Ocera Therapeutics 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 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	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		20,503,211

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 22,767	$ 10,127
Short-term investments, available-for-sale	25,117	37,112
Accounts receivable	35	62
Prepaid expenses and other current assets	643	970
Total current assets	48,562	48,271
Property and equipment, net	109	61
Long-term investments	0	3,928
Deposits	44	26
Intangible assets, net	48	171
Goodwill	595	595
Total assets	49,358	53,052
Current liabilities:
Accounts payable	1,037	941
Accrued liabilities	2,495	1,966
Total current liabilities	3,532	2,907
Notes payable	9,462	0
Other liabilities	2	0
Total liabilities	$ 12,996	$ 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 September 30, 2015 and December 31, 2014.	$ 0	$ 0
Common stock - $0.00001 par value, 100,000,000 shares authorized, 20,424,885 shares issued shares outstanding at September 30, 2015 and 19,747,362 shares issued and outstanding at December 31, 2014.	0	0
Additional paid-in capital	160,717	155,083
Accumulated other comprehensive income (loss)	3	(27)
Accumulated deficit	(124,358)	(104,911)
Total stockholders' equity	36,362	50,145
Total liabilities and stockholders' equity	$ 49,358	$ 53,052

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 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	20,424,885	19,747,362
Common stock, shares outstanding	20,424,885	19,747,362

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Licensing revenue	$ 0	$ 200,000	$ 0	$ 200,000
Royalty revenue	35,000	33,000	109,000	111,000
Total revenue	35,000	233,000	109,000	311,000
Operating expenses:
Research and development	4,235,000	4,189,000	12,050,000	11,481,000
General and administrative	2,372,000	2,682,000	7,460,000	7,836,000
Amortization of intangibles	41,000	41,000	123,000	123,000
Total operating expenses	6,648,000	6,912,000	19,633,000	19,440,000
Interest and other income	23,000	18,000	71,000	43,000
Interest and other expense	(203,000)	0	(213,000)	0
Other income (expense), net	(180,000)	18,000	(142,000)	43,000
Net loss from continuing operations	(6,793,000)	(6,661,000)	(19,666,000)	(19,086,000)
Net income from discontinued operations (See Note 7)	219,000	58,000	219,000	1,195,000
Net loss	$ (6,574,000)	$ (6,603,000)	$ (19,447,000)	$ (17,891,000)
Net loss per share:
Net loss per share from continuing operations, basic and diluted	$ (0.34)	$ (0.34)	$ (0.99)	$ (1.14)
Net income per share from discontinued operations, basic and diluted	0.01	0	0.01	0.07
Net loss per share, basic and diluted	$ (0.33)	$ (0.34)	$ (0.98)	$ (1.07)
Weighted average number of shares used to compute net loss per share of common stock, basic and diluted	20,183,939	19,330,888	19,902,815	16,778,047
Unrealized gain (loss) on investments	$ 4,000	$ (10,000)	$ 30,000	$ (9,000)
Comprehensive loss	$ (6,570,000)	$ (6,613,000)	$ (19,417,000)	$ (17,900,000)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net loss	$ (19,447,000)	$ (17,891,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Net income from discontinued operations	(219,000)	(1,195,000)
Depreciation	23,000	28,000
Amortization of intangibles	123,000	123,000
Stock-based compensation	2,860,000	3,701,000
Accretion of premium on investment securities	321,000	409,000
Amortization of debt discount	31,000	0
Changes in operating assets and liabilities:
Accounts receivable	27,000	61,000
Prepaid expenses and other assets	327,000	(653,000)
Accounts payable	73,000	(239,000)
Accrued liabilities	531,000	(29,000)
Net cash used in continuing operating activities	(15,350,000)	(15,685,000)
Net cash provided by (used in) discontinued operating activities	219,000	(444,000)
Net cash used in operating activities	(15,131,000)	(16,129,000)
Investing activities
Purchases of property and equipment	(71,000)	(38,000)
Purchase of short-term and long-term investments	(23,320,000)	(35,586,000)
Maturities of short-term and long-term investments	38,952,000	19,545,000
Deposits on equipment	(18,000)	0
Net cash provided by (used in) continuing investing activities	15,543,000	(16,079,000)
Net cash provided by discontinued investing activities	0	1,165,000
Net cash provided by (used in) investing activities	15,543,000	(14,914,000)
Financing activities
Proceeds from sale of common stock, net of underwriting discounts and commissions and offering expenses	2,480,000	23,439,000
Proceeds from notes payable, net	9,748,000	0
Proceeds from exercise of common stock options	0	398,000
Net cash provided by continuing financing activities	12,228,000	23,837,000
Net increase (decrease) in cash and cash equivalents	12,640,000	(7,206,000)
Cash and cash equivalents—beginning of period	10,127,000	15,533,000
Cash and cash equivalents—end of period	22,767,000	8,327,000
Supplemental schedule of noncash investing and financing activities
Cashless exercise of stock options	0	22,000
Fair value of warrants issued in connection with notes payable	317,000	0
Deferred offering costs in accrued expense and accounts payable	23,000	55,000
Unrealized gain (loss) on investments	71,000	0
Unrealized Gain (Loss) on Investments	$ 30,000	$ (9,000)

