Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 11-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Amphastar Pharmaceuticals, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 44,724,202 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1297184 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $68,588 | $67,828 |
Restricted cash and restricted short-term investments | 1,495 | 1,495 |
Accounts receivable, net | 21,653 | 22,852 |
Inventories, net | 84,887 | 82,332 |
Income tax refund and deposits | 2,333 | 273 |
Prepaid expenses and other assets | 3,934 | 3,683 |
Deferred tax assets | 19,707 | 19,533 |
Total current assets | 202,597 | 197,996 |
Property, plant, and equipment, net | 138,276 | 138,289 |
Goodwill and intangible assets, net | 41,326 | 42,565 |
Other assets | 4,447 | 3,588 |
Deferred tax assets | 9,856 | 6,932 |
Total assets | 396,502 | 389,370 |
Current Liabilities: | ||
Accounts payable | 18,948 | 10,161 |
Accrued liabilities | 14,663 | 13,144 |
Income taxes payable | 3,000 | 3,123 |
Accrued payroll and related benefits | 13,864 | 11,449 |
Current portion of product return accrual | 2,042 | 1,918 |
Current portion of deferred revenue | 6,886 | 14,013 |
Current portion of long-term debt and capital leases | 12,531 | 7,594 |
Current portion of deferred tax liabilities | 156 | 1,193 |
Total current liabilities | 72,090 | 62,595 |
Long-term product return accrual | 539 | 490 |
Long-term reserve for income tax liabilities | 1,046 | 499 |
Long-term deferred revenue | 1,821 | 1,982 |
Long-term debt and capital leases, net of current portion | 35,886 | 36,106 |
Long-term deferred tax liabilities | 5,839 | 5,838 |
Total liabilities | 117,221 | 107,510 |
Stockholders’ equity: | ||
Preferred stock: par value $.0001; authorized shares—20,000,000; no shares issued and outstanding | 0 | 0 |
Common stock: par value $.0001; authorized shares—300,000,000; issued and outstanding shares—44,662,037 and 44,646,767 at March 31, 2015 and December 31, 2014, respectively | 4 | 4 |
Additional paid-in capital | 223,313 | 220,745 |
Retained earnings | 62,445 | 63,110 |
Accumulated other comprehensive loss | -4,647 | -1,654 |
Treasury stock | -1,834 | -345 |
Total stockholders’ equity | 279,281 | 281,860 |
Total liabilities and stockholders’ equity | $396,502 | $389,370 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock; par value (in Dollars per share) | $0.00 | $0.00 |
Common stock; authorized shares | 300,000,000 | 300,000,000 |
Common stock; shares issued | 44,662,037 | 44,646,767 |
Common stock; outstanding shares | 44,662,037 | 44,646,767 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net revenues | $56,886 | $45,870 |
Cost of revenue | 43,606 | 33,362 |
Gross profit | 13,280 | 12,508 |
Operating expenses: | ||
Selling, distribution, and marketing | 1,522 | 1,259 |
General and administrative | 12,451 | 6,845 |
Research and development | 6,568 | 6,209 |
Impairment of long-lived assets | 164 | |
Total operating expenses | 20,541 | 14,477 |
Loss from operations | -7,261 | -1,969 |
Non-operating income (expense): | ||
Interest income | 92 | 28 |
Interest expense | -341 | -180 |
Other income (expense), net | 1,313 | -350 |
Total non-operating income (expense), net | 1,064 | -502 |
Loss before income taxes | -6,197 | -2,471 |
Income tax benefit | -5,532 | -852 |
Net loss | ($665) | ($1,619) |
Net loss per common share: | ||
Basic (in Dollars per share) | ($0.01) | ($0.04) |
Diluted (in Dollars per share) | ($0.01) | ($0.04) |
Weighted-average shares used to compute net loss per common share: | ||
Basic (in Shares) | 44,601 | 38,769 |
Diluted (in Shares) | 44,601 | 38,769 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net loss | ($665) | ($1,619) |
Accumulated other comprehensive loss | ||
Foreign currency translation adjustment | -2,993 | |
Total accumulated other comprehensive loss | -2,993 | |
Total comprehensive loss | ($3,658) | ($1,619) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows From Operating Activities: | ||
Net loss | ($665) | ($1,619) |
Reconciliation to net cash provided by (used in) operating activities: | ||
Impairment of long-lived assets | 165 | |
Loss on disposal of property, plant, and equipment | 4 | |
Depreciation and amortization of property, plant, and equipment | 2,771 | 2,940 |
Amortization of product rights, trademarks, and patents | 481 | 475 |
Imputed interest accretion | 28 | |
Employee share-based compensation expense | 2,224 | 1,380 |
Non-employee share-based compensation expense | 6 | 236 |
Reserve for income tax liabilities | 547 | |
Changes in deferred taxes | -4,111 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 621 | 5,471 |
Inventories, net | -4,486 | -9,131 |
Income tax refund and deposits | -912 | |
Prepaid expenses and other assets | -2,311 | -1,052 |
Income taxes payable | -131 | -177 |
Accounts payable and accrued liabilities | 6,360 | -3,611 |
Net cash provided by (used in) operating activities | 1,338 | -5,835 |
Cash Flows From Investing Activities: | ||
Purchases of property, plant, and equipment | -3,780 | -4,030 |
Capitalized labor, overhead, and interest on self-constructed assets | -395 | -196 |
Deposits and other assets, net | -870 | -571 |
Net cash used in investing activities | -5,045 | -4,797 |
Cash Flows From Financing Activities: | ||
Net proceeds from equity plans | 910 | |
Repurchase of common stock | -572 | |
Payments on treasury stock | -1,489 | |
Proceeds from borrowing under lines of credit | 25,000 | |
Repayments under lines of credit | -15,000 | |
Proceeds from issuance of long-term debt | 6,789 | |
Principal payments on long-term debt | -1,193 | -673 |
Net cash provided by financing activities | 4,445 | 9,180 |
Effect of exchange rate changes on cash | 22 | |
Net increase (decrease) in cash and cash equivalents | 760 | -1,452 |
Cash and cash equivalents at beginning of period | 67,828 | 53,587 |
Cash and cash equivalents at end of period | 68,588 | 52,135 |
Noncash Investing and Financing Activities: | ||
Equipment acquired under capital leases | 9 | |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 469 | 209 |
Income taxes paid | 79 | |
Deferred Offering Cost [Member] | ||
Cash Flows From Financing Activities: | ||
Deferred offering cost | ($147) |
Note_1_General
Note 1 - General | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. General |
Amphastar Pharmaceuticals, Inc., a California corporation, was incorporated on February 29, 1996 and merged with and into Amphastar Pharmaceuticals, Inc., a Delaware corporation, in July 2004 (hereinafter referred to as “the Company”). The Company is a specialty pharmaceutical company that primarily develops, manufactures, markets, and sells generic and proprietary injectable and inhalation products, including products with high technical barriers to market entry. Additionally, in 2014, the Company commenced sales of insulin active pharmaceutical ingredient, or API products. Most of the Company’s products are used in hospital or urgent care clinical settings and are primarily contracted and distributed through group purchasing organizations and drug wholesalers. The Company’s insulin API products are primarily sold to other pharmaceutical companies for use in their own products. The Company’s inhalation products will be primarily distributed through drug retailers once they are brought to market. | |
The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2014 and the notes thereto as filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles, or GAAP, have been condensed or omitted from the accompanying condensed consolidated financial statements. The accompanying year-end condensed consolidated balance sheet was derived from the audited financial statements. The accompanying interim financial statements are unaudited, but reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the Company’s consolidated financial position, results of operations, comprehensive loss and cash flows for the periods presented. Unless otherwise noted, all such adjustments are of a normal, recurring nature. The Company’s results of operations, comprehensive loss and cash flows for the interim periods are not necessarily indicative of the results of operations and cash flows that it may achieve in future periods. | |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies |
Basis of Presentation | |
All significant intercompany activity has been eliminated in the preparation of the condensed consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Some information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles, or GAAP, have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations, and cash flows of the Company. | |
The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries: International Medication Systems, Limited, or IMS; Amphastar Laboratories, Inc.; Armstrong Pharmaceuticals, Inc., or Armstrong; Amphastar Nanjing Pharmaceuticals Co., Ltd., or ANP; and Amphastar France Pharmaceuticals, S.A.S., or AFP. | |
Use of Estimates | |
The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The principal accounting estimates include: determination of allowances for doubtful accounts and discounts, liabilities for product returns and chargebacks, reserves for excess or unsellable inventory, impairment of long-lived and intangible assets and goodwill, self-insured claims, workers’ compensation liabilities, litigation reserves, stock price volatilities for share-based compensation expense, fair market values of the Company’s common stock, valuation allowances for deferred tax assets, and liabilities for uncertain income tax positions. | |
Foreign Currency | |
The functional currency of the Company and its domestic and Chinese subsidiaries is the U.S. dollar, or USD. The Company’s Chinese subsidiary, ANP, maintains its books of record in Chinese Yuan. These books are remeasured into the functional currency of USD using the current or historical exchange rates. The resulting currency remeasurement adjustments and other transactional foreign exchange gains and losses are reflected in the Company’s statement of operations. The Company’s French subsidiary, AFP, maintains its books of record in Euros, which is the local currency in France and has been determined to be its functional currency. These books are translated to USD at the average exchange rates during the period. Assets and liabilities are translated at the rate of exchange prevailing on the balance sheet date. Equity is translated at the prevailing rate of exchange at the date of the equity transactions. Translation adjustments are reflected in stockholders’ equity and are included as a component of other comprehensive loss. Additionally, the Company does not undertake hedging transactions to cover its foreign currency exposure. | |
Comprehensive Loss | |
For the Company’s acquired subsidiary in France, the Euro, which is the local currency, has been determined to be the functional currency. The results of the Company’s French subsidiary’s operations are translated to U.S. dollars at the average exchange rates during the period. | |
For the three months ended March 31, 2015, the Company includes its foreign currency translation adjustment as well as the change to its actuarial valuation on the Company’s defined benefit pension plan (see Note 15) as part of its comprehensive loss. For the three months ended March 31, 2014, net loss equaled total comprehensive loss. | |
Financial Instruments | |
The carrying amounts of cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, and short-term borrowings approximate fair value due to the short maturity of these items. A majority of the Company’s long-term obligations consist of variable rate debt and their carrying value approximates fair value. Their carrying value approximates fair value as the stated borrowing rates are comparable to rates currently offered to the Company for instruments with similar maturities. However, the Company has one fixed-rate, long-term mortgage for which the carrying value differs from the fair value and is not remeasured on a recurring basis (see Note 12). | |
Deferred Income Taxes | |
The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statements and the tax basis of assets and liabilities using enacted tax rates. A valuation allowance is recorded when it is more likely than not that the deferred tax assets will not be realized. The Company has adopted the with-and-without methodology for determining when excess tax benefits from the exercise of share-based awards are realized. Under the with-and-without methodology, current year operating loss deductions and prior-year operating loss carryforwards are deemed to be utilized prior to the utilization of current-year excess tax benefits from share-based awards. | |
Business Combinations | |
Business combinations are accounted for in accordance with Accounting Standards Codification, or ASC 805, Business Combinations, using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. Fair value determinations are based on discounted cash flow analyses or other valuation techniques. In determining the fair value of the assets acquired and liabilities assumed in a material acquisition, the Company may utilize appraisals from third party valuation firms to determine fair values of some or all of the assets acquired and liabilities assumed, or may complete some or all of the valuations internally. In either case, the Company takes full responsibility for the determination of the fair value of the assets acquired and liabilities assumed. The value of goodwill reflects the excess of the fair value of the consideration conveyed to the seller over the fair value of the net assets received. | |
Acquisition-related costs are costs the Company incurs to effect a business combination. The Company accounts for acquisition-related costs as expenses in the periods in which the costs are incurred. | |
Recent Accounting Pronouncements | |
In April 2014, the FASB issued an accounting standards update that raised the threshold for disposals to qualify as discontinued operations and allows companies to have significant continuing involvement with and continuing cash flows from or to the discontinued operation. It also requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. This guidance is effective for fiscal years beginning after December 15, 2014, which is the Company's fiscal year 2015, with early adoption permitted. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. | |
In May 2014, the FASB issued an accounting standards update that creates a single source of revenue guidance for companies in all industries. The new standard provides guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers, unless the contracts are within the scope of other accounting standards. It also provides a model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets. This guidance must be adopted using either a full retrospective approach for all periods presented or a modified retrospective approach and will be effective for fiscal years beginning after December 15, 2016, which will be the Company's fiscal year 2017. The Company has not yet evaluated the potential impact of adopting the guidance on the Company's consolidated financial statements. | |
In June 2014, the FASB issued an accounting standards update that requires a performance target that affects vesting of a share-based payment award and that could be achieved after the requisite service period to be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized over the required service period, if it is probable that the performance target will be achieved. This guidance will be effective for fiscal years beginning after December 15, 2015, which will be the Company's fiscal year 2016, with early adoption permitted. The Company does not expect the adoption of the guidance will have a material impact on the Company's consolidated financial statements. | |
In August 2014, the FASB issued an accounting standards update that will require management to evaluate if there is substantial doubt about the Company’s ability to continue as a going concern and, if so, to disclose this in both interim and annual reporting periods. This guidance will become effective for the Company’s annual filing for the period ending December 31, 2016 and interim periods thereafter, and allows for early adoption. The Company does not expect the adoption of the guidance will have a material impact on the Company’s consolidated financial statements. | |
Note_3_Business_Acquisition
Note 3 - Business Acquisition | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Business Combination Disclosure [Text Block] | 3. Business Acquisition | ||||||||
Acquisition of Merck’s API Manufacturing Business | |||||||||
On April 30, 2014, the Company completed the acquisition of the Merck Sharpe & Dohme’s API manufacturing business in Éragny-sur-Epte, France, or the Merck API Transaction, which manufactures porcine insulin API and recombinant human insulin API. The purchase price of the transaction totaled €24.8 million, or $34.4 million on April 30, 2014, subject to certain customary post-closing adjustments and currency exchange fluctuations. The terms of the purchase include multiple payments over four years as follows (see Note 12): | |||||||||
Euros | U.S. | ||||||||
Dollars | |||||||||
(in thousands) | |||||||||
At Closing, April 2014 | € | 13,252 | $ | 18,352 | |||||
Dec-14 | 4,899 | 5,989 | |||||||
Dec-15 | 3,186 | 3,457 | |||||||
Dec-16 | 3,186 | 3,457 | |||||||
Dec-17 | 500 | 543 | |||||||
€ | 25,023 | $ | 31,798 | ||||||
In order to facilitate the acquisition, the Company established a subsidiary in France, AFP. The Company will continue the current site manufacturing activities, which consist of the manufacturing of porcine insulin API and recombinant human insulin API, or RHI API. As part of the transaction, the Company has entered into various additional agreements, including various supply agreements, as well as the assignment and/or licensing of patents under which Merck was operating at this facility. In addition, certain existing customer agreements have been assigned to AFP. | |||||||||
The transaction will be accounted for as a business combination in accordance to ASC 805. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date: | |||||||||
Fair Value | |||||||||
Euros | U.S. | ||||||||
Dollars | |||||||||
(in thousands) | |||||||||
Inventory | € | 15,565 | $ | 21,554 | |||||
Real property | 4,800 | 6,647 | |||||||
Machinery & equipment | 6,800 | 9,417 | |||||||
