Ocera Therapeutics 10-Q 10 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Ocera Therapeutics, Inc.
Entity Central Index Key	1,274,644
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		19,884,225

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 8,370	$ 10,127
Short-term investments, available-for-sale	32,835	37,112
Accounts receivable	74	62
Prepaid expenses and other current assets	685	970
Total current assets	41,964	48,271
Property and equipment, net	45	61
Long-term investments	0	3,928
Deposits	26	26
Intangible assets, net	89	171
Goodwill	595	595
Total assets	42,719	53,052
Current liabilities:
Accounts payable	1,084	941
Accrued liabilities	2,030	1,966
Total liabilities	$ 3,114	$ 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 June 30, 2015 and December 31, 2014.	$ 0	$ 0
Common stock - $0.00001 par value, 100,000,000 shares authorized, 19,884,225 shares issued shares outstanding at June 30, 2015 and 19,747,362 shares issued and outstanding at December 31, 2014.	0	0
Additional paid-in capital	157,389	155,083
Accumulated other comprehensive loss	(1)	(27)
Accumulated deficit	(117,783)	(104,911)
Total stockholders' equity	39,605	50,145
Total liabilities and stockholders' equity	$ 42,719	$ 53,052

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.00001	$ 0.00001
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	$ 0.00001	$ 0.00001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	19,884,225	19,747,362
Common stock, shares outstanding	19,884,225	19,747,362

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue:
Royalty revenue	$ 43	$ 33	$ 74	$ 78
Total revenue	43	33	74	78
Operating expenses:
Research and development	3,417	4,826	7,815	7,292
General and administrative	2,832	2,421	5,088	5,154
Amortization of intangibles	41	41	82	82
Total operating expenses	6,290	7,288	12,985	12,528
Other income (expense), net	26	12	39	25
Net loss from continuing operations	(6,221)	(7,243)	(12,872)	(12,425)
Net income from discontinued operations (including gain on disposal of $1,149)	0	20	0	1,137
Net loss	$ (6,221)	$ (7,223)	$ (12,872)	$ (11,288)
Net loss per share:
Net loss per share from continuing operations, basic and diluted	$ (0.31)	$ (0.46)	$ (0.65)	$ (0.80)
Net income per share from discontinued operations, basic and diluted	0	0	0	0.07
Net loss per share, basic and diluted	$ (0.31)	$ (0.46)	$ (0.65)	$ (0.73)
Weighted average number of shares used to compute net loss per share of common stock, basic and diluted	19,772,345	15,539,053	19,759,923	15,480,469
Unrealized gain (loss) on investments	$ (2)	$ (1)	$ 26	$ 1
Comprehensive loss	$ (6,223)	$ (7,224)	$ (12,846)	$ (11,287)

Consolidated Statements of Ope5

Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net gain on disposal of assets		$ 0
Tranzyme Pharma Inc. [Member]
Net gain on disposal of assets	$ 0		$ 1,149,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Net loss	$ (12,872)	$ (11,288)
Adjustments to reconcile net loss to net cash used in operating activities:
Net income from discontinued operations	0	(1,137)
Depreciation	16	20
Amortization of intangibles	82	82
Stock-based compensation	1,902	2,252
Accretion of premium on investment securities	253	212
Changes in operating assets and liabilities:
Accounts receivable	(12)	60
Prepaid expenses and other assets	285	(139)
Accounts payable	134	11
Accrued liabilities	64	(90)
Net cash used in continuing operating activities	(10,148)	(10,017)
Net cash used in discontinued operating activities	0	(407)
Net cash used in operating activities	(10,148)	(10,424)
Investing activities
Purchases of property and equipment	0	(23)
Purchase of short-term and long-term investments	(18,022)	(9,187)
Maturities of short-term and long-term investments	26,000	15,045
Net cash provided by continuing investing activities	7,978	5,835
Net cash provided by discontinued investing activities	0	1,165
Net cash provided by investing activities	7,978	7,000
Financing activities
Proceeds from exercise of common stock options	0	398
Proceeds from issuance of common stock, net of issuance costs	413	0
Net cash provided by continuing financing activities	413	398
Net increase (decrease) in cash and cash equivalents	(1,757)	(3,026)
Cash and cash equivalents—beginning of period	10,127	15,533
Cash and cash equivalents—end of period	8,370	12,507
Supplemental schedule of noncash investing and financing activities
Deferred offering costs in accrued expense and accounts payable	$ 9	$ 87

