Albireo Pharma (ALBO) 10-Q13 Aug 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Jun. 30, 2014	Aug. 06, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'Biodel Inc	'
Entity Central Index Key	'0001322505	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--09-30	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	22,691,696

Consolidated_Condensed_Balance

Consolidated Condensed Balance Sheets (USD $)	Jun. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Sep. 30, 2013
Current:	'	'
Cash and cash equivalents	$24,480	$39,781
Income taxes receivable	2	6
Grants receivable	227	26
Prepaid and other assets	394	264
Total current assets	25,103	40,077
Property and equipment, net	604	1,031
Intellectual property, net	41	43
Total assets	25,748	41,151
Current:	'	'
Accounts payable	374	246
Accrued expenses:	'	'
Clinical trial expenses	132	181
Payroll and related	991	1,139
Accounting and legal fees	170	226
Severance	31	255
Other	266	319
Income taxes payable	'	75
Total current liabilities	1,964	2,441
Common stock warrant liability	2,413	6,121
Other long term liabilities	'	26
Total liabilities	4,377	8,588
Commitments	'	'
Stockholders' equity:	'	'
Convertible Preferred stock, $.01 par value; 50,000,000 shares authorized, 1,950,000 and 1,950,000 issued and outstanding	19	19
Common stock, $.01 par value; 62,500,000 shares authorized; 21,070,824 and 21,119,722 issued and outstanding	211	211
Additional paid-in capital	248,414	247,761
Accumulated deficit	-227,273	-215,428
Total stockholders' equity	21,371	32,563
Total liabilities and stockholders' equity	$25,748	$41,151

Consolidated_Condensed_Balance1

Consolidated Condensed Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Balance Sheets [Abstract]	'	'
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	1,950,000	1,950,000
Preferred stock, shares outstanding	1,950,000	1,950,000
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	62,500,000	62,500,000
Common stock, shares issued	21,119,722	21,070,824
Common stock, shares outstanding	21,119,722	21,070,824

Consolidated_Condensed_Stateme

Consolidated Condensed Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
Revenue	'	'	'	'
Operating expenses:	'	'	'	'
Research and development	3,628	3,474	11,626	11,115
Government grant	-227	-25	-531	-249
General and administrative	1,348	1,768	4,475	5,371
Total operating expenses	4,749	5,217	15,570	16,237
Other (income) and expense:	'	'	'	'
Interest and other income	-11	-11	-40	-39
Adjustment to fair value of common stock warrant liability	-1,548	4,431	-3,708	2,319
Loss before tax provision (benefit)	-3,190	-9,637	-11,822	-18,517
Tax provision (benefit)	14	-6	23	3
Net loss	($3,204)	($9,631)	($11,845)	($18,520)
Net loss per share - basic and diluted	($0.15)	($0.66)	($0.56)	($1.29)
Weighted average shares outstanding - basic and diluted	21,118,375	14,573,110	21,100,903	14,311,875

Consolidated_Condensed_Stateme1

Consolidated Condensed Statements of Stockholders' Equity (USD $)	Total	Common Stock $.01 Par Value	Series A Preferred stock	Series B Preferred stock	Additional Paid in Capital	Accumulated Deficit during the Development Stage
In Thousands, except Share data	Total	Common Stock $.01 Par Value	Series A Preferred stock	Series B Preferred stock	Additional Paid in Capital	Accumulated Deficit during the Development Stage
Balance at Sep. 30, 2013	$32,563	$211	'	$19	$247,761	($215,428)
Balance (in shares) at Sep. 30, 2013	'	21,070,824	'	1,950,000	'	'
Expenses of ATM	-55	'	'	'	-55	'
Stock-based compensation	645	'	'	'	645	'
Proceeds from the sale of stock-ESPP	15	'	'	'	15	'
Proceeds from the sale of stock-ESPP (in shares)	'	8,189	'	'	'	'
Stock options exercised	48	'	'	'	48	'
Stock options exercised (in shares)	19,241	19,241	'	'	'	'
RSUs converted to common stock	'	'	'	'	'	'
RSUs converted to common stock (in shares)	'	21,468	'	'	'	'
Net loss	-11,845	'	'	'	'	-11,845
Balance at Jun. 30, 2014	$21,371	$211	'	$19	$248,414	($227,273)
Balance (in shares) at Jun. 30, 2014	'	21,119,722	'	1,950,000	'	'

Consolidated_Condensed_Stateme2

Consolidated Condensed Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($11,845)	($18,520)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	462	484
Stock-based compensation for employees and directors	645	1,216
Adjustment to fair value of common stock warrant liability	-3,708	2,319
(Increase) decrease in:	'	'
Income taxes receivable	4	16
Grants receivable	-201	64
Other receivables	'	8
Prepaid expenses and other assets	-130	-393
Increase (decrease) in:	'	'
Accounts payable	128	-45
Income taxes payable	-75	-26
Accrued expenses and long term liabilities	-557	-93
Total adjustments	-3,432	3,550
Net cash used in operating activities	-15,277	-14,970
Cash flows from investing activities:	'	'
Purchase of property and equipment	-32	-87
Net cash used in investing activities	-32	-87
Cash flows from financing activities:	'	'
Options exercised	48	75
Net proceeds from employee stock purchase plan	15	30
Net proceeds from sale of common stock	'	18,284
Net expenses of ATM	-55	'
Net cash provided by financing activities	8	18,389
Net increase (decrease) in cash and cash equivalents	-15,301	3,332
Cash and cash equivalents, beginning of period	39,781	39,050
Cash and cash equivalents, end of period	24,480	42,382
Cash paid for interest and income taxes was:	'	'
Income taxes	$19	$12

Business_and_Basis_of_Presenta

Business and Basis of Presentation	9 Months Ended
Business and Basis of Presentation	Jun. 30, 2014
Business and Basis of Presentation [Abstract]	'
Business and Basis of Presentation	'
	1. Business and Basis of Presentation

	Business

	Biodel Inc. and its wholly owned subsidiary (collectively, "Biodel" or the "Company", and formerly Global Positioning Group Ltd.) is a specialty pharmaceutical company which focuses on the development and commercialization of innovative treatments for diabetes that may be safer, more effective and more convenient for patients.

	Currently, the Company is developing room temperature stable glucagon presentations for use as a rescue treatment for diabetes patients experiencing severe hypoglycemia. The Company is also developing proprietary insulin formulations that are designed to be more rapid-acting than the formulations currently available to Type 1 and Type 2 diabetes patients.

	The Company is in the process of raising additional equity capital to support the completion of its development and commercialization of its innovative treatments for diabetes.

	The Company's activities are subject to significant risks and uncertainties, including failing to secure additional funding before another company develops similar treatments for patients with diabetes.

	Basis of Presentation

	The consolidated financial statements have been prepared by the Company and are unaudited. These consolidated financial statements include Biodel UK Limited. This subsidiary has been inactive since its inception. All intercompany balances and transactions have been eliminated. In the opinion of management, the Company has made all adjustments (consisting of normal recurring accruals) necessary to fairly present the financial position and results of operations for the interim periods presented. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP") have been consolidated or omitted. These consolidated financial statements should be read in conjunction with the September 30, 2013 audited financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2013, filed with the Securities and Exchange Commission on December 20, 2013. The results of operations for the three and nine months ended June 30, 2014 are not necessarily indicative of the operating results for the full fiscal year or any other interim period.