The Company

The Company	9 Months Ended
	Sep. 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 September 30, 2015 , the Company has incurred losses since inception of $ 124.4 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	9 Months Ended
	Sep. 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. Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board issued Accounting Standard Update 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The recognition and measurement guidance for debt issuance costs are not affected by this guidance. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company has chosen to early adopt this guidance and present the legal costs in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 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 September 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. None of the Company’s non-financial assets and liabilities is recorded at fair value on a non-recurring basis. No transfers between levels have occurred during the periods presented. Assets measured at fair value on a recurring basis as of September 30, 2015 are as follows (in thousands): Balance as of September 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 $ 12,343 $ 12,343 $ — $ — Commercial paper 6,999 — 6,999 — Corporate debt securities 18,118 — 18,118 — Total assets $ 37,460 $ 12,343 $ 25,117 $ — 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	9 Months Ended
	Sep. 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 September 30, 2015 (in thousands): Maturity (in Years) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Commercial paper 1 or less $ 6,996 $ 3 $ — $ 6,999 Corporate debt securities 1 or less 18,118 — — 18,118 Total investments $ 25,114 $ 3 $ — $ 25,117 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 September 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 Construction in progress 71 — Total property and equipment, gross 192 121 Less: accumulated depreciation (83 ) (60 ) Property and equipment, net $ 109 $ 61 Total d epreciation expense was $6,000 and $8,000 for the three months ended September 30, 2015 and 2014 respectively, and $ 23,000 and $ 28,000 for the nine months ended September 30, 2015 and 2014, respectively. Acquired Intangible Assets The net book value of acquired intangible assets was as follows (in thousands): September 30, December 31, Customer Agreements: 2015 2014 Carrying value $ 410 $ 410 Accumulated amortization (362 ) (239 ) Intangible assets, net $ 48 $ 171 Weighted average remaining life (in years) .25 1.0 The Company recognized $41,000 as amortization expense on the intangible assets for the three months ended September 30, 2015 and 2014 and $ 123,000 for the nine months ended September 30, 2015 and 2014. As of September 30, 2015 , the remaining amortization expense related to our purchased intangible assets was approximately $48,000 during 2015. Accrued Liabilities Accrued liabilities were as follows (in thousands): September 30, December 31, 2015 2014 Clinical trials $ 1,419 $ 897 Payroll and related expenses 711 678 Professional services 234 343 Other 131 48 Total $ 2,495 $ 1,966

