Humanigen (HGENQ) 10-Q 1 Sep 16 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Aug. 30, 2016
Document and Entity Information
Entity Registrant Name	KALOBIOS PHARMACEUTICALS INC
Entity Central Index Key	1,293,310
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		14,897,993
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 7,650	$ 10,923
Marketable securities		29,790
Restricted cash, short-term	7,802
Prepaid expenses and other current assets	600	1,532
Total current assets	16,052	42,245
Property and equipment, net	366	414
Restricted cash, long-term	242	193
Other assets	81	125
Total assets	16,741	42,977
Current liabilities:
Accounts payable	1,018	1,822
Accrued compensation	982	1,400
Deferred rent, short-term	50	16
Accrued research and clinical liabilities	2,391	3,470
Notes payable, net of discount	7,172	10,928
Financing derivative	341	89
Other accrued liabilities	381	328
Total current liabilities	12,335	18,053
Deferred rent, long-term	268	311
Total liabilities	12,603	18,364
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value: 85,000,000 shares and 85,000,000 shares authorized at September 30, 2015 and December 31, 2014, respectively; 4,123,921 and 4,124,004 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	4	4
Additional paid-in capital	204,609	202,830
Accumulated other comprehensive loss		(8)
Accumulated deficit	(200,475)	(178,213)
Total stockholders' equity	4,138	24,613
Total liabilities and stockholders' equity	$ 16,741	$ 42,977

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	85,000,000	85,000,000
Common stock, shares issued	4,123,921	4,124,004
Common stock, shares outstanding	4,123,921	4,124,004

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Operating expenses:
Research and development	$ 3,845	$ 5,085	$ 13,082	$ 19,496
General and administrative	2,359	2,624	8,095	7,907
Total operating expenses	6,204	7,709	21,177	27,403
Loss from operations	(6,204)	(7,709)	(21,177)	(27,403)
Other (expense) income:
Interest expense	(223)	(348)	(755)	(898)
Interest income	3	24	29	69
Change in fair market value of financing derivative	(114)		(252)
Other expense, net	(62)	(30)	(107)	(53)
Net loss	(6,600)	(8,063)	(22,262)	(28,285)
Other comprehensive income:
Net unrealized gains (losses) on marketable securities			8	(2)
Comprehensive loss	$ (6,600)	$ (8,063)	$ (22,254)	$ (28,287)
Basic and diluted net loss per common share	$ (1.60)	$ (1.96)	$ (5.40)	$ (6.86)
Weighted average common shares outstanding used to calculate basic and diluted net loss per common share	4,124,026	4,122,700	4,124,096	4,122,051

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities:
Net loss	$ (22,262)	$ (28,285)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	144	254
Loss on disposal of property and equipment	39
Noncash interest expense	164	160
Financing derivative	252
Amortization of premium on marketable securities	130	377
Stock based compensation expense	913	1,484
Modification of stock options related to executive retirement	389
Modification of stock options related to restructuring activities	479
Changes in operating assets and liabilities:
Prepaid expenses and other assets	940	(6)
Accounts payable	(804)	(2,277)
Accrued compensation	(418)	289
Accrued research and clinical liabilities	(1,079)	(1,324)
Other liabilities	53	82
Deferred rent	(9)	169
Net cash used in operating activities	(21,069)	(29,077)
Investing activities:
Purchase of marketable securities	(3,703)	(49,902)
Proceeds from maturities of marketable securities	33,371	34,190
Purchases of property and equipment	(136)	(317)
Proceeds from disposal of property and equipment	1
Change in restricted cash	7	12
Net cash provided by (used in) investing activities	29,540	(16,017)
Financing activities:
Increase in restricted cash for notes payable	(8,291)
Proceeds from issuances of notes payable		5,000
Proceeds from issuance of common stock		60
Principal payments under notes payable	(3,452)	(2,916)
Settlement of fractional shares upon reverse stock split	(1)
Net cash (used in) provided by financing activities	(11,744)	2,144
Net decrease in cash and cash equivalents	(3,273)	(42,950)
Cash and cash equivalents, beginning of period	10,923	54,220
Cash and cash equivalents, end of period	7,650	11,270
Supplemental cash flow disclosure:
Cash paid for interest	564	725
Supplemental disclosure of non-cash financing activities:
Principal payments under notes payable from restricted cash	$ 432

Nature of Operations

Nature of Operations	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	1. Nature of Operations Description of the Business KaloBios Pharmaceuticals, Inc. (the “Company”) is a biopharmaceutical company focused on developing medicines for patients with neglected and rare diseases, with an ancillary focus on pediatric conditions, and on executing its Responsible Pricing Model in the commercialization of the Company’s product candidates that may be approved. The Company’s lead product candidate is benznidazole for the treatment of Chagas disease, a parasitic illness that can lead to long-term heart, intestinal and neurological problems. As more fully described in note 10, the Company acquired certain worldwide rights to benznidazole on June 30, 2016. The Company is developing one of its proprietary monoclonal antibodies, lenzilumab (formerly known as KB003), for the treatment of chronic myelomonocytic leukemia and potentially for the treatment of juvenile myelomonocytic leukemia, both of which are rare hematologic cancers with high unmet medical need. The Company is exploring development of another of its proprietary monoclonal antibodies, ifabotuzumab (formerly known as KB004), for the treatment of certain rare solid and hematologic cancers. With a focus on neglected, rare, and orphan diseases, the Company believes that it has the opportunity to benefit from various regulatory incentives, such as orphan drug exclusivity, breakthrough therapy designation, fast track designation, accelerated approval, priority review and priority review vouchers (“PRV”), where available, that provide for certain periods of exclusivity, expedited review and/or other benefits. The Company was incorporated on March 15, 2000 in California and reincorporated as a Delaware corporation in September 2001. All of the Company’s assets are located in California. Liquidity and Going Concern The Company has historically incurred significant losses and had an accumulated deficit of $200.5 million as of September 30, 2015. The Company has financed its operations primarily through the sale of equity securities, grants and the payments received under its agreements with Novartis Pharma AG and Sanofi Pasteur S.A. (“Sanofi”). The Company completed its initial public offering in February 2013. To date, none of the Company’s product candidates have been approved for sale and therefore the Company has not generated any revenue from product sales. Management expects operating losses to continue for the foreseeable future. As a result, the Company will continue to require additional capital through equity offerings, debt financing and/or payments under new or existing licensing or collaboration agreements. If sufficient funds are not available on acceptable terms when needed, the Company could be required to significantly reduce its operating expenses and delay, reduce the scope of, or eliminate one or more of its development programs. The Company’s ability to access capital when needed is not assured and, if not achieved on a timely basis when needed, could materially harm its business, financial condition and results of operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Condensed Consolidated Financial Statements for the quarterly period ended September 30, 2015 were prepared on the basis of a going concern, which contemplates that the Company will be able to realize assets and discharge liabilities in the normal course of business. The ability of the Company to meet its total liabilities of $12.6 million at September 30, 2015, and to continue as a going concern is dependent upon the availability of future funding. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Basis of Presentation The accompanying interim unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and on a basis consistent with the annual consolidated financial statements and include all adjustments necessary for the presentation of the Company’s condensed consolidated financial position, results of operations and cash flows for the periods presented. The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. These financial statements have been prepared on a basis that assumes that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The December 31, 2014 Condensed Consolidated Balance Sheet was derived from the audited financial statements but does not include all disclosures required by GAAP. These interim financial results are not necessarily indicative of the results to be expected for the year ending December 31, 2015, or for any other future annual or interim period. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in the 2014 Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates. The Company believes judgment is involved in determining the valuation of the financing derivative, the fair value-based measurement of stock-based compensation, accruals and warrant valuations. The Company evaluates its estimates and assumptions as facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from these estimates and assumptions, and those differences could be material to the Condensed Consolidated Financial Statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2014 Annual Report.