	Recent Accounting Pronouncements

	In June 2014, the FASB issued ASU No. 2014-10, to eliminate the concept of a development stage entity (DSE) from U.S. GAAP, effective for interim periods and years beginning after December 15, 2014. The issuance of ASU No. 2014-10 rescinds certain financial reporting requirements that have historically applied to DSEs, such as inception-to-date information in the statements of income, cash flows, and shareholder equity. Additionally, the financial statements no longer need to be labeled as those of a DSE. ASU No. 2014-10 was early adopted and the adoption of this standard did not have a material effect on the Company's financial statements.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	9 Months Ended
Fair Value of Financial Instruments	Jun. 30, 2014
Fair Value of Financial Instruments [Abstract]	'
Fair Value Measurements	'
	2. Fair Value of Financial Instruments

	The carrying amounts of the Company's financial instruments, which include cash and cash equivalents, grants receivable and accounts payable, approximate their fair values due to their short term maturities.

	ASC Topic 820 ("ASC 820", originally issued as SFAS No. 157, Fair Value Measurements) applies under other accounting pronouncements that require or permit fair value measurements, the FASB having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, ASC 820 does not require any new fair value measurements. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. The three levels of inputs used are as follows:

	Level 1 — Quoted prices in active markets for identical assets or liabilities.




	Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

	Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

	As of September 30, 2013 and June 30, 2014, the Company had assets and liabilities that fell under the scope of ASC 820. The Company used the Black-Scholes valuation model to determine the fair value of the Company's warrant liability as of September 30, 2013 and June 30, 2014 for the warrants issued in the May 2011 and June 2012 financings (as defined in Note 7). The Black-Scholes valuation model takes into account, as of the valuation date, factors including the current exercise price, the life of the warrant, the current price of the underlying stock and its expected volatility, expected dividends on the stock, and the risk-free interest rate for the term of the warrant. Accordingly, the Company's fair value measurements of its cash and cash equivalents are classified as a Level 1 input and the warrant liability as a Level 3 input.

	The fair value of the Company's financial assets and liabilities carried at fair value and measured on a recurring basis are as follows:



		Description		Fair Value at			Quoted Prices in		Significant Other		Significant
				30-Jun-14			Active Markets for		Observable		Unobservable
							Identical Assets		Market Inputs		Inputs
							(Level 1)		(Level 2)		(Level 3)
		Assets:
		Cash and cash equivalents	$	24,480		$	24,480	$	—	$	—
		Subtotal		24,480			24,480		—		—

		Liabilities:
		Common stock warrant liability (see Note 7)		(2,413	)		—		—		(2,413	)
		Subtotal		(2,413	)		—		—		(2,413	)
		Total	$	22,067		$	24,480	$	—	$	(2,413	)



		Description		Fair Value at			Quoted Prices in		Significant Other		Significant
				30-Sep-13			Active Markets for		Observable		Unobservable
							Identical Assets		Market Inputs		Inputs
							(Level 1)		(Level 2)		(Level 3)
		Assets:
		Cash and cash equivalents	$	39,781		$	39,781	$	—	$	—
		Subtotal		39,781			39,781		—		—

		Liabilities:
		Common stock warrant liability (see Note 7)		(6,121	)		—		—		(6,121	)
		Subtotal		(6,121	)		—		—		(6,121	)
		Total	$	33,660		$	39,781	$	—	$	(6,121	)

	The Company recognizes transfers into and out of the levels indicated above on the actual date of the event or change in circumstances that caused the transfer of change. All changes within Level 3 can be found in the following Level 3 reconciliation table below:



		Balance at September 30, 2013	$	(6,121	)
		Decrease in fair value of common stock warrant liability		3,708
		Balance at June 30, 2014	$	(2,413	)



	The unrealized gains or losses on the derivative liabilities are recorded as an adjustment to fair value of common stock warrant liability in the Company's statement of operations. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At each reporting period, the Company reviews the assets and liabilities that are subject to ASC Topic 815-40. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs or instruments which trade infrequently and therefore have little or no price transparency are classified as Level 3.

PreLaunch_Inventory

Pre-Launch Inventory	9 Months Ended
Pre-Launch Inventory	Jun. 30, 2014
Pre-Launch Inventory [Abstract]	'
Pre-Launch Inventory	'
	3. Pre-Launch Inventory

	Inventory costs associated with product candidates that have not yet received regulatory approval are capitalized if the Company believes there is probable future commercial use and future economic benefit. If the probability of future commercial use and future economic benefit cannot be reasonably determined, then pre-launch inventory costs associated with such product candidates are expensed as research and development expense during the period the costs are incurred. Because all of its product candidates are in early stages of preclinical or clinical development, the Company currently expenses all purchases of pre-launch inventory as research and development, and expects to continue to do so until it can determine the probability of regulatory approval for the applicable product candidate.

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Jun. 30, 2014
Stock-Based Compensation [Abstract]	'
Stock-Based Compensation	'
	4. Stock-Based Compensation

	In March 2013, the Company's stockholders approved an amendment to and restatement of the Company's 2010 Stock Incentive Plan (as amended and restated the "2010 Plan"). The 2010 Plan replaced the Company's 2004 Stock Incentive Plan and 2005 Non-Employee Directors Stock Option Plan. Stock options are granted at an exercise price equal to the Company's closing stock price on the date of the grant. Stock options vest over a period of up to four years with a contractual life of seven years. The Company estimates the fair value using the Black-Scholes pricing model. The Company uses the following assumptions in its Black Scholes valuation calculations:

	Risk-free rate - The Company uses interest rates based on the yield of US Treasury strips on the date the award is granted and the expected term of the award.

	Forfeitures - The Company estimates forfeitures based on actual historical and estimated future forfeitures.

	Dividends - The Company has assumed that dividends will not be paid.

	Volatility - The Company uses its historical volatility.

	Expected term - The expected option term represents the period that stock based awards are expected to be outstanding based on the simplified method provided in Staff Accounting Bulletin ("SAB") No. 107, Share-Based Payment, ("SAB No. 107"), which averages an award's weighted-average vesting period and expected term for "plain vanilla" share options. Under SAB No. 107, options are considered to be "plain vanilla" if they have the following basic characteristics: (i) granted "at-the money"; (ii) exercisability is conditioned upon service through the vesting date; (iii) termination of service prior to vesting results in forfeiture; (iv) limited exercise period following termination of service; and (v) options are non-transferable and non-hedgeable.

	In December 2007, the SEC issued SAB No. 110, Share-Based Payment, ("SAB No. 110"). SAB No. 110 was effective January 1, 2008 and expresses the views of the Staff of the SEC with respect to extending the use of the simplified method, as discussed in SAB No. 107, in developing an estimate of the expected term of "plain vanilla" share options in accordance with ASC Topic 718. The Company will continue to use the simplified method until it has the historical data necessary to provide a reasonable estimate of expected life in accordance with SAB No. 107, as amended by SAB No. 110. For the expected term, the Company has "plain-vanilla" stock options, and therefore used a simple average of the vesting period and the contractual term for options granted subsequent to January 1, 2006 as permitted by SAB No. 107.The Company expenses ratably over the vesting period the cost of the stock options granted to employees and non-employee directors. The total stock based compensation cost for the three and nine months ended June 30, 2014 which included stock based compensation charges related to the Company's 2005 Employee Stock Purchase Plan and RSU's was $135 and $645, respectively. In comparison, the total compensation cost for the three and nine months ended June 30, 2013 was $326 and $1,216, respectively.

	At June 30, 2014, the total compensation cost related to non-vested options not yet recognized was $1,283, which will be recognized over the next four years assuming the employees complete their service period for vesting of the options.

