Vanda Pharmaceuticals (VNDA) 10-K 17 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Feb. 06, 2017	Jun. 30, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	VNDA
Entity Registrant Name	Vanda Pharmaceuticals Inc.
Entity Central Index Key	1,347,178
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		44,346,431
Entity Public Float			$ 473.6

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 40,426	$ 50,843
Marketable securities	100,914	92,337
Accounts receivable, net	20,268	16,331
Inventory	779	1,294
Prepaid expenses and other current assets	11,788	5,742
Total current assets	174,175	166,547
Property and equipment, net	5,015	4,570
Intangible assets, net	27,819	38,752
Non-current inventory and other	3,365	3,181
Total assets	210,374	213,050
Current liabilities:
Accounts payable and accrued liabilities	16,196	15,767
Accrued government and other rebates	34,124	35,550
Total current liabilities	50,320	51,317
Milestone obligation under license agreement	25,000	25,000
Other non-current liabilities	3,724	3,706
Total liabilities	79,044	80,023
Commitments and contingencies (Notes 13 and 18)
Stockholders' equity:
Preferred stock, $0.001 par value; 20,000,000 shares authorized, and no shares issued or outstanding
Common stock, $0.001 par value; 150,000,000 shares authorized; 44,000,614 and 42,815,291 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively	44	43
Additional paid-in capital	477,087	460,794
Accumulated other comprehensive income	58	39
Accumulated deficit	(345,859)	(327,849)
Total stockholders' equity	131,330	133,027
Total liabilities and stockholders' equity	$ 210,374	$ 213,050

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Preferred stock, par value	$ 0.001	$ 0.001
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	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	44,000,614	42,815,291
Common stock, shares outstanding	44,000,614	42,815,291

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Net product sales	$ 146,017	$ 109,925	$ 12,909
Royalty revenue			6,502
Licensing agreement			30,746
Total revenues	146,017	109,925	50,157
Operating expenses:
Cost of goods sold, excluding amortization	24,712	23,462	1,583
Research and development	29,156	29,145	19,230
Selling, general and administrative	99,787	84,531	84,644
Intangible asset amortization	10,933	12,972	2,254
Gain on arbitration settlement			(77,616)
Total operating expenses	164,588	150,110	30,095
Income (loss) from operations	(18,571)	(40,185)	20,062
Other income	665	320	124
Income (loss) before income taxes	(17,906)	(39,865)	20,186
Provision for income taxes	104	0	0
Net income (loss)	$ (18,010)	$ (39,865)	$ 20,186
Net income (loss) per share:
Basic	$ (0.41)	$ (0.94)	$ 0.58
Diluted	$ (0.41)	$ (0.94)	$ 0.55
Weighted average shares outstanding:
Basic	43,449,441	42,250,254	34,774,163
Diluted	43,449,441	42,250,254	36,686,723

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income (loss)	$ (18,010)	$ (39,865)	$ 20,186
Other comprehensive income (loss):
Net foreign currency translation loss	(1)
Change in net unrealized gain (loss) on marketable securities	20	23	(5)
Tax provision on other comprehensive income (loss)	0	0	0
Other comprehensive income (loss), net of tax	19	23	(5)
Comprehensive income (loss)	$ (17,991)	$ (39,842)	$ 20,181

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2013		33,338,543
Beginning balance at Dec. 31, 2013	$ 44,124	$ 33	$ 352,240	$ 21	$ (308,170)
Net proceeds from public offering of common stock	62,313	$ 5	62,308
Net proceeds from public offering of common stock (in shares)		5,750,000
Issuance of common stock to Novartis Pharma AG (in shares)		1,808,973
Issuance of common stock to Novartis Pharma AG	25,905	$ 2	25,903
Issuance of common stock form the exercise of stock options and settlement of restricted stock awards (in shares)		621,231
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	2,852	$ 1	2,851
Shares withheld upon settlement of equity awards(in shares)		(32,386)
Shares withheld upon settlement of equity awards	(436)		(436)
Stock-based compensation expense	5,878		5,878
Net income (loss)	20,186				20,186
Other comprehensive income, net of tax	(5)			(5)
Ending balance (in shares) at Dec. 31, 2014		41,486,361
Ending balance at Dec. 31, 2014	160,817	$ 41	448,744	16	(287,984)
Issuance of common stock form the exercise of stock options and settlement of restricted stock awards (in shares)		1,353,877
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	4,374	$ 2	4,372
Shares withheld upon settlement of equity awards(in shares)		(24,947)
Shares withheld upon settlement of equity awards	(283)		(283)
Stock-based compensation expense	7,961		7,961
Net income (loss)	(39,865)				(39,865)
Other comprehensive income, net of tax	$ 23			23
Ending balance (in shares) at Dec. 31, 2015	42,815,291	42,815,291
Ending balance at Dec. 31, 2015	$ 133,027	$ 43	460,794	39	(327,849)
Issuance of common stock form the exercise of stock options and settlement of restricted stock awards (in shares)		1,185,323
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	7,751	$ 1	7,750
Stock-based compensation expense	8,543		8,543
Net income (loss)	(18,010)				(18,010)
Other comprehensive income, net of tax	$ 19			19
Ending balance (in shares) at Dec. 31, 2016	44,000,614	44,000,614
Ending balance at Dec. 31, 2016	$ 131,330	$ 44	$ 477,087	$ 58	$ (345,859)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Net income (loss)	$ (18,010)	$ (39,865)	$ 20,186
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of property and equipment	935	582	530
Stock-based compensation	8,543	7,961	5,878
Amortization of discounts and premiums on marketable securities	62	677	174
Intangible asset amortization	10,933	12,972	2,254
Deferred income taxes	(104)
Deferred licensing revenues			(30,572)
Gain on arbitration settlement			(77,616)
Other non-cash adjustments, net	646	483	239
Changes in operating assets and liabilities:
Accounts receivable	(4,298)	(12,677)	(1,623)
Prepaid expenses and other assets	(6,159)	(2,558)	(318)
Inventory	200	387	(2,210)
Accounts payable and accrued liabilities	575	9,432	1,029
Accrued government and other rebates	(1,426)	35,055	495
Net cash provided by (used in) operating activities	(8,103)	12,449	(81,554)
Cash flows from investing activities
Acquisition of intangible assets			(8,000)
Purchases of property and equipment	(1,407)	(2,527)	(769)
Purchases of marketable securities	(165,405)	(193,111)	(93,343)
Proceeds from sale of marketable securities		999	8,948
Maturities of marketable securities	156,787	168,041	80,882
Change in restricted cash	(46)		245
Net cash used in investing activities	(10,071)	(26,598)	(12,037)
Cash flows from financing activities
Net proceeds from offering of common stock			62,313
Proceeds from exercise of employee stock options	7,751	4,374	2,851
Tax obligations paid in connection with settlement of restricted stock units		(283)	(436)
Net cash provided by financing activities	7,751	4,091	89,728
Effect of foreign currencies on cash and cash equivalents	6
Net decrease in cash and cash equivalents	(10,417)	(10,058)	(3,863)
Cash and cash equivalents
Beginning of year	50,843	60,901	64,764
End of year	$ 40,426	$ 50,843	60,901
Novartis Pharma AG
Cash flows from financing activities
Net proceeds from offering of common stock			$ 25,000

