Amphastar Pharmaceuticals (AMPH) 10-Q 10 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 03, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Amphastar Pharmaceuticals, Inc.
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	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Common Stock, Shares Outstanding		44,845,680

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and Cash Equivalents, at Carrying Value	$ 63,332	$ 66,074
Restricted cash and restricted short-term investments	1,285	1,285
Accounts receivable, net	23,081	33,233
Inventories, net	82,242	70,665
Income tax refund and deposits	410	238
Prepaid expenses and other assets	3,092	4,439
Total current assets	173,442	175,934
Property, plant, and equipment, net	144,684	142,161
Goodwill and intangible assets, net	44,024	39,901
Other assets	5,412	4,696
Deferred tax assets	27,444	27,444
Total assets	395,006	390,136
Current Liabilities:
Accounts payable	18,619	13,872
Accrued liabilities	13,522	16,732
Income taxes payable	4,257	3,076
Accrued payroll and related benefits	15,428	12,840
Current portion of product return accrual	1,275	1,858
Current portion of deferred revenue	643	643
Current portion of long-term debt and capital leases	11,177	10,934
Total current liabilities	64,921	59,955
Long-term product return accrual	598	763
Long-term reserve for income tax liabilities	497	497
Long-term deferred revenue	1,179	1,339
Long-term debt and capital leases, net of current portion	29,092	30,165
Other long-term liabilities	2,134	1,907
Total liabilities	$ 98,421	$ 94,626
Stockholders’ equity:
Preferred stock: par value $.0001; authorized shares—20,000,000; no shares issued and outstanding
Common stock: par value $.0001; authorized shares—300,000,000; issued and outstanding shares—46,100,797 and 44,942,101 at March 31, 2016 and 45,960,206 and 45,198,491 at December 31, 2015, respectively	$ 5	$ 5
Additional paid-in capital	250,683	247,829
Retained earnings	62,812	60,323
Accumulated other comprehensive loss	(2,039)	(2,475)
Treasury stock	(14,876)	(10,172)
Total stockholders’ equity	296,585	295,510
Total liabilities and stockholders’ equity	$ 395,006	$ 390,136

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
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; authorized shares	300,000,000	300,000,000
Common stock; shares issued	46,100,797	45,960,206
Common stock; outstanding shares	44,942,101	45,198,491

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 59,366	$ 56,886
Cost of revenues	34,464	43,606
Gross profit	24,902	13,280
Operating expenses:
Selling, distribution, and marketing	1,352	1,522
General and administrative	10,870	12,451
Research and development	8,388	6,568
Impairment of long-lived assets	217
Total operating expenses	20,827	20,541
Income (loss) from operations	4,075	(7,261)
Non-operating income (expense):
Interest income	74	92
Interest expense	(384)	(341)
Other income (expense), net	51	1,313
Total non-operating income (expense), net	(259)	1,064
Income (loss) before income taxes	3,816	(6,197)
Income tax expense (benefit)	1,327	(5,532)
Net income (loss)	$ 2,489	$ (665)
Net income (loss) per share:
Basic (in Dollars per share)	$ 0.06	$ (0.01)
Diluted (in Dollars per share)	$ 0.05	$ (0.01)
Weighted-average shares used to compute net income (loss) per share:
Basic (in Shares)	45,041	44,601
Diluted (in Shares)	46,810	44,601

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 2,489	$ (665)
Accumulated other comprehensive income (loss)
Foreign currency translation adjustment	436	(2,993)
Total accumulated other comprehensive income (loss)	436	(2,993)
Total comprehensive income (loss)	$ 2,925	$ (3,658)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows From Operating Activities:
Net income (loss)	$ 2,489	$ (665)
Reconciliation to net cash provided by operating activities:
Impairment of long-lived assets	217
Loss on disposal of property, plant, and equipment	19	4
Depreciation of property, plant, and equipment	2,947	2,771
Amortization of product rights, trademarks, and patents	481	481
Imputed interest accretion	18	28
Employee share-based compensation expense	3,398	2,224
Non-employee share-based compensation expense	453	6
Reserve for income tax liabilities		547
Changes in deferred taxes		(4,111)
Changes in operating assets and liabilities:
Accounts receivable, net	10,198	621
Inventories, net	(10,774)	(4,486)
Income tax refund and deposits	(169)
Prepaid expenses and other assets	1,392	(2,311)
Income taxes payable	1,180	(131)
Accounts payable and accrued liabilities	2,081	6,360
Net cash provided by operating activities	13,930	1,338
Cash Flows From Investing Activities:
Acquisition of business	(4,761)
Purchases of property, plant, and equipment	(3,528)	(3,780)
Capitalized labor, overhead, and interest on self-constructed assets	(418)	(395)
Deposits and other assets, net	(713)	(870)
Net cash used in investing activities	(9,420)	(5,045)
Cash Flows From Financing Activities:
Repurchase of common stock	(1,083)	(572)
Net proceeds from equity plans	104	910
Payments on treasury stock	(4,722)	(1,489)
Proceeds from issuance of long-term debt	3,725	6,789
Principal payments on long-term debt	(5,057)	(1,193)
Net cash provided by (used in) financing activities	(7,033)	4,445
Effect of exchange rate changes on cash	(219)	22
Net increase (decrease) in cash and cash equivalents	(2,742)	760
Cash and cash equivalents at beginning of period	66,074	67,828
Cash and cash equivalents at end of period	63,332	68,588
Noncash Investing and Financing Activities:
Equipment acquired under capital leases	301	9
Supplemental Disclosures of Cash Flow Information:
Interest paid	517	$ 469
Income taxes paid	$ 367

General

General	3 Months Ended
	Mar. 31, 2016
General
General	1. Genera l 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, 201 5 and the notes thereto as filed with the Securities and Exchange Commission in the Company’s A nnual Report on Form 10-K for the year ended December 31, 2015. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles, or GAAP, have been condensed or omitted from the accompanying condensed consolidated financial statements. The accompanying year-end condensed consolidated balance sheet was derived from the audited financial statements. The accompanying interim financial statements are unaudited, but reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the Company’s consolidated financial position, results of operations, comprehensive loss and cash flows for the periods presented. Unless otherwise noted, all such adjustments are of a normal, recurring nature. The Company’s results of operations , comprehensive loss and cash flows for the interim periods are not necessarily indicative of the results of operations and cash flows that it may achieve in future periods.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation All significant intercompany activity has been eliminated in the preparation of the condensed consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Some information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles, or GAAP, have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations, and cash flows of the Company. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries: International Medication Systems, Limited, or IMS; Armstrong Pharmaceuticals, Inc., or Armstrong; Amphastar Nanjing Pharmaceuticals Co., Ltd., or ANP; and Amphastar France Pharmaceuticals, S.A.S., or AFP. Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The principal accounting estimates include: determination of allowances for doubtful accounts and discounts, provision for chargebacks, liabilities for product returns, reserves for excess or unsellable inventory, impairment of long-lived and intangible assets and goodwill, self-insured claims, workers’ compensation liabilities, litigation reserves, stock price volatilities for share-based compensation expense, fair market values of the Company’s common stock, valuation allowances for deferred tax assets, and liabilities for uncertain income tax positions. Foreign Currency The functional currency of the Company and its domestic and Chinese subsidiary, ANP 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 exchange gains and losses are reflected in the Company’s statement of operations. The Company’s French subsidiary, AFP, maintains its books of record in Euros, which is the local currency in France and has been determined to be its functional currency. These books are translated 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 comprehensive income (loss). Additionally, the Company does not undertake hedging transactions to cover its foreign currency exposure. Comprehensive Income (Loss) For the three months ended March 31 , 201 6 and 2015 , 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, 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 1 2 ). 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. The Company has adopted the with-and-without methodology for determining when excess tax benefits from the exercise of share ‑based awards are realized. Under the with-and-without methodology, current year operating loss deductions and prior-year operating loss carryforwards are deemed to be utilized prior to the utilization of current-year excess tax benefits from share ‑based awards. Business Combinations Business combinations are accounted for in accordance with Accounting Standards Codification, or ASC 805, Business Combinations, using the acquisition method of accounting, 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 are costs the Company incurs to effect a business combination. The Company accounts for acquisition-related costs as expenses in the periods in which the costs are incurred. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB issued an accounting standards update that creates a single source of revenue guidance for companies in all industries. The new standard provides guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers, unless the contracts are within the scope of other accounting standards. It also provides a model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets. This guidance must be adopted using either a full retrospective approach for all periods presented or a modified retrospective approach and will be effective for fiscal years beginning after December 15, 2017, which will be the Company's fiscal 2018. The Company has not yet evaluated the potential impact of adopting the guidance on the Company's consolidated financial statements. In June 2014, the FASB issued an accounting standards update that requires a performance target that affects vesting of a share-based payment award and that could be achieved after the requisite service period to be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized over the required service period, if it is probable that the performance target will be achieved. This guidance will be effective for fiscal years beginning after December 15, 2015, which will be the Company's fiscal 2016, with early adoption permitted. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In August 2014, the FASB issued an accounting standards update that will require management to evaluate if there is substantial doubt about the Company’s ability to continue as a going concern and, if so, to disclose this in both interim and annual reporting periods. This guidance will become effective for the Company’s annual filing for the period ending December 31, 2016 and interim periods thereafter, and allows for early adoption. The Company does not expect the adoption of the guidance will have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued an accounting standards update which requires entities to measure most inventories at the lower of cost and net realizable value, or NRV, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. Under the new guidance, inventory is measured at the lower of cost and net realizable value, which eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods therein. The standard will be effective for the Company for the first quarter of the Company’s fiscal 2016. Early application is permitted. The new guidance must be applied prospectively. The Company does not believe the adoption of this accounting guidance will have a material impact on the Company’s consolidated financial statements and related disclosures. In November 2015, the FASB issued an accounting standards update to the balance sheet classification of deferred taxes. Under existing standards, deferred taxes for each tax-paying jurisdiction are presented as a net current asset or liability and net long-term asset or liability. To simplify presentation, the new guidance will require that all deferred tax assets and liabilities, along with related valuation allowances, be classified as long-term on the balance sheet. As a result, each tax-paying jurisdiction will now only have one net long-term deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early adoption is permitted. The new guidance may be applied prospectively or retrospectively. The Company has elected to adopt the guidance early and apply the guidance prospectively, therefore, prior periods were not retrospectively adjusted. The reclassification of the Company’s deferred tax assets and liabilities does not have any impact to the Company’s net income or cash flow, thus the adoption of the guidance does not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued an accounting standards update that is aimed at making leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet 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 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 an accounting standards update that is aimed to improve 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 guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. 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.