	The following table summarizes the stock option activity during the nine months ended June 30, 2014:
		Number				Weighted		Weighted			Aggregate
						Average		Average			Intrinsic
						Exercise		Remaining			Value
						Price		Contractual
								Life in Years
	Outstanding options, September 30, 2013		1,920,051			$	22.26		4		$	445
	Granted		1,267,000				2.41					—
	Exercised		(19,241	)			2.48				$	10
	Forfeited, expired		(582,650	)			14.69					—
	Outstanding options, June 30, 2014		2,585,160			$	14.39		4			—

	Exercisable options, June 30, 2014		1,302,178			$	26.18		3			—

	The Black-Scholes pricing model assumptions for the three and nine months ended June 30, 2013 and 2014 are determined as discussed below:

			Three Months Ended						Nine Months Ended
			June 30,						June 30,
			2013				2014		2013			2014
	Expected life (in years)		4.75				—		2.39 - 4.75			3.77 - 4.75
	Expected volatility		91	%			—		80 - 91	%		70 - 83	%
	Expected dividend yield		0	%			—		0	%		0	%
	Risk-free interest rate		0.39	%			—		0.25 - 0.75	%		0.58 - 0.78	%
	Weighted average grant date fair value	$	1.89				—	$	2.34		$	2.41

	Restricted Stock Units

	The Company grants restricted stock units ("RSUs") to executive officers and employees pursuant to the 2010 Plan from time to time. There is no direct cost to the recipients of RSUs, except for any applicable taxes.

	Each RSU award that was granted to the Company's executive officers and employees represents one share of common stock. Each year following the annual vesting date, between January 1st and March 15th, the Company will issue common stock for each vested RSU. During the period when the RSU is vested but not distributed, the RSUs cannot be transferred and the grantee has no voting rights. If the Company declares a dividend, RSU recipients will receive payment based upon the percentage of RSUs that have vested prior to the date of declaration. The costs of the awards, determined as the fair market value of the shares on the grant date, are expensed per the vesting schedule outlined in the award.

	Based on historical experience of option cancellations, the Company has estimated an annualized forfeiture rate of 10%. Forfeiture rates will be adjusted over the requisite service period when actual forfeitures differ, or are expected to differ, from the estimate.

	The stock-based compensation expense associated with the RSUs has been recorded in the statement of operations and in additional paid-in-capital on the balance sheets as follows:

			Three Months Ended						Nine Months Ended
			June 30,						June 30,
			2013				2014		2013			2014
	Stock compensation expense — RSUs	$	76			$	0	$	275		$	54

	As June 30, 2014, all of the stock-based compensation expense related to RSU awards granted under the 2004 Stock Incentive Plan and the 2010 Plan has been recognized. The following table summarizes RSU activity from October 1, 2013 through June 30, 2014:

		Shares				Weighted
						Average
						Grant-Date
Fair Value
Non-vested and outstanding balance at October 1, 2013			31,296			$	10.48
Changes during the period:
RSUs granted		—				—
RSUs converted to common stock		(21,468	)			10.48
RSUs withheld for tax payments		(9,828	)			10.48
Non-vested and outstanding RSU balance at June 30, 2014		—			$	—

2005 Employee Stock Purchase Plan

The Company's 2005 Employee Stock Purchase Plan (the "Purchase Plan") was adopted by its board of directors and approved by its stockholders on March 20, 2007. The Purchase Plan became effective upon the closing of the Company's initial public offering. The Purchase Plan is intended to qualify as an employee stock purchase plan within the meaning of Section 423 of the Internal Revenue Code.

Under the Purchase Plan, eligible employees may contribute up to 15% of their eligible earnings for the period of that offering withheld for the purchase of common stock under the Purchase Plan. The employee's purchase price is equal to the lower of: 85% of the fair market value per share on the start date of the offering period in which the employee is enrolled or 85% of the fair market value per share on the semi-annual purchase date. The Purchase Plan imposes a limitation upon a participant's right to acquire common stock if immediately after the purchase the employee would own 5% or more of the total combined voting power or value of the Company's common stock or of any of its affiliates. The Purchase Plan provides for an automatic rollover when the purchase price for a new offering period is lower than previously established purchase price(s). The Purchase Plan also provides for a one-time election that allows an employee the opportunity to enroll into a new offering period when the new offering is higher than their current offering price. This election must be made within 30 days from the start of a new offering period. Offering periods are twenty-seven months in length. The compensation charge in connection with the Purchase Plan for the three and nine months ended June 30, 2014 was $2 and $3, respectively. In comparison, for the three and nine months ended June 30, 2013, the Company expensed $8 and $1, respectively.

An aggregate of 500,000 shares of common stock are reserved for issuance pursuant to purchase rights to be granted to the Company's eligible employees under the Purchase Plan. The Purchase Plan shares are replenished annually on the first day of each calendar year by virtue of an evergreen provision. The provision allows for share replenishment equal to the lesser of 1% of the total number of shares of common stock outstanding on that date or 25,000 shares. As of June 30, 2013 and 2014, a total of 366,926 and 383,737 shares, respectively, were reserved and available for issuance under the Purchase Plan. As of June 30, 2013 and 2014, the Company has issued 108,074 and 116,263 shares, respectively, under the Purchase Plan.

Income_Taxes

Income Taxes	9 Months Ended
Income Taxes	Jun. 30, 2014
Income Taxes [Abstract]	'
Income Taxes	'
	5. Income Taxes

	The Company accounts for income taxes under FASB ASC 740-10-25 ("ASC 740-10-25"), Accounting for Income Taxes. Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company files U.S. federal and state tax returns and has determined that its major tax jurisdictions are the United States and Connecticut. The tax years ended in 2010 through 2013 remain open and subject to examination by the appropriate governmental agencies in the United States and Connecticut.

	Section 382 of the Internal Revenue Code imposes limitations on the use of U.S. federal net operating losses ("NOLs") upon a greater than 50% change in ownership in the Company within the three-year period preceding the date of ownership change. The Company's NOLs will continue to be available to offset taxable income (until such NOLs are either used or expire) subject to the Section 382 annual limitation. If the Section 382 annual limitation amount is not fully utilized in a particular tax year, then the unused portion from that particular tax year will be added to the Section 382 annual limitation in subsequent years. The Company has determined that ownership change, under Section 382, occurred as a result of the May 2011financing and therefore, the ability to utilize its current NOLs is further limited.

	The Company has approximately $58 million of NOLs at the end of the prior fiscal year, which, if not used, expire beginning in 2024 through 2033.

	The Company's effective tax rate for the three and nine months ended June 30, 2013 and 2014 was 0% and differs from the federal statutory rate of 34% primarily due to the effects of state income taxes and a full valuation allowance offsetting its deferred tax assets.

Net_Loss_per_Share

Net Loss per Share	9 Months Ended
Net Loss per Share	Jun. 30, 2014
Net Loss Per Share [Abstract]	'
Net Loss per Share	'
	6. Net Loss per Share

	Basic and diluted net loss per share has been calculated by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the period. All potentially dilutive common shares have been excluded from the calculation of weighted average common shares outstanding, as their inclusion would be anti-dilutive.

	The amount of options, common shares underlying warrants, common shares issuable upon conversion of preferred stock and RSUs excluded are as follows:



			June 30,		June 30,
			2013	2014	2013	2014
		Common shares underlying warrants issued for common stock	5,006,398	5,006,398	5,006,398	5,006,398
		Common shares issuable upon conversion of Series A Preferred Stock	453,486	—	453,486	—
		Common shares issuable upon conversion of Series B Preferred Stock	3,428,643	1,950,000	3,428,643	1,950,000
		Stock options	1,929,676	2,585,160	1,929,676	2,585,160
		Restricted stock units outstanding	31,302	—	31,302	—

Financings

Financings	9 Months Ended
	Jun. 30, 2014
Financing [Abstract]	'
Financings	'
	7. Financings

	June 2013 Public Offering

	On June 24, 2013, the Company completed an underwritten public offering of 4,482,760 shares of its common stock at a price to the public of $4.35 per share. On July 22, 2013, the Company issued 236,007 additional shares of common stock, at the public offering price of $4.35 per share, in connection with the underwriters' exercise of a portion of their over-allotment option. The Company received net proceeds from this offering, after deducting underwriting discounts, commissions and expenses, of $19.3 million, of which $18.3 million was received and recorded in June 2013 and $1.0 million was received and recorded in July 2013.

