Amphastar Pharmaceuticals (AMPH) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 02, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Amphastar Pharmaceuticals, Inc.
Trading Symbol	amph
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	1,297,184
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Common Stock, Shares Outstanding		46,195,942

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 82,544	$ 72,354
Short-term investments	727	527
Restricted short-term investments	4,155	1,390
Accounts receivable, net	24,123	26,777
Inventories	74,457	79,754
Income tax refund and deposits	386	22
Prepaid expenses and other assets	7,187	3,272
Total current assets	193,579	184,096
Property, plant, and equipment, net	161,720	152,944
Goodwill and intangible assets, net	45,869	50,307
Other assets	10,955	9,390
Deferred tax assets	31,874	31,001
Total assets	443,997	427,738
Current Liabilities:
Accounts payable	14,910	16,196
Accrued liabilities	17,633	15,703
Income taxes payable	6,222	7,705
Accrued payroll and related benefits	15,776	13,847
Current portion of product return accrual	2,955	1,800
Current portion of long-term debt and capital leases	6,205	5,366
Total current liabilities	63,701	60,617
Long-term product return accrual	2,201	1,343
Long-term reserve for income tax liabilities	845	845
Long-term deferred revenue	423	97
Long-term debt and capital leases, net of current portion	40,107	32,356
Deferred Tax Liabilities, Net, Noncurrent	1,538	1,455
Other long-term liabilities	1,868	1,770
Total liabilities	110,683	98,483
Stockholders’ equity:
Preferred stock: par value $0.0001; 20,000,000 shares authorized; no shares issued and outstanding
Common stock: par value $0.0001; 300,000,000 shares authorized; 48,873,866 and 46,248,945 shares issued and outstanding as of June 30, 2017 and 47,765,149 and 46,248,622 shares issued and outstanding as of December 31, 2016, respectively	5	5
Additional paid-in capital	299,105	283,123
Retained earnings	74,592	70,855
Accumulated other comprehensive loss	(3,220)	(4,696)
Treasury stock	(37,168)	(20,032)
Total stockholders’ equity	333,314	329,255
Total liabilities and stockholders’ equity	$ 443,997	$ 427,738

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock; shares authorized	300,000,000	300,000,000
Common stock; shares issued	48,873,866	47,765,149
Common stock; shares outstanding	46,248,945	46,248,622

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 65,187	$ 68,033	$ 121,857	$ 127,399
Cost of revenues	38,440	36,319	72,282	70,783
Gross profit	26,747	31,714	49,575	56,616
Operating (income) expenses:
Selling, distribution, and marketing	1,596	1,332	3,075	2,684
General and administrative	12,234	9,458	23,572	20,328
Research and development	10,732	10,594	21,982	19,199
Gain on sale of intangible assets			(2,643)
Total operating expenses	24,562	21,384	45,986	42,211
Income from operations	2,185	10,330	3,589	14,405
Non-operating income (expense):
Interest income	87	50	178	124
Interest expense	(237)	(305)	(428)	(689)
Other income (expense), net	1,138	(323)	1,338	(272)
Total non-operating income (expense), net	988	(578)	1,088	(837)
Income before income taxes	3,173	9,752	4,677	13,568
Income tax expense (benefit)	1,201	2,857	1,812	4,184
Net income (loss)	$ 1,972	$ 6,895	$ 2,865	$ 9,384
Net income (loss) per share:
Basic (in Dollars per share)	$ 0.04	$ 0.15	$ 0.06	$ 0.21
Diluted (in Dollars per share)	$ 0.04	$ 0.15	$ 0.06	$ 0.21
Weighted-average shares used to compute net income (loss) per share:
Basic (in Shares)	46,025	44,957	46,047	44,999
Diluted (in Shares)	47,866	45,968	47,962	45,712

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 1,972	$ 6,895	$ 2,865	$ 9,384
Other comprehensive income (loss), net of income taxes
Foreign currency translation adjustment	1,010	(651)	1,476	(215)
Total other comprehensive income (loss)	1,010	(651)	1,476	(215)
Total comprehensive income	$ 2,982	$ 6,244	$ 4,341	$ 9,169

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows From Operating Activities:
Net income (loss)	$ 2,865	$ 9,384
Reconciliation to net cash provided by operating activities:
Loss (gain) on disposal and impairment of long-lived assets	(2,561)	929
Depreciation of property, plant, and equipment	6,235	5,995
Amortization of product rights, trademarks, and patents	1,426	1,050
Imputed interest accretion	16	36
Share-based compensation	8,749	8,049
Changes in operating assets and liabilities:
Accounts receivable, net	2,820	10,164
Inventories	6,965	(17,352)
Prepaid expenses and other assets	(1,106)	3,175
Income tax refund, deposits, and payable	(2,758)	3,759
Accounts payable and accrued liabilities	4,321	(1,933)
Net cash provided by operating activities	26,972	23,256
Cash Flows From Investing Activities:
Business Acquisitions		(4,761)
Purchases and construction of property, plant, and equipment	(13,568)	(9,344)
Sale of intangible assets	2,000
Purchase of short-term investments	(1,261)
Maturity of short-term investments	1,061
Changes in restricted short-term investments	(2,765)	(105)
Payment of deposits and other assets	(1,123)	(3,216)
Net cash used in investing activities	(15,656)	(17,426)
Cash Flows From Financing Activities:
Proceeds from equity plans, net of withholding tax payments	7,278	2,926
Purchase of treasury stock	(17,181)	(8,190)
Proceeds from issuance of long-term debt	11,118	6,607
Principal payments on long-term debt	(2,618)	(6,414)
Net cash provided by financing activities	(1,403)	(5,071)
Effect of exchange rate changes on cash	277	(173)
Net increase (decrease) in cash and cash equivalents	10,190	586
Cash and cash equivalents at beginning of period	72,354	66,074
Cash and cash equivalents at end of period	82,544	66,660
Noncash Investing and Financing Activities:
Equipment acquired under capital leases		1,237
Supplemental Disclosures of Cash Flow Information:
Interest paid, net of capitalized interest	792	947
Income taxes paid	$ 4,569	$ 553

General

General	6 Months Ended
	Jun. 30, 2017
General
General	Note 1. Genera 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 (together with its subsidiaries, hereinafter referred to as “the Company”). The Company is a specialty pharmaceutical company that primarily develops, manufactures, markets, and sells generic and proprietary injectable, inhalation, and intranasal products, including products with high technical barriers to market entry. Additionally, the Company sells 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 sold to other pharmaceutical companies for use in their own products and are being used by the Company in the development of injectable finished pharmaceutical 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, 2016, and the notes thereto as filed with the Securities and Exchange Commission, or SEC, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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 income (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 income (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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, and are prepared in accordance with the requirements of the SEC for interim reporting. Certain amounts in the prior quarter’s condensed consolidated statements of operations have been reclassified to conform to the current quarter presentation. All significant intercompany activity has been eliminated in the preparation of the condensed consolidated financial statements. Effective January 1, 2017, the Company prospectively adopted certain requirements of Auditing Standards Update, or ASU, No. 2016-09 to classify cash flows related to excess tax benefits in operating activities without adjusting prior periods. 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 Company’s subsidiaries include: (1) International Medication Systems, Limited, or IMS, (2) Armstrong Pharmaceuticals, Inc., or Armstrong, (3) Amphastar Nanjing Pharmaceuticals Inc., or ANP, (4) Nanjing Letop Fine Chemistry Co., Ltd., or Letop, (5) Amphastar France Pharmaceuticals, S.A.S., or AFP, (6) Amphastar UK Ltd., or AUK, and (7) International Medication Systems (UK) Limited, or IMS UK. Use of Estimates The preparation of consolidated financial statements in accordance with 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, provision for chargebacks, liabilities for product returns, adjustment to cost 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, valuation allowances for deferred tax assets, and liabilities for uncertain income tax positions. Foreign Currency The functional currency of the Company, its domestic subsidiaries, its Chinese subsidiary, ANP, and its U.K. subsidiary, AUK, is the U.S. dollar, or USD. 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 currency exchange gains and losses are reflected in the Company’s statements of operations. The Company’s French subsidiary, AFP, Chinese subsidiary, Letop, and U.K. subsidiary, IMS UK maintain their books of record in Euros, Chinese Yuan, and Great Britain Pounds, respectively, which are the local currencies and have been determined to be their respective functional currencies. These books are translated into USD using 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 accumulated comprehensive income (loss). The unrealized gains or losses of intercompany foreign currency transactions that are of a long-term investment nature are reported in other accumulated comprehensive income (loss). The unrealized gains and losses of intercompany foreign currency transactions that are of a long-term investment nature for the three and six months ended June 30, 2017 were a $2.2 million gain and a $2.7 million gain, respectively, and for the three and six months ended June 30, 2016 were a $0.6 million loss and a $0.3 million gain, respectively. Additionally, the Company does not undertake hedging transactions to cover its foreign currency exposure. Comprehensive Income (loss) For the three and six months ended June 30, 2017 and 2016, the Company included its foreign currency translation as part of its comprehensive income (loss). Financial Instruments The carrying amounts of cash and cash equivalents, short-term investments, restricted 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 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). The Company at times enters into fixed interest rate swap contracts to exchange the variable interest rates for fixed interest rates without the exchange of the underlying notional debt amounts. Such interest rate swap contracts are recorded at their fair values. Deferred Income Taxes The Company utilizes the liability method of accounting for income taxes, under which 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. Business Combinations If an acquired set of activities and assets is capable of being operated as a business consisting of inputs and processes from the viewpoint of a market participant, the asset acquired and liabilities assumed are a business. Business combinations are accounted for using the acquisition method of accounting, which 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 that the Company incurs to effect a business combination are expensed in the periods in which the costs are incurred. When the operations of the acquired businesses were not material to the Company’s condensed consolidated financial statements, no pro forma presentation is disclosed. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU, No. 2019-09 Revenue from Contracts with Customers , which creates a single source of revenue guidance for companies in all industries. Subsequently, the FASB issued multiple updates. 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. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required regarding customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). Based on ASU No. 2015-14 Deferral of the Effective Date , issued in August 2015, this guidance will be effective for the Company beginning in the first quarter of 2018, including interim periods within the year. The Company is in the process of evaluating the effect of the adoption on its condensed consolidated financial statements and is currently assessing its contracts with customers and sale of nonfinancial assets. The Company anticipates it will expand its consolidated financial statement disclosures in order to comply with the new guidance. The Company expects to select the modified retrospective transition method upon adoption. In February 2016, the FASB issued ASU No. 2016-02 Leases , that is aimed at making leasing activities more transparent and comparable, and which requires substantially all leases be recognized by lessees on their balance sheets as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. This guidance will become effective for the Company’s interim and annual reporting periods during the year ending December 31, 2019, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company is required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements for the reporting periods in which the guidance is adopted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09 Improvements to Employee Share-Based Payment Accounting , that is aimed at improving the employee share-based payment accounting. The standard update simplifies the accounting for employee share-based payments and involves several aspects of the accounting for share-based transactions, including the potential timing of expenses, the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The Company adopted this guidance effective January 1, 2017. In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses , that is aimed at providing financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit. The standard update changes the impairment model for financial assets measured at amortized cost, requiring presentation at the net amount expected to be collected. The measurement of expected credit losses requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Available-for-sale debt securities with unrealized losses will be recorded through an allowance for credit losses. The guidance is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2020. Early adoption is permitted for annual periods after 2019. The Company will be required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15 Classification of Certain Cash Receipts and Cash Payments , that is aimed at addressing certain issues regarding classifications of certain cash receipts and cash payments on the statement of cash flows where diversity in practice was identified. The guidance is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2018. Early adoption is permitted. The Company will be required to apply the guidance retrospectively in the first interim and each annual period in which the guidance is adopted. The Company does not believe that the adoption of this accounting guidance will have a material impact on the Company’s consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16 Intra-Entity Transfers of Assets Other Than Inventory , that requires an entity to recognize the income tax consequences of intra-entity transfer of an asset other than inventory when the transfer occurs. The guidance is effective for the Company's interim and annual reporting periods during the year ending December 31, 2018. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements, interim or annual, have not been issued. The amendments will be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows: Restricted Cash , which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The guidance is effective for the Company's interim and annual reporting periods during the year ending December 31, 2018. Early adoption is permitted, including adoption in an interim period. The amendments will be applied using a retrospective transition method to each period presented. The Company will be required to apply the guidance retrospectively when adopted. The Company does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-01 Clarifying the Definition of a Business , which provides guidance to assist entities with evaluating when a set of transferred assets and activities is a business. Under the updated guidance, a set is not a business if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar assets. If the threshold is not met, the update requires that, to be a business, the set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. The definition of outputs was also aligned with Accounting Standard Codification, or ASC, 606 by focusing on revenue-generating activities. The guidance is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2018, and prospectively applicable to any transactions occurring within the period of adoption. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04 Simplifying the Test for Goodwill Impairment , which eliminates the requirement to calculate the implied fair value of goodwill. An entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The FASB also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. The guidance is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2020, and applied on a prospective basis. Early adoption is permitted for interim and annual goodwill impairment testing dates after January 1, 2017. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. In May 2017, the FASB issued ASU No. 2017-09 Scope of Modification Accounting , that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The new guidance is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2018, and applied prospectively to awards modified on or after the adoption date. Early adoption is permitted. The Company does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures.