Business Organization and Prese

Business Organization and Presentation	12 Months Ended
	Dec. 31, 2016
Business Organization and Presentation	1. Business Organization and Presentation Business organization Vanda Pharmaceuticals Inc. (the Company) is a global biopharmaceutical company focused on the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. The Company commenced its operations in 2003 and operates in one reporting segment. The Company’s portfolio includes the following products: • HETLIOZ ® ® ® ® • Fanapt ® ® ® ® ® • Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist, which is presently in clinical development for the treatment of chronic pruritus in atopic dermatitis and gastroparesis. • Trichostatin A, a small molecule histone deacetylase (HDAC) inhibitor. • AQW051, a Phase II alpha-7 nicotinic acetylcholine receptor partial agonist. Basis of presentation The accompanying consolidated financial statements includes the accounts of Vanda Pharmaceuticals Inc. and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America. All intercompany accounts and transactions have been eliminated in consolidation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. The Company has estimated its annual fees for Fanapt ® Cash and Cash Equivalents For purposes of the consolidated balance sheets and consolidated statements of cash flows, cash equivalents represent highly-liquid investments with a maturity date of three months or less at the date of purchase. Restricted cash of $0.8 million relating primarily to leases for office space is included in other current and other non-current assets at December 31, 2016 and 2015. Marketable Securities The Company classifies all of its marketable securities as available-for-sale securities. The Company’s investment policy requires the selection of high-quality issuers, with bond ratings of AAA to A1+/P1. Available-for-sale securities are carried at fair market value, with unrealized gains and losses reported as a component of stockholders’ equity in accumulated other comprehensive income/loss. Interest and dividend income is recorded when earned and included in interest income. Premiums and discounts on marketable securities are amortized and accreted, respectively, to maturity and included in interest income. The Company uses the specific identification method in computing realized gains and losses on the sale of investments, which would be included in the consolidated statements of operations when generated. Marketable securities with a maturity of more than one year as of the balance sheet date and which the Company does not intend to sell within the next twelve months are classified as non-current. All other marketable securities are classified as current. Inventory Inventory, which is recorded at the lower of cost or net realizable value, includes the cost of third-party manufacturing and other direct and indirect costs and is valued using the first-in, first-out method. The Company capitalizes inventory costs associated with its products upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. Inventory is evaluated for impairment by consideration of factors such as lower of cost or net realizable value, obsolescence or expiry. Inventory not expected to be consumed within 12 months following the balance sheet date are classified as non-current. Intangible Assets Costs incurred for products not yet approved by the FDA and for which no alternative future use exists are recorded as expense. In the event a product has been approved by the FDA or an alternative future use exists for a product, patent and license costs are capitalized and amortized over the expected patent life of the related product. Milestone payments to the Company’s partners are recognized when it is deemed probable that the milestone event will occur. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. The costs of leasehold improvements funded by or reimbursed by the lessor are capitalized and amortized as leasehold improvements along with a corresponding deferred rent liability. Depreciation of most property and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized using a straight-line basis over the lesser of the estimated useful lives of the assets or the terms of the related leases. The costs of additions and improvements are capitalized, and repairs and maintenance costs are charged to operations in the period incurred. Upon retirement or disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the statement of operations for that period. Accounts Payable and Accrued Liabilities The Company’s management is required to estimate accrued liabilities as part of the process of preparing financial statements. The estimation of accrued liabilities involves identifying services that have been performed on the Company’s behalf, and then estimating the level of service performed and the associated cost incurred for such services as of each balance sheet date in the financial statements. Accrued liabilities include professional service fees, such as lawyers and accountants, contract service fees, such as those under contracts with clinical monitors, data management organizations and investigators in conjunction with clinical trials, fees to contract manufacturers in conjunction with the production of clinical materials, and fees for marketing and other commercialization activities. Pursuant to management’s assessment of the services that have been performed on clinical trials and other contracts, the Company recognizes these expenses as the services are provided. Such management assessments include, but are not limited to: (i) an evaluation by the project manager of the work that has been completed during the period, (ii) measurement of progress prepared internally and/or provided by the third-party service provider, (iii) analyses of data that justify the progress, and (iv) management’s judgment. In the event that the Company does not identify certain costs that have begun to be incurred or the Company under- or over-estimates the level of services performed or the costs of such services, the Company’s reported expenses for such period would be too low or too high. Net Product Sales The Company’s net product sales consist of sales of HETLIOZ ® ® Year Ended December 31, (in thousands) 2016 2015 2014 HETLIOZ ® $ 71,671 $ 44,302 $ 12,802 Fanapt ® 74,346 65,623 107 $ 146,017 $ 109,925 $ 12,909 The Company applies the revenue recognition guidance in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Subtopic 605-15, Revenue Recognition—Products Product Sales Discounts and Allowances The Company’s product sales are recorded net of applicable discounts, chargebacks, rebates, co-pay assistance, service fees and product returns that are applicable for various government and commercial payors. Reserves established for discounts and returns are classified as reductions of accounts receivable if the amount is payable to direct customers, with the exception of service fees. Service fees are classified as a liability. Reserves established for chargebacks, rebates or co-pay assistance are classified as a liability if the amount is payable to a party other than customers. The Company currently records sales allowances for the following: Rebates: Chargebacks: Medicare Part D Coverage Gap: Service Fees: Co-payment Assistance: Prompt-pay: Product Returns: (in thousands) Balance at December 31, 2013 $ — Additions 85 Balance at December 31, 2014 85 Additions 986 Credits/payments (12 ) Balance at December 31, 2015 1,059 Additions 2,507 Credits/payments (486 ) Balance at December 31, 2016 $ 3,080 License Revenue The Company’s license and royalty revenue for the year ended December 31, 2014 was derived from the amended and restated sublicense agreement with Novartis. Pursuant to the amended and restated sublicense agreement, Novartis had the right to commercialize and develop Fanapt ® ® ® Settlement Agreement with Novartis Major Customers HETLIOZ ® ® Year Ended December 31, Percent of Total Revenues 2016 2015 2014 Distributor A 23 % 14 % — Distributor B 16 % 18 % — Distributor C 16 % 19 % — Distributor D 16 % 14 % — Distributor E 15 % 17 % — Distributor F — 12 % — Novartis royalty revenue — — 13 % Novartis license agreement — — 61 % The following table presents each major customer that represented more than 10% of accounts receivable, net, as of December 31, 2016 and 2015: December 31, Percent of Accounts Receivable, Net 2016 2015 Distributor A 22 % 12 % Distributor B 19 % 24 % Distributor C 15 % 17 % Distributor D 11 % 12 % Distributor E 25 % 22 % Cost of Goods Sold Cost of goods sold includes royalties payable, the cost of inventory sold, manufacturing and supply chain costs and product shipping and handling costs related to U.S. sales of HETLIOZ ® ® Research and Development Expenses Research and development expenses consist primarily of fees for services provided by third parties in connection with the clinical trials, costs of contract manufacturing services, milestone payments, costs of materials used in clinical trials and research and development, costs for regulatory consultants and filings, depreciation of capital resources used to develop products, related facilities costs, and salaries, other employee-related costs and stock-based compensation for research and development personnel. The Company expenses research and development costs as they are incurred for products in the development stage, including manufacturing costs and milestone payments made under license agreements prior to FDA approval. Upon and subsequent to FDA approval, manufacturing and milestone payments related to license agreements are capitalized. Milestone payments are accrued when it is deemed probable that the milestone event will be achieved. Costs related to the acquisition of intellectual property are expensed as incurred if the underlying technology is developed in connection with the Company’s research and development efforts and has no alternative future use. Selling, General and Administrative Expenses Selling, general and administrative expenses consist of salaries, stock-based compensation, facilities and third party expenses. Selling, general and administrative expenses are associated with the activities of the executive, finance, accounting, information technology, business development, commercial support, trade and distribution, sales, marketing, legal, medical affairs and human resource functions. Additionally, selling, general and administrative expenses included an estimate for the annual Patient Protection and Affordable Care fee. Stock-Based Compensation Compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The fair value of stock options granted and restricted stock units (RSUs) awarded are amortized using the straight-line method. As stock-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates Advertising Expense The Company expenses the costs of advertising, including branded promotional expenses, as incurred. Branded advertising expenses, recorded in selling, general and administrative expenses, were $1.4 million, $3.4 million and $5.0 million for the years ended December 31, 2016, 2015 and 2014, respectively. Foreign Currency The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s international subsidiaries is the local currency. Assets and liabilities, including inter-company balances for which settlement is anticipated in the foreseeable future, denominated in foreign currencies are translated at exchange rates in effect at the balance sheet date. Foreign currency equity balances are translated at historical rates. Revenues and expenses denominated in foreign currencies are translated at average exchange rates for the respective periods. Foreign currency translation adjustments are recorded in accumulated other comprehensive income. Transactions denominated in currencies other than subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in the consolidated balance sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions. Foreign currency transaction gains and losses are included in other income and amounted to a loss of $0.2 million for the year ended December 31, 2016. Foreign currency transaction gains and losses were not material for the years ended December 31, 2015 and 2014. Income Taxes The Company accounts for income taxes in accordance with the authoritative guidance on accounting for income taxes, which requires companies to account for deferred income taxes using the asset and liability method. Under the asset and liability method, current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax rate changes are reflected in income during the period such changes are enacted. Changes in ownership may limit the amount of NOL carryforwards that can be utilized in the future to offset taxable income. Non-Cash Investing and Financing Activities Purchases of property and equipment accrued in current liabilities amounted to $0.2 million for each of the years ended December 31, 2016 and 2015 and zero for the year ended December 31, 2014. The acquisition of an intangible asset relating to HETLIOZ ® ® Certain Risks and Uncertainties The Company’s products under development require approval from the FDA or other international regulatory agencies prior to commercial sales. There can be no assurance the products will receive the necessary clearance. If the Company is denied clearance or clearance is delayed, it may have a material adverse impact on the Company. The Company’s products are concentrated in rapidly-changing, highly-competitive markets, which are characterized by rapid technological advances, changes in customer requirements and evolving regulatory requirements and industry standards. Any failure by the Company to anticipate or to respond adequately to technological developments in its industry, changes in customer requirements or changes in regulatory requirements or industry standards or any significant delays in the development or introduction of products or services could have a material adverse effect on the Company’s business, operating results and future cash flows. The Company depends on single source suppliers for critical raw materials for manufacturing, as well as other components required for the administration of its products. The loss of these suppliers could delay the clinical trials or prevent or delay commercialization of the products. Concentrations of Credit Risk Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash, cash equivalents and marketable securities. The Company places its cash, cash equivalents and marketable securities with highly-rated financial institutions. At December 31, 2016, the Company maintained all of its cash, cash equivalents and marketable securities in three financial institutions. Deposits held with these institutions may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and the Company believes there is minimal risk of losses on such balances. Segment and Geographic Information The Company operates in one reporting segment and, accordingly, no segment disclosures are presented herein. HETLIOZ ® Recent Accounting Pronouncements In November 2016 the FASB issued Accounting Standards Update (ASU) 2016-18, Restricted Cash In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, In February 2016, the FASB issued ASU 2016-02, Leases In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers Revenue from Contracts with Customers, Principal versus Agent Considerations (Reporting Revenue versus Net), Revenue from Contracts with Customers, identifying Performance Obligations and Licensing Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients,

Settlement Agreement with Novar

Settlement Agreement with Novartis	12 Months Ended
	Dec. 31, 2016
Settlement Agreement with Novartis	3. Settlement Agreement with Novartis In May 2014, the Company commenced arbitration proceedings with Novartis relating to the license of Fanapt ® ® ® ® Pursuant to the stock purchase agreement entered into as part of the Settlement Agreement, Novartis purchased $25.0 million of the Company’s common stock. The Company issued to Novartis an aggregate of 1,808,973 shares at $13.82 per share, which per share represented a 10% premium to the average closing prices of the Company’s common stock for the ten trading days prior to December 22, 2014. The Company recorded a loss of $0.9 million as part of gain on arbitration settlement in the consolidated statement of operations for the year ended December 31, 2014 related to the issuance of stock, which was valued using the Company’s closing stock price on December 31, 2014, the effective date of the transaction. In connection with the Settlement Agreement, the Company received an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize AQW051. Under the AQW051 license agreement, the Company is obligated to use its commercially reasonable efforts to develop and commercialize AQW051 and is responsible for all development costs under the AQW051 license agreement. Novartis is eligible to receive tiered-royalties on net sales at percentage rates up to the mid-teens. The Company evaluated AQW051 and determined that the asset is both incomplete and has substance. However, given the early stage of AQW051 and the future costs of development, no transaction value was allocated to this asset. The Company accounted for the Settlement Agreement in accordance with the provisions of ASC Subtopic 805, Business Combinations The following summarizes the fair value of consideration exchanged as part of the Settlement Agreement: (in thousands) Equity issued $ 25,904 Cash received (25,000 ) Settlement of pre-existing non-contractual 18,087 $ 18,991 Assets acquired and recorded at fair value as of December 31, 2014 were as follows: (in thousands) Inventory $ 2,960 Intangible—Re-acquired 15,940 Prepaid services 91 $ 18,991 The Company recorded the reacquired right as an intangible asset as of December 31, 2014 and has amortized the reacquired right on a straight-line basis through November 2016. Due to the effective date of the Settlement Agreement being December 31, 2014, the Company did not recognize any revenue or operating expenses related to U.S. or Canadian commercial sales of Fanapt ® In connection with the Settlement Agreement, the Company and Novartis terminated the 2009 Amended Sublicense Agreement (the 2009 Agreement). Given the termination of this pre-existing contractual relationship and that there is no further obligation under the 2009 Agreement, the Company recognized a gain of $59.5 million, representing the remaining deferred revenue related to the $200.0 million upfront payment received from Novartis under the 2009 Agreement. This amount was included in gain on arbitration settlement in the consolidated statement of operations in the fourth quarter of 2014. The Settlement Agreement provided for a mutual release of claims and dismissed the Fanapt ®

Earnings per Share

Earnings per Share	12 Months Ended
	Dec. 31, 2016
Earnings per Share	4. Earnings per Share Basic earnings per share (EPS) is calculated by dividing the net income (loss) by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding, plus potential outstanding common stock for the period. Potential outstanding common stock includes stock options and shares underlying RSUs, but only to the extent that their inclusion is dilutive. The following table presents the calculation of basic and diluted net income (loss) per share of common stock for the years ended December 31, 2016, 2015, and 2014: Year Ended December 31, (in thousands, except for share and per share amounts) 2016 2015 2014 Numerator: Net income (loss) $ (18,010 ) $ (39,865 ) $ 20,186 Denominator: Weighted average shares outstanding: Basic 43,449,441 42,250,254 34,774,163 Effect of dilutive securities — — 1,912,560 Weighted average shares outstanding: Diluted 43,449,441 42,250,254 36,686,723 Net income (loss) per share, basic and diluted: Basic $ (0.41 ) $ (0.94 ) $ 0.58 Diluted $ (0.41 ) $ (0.94 ) $ 0.55 Antidilutive securities excluded from calculations of diluted net income (loss) per share 4,943,797 5,660,199 3,524,656 The Company incurred a net loss for each of the years ended December 31, 2016 and 2015 causing inclusion of any potentially dilutive securities to have an anti-dilutive effect, resulting in dilutive loss per share and basic loss per share attributable to common stockholders being equivalent.

