	The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with United States of America generally accepted accounting principles ("U.S. GAAP") for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements and related notes do not include all information and footnotes required by U.S. GAAP for annual reports. This quarterly report should be read in conjunction with the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2014.
Unaudited Interim Financial Information	Unaudited Interim Financial Information
	The accompanying interim consolidated financial statements and related disclosures are unaudited, have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The year-end balance sheet was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The consolidated results of operations for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future year or interim period.
Use of Estimates	Use of Estimates
	The preparation of financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Earnings Per Share	Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. Potentially dilutive securities which include warrants and outstanding stock options under the stock option plan have been excluded from the computation of diluted net loss per share as they would be anti-dilutive. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company’s net loss position. All share and per share amounts for all periods presented in the following table have been adjusted retroactively to reflect the exchange for Tranzyme shares as of the date of the Merger.

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Assets and liabilities measured at fair value on a recurring basis	Assets measured at fair value on a recurring basis as of March 31, 2015 are as follows (in thousands):
		Balance as of		Quoted Prices		Significant		Significant
		March 31,		in Active		Other		Unobservable
		2015		Markets for		Observable		Inputs
				Identical Assets		Inputs		(Level 3)
				(Level 1)		(Level 2)
	Assets:
	Money market funds	$	9,364	$	9,364	$	—	$	—
	Commercial paper	5,249		—		5,249		—
	Corporate debt securities	30,079		—		30,079		—
	Government agency debt securities	500		—		500		—
	Total assets	$	45,192	$	9,364	$	35,828	$	—
	Assets measured at fair value on a recurring basis as of December 31, 2014 are as follows (in thousands):
		Balance as of		Quoted Prices		Significant		Significant
		December 31,		in Active		Other		Unobservable
		2014		Markets for		Observable		Inputs
				Identical Assets		Inputs		(Level 3)
				(Level 1)		(Level 2)
	Assets:
	Money market funds	$	9,171	$	9,171	$	—	$	—
	Commercial paper	3,750		—		3,750		—
	Corporate debt securities	36,790		—		36,790		—
	Government agency debt securities	$	500	$	—	$	500	$	—
	Total assets	$	50,211	$	9,171	$	41,040	$	—

Balance_Sheet_Components_Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2015
Balance Sheet Components [Abstract]
Summary of available for sale investments	The following table summarizes the Company's available for sale investments as of March 31, 2015 (in thousands):
			Maturity (in Years)		Amortized Cost				Unrealized Gains		Unrealized Losses			Estimated Fair Value
	Short-term investments:
	Commercial paper		1 or less		$	5,244			$	5	$	—		$	5,249
	Corporate debt securities		1 or less		28,414				—		(4		)	28,410
	Total				33,658				5		(4		)	33,659
	Long-term investments:
	Corporate debt securities		1 to 2		1,669				—		—			1,669
	Government agency debt securities		1 to 2		500				—		—			500
	Total				2,169				—		—			2,169
	Total investments				$	35,827			$	5	$	(4	)	$	35,828
	The following table summarizes the Company's available for sale investments as of December 31, 2014 (in thousands):
			Maturity (in Years)		Amortized Cost				Unrealized Gains		Unrealized Losses			Estimated Fair Value
	Short-term investments:
	Commercial paper		1 or less		$	3,748			$	2	$	—		$	3,750
	Corporate debt securities		1 or less		33,379				—		(17		)	33,362
	Total				37,127				2		(17		)	37,112
	Long-term investments:
	Corporate debt securities		1 to 2		3,439				—		(11		)	3,428
	Government agency debt securities		1 to 2		501				—		(1		)	500
	Total				3,940				—		(12		)	3,928
	Total investments				$	41,067			$	2	$	(29	)	$	41,040
Property and equipment components	Property and equipment, net consisted of the following (in thousands):
		Useful Life		March 31,				December 31,
		(in years)		2015				2014
	Computer equipment and software	1.5 to 3 years		$	53			$	53
	Office furniture and equipment	5 years		68				68
	Total property and equipment, gross			121				121
	Less: accumulated depreciation			(68		)		(60		)
	Property and equipment, net			$	53			$	61
Net book value of acquired intangible assets	The net book value of acquired intangible assets were as follows (in thousands):
		March 31,				December 31,
	Customer Agreements:	2015				2014
	Carrying value	$	410			$	410
	Accumulated amortization	(280		)		(239		)
	Intangible assets, net	$	130			$	171
	Weighted average remaining life (in years)	0.75				1
Schedule of accrued liabilities	Accrued liabilities were as follows (in thousands):
		March 31,				December 31,
		2015				2014
	Clinical trials	$	1,342			$	897
	Payroll and related expenses	400				678
	Professional services	140				343
	Other	76				48
	Total	$	1,958			$	1,966