The Company

The Company	6 Months Ended
	Jun. 30, 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 (“Ocera Subsidiary”). 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 June 30, 2015 , the Company has incurred losses since inception of $ 117.8 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 Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2015 are as follows (in thousands): Balance as of June 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds $ 7,624 $ 7,624 $ — $ — Commercial paper 5,750 — 5,750 — Corporate debt securities 27,085 — 27,085 — Total assets $ 40,459 $ 7,624 $ 32,835 $ — Assets measured at fair value on a recurring basis as of December 31, 2014 are as follows (in thousands): Balance as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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	6 Months Ended
	Jun. 30, 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 June 30, 2015 (in thousands): Maturity (in Years) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Commercial paper 1 or less $ 5,745 $ 5 $ — $ 5,750 Corporate debt securities 1 or less 27,091 — (6 ) 27,085 Total investments $ 32,836 $ 5 $ (6 ) $ 32,835 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 June 30, 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 (76 ) (60 ) Property and equipment, net $ 45 $ 61 Total d epreciation expense was $8,000 and $10,000 for the three months ended June 30, 2015 and 2014 respectively, and $ 16,000 and $ 20,000 for the six months ended June 30, 2015 and 2014, respectively. Acquired Intangible Assets The net book value of acquired intangible assets was as follows (in thousands): June 30, December 31, Customer Agreements: 2015 2014 Carrying value $ 410 $ 410 Accumulated amortization (321 ) (239 ) Intangible assets, net $ 89 $ 171 Weighted average remaining life (in years) .50 1.0 The Company recognized $41,000 as amortization expense on the intangible assets for the three months ended June 30, 2015 and 2014 and $ 82,000 for the six months ended June 30, 2015 and 2014. No impairment charges were recorded. As of June 30, 2015 , expected amortization expense related to our purchased intangible assets is approximately $89,000 during 2015. Accrued Liabilities Accrued liabilities were as follows (in thousands): June 30, December 31, 2015 2014 Clinical trials $ 1,174 $ 897 Payroll and related expenses 515 678 Professional services 250 343 Other 91 48 Total $ 2,030 $ 1,966

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stockholders' Equity	Stockholders' Equity On May 15, 2015, the Company entered into the Sales Agreement (the “Sales Agreement”) with Cowen and Company, LLC (“Cowen”), pursuant to which the Company may issue and sell shares of its common stock having aggregate sales proceeds of up to $25,000,000 from time to time through an “at the market” equity program under which Cowen acts as sales agent. In June 2015, the Company sold 135,562 shares of common stock under the Sales Agreement, at an average price of approximately $3.79 per share for gross proceeds of $0.5 million and net proceeds of $0.4 million after deducting commissions and other transactions costs. As of June 30, 2015 $24.5 million of common stock remained available to be sold under the Sales Agreement, subject to certain conditions specified therein. Subsequently in August 2015, the Company sold 524,225 shares of common stock under the Sales Agreement, at an average price of approximately $4.00 per share for gross proceeds of approximately $2.1 million . Stock-Based Compensation The Company’s stock option activity and related information for the six months ended June 30, 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 Additional shares authorized 1,300,000 Stock options granted (567,500 ) 567,500 $ 3.77 Stock options canceled 364,591 (364,591 ) $ 6.44 Stock options exercised — — $ — Balance at June 30, 2015 1,439,301 2,289,511 $ 7.21 8.41 $ 412 At June 30, 2015: Vested and expected to vest 2,213,867 $ 7.25 8.38 $ 410 Exercisable 827,599 $ 8.76 6.95 $ 386 The aggregate intrinsic value of options exercised under all option plans was $0 and $3.1 million for the six months ended June 30, 2015 and 2014, respectively, determined as of the date of option exercise. In May 2015, 1,586 warrants were exercised at an exercise price of $0.67 price per share in a cashless exercise with 1,361 shares of common stock being issued. In May 2015, the Company modified the terms of an existing stock option to a former executive to extend the period of time to exercise the vested stock options from one year to three years following the termination of employment. $49,000 of stock compensation expense was recorded during the three and six months ended June 30, 2015 pursuant to this modification. In April 2015, the Company amended the non-employee director compensation policy to amend the exercise period of all existing awards from three months to three year following such directors’ departure from the Company’s board of directors. The Company uses historical experience to estimate the expected term of awards granted with the extended exercise period. The Company's expected term for non-employee director options with the extended term is estimated to be 8.06 years. $101,000 of stock compensation expense was recorded during the three and six months ended June 30, 2015 pursuant to this modification. On April 23, 2015, the Company’s board of directors approved an amendment and restatement of the Company’s 2011 Stock Option and Incentive Plan (the “2011 Plan”) to increase the maximum number of shares that may be issued under the 2011 Plan from 2,302,328 to 3,602,328 shares. The amendment and restatement of the 2011 Plan was approved by the Company’s stockholders on June 18, 2015. During the three months ended June 30, 2015, the Company’s board of directors authorized the grant of 445,500 common stock options to its employees, 60,000 common stock options to non-employee members of the board of directors and 50,000 common stock options to a consultant, of which 25,000 stock options will vest based on the achievement of certain clinical milestones. During the three and six months ended June 30, 2015 no expense has been recorded for the performance based options. The Company recognized stock-based compensation expense as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Research and development $ 56 $ 366 $ 265 $ 831 General and administrative 881 511 1,637 1,421 Total $ 937 $ 877 $ 1,902 $ 2,252 As of June 30, 2015 , there were unrecognized compensation costs of $9.1 million related to stock options and the Company expects to recognize those costs over a weighted average period of 2.68 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 all stock options granted was estimated using the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Expected dividend yield — — — — Risk-free interest rates 1.65% - 2.08% 1.90% - 1.91% 1.52% - 2.08% 1.90% - 1.92% Expected life in years 5.49 - 8.06 6.08 5.49 - 8.06 6.08 Expected volatility 78% - 92% 100% 78% - 92% 100%