Intangibles | 80 | 111 | |||||||
Goodwill | 3,155 | 4,369 | |||||||
Total assets acquired | € | 30,400 | $ | 42,098 | |||||
Accrued liabilities | € | 2,425 | $ | 3,358 | |||||
Deferred tax liabilities | 3,155 | 4,369 | |||||||
Total liabilities assumed | 5,580 | 7,727 | |||||||
Total fair value of consideration transferred | € | 24,820 | $ | 34,371 | |||||
The Company’s accounting for this acquisition is preliminary. The fair value estimates for the assets acquired and liabilities assumed were based upon preliminary calculations and valuations, and the Company’s estimates and assumptions are subject to change as the Company obtains additional information for its estimates during the measurement period (up to one year from the acquisition date). The operations of the acquired business have been included in the Company’s condensed consolidated financial statements commencing on the acquisition date. The results of operations for this acquisition have not been separately presented because this acquisition is not material to the Company’s condensed consolidated results of operations. | |||||||||
The following unaudited pro forma financial information for the three months ended March 31, 2015 and 2014 gives effect to the transaction as if it had occurred on January 1, 2013. Such unaudited pro forma information is based on historical financial information prior to the transaction as well as actual results subsequent to the acquisition with respect to the transaction and does not reflect estimated operational and administrative cost savings, or synergies for periods prior to the transaction, that management of the combined company estimates may be achieved as a result of the transaction. The unaudited pro forma information primarily reflects the additional depreciation related to the fair value adjustment to property, plant and equipment acquired, valuation step up related to the fair value of inventory and additional interest expense associated with the financing obtained by the Company in connection with the acquisition. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands, | |||||||||
except per share data) | |||||||||
Net revenues | $ | 56,886 | $ | 45,888 | |||||
Net loss | (665 | ) | (2,606 | ) | |||||
Diluted net loss per share | $ | (0.01 | ) | $ | (0.07 | ) | |||
Acquisition Loan with Cathay Bank | |||||||||
On April 22, 2014, in conjunction with the Merck API Transaction, the Company entered into a secured term loan with Cathay Bank as lender. The principal amount of the loan is $21.9 million and bears a variable interest rate at the prime rate as published by The Wall Street Journal, with a minimum interest rate of 4.00%. Beginning on June 1, 2014 and through the maturity date, April 22, 2019, the Company must make monthly payments of principal and interest based on the then outstanding amount of the loan amortized over a 120 month period. On April 22, 2019, all amounts outstanding under the loan become due and payable, which would be approximately $12.0 million based upon an interest rate of 4.00%. The loan is secured by 65% of the issued and outstanding shares of stock in AFP and certain assets of the Company, including accounts receivable, inventory, certain investment property, goods, deposit accounts, and general intangibles but not including the Company’s equipment and real property. | |||||||||
The loan includes customary restrictions on, among other things, the Company’s ability to incur additional indebtedness, pay dividends in cash or make other distributions in cash, make certain investments, create liens, sell assets, and make loans. The loan also includes customary events of defaults, the occurrence and continuation of any of which provide Cathay Bank the right to exercise remedies against the Company and the collateral securing the loan. These events of default include, among other things, the Company’s failure to pay any amounts due under the loan, the Company’s insolvency, the occurrence of any default under certain other indebtedness or material agreements, and a final judgment against the Company that is not discharged in 30 days. | |||||||||
Note_4_Revenue_Recognition
Note 4 - Revenue Recognition | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Revenue Recognition Disclosure [Abstract] | |||||||||
Revenue Recognition Disclosure [Text Block] | 4. Revenue Recognition | ||||||||
Generally, revenue is recognized at the time of product delivery to the Company’s customers. In some cases, revenue is recognized at the time of shipment when stipulated by the terms of the sale agreements. The Company also records profit-sharing revenue stemming from a distribution agreement with Actavis, Inc., or Actavis (see Note 16). Profit-sharing revenue is recognized at the time Actavis sells the products to its customers. Revenues derived from contract manufacturing services are recognized when third-party products are shipped to customers, after the customer has accepted test samples of the products to be shipped. | |||||||||
The Company does not recognize product revenue unless the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) transfer of title has occurred, (iii) the price to the customer is fixed or determinable, and (iv) collection is reasonably assured. Furthermore, the Company does not recognize revenue until all customer acceptance requirements have been met. The Company estimates and records reductions to revenue for discounts, product returns, and pricing adjustments, such as wholesaler chargebacks, in the same period that the related revenue is recorded. | |||||||||
The Company’s accounting policy is to review each agreement involving contract development and manufacturing services to determine if there are multiple revenue-generating activities that constitute more than one unit of accounting. Revenues are recognized for each unit of accounting based on revenue recognition criteria relevant to that unit. The Company does not have any revenue arrangements with multiple deliverables. | |||||||||
Provision for Wholesaler Chargebacks | |||||||||
The provision for chargebacks is a significant estimate used in the recognition of revenue. As part of its sales terms with wholesale customers, the Company agrees to reimburse wholesalers for differences between the gross sales prices at which the Company sells its products to wholesalers and the actual prices of such products at the time wholesalers resell them under the Company’s various contractual arrangements with third parties such as hospitals and group purchasing organizations. The Company estimates chargebacks at the time of sale to wholesalers based on wholesaler inventory stocking levels, historic chargeback rates, and current contract pricing. | |||||||||
The provision for chargebacks is reflected in net revenues and a reduction to accounts receivables. The following table is an analysis of the chargeback provision: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 11,872 | $ | 18,104 | |||||
Provision related to sales made in the current period | 42,372 | 41,642 | |||||||
Credits issued to third parties | (42,909 | ) | (47,427 | ) | |||||
Ending balance | $ | 11,335 | $ | 12,319 | |||||
Changes in chargeback provision from period to period are primarily dependent on the Company’s sales to its wholesalers, the level of inventory held by the wholesalers, and on the wholesaler’s customer mix. The approach that the Company uses to estimate chargebacks has been consistently applied for all periods presented. Variations in estimates have been historically small. The Company continually monitors the provision for chargebacks and makes adjustments when it believes that the actual chargebacks may differ from the estimates. The settlement of chargebacks generally occurs within 30 days after the sale to wholesalers. | |||||||||
Accrual for Product Returns | |||||||||
The Company offers most customers the right to return qualified excess or expired inventory for partial credit; however, products sold to Actavis are non-returnable. The Company’s product returns primarily consist of the returns of expired products from sales made in prior periods. Returned products cannot be resold. At the time product revenue is recognized, the Company records an accrual for estimated returns. The accrual is based, in part, upon the historical relationship of product returns to sales and customer contract terms. The Company also assesses other factors that could affect product returns including market conditions, product obsolescence, and the introduction of new competition. Although these factors do not normally give the Company’s customers the right to return products outside of the regular return policy, the Company realizes that such factors could ultimately lead to increased returns. The Company analyzes these situations on a case-by-case basis and makes adjustments to the product return reserve as appropriate. | |||||||||
The provision for product returns is reflected in net revenues. The following table is an analysis of product return liability: | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 2,408 | $ | 4,592 | |||||
Provision for product returns | 803 | 140 | |||||||
Credits issued to third parties | (630 | ) | (313 | ) | |||||
Ending balance | $ | 2,581 | $ | 4,419 | |||||
For the three months ended March 31, 2015 and 2014, the Company’s aggregate product return rate was 1.1% and 1.3% of qualified sales, respectively. | |||||||||
Note_5_Loss_Per_Share
Note 5 - Loss Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share [Text Block] | 5. Loss per Share | ||||||||
Basic loss per share is calculated based upon the weighted-average number of common shares outstanding during the period and contingently issuable shares such as fully vested deferred stock units, or DSUs, in addition to common shares expected to be issued under the Company’s employee stock purchase plan, or ESPP, as of the date all necessary conditions for issuance have been met. Diluted income per share gives effect to all potential dilutive common shares outstanding during the period, such as stock options, nonvested DSUs and ESPP. | |||||||||
As the Company reported a net loss for the three months ended March 31, 2015, the diluted net loss per share, as reported, is equal to the basic net loss per share since the effect of the assumed exercise of stock options and conversion of both nonvested DSUs and common share expected to be issued under the Company’s ESPP is anti-dilutive. Total stock options, nonvested DSUs, and common shares expected to be issued under the Company’s ESPP, excluded from the three months ended March 31, 2015, net loss per share were 13,180,428; 857,319, and 165,167, respectively. Additionally, as the Company reported a net loss for the three months ended March 31, 2014, total stock options and nonvested DSUs excluded from the three months ended March 31, 2014, net loss per share were 11,745,577 and 403,591, respectively. | |||||||||
The following table provides the calculation of basic and diluted net loss per common share for each of the periods presented: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands, except per share data) | |||||||||
Basic and dilutive numerator: | |||||||||
Net loss | $ | (665 | ) | $ | (1,619 | ) | |||
Denominator: | |||||||||
Common shares outstanding | 44,601 | 38,766 | |||||||
Contingently issuable shares - vested DSUs | — | 3 | |||||||
Weighted-average common shares outstanding—basic | 44,601 | 38,769 | |||||||
Net effect of dilutive securities: | |||||||||
Stock options | — | — | |||||||
Contingently issuable shares – nonvested DSUs | — | — | |||||||
Weighted-average common shares outstanding—diluted | 44,601 | 38,769 | |||||||
Net loss per common share—basic | $ | (0.01 | ) | $ | (0.04 | ) | |||
Net loss per common share—diluted | $ | (0.01 | ) | $ | (0.04 | ) | |||
Note_6_Segment_Reporting
Note 6 - Segment Reporting | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting Disclosure [Text Block] | 6. Segment Reporting | ||||||||||||||||
The Company’s business is the development, manufacture, and marketing of pharmaceutical products. The Company has established two reporting segments that each report to the Chief Operating Decision Maker, or CODM, as defined in ASC 280, Segment Reporting. The Company’s performance is assessed and resources are allocated by the CODM based on the following two reportable segments: | |||||||||||||||||
- | Finished pharmaceutical products | ||||||||||||||||
- | Active pharmaceutical ingredients, or API | ||||||||||||||||
The finished pharmaceutical products segment manufactures, markets and distributes enoxaparin, Cortrosyn®, naloxone, lidocaine jelly, as well as various other critical and non-critical care drugs. The API segment manufactures and distributes recombinant human insulin and porcine insulin. | |||||||||||||||||
Selected financial information by reporting segment is presented below: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net revenues: | |||||||||||||||||
Finished pharmaceutical products | $ | 50,872 | $ | 45,870 | |||||||||||||
API | 6,014 | — | |||||||||||||||
Total net revenues | 56,886 | 45,870 | |||||||||||||||
Gross Profit: | |||||||||||||||||
Finished pharmaceutical products | 12,853 | 12,508 | |||||||||||||||
API | 427 | — | |||||||||||||||
Total gross profit | 13,280 | 12,508 | |||||||||||||||
Operating expenses | 20,541 | 14,477 | |||||||||||||||
Loss from operations | (7,261 | ) | (1,969 | ) | |||||||||||||
Non-operating income (expenses) | 1,064 | (502 | ) | ||||||||||||||
Loss before income taxes | $ | (6,197 | ) | $ | (2,471 | ) | |||||||||||
The Company manages its business segments to the gross profit level and manages its operating and other costs on a company-wide basis. The Company does not identify total assets by segment for internal purposes, as the Company’s CODM does not assess performance, make strategic decisions, or allocate resources based on assets. | |||||||||||||||||
Net revenues and carrying values of long-lived assets of enterprises by geographic regions are as follows: | |||||||||||||||||
Net Revenue | Long-Lived Assets | ||||||||||||||||
Three Months Ended | March 31, | December 31, | |||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
U.S. | $ | 52,960 | $ | 45,870 | $ | 101,229 | $ | 102,313 | |||||||||
China | — | — | 24,797 | 22,170 | |||||||||||||
France | 3,926 | — | 12,250 | 13,806 | |||||||||||||
Total | $ | 56,886 | $ | 45,870 | $ | 138,276 | $ | 138,289 | |||||||||
Note_7_Customer_and_Supplier_C
Note 7 - Customer and Supplier Concentration | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||
Concentration Risk Disclosure [Text Block] | 7. Customer and Supplier Concentration | ||||||||||||||||
Customer Concentrations | |||||||||||||||||
Three large wholesale drug distributors, AmerisourceBergen Corporation, or AmerisourceBergen, Cardinal Health, Inc. or Cardinal, and McKesson Corporation, or McKesson, are all distributors of the Company’s products, as well as suppliers of a broad range of health care products. Actavis, Inc. has exclusive marketing rights of the Company’s enoxaparin product to the U.S. retail pharmacy market. MannKind Corporation began buying RHI API from the Company in December 2014. The Company considers these five customers to be its major customers, as each individually, and they collectively, represented a significant percentage of the Company’s net revenue for the three months ended March 31, 2015 and 2014 and accounts receivable as of March 31, 2015 and December 31, 2014. The following table provides accounts receivable and net revenues information for these major customers: | |||||||||||||||||
% of Total Accounts | % of Net | ||||||||||||||||
Receivable | Revenue | ||||||||||||||||
March 31, | December 31, | Three Months Ended | |||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Actavis, Inc. | 16 | % | 18 | % | 23 | % | 30 | % | |||||||||
AmerisourceBergen | 17 | % | 5 | % | 16 | % | 15 | % | |||||||||
Cardinal Health | 19 | % | 15 | % | 18 | % | 15 | % | |||||||||
MannKind Corporation | — | 21 | % | 10 | % | — | |||||||||||
McKesson | 20 | % | 13 | % | 19 | % | 28 | % | |||||||||
Supplier Concentrations | |||||||||||||||||
The Company depends on suppliers for raw materials, active pharmaceutical ingredients, and other components that are subject to stringent U.S. Food and Drug Administration, or FDA, requirements. Some of these materials may only be available from one or a limited number of sources. Establishing additional or replacement suppliers for these materials may take a substantial period of time, as suppliers must be approved by the FDA. Furthermore, a significant portion of raw materials may only be available from foreign sources. If the Company is unable to secure, on a timely basis, sufficient quantities of the materials it depends on to manufacture and market its products, it could have a materially adverse effect on the Company’s business, financial condition, and results of operations. | |||||||||||||||||
Note_8_Fair_Value_Measurements
Note 8 - Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Disclosures [Text Block] | 8. Fair Value Measurements | ||||||||||||||||
The accounting standards of the Financial Accounting Standards Board, or FASB, define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability at the measurement date (an exit price). These standards also establish a hierarchy that prioritizes observable and unobservable inputs used in measuring fair value of an asset or liability, as described below: | |||||||||||||||||
· | Level 1 – Inputs to measure fair value are based on quoted prices (unadjusted) in active markets on identical assets or liabilities; | ||||||||||||||||
· | Level 2 – Inputs to measure fair value are based on the following: a) quoted prices in active markets on similar assets or liabilities, b) quoted prices for identical or similar instruments in inactive markets, or c) observable (other than quoted prices) or collaborated observable market data used in a pricing model from which the fair value is derived; and | ||||||||||||||||
· | Level 3 – Inputs to measure fair value are unobservable and the assets or liabilities have little, if any, market activity; these inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities based on best information available in the circumstances. | ||||||||||||||||
The Company measures fair value based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