Stock_Based_Compensation_Table

Stock Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of stock option activity	The Company’s stock option activity and related information for the three months ended March 31, 2015 was as follows (in thousands, except share and per share data):
									Weighted-avg.
		Shares					Weighted-avg.		Remaining	Aggregate
		Available		Stock Options			Exercise Price		Contractual	Intrinsic
		for Grant		Outstanding			Per Share		Life (in Years)	Value
	Balance at December 31, 2014	342,210		2,086,602			$	8.01	8.63	$	871
	Stock options granted	(12,000	)	12,000			$	4.5
	Stock options cancelled	57,417		(57,417	)		$	7.49
	Stock options exercised	—		—			$	—
	Balance at March 31, 2015	387,627		2,041,185			$	8	8.32	$	522
	At March 31, 2015:
	Vested and expected to vest			1,978,575			$	8.02	8.29	$	522
	Exercisable			658,253			$	8.95	6.65	$	519
Stock-based compensation expense	The Company recognized stock based compensation expense as follows (in thousands):
		Three Months Ended March 31,
		2015			2014
	Research and development	$	209		$	465
	General and administrative	756			910
	Total	$	965		$	1,375
Stock option valuation assumptions	The fair value of employee stock options was estimated using the following weighted-average assumptions:
			Three Months Ended March 31,
			2015	2014
	Expected dividend yield		—	—
	Risk-free interest rates		1.52%	2.01%
	Expected life in years		6.08	6.08
	Expected volatility		91%	102%

Discontinued_Operations_Tables

Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2015
Restructuring and Related Activities [Abstract]
Discontinued operations included the Income Statement and Balance Sheets	The results of Tranzyme Pharma and related asset groups are disclosed as discontinued operations in the Consolidated Statements of Operations and Comprehensive Loss for the period ended March 31, 2014 (in thousands):
		Three Months Ended
		March 31, 2014
	Proceeds recognized pursuant to Technology Transfer and License Agreement	$	4,000
	Less carrying value of assets sold:
	Intangibles assets	(2,053		)
	Property and equipment	(356		)
	Goodwill	(442		)
	Net gain on disposal of assets	1,149
	Other expenses of discontinued operations	(3		)
	Recognition of accumulated translation adjustments upon deconsolidation of subsidiary	(29		)
	Net income from discontinued operations	$	1,117

Net_Loss_Per_Share_Tables

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Computation of net loss per share	The following table presents the computation of net loss per share (in thousands, except share and per share data):
		Three Months Ended
		March 31,
		2015			2014
	Numerator
	Net loss from continuing operations	$	(6,651	)	$	(5,182	)
	Net income from discontinued operations	—			1,117
	Net loss	$	(6,651	)	$	(4,065	)
	Denominator
	Weighted average common shares outstanding used to compute net loss per share, basic and diluted	19,747,362			15,421,234
	Net loss per share of common stock, basic and diluted
	Net loss per share from continuing operations	$	(0.34	)	$	(0.34	)
	Net income per share from discontinued operations	—			0.07
	Net loss per share	$	(0.34	)	$	(0.27	)
Potentially dilutive securities not included in the calculation of dilutive net loss per share	The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have been anti-dilutive:
		Three Months Ended
		March 31,
		2015		2014
	Common stock warrants	932,535		938,882
	Common stock options	2,039,050		1,758,820
	Total	2,971,585		2,697,702

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of non-cancellable future minimum lease payments for operating leases	The following is a schedule of non-cancellable future minimum lease payments for operating leases as of March 31, 2015 (in thousands):
	Years ending December 31:
	2015 (Remaining Nine Months)	$	140
	2016	18
	Total	$	158