Business Acquisitions

Business Acquisitions	6 Months Ended
	Jun. 30, 2017
Business Acquisitions
Business Acquisition	Note 3. Business Acquisitions Acquisition of International Medication Systems (UK) Limited from UCB PHARMA GmbH In August 2016, the Company’s UK subsidiary, AUK, acquired IMS UK, a UK-based subsidiary of UCB PHARMA GmbH, including its trademarks, assets related to the products, as well as marketing authorizations for 33 products in the UK, Ireland, Australia, and New Zealand, representing 11 different injectable chemical entities. The Company paid $7.7 million in cash as consideration for the transaction. The Company plans to transfer the manufacturing of the purchased products to its facilities in California. The transfer will require approval of the UK Medicines and Healthcare products Regulatory Agency and other related regulatory agencies before the products can be sold by the Company. The transaction is accounted for as a business combination in accordance with ASC 805. The fair values of the assets acquired and liabilities assumed include marketing authorizations of $9.2 million, manufacturing equipment of $0.1 million, and deferred tax liability of $1.6 million. The acquired marketing authorizations intangible assets are subject to a straight-line amortization over a useful life of approximately 10 years. Acquisition of fourteen injectable products from Hikma Pharmaceuticals PLC In March 2016, the Company acquired 14 abbreviated new drug application, or ANDAs, representing 11 different injectable chemical entities from Hikma Pharmaceuticals PLC, or Hikma, for $4.0 million. This transaction was accounted for as a business combination in accordance with ASC 805. The ANDAs had an estimated fair value of $4.0 million, and were subject to a straight-line amortization over a useful life of approximately 15 years. In February 2017, the Company sold these products to an unrelated party (see Note 9). Acquisition of Nanjing Letop Medical Technology Co. Ltd. In January 2016, the Company’s Chinese subsidiary, ANP, acquired Nanjing Letop Medical Technology Co. Ltd. for $1.7 million consisting of $0.8 million in cash and a deposit of $0.9 million that ANP had previously paid to Letop and which was effectively eliminated upon the consummation of the transaction. The Company accounted for this transaction as a business combination in accordance with ASC 805. The Company recognized $1.4 million of acquired assets, $0.1 million of assumed liabilities, and $0.4 million of goodwill. Letop had previously supplied ANP with intermediates used in making various active pharmaceutical ingredients. In March 2016, the acquired subsidiary was renamed Nanjing Letop Fine Chemistry Co., Ltd. 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, or RHI 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 rate fluctuations. The terms of the purchase include multiple payments over four years as follows (see Note 12): U.S. Euros Dollars (in thousands) At Closing, April 2014 € 13,252 $ 18,352 December 2014 4,899 5,989 December 2015 3,186 3,483 December 2016 3,186 3,427 December 2017 500 571 € 25,023 $ 31,822 In order to facilitate the acquisition, the Company established AFP in France. The Company is continuing the current site manufacturing activities, which consist of the manufacturing of porcine insulin API and 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. Currently, the Company is in the process of transferring the manufacturing of starting material for RHI API from Merck to AFP. This process will require capital expenditures at AFP and is expected to take two years to complete.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2017
Revenue Recognition
Revenue Recognition	Note 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. 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. On June 30, 2016, the Company and Actavis, Inc., or Actavis, amended the distribution agreement, which terminated the agreement in December 2016. Profit-sharing revenue under this agreement was recognized at the time Actavis sold the products to its customers. 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, or list prices, 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 settlement of chargebacks generally occurs within 30 days after the sale to wholesalers. The provision for chargebacks is reflected in net revenues. Accounts receivable and/or accrued liabilities are also reduced and/or increased by the chargebacks amount depending on whether the Company has the right of offset with the customer. The following table is an analysis of the chargeback provision: Six Months Ended June 30, 2017 2016 (in thousands) Beginning balance $ 37,820 $ 15,217 Provision related to sales made in the current period 84,085 69,549 Credits issued to third parties (114,124) (72,965) Ending balance $ 7,781 $ 11,801 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 chargeback provision has decreased in the six months ended June 30, 2017, primarily due to a decrease in the list price of enoxaparin in the first quarter of 2017. The Company continually monitors the provision for chargebacks and makes adjustments when it believes that the actual chargebacks may differ from the estimates. Chargeback provisions as of June 30, 2017 and 2016 are included in account receivables. 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 and API product sales 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. If the available information is not sufficient to estimate a reasonable product return accrual, revenues from the sales of the new product would not be recognized until the product is consumed by the end customer or rights of return granted under the return policy have expired. As of June 30, 2017 and December 31, 2016, cumulative sales of approximately $0.9 million and $0.5 million, respectively, for one of the Company’s products were not recognized in revenues, due to insufficient information available to estimate a reasonable product return accrual. The provision for product returns is reflected in net revenues. The following table is an analysis of product return liability: Six Months Ended June 30, 2017 2016 (in thousands) Beginning balance $ 3,143 $ 2,621 Provision for product returns 2,979 637 Credits issued to third parties (966) (715) Ending balance $ 5,156 $ 2,543 For the six months ended June 30, 2017 and 2016 , the Company’s aggregate product return rate was 1.2% and 1.1% of qualified sales, respectively.

Income per Share

Income per Share	6 Months Ended
	Jun. 30, 2017
Income per Share
Income per Share	Note 5. Income per Share Basic income per share is calculated based upon the weighted-average number of shares outstanding during the period. Diluted income per share gives effect to all potential dilutive shares outstanding during the period, such as stock options, nonvested deferred stock units and restricted stock units (collectively referred to herein as “RSUs”), and shares issuable under the Company’s Employee Stock Purchase Plan, or the ESPP. For the three and six months ended June 30, 2017, options to purchase 3,170,200 shares of stock with a weighted-average exercise price of $20.52 per share, were excluded in the computation of diluted net income per share because the effect from the assumed exercise of these options would be anti-dilutive. For the three and six months ended June 30, 2016, options to purchase 6,827,011 shares of stock with a weighted-average exercise price of $18.16 per share, were excluded in the computation of diluted net income per share because the effect from the assumed exercise of these options would be anti-dilutive. The following table provides the calculation of basic and diluted net income per share for each of the periods presented: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands, except per share data) Basic and dilutive numerator: Net income $ 1,972 $ 6,895 $ 2,865 $ 9,384 Denominator: Weighted-average shares outstanding — basic 46,025 44,957 46,047 44,999 Net effect of dilutive securities: Incremental shares from equity awards 1,841 1,011 1,915 713 Weighted-average shares outstanding — diluted 47,866 45,968 47,962 45,712 Net income per share — basic $ 0.04 $ 0.15 $ 0.06 $ 0.21 Net income per share — diluted $ 0.04 $ 0.15 $ 0.06 $ 0.21

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2017
Segment Reporting
Segment Reporting	Note 6. Segment Reporting 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, naloxone, lidocaine, as well as various other critical and non-critical care drugs. The API segment manufactures and distributes recombinant human insulin API and porcine insulin API for external customers and internal product development. Selected financial information by reporting segment is presented below: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Net revenues: Finished pharmaceutical products $ 63,765 $ 63,756 $ 119,699 $ 122,310 API 1,422 4,277 2,158 5,089 Total net revenues 65,187 68,033 121,857 127,399 Gross profit: Finished pharmaceutical products 28,866 30,598 53,176 56,422 API (2,119) 1,116 (3,601) 194 Total gross profit 26,747 31,714 49,575 56,616 Operating expenses 24,562 21,384 45,986 42,211 Income from operations 2,185 10,330 3,589 14,405 Non-operating income (expenses) 988 (578) 1,088 (837) Income before income taxes $ 3,173 $ 9,752 $ 4,677 $ 13,568 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. The amount of net revenues in the finished pharmaceutical product segment is presented below: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Finished pharmaceutical products net revenues: Enoxaparin $ 8,288 $ 17,328 $ 18,698 $ 35,686 Naloxone 10,261 15,561 21,200 25,815 Epinephrine 10,648 5,226 20,222 9,618 Lidocaine 9,334 8,191 17,622 18,099 Phytonadione 10,003 8,761 17,890 14,887 Other finished pharmaceutical products 15,231 8,689 24,067 18,205 Total finished pharmaceutical products net revenues $ 63,765 $ 63,756 $ 119,699 $ 122,310 Discontinuation of epinephrine injection, USP vial product In March 2017, the U.S. Food and Drug Administration, or FDA, requested the Company to discontinue the manufacturing and distribution of its epinephrine injection, USP vial product, which has been marketed under the “grandfather” exception to the FDA’s “Prescription Drug Wrap-Up” program. The Company discontinued selling this product in the second quarter of 2017. For the year ended December 31, 2016, the Company recognized $18.6 million in net revenues for the sale of this product. A charge of $3.3 million was included in the cost of revenues in its consolidated statements of operations for the year ended December 31, 2016 to adjust the related inventory items and firm purchase commitments to their net realizable value due to the anticipated discontinuation of the product. 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 Six Months Ended June 30, June 30, June 30, December 31, 2017 2016 2017 2016 2017 2016 (in thousands) United States $ 63,799 $ 67,550 $ 119,729 $ 126,089 $ 105,881 $ 104,110 China — — — — 36,651 35,085 France 1,388 483 2,128 1,310 19,097 13,659 United Kingdom — — — — 91 90 Total $ 65,187 $ 68,033 $ 121,857 $ 127,399 $ 161,720 $ 152,944

Customer and Supplier Concentra

Customer and Supplier Concentration	6 Months Ended
	Jun. 30, 2017
Customer and Supplier Concentration
Customer and Supplier Concentration	Note 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 had exclusive marketing rights of the Company’s enoxaparin product to the U.S. retail pharmacy market until December 2016. The Company considers these four customers to be its major customers, as each individually, and these customers collectively, represented a significant percentage of the Company’s net revenue for the three and six months ended June 30, 2017 and 2016, and accounts receivable as of June 30, 2017 and December 31, 2016, respectively. The following table provides accounts receivable and net revenue information for these major customers: % of Total Accounts % of Net Receivable Revenue Three Months Ended Six Months Ended June 30, December 31, June 30, June 30, 2017 2016 2017 2016 2017 2016 Actavis (1) — 1 % — 18 % — 20 % AmerisourceBergen 23 % 30 % 29 % 20 % 29 % 19 % Cardinal Health 25 % 28 % 26 % 20 % 25 % 20 % McKesson 29 % 19 % 27 % 19 % 27 % 20 % (1) The agreement with Actavis was terminated in December 2016. Supplier Concentrations The Company depends on suppliers for raw materials, active pharmaceutical ingredients, and other components that are subject to stringent 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.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Measurements
Fair Value Measurements	Note 8. Fair Value Measurements The accounting standards of the 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 fair values of the Company’s financial assets and liabilities measured on a recurring basis, as of June 30, 2017 and December 31, 2016, are as follows: Quoted Prices in Active Markets Significant Other Significant Other for Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands) Cash equivalents $ 52,707 $ 52,707 $ — $ — Restricted short-term investments 4,155 4,155 — — Fair value measurement as of June 30, 2017 $ 56,862 $ 56,862 $ — $ — Cash equivalents $ 36,082 $ 36,082 $ — $ — Restricted short-term investments 1,390 1,390 — — Fair value measurement as of December 31, 2016 $ 37,472 $ 37,472 $ — $ — The fair value of the Company’s cash equivalents includes money market accounts, money market funds, Money Market Insured Deposit Account Service, or MMIDAS, and Insured Cash Sweep, or ICS accounts. Restricted 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 and performance bonds. Short-term investments primarily consist of held-to-maturity municipal bonds with original maturities greater than three months. The municipal bonds are carried at amortized cost in the Company’s consolidated balance sheet, which approximates their fair value determined based on Level 2 inputs. The Company does not intend to and will not be required to sell the investments before recovery of their amortized cost basis. The Company does not hold any Level 3 instruments that are measured for fair value on a recurring basis. Nonfinancial 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 June 30, 2017 and December 31, 2016, there were no significant adjustments to fair value for nonfinancial assets or liabilities.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 9. Goodwill and Intangible Assets The table below shows the weighted-average life, original cost, accumulated amortization, and net book value by major intangible asset classification: Weighted-Average Accumulated Life (Years) Original Cost Amortization Net Book Value (in thousands) Definite-lived intangible assets Cortrosyn® product rights 12 $ 27,134 $ 25,352 $ 1,782 IMS (UK) international product rights (1) 10 9,098 834 8,264 Patents 10 293 151 142 Land-use rights 39 2,540 387 2,153 Other intangible assets 4 69 37 32 Subtotal 12 39,134 26,761 12,373 Indefinite-lived intangible assets Trademark * 29,225 — 29,225 Goodwill - Finished pharmaceutical products * 4,271 — 4,271 Subtotal * 33,496 — 33,496 As of June 30, 2017 * $ 72,630 $ 26,761 $ 45,869 Weighted-Average Accumulated Life (Years) Original Cost Amortization Net Book Value (in thousands) Definite-lived intangible assets Cortrosyn® product rights 12 $ 27,134 $ 24,461 $ 2,673 IMS (UK) international product rights (1) 10 8,632 359 8,273 Acquired ANDAs (2) 15 4,000 222 3,778 Patents 10 293 137 156 Land-use rights 39 2,540 354 2,186 Other intangible assets 1 574 534 40 Subtotal 12 43,173 26,067 17,106 Indefinite-lived intangible assets Trademark * 29,225 — 29,225 Goodwill - Finished pharmaceutical products * 3,976 — 3,976 Subtotal * 33,201 — 33,201 As of December 31, 2016 * $ 76,374 $ 26,067 $ 50,307 * Intangible assets with indefinite lives have an indeterminable average life. (1) In August 2016, the Company acquired International Medication Systems (UK) Limited from UCB PHARMA GmbH for $7.7 million. The fair value of the marketing authorization was $9.2 million as of the acquisition date (see Note 3). (2) In February 2017, the Company sold the 14 ANDAs it had acquired from Hikma to an unrelated party for $6.4 million. Sale of Fourteen Injectable ANDAs In February 2017, the Company sold the 14 ANDAs it acquired in March 2016 from Hikma to an unrelated party. The consideration included a purchase price of $6.4 million of which the amount of $1.0 million was received upon closing, $1.0 million was received in the second quarter of 2017 and the remaining $4.4 million will be paid upon certain milestones. If the purchaser is not able to achieve these milestones by December 31, 2017, the purchaser will pay the remaining payments within 30 days of December 31, 2017. In addition to the purchase price, the purchaser agreed to pay the Company a royalty fee equal to 2% of net sales derived from purchaser’s sales of the products for the period from February 2017 through February 2027. The Company is also subject to certain indemnification liability payable to the purchaser, which is limited up to $0.6 million. The Company recognized a gain of $2.6 million within operating (income) expenses on its condensed consolidated statement of operations for the six months ended June 30, 2017, and a receivable of $4.4 million in current other assets on its condensed consolidated balance sheet as of June 30, 2017. Goodwill The changes in the carrying amounts of goodwill were as follows: June 30, December 31, 2017 2016 (in thousands) Beginning balance $ 3,976 $ 3,726 Goodwill related to acquisition of business — 391 Currency translation and other adjustments 295 (141) Ending balance $ 4,271 $ 3,976 Primatene ® 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, which are recorded at the allocated fair value of $29.2 million, which is its carrying value as of June 30, 2017. The trademark was determined to have an indefinite life. In determining its indefinite life, 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 ® that utilizes hydrofluoroalkane, or HFA, as a propellant. In 2013, the Company filed a new drug application, or NDA, for Primatene ® Mist 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 required additional non-clinical information, label revisions and follow-up studies (label comprehension, behavioral/human factors and actual use) to assess consumers’ ability to use the device correctly to support approval of the product in the over-the-counter setting. 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 received further advice regarding its ongoing studies from the FDA in January 2016 and subsequently completed the process of generating the remaining data required by the CRL and plans to submit human factor studies accordingly. The Company submitted a responsive NDA amendment in June 2016 and received another CRL from the FDA in December 2016, which requires additional packaging and label revisions and follow-up studies to assess consumers’ ability to use the device correctly to support approval of the product in the over-the-counter setting. The Company intends to continue to work with the FDA during the post-action phase to address their concerns in the CRL and bring Primatene ® Mist back to the over-the-counter market. However, there can be no guarantee that any future amendment to the Company’s NDA will result in timely approval of Primatene ® Mist or approval at all. Based on the Company’s filed version of Primatene ® Mist, the long history of the Primatene ® trademark (marketed since 1963), and the Company’s perpetual rights to the trademark, the nature of the CRL received in December 2016, the plan that the HFA version will be marketed under the same trademark if approved by the FDA, and other factors previously considered, the trademark continues to have an indefinite useful life, and an impairment charge is not required based on the Company’s qualitative assessment as of June 30, 2017.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventories
Inventories	Note 10. Inventories Inventories consist of the following: June 30, December 31, 2017 2016 (in thousands) Raw materials and supplies $ 24,914 $ 36,209 Work in process 26,516 22,266 Finished goods 23,027 21,279 Total inventories $ 74,457 $ 79,754 A charge of $4.7 million and $5.1 million were included in the cost of revenues in the Company’s condensed consolidated statements of operations for the three months and six months ended June 30, 2017, respectively, to adjust inventory items to their net realizable value, including a $2.9 million charge in the three months ended June 30, 2017 related to enoxaparin inventory items as a result of a decrease in the forecasted average selling price.

Property, Plant, and Equipment

Property, Plant, and Equipment	6 Months Ended
	Jun. 30, 2017
Property, Plant, and Equipment
Property, Plant, and Equipment	Note 11. Property, Plant, and Equipment Property, plant, and equipment consist of the following: June 30, December 31, 2017 2016 (in thousands) Buildings $ 86,960 $ 85,283 Leasehold improvements 29,275 24,619 Land 7,050 6,857 Machinery and equipment 115,540 111,041 Furniture, fixtures, and automobiles 15,577 15,113 Construction in progress 34,785 32,044 Total property, plant, and equipment 289,187 274,957 Less accumulated depreciation (127,467) (122,013) Total property, plant, and equipment, net $ 161,720 $ 152,944 As of June 30, 2017 and December 31, 2016, the Company had $2.4 million and $2.6 million, respectively, in capitalized manufacturing equipment that is intended to be used specifically for the manufacture of Primatene ® Mist. The Company will continue to monitor developments with the FDA as it relates to its Primatene ® Mist indefinite lived intangible assets in determining if there is an impairment of these related fixed assets (see Note 9).