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Notes Payable	Notes Payable 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 milestones would be satisfied if the Company (a) has raised proceeds of at least $15 million from the sale of equity securities or upfront payments from a partnership agreement and (b) achieved positive data from its ongoing Phase 2b clinical trial of OCR-002. The annual interest rate for the initial $10 million funding is 8.275% , and the interest rate for the second tranche will be fixed upon drawdown at an annual rate of the greater of 8.275% or 8.085% plus the 30-day U.S. LIBOR rate. Loan payments are interest-only until February 1, 2017, followed by 30 equal monthly payments of principal and interest through the scheduled maturity date of August 1, 2019 if the second tranche is not drawn. If the second tranche is drawn, the interest-only period continues to August 1, 2017, followed by 24 equal monthly payments. In addition, a final payment equal to 3% of the aggregate amount drawn will be due at maturity or on earlier repayment. If the Company prepays all or a portion of the loans, a prepayment fee of between 1 - 3 % of the principal amount prepaid will also be due depending on the timing of the prepayment. At the initial funding, the Company received net proceeds of $9.7 million after fees and expenses. These fees and expenses are being accounted for as a debt discount and classified within notes payable on the Company’s balance sheet. Consistent with the early adoption of ASU 2015-3, the Company's legal and consulting fees of $0.3 million are presented in the balance sheet as a direct deduction from the carrying amount of the notes liability, consistent with debt discounts. Debt discounts, issuance costs and the final payment are being amortized or accreted as interest expense over the term of the loan using the effective interest method. In connection with the Loan Agreement, the Company agreed to issue to the Lenders warrants to purchase shares of common stock equal to 4% of the amount loaned, divided by the exercise price, which was the average closing price of the common stock for the 10 trading days prior to funding. Accordingly, in connection with the initial funding, the Company issued the Lenders warrants to purchase an aggregate of 97,680 shares at an exercise price of $4.095 per share. The Company recorded $0.3 million for the warrants as debt discount within notes payable and an increase to additional paid-in capital on the Company’s balance sheet (see Note 6). As of September 30, 2015 the warrants remained outstanding and exercisable. The debt discount is being amortized as interest expense over the term of the loan using the effective interest method. The Term Loan Facility is secured by substantially all of the assets of the Company and its subsidiaries, except that the collateral does not include any intellectual property held by the Company, its subsidiaries or any securities in Tranzyme Holdings, ULC held by the Company. However, 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, and customary indemnification obligations and events of default. The Company was in material compliance with all applicable covenants set forth in the Loan Agreement as of September 30, 2015. The Company recorded interest expense related to the Term Loan Facility of $0.2 million for the nine months ended September 30, 2015. The annual effective interest rate on the note payable, including the amortization of the debt discounts and accretion of the final payments, is 11.71% . Future payments under the Loan Agreement as of September 30, 2015 are as follows ( in thousands): Years ending December 31: 2015 (Remaining Three Months) $ 207 2016 828 2017 3,839 2018 4,442 2019 3,261 Total minimum payments 12,577 Less amount representing interest 2,577 Notes payable, gross 10,000 Unamortized discount on notes payable (538 ) Notes Payable, balance 9,462 Current portion of notes payable — Non-current portion of notes payable $ 9,462

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 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. During the three months ended September 30, 2015, the Company sold an aggregate of 540,660 shares of common stock under the Sales Agreement, at an average price of approximately $4.00 per share, for gross proceeds of $2.17 million and net proceeds of $2.05 million after deducting commissions and other transactions costs. As of September 30, 2015, $22.3 million of common stock remained available to be sold under the Sales Agreement, subject to certain conditions specified therein. Subsequently in October 2015, the Company sold 78,326 shares of common stock under the Sales Agreement, at an average price of approximately $3.94 per share for gross proceeds of approximately $0.3 million. Common Stock Warrants In connection with the $10 million initial funding of the Term Loan Facility in July 2015, the Company issued warrants to purchase a total of 97,680 shares of common stock to the Lenders (see Note 5). The exercise price for each warrant is $4.095 per share. The warrants are immediately exercisable, and excluding certain mergers or acquisitions, will expire on July 30, 2025. The warrants were determined to be indexed to the Company's own stock and to meet the criteria to be classified in permanent stockholders' equity on the Company's balance sheet. The fair value of the warrants issued was approximately $0.3 million and was estimated using a Black-Scholes valuation model on a non-recurring basis with the following assumptions: fair value of common stock at issuance of $3.84 ; risk-free interest rate of 2.28% based upon observed risk-free interest rates appropriate for the expected term of the warrants; expected volatility of 87% based on the average historical volatilities of a peer group of publicly-traded companies within the Company’s industry; expected term of ten years, which is the contractual life of the warrants; and a dividend yield of 0% . The allocation of proceeds to the warrants in a relative-fair-value allocation with the related notes payable was also $0.3 million . As of September 30, 2015, all of these warrants remained outstanding and exercisable. Stock-Based Compensation The Company’s stock option activity and related information for the nine months ended September 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 (707,500 ) 707,500 $ 3.73 Stock options canceled 364,591 (364,591 ) $ 6.44 Stock options exercised — — $ — Balance at September 30, 2015 1,299,301 2,429,511 $ 7.00 8.26 $ 293 At September 30, 2015: Vested and expected to vest 2,357,995 $ 7.04 8.23 $ 293 Exercisable 929,839 $ 8.58 6.91 $ 293 The aggregate intrinsic value of options exercised under all option plans was $0 and $2.7 million for the nine months ended September 30, 2015 and 2014, respectively, determined as of the date of option exercise. 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 2,302,308 to 3,602,328 shares. The amendment and restatement of the 2011 Plan was approved by the Company’s stockholders on June 18, 2015. In June 2015, the Company granted 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 nine months ended September 30, 2015, no expense has been recorded for the performance based options. 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. During the three and nine months ended September 30, 2015, $35,000 and $136,000 respectively, of stock compensation expense was recorded pursuant to this modification. The Company recognized stock-based compensation expense as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Research and development $ 192 $ 528 $ 456 $ 1,359 General and administrative 766 921 2,404 2,342 Total $ 958 $ 1,449 $ 2,860 $ 3,701 The above table includes $11,000 and $12,000 of stock compensation expense for the three months and the nine months ended September 30, 2015 related to stock option grants to consultants in 2015. As of September 30, 2015 , there were unrecognized compensation costs of $8.5 million related to stock options and the Company expects to recognize those costs over a weighted average period of 2.44 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 Nine Months Ended 2015 2014 2015 2014 Expected dividend yield — — — — Risk-free interest rates 1.59% - 1.64% 1.85% - 2.00% 1.52% - 2.08% 1.85% - 2.01% Expected life in years 5.52 - 6.08 6.08 5.49 - 8.06 6.08 Expected volatility 78% - 80% 97% 78% - 92% 97% - 102%