The_Company_Details

The Company (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Losses incurred since inception	($111,562)	($104,911)

Fair_Value_Measurements_Fair_V

Fair Value Measurements (Fair Value) (Details) (Recurring [Member], USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$45,192	$50,211
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	9,364	9,171
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	35,828	41,040
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	9,364	9,171
Money Market Funds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	9,364	9,171
Money Market Funds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Money Market Funds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	5,249	3,750
Commercial Paper [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Commercial Paper [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	5,249	3,750
Commercial Paper [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	30,079	36,790
Corporate Debt Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Corporate Debt Securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	30,079	36,790
Corporate Debt Securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	500	500
US Government Agencies Debt Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
US Government Agencies Debt Securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	500	500
US Government Agencies Debt Securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$0	$0

Balance_Sheet_Components_Avail

Balance Sheet Components (Available For Sale Investments) (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$35,827	$41,067
Unrealized Gains	5	2
Unrealized Losses	-4	-29
Estimated Fair Value	35,828	41,040
Short-term investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	33,658	37,127
Unrealized Gains	5	2
Unrealized Losses	-4	-17
Estimated Fair Value	33,659	37,112
Short-term investments [Member] | Commercial Paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,244	3,748
Unrealized Gains	5	2
Unrealized Losses	0	0
Estimated Fair Value	5,249	3,750
Short-term investments [Member] | Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	28,414	33,379
Unrealized Gains	0	0
Unrealized Losses	-4	-17
Estimated Fair Value	28,410	33,362
Long-term investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,169	3,940
Unrealized Gains	0	0
Unrealized Losses	0	-12
Estimated Fair Value	2,169	3,928
Long-term investments [Member] | Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,669	3,439
Unrealized Gains	0	0
Unrealized Losses	0	-11
Estimated Fair Value	1,669	3,428
Long-term investments [Member] | US Government Agencies Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	500	501
Unrealized Gains	0	0
Unrealized Losses	0	-1
Estimated Fair Value	$500	$500

Balance_Sheet_Components_Prope

Balance Sheet Components (Property and Equipment) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$121		$121
Less accumulated depreciation	-68		-60
Property and equipment, net	53		61
Depreciation expense	8	10
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	53		53
Computer equipment and software [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life	1 year 6 months
Computer equipment and software [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life	3 years
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$68		$68
Useful life	5 years

Balance_Sheet_Components_Acqui

Balance Sheet Components (Acquired Intangible Assets) (Details) (USD $)	3 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Balance Sheet Components [Abstract]
Carrying value	$410		$410
Accumulated amortization	-280		-239
Intangible assets, net	130		171
Weighted average remaining life (in years)	9 months		1 year
Amortization of intangibles	41	41
Expected amortization expense	$130

Balance_Sheet_Components_Accru

Balance Sheet Components (Accrued Liabilities) (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Balance Sheet Components [Abstract]
Clinical trials	$1,342	$897
Payroll and related expenses	400	678
Professional services	140	343
Other	76	48
Accrued liabilities	$1,958	$1,966

Stock_Based_Compensation_Stock

Stock Based Compensation (Stock Option Activity) (Details) (Stock Options [Member], USD $)	3 Months Ended	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Stock Options [Member]
Shares Available for Grant
Shares available for grant	342,210
Stock options granted	-12,000
Stock options cancelled	57,417
Shares available for grant	387,627	342,210
Stock Options Outstanding
Beginning balance, options	2,086,602
Stock options granted	-12,000
Stock options cancelled	-57,417
Stock options exercised	0
Ending balance, options	2,041,185	2,086,602
Stock options vested and expected to vest	1,978,575
Stock options exercisable	658,253
Weighted-average Exercise Price Per Share
Weighted-average exercise price, options outstanding	$8.01
Grants in period	$4.50
Cancelled in period	$7.49
Exercises in period	$0
Weighted-average exercise price, options outstanding	$8	$8.01
Weighted-average exercise price, options exercisable	$8.02
Weighted-average exercise price, options vested and expected to vest	$8.95
Weighted-average remaining contractual life, options outstanding	8 years 3 months 26 days	8 years 7 months 17 days
Weighted-average remaining contractual life, options vested and expected to vest	8 years 3 months 15 days
Weighted-average remaining contractual life, options exercisable	6 years 7 months 24 days
Aggregate Intrinsic value, options outstanding	$522	$871
Aggregate Intrinsic value, options vested and expected to vest	522
Aggregate Intrinsic value, options exercisable	$519