Potentially Dilutive Securities

Potentially Dilutive Securities	9 Months Ended
	Sep. 30, 2015
Potentially Dilutive Securities
Potentially Dilutive Securities	3. Potentially Dilutive Securities The Company’s potential dilutive securities, which include unvested stock options and warrants, have been excluded from the computation of diluted net loss per share as the effect of including those securities would be to reduce the net loss per share and be antidilutive. Therefore, the denominator used to calculate both basic and diluted net loss per common share is the same in all periods presented. The following outstanding potentially dilutive securities have been excluded from the computations of diluted net loss per common share: As of September 30, 2015 2014 Options to purchase common stock 527,120 336,102 Unvested restricted stock units to purchase common stock 3,750 — ESPP contributions to purchase common stock 375 430 Warrants to purchase common stock 11,067 11,067 542,312 347,599

Investments

Investments	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Investments	4. Investments At September 30, 2015, the amortized cost and fair value of investments, with gross unrealized gains and losses, were as follows: Gross Gross Amortized Unrealized Unrealized (in thousands) Cost Gains Losses Fair Value Money market funds $ 7,396 $ — $ — $ 7,396 Total investments $ 7,396 $ — $ $ 7,396 Reported as: Cash and cash equivalents $ 7,154 Restricted cash, long-term 242 Total investments $ 7,396 At December 31, 2014, the amortized cost and fair value of investments, with gross unrealized gains and losses, were as follows: Gross Gross Amortized Unrealized Unrealized (in thousands) Cost Gains Losses Fair Value Money market funds $ 9,663 $ — $ — $ 9,663 Federal agency securities 13,774 — (4 ) 13,770 Commercial paper 1,499 1 — 1,500 Corporate debt securities 14,525 — (5 ) 14,520 Total investments $ 39,461 $ 1 $ (9 ) $ 39,453 Reported as: Cash and cash equivalents $ 9,470 Marketable securities 29,790 Restricted cash 193 Total investments $ 39,453 The Company realized a net loss from the sale of marketable securities of $8,000 for the three and nine months ended September 30, 2015. There were no realized gains or losses from the sale of marketable securities for the three and nine months ended September 30, 2014.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	5. Fair Value of Financial Instruments Cash, accounts payable and accrued liabilities are carried at cost, which approximates fair value given their short-term nature. Marketable securities and cash equivalents are carried at fair value. The fair value of financial instruments reflects the amounts that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy is based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable, and the third is considered unobservable, as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than those included in Level 1 that are directly or indirectly observable, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities 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. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company measures the fair value of financial assets and liabilities using the highest level of inputs that are reasonably available as of the measurement date. The following tables summarize the fair value of financial assets and liabilities (marketable securities and the financing derivative) that are measured at fair value and the classification by level of input within the fair value hierarchy: Fair Value Measurements as of September 30, 2015 (in thousands) Level 1 Level 2 Level 3 Total Investments: Money market funds $ 7,396 $ — $ — $ 7,396 Total assets measured at fair value $ 7,396 $ $ — $ 7,396 Financing derivative $ — $ — $ 341 $ 341 Total liabilities measured at fair value $ — $ — $ 341 $ 341 Fair Value Measurements as of December 31, 2014 (in thousands) Level 1 Level 2 Level 3 Total Investments: Money market funds $ 9,663 $ — $ — $ 9,663 Federal agency securities — 13,770 — 13,770 Commercial paper — 1,500 — 1,500 Corporate debt securities — 14,520 — 14,520 Total assets measured at fair value $ 9,663 $ 29,790 $ — $ 39,453 Financing derivative $ — $ — $ 89 $ 89 Total liabilities measured at fair value $ — $ — $ 89 $ 89 The Company’s Level 2 investments include U.S. government-backed securities, commercial paper and corporate debt securities that are valued based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. The Company did not have any Level 2 investments as of September 30, 2015. In 2014, the Company recorded a financing derivative liability resulting from an embedded derivative related to the prepayment feature of its loan and security agreement with MidCap Financial SBIC LP, which was entered into by the Company in September 2012 and subsequently amended (the “Loan and Security Agreement”). At September 30, 2015, the Company re-measured the financing derivative liability as $341,000, resulting in a loss of $114,000 and $252,000 for the three and nine month periods ended September 30, 2015. The loss is included in Change in fair value of financing derivative in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss. The fair value of this derivative was determined using Level 3 inputs, or significant unobservable inputs. The value of the financing derivative was determined by comparing the difference between the fair value of the notes payable with and without the financing derivative by calculating the respective present values from future cash flows using a 14% discount rate, adjusted for the probability of the occurrence of an event of default under the Loan and Security Agreement. The 14% discount rate assumption was based on an effective borrowing rate under the current circumstances considering the quoted borrowing rate for the Company and the imputed fair value of any additional financial instruments that may be required to be extended to the lender in order to obtain such debt financing. The probability of the occurrence of an event of default under the Loan and Security Agreement was based on management’s judgment. Refer to Note 6 for additional details regarding the Loan and Security Agreement. The following table presents changes in financial instruments measured at fair value using Level 3 inputs: Fair Value (in thousands) Balance as of December 31, 2014 $ 89 Loss on re-measurement of the financing derivative liability 3 Balance as of March 31, 2015 92 Loss on re-measurement of the financing derivative liability 135 Balance as of June 30, 2015 227 Loss on re-measurement of the financing derivative liability 114 Balance as of September 30, 2015 $ 341 The estimated fair value of the notes payable as of September 30, 2015, based on current market rates for similar borrowings, as measured using Level 3 inputs, approximates the carrying amount as presented on the Condensed Consolidated Balance Sheets.