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 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 nine months ended September 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 was $0.2 million in income recorded in discontinued operations for the three and nine month periods ended September 30, 2015 that relates to certain foreign research credits received. 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 Nine Months Ended September 30, 2015 2014 2015 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 Settlement of certain restructuring charges — 68 — 68 Other income (expenses) of discontinued operations 219 — 219 (6 ) Recognition of accumulated translation adjustments upon deconsolidation of subsidiary — (10 ) — (16 ) Net income from discontinued operations $ 219 $ 58 $ 219 $ 1,195

License Agreements

License Agreements	9 Months Ended
	Sep. 30, 2015
License Agreements and Acquired Commercialization RIghts [Abstract]
License Agreements	License Agreements Lyric Pharmaceuticals, Inc. In September 2014, the Company entered into an Asset License and Purchase Agreement for the Sale and License of ulimorelin ("TZP-101"), the former lead compound of Tranzyme, to Lyric Pharmaceuticals, Inc. (“Lyric”). Per the terms of the agreement, the Company received an up-front nonrefundable payment of $200,000 for the transfer of intellectual property and materials associated with TZP-101 and the licensing of associated patents with no further ongoing obligations to be performed by the Company. In addition, Lyric is solely responsible for the preclinical and clinical development of all products arising from the further development of TZP-101. If successful, the Company could receive future consideration as a percentage of the proceeds received by Lyric upon its sale or license to a third party, and under certain conditions, clinical and regulatory milestones totaling up to $25.0 million plus royalty payments from potential product sales generated by TZP-101.

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 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 Nine Months Ended September 30, 2015 2014 2015 2014 Numerator Net loss from continuing operations $ (6,793 ) $ (6,661 ) $ (19,666 ) $ (19,086 ) Net income from discontinued operations 219 58 219 1,195 Net loss $ (6,574 ) $ (6,603 ) $ (19,447 ) $ (17,891 ) Denominator Weighted average common shares outstanding used to compute net loss per share, basic and diluted 20,183,939 19,330,888 19,902,815 16,778,047 Net loss per share of common stock, basic and diluted Net loss per share from continuing operations $ (0.34 ) $ (0.34 ) $ (0.99 ) $ (1.14 ) Net income per share from discontinued operations 0.01 — 0.01 0.07 Net loss per share $ (0.33 ) $ (0.34 ) $ (0.98 ) $ (1.07 ) 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 Nine Months Ended 2015 2014 2015 2014 Common stock warrants 997,839 938,882 954,345 938,882 Common stock options 2,340,054 1,985,217 2,134,428 1,827,527 Total 3,337,893 2,924,099 3,088,773 2,766,409 The Company has utilized the control number concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income (loss) from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. Therefore, no dilutive effect has been recognized in the calculation of income from discontinued operations per share for the three and nine months ended September 30, 2015.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 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 Rent expense was $101,000 and $53,000 for the three months ended September 30, 2015 and 2014, respectively and $238,000 and $156,000 for the nine months ended September 30, 2015 and 2014, respectively. The following is a schedule of non-cancellable future minimum lease payments for operating leases as of September 30, 2015 (in thousands): Years ending December 31: 2015 (Remaining Three Months) $ 109 2016 379 2017 15 Total $ 503