Marketable Securities

Marketable Securities	12 Months Ended
	Dec. 31, 2016
Marketable Securities	5. Marketable Securities The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2016, all of which have contract maturities of less than one year: December 31, 2016 (in thousands) Amortized Gross Gross Fair U.S. Treasury and government agencies $ 50,661 $ 3 $ (17 ) $ 50,647 Corporate debt 50,194 89 (16 ) 50,267 $ 100,855 $ 92 $ (33 ) $ 100,914 The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2015: December 31, 2015 (in thousands) Amortized Gross Gross Fair U.S. Treasury and government agencies $ 44,059 $ 6 $ (8 ) $ 44,057 Corporate debt 48,239 46 (5 ) 48,280 $ 92,298 $ 52 $ (13 ) $ 92,337

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2016
Fair Value Measurements	6. Fair Value Measurements Authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 — defined as observable inputs such as quoted prices in active markets • Level 2 — defined as inputs other than quoted prices in active markets that are either directly or indirectly observable • Level 3 — defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions Marketable securities classified in Level 1 and Level 2 as of December 31, 2016 and 2015 consist of available-for-sale marketable securities. The valuation of Level 1 instruments is determined using a market approach, and is based upon unadjusted quoted prices for identical assets in active markets. The valuation of investments classified in Level 2 also is determined using a market approach based upon quoted prices for similar assets in active markets, or other inputs that are observable for substantially the full term of the financial instrument. Level 2 securities include certificates of deposit, commercial paper and corporate notes that use as their basis readily observable market parameters. The Company did not transfer any assets between Level 2 and Level 1 during the years ended December 31, 2016 and 2015. The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2016, as follows: Fair Value Measurement as of December 31, 2016 Using (in thousands) December 31, Quoted Prices in Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-sale U.S. Treasury and government agencies $ 50,647 $ 50,647 $ — $ — Corporate debt 50,267 — 50,267 $ 100,914 $ 50,647 $ 50,267 $ — The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2015, as follows: Fair Value Measurement as of December 31, 2015 Using (in thousands) December 31, Quoted Prices in Significant Other Significant (Level 3) Available-for-sale U.S. Treasury and government agencies $ 44,057 $ 44,057 $ — $ — Corporate debt 48,280 — 48,280 $ 92,337 $ 44,057 $ 48,280 $ — The Company also has financial assets and liabilities, not required to be measured at fair value on a recurring basis, which primarily consist of cash and cash equivalents, accounts receivable, restricted cash, accounts payable and accrued liabilities, the carrying value of which materially approximate their fair values.

Inventory

Inventory	12 Months Ended
	Dec. 31, 2016
Inventory	7. Inventory The Company evaluates expiry risk by evaluating current and future product demand relative to product shelf life. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. Inventory levels are evaluated for the amount of inventory that would be sold within one year. At certain times, the level of inventory can exceed the forecasted level of cost of goods sold for the next twelve months. The Company classifies the estimate of such inventory as non-current. Inventory consisted of the following as of December 31, 2016 and 2015: December 31, (in thousands) 2016 2015 Current assets Work-in-process $ 17 $ — Finished goods 762 1,294 $ 779 $ 1,294 Non-Current Raw materials $ 127 $ 127 Work-in-process 2,225 2,369 Finished goods 83 — $ 2,435 $ 2,496

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	12 Months Ended
	Dec. 31, 2016
Prepaid Expenses and Other Current Assets	8. Prepaid Expenses and Other Current Assets The following is a summary of the Company’s prepaid expenses and other current assets as of December 31, 2016 and 2015: December 31, (in thousands) 2016 2015 Research and development expenses $ 2,397 $ 2,948 Consulting and other professional fees 6,051 1,815 Prepaid royalties 1,761 — Other 1,579 979 $ 11,788 $ 5,742

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2016
Property and Equipment	9. Property and Equipment The following is a summary of the Company’s property and equipment, at cost, as of December 31, 2016 and 2015: Estimated Useful Life (Years) December 31, (in thousands) 2016 2015 Computer and other equipment 3 $ 2,426 $ 2,046 Furniture and fixtures 5 - 7 1,412 1,318 Leasehold improvements 5 -11 4,408 3,519 8,246 6,883 Accumulated depreciation and amortization (3,231 ) (2,313 ) $ 5,015 $ 4,570 Depreciation expense was $0.9 million, $0.6 million and $0.5 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2016
Intangible Assets	10. Intangible Assets The following is a summary of the Company’s intangible assets as of December 31, 2016: December 31, 2016 (in thousands) Estimated Useful Gross Accumulated Net HETLIOZ ® January 2033 $ 33,000 $ 5,181 $ 27,819 Fanapt ® November 2016 27,941 27,941 — $ 60,941 $ 33,122 $ 27,819 The following is a summary of the Company’s intangible assets as of December 31, 2015: December 31, 2015 (in thousands) Estimated Useful Gross Accumulated Net HETLIOZ ® January 2033 $ 33,000 $ 3,460 $ 29,540 Fanapt ® November 2016 27,941 18,729 9,212 $ 60,941 $ 22,189 $ 38,752 HETLIOZ ® . ® ® ® ® The Company is obligated to make a future milestone payment to BMS of $25.0 million in the event that cumulative worldwide sales of HETLIOZ ® ® ® ® ® ® Fanapt ® ® ® Pursuant to the Settlement Agreement, Novartis transferred all U.S. and Canadian rights in the Fanapt ® ® ® ® ® Intangible assets are amortized over their estimated useful economic life using the straight line method. Total amortization expense was $10.9 million, $13.0 million and $2.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. The following is a summary of the future intangible asset amortization schedule as of December 31, 2016: (in thousands) Total 2017 2018 2019 2020 2021 Thereafter HETLIOZ ® $ 27,819 $ 1,721 $ 1,721 $ 1,721 $ 1,721 $ 1,721 $ 19,214

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	12 Months Ended
	Dec. 31, 2016
Accounts Payable and Accrued Liabilities	11. Accounts Payable and Accrued Liabilities The following is a summary of the Company’s accounts payable and accrued liabilities as of December 31, 2016 and 2015: December 31, (in thousands) 2016 2015 Research and development expenses $ 3,024 $ 3,199 Consulting and other professional fees 3,192 5,088 Compensation and employee benefits 4,291 468 Royalties payable 4,555 5,328 Other 1,134 1,684 $ 16,196 $ 15,767

Deferred Licensing Revenue

Deferred Licensing Revenue	12 Months Ended
	Dec. 31, 2016
Deferred Licensing Revenue	12. Deferred Licensing Revenue The following is a summary of changes in deferred licensing revenue for the year ended December 31, 2014: (in thousands) Year Ended Balance December 31, 2013 $ 90,275 Licensing revenue recognized (30,746 ) Recognized as part of gain on arbitration settlement (59,529 ) Balance December 31, 2014 $ — During the year ended December 31, 2014, the Company recognized revenue of $30.7 million related to the amended and restated sublicense agreement with Novartis entered into in 2009. In connection with the Settlement Agreement, the Company recognized the remaining deferred revenue balance of $59.5 million during year ended December 31, 2014, as part of the gain on arbitration settlement. See Note 3, Settlement Agreement with Novartis