Business Acquisition

Business Acquisition	3 Months Ended
	Mar. 31, 2016
Business Acquisition
Business Acquisition	3. Business and Product Acquisitions Acquisition of fourteen injectable products from Hikma Pharmaceuticals PLC In March 2016, the Company acquired fourteen ANDAs, representing eleven different injectable chemical entities from Hikma Pharmaceuticals PLC for $4.0 million. The Company plans to transfer the manufacturing of these products to its facilities in California, which will require FDA approval before the products can be launched. The Company has concluded that this transaction will be accounted for as a business combination in accordance with ASC 805. The Company’s accounting for this acquisition is preliminary. The fair value estimates for the $4.0 million assets acquired, which the Company allocated as intangible assets were based upon preliminary calculations and valuations, and the Company’s estimates and assumptions are subject to change as the Company obtains additional information for its estimates during the measurement period (up to one year from the acquisition date). Acquisition of Nanjing Letop Medical Technology Co. Ltd. In January 2016, the Company’s subsidiary, ANP, acquired Nanjing Letop Medical Technology Co. Ltd., or Letop, for $0.8 million. The Company recognized $0.5 million of goodwill, which represents the difference between the purchase price and the fair value of Letop’s net assets at acquisition. Letop had previously supplied ANP with intermediates used in making various active pharmaceutical ingredients. In March 2016, this subsidiary was renamed Nanjing Letop Fine Chemistry Co., Ltd. The Company has concluded that this transaction will be accounted for as a business combination in accordance with ASC 805. The Company’s accounting for this acquisition is preliminary. The fair value estimates for the $1.3 million assets acquired, which excludes the $0.5 million of goodwill, and $1.0 million liabilities assumed were based upon preliminary calculations and valuations, and the Company’s estimates and assumptions are subject to change as the Company obtains additional information for its estimates during the measurement period (up to one year from the acquisition date). 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 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 € $ December 2014 December 2015 December 2016 December 2017 € $ In order to facilitate the acquisition, the Company established a subsidiary in France, AFP. The Company will continue the current site manufacturing activities, which consist of the manufacturing of porcine insulin API and 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.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2016
Revenue Recognition
Revenue Recognition	4. Revenue Recognition Generally, revenue is recognized at the time of product delivery to the Company’s customers. In some cases, revenue is recognized at the time of shipment when stipulated by the terms of the sale agreements. The Company also records profit-sharing revenue stemming from a distribution agreement with Allergan plc, or Allergan (see Note 1 6 ). Profit-sharing revenue is recognized at the time Allergan sells the products to its customers. Revenues derived from contract manufacturing services are recognized when third-party products are shipped to customers, after the customer has accepted test samples of the products to be shipped. The Company does not recognize product revenue unless the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) transfer of title has occurred, (iii) the price to the customer is fixed or determinable, and (iv) collection is reasonably assured. Furthermore, the Company does not recognize revenue until all customer acceptance requirements have been met. The Company estimates and records reductions to revenue for discounts, product returns, and pricing adjustments, such as wholesaler chargebacks, in the same period that the related revenue is recorded. The Company’s accounting policy is to review each agreement involving contract development and manufacturing services to determine if there are multiple revenue-generating activities that constitute more than one unit of accounting. Revenues are recognized for each unit of accounting based on revenue recognition criteria relevant to that unit. The Company does not have any revenue arrangements with multiple deliverables. Provision for Wholesaler Chargebacks The provision for chargebacks is a significant estimate used in the recognition of revenue. As part of its sales terms with wholesale customers, the Company agrees to reimburse wholesalers for differences between the gross sales prices at which the Company sells its products to wholesalers and the actual prices of such products at the time wholesalers resell them under the Company’s various contractual arrangements with third parties such as hospitals and group purchasing organizations. The Company estimates chargebacks at the time of sale to wholesalers based on wholesaler inventory stocking levels, historic chargeback rates, and current contract pricing. The provision for chargebacks is reflected in net revenues and a reduction to accounts receivable. The following table is an analysis of the chargeback provision: Three Months Ended March 31, 2016 2015 (in thousands) Beginning balance $ $ Provision related to sales made in the current period Credits issued to third parties Ending balance $ $ Changes in chargeback provision from period to period are primarily dependent on the Company’s sales to its wholesalers, the level of inventory held by the wholesalers, and on the wholesaler’s customer mix. The approach that the Company uses to estimate chargebacks has been consistently applied for all periods presented. Variations in estimates have been historically small. The Company continually monitors the provision for chargebacks and makes adjustments when it believes that the actual chargebacks may differ from the estimates. The settlement of chargebacks generally occurs within 30 days after the sale to wholesalers. Accrual for Product Returns The Company offers most customers the right to return qualified excess or expired inventory for partial credit; however, products sold to Allergan are non-returnable. The Company’s product returns primarily consist of the returns of expired products from sales made in prior periods. Returned products cannot be resold. At the time product revenue is recognized, the Company records an accrual for estimated returns. The accrual is based, in part, upon the historical relationship of product returns to sales and customer contract terms. The Company also assesses other factors that could affect product returns including market conditions, product obsolescence, and the introduction of new competition. Although these factors do not normally give the Company’s customers the right to return products outside of the regular return policy, the Company realizes that such factors could ultimately lead to increased returns. The Company analyzes these situations on a case-by-case basis and makes adjustments to the product return reserve as appropriate. The provision for product returns is reflected in net revenues. The following table is an analysis of product return liability: Three Months Ended March 31, 2016 2015 (in thousands) Beginning balance $ $ Provision for product returns Credits issued to third parties Ending balance $ $ For the three months ended March 31, 2016 and 2015 , the Company’s aggregate product return rate was 1.1% and 1.1 % of qualified sales, respectively.

Income (Loss) per Share

Income (Loss) per Share	3 Months Ended
	Mar. 31, 2016
Income (Loss) per Share
Income (Loss) per Share	5. Income (loss) per Share Basic loss per share is calculated based upon the weighted-average number of shares outstanding during the period and contingently issuable shares such as fully vested deferred stock units, or DSUs, and in 2015, such equity was issued as restricted stock units, or RSUs (such RSUs and DSUs are collectively referred to herein as RSUs), in addition to shares expected to be issued under the Company’s employee stock purchase plan, or ESPP, as of the date all necessary conditions for issuance have been met. Diluted income per share gives effect to all potential dilutive shares outstanding during the period, such as stock options, nonvested RSUs and shares issuable under the Company’s ESPP. For the three months ended March 31, 2016, options to purchase 10,013,154 shares of stock with a weighted-average exercise price of $16.37 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. As the Company reported a net loss for the three months ended March 31, 2015 , the diluted net loss per share, as reported, is equal to the basic net loss per share since the effect of the assumed exercise of stock options vesting of nonvested RSUs and issuance of common shares under the Company’s ESPP are anti-dilutive. Total stock options, nonvested RSUs, and shares issuable under the Company’s ESPP, excluded from the three months ended March 31, 2015, net loss per share were 13,180,428; 857,319 , and 165,167 , respectively. The following table provides the calculation of basic and diluted net loss per share for each of the periods presented: Three Months Ended March 31, 2016 2015 (in thousands, except per share data) Basic and dilutive numerator: Net income (loss) $ $ Denominator: Shares outstanding Contingently issuable shares – vested RSUs — — Weighted-average shares outstanding — basic Net effect of dilutive securities: Stock options — Contingently issuable shares – nonvested RSUs — Contingently issuable shares – ESPP — Weighted-average shares outstanding — diluted Net income (loss) per share — basic $ $ Net income (loss) per share — diluted $ $

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2016
Segment Reporting
Segment Reporting	6. Segment Reporting The Company’s business is the development, manufacture, and marketing of pharmaceutical products. The Company has established two reporting segments that each report to the Chief Operating Decision Maker, or CODM, as defined in ASC 280, Segment Reporting. The Company’s performance is assessed and resources are allocated by the CODM based on the following two reportable segments: · Finished pharmaceutical products · Active pharmaceutical ingredients, or API The finished pharmaceutical products segment manufactures, markets and distributes enoxaparin, Cortrosyn ® , Amphadase ® , naloxone, lidocaine jelly, as well as various other critical and non-critical care drugs. The API segment manufactures and distributes RHI and porcine insulin. The Company also uses RHI for internal product development. Selected financial information by reporting segment is presented below: Three Months Ended March 31, 2016 2015 (in thousands) Net revenues: Finished pharmaceutical products $ $ API Total net revenues Gross Profit: Finished pharmaceutical products API Total gross profit Operating expenses Income (loss) from operations Non-operating income (expenses) Income (loss) before income taxes $ $ The Company manages its business segments to the gross profit level and manages its operating and other costs on a company-wide basis. The Company does not identify total assets by segment for internal purposes, as the Company’s CODM does not assess performance, make strategic decisions, or allocate resources based on assets. Net revenues and carrying values of long-lived assets of enterprises by geographic regions are as follows: Net Revenue Long-Lived Assets Three Months Ended March 31, March 31, December 31, 2016 2015 2016 2015 (in thousands) U.S. $ $ $ $ China — — France Total $ $ $ $

Customer and Supplier Concentra

Customer and Supplier Concentration	3 Months Ended
	Mar. 31, 2016
Customer and Supplier Concentration
Customer and Supplier Concentration	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. Allergan plc has exclusive marketing rights of the Company’s enoxaparin product to the U.S. retail pharmacy market. MannKind Corporation began buying RHI API from the Company in December 2014. The Company considers these five customers to be its major customers, as each individually, and these customers collectively, represented a significant percentage of the Company’s net revenue for the three months ended March 31 , 201 6 and 201 5 and accounts receivable as of March 31, 2016 and December 31, 201 5 . The following table provides accounts receivable and net revenues information for these major customers: % of Total Accounts % of Net Receivable Revenue Three Months Ended March 31, December 31, March 31, 2016 2015 2016 2015 Allergan plc (1) % % % % AmerisourceBergen % % % % Cardinal Health % % % % MannKind Corporation — % — % McKesson % % % % (1) In June 2015, Actavis plc adopted Allergan plc as its new global name. Supplier Concentrations The Company depends on suppliers for raw materials, active pharmaceutical ingredients, and other components that are subject to stringent U.S. Food and Drug Administration, or FDA, requirements. Some of these materials may only be available from one or a limited number of sources. Establishing additional or replacement suppliers for these materials may take a substantial period of time, as suppliers must be approved by the FDA. Furthermore, a significant portion of raw materials may only be available from foreign sources. If the Company is unable to secure, on a timely basis, sufficient quantities of the materials it depends on to manufacture and market its products, it could have a materially adverse effect on the Company’s business, financial condition, and results of operations.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Measurements
Fair Value Measurements	8. Fair Value Measurements The accounting standards of the Financial Accounting Standards Board, or FASB, define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability at the measurement date (an exit price). These standards also establish a hierarchy that prioritizes observable and unobservable inputs used in measuring fair value of an asset or liability, as described below: · Level 1 – Inputs to measure fair value are based on quoted prices (unadjusted) in active markets on identical assets or liabilities; · Level 2 – Inputs to measure fair value are based on the following: a) quoted prices in active markets on similar assets or liabilities, b) quoted prices for identical or similar instruments in inactive markets, or c) observable (other than quoted prices) or collaborated observable market data used in a pricing model from which the fair value is derived; and · Level 3 – Inputs to measure fair value are unobservable and the assets or liabilities have little, if any, market activity; these inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities based on best information available in the circumstances. The Company measures fair value based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company classifies its cash equivalents and short-term investments as Level 1 assets, as they are valued on a recurring basis using quoted market prices with no valuation adjustments applied. The Company does not hold any Level 2 or Level 3 instruments that are measured for fair value on a recurring basis. The fair values of the Company’s financial assets and liabilities measured on a recurring basis, as of March 31, 2016 and December 31, 201 5 , 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: Money market accounts $ $ $ — $ — Restricted short-term investments: Certificates of deposit — — Fair value measurement as of March 31, 2016 $ $ $ — $ — Cash equivalents: Money market accounts $ $ $ — $ — Restricted short-term investments: Certificates of deposit — — Fair value measurement as of December 31, 2015 $ $ $ — $ — The fair value of the Company’s cash equivalents includes money market funds and certificates of deposit with original maturities of three months or less. Short-term investments consist of certificate of deposit accounts that expire within 12 months for which market prices are readily available. The restrictions placed on the certificate of deposit accounts have a negligible effect on the fair value of these financial assets; these funds are restricted to meet the Company’s obligation for workers’ compensation claims. The Company adopted the required fair value measurements and disclosures provisions related to nonfinancial assets and liabilities. These assets and liabilities are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances. These items primarily include long-lived assets, goodwill, and intangible assets for which the fair value of assets is determined as part of the related impairment test. As of March 31, 2016 and December 31, 201 5 , there were no significant adjustments to fair value for nonfinancial assets or liabilities .