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 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 Inc. (“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 six months ended June 30, 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 six months period ended June 30, 2015. The results of Tranzyme Pharma and related asset groups are disclosed as discontinued operations in the Consolidated Statements of Operations and Comprehensive Loss as follows (in thousands): Three Months Ended Six Months Ended June 30, 2014 June 30, 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 20 (6 ) Recognition of accumulated translation adjustments upon deconsolidation of subsidiary — (6 ) Net income from discontinued operations $ 20 $ 1,137

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, 2015 2014 2015 2014 Numerator Net loss from continuing operations $ (6,221 ) $ (7,243 ) $ (12,872 ) $ (12,425 ) Net income from discontinued operations — 20 — 1,137 Net loss $ (6,221 ) $ (7,223 ) $ (12,872 ) $ (11,288 ) Denominator Weighted average common shares outstanding used to compute net loss per share, basic and diluted 19,772,345 15,539,053 19,759,923 15,480,469 Net loss per share of common stock, basic and diluted Net loss per share from continuing operations $ (0.31 ) $ (0.46 ) $ (0.65 ) $ (0.80 ) Net income per share from discontinued operations — — — 0.07 Net loss per share $ (0.31 ) $ (0.46 ) $ (0.65 ) $ (0.73 ) The following weighted average 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 Six Months Ended 2015 2014 2015 2014 Common stock warrants 931,942 938,882 932,237 938,882 Common stock options 2,020,872 1,731,347 2,029,911 1,744,033 Total 2,952,814 2,670,229 2,962,148 2,682,915

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 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. Leases In April 2015, the Company amended the term of the existing lease for its corporate headquarters in Palo Alto, California by extending term of the lease through December 2016. The Company also entered into an agreement to lease additional office space in its corporate headquarters for the period from May 2015 through December 2016. The Company has an option to extend the term of both agreements for an additional 12 months. In June 2015, the Company also amended the term of the existing lease for its North Carolina facility by extending term of the lease through January 2017. Rent expense was $ 80,000 and $52,000 for the three months ended June 30, 2015 and 2014, respectively and $137,000 and $104,000 for the six months ended June 30, 2015 and 2014, respectively. The following is a schedule of non-cancellable future minimum lease payments for operating leases as of June 30, 2015 (in thousands): Years ending December 31: 2015 (Remaining Six Months) $ 218 2016 379 2017 15 Total $ 612