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies	13. Commitments and Contingencies Operating Leases Commitments relating to operating leases represent the minimum annual future payments under operating leases and subleases for a total of 40,188 square feet of office space for the Company’s headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. that expire in 2026, the operating lease for 2,880 square feet of office space for the Company’s European headquarters in London that has a noncancellable lease term ending in 2021, and 1,249 square feet of office space in Berlin under a short-term operating lease. The following is a summary of the minimum annual future payments under operating leases and subleases for office space as of December 31, 2016: Cash payments due by year (in thousands) Total 2017 2018 2019 2010 2021 Thereafter Operating leases $ 21,623 $ 1,981 $ 2,216 $ 2,271 $ 2,327 $ 2,170 $ 10,658 In 2011, the Company entered into an operating lease for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. A lease amendment in 2014 increased the office space under lease to 30,260 square feet, and a lease amendment in June 2016 extended the lease term from April 2023 to September 2026. Subject to the prior rights of other tenants, the Company has the right to renew the lease for five years following its expiration. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. The lease may be terminated early by the Company or the landlord under certain circumstances. In June 2016, the Company entered into a sublease under which the Company will lease 9,928 square feet of office space for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. The sublease term begins in January 2017 and ends in July 2026, but may be terminated earlier by either party under certain circumstances. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. Rent expense under operating leases and subleases, was $2.5 million, $1.9 million and $1.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. Guarantees and Indemnifications The Company has entered into a number of standard intellectual property indemnification agreements in the ordinary course of its business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with any U.S. patent or any copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The term of these indemnification agreements is generally perpetual from the date of execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. Since inception, the Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. The Company also indemnifies its officers and directors for certain events or occurrences, subject to certain conditions. License Agreements The Company’s rights to develop and commercialize its products are subject to the terms and conditions of licenses granted to the Company by other pharmaceutical companies. HETLIOZ ® . ® ® ® ® ® ® ® ® ® ® ® ® The license agreement was amended in April 2013 to add a process that would allow BMS to waive the right to develop and commercialize HETLIOZ ® ® Either party may terminate the HETLIOZ ® Fanapt ® . ® ® ® ® ® ® ® ® ® ® Pursuant to the terms of the Settlement Agreement with Novartis, Novartis transferred all U.S. and Canadian rights in the Fanapt ® ® ® ® The Company has entered into distribution agreements with Probiomed S.A. de C.V. for the commercialization of Fanapt ® ® Tradipitant. AQW051. ® Research and Development and Marketing Agreements In the course of its business, the Company regularly enters into agreements with clinical organizations to provide services relating to clinical development and clinical manufacturing activities under fee service arrangements. The Company’s current agreements for clinical services may be terminated on generally 60 days’ notice without incurring additional charges, other than charges for work completed but not paid for through the effective date of termination and other costs incurred by the Company’s contractors in closing out work in progress as of the effective date of termination.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Taxes	14. Income Taxes The Company recorded total tax expense of $0.1 million on consolidated pretax loss of $17.9 million, consisting of $18.1 million of pretax loss in the U.S. and $0.2 million of pretax income from foreign subsidiaries. The following is a summary of the provision (benefit) for income taxes for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, (in thousands) 2016 2015 2014 Current: Federal $ — $ — $ — State 66 — — Foreign 142 — — Deferred: Federal — — — State — — — Foreign (104 ) — — Provision for income taxes $ 104 $ — $ — Deferred tax assets are reduced by a tax valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The fact that the Company has historically generated pretax losses in the U.S. serves as strong evidence that it is more likely than not that deferred tax assets in the U.S. will not be realized in the future. Therefore, the Company had a full tax valuation allowance against all deferred tax assets in the U.S. as of December 31, 2016 and 2015. As a result of the tax valuation allowance against deferred tax assets in the U.S., there was no benefit for income taxes for the years ended December 31, 2016 and 2015 and there was no provision for income taxes for the years ended December 31, 2015 and 2014. The following is reconciliation between the federal statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, 2016 2015 2014 Federal tax at statutory rate 35.0 % 35.0 % 34.0 % State taxes 0.8 % -0.1 % 7.2 % Change in valuation allowance -38.4 % -25.4 % -59.7 % Research and development credit 3.8 % 1.5 % 1.3 % Orphan drug credit 7.6 % 1.6 % 8.5 % Section 162(m) limitation 0.0 % -5.7 % 1.1 % Tax rate change 3.9 % -0.3 % 4.8 % Change in state NOLs 0.0 % -1.4 % 0.0 % Non-deductible -12.5 % -5.1 % 0.0 % Other non-deductible -0.8 % -0.1 % 2.8 % Effective tax rate -0.6 % 0.0 % 0.0 % The following is a summary of the components of the Company’s deferred tax assets, net, and the related tax valuation allowance as of December 31, 2016 and 2015: December 31, (in thousands) 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 84,177 $ 83,686 Stock-based compensation 12,443 12,919 Accrued and deferred expenses 2,558 1,443 Research and development and orphan drug credit carryforwards 41,104 38,333 Intangible assets 5,477 2,954 Other 1,019 802 Total deferred tax assets 146,778 140,137 Deferred tax liabilities: Other (666 ) (1,100 ) Total deferred tax liabilities (666 ) (1,100 ) Deferred tax assets, net 146,112 139,037 Valuation allowance (146,012 ) (139,037 ) Net deferred tax assets $ 100 $ — The Company’s net deferred tax asset of $0.1 million as of December 31, 2016 was included as a component of non-current inventory and other in the consolidated balance sheet. The following is a summary of changes in the Company’s tax valuation allowance for the years ended December 31, 2016, 2015 and 2014: (in thousands) Balance at Additions Reductions Balance at Year Ended: December 31, 2016 $ 139,037 $ 11,031 $ (4,056 ) $ 146,012 December 31, 2015 128,890 17,002 (6,855 ) 139,037 December 31, 2014 141,150 27,893 (40,153 ) 128,890 As of December 31, 2016, the Company had federal and state net operating loss (NOL) carryforwards of $228.0 million, including $8.7 million of gross excess windfall benefits generated from stock-based compensation from which the tax benefit would be recorded to Additional Paid-in Capital if realized. As of December 31, 2016, the Company also had research and development credits of $7.5 million and orphan drug carryforward credits of $33.7 million. These NOL carryforwards and credits will begin to expire in 2028 and 2024, respectively. Because the Company has generated NOLs from inception through December, 31, 2016, all income tax returns filed by the Company are open to examination by tax jurisdictions. As of December 31, 2016, the Company’s income tax returns had not been under examination by any federal or state tax jurisdictions. As of December 31, 2016 and 2015, the Company had no uncertain tax positions. Certain tax attributes of the Company, including NOLs and credits, are potentially subject to a limitation should an ownership change as defined under the Internal Revenue Code of 1986, as amended (IRC), Section 382, occur. The limitations resulting from a change in ownership could affect the Company’s ability to use NOLs and credit carryforward (tax attributes). Ownership changes did occur as of December 31, 2014 and December 31, 2008. However, the Company believes that it had sufficient Built-In-Gain to offset the IRC Section 382 limitation generated by the ownership changes. Any future ownership changes may cause the Company’s existing tax attributes to have additional limitations. Additionally, the Company maintains a valuation allowance on its tax attributes, therefore, any IRC Section 382 limitation would not have a material impact on the Company’s provision for income taxes as of December 31, 2016.

Public Offering of Common Stock

Public Offering of Common Stock	12 Months Ended
	Dec. 31, 2016
Public Offering of Common Stock	15. Public Offering of Common Stock In October 2014, the Company completed a public offering of 5,750,000 shares of common stock at a price to the public of $11.60 per share. Net cash proceeds from the public offering were $62.3 million, after deducting the underwriting discounts and commissions and offering expenses.

Equity Incentive Plans

Equity Incentive Plans	12 Months Ended
	Dec. 31, 2016
Equity Incentive Plans	16. Equity Incentive Plans As of December 31, 2016, there were 6,686,764 shares that were subject to outstanding options and RSUs under the 2006 Equity Incentive Plan (the 2006 Plan) and the 2016 Equity Incentive Plan (the 2016 Plan) (collectively, the Plans). The 2006 Plan expired by its terms on April 12, 2016. Outstanding options and RSUs under the 2006 Plan remain in effect and the terms of the 2006 Plan continue to apply, but no additional awards can be granted under the 2006 Plan. On June 16, 2016, the Company’s stockholders approved the 2016 Plan. There are 2,000,000 shares of common stock reserved for issuance under the 2016 Plan, of which 1,822,500 shares remained available for future grant as of December 31, 2016. Stock Options The Company has granted option awards under the Plans with service conditions (service option awards) that are subject to terms and conditions established by the compensation committee of the board of directors. Service option awards have 10-year contractual terms and all service option awards granted prior to December 31, 2006, service option awards granted to new employees, and certain service option awards granted to existing employees vest and become exercisable on the first anniversary of the grant date with respect to the 25% of the shares subject to service option awards. The remaining 75% of the shares subject to the service option awards vest and become exercisable monthly in equal installments thereafter over three years. Certain service option awards granted to existing employees after December 31, 2006 vest and become exercisable monthly in equal installments over four years. The initial service option awards granted to directors upon their election vest and become exercisable in equal monthly installments over a period of four years, while the subsequent annual service option awards granted to directors vest and become exercisable in equal monthly installments over a period of one year. Certain service option awards to executives and directors provide for accelerated vesting if there is a change in control of the Company. Certain service option awards to employees and executives provide for accelerated vesting if the respective employee’s or executive’s service is terminated by the Company for any reason other than cause or permanent disability. As of December 31, 2016, $8.9 million of unrecognized compensation costs related to unvested service option awards are expected to be recognized over a weighted average period of 1.2 years. No option awards are classified as a liability as of December 31, 2016. The Company’s equity incentive plan, the Second Amended and Restated Management Equity Plan (the 2004 Plan), expired by its terms in 2014 and no additional options will be granted under the 2004 Plan. There were no shares subject to outstanding options granted under the 2004 Plan as of December 31, 2016 and 2015. The following is a summary of option activity for the 2004 Plan for the years ended December 31, 2015 and 2014: 2004 Plan (in thousands, except for share and per share amounts) Number of Weighted Average Weighted Average Aggregate Outstanding at December 31, 2013 670,744 $ 1.79 1.78 $ 7,124 Exercised (17,934 ) 3.57 Outstanding at December 31, 2014 652,810 1.74 0.78 8,212 Exercised (652,810 ) 1.74 6,129 Outstanding at December 31, 2015 — The following is a summary of option activity for the 2006 Plan and the 2016 Plan for the years ended December 31, 2016, 2015, and 2014: 2006 and 2016 Plans (in thousands, except for share and per share amounts) Number of Weighted Average Weighted Average Aggregate Outstanding at December 31, 2013 5,533,618 $ 10.98 6.93 $ 21,264 Granted 1,324,337 12.17 Forfeited (237,108 ) 8.35 Exercised (393,735 ) 7.08 2,923 Outstanding at December 31, 2014 6,227,112 11.58 6.71 28,523 Granted 1,056,500 11.74 Forfeited (496,854 ) 10.75 Expired (64,336 ) 25.69 Exercised (469,974 ) 7.02 2,594 Outstanding at December 31, 2015 6,252,448 11.87 6.16 7,498 Granted 866,011 8.43 Forfeited (392,700 ) 11.23 Expired (279,766 ) 17.38 Exercised (897,657 ) 8.63 4,264 Outstanding at December 31, 2016 5,548,336 11.62 5.58 32,453 Exercisable at December 31, 2016 3,983,012 12.07 4.45 23,924 Vested and expected to vest at December 31, 2016 5,450,280 11.66 5.52 31,850 The weighted average grant-date fair value of options granted was $4.53, $6.59 and $6.99 per share for the years ended December 31, 2016, 2015 and 2014, respectively. Proceeds from the exercise of stock options amounted to $7.8 million, $4.4 million and $2.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. Restricted Stock Units An RSU is a stock award that entitles the holder to receive shares of the Company’s common stock as the award vests. The fair value of each RSU is based on the closing price of the Company’s stock on the date of grant. The Company has granted RSUs under the Plans with service conditions (service RSUs) that vest in four equal annual installments provided that the employee remains employed with the Company. As of December 31, 2016, $8.2 million of unrecognized compensation costs related to unvested service RSUs are expected to be recognized over a weighted average period of 1.8 years. No RSUs are classified as a liability as of December 31, 2016. The following is a summary of RSU activity for the 2006 Plan and the 2016 Plan for the years ended December 31, 2016, 2015, and 2014: RSUs Number of Weighted Unvested at December 31, 2013 883,690 $ 7.70 Granted 436,115 12.28 Forfeited (84,282 ) 6.75 Vested (209,562 ) 6.67 Unvested at December 31, 2014 1,025,961 9.94 Granted 417,000 11.51 Forfeited (189,187 ) 10.60 Vested (231,093 ) 7.96 Unvested at December 31, 2015 1,022,681 10.90 Granted 657,742 8.71 Forfeited (254,329 ) 10.38 Vested (287,666 ) 9.65 Unvested at December 31, 2016 1,138,428 10.07 The grant date fair value for the 287,666 shares underlying RSUs that vested during the year ended December 31, 2016 was $2.8 million. Stock-Based Compensation Expense Stock-based compensation expense recognized for the years ended December 31, 2016, 2015 and 2014 was allocated as follows: Year Ended December 31, (in thousands) 2016 2015 2014 Research and development $ 2,087 $ 2,269 $ 1,933 Selling, general and administrative 6,456 5,692 3,945 $ 8,543 $ 7,961 $ 5,878 The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model that uses the assumptions noted in the following table. Expected volatility rates are based on the historical volatility of the Company’s publicly traded common stock. The risk-free interest rates are based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The Company has not paid dividends to its stockholders since its inception (other than a dividend of preferred share purchase rights, which was declared in September 2008) and does not plan to pay dividends in the foreseeable future. Assumptions used in the Black-Scholes-Merton option pricing model for employee and director stock options granted during the years ended December 31, 2016, 2015 and 2014 were as follows: Year Ended December 31, 2016 2015 2014 Expected dividend yield 0 % 0 % 0 % Weighted average expected volatility 57 % 60 % 62 % Weighted average expected term (years) 6.08 6.00 5.90 Weighted average risk-free rate 1.37 % 1.67 % 1.73 %