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Notes Payable	6. Notes Payable Loan and Security Agreement In August 2015, the Company entered into Amendment No. 2 to the Loan and Security Agreement, whereby the Company agreed to maintain, in a separate account with a financial institution (held in the Company’s name), an amount equal to the aggregate of the remaining future principal, interest and exit fee due under the Loan and Security Agreement, equating to $8.3 million as of the date of Amendment No. 2. Under the terms of the Loan and Security Agreement, as amended, MidCap Financial was permitted to draw payments from this account as they become due, and upon such draws, there would be a corresponding reduction in the amount owed to MidCap Financial by the Company. MidCap Financial had exclusive control to withdraw funds from that account at any time. The account was to be maintained either until the debt has been repaid in full, or until MidCap Financial determined that the Company has satisfied certain capital requirements related to the Company’s future operating plans. As of September 30, 2015, the Company had $7.8 million in this restricted account. In November 2015, the Company elected to exercise its prepayment right to repay the loan in full and paid MidCap Financial $6.6 million in full settlement of the remaining outstanding principal balance, accrued interest, the exit fee and a reduced prepayment fee of 1%. The prepayment resulted in a gain on extinguishment of debt of $61,000 in the fourth quarter of 2015. As of September 30, 2015, the Company classified the loan as a current liability. Refer to Note 10 for additional details regarding the repayment of the Loan and Security Agreement.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Contractual Obligations and Commitments As of September 30, 2015, there were no material changes to the Company’s contractual obligations from those set forth in the 2014 Annual Report. Guarantees and Indemnifications The Company has certain agreements with service providers with which it does business that contain indemnification provisions pursuant to which the Company typically agrees to indemnify the party against certain types of third-party claims. The Company accrues for known indemnification issues when a loss is probable and can be reasonably estimated. The Company would also accrue for estimated incurred but unidentified indemnification issues based on historical activity. As the Company has not incurred any indemnification losses to date, there were no accruals for or expenses related to indemnification issues for any period presented.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity	8. Stockholders’ Equity 2012 Equity Incentive Plan Under the Company’s 2012 Equity Incentive Plan, the Company may grant shares, stock units, stock appreciation rights, performance cash awards and/or options to employees, directors, consultants, and other service providers. For options, the per share exercise price may not be less than the fair market value of a Company common share on the date of grant. Awards generally vest and become exercisable over four years and expire 10 years from the date of grant. A summary of stock option activity for the nine months ended September 30, 2015 under all of the Company’s options plans is as follows: Weighted Average Exercise Options Price Outstanding at December 31, 2014 334,686 $ 34.00 Granted 296,045 3.59 Exercised — — Cancelled (forfeited) (96,158 ) 24.55 Cancelled (expired) (7,453 ) 18.22 Outstanding at September 30, 2015 527,120 $ 18.84 The weighted average fair value of options granted during the three months and nine months ended September 30, 2015 was $1.90 and $2.23 per share, respectively. The Company valued the options granted using the Black-Scholes options pricing model and the following weighted-average assumption terms for the three months and nine months ended September 30, 2015: Three Months Nine Months Ended Exercise price $ 3.23 $ 3.59 Market value $ 3.23 $ 3.59 Risk-free rate 1.62 1.61 Expected term 5.30 5.81 Expected volatility 69 % 70 % Dividend yield - - In addition, 3,750 restricted stock units were issued as of September 30, 2015. 2012 Employee Stock Purchase Plan The Employee Stock Purchase Plan (the “ESPP”) provided eligible employees with the opportunity to acquire an ownership interest in the Company through periodic payroll deductions, based on a six-month look-back period, at a price equal to the lesser of 85% of the fair market value of the ordinary shares at either the beginning of the offering period, or the fair market value on the purchase date. The ESPP was structured as a qualified employee stock purchase plan under Section 423 and a qualified pension, profit sharing or stock bonus plan under Section 401(a) of the Internal Revenue Code of 1986 and was not subject to the provisions of the Employee Retirement Income Security Act of 1974. There were 21,058 shares initially authorized for issuance under the plan, and the first offering period commenced on June 1, 2014 and ended on October 31, 2014. The second offering period commenced on November 1, 2014 and ended on April 30, 2015. There were 583 and 375 shares issued under the plan on October 31, 2014 and April 30, 2015, respectively. Under the terms of the ESPP, offerings subsequent to the second offering were to commence on May 1 and November 1 and end on April 30 and October 31 each year. As of September 30, 2015, there were 20,100 shares available for grant under the ESPP. On May 3, 2016, the ESPP was terminated. Stock-Based Compensation The Company recorded stock-based compensation expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss as follows: Three Months Nine Months Ended September 30, Ended September 30, (in thousands) 2015 2014 2015 2014 General and administrative $ 137 $ 282 $ 466 $ 755 Research and development 134 184 447 729 $ 271 $ 466 $ 913 $ 1,484 During the nine months ended September 30, 2015, the Company recorded charges of $389,000 and $479,000 relating to the fair value of stock options that were modified due to executive retirement and restructuring activities, and classified $484,000 and $384,000, as general and administrative expenses and research and development expenses, respectively. At September 30, 2015, the Company had $1.4 million of total unrecognized stock-based compensation expense, net of estimated forfeitures, related to outstanding stock options that will be recognized over a weighted-average period of 1.4 years. Reverse Stock Split On July 13, 2015, the Company effected a one-for-eight reverse split of its outstanding common stock pursuant to an amendment to the Company’s certificate of incorporation. As a result of the reverse stock split, each eight shares of the Company’s common stock were combined into one share of common stock. The reverse stock split was effective with respect to stockholders of record at the close of business on July 13, 2015, and trading of the Company’s common stock on the Nasdaq Global Market began on a split-adjusted basis on July 14, 2015. Holders of common stock who would have otherwise received fractional shares of the Company’s common stock pursuant to the reverse split received cash in lieu of the fractional share. The reverse split reduced the total number of shares of the Company’s common stock outstanding from approximately 33.0 million shares to approximately 4.1 million shares. In addition, the number of shares of common stock subject to outstanding options, restricted stock units and warrants issued by the Company and the number of shares reserved for future issuance under the Company’s stock plans were reduced by a factor of eight to proportionately reflect the reverse split, and per share exercise prices were increased by a factor of eight. The reverse split was accounted for retroactively and is reflected in the Company’s common stock, warrant, stock option and restricted stock activity as of and for the three and nine months ended September 30, 2015 and 2014. Unless stated otherwise, all share data in the financial statements and accompanying notes have been adjusted, as appropriate, to reflect the reverse split. The par value per share and number of authorized shares were not adjusted as a result of the reverse stock split.