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets
Goodwill and Intangible Assets	9. Goodwill and Intangible Assets Intangible assets include product rights, trademarks, patents, land-use rights, and goodwill. The table below shows the weighted-average life, original cost, accumulated amortization, and net book value by major intangible asset classification: Weighted-Average Accumulated Life (Years) Original Cost Amortization Net Book Value (in thousands) Definite-lived intangible assets Product rights 12 $ $ $ Patents 10 Trademarks 11 — Land-use rights 39 Acquired ANDAs (1) * — Other intangible assets 1 Subtotal 12 Indefinite-lived intangible assets Trademark * — Goodwill Finished pharmaceutical products * — Subtotal * — As of March 31, 2016 * $ $ $ Weighted-Average Accumulated Life (Years) Original Cost Amortization Net Book Value (in thousands) Definite-lived intangible assets Product rights 12 $ $ $ Patents 10 Trademarks 11 — Land-use rights 39 Other intangible assets 1 Subtotal 12 Indefinite-lived intangible assets Trademark * — Goodwill Finished pharmaceutical products * — Subtotal * — As of December 31, 2015 * $ $ $ * Intangible assets with indefinite lives have an indeterminable average life. (1) In March 2016, the Company acquired fourteen ANDAs representing eleven different injectable chemical entities from Hikma Pharmaceuticals PLC for $4.0 million. As a result, the accounting and determination of the life of the intangible asset has yet to be determined. (See note 3). Goodwill The changes in the carrying amounts of goodwill were as follows: March 31, December 31, 2016 2015 (in thousands) Beginning balance $ $ Goodwill related to acquisition of business — Currency translation and other adjustments Ending balance $ $ 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, for a total consideration of $29.2 million, which is its carrying value as of March 31, 2016 . In determining the useful life of the trademark, the Company considered the following: the expected use of the intangible; the longevity of the brand; the legal, regulatory and contractual provisions that affect their maximum useful life; the Company’s ability to renew or extend the asset’s legal or contractual life without substantial costs; effects of the regulatory environment; expected changes in distribution channels; maintenance expenditures required to obtain the expected future cash flows from the asset; and considerations for obsolescence, demand, competition and other economic factors. As a result of environmental concerns about Chlorofluorocarbons, or CFCs, the FDA issued a final ruling on January 16, 2009 that required the CFC formulation of its Primatene ® Mist product to be phased out by December 31, 2011. The former formulation of Primatene ® Mist contained CFCs as a propellant; however, the Company intends to use the trademark for a future version of Primatene ® that utilizes hydrofluoroalkane, or HFA, as a propellant. In 2013, the Company filed a new drug application, or NDA, for Primatene ® HFA and received a Prescription Drug User Fee Act date set for May 2014. In May 2014, the Company received a complete response letter, or CRL, from the FDA, which requires additional non-clinical information, label revisions and follow-up studies (label comprehension, behavioral/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 is currently in the process of generating the remaining data required by the CRL and plans to submit an NDA amendment that it believes will address the FDA’s concerns. However, there can be no guarantee that any amendment to the Company’s NDA will result in timely approval of the product or approval at all. Based on the Company’s filed version of Primatene ® HFA, the Company’s plan to respond to the CRL to address the FDA’s concerns, the long history of the Primatene ® trademark (marketed since 1963) and the Company’s perpetual rights to the trademark, the Company has determined that the trademark has an indefinite useful life. If the HFA version is approved by the FDA, it will be marketed under the same trade name; therefore, an impairment charge would not be required.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2016
Inventories
Inventories	10 . Inventories Inventories are stated at the lower of cost or market, using the first-in, first-out method. Provisions are made for slow-moving, unsellable or obsolete items. Inventories consist of the following: March 31, December 31, 2016 2015 (in thousands) Raw materials and supplies $ $ Work in process Finished goods Total inventory Less reserve for excess and obsolete inventories Total inventory, net $ $

Property, Plant, and Equipment

Property, Plant, and Equipment	3 Months Ended
	Mar. 31, 2016
Property, Plant, and Equipment
Property, Plant, and Equipment	11. Property, Plant, and Equipment Property, plant, and equipment consist of the following: March 31, December 31, 2016 2015 (in thousands) Building $ $ Leasehold improvements Land Machinery and equipment Furniture, fixtures, and automobiles Construction in progress Total property, plant, and equipment Less accumulated depreciation Total property, plant, and equipment, net $ $ As of March 31, 2016 , the Company had $2.8 million in capitalized manufacturing equipment that is intended to be used specifically for the manufacture of Primatene ® HFA. The Company will continue to monitor developments with the FDA as it relates to its Primatene ® HFA indefinite lived intangible asset in determining if there is an impairment of these related fixed assets (see Note 9).

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt
Debt	1 2 . Debt Debt consists of the following: March 31, December 31, 2016 2015 (in thousands) Loans with East West Bank Mortgage payable due September 2016 $ $ Equipment loan due April 2017 Line of credit facility due September 2017 — — Equipment loan due January 2019 Mortgage payable due February 2021 Equipment Credit line due September 2021 — — Loans with Cathay Bank Line of credit facility due May 2016 — — Acquisition loan due April 2019 Mortgage payable due April 2021 Loans with Seine-Normandie Water Agency French government loan 1 due March 2018 French government loan 2 due June 2020 French government loan 3 due July 2021 Payment obligation to Merck Equipment under Capital Leases Total debt and capital leases Less current portion of long-term debt and capital leases Long-term debt and capital leases, net of current portion $ $ Loans with East West Bank Mortgage Payable—Due September 2016 In September 2006, the Company entered into a mortgage term loan in the principal amount of $2.8 million, which matures in September 2016. The loan is payable in monthly installments with a final balloon payment of $2.2 million plus interest. The loan is secured by one of the buildings at the Company’s Rancho Cucamonga, California, headquarters complex. The variable interest rate is equal to the three-month LIBOR plus 2.50% . Equipment Loan—Due April 2017 In March 2012, the Company entered into an $8.0 million revolving credit facility. In March 2013, the Company converted the outstanding principal balance of $4.9 million into an equipment loan. Borrowings under the facility are secured by equipment purchased with debt proceeds. Borrowings under the facility bear interest at the prime rate as published by The Wall Street Journal , plus 0.25% , with a minimum interest rate of 3.50% . This facility matures in April 2017. Line of Credit Facility—Due September 2017 In March 2012, the Company entered into a $10.0 million line of credit facility. Borrowings under the facility are secured by inventory and accounts receivable. Borrowings under the facility bear interest at the prime rate as published by The Wall Street Journal . This facility was to mature in March 2016. In March 2016, the Company amended the facility to increase the line of credit to $15.0 million and extended the maturity date to September 2017. As of March 31, 2016 , 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. Borrowings under the facility were secured by equipment. The facility b ore interest at the prime rate as published in The Wall Street Journal plus 0.25% and was to mature in January 2019. In January 2015, the Company drew down $6.2 million from the line of credit facility. Subsequently, the facility was converted into an equipment loan with an outstanding principal balance of $6.2 million. Borrowings under the facility are secured by equipment purchased with the debt proceeds. The Company entered into a fixed interest rate swap contract on this facility to exchange the floating rate for a fixed interest payment over the life of the facility without the exchange of the underlying notional debt amount. The fair value of the derivative and unrealized loss was immaterial to the Company’s consolidated financial statement at March 31, 2016. The facility bears interest at a fixed rate of 4.48% and matures in January 2019. As of March 31, 2016, the loan had a book value of $4.4 million, which approximates fair value. The variable interest rate is deemed to be a Level 2 input for measuring fair value. Mortgage Payable—Due February 2021 In December 2010, the Company refinanced an existing mortgage term loan, which had a principal balance outstanding of $4.5 million at December 31, 2010. The loan was payable in monthly installments with a final balloon payment of $3.8 million. The loan was secured by one of the buildings at the Company’s Rancho Cucamonga, California, headquarters complex, as well as one of its buildings at its Chino, California, complex. The loan had a variable interest rate at the prime rate as published by The Wall Street Journal, with a minimum interest rate of 5.00% , and matured in January 2016. The Company refinanced the existing mortgage term loan in January 2016, which had a principal balance outstanding of $3.7 million at December 31, 2015. The loan is payable in monthly installments with a final balloon payment of $3.3 million. The loan is secured by one of the buildings at the Company’s Rancho Cucamonga, California, headquarters complex. The loan has a variable interest rate at the prime rate as published by The Wall Street Journal. Subsequently, the Company entered into a fixed interest rate swap contract on this loan to exchange the variable interest rate for a fixed interest payment over the life of the loan without the exchange of the underlying notional debt amount. The loan bears interest at a fixed rate of 4.39% , and matures in February 2021. The fair value of the derivative and unrealized loss was approximately $0.1 million at March 31, 2016. As of March 31, 2016, the loan had a book value of $3.7 million, which approximates fair value. The variable interest rate is deemed to be a Level 2 input for measuring fair value. Equipment Credit Line – Due September 2021 In March 2016, the Company entered into a $5.0 million equipment credit line with an 18 -month draw down period and interest payments due monthly through September 2017 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 loan with principal and interest payments due monthly. Borrowings under the facility are secured by the equipment purchased with the debt proceeds, and bears interest at the prime rate as published by The Wall Street Journal . This facility matures in September 2021. As of March 31, 2016, the Company has not drawn any amount on this loan. Subsequently, in April 2016, the Company drew $2.9 million from the equipment line of credit. Loans with Cathay Bank Line of Credit Facility—Due May 2016 In April 2012, the Company entered into a $20.0 million revolving line of credit facility. Borrowings under the facility are secured by inventory, accounts receivable, and intangibles held by the Company. The facility bears interest at the prime rate as published by The Wall Street Journal with a minimum interest rate of 4.00% . This revolving line of credit was to mature in May 2014. In April 2014, the Company modified the facility to extend the maturity date to May 2016. As of March 31, 2016 , the Company did not have any amounts outstanding under this facility. Acquisition Loan with Cathay Bank—Due April 2019 On April 22, 2014, in conjunction with the Merck API Transaction, the Company entered into a secured term loan with Cathay Bank as lender. The principal amount of the loan is $21.9 million and bears a variable interest rate at the prime rate as published by The Wall Street Journal , with a minimum interest rate of 4.00% . Beginning on June 1, 2014 and through the maturity date, April 22, 2019, the Company must make monthly payments of principal and interest based on the then outstanding amount of the loan amortized over a 120 ‑month period. On April 22, 2019 , all amounts outstanding under the loan become due and payable, which would be approximately $12.0 million based upon an interest rate of 4.00% . The loan is secured by 65% of the issued and outstanding shares of stock in AFP and certain assets of the Company, including accounts receivable, inventory, certain investment property, goods, deposit accounts, and general intangibles but not including the Company’s equipment and real property. The loan includes customary restrictions on, among other things, the Company’s ability to incur additional indebtedness, pay dividends in cash or make other distributions in cash, make certain investments, create liens, sell assets, and make loans. The loan also includes customary events of defaults, the occurrence and continuation of any of which provide Cathay Bank the right to exercise remedies against the Company and the collateral securing the loan. These events of default include, among other things, the Company’s failure to pay any amounts due under the loan, the Company’s insolvency, the occurrence of any default under certain other indebtedness or material agreements, and a final judgment against the Company that is not discharged in 30 days. Mortgage Payable—Due April 2021 In March 2007, the Company entered into a mortgage term loan in the principal amount of $5.3 million, which matured in March 2014. In April 2014, the Company refinanced the mortgage term loan, which had a principal balance outstanding of $4.6 million. The loan is payable in monthly installments with a final balloon payment of $3.9 million. The loan is secured by the building at the Company’s Canton, Massachusetts location and