Debt

Debt	6 Months Ended
	Jun. 30, 2017
Debt
Debt	Note 12. Debt Debt consists of the following: June 30, December 31, 2017 2016 (in thousands) Loans with East West Bank Equipment loan paid off April 2017 $ — $ 433 Line of credit facility due December 2018 — — Equipment loan due January 2019 2,438 3,208 Mortgage payable due February 2021 3,619 3,660 Equipment loan due June 2021 4,898 2,882 Equipment line of credit due December 2022 — — Mortgage payable due October 2026 3,553 3,582 Mortgage payable due June 2027 9,000 — Loans with Cathay Bank Line of credit facility due May 2018 — — Acquisition loan due April 2019 16,081 17,079 Mortgage payable due April 2021 4,318 4,367 Loans with Seine-Normandie Water Agency French government loan 1 due March 2018 16 French government loan 2 due June 2020 79 French government loan 3 due July 2021 289 Payment Obligation to Merck 561 506 Equipment under Capital Leases 1,460 1,614 Total debt and capital leases 46,312 37,722 Less current portion of long-term debt and capital leases 6,205 5,366 Long-term debt and capital leases, net of current portion $ 40,107 $ 32,356 Loans with East West Bank Equipment Loan—Paid off 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 were secured by equipment. Borrowings under the facility bore a variable interest rate at the prime rate as published by The Wall Street Journal , plus 0.25%, with a minimum interest rate of 3.50%. In April 2017, the Company repaid all outstanding amounts due under this loan. Line of Credit Facility—Due December 2018 In March 2012, the Company entered into a $10.0 million line of credit facility, which bears a variable interest rate at the prime rate as published by The Wall Street Journal . Borrowings under the facility are secured by inventory and accounts receivable. This facility matured in March 2016. In March 2016, the facility was amended to increase the line of credit to $15.0 million and to extend the maturity date to September 2017. In May 2017, the Company amended the facility to extend the maturity date to December 2018. As of June 30, 2017, the Company did not have any amounts outstanding under this facility. Equipment Loan—Due January 2019 In July 2013, the Company entered into an $8.0 million line of credit facility. In January 2015, the Company drew down $6.2 million from the line of credit facility. Subsequently, the facility was converted into a term equipment loan with an outstanding principal balance of $6.2 million and a maturity date of January 2019. Borrowings under the facility are secured by equipment. As of June 30, 2017, the fair value of the loan approximates its book value. The interest rate used in the fair value estimation was determined to be a Level 2 input. The Company has entered into a fixed interest rate swap contract on this facility to exchange the variable interest rate for a fixed interest rate of 4.48% over the life of the facility without the exchange of the underlying notional debt amount. The interest rate swap contract does not qualify for hedge accounting and is recorded at fair value for an immaterial amount based on Level 2 inputs. Mortgage Payable—Due February 2021 The Company refinanced the mortgage term loan in January 2016, which had an outstanding principal balance of $3.7 million at December 31, 2015, and a maturity date of February 2021. The refinanced loan is payable in monthly installments with a final balloon payment of $3.3 million. The refinanced loan is secured by one of the buildings at the Company’s Rancho Cucamonga, California, headquarters complex. The refinanced loan has a variable interest rate at the prime rate as published by The Wall Street Journal . As of June 30, 2017, the fair value of the loan approximates its book value. The interest rate used in the fair value estimation was determined to be a Level 2 input. The Company has entered into a fixed interest rate swap contract on this loan to exchange the variable interest rate for a fixed interest rate of 4.39% over the life of the loan without the exchange of the underlying notional debt amount. The interest rate swap contract does not qualify for hedge accounting, and is recorded at fair value for an immaterial amount based on Level 2 inputs. Equipment Loan—Due June 2021 In March 2016, the Company entered into a $5.0 million equipment credit facility. In May 2017, the Company converted the outstanding balance of $5.0 million into a term equipment loan which matures in June 2021. Borrowings under the loan are secured by equipment. The loan bears a variable interest rate at the prime rate as published by The Wall Street Journal . As of June 30, 2017, the fair value of the loan approximates its book value. The interest rate used in the fair value estimation was determined to be a Level 2 input. The Company has entered into a fixed interest rate swap contract on this facility to exchange the variable interest rate for a fixed interest rate of 4.86% over the life of the facility without the exchange of the underlying notional debt amount. The interest rate swap contract does not qualify for hedge accounting and is recorded at fair value for an immaterial amount based on Level 2 inputs. Equipment Credit Line—Due December 2022 In June 2017, the Company entered into an $8.0 million equipment credit line with an 18-month draw down period. Interest payments are due monthly through December 2018 at the prime rate as published by The Wall Street Journal. After the draw down period, the outstanding principal balance converts into a 48-month term loan which bears a variable interest rate at the prime rate as published by The Wall Street Journal. The loan matures in December 2022, and the principal and interest payments are due monthly. Borrowings under the facility are secured by equipment. As of June 30, 2017, the Company did not have any amounts outstanding under this facility. Mortgage Payable—Due October 2026 In September 2006, the Company entered into a mortgage term loan in the principal amount of $2.8 million, which matured in September 2016. The Company refinanced the mortgage term loan in September 2016, which increased the principal amount to $3.6 million and extended the maturity date to October 2026. The refinanced loan is payable in monthly installments with a final balloon payment of $2.9 million. The refinanced loan was secured by one of the buildings at the Company’s Rancho Cucamonga, California, headquarters complex. The refinanced loan bears a variable interest rate at the one-month LIBOR rate plus 2.75%. As of June 30, 2017, the fair value of the loan approximates its book value. The interest rate used in the fair value estimation was determined to be a Level 2 input. Subsequently, the Company entered into a fixed interest rate swap contract on this loan to exchange the variable interest rate for a fixed interest rate of 4.15% until October 2021 without the exchange of the underlying notional debt amount. The interest rate swap contract does not qualify for hedge accounting, and is recorded at fair value for an immaterial amount based on Level 2 inputs. Mortgage Payable—Due June 2027 In May 2017, the Company entered into a mortgage term loan in the principal amount of $9.0 million, which matures in June 2027. The loan is payable in monthly installments with a final balloon payment of $7.4 million plus interest. The loan is secured by one of the buildings at the Company’s Rancho Cucamonga, California, headquarters complex and two buildings at the Company’s Chino, California, facility. The loan bears a variable interest rate at the one-month LIBOR rate plus 2.5%. As of June 30, 2017, the fair value of the loan approximates its book value. The interest rate used in the fair value estimation was determined to be a Level 2 input. The Company entered into a fixed interest rate swap contract on this loan to exchange the variable interest rate for a fixed interest rate of 4.79% until June 2024 without the exchange of the underlying notional debt amount. The interest rate swap contract does not qualify for hedge accounting, and is recorded at fair value of approximately $0.2 million based on Level 2 inputs. Loans with Cathay Bank Line of Credit Facility—Due May 2018 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 receivable, and intangibles held by the Company. The facility bears a variable interest rate at the prime rate as published by The Wall Street Journal with a minimum interest rate of 4.00%. In June 2016, the Company amended the facility to extend the maturity date from May 2016 to May 2018. As of June 30, 2017, 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. As of June 30, 2017, the fair value of the loan approximates its book value. The interest rate used in the fair value estimation was determined to be a Level 2 input. 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. Mortgage Payable—Due April 2021 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 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 June 30, 2017, the fair value of the loan approximates its book value. The interest rate used in the fair value estimation was determined to be a Level 2 input. 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 June 30, 2017, the payment obligation had an aggregate book value of €0.4 million, or $0.4 million, subject to currency exchange rate fluctuations, 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%. Such interest rate is deemed to be a Level 2 input for measuring fair value. Payment Obligation to Merck 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 rate fluctuations. The terms of the purchase price include annual payments over four years and bear a fixed interest rate of 3.00%. As of June 30, 2017, the payment obligation had a balance 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%. Such interest rate is deemed to be a Level 2 input for measuring fair value. Covenants At June 30, 2017 and December 31, 2016, the Company was in compliance with its debt covenants, which include a minimum current ratio, minimum debt service coverage, minimum tangible net worth, maximum debt-to-effective-tangible-net-worth ratio, and minimum deposit requirement, computed on a consolidated basis. Equipment under Capital Leases The Company entered into leases for certain equipment under capital leasing arrangements, which will expire at various times through 2021. The cost of equipment under capital leases was $1.9 million and $2.0 million at June 30, 2017 and December 31, 2016, respectively. The accumulated depreciation of equipment under capital leases was $0.4 million and $0.2 million at June 30, 2017 and December 31, 2016, respectively. Depreciation of assets recorded under capital leases is included in depreciation expense in the accompanying consolidated financial statements.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Taxes
Income Taxes	Note 13. Income Taxes The following table sets forth the Company’s income tax provision for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Income before taxes $ 3,173 $ 9,752 $ 4,677 $ 13,568 Income tax expense 1,201 2,857 1,812 4,184 Net income $ 1,972 $ 6,895 $ 2,865 $ 9,384 Income tax provision as a percentage of income before income taxes 37.9 % 29.3 % 38.7 % 30.8 % The Company has a full valuation allowance against its French deferred tax assets; however, a tax benefit is included in the annual effective tax rate computation due to the French entity reporting a year-to-date foreign exchange gain in other comprehensive income. The Company has calculated an estimated annual effective income tax rate of 40.1% for the year ended December 31, 2017, based upon its forecasted income. This estimated effective tax rate factors in various permanent differences, including domestic deductions, the impact of foreign operations, and various credits. The Company also factors in certain discrete tax items that are recognized in the quarter. The Company’s income tax provision of 29.3% and 30.8% during the three and six months ended June 30, 2016, respectively, factored in similar permanent items, as well as the impact of its foreign operations and discrete tax items recognized in the quarter. Effective January 1, 2017, the Company adopted ASU 2016-09, under which, differences between the tax deduction for share-based awards and the related compensation expenses recognized under ASC 718 are prospectively accounted for as a component of the provision for income taxes. In addition, ASU 2016-09 eliminated the requirement that excess tax benefits from share-based compensation reduce taxes payable prior to being recognized in the financial statements. As a result of the adoption of ASU 2016-09, the cumulative excess benefits of stock compensation of $0.9 million that was not previously recognized was established on the balance sheet resulting in an increase in deferred tax assets and retained earnings. The Company’s income tax return for the 2015 tax year is currently under examination by the Internal Revenue Service. There are differing interpretations of tax laws and regulations and, as a result, significant disputes may arise with tax authorities involving issues of timing and amount of deductions and allocations of income. Resolution of uncertain tax positions may have an impact on the results of operations for that period. 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. M anagement considers sources of taxable income such as income in prior carryback periods, future reversal of existing deferred taxable temporary differences, tax-planning strategies, and projected future taxable income. In 2015, the Company assessed the realizability of the deferred tax assets of AFP and determined that it was not more likely than not that the net deferred tax assets of AFP would be realized. Therefore, the Company established a full valuation allowance of $0.9 million as of December 31, 2015, and continues to maintain a full valuation allowance on all AFP deferred tax assets.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity
Stockholders' Equity	Note 14. Stockholders’ Equity A summary of the changes in stockholders’ equity for the six months ended June 30, 2017, consisted of the following: Six Months Ended June 30, 2017 (in thousands) Stockholders’ equity as of December 31, 2016 $ 329,255 Beginning balance adjustment to retained earnings as a result of the adoption of ASU 2016-09 872 Adjusted stockholders’ equity as of January 1, 2017 330,127 Net income 2,865 Accumulated other comprehensive income 1,476 Settlement of share-based compensation 7,278 Share-based compensation expense 8,749 Treasury stock repurchase (17,181) Stockholders’ equity as of June 30, 2017 $ 333,314 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 85% of the lower of the fair market value of the common stock at the beginning of an offering period or on the date of purchase. As of June 30, 2017, the Company has issued 320,623 shares of common stock under the ESPP and 1,679,377 shares of its common stock remained available for issuance. For the three and six months ended June 30, 2017 , the Company recorded ESPP expense of $0.2 million and $0.3 million, respectively . For the three and six months ended June 30, 2016 , the Company recorded ESPP expense of $0.2 million and $0.3 million, respectively . Share Buyback Program On November 6, 2014, the Company’s Board of Directors authorized a $10.0 million share buyback program, which was completed in December 2015. On November 10, 2015, the Company’s Board of Directors authorized an additional $10.0 million to the Company’s share buyback program. On November 7, 2016, the Company’s Board of Directors authorized an increase of $20.0 million to the Company’s share buyback program, which is expected to continue for an indefinite period of time. On August 7, 2017, the Company’s Board of Directors authorized an additional $20.0 million to the Company’s share buyback program. The primary goal of the programs is to offset dilution created by the Company’s equity compensation programs. Purchases are made through 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 SEC. 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 579,388 and 1,112,282 shares of its common stock during the three and six months ended June 30, 2017, for total consideration of $9.0 million and $17.2 million, respectively. The Company purchased 265,900 and 664,500 shares of its common stock during the three and six months ended June 30, 2016, for total consideration of $3.5 million and $8.2 million, respectively. 2015 Equity Incentive Plan In March 2015, the Board of Directors adopted the Company’s 2015 Equity Incentive Plan, or the 2015 Plan, which was approved by the Company’s stockholders in May 2015 and is set to expire in March 2025. The 2015 Plan is designed to meet the needs of a publicly traded company, including the requirements for granting “performance based compensation” under Section 162(m) of the Internal Revenue Code. The 2015 Plan provides for the grant of incentive stock options, nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, performance shares, and other stock or cash awards to employees of the Company and its subsidiaries, members of the Board of Directors and consultants. The Company initially reserved 5,000,000 shares of common stock for issuance under the 2015 Plan. This number will be increased by the number of shares available for issuance under the Company’s prior equity incentive plans or arrangements that are not subject to options or other awards, plus the number of shares of common stock related to options or other awards granted under the Company’s prior equity incentive plans or arrangements that are repurchased, forfeited, expired, or cancelled on or after the effective date of the 2015 Plan. The 2015 Plan also contains an “evergreen provision” that allows for an annual increase in the number of shares available for issuance on January 1 of each year during the 10 year term of the 2015 Plan, beginning January 1, 2016. The annual increase in the number of shares shall be the lessor of (i) 3,000,000 shares, (ii) two and one-half percent (2.5%) of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) such number of shares as determined by the Board of Directors. As of the effective date, there were 5,300,296 shares available for grant under the 2015 Plan. As of June 30, 2017, the Company reserved an aggregate of 3,265,420 shares of common stock for future issuance under the 2015 Plan. In January 2017, an additional 1,156,216 shares were reserved under the 2015 Plan pursuant to the evergreen provision. Share-Based Award Activity and Balances The Company accounts for share-based compensation payments in accordance with ASC 718, which requires measurement and recognition of compensation expense at fair value for all share-based payment awards made to employees and directors. Under these standards, the fair value of option awards and the option components of the ESPP awards are estimated at the grant date using the Black-Scholes option-pricing model. The fair value of RSUs is estimated at the grant date using the Company’s common share price. Non-vested stock options held by non-employees are revalued using the Company’s estimate of fair value at each balance sheet date. The portion that is ultimately expected to vest is amortized and recognized in the compensation expenses on a straight-line basis over the requisite service period, generally from the grant date to the vesting date. The weighted-averages for key assumptions used in determining the fair value of options granted during the three and six months ended June 30, 2017 and 2016, are as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Average volatility 40.2 % 33.0 % 37.0 % 30.4 % Risk-free interest rate 1.5 % 0.9 % 2.1 % 1.5 % Weighted-average expected life in years 3.0 3.0 5.4 5.5 Dividend yield rate — % — % — % — % A summary of option activity under all plans for the six months ended June 30, 2017, is presented below: Weighted-Average Weighted-Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term (Years) Value (1) (in thousands) Outstanding as of December 31, 2016 12,530,297 $ 14.57 Options granted 1,765,813 14.19 Options exercised (752,420) 11.61 Options cancelled (38,206) 13.59 Options expired (109,675) 25.43 Outstanding as of June 30, 2017 13,395,809 $ 14.60 4.62 $ 55,447 Exercisable as of June 30, 2017 8,873,906 $ 15.17 3.15 $ 35,742 (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 June 30, 2017. For the three and six months ended June 30, 2017 , the Company recorded expenses of $2 .0 million and $4 .0 million, respectively, related to stock options granted to employees under all plans and expenses of $0.2 million and $0.3 million, respectively, related to stock options granted to the Board of Directors under all plans. For the three and six months ended June 30, 2016 , the Company recorded expenses of $2.3 million and $4.4 million, respectively, related to stock options granted to employees under all plans and expenses of $0.2 million and $0.4 million, respectively, related to stock options granted to the Board of Directors under all plans. Information relating to option grants and exercises is as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands, except per share data) Weighted-average grant date fair value $ 5.01 $ 3.88 $ 4.92 $ 3.40 Intrinsic value of options exercised 3,037 967 3,062 982 Cash received 8,643 3,149 8,739 3,253 Total fair value of the options vested during the year 1,424 2,000 6,205 5,260 A summary of the status of the Company’s non-vested options as of June 30, 2017, and changes during the six months ended June 30, 2017 is presented below: Weighted-Average Grant Date Options Fair Value Non-vested as of December 31, 2016 4,592,187 $ 3.61 Options granted 1,765,813 4.92 Options vested (1,797,891) 3.45 Options forfeited (38,206) 4.85 Non-vested as of June 30, 2017 4,521,903 4.17 As of June 30, 2017, there was $14.5 million of total unrecognized compensation cost, net of forfeitures, related to non-vested stock option based compensation arrangements granted under all plans. The cost is expected to be recognized over a weighted-average period of 2.4 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 RSUs). The grantee receives one share of common stock at a specified future date for each RSU awarded. The RSUs may not be sold or otherwise transferred until certificates of common stock have been issued, recorded, and delivered to the participant. The RSUs 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 using the straight-line method. During the three and six months ended June 30, 2017, the Company recorded expense of $1.7 million and $3.7 million, respectively, related to RSU awards granted to employees under all plans and expenses of $0.2 million and $0.3 million, respectively, related to RSU awards granted to the Board of Directors . During the three and six months ended June 30, 2016, the Company recorded expenses of $1.4 million and $2.5 million, respectively, related to RSU awards granted to employees under all plans and expenses of $0.2 million and $0.4 million, respectively, related to RSU awards granted to the Board of Directors. As of June 30, 2017, there was $15.4 million of total unrecognized compensation cost, net of forfeitures, related to non-vested RSU-based compensation arrangements granted under all plans. The cost is expected to be recognized over a weighted-average period of 2.5 years and will be adjusted for future changes in estimated forfeitures. Information relating to RSU grants and deliveries is as follows: Total Fair Market Value of RSUs Issued Total RSUs as Issued Compensation (1) (in thousands) RSUs outstanding at December 31, 2016 1,215,786 RSUs granted 630,799 $ 8,578 RSUs forfeited (11,110) RSUs vested (2) (467,164) RSUs outstanding at June 30, 2017 1,368,311 (1) The total fair market value is derived from the number of RSUs granted times the current stock price on the date of grant. (2) Of the vested RSUs 178,312 shares of common stock were surrendered to fulfil tax withholding obligations. Equity Awards to Consultants and Advisory Board Members The Company pays certain consultants and advisory board members in the form of share-based awards. Such share-based compensation expense is recorded over the service period based on the estimated fair market value of the equity award at the date services are performed or upon completion of services. During the three and six months ended June 30, 2017, the Company recorded expenses of $0.1 million and $0.1 million, respectively, in relation to such share-based compensation. During the three months ended June 30, 2016, the Company recorded an immaterial amount of expense in relation to such share-based compensation. During the six months ended June 30, 2016, the Company recorded an expense of approximately $0.1 million in relation to such share-based compensation. The Company recorded share-based compensation expense under all plans and it is included in the Company’s consolidated statement of operations as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Cost of revenues $ 897 $ 771 $ 2,028 $ 1,570 Operating expenses: Selling, distribution, and marketing 65 65 149 131 General and administrative 2,985 3,100 5,768 5,746 Research and development 351 262 804 602 Total share-based compensation $ 4,298 $ 4,198 $ 8,749 $ 8,049