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 30, 2015, the Company and Ocera Subsidiary entered into a Loan and Security Agreement (the “Loan Agreement”) with Oxford Finance LLC (“Oxford”) and Silicon Valley Bank (“SVB”) (collectively, the “Lenders”). The Loan Agreement provides for up to $20 million in new term loans (the “Term Loan Facility”), $10 million of which was funded on July 30, 2015. The remaining $10 million is available for draw until December 31, 2016 at the Company’s discretion, subject to achievement of certain financial and clinical milestones. The term loan repayment schedule provides for interest only payments (i) through either March 1, 2017 or September 1, 2017 with respect to the first $10 million of the term loans, depending on whether the remaining term loans have been funded within a certain period set forth in the Loan Agreement, and (ii) through September 1, 2016 with respect to the remaining $10 million of term loans , in each case followed by consecutive equal monthly payments of principal and interest in arrears starting on such dates and continuing through the maturity date of August 1, 2019. The Loan Agreement provides for an interest rate equal to the greater of (i) 8.275% or (ii) the sum of the thirty-day U.S. LIBOR rate for five days prior to the funding date of the applicable term loan plus 8.085% . The Loan Agreement also provides for a final interest payment equal to 3.0% of the original principal amount of the first $10 million in term loans and 1.325% of the original principal amount of the remaining $10 million in term loans, or $432,500 , which is due when the term loan becomes due or upon the prepayment of the facility. The Company has the option to prepay the outstanding balance of the term loan in full, subject to a prepayment fee of 1% to 3% depending upon when the prepayment occurs. The Term Loan Facility matures on August 1, 2019. The Term Loan Facility is secured by substantially all of the assets of the Company and Ocera Subsidiary, except that the collateral does not include any intellectual property held by the Company, Ocera Subsidiary or their respective subsidiaries, or any securities in Tranzyme Holdings, ULC owned or held of record by the Company. However, pursuant to the terms of a negative pledge arrangement, the Company has agreed not to encumber any of the intellectual property of the Company or its subsidiaries. The Loan Agreement contains customary representations, warranties and covenants by the Company, which covenants limit the Company’s ability to convey, sell, lease, transfer, assign or otherwise dispose of certain of the Company’s assets; engage in any business other than the businesses currently engaged in by the Company or reasonably related thereto; liquidate or dissolve; make certain management changes; undergo certain change of control events; create, incur, assume, or be liable with respect to certain indebtedness; grant certain liens; pay dividends and make certain other restricted payments; make certain investments; enter into any material transactions with any affiliates, with certain exceptions; make payments on any subordinated debt; and permit certain of the Company’s subsidiaries to maintain, own or otherwise hold any material assets or conduct any business operations other than as disclosed to the Lenders. In addition, subject to certain exceptions, the Company and Ocera Subsidiary are required to maintain with SVB their respective primary deposit accounts, securities accounts and commodity accounts. The Loan Agreement also contains customary indemnification obligations and customary events of default, including, among other things, the Company’s failure to fulfill certain of its obligations under the Loan Agreement, the occurrence of a material adverse change, a material impairment of the prospect of repayment of any portion of the loan, or a material impairment in the perfection or priority of the Lenders’ lien in the collateral or in the value of such collateral. In the event of default by the Company under the Loan Agreement, the Lenders would be entitled to exercise their remedies thereunder, including the right to accelerate the debt, upon which the Company may be required to repay all amounts then outstanding under the Loan Agreement, which could harm the Company’s financial condition.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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)	6 Months Ended
	Jun. 30, 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 June 30, 2015 are as follows (in thousands): Balance as of June 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds $ 7,624 $ 7,624 $ — $ — Commercial paper 5,750 — 5,750 — Corporate debt securities 27,085 — 27,085 — Total assets $ 40,459 $ 7,624 $ 32,835 $ — Assets measured at fair value on a recurring basis as of December 31, 2014 are as follows (in thousands): Balance as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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)	6 Months Ended
	Jun. 30, 2015
Balance Sheet Components [Abstract]
Summary of available for sale investments	The following table summarizes the Company's available for sale investments as of June 30, 2015 (in thousands): Maturity (in Years) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Commercial paper 1 or less $ 5,745 $ 5 $ — $ 5,750 Corporate debt securities 1 or less 27,091 — (6 ) 27,085 Total investments $ 32,836 $ 5 $ (6 ) $ 32,835 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 June 30, 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 (76 ) (60 ) Property and equipment, net $ 45 $ 61
Net book value of acquired intangible assets	The net book value of acquired intangible assets was as follows (in thousands): June 30, December 31, Customer Agreements: 2015 2014 Carrying value $ 410 $ 410 Accumulated amortization (321 ) (239 ) Intangible assets, net $ 89 $ 171 Weighted average remaining life (in years) .50 1.0
Schedule of accrued liabilities	Accrued liabilities were as follows (in thousands): June 30, December 31, 2015 2014 Clinical trials $ 1,174 $ 897 Payroll and related expenses 515 678 Professional services 250 343 Other 91 48 Total $ 2,030 $ 1,966