bears interest at a fixed rate of 5.42% and matures in April 2021. As of March 31, 2016 , the loan had a fair value of $ 4.8 million , compared to a book value of $4.4 million. The fair value of the loan was determined by using the interest rate associated with the Company’s mortgage loans with similar terms and collateral that has variable interest rates. The fair value of debt obligations is not measured on a recurring basis and the variable interest rate is deemed to be a Level 2 input for measuring fair value. Loans with Seine-Normandie Water Agency In January 2015, the Company entered into three French government loans with the Seine-Normandie water agency in the aggregate amount of €0.6 million, or $0.7 million, subject to currency exchange fluctuations. The life of the loans range between three to six years, and includes annual equal payments and bears no interest over the life of the loans. As of March 31, 2016 , the payment obligation had an aggregate book value of €0.5 million, or $ 0.5 million, which approximates fair value. The fair value of the payment obligation was determined by using the interest rate associated with the Company’s acquisition loan with Cathay Bank that bears a variable interest rate at the prime rate as published by The Wall Street Journal , with a minimum interest rate of 4.00% . The fair value of the debt obligation is not measured on a recurring basis and the variable interest rate is deemed to be a Level 2 input for measuring fair value. Payment Obligation Merck—Due December 2017 On April 30, 2014, in conjunction with the Merck API Transaction, the Company entered into a commitment obligation with Merck, in the principal amount of €11.6 million, or $16.0 million, subject to currency exchange fluctuations. The terms of the purchase price include annual payments over four years and bear a fixed interest rate of 3.00% . The final payment to Merck relating to this obligation is due December 2017. In December 2015 and 2014, the Company made a principal payment of €3.2 million, or $3.5 million and €4.9 million, or $6.0 million, respectively. As of March 31, 2016 , the payment obligation had a book value of €3.6 million, or $ 4 .1 million, which approximates fair value. The fair value of the payment obligation was determined by using the interest rate associated with the Company’s acquisition loan with Cathay Bank that bears a variable interest rate at the prime rate as published by The Wall Street Journal , with a minimum interest rate of 4.00% . The fair value of the debt obligation is not re-measured on a recurring basis and the variable interest rate is deemed to be a Level 2 input for measuring fair value. Covenants At March 31, 2016 and December 31, 2015 , the Company was in compliance with its debt covenants, which include a minimum current ratio, minimum debt service coverage, minimum tangible net worth, and maximum debt-to-effective-tangible-net-worth ratio, computed on a consolidated basis in some instances and on a separate-company basis in others. Equipment under Capital Leases The Company entered into leases for certain equipment under capital leasing arrangements, which will expire at various times through 20 20 . The cost of equipment under capital leases was $1.7 million and $1.5 million at March 31, 2016 and December 31, 201 5, respectively . The accumulated depreciation of equipment under capital leases was $0.8 million and $0.7 million at March 31, 2016 and December 31, 201 5 , respectively. Depreciation of assets recorded under capital leases is included in depreciation expense in the accompanying consolidated financial statements.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Taxes
Income Taxes	1 3 . Income Taxes The following table sets forth the Company’s income tax provision for the periods indicated: Three Months Ended March 31, 2016 2015 (in thousands) Income (loss) before taxes $ $ Income tax expense (benefit) Net income (loss) $ $ Income tax provision (benefit) as a percentage of income (loss) before income taxes % % The Company’s income tax provision for the three months ended March 31, 2016 was 34.8% of income before taxes. 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 blended effective income tax rate expected for the year ending December 31, 201 6 is 34.4% . This effective tax rate factors in various permanent differences, including domestic deductions, the impact of foreign o perations, and various credits. The Company’s income tax benefit of 89.3% during the three months ended March 31, 2015 factored in similar permanent items, as well as the impact of its foreign operations. Valuation Allowance In assessing the need for a valuation allowance, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. Ultimately, the realization of deferred tax assets depends on the existence of future taxable income. 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 connection with the AFP purchase accounting in 2014, the Company recorded a valuation allowance against an intangible deferred tax asset of €3.2 million, or $4.4 million with an offsetting entry to goodwill, since management did not believe that it was more likely than not that the deferred tax asset would be realized. In March 2015, the Company reversed the €3.2 million, or $3.3 million deferred tax valuation allowance in conjunction with the transfer of AFP’s intangible assets from France to the U.S. The difference in U.S. dollars relates to the currency exchange fluctuation, which is recorded in the Company’s accumulated other comprehensive loss as a foreign currency translation adjustment. In 2015, the Company assessed the realizability of the deferred tax assets for AFP. Due to the potential impact of reduced revenues from the MannKind contract and other factors, the Company determined that it was not more likely than not that the net deferred tax assets of AFP would be realized and established a full valuation allowance of $0.9 million as of December 31, 2015. In 2016, for computing its annual effective tax rate, the Company did not benefit from its losses in the states where it files separately. This increased the Company’s income tax expense by $0.1 million during the three months ended March 31, 2016.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity
Stockholders' Equity	1 4 . Stockholders' Equity A summary of the changes in stockholders’ equity for the three months ended March 31, 2016 consisted of the following: Three Months Ended March 31, 2016 (in thousands) Stockholders’ equity as of December 31, 2015 $ Net income Accumulated other comprehensive income Exercise of stock options Nonemployee share-based compensation expense Employee share-based compensation expense Repurchase of common stock (1) Purchase of treasury stock Stockholders’ equity as of March 31, 2016 $ (1) Repurchase of common stock relating to the tax withholding of equity award settlements. 2014 Employee Stock Purchase Plan In June 2014, the Company adopted the Employee Stock Purchase Plan, or ESPP, in connection with its initial public offering. A total of 2,000,000 shares of common stock are reserved for issuance under this plan. The Company’s ESPP permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. Under the ESPP, the Company may specify offerings with durations of not more than 27 months, and may specify shorter purchase periods within each offering. Each offering will have one or more purchase dates on which shares of its common stock will be purchased for employees participating in the offering. An offering may be terminated under certain circumstances. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock at the beginning of an offering period or on the date of purchase. As of March 31, 2016, the Company has issued 124,380 shares of common stock under the ESPP and 1,875,620 shares of its common stock remained available for issuance. For the three months ended March 31, 2016 and 2015 , the Company recorded ESPP expense of $0.1 million and $0.1 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 share buyback program. The primary goal of the programs is to offset dilution created by the Company’s equity compensation programs. Purchases are being made through the open market and private block transactions pursuant to Rule 10b5-1 plans, privately negotiated transactions or other means as determined by the Company’s management and in accordance with the requirements of the Securities and Exchange Commission. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, and other conditions. These repurchased shares are accounted for under the cost method and are included as a component of treasury stock in the Company’s Consolidated Balance Sheets. Pursuant to the Company’s share repurchase program, the Company purchased 398,600 shares of its common stock during the three months ended March 31, 2016 for total consideration of $4.7 million. The 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 March 31, 2016, the Company reserved an aggregate of 3,811,063 shares of common stock for future issuance under the 2015 Plan, including an additional 1,129,962 shares reserved under the 2015 Plan pursuant to an 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, directors, and nonemployees. Under these standards, the fair value of share ‑based payment awards is estimated at the grant date using an option-pricing model and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. The Company uses the Black-Scholes option-pricing model to estimate the fair value of share ‑based awards and recognizes share ‑based compensation cost over the vesting period using the straight-line single option method. Non ‑vested stock options held by non-employees are revalued using the Company’s estimate of fair value at each balance sheet date. The weighted-averages for key assumptions used in determining the fair value of options granted during the three months ended March 31, 2016 and 2015 are as follows: Three Months Ended March 31, 2016 2015 Average volatility % % Risk-free interest rate % % Weighted-average expected life in years Dividend yield rate — % — % A summary of option activity under all plans for the three months ended March 31, 2016 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, 2015 $ Options granted Options exercised Options cancelled Options expired Outstanding as of March 31, 2016 $ $ Exercisable as of March 31, 2016 $ $ (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the Company’s common stock for those awards that have an exercise price below the estimated fair value at March 31, 2016. For the three months ended March 31, 2016 and 2015 , the Company recorded stock option expense related to employees under all plans of $2 .1 million and $1 .6 million, respectively. Information relating to option grants and exercises is as follows: Three Months Ended March 31, 2016 2015 (in thousands, except per share data) Weighted-average grant date fair value $ $ Intrinsic value of options exercised Cash received Total fair value of the options vested during the year A summary of the status of the Company’s nonvested options as of March 31, 2016 , and changes during the three months ended March 31, 2016 , are presented below: Weighted-Average Grant Date Options Fair Value Nonvested as of December 31, 2015 $ Options granted Options vested Options forfeited Nonvested as of March 31, 2016 As of March 31, 2016 , there was $ 15.8 million of total unrecognized compensation cost, net of forfeitures, related to nonvested stock option based compensation arrangements granted under all plans. The cost is expected to be recognized over a weighted-average period of 2.6 years and will be adjusted for future changes in estimated forfeitures. Deferred Stock Units/Restricted Stock Units Beginning in 2007, the Company granted deferred stock units, or DSUs, to certain employees and members of the Board of Directors with a vesting period of up to five years, and commencing in 2015, such equity was issued as restricted stock units, or RSUs (such RSUs and DSUs are collectively referred to herein as 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. The Company recorded a total expense of $1.4 million and $0.5 million for the three months ended March 31, 2016 and 2015, respectively, for these RSU awards . As of March 31, 2016, there was $13.3 million of total unrecognized compensation cost, net of forfeitures, related to nonvested RSU-based compensation arrangements granted under all plans. The cost is expected to be recognized over a weighted-average period of 2.8 years and will be adjusted for future changes in estimated forfeitures. Additionally, prior to the Company’s initial public offering, the Company issued RSUs that were treated as an accounting exchange for expiring stock options, whereby the fair value of the expiring stock options equaled the fair value of the RSUs at the date of the exchange. As such, the Company did not record any expense related to these award modifications. 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, 2015 RSUs granted $ RSUs forfeited Common stock delivered RSUs surrendered for taxes RSUs outstanding at March 31, 2016 (1) The total fair market value is derived from the number of RSUs granted times the current stock price on the date of grant. Equity Awards to Consultants The Company has entered into various consulting agreements with Company stockholders and outside consultants. Consulting expenses are accrued as services are rendered. Consulting services are paid in cash and/or in common stock or stock options. 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 all services under the agreement. During the three months ended March 31, 2016, the Company recorded approximately $ 0.1 million in share-based compensation related to the issuance of equity awards for services rendered by consultants. During the three months ended March 31, 2015, the Company recorded an immaterial amount of share-based compensation related to the issuance of equity awards for services rendered by consultants. The Company recorded share-based compensation expense under all plans and is included in the Company’s consolidated statement of operations as follows: Three Months Ended March 31, 2016 2015 (in thousands) Cost of revenues $ $ Operating expenses: Selling, distribution and marketing General and administrative Research and development Total share-based compensation $ $