Employee Benefit Plan

Employee Benefit Plan	12 Months Ended
	Dec. 31, 2016
Employee Benefit Plan	17. Employee Benefit Plan The Company has a defined contribution plan under IRC Section 401(k). This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Currently, the Company matches 50 percent up to the first six percent of employee contributions. All matching contributions have been paid by the Company. The Company match vests over a four-year period and amounted to $0.4 million, $0.3 million and $0.2 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Legal Matters

Legal Matters	12 Months Ended
	Dec. 31, 2016
Legal Matters	18. Legal Matters In June 2014, the Company filed suit against Roxane Laboratories, Inc. (Roxane) in the U.S. District Court for the District of Delaware (the Delaware District Court). The suit seeks an adjudication that Roxane has infringed one or more claims of the Company’s U.S. Patent No. 8,586,610 (the ‘610 Patent) by submitting to the FDA an Abbreviated New Drug Application (ANDA) for a generic version of Fanapt ® ® In 2015, the Company filed six separate patent infringement lawsuits in the Delaware District Court against Roxane, Inventia Healthcare Pvt. Ltd. (Inventia), Lupin Ltd. and Lupin Pharmaceuticals, Inc. (Lupin), Taro Pharmaceuticals USA, Inc. and Taro Pharmaceutical Industries, Ltd. (Taro), and Apotex Inc. and Apotex Corp., (collectively, the Defendants). The lawsuits each seek an adjudication that the respective Defendants infringed one or more claims of the ‘610 Patent and/or the Company’s U.S. Patent No. 9,138,432 (the ‘432 Patent) by submitting to the FDA an ANDA for a generic version of Fanapt ® Lupin filed counter claims for declaratory judgment of invalidity and noninfringement of seven of the Company’s method of treatment patents that are listed in the Approved Drug Products with Therapeutic Equivalence Evaluations ® On October 24, 2016, the Company entered into a License Agreement with Taro to resolve the Company’s patent litigation against Taro regarding Taro’s ANDA seeking approval of its generic version of Fanapt ® ® ® On December 7, 2016, the Company entered into a License Agreement with Apotex to resolve the Company’s patent litigation against Apotex regarding Apotex’s ANDA seeking approval of its generic version of Fanapt ® ® ® On February 26, 2016, Roxane filed suit against the Company in the U.S. District Court for the Southern District of Ohio. The suit seeks a declaratory judgment of invalidity and noninfringement of the Method of Treatment Patents. The Company has not sued Roxane for infringing the Method of Treatment Patents. The Company filed a motion to dismiss this lawsuit for lack of personal jurisdiction or to transfer the lawsuit to the Delaware District Court. On December 20, 2016, the Ohio District Court ruled in our favor, dismissing Roxane’s suit without prejudice for lack of personal jurisdiction. On February 26, 2016, Roxane filed a Petition for Inter Partes

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Data (Unaudited)	19. Quarterly Financial Data (Unaudited) The following is a summary of quarterly financial data for the years ended December 31, 2016 and 2015: (in thousands, except for per share amounts) First Second Third Fourth Year Ended December 31, 2016 Revenue $ 33,262 $ 36,029 $ 38,482 $ 38,244 Gross profit (1) 24,363 26,593 28,549 30,867 Loss from operations (12,475 ) (4,789 ) (653 ) (654 ) Net loss (12,358 ) (4,618 ) (430 ) (604 ) Net loss per share, basic and diluted $ (0.29 ) $ (0.11 ) $ (0.01 ) $ (0.01 ) Year Ended December 31, 2015 Revenue $ 22,150 $ 27,582 $ 28,344 $ 31,849 Gross profit (1) 12,991 18,874 18,891 22,735 Loss from operations (10,293 ) (5,458 ) (9,541 ) (14,893 ) Net loss (10,221 ) (5,386 ) (9,461 ) (14,797 ) Net loss per share, basic and diluted $ (0.24 ) $ (0.13 ) $ (0.22 ) $ (0.35 ) (1) Gross profit includes revenue less cost of goods sold, excluding amortization and intangible asset amortization.

Business Organization and Pre27

Business Organization and Presentation (Policies)	12 Months Ended
	Dec. 31, 2016
Business organization	Business organization Vanda Pharmaceuticals Inc. (the Company) is a global biopharmaceutical company focused on the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. The Company commenced its operations in 2003 and operates in one reporting segment. The Company’s portfolio includes the following products: • HETLIOZ ® ® ® ® • Fanapt ® ® ® ® ® • Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist, which is presently in clinical development for the treatment of chronic pruritus in atopic dermatitis and gastroparesis. • Trichostatin A, a small molecule histone deacetylase (HDAC) inhibitor. • AQW051, a Phase II alpha-7 nicotinic acetylcholine receptor partial agonist.
Basis of presentation	Basis of presentation The accompanying consolidated financial statements includes the accounts of Vanda Pharmaceuticals Inc. and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. The Company has estimated its annual fees for Fanapt ®
Cash and Cash Equivalents	Cash and Cash Equivalents For purposes of the consolidated balance sheets and consolidated statements of cash flows, cash equivalents represent highly-liquid investments with a maturity date of three months or less at the date of purchase. Restricted cash of $0.8 million relating primarily to leases for office space is included in other current and other non-current assets at December 31, 2016 and 2015.
Marketable Securities	Marketable Securities The Company classifies all of its marketable securities as available-for-sale securities. The Company’s investment policy requires the selection of high-quality issuers, with bond ratings of AAA to A1+/P1. Available-for-sale securities are carried at fair market value, with unrealized gains and losses reported as a component of stockholders’ equity in accumulated other comprehensive income/loss. Interest and dividend income is recorded when earned and included in interest income. Premiums and discounts on marketable securities are amortized and accreted, respectively, to maturity and included in interest income. The Company uses the specific identification method in computing realized gains and losses on the sale of investments, which would be included in the consolidated statements of operations when generated. Marketable securities with a maturity of more than one year as of the balance sheet date and which the Company does not intend to sell within the next twelve months are classified as non-current. All other marketable securities are classified as current.
Inventory	Inventory Inventory, which is recorded at the lower of cost or net realizable value, includes the cost of third-party manufacturing and other direct and indirect costs and is valued using the first-in, first-out method. The Company capitalizes inventory costs associated with its products upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. Inventory is evaluated for impairment by consideration of factors such as lower of cost or net realizable value, obsolescence or expiry. Inventory not expected to be consumed within 12 months following the balance sheet date are classified as non-current.
Intangible Assets	Intangible Assets Costs incurred for products not yet approved by the FDA and for which no alternative future use exists are recorded as expense. In the event a product has been approved by the FDA or an alternative future use exists for a product, patent and license costs are capitalized and amortized over the expected patent life of the related product. Milestone payments to the Company’s partners are recognized when it is deemed probable that the milestone event will occur.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation. The costs of leasehold improvements funded by or reimbursed by the lessor are capitalized and amortized as leasehold improvements along with a corresponding deferred rent liability. Depreciation of most property and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized using a straight-line basis over the lesser of the estimated useful lives of the assets or the terms of the related leases. The costs of additions and improvements are capitalized, and repairs and maintenance costs are charged to operations in the period incurred. Upon retirement or disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the statement of operations for that period.
Accounts Payable and Accrued Liabilities	Accounts Payable and Accrued Liabilities The Company’s management is required to estimate accrued liabilities as part of the process of preparing financial statements. The estimation of accrued liabilities involves identifying services that have been performed on the Company’s behalf, and then estimating the level of service performed and the associated cost incurred for such services as of each balance sheet date in the financial statements. Accrued liabilities include professional service fees, such as lawyers and accountants, contract service fees, such as those under contracts with clinical monitors, data management organizations and investigators in conjunction with clinical trials, fees to contract manufacturers in conjunction with the production of clinical materials, and fees for marketing and other commercialization activities. Pursuant to management’s assessment of the services that have been performed on clinical trials and other contracts, the Company recognizes these expenses as the services are provided. Such management assessments include, but are not limited to: (i) an evaluation by the project manager of the work that has been completed during the period, (ii) measurement of progress prepared internally and/or provided by the third-party service provider, (iii) analyses of data that justify the progress, and (iv) management’s judgment. In the event that the Company does not identify certain costs that have begun to be incurred or the Company under- or over-estimates the level of services performed or the costs of such services, the Company’s reported expenses for such period would be too low or too high.
Net Product Sales	Net Product Sales The Company’s net product sales consist of sales of HETLIOZ ® ® Year Ended December 31, (in thousands) 2016 2015 2014 HETLIOZ ® $ 71,671 $ 44,302 $ 12,802 Fanapt ® 74,346 65,623 107 $ 146,017 $ 109,925 $ 12,909 The Company applies the revenue recognition guidance in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Subtopic 605-15, Revenue Recognition—Products Product Sales Discounts and Allowances The Company’s product sales are recorded net of applicable discounts, chargebacks, rebates, co-pay assistance, service fees and product returns that are applicable for various government and commercial payors. Reserves established for discounts and returns are classified as reductions of accounts receivable if the amount is payable to direct customers, with the exception of service fees. Service fees are classified as a liability. Reserves established for chargebacks, rebates or co-pay assistance are classified as a liability if the amount is payable to a party other than customers. The Company currently records sales allowances for the following: Rebates: Chargebacks: Medicare Part D Coverage Gap: Service Fees: Co-payment Assistance: Prompt-pay: Product Returns: (in thousands) Balance at December 31, 2013 $ — Additions 85 Balance at December 31, 2014 85 Additions 986 Credits/payments (12 ) Balance at December 31, 2015 1,059 Additions 2,507 Credits/payments (486 ) Balance at December 31, 2016 $ 3,080 License Revenue The Company’s license and royalty revenue for the year ended December 31, 2014 was derived from the amended and restated sublicense agreement with Novartis. Pursuant to the amended and restated sublicense agreement, Novartis had the right to commercialize and develop Fanapt ® ® ® Settlement Agreement with Novartis
Major Customers	Major Customers HETLIOZ ® ® Year Ended December 31, Percent of Total Revenues 2016 2015 2014 Distributor A 23 % 14 % — Distributor B 16 % 18 % — Distributor C 16 % 19 % — Distributor D 16 % 14 % — Distributor E 15 % 17 % — Distributor F — 12 % — Novartis royalty revenue — — 13 % Novartis license agreement — — 61 % The following table presents each major customer that represented more than 10% of accounts receivable, net, as of December 31, 2016 and 2015: December 31, Percent of Accounts Receivable, Net 2016 2015 Distributor A 22 % 12 % Distributor B 19 % 24 % Distributor C 15 % 17 % Distributor D 11 % 12 % Distributor E 25 % 22 %
Cost of Goods Sold	Cost of Goods Sold Cost of goods sold includes royalties payable, the cost of inventory sold, manufacturing and supply chain costs and product shipping and handling costs related to U.S. sales of HETLIOZ ® ®
Research and Development Expenses	Research and Development Expenses Research and development expenses consist primarily of fees for services provided by third parties in connection with the clinical trials, costs of contract manufacturing services, milestone payments, costs of materials used in clinical trials and research and development, costs for regulatory consultants and filings, depreciation of capital resources used to develop products, related facilities costs, and salaries, other employee-related costs and stock-based compensation for research and development personnel. The Company expenses research and development costs as they are incurred for products in the development stage, including manufacturing costs and milestone payments made under license agreements prior to FDA approval. Upon and subsequent to FDA approval, manufacturing and milestone payments related to license agreements are capitalized. Milestone payments are accrued when it is deemed probable that the milestone event will be achieved. Costs related to the acquisition of intellectual property are expensed as incurred if the underlying technology is developed in connection with the Company’s research and development efforts and has no alternative future use.
Selling, General and Administrative Expenses	Selling, General and Administrative Expenses Selling, general and administrative expenses consist of salaries, stock-based compensation, facilities and third party expenses. Selling, general and administrative expenses are associated with the activities of the executive, finance, accounting, information technology, business development, commercial support, trade and distribution, sales, marketing, legal, medical affairs and human resource functions. Additionally, selling, general and administrative expenses included an estimate for the annual Patient Protection and Affordable Care fee.
Stock-Based Compensation	Stock-Based Compensation Compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The fair value of stock options granted and restricted stock units (RSUs) awarded are amortized using the straight-line method. As stock-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates
Advertising Expense	Advertising Expense The Company expenses the costs of advertising, including branded promotional expenses, as incurred. Branded advertising expenses, recorded in selling, general and administrative expenses, were $1.4 million, $3.4 million and $5.0 million for the years ended December 31, 2016, 2015 and 2014, respectively.
Foreign Currency	Foreign Currency The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s international subsidiaries is the local currency. Assets and liabilities, including inter-company balances for which settlement is anticipated in the foreseeable future, denominated in foreign currencies are translated at exchange rates in effect at the balance sheet date. Foreign currency equity balances are translated at historical rates. Revenues and expenses denominated in foreign currencies are translated at average exchange rates for the respective periods. Foreign currency translation adjustments are recorded in accumulated other comprehensive income. Transactions denominated in currencies other than subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in the consolidated balance sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions. Foreign currency transaction gains and losses are included in other income and amounted to a loss of $0.2 million for the year ended December 31, 2016. Foreign currency transaction gains and losses were not material for the years ended December 31, 2015 and 2014.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with the authoritative guidance on accounting for income taxes, which requires companies to account for deferred income taxes using the asset and liability method. Under the asset and liability method, current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax rate changes are reflected in income during the period such changes are enacted. Changes in ownership may limit the amount of NOL carryforwards that can be utilized in the future to offset taxable income.
Non-Cash Investing and Financing Activities	Non-Cash Investing and Financing Activities Purchases of property and equipment accrued in current liabilities amounted to $0.2 million for each of the years ended December 31, 2016 and 2015 and zero for the year ended December 31, 2014. The acquisition of an intangible asset relating to HETLIOZ ® ®
Certain Risks and Uncertainties	Certain Risks and Uncertainties The Company’s products under development require approval from the FDA or other international regulatory agencies prior to commercial sales. There can be no assurance the products will receive the necessary clearance. If the Company is denied clearance or clearance is delayed, it may have a material adverse impact on the Company. The Company’s products are concentrated in rapidly-changing, highly-competitive markets, which are characterized by rapid technological advances, changes in customer requirements and evolving regulatory requirements and industry standards. Any failure by the Company to anticipate or to respond adequately to technological developments in its industry, changes in customer requirements or changes in regulatory requirements or industry standards or any significant delays in the development or introduction of products or services could have a material adverse effect on the Company’s business, operating results and future cash flows. The Company depends on single source suppliers for critical raw materials for manufacturing, as well as other components required for the administration of its products. The loss of these suppliers could delay the clinical trials or prevent or delay commercialization of the products.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash, cash equivalents and marketable securities. The Company places its cash, cash equivalents and marketable securities with highly-rated financial institutions. At December 31, 2016, the Company maintained all of its cash, cash equivalents and marketable securities in three financial institutions. Deposits held with these institutions may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and the Company believes there is minimal risk of losses on such balances.
Segment and Geographic Information	Segment and Geographic Information The Company operates in one reporting segment and, accordingly, no segment disclosures are presented herein. HETLIOZ ®
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2016 the FASB issued Accounting Standards Update (ASU) 2016-18, Restricted Cash In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, In February 2016, the FASB issued ASU 2016-02, Leases In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers Revenue from Contracts with Customers, Principal versus Agent Considerations (Reporting Revenue versus Net), Revenue from Contracts with Customers, identifying Performance Obligations and Licensing Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients,