Restructuring Charges

Restructuring Charges	9 Months Ended
	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
Restructuring Charges	9. Restructuring Charges Restructuring charges incurred during the nine months ended September 30, 2015 primarily consist of severance and other post-termination benefit costs resulting from the cost reduction program implemented by the Company in January 2015. These activities primarily consisted of a 20% reduction of the Company’s workforce. A summary of the activity is presented below: (in thousands) Contract Salaries and R&D Salaries and G&A Total Balance as of December 31, 2014 $ 1,185 $ — $ — $ 1,185 Accrued — 522 82 604 Paid (479 ) (257 ) — (736 ) Balance as of March 31, 2015 $ 706 $ 265 $ 82 $ 1,053 Accrued — 57 122 179 Paid (135 ) (142 ) — (277 ) Balance as of June 30, 2015 $ 571 $ 180 $ 204 $ 955 Accrued — — — — Adjustments (78 ) — — (78 ) Paid (493 ) (148 ) (136 ) (777 ) Balance as of September 30, 2015 $ - $ 32 $ 68 $ 100 As disclosed in Note 8, during the nine months ended September 30, 2015, the Company recorded stock based compensation expense of $479,000 related to the fair value of stock options of former employees which were modified such that they did not expire upon termination. The Company classified $95,000 and $384,000 as general and administrative expenses and research and development expenses, respectively. As of December 31, 2014, the Company accrued certain contract termination costs of $1.2 million relating to manufacturing activity that no longer had identifiable future benefit to the Company. During the second quarter ended June 30, 2015, accrued liabilities were reduced by $312,000 related to research-related manufacturing expenses incorrectly recorded in 2014. The Company analyzed and assessed the effect of this adjustment on previously reported annual and interim periods in 2014 as well as the impact of the benefit from the reversal of these expenses to the results of operations for the nine months ended September 30, 2015. Following this analysis and taking into account both quantitative and qualitative factors, the Company believes that the uncorrected out-of-period costs are not material to the respective periods in which the errors occurred.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	10. Subsequent Events Restructuring Expenses In November 2015, the Company issued a press release announcing a board-approved restructuring plan to reduce costs and extend the cash runway in order to allow the Company to evaluate strategic alternatives for the products and the Company. As part of the restructuring plan, the Company elected to exercise its right to prepay the Loan and Security Agreement and paid MidCap Financial $6.6 million in full settlement of the remaining outstanding principal balance, accrued interest, the exit fee and a reduced prepayment fee of 1%. In addition, the Company undertook a reduction in force that eliminated the positions of 17 employees, or more than 60% of the Company’s workforce, which resulted in restructuring charges of approximately $ 1.4 Change of Control, Severance Costs and Private Placement In November 2015, the Company underwent a change of control, when an investor group acquired an aggregate of 2,885,000 shares of the Common Stock in open market transaction s, In connection with that change in control, on November 19, 2015, certain former board members and executives left the Company. The severance costs associated with the departure of the executives amounted to approximately $1.6 million. The Company classified $1.2 million and $0.4 million of the severance costs as general and administrative expenses and research and development expenses, respectively, to be recorded in the fourth quarter of 2015. On December 3, 2015, the Company entered into a Securities Purchase Agreement with certain investors (the “Purchasers”) relating to a private placement of up to an aggregate 511,596 shares of common stock at a purchase price of $29.32 per share, or up to $15 million (the “Private Placement”). On December 15, 2015, the Securities Purchase Agreement was amended, resetting the share price for all Purchasers other than those Purchasers who were directors, officers, employees or consultants of the Company to $24.855. Upon closing of the Private Placement, the Company issued to the Purchasers 326,698 shares of common stock for an aggregate purchase price of $8.2 million. On December 4, 2015, the Company issued a warrant to purchase up to an aggregate of 125,000 shares of common stock at $29.32 per share exercisable for a period of five years. The warrant was issued in relation to a proposed November 18, 2015 financing the Company elected not to pursue. On December 3, 2015, the Company entered into a Services Agreement (the “Services Agreement”) with Turing Pharmaceuticals LLC (“Turing”), a life sciences company. The Company’s then Chairman and Chief Executive Officer, Martin Shkreli, was also the chief executive officer and a member of the board of directors of Turing. Pursuant to the Services Agreement, Turing was to provide certain employees to the Company, to utilize on a part-time basis, including Christopher Thorn, who was appointed as the Company’s interim chief financial officer on December 3, 2015. The Services Agreement provided that Turing would charge the Company for Mr. Thorn’s services at 151.92 Bankruptcy Filing and Delisting of Common Stock On December 29, 2015, the Company filed a voluntary petition for bankruptcy protection under Chapter 11 of Title 11 of the United States Bankruptcy Code (the “Bankruptcy Code”). The filing was made in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) (Case No. 15-12628). As described below, the Company emerged from bankruptcy on June 30, 2016 (the “Effective Date”). As a result of delisting procedures implemented by The NASDAQ Stock Market in December 2015, on January 13, 2016, the Company’s common stock was suspended from the Nasdaq Global Market and began trading on the over-the-counter market. On January 26, 2016, NASDAQ filed a Form 25 with the Securities and Exchange Commission to complete the delisting of the common stock, and the delisting was effective on February 5, 2016. Bankruptcy Related Financing Arrangements On April 1, 2016, the Company entered into a Debtor in Possession Credit and Security Agreement (the “Credit Agreement”) with Black Horse Capital Master Fund Ltd., as administrative agent and lender (“BHCMF” or “Agent”), Black Horse Capital LP, as a lender (“BHC”), Cheval Holdings, Ltd., as a lender (“Cheval”) and Nomis Bay LTD, as a lender (“Nomis” and, together with BHCMF, BHC and Cheval, the “Lenders”). The Credit Agreement provided for a debtor-in-possession credit facility in the original principal amount of $3,000,000 (the “Term Loan”). The Credit Agreement provided that the Term Loan will be made by the Lenders at an original discount equal to $191,000 (the “Upfront Fee”) and required the payment by the Company to the Lenders of a commitment fee equal to $150,000 (the “Commitment Fee”). In accordance with the terms of the Credit Agreement, the Company used the proceeds of the Term Loan for working capital, bankruptcy-related costs, costs related to the Company’s plan of reorganization, the payment of certain fees and expenses owed to the Agent and the Lenders in connection with the Credit Agreement and other costs incurred in the ordinary course of business. Pursuant to the terms of the Credit Agreement, the Term Loan bore interest at a rate per annum equal to 12.00%. In accordance with the bidding procedures order entered by the Bankruptcy Court, the Term Loan and the SPA (defined below) were together subject to competing, higher and better offers. The Company’s obligations under the Credit Agreement were secured pursuant to an Intellectual Property Security Agreement. In connection with the Credit Agreement, the Company executed in favor of Agent an Intellectual Property Security Agreement, dated as of April 1, 2016 (the “IP Security Agreement”). Under the terms of the IP Security Agreement, the Company pledged to Agent for the ratable benefit of the Lenders, as collateral for its obligations under the Credit Agreement, all of its intellectual property. The Credit Agreement provided that the outstanding principal balance of the Term Loan, plus accrued and unpaid interest, plus the Upfront Fee, plus the Commitment Fee and all other non-contingent obligations would mature on the earlier of an event of default under the Credit Agreement or the effective date of the Company’s plan of reorganization. The Maturity Date was deemed to occur simultaneously with the Effective Date and, accordingly, on June 30, 2016, 2,350,480 shares of common stock were issued to the Lenders in repayment of the Company’s debt obligations under the Credit Agreement, including 201,436 shares to BHC, 470,096 shares to BHCMF, 503,708 shares to Cheval, 940,192 and 235,048 shares to Cortleigh Limited (“Cortleigh”) 2 On April 1, 2016, the Company also entered into a Securities Purchase Agreement (the “SPA”) with the Lenders. The SPA provides for the sale to the Lenders on the closing date of an aggregate of 5,885,000 shares of common stock, subject to adjustment as provided in the SPA, in respect of exit financing in the amount of $11,000,000 (the “Exit Financing”) plus an exit financing commitment fee of $770,000 payable by the Company to the Lenders, plus payment to the Lenders of their fees and expenses incurred in connection with the Exit Financing