	June 2012 Private Placement

	In June 2012, the Company completed a private placement (the "2012 Private Placement") of an aggregate of 4,250,020 shares of the Company's common stock, 3,605,607 shares of the Company's Series B Convertible Preferred Stock and warrants to purchase an aggregate of 2,749,469 shares of common stock at an exercise price of $2.66 per share. For each unit consisting of either a share of common stock or Series B Preferred Stock and a warrant to purchase 0.35 of a share of common stock, the purchasers in the June 2012 Private Placement paid a negotiated price of $2.355. The warrants are immediately exercisable and will expire on June 26, 2017, five years from the original issuance date of June 27, 2012. The Company received net proceeds, after deducting placement agents' fees and other transaction expenses, of approximately $17,100 from the 2012 Private Placement. Each share of Series B Preferred Stock is convertible into one share of the Company's common stock at any time at the option of the holder, except that the securities purchase agreement that the Company entered into in connection with the 2012 Private Placement (the "Securities Purchase Agreement") provides that a holder will be prohibited from converting shares of Series B Preferred Stock into shares of common stock if, as a result of such conversion, such holder, together with its affiliates, would beneficially own more than 9.98% of the total number of shares of common stock then issued and outstanding. In the event of the Company's liquidation, dissolution or winding up, holders of the Series B Preferred Stock will receive a payment equal to $0.01 per share of Series B Preferred Stock before any proceeds are distributed to the holders of common stock. After the payment of this preferential amount, and subject to the rights of holders of any class or series of capital stock specifically ranking by its terms senior to the Series B Preferred Stock, holders of Series B Preferred Stock will participate ratably in the distribution of any remaining assets with the common stock and any other class or series of capital stock that participates with the common stock in such distributions. Shares of Series B Preferred Stock will generally have no voting rights, except as required by law and except that the consent of the holders of a majority of the outstanding Series B Preferred Stock will be required to amend the terms of the Series B Preferred Stock. Holders of Series B Preferred Stock are entitled to receive, and the Company is required to pay, dividends on shares of the Series B Preferred Stock equal (on an as-if-converted-to-common-stock basis) to and in the same form as dividends (other than dividends in the form of common stock) actually paid on shares of the common stock when, as and if such dividends (other than dividends in the form of common stock) are paid on shares of the common stock.

	As required by the Securities Purchase Agreement, the Company filed a Registration Statement on Form S-3 (the "Registration Statement") with the Securities and Exchange Commission (the "SEC") on July 27, 2012, which was within 30 days after the closing of the 2012 Private Placement. The Registration Statement, which was declared effective on August 13, 2012, registers the resale of the shares of common stock and Series B Preferred Stock issued and sold in the 2012 Private Placement, the shares of common stock issuable upon conversion of the Series B Preferred Stock issued and sold in the 2012 Private Placement, and the shares of common stock issuable upon exercise of the warrants issued and sold in the 2012 Private Placement. Pursuant to the terms of the Securities Purchase Agreement, the Company agreed to pay liquidated damages to the purchasers in the 2012 Private Placement if, after effectiveness of the Registration Statement and subject to certain specified exceptions, the Company suspends the use of the Registration Statement or the Registration Statement ceases to remain continuously effective as to all the securities for which it is required to be effective (each such event, a "Registration Default"). Subject to specified exceptions, for each 30-day period or portion thereof during which a Registration Default remains uncured, the Company is obligated to pay liquidated damages to each purchaser in cash in an amount equal to 1.0% of the aggregate purchase price paid by each such purchaser in the 2012 Private Placement, up to a maximum of 8.0% of such aggregate purchase price. As of the date of these financial statements, the Company does not believe that it is probable that it will be obligated to pay any such liquidated damages. Accordingly, the Company has not established an accrual for liquidated damages.

	In the event that the Company enters into a merger or change of control transaction, the holders of the warrants issued in the 2012 Private Placement will be entitled to receive consideration as if they had exercised the warrants immediately prior to such transaction, or they may require the Company to purchase the unexercised warrants at the Black-Scholes value (as defined in the warrant) of the warrant on the date of such transaction. The holders have up to 30 days following any such transaction to exercise this right. As a result of this provision, the Company recognizes the warrants as liabilities at their fair value on each reporting date.

	At June 30, 2014, the fair value of the warrant liability determined utilizing the Black-Scholes valuation model was approximately $2,342. In comparison, the fair value of the warrant liability at September 30, 2013 was $4,958.

	During the three and nine months ended June 30, 2014, the Company recorded an adjustment to fair value of common stock warrant liability of $(1,258) and $(2,616) respectively, within Other (income)/expense, to reflect a decrease in the valuation of the warrants from September 30, 2013 to June 30, 2014.

	The following summarizes the changes in value of the warrant liability from September 30, 2013 through June 30, 2014:

	Balance at September 30, 2013	$	4,958
	Decrease in fair value of common stock warrant liability		(2,616	)
	Balance at June 30, 2014	$	2,342

	May 2011 Registered Direct Offering


	In May 2011, the Company completed a registered direct offering (the "May 2011 Offering") of an aggregate of 3,018,736 shares of the Company's common stock, 1,813,944 shares of the Company's Series A Preferred Stock and warrants to purchase 2,256,929 shares of the Company's common stock. The shares and warrants were sold in units consisting of (i) one share of common stock and (ii) one warrant to purchase 0.1625 of a share of common stock, at an exercise price of $9.92 per share of the Company's common stock. However, one investor also purchased units consisting of one share of Series A Preferred Stock and a warrant to purchase 0.1625 of a share of common stock. No fractional warrants were issued. Each unit was sold at a price of $8.64 per unit. These units were not issued or certificated. The shares and warrants were immediately separated. The warrants will expire on May 17, 2016, five years from the original issuance date of May 18, 2011. The Company received net proceeds, after deducting placement agents' fees and other offering expenses, of approximately $28,000 from the May 2011 Offering. The shares of Series A Preferred Stock issued in the May 2011 Offering have been converted into an aggregate of 453,483 shares of common stock. In the event that the Company enters into a merger or change of control transaction, the holders of the warrants issued in the May 2011 Offering will be entitled to receive consideration as if they had exercised the warrants immediately prior to such transaction, or they may require the Company to purchase the unexercised warrants at the Black-Scholes value (as defined in the warrant) of the warrant on the date of such transaction. As per terms of the warrant, the holders have up to 30 days following any such transaction to exercise this right. As a result of this provision, the Company recognizes the warrants as liabilities at their fair value on each reporting date.

	At June 30, 2014, the fair value of the warrant liability determined utilizing the Black-Scholes valuation model was approximately $71. In comparison, the fair value of the warrant liability at September 30, 2013 was $1,163.

	During the three and six months ended June 30, 2014, the Company recorded an adjustment to fair value of common stock warrant liability of $(290) and $(1,092), respectively, within Other (income)/expense, to reflect a decrease in the valuation of the warrants from September 30, 2013 to June 30, 2014.