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Net Sales by Product	The Company’s net product sales consist of sales of HETLIOZ ® ® Year Ended December 31, (in thousands) 2016 2015 2014 HETLIOZ ® $ 71,671 $ 44,302 $ 12,802 Fanapt ® 74,346 65,623 107 $ 146,017 $ 109,925 $ 12,909
Summary of Accounts Receivable Allowance Activity	The following table summarizes activity for product returns as of and for the years ended December 31, 2016, 2015 and 2014: (in thousands) Balance at December 31, 2013 $ — Additions 85 Balance at December 31, 2014 85 Additions 986 Credits/payments (12 ) Balance at December 31, 2015 1,059 Additions 2,507 Credits/payments (486 ) Balance at December 31, 2016 $ 3,080
Schedule of Major Customers that Represented More Than 10% of Total Revenues	The following table presents each major customer that represented more than 10% of total revenues for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, Percent of Total Revenues 2016 2015 2014 Distributor A 23 % 14 % — Distributor B 16 % 18 % — Distributor C 16 % 19 % — Distributor D 16 % 14 % — Distributor E 15 % 17 % — Distributor F — 12 % — Novartis royalty revenue — — 13 % Novartis license agreement — — 61 %
Schedule of Major Customers that Represented More Than 10% of Accounts Receivable, Net	The following table presents each major customer that represented more than 10% of accounts receivable, net, as of December 31, 2016 and 2015: December 31, Percent of Accounts Receivable, Net 2016 2015 Distributor A 22 % 12 % Distributor B 19 % 24 % Distributor C 15 % 17 % Distributor D 11 % 12 % Distributor E 25 % 22 %

Settlement Agreement with Nov29

Settlement Agreement with Novartis (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value of Consideration Exchanged as Part of Settlement Agreement	The following summarizes the fair value of consideration exchanged as part of the Settlement Agreement: (in thousands) Equity issued $ 25,904 Cash received (25,000 ) Settlement of pre-existing non-contractual 18,087 $ 18,991
Assets Acquired and Recorded at Fair Value	Assets acquired and recorded at fair value as of December 31, 2014 were as follows: (in thousands) Inventory $ 2,960 Intangible—Re-acquired 15,940 Prepaid services 91 $ 18,991

Earnings per Share (Tables)

Earnings per Share (Tables)	12 Months Ended
	Dec. 31, 2016
Basic and Diluted Net Income (Loss) Per Share of Common Stock	The following table presents the calculation of basic and diluted net income (loss) per share of common stock for the years ended December 31, 2016, 2015, and 2014: Year Ended December 31, (in thousands, except for share and per share amounts) 2016 2015 2014 Numerator: Net income (loss) $ (18,010 ) $ (39,865 ) $ 20,186 Denominator: Weighted average shares outstanding: Basic 43,449,441 42,250,254 34,774,163 Effect of dilutive securities — — 1,912,560 Weighted average shares outstanding: Diluted 43,449,441 42,250,254 36,686,723 Net income (loss) per share, basic and diluted: Basic $ (0.41 ) $ (0.94 ) $ 0.58 Diluted $ (0.41 ) $ (0.94 ) $ 0.55 Antidilutive securities excluded from calculations of diluted net income (loss) per share 4,943,797 5,660,199 3,524,656

Marketable Securities (Tables)

Marketable Securities (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Available-for-Sale Marketable Securities	The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2016, all of which have contract maturities of less than one year: December 31, 2016 (in thousands) Amortized Gross Gross Fair U.S. Treasury and government agencies $ 50,661 $ 3 $ (17 ) $ 50,647 Corporate debt 50,194 89 (16 ) 50,267 $ 100,855 $ 92 $ (33 ) $ 100,914 The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2015: December 31, 2015 (in thousands) Amortized Gross Gross Fair U.S. Treasury and government agencies $ 44,059 $ 6 $ (8 ) $ 44,057 Corporate debt 48,239 46 (5 ) 48,280 $ 92,298 $ 52 $ (13 ) $ 92,337

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2016
Assets Measured at Fair Value on Recurring Basis	The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2016, as follows: Fair Value Measurement as of December 31, 2016 Using (in thousands) December 31, Quoted Prices in Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-sale U.S. Treasury and government agencies $ 50,647 $ 50,647 $ — $ — Corporate debt 50,267 — 50,267 $ 100,914 $ 50,647 $ 50,267 $ — The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2015, as follows: Fair Value Measurement as of December 31, 2015 Using (in thousands) December 31, Quoted Prices in Significant Other Significant (Level 3) Available-for-sale U.S. Treasury and government agencies $ 44,057 $ 44,057 $ — $ — Corporate debt 48,280 — 48,280 $ 92,337 $ 44,057 $ 48,280 $ —

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory	Inventory consisted of the following as of December 31, 2016 and 2015: December 31, (in thousands) 2016 2015 Current assets Work-in-process $ 17 $ — Finished goods 762 1,294 $ 779 $ 1,294 Non-Current Raw materials $ 127 $ 127 Work-in-process 2,225 2,369 Finished goods 83 — $ 2,435 $ 2,496

Prepaid Expenses and Other Cu34

Prepaid Expenses and Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Prepaid Expenses, and Other Current Assets	The following is a summary of the Company’s prepaid expenses and other current assets as of December 31, 2016 and 2015: December 31, (in thousands) 2016 2015 Research and development expenses $ 2,397 $ 2,948 Consulting and other professional fees 6,051 1,815 Prepaid royalties 1,761 — Other 1,579 979 $ 11,788 $ 5,742