and the SPA. Nomis subsequently assigned twenty percent (20%) of its interest in the shares of common stock to be purchased by Nomis under the SPA and the Credit Agreement The consummation of the transactions contemplated by the SPA were contingent on, among other things, the funding of the Term Loan, the approval of the Bankruptcy Court of the Company’s plan of reorganization, and the simultaneous closing of the Company’s transaction with Savant, as described below. In addition, the closing of the transactions under the SPA were contingent upon the board of directors of the Company, upon the effectiveness of the confirmed plan of reorganization, consisting of (i) one director to be designated by Nomis; (ii) one director to be jointly designated by BHC, BHCF, and Cheval; (iii) the Chief Executive Officer of the Company to be designated jointly and unanimously by the Lenders; and (iv) two independent directors to be designated jointly and unanimously by the Lenders. The issuance of the shares contemplated by the SPA was consummated on the Effective Date, and the Company issued to the Purchasers an aggregate of 7,147,035 shares of common stock for an aggregate purchase price of $11,000,000, including 612, 501 407 610 2,858,814 and 714,703 shares to Cortleigh Emergence from Bankruptcy On May 9, 2016, the Company filed with the Bankruptcy Court a Second Amended Plan of Reorganization (the “Plan”) and related amended disclosure statement pursuant to Chapter 11 of the Bankruptcy Code. On June 16, 2016, the Bankruptcy Court entered an order confirming the Plan (the “Confirmation Order”). On May 9, 2016, the Bankruptcy Court entered an order (the “Order”) approving the Settlement Stipulation entered into between (i) Gregory Rea, RTAT LLC, Nancy Retzlaff, Armistice Capital Master Fund, Ltd. Andrew Pizzo and Sabine Gritti and (ii) the Company (the “Settlement Stipulation”). The Settlement Stipulation provides for the resolution among the parties of a lawsuit filed on January 7, 2016 (the “PIPE Litigation”) in connection with the purchase and sale of the Company’s common stock in the Private Placement, certain objections related to the Company’s bankruptcy proceedings and all related matters. Pursuant to the terms of the Settlement Stipulation, the plaintiffs in the PIPE Litigation received 327,608 shares of the common stock of the Company as reorganized pursuant to the Plan, in addition to certain other consideration. On the Effective Date, the Plan became effective and the Company emerged from its Chapter 11 bankruptcy proceedings. On the Effective Date, in accordance with the terms of the Plan, in addition to shares issued to the Lenders and the Purchasers under the Credit Agreement and SPA, respectively, and shares issued in connection with the Settlement Stipulation, the Company reserved for issuance 300,000 shares to the plaintiffs in a class action lawsuit related to the events surrounding the Company’s former Chairman and Chief Executive Officer, and the Company became obligated to issue 3,750 shares to Marek Biestek, a former director, in satisfaction of claims by Mr. Biestek against the Company. In addition, on the Effective Date, the Company reserved for issuance shares of common stock in connection with certain other claims and interests as set forth in the Plan in an amount as yet to be determined. In accordance with the Plan, on the Effective Date, the Company became obligated to issue promissory notes (the “Notes”) in the estimated aggregate principal amount of approximately $1.3 million to certain holders of allowed general unsecured claims in the Company’s bankruptcy proceedings. The Notes are unsecured, bear interest at a rate of 10% per annum and mature on June 30, 2019. Savant Arrangements On February 29, 2016, the Company entered into a binding letter of intent (the “LOI”) with Savant Neglected Diseases, LLC (“Savant”). The LOI provided that the Company would acquire certain worldwide rights relating to benznidazole (the “Compound”) from Savant Compound The LOI provided that in consideration for the assets to be acquired, the Company would provide consideration to Savant, including: · $3,000,000 (the “Initial Payment”) payable as soon as practicable but in no event later than the Company emerging from its Chapter 11 bankruptcy pursuant to a plan of reorganization (the “Bankruptcy Exit”); · a five-year warrant from the date of the Bankruptcy Exit to purchase up to 200,000 shares of common stock at a per share price of $2.25, exercisable for 25% of the shares immediately and exercisable for the remaining shares upon reaching certain milestones related to regulatory approval of the Compound · certain additional payments to be further specified in the definitive agreements. On the Effective Date, as authorized by the Plan and the Confirmation Order, the Company and Savant entered into an Agreement for the Manufacture, Development and Commercialization of Benznidazole for Human Use (the “MDC Agreement”), pursuant to which the Company acquired certain worldwide rights relating to benznidazole (the “Compound”). The MDC Agreement consummates the transactions contemplated by the LOI. Under the terms of the MDC Agreement, the Company acquired certain regulatory and non-intellectual property assets relating to the Compound and any product containing the Compound and an exclusive license of certain intellectual property assets related to the Compound. Savant will retain the right to use the licensed intellectual property for veterinary uses. The MDC Agreement provides that the Company and Savant will jointly conduct research and development activities with respect to the Compound Compound Compound As required by the MDC Agreement, on the Effective Date, the Company made payments to Savant totaling $2,687,500, consisting of the remaining portion of the Initial Payment less the deposit in the amount of $2,500,000, an initial monthly Joint Development Program Cost payment of $87,500, and reimbursement of Savant’s legal fees capped at $100,000. The MDC Agreement provides for regulatory and other milestone payments of up to $21 million and certain other contingent payments. Additionally, the Company will pay Savant royalties on any net sales of the Compound Compound Compound In addition, on the Effective Date the Company and Savant also entered into a Security Agreement (the “Security Agreement”), pursuant to which the Company granted Savant a continuing senior security interest in the assets and rights acquired by the Company pursuant to the MDC Agreement and certain future assets developed from those acquired assets. On the Effective Date, the Company issued to Savant a five year warrant (the “Warrant”) to purchase 200,000 shares of the Company’s Common Stock, at an exercise price of $2.25 per share, subject to adjustment. The Warrant is exercisable for 25% of the shares immediately and exercisable for the remaining shares upon reaching certain milestones related to regulatory approval of the Compound Governance Arrangements On the Effective Date, the Company and Martin Shkreli, the Company’s former chief executive officer, former chairman and former controlling stockholder, entered into a Corporate Governance Agreement (the “Governance Agreement”), which provides for certain terms and conditions regarding the acquisition, disposition, holding and voting of securities of the Company by Mr. Shkreli. The Governance Agreement applies to all common stock owned by Mr. Shkreli or affiliates he controls. Under the terms of the Governance Agreement, for 180 days following the Effective Date, Mr. Shkreli could was had had d was d would Under the terms of the Governance Agreement, Mr. Shkreli will not have any right to nominate directors to the board of directors of the Company and agree d · purchasing any stock or assets of the Company; · participating in any proposal for any merger, tender offer or other business combination, or similar extraordinary transaction involving the Company or any of its subsidiaries; · seeking to control or influence the management, the Company’s Board or the policies of the Company; or · submitting any proposal to be considered by the stockholders of the Company. In addition, any material transaction between Mr. Shkreli or his associates and the Company, or relating to the Governance Agreement, cannot be taken without the prior approval of the Company’s Board. The Governance Agreement provides for a mutual release between the Company and Mr. Shkreli of all claims and liabilities existing as of the date of execution. On August 25 and August 26, 2016, Mr. Shkreli sold all of his shares of the Company to third party investors in private transactions. Stock Issuance On May 24, 2016, the board of directors approved a one-time equity award (the “Equity Award”) to each of Cameron Durrant, Ronald Barliant and David Moradi. On the Effective Date, in accordance with the Plan, the Company became obligated to issue an aggregate 323,155 shares of common stock under the Equity Award. Board Changes On the Effective Date, in accordance with the Plan, Cameron Durrant, current Chief Executive Officer of the Company, as joint designee of BHCMF, BHC and Cheval (the "Black Horse Entities") and Nomis, continued as a director, Ronald Barliant, current member of the Board, continued as a director as the designee of the Black Horse Entities, Dale Chappell became a director as a designee of Nomis, and Timothy Morris and Ezra Friedberg became directors as joint designees of the Black Horse Entities and Nomis.