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 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 six months ended June 30, 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 Additional shares authorized 1,300,000 Stock options granted (567,500 ) 567,500 $ 3.77 Stock options canceled 364,591 (364,591 ) $ 6.44 Stock options exercised — — $ — Balance at June 30, 2015 1,439,301 2,289,511 $ 7.21 8.41 $ 412 At June 30, 2015: Vested and expected to vest 2,213,867 $ 7.25 8.38 $ 410 Exercisable 827,599 $ 8.76 6.95 $ 386
Stock-based compensation expense	The Company recognized stock-based compensation expense as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Research and development $ 56 $ 366 $ 265 $ 831 General and administrative 881 511 1,637 1,421 Total $ 937 $ 877 $ 1,902 $ 2,252
Stock option valuation assumptions	The fair value of all stock options granted was estimated using the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Expected dividend yield — — — — Risk-free interest rates 1.65% - 2.08% 1.90% - 1.91% 1.52% - 2.08% 1.90% - 1.92% Expected life in years 5.49 - 8.06 6.08 5.49 - 8.06 6.08 Expected volatility 78% - 92% 100% 78% - 92% 100%

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 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 as follows (in thousands): Three Months Ended Six Months Ended June 30, 2014 June 30, 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 20 (6 ) Recognition of accumulated translation adjustments upon deconsolidation of subsidiary — (6 ) Net income from discontinued operations $ 20 $ 1,137

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, 2015 2014 2015 2014 Numerator Net loss from continuing operations $ (6,221 ) $ (7,243 ) $ (12,872 ) $ (12,425 ) Net income from discontinued operations — 20 — 1,137 Net loss $ (6,221 ) $ (7,223 ) $ (12,872 ) $ (11,288 ) Denominator Weighted average common shares outstanding used to compute net loss per share, basic and diluted 19,772,345 15,539,053 19,759,923 15,480,469 Net loss per share of common stock, basic and diluted Net loss per share from continuing operations $ (0.31 ) $ (0.46 ) $ (0.65 ) $ (0.80 ) Net income per share from discontinued operations — — — 0.07 Net loss per share $ (0.31 ) $ (0.46 ) $ (0.65 ) $ (0.73 )
Potentially dilutive securities not included in the calculation of dilutive net loss per share	The following weighted average 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 Six Months Ended 2015 2014 2015 2014 Common stock warrants 931,942 938,882 932,237 938,882 Common stock options 2,020,872 1,731,347 2,029,911 1,744,033 Total 2,952,814 2,670,229 2,962,148 2,682,915

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2015 (in thousands): Years ending December 31: 2015 (Remaining Six Months) $ 218 2016 379 2017 15 Total $ 612

The Company (Details)

The Company (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Losses incurred since inception	$ (117,783)	$ (104,911)

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Value) (Details) - Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 40,459	$ 50,211
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	7,624	9,171
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	32,835	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	7,624	9,171
Money Market Funds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	7,624	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	5,750	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	5,750	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	27,085	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	27,085	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
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
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
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

Balance Sheet Components (Avail

Balance Sheet Components (Available For Sale Investments) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 32,836	$ 41,067
Unrealized Gains	5	2
Unrealized Losses	(6)	(29)
Estimated Fair Value	32,835	41,040
Short-term investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		37,127
Unrealized Gains		2
Unrealized Losses		(17)
Estimated Fair Value		37,112
Short-term investments [Member] | Commercial Paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,745	3,748
Unrealized Gains	5	2
Unrealized Losses	0	0
Estimated Fair Value	5,750	3,750
Short-term investments [Member] | Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	27,091	33,379
Unrealized Gains	0	0
Unrealized Losses	(6)	(17)
Estimated Fair Value	$ 27,085	33,362
Long-term investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		3,940
Unrealized Gains		0
Unrealized Losses		(12)
Estimated Fair Value		3,928
Long-term investments [Member] | Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		3,439
Unrealized Gains		0
Unrealized Losses		(11)
Estimated Fair Value		3,428
Long-term investments [Member] | US Government Agencies Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		501
Unrealized Gains		0
Unrealized Losses		(1)
Estimated Fair Value		$ 500