	The following summarizes the changes in value of the warrant liability from September 30, 2013 through June 30, 2014:


	Balance at September 30, 2013	$	1,163
	Decrease in fair value of common stock warrant liability		(1,092	)
	Balance at June 30, 2014	$	71

	Fair Value Assumptions Used in Accounting for Warrant Liability

	The Company has determined its warrant liability to be a Level 3 fair value measurement and used the Black-Scholes valuation model to calculate, as of June 30, 2014, the fair value of the warrants issued in the June 2012 Private Placement and the May 2011 Offering.

	As of June 30, 2014, the Company estimated such fair value using the following assumptions:

	June 2012 Financing		30-Jun-14
	Stock price	$	2.16
	Exercise price	$	2.66
	Risk-free interest rate		0.88	%
	Expected remaining term		2.99
	Expected volatility		76	%
	Dividend yield		—
	Warrants outstanding		2,749,469


	May 2011 Offering		30-Jun-14
	Stock price	$	2.16
	Exercise price	$	9.92
	Risk-free interest rate		0. 47	%
	Expected remaining term		1.88
	Expected volatility		60	%
	Dividend yield		—
Warrants outstanding		2,256,929

Risk-Free Interest Rate. This is the United States Treasury rate for the measurement date having a term equal to the expected remaining term of the warrant. An increase in the risk-free interest rate will increase the fair value and the associated derivative liability.

Term of Warrants. This is the period of time over which the warrant is expected to remain outstanding and is based on management's estimate, taking into consideration the remaining contractual life.

Expected Volatility. This is a measure of the amount by which the stock price has fluctuated or is expected to fluctuate. The Company uses a weighted-average of its historic volatility over the retrospective period corresponding to the expected remaining term of the warrants on the measurement date. An increase in the expected volatility will increase the fair value and the associated derivative liability.

Dividend Yield. The Company has not made any dividend payments nor does it have plans to pay dividends in the foreseeable future. An increase in the dividend yield will decrease the fair value and the associated derivative liability.

Participating Securities

If at any time the Company grants, issues or sells securities or other property to holders of any class of common stock, the holders of the warrants are entitled to also acquire those same securities as if they held the number of shares of common stock acquirable upon complete exercise of the warrants.

As such, given that the warrant holders will participate fully on any dividends or dividend equivalents, the Company determined that the warrants are participating securities and therefore are subject to ASC 260-10-55 earnings per share. These securities were excluded from the three and nine months ended June 30, 2013 and June 30, 2014 loss per share calculation since their inclusion would be anti-dilutive.

Commitments

Commitments	9 Months Ended
Commitments	Jun. 30, 2014
Commitments [Abstract]	'
Commitments	'
	8. Commitments

	Leases

	As of June 30, 2014, the Company leased three facilities in Danbury, Connecticut.

	The Company renewed its lease for laboratory space in November 2013 for one year. This lease provides for annual basic lease payments of $68, plus the annual Consumers Price Index ("CPI") increase for October, not to exceed 6%, plus operating expenses.

	The Company also renewed its lease agreement for additional office space adjacent to its laboratory space in November 2013 for one year. This lease provides for annual basic lease payments of $31, plus the annual CPI increase for October, not to exceed 6%, plus operating expenses.

	In November 2013, the Company renewed its lease for its corporate office for five years. This lease provides for annual basic lease payments of $388, plus the annual CPI increase for May, not to exceed 6%, plus operating expenses.

	Rent expense for the three and nine months ended June 30, 2014, was $165 and $476, respectively. In comparison, rent expense for the three and nine months ended June 30, 2013, was $164 and $481, respectively.

	Other Commitments

	The Company has entered into certain licensing and collaboration agreements for products currently under development. The Company may be obligated in future periods to make additional payments, which would become due and payable only upon the achievement of certain research and development, regulatory, and approval milestones. The specific timing of such milestones cannot be predicted and depend upon future discretionary research and clinical developments, as well as, regulatory agency actions. Further, under the terms of certain agreements the Company may be obligated to pay commercial milestones contingent upon the realization of sales revenues and sublicense revenues. Due to the long range nature of such commercial milestones, they are neither probable at this time nor predictable, and consequently are not considered contingent milestone payment amounts.

Government_Grants

Government Grants	9 Months Ended
Government Grants	Jun. 30, 2014
Government Grants [Abstract]	'
Government Grants	'
	9. Government Grants

	Grants received are recognized as grant income when the grants become receivable, provided there is reasonable assurance that the Company will comply with the conditions attached to the grant and there is reasonable assurance the grant will be received. The Company requests cash funding under approved grants as expenses are incurred (not in advance) and reports these receipts on the statement of operations as a separate line item entitled "Government Grants." The corresponding expenses are included in research and development expenses. In July and September 2012, the Company was awarded two National Institutes of Health grants for the development of a concentrated ultra-rapid-acting insulin formulation and a stable glucagon formulation, respectively, for use in an artificial pancreas. Both awards are for two years and total approximately $582 and $583, respectively.

	Work on the grant for the development of a concentrated ultra-rapid-acting insulin formulation started in August 2012 and completed in June 2014. Expenses incurred were $69 and $167, respectively for the three and nine months ended June 30, 2014 and $0 and $203, respectively, for the three and nine months ended June 30, 2013. As of June 30, 2014 the Company has recorded a grant receivable in the amount of $69.

	Work on the grant for the stable glucagon formulation started in January 2013 and completed in June 2014. Expenses incurred were $158 and $364 respectively, for the three and nine months ended June 30, 2014 and $25 and $46, respectively, for the three and nine months ended June 30, 2013. As of June 30, 2014, the Company has recorded a grant receivable in the amount of $158.

	The Company reported grant income of $227 and $531 respectively, for the three and nine months ended June 30, 2014. In comparison, the Company reported grant income of $25 and $249 respectively, for the three and nine months ended June 30, 2013. As of June 30, 2014, all grant income was earned and recorded.

Subsequent_Events

Subsequent Events	9 Months Ended
Subsequent Events	Jun. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	10. Subsequent Events

	In May 2013, the Company entered into an At-the-Market Issuance Sales Agreement (the "Sales Agreement") with MLV & Co. LLC ("MLV"), under which the Company may initially issue and sell shares of common stock having aggregate sales proceeds of up to $14 million from time to time through MLV as the Company's sales agent. As of June 30, 2014, the Company had not issued any shares pursuant to the Sales Agreement. During the period from July 1 through July 31, 2014, the Company sold an aggregate of 1,476,974 shares of common stock pursuant to the Sales Agreement and received proceeds, net of sales agent commissions, of $2.9 million.

	On July 25, 2014, the Company entered into a purchase agreement (the "Purchase Agreement"), together with a registration rights agreement (the "Registration Rights Agreement") with Lincoln Park Capital Fund, LLC ("LPC"). Under the terms, and subject to the conditions of the Purchase Agreement, the Company has the right to sell to LPC, and LPC is obligated to purchase, up to $15,000,000 in shares of common stock, subject to certain limitations, from time to time over the 36-month period commencing on the date that a registration statement, which the Company agreed to file with the SEC pursuant to the Registration Rights Agreement, is declared effective by the SEC and a final prospectus in connection therewith is filed. The Company may direct LPC, at its sole discretion and subject to certain conditions, to purchase up to 150,000 shares of common stock in regular purchases, increasing to amounts of up to 250,000 shares, depending upon the closing sale price of the common stock. In addition, the Company may direct LPC to purchase additional shares as accelerated purchases if, on the date of a regular purchase, the closing sale price of the common stock is not below $2.50 per share (subject to adjustment). The purchase price of shares of common stock to be purchased under the Purchase Agreement will be based on the prevailing market prices of such shares at the time of sales, but in no event will the Company be able to sell shares to LPC on a day when the closing sale price of the common stock closing price is less than a floor price of $1.50 per share (subject to adjustment). The Company will control the timing and amount of any sales of common stock to LPC under the Purchase Agreement. As consideration for LPC's commitment to purchase shares of common stock pursuant to the Purchase Agreement, the Company issued to LPC 95,000 shares of Common Stock as commitment shares. To date the Company has not issued any shares of common stock under the purchase agreement.