Potentially Dilutive Securiti16

Potentially Dilutive Securities (Tables)	9 Months Ended
	Sep. 30, 2015
Potentially Dilutive Securities Tables
Potentially Dilutive Securities Excluded From Computation of Diluted Net Loss Per Common Share	As of September 30, 2015 2014 Options to purchase common stock 527,120 336,102 Unvested restricted stock units to purchase common stock 3,750 — ESPP contributions to purchase common stock 375 430 Warrants to purchase common stock 11,067 11,067 542,312 347,599

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Schedule of amortized cost and fair value of investments, with gross unrealized gains and losses	At September 30, 2015, the amortized cost and fair value of investments, with gross unrealized gains and losses, were as follows: Gross Gross Amortized Unrealized Unrealized (in thousands) Cost Gains Losses Fair Value Money market funds $ 7,396 $ — $ — $ 7,396 Total investments $ 7,396 $ — $ $ 7,396 Reported as: Cash and cash equivalents $ 7,154 Restricted cash, long-term 242 Total investments $ 7,396 At December 31, 2014, the amortized cost and fair value of investments, with gross unrealized gains and losses, were as follows: Gross Gross Amortized Unrealized Unrealized (in thousands) Cost Gains Losses Fair Value Money market funds $ 9,663 $ — $ — $ 9,663 Federal agency securities 13,774 — (4 ) 13,770 Commercial paper 1,499 1 — 1,500 Corporate debt securities 14,525 — (5 ) 14,520 Total investments $ 39,461 $ 1 $ (9 ) $ 39,453 Reported as: Cash and cash equivalents $ 9,470 Marketable securities 29,790 Restricted cash 193 Total investments $ 39,453

Fair Value of Financial Instr18

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of fair value of financial assets and liabilities measured at fair value and classification by level of input	Fair Value Measurements as of September 30, 2015 (in thousands) Level 1 Level 2 Level 3 Total Investments: Money market funds $ 7,396 $ — $ — $ 7,396 Total assets measured at fair value $ 7,396 $ $ — $ 7,396 Financing derivative $ — $ — $ 341 $ 341 Total liabilities measured at fair value $ — $ — $ 341 $ 341 Fair Value Measurements as of December 31, 2014 (in thousands) Level 1 Level 2 Level 3 Total Investments: Money market funds $ 9,663 $ — $ — $ 9,663 Federal agency securities — 13,770 — 13,770 Commercial paper — 1,500 — 1,500 Corporate debt securities — 14,520 — 14,520 Total assets measured at fair value $ 9,663 $ 29,790 $ — $ 39,453 Financing derivative $ — $ — $ 89 $ 89 Total liabilities measured at fair value $ — $ — $ 89 $ 89
Schedule of changes in financial instruments measured at fair value using Level 3 inputs	Fair Value (in thousands) Balance as of December 31, 2014 $ 89 Loss on re-measurement of the financing derivative liability 3 Balance as of March 31, 2015 92 Loss on re-measurement of the financing derivative liability 135 Balance as of June 30, 2015 227 Loss on re-measurement of the financing derivative liability 114 Balance as of September 30, 2015 $ 341

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Summary of stock option activity	Weighted Average Exercise Options Price Outstanding at December 31, 2014 334,686 $ 34.00 Granted 296,045 3.59 Exercised — — Cancelled (forfeited) (96,158 ) 24.55 Cancelled (expired) (7,453 ) 18.22 Outstanding at September 30, 2015 527,120 $ 18.84
Schedule of fair value assumptions	Three Months Nine Months Ended Exercise price $ 3.23 $ 3.59 Market value $ 3.23 $ 3.59 Risk-free rate 1.62 1.61 Expected term 5.30 5.81 Expected volatility 69 % 70 % Dividend yield - -
Schedule of total stock-based compensation expense recognized	Three Months Nine Months Ended September 30, Ended September 30, (in thousands) 2015 2014 2015 2014 General and administrative $ 137 $ 282 $ 466 $ 755 Research and development 134 184 447 729 $ 271 $ 466 $ 913 $ 1,484

Restructuring Charges (Tables)

Restructuring Charges (Tables)	9 Months Ended
	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
Schedule of activity in accrued restructuring balance, included within accrued compensation	(in thousands) Contract Salaries and R&D Salaries and G&A Total Balance as of December 31, 2014 $ 1,185 $ — $ — $ 1,185 Accrued — 522 82 604 Paid (479 ) (257 ) — (736 ) Balance as of March 31, 2015 $ 706 $ 265 $ 82 $ 1,053 Accrued — 57 122 179 Paid (135 ) (142 ) — (277 ) Balance as of June 30, 2015 $ 571 $ 180 $ 204 $ 955 Accrued — — — — Adjustments (78 ) — — (78 ) Paid (493 ) (148 ) (136 ) (777 ) Balance as of September 30, 2015 $ - $ 32 $ 68 $ 100

Nature of Operations (Details)

Nature of Operations (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)item	Dec. 31, 2014USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 200,475	$ 178,213
Liabilities	$ 12,603	$ 18,364
Number of product candidates approved for sale | item	0

Potentially Dilutive Securiti22

Potentially Dilutive Securities (Details) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted net loss per common share	542,312	347,599
Options to purchase common stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted net loss per common share	527,120	336,102
Unvested restricted stock units to purchase common stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted net loss per common share	3,750
ESPP contributions to purchase common stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted net loss per common share	375	430
Warrants to purchase common stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted net loss per common share	11,067	11,067

Investments (Details)

Investments (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
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 7,396		$ 7,396		$ 39,461
Gross Unrealized Gains					1
Gross Unrealized Losses					(9)
Fair Value	7,396		7,396		39,453
Realized losses recorded from the sale of marketable securities	8,000		8,000
Money Market Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,396		7,396		9,663
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	7,396		7,396		9,663
Federal agency securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost					13,774
Gross Unrealized Gains
Gross Unrealized Losses					(4)
Fair Value					13,770
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost					14,525
Gross Unrealized Gains
Gross Unrealized Losses					(5)
Fair Value					14,520
Commercial Paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost					1,499
Gross Unrealized Gains					1
Gross Unrealized Losses
Fair Value					1,500
Cash And Cash Equivalent [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value	7,154		7,154		9,470
Restricted Cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value	$ 242		$ 242		193
Marketable Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value					$ 29,790