Employee Benefits

Employee Benefits	6 Months Ended
	Jun. 30, 2017
Employee Benefits
Employee Benefits	Note 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 6% of employee contributions, and pays the administrative costs of the Plan. Employer contributions vest over four years. Total employer contributions for the three and six months ended June 30, 2017, were approximately $0.2 million and $0.5 million, respectively, compared to the prior year expense of $0.3 million and $0.5 million for the three and six months ended June 30, 2016, 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 employed by 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 AFP employee turnover rate. The liability under the plan is based on a discount rate of 1.60% and 1.75% as of June 30, 2017 and December 31, 2016, respectively. 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 $1.8 million and $1.7 million at June 30, 2017 and December 31, 2016, respectively. The Company recorded an immaterial amount of expense under the plan for the three months ended June 30, 2017, and $0.1 million for the six months ended June 30, 2017. The Company recorded an immaterial amount of expense under the plan for the three months ended June 30, 2016, and $0.1 million for the six months ended June 30, 2016.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	Note 16. Commitments and Contingencies Supply Agreement with MannKind Corporation On July 31, 2014, the Company entered in a supply agreement with MannKind Corporation, or MannKind, or the Supply Agreement, pursuant to which the Company agreed to manufacture for and supply to MannKind certain quantities of RHI API for use in MannKind’s product Afrezza ® . Under the Supply Agreement, MannKind agreed to purchase annual minimum quantities of RHI API in an aggregate amount of approximately €120.1 million, or approximately $146.0 million, over five years from calendar years 2015 through 2019. Specifically, the minimum annual purchase commitment was approximately €27.1 million in 2015 and approximately €23.3 million each year from 2016 through 2019. On July 31, 2014, upon entering into the Supply Agreement, MannKind paid a non-refundable prepayment to the Company in the amount of €11.0 million, or approximately $14.0 million. Under the Supply Agreement, the non-refundable prepayment was applied towards the 2015 annual commitment. The Company recorded the amount as deferred revenue in 2014, and it was recognized as net revenue in 2015 at the time the product shipped. In January 2015, the Company entered into a supply option agreement with MannKind, or the Option Agreement, pursuant to which MannKind will have the option to purchase RHI API, in excess of the minimum amounts specified in the Supply Agreement in calendar years 2016 through 2019. In the event MannKind elects not to exercise its minimum annual purchase option for any year under the Option Agreement, MannKind is obligated to pay the Company a specified capacity cancellation fee. In October 2015, MannKind informed the Company that it was not exercising the option to purchase additional quantities of RHI API for 2016 under the Option Agreement and paid the Company the specified capacity cancellation fee of $0.8 million. Such capacity cancellation fee was recorded as net revenue in the Company’s consolidated statement of operations for the year ended December 31, 2015. For the year ended December 31, 2016, sales of RHI API to MannKind totaled $6.8 million, which fulfilled the remaining unfulfilled 2015 commitment of RHI under the Supply Agreement. In November 2016, the Company amended the Supply Agreement with MannKind, whereby MannKind’s aggregate total commitment of RHI API under the Supply Agreement has not been reduced; however, the annual minimum purchase commitments of RHI API under the Supply Agreement have been modified and extended through 2023, which timeframe had previously lapsed after calendar year 2019. Specifically, the minimum annual purchase commitment in calendar year 2016 has been cancelled, and the minimum annual purchase commitments in calendar years 2017 through 2023 have been modified to be €2.7 million of insulin in the fourth quarter of 2017, €8.9 million in 2018, €11.6 million in 2019, €15.5 million in 2020 and in 2021, and €19.4 million in 2022 and in 2023. MannKind may request to purchase additional quantities of RHI API in excess of its annual minimum purchase commitments. The Supply Agreement Amendment also (i) shortened the required expiry dates for RHI API delivered to MannKind pursuant to the Supply Agreement, (ii) modified the timing of MannKind’s payment for the minimum annual purchase commitment in calendar year 2017, and (iii) added a pre-payment requirement for purchases of RHI API by MannKind in calendar years 2017 and 2018. The amendment 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. Concurrently with the amendment of the Supply Agreement, the Company amended the Option Agreement with MannKind, whereby the amendment to the Option Agreement extends the timing for payment of the capacity cancellation fee for 2017 and decreases the amounts payable as capacity cancellation fees for 2018 and 2019 in the event MannKind fails to exercise its minimum annual purchase option for any given year. The Company recognized the cancellation fee for 2017 of $1.5 million in net revenues in its consolidated statement of operations for the year ended December 31, 2016, and subsequently collected on this receivable. In addition to, and in consideration of the amended timeframe and other amendments contained in the amendment to the Supply Agreement in the amendment to the Option Agreement, the Supply Agreement Amendment provided the Company right of first refusal to participate in the development and commercialization of Afrezza® in China through a collaborative arrangement. Collaboration Agreement with a Medical Device Manufacturer In 2014, the Company entered into a collaboration agreement with a medical device manufacturer to develop a drug delivery system to be used by the Company for one of its pipeline products. As of June 30, 2017, the Company has paid an upfront payment of $0.5 million and has paid $1.5 million in milestone payments under this agreement, which were classified as research and development expense as the milestones were met. The Company is obligated to pay up to an additional $0.5 million if certain milestones are met. As of June 30, 2017, no such obligation existed. Pursuant to the collaboration agreement, if the medical device manufacturer is successful in the development of this drug delivery system and the Company’s pipeline products receive appropriate regulatory approval, the Company intends to enter into a commercial supply agreement with such medical device manufacturer for a minimum purchase of 1.0 million units during the first 12 months. 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 and six months ended June 30, 2017, was approximately $0.9 million and $1.7 million, respectively, compared to $0.9 million and $1.7 million for the three and six months ended June 30, 2016, respectively. Purchase Commitments As of June 30, 2017, the Company has entered into commitments to purchase equipment and raw materials for an aggregate amount of approximately $51.3 million. The Company anticipates that most of these commitments with a remaining term in excess of one year will be fulfilled by 2018. In addition, the Company is obligated to pay a supplier certain payments up to $1.5 million based on its launch and sale of one of the Company’s pipeline products. 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 products. In conjunction with these agreements, ANP modified its business license on July 3, 2012, to increase its authorized capital. As of December 31, 2016, the Company had invested its total registered capital commitment of $61.0 million to ANP. This investment in ANP resulted 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. The Company is in discussions with the Chinese government regarding the development and believes that the likelihood of incurring any penalty is remote.