The Company classifies its cash equivalents and short-term investments as Level 1 assets, as they are valued on a recurring basis using quoted market prices with no valuation adjustments applied. The Company does not hold any Level 2 or Level 3 instruments that are measured for fair value on a recurring basis. | |||||||||||||||||
The fair values of the Company’s financial assets and liabilities measured on a recurring basis, as of March 31, 2015 and December 31, 2014, are as follows: | |||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant | ||||||||||||||
(Level 1) | (Level 2) | Unobservable Inputs | |||||||||||||||
(Level 3) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market accounts | $ | 43,085 | $ | 43,085 | $ | — | $ | — | |||||||||
Restricted short-term investments: | |||||||||||||||||
Certificates of deposit | 1,495 | 1,495 | — | — | |||||||||||||
Fair value measurement as of March 31, 2015 | $ | 44,580 | $ | 44,580 | $ | — | $ | — | |||||||||
Cash equivalents: | |||||||||||||||||
Money market accounts | $ | 42,994 | $ | 42,994 | $ | — | $ | — | |||||||||
Restricted short-term investments: | |||||||||||||||||
Certificates of deposit | 1,495 | 1,495 | — | — | |||||||||||||
Fair value measurement as of December 31, 2014 | $ | 44,489 | $ | 44,489 | $ | — | $ | — | |||||||||
The fair value of the Company’s cash equivalents includes money market funds and certificates of deposit with maturities of one year or less. Short-term investments consist of certificate of deposit accounts that expire within 12 months for which market prices are readily available. The restrictions placed on the certificate of deposit accounts have a negligible effect on the fair value of these financial assets; these funds are restricted to meet the Company’s obligation for workers’ compensation claims. | |||||||||||||||||
The Company adopted the required fair value measurements and disclosures provisions related to nonfinancial assets and liabilities. These assets and liabilities are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances. These items primarily include long-lived assets, goodwill, and intangible assets for which the fair value of assets is determined as part of the related impairment test. As of March 31, 2015 and December 31, 2014, there were no significant adjustments to fair value for nonfinancial assets or liabilities. | |||||||||||||||||
Note_9_Goodwill_and_Intangible
Note 9 - Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | |||||||||||||||
9. Goodwill and Intangible Assets | |||||||||||||||
Intangible assets include product rights, trademarks, patents, land-use rights, and goodwill. The table below shows the weighted-average life, original cost, accumulated amortization, and net book value by major intangible asset classification: | |||||||||||||||
Weighted-Average Life (Years) | Original Cost | Accumulated Amortization | Net Book Value | ||||||||||||
(in thousands) | |||||||||||||||
Definite-lived intangible assets | |||||||||||||||
Product rights | 12 | $ | 27,134 | $ | 21,338 | $ | 5,796 | ||||||||
Patents | 10 | 293 | 85 | 208 | |||||||||||
Trademarks | 11 | 19 | 14 | 5 | |||||||||||
Land-use rights | 39 | 2,540 | 239 | 2,301 | |||||||||||
Other intangible assets | 1 | 592 | 509 | 83 | |||||||||||
Subtotal | 12 | 30,578 | 22,185 | 8,393 | |||||||||||
Indefinite-lived intangible assets | |||||||||||||||
Trademark | * | 29,225 | — | 29,225 | |||||||||||
Goodwill | |||||||||||||||
Finished pharmaceutical products | * | 280 | — | 280 | |||||||||||
API | * | 3,428 | — | 3,428 | |||||||||||
Subtotal | * | 32,933 | — | 32,933 | |||||||||||
As of March 31, 2015 | * | $ | 63,511 | $ | 22,185 | $ | 41,326 | ||||||||
Weighted-Average Life (Years) | Original Cost | Accumulated Amortization | Net Book Value | ||||||||||||
(in thousands) | |||||||||||||||
Definite-lived intangible assets | |||||||||||||||
Product rights | 12 | $ | 27,134 | $ | 20,896 | $ | 6,238 | ||||||||
Patents | 10 | 293 | 78 | 215 | |||||||||||
Trademarks | 11 | 19 | 15 | 4 | |||||||||||
Land-use rights | 39 | 2,540 | 221 | 2,319 | |||||||||||
Other intangible assets | 1 | 602 | 505 | 97 | |||||||||||
Subtotal | 12 | 30,588 | 21,715 | 8,873 | |||||||||||
Indefinite-lived intangible assets | |||||||||||||||
Trademark | * | 29,225 | — | 29,225 | |||||||||||
Goodwill | |||||||||||||||
Finished pharmaceutical products | * | 280 | — | 280 | |||||||||||
API | * | 4,187 | — | 4,187 | |||||||||||
Subtotal | * | 33,692 | — | 33,692 | |||||||||||
As of December 31, 2014 | * | $ | 64,280 | $ | 21,715 | $ | 42,565 | ||||||||
* Intangible assets with indefinite lives have an undeterminable average life. | |||||||||||||||
Goodwill | |||||||||||||||
The Changes in the carrying amounts of goodwill were as follows: | |||||||||||||||
March 31, | 31-Dec-14 | ||||||||||||||
2015 | |||||||||||||||
(in thousands) | |||||||||||||||
Beginning balance | $ | 4,467 | $ | 280 | |||||||||||
Goodwill related to acquisition of business | — | 4,369 | |||||||||||||
Currency translation and other adjustments | (759 | ) | (182 | ) | |||||||||||
Ending balance | $ | 3,708 | $ | 4,467 | |||||||||||
Primatene® Mist Trademark | |||||||||||||||
In January, 2009, the Company acquired the exclusive rights to the trademark, domain name, website and domestic marketing, distribution and selling rights related to Primatene® Mist, an over-the-counter bronchodilator product, for a total consideration of $29.2 million, which is its carrying value as of March 31, 2015. | |||||||||||||||
In determining the useful life of the trademark, the Company considered the following: the expected use of the intangible; the longevity of the brand; the legal, regulatory and contractual provisions that affect their maximum useful life; the Company’s ability to renew or extend the asset’s legal or contractual life without substantial costs; effects of the regulatory environment; expected changes in distribution channels; maintenance expenditures required to obtain the expected future cash flows from the asset; and considerations for obsolescence, demand, competition and other economic factors. | |||||||||||||||
As a result of environmental concerns about Chlorofluorocarbons, or CFCs, the FDA issued a final ruling on January 16, 2009 that required the CFC formulation of its Primatene® Mist product to be phased out by December 31, 2011. The former formulation of Primatene® Mist contained CFCs as a propellant; however, the Company intends to use the trademark for a future version of Primatene® Mist that utilizes hydrofluoroalkane, or HFA, as a propellant. | |||||||||||||||
In 2013, the Company filed a new drug application, or NDA, for Primatene® Mist HFA and received a Prescription Drug User Fee Act date set for May 2014. In May 2014, the Company received a complete response letter, or CRL, from the FDA, which requires additional non-clinical information, label revisions and follow-up studies (label comprehension, behavioral and actual use) to assess consumers’ ability to use the device correctly to support approval of the product in the over-the-counter setting. Additionally the CRL noted current Good Manufacturing Practices, or cGMP, deficiencies in a recent inspection of the Company’s API supplier’s manufacturing facility, which produces epinephrine, and indicated that the Company’s NDA could not be approved until these issues were resolved. Subsequent to the receipt of the CRL, the supplier notified the Company that the cGMP deficiencies were satisfactorily resolved. Accordingly, the Company believes this condition for approval has been satisfied. The Company met with the FDA in October 2014 to discuss preliminary data results and to clarify the FDA requirements for further studies. The Company is in the process of generating the remaining data required by the CRL and will submit an NDA Amendment that it believes will address the FDA’s concerns. However, there can be no guarantee that any amendment to the Company’s NDA will result in timely approval of the product or approval at all. | |||||||||||||||
Based on the Company’s filed version of Primatene® Mist HFA, the Company’s plan to submit an NDA amendment to address the FDA’s concerns, the long history of the Primatene® Mist trademark (marketed since 1963) and the Company’s perpetual rights to the trademark, the Company has determined that the trademark has an indefinite useful life. If the HFA version is approved by the FDA, it will be marketed under the same trade name; therefore, an impairment charge would not be required. | |||||||||||||||
Note_10_Inventories
Note 10 - Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventory Disclosure [Text Block] | 10. Inventories | ||||||||
Inventories are stated at the lower of cost or market, using the first-in, first-out method. Provisions are made for slow-moving, unsellable or obsolete items. Inventories consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Raw materials and supplies | $ | 45,590 | $ | 41,996 | |||||
Work in process | 19,534 | 16,221 | |||||||
Finished goods | 20,643 | 24,755 | |||||||
Total inventory | 85,767 | 82,972 | |||||||
Less reserve for excess and obsolete inventories | (880 | ) | (640 | ) | |||||
Total inventory, net | $ | 84,887 | $ | 82,332 | |||||
Note_11_Property_Plant_and_Equ
Note 11 - Property, Plant, and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | 11. Property, Plant, and Equipment | ||||||||
Property, plant, and equipment consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Building | $ | 67,354 | $ | 67,760 | |||||
Leasehold improvements | 24,106 | 23,960 | |||||||
Land | 6,890 | 7,020 | |||||||
Machinery and equipment | 104,250 | 104,819 | |||||||
Furniture, fixtures, and automobiles | 12,360 | 12,213 | |||||||
Construction in progress | 28,516 | 25,068 | |||||||
Total property, plant, and equipment | 243,476 | 240,840 | |||||||
Less accumulated depreciation and amortization | (105,200 | ) | (102,551 | ) | |||||
Total property, plant, and equipment, net | $ | 138,276 | $ | 138,289 | |||||
As of March 31, 2015, the Company had $3.6 million in capitalized manufacturing equipment that is intended to be used specifically for the manufacture of Primatene® Mist HFA. The Company will continue to monitor developments with the FDA as it relates to its Primatene® Mist HFA indefinite lived intangible asset in determining if there is an impairment of these related fixed assets (see Note 9). | |||||||||
Note_12_Debt
Note 12 - Debt | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt Disclosure [Text Block] | 12. Debt | ||||||||
Debt consists of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Loans with East West Bank | |||||||||
Mortgage payable due January 2016 | $ | 3,847 | $ | 3,887 | |||||
Mortgage payable due September 2016 | 2,269 | 2,289 | |||||||
Line of credit facility due March 2016 | — | — | |||||||
Equipment loan due April 2017 | 2,621 | 2,923 | |||||||
Equipment loan due January 2019 | 5,903 | — | |||||||
Loans with Cathay Bank | |||||||||
Mortgage payable due April 2021 | 4,526 | 4,549 | |||||||
Revolving line of credit due May 2016 | — | — | |||||||
Acquisition loan due April 2019 | 20,410 | 20,870 | |||||||
Loans with Seine-Normandie Water Agency | |||||||||
French government loan 1 due March 2018 | 45 | — | |||||||
French government loan 2 due June 2020 | 153 | — | |||||||
French government loan 3 due July 2021 | 380 | — | |||||||
Payment obligation to Merck | 7,307 | 8,160 | |||||||
Equipment under Capital Leases | 956 | 1,022 | |||||||
Total debt and capital leases | 48,417 | 43,700 | |||||||
Less current portion of long-term debt and capital leases | 12,531 | 7,594 | |||||||
Long-term debt and capital leases, net of current portion | $ | 35,886 | $ | 36,106 | |||||
Loans with East West Bank | |||||||||
Mortgage Payable—Due January 2016 | |||||||||
In December 2010, the Company refinanced an existing mortgage term loan, which had a principal balance outstanding of $4.5 million at December 31, 2010. The loan is payable in monthly installments with a final balloon payment of $3.8 million. The loan is secured by one of the buildings at the Company’s Rancho Cucamonga, California, headquarters complex, as well as one of its buildings at its Chino, California, complex. The loan bears a variable interest rate at the prime rate as published by The Wall Street Journal, with a minimum interest rate of 5.00%, and matures in January 2016. | |||||||||
Mortgage Payable—Due September 2016 | |||||||||
In September 2006, the Company entered into a mortgage term loan in the principal amount of $2.8 million, which matures in September 2016. The loan is payable in monthly installments with a final balloon payment of $2.2 million plus interest. The loan is secured by one of the buildings at the Company’s Rancho Cucamonga, California, headquarters complex. The variable interest rate is equal to the three-month LIBOR plus 2.50%. | |||||||||
Line of Credit Facility—Due March 2016 | |||||||||
In March 2012, the Company entered into a $10.0 million line of credit facility. Borrowings under the facility are secured by inventory and accounts receivable. Borrowings under the facility bear interest at the prime rate as published by The Wall Street Journal. This facility was to mature in July 2014. In April 2014, the Company extended the maturity date to March 2016. As of March 31, 2015, the Company did not have any amounts outstanding under this facility. | |||||||||
Equipment Loan—Due April 2017 | |||||||||
In March 2012, the Company entered into an $8.0 million revolving credit facility. In March 2013, the Company converted the outstanding principal balance of $4.9 million into an equipment loan. Borrowings under the facility are secured by equipment purchased with debt proceeds. Borrowings under the facility bear interest at the prime rate as published by The Wall Street Journal, with a minimum interest rate of 3.50%. This facility matures in April 2017. | |||||||||
Equipment Loan—Due January 2019 | |||||||||
In July 2013, the Company entered into an $8.0 million line of credit facility. Borrowings under the facility were secured by equipment. The facility bore interest at the prime rate as published in The Wall Street Journal plus 0.25% and was to mature in January 2019. | |||||||||
In January 2015, the Company drew down $6.2 million from the line of credit facility. Subsequently, the facility was then converted into an equipment loan with an outstanding principal balance of $6.2 million. Borrowings under the facility are secured by equipment purchased with the debt proceeds. The Company entered into a fixed interest rate swap contract on this facility to exchange the floating rate for a fixed interest payment over the life of the facility without the exchange of the underlying notional debt amount. The facility bears interest at a fixed rate of 4.48% and matures in January 2019. As of March 31, 2015, the loan had a book value of $5.9 million, which approximates fair value. The fair value of the unrealized loss was immaterial to the Company’s consolidated financial statement at March 31, 2015. The variable interest rate is deemed to be a Level 2 input for measuring fair value. | |||||||||
Loans with Cathay Bank | |||||||||
Mortgage Payable—Due April 2021 | |||||||||
In March 2007, the Company entered into a mortgage term loan in the principal amount of $5.3 million, which matured in March 2014. In April 2014, the Company refinanced the mortgage term loan, which had a principal balance outstanding of $4.6 million. The loan is payable in monthly installments of $28.1 thousand with a final balloon payment of $3.9 million. The loan is secured by the building at the Company’s Canton, Massachusetts, location and bears interest at a fixed rate of 5.42% and matures in April 2021. As of March 31, 2015, the loan had a fair value of $4.8 million, compared to a book value of $4.5 million. The fair value of the loan was determined by using the interest rate associated with the Company’s mortgage loans with similar terms and collateral that has variable interest rates. The fair value of debt obligations is not measured on a recurring basis and the variable interest rate is deemed to be a Level 2 input for measuring fair value. | |||||||||
Revolving Line of Credit—Due May 2016 | |||||||||
In April 2012, the Company entered into a $20.0 million revolving line of credit facility. Borrowings under the facility are secured by inventory, accounts receivables, and intangibles held by the Company. The facility bears interest at the prime rate as published by The Wall Street Journal with a minimum interest rate of 4.00%. This revolving line of credit was to mature in May 2014. In April 2014, the Company modified the facility to extend the maturity date to May 2016. As of March 31, 2015, the Company did not have any amounts outstanding under this facility. | |||||||||
Acquisition Loan with Cathay Bank—Due April 2019 | |||||||||
On April 22, 2014, in conjunction with the Merck API Transaction, the Company entered into a secured term loan with Cathay Bank as lender. The principal amount of the loan is $21.9 million and bears a variable interest rate at the prime rate as published by The Wall Street Journal, with a minimum interest rate of 4.00%. Beginning on June 1, 2014 and through the maturity date, April 22, 2019, the Company must make monthly payments of principal and interest based on the then outstanding amount of the loan amortized over a 120-month period. On April 22, 2019, all amounts outstanding under the loan become due and payable, which would be approximately $12.0 million based upon an interest rate of 4.00%. The loan is secured by 65% of the issued and outstanding shares of stock in AFP and certain assets of the Company, including accounts receivable, inventory, certain investment property, goods, deposit accounts, and general intangibles but not including the Company’s equipment and real property. | |||||||||
The loan includes customary restrictions on, among other things, the Company’s ability to incur additional indebtedness, pay dividends in cash or make other distributions in cash, make certain investments, create liens, sell assets, and make loans. The loan also includes customary events of defaults, the occurrence and continuation of any of which provide Cathay Bank the right to exercise remedies against the Company and the collateral securing the loan. These events of default include, among other things, the Company’s failure to pay any amounts due under the loan, the Company’s insolvency, the occurrence of any default under certain other indebtedness or material agreements, and a final judgment against the Company that is not discharged in 30 days. | |||||||||