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments (Tables)	9 Months Ended
Fair Value of Financial Instruments (Tables)	Jun. 30, 2014
Fair Value of Financial Instruments [Abstract]	'
Company's financial assets and liabilities carried at fair value and measured on a recurring basis	'

	Description	Fair Value at			Quoted Prices in		Significant Other		Significant
		30-Jun-14			Active Markets for		Observable		Unobservable
					Identical Assets		Market Inputs		Inputs
					(Level 1)		(Level 2)		(Level 3)
	Assets:
	Cash and cash equivalents	$	24,480		$	24,480	$	—	$	—
	Subtotal		24,480			24,480		—		—

	Liabilities:
	Common stock warrant liability (see Note 7)		(2,413	)		—		—		(2,413	)
	Subtotal		(2,413	)		—		—		(2,413	)
	Total	$	22,067		$	24,480	$	—	$	(2,413	)


	Description	Fair Value at			Quoted Prices in		Significant Other		Significant
		30-Sep-13			Active Markets for		Observable		Unobservable
					Identical Assets		Market Inputs		Inputs
					(Level 1)		(Level 2)		(Level 3)
	Assets:
	Cash and cash equivalents	$	39,781		$	39,781	$	—	$	—
	Subtotal		39,781			39,781		—		—

	Liabilities:
	Common stock warrant liability (see Note 7)		(6,121	)		—		—		(6,121	)
	Subtotal		(6,121	)		—		—		(6,121	)
	Total	$	33,660		$	39,781	$	—	$	(6,121	)

Company recognizes transfers into and out of the level 3	'

	Balance at September 30, 2013	$	(6,121	)
	Decrease in fair value of common stock warrant liability		3,708
	Balance at June 30, 2014	$	(2,413	)

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Jun. 30, 2014
Stock-Based Compensation [Abstract]	'
Summary of the stock option activity	'
		Number				Weighted			Weighted				Aggregate
						Average			Average				Intrinsic
						Exercise			Remaining				Value
						Price			Contractual
									Life in Years
	Outstanding options, September 30, 2013			1,920,051			$	22.26			4			$	445
	Granted			1,267,000				2.41							—
	Exercised			(19,241	)			2.48						$	10
	Forfeited, expired			(582,650	)			14.69							—
	Outstanding options, June 30, 2014			2,585,160			$	14.39			4				—

	Exercisable options, June 30, 2014			1,302,178			$	26.18			3				—
Black-Scholes valuation model assumptions	'

				Three Months Ended							Nine Months Ended
				June 30,							June 30,
				2013				2014			2013				2014
	Expected life (in years)			4.75				—			2.39 - 4.75				3.77 - 4.75
	Expected volatility			91	%			—			80 - 91	%			70 - 83	%
	Expected dividend yield			0	%			—			0	%			0	%
	Risk-free interest rate			0.39	%			—			0.25 - 0.75	%			0.58 - 0.78	%
	Weighted average grant date fair value		$	1.89				—		$	2.34			$	2.41
Stock-based compensation expense associated with the RSUs	'
			Three Months Ended							Nine Months Ended
			June 30,							June 30,
				2013				2014			2013				2014
	Stock compensation expense — RSUs		$	76			$	0		$	275			$	54
Summary of RSU activity	'

			Shares				Weighted
							Average
							Grant-Date
							Fair Value
	Non-vested and outstanding balance at October 1, 2013			31,296			$	10.48
	Changes during the period:
	RSUs granted			—				—
	RSUs converted to common stock			(21,468	)			10.48
	RSUs withheld for tax payments			(9,828	)			10.48
	Non-vested and outstanding RSU balance at June 30, 2014			—			$	—

Net_Loss_per_Share_Tables

Net Loss per Share (Tables)	9 Months Ended
Net Loss per Share (Tables)	Jun. 30, 2014
Net Loss Per Share [Abstract]	'
Dilutive common shares excluded from the calculation of weighted average common shares outstanding	'


			June 30,		June 30,
			2013	2014	2013	2014
		Common shares underlying warrants issued for common stock	5,006,398	5,006,398	5,006,398	5,006,398
		Common shares issuable upon conversion of Series A Preferred Stock	453,486	—	453,486	—
		Common shares issuable upon conversion of Series B Preferred Stock	3,428,643	1,950,000	3,428,643	1,950,000
		Stock options	1,929,676	2,585,160	1,929,676	2,585,160
		Restricted stock units outstanding	31,302	—	31,302	—

Financings_Tables

Financings (Tables)	9 Months Ended
Financings (Tables)	Jun. 30, 2014
Class of Warrant or Right [Line Items]	'
Fair value assumptions used in accounting for warrant liability	'
	June 2012 Financing		30-Jun-14
	Stock price	$	2.16
	Exercise price	$	2.66
	Risk-free interest rate		0.88	%
	Expected remaining term		2.99
	Expected volatility		76	%
	Dividend yield		—
	Warrants outstanding		2,749,469


	May 2011 Offering		30-Jun-14
	Stock price	$	2.16
	Exercise price	$	9.92
	Risk-free interest rate		0. 47	%
	Expected remaining term		1.88
	Expected volatility		60	%
	Dividend yield		—
	Warrants outstanding		2,256,929
May 2011 registered direct offering [Member]	'
Class of Warrant or Right [Line Items]	'
Summary of changes in value of the warrant liability in private placement	'

	Balance at September 30, 2013	$	1,163
	Decrease in fair value of common stock warrant liability		(1,092	)
	Balance at June 30, 2014	$	71
June 2012 Private Placement [Member]	'
Class of Warrant or Right [Line Items]	'
Summary of changes in value of the warrant liability in private placement	'
	Balance at September 30, 2013	$	4,958
	Decrease in fair value of common stock warrant liability		(2,616	)
	Balance at June 30, 2014	$	2,342

Business_and_Basis_of_Presenta1

Business and Basis of Presentation (Details)	1 Months Ended
Business and Basis of Presentation (Details)	Jun. 30, 2012
Business and Basis of Presentation (Textual)	'
Description of reverse stock split of outstanding common stock	'
	One-for-four

Fair_Value_of_Financial_Instru2

Fair Value of Financial Instruments (Details) (USD $)	Jun. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Sep. 30, 2013
Assets:	'	'
Cash and cash equivalents	$28,686	$39,781
Liabilities:	'	'
Common stock warrant liability (see Note 9)	-2,413	-6,121
Recurring [Member]	'	'
Assets:	'	'
Cash and cash equivalents	24,480	39,781
Subtotal	24,480	39,781
Liabilities:	'	'
Common stock warrant liability (see Note 9)	-2,413	-6,121
Subtotal	-2,413	-6,121
Total	22,067	33,660
Recurring [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]	'	'
Assets:	'	'
Cash and cash equivalents	24,480	39,781
Subtotal	24,480	39,781
Liabilities:	'	'
Common stock warrant liability (see Note 9)	'	'
Subtotal	'	'
Total	24,480	39,781
Recurring [Member] \| Significant Other Observable Market Inputs (Level 2) [Member]	'	'
Assets:	'	'
Cash and cash equivalents	'	'
Subtotal	'	'
Liabilities:	'	'
Common stock warrant liability (see Note 9)	'	'
Subtotal	'	'
Total	'	'
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member]	'	'
Assets:	'	'
Cash and cash equivalents	'	'
Subtotal	'	'
Liabilities:	'	'
Common stock warrant liability (see Note 9)	-2,413	-6,121
Subtotal	-2,413	-6,121
Total	($2,413)	($6,121)