Employee Benefits

Employee Benefits	3 Months Ended
	Mar. 31, 2016
Employee Benefits
Employee Benefits	15. Employee Benefits 401(k) Plan The Company has a defined contribution 401(k) plan, or the Plan, whereby eligible employees voluntarily contribute up to a defined percentage of their annual compensation. The Company matches contributions at a rate of 50% on the first 4% of employee contributions, or up to 2% of their annual compensation, and pays the administrative costs of the Plan. Employer contributions vest over four years. Total employer contributions for the three months ended March 31, 2016 and 2015 were approximately $0.2 million and $0.2 million, respectively. Defined Benefit Pension Plan In connection with the Merck API Transaction, the Company assumed an obligation associated with a defined-benefit plan for eligible employees of AFP. This plan provides benefits to the employees from the date of retirement and is based on the employee’s length of time with the Company. The calculation is based on a statistical calculation combining a number of factors that include the employee’s age, length of service, and AFPs turnover rate. The liability under the plan is based on a discount rate of 1.75% as of March 31, 2016 and December 31, 2015. 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 $1.7 million and $1.6 million at March 31, 2016 and December 31, 2015, respectively. The Company recorded an immaterial amount of expense under the plan for the three months ended March 31, 2016 and 2015.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies
Commitments and Contingencies	1 6 . Commitments and Contingencies Distribution Agreement with Allergan plc In May 2005, the Company entered into an agreement to grant certain exclusive marketing rights for its enoxaparin product to Andrx Pharmaceuticals, Inc., or Andrx, which generally extends to the U.S. retail pharmacy market. To obtain such rights, Andrx made a non-refundable, upfront payment of $4.5 million to the Company upon execution of the agreement, which was classified as deferred revenues. Under the agreement, the Company is paid a fixed cost per unit sold to Andrx and also shares in the gross profits (as defined) from Andrx’s sales of the product in the U.S. retail pharmacy market. In November 2006, Watson Pharmaceuticals, Inc., or Watson, acquired Andrx and all of the rights and obligations associated with the agreement. In January 2013, Watson adopted Actavis, Inc. as its new global name. In March 2015, Actavis acquired Allergan plc and adopted Allergan plc as its new global name in June 2015. The agreement has a term that expires in January 2019 and can be extended by Allergan for an additional three years. The agreement may only be terminated prior to the end of the term by either party in the case of a breach of contract or insolvency of the other party, by the Company if Allergan fails to purchase a minimum number of units and by Allergan if an infringement claim is made against Allergan. In January 2012, the Company launched enoxaparin, beginning the seven -year period in which Allergan has the exclusive marketing rights for the Company’s enoxaparin product in the U.S. retail pharmacy market and the start of the Company’s recognition of the $4.5 million deferred revenue over this period on a straight-line basis. Allergan has an option to renew the agreement for an additional three years. As of March 31, 2016 and December 31, 2015, the balance of the deferred revenue was $1.8 million and $2.0 million, respectively. The Company manufactures its enoxaparin product for the retail market according to demand specifications of Allergan. Upon shipment of enoxaparin to Allergan, the Company recognizes product sales at an agreed transfer price and records the related cost of products sold. Based on the terms of the Company’s distribution agreement with Allergan, the Company is entitled to a share of the ultimate profits based on the eventual net revenue from enoxaparin sales by Allergan to the end user less the agreed transfer price originally paid by Allergan to the Company. Allergan provides the Company with a quarterly sales report that calculates the Company’s share of Allergan enoxaparin gross profit. The Company records its share of Allergan gross profit as a component of net revenue. Supply Agreement with MannKind Corporation On July 31, 2014, the Company entered in a supply agreement with MannKind Corporation, or MannKind, pursuant to which the Company will manufacture for and supply to MannKind certain quantities of RHI for use in MannKind’s product Afrezza ® . Under the terms of the supply agreement, the Company will be responsible for manufacturing the RHI in accordance with MannKind’s specifications and agreed-upon quality standards. MannKind has agreed to purchase annual minimum quantities of RHI under the supply agreement of an aggregate amount of approximately €120.1 million, or approximately $146.0 million, in calendar years 2015 through 2019. MannKind paid a non-refundable reservation fee to the Company in the amount of €11.0 million, or approximately $14.0 million upon entry into the agreement. Under the agreement, the non-refundable reservation fee was considered as partial payment for the purchase commitment quantity for 2015. The Company classified the amount as deferred revenue. As of December 31, 2015, the full amount of the deferred revenue has been recognized. Unless earlier terminated, the term of the supply agreement expires on December 31, 2019 and can be renewed for additional, successive two -year terms upon 12 month’s written notice given prior to the end of the initial term or any additional two-year term. MannKind and the Company each have customary termination rights, including termination for material breach that is not cured within a specific time frame or in the event of liquidation, bankruptcy, or insolvency of the other party. In addition, MannKind may terminate the supply agreement upon two years’ prior written notice to the Company without cause or upon 30 days prior written notice to the Company if a controlling regulatory authority withdraws approval for Afrezza ® ; provided, however, in the event of a termination pursuant to either of these scenarios, the provisions of the supply agreement require MannKind to pay the full amount of all unpaid purchase commitments due over the initial term within 60 calendar days of the effective date of such termination. In January 2015, the Company entered into a supply option agreement with MannKind, pursuant to which MannKind will have the option to purchase RHI, for use in MannKind’s product Afrezza ® , in addition to the amounts specified in the July 2014 supply agreement. Under the agreement, MannKind has the option to purchase additional RHI in calendar years 2016 through 2019. In the event MannKind elects not to exercise its minimum annual purchase option for any year, MannKind shall pay the Company a capacity cancellation fee. By mutual agreement, MannKind did not purchase the full contractually obligated quantities of RHI in 2015. The 2015 sales of RHI to MannKind were $20.8 million . In October 2015, MannKind informed the Company they were not going to exercise the option to purchase additional quantities of RHI for 2016 under the supply option agreement. Accordingly, MannKind paid the Company a capacity cancellation fee in October 2015 for not exercising its minimum annual purchase option for 2016. The Company recognized this payment as revenue in fiscal 2015. The Company is currently in discussions with MannKind regarding the timing of future purchases. Collaboration Agreement with a Medical Device Manufacturer The Company has 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 March 31, 2016, the Company has paid an upfront payment of $0.5 million and $0.4 million in milestone payments under this agreement, which was classified as research and development expense. The Company is obligated to pay up to an additional $1.7 million if certain milestones are met. 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 months ended March 31, 2016 and 2015 was approximately $0.8 million and $0.8 million, respectively. Purchase Commitments As of March 31, 2016 , the Company has entered into commitments to purchase equipment and raw materials for an aggregate of $17.5 million. The Company anticipates that most of these commitments will be fulfilled by 201 7 . 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 March 31, 2016 , the Company had invested approximately $4 9 .0 million in ANP of its registered capital commitment of $61.0 million. The Company has committed to invest an additional $ 12 .0 million in ANP by December 201 7 . This investment in ANP will result in cash being transferred from the U.S. parent company to ANP. Per these agreements, in January 2010, the Company acquired certain land-use rights with a carrying value of $1.2 million. In addition, the Company purchased additional land-use rights in November 2012 for $1.3 million. The Company committed to spend approximately $15.0 million in land development. The agreements require the construction of fixed assets on the property and specified a timetable for the construction of these fixed assets. The current pace of development of the property is behind the schedules described in the purchase agreements and, per the purchase agreement, potential monetary penalties could result if the development is delayed or not completed in accordance with the guidelines stated in the purchase agreements. 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	3 Months Ended
	Mar. 31, 2016
Litigation
Litigation	17. Litigation Enoxaparin Patent Litigation In September 2011, Momenta Pharmaceuticals, Inc., or Momenta, a Boston ‑based pharmaceutical company, and Sandoz Inc., or Sandoz, the generic division of Novartis, initiated litigation against the Company for alleged patent infringement of two patents related to testing methods for batch release of enoxaparin, which the Company refers to as the “‘886 patent” and the “‘466 patent.” The lawsuit was filed in the United States District Court for the District of Massachusetts, or the District Court. In October 2011, the District Court issued a preliminary injunction barring the Company from selling its generic enoxaparin product and also requiring Momenta and Sandoz to post a $100.1 million bond. The preliminary injunction was stayed by the United States Court of Appeals for the Federal Circuit, or 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 District Court granted the Company’s motion for summary judgment of non ‑infringement of the ‘886 patent and denied Momenta and Sandoz’s motion for leave to amend infringement contentions. On January 24, 2014, the District Court judge entered final judgment in the Company’s favor on both patents. Momenta and Sandoz also filed a motion to collect attorneys’ fees and costs relating to a discovery motion, which the District Court granted. On May 9, 2016, the 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. The Company intends to attempt to collect the $100.1 million bond posted by Momenta and Sandoz following a decision on the merits in the event the Company prevails. 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 District Court granting summary judgment of non-infringement as to the Company, and it remanded the case to the District Court for further proceedings consistent with its opinion. The Federal Circuit panel affirmed the 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 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 will return to the District Court for further proceedings. On March 18, 2016, the parties filed a joint status report with the District Court. The Company intends to vigorously defend this case on further appeal and/or in the 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 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 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 District Court denied Aventis’ motion for summary judgment in a final order it issued on May 12, 2014. On June 9, 2014, at Aventis’ request, the District Court issued an order certifying for appeal its order denying Aventis’ motion for summary judgment. On June 9, 2014, Aventis filed with the United States Court of Appeals for the Ninth Circuit, or the Ninth Circuit, a petition for permission to appeal the District Court’s denial of Aventis’ motion for summary judgment, and the Company filed an opposition to Aventis’ petition on June 19, 2014. On August 22, 2014, the Ninth Circuit granted Aventis’ petition. The parties have completed and filed their respective appeal briefs with the Ninth Circuit. A date for oral argument has not been set by the Ninth Circuit. The District Court set an evidentiary hearing for July 7, 2014 on the “original source” issue, a key element under the False Claims Act. The evidentiary hearing was conducted as scheduled, from July 7, 2014 through July 10, 2014. On July 13, 2015, the District Court issued a ruling concluding that the Company is not an original source under the False Claims Act, and the District Court entered final judgment dismissing the case for lack of subject matter jurisdiction. On July 27, 2015, Aventis filed a request for attorneys’ fees with the District Court, and on August 3, 2015, the Company filed objections to Aventis’s request. On July 20, 2015, the Company filed with the Ninth Circuit a notice of appeal of the 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 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 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 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 6, 2016, the 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. 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 District Court. While the outcome of litigation is inherently uncertain, the Company believes Aventis’s request is without merit, and it intends to vigorously defend this case. California Employment Litigation On January 6, 2015, the Company received a formal demand from Plaintiff’s counsel in an employment related lawsuit captioned Eva Hernandez v. International Medication Systems Limited, in connection with a complaint originally filed on February 4, 2013 in the Superior Court of California County of Los Angeles, or the Court, by plaintiff Eva Hernandez on behalf of herself and others similarly situated. Plaintiff’s complaint included alleged violations of the California Labor Code stemming from the Company’s alleged timekeeping practices, as well as other similar and related claims brought under California law. In the complaint, Plaintiff sought damages and related remedies under California law, as well as various penalty payments under the California Labor Code, on behalf of herself and others similarly situated. On April 7, 2015, solely to resolve the dispute, minimize disruption to the Company due to ongoing litigation, and other similar and related factors (but unrelated to the alleged merits of Plaintiff’s claims), the Company reached an agreement in principle to settle this matter on a class wide basis for a total amount of $3.2 million, plus applicable payroll taxes. The Joint Stipulation of Settlement as executed by the parties was filed with the Court on June 2, 2015. On July 1, 2015, the Court preliminarily approved the settlement, and on November 5, 2015, the Court entered an order granting final approval of the settlement. Momenta/Sandoz Antitrust Litigation On September 17, 2015, the Company initiated a lawsuit by filing a Complaint in the Central District of California against Momenta and Sandoz. The Company’s complaint generally asserts that Momenta and Sandoz 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 District Court of the Central District of California granted Defendants’ motion to transfer and did not rule on Defendants’ motion to dismiss. Accordingly, the case was transferred to the District of Massachusetts and is currently awaiting further action by the District Court of the District of Massachusetts. On February 9, 2016, the Company filed a writ of mandamus with the Ninth Circuit Court of Appeals to attempt to appeal the District Court of the Central District of California’s granting of Defendants’ motion to transfer to the District of Massachusetts. On May 9, 2016, the parties filed a joint status report with the District Court advising the court that briefing on the motion to dismiss has been completed and requesting oral arguments. 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 materially 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)	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation All significant intercompany activity has been eliminated in the preparation of the condensed consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Some information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles, or GAAP, have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations, and cash flows of the Company. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries: International Medication Systems, Limited, or IMS; Armstrong Pharmaceuticals, Inc., or Armstrong; Amphastar Nanjing Pharmaceuticals Co., Ltd., or ANP; and Amphastar France Pharmaceuticals, S.A.S., or AFP.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The principal accounting estimates include: determination of allowances for doubtful accounts and discounts, provision for chargebacks, liabilities for product returns, reserves for excess or unsellable inventory, impairment of long-lived and intangible assets and goodwill, self-insured claims, workers’ compensation liabilities, litigation reserves, stock price volatilities for share-based compensation expense, fair market values of the Company’s common stock, valuation allowances for deferred tax assets, and liabilities for uncertain income tax positions.
Foreign Currency	Foreign Currency The functional currency of the Company and its domestic and Chinese subsidiary, ANP 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 exchange gains and losses are reflected in the Company’s statement of operations. The Company’s French subsidiary, AFP, maintains its books of record in Euros, which is the local currency in France and has been determined to be its functional currency. These books are translated 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 comprehensive income (loss). Additionally, the Company does not undertake hedging transactions to cover its foreign currency exposure.
Comprehensive Income (Loss)	Comprehensive Income (Loss) For the three months ended March 31 , 201 6 and 2015 , 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, 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 1 2 ).
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. The Company has adopted the with-and-without methodology for determining when excess tax benefits from the exercise of share ‑based awards are realized. Under the with-and-without methodology, current year operating loss deductions and prior-year operating loss carryforwards are deemed to be utilized prior to the utilization of current-year excess tax benefits from share ‑based awards.
Business Combinations	Business Combinations Business combinations are accounted for in accordance with Accounting Standards Codification, or ASC 805, Business Combinations, 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 are costs the Company incurs to effect a business combination. The Company accounts for acquisition-related costs as expenses in the periods in which the costs are incurred.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB issued an accounting standards update that creates a single source of revenue guidance for companies in all industries. The new standard provides guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers, unless the contracts are within the scope of other accounting standards. It also provides a model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets. This guidance must be adopted using either a full retrospective approach for all periods presented or a modified retrospective approach and will be effective for fiscal years beginning after December 15, 2017, which will be the Company's fiscal 2018. The Company has not yet evaluated the potential impact of adopting the guidance on the Company's consolidated financial statements. In June 2014, the FASB issued an accounting standards update that requires a performance target that affects vesting of a share-based payment award and that could be achieved after the requisite service period to be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized over the required service period, if it is probable that the performance target will be achieved. This guidance will be effective for fiscal years beginning after December 15, 2015, which will be the Company's fiscal 2016, with early adoption permitted. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In August 2014, the FASB issued an accounting standards update that will require management to evaluate if there is substantial doubt about the Company’s ability to continue as a going concern and, if so, to disclose this in both interim and annual reporting periods. This guidance will become effective for the Company’s annual filing for the period ending December 31, 2016 and interim periods thereafter, and allows for early adoption. The Company does not expect the adoption of the guidance will have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued an accounting standards update which requires entities to measure most inventories at the lower of cost and net realizable value, or NRV, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. Under the new guidance, inventory is measured at the lower of cost and net realizable value, which eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods therein. The standard will be effective for the Company for the first quarter of the Company’s fiscal 2016. Early application is permitted. The new guidance must be applied prospectively. The Company does not believe the adoption of this accounting guidance will have a material impact on the Company’s consolidated financial statements and related disclosures. In November 2015, the FASB issued an accounting standards update to the balance sheet classification of deferred taxes. Under existing standards, deferred taxes for each tax-paying jurisdiction are presented as a net current asset or liability and net long-term asset or liability. To simplify presentation, the new guidance will require that all deferred tax assets and liabilities, along with related valuation allowances, be classified as long-term on the balance sheet. As a result, each tax-paying jurisdiction will now only have one net long-term deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early adoption is permitted. The new guidance may be applied prospectively or retrospectively. The Company has elected to adopt the guidance early and apply the guidance prospectively, therefore, prior periods were not retrospectively adjusted. The reclassification of the Company’s deferred tax assets and liabilities does not have any impact to the Company’s net income or cash flow, thus the adoption of the guidance does not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued an accounting standards update that is aimed at making leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet 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 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 an accounting standards update that is aimed to improve 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 guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. 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.
Revenue Recognition	Generally, revenue is recognized at the time of product delivery to the Company’s customers. In some cases, revenue is recognized at the time of shipment when stipulated by the terms of the sale agreements. The Company also records profit-sharing revenue stemming from a distribution agreement with Allergan plc, or Allergan (see Note 1 6 ). Profit-sharing revenue is recognized at the time Allergan sells the products to its customers. Revenues derived from contract manufacturing services are recognized when third-party products are shipped to customers, after the customer has accepted test samples of the products to be shipped. The Company does not recognize product revenue unless the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) transfer of title has occurred, (iii) the price to the customer is fixed or determinable, and (iv) collection is reasonably assured. Furthermore, the Company does not recognize revenue until all customer acceptance requirements have been met. The Company estimates and records reductions to revenue for discounts, product returns, and pricing adjustments, such as wholesaler chargebacks, in the same period that the related revenue is recorded. The Company’s accounting policy is to review each agreement involving contract development and manufacturing services to determine if there are multiple revenue-generating activities that constitute more than one unit of accounting. Revenues are recognized for each unit of accounting based on revenue recognition criteria relevant to that unit. The Company does not have any revenue arrangements with multiple deliverables.