Loans with Seine-Normandie Water Agency | |||||||||
In January 2015, the Company entered into three French government loans with the Seine-Normandie water agency in the aggregate amount of €0.6 million, or $0.7 million, subject to currency exchange fluctuations. The life of the loans range between three to six years, and includes annual equal payments and bears no interest over the life of the loans. | |||||||||
As of March 31, 2015, the payment obligation had an aggregate book value of €0.5 million, or $0.6 million, which approximates fair value. The fair value of the payment obligation was determined by using the interest rate associated with the Company’s acquisition loan with Cathay Bank that bears a variable interest rate at the prime rate as published by the Wall Street Journal, with a minimum interest rate of 4.00%. The fair value of the debt obligation is not measured on a recurring basis and the variable interest rate is deemed to be a Level 2 input for measuring fair value. | |||||||||
Payment Obligation | |||||||||
Merck—Due December 2017 | |||||||||
On April 30, 2014, in conjunction with the Merck API Transaction, the Company entered into a commitment obligation with Merck, in the principal amount of €11.6 million, or $16.0 million, subject to currency exchange fluctuations. The terms of the purchase price include annual payments over four years and bear a fixed interest rate of 3.00%. The final payment to Merck relating to this obligation is due December 2017. In December 2014, the Company made a principal payment of €4.9 million, or $6.0 million. | |||||||||
As of March 31, 2015, the payment obligation had a book value of $7.3 million, which approximates fair value. The fair value of the payment obligation was determined by using the interest rate associated with the Company’s acquisition loan with Cathay Bank that bears a variable interest rate at the prime rate as published by the Wall Street Journal, with a minimum interest rate of 4.00%. The fair value of the debt obligation is not measured on a recurring basis and the variable interest rate is deemed to be a Level 2 input for measuring fair value. | |||||||||
Covenants | |||||||||
At March 31, 2015, the Company was in compliance with its debt covenants, which include a minimum current ratio, minimum debt service coverage, minimum tangible net worth, and maximum debt-to-effective-tangible-net-worth ratio, computed on a consolidated basis in some instances and on a separate-company basis in others. At December 31, 2014, the Company was not in compliance with two of its financial covenants with Cathay Bank. The first one requiring a fixed charge coverage ratio of 1.2 to 1.0, or greater, and the second one required a minimum debt service coverage ratio of 1.5 to 1.0, or greater. On March 13, 2015, the Company obtained waivers of the debt covenants for the period ending December 31, 2014. | |||||||||
Equipment under Capital Leases | |||||||||
The Company entered into leases for certain equipment under capital leasing arrangements, which will expire at various times through 2020. The cost of equipment under capital leases was $1.5 million at March 31, 2015 and December 31, 2014. | |||||||||
The accumulated amortization of equipment under capital leases was $0.5 million and $0.4 million at March 31, 2015 and December 31, 2014, respectively. Amortization of assets recorded under capital leases is included in depreciation and amortization expense in the accompanying consolidated financial statements. | |||||||||
Note_13_Income_Taxes
Note 13 - Income Taxes | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Tax Disclosure [Text Block] | 13. Income Taxes | ||||||||
The following table sets forth the Company’s income tax provision for the periods indicated: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Loss before taxes | $ | (6,197 | ) | $ | (2,471 | ) | |||
Income tax benefit | (5,532 | ) | (852 | ) | |||||
Net loss | $ | (665 | ) | $ | (1,619 | ) | |||
Income tax benefit as a percentage of income before income taxes | (89.3 | )% | (34.5 | )% | |||||
The Company’s income tax benefit for the three months ended March 31, 2015 was (89.3%) of income before income taxes. The blended effective income tax rate expected for the year ended December 31, 2015 is (50.4%). This tax provision rate factors in various domestic deductions and the impact of foreign operations on the Company’s overall tax rate. The Company’s income tax benefit of (34.5%) during the three months ended March 31, 2014, factored in similar deductions as well as the impact of foreign operations. | |||||||||
Valuation Allowance | |||||||||
In assessing the need for a valuation allowance, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. Ultimately, the realization of deferred tax assets depends on the existence of future taxable income. Management considers sources of taxable income such as income in prior carryback periods, future reversal of existing deferred taxable temporary differences, projected future taxable income, and tax-planning strategies. Based on all available evidence, management believes that the Company’s deferred tax assets will more likely than not be realized in future years. | |||||||||
In connection with the AFP purchase accounting, the Company recorded a valuation allowance against an intangible deferred tax asset of €3.2 million, or $4.4 million with an offsetting entry to goodwill, since management did not believe that it was more likely than not that the deferred tax asset would be realized. In March 2015, the Company reversed the €3.2 million, or $3.3 million deferred tax valuation allowance in conjunction with the transfer of AFPs intangible assets from France to the U.S. The difference in U.S. dollars relates to the currency exchange fluctuation, which is recorded in the Company’s accumulated other comprehensive loss as a foreign currency translation adjustment. | |||||||||
Note_14_Stockholders_Equity
Note 14 - Stockholders' Equity | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | 14. Stockholders' Equity | ||||||||||||||||
A summary of the changes in stockholders’ equity for the three months ended March 31, 2015 consisted of the following: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Stockholders’ equity as of December 31, 2014 | $ | 281,860 | |||||||||||||||
Net loss | (665 | ) | |||||||||||||||
Accumulated other comprehensive loss | (2,993 | ) | |||||||||||||||
Repurchase of common stock | (572 | ) | |||||||||||||||
Exercise of stock options | 910 | ||||||||||||||||
Nonemployee share-based compensation expense | 6 | ||||||||||||||||
Employee share-based compensation expense | 2,224 | ||||||||||||||||
Treasury stock | (1,489 | ) | |||||||||||||||
Stockholders’ equity as of March 31, 2015 | $ | 279,281 | |||||||||||||||
2014 Employee Stock Purchase Plan | |||||||||||||||||
In June 2014, the Company adopted the Employee Stock Purchase Plan, or ESPP, in connection with its initial public offering. A total of 2,000,000 shares of common stock are reserved for issuance under this plan. The Company’s ESPP permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. Under the ESPP, the Company may specify offerings with durations of not more than 27 months, and may specify shorter purchase periods within each offering. Each offering will have one or more purchase dates on which shares of its common stock will be purchased for employees participating in the offering. An offering may be terminated under certain circumstances. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock at the beginning of an offering period or on the date of purchase. | |||||||||||||||||
The first offering period commenced on February 1, 2015 and ends on November 30, 2015. As of March 31, 2015, the Company has not issued any shares of common stock under the ESPP and 2,000,000 shares of its common stock remained available for issuance. | |||||||||||||||||
For the three months ended March 31, 2015, the Company recorded ESPP expense of $0.1 million. | |||||||||||||||||
Share Buyback Program | |||||||||||||||||
On November 6, 2014 the Company’s Board of Directors authorized a $10.0 million share buyback program, which is expected to continue for an indefinite period of time. The primary goal of the program is to offset dilution created by the Company’s equity compensation programs. | |||||||||||||||||
Purchases are being made through the open market and private block transactions pursuant to Rule 10b5-1 plans, privately negotiated transactions or other means as determined by the Company’s management and in accordance with the requirements of the Securities and Exchange Commission. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, and other conditions. These repurchased shares are accounted for under the cost method and are included as a component of treasury stock in the Company’s Consolidated Balance Sheets. | |||||||||||||||||
Pursuant to the Company’s share repurchase program, the Company purchased 116,300 shares of its common stock during the three months ended March 31, 2015 totaling $1.5 million. | |||||||||||||||||
Share-Based Award Activity and Balances | |||||||||||||||||
The Company accounts for share-based compensation payments in accordance with ASC 718, which require measurement and recognition of compensation expense at fair value for all share-based payment awards made to employees, directors, and nonemployees. Under these standards, the fair value of share-based payment awards is estimated at the grant date using an option-pricing model and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. The Company uses the Black-Scholes option-pricing model to estimate the fair value of share-based awards and recognizes share-based compensation cost over the vesting period using the straight-line single option method. Non-vested stock options held by non-employees are revalued using the Company’s estimate of fair value at each balance sheet date. | |||||||||||||||||
The weighted-averages for key assumptions used in determining the fair value of options granted during the three months ended March 31, 2015 and 2014 are as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Average volatility | 27.5 | % | 27.8 | % | |||||||||||||
Risk-free interest rate | 1.3 | % | 1.3 | % | |||||||||||||
Weighted-average expected life in years | 4.7 | 4.3 | |||||||||||||||
Dividend yield rate | 0 | % | 0 | % | |||||||||||||
A summary of option activity under all plans for the three months ended March 31, 2015 is presented below: | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value(1) | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term (Years) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding as of December 31, 2014 | 11,371,891 | $ | 15.12 | ||||||||||||||
Options granted | 1,914,679 | 15.81 | |||||||||||||||
Options exercised | (74,817 | ) | 12.55 | ||||||||||||||
Options cancelled | (4,020 | ) | 14.21 | ||||||||||||||
Options expired | (27,305 | ) | 28.28 | ||||||||||||||
Outstanding as of March 31, 2015 | 13,180,428 | $ | 15.21 | 4.78 | $ | 21,639 | |||||||||||
Exercisable as of March 31, 2015 | 6,594,669 | $ | 16.81 | 3.42 | $ | 10,654 | |||||||||||
-1 | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the Company’s common stock for those awards that have an exercise price below the estimated fair value at March 31, 2015. | ||||||||||||||||
For the three months ended March 31, 2015 and 2014, the Company recorded stock option expense related to employees under all plans of $1.6 million and $1.3 million, respectively. | |||||||||||||||||
Information relating to option grants and exercises is as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Weighted-average grant date fair value | $ | 3.53 | $ | 3.2 | |||||||||||||
Intrinsic value of options exercised | 189 | — | |||||||||||||||
Cash received | 910 | — | |||||||||||||||
Total fair value of the options vested during the year | 1,423 | 526 | |||||||||||||||
A summary of the status of the Company’s nonvested options as of March 31, 2015, and changes during the three months ended March 31, 2015, are presented below: | |||||||||||||||||
Options | Weighted-Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Nonvested as of December 31, 2014 | 5,090,591 | $ | 3.34 | ||||||||||||||
Options granted | 1,914,679 | 3.53 | |||||||||||||||
Options vested | (415,491 | ) | 3.43 | ||||||||||||||
Options forfeited | (4,020 | ) | 5.2 | ||||||||||||||
Nonvested as of March 31, 2015 | 6,585,759 | 3.39 | |||||||||||||||
As of March 31, 2015, there was $16.4 million of total unrecognized compensation cost, net of forfeitures, related to nonvested stock option based compensation arrangements granted under the Company’s 2005 Equity Incentive Award Plan, or the 2005 Plan. The cost is expected to be recognized over a weighted-average period of 2.6 years and will be adjusted for future changes in estimated forfeitures. | |||||||||||||||||
Deferred Stock Units/Restricted Stock Units | |||||||||||||||||
Beginning in 2007, the Company granted deferred stock units, or DSUs, to certain employees and members of the Board of Directors with a vesting period of up to five years, and commencing in 2015, such equity was issued as restricted stock units, or RSUs (such RSUs and DSUs are collectively referred to herein as DSUs). The grantee receives one share of common stock at a specified future date for each DSU awarded. The DSUs may not be sold or otherwise transferred until certificates of common stock have been issued, recorded, and delivered to the participant. The DSUs do not have any voting or dividend rights prior to the issuance of certificates of the underlying common stock. The share-based expense associated with these grants was based on the Company’s common stock fair value at the time of grant and is amortized over the requisite service period, which generally is the vesting period. The Company recorded a total expense of $0.5 million and $0.2 million for the three months ended March 31, 2015 and 2014, respectively, for these DSU awards. | |||||||||||||||||
As of March 31, 2015, there was $11.1 million of total unrecognized compensation cost, net of forfeitures, related to nonvested DSU-based compensation arrangements granted under the 2005 Plan. The cost is expected to be recognized over a weighted-average period of 2.9 years and will be adjusted for future changes in estimated forfeitures. | |||||||||||||||||
Additionally, prior to the Company’s IPO, the Company issued DSUs that were treated as an accounting exchange for expiring stock options, whereby the fair value of the expiring stock options equaled the fair value of the DSUs at the date of the exchange. As such, the Company did not record any expense related to these award modifications. | |||||||||||||||||
Information relating to DSU grants and deliveries is as follows: | |||||||||||||||||
Total DSUs Issued | Total Fair Market | ||||||||||||||||
Value of DSUs Issued | |||||||||||||||||
as Compensation(1) | |||||||||||||||||
(in thousands) | |||||||||||||||||
DSUs outstanding at December 31, 2014 | 503,010 | ||||||||||||||||
DSUs granted | 452,420 | $ | 6,764 | ||||||||||||||
DSUs forfeited | (2,256 | ) | |||||||||||||||
Common stock delivered | (58,803 | ) | |||||||||||||||
DSUs surrendered for taxes | (37,052 | ) | |||||||||||||||
DSUs outstanding at March 31, 2015 | 857,319 | ||||||||||||||||
-1 | The total fair market value is derived from the number of DSUs granted times the current stock price on the date of grant. | ||||||||||||||||
The Company recorded share-based compensation expense under all plans and is included in the Company’s consolidated statement of operations as follows: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Cost of revenues | $ | 488 | $ | 293 | |||||||||||||
Operating expenses: | |||||||||||||||||
Selling, distribution and marketing | 40 | 21 | |||||||||||||||
General and administrative | 1,490 | 1,176 | |||||||||||||||
Research and development | 212 | 126 | |||||||||||||||
Total share-based compensation | $ | 2,230 | $ | 1,616 | |||||||||||||
Note_15_Employee_Benefits
Note 15 - Employee Benefits | 3 Months Ended |
Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 15. Employee Benefits |
401(k) Plan | |
The Company has a defined contribution 401(k) plan, or the Plan, whereby eligible employees voluntarily contribute up to a defined percentage of their annual compensation. The Company matches contributions at a rate of 50% on the first 4% of employee contributions, or up to 2% of their annual compensation, and pays the administrative costs of the Plan. Employer contributions vest over four years. Total employer contributions for the three months ended March 31, 2015 and 2014 were approximately $0.2 million and $0.2 million, respectively. | |
Defined Benefit Pension Plan | |
In connection with the Merck API Transaction, the Company assumed an obligation associated with a defined-benefit plan for eligible employees of AFP. This plan provides benefits to the employees from the date of retirement and is based on the employee’s length of time with the Company. The calculation is based on a statistical calculation combining a number of factors that include the employee’s age, length of service, and AFPs turnover rate. | |
The liability under the plan is based on a discount rate of 1.75% as of March 31, 2015 and December 31, 2014. The liability is included in accrued liabilities in the accompanying consolidated balance sheets. The plan is currently unfunded, and the benefit obligation under the plan was $1.0 million and $1.1 million at March 31, 2015 and December 31, 2014, respectively. The Company recorded an immaterial amount of expense under the plan for the three months ended March 31, 2015. | |
Note_16_Commitments_and_Contin
Note 16 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 16. Commitments and Contingencies |
Distribution Agreement with Actavis, Inc. | |