Litigation

Litigation	6 Months Ended
	Jun. 30, 2017
Litigation
Litigation	Note 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 Massachusetts District Court. In October 2011, the Massachusetts 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 the 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 Massachusetts 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 their infringement contentions. On January 24, 2014, the Massachusetts District Court judge entered final judgment in the Company’s favor on both patents. Momenta and Sandoz also filed a motion to collect attorneys’ fees and costs relating to a discovery motion, which the Massachusetts District Court granted. On May 9, 2016, the Massachusetts District Court issued an order imposing fees and costs of approximately $0.4 million in relation to this discovery motion. This amount has been accrued in the general and administrative expense for the quarter ended March 31, 2016 . 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. Following appeal briefing filed by the parties, t he Federal Circuit held oral argument on May 4, 2015. On November 10, 2015, the Federal Circuit panel affirmed-in-part and vacated-in-part the decision of the Massachusetts District Court granting summary judgment of non-infringement as to the Company, and it remanded the case to the Massachusetts District Court for further proceedings consistent with its opinion. The Federal Circuit panel affirmed the Massachusetts District Court’s holding in the Company’s favor that the Company does not infringe under 35 U.S.C. 271(g), and the panel vacated the grant of summary judgment to the extent it was based on the determination that the Company’s activities fall within the 35 U.S.C. 271(e)(1) safe harbor. The Federal Circuit panel also left to the Massachusetts District Court’s discretion whether to reconsider on remand its denial of leave for Momenta and Sandoz to amend their infringement contentions. On January 11, 2016, the Company filed a Petition for Rehearing En Banc with the Federal Circuit. On February 17, 2016, the Federal Circuit denied the Company’s Petition, and the Federal Circuit issued its mandate on February 24, 2016, whereby the case returned to the Massachusetts District Court for further proceedings. On March 18, 2016, the parties filed a joint status report with the Massachusetts District Court. On June 21, 2016, the Massachusetts District Court granted Momenta and Sandoz’s Motion for Leave to Amend its Infringement Contentions. In light of Momenta and Sandoz’s Amended Infringement Contentions and recent changes in Supreme Court precedent since the case was stayed in 2012, the Company sought to amend its Non-Infringement and Invalidity Contentions. On July 18, 2016, the Company submitted its Motion for Leave to Amend Its Non-Infringement and Invalidity Contentions and Momenta and Sandoz responded on July 25, 2016. In light of the new arguments made in their response, the Company further filed a Motion For Leave to Reply in Further Support of Defendants’ Motion for Leave to Amend Non-Infringement and Invalidity Contentions, which was granted. A hearing was held on August 23, 2016, where the Magistrate Judge ordered the Company to file its proposed amended contentions, which it filed on August 31, 2016. On February 4, 2017, the Magistrate Judge issued an order denying the Company leave to amend its contentions. The Company filed objections to this order with the District Court on February 21, 2017. On April 13, 2017, the District Court rejected the determination of the Magistrate Judge with respect to the Company’s amended non-infringement contentions, and allowed the Company to amend its non-infringement contentions. With respect to the Company’s amended invalidity contentions, the District Court accepted the Magistrate Judge’s determination; however, the District Court specifically stated that the Company can argue changes in law at the summary judgment stage or at trial. In parallel with the Massachusetts District Court proceedings, the Company appealed the Federal Circuit’s decision to vacate the grant of the Company’s summary judgment to the extent it was based on the determination that the Company’s activities are protected under the Safe Harbor. The Company filed a Petition for a Writ of Certiorari with the Supreme Court on May 17, 2016. Momenta and Sandoz initially waived their right to respond to the petition; however, on May 31, 2016, the Supreme Court requested a response from Momenta and Sandoz. The response from Momenta and Sandoz was initially due on June 30, 2016, but they requested an extension. Momenta and Sandoz filed their response on August 1, 2016. On October 3, 2016, the Supreme Court declined the Petition for a Writ of Certiorari. Fact discovery in the Massachusetts District Court proceedings closed on November 22, 2016, and the parties proceeded with expert discovery and exchanged opening and rebuttal expert reports. Expert discovery closed on March 24, 2017. On April 14, 2017, Plaintiffs filed a Motion for Summary Judgment seeking to dismiss the Company’s equitable defenses. On April 14, 2017, the Company filed Defendants’ Motion for Summary Judgment of Invalidity and Noninfringement. In the Motion, the Company moved for the District Court to grant summary judgment in favor of the Company on the following issues: (1) the ’886 patent is invalid under 35 U.S.C. § 101 as claiming non-patentable subject matter; (2) the ’886 patent is invalid under 35 U.S.C. § 112 because the claims are indefinite; and (3) the Company’s tests do not infringe the claims of the ’886 patent. Oppositions to the motions for summary judgment were filed on May 5, 2017. Replies in support of the motions for summary judgment were filed on May 19, 2017. On June 16, 2017, the District Court issued an order denying the summary judgment motions. The District Court also denied Plaintiffs’ motion for summary judgment dismissing the Company’s defenses of implied waiver and equitable estoppel, and denied Plaintiffs’ alternative request for a separate hearing on the implied waiver and equitable estoppel defenses holding that the defenses would be submitted to the jury for an advisory verdict. Trial in the Massachusetts District Court on all claims and defenses began on July 10, 2017. On July 21, 2017, the jury returned a unanimous verdict finding that although the Company’s tests infringed the asserted patent, the patent was invalid for lack of enablement and lack of written description and the jury further found that Plaintiffs are entitled to zero ($0) damages. As for the Company’s defenses of implied waiver and equitable estoppel, the jury found that Plaintiffs waived their right to recover for infringement of the asserted patent and that Plaintiffs are estopped from enforcing the asserted patent against the Company. The verdict on these equitable defenses will be briefed by the parties and submitted to the court, which will render a final judgment on the matter. The Company will continue to vigorously defend the jury’s verdict, including against any potential appeal by the Plaintiffs . The Company intends to attempt to collect the $100.1 million bond posted by Momenta and Sandoz following a final judgement by the Massachusetts District Court. 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, or the California District Court, 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 California District Court unsealed the Company’s complaint. 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 California 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 California 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, or the Ninth Circuit, a petition for permission to appeal the California 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 Ninth Circuit granted Aventis’ petition. The parties filed their respective appeal briefs with the Ninth Circuit. On November 10, 2016, the Ninth Circuit heard oral argument on the appeal. The California 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. On July 13, 2015, the California District Court issued a ruling concluding that the Company is not an original source under the False Claims Act, and entered final judgment dismissing the case for lack of subject matter jurisdiction. On July 20, 2015, the Company filed with the Ninth Circuit a notice of appeal of the California District Court’s dismissal of the case, and Aventis filed a notice of cross-appeal on August 5, 2015. On November 12, 2015, Aventis filed a pleading asking that the California District Court impose various monetary penalties and fines against the Company, including disgorgement of enoxaparin revenues and attorneys’ fees expended by Aventis in this action, based on Aventis’s allegations that the Company engaged in sanctionable conduct. On November 23, 2015, the California District Court issued an order setting forth a procedure for sanctions proceedings as to the Company as well as its outside counsel. On December 24, 2015, the Company filed a pleading with the California District Court opposing the imposition of sanctions, and on January 20, 2016, Aventis filed a response pleading further pressing for the imposition of sanctions. On May 4, 2016, the California District Court issued three orders requesting that the Company and its outside counsel file a document showing cause as to why sanctions should not be imposed and to set up a conference call with the partiers and the court to discuss whether any discovery and/or a hearing is necessary. On June 13, 2016, the Company and its outside counsel each filed responses to the court’s order to show cause as to why sanctions should not be imposed. On July 21, 2016, Aventis filed a response contending that the court should impose sanctions. On February 10, 2017, the Court held a show cause hearing regarding the potential imposition of sanctions and took the matter under submission. The Company intends to continue to vigorously defend against any such imposition of sanctions. On March 28, 2016, the Company filed its opening brief with the Ninth Circuit Court of Appeals setting forth detailed arguments as to why the False Claims Act litigation should not have been dismissed by the California District Court. On June 20, 2016, Aventis filed its principal brief in the appeal, responding to the Company’s arguments regarding dismissal of the False Claims Act litigation, and setting forth Aventis’s argument that it should be awarded attorneys’ fees and expenses. On September 19, 2016, the Company filed its reply brief to Aventis’s principal brief. On October 3, 2016, Aventis filed its reply brief in support of its cross-appeal of the District Court’s denial of attorneys’ fees. On November 10, 2016, the Ninth Circuit heard oral argument on the appeals. On May 11, 2017, the Ninth Circuit issued an opinion affirming the California District Court’s dismissal of the action for lack of subject matter jurisdiction; dismissing as moot Aventis’s appeal from the District Court’s denial of its motion for summary judgment on the issue of the adequacy of the Company’s notice letter to the government; reversing the District Court’s denial of Aventis’s motion for attorneys’ fees; and remanding the case to the District Court for resolution of the attorneys’ fees issue. On July 14, 2017, Aventis filed an application with the District Court for entitlement to attorneys’ fees and expenses. Momenta/Sandoz Antitrust Litigation On September 17, 2015, the Company initiated a lawsuit by filing a complaint in the California District Court against Momenta and Sandoz, or the Defendants. The Company’s complaint generally asserts that Defendants have engaged in certain types of illegal, monopolistic, and anticompetitive conduct giving rise to various causes of action against them. On December 9, 2015, Defendants filed a motion to dismiss and a motion to transfer the case to the District of Massachusetts. On January 4, 2016, the Company filed oppositions to both motions. On January 26, 2016, the California District Court granted Defendants’ motion to transfer and did not rule on Defendants’ motion to dismiss. Accordingly, the case was transferred to the District of Massachusetts. On February 9, 2016, the Company filed a writ of mandamus with the Ninth Circuit to attempt to appeal the California District Court’s granting of Defendants’ motion to transfer to the District of Massachusetts. The Ninth Circuit denied this petition on May 20, 2016, and as such the case will remain before the District of Massachusetts. On July 27, 2016, the Massachusetts District Court granted Defendants’ motion to dismiss based on antitrust immunity doctrine, without addressing the substantive merits of the claims. On August 25, 2016, the Company filed with the First Circuit Court of Appeals a notice of appeal of the Massachusetts District Court’s dismissal of the antitrust case. On April 6, 2017, the District Court held a status conference to address scheduling matters for the rest of the case. The Court set a briefing schedule for Defendants’ supplemental motion to dismiss and a full case schedule in the event that it denies Defendants’ supplemental motion to dismiss. On April 20, 2017, Defendants filed their supplemental motion to dismiss and the Company filed its opposition on May 4, 2017. No reply briefs are allowed. The Court promised to rule on the motion to dismiss by the end of May but did not do so. If the Court denies Defendants’ supplemental motion to dismiss, discovery will commence. Summary judgment arguments would be due on November 15, 2018; oppositions would be due on December 15, 2018; and replies would be due on January 15, 2019. Trial is currently scheduled for April 1, 2019. Other Litigation The Company is also subject to various other claims and lawsuits from time-to-time arising in the ordinary course of business. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the opinion of management, the ultimate resolution of any such matters is not expected to have a material adverse effect on its financial position, results of operations, or cash flows; however, the results of litigation and claims are inherently unpredictable and the Company’s view of these matters may change in the future. 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.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, and are prepared in accordance with the requirements of the SEC for interim reporting. Certain amounts in the prior quarter’s condensed consolidated statements of operations have been reclassified to conform to the current quarter presentation. All significant intercompany activity has been eliminated in the preparation of the condensed consolidated financial statements. Effective January 1, 2017, the Company prospectively adopted certain requirements of Auditing Standards Update, or ASU, No. 2016-09 to classify cash flows related to excess tax benefits in operating activities without adjusting prior periods. 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 Company’s subsidiaries include: (1) International Medication Systems, Limited, or IMS, (2) Armstrong Pharmaceuticals, Inc., or Armstrong, (3) Amphastar Nanjing Pharmaceuticals Inc., or ANP, (4) Nanjing Letop Fine Chemistry Co., Ltd., or Letop, (5) Amphastar France Pharmaceuticals, S.A.S., or AFP, (6) Amphastar UK Ltd., or AUK, and (7) International Medication Systems (UK) Limited, or IMS UK.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in accordance with 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, provision for chargebacks, liabilities for product returns, adjustment to cost 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, valuation allowances for deferred tax assets, and liabilities for uncertain income tax positions.
Foreign Currency	Foreign Currency The functional currency of the Company, its domestic subsidiaries, its Chinese subsidiary, ANP, and its U.K. subsidiary, AUK, is the U.S. dollar, or USD. 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 currency exchange gains and losses are reflected in the Company’s statements of operations. The Company’s French subsidiary, AFP, Chinese subsidiary, Letop, and U.K. subsidiary, IMS UK maintain their books of record in Euros, Chinese Yuan, and Great Britain Pounds, respectively, which are the local currencies and have been determined to be their respective functional currencies. These books are translated into USD using 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 accumulated comprehensive income (loss). The unrealized gains or losses of intercompany foreign currency transactions that are of a long-term investment nature are reported in other accumulated comprehensive income (loss). The unrealized gains and losses of intercompany foreign currency transactions that are of a long-term investment nature for the three and six months ended June 30, 2017 were a $2.2 million gain and a $2.7 million gain, respectively, and for the three and six months ended June 30, 2016 were a $0.6 million loss and a $0.3 million gain, respectively. Additionally, the Company does not undertake hedging transactions to cover its foreign currency exposure.
Comprehensive Income (Loss)	Comprehensive Income (loss) For the three and six months ended June 30, 2017 and 2016, the Company included its foreign currency translation as part of its comprehensive income (loss).
Financial Instruments	Financial Instruments The carrying amounts of cash and cash equivalents, short-term investments, restricted 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 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). The Company at times enters into fixed interest rate swap contracts to exchange the variable interest rates for fixed interest rates without the exchange of the underlying notional debt amounts. Such interest rate swap contracts are recorded at their fair values.
Deferred Income Taxes	Deferred Income Taxes The Company utilizes the liability method of accounting for income taxes, under which 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.
Business Combinations	Business Combinations If an acquired set of activities and assets is capable of being operated as a business consisting of inputs and processes from the viewpoint of a market participant, the asset acquired and liabilities assumed are a business. Business combinations are accounted for using the acquisition method of accounting, which 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 that the Company incurs to effect a business combination are expensed in the periods in which the costs are incurred. When the operations of the acquired businesses were not material to the Company’s condensed consolidated financial statements, no pro forma presentation is disclosed.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU, No. 2019-09 Revenue from Contracts with Customers , which creates a single source of revenue guidance for companies in all industries. Subsequently, the FASB issued multiple updates. 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. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required regarding customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). Based on ASU No. 2015-14 Deferral of the Effective Date , issued in August 2015, this guidance will be effective for the Company beginning in the first quarter of 2018, including interim periods within the year. The Company is in the process of evaluating the effect of the adoption on its condensed consolidated financial statements and is currently assessing its contracts with customers and sale of nonfinancial assets. The Company anticipates it will expand its consolidated financial statement disclosures in order to comply with the new guidance. The Company expects to select the modified retrospective transition method upon adoption. In February 2016, the FASB issued ASU No. 2016-02 Leases , that is aimed at making leasing activities more transparent and comparable, and which requires substantially all leases be recognized by lessees on their balance sheets as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. This guidance will become effective for the Company’s interim and annual reporting periods during the year ending December 31, 2019, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company is required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements for the reporting periods in which the guidance is adopted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09 Improvements to Employee Share-Based Payment Accounting , that is aimed at improving the employee share-based payment accounting. The standard update simplifies the accounting for employee share-based payments and involves several aspects of the accounting for share-based transactions, including the potential timing of expenses, the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The Company adopted this guidance effective January 1, 2017. In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses , that is aimed at providing financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit. The standard update changes the impairment model for financial assets measured at amortized cost, requiring presentation at the net amount expected to be collected. The measurement of expected credit losses requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Available-for-sale debt securities with unrealized losses will be recorded through an allowance for credit losses. The guidance is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2020. Early adoption is permitted for annual periods after 2019. The Company will be required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15 Classification of Certain Cash Receipts and Cash Payments , that is aimed at addressing certain issues regarding classifications of certain cash receipts and cash payments on the statement of cash flows where diversity in practice was identified. The guidance is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2018. Early adoption is permitted. The Company will be required to apply the guidance retrospectively in the first interim and each annual period in which the guidance is adopted. The Company does not believe that the adoption of this accounting guidance will have a material impact on the Company’s consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16 Intra-Entity Transfers of Assets Other Than Inventory , that requires an entity to recognize the income tax consequences of intra-entity transfer of an asset other than inventory when the transfer occurs. The guidance is effective for the Company's interim and annual reporting periods during the year ending December 31, 2018. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements, interim or annual, have not been issued. The amendments will be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows: Restricted Cash , which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The guidance is effective for the Company's interim and annual reporting periods during the year ending December 31, 2018. Early adoption is permitted, including adoption in an interim period. The amendments will be applied using a retrospective transition method to each period presented. The Company will be required to apply the guidance retrospectively when adopted. The Company does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-01 Clarifying the Definition of a Business , which provides guidance to assist entities with evaluating when a set of transferred assets and activities is a business. Under the updated guidance, a set is not a business if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar assets. If the threshold is not met, the update requires that, to be a business, the set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. The definition of outputs was also aligned with Accounting Standard Codification, or ASC, 606 by focusing on revenue-generating activities. The guidance is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2018, and prospectively applicable to any transactions occurring within the period of adoption. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04 Simplifying the Test for Goodwill Impairment , which eliminates the requirement to calculate the implied fair value of goodwill. An entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The FASB also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. The guidance is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2020, and applied on a prospective basis. Early adoption is permitted for interim and annual goodwill impairment testing dates after January 1, 2017. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. In May 2017, the FASB issued ASU No. 2017-09 Scope of Modification Accounting , that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The new guidance is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2018, and applied prospectively to awards modified on or after the adoption date. Early adoption is permitted. The Company does not believe that the adoption of this accounting guidance will have a material impact on its consolidated financial statements and related disclosures

Business Acquisitions (Tables)

Business Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2017
Business Acquisitions
Schedule of payments for business acquisition	U.S. Euros Dollars (in thousands) At Closing, April 2014 € 13,252 $ 18,352 December 2014 4,899 5,989 December 2015 3,186 3,483 December 2016 3,186 3,427 December 2017 500 571 € 25,023 $ 31,822

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2017
Revenue Recognition
Schedule of chargeback provision analysis	Six Months Ended June 30, 2017 2016 (in thousands) Beginning balance $ 37,820 $ 15,217 Provision related to sales made in the current period 84,085 69,549 Credits issued to third parties (114,124) (72,965) Ending balance $ 7,781 $ 11,801
Schedule of product return liability analysis	Six Months Ended June 30, 2017 2016 (in thousands) Beginning balance $ 3,143 $ 2,621 Provision for product returns 2,979 637 Credits issued to third parties (966) (715) Ending balance $ 5,156 $ 2,543

Income per Share (Tables)

Income per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Income per Share
Schedule of basic and diluted net income (loss) per share calculation	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands, except per share data) Basic and dilutive numerator: Net income $ 1,972 $ 6,895 $ 2,865 $ 9,384 Denominator: Weighted-average shares outstanding — basic 46,025 44,957 46,047 44,999 Net effect of dilutive securities: Incremental shares from equity awards 1,841 1,011 1,915 713 Weighted-average shares outstanding — diluted 47,866 45,968 47,962 45,712 Net income per share — basic $ 0.04 $ 0.15 $ 0.06 $ 0.21 Net income per share — diluted $ 0.04 $ 0.15 $ 0.06 $ 0.21