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Pursuant to the Company's "at the market" equity program, in October 2015, the Company sold 78,326 shares of common stock under a Sales Agreement, at an average price of approximately $3.94 per share for gross proceeds of approximately $0.3 million.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board issued Accounting Standard Update 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The recognition and measurement guidance for debt issuance costs are not affected by this guidance. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company has chosen to early adopt this guidance and present the legal costs in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discoun
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)	9 Months Ended
	Sep. 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 September 30, 2015 are as follows (in thousands): Balance as of September 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 $ 12,343 $ 12,343 $ — $ — Commercial paper 6,999 — 6,999 — Corporate debt securities 18,118 — 18,118 — Total assets $ 37,460 $ 12,343 $ 25,117 $ — 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)	9 Months Ended
	Sep. 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 September 30, 2015 (in thousands): Maturity (in Years) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Commercial paper 1 or less $ 6,996 $ 3 $ — $ 6,999 Corporate debt securities 1 or less 18,118 — — 18,118 Total investments $ 25,114 $ 3 $ — $ 25,117 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 September 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 Construction in progress 71 — Total property and equipment, gross 192 121 Less: accumulated depreciation (83 ) (60 ) Property and equipment, net $ 109 $ 61
Net book value of acquired intangible assets	The net book value of acquired intangible assets was as follows (in thousands): September 30, December 31, Customer Agreements: 2015 2014 Carrying value $ 410 $ 410 Accumulated amortization (362 ) (239 ) Intangible assets, net $ 48 $ 171 Weighted average remaining life (in years) .25 1.0
Schedule of accrued liabilities	Accrued liabilities were as follows (in thousands): September 30, December 31, 2015 2014 Clinical trials $ 1,419 $ 897 Payroll and related expenses 711 678 Professional services 234 343 Other 131 48 Total $ 2,495 $ 1,966

Notes Payable Future Payments (

Notes Payable Future Payments (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of Long Term Debt	Future payments under the Loan Agreement as of September 30, 2015 are as follows ( in thousands): Years ending December 31: 2015 (Remaining Three Months) $ 207 2016 828 2017 3,839 2018 4,442 2019 3,261 Total minimum payments 12,577 Less amount representing interest 2,577 Notes payable, gross 10,000 Unamortized discount on notes payable (538 ) Notes Payable, balance 9,462 Current portion of notes payable — Non-current portion of notes payable $ 9,462

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 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 nine months ended September 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 (707,500 ) 707,500 $ 3.73 Stock options canceled 364,591 (364,591 ) $ 6.44 Stock options exercised — — $ — Balance at September 30, 2015 1,299,301 2,429,511 $ 7.00 8.26 $ 293 At September 30, 2015: Vested and expected to vest 2,357,995 $ 7.04 8.23 $ 293 Exercisable 929,839 $ 8.58 6.91 $ 293
Stock-based compensation expense	The Company recognized stock-based compensation expense as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Research and development $ 192 $ 528 $ 456 $ 1,359 General and administrative 766 921 2,404 2,342 Total $ 958 $ 1,449 $ 2,860 $ 3,701
Stock option valuation assumptions	The fair value of all stock options granted was estimated using the following weighted-average assumptions: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Expected dividend yield — — — — Risk-free interest rates 1.59% - 1.64% 1.85% - 2.00% 1.52% - 2.08% 1.85% - 2.01% Expected life in years 5.52 - 6.08 6.08 5.49 - 8.06 6.08 Expected volatility 78% - 80% 97% 78% - 92% 97% - 102%