Stock_Based_Compensation_Stock1

Stock Based Compensation (Stock-based compensation expense) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$965	$1,375
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	209	465
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$756	$910

Stock_Based_Compensation_Valua

Stock Based Compensation (Valuation Assumptions) (Details) (Stock Options [Member])	3 Months Ended		111 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2014
Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate	1.52%	2.01%
Expected life in years	6 years 29 days	6 years 29 days
Expected dividend yield	0.00%	0.00%
Expected volatility	91.00%	102.00%
Minimum [Member]
Fair Value Assumptions and Methodology [Abstract]
Expected life in years			3 months
Maximum [Member]
Fair Value Assumptions and Methodology [Abstract]
Expected life in years			6 years 3 months

Stock_Based_Compensation_Addit

Stock Based Compensation (Additional Information) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$965,000	$1,375,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value of options exercised	0	2,600,000
Compensation costs not yet recognized	$9,800,000
Period for recognizing costs	2 years 8 months 27 days

Discontinued_Operations_Detail

Discontinued Operations (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 13, 2013
Restructuring Cost and Reserve [Line Items]
Net gain on disposal of assets	$0
Tranzyme Pharma Inc. [Member]
Restructuring Cost and Reserve [Line Items]
Net gain on disposal of assets	1,149,000	1,149,000
Tranzyme Pharma Inc. [Member] | Customer Agreements And Intellectual Property [Member]
Restructuring Cost and Reserve [Line Items]
Sale price for discontinued operations			$4,000,000

Discontinued_Operations_Discon

Discontinued Operations (Discontinued Operations in the Company's Consolidated Statements of Operations and Comprehensive Loss) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net gain on disposal of assets	$0
Net loss from discontinued operations	0	1,117,000
Tranzyme Pharma Inc. [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net gain on disposal of assets	1,149,000	1,149,000
Other income (expense), net		-3,000
Recognition of accumulated translation adjustments upon deconsolidation of subsidiary		-29,000
Net loss from discontinued operations		1,117,000
Tranzyme Pharma Inc. [Member] | Intangible Assets [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lees carrying value of assets sold		-2,053,000
Tranzyme Pharma Inc. [Member] | Property, Plant and Equipment [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lees carrying value of assets sold		-356,000
Tranzyme Pharma Inc. [Member] | Goodwill [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lees carrying value of assets sold		-442,000
Tranzyme Pharma Inc. [Member] | Customer Agreements And Intellectual Property [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds recognized pursuant to Technology Transfer and License Agreement		($4,000,000)

Net_Loss_Per_Share_Schedule_of

Net Loss Per Share (Schedule of Basic and Diluted Loss Per Share) (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Numerator
Net loss from continuing operations	($6,651)	($5,182)
Net income from discontinued operations	0	1,117
Net loss	($6,651)	($4,065)
Denominator
Weighted average common shares outstanding used to compute net loss per share, basic and diluted	19,747,362	15,421,234
Net loss per share of common stock, basic and diluted
Net loss per share from continuing operations	($0.34)	($0.34)
Net income per share from discontinued operations	$0	$0.07
Net loss per share, basic and diluted	($0.34)	($0.27)

Net_Loss_Per_Share_Schedule_of1

Net Loss Per Share (Schedule of Antidilutive Securities Excluded From Earnings Per Share) (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	2,971,585	2,697,702
Warrants [Member] | Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	932,535	938,882
Stock Options [Member] | Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	2,039,050	1,758,820

Commitments_and_Contingencies_1

Commitments and Contingencies (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$57,000	$52,000
Future Minimum Payments Due by Fiscal Year Maturity [Abstract]
2015 (Remaining Nine Months)	140,000
2016	18,000
Total	$158,000