In May 2005, the Company entered into an agreement to grant certain exclusive marketing rights for its enoxaparin product to Andrx Pharmaceuticals, Inc., or Andrx, which generally extends to the U.S. retail pharmacy market. To obtain such rights, Andrx made a non-refundable, upfront payment of $4.5 million to the Company upon execution of the agreement which was classified as deferred revenues. Under the agreement, the Company is paid a fixed cost per unit sold to Andrx and also shares in the gross profits (as defined) from Andrx’s sales of the product in the U.S. retail pharmacy market. In November 2006, Watson Pharmaceuticals, Inc., or Watson, acquired Andrx and all of the rights and obligations associated with the agreement. In January 2013, Watson adopted Actavis, Inc. as its new global name. The agreement has a term that expires in January 2019 and can be extended by Actavis for an additional three years. The agreement may only be terminated prior to the end of the term by either party in the case of a breach of contract or insolvency of the other party, by the Company if Actavis fails to purchase a minimum number of units and by Actavis if an infringement claim is made against Actavis. | |
In January 2012, the Company launched enoxaparin, beginning the seven-year period in which Actavis has the exclusive marketing rights for the Company’s enoxaparin product in the U.S. retail pharmacy market and the start of the Company’s recognition of the $4.5 million deferred revenue over this period on a straight-line basis. Actavis has an option to renew the agreement for an additional three years. As of March 31, 2015 and December 31, 2014, the balance of the deferred revenue was $2.5 million and $2.6 million, respectively. | |
The Company manufactures its enoxaparin product for the retail market according to demand specifications of Actavis. Upon shipment of enoxaparin to Actavis, the Company recognizes product sales at an agreed transfer price and records the related cost of products sold. Based on the terms of the Company’s distribution agreement with Actavis, the Company is entitled to a share of the ultimate profits based on the eventual net revenue from enoxaparin sales by Actavis to the end user less the agreed transfer price originally paid by Actavis to the Company. Actavis provides the Company with a quarterly sales report that calculates the Company’s share of Actavis’ enoxaparin gross profit. The Company records its share of Actavis’ gross profit as a component of net revenue. | |
Supply Agreement with MannKind Corporation | |
On July 31, 2014, the Company entered in a supply agreement with MannKind Corporation, or MannKind, pursuant to which the Company will manufacture for and supply to MannKind certain quantities of recombinant human insulin, or RHI, for use in MannKind’s product Afrezza®. Under the terms of the supply agreement, the Company will be responsible for manufacturing the RHI in accordance with MannKind’s specifications and agreed-upon quality standards. MannKind has agreed to purchase annual minimum quantities of RHI under the supply agreement of an aggregate amount of approximately €120.1 million, or approximately $146.0 million, in calendar years 2015 through 2019. | |
MannKind paid a non-refundable reservation fee to the Company in the amount of €11.0 million, or approximately $14.0 million. Under the agreement, the non-refundable reservation fee is considered as partial payment for the purchase commitment quantity for 2015. The Company classified the amount as deferred revenue. As of March 31, 2015, the balance of the deferred revenue was €5.8 million, or $6.2 million. | |
Unless earlier terminated, the term of the supply agreement expires on December 31, 2019 and can be renewed for additional, successive two-year terms upon 12 months’ written notice given prior to the end of the initial term or any additional two-year term. MannKind and the Company each have customary termination rights, including termination for material breach that is not cured within a specific time frame or in the event of liquidation, bankruptcy, or insolvency of the other party. In addition, MannKind may terminate the supply agreement upon two years’ prior written notice to the Company without cause or upon 30 days prior written notice to the Company if a controlling regulatory authority withdraws approval for Afrezza®; provided, however, in the event of a termination pursuant to either of these scenarios, the provisions of the supply agreement require MannKind to pay the full amount of all unpaid purchase commitments due over the initial term within 60 calendar days of the effective date of such termination. | |
In January 2015, the Company entered into a supply option agreement with MannKind, pursuant to which MannKind will have the option to purchase RHI, for use in MannKind’s product Afrezza®, in addition to the amounts specified in the July 2014 supply agreement. Under the agreement, MannKind has the option to purchase additional RHI in calendar years 2016 through 2019. In the event MannKind elects not to exercise its minimum annual purchase option for any year, MannKind shall pay the Company a capacity cancellation fee. | |
Operating Lease Agreements | |
The Company leases real and personal property, in the normal course of business, under various non-cancelable operating leases. The Company, at its option, can renew a substantial portion of its leases, at the market rate, for various renewal periods ranging from one to six years. Rental expense under these leases for the three months ended March 31, 2015 was approximately $0.8 million, compared to $0.7 million for the three months ended March 31, 2014. | |
Purchase Commitments | |
As of March 31, 2015, the Company has entered into commitments to purchase equipment and raw materials for an aggregate of $6.7 million. The Company anticipates that most of these commitments will be fulfilled by 2016. | |
The Company entered into agreements with a Chinese governmental entity to acquire land-use rights to real property in Nanjing, China. Under the terms of these agreements, the Company committed to invest capital in its wholly-owned subsidiary, ANP, and to develop these properties as an API manufacturing facility for the Company’s pipeline. In conjunction with these agreements, ANP modified its business license on July 3, 2012 to increase its authorized capital. As of March 31, 2015, the Company had invested approximately $45.0 million in ANP of its registered capital commitment of $61.0 million. The Company has committed to invest an additional $16.0 million in ANP by December 2017. This investment in ANP will result in cash being transferred from the U.S. parent company to ANP. | |
Per these agreements, in January 2010, the Company acquired certain land-use rights with a carrying value of $1.2 million. In addition, the Company purchased additional land-use rights in November 2012 for $1.3 million. The Company committed to spend approximately $15.0 million in land development. The agreements require the construction of fixed assets on the property and specified a timetable for the construction of these fixed assets. The current pace of development of the property is behind the schedules described in the purchase agreements and, per the purchase agreement, potential monetary penalties could result if the development is delayed or not completed in accordance with the guidelines stated in the purchase agreements. | |
Note_17_Litigation
Note 17 - Litigation | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Legal Matters and Contingencies [Text Block] | 17. Litigation |
Enoxaparin Patent Litigation | |
In September 2011, Momenta Pharmaceuticals, Inc., or Momenta, a Boston-based pharmaceutical company, and Sandoz Inc., or Sandoz, the generic division of Novartis, initiated litigation against the Company for alleged patent infringement of two patents related to testing methods for batch release of enoxaparin, which the Company refers to as the “‘886 patent” and the “‘466 patent.” The lawsuit was filed in the United States District Court for the District of Massachusetts, or the District Court. In October 2011, the District Court issued a preliminary injunction barring the Company from selling its generic enoxaparin product and also requiring Momenta and Sandoz to post a $100.1 million bond. The preliminary injunction was stayed by the United States Court of Appeals for the Federal Circuit, or Federal Circuit, in January 2012, and reversed by the Federal Circuit in August 2012. | |
In January 2013, the Company moved for summary judgment of non-infringement of both patents. Momenta and Sandoz withdrew their allegations as to the ‘466 patent, and in July 2013, the District Court granted the Company’s motion for summary judgment of non-infringement of the ‘886 patent and denied Momenta and Sandoz’s motion for leave to amend infringement contentions. On January 24, 2014, the District Court judge entered final judgment in the Company’s favor on both patents. Momenta and Sandoz also filed a motion to collect attorney’s fees and costs relating to a discovery motion which the District Court granted. The parties have briefed the amount of attorney’s fees that should be imposed, which the Company believes should not exceed an amount of approximately $40 thousand. On January 30, 2014, Momenta and Sandoz filed a notice of appeal to the Federal Circuit appealing the court’s final judgment including summary judgment denying Momenta and Sandoz’s motion for leave to amend their infringement contentions. The Company intends to attempt to collect the $100.1 million bond posted by Momenta and Sandoz following the appeal. Momenta filed its opening appeal brief on June 27, 2014, the Company filed its responding brief on September 25, 2014, and Momenta filed its reply brief on November 13, 2014. The Federal Circuit held oral arguments on May 4, 2015. | |
False Claims Act Litigation | |
In January 2009, the Company filed a qui tam complaint in the U.S. District Court for the Central District of California alleging that Aventis Pharma S.A., or Aventis, through its acquisition of a patent through false and misleading statements to the U.S. Patent and Trademark Office, as well as through false and misleading statements to the FDA, overcharged the federal and state governments for its Lovenox® product. If the Company is successful in this litigation, it could be entitled to a portion of any damage award that the government ultimately may recover from Aventis. In October 2011, the District Court unsealed the Company’s complaint. Since the complaint was unsealed, this case has steadily progressed and remains pending. | |
On February 28, 2014, Aventis filed a motion for summary judgment on the issue of the adequacy of the Company’s notice letter to the government, and the District Court denied Aventis’ motion for summary judgment in a final order it issued on May 12, 2014. On June 9, 2014, at Aventis’ request, the District Court issued an order certifying for appeal its order denying Aventis’ motion for summary judgment. On June 9, 2014, Aventis filed with the United States Court of Appeals for the Ninth Circuit a petition for permission to appeal the District Court’s denial of Aventis’ motion for summary judgment, and the Company filed an opposition to Aventis’ petition on June 19, 2014. On August 22, 2014, the Court of Appeals granted Aventis’ petition. The parties have completed and filed their respective appeal briefs with the Ninth Circuit. A date for oral argument has not yet been set by the Ninth Circuit. | |
The District Court set an evidentiary hearing for July 7, 2014 on the “original source” issue, a key element under the False Claims Act. The evidentiary hearing was conducted as scheduled, from July 7, 2014 through July 10, 2014. The Company filed its post-hearing brief on August 11, 2014, Aventis filed its post-hearing brief on September 10, 2014, and the Company filed its reply brief on September 24, 2014. The District Court conducted a hearing for closing argument on the original source issue on October 10, 2014. The original source issue currently is under submission with the District Court. | |
California Employment Litigation | |
On January 6, 2015, the Company received a formal demand from Plaintiff’s counsel in an employment related lawsuit captioned Eva Hernandez v. International Medication Systems Limited, in connection with a complaint originally filed on February 4, 2013 in the Superior Court of California County of Los Angeles, by plaintiff Eva Hernandez on behalf of herself and others similarly situated. Plaintiff’s counsel had indicated an intent to file a motion for class certification, which was set to be filed by April 16, 2015. Plaintiff’s complaint included alleged violations of the California Labor Code stemming from the Company’s alleged timekeeping practices, as well as other similar and related claims brought under California law. In the complaint, Plaintiff sought damages and related remedies under California law, as well as various penalty payments under the California Labor Code, on behalf of herself and others similarly situated. On April 7, 2015, solely to resolve the dispute, minimize disruption to the Company due to ongoing litigation, and other similar and related factors (but unrelated to the alleged merits of Plaintiff’s claims), the Company reached an agreement in principle to settle this matter on a class wide basis for a total amount of $3.2 million, plus applicable payroll taxes. The specific terms of the agreement are subject to confirmation in a Joint Stipulation of Settlement, which is further subject to Court approval, following notice and an opportunity to be heard by all interested parties. | |
Other Litigation | |
The Company is also subject to various other claims and lawsuits arising in the ordinary course of business. In the opinion of management, the ultimate resolution of these matters is not expected to have a materially adverse effect on its financial position, results of operations, or cash flows; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation |
All significant intercompany activity has been eliminated in the preparation of the condensed consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Some information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles, or GAAP, have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations, and cash flows of the Company. | |
The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries: International Medication Systems, Limited, or IMS; Amphastar Laboratories, Inc.; Armstrong Pharmaceuticals, Inc., or Armstrong; Amphastar Nanjing Pharmaceuticals Co., Ltd., or ANP; and Amphastar France Pharmaceuticals, S.A.S., or AFP. | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The principal accounting estimates include: determination of allowances for doubtful accounts and discounts, liabilities for product returns and chargebacks, reserves for excess or unsellable inventory, impairment of long-lived and intangible assets and goodwill, self-insured claims, workers’ compensation liabilities, litigation reserves, stock price volatilities for share-based compensation expense, fair market values of the Company’s common stock, valuation allowances for deferred tax assets, and liabilities for uncertain income tax positions. | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency |
The functional currency of the Company and its domestic and Chinese subsidiaries is the U.S. dollar, or USD. The Company’s Chinese subsidiary, ANP, maintains its books of record in Chinese Yuan. These books are remeasured into the functional currency of USD using the current or historical exchange rates. The resulting currency remeasurement adjustments and other transactional foreign exchange gains and losses are reflected in the Company’s statement of operations. The Company’s French subsidiary, AFP, maintains its books of record in Euros, which is the local currency in France and has been determined to be its functional currency. These books are translated to USD at the average exchange rates during the period. Assets and liabilities are translated at the rate of exchange prevailing on the balance sheet date. Equity is translated at the prevailing rate of exchange at the date of the equity transactions. Translation adjustments are reflected in stockholders’ equity and are included as a component of other comprehensive loss. Additionally, the Company does not undertake hedging transactions to cover its foreign currency exposure. | |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Loss |
For the Company’s acquired subsidiary in France, the Euro, which is the local currency, has been determined to be the functional currency. The results of the Company’s French subsidiary’s operations are translated to U.S. dollars at the average exchange rates during the period. | |
For the three months ended March 31, 2015, the Company includes its foreign currency translation adjustment as well as the change to its actuarial valuation on the Company’s defined benefit pension plan (see Note 15) as part of its comprehensive loss. For the three months ended March 31, 2014, net loss equaled total comprehensive loss. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments |
The carrying amounts of cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, and short-term borrowings approximate fair value due to the short maturity of these items. A majority of the Company’s long-term obligations consist of variable rate debt and their carrying value approximates fair value. Their carrying value approximates fair value as the stated borrowing rates are comparable to rates currently offered to the Company for instruments with similar maturities. However, the Company has one fixed-rate, long-term mortgage for which the carrying value differs from the fair value and is not remeasured on a recurring basis (see Note 12). | |
Income Tax, Policy [Policy Text Block] | Deferred Income Taxes |
The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statements and the tax basis of assets and liabilities using enacted tax rates. A valuation allowance is recorded when it is more likely than not that the deferred tax assets will not be realized. The Company has adopted the with-and-without methodology for determining when excess tax benefits from the exercise of share-based awards are realized. Under the with-and-without methodology, current year operating loss deductions and prior-year operating loss carryforwards are deemed to be utilized prior to the utilization of current-year excess tax benefits from share-based awards. | |
Business Combinations Policy [Policy Text Block] | Business Combinations |