Business Acquisition (Tables)

Business Acquisition (Tables)	3 Months Ended
	Mar. 31, 2016
Business Acquisition
Schedule of payments for business acquisition	U.S. Euros Dollars (in thousands) At Closing, April 2014 € $ December 2014 December 2015 December 2016 December 2017 € $

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2016
Revenue Recognition
Schedule of chargeback provision analysis	Three Months Ended March 31, 2016 2015 (in thousands) Beginning balance $ $ Provision related to sales made in the current period Credits issued to third parties Ending balance $ $
Schedule of product return liability analysis	Three Months Ended March 31, 2016 2015 (in thousands) Beginning balance $ $ Provision for product returns Credits issued to third parties Ending balance $ $

Income (Loss) per Share (Tables

Income (Loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Income (Loss) per Share
Schedule of basic and diluted net loss per share calculation	Three Months Ended March 31, 2016 2015 (in thousands, except per share data) Basic and dilutive numerator: Net income (loss) $ $ Denominator: Shares outstanding Contingently issuable shares – vested RSUs — — Weighted-average shares outstanding — basic Net effect of dilutive securities: Stock options — Contingently issuable shares – nonvested RSUs — Contingently issuable shares – ESPP — Weighted-average shares outstanding — diluted Net income (loss) per share — basic $ $ Net income (loss) per share — diluted $ $

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting
Schedule of financial information by reporting segment	Three Months Ended March 31, 2016 2015 (in thousands) Net revenues: Finished pharmaceutical products $ $ API Total net revenues Gross Profit: Finished pharmaceutical products API Total gross profit Operating expenses Income (loss) from operations Non-operating income (expenses) Income (loss) before income taxes $ $
Schedule of net revenues and long-lived assets by geographic region	Net Revenue Long-Lived Assets Three Months Ended March 31, March 31, December 31, 2016 2015 2016 2015 (in thousands) U.S. $ $ $ $ China — — France Total $ $ $ $

Customer and Supplier Concent29

Customer and Supplier Concentration (Tables)	3 Months Ended
	Mar. 31, 2016
Customer and Supplier Concentration
Schedule of accounts receivable and net revenues by major customer	% of Total Accounts % of Net Receivable Revenue Three Months Ended March 31, December 31, March 31, 2016 2015 2016 2015 Allergan plc (1) % % % % AmerisourceBergen % % % % Cardinal Health % % % % MannKind Corporation — % — % McKesson % % % % (1) In June 2015, Actavis plc adopted Allergan plc as its new global name.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
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: Money market accounts $ $ $ — $ — Restricted short-term investments: Certificates of deposit — — Fair value measurement as of March 31, 2016 $ $ $ — $ — Cash equivalents: Money market accounts $ $ $ — $ — Restricted short-term investments: Certificates of deposit — — Fair value measurement as of December 31, 2015 $ $ $ — $ —

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
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 Product rights 12 $ $ $ Patents 10 Trademarks 11 — Land-use rights 39 Acquired ANDAs (1) * — Other intangible assets 1 Subtotal 12 Indefinite-lived intangible assets Trademark * — Goodwill Finished pharmaceutical products * — Subtotal * — As of March 31, 2016 * $ $ $ Weighted-Average Accumulated Life (Years) Original Cost Amortization Net Book Value (in thousands) Definite-lived intangible assets Product rights 12 $ $ $ Patents 10 Trademarks 11 — Land-use rights 39 Other intangible assets 1 Subtotal 12 Indefinite-lived intangible assets Trademark * — Goodwill Finished pharmaceutical products * — Subtotal * — As of December 31, 2015 * $ $ $ * Intangible assets with indefinite lives have an indeterminable average life. (1) In March 2016, the Company acquired fourteen ANDAs representing eleven different injectable chemical entities from Hikma Pharmaceuticals PLC for $4.0 million. As a result, the accounting and determination of the life of the intangible asset has yet to be determined. (See note 3).
Schedule of changes in carrying amounts of goodwill	March 31, December 31, 2016 2015 (in thousands) Beginning balance $ $ Goodwill related to acquisition of business — Currency translation and other adjustments Ending balance $ $

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2016
Inventories
Schedule of inventories	March 31, December 31, 2016 2015 (in thousands) Raw materials and supplies $ $ Work in process Finished goods Total inventory Less reserve for excess and obsolete inventories Total inventory, net $ $

Property, Plant, and Equipment

Property, Plant, and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant, and Equipment
Schedule of property, plant, and equipment	March 31, December 31, 2016 2015 (in thousands) Building $ $ Leasehold improvements Land Machinery and equipment Furniture, fixtures, and automobiles Construction in progress Total property, plant, and equipment Less accumulated depreciation Total property, plant, and equipment, net $ $

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt
Schedule of debt	March 31, December 31, 2016 2015 (in thousands) Loans with East West Bank Mortgage payable due September 2016 $ $ Equipment loan due April 2017 Line of credit facility due September 2017 — — Equipment loan due January 2019 Mortgage payable due February 2021 Equipment Credit line due September 2021 — — Loans with Cathay Bank Line of credit facility due May 2016 — — Acquisition loan due April 2019 Mortgage payable due April 2021 Loans with Seine-Normandie Water Agency French government loan 1 due March 2018 French government loan 2 due June 2020 French government loan 3 due July 2021 Payment obligation to Merck Equipment under Capital Leases Total debt and capital leases Less current portion of long-term debt and capital leases Long-term debt and capital leases, net of current portion $ $

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2016
Income Taxes
Schedule of reconciliation of the statutory federal income tax rate	Three Months Ended March 31, 2016 2015 (in thousands) Income (loss) before taxes $ $ Income tax expense (benefit) Net income (loss) $ $ Income tax provision (benefit) as a percentage of income (loss) before income taxes % %

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity
Schedule of key assumptions to determine fair value of options	Three Months Ended March 31, 2016 2015 Average volatility % % Risk-free interest rate % % Weighted-average expected life in years 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, 2015 $ Options granted Options exercised Options cancelled Options expired Outstanding as of March 31, 2016 $ $ Exercisable as of March 31, 2016 $ $ The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the Company’s common stock for those awards that have an exercise price below the estimated fair value at March 31, 2016.
Schedule of information relating to options grants	Three Months Ended March 31, 2016 2015 (in thousands, except per share data) Weighted-average grant date fair value $ $ Intrinsic value of options exercised Cash received Total fair value of the options vested during the year
Schedule of the summary of nonvested options status	Weighted-Average Grant Date Options Fair Value Nonvested as of December 31, 2015 $ Options granted Options vested Options forfeited Nonvested as of March 31, 2016
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, 2015 RSUs granted $ RSUs forfeited Common stock delivered RSUs surrendered for taxes RSUs outstanding at March 31, 2016 The total fair market value is derived from the number of RSUs granted times the current stock price on the date of grant.
Schedule of recorded share-based compensation expense under all plans	Three Months Ended March 31, 2016 2015 (in thousands) Cost of revenues $ $ Operating expenses: Selling, distribution and marketing General and administrative Research and development Total share-based compensation $ $
Schedule of changes in stockholders' equity	Three Months Ended March 31, 2016 (in thousands) Stockholders’ equity as of December 31, 2015 $ Net income Accumulated other comprehensive income Exercise of stock options Nonemployee share-based compensation expense Employee share-based compensation expense Repurchase of common stock (1) Purchase of treasury stock Stockholders’ equity as of March 31, 2016 $ (1) Repurchase of common stock relating to the tax withholding of equity award settlements.

Business Acquisition (Narrative

Business Acquisition (Narrative) (Details) $ in Thousands	1 Months Ended		3 Months Ended
	Mar. 31, 2016USD ($)item	Jan. 31, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Business Acquisition
Payment to Acquire Business, Gross	$ 4,000		$ 4,761
Number of Injectable Products Acquired | item	14
Number of Different Injectable Chemical Entities | item	11
Goodwill recognized	$ 4,321		4,321	$ 3,726	$ 4,467
Hikma Pharmaceuticals PLC
Business Acquisition
Payment to Acquire Business, Gross	$ 4,000
Number of Injectable Products Acquired | item	14
Number of Different Injectable Chemical Entities | item	11
Assets acquired	$ 4,000		$ 4,000
Letop
Business Acquisition
Payment to Acquire Business, Gross		$ 800
Goodwill recognized		500
Assets acquired		1,300
Liabilities assumed		$ 1,000

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			3,618	3,186
December 2,017			568	500
Total - estimated			$ 32,010	€ 25,023

Revenue Recognition (Analysis o

Revenue Recognition (Analysis of the Chargeback Provision) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue Recognition
Beginning balance	$ 15,217	$ 11,872
Provision related to sales made in the current period	32,548	42,372
Credits issued to third parties	(36,703)	(42,909)
Ending balance	$ 11,062	$ 11,335

Revenue Recognition (Analysis40

Revenue Recognition (Analysis of Product Return Liability) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue Recognition
Beginning balance	$ 2,621	$ 2,408
Provision for product returns	(255)	803
Credits issued to third parties	(493)	(630)
Ending balance	$ 1,873	$ 2,581
Aggregate product return rate	1.10%	1.10%

Income (Loss) per Share (Narrat

Income (Loss) per Share (Narrative) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Exercise Price of Excluded Securities	$ 16.37
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	10,013,154	13,180,428
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		857,319
Employee Stock Purchase Plan (ESPP)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		165,167

Income (Loss) per Share (Calcul

Income (Loss) per Share (Calculation of Basic and Diluted Net Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic and dilutive numerator:
Net income (loss)	$ 2,489	$ (665)
Denominator:
Shares outstanding	45,041	44,601
Weighted-average shares outstanding—basic	45,041	44,601
Net effect of dilutive securities:
Stock options	405
Weighted-average shares outstanding—diluted	46,810	44,601
Net loss per share—basic (in Dollars per share)	$ 0.06	$ (0.01)
Net loss per share—diluted (in Dollars per share)	$ 0.05	$ (0.01)
Restricted Stock Units (RSUs)
Net effect of dilutive securities:
Contingently issuable shares	1,302
Employee Stock Purchase Plan (ESPP)
Net effect of dilutive securities:
Contingently issuable shares	62

Segment Reporting (Selected Fin

Segment Reporting (Selected Financial Information by Reporting Segment) (Details) $ in Thousands	3 Months Ended		15 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 31, 2016segment
Segment Reporting Information [Line Items]
Number of Reportable Segments | segment			2
Net revenues:
Net Revenue	$ 59,366	$ 56,886
Gross Profit:
Gross Profit	24,902	13,280
Operating expenses	20,827	20,541
Income (loss) from operations	4,075	(7,261)
Non-operating income (expenses)	(259)	1,064
Income (loss) before income taxes	3,816	(6,197)
Finished Pharmaceutical Products
Net revenues:
Net Revenue	58,554	50,872
Gross Profit:
Gross Profit	25,824	12,853
API
Net revenues:
Net Revenue	812	6,014
Gross Profit:
Gross Profit	$ (922)	$ 427

Segment Reporting (Summary of R

Segment Reporting (Summary of Revenues and Long-Lived Assets by Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue	$ 59,366	$ 56,886
Long-Lived Assets	144,684		$ 142,161
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue	58,538	52,960
Long-Lived Assets	100,290		100,404
CHINA
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	30,739		28,547
FRANCE
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue	828	$ 3,926
Long-Lived Assets	$ 13,655		$ 13,210