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended September 30, 2015 2014 2015 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 Settlement of certain restructuring charges — 68 — 68 Other income (expenses) of discontinued operations 219 — 219 (6 ) Recognition of accumulated translation adjustments upon deconsolidation of subsidiary — (10 ) — (16 ) Net income from discontinued operations $ 219 $ 58 $ 219 $ 1,195

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended September 30, 2015 2014 2015 2014 Numerator Net loss from continuing operations $ (6,793 ) $ (6,661 ) $ (19,666 ) $ (19,086 ) Net income from discontinued operations 219 58 219 1,195 Net loss $ (6,574 ) $ (6,603 ) $ (19,447 ) $ (17,891 ) Denominator Weighted average common shares outstanding used to compute net loss per share, basic and diluted 20,183,939 19,330,888 19,902,815 16,778,047 Net loss per share of common stock, basic and diluted Net loss per share from continuing operations $ (0.34 ) $ (0.34 ) $ (0.99 ) $ (1.14 ) Net income per share from discontinued operations 0.01 — 0.01 0.07 Net loss per share $ (0.33 ) $ (0.34 ) $ (0.98 ) $ (1.07 )
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 Nine Months Ended 2015 2014 2015 2014 Common stock warrants 997,839 938,882 954,345 938,882 Common stock options 2,340,054 1,985,217 2,134,428 1,827,527 Total 3,337,893 2,924,099 3,088,773 2,766,409

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 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 September 30, 2015 (in thousands): Years ending December 31: 2015 (Remaining Three Months) $ 109 2016 379 2017 15 Total $ 503

The Company (Details)

The Company (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Losses incurred since inception	$ (124,358)	$ (104,911)

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Value) (Details) - Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 37,460	$ 50,211
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	12,343	9,171
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	25,117	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	12,343	9,171
Money Market Funds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	12,343	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	6,999	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	6,999	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	18,118	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	18,118	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	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 25,114	$ 41,067
Unrealized Gains	3	2
Unrealized Losses	0	(29)
Estimated Fair Value	25,117	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	6,996	3,748
Unrealized Gains	3	2
Unrealized Losses	0	0
Estimated Fair Value	6,999	3,750
Short-term investments [Member] | Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	18,118	33,379
Unrealized Gains	0	0
Unrealized Losses	0	(17)
Estimated Fair Value	$ 18,118	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		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 192		$ 192		$ 121
Less accumulated depreciation	(83)		(83)		(60)
Property and equipment, net	109		109		61
Depreciation expense	6	$ 8	23	$ 28
Amortization of intangibles	41	$ 41	123	$ 123
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
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 71		$ 71		$ 0

Balance Sheet Components (Acqui

Balance Sheet Components (Acquired Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Balance Sheet Components [Abstract]
Carrying value	$ 410		$ 410		$ 410
Accumulated amortization	(362)		(362)		(239)
Intangible assets, net	48		$ 48		$ 171
Weighted average remaining life (in years)			3 months		1 year
Amortization of intangibles	$ 41	$ 41	$ 123	$ 123

Balance Sheet Components (Accru

Balance Sheet Components (Accrued Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Balance Sheet Components [Abstract]
Clinical trials	$ 1,419	$ 897
Payroll and related expenses	711	678
Professional services	234	343
Other	131	48
Accrued liabilities	$ 2,495	$ 1,966

Notes Payable (Narrative) (Deta

Notes Payable (Narrative) (Details) - USD ($)	Jul. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Debt Instrument [Line Items]
Fair value assumptions, exercise price	$ 4.095
Fair value adjustment of warrants	$ 300,000
Oxford Finance LLC and Silicon Valley Bank [Member]
Debt Instrument [Line Items]
Interest expense		$ 200,000
Debt instrument, interest rate, effective percentage			11.71%
Notes Payable, Other Payables [Member] | Secured Debt [Member] | Oxford Finance LLC and Silicon Valley Bank [Member]
Debt Instrument [Line Items]
Debt instrument, maximum borrowing capacity	20,000,000
Debt instrument, face amount	10,000,000
Debt instrument, unused borrowing capacity, amount	10,000,000
Proceeds from sale of equity	$ 15,000,000
Debt instrument, interest rate, stated percentage	8.275%
Debt instrument, periodic payment terms, balloon payment to be paid, percentage of funded borrowings	3.00%
Proceeds from debt, net of issuance costs	$ 9,700,000
Legal and consulting fee	$ 300,000
Notes Payable, Other Payables [Member] | Secured Debt [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, early extinguishment of debt, prepayment fee	100.00%
Notes Payable, Other Payables [Member] | Secured Debt [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, early extinguishment of debt, prepayment fee	300.00%
Notes Payable, Other Payables [Member] | Secured Debt [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	8.085%
Warrant [Member]
Debt Instrument [Line Items]
Percentage of amount loaned, common stock	4.00%
Class of warrant or right, number of securities called by each warrant or right	97,680
Fair value assumptions, exercise price	$ 4.095
Fair value adjustment of warrants		$ 300,000