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Property and Equipment-at Cost	The following is a summary of the Company’s property and equipment, at cost, as of December 31, 2016 and 2015: Estimated Useful Life (Years) December 31, (in thousands) 2016 2015 Computer and other equipment 3 $ 2,426 $ 2,046 Furniture and fixtures 5 - 7 1,412 1,318 Leasehold improvements 5 -11 4,408 3,519 8,246 6,883 Accumulated depreciation and amortization (3,231 ) (2,313 ) $ 5,015 $ 4,570

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Intangible Assets	The following is a summary of the Company’s intangible assets as of December 31, 2016: December 31, 2016 (in thousands) Estimated Useful Gross Accumulated Net HETLIOZ ® January 2033 $ 33,000 $ 5,181 $ 27,819 Fanapt ® November 2016 27,941 27,941 — $ 60,941 $ 33,122 $ 27,819 The following is a summary of the Company’s intangible assets as of December 31, 2015: December 31, 2015 (in thousands) Estimated Useful Gross Accumulated Net HETLIOZ ® January 2033 $ 33,000 $ 3,460 $ 29,540 Fanapt ® November 2016 27,941 18,729 9,212 $ 60,941 $ 22,189 $ 38,752
Summary of Future Intangible Asset Amortization	The following is a summary of the future intangible asset amortization schedule as of December 31, 2016: (in thousands) Total 2017 2018 2019 2020 2021 Thereafter HETLIOZ ® $ 27,819 $ 1,721 $ 1,721 $ 1,721 $ 1,721 $ 1,721 $ 19,214

Accounts Payable and Accrued 37

Accounts Payable and Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Accounts Payable and Accrued Liabilities	The following is a summary of the Company’s accounts payable and accrued liabilities as of December 31, 2016 and 2015: December 31, (in thousands) 2016 2015 Research and development expenses $ 3,024 $ 3,199 Consulting and other professional fees 3,192 5,088 Compensation and employee benefits 4,291 468 Royalties payable 4,555 5,328 Other 1,134 1,684 $ 16,196 $ 15,767

Deferred Licensing Revenue (Tab

Deferred Licensing Revenue (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Changes in Deferred Licensing Revenue	The following is a summary of changes in deferred licensing revenue for the year ended December 31, 2014: (in thousands) Year Ended Balance December 31, 2013 $ 90,275 Licensing revenue recognized (30,746 ) Recognized as part of gain on arbitration settlement (59,529 ) Balance December 31, 2014 $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Minimum Annual Future Payments under Operating Leases and Subleases	The following is a summary of the minimum annual future payments under operating leases and subleases for office space as of December 31, 2016: Cash payments due by year (in thousands) Total 2017 2018 2019 2010 2021 Thereafter Operating leases $ 21,623 $ 1,981 $ 2,216 $ 2,271 $ 2,327 $ 2,170 $ 10,658

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Provision (Benefit) for Income Taxes	The following is a summary of the provision (benefit) for income taxes for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, (in thousands) 2016 2015 2014 Current: Federal $ — $ — $ — State 66 — — Foreign 142 — — Deferred: Federal — — — State — — — Foreign (104 ) — — Provision for income taxes $ 104 $ — $ —
Reconciliation Between Statutory Tax Rate and Effective Tax Rate	The following is reconciliation between the federal statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, 2016 2015 2014 Federal tax at statutory rate 35.0 % 35.0 % 34.0 % State taxes 0.8 % -0.1 % 7.2 % Change in valuation allowance -38.4 % -25.4 % -59.7 % Research and development credit 3.8 % 1.5 % 1.3 % Orphan drug credit 7.6 % 1.6 % 8.5 % Section 162(m) limitation 0.0 % -5.7 % 1.1 % Tax rate change 3.9 % -0.3 % 4.8 % Change in state NOLs 0.0 % -1.4 % 0.0 % Non-deductible -12.5 % -5.1 % 0.0 % Other non-deductible -0.8 % -0.1 % 2.8 % Effective tax rate -0.6 % 0.0 % 0.0 %
Components of Deferred Tax Assets, Net, and Related Valuation Allowance	The following is a summary of the components of the Company’s deferred tax assets, net, and the related tax valuation allowance as of December 31, 2016 and 2015: December 31, (in thousands) 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 84,177 $ 83,686 Stock-based compensation 12,443 12,919 Accrued and deferred expenses 2,558 1,443 Research and development and orphan drug credit carryforwards 41,104 38,333 Intangible assets 5,477 2,954 Other 1,019 802 Total deferred tax assets 146,778 140,137 Deferred tax liabilities: Other (666 ) (1,100 ) Total deferred tax liabilities (666 ) (1,100 ) Deferred tax assets, net 146,112 139,037 Valuation allowance (146,012 ) (139,037 ) Net deferred tax assets $ 100 $ —
Summary of Changes in Tax Valuation Allowance	The following is a summary of changes in the Company’s tax valuation allowance for the years ended December 31, 2016, 2015 and 2014: (in thousands) Balance at Additions Reductions Balance at Year Ended: December 31, 2016 $ 139,037 $ 11,031 $ (4,056 ) $ 146,012 December 31, 2015 128,890 17,002 (6,855 ) 139,037 December 31, 2014 141,150 27,893 (40,153 ) 128,890

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of RSU Activity for 2006 Plan and 2016 Plan	The following is a summary of RSU activity for the 2006 Plan and the 2016 Plan for the years ended December 31, 2016, 2015, and 2014: RSUs Number of Weighted Unvested at December 31, 2013 883,690 $ 7.70 Granted 436,115 12.28 Forfeited (84,282 ) 6.75 Vested (209,562 ) 6.67 Unvested at December 31, 2014 1,025,961 9.94 Granted 417,000 11.51 Forfeited (189,187 ) 10.60 Vested (231,093 ) 7.96 Unvested at December 31, 2015 1,022,681 10.90 Granted 657,742 8.71 Forfeited (254,329 ) 10.38 Vested (287,666 ) 9.65 Unvested at December 31, 2016 1,138,428 10.07
Stock-Based Compensation Expense	Stock-based compensation expense recognized for the years ended December 31, 2016, 2015 and 2014 was allocated as follows: Year Ended December 31, (in thousands) 2016 2015 2014 Research and development $ 2,087 $ 2,269 $ 1,933 Selling, general and administrative 6,456 5,692 3,945 $ 8,543 $ 7,961 $ 5,878
Black-Scholes-Merton Option Pricing Model for Employee and Director Stock Options Granted	Assumptions used in the Black-Scholes-Merton option pricing model for employee and director stock options granted during the years ended December 31, 2016, 2015 and 2014 were as follows: Year Ended December 31, 2016 2015 2014 Expected dividend yield 0 % 0 % 0 % Weighted average expected volatility 57 % 60 % 62 % Weighted average expected term (years) 6.08 6.00 5.90 Weighted average risk-free rate 1.37 % 1.67 % 1.73 %
2004 Plan
Summary of Option Activity Plan	The following is a summary of option activity for the 2004 Plan for the years ended December 31, 2015 and 2014: 2004 Plan (in thousands, except for share and per share amounts) Number of Weighted Average Weighted Average Aggregate Outstanding at December 31, 2013 670,744 $ 1.79 1.78 $ 7,124 Exercised (17,934 ) 3.57 Outstanding at December 31, 2014 652,810 1.74 0.78 8,212 Exercised (652,810 ) 1.74 6,129 Outstanding at December 31, 2015 —
2006 Plan and 2016 Plan
Summary of Option Activity Plan	The following is a summary of option activity for the 2006 Plan and the 2016 Plan for the years ended December 31, 2016, 2015, and 2014: 2006 and 2016 Plans (in thousands, except for share and per share amounts) Number of Weighted Average Weighted Average Aggregate Outstanding at December 31, 2013 5,533,618 $ 10.98 6.93 $ 21,264 Granted 1,324,337 12.17 Forfeited (237,108 ) 8.35 Exercised (393,735 ) 7.08 2,923 Outstanding at December 31, 2014 6,227,112 11.58 6.71 28,523 Granted 1,056,500 11.74 Forfeited (496,854 ) 10.75 Expired (64,336 ) 25.69 Exercised (469,974 ) 7.02 2,594 Outstanding at December 31, 2015 6,252,448 11.87 6.16 7,498 Granted 866,011 8.43 Forfeited (392,700 ) 11.23 Expired (279,766 ) 17.38 Exercised (897,657 ) 8.63 4,264 Outstanding at December 31, 2016 5,548,336 11.62 5.58 32,453 Exercisable at December 31, 2016 3,983,012 12.07 4.45 23,924 Vested and expected to vest at December 31, 2016 5,450,280 11.66 5.52 31,850

Quarterly Financial Data (Una42

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Data	The following is a summary of quarterly financial data for the years ended December 31, 2016 and 2015: (in thousands, except for per share amounts) First Second Third Fourth Year Ended December 31, 2016 Revenue $ 33,262 $ 36,029 $ 38,482 $ 38,244 Gross profit (1) 24,363 26,593 28,549 30,867 Loss from operations (12,475 ) (4,789 ) (653 ) (654 ) Net loss (12,358 ) (4,618 ) (430 ) (604 ) Net loss per share, basic and diluted $ (0.29 ) $ (0.11 ) $ (0.01 ) $ (0.01 ) Year Ended December 31, 2015 Revenue $ 22,150 $ 27,582 $ 28,344 $ 31,849 Gross profit (1) 12,991 18,874 18,891 22,735 Loss from operations (10,293 ) (5,458 ) (9,541 ) (14,893 ) Net loss (10,221 ) (5,386 ) (9,461 ) (14,797 ) Net loss per share, basic and diluted $ (0.24 ) $ (0.13 ) $ (0.22 ) $ (0.35 ) (1) Gross profit includes revenue less cost of goods sold, excluding amortization and intangible asset amortization.