Business combinations are accounted for in accordance with Accounting Standards Codification, or ASC 805, Business Combinations, using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. Fair value determinations are based on discounted cash flow analyses or other valuation techniques. In determining the fair value of the assets acquired and liabilities assumed in a material acquisition, the Company may utilize appraisals from third party valuation firms to determine fair values of some or all of the assets acquired and liabilities assumed, or may complete some or all of the valuations internally. In either case, the Company takes full responsibility for the determination of the fair value of the assets acquired and liabilities assumed. The value of goodwill reflects the excess of the fair value of the consideration conveyed to the seller over the fair value of the net assets received. | |
Acquisition-related costs are costs the Company incurs to effect a business combination. The Company accounts for acquisition-related costs as expenses in the periods in which the costs are incurred. | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements |
In April 2014, the FASB issued an accounting standards update that raised the threshold for disposals to qualify as discontinued operations and allows companies to have significant continuing involvement with and continuing cash flows from or to the discontinued operation. It also requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. This guidance is effective for fiscal years beginning after December 15, 2014, which is the Company's fiscal year 2015, with early adoption permitted. The adoption of the guidance did not have a material impact on the Company's consolidated financial statements. | |
In May 2014, the FASB issued an accounting standards update that creates a single source of revenue guidance for companies in all industries. The new standard provides guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers, unless the contracts are within the scope of other accounting standards. It also provides a model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets. This guidance must be adopted using either a full retrospective approach for all periods presented or a modified retrospective approach and will be effective for fiscal years beginning after December 15, 2016, which will be the Company's fiscal year 2017. The Company has not yet evaluated the potential impact of adopting the guidance on the Company's consolidated financial statements. | |
In June 2014, the FASB issued an accounting standards update that requires a performance target that affects vesting of a share-based payment award and that could be achieved after the requisite service period to be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized over the required service period, if it is probable that the performance target will be achieved. This guidance will be effective for fiscal years beginning after December 15, 2015, which will be the Company's fiscal year 2016, with early adoption permitted. The Company does not expect the adoption of the guidance will have a material impact on the Company's consolidated financial statements. | |
In August 2014, the FASB issued an accounting standards update that will require management to evaluate if there is substantial doubt about the Company’s ability to continue as a going concern and, if so, to disclose this in both interim and annual reporting periods. This guidance will become effective for the Company’s annual filing for the period ending December 31, 2016 and interim periods thereafter, and allows for early adoption. The Company does not expect the adoption of the guidance will have a material impact on the Company’s consolidated financial statements. |
Note_3_Business_Acquisition_Ta
Note 3 - Business Acquisition (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Euros | U.S. | |||||||
Dollars | |||||||||
(in thousands) | |||||||||
At Closing, April 2014 | € | 13,252 | $ | 18,352 | |||||
Dec-14 | 4,899 | 5,989 | |||||||
Dec-15 | 3,186 | 3,457 | |||||||
Dec-16 | 3,186 | 3,457 | |||||||
Dec-17 | 500 | 543 | |||||||
€ | 25,023 | $ | 31,798 | ||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Fair Value | ||||||||
Euros | U.S. | ||||||||
Dollars | |||||||||
(in thousands) | |||||||||
Inventory | € | 15,565 | $ | 21,554 | |||||
Real property | 4,800 | 6,647 | |||||||
Machinery & equipment | 6,800 | 9,417 | |||||||
Intangibles | 80 | 111 | |||||||
Goodwill | 3,155 | 4,369 | |||||||
Total assets acquired | € | 30,400 | $ | 42,098 | |||||
Accrued liabilities | € | 2,425 | $ | 3,358 | |||||
Deferred tax liabilities | 3,155 | 4,369 | |||||||
Total liabilities assumed | 5,580 | 7,727 | |||||||
Total fair value of consideration transferred | € | 24,820 | $ | 34,371 | |||||
Business Acquisition, Pro Forma Information [Table Text Block] | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands, | |||||||||
except per share data) | |||||||||
Net revenues | $ | 56,886 | $ | 45,888 | |||||
Net loss | (665 | ) | (2,606 | ) | |||||
Diluted net loss per share | $ | (0.01 | ) | $ | (0.07 | ) |
Note_4_Revenue_Recognition_Tab
Note 4 - Revenue Recognition (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Revenue Recognition Disclosure [Abstract] | |||||||||
Schedule of Chargeback Liability [Table Text Block] | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 11,872 | $ | 18,104 | |||||
Provision related to sales made in the current period | 42,372 | 41,642 | |||||||
Credits issued to third parties | (42,909 | ) | (47,427 | ) | |||||
Ending balance | $ | 11,335 | $ | 12,319 | |||||
Schedule of Product Returns Liability [Table Text Block] | Three Months Ended | ||||||||
31-Mar | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 2,408 | $ | 4,592 | |||||
Provision for product returns | 803 | 140 | |||||||
Credits issued to third parties | (630 | ) | (313 | ) | |||||
Ending balance | $ | 2,581 | $ | 4,419 |
Note_5_Loss_Per_Share_Tables
Note 5 - Loss Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands, except per share data) | |||||||||
Basic and dilutive numerator: | |||||||||
Net loss | $ | (665 | ) | $ | (1,619 | ) | |||
Denominator: | |||||||||
Common shares outstanding | 44,601 | 38,766 | |||||||
Contingently issuable shares - vested DSUs | — | 3 | |||||||
Weighted-average common shares outstanding—basic | 44,601 | 38,769 | |||||||
Net effect of dilutive securities: | |||||||||
Stock options | — | — | |||||||
Contingently issuable shares – nonvested DSUs | — | — | |||||||
Weighted-average common shares outstanding—diluted | 44,601 | 38,769 | |||||||
Net loss per common share—basic | $ | (0.01 | ) | $ | (0.04 | ) | |||
Net loss per common share—diluted | $ | (0.01 | ) | $ | (0.04 | ) |
Note_6_Segment_Reporting_Table
Note 6 - Segment Reporting (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended | ||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net revenues: | |||||||||||||||||
Finished pharmaceutical products | $ | 50,872 | $ | 45,870 | |||||||||||||
API | 6,014 | — | |||||||||||||||
Total net revenues | 56,886 | 45,870 | |||||||||||||||
Gross Profit: | |||||||||||||||||
Finished pharmaceutical products | 12,853 | 12,508 | |||||||||||||||
API | 427 | — | |||||||||||||||
Total gross profit | 13,280 | 12,508 | |||||||||||||||
Operating expenses | 20,541 | 14,477 | |||||||||||||||
Loss from operations | (7,261 | ) | (1,969 | ) | |||||||||||||
Non-operating income (expenses) | 1,064 | (502 | ) | ||||||||||||||
Loss before income taxes | $ | (6,197 | ) | $ | (2,471 | ) | |||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Net Revenue | Long-Lived Assets | |||||||||||||||
Three Months Ended | March 31, | December 31, | |||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
U.S. | $ | 52,960 | $ | 45,870 | $ | 101,229 | $ | 102,313 | |||||||||
China | — | — | 24,797 | 22,170 | |||||||||||||
France | 3,926 | — | 12,250 | 13,806 | |||||||||||||
Total | $ | 56,886 | $ | 45,870 | $ | 138,276 | $ | 138,289 |
Note_7_Customer_and_Supplier_C1
Note 7 - Customer and Supplier Concentration (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | % of Total Accounts | % of Net | |||||||||||||||
Receivable | Revenue | ||||||||||||||||
March 31, | December 31, | Three Months Ended | |||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Actavis, Inc. | 16 | % | 18 | % | 23 | % | 30 | % | |||||||||
AmerisourceBergen | 17 | % | 5 | % | 16 | % | 15 | % | |||||||||
Cardinal Health | 19 | % | 15 | % | 18 | % | 15 | % | |||||||||
MannKind Corporation | — | 21 | % | 10 | % | — | |||||||||||
McKesson | 20 | % | 13 | % | 19 | % | 28 | % |
Note_8_Fair_Value_Measurements1
Note 8 - Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant | |||||||||||||
(Level 1) | (Level 2) | Unobservable Inputs | |||||||||||||||
(Level 3) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market accounts | $ | 43,085 | $ | 43,085 | $ | — | $ | — | |||||||||
Restricted short-term investments: | |||||||||||||||||
Certificates of deposit | 1,495 | 1,495 | — | — | |||||||||||||
Fair value measurement as of March 31, 2015 | $ | 44,580 | $ | 44,580 | $ | — | $ | — | |||||||||
Cash equivalents: | |||||||||||||||||
Money market accounts | $ | 42,994 | $ | 42,994 | $ | — | $ | — | |||||||||
Restricted short-term investments: | |||||||||||||||||
Certificates of deposit | 1,495 | 1,495 | — | — | |||||||||||||
Fair value measurement as of December 31, 2014 | $ | 44,489 | $ | 44,489 | $ | — | $ | — |
Note_9_Goodwill_and_Intangible1
Note 9 - Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | Weighted-Average Life (Years) | Original Cost | Accumulated Amortization | Net Book Value | |||||||||||
(in thousands) | |||||||||||||||
Definite-lived intangible assets | |||||||||||||||
Product rights | 12 | $ | 27,134 | $ | 21,338 | $ | 5,796 | ||||||||
Patents | 10 | 293 | 85 | 208 | |||||||||||
Trademarks | 11 | 19 | 14 | 5 | |||||||||||
Land-use rights | 39 | 2,540 | 239 | 2,301 | |||||||||||
Other intangible assets | 1 | 592 | 509 | 83 | |||||||||||
Subtotal | 12 | 30,578 | 22,185 | 8,393 | |||||||||||
Indefinite-lived intangible assets | |||||||||||||||
Trademark | * | 29,225 | — | 29,225 | |||||||||||
Goodwill | |||||||||||||||
Finished pharmaceutical products | * | 280 | — | 280 | |||||||||||
API | * | 3,428 | — | 3,428 | |||||||||||
Subtotal | * | 32,933 | — | 32,933 | |||||||||||
As of March 31, 2015 | * | $ | 63,511 | $ | 22,185 | $ | 41,326 | ||||||||
Weighted-Average Life (Years) | Original Cost | Accumulated Amortization | Net Book Value | ||||||||||||
(in thousands) | |||||||||||||||
Definite-lived intangible assets | |||||||||||||||
Product rights | 12 | $ | 27,134 | $ | 20,896 | $ | 6,238 | ||||||||
Patents | 10 | 293 | 78 | 215 | |||||||||||
Trademarks | 11 | 19 | 15 | 4 | |||||||||||
Land-use rights | 39 | 2,540 | 221 | 2,319 | |||||||||||
Other intangible assets | 1 | 602 | 505 | 97 | |||||||||||
Subtotal | 12 | 30,588 | 21,715 | 8,873 | |||||||||||
Indefinite-lived intangible assets | |||||||||||||||
Trademark | * | 29,225 | — | 29,225 | |||||||||||
Goodwill | |||||||||||||||
Finished pharmaceutical products | * | 280 | — | 280 | |||||||||||
API | * | 4,187 | — | 4,187 | |||||||||||
Subtotal | * | 33,692 | — | 33,692 | |||||||||||
As of December 31, 2014 | * | $ | 64,280 | $ | 21,715 | $ | 42,565 | ||||||||
Schedule of Goodwill [Table Text Block] | March 31, | 31-Dec-14 | |||||||||||||
2015 | |||||||||||||||
(in thousands) | |||||||||||||||
Beginning balance | $ | 4,467 | $ | 280 | |||||||||||
Goodwill related to acquisition of business | — | 4,369 | |||||||||||||
Currency translation and other adjustments | (759 | ) | (182 | ) | |||||||||||
Ending balance | $ | 3,708 | $ | 4,467 |
Note_10_Inventories_Tables
Note 10 - Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory, Current [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Raw materials and supplies | $ | 45,590 | $ | 41,996 | |||||
Work in process | 19,534 | 16,221 | |||||||
Finished goods | 20,643 | 24,755 | |||||||
Total inventory | 85,767 | 82,972 | |||||||
Less reserve for excess and obsolete inventories | (880 | ) | (640 | ) | |||||
Total inventory, net | $ | 84,887 | $ | 82,332 |
Note_11_Property_Plant_and_Equ1
Note 11 - Property, Plant, and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Building | $ | 67,354 | $ | 67,760 | |||||
Leasehold improvements | 24,106 | 23,960 | |||||||
Land | 6,890 | 7,020 | |||||||
Machinery and equipment | 104,250 | 104,819 | |||||||
Furniture, fixtures, and automobiles | 12,360 | 12,213 | |||||||
Construction in progress | 28,516 | 25,068 | |||||||
Total property, plant, and equipment | 243,476 | 240,840 | |||||||
Less accumulated depreciation and amortization | (105,200 | ) | (102,551 | ) | |||||
Total property, plant, and equipment, net | $ | 138,276 | $ | 138,289 |
Note_12_Debt_Tables
Note 12 - Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Debt [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Loans with East West Bank | |||||||||
Mortgage payable due January 2016 | $ | 3,847 | $ | 3,887 | |||||
Mortgage payable due September 2016 | 2,269 | 2,289 | |||||||
Line of credit facility due March 2016 | — | — | |||||||
Equipment loan due April 2017 | 2,621 | 2,923 | |||||||
Equipment loan due January 2019 | 5,903 | — | |||||||
Loans with Cathay Bank | |||||||||
Mortgage payable due April 2021 | 4,526 | 4,549 | |||||||
Revolving line of credit due May 2016 | — | — | |||||||
Acquisition loan due April 2019 | 20,410 | 20,870 | |||||||
Loans with Seine-Normandie Water Agency | |||||||||
French government loan 1 due March 2018 | 45 | — | |||||||
French government loan 2 due June 2020 | 153 | — | |||||||
French government loan 3 due July 2021 | 380 | — | |||||||
Payment obligation to Merck | 7,307 | 8,160 | |||||||
Equipment under Capital Leases | 956 | 1,022 | |||||||
Total debt and capital leases | 48,417 | 43,700 | |||||||
Less current portion of long-term debt and capital leases | 12,531 | 7,594 | |||||||
Long-term debt and capital leases, net of current portion | $ | 35,886 | $ | 36,106 |
Note_13_Income_Taxes_Tables
Note 13 - Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Loss before taxes | $ | (6,197 | ) | $ | (2,471 | ) | |||
Income tax benefit | (5,532 | ) | (852 | ) | |||||
Net loss | $ | (665 | ) | $ | (1,619 | ) | |||
Income tax benefit as a percentage of income before income taxes | (89.3 | )% | (34.5 | )% |
Note_14_Stockholders_Equity_Ta
Note 14 - Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Schedule of Stockholders Equity [Table Text Block] | Three Months Ended | ||||||||||||||||
March 31, | |||||||||||||||||
2015 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Stockholders’ equity as of December 31, 2014 | $ | 281,860 | |||||||||||||||
Net loss | (665 | ) | |||||||||||||||
Accumulated other comprehensive loss | (2,993 | ) | |||||||||||||||
Repurchase of common stock | (572 | ) | |||||||||||||||
Exercise of stock options | 910 | ||||||||||||||||
Nonemployee share-based compensation expense | 6 | ||||||||||||||||
Employee share-based compensation expense | 2,224 | ||||||||||||||||
Treasury stock | (1,489 | ) | |||||||||||||||
Stockholders’ equity as of March 31, 2015 | $ | 279,281 | |||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended | ||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Average volatility | 27.5 | % | 27.8 | % | |||||||||||||
Risk-free interest rate | 1.3 | % | 1.3 | % | |||||||||||||
Weighted-average expected life in years | 4.7 | 4.3 | |||||||||||||||
Dividend yield rate | 0 | % | 0 | % | |||||||||||||
Schedule of Stock Options Roll Forward [Table Text Block] | Options | Weighted- | Weighted- | Aggregate | |||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value(1) | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term (Years) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding as of December 31, 2014 | 11,371,891 | $ | 15.12 | ||||||||||||||
Options granted | 1,914,679 | 15.81 | |||||||||||||||
Options exercised | (74,817 | ) | 12.55 | ||||||||||||||
Options cancelled | (4,020 | ) | 14.21 | ||||||||||||||
Options expired | (27,305 | ) | 28.28 | ||||||||||||||
Outstanding as of March 31, 2015 | 13,180,428 | $ | 15.21 | 4.78 | $ | 21,639 | |||||||||||
Exercisable as of March 31, 2015 | 6,594,669 | $ | 16.81 | 3.42 | $ | 10,654 | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Three Months Ended | ||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Weighted-average grant date fair value | $ | 3.53 | $ | 3.2 | |||||||||||||
Intrinsic value of options exercised | 189 | — | |||||||||||||||
Cash received | 910 | — | |||||||||||||||
Total fair value of the options vested during the year | 1,423 | 526 | |||||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | Options | Weighted-Average | |||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Nonvested as of December 31, 2014 | 5,090,591 | $ | 3.34 | ||||||||||||||
Options granted | 1,914,679 | 3.53 | |||||||||||||||
Options vested | (415,491 | ) | 3.43 | ||||||||||||||
Options forfeited | (4,020 | ) | 5.2 | ||||||||||||||
Nonvested as of March 31, 2015 | 6,585,759 | 3.39 | |||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | Total DSUs Issued | Total Fair Market | |||||||||||||||
Value of DSUs Issued | |||||||||||||||||
as Compensation(1) | |||||||||||||||||
(in thousands) | |||||||||||||||||
DSUs outstanding at December 31, 2014 | 503,010 | ||||||||||||||||
DSUs granted | 452,420 | $ | 6,764 | ||||||||||||||
DSUs forfeited | (2,256 | ) | |||||||||||||||
Common stock delivered | (58,803 | ) | |||||||||||||||
DSUs surrendered for taxes | (37,052 | ) | |||||||||||||||
DSUs outstanding at March 31, 2015 | 857,319 | ||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Cost of revenues | $ | 488 | $ | 293 | |||||||||||||
Operating expenses: | |||||||||||||||||
Selling, distribution and marketing | 40 | 21 | |||||||||||||||
General and administrative | 1,490 | 1,176 | |||||||||||||||
Research and development | 212 | 126 | |||||||||||||||
Total share-based compensation | $ | 2,230 | $ | 1,616 |
Note_3_Business_Acquisition_De
Note 3 - Business Acquisition (Details) | 0 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 01, 2014 | Apr. 22, 2014 | Jun. 01, 2014 | Apr. 22, 2014 | Mar. 31, 2015 | Apr. 22, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Mar. 31, 2015 |
Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | ||
Secured Term Loan With Cathay Bank [Member] | Secured Term Loan With Cathay Bank [Member] | Secured Term Loan With Cathay Bank [Member] | Secured Term Loan With Cathay Bank [Member] | Secured Term Loan With Cathay Bank [Member] | USD ($) | EUR (€) | |||
Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | |||||
Minimum [Member] | USD ($) | ||||||||
Note 3 - Business Acquisition (Details) [Line Items] | |||||||||
Business Combination, Consideration Transferred | $34.40 | € 24.80 | |||||||