Notes Payable (Schedule of Long

Notes Payable (Schedule of Long Term Debt Instruments) (Details) - Oxford Finance LLC and Silicon Valley Bank [Member] - Secured Debt [Member] - Notes Payable, Other Payables [Member] $ in Thousands	Jul. 30, 2015USD ($)
Debt Instrument [Line Items]
2,015	$ 207
2,016	828
2,017	3,839
2,018	4,442
2,019	3,261
Total minimum payments	12,577
Less amount representing interest	2,577
Notes payable, gross	10,000
Unamortized discount on notes payable	(538)
Notes Payable, balance	9,462
Current portion of notes payable	0
Non-current portion of notes payable	$ 9,462

Stockholders' Equity (Stock Opt

Stockholders' Equity (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Shares Available for Grant
Shares available for grant	342,210
Stock options granted	(707,500)
Stock options cancelled	364,591
Shares available for grant	1,299,301	342,210
Stock Options Outstanding
Beginning balance, options	2,086,602
Stock options granted	(707,500)
Stock options cancelled	(364,591)
Stock options exercised	0
Ending balance, options	2,429,511	2,086,602
Stock options vested and expected to vest	2,357,995
Stock options exercisable	929,839
Weighted-average Exercise Price Per Share
Weighted-average exercise price, options outstanding	$ 8.01
Grants in period	3.73
Cancelled in period	6.44
Exercises in period	0
Weighted-average exercise price, options outstanding	7	$ 8.01
Weighted-average exercise price, options exercisable	7.04
Weighted-average exercise price, options vested and expected to vest	$ 8.58
Weighted-average remaining contractual life, options outstanding	8 years 3 months 4 days	8 years 7 months 17 days
Weighted-average remaining contractual life, options vested and expected to vest	8 years 2 months 23 days
Weighted-average remaining contractual life, options exercisable	6 years 10 months 28 days
Aggregate Intrinsic value, options outstanding	$ 293	$ 871
Aggregate Intrinsic value, options vested and expected to vest	293
Aggregate Intrinsic value, options exercisable	$ 293
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		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 958	$ 1,449	$ 2,860	$ 3,701
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	192	528	456	1,359
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 766	$ 921	$ 2,404	$ 2,342

Stockholders' Equity (Valuation

Stockholders' Equity (Valuation Assumptions) (Details) - Stock Options [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 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		97.00%
Minimum [Member]
Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate	1.59%	1.85%	1.52%	1.85%
Expected life in years	5 years 6 months 7 days		5 years 5 months 27 days
Expected volatility	78.00%		78.00%	97.00%
Maximum [Member]
Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate	1.64%	2.00%	2.08%	2.01%
Expected life in years	6 years 29 days		8 years 22 days
Expected volatility	80.00%		92.00%	102.00%

Stockholders' Equity (Additiona

Stockholders' Equity (Additional Information) (Details) - USD ($)

Jul. 30, 2015

Jun. 18, 2015

Oct. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Sep. 30, 2014

Sep. 30, 2015

Sep. 30, 2014

May. 15, 2015

Apr. 23, 2015

Apr. 22, 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

540,660

Common stock, par value, average

$ 4

$ 4

Proceeds from issuance of common stock, net of issuance costs

$ 2,200,000

Proceeds from sale of common stock, net of underwriting discounts and commissions and offering expenses

2,100,000

$ 2,480,000

$ 23,439,000

Warrants to purchase shares of common stock

$ 97,680

Fair value assumptions, exercise price

$ 4.095

Fair value adjustment of warrants

$ 300,000

Share price

$ 3.84

Risk free interest rate

2.28%

Expected volatility

87.00%

Dividend rate

0.00%

Aggregate intrinsic value of options exercised

0

2,700,000

Stock-based compensation expense

$ 958,000

$ 1,449,000

$ 2,860,000

$ 3,701,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

707,500

Common stock, shares issued

20,424,885

20,424,885

19,747,362

Stock Options [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Period for recognizing costs