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting
Schedule of financial information by reporting segment	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Net revenues: Finished pharmaceutical products $ 63,765 $ 63,756 $ 119,699 $ 122,310 API 1,422 4,277 2,158 5,089 Total net revenues 65,187 68,033 121,857 127,399 Gross profit: Finished pharmaceutical products 28,866 30,598 53,176 56,422 API (2,119) 1,116 (3,601) 194 Total gross profit 26,747 31,714 49,575 56,616 Operating expenses 24,562 21,384 45,986 42,211 Income from operations 2,185 10,330 3,589 14,405 Non-operating income (expenses) 988 (578) 1,088 (837) Income before income taxes $ 3,173 $ 9,752 $ 4,677 $ 13,568
Schedule of net revenues in the finished pharmaceutical products segment	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Finished pharmaceutical products net revenues: Enoxaparin $ 8,288 $ 17,328 $ 18,698 $ 35,686 Naloxone 10,261 15,561 21,200 25,815 Epinephrine 10,648 5,226 20,222 9,618 Lidocaine 9,334 8,191 17,622 18,099 Phytonadione 10,003 8,761 17,890 14,887 Other finished pharmaceutical products 15,231 8,689 24,067 18,205 Total finished pharmaceutical products net revenues $ 63,765 $ 63,756 $ 119,699 $ 122,310
Schedule of net revenues and carrying values of long-lived assets by geographic region	Net Revenue Long-Lived Assets Three Months Ended Six Months Ended June 30, June 30, June 30, December 31, 2017 2016 2017 2016 2017 2016 (in thousands) United States $ 63,799 $ 67,550 $ 119,729 $ 126,089 $ 105,881 $ 104,110 China — — — — 36,651 35,085 France 1,388 483 2,128 1,310 19,097 13,659 United Kingdom — — — — 91 90 Total $ 65,187 $ 68,033 $ 121,857 $ 127,399 $ 161,720 $ 152,944

Customer and Supplier Concent29

Customer and Supplier Concentration (Tables)	6 Months Ended
	Jun. 30, 2017
Customer and Supplier Concentration
Schedule of accounts receivable and net revenues by major customer	% of Total Accounts % of Net Receivable Revenue Three Months Ended Six Months Ended June 30, December 31, June 30, June 30, 2017 2016 2017 2016 2017 2016 Actavis (1) — 1 % — 18 % — 20 % AmerisourceBergen 23 % 30 % 29 % 20 % 29 % 19 % Cardinal Health 25 % 28 % 26 % 20 % 25 % 20 % McKesson 29 % 19 % 27 % 19 % 27 % 20 % (1) The agreement with Actavis was terminated in December 2016.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Measurements
Schedule of financial assets and liabilities measured on a recurring basis	Quoted Prices in Active Markets Significant Other Significant Other for Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands) Cash equivalents $ 52,707 $ 52,707 $ — $ — Restricted short-term investments 4,155 4,155 — — Fair value measurement as of June 30, 2017 $ 56,862 $ 56,862 $ — $ — Cash equivalents $ 36,082 $ 36,082 $ — $ — Restricted short-term investments 1,390 1,390 — — Fair value measurement as of December 31, 2016 $ 37,472 $ 37,472 $ — $ —

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets
Schedule of weighted-average life, original cost, accumulated amortization and net book value by major class	Weighted-Average Accumulated Life (Years) Original Cost Amortization Net Book Value (in thousands) Definite-lived intangible assets Cortrosyn® product rights 12 $ 27,134 $ 25,352 $ 1,782 IMS (UK) international product rights (1) 10 9,098 834 8,264 Patents 10 293 151 142 Land-use rights 39 2,540 387 2,153 Other intangible assets 4 69 37 32 Subtotal 12 39,134 26,761 12,373 Indefinite-lived intangible assets Trademark * 29,225 — 29,225 Goodwill - Finished pharmaceutical products * 4,271 — 4,271 Subtotal * 33,496 — 33,496 As of June 30, 2017 * $ 72,630 $ 26,761 $ 45,869 Weighted-Average Accumulated Life (Years) Original Cost Amortization Net Book Value (in thousands) Definite-lived intangible assets Cortrosyn® product rights 12 $ 27,134 $ 24,461 $ 2,673 IMS (UK) international product rights (1) 10 8,632 359 8,273 Acquired ANDAs (2) 15 4,000 222 3,778 Patents 10 293 137 156 Land-use rights 39 2,540 354 2,186 Other intangible assets 1 574 534 40 Subtotal 12 43,173 26,067 17,106 Indefinite-lived intangible assets Trademark * 29,225 — 29,225 Goodwill - Finished pharmaceutical products * 3,976 — 3,976 Subtotal * 33,201 — 33,201 As of December 31, 2016 * $ 76,374 $ 26,067 $ 50,307 * Intangible assets with indefinite lives have an indeterminable average life. (1) In August 2016, the Company acquired International Medication Systems (UK) Limited from UCB PHARMA GmbH for $7.7 million. The fair value of the marketing authorization was $9.2 million as of the acquisition date (see Note 3). (2) In February 2017, the Company sold the 14 ANDAs it had acquired from Hikma to an unrelated party for $6.4 million.
Schedule of changes in carrying amounts of goodwill	June 30, December 31, 2017 2016 (in thousands) Beginning balance $ 3,976 $ 3,726 Goodwill related to acquisition of business — 391 Currency translation and other adjustments 295 (141) Ending balance $ 4,271 $ 3,976

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventories
Schedule of inventories	June 30, December 31, 2017 2016 (in thousands) Raw materials and supplies $ 24,914 $ 36,209 Work in process 26,516 22,266 Finished goods 23,027 21,279 Total inventories $ 74,457 $ 79,754

Property, Plant, and Equipment

Property, Plant, and Equipment (Tables)	6 Months Ended
	Jun. 30, 2017
Property, Plant, and Equipment
Schedule of property, plant, and equipment	June 30, December 31, 2017 2016 (in thousands) Buildings $ 86,960 $ 85,283 Leasehold improvements 29,275 24,619 Land 7,050 6,857 Machinery and equipment 115,540 111,041 Furniture, fixtures, and automobiles 15,577 15,113 Construction in progress 34,785 32,044 Total property, plant, and equipment 289,187 274,957 Less accumulated depreciation (127,467) (122,013) Total property, plant, and equipment, net $ 161,720 $ 152,944

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt
Schedule of debt	June 30, December 31, 2017 2016 (in thousands) Loans with East West Bank Equipment loan paid off April 2017 $ — $ 433 Line of credit facility due December 2018 — — Equipment loan due January 2019 2,438 3,208 Mortgage payable due February 2021 3,619 3,660 Equipment loan due June 2021 4,898 2,882 Equipment line of credit due December 2022 — — Mortgage payable due October 2026 3,553 3,582 Mortgage payable due June 2027 9,000 — Loans with Cathay Bank Line of credit facility due May 2018 — — Acquisition loan due April 2019 16,081 17,079 Mortgage payable due April 2021 4,318 4,367 Loans with Seine-Normandie Water Agency French government loan 1 due March 2018 16 French government loan 2 due June 2020 79 French government loan 3 due July 2021 289 Payment Obligation to Merck 561 506 Equipment under Capital Leases 1,460 1,614 Total debt and capital leases 46,312 37,722 Less current portion of long-term debt and capital leases 6,205 5,366 Long-term debt and capital leases, net of current portion $ 40,107 $ 32,356

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2017
Income Taxes
Summary of provision (benefit) for income taxes	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Income before taxes $ 3,173 $ 9,752 $ 4,677 $ 13,568 Income tax expense 1,201 2,857 1,812 4,184 Net income $ 1,972 $ 6,895 $ 2,865 $ 9,384 Income tax provision as a percentage of income before income taxes 37.9 % 29.3 % 38.7 % 30.8 %

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity
Summary of changes in stockholders' equity	Six Months Ended June 30, 2017 (in thousands) Stockholders’ equity as of December 31, 2016 $ 329,255 Beginning balance adjustment to retained earnings as a result of the adoption of ASU 2016-09 872 Adjusted stockholders’ equity as of January 1, 2017 330,127 Net income 2,865 Accumulated other comprehensive income 1,476 Settlement of share-based compensation 7,278 Share-based compensation expense 8,749 Treasury stock repurchase (17,181) Stockholders’ equity as of June 30, 2017 $ 333,314
Schedule of key assumptions to determine fair value of options	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Average volatility 40.2 % 33.0 % 37.0 % 30.4 % Risk-free interest rate 1.5 % 0.9 % 2.1 % 1.5 % Weighted-average expected life in years 3.0 3.0 5.4 5.5 Dividend yield rate — % — % — % — %
Schedule of the summary of option activity under all plans	Weighted-Average Weighted-Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term (Years) Value (1) (in thousands) Outstanding as of December 31, 2016 12,530,297 $ 14.57 Options granted 1,765,813 14.19 Options exercised (752,420) 11.61 Options cancelled (38,206) 13.59 Options expired (109,675) 25.43 Outstanding as of June 30, 2017 13,395,809 $ 14.60 4.62 $ 55,447 Exercisable as of June 30, 2017 8,873,906 $ 15.17 3.15 $ 35,742 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 June 30, 2017.
Schedule of information relating to options grants	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands, except per share data) Weighted-average grant date fair value $ 5.01 $ 3.88 $ 4.92 $ 3.40 Intrinsic value of options exercised 3,037 967 3,062 982 Cash received 8,643 3,149 8,739 3,253 Total fair value of the options vested during the year 1,424 2,000 6,205 5,260
Schedule of the summary of nonvested options status	Weighted-Average Grant Date Options Fair Value Non-vested as of December 31, 2016 4,592,187 $ 3.61 Options granted 1,765,813 4.92 Options vested (1,797,891) 3.45 Options forfeited (38,206) 4.85 Non-vested as of June 30, 2017 4,521,903 4.17
Schedule of information relating to RSU grants and deliveries	Total Fair Market Value of RSUs Issued Total RSUs as Issued Compensation (1) (in thousands) RSUs outstanding at December 31, 2016 1,215,786 RSUs granted 630,799 $ 8,578 RSUs forfeited (11,110) RSUs vested (2) (467,164) RSUs outstanding at June 30, 2017 1,368,311 (1) The total fair market value is derived from the number of RSUs granted times the current stock price on the date of grant. (2) Of the vested RSUs 178,312 shares of common stock were surrendered to fulfil tax withholding obligations.
Schedule of recorded share-based compensation expense under all plans	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Cost of revenues $ 897 $ 771 $ 2,028 $ 1,570 Operating expenses: Selling, distribution, and marketing 65 65 149 131 General and administrative 2,985 3,100 5,768 5,746 Research and development 351 262 804 602 Total share-based compensation $ 4,298 $ 4,198 $ 8,749 $ 8,049

Summary of Significant Accoun37

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Summary of Significant Accounting Policies
Gains and losses of intercompany foreign currency transactions	$ 2.2	$ (0.6)	$ 2.7	$ 0.3

Business Acquisition (Narrative

Business Acquisition (Narrative) (Details) $ in Thousands, € in Millions	Apr. 30, 2014USD ($)	Apr. 30, 2014EUR (€)	Aug. 31, 2016USD ($)item	Mar. 31, 2016USD ($)item	Jan. 31, 2016USD ($)	Jun. 30, 2017	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Business Acquisition
Payment to Acquire Business, Gross							$ 4,761
Useful life of intangibles						12 years		12 years
Goodwill related to acquisition of business								$ 391
International Medication Systems (UK) Limited
Business Acquisition
Marketing authorizations acquired			$ 9,200
Manufacturing equipment acquired			100
Deferred tax liability assumed			$ 1,600
Number of Marketing Authorizations Acquired | item			33
Number of Different Injectable Chemical Entities | item			11
Payment to Acquire Business, Gross			$ 7,700
Useful life of intangibles			10 years
Hikma Pharmaceuticals PLC
Business Acquisition
Number of Injectable Products Acquired | item				14
Number of Different Injectable Chemical Entities | item				11
Payment to Acquire Business, Gross				$ 4,000
Useful life of intangibles				15 years
Assets acquired				$ 4,000
Merck Sharpe & Dohme's API
Business Acquisition
Purchase price	$ 34,400	€ 24.8
Number Of Years Required To Transfer Starting Material						2 years
Letop
Business Acquisition
Purchase price					$ 1,700
Payment to Acquire Business, Gross					800
Deposit that ANP previously paid which was effectively eliminated upon the consummation of the transaction					900
Assets acquired					1,400
Liabilities assumed					$ 100

Business Acquisition (Acquisiti

Business Acquisition (Acquisition of Merck's API Manufacturing Business) (Details) - Merck Sharpe & Dohme's API € in Thousands, $ in Thousands	Apr. 30, 2014USD ($)	Apr. 30, 2014EUR (€)	Apr. 30, 2014USD ($)	Apr. 30, 2014EUR (€)
Business Acquisition
Purchase price	$ 34,400	€ 24,800
At Closing, April 2014			$ 18,352	€ 13,252
December 2,014			5,989	4,899
December 2,015			3,483	3,186
December 2,016			3,427	3,186
December 2,017			571	500
Total - estimated			$ 31,822	€ 25,023

Revenue Recognition (Analysis o

Revenue Recognition (Analysis of the Chargeback Provision) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Revenue Recognition
Beginning balance	$ 37,820	$ 15,217
Provision related to sales made in the current period	84,085	69,549
Credits issued to third parties	(114,124)	(72,965)
Ending balance	$ 7,781	$ 11,801

Revenue Recognition (Analysis41

Revenue Recognition (Analysis of Product Return Liability) (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Revenue Recognition
Beginning balance	$ 3,143	$ 2,621	$ 2,621
Provision for product returns	2,979	637
Credits issued to third parties	(966)	(715)
Ending balance	5,156	$ 2,543	3,143
Sales not recognized in revenues due to insufficient information available to estimate a reasonable product return accrual	$ 900		$ 500
Aggregate product return rate	1.20%	1.10%

Income per Share (Narrative) (D

Income per Share (Narrative) (Details) - Stock Options - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Shares	3,170,200	6,827,011	3,170,200	6,827,011
Antidilutive Securities Excluded from Computation of Earnings Per Share, Exercise Price of Excluded Securities	$ 20.52	$ 18.16	$ 20.52	$ 18.16

Income per Share (Calculation o

Income per Share (Calculation of Basic and Diluted Net Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Basic and dilutive numerator:
Net income (loss)	$ 1,972	$ 6,895	$ 2,865	$ 9,384
Denominator:
Shares outstanding	46,025	44,957	46,047	44,999
Weighted-average shares outstanding—basic	46,025	44,957	46,047	44,999
Net effect of dilutive securities:
Incremental shares from equity awards	1,841	1,011	1,915	713
Weighted-average shares outstanding — diluted	47,866	45,968	47,962	45,712
Net income (loss) per share — basic	$ 0.04	$ 0.15	$ 0.06	$ 0.21
Net income (loss) per share — diluted	$ 0.04	$ 0.15	$ 0.06	$ 0.21

Segment Reporting (Selected Fin

Segment Reporting (Selected Financial Information by Reporting Segment) (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)segment	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments | segment			2
Net revenues:
Net Revenue	$ 65,187	$ 68,033	$ 121,857	$ 127,399
Gross Profit:
Gross Profit	26,747	31,714	49,575	56,616
Operating expenses	24,562	21,384	45,986	42,211
Income from operations	2,185	10,330	3,589	14,405
Non-operating income (expenses)	988	(578)	1,088	(837)
Income before income taxes	3,173	9,752	4,677	13,568
Finished Pharmaceutical Products
Net revenues:
Net Revenue	63,765	63,756	119,699	122,310
Gross Profit:
Gross Profit	28,866	30,598	53,176	56,422
Epinephrine
Segment Reporting Information [Line Items]
Net revenues recognized					$ 18,600
Cost of revenues					$ 3,300
API
Net revenues:
Net Revenue	1,422	4,277	2,158	5,089
Gross Profit:
Gross Profit	$ (2,119)	$ 1,116	$ (3,601)	$ 194