Debt Instrument, Face Amount | 21.9 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | |||||||
Debt Instrument, Term | 120 months | 120 months | |||||||
Debt Instrument, Maturity Date | 22-Apr-19 | ||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $12 | ||||||||
Debt Instrument Loan Collateral Percentage | 65.00% |
Note_3_Business_Acquisition_De1
Note 3 - Business Acquisition (Details) - Acquisition of Merck Sharpe & Dohme’s Payment Terms (Merck Sharpe & Dohme's API [Member]) | 0 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 |
Payment at Closing, April 2014 [Member] | Payment at Closing, April 2014 [Member] | Payment Due in December 2014 [Member] | Payment Due in December 2014 [Member] | Payment Due in December 2015 [Member] | Payment Due in December 2015 [Member] | Payment Due in December 2016 [Member] | Payment Due in December 2016 [Member] | Payment Due in December 2017 [Member] | Payment Due in December 2017 [Member] | USD ($) | EUR (€) | |
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | |||
Business Acquisition [Line Items] | ||||||||||||
Payment to Acquire Business, Gross | $18,352 | € 13,252 | $5,989 | € 4,899 | $3,457 | € 3,186 | $3,457 | € 3,186 | $543 | € 500 | $31,798 | € 25,023 |
Note_3_Business_Acquisition_De2
Note 3 - Business Acquisition (Details) - Acquired Assets and Liabilities Assumed | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2014 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | USD ($) | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] |
USD ($) | EUR (€) | ||||
Note 3 - Business Acquisition (Details) - Acquired Assets and Liabilities Assumed [Line Items] | |||||
Inventory | $21,554 | € 15,565 | |||
Real property | 6,647 | 4,800 | |||
Machinery & equipment | 9,417 | 6,800 | |||
Intangibles | 111 | 80 | |||
Goodwill | 3,708 | 4,467 | 280 | 4,369 | 3,155 |
Total assets acquired | 42,098 | 30,400 | |||
Accrued liabilities | 3,358 | 2,425 | |||
Deferred tax liabilities | 4,369 | 3,155 | |||
Total liabilities assumed | 7,727 | 5,580 | |||
Total fair value of consideration transferred | $34,371 | € 24,820 |
Note_3_Business_Acquisition_De3
Note 3 - Business Acquisition (Details) - Acquisition Pro Forma Information (Merck Sharpe & Dohme's API [Member], USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Merck Sharpe & Dohme's API [Member] | ||
Note 3 - Business Acquisition (Details) - Acquisition Pro Forma Information [Line Items] | ||
Net revenues | $56,886 | $45,888 |
Net loss | ($665) | ($2,606) |
Diluted net loss per share (in Dollars per share) | ($0.01) | ($0.07) |
Note_4_Revenue_Recognition_Det
Note 4 - Revenue Recognition (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue Recognition Disclosure [Abstract] | ||
Product Return Rate, Percentage | 1.10% | 1.30% |
Note_4_Revenue_Recognition_Det1
Note 4 - Revenue Recognition (Details) - Analysis of the Chargeback Liability (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Analysis of the Chargeback Liability [Abstract] | ||
Beginning balance | $11,872 | $18,104 |
Ending balance | 11,335 | 12,319 |
Provision related to sales made in the current period | 42,372 | 41,642 |
Credits issued to third parties | ($42,909) | ($47,427) |
Note_4_Revenue_Recognition_Det2
Note 4 - Revenue Recognition (Details) - Analysis of the Product Return Liability (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Analysis of the Product Return Liability [Abstract] | ||
Beginning balance | $2,408 | $4,592 |
Ending balance | 2,581 | 4,419 |
Provision for product returns | 803 | 140 |
Credits issued to third parties | ($630) | ($313) |
Note_5_Loss_Per_Share_Details
Note 5 - Loss Per Share (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Equity Option [Member] | ||
Note 5 - Loss Per Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13,180,428 | 11,745,577 |
Deferred Stock Units (DSUs) [Member] | ||
Note 5 - Loss Per Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 857,319 | 403,591 |
Common Shares Expected to be Issued under ESPP [Member] | ||
Note 5 - Loss Per Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 165,167 |
Note_5_Loss_Per_Share_Details_
Note 5 - Loss Per Share (Details) - Calculation of Basic and Diluted Net Income (Loss) Per Common Share (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Basic and dilutive numerator: | ||
Net loss (in Dollars) | ($665) | ($1,619) |
Denominator: | ||
Common shares outstanding | 44,601 | 38,766 |
Contingently issuable shares - vested DSUs | 3 | |
Weighted-average common shares outstanding—basic | 44,601 | 38,769 |
Weighted-average common shares outstanding—diluted | 44,601 | 38,769 |
Net loss per common share—basic (in Dollars per share) | ($0.01) | ($0.04) |
Net loss per common share—diluted (in Dollars per share) | ($0.01) | ($0.04) |
Note_6_Segment_Reporting_Detai
Note 6 - Segment Reporting (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note_6_Segment_Reporting_Detai1
Note 6 - Segment Reporting (Details) - Financial Information by Reporting Segment (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Net Revenue | $56,886 | $45,870 |
Gross Profit: | ||
Gross Profit | 13,280 | 12,508 |
Operating expenses | 20,541 | 14,477 |
Loss from operations | -7,261 | -1,969 |
Non-operating income (expenses) | 1,064 | -502 |
Loss before income taxes | -6,197 | -2,471 |
Finished Pharmaceutical Products Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenue | 50,872 | 45,870 |
Gross Profit: | ||
Gross Profit | 12,853 | 12,508 |
Active Pharmaceutical Ingredient Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenue | 6,014 | |
Gross Profit: | ||
Gross Profit | $427 |
Note_6_Segment_Reporting_Detai2
Note 6 - Segment Reporting (Details) - Net Revenues and Carrying Values of Long-Lived Assets of Enterprises by Geographic Regions (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Revenue | $56,886 | $45,870 | |
Long-Lived Assets | 138,276 | 138,289 | |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Revenue | 52,960 | 45,870 | |
Long-Lived Assets | 101,229 | 102,313 | |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 24,797 | 22,170 | |
FRANCE | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Revenue | 3,926 | ||
Long-Lived Assets | $12,250 | $13,806 |
Note_7_Customer_and_Supplier_C2
Note 7 - Customer and Supplier Concentration (Details) - Accounts Receivable and Net Revenues Information for the Company’s Major Customers (Customer Concentration Risk [Member]) | 3 Months Ended | 12 Months Ended | 3 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
Actavis, Inc. [Member] | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer | 16.00% | 18.00% | |
Actavis, Inc. [Member] | Sales Revenue, Net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer | 23.00% | 30.00% | |
AmerisourceBergen [Member] | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer | 17.00% | 5.00% | |
AmerisourceBergen [Member] | Sales Revenue, Net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer | 16.00% | 15.00% | |
Cardinal Health [Member] | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer | 19.00% | 15.00% | |
Cardinal Health [Member] | Sales Revenue, Net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer | 18.00% | 15.00% | |
MannKind Corporation [Member] | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer | 21.00% | ||
MannKind Corporation [Member] | Sales Revenue, Net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer | 10.00% | ||
McKesson [Member] | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer | 20.00% | 13.00% | |
McKesson [Member] | Sales Revenue, Net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Customer | 19.00% | 28.00% |
Note_8_Fair_Value_Measurements2
Note 8 - Fair Value Measurements (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | ||
Liabilities, Fair Value Adjustment | $0 | $0 |
Assets, Fair Value Adjustment | $0 | $0 |
Note_8_Fair_Value_Measurements3
Note 8 - Fair Value Measurements (Details) - Fair Values of the Company’s Financial Assets and Liabilities Measured on a Recurring Basis (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Cash equivalents: | ||
Money market accounts | $43,085 | $42,994 |
Restricted short-term investments: | ||
Certificates of deposit | 1,495 | 1,495 |
Fair value measurement as of | 44,580 | 44,489 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents: | ||
Money market accounts | 43,085 | 42,994 |
Restricted short-term investments: | ||
Certificates of deposit | 1,495 | 1,495 |
Fair value measurement as of | $44,580 | $44,489 |
Note_9_Goodwill_and_Intangible2
Note 9 - Goodwill and Intangible Assets (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Indefinite-Lived Trademarks | $29.20 |
Note_9_Goodwill_and_Intangible3
Note 9 - Goodwill and Intangible Assets (Details) - Weighted-Average Life, Original Cost, Accumulated Amortization, and Net Book Value by Major Intangible Asset Classification (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Definite-lived intangible assets | |||||
Definite-lived intangible assets, Weighted-Average Life (Years) | 12 years | 12 years | |||
Definite-lived intangible assets, Original Cost | $30,578 | $30,588 | |||
Definite-lived intangible assets, Accumulated Amortization | 22,185 | 21,715 | |||
Definite-lived intangible assets, Net Book Value | 8,393 | 8,873 | |||
Goodwill | |||||
Indefinite-lived intangible assets, Subtotal, Original Cost | 3,708 | 4,467 | 280 | ||
Indefinite-lived intangible assets, Subtotal, Net Book Value | 3,708 | 4,467 | 280 | ||
Indefinite-lived intangible assets, Subtotal, Weighted-Average Life (Years) | [1] | [1] | |||
Indefinite-lived intangible assets, Subtotal, Original Cost | 32,933 | 33,692 | |||
Balance, Weighted-Average Life (Years) | [1] | [1] | |||
Balance, Original Cost | 63,511 | 64,280 | |||
Balance, Accumulated Amortization | 22,185 | 21,715 | |||
Balance, Net Book Value | 41,326 | 42,565 | |||
Indefinite-lived intangible assets, Subtotal, Net Book Value | 32,933 | 33,692 | |||
Balance, Weighted-Average Life (Years) | [1] | [1] | |||
Balance, Original Cost | 63,511 | 64,280 | |||
Balance, Accumulated Amortization | 22,185 | 21,715 | |||
Balance, Net Book Value | 41,326 | 42,565 | |||
Trademarks [Member] | |||||
Indefinite-lived intangible assets | |||||
Indefinite-lived intangible assets, Weighted-Average Life (Years) | [1] | [1] | |||
Indefinite-lived intangible assets, Original Cost | 29,225 | 29,225 | |||
Indefinite-lived intangible assets, Net Book Value | 29,225 | 29,225 | |||
Finished Pharmaceutical Products Segment [Member] | |||||
Goodwill | |||||
Indefinite-lived intangible assets, Subtotal, Original Cost | 280 | 280 | |||
Indefinite-lived intangible assets, Subtotal, Net Book Value | 280 | 280 | |||
Active Pharmaceutical Ingredient Segment [Member] | |||||
Goodwill | |||||
Indefinite-lived intangible assets, Subtotal, Original Cost | 3,428 | 4,187 | |||
Indefinite-lived intangible assets, Subtotal, Net Book Value | 3,428 | 4,187 | |||
Product Rights [Member] | |||||
Definite-lived intangible assets | |||||
Definite-lived intangible assets, Weighted-Average Life (Years) | 12 years | 12 years | |||
Definite-lived intangible assets, Original Cost | 27,134 | 27,134 | |||
Definite-lived intangible assets, Accumulated Amortization | 21,338 | 20,896 | |||
Definite-lived intangible assets, Net Book Value | 5,796 | 6,238 | |||
Goodwill | |||||
Balance, Accumulated Amortization | 21,338 | 20,896 | |||
Balance, Accumulated Amortization | 21,338 | 20,896 | |||
Patents [Member] | |||||
Definite-lived intangible assets | |||||
Definite-lived intangible assets, Weighted-Average Life (Years) | 10 years | 10 years | |||
Definite-lived intangible assets, Original Cost | 293 | 293 | |||
Definite-lived intangible assets, Accumulated Amortization | 85 | 78 | |||
Definite-lived intangible assets, Net Book Value | 208 | 215 | |||
Goodwill | |||||
Balance, Accumulated Amortization | 85 | 78 | |||
Balance, Accumulated Amortization | 85 | 78 | |||
Trademarks [Member] | |||||
Definite-lived intangible assets | |||||
Definite-lived intangible assets, Weighted-Average Life (Years) | 11 years | 11 years | |||
Definite-lived intangible assets, Original Cost | 19 | 19 | |||
Definite-lived intangible assets, Accumulated Amortization | 14 | 15 | |||
Definite-lived intangible assets, Net Book Value | 5 | 4 | |||
Goodwill | |||||
Balance, Accumulated Amortization | 14 | 15 | |||
Balance, Accumulated Amortization | 14 | 15 | |||
Land-Use Rights [Member] | |||||
Definite-lived intangible assets | |||||
Definite-lived intangible assets, Weighted-Average Life (Years) | 39 years | 39 years | |||
Definite-lived intangible assets, Original Cost | 2,540 | 2,540 | |||
Definite-lived intangible assets, Accumulated Amortization | 239 | 221 | |||
Definite-lived intangible assets, Net Book Value | 2,301 | 2,319 | |||
Goodwill | |||||
Balance, Accumulated Amortization | 239 | 221 | |||
Balance, Accumulated Amortization | 239 | 221 | |||
Other Intangible Assets [Member] | |||||
Definite-lived intangible assets | |||||
Definite-lived intangible assets, Weighted-Average Life (Years) | 1 year | 1 year | |||
Definite-lived intangible assets, Original Cost | 592 | 602 | |||
Definite-lived intangible assets, Accumulated Amortization | 509 | 505 | |||
Definite-lived intangible assets, Net Book Value | 83 | 97 | |||
Goodwill | |||||
Balance, Accumulated Amortization | 509 | 505 | |||
Balance, Accumulated Amortization | $509 | $505 | |||
[1] | Intangible assets with indefinite lives have an undeterminable average life. |
Note_9_Goodwill_and_Intangible4
Note 9 - Goodwill and Intangible Assets (Details) - Goodwill (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill [Abstract] | ||
Beginning balance | $4,467 | $280 |
Goodwill related to acquisition of business | 4,369 | |
Currency translation and other adjustments | -759 | -182 |
Ending balance | $3,708 | $4,467 |
Note_10_Inventories_Details_An
Note 10 - Inventories (Details) - Analysis of Inventories (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Analysis of Inventories [Abstract] | ||
Raw materials and supplies | $45,590 | $41,996 |
Work in process | 19,534 | 16,221 |
Finished goods | 20,643 | 24,755 |
Total inventory | 85,767 | 82,972 |
Less reserve for excess and obsolete inventories | -880 | -640 |
Total inventory, net | $84,887 | $82,332 |
Note_11_Property_Plant_and_Equ2
Note 11 - Property, Plant, and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Note 11 - Property, Plant, and Equipment (Details) [Line Items] | ||
Property, Plant and Equipment, Gross | $243,476 | $240,840 |
Primatene Mist HFA Manufacturing Equipment [Member] | ||
Note 11 - Property, Plant, and Equipment (Details) [Line Items] | ||
Property, Plant and Equipment, Gross | $3,600 |
Note_11_Property_Plant_and_Equ3
Note 11 - Property, Plant, and Equipment (Details) - Property, Plant, and Equipment (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Building | $67,354 | $67,760 |
Leasehold improvements | 24,106 | 23,960 |
Land | 6,890 | 7,020 |
Machinery and equipment | 104,250 | 104,819 |
Furniture, fixtures, and automobiles | 12,360 | 12,213 |
Construction in progress | 28,516 | 25,068 |
Total property, plant, and equipment | 243,476 | 240,840 |
Less accumulated depreciation and amortization | -105,200 | -102,551 |
Total property, plant, and equipment, net | $138,276 | $138,289 |
Note_12_Debt_Details
Note 12 - Debt (Details) | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||
Jun. 01, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Apr. 22, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2010 | Mar. 31, 2015 | Mar. 31, 2015 | Sep. 15, 2006 | Mar. 31, 2015 | Mar. 15, 2013 | Mar. 31, 2015 | Jan. 05, 2015 | Mar. 31, 2015 | Apr. 22, 2014 | Mar. 05, 2007 | Apr. 22, 2014 | Apr. 22, 2014 | Mar. 31, 2015 | Apr. 22, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Jan. 08, 2015 | Jan. 08, 2015 | Mar. 05, 2012 | Jul. 31, 2013 | Jan. 05, 2015 | Jul. 05, 2013 | Apr. 10, 2012 | Mar. 31, 2015 | Apr. 10, 2012 | Mar. 05, 2012 | Apr. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Apr. 30, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | Building at Rancho Cucamonga, California [Member] | Building at Rancho Cucamonga, California [Member] | Building at Chino California Member | Scenario, Refinanced [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Unsecured Debt [Member] | Unsecured Debt [Member] | Unsecured Debt [Member] | Unsecured Debt [Member] | Unsecured Debt [Member] | Unsecured Debt [Member] | Line of Credit Facility - Due March 2016 [Member] | Line of Credit Facility - Due January 2019 [Member] | Line of Credit Facility - Due January 2019 [Member] | Line of Credit Facility - Due January 2019 [Member] | Revolving Line of Credit - Due May 2016 [Member] | Revolving Line of Credit - Due May 2016 [Member] | Revolving Line of Credit - Due May 2016 [Member] | Revolving Credit Facility [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Cathay Bank [Member] | ||
Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Mortgage Payable - Due January 2016 [Member] | Mortgage Payable - Due January 2016 [Member] | Mortgage Payable - Due January 2016 [Member] | Mortgage Payable - Due September 2016 [Member] | Mortgage Payable - Due September 2016 [Member] | Mortgage Payable - Due September 2016 [Member] | Equipment Loan - Due April 2017 [Member] | Equipment Loan - Due April 2017 [Member] | Equipment Loan Due January 2019 [Member] | Equipment Loan Due January 2019 [Member] | Mortgage Payable - Due April 2021 [Member] | Mortgage Payable - Due April 2021 [Member] | Mortgage Payable - Due April 2021 [Member] | Acquisition Loan - Due April 2019 [Member] | Acquisition Loan - Due April 2019 [Member] | Acquisition Loan - Due April 2019 [Member] | Acquisition Loan - Due April 2019 [Member] | French Government Loans [Member] | French Government Loans [Member] | French Government Loans [Member] | French Government Loans [Member] | French Government Loans [Member] | French Government Loans [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | East West Bank [Member] | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | ||||||