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value				$ 39,453
Total liabilities measured at fair value	$ 341	$ 227	$ 92	89
Fair Value Inputs, Discount Rate	14.00%
Fair Value Measurements Recurring [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value	$ 7,396			39,453
Total liabilities measured at fair value	341			89
Fair Value Measurements Recurring [Member] | Derivative [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total liabilities measured at fair value	341			89
Fair Value Measurements Recurring [Member] | Money Market Funds [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value	7,396			9,663
Fair Value Measurements Recurring [Member] | Federal agency securities [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value				13,770
Fair Value Measurements Recurring [Member] | Commercial Paper [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value				1,500
Fair Value Measurements Recurring [Member] | Corporate Debt Securities [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value				14,520
Fair Value, Inputs, Level 1 [Member] | Fair Value Measurements Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value	7,396			9,663
Total liabilities measured at fair value
Fair Value, Inputs, Level 1 [Member] | Fair Value Measurements Recurring [Member] | Derivative [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total liabilities measured at fair value
Fair Value, Inputs, Level 1 [Member] | Fair Value Measurements Recurring [Member] | Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value	7,396			9,663
Fair Value, Inputs, Level 1 [Member] | Fair Value Measurements Recurring [Member] | Federal agency securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value
Fair Value, Inputs, Level 1 [Member] | Fair Value Measurements Recurring [Member] | Commercial Paper [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value
Fair Value, Inputs, Level 1 [Member] | Fair Value Measurements Recurring [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value
Fair Value, Inputs, Level 2 [Member] | Fair Value Measurements Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value				29,790
Total liabilities measured at fair value
Fair Value, Inputs, Level 2 [Member] | Fair Value Measurements Recurring [Member] | Derivative [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total liabilities measured at fair value
Fair Value, Inputs, Level 2 [Member] | Fair Value Measurements Recurring [Member] | Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value
Fair Value, Inputs, Level 2 [Member] | Fair Value Measurements Recurring [Member] | Federal agency securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value				13,770
Fair Value, Inputs, Level 2 [Member] | Fair Value Measurements Recurring [Member] | Commercial Paper [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value				1,500
Fair Value, Inputs, Level 2 [Member] | Fair Value Measurements Recurring [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value				14,520
Fair Value, Inputs, Level 3 [Member] | Fair Value Measurements Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value
Total liabilities measured at fair value	341			89
Fair Value, Inputs, Level 3 [Member] | Fair Value Measurements Recurring [Member] | Derivative [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total liabilities measured at fair value	341			89
Fair Value, Inputs, Level 3 [Member] | Fair Value Measurements Recurring [Member] | Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value
Fair Value, Inputs, Level 3 [Member] | Fair Value Measurements Recurring [Member] | Federal agency securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value
Fair Value, Inputs, Level 3 [Member] | Fair Value Measurements Recurring [Member] | Commercial Paper [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value
Fair Value, Inputs, Level 3 [Member] | Fair Value Measurements Recurring [Member] | Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value

Fair Value of Financial Instr25

Fair Value of Financial Instruments (Details 2) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2015
Changes in financial instruments measured at fair value using Level 3 inputs
Beginning balance	$ 227	$ 92	$ 89	$ 89
Loss on remeasurement of the financing derivative liability	114	135	3	252
Ending balance	$ 341	$ 227	$ 92	$ 341

Notes Payable (Details)

Notes Payable (Details) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 30, 2015	Dec. 31, 2015	Sep. 30, 2015	Aug. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Restricted cash, short-term			$ 7,802,000
Loan And Security Agreement [Member]
Debt Instrument [Line Items]
Carrying value of notes payable			$ 8,425,000	$ 8,300,000
Restricted cash, short-term				$ 7,800,000
Loan And Security Agreement [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Repayments of debt	$ 6,600,000
Prepayment fee (as a percent)	1.00%
Gain on extinguishment of debt		$ 61,000

Commitments and Contingencies (

Commitments and Contingencies (Details)	9 Months Ended
	Sep. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Accruals or expenses related to indemnification issues

Stockholders' Equity (Summary o

Stockholders' Equity (Summary of Stock Option Activity) (Details) - $ / shares	1 Months Ended		3 Months Ended	9 Months Ended
	Apr. 30, 2015	Oct. 31, 2014	Sep. 30, 2015	Sep. 30, 2015	Jun. 30, 2014
Number of Shares
Balance at the beginning of the period (in shares)			334,686	334,686
Options granted (in shares)				296,045
Options exercised (in shares)
Options cancelled (forfeited) (in shares)				(96,158)
Options cancelled (expired) (in shares)				(7,453)
Balance at the end of the period (in shares)			527,120	527,120
Weighted-Average Exercise Price (Per Share)
Balance at the beginning of the period (in dollars per share)			$ 34	$ 34
Options granted (in dollars per share)				3.59
Options exercised (in dollars per share)
Options forfeited (in dollars per share)				24.55
Options expired (in dollars per share)				18.22
Balance at the ending of the period (in dollars per share)			18.84	18.84
Weighted-average fair value of options granted during the period			$ 1.90	$ 2.23
Equity Incentive Plan 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				4 years
Vesting period expiration				10 years
Employee Stock Purchase Plan 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period expiration				6 months
Look-back period for payroll deductions to acquire ownership interest				6 months
Weighted-Average Exercise Price (Per Share)
Shares issued during period	375	583
Fair market value percentage of ordinary shares			85.00%	85.00%
Number of shares authorized to be issued under the plan, before 2001 Plan additions					21,058
Shares available for grant			20,100	20,100
Restricted Stock Units (RSUs) [Member]
Weighted-Average Exercise Price (Per Share)
Shares issued during period			3,750	3,750

Stockholders' Equity (Black-Sch

Stockholders' Equity (Black-Scholes Weighted-Average Assumptions) (Details) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Stockholders Equity Black-scholes Weighted-average Assumptions Details
Exercise price	$ 3.23	$ 3.59
Market value	$ 3.23	$ 3.59
Risk-free rate	1.62%	1.61%
Expected term	5 years 3 months 18 days	5 years 9 months 22 days
Expected volatility	69.00%	70.00%
Dividend yield

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
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 271	$ 466	$ 913	$ 1,484
Unrecognized compensation expense	1,400		$ 1,400
Weighted-average period			1 year 4 months 24 days
Modification of stock options related to executive retirement			$ 389
Modification of stock options related to restructuring activities			479
General And Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	137	282	466	755
Modification of stock options related to executive retirement			484
Research And Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 134	$ 184	447	$ 729
Modification of stock options related to executive retirement			$ 384

Stockholders' Equity (Reverse S

Stockholders' Equity (Reverse Stock Split) (Details)	9 Months Ended
	Sep. 30, 2015shares	Jul. 13, 2015shares	Dec. 31, 2014shares
Reverse stock split ratio	8
Shares oustanding	4,123,921	4,100,000	4,124,004
Scenario, Previously Reported [Member]
Shares oustanding		33,000,000

Restructuring Charges (Details)

Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2015	Sep. 30, 2014
Restructuring Cost and Reserve [Line Items]
Balance at the beginning of the period	$ 955	$ 1,053	$ 1,185	$ 1,185
Additions based on charges during the period		179	604
Deductions based on adjustments during the period	(78)
Deductions based on payments during the period	(777)	(277)	(736)
Balance at the end of the period	$ 100	955	1,053	100
Modification of stock options related to restructuring activities				$ 479
Reduction in workforce (as a percentage)	20.00%			20.00%
Research And Development Expense [Member] | Contract Termination [Member]
Restructuring Cost and Reserve [Line Items]
Balance at the beginning of the period	$ 571	706	1,185	$ 1,185
Additions based on charges during the period
Deductions based on adjustments during the period	(78)
Deductions based on payments during the period	(493)	(135)	(479)
Balance at the end of the period		571	706
Research And Development Expense [Member] | Contract Termination [Member] | Restatement Adjustment [Member]
Restructuring Cost and Reserve [Line Items]
Reduction in accrued research and clinical liabilities		312
Research And Development Expense [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Balance at the beginning of the period	180	265
Additions based on charges during the period		57	522
Deductions based on adjustments during the period
Deductions based on payments during the period	(148)	(142)	(257)
Balance at the end of the period	32	180	265	32
Research And Development Expense [Member] | Employee Severance [Member] | Employee Stock Option [Member] | Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Value of stock options fair value modification				384
General And Administrative Expense [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Balance at the beginning of the period	204	82
Additions based on charges during the period		122	82
Deductions based on adjustments during the period
Deductions based on payments during the period	(136)
Balance at the end of the period	$ 68	$ 204	$ 82	68
General And Administrative Expense [Member] | Employee Severance [Member] | Employee Stock Option [Member] | Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Value of stock options fair value modification				$ 95