Balance Sheet Components (Prope

Balance Sheet Components (Property and Equipment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 121		$ 121		$ 121
Less accumulated depreciation	(76)		(76)		(60)
Property and equipment, net	45		45		61
Depreciation expense	8	$ 10	16	$ 20
Amortization of intangibles	41	$ 41	82	$ 82
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	53		$ 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		$ 68
Useful life			5 years

Balance Sheet Components (Acqui

Balance Sheet Components (Acquired Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Balance Sheet Components [Abstract]
Carrying value	$ 410		$ 410		$ 410
Accumulated amortization	(321)		(321)		(239)
Intangible assets, net	89		$ 89		$ 171
Weighted average remaining life (in years)			6 months		1 year
Amortization of intangibles	$ 41	$ 41	$ 82	$ 82

Balance Sheet Components (Accru

Balance Sheet Components (Accrued Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Balance Sheet Components [Abstract]
Clinical trials	$ 1,174	$ 897
Payroll and related expenses	515	678
Professional services	250	343
Other	91	48
Accrued liabilities	$ 2,030	$ 1,966

Stockholders' Equity (Stock Opt

Stockholders' Equity (Stock Option Activity) (Details) - Equity Award [Domain] - USD ($) $ / shares in Units, $ in Thousands	Jun. 18, 2015	Jun. 30, 2015	Dec. 31, 2014
Shares Available for Grant
Shares available for grant		342,210
Stock options granted	(445,500)	(567,500)
Stock options cancelled		364,591
Shares available for grant		1,439,301	342,210
Stock Options Outstanding
Beginning balance, options		2,086,602
Stock options granted	(445,500)	(567,500)
Stock options cancelled		(364,591)
Stock options exercised		0
Ending balance, options		2,289,511	2,086,602
Stock options vested and expected to vest		2,213,867
Stock options exercisable		827,599
Weighted-average Exercise Price Per Share
Weighted-average exercise price, options outstanding		$ 8.01
Grants in period		3.77
Cancelled in period		6.44
Exercises in period		0
Weighted-average exercise price, options outstanding		7.21	$ 8.01
Weighted-average exercise price, options exercisable		7.25
Weighted-average exercise price, options vested and expected to vest		$ 8.76
Weighted-average remaining contractual life, options outstanding		8 years 4 months 28 days	8 years 7 months 17 days
Weighted-average remaining contractual life, options vested and expected to vest		8 years 4 months 17 days
Weighted-average remaining contractual life, options exercisable		6 years 11 months 12 days
Aggregate Intrinsic value, options outstanding		$ 412	$ 871
Aggregate Intrinsic value, options vested and expected to vest		410
Aggregate Intrinsic value, options exercisable		$ 386
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized		1,300,000

Stockholders' Equity (Stock-bas

Stockholders' Equity (Stock-based compensation expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 937	$ 877	$ 1,902	$ 2,252
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	56	366	265	831
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 881	$ 511	$ 1,637	$ 1,421

Stockholders' Equity (Valuation

Stockholders' Equity (Valuation Assumptions) (Details) - Stock Options [Member]	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate	0.00%	0.00%	0.00%
Expected life in years		6 years 29 days		6 years 29 days
Expected dividend yield				0.00%
Expected volatility		100.00%		100.00%
Minimum [Member]
Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate	1.65%	1.90%	1.52%	1.90%
Expected life in years	5 years 5 months 27 days		5 years 5 months 27 days
Expected volatility	78.00%		78.00%
Maximum [Member]
Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate	2.08%	1.91%	2.08%	1.92%
Expected life in years	8 years 22 days		8 years 22 days
Expected volatility	92.00%		92.00%