Segment Reporting (Summary of N

Segment Reporting (Summary of Net Revenues by Product Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Net Revenue	$ 65,187	$ 68,033	$ 121,857	$ 127,399
Finished Pharmaceutical Products
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Net Revenue	63,765	63,756	119,699	122,310
Finished Pharmaceutical Products | Enoxaparin
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Net Revenue	8,288	17,328	18,698	35,686
Finished Pharmaceutical Products | Naloxone
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Net Revenue	10,261	15,561	21,200	25,815
Finished Pharmaceutical Products | Lidocaine
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Net Revenue	9,334	8,191	17,622	18,099
Finished Pharmaceutical Products | Phytonadione
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Net Revenue	10,003	8,761	17,890	14,887
Finished Pharmaceutical Products | Epinephrine
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Net Revenue	10,648	5,226	20,222	9,618
Finished Pharmaceutical Products | Other Finished Pharmaceutical Products
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Net Revenue	$ 15,231	$ 8,689	$ 24,067	$ 18,205

Segment Reporting (Summary of R

Segment Reporting (Summary of Revenues and Long-Lived Assets by Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue	$ 65,187	$ 68,033	$ 121,857	$ 127,399
Long-Lived Assets	161,720		161,720		$ 152,944
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue	63,799	67,550	119,729	126,089
Long-Lived Assets	105,881		105,881		104,110
CHINA
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	36,651		36,651		35,085
FRANCE
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue	1,388	$ 483	2,128	$ 1,310
Long-Lived Assets	19,097		19,097		13,659
UNITED KINGDOM
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 91		$ 91		$ 90

Customer and Supplier Concent47

Customer and Supplier Concentration (Details) - Customer Concentration Risk [Member] - item	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Revenue, Major Customer [Line Items]
Number of major customers that are wholesale distributors			3
Accounts Receivable, Net
Revenue, Major Customer [Line Items]
Number of major customers			4		4
Net Revenues
Revenue, Major Customer [Line Items]
Number of major customers	4	4	4	4
Actavis, Inc. | Accounts Receivable, Net
Revenue, Major Customer [Line Items]
Major Customers					1.00%
Actavis, Inc. | Net Revenues
Revenue, Major Customer [Line Items]
Major Customers		18.00%		20.00%
AmerisourceBergen | Accounts Receivable, Net
Revenue, Major Customer [Line Items]
Major Customers			23.00%		30.00%
AmerisourceBergen | Net Revenues
Revenue, Major Customer [Line Items]
Major Customers	29.00%	20.00%	29.00%	19.00%
Cardinal Health | Accounts Receivable, Net
Revenue, Major Customer [Line Items]
Major Customers			25.00%		28.00%
Cardinal Health | Net Revenues
Revenue, Major Customer [Line Items]
Major Customers	26.00%	20.00%	25.00%	20.00%
McKesson | Accounts Receivable, Net
Revenue, Major Customer [Line Items]
Major Customers			29.00%		19.00%
McKesson | Net Revenues
Revenue, Major Customer [Line Items]
Major Customers	27.00%	19.00%	27.00%	20.00%

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Values of the Company's Financial Assets and Liabilities) (Details) - Recurring Basis - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Restricted short-term investments:
Fair value measurement	$ 56,862	$ 37,472
Money market accounts
Cash equivalents:
Cash equivalents	52,707	36,082
Certificates of deposit
Restricted short-term investments:
Restricted short-term investments	4,155	1,390
Level 1
Restricted short-term investments:
Fair value measurement	56,862	37,472
Level 1 | Money market accounts
Cash equivalents:
Cash equivalents	52,707	36,082
Level 1 | Certificates of deposit
Restricted short-term investments:
Restricted short-term investments	$ 4,155	$ 1,390

Goodwill and Intangible Asset49

Goodwill and Intangible Assets (Summary of Intangible Assets) (Details) $ in Thousands	1 Months Ended				3 Months Ended	6 Months Ended		12 Months Ended
	Feb. 28, 2017USD ($)item	Aug. 31, 2016USD ($)item	Mar. 31, 2016USD ($)item	Jan. 31, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Definite-lived intangible assets
Weighted-Average Life (Years)						12 years		12 years
Finite-Lived Intangible Assets, Gross					$ 39,134	$ 39,134		$ 43,173
Accumulated Amortization					26,761	26,761		26,067
Finite-Lived Intangible Assets, Net					12,373	12,373		17,106
Indefinite-lived intangible assets
Goodwill recognized					4,271	4,271		3,976	$ 3,726
Subtotal, Original Cost					33,496	33,496		33,201
Subtotal, Net Book Value					33,496	33,496		33,201
Balance, Original Cost					72,630	72,630		76,374
Balance, Net Book Value					45,869	45,869		50,307
Payment to Acquire Business, Gross							$ 4,761
Proceeds received from sale of ANDAs						2,000
Hikma Pharmaceuticals PLC
Indefinite-lived intangible assets
Number of Injectable Products Sold | item	14
Sale price of intangible assets	$ 6,400
Proceeds received from sale of ANDAs	1,000				1,000
Remaining Amount to be Paid Upon Completion of Certain Milestones	$ 4,400
Number of Days Upon Which Remainder of Payment is Due after Milestone Date	30 days
Royalty Fee Percentage	2.00%
Indemnification Liability Payable	$ 600
Gain recognized within operating (income) expenses						2,600
Finished Pharmaceutical Products
Indefinite-lived intangible assets
Goodwill recognized					4,271	4,271		3,976
Trademarks
Indefinite-lived intangible assets
Indefinite-lived intangible assets					29,225	$ 29,225		$ 29,225
Product rights
Definite-lived intangible assets
Weighted-Average Life (Years)						12 years		12 years
Finite-Lived Intangible Assets, Gross					27,134	$ 27,134		$ 27,134
Accumulated Amortization					25,352	25,352		24,461
Finite-Lived Intangible Assets, Net					1,782	$ 1,782		$ 2,673
Acquired international product rights
Definite-lived intangible assets
Weighted-Average Life (Years)						10 years
Finite-Lived Intangible Assets, Gross					9,098	$ 9,098
Accumulated Amortization					834	834
Finite-Lived Intangible Assets, Net					8,264	$ 8,264
Patents
Definite-lived intangible assets
Weighted-Average Life (Years)						10 years		10 years
Finite-Lived Intangible Assets, Gross					293	$ 293		$ 293
Accumulated Amortization					151	151		137
Finite-Lived Intangible Assets, Net					142	$ 142		$ 156
Land-use rights
Definite-lived intangible assets
Weighted-Average Life (Years)						39 years		39 years
Finite-Lived Intangible Assets, Gross					2,540	$ 2,540		$ 2,540
Accumulated Amortization					387	387		354
Finite-Lived Intangible Assets, Net					2,153	$ 2,153		$ 2,186
Other intangible assets
Definite-lived intangible assets
Weighted-Average Life (Years)						4 years		1 year
Finite-Lived Intangible Assets, Gross					69	$ 69		$ 574
Accumulated Amortization					37	37		534
Finite-Lived Intangible Assets, Net					$ 32	$ 32		$ 40
International Medication Systems (UK) Limited
Definite-lived intangible assets
Weighted-Average Life (Years)		10 years
Indefinite-lived intangible assets
Payment to Acquire Business, Gross		$ 7,700
Marketing authorizations acquired		$ 9,200
Number of Different Injectable Chemical Entities | item		11
International Medication Systems (UK) Limited | Acquired international product rights
Definite-lived intangible assets
Weighted-Average Life (Years)								10 years
Finite-Lived Intangible Assets, Gross								$ 8,632
Accumulated Amortization								359
Finite-Lived Intangible Assets, Net								$ 8,273
Hikma Pharmaceuticals PLC
Definite-lived intangible assets
Weighted-Average Life (Years)			15 years
Indefinite-lived intangible assets
Payment to Acquire Business, Gross			$ 4,000
Number of Injectable Products Acquired | item			14
Number of Different Injectable Chemical Entities | item			11
Hikma Pharmaceuticals PLC | Acquired ANDAs
Definite-lived intangible assets
Weighted-Average Life (Years)								15 years
Finite-Lived Intangible Assets, Gross								$ 4,000
Accumulated Amortization								222
Finite-Lived Intangible Assets, Net								$ 3,778
Letop
Indefinite-lived intangible assets
Payment to Acquire Business, Gross				$ 800

Goodwill and Intangible Asset50

Goodwill and Intangible Assets (Summary of Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets
Beginning balance	$ 3,976	$ 3,726
Goodwill related to acquisition of business		391
Currency translation and other adjustments	295	(141)
Ending balance	$ 4,271	$ 3,976

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Raw materials and supplies	$ 24,914	$ 24,914	$ 36,209
Work in process	26,516	26,516	22,266
Finished goods	23,027	23,027	21,279
Total inventory, net	74,457	74,457	$ 79,754
Inventory adjustment to reflect net realizable value	4,700	$ 5,100
Enoxaparin
Inventory adjustment to reflect net realizable value	$ 2,900

Property, Plant, and Equipmen52

Property, Plant, and Equipment (Summary of Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total property, plant, and equipment	$ 289,187	$ 274,957
Less accumulated depreciation and amortization	(127,467)	(122,013)
Total property, plant, and equipment, net	161,720	152,944
Buildings
Property, Plant and Equipment [Line Items]
Total property, plant, and equipment	86,960	85,283
Leasehold improvement
Property, Plant and Equipment [Line Items]
Total property, plant, and equipment	29,275	24,619
Land
Property, Plant and Equipment [Line Items]
Total property, plant, and equipment	7,050	6,857
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property, plant, and equipment	115,540	111,041
Furniture, fixtures, and automobiles
Property, Plant and Equipment [Line Items]
Total property, plant, and equipment	15,577	15,113
Construction in progress
Property, Plant and Equipment [Line Items]
Total property, plant, and equipment	34,785	32,044
Equipment | Primatene Mist
Property, Plant and Equipment [Line Items]
Total property, plant, and equipment	$ 2,400	$ 2,600

Debt (Schedule of Debt) (Detail

Debt (Schedule of Debt) (Details) $ in Thousands, € in Millions	Jun. 30, 2017USD ($)	Jun. 30, 2017EUR (€)	Dec. 31, 2016USD ($)
Debt Instrument
Equipment under Capital Leases	$ 1,460		$ 1,614
Total debt and capital leases	46,312		37,722
Less current portion of long-term debt and capital leases	6,205		5,366
Long-term debt and capital leases, net of current portion	40,107		32,356
Equipment Loan - Due April 2017 | East West Bank
Debt Instrument
Long Term Debt			433
Equipment Loan - Due January 2019 | East West Bank
Debt Instrument
Long Term Debt	2,438		3,208
Mortgage Payable - Due February 2021 | East West Bank
Debt Instrument
Long Term Debt	3,619		3,660
Equipment Loan - Due June 2021 | East West Bank
Debt Instrument
Long Term Debt	4,898		2,882
Mortgage Payable - Due October 2026 | East West Bank
Debt Instrument
Long Term Debt	3,553		3,582
Mortgage Payable - Due June 2027 | East West Bank
Debt Instrument
Long Term Debt	9,000
Acquisition Loan - Due April 2019 | Cathay Bank
Debt Instrument
Long Term Debt	16,081		17,079
Mortgage Payable - Due April 2021 | Cathay Bank
Debt Instrument
Long Term Debt	4,318		4,367
French Government Loan - Due March 2018 | Seine-Normandie Water Agency
Debt Instrument
Long Term Debt	16		30
French Government Loan - Due June 2020 | Seine-Normandie Water Agency
Debt Instrument
Long Term Debt	79		99
French Government Loan - Due July 2021 | Seine-Normandie Water Agency
Debt Instrument
Long Term Debt	289		262
Note Payable To Merck
Debt Instrument
Long Term Debt	$ 561	€ 0.5	$ 506

Debt (Narrative) (Details)

Debt (Narrative) (Details) € in Millions

Jun. 28, 2017USD ($)

May 18, 2017USD ($)building

May 11, 2017USD ($)

Jan. 05, 2015USD ($)

Jun. 01, 2014

Apr. 22, 2014USD ($)

Sep. 30, 2016USD ($)building

Jan. 31, 2015USD ($)item

Apr. 30, 2014USD ($)

Mar. 31, 2013

Jun. 30, 2017USD ($)

Jun. 30, 2016USD ($)

Jun. 30, 2017EUR (€)

Dec. 31, 2016USD ($)

Mar. 31, 2016USD ($)

Jan. 31, 2016USD ($)building

Jan. 31, 2015EUR (€)item

Apr. 30, 2014EUR (€)

Apr. 09, 2014USD ($)

Jul. 05, 2013USD ($)

Mar. 15, 2013USD ($)

Apr. 10, 2012USD ($)

Mar. 31, 2012USD ($)

Mar. 05, 2012USD ($)

Sep. 15, 2006USD ($)

Debt

Long-term Debt and Capital Lease Obligations

$ 40,107,000

$ 32,356,000

Payment to Acquire Business, Gross

$ 4,761,000

Equipment Loan - Due April 2017 | East West Bank

Debt

Principal amount

$ 4,900,000

Line of Credit Facility, Maximum Borrowing Capacity

$ 8,000,000

Long Term Debt

433,000

Equipment Loan - Due April 2017 | East West Bank | Prime Rate

Debt

Debt Instrument, Basis Spread on Variable Rate

0.25%

Line of Credit Facility - Due December 2018 | East West Bank

Debt

Line of Credit Facility, Maximum Borrowing Capacity

$ 15,000,000

$ 10,000,000

Line of Credit outstanding

0

Equipment Loan - Due January 2019 | East West Bank

Debt

Principal amount

$ 6,200,000

Debt Instrument, Interest Rate, Stated Percentage

4.48%

Line of Credit Facility, Maximum Borrowing Capacity

$ 8,000,000

Proceeds from borrowing under lines of credit

$ 6,200,000

Long Term Debt

2,438,000

3,208,000

Mortgage Payable - Due February 2021 | East West Bank

Debt

Principal amount

$ 3,700,000

Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid

$ 3,300,000

Debt Instrument, Interest Rate, Stated Percentage

4.39%

Long Term Debt

3,619,000

3,660,000

Mortgage Payable - Due February 2021 | East West Bank | Rancho Cucamonga, California

Debt

Number of Buildings Securing Loan | building

1

Equipment Loan - Due June 2021 | East West Bank

Debt

Line of Credit Converted into Equipment Loan, Amount

$ 5,000,000

Debt Instrument, Interest Rate, Stated Percentage

4.86%

Line of Credit Facility, Maximum Borrowing Capacity

$ 5,000,000

Long Term Debt

4,898,000

2,882,000

Equipment Line of Credit - Due December 2022 | East West Bank

Debt

Principal amount

$ 8,000,000

Line of Credit outstanding

0

Draw down period

18 months

Term of loan after draw down period expires

48 months

Mortgage Payable - Due October 2026 | East West Bank

Debt

Long Term Debt

3,553,000

3,582,000

Mortgage Payable - Due October 2026 | East West Bank | Rancho Cucamonga, California

Debt

Principal amount

$ 3,600,000

$ 2,800,000

Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid

$ 2,900,000

Number of Buildings Securing Loan | building

1

Debt Instrument, Interest Rate, Stated Percentage

4.15%

Mortgage Payable - Due October 2026 | East West Bank | LIBOR | Rancho Cucamonga, California