Customer and Supplier Concent45

Customer and Supplier Concentration (Details) - Customer Concentration Risk [Member] - item	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Revenue, Major Customer [Line Items]
Number of major customers that are wholesale distributors	3
Accounts receivable
Revenue, Major Customer [Line Items]
Number of major customers	5		5
Net Revenues
Revenue, Major Customer [Line Items]
Number of major customers	5	5
Allergan plc | Accounts receivable
Revenue, Major Customer [Line Items]
Major Customers	14.00%		12.00%
Allergan plc | Net Revenues
Revenue, Major Customer [Line Items]
Major Customers	22.00%	23.00%
AmerisourceBergen | Accounts receivable
Revenue, Major Customer [Line Items]
Major Customers	18.00%		12.00%
AmerisourceBergen | Net Revenues
Revenue, Major Customer [Line Items]
Major Customers	19.00%	16.00%
Cardinal Health | Accounts receivable
Revenue, Major Customer [Line Items]
Major Customers	27.00%		20.00%
Cardinal Health | Net Revenues
Revenue, Major Customer [Line Items]
Major Customers	21.00%	18.00%
MannKind Corporation | Accounts receivable
Revenue, Major Customer [Line Items]
Major Customers			13.00%
MannKind Corporation | Net Revenues
Revenue, Major Customer [Line Items]
Major Customers		10.00%
McKesson | Accounts receivable
Revenue, Major Customer [Line Items]
Major Customers	16.00%		21.00%
McKesson | Net Revenues
Revenue, Major Customer [Line Items]
Major Customers	20.00%	19.00%

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Values of the Company’s Financial Assets and Liabilities) (Details) - Recurring Basis - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Restricted short-term investments:
Fair value measurement	$ 36,841	$ 43,771
Money market accounts
Cash equivalents:
Cash equivalents	35,556	42,486
Certificates of deposit
Restricted short-term investments:
Restricted short-term investments	1,285	1,285
Level 1
Restricted short-term investments:
Fair value measurement	36,841	43,771
Level 1 | Money market accounts
Cash equivalents:
Cash equivalents	35,556	42,486
Level 1 | Certificates of deposit
Restricted short-term investments:
Restricted short-term investments	$ 1,285	$ 1,285

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Fair Value Measurements
Assets, Fair Value Adjustment	$ 0	$ 0
Liabilities, Fair Value Adjustment	$ 0	$ 0

Goodwill and Intangible Asset48

Goodwill and Intangible Assets (Summary of Intangible Assets) (Details) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2016USD ($)item	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Definite-lived intangible assets
Weighted-Average Life (Years)		12 years	12 years
Finite-Lived Intangible Assets, Gross	$ 34,557	$ 34,557	$ 30,572
Accumulated Amortization	24,079	24,079	23,622
Finite-Lived Intangible Assets, Net	10,478	10,478	6,950
Indefinite-lived intangible assets
Goodwill recognized	4,321	4,321	3,726	$ 4,467
Subtotal, Original Cost	33,546	33,546	32,951
Subtotal, Net Book Value	33,546	33,546	32,951
Balance, Original Cost	68,103	68,103	63,523
Balance, Net Book Value	$ 44,024	44,024	39,901
Number of Injectable Products Acquired | item	14
Number of Different Injectable Chemical Entities | item	11
Payment to Acquire Business, Gross	$ 4,000	4,761
Finished Pharmaceutical Products
Indefinite-lived intangible assets
Goodwill recognized	4,321	4,321
API
Indefinite-lived intangible assets
Goodwill recognized			3,726
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	23,124	23,124	22,679
Finite-Lived Intangible Assets, Net	4,010	$ 4,010	$ 4,455
Patents
Definite-lived intangible assets
Weighted-Average Life (Years)		10 years	10 years
Finite-Lived Intangible Assets, Gross	293	$ 293	$ 293
Accumulated Amortization	115	115	107
Finite-Lived Intangible Assets, Net	178	$ 178	$ 186
Trademarks
Definite-lived intangible assets
Weighted-Average Life (Years)		11 years	11 years
Finite-Lived Intangible Assets, Gross	15	$ 15	$ 15
Accumulated Amortization	15	$ 15	$ 15
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	304	304	288
Finite-Lived Intangible Assets, Net	2,236	2,236	$ 2,252
Acquired ANDAs
Definite-lived intangible assets
Finite-Lived Intangible Assets, Gross	4,000	4,000
Finite-Lived Intangible Assets, Net	4,000	$ 4,000
Other intangible assets
Definite-lived intangible assets
Weighted-Average Life (Years)		1 year	1 year
Finite-Lived Intangible Assets, Gross	575	$ 575	$ 590
Accumulated Amortization	521	521	533
Finite-Lived Intangible Assets, Net	$ 54	$ 54	$ 57

Goodwill and Intangible Asset49

Goodwill and Intangible Assets (Summary of Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets
Beginning balance	$ 3,726	$ 4,467
Goodwill related to acquisition of business	444
Currency translation and other adjustments	151	(741)
Ending balance	$ 4,321	$ 3,726

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventories
Raw materials and supplies	$ 38,132	$ 31,878
Work in process	19,938	21,455
Finished goods	26,396	19,867
Total inventory	84,466	73,200
Less reserve for excess and obsolete inventories	(2,224)	(2,535)
Total inventory, net	$ 82,242	$ 70,665

Property, Plant, and Equipmen51

Property, Plant, and Equipment (Summary of Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Capitalized manufacturing equipment for specific use	$ 259,677	$ 254,419
Less accumulated depreciation and amortization	(114,993)	(112,258)
Total property, plant, and equipment, net	144,684	142,161
Buildings
Property, Plant and Equipment [Line Items]
Capitalized manufacturing equipment for specific use	82,580	82,309
Leasehold improvement
Property, Plant and Equipment [Line Items]
Capitalized manufacturing equipment for specific use	23,392	23,392
Land
Property, Plant and Equipment [Line Items]
Capitalized manufacturing equipment for specific use	6,940	6,895
Machinery and equipment
Property, Plant and Equipment [Line Items]
Capitalized manufacturing equipment for specific use	109,689	108,442
Furniture, fixtures, and automobiles
Property, Plant and Equipment [Line Items]
Capitalized manufacturing equipment for specific use	14,209	13,439
Construction in progress
Property, Plant and Equipment [Line Items]
Capitalized manufacturing equipment for specific use	$ 22,867	$ 19,942

Property, Plant, and Equipmen52

Property, Plant, and Equipment (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Capitalized manufacturing equipment for specific use	$ 259,677	$ 254,419
Equipment | Primatene Mist HFA
Property, Plant and Equipment [Line Items]
Capitalized manufacturing equipment for specific use	$ 2,800

Debt (Schedule of Debt) (Detail

Debt (Schedule of Debt) (Details) $ in Thousands, € in Millions	Mar. 31, 2016USD ($)	Mar. 31, 2016EUR (€)	Dec. 31, 2015USD ($)
Debt Instrument
Total debt and capital leases	$ 40,269		$ 41,099
Less current portion of long-term debt and capital leases	11,177		10,934
Long-term debt and capital leases, net of current portion	29,092		30,165
Mortgage Payable - Due September 2016 | East West Bank
Debt Instrument
Long Term Debt	2,192		2,211
Equipment Loan - Due April 2017 | East West Bank
Debt Instrument
Long Term Debt	1,387		1,700
Equipment Loan Due January 2019 | East West Bank
Debt Instrument
Long Term Debt	4,363		4,748
Mortgage Payable - Due February 2021 | East West Bank
Debt Instrument
Long Term Debt	3,718		3,725
Acquisition Loan - Due April 2019 | Cathay Bank
Debt Instrument
Long Term Debt	18,535		19,012
Mortgage Payable - Due April 2021 | Cathay Bank
Debt Instrument
Long Term Debt	4,437		4,460
French Government Loan - Due March 2018 | Seine-Normandie Water Agency
Debt Instrument
Long Term Debt	31		46
French Government Loan - Due June 2020 | Seine-Normandie Water Agency
Debt Instrument
Long Term Debt	134		128
French Government Loan - Due July 2021 | Seine-Normandie Water Agency
Debt Instrument
Long Term Debt	340		325
Note Payable To Merck
Debt Instrument
Long Term Debt	4,119	€ 3.6	3,942
Capital Lease Obligations
Debt Instrument
Total debt and capital leases	$ 1,013		$ 802

Debt (Narrative) (Details)

Debt (Narrative) (Details) $ in Thousands, € in Millions	Jan. 05, 2015USD ($)	Jun. 01, 2014	Apr. 22, 2014USD ($)	Jul. 31, 2013	Mar. 05, 2007USD ($)	Mar. 31, 2016USD ($)item	Dec. 31, 2015USD ($)	Dec. 31, 2015EUR (€)	Jan. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2014EUR (€)	Apr. 30, 2014USD ($)	Mar. 31, 2013	Mar. 31, 2016USD ($)item	Apr. 30, 2016USD ($)	Mar. 31, 2016EUR (€)item	Jan. 31, 2016USD ($)building	Jan. 31, 2015EUR (€)item	Apr. 30, 2014EUR (€)	Jul. 05, 2013USD ($)	Mar. 15, 2013USD ($)	Apr. 10, 2012USD ($)	Mar. 31, 2012USD ($)	Mar. 05, 2012USD ($)	Dec. 31, 2010USD ($)item	Sep. 15, 2006USD ($)
Debt
Long-term Debt and Capital Lease Obligations						$ 29,092	$ 30,165							$ 29,092
Payment to Acquire Business, Gross						4,000								4,761
Mortgage Payable - Due September 2016 | East West Bank
Debt
Long Term Debt						2,192	2,211							2,192
Line of Credit Facility - Due September 2017 | East West Bank | Line of Credit
Debt
Line of Credit Facility, Maximum Borrowing Capacity						15,000								15,000									$ 10,000
Long-term Line of Credit						0								0
Mortgage Payable - Due February 2021 | East West Bank
Debt
Principal amount																	$ 3,700								$ 4,500
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid						3,300								3,300											$ 3,800
Debt Instrument, Interest Rate, Stated Percentage																	4.39%
Unrealized loss														(100)
Debt Instrument, Fair Value Disclosure						3,700								3,700
Long Term Debt						3,718	3,725							3,718
Equipment Loan - Due April 2017 | East West Bank
Debt
Principal amount																					$ 4,900
Line Of Credit Replaced By Equipment Loan																								$ 8,000
Long Term Debt						1,387	1,700							1,387
Equipment Loan - Due April 2017 | East West Bank | Prime Rate
Debt
Debt Instrument, Basis Spread on Variable Rate													0.25%
Equipment Loan Due January 2019 | East West Bank
Debt
Debt Instrument, Interest Rate, Stated Percentage	4.48%
Secured debt						4,400								4,400
Line Of Credit Replaced By Equipment Loan	$ 6,200
Long Term Debt						4,363	4,748							4,363
Equipment Loan Due January 2019 | East West Bank | Line of Credit
Debt
Line of Credit Facility, Maximum Borrowing Capacity																				$ 8,000
Proceeds from borrowing under lines of credit	$ 6,200
Equipment Loan Due January 2019 | East West Bank | Prime Rate | Line of Credit
Debt
Debt Instrument, Basis Spread on Variable Rate				0.25%
Equipment Credit Line Due September 2021 | East West Bank
Debt
Line of Credit Facility, Maximum Borrowing Capacity						$ 5,000								5,000
Draw down period, in months						18 months
Term of loan after draw down period expires, in months						48 months
Equipment Credit Line Due September 2021 | East West Bank | Subsequent Event
Debt
Long-term Line of Credit															$ 2,900
Mortgage Payable - Due April 2021 | Cathay Bank
Debt
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid						$ 3,900								$ 3,900
Debt Instrument, Interest Rate, Stated Percentage			5.42%
Debt Instrument, Frequency of Periodic Payment														monthly
Debt Instrument, Fair Value Disclosure						4,800								$ 4,800
Long-term Debt, Gross						4,400								4,400
Debt Instrument Replaced By Mortgage Loan					$ 5,300
Long Term Debt						4,437	4,460							4,437
Mortgage Payable - Due April 2021 | Cathay Bank | Scenario, Refinanced
Debt
Principal amount			$ 4,600
Line of Credit Facility - Due May 2016 | Cathay Bank | Revolving Credit Facility
Debt
Line of Credit Facility, Maximum Borrowing Capacity																						$ 20,000
Long-term Line of Credit						0								0
Acquisition Loan - Due April 2019 | Cathay Bank
Debt
Principal amount			$ 21,900
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid						12,000								$ 12,000
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						18,535	19,012							$ 18,535
French Government Loans | Seine-Normandie Water Agency
Debt
Principal amount									$ 700									€ 0.6
Number of Loans with Government Agency | item									3									3
Debt Instrument, Periodic Payment, Interest									$ 0
Notes Payable						500								500		€ 0.5
Note Payable To Merck
Debt
Principal amount												$ 16,000							€ 11.6
Debt Instrument, Term												4 years
Payment to Acquire Business, Gross							3,500	€ 3.2		$ 6,000	€ 4.9
Long Term Debt						4,119	3,942							4,119		€ 3.6
Capital Lease Obligations
Debt
Capital Leased Assets, Gross						1,700	1,500							1,700
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation						$ 800	$ 700							$ 800
Minimum | Mortgage Payable - Due February 2021 | East West Bank
Debt
Debt Instrument, Interest Rate, Stated Percentage																									5.00%
Minimum | Equipment Loan - Due April 2017 | East West Bank
Debt
Debt Instrument, Interest Rate, Stated Percentage						3.50%								3.50%		3.50%
Minimum | Line of Credit Facility - Due May 2016 | Cathay Bank | Revolving Credit Facility
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 | French Government Loans | Seine-Normandie Water Agency
Debt
Debt Instrument, Interest Rate, Stated Percentage						4.00%								4.00%		4.00%
Debt Instrument, Term									3 years
Minimum | Note Payable To Merck
Debt
Debt Instrument, Interest Rate, Stated Percentage						4.00%						3.00%		4.00%		4.00%			3.00%
Maximum | French Government Loans | Seine-Normandie Water Agency
Debt
Debt Instrument, Term									6 years
Rancho Cucamonga | Mortgage Payable - Due September 2016 | East West Bank
Debt
Principal amount																										$ 2,800
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid						$ 2,200								$ 2,200
Number of Buildings Securing Loan | item						1								1		1
Rancho Cucamonga | Mortgage Payable - Due September 2016 | East West Bank | LIBOR
Debt
Debt Instrument, Basis Spread on Variable Rate														2.50%
Rancho Cucamonga | Mortgage Payable - Due February 2021 | East West Bank
Debt
Number of Buildings Securing Loan																	1								1
Chino | Mortgage Payable - Due February 2021 | East West Bank
Debt
Number of Buildings Securing Loan | item																									1