2 years 5 months 9 days

Compensation costs not yet recognized

$ 8,500,000

$ 8,500,000

Consultant Stock Option [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expense

11,000

12,000

Cowen [Member] | At the Market Issuance Sales Agreement [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Common stock, value outstanding

22,300,000

22,300,000

Consultant [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

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

Director [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expense

35,000

136,000

Period for recognizing costs

8 years 21 days

Oxford Finance LLC and Silicon Valley Bank [Member] | Secured Debt [Member] | Line of Credit [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Fair value of term loan facility

$ 10,000,000

Warrant [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Fair value assumptions, exercise price

$ 4.095

Fair value adjustment of warrants

$ 300,000

$ 300,000

2011 Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized

3,602,328

2,302,308

Subsequent Event [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Common stock, par value, average

$ 3.94

Proceeds from issuance of common stock, net of issuance costs

$ 300,000

Common stock, shares issued

78,326

Discontinued Operations (Detail

Discontinued Operations (Details) - Tranzyme Pharma Inc. [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 13, 2013
Restructuring Cost and Reserve [Line Items]
Net gain on disposal of assets	$ 0	$ 0	$ 0	$ 1,149
Income recorded in discontinued operations	$ 219	$ 0	$ 219	$ (6)
Customer Agreements And Intellectual Property [Member]
Restructuring Cost and Reserve [Line Items]
Sale price for discontinued operations					$ 4,000

Discontinued Operations (Discon

Discontinued Operations (Discontinued Operations in the Company's Consolidated Statements of Operations and Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net loss from discontinued operations	$ 219	$ 58	$ 219	$ 1,195
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	0	0	1,149
Restructuring Reserve, Settled without Cash	0	68	0	68
Other income (expense) of discontinued operations	219	0	219	(6)
Recognition of accumulated translation adjustments upon deconsolidation of subsidiary	0	(10)	0	(16)
Net loss from discontinued operations	219	58	219	1,195
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	0	0	(2,053)
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	0	0	(356)
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	0	0	(442)
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	$ 0	$ 0	$ 4,000

License Agreements (Details)

License Agreements (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
License Agreements and Acquired Commercialization RIghts [Abstract]
Licensing revenue	$ 200,000	$ 0	$ 200,000	$ 0	$ 200,000
Contingent consideration asset range of outcomes value high		$ 25,000,000		$ 25,000,000

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		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator
Net loss from continuing operations	$ (6,793)	$ (6,661)	$ (19,666)	$ (19,086)
Net income from discontinued operations	219	58	219	1,195
Net loss	$ (6,574)	$ (6,603)	$ (19,447)	$ (17,891)
Denominator
Weighted average common shares outstanding used to compute net loss per share, basic and diluted	20,183,939	19,330,888	19,902,815	16,778,047
Net loss per share of common stock, basic and diluted
Net loss per share from continuing operations	$ (0.34)	$ (0.34)	$ (0.99)	$ (1.14)
Net income per share from discontinued operations	0.01	0	0.01	0.07
Net loss per share, basic and diluted	$ (0.33)	$ (0.34)	$ (0.98)	$ (1.07)

Net Loss Per Share (Schedule 41

Net Loss Per Share (Schedule of Antidilutive Securities Excluded From Earnings Per Share) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	3,337,893	2,924,099	3,088,773	2,766,409
Warrant [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	997,839	938,882	954,345	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	2,340,054	1,985,217	2,134,428	1,827,527

Commitments and Contingencies42

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 101	$ 53	$ 238	$ 156
Future Minimum Payments Due by Fiscal Year Maturity [Abstract]
2015 (Remaining Three Months)	109		109
2,016	379		379
2,017	15		15
Total	$ 503		$ 503

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Oct. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Subsequent Event [Line Items]
Common stock, shares issued		20,424,885	19,747,362
Common stock, par value, average		$ 4
Proceeds from issuance of common stock, net of issuance costs		$ 2.2
Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock, shares issued	78,326
Common stock, par value, average	$ 3.94
Proceeds from issuance of common stock, net of issuance costs	$ 0.3