Stockholders' Equity (Additiona

Stockholders' Equity (Additional Information) (Details) - USD ($)	Aug. 01, 2015	Jun. 18, 2015	Jun. 30, 2015	May. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Apr. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	May. 15, 2015	Apr. 23, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, value outstanding										$ 25,000,000
Stock issued during period, shares, new issues			135,562
Common stock, par value, average			$ 3.79		$ 3.79			$ 3.79
Proceeds from issuance of common stock, net of issuance costs			$ 500,000					$ 413,000	$ 0
Proceeds From Issuance Of Common Stock, Net Of Issuance Costs			$ 400,000
Aggregate intrinsic value of options exercised								0	3,100,000
Warrants exercised				1,586
Exercise price				$ 0.67
Stock-based compensation expense					$ 937,000	$ 877,000		$ 1,902,000	$ 2,252,000
Number of shares authorized			3,602,328		3,602,328			3,602,328			2,302,328
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		445,500						567,500
Common stock, shares issued			19,884,225		19,884,225			19,884,225				19,747,362
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognizing costs								2 years 7 months 35 days
Compensation costs not yet recognized			$ 9,100,000		$ 9,100,000			$ 9,100,000
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, issued			1,361		1,361			1,361
Cowen [Member] | At the Market Issuance Sales Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, value outstanding			$ 24,500,000		$ 24,500,000			$ 24,500,000
Former Executive [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period				3 years			1 year
Stock-based compensation expense					49,000			49,000
Non-employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense					$ 101,000
Period for recognizing costs					8 years 22 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		60,000
Consultant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense								$ 1,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		50,000
Consultant [Member] | Performance Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		25,000
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value, average	$ 4
Proceeds from issuance of common stock, net of issuance costs	$ 2,100,000
Common stock, shares issued	524,225

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 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	$ 0		$ 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		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 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	$ 20,000	$ 0	$ 1,137,000
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		0		1,149,000
Other income (expense), net		20,000		(6,000)
Recognition of accumulated translation adjustments upon deconsolidation of subsidiary		0		(6,000)
Net loss from discontinued operations		20,000		1,137,000
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		0		(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		0		(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		0		(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		$ 0		$ 4,000,000

Net Loss Per Share (Schedule of

Net Loss Per Share (Schedule of Basic and Diluted Loss Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator
Net loss from continuing operations	$ (6,221)	$ (7,243)	$ (12,872)	$ (12,425)
Net income from discontinued operations	0	20	0	1,137
Net loss	$ (6,221)	$ (7,223)	$ (12,872)	$ (11,288)
Denominator
Weighted average common shares outstanding used to compute net loss per share, basic and diluted	19,772,345	15,539,053	19,759,923	15,480,469
Net loss per share of common stock, basic and diluted
Net loss per share from continuing operations	$ (0.31)	$ (0.46)	$ (0.65)	$ (0.80)
Net income per share from discontinued operations	0	0	0	0.07
Net loss per share, basic and diluted	$ (0.31)	$ (0.46)	$ (0.65)	$ (0.73)

Net Loss Per Share (Schedule 36

Net Loss Per Share (Schedule of Antidilutive Securities Excluded From Earnings Per Share) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	2,952,814	2,670,229	2,962,148	2,682,915
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	931,942	938,882	932,237	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	2,020,872	1,731,347	2,029,911	1,744,033

Commitments and Contingencies37

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 80	$ 52	$ 137	$ 104
Future Minimum Payments Due by Fiscal Year Maturity [Abstract]
2015 (Remaining Six Months)	218		218
2,016	379		379
2,017	15		15
Total	$ 612		$ 612

Subsequent Events (Details)

Subsequent Events (Details) - Jul. 30, 2015 - Line of Credit [Member] - Secured Debt [Member] - Oxford Finance LLC and Silicon Valley Bank [Member] - Subsequent Event [Member] - USD ($)	Total
Subsequent Event [Line Items]
Line of credit facility, maximum borrowing capacity	$ 20,000,000
Line of credit facility, current borrowing capacity	$ 10,000,000
Line of credit facility interest rate at period end, remaining borrowings	1.325%
Line of credit facility, remaining borrowing capacity	$ 10,000,000
Line of credit facility, interest rate during period, stated percentage	8.275%
Debt instrument, payment terms	5 years
Line of credit facility interest rate at period end, current borrowings	3.00%
Debt instrument, periodic payment, principal	$ 432,500
Minimum [Member]
Subsequent Event [Line Items]
Early extinguishment of debt, prepayment fee	1.00%
Maximum [Member]
Subsequent Event [Line Items]
Early extinguishment of debt, prepayment fee	3.00%
London Interbank Offered Rate (LIBOR) [Member]
Subsequent Event [Line Items]
Line of credit facility, interest rate during period, variable rate	8.085%