Debt

Debt Instrument, Basis Spread on Variable Rate

2.75%

Mortgage Payable - Due June 2027 | East West Bank

Debt

Principal amount

$ 9,000,000

Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid

$ 7,400,000

Debt Instrument, Interest Rate, Stated Percentage

4.79%

Interest rate swap, fair value

200,000

Long Term Debt

9,000,000

Mortgage Payable - Due June 2027 | East West Bank | Rancho Cucamonga, California

Debt

Number of Buildings Securing Loan | building

1

Mortgage Payable - Due June 2027 | East West Bank | Chino, California

Debt

Number of Buildings Securing Loan | building

2

Mortgage Payable - Due June 2027 | East West Bank | LIBOR

Debt

Debt Instrument, Basis Spread on Variable Rate

2.50%

Line of Credit Facility - Due May 2018 | Cathay Bank

Debt

Line of Credit Facility, Maximum Borrowing Capacity

$ 20,000,000

Line of Credit outstanding

$ 0

Acquisition Loan - Due April 2019 | Cathay Bank

Debt

Principal amount

$ 21,900,000

Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid

$ 12,000,000

Debt Instrument, Term

120 months

Debt Instrument Loan Collateral Percentage

65.00%

Debt Instrument Covenant Period To Discharge Final Judgment

30 days

Long Term Debt

$ 16,081,000

17,079,000

Mortgage Payable - Due April 2021 | Cathay Bank

Debt

Principal amount

$ 4,600,000

Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid

$ 3,900,000

Debt Instrument, Interest Rate, Stated Percentage

5.42%

Long Term Debt

4,318,000

4,367,000

French Government Loans | Seine-Normandie Water Agency

Debt

Principal amount

$ 700,000

€ 0.6

Number of Loans with Government Agency | item

3

3

Debt Instrument, Periodic Payment, Interest

$ 0

Notes Payable

400,000

€ 0.4

Note Payable To Merck

Debt

Principal amount

$ 16,000,000

€ 11.6

Debt Instrument, Term

4 years

Long Term Debt

561,000

€ 0.5

506,000

Equipment under Capital Leases

Debt

Capital Leased Assets, Gross

1,900,000

2,000,000

Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation

$ 400,000

$ 200,000

Minimum | Equipment Loan - Due April 2017 | East West Bank

Debt

Debt Instrument, Interest Rate, Stated Percentage

3.50%

Minimum | Line of Credit Facility - Due May 2018 | Cathay Bank | Prime Rate

Debt

Debt Instrument, Interest Rate, Stated Percentage

4.00%

Minimum | Acquisition Loan - Due April 2019 | Cathay Bank

Debt

Debt Instrument, Basis Spread on Variable Rate

4.00%

Minimum | Acquisition Loan - Due April 2019 | Cathay Bank | Prime Rate

Debt

Debt Instrument, Basis Spread on Variable Rate

4.00%

Minimum | French Government Loans | Seine-Normandie Water Agency

Debt

Debt Instrument, Term

3 years

Minimum | French Government Loans | Seine-Normandie Water Agency | Prime Rate

Debt

Debt Instrument, Interest Rate, Stated Percentage

4.00%

4.00%

Minimum | Note Payable To Merck

Debt

Debt Instrument, Interest Rate, Stated Percentage

3.00%

3.00%

Minimum | Note Payable To Merck | Prime Rate

Debt

Debt Instrument, Interest Rate, Stated Percentage

4.00%

4.00%

Maximum | French Government Loans | Seine-Normandie Water Agency

Debt

Debt Instrument, Term

6 years

Income Taxes (Summary of Income

Income Taxes (Summary of Income Tax Provision) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2017	Jan. 01, 2017
Income (loss) before income taxes:
Income before taxes	$ 3,173	$ 9,752	$ 4,677	$ 13,568
Income tax expense (benefit)	1,201	2,857	1,812	4,184
Net income (loss)	$ 1,972	$ 6,895	$ 2,865	$ 9,384
Income tax provision (benefit) as a percentage of income (loss) before income taxes	37.90%	29.30%	38.70%	30.80%
Beginning balance adjustment to retained earnings as a result of the adoption of ASU 2016-09						$ 872
Forecast
Income (loss) before income taxes:
Income tax provision (benefit) as a percentage of income (loss) before income taxes					40.10%

Income Taxes (Valuation Allowan

Income Taxes (Valuation Allowance - Narrative) (Details) $ in Millions	Dec. 31, 2015USD ($)
Income Taxes
Deferred Tax Assets, Valuation Allowance	$ 0.9

Stockholders' Equity (Summary o

Stockholders' Equity (Summary of the Changes in Stockholders' Equity) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jan. 01, 2017
Stockholders' Equity
Balance			$ 329,255
Beginning balance adjustment to retained earnings as a result of the adoption of ASU 2016-09					$ 872
Adjusted stockholders' equity as of January 1, 2017					$ 330,127
Net (loss) income	$ 1,972	$ 6,895	2,865	$ 9,384
Accumulated other comprehensive income			1,476
Settlement of share-based compensation			7,278
Share-based compensation expense			8,749
Treasury stock repurchase			(17,181)
Balance	$ 333,314		$ 333,314

Stockholders' Equity (2014 Empl

Stockholders' Equity (2014 Employee Stock Purchase Plan) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation		$ 4,298	$ 4,198	$ 8,749	$ 8,049
2014 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Stock Purchase Plan, 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)				320,623
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)		1,679,377		1,679,377
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)	2,000,000
Allocated share based compensation		$ 200	$ 200	$ 300	$ 300

Stockholders' Equity (Share Buy

Stockholders' Equity (Share Buyback Program) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Aug. 07, 2017	Nov. 07, 2016	Nov. 10, 2015	Nov. 06, 2014
Equity, Class of Treasury Stock [Line Items]
Treasury Stock, Value, Acquired, Cost Method			$ 17,181
November 2014 Share Repurchase Plan
Equity, Class of Treasury Stock [Line Items]
Stock buyback program, authorized amount						$ 20,000	$ 10,000	$ 10,000
Treasury Stock, Shares, Acquired (in Shares)	579,388	265,900	1,112,282	664,500
Treasury Stock, Value, Acquired, Cost Method	$ 9,000	$ 3,500	$ 17,200	$ 8,200
Subsequent Event | November 2014 Share Repurchase Plan
Equity, Class of Treasury Stock [Line Items]
Increase authorized for share buyback program					$ 20,000

Stockholders' Equity (The 2015

Stockholders' Equity (The 2015 Equity Incentive Plan) (Details) - The 2015 Equity Incentive Plan - shares	1 Months Ended	6 Months Ended
	Jan. 31, 2017	Jun. 30, 2017	Mar. 18, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)		5,300,296
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)		3,265,420	5,000,000
Equity Incentive Plan, Term		10 years
Share Based Compensation Arrangement By Share Based Payment Award Potential Number of Additional Shares Authorized (in Shares)		3,000,000
Share Based Compensation Arrangement by Share Based Payment Award Potential Annual Increase in Shares, Percentage		2.50%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	1,156,216

Stockholders' Equity (Key Assum

Stockholders' Equity (Key Assumptions Used in Determining Fair Value of Options Granted) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stockholders' Equity
Average volatility	40.20%	33.00%	37.00%	30.40%
Risk-free interest rate	1.50%	0.90%	2.10%	1.50%
Weighted-average expected life in years	3 years	3 years	5 years 4 months 24 days	5 years 6 months
Dividend yield rate	0.00%	0.00%	0.00%	0.00%

Stockholders' Equity (Summary62

Stockholders' Equity (Summary of Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Options
Outstanding Options, Beginning of period			12,530,297
Options granted			1,765,813
Options exercised			(752,420)
Options cancelled			(38,206)
Options expired			(109,675)
Outstanding Options, End of period	13,395,809		13,395,809
Exercisable at the end of period	8,873,906		8,873,906
Weighted-Average Exercise Price
Outstanding Exercise Price (in dollars per share)			$ 14.57
Options granted (in dollars per share)			14.19
Options exercised (in dollars per share)			11.61
Options cancelled (in dollars per share)			13.59
Options expired (in dollars per share)			25.43
Outstanding Exercise Price (in dollars per share)	$ 14.60		14.60
Exercisable at the end of period (in dollars per share)	$ 15.17		$ 15.17
Additional Disclosures
Outstanding Contractual Term (in Years)			4 years 7 months 13 days
Outstanding Intrinsic Value	$ 55,447		$ 55,447
Exercisable at the end of period (in Years)			3 years 1 month 24 days
Exercisable aggregate intrinsic value	35,742		$ 35,742
Allocated share based compensation	4,298	$ 4,198	8,749	$ 8,049
Employee Stock Option
Additional Disclosures
Allocated share based compensation	2,000	2,300	4,000	4,400
Employee Stock Option | Board of Directors
Additional Disclosures
Allocated share based compensation	$ 200	$ 200	$ 300	$ 400

Stockholders' Equity (Informati

Stockholders' Equity (Information Relating to Option Grants and Exercises) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stockholders' Equity
Weighted-average grant date fair value (in Dollars per share)	$ 5.01	$ 3.88	$ 4.92	$ 3.40
Intrinsic value of options exercised	$ 3,037	$ 967	$ 3,062	$ 982
Cash received	8,643	3,149	8,739	3,253
Total fair value of the options vested during the year	$ 1,424	$ 2,000	$ 6,205	$ 5,260

Stockholders' Equity (Summary64

Stockholders' Equity (Summary of Nonvested Options) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Options
Nonvested at beginning of period			4,592,187
Options granted			1,765,813
Options vested			(1,797,891)
Options forfeited			(38,206)
Nonvested at end of period	4,521,903		4,521,903
Weighted-Average Grant Date Fair Value
Nonvested at beginning of period (in dollars per share)			$ 3.61
Options granted (in dollars per share)	$ 5.01	$ 3.88	4.92	$ 3.40
Options vested (in dollars per share)			3.45
Options forfeited (in dollars per share)			4.85
Nonvested at end of period (in dollars per share)	$ 4.17		$ 4.17
Employee Consultant And Directors Stock Options
Weighted-Average Grant Date Fair Value
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 14.5		$ 14.5
Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 4 months 24 days

Stockholders' Equity (Restricte

Stockholders' Equity (Restricted Stock Units) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Contractual Term (in Years)			4 years 7 months 13 days
Allocated share based compensation	$ 4,298	$ 4,198	$ 8,749	$ 8,049
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			5 years
Allocated share based compensation	$ 1,700	1,400	$ 3,700	2,500
Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 6 months
Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Number of Shares of Common Stock Per Award (in Shares)	1		1
Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 15,400		$ 15,400
Board of Directors | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation	$ 200	$ 200	$ 300	$ 400

Stockholders' Equity (Informa66

Stockholders' Equity (Information Relating to RSU Grants and Deliveries) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)shares
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Total RSUs outstanding at the beginning of the period	1,215,786
RSUs granted	630,799
RSUs forfeited	(11,110)
RSUs vested(2)	(467,164)
Total RSUs outstanding at the end of the period	1,368,311
Stock surrendered to fulfill tax withholding obligations	178,312
Restricted Stock Units Issued as Compensation
Total Fair Market Value of RSUs Issued
RSUs granted (in Dollars) | $	$ 8,578

Stockholders' Equity (Equity Aw

Stockholders' Equity (Equity Awards to Consultants and Advisory Board Members) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation	$ 4,298	$ 4,198	$ 8,749	$ 8,049
Consultants and Advisory Board [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation	$ 100	$ 0	$ 100	$ 100

Stockholders' Equity (Share-Bas

Stockholders' Equity (Share-Based Compensation Expense Included in the Statement of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation	$ 4,298	$ 4,198	$ 8,749	$ 8,049
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation	897	771	2,028	1,570
Selling, distribution and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation	65	65	149	131
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation	2,985	3,100	5,768	5,746
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation	$ 351	$ 262	$ 804	$ 602

Employee Benefits (Details)

Employee Benefits (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Employee Benefits
Defined Contribution Plan, Employer Matching Contribution, Percent of Match			50.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay			6.00%
Defined Contribution Plan, Employer Contribution Vesting Period			4 years
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 0.2	$ 0.3	$ 0.5	$ 0.5
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	1.60%		1.60%		1.75%
Defined Benefit Plan, Benefit Obligation	$ 1.8		$ 1.8		$ 1.7
Pension Expense	$ 0	$ 0	$ 0.1	$ 0.1

Commitments and Contingencies (

Commitments and Contingencies (Supply Agreement with MannKind Corporation) (Details) - MannKind Corporation - Supply Commitment - Recombinant Human Insulin (RHI) € in Millions, $ in Millions	Jul. 31, 2014USD ($)	Nov. 30, 2016EUR (€)	Oct. 31, 2015USD ($)	Dec. 31, 2016USD ($)	Jun. 30, 2017EUR (€)	Dec. 31, 2015EUR (€)	Jul. 31, 2014EUR (€)
Supply Commitment [Line Items]
Supply commitment annual amount committed	$ 146				€ 23.3	€ 27.1	€ 120.1
Supply Commitment, Number of Years Committed	5 years
Deferred Revenue	$ 14						€ 11
Supply Commitment, Cancellation Fee | $			$ 0.8	$ 1.5
Sales | $				$ 6.8
Supply commitment in fourth quarter of 2017		€ 2.7
Supply commitment in 2018		8.9
Supply commitment in 2019		11.6
Supply commitment in 2020 and 2021		15.5
Supply commitment in 2022 and 2023		€ 19.4
Long-term Supply Commitment, Optional Renewal Period		2 years
Supply Agreement Renewal Notice Period		12 months

Commitments and Contingencies71

Commitments and Contingencies (Collaboration Agreement) (Details) - Development agreement - Drug delivery system item in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2017USD ($)item
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative Agreement, Upfront Payment	$ 0.5
Collaborative Agreement, Milestone Payments	1.5
Collaborative Agreement, Contingent Obligation	$ 0.5
Collaborative Agreement, Contingent Purchase Obligation First 12 Months, Units | item	1
Purchase period	12 months

Commitments and Contingencies72

Commitments and Contingencies (Operating Lease Agreements) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 0.9	$ 0.9	$ 1.7	$ 1.7
Minimum
Operating Leased Assets [Line Items]
Lessee Leasing Arrangements, Operating Leases, Renewal Term			1 year
Maximum
Operating Leased Assets [Line Items]
Lessee Leasing Arrangements, Operating Leases, Renewal Term			6 years

Commitments and Contingencies73

Commitments and Contingencies (Purchase Commitments) (Details) - USD ($) $ in Millions	1 Months Ended		6 Months Ended	12 Months Ended
	Nov. 30, 2012	Jan. 31, 2010	Jun. 30, 2017	Dec. 31, 2016
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Maximum Royalty Amount Owed, Contingent On Sales of Products			$ 1.5
Commitments to Purchase Equipment and Raw Materials
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Long-term Purchase Commitment, Amount			$ 51.3
Commitment to invest | ANP
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Commitments Amount Fulfilled				$ 61
Land-use rights | Commitment to invest
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Finite-lived Intangible Assets Acquired	$ 1.3	$ 1.2
Land-use rights | Commitment to develop land
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Contractual Obligation	$ 15

Litigation (Details)

Litigation (Details)	May 09, 2016USD ($)	May 04, 2016item	Oct. 31, 2011USD ($)	Sep. 30, 2011item	Jun. 30, 2017USD ($)
Enoxaparin Patent Litigation
Loss Contingencies [Line Items]
Fees and costs relating to a discovery motion	$ 400,000
False Claims Act Litigation
Loss Contingencies [Line Items]
Number of orders issued by district court | item		3
Pending Litigation [Member] | Enoxaparin Patent Litigation
Loss Contingencies [Line Items]
Number of Alleged Patent Infringements | item				2
Litigation, Plaintiff Preliminary Injunction Bond, Amount			$ 100,100,000
Settled Litigation [Member] | Enoxaparin Patent Litigation
Loss Contingencies [Line Items]
Litigation Settlement, Amount					$ 0