Mortgage Payable - Due January 2016 [Member] | Mortgage Payable - Due September 2016 [Member] | Mortgage Payable - Due January 2016 [Member] | Mortgage Payable - Due April 2021 [Member] | Minimum [Member] | East West Bank [Member] | East West Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | East West Bank [Member] | East West Bank [Member] | Minimum [Member] | East West Bank [Member] | East West Bank [Member] | East West Bank [Member] | Cathay Bank [Member] | Cathay Bank [Member] | Cathay Bank [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Merck Sharpe & Dohme's API [Member] | Minimum [Member] | Maximum [Member] | Seine-Normandie Water Agency [Member] | Seine-Normandie Water Agency [Member] | Seine-Normandie Water Agency [Member] | Seine-Normandie Water Agency [Member] | East West Bank [Member] | Prime Rate [Member] | East West Bank [Member] | East West Bank [Member] | Minimum [Member] | Cathay Bank [Member] | Cathay Bank [Member] | USD ($) | |||||||||||
East West Bank [Member] | East West Bank [Member] | East West Bank [Member] | Cathay Bank [Member] | East West Bank [Member] | USD ($) | USD ($) | East West Bank [Member] | USD ($) | USD ($) | East West Bank [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | Cathay Bank [Member] | Cathay Bank [Member] | Cathay Bank [Member] | Seine-Normandie Water Agency [Member] | Seine-Normandie Water Agency [Member] | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | East West Bank [Member] | USD ($) | USD ($) | Cathay Bank [Member] | USD ($) | USD ($) | ||||||||||||
USD ($) | Cathay Bank [Member] | USD ($) | |||||||||||||||||||||||||||||||||||||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | $4,600,000 | $4,500,000 | $2,800,000 | $4,900,000 | $6,200,000 | $5,300,000 | $700,000 | € 600,000 | |||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 3,800,000 | 2,200,000 | 3,900,000 | 12,000,000 | |||||||||||||||||||||||||||||||||||||||||
Number of Buildings Securing Loan | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 3.50% | 4.48% | 5.42% | 4.00% | 4.00% | 4.00% | 4.00% | |||||||||||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | 0.25% | |||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 10,000,000 | 8,000,000 | 20,000,000 | 8,000,000 | |||||||||||||||||||||||||||||||||||||||||
Long-term Line of Credit | 6,200,000 | ||||||||||||||||||||||||||||||||||||||||||||
Secured Debt | 5,900,000 | ||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | 28,100 | ||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Fair Value Disclosure | 4,800,000 | ||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 4,500,000 | 21,900,000 | |||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date | 22-Apr-19 | ||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 120 months | 3 years | 6 years | ||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Loan Collateral Percentage | 65.00% | ||||||||||||||||||||||||||||||||||||||||||||
Number of Loans with Government Agency | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||
Notes Payable | 600,000 | 500,000 | |||||||||||||||||||||||||||||||||||||||||||
Business Combination, Consideration Transferred, Liabilities Incurred | 16,000,000 | 11,600,000 | |||||||||||||||||||||||||||||||||||||||||||
Business Acquisition Purchase Price Obligation Term | 4 years | 4 years | |||||||||||||||||||||||||||||||||||||||||||
Business Acquisition Interest On Purchase Price Obligation State Percentage | 3.00% | ||||||||||||||||||||||||||||||||||||||||||||
Payment of Commitment Obligation Related to Business Acquisition | 6,000,000 | 4,900,000 | |||||||||||||||||||||||||||||||||||||||||||
Long-term Debt and Capital Lease Obligations | 35,886,000 | 36,106,000 | 7,300,000 | ||||||||||||||||||||||||||||||||||||||||||
undefined | 1.2 | ||||||||||||||||||||||||||||||||||||||||||||
undefined | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||
Capital Leased Assets, Gross | 1,500,000 | 1,500,000 | |||||||||||||||||||||||||||||||||||||||||||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $500,000 | $400,000 |
Note_12_Debt_Details_Debt_Cons
Note 12 - Debt (Details) - Debt Consists of the Following (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Note 12 - Debt (Details) - Debt Consists of the Following [Line Items] | ||
Payment obligation to Merck | $7,307 | $8,160 |
Equipment under Capital Leases | 956 | 1,022 |
Total debt and capital leases | 48,417 | 43,700 |
Less current portion of long-term debt and capital leases | 12,531 | 7,594 |
Long-term debt and capital leases, net of current portion | 35,886 | 36,106 |
Mortgage Payable - Due January 2016 [Member] | Secured Debt [Member] | East West Bank [Member] | ||
Note 12 - Debt (Details) - Debt Consists of the Following [Line Items] | ||
Long Term Debt | 3,847 | 3,887 |
Mortgage Payable - Due September 2016 [Member] | Secured Debt [Member] | East West Bank [Member] | ||
Note 12 - Debt (Details) - Debt Consists of the Following [Line Items] | ||
Long Term Debt | 2,269 | 2,289 |
Equipment Loan - Due April 2017 [Member] | Secured Debt [Member] | East West Bank [Member] | ||
Note 12 - Debt (Details) - Debt Consists of the Following [Line Items] | ||
Long Term Debt | 2,621 | 2,923 |
Equipment Loan Due January 2019 [Member] | Secured Debt [Member] | East West Bank [Member] | ||
Note 12 - Debt (Details) - Debt Consists of the Following [Line Items] | ||
Long Term Debt | 5,903 | |
Mortgage Payable - Due April 2021 [Member] | Secured Debt [Member] | Cathay Bank [Member] | ||
Note 12 - Debt (Details) - Debt Consists of the Following [Line Items] | ||
Long Term Debt | 4,526 | 4,549 |
Acquisition Loan - Due April 2019 [Member] | Cathay Bank [Member] | ||
Note 12 - Debt (Details) - Debt Consists of the Following [Line Items] | ||
Long Term Debt | 20,410 | 20,870 |
French Government Loan - Due March 2018 [Member] | Unsecured Debt [Member] | Seine-Normandie Water Agency [Member] | ||
Note 12 - Debt (Details) - Debt Consists of the Following [Line Items] | ||
Long Term Debt | 45 | |
French Government Loan - Due June 2020 [Member] | Unsecured Debt [Member] | Seine-Normandie Water Agency [Member] | ||
Note 12 - Debt (Details) - Debt Consists of the Following [Line Items] | ||
Long Term Debt | 153 | |
French Government Loan - Due July 2021 [Member] | Unsecured Debt [Member] | Seine-Normandie Water Agency [Member] | ||
Note 12 - Debt (Details) - Debt Consists of the Following [Line Items] | ||
Long Term Debt | $380 |
Note_13_Income_Taxes_Details
Note 13 - Income Taxes (Details) | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Apr. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2015 |
Intangible Deferred Tax Asset [Member] | Intangible Deferred Tax Asset [Member] | Intangible Deferred Tax Asset [Member] | Intangible Deferred Tax Asset [Member] | Scenario, Forecast [Member] | |||
USD ($) | EUR (€) | USD ($) | EUR (€) | ||||
Note 13 - Income Taxes (Details) [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, Percent | -89.30% | -34.50% | -50.40% | ||||
Deferred Tax Assets, Valuation Allowance | $4.40 | € 3.20 | |||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | ($3.30) | -€ 3.20 |
Note_13_Income_Taxes_Details_I
Note 13 - Income Taxes (Details) - Income Tax Provision (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Provision [Abstract] | ||
Loss before taxes | ($6,197) | ($2,471) |
Income tax benefit | -5,532 | -852 |
Net loss | ($665) | ($1,619) |
Income tax benefit as a percentage of income before income taxes | -89.30% | -34.50% |
Note_14_Stockholders_Equity_De
Note 14 - Stockholders' Equity (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Nov. 06, 2014 | |
Note 14 - Stockholders' Equity (Details) [Line Items] | |||
Allocated Share-based Compensation Expense | $2,230,000 | $1,616,000 | |
Stock Repurchase Program, Authorized Amount | 10,000,000 | ||
Treasury Stock, Shares, Acquired (in Shares) | 116,300 | ||
Treasury Stock, Value, Acquired, Cost Method | 1,489,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Deferred Stock Units, Number of Shares of Common Stock Per Award (in Shares) | 1 | ||
Employee Stock Option [Member] | The 2005 Plan [Member] | |||
Note 14 - Stockholders' Equity (Details) [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 16,400,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 219 days | ||
Employee Stock Option [Member] | |||
Note 14 - Stockholders' Equity (Details) [Line Items] | |||
Allocated Share-based Compensation Expense | 1,600,000 | 1,300,000 | |
Deferred Stock Units (DSUs) [Member] | |||
Note 14 - Stockholders' Equity (Details) [Line Items] | |||
Allocated Share-based Compensation Expense | 500,000 | 200,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 328 days | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 11,100,000 | ||
2014 Employee Stock Purchase Plan [Member] | |||
Note 14 - Stockholders' Equity (Details) [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 2,000,000 | ||
Employe Stock Purchase Plan ESPP, Offering Duration, Maximum | 27 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 85.00% | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in Shares) | 0 | ||
Allocated Share-based Compensation Expense | $100,000 |
Note_14_Stockholders_Equity_De1
Note 14 - Stockholders' Equity (Details) - Summary of Stockholders' Equity (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Note 14 - Stockholders' Equity (Details) - Summary of Stockholders' Equity [Line Items] | ||
Stockholders’ equity as of | $281,860 | |
Repurchase of common stock | -572 | |
Exercise of stock options | 910 | |
Treasury stock | -1,489 | |
Net loss | -665 | -1,619 |
Accumulated other comprehensive loss | -2,993 | |
Stockholders’ equity as of | 279,281 | |
Nonemployee [Member] | ||
Note 14 - Stockholders' Equity (Details) - Summary of Stockholders' Equity [Line Items] | ||
Share-based compensation expense | 6 | |
Employee [Member] | ||
Note 14 - Stockholders' Equity (Details) - Summary of Stockholders' Equity [Line Items] | ||
Share-based compensation expense | $2,224 |
Note_14_Stockholders_Equity_De2
Note 14 - Stockholders' Equity (Details) - Weighted-Averages for Key Assumptions Used in Determining the Fair Value of Options Granted | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Weighted-Averages for Key Assumptions Used in Determining the Fair Value of Options Granted [Abstract] | ||
Average volatility | 27.50% | 27.80% |
Risk-free interest rate | 1.30% | 1.30% |
Weighted-average expected life in years | 4 years 255 days | 4 years 109 days |
Dividend yield rate | 0.00% | 0.00% |
Note_14_Stockholders_Equity_De3
Note 14 - Stockholders' Equity (Details) - Summary of Option Activity (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Summary of Option Activity [Abstract] | |||
Outstanding Options | 13,180,428 | 11,371,891 | |
Outstanding Exercise Price | $15.21 | $15.12 | |
Outstanding Contractual Term (Years) | 4 years 284 days | ||
Outstanding Intrinsic Value | $21,639 | [1] | |
Options granted | 1,914,679 | ||
Options granted | $15.81 | ||
Options exercised | -74,817 | ||
Options exercised | $12.55 | ||
Options cancelled | -4,020 | ||
Options cancelled | $14.21 | ||
Options expired | -27,305 | ||
Options expired | $28.28 | ||
Exercisable as of March 31, 2015 | 6,594,669 | ||
Exercisable as of March 31, 2015 | $16.81 | ||
Exercisable as of March 31, 2015 | 3 years 153 days | ||
Exercisable as of March 31, 2015 | $10,654 | [1] | |
[1] | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the Company's common stock for those awards that have an exercise price below the estimated fair value at March 31, 2015. |
Note_14_Stockholders_Equity_De4
Note 14 - Stockholders' Equity (Details) - Option Grants and Exercises (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Option Grants and Exercises [Abstract] | ||
Weighted-average grant date fair value (in Dollars per share) | $3.53 | $3.20 |
Intrinsic value of options exercised | $189 | |
Cash received | 910 | |
Total fair value of the options vested during the year | $1,423 | $526 |
Note_14_Stockholders_Equity_De5
Note 14 - Stockholders' Equity (Details) - Summary of Nonvested Options (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Summary of Nonvested Options [Abstract] | ||
Nonvested as of December 31, 2014 | 5,090,591 | |
Nonvested as of December 31, 2014 | $3.34 | |
Nonvested as of March 31, 2015 | 6,585,759 | |
Nonvested as of March 31, 2015 | $3.39 | |
Options granted | 1,914,679 | |
Options granted | $3.53 | $3.20 |
Options vested | -415,491 | |
Options vested | $3.43 | |
Options forfeited | -4,020 | |
Options forfeited | $5.20 |
Note_14_Stockholders_Equity_De6
Note 14 - Stockholders' Equity (Details) - Information Relating to DSU Grants and Deliveries (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | |
Deferred Stock Units (DSUs) [Member] | ||
Note 14 - Stockholders' Equity (Details) - Information Relating to DSU Grants and Deliveries [Line Items] | ||
Total DSUs outstanding | 503,010 | |
DSUs granted | 452,420 | |
DSUs forfeited | -2,256 | |
Common stock delivered | -58,803 | |
DSUs surrendered for taxes | -37,052 | |
Total DSUs outstanding | 857,319 | |
Deferred Stock Units Issued as Compensation [Member] | ||
Note 14 - Stockholders' Equity (Details) - Information Relating to DSU Grants and Deliveries [Line Items] | ||
DSUs granted (in Dollars) | 6,764 | [1] |
[1] | The total fair market value is derived from the number of DSUs granted times the current stock price on the date of grant. |
Note_14_Stockholders_Equity_De7
Note 14 - Stockholders' Equity (Details) - Share-based Compensation Expense Under all Plans (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Note 14 - Stockholders' Equity (Details) - Share-based Compensation Expense Under all Plans [Line Items] | ||
Allocated share base compensation | $2,230 | $1,616 |
Cost Of Revenues [Member] | ||
Note 14 - Stockholders' Equity (Details) - Share-based Compensation Expense Under all Plans [Line Items] | ||
Allocated share base compensation | 488 | 293 |
Selling, Distribution And Marketing [Member] | ||
Note 14 - Stockholders' Equity (Details) - Share-based Compensation Expense Under all Plans [Line Items] | ||
Allocated share base compensation | 40 | 21 |
General and Administrative Expense [Member] | ||
Note 14 - Stockholders' Equity (Details) - Share-based Compensation Expense Under all Plans [Line Items] | ||
Allocated share base compensation | 1,490 | 1,176 |
Research and Development Expense [Member] | ||
Note 14 - Stockholders' Equity (Details) - Share-based Compensation Expense Under all Plans [Line Items] | ||
Allocated share base compensation | $212 | $126 |
Note_15_Employee_Benefits_Deta
Note 15 - Employee Benefits (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% | ||
Defined Contribution Plan, Maximum Employer Matching Per Employee, Percent | 2.00% | ||
Defined Contribution Plan, Employer Contribution Vesting Period | 4 years | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount (in Dollars) | $0.20 | $0.20 | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 1.75% | 1.75% | |
Defined Benefit Plan, Benefit Obligation (in Dollars) | $1 | $1.10 |
Note_16_Commitments_and_Contin1
Note 16 - Commitments and Contingencies (Details) | 3 Months Ended | 1 Months Ended | 80 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Nov. 30, 2012 | Jan. 31, 2010 | Nov. 30, 2012 | 31-May-05 | Dec. 31, 2011 | Mar. 31, 2015 | Jan. 31, 2012 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Jul. 31, 2014 | |
USD ($) | USD ($) | USD ($) | ANP [Member] | Agreements With a Chinese Governmental Entity [Member] | Agreements With a Chinese Governmental Entity [Member] | Agreements With a Chinese Governmental Entity [Member] | Exclusive Marketing Rights for Enoxaparin [Member] | Exclusive Marketing Rights for Enoxaparin [Member] | Exclusive Marketing Rights for Enoxaparin [Member] | Exclusive Marketing Rights for Enoxaparin [Member] | Exclusive Marketing Rights for Enoxaparin [Member] | Land-Use Rights [Member] | Land-Use Rights [Member] | Insuling Supply Agreement With MannKind [Member] | Insuling Supply Agreement With MannKind [Member] | Insuling Supply Agreement With MannKind [Member] | Insuling Supply Agreement With MannKind [Member] | Minimum [Member] | Maximum [Member] | Commitments to Purchase Equipment and Raw Materials [Member] | MannKind Corporation [Member] | |
Agreements With a Chinese Governmental Entity [Member] | Land-Use Rights [Member] | Land-Use Rights [Member] | USD ($) | Andrx Pharmaceuticals, Inc. [Member] | Andrx Pharmaceuticals, Inc. [Member] | Watson Pharmaceuticals, Inc. [Member] | Watson Pharmaceuticals, Inc. [Member] | Watson Pharmaceuticals, Inc. [Member] | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | |||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||
Note 16 - Commitments and Contingencies (Details) [Line Items] | ||||||||||||||||||||||
Proceeds from Customers | $4,500,000 | |||||||||||||||||||||
Deferred Revenue, Period for Recognition | 7 years | |||||||||||||||||||||
Recognition of Deferred Revenue | 4,500,000 | |||||||||||||||||||||
Distribution Agreement With Corporate Partner, Renewal Option Period | 3 years | |||||||||||||||||||||
Deferred Revenue | 2,500,000 | 2,600,000 | 6,200,000 | 5,800,000 | 14,000,000 | 11,000,000 | ||||||||||||||||
Supply Commitment, Remaining Minimum Amount Committed | 146,000,000 | 120,100,000 | ||||||||||||||||||||
Long-term Supply Commitment, Optional Renewal Period | 2 years | |||||||||||||||||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 1 year | 6 years | ||||||||||||||||||||
Operating Leases, Rent Expense | 800,000 | 700,000 | ||||||||||||||||||||
Long-term Purchase Commitment, Amount | 6,700,000 | |||||||||||||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 45,000,000 | |||||||||||||||||||||
Registered Capital Commitment to Subsidiary | 61,000,000 | |||||||||||||||||||||
Contractual Obligation | 7,307,000 | 8,160,000 | 16,000,000 | 15,000,000 | ||||||||||||||||||
Finite-Lived Intangible Assets, Gross | $30,578,000 | $30,588,000 | $1,300,000 | $1,200,000 | $2,540,000 | $2,540,000 |
Note_17_Litigation_Details
Note 17 - Litigation (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||
Apr. 07, 2015 | Oct. 31, 2011 | Mar. 31, 2015 | Jan. 24, 2014 | Sep. 21, 2011 | |
Subsequent Event [Member] | Eva Hernandez vs International Medication Systems Limited [Member] | |||||
Note 17 - Litigation (Details) [Line Items] | |||||
Litigation Settlement, Amount | ($3,200,000) | ||||
Enoxaparin Patent Litigation [Member] | Pending Litigation [Member] | Momenta and Sandoz [Member] | |||||
Note 17 - Litigation (Details) [Line Items] | |||||
Number of Alleged Patent Infringements | 2 | ||||
Litigation, Plaintiff Preliminary Injunction Bond, Amount | 100,100,000 | ||||
Loss Contingency, Damages Sought, Value | 100,100,000 | ||||
Enoxaparin Patent Litigation [Member] | Judicial Ruling [Member] | Momenta and Sandoz [Member] | |||||
Note 17 - Litigation (Details) [Line Items] | |||||
Litigation Settlement, Expense | $40,000 |