Fair_Value_of_Financial_Instru3

Fair Value of Financial Instruments (Details 1) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014
Reconcilliation of Level 3 changes	'
Beginning Balance	($6,121)
Decrease in fair value of common stock warrant liability	3,708
Ending Balance	($2,413)

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (USD $)	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014
Summary of the stock option activity	'
Excercised, Number	19,241
Stock options [Member]	'
Summary of the stock option activity	'
Beginning balance, Outstanding options, Number	1,920,051
Granted, Number	1,267,000
Excercised, Number	-19,241
Forfeited, expired, Number	-582,650
Ending balance, Outstanding options, Number	2,585,160
Exercisable options, Number	1,302,178
Beginning balance, Outstanding options, Weighted Average Exercise Price	22.26
Granted, Weighted Average Exercise Price	2.41
Exercised, Weighted Average Exercise Price	2.48
Forfeited, expired, Weighted Average Exercise Price	14.69
Ending balance, Outstanding options, Weighted Average Exercise Price	14.39
Exercisable options, Weighted Average Exercise Price	26.18
Beginning balance, Outstanding options, Weighted Average Remaining Contractual Life in Years	'4 years
Ending balance, Outstanding options, Weighted Average Remaining Contractual Life in Years	'4 years
Exercisable options, Weighted Average Remaining Contractual Life in Years	'3 years
Beginning balance, Outstanding options, Aggregate Intrinsic Value	445
Granted, Aggregate Intrinsic Value	'
Exercised, Aggregate Intrinsic Value	10
Forfeited, expired, Aggregate Intrinsic Value	'
Ending balance, Outstanding options, Aggregate Intrinsic Value	'
Exercisable options, Aggregate Intrinsic Value	'

StockBased_Compensation_Detail1

Stock-Based Compensation (Details 1) (USD $)	3 Months Ended		9 Months Ended
Stock-Based Compensation (Details 1) (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Black-Scholes pricing model assumptions	'	'	'	'
Expected life (in years)	'	'4 years 9 months	'	'
Expected volatility	'	91.00%	'	'
Expected dividend yield	'	0.00%	0.00%	0.00%
Risk-free interest rate	'	0.39%	'	'
Weighted average grant date fair value	'	$1.89	$2.41	$2.34
Minimum [Member]	'	'	'	'
Black-Scholes pricing model assumptions	'	'	'	'
Expected life (in years)	'	'	'3 years 9 months 7 days	'2 years 4 months 21 days
Expected volatility	'	'	70.00%	80.00%
Risk-free interest rate	'	'	0.58%	0.25%
Maximum [Member]	'	'	'	'
Black-Scholes pricing model assumptions	'	'	'	'
Expected life (in years)	'	'	'4 years 9 months	'4 years 9 months
Expected volatility	'	'	83.00%	91.00%
Risk-free interest rate	'	'	0.78%	0.75%

StockBased_Compensation_Detail2

Stock-Based Compensation (Details 2) (Restricted Stock Units [Member], USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Restricted Stock Units [Member]	'	'	'	'
Stock-based compensation expense associated with the RSUs	'	'	'	'
Stock compensation expense - RSUs	$0	$76	$54	$275

StockBased_Compensation_Detail3

Stock-Based Compensation (Details 3) (Restricted stock units (RSUs) [Member], USD $)	9 Months Ended
	Jun. 30, 2014
Restricted stock units (RSUs) [Member]	'
Summary of RSUs activities	'
Non-vested and outstanding balance	31,296
Non-vested and outstanding balance, Weighted Average Grant-Date Fair Value	$10.48
Changes during the period:	'
RSUs granted, Shares	'
RSUs granted, Weighted Average Grant-Date Fair Value	'
RSUs converted to common stock, Shares	-21,468
RSUs converted to common stock, Weighted average grant date fair value	$10.48
RSUs withheld for tax payments, Share	-9,828
RSUs withheld for tax payments, Weighted average grant date fair value	$10.48
Non-vested and outstanding balance	'
Non-vested and outstanding balance, Weighted average grant date fair value	'

StockBased_Compensation_Detail4

Stock-Based Compensation (Details Textual) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Stock-Based Compensation (Textual)	'	'	'	'
Compensation cost related to employees and directors	$135	$326	$645	$1,216
Total compensation cost related to non-vested options not yet recognized	1,283	'	1,283	'
2010 Stock Incentive Plan [Member]	'	'	'	'
Stock-Based Compensation (Textual)	'	'	'	'
Vesting period	'	'	'4 years	'
Contractual life of option granted	'	'	'7 years	'
2010 Restricted Stock Units [Member]	'	'	'	'
Stock-Based Compensation (Textual)	'	'	'	'
Annual Forfeiture Rate For Employee	'	'	10.00%	'
2005 Employee Stock Purchase Plan [Member]	'	'	'	'
Stock-Based Compensation (Textual)	'	'	'	'
Contribution by eligible employees under purchase plan	'	'	15.00%	'
Description of purchase price	'	'	'Lower of: 85% of the fair market value per share on the start date of the offering period in which the employee is enrolled or 85% of the fair market value per share on the semi-annual purchase date.	'
Limitation upon a participant's right to acquire common stock	'	'	'5% or more	'
Maximum period within which election must be made	'	'	'30 days	'
Length of offering period	'	'	'27 months	'
Compensation charge/(credit) in connection with purchase plan	$2	$8	$3	$1
Common stock reserved for issuance pursuant to purchase rights to be granted	500,000	'	500,000	'
Provision for share replenishment	'	'	'Lesser of 1% of the total number of shares of common stock outstanding on that date or 25,000 shares.	'
Shares reserved and available for issuance under purchase plan	'	'	383,737	366,926
Total shares issued under purchase plan	'	'	116,263	108,074

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended	9 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2013	Jun. 30, 2014
Income Taxes (Textual)	'	'
Limitations of federal research and development credit carryovers	'	'
	'	Greater than 50% change in ownership in the Company within the three-year period
Total federal losses (prior to the Section 382 limitation)	'	$58
Expiration of net operating loss carryforwards	'	'Expire beginning in 2024 through 2033.
Effective tax rate due to the effects of state income taxes and valuation allowance	0.00%	0.00%
Federal statutory rate	'	34.00%

Net_Loss_per_Share_Details

Net Loss per Share (Details)	3 Months Ended		9 Months Ended
Net Loss per Share (Details)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Common shares underlying warrants issued for common stock [Member]	'	'	'	'
Dilutive common shares excluded from the calculation of weighted average common shares outstanding	'	'	'	'
Amount of options, warrants, preferred stock and RSUs	5,006,398	5,006,398	5,006,398	5,006,398
Common shares issuable upon conversion of Series A Preferred Stock [Member]	'	'	'	'
Dilutive common shares excluded from the calculation of weighted average common shares outstanding	'	'	'	'
Amount of options, warrants, preferred stock and RSUs	'	453,486	'	453,486
Common shares issuable upon conversion of Series B Preferred Stock [Member]	'	'	'	'
Dilutive common shares excluded from the calculation of weighted average common shares outstanding	'	'	'	'
Amount of options, warrants, preferred stock and RSUs	1,950,000	3,428,643	1,950,000	3,428,643
Stock options [Member]	'	'	'	'
Dilutive common shares excluded from the calculation of weighted average common shares outstanding	'	'	'	'
Amount of options, warrants, preferred stock and RSUs	2,585,160	1,929,676	2,585,160	1,929,676
Restricted stock units outstanding [Member]	'	'	'	'
Dilutive common shares excluded from the calculation of weighted average common shares outstanding	'	'	'	'
Amount of options, warrants, preferred stock and RSUs	'	31,302	'	31,302