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)

Jun. 30, 2016

Apr. 01, 2016

Feb. 29, 2016

Dec. 15, 2015

Dec. 04, 2015

Nov. 30, 2015

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

May 24, 2016

Dec. 03, 2015

Subsequent Event [Line Items]

Additions based on charges during the period

$ 179,000

$ 604,000

Subsequent Event [Member]

Subsequent Event [Line Items]

Additions based on charges during the period

$ 1,400,000

Severance costs

1,600,000

Number of shares called by warrant

125,000

Exercise price of warrant

$ 29.32

Exercise period of warrant

5 years

Hourly rate for professional services

$ 156.48

Shares reserved for issuance in connection with class action lawsuit

300,000

Shares issuable under equity award

323,155

Subsequent Event [Member] | Private Placement [Member]

Subsequent Event [Line Items]

Number of shares authorized

511,596

Value of shares authorized

$ 15,000,000

Price per share

$ 24.855

Stock issued during period, shares

326,698

Stock issued during period, value

$ 8,200,000

Subsequent Event [Member] | Private Placement [Member] | Directors, Officers, Employees and Consultants [Member]

Subsequent Event [Line Items]

Price per share

$ 29.32

Subsequent Event [Member] | General And Administrative Expense [Member]

Subsequent Event [Line Items]

Severance costs

1,200,000

Subsequent Event [Member] | Research And Development Expense [Member]

Subsequent Event [Line Items]

Severance costs

$ 400,000

Subsequent Event [Member] | Loan And Security Agreement [Member]

Subsequent Event [Line Items]

Repayments of debt

$ 6,600,000

Prepayment fee (as a percent)

1.00%

Subsequent Event [Member] | Promissory Notes To Holders Of Unsecured Claims [Member]

Subsequent Event [Line Items]

Debt instrument amount

$ 1,300,000

Interest rate

10.00%

Maturity date

Jun. 30, 2019

Subsequent Event [Member] | Securities Purchase Agreement [Member]

Subsequent Event [Line Items]

Stock issued during period, shares

7,147,035

Stock issued during period, value

$ 11,000,000

Debt instrument amount

$ 11,000,000

Shares to be sold

5,885,000

Commitment fee

$ 770,000

Subsequent Event [Member] | Securities Purchase Agreement [Member] | Black Horse Capital LP [Member]

Subsequent Event [Line Items]

Shares issued for repayment of debt

612,501

Payments for fees and expenses

$ 427,383

Subsequent Event [Member] | Securities Purchase Agreement [Member] | Black Horse Capital Master Fund Ltd. [Member]

Subsequent Event [Line Items]

Shares issued for repayment of debt

1,429,407

Subsequent Event [Member] | Securities Purchase Agreement [Member] | Cheval Holdings, Ltd. [Member]

Subsequent Event [Line Items]

Shares issued for repayment of debt

1,531,610

Subsequent Event [Member] | Securities Purchase Agreement [Member] | Nomis Bay LTD [Member]

Subsequent Event [Line Items]

Shares issued for repayment of debt

2,858,814

Payments for fees and expenses

$ 240,773

Subsequent Event [Member] | Securities Purchase Agreement [Member] | Cortleigh Limited [Member]

Subsequent Event [Line Items]

Shares issued for repayment of debt

714,703

Subsequent Event [Member] | Credit Agreement [Member]

Subsequent Event [Line Items]

Debtor in possession amount

$ 3,000,000

Original discount upfront fee

191,000

Commitment fee

$ 150,000

Interest rate

12.00%

Shares issued for repayment of debt

2,350,480

Subsequent Event [Member] | Credit Agreement [Member] | Black Horse Capital LP [Member]

Subsequent Event [Line Items]

Shares issued for repayment of debt

201,436

Payments for fees and expenses

$ 405,145

Subsequent Event [Member] | Credit Agreement [Member] | Black Horse Capital Master Fund Ltd. [Member]

Subsequent Event [Line Items]

Shares issued for repayment of debt

470,096

Subsequent Event [Member] | Credit Agreement [Member] | Cheval Holdings, Ltd. [Member]

Subsequent Event [Line Items]

Shares issued for repayment of debt

503,708

Subsequent Event [Member] | Credit Agreement [Member] | Nomis Bay LTD [Member]

Subsequent Event [Line Items]

Shares issued for repayment of debt

940,192

Payments for fees and expenses

$ 283,132

Subsequent Event [Member] | Credit Agreement [Member] | Cortleigh Limited [Member]

Subsequent Event [Line Items]

Shares issued for repayment of debt

235,048

Subsequent Event [Member] | Martin Shkreli [Member]

Subsequent Event [Line Items]

Description of governance agreement

Under the terms of the Governance Agreement, for 180 days following the Effective Date, Mr. Shkreli may not sell his shares of common stock at a price per share that is less than the greater of (x) $2.50 and (y) a 10% discount to the prior two week volume-weighted average price (the “Market Discount Price”). In addition, for 180 days following the 61st day after the Effective Date, the Company will have a right to purchase any or all of Mr. Shkreli’s shares at a purchase price per share equal to the Market Discount Price. For a limited time, the Company will also have a right of first refusal to purchase shares that Mr. Shkreli proposes to sell. Mr. Shkreli is also prohibited from transferring any shares to his affiliates or associates unless such transferee agrees to be subject to the terms of the Governance Agreement. Transfers of shares by Mr. Shkreli not made in compliance with the Governance Agreement will be null and void.

Subsequent Event [Member] | Savant Neglected Diseases, LLC [Member]

Subsequent Event [Line Items]

Number of shares called by warrant

200,000

200,000

Exercise price of warrant

$ 2.25

$ 2.25

Exercise period of warrant

5 years

5 years

Bankruptcy payments

$ 2,500,000

$ 500,000

Monthly bankruptcy payments to be made

87,500

87,500

Initial payment to be made as soon as practicable

2,687,500

$ 3,000,000

Legal fees

100,000

Milestone payments and certain other contingent payments

$ 21,000,000

Subsequent Event [Member] | Savant Neglected Diseases, LLC [Member] | Exercisable upon reaching certain milestones [Member]

Subsequent Event [Line Items]

Percentage of warrants exercisable

75.00%

75.00%

Subsequent Event [Member] | Savant Neglected Diseases, LLC [Member] | Exercisable Immediately [Member]

Subsequent Event [Line Items]

Percentage of warrants exercisable

25.00%

25.00%

Subsequent Event [Member] | Marek Biestek [Member]

Subsequent Event [Line Items]

Shares issued as bankruptcy settlement

3,750

Subsequent Event [Member] | PIPE Litigation Plaintiffs [Member]

Subsequent Event [Line Items]

Shares issued as bankruptcy settlement

327,608

Subsequent Event [Member] | Investors [Member]

Subsequent Event [Line Items]

Shares of common stock acquired

2,885,000

Percentage of common stock acquired

70.00%