Income Taxes (Summary of the Co

Income Taxes (Summary of the Company's Income Tax Provision) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2016
Income (loss) before taxes	$ 3,816	$ (6,197)
Income tax expense (benefit)	1,327	(5,532)
Net income (loss)	$ 2,489	$ (665)
Income tax expense (benefit) as a percentage of income (loss) before income taxes	34.80%	(89.30%)
Forecast
Income tax expense (benefit) as a percentage of income (loss) before income taxes			34.40%

Income Taxes (Valuation Allowan

Income Taxes (Valuation Allowance) (Details) € in Millions, $ in Millions	1 Months Ended		3 Months Ended
	Mar. 31, 2015USD ($)	Mar. 31, 2015EUR (€)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Apr. 30, 2014USD ($)	Apr. 30, 2014EUR (€)
Tax Credit Carryforward [Line Items]
Deferred Tax Assets, Valuation Allowance				$ 0.9
Increase to income tax expense due to losses in states from which the Company did not benefit from			$ 0.1
Intangible Deferred Tax Asset [Member]
Tax Credit Carryforward [Line Items]
Deferred Tax Assets, Valuation Allowance					$ 4.4	€ 3.2
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 3.3	€ 3.2

Stockholders' Equity (Summary o

Stockholders' Equity (Summary of the Changes in Stockholders' Equity) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stockholders’ equity at the beginning of period	$ 295,510
Net loss	2,489	$ (665)
Accumulated other comprehensive loss	436
Exercise of stock options	104
Repurchase of common stock	(1,083)
Purchase of treasury stock	(4,722)
Stockholders’ equity at the end of period	296,585
Nonemployee
Share-based compensation expense	453
Employee
Share-based compensation expense	$ 3,398

Stockholders' Equity (2014 Empl

Stockholders' Equity (2014 Employee Stock Purchase Plan) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jun. 30, 2014	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share base compensation		$ 3,851	$ 2,230
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)		124,380
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)		1,875,620
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)	2,000,000
Allocated share base compensation		$ 100	$ 100

Stockholders' Equity (Share Buy

Stockholders' Equity (Share Buyback Program) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Nov. 10, 2015	Nov. 06, 2014
Equity, Class of Treasury Stock [Line Items]
Treasury Stock, Value, Acquired, Cost Method	$ 4,722
November 2014 Share Repurchase Plan
Equity, Class of Treasury Stock [Line Items]
Stock buyback program, authorized amount		$ 10,000	$ 10,000
Treasury Stock, Shares, Acquired (in Shares)	398,600
Treasury Stock, Value, Acquired, Cost Method	$ 4,700

Stockholders' Equity (The 2015

Stockholders' Equity (The 2015 Equity Incentive Plan) (Details) - The 2015 Equity Incentive Plan - shares	3 Months Ended
	Mar. 31, 2016	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)	3,811,063	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	1,129,962

Stockholders' Equity (Key Assum

Stockholders' Equity (Key Assumptions Used in Determining Fair Value of Options Granted) (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stockholders' Equity
Average volatility	30.20%	27.50%
Risk-free interest rate	1.60%	1.30%
Weighted-average expected life in years	5 years 8 months 12 days	4 years 8 months 12 days
Dividend yield rate	0.00%	0.00%

Stockholders' Equity (Summary62

Stockholders' Equity (Summary of Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Options
Outstanding Options, Beginning of period	12,240,467
Options granted	2,225,900
Options exercised	(9,200)
Options cancelled	(15,235)
Options expired	(105,693)
Outstanding Options, End of period	14,336,239
Exercisable at the end of period	7,896,359
Weighted-Average Exercise Price
Outstanding Exercise Price (in dollars per share)	$ 15.41
Options granted (in dollars per share)	11.85
Options exercised (in dollars per share)	11.31
Options cancelled (in dollars per share)	14.03
Options expired (in dollars per share)	24.12
Outstanding Exercise Price (in dollars per share)	14.80
Exercisable at the end of period	$ 16.10
Additional Disclosures
Outstanding Contractual Term (in Years)	4 years 10 months 21 days
Outstanding Intrinsic Value	$ 3,670
Exercisable at the end of period (in Years)	3 years 5 months 9 days
Exercisable aggregate intrinsic value	$ 2,024
Allocated share base compensation	3,851	$ 2,230
Employee Stock Option
Additional Disclosures
Allocated share base compensation	$ 2,100	$ 1,600

Stockholders' Equity (Informati

Stockholders' Equity (Information Relating to Option Grants and Exercises) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stockholders' Equity
Weighted-average grant date fair value (in Dollars per share)	$ 3.37	$ 3.53
Intrinsic value of options exercised	$ 15	$ 189
Cash received	104	910
Total fair value of the options vested during the year	$ 3,259	$ 1,423

Stockholders' Equity (Summary64

Stockholders' Equity (Summary of Nonvested Options) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Options
Nonvested at beginning of period	5,202,095
Options granted	2,225,900
Options vested	(972,880)
Options forfeited	(15,235)
Nonvested at end of period	6,439,880
Weighted-Average Grant Date Fair Value
Nonvested at beginning of period (in dollars per share)	$ 3.44
Options granted (in dollars per share)	3.37	$ 3.53
Options vested (in dollars per share)	3.35
Options forfeited (in dollars per share)	4.89
Nonvested at end of period (in dollars per share)	$ 3.42

Stockholders' Equity (Deferred

Stockholders' Equity (Deferred Stock Units/Restricted Stock Units) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Contractual Term (in Years)	4 years 10 months 21 days
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years 8 months 12 days	4 years 8 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Allocated share base compensation	$ 3,851	$ 2,230
Employee Consultant And Directors Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 15,800
Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 7 months 6 days
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 base compensation	$ 1,400	500
Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 9 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Number of Shares of Common Stock Per Award (in Shares)	1
Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 13,300
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost	$ 0
2014 Employee Stock Purchase Plan
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)	1,875,620
Allocated share base compensation	$ 100	$ 100

Stockholders' Equity (Informa66

Stockholders' Equity (Information Relating to RSU Grants and Deliveries) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)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	866,540
RSUs granted	661,228
RSUs forfeited	(2,151)
RSUs surrendered for taxes	(90,550)
Common stock delivered for RSUs	(133,010)
Total RSUs outstanding at the end of the period	1,302,057
Restricted Stock Units Issued as Compensation
Total Fair Market Value of RSUs Issued
RSUs granted (in Dollars) | $	$ 7,492

Stockholders' Equity (Equity Aw

Stockholders' Equity (Equity Awards to Consultants (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share base compensation	$ 3,851	$ 2,230
Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share base compensation	$ 100

Stockholders' Equity (Share-Bas

Stockholders' Equity (Share-Based Compensation Expense Included in the Statement of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share base compensation	$ 3,851	$ 2,230
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share base compensation	799	488
Selling, distribution and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share base compensation	66	40
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share base compensation	2,646	1,490
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share base compensation	$ 340	$ 212

Employee Benefits (Details)

Employee Benefits (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Employee Benefits
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	50.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	4.00%
Defined Contribution Plan, Maximum Employer Matching Per Employee, Percent	2.00%
Defined Contribution Plan, Employer Contribution Vesting Period	4 years
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 0.2	$ 0.2
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	1.75%		1.75%
Defined Benefit Plan, Benefit Obligation	$ 1.7		$ 1.6

Commitments and Contingencies (

Commitments and Contingencies (Distribution Agreement with Allergan plc) (Details) - Distribution Agreement - Allergan plc - Enoxaparin - USD ($) $ in Millions	1 Months Ended
	Jan. 31, 2012	May. 31, 2005	Mar. 31, 2016	Dec. 31, 2015
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Proceeds from Customers		$ 4.5
Deferred Revenue	$ 4.5		$ 1.8	$ 2
Distribution Agreement With Corporate Partner, Renewal Option Period	3 years
Deferred Revenue, Period for Recognition	7 years

Commitments and Contingencies71

Commitments and Contingencies (Supply Agreement with MannKind Corporation) (Details) € in Millions, $ in Millions	Jul. 31, 2014USD ($)	Dec. 31, 2015USD ($)	Jul. 31, 2014EUR (€)
Supply Commitment [Line Items]
Sales		$ 20.8
MannKind Corporation | Supply Commitment | Recombinant Human Insulin
Supply Commitment [Line Items]
Supply commitment annual amount comitted	$ 146		€ 120.1
Deferred Revenue	$ 14		€ 11
Long-term Supply Commitment, Optional Renewal Period	2 years
Supply Agreement Renewal Notice Period	12 months
Termination notice period without cause	2 years
Termination notice period, change of regulatory approval	30 days
Payment period upon termination	60 days

Commitments and Contingencies72

Commitments and Contingencies (Collaboration Agreement) (Details) - Development agreement - Drug delivery system item in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)item
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative Agreement, Upfront Payment	$ 0.5
Collaborative Agreement, Milestone Payments	0.4
Collaborative Agreement, Contingent Obligation	$ 1.7
Collaborative Agreement, Contingent Purchase Obligation First 12 Months, Units | item	1
Purchase period	12 months

Commitments and Contingencies73

Commitments and Contingencies (Operating Lease Agreements) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 0.8	$ 0.8
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 Contingencies74

Commitments and Contingencies (Purchase Commitments) (Details) - USD ($) $ in Millions	1 Months Ended		3 Months Ended
	Nov. 30, 2012	Jan. 31, 2010	Mar. 31, 2016
Commitments to Purchase Equipment and Raw Materials
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Long-term Purchase Commitment, Amount			$ 17.5
Commitment to invest | ANP [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures			49
Contractual Obligation			61
Contractual Obligation, Due in Second Year			$ 12
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) $ in Millions	May. 09, 2016USD ($)	May. 06, 2016item	Apr. 07, 2015USD ($)	Sep. 30, 2011USD ($)patent
Enoxaparin Patent Litigation
Loss Contingencies [Line Items]
Number of Alleged Patent Infringements | patent				2
Litigation, Plaintiff Preliminary Injunction Bond, Amount				$ 100.1
Enoxaparin Patent Litigation | Subsequent Event
Loss Contingencies [Line Items]
Fees and costs relating to a discovery motion	$ 0.4
False Claims Act Litigation | Subsequent Event
Loss Contingencies [Line Items]
Number of orders issued by district court | item		3
Settled Litigation [Member] | Eva Hernandez vs International Medication Systems Limited
Loss Contingencies [Line Items]
Litigation Settlement, Amount			$ 3.2