Financings_Details

Financings (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014
May 2011 registered direct offering [Member]	'
Summary of changes in fair value of warrant liability	'
Beginning Balance	$1,163
Decrease in fair value of common stock warrant liability	-1,092
Ending Balance	71
June 2012 Private Placement [Member]	'
Summary of changes in fair value of warrant liability	'
Beginning Balance	4,958
Decrease in fair value of common stock warrant liability	-2,616
Ending Balance	$2,342

Financings_Details_1

Financings (Details 1) (USD $)	9 Months Ended
Financings (Details 1) (USD $)	Jun. 30, 2014
June 2012 Financing [Member]	'
Fair value assumptions used in accounting for warrant liability	'
Stock price	$2.16
Exercise price	$2.66
Risk-free interest rate	0.88%
Expected remaining term	'2 years 11 months 27 days
Expected volatility	76.00%
Dividend yield	'
Warrants outstanding	2,749,469
May 2011 Offering [Member]	'
Fair value assumptions used in accounting for warrant liability	'
Stock price	$2.16
Exercise price	$9.92
Risk-free interest rate	0.47%
Expected remaining term	'1 year 10 months 17 days
Expected volatility	60.00%
Dividend yield	'
Warrants outstanding	2,256,929

Financings_Details_Textual

Financings (Details Textual) (USD $)

1 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

In Thousands, except Share data, unless otherwise specified

Jul. 30, 2013

Jun. 30, 2013

Jul. 22, 2013

Jun. 24, 2013

Jun. 30, 2012

Jun. 30, 2014

Sep. 30, 2013

Jun. 30, 2012

31-May-11

Jun. 30, 2014

Sep. 30, 2013

31-May-11

June 2013 Public Offering [Member]

June 2012 Private Placement [Member]

May 2011 Offering [Member]

Registered Direct Offering [Member]

Common Stock [Member]

Series B Preferred Stock [Member]

Warrant [Member]

Common Stock [Member]

Series A Preferred Stock [Member]

Warrant [Member]

Financing (Textual)

Issuance of shares under private placement

4,482,760

4,250,020

3,605,607

2,749,469

Issuance of shares under direct registered offering

3,018,736

1,813,944

2,256,929

Warrant exercise price

$2.66

$9.92

Common shares issued for each warrant

'0.35 of a share of common stock

'0.1625 of a share of common stock

Price of unit

$4.35

$2.36

$8.64

Warrants issuance date

27-Jun-12

18-May-11

Expiration date of warrant

26-Jun-17

17-May-16

Warrants expiration period

'5 years

Proceed from issuance of private placement, net

$1,000

$18,300

$19,300

$17,100

$28,000

Common shares issued after conversion of preferred stock

Mimimum benefit owned by holder on conversion of preferred stock

9.98%

Per share payment to preferred stock holder before common stock

$0.01

Voting rights of preferred stock

'no voting rights

Period of filing of registration statement

'within 30 days after the closing of the 2012 Private Placement.

Declaration date of registration statement

13-Aug-12

Minimum percentage of purchase price company obligated to pay as liquidated damages

1.00%

Maximum percentage of purchase price company obligated to pay as liquidated damages

8.00%

Follow up period of holders to pay consideration

'30 days

Issuance of common stock and warrants to purchase additional shares of common stock

236,007

Fair value of warrant liability

2,342

4,958

1,163

Income from adjustment to fair value of common stock warrant liability

($1,258)

($2,616)

($290)

($1,092)

Commitments_Details_Textual

Commitments (Details Textual) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
	Facility	Jun. 30, 2013	Facility	Jun. 30, 2013
Commitments (Textual)	'	'	'	'
Number of facilities leased	3	'	3	'
Rent expense	$165	$164	$476	$481
Laboratory Space [Member]	'	'	'	'
Commitments (Textual)	'	'	'	'
Additionally period for renewal of lease	'	'	'1 year	'
Leases amendment description	'	'	'Lease provides for annual basic lease payments of $68, plus the annual Consumers Price Index ("CPI") increase for October, not to exceed 6%, plus operating expenses.	'
Annual basic lease payments plus operating expenses	'	'	68	'
Percentage of increase in annual Consumers Price Index (CPI)	'	'	6.00%	'
Office Space [Member]	'	'	'	'
Commitments (Textual)	'	'	'	'
Additionally period for renewal of lease	'	'	'1 year	'
Leases amendment description	'	'	'Lease provides for annual basic lease payments of $31, plus the annual CPI increase for October, not to exceed 6%, plus operating expenses.	'
Annual basic lease payments plus operating expenses	'	'	31	'
Percentage of increase in annual Consumers Price Index (CPI)	'	'	6.00%	'
Corporate Office [Member]	'	'	'	'
Commitments (Textual)	'	'	'	'
Additionally period for renewal of lease	'	'	'5 years	'
Leases amendment description	'	'	'Lease provides for annual basic lease payments of $388, plus the annual CPI increase for May, not to exceed 6%, plus operating expenses.	'
Annual basic lease payments plus operating expenses	'	'	$388	'
Percentage of increase in annual Consumers Price Index (CPI)	'	'	6.00%	'

Government_Grants_Details

Government Grants (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Government Grants (Textual)	'	'	'	'
Description of grants awards	'	'	'In July and September 2012, the Company was awarded two National Institutes of Health grants.	'
Period for grants awards	'	'	'2 years	'
Grant one received from government	'	'	$582	'
Grant two received from government	'	'	583	'
Insulin formulation grant expenses incurred	69	0	167	203
Glucagon formulation grant expenses incurred	158	25	364	46
Balance of grant income received ultra rapid acting insulin formulation	'	'	69	'
Balance of grant income received glucagon formulation	'	'	158	'
Grant income	$227	$25	$531	$249

Subsequent_Events_Details

Subsequent Events (Details) (USD $)	1 Months Ended
	31-May-13	Jul. 31, 2014	Jul. 25, 2014	Jul. 25, 2014	Jul. 25, 2014
	At the Market Issuance Sales Agreement [Member]	Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]
		At the Market Issuance Sales Agreement [Member]	Purchase Agreement [Member]	Purchase Agreement [Member]	Purchase Agreement [Member]
				Minimum [Member]	Maximum [Member]
Subsequent Event [Line Items]	'	'	'	'	'
Purchase agreement, description	'	'	'Under the terms, and subject to the conditions of the Purchase Agreement, the Company has the right to sell to LPC, and LPC is obligated to purchase, up to $15,000,000 in shares of common stock, subject to certain limitations, from time to time over the 36-month period commencing on the date that a registration statement, which the Company agreed to file with the SEC pursuant to the Registration Rights Agreement, is declared effective by the SEC and a final prospectus in connection therewith is filed. The Company may direct LPC, at its sole discretion and subject to certain conditions, to purchase up to 150,000 shares of common stock in regular purchases, increasing to amounts of up to 250,000 shares, depending upon the closing sale price of the common stock.	'	'
Aggregate sales proceeds	$14,000,000	'	'	'	'
Shares issued pursuant to the agreeement	'	1,476,974	'	'	'
Shares issued pursuant to the agreement, value	'	2,900,000	'	'	'
Purchase obligation in shares of common stock	'	'	$15,000,000	'	'
Term of purchase agreement	'	'	'36 months	'	'
Shares purchased during the period	'	'	95,000	150,000	250,000
Closinbg sale price of common stock	'	'	'	$1.50	$2.50