Business Organization and Pre43

Business Organization and Presentation - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016Segment
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Number of operating segments	1

Summary of Significant Accoun44

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)Segment	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2009USD ($)
Summary Of Significant Accounting Policies [Line Items]
Restricted cash, current and non-current	$ 0.8	$ 0.8
Percentage of insurance coverage gap allocated for prescription drugs under Medicare Part D	50.00%
Advertising expenses	$ 1.4	3.4	$ 5
Purchases of property, plant and equipment and the related current liability	$ 0.2	0.2	0
Acquisition of intangible asset accrued in non-current liabilities		$ 25
Intangible asset related to re-acquired right to Fanapt			15.9
Inventories			3
Prepaid services			$ 0.1
Number of reportable segments | Segment	1
Other Income
Summary Of Significant Accounting Policies [Line Items]
Foreign currency transaction gains and losses	$ 0.2
Fanapt
Summary Of Significant Accounting Policies [Line Items]
Upfront payment received under Fanapt sublicense agreement from Novartis				$ 200

Net Sales by Product (Detail)

Net Sales by Product (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue from External Customer [Line Items]
Net product sales	$ 146,017	$ 109,925	$ 12,909
HETLIOZ
Revenue from External Customer [Line Items]
Net product sales	71,671	44,302	12,802
Fanapt
Revenue from External Customer [Line Items]
Net product sales	$ 74,346	$ 65,623	$ 107

Summary of Accounts Receivable

Summary of Accounts Receivable Allowance Activity (Detail) - Accounts Receivable Allowance - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	$ 1,059	$ 85
Additions	2,507	986	$ 85
Credits/payments	(486)	(12)
Ending balance	$ 3,080	$ 1,059	$ 85

Schedule of Major Customers tha

Schedule of Major Customers that Represented More Than 10% of Total Revenues (Detail) - Customer Concentration Risk - Sales Revenue, Net	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Distributor A
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	23.00%	14.00%
Distributor B
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	16.00%	18.00%
Distributor C
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	16.00%	19.00%
Distributor D
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	16.00%	14.00%
Distributor E
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	15.00%	17.00%
Distributor F
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage		12.00%
Novartis | Royalty Revenue
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage			13.00%
Novartis | Licensing agreement
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage			61.00%

Schedule of Major Customers t48

Schedule of Major Customers that Represented More Than 10% of Accounts Receivable, Net (Detail) - Credit Concentration Risk - Accounts Receivable	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Distributor A
Concentration Risk [Line Items]
Concentration Risk, Percentage	22.00%	12.00%
Distributor B
Concentration Risk [Line Items]
Concentration Risk, Percentage	19.00%	24.00%
Distributor C
Concentration Risk [Line Items]
Concentration Risk, Percentage	15.00%	17.00%
Distributor D
Concentration Risk [Line Items]
Concentration Risk, Percentage	11.00%	12.00%
Distributor E
Concentration Risk [Line Items]
Concentration Risk, Percentage	25.00%	22.00%

Settlement Agreement with Nov49

Settlement Agreement with Novartis - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2009
Business Acquisition [Line Items]
Net proceeds from offering of common stock	$ 62,300			$ 62,313
Intangible assets, amortization method		Straight-line basis
Gain on the settlement of arbitration				$ 77,616
Fanapt
Business Acquisition [Line Items]
Intangible assets, estimated useful life		2016-11	2016-11	2016-11
Upfront payment received					$ 200,000
Settlement Agreement
Business Acquisition [Line Items]
Net proceeds from offering of common stock				$ 25,000
Effective date of the Settlement Agreement				Dec. 31, 2014
Gain on the settlement of arbitration				$ 18,087
Up-front Payment Arrangement
Business Acquisition [Line Items]
Gain on the settlement of arbitration				59,529
Novartis Pharma AG
Business Acquisition [Line Items]
Net proceeds from offering of common stock				25,000
Novartis Pharma AG | Settlement Agreement
Business Acquisition [Line Items]
Net proceeds from offering of common stock				$ 25,000
Price per share				$ 13.82
Stock issued during period, shares				1,808,973
Percentage of premium to average closing prices				10.00%
Trading days				10 days
Gain (Loss) on issuance of stock				$ (900)

Fair Value of Consideration Exc

Fair Value of Consideration Exchanged as Part of Settlement Agreement (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2014	Dec. 31, 2016	Dec. 31, 2014
Business Acquisition [Line Items]
Equity issued			$ 25,905
Cash received	$ (62,300)		(62,313)
Settlement of pre-existing non-contractual relationship			77,616
Settlement Agreement
Business Acquisition [Line Items]
Equity issued			25,904
Cash received			(25,000)
Settlement of pre-existing non-contractual relationship			18,087
Business Combination, Consideration Transferred, Total			$ 18,991

Assets Acquired and Recorded at

Assets Acquired and Recorded at Fair Value (Detail) $ in Thousands	Dec. 31, 2014USD ($)
Business Acquisition [Line Items]
Assets acquired and recorded at fair value, Inventory	$ 2,960
Assets acquired and recorded at fair value, Intangible re-acquired right	15,940
Assets acquired and recorded at fair value, Prepaid services	91
Assets acquired and recorded at fair value	$ 18,991

Basic and Diluted Net Income (L

Basic and Diluted Net Income (Loss) Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Numerator:
Net income (loss)	$ (604)	$ (430)	$ (4,618)	$ (12,358)	$ (14,797)	$ (9,461)	$ (5,386)	$ (10,221)	$ (18,010)	$ (39,865)	$ 20,186
Denominator:
Weighted average shares outstanding: Basic									43,449,441	42,250,254	34,774,163
Effect of dilutive securities											1,912,560
Weighted average shares outstanding: Diluted									43,449,441	42,250,254	36,686,723
Net income (loss) per share, basic and diluted:
Basic									$ (0.41)	$ (0.94)	$ 0.58
Diluted									$ (0.41)	$ (0.94)	$ 0.55
Antidilutive securities excluded from calculations of diluted net income (loss) per share									4,943,797	5,660,199	3,524,656

Summary of Available-For-Sale M

Summary of Available-For-Sale Marketable Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Fair Market Value	$ 100,914	$ 92,337
U.S. Treasury and government agencies
Schedule of Available-for-sale Securities [Line Items]
Fair Market Value	50,647	44,057
Corporate debt
Schedule of Available-for-sale Securities [Line Items]
Fair Market Value	50,267	48,280
Current Investment
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	100,855	92,298
Gross Unrealized Gains	92	52
Gross Unrealized Losses	(33)	(13)
Fair Market Value	100,914	92,337
Current Investment | U.S. Treasury and government agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	50,661	44,059
Gross Unrealized Gains	3	6
Gross Unrealized Losses	(17)	(8)
Fair Market Value	50,647	44,057
Current Investment | Corporate debt
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	50,194	48,239
Gross Unrealized Gains	89	46
Gross Unrealized Losses	(16)	(5)
Fair Market Value	$ 50,267	$ 48,280

Assets Measured at Fair Value o

Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 100,914	$ 92,337
U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	50,647	44,057
Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	50,267	48,280
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	50,647	44,057
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	50,647	44,057
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	50,267	48,280
Significant Other Observable Inputs (Level 2) | Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 50,267	$ 48,280

Inventory (Detail)

Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets
Work-in-process	$ 17
Finished goods	762	$ 1,294
Total	779	1,294
Non-Current assets
Raw materials	127	127
Work-in-process	2,225	2,369
Finished goods	83
Total	$ 2,435	$ 2,496

Summary of Prepaid Expenses and

Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Prepaid Expenses And Other Current Assets [Line Items]
Research and development expenses	$ 2,397	$ 2,948
Consulting and other professional fees	6,051	1,815
Prepaid royalties	1,761
Other	1,579	979
Prepaid expenses and other current assets	$ 11,788	$ 5,742

Summary of Property and Equipme

Summary of Property and Equipment-at Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 8,246	$ 6,883
Accumulated depreciation and amortization	(3,231)	(2,313)
Property and equipment, net	$ 5,015	4,570
Computer and Other Equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	3 years
Property and equipment, gross	$ 2,426	2,046
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,412	1,318
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	7 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,408	$ 3,519
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	11 years

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 935	$ 582	$ 530

Summary of Intangible Assets (D

Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		$ 60,941	$ 60,941
Accumulated Amortization		33,122	22,189
Net Carrying Amount		$ 27,819	$ 38,752
HETLIOZ
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life	2022-12	2033-01	2033-01
Gross Carrying Amount		$ 33,000	$ 33,000
Accumulated Amortization		5,181	3,460
Net Carrying Amount		$ 27,819	$ 29,540
Fanapt
Finite-Lived Intangible Assets [Line Items]
Intangible assets, estimated useful life		2016-11	2016-11	2016-11
Gross Carrying Amount		$ 27,941	$ 27,941
Accumulated Amortization		$ 27,941	18,729
Net Carrying Amount			$ 9,212

Intangible Assets (Textual 2 -

Intangible Assets (Textual 2 - HETLIOZ) - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		12 Months Ended
	Jul. 31, 2013	Feb. 29, 2004	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2006
Finite-Lived Intangible Assets [Line Items]
Acquisition of intangible assets							$ 8,000
Milestone obligation under license agreement					$ 25,000	$ 25,000
Intangible asset amortization					$ 10,933	$ 12,972	2,254
HETLIOZ
Finite-Lived Intangible Assets [Line Items]
Acquisition of intangible assets	$ 3,000	$ 500		$ 8,000				$ 1,000
Intangible assets, estimated useful life				2022-12	2033-01	2033-01
Cumulative worldwide sales milestone			$ 250,000			$ 250,000
Milestone obligation under license agreement			25,000		$ 25,000	25,000
Intangible assets capitalized			$ 25,000			25,000
Intangible asset amortization					1,700	$ 2,900	$ 600
Future annual amortization of intangible asset					$ 1,700

Intangible Assets (Textual 3 -

Intangible Assets (Textual 3 - Fanapt) - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2009
Finite-Lived Intangible Assets [Line Items]
Acquisition of intangible assets			$ 8,000
Assets acquired and recorded at fair value, Intangible re-acquired right			15,940
Intangible asset amortization	$ 10,933	$ 12,972	$ 2,254
Fanapt
Finite-Lived Intangible Assets [Line Items]
Acquisition of intangible assets				$ 12,000
Estimated Patent life end date	2016-11	2016-11	2016-11
Assets acquired and recorded at fair value, Intangible re-acquired right			$ 15,900
Intangible asset amortization	$ 9,200	$ 10,100	$ 1,700

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	$ 10,933	$ 12,972	$ 2,254

Summary of Future Intangible As

Summary of Future Intangible Asset Amortization (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 27,819	$ 38,752
HETLIOZ
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	27,819	$ 29,540
2,017	1,721
2,018	1,721
2,019	1,721
2,020	1,721
2,021	1,721
Thereafter	$ 19,214

Summary of Accounts Payable and

Summary of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts Payable and Accrued Liabilities [Line Items]
Research and development expenses	$ 3,024	$ 3,199
Consulting and other professional fees	3,192	5,088
Compensation and employee benefits	4,291	468
Royalties payable	4,555	5,328
Other	1,134	1,684
Accounts payable and accrued liabilities	$ 16,196	$ 15,767

Summary of Changes in Deferred

Summary of Changes in Deferred Licensing Revenue (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
Balance beginning of year		$ 90,275
Licensing revenue recognized		(30,746)
Recognized as part of gain on arbitration settlement		(77,616)
Up-front Payment Arrangement
Deferred Revenue Arrangement [Line Items]
Recognized as part of gain on arbitration settlement		$ (59,529)

Deferred Licensing Revenue - Ad

Deferred Licensing Revenue - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
Licensing agreement		$ 30,746
Gain on arbitration settlement		77,616
Up-front Payment Arrangement
Deferred Revenue Arrangement [Line Items]
Gain on arbitration settlement		$ 59,529

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)ft²	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Commitments and Contingencies Disclosure [Line Items]
Rent expense | $	$ 2.5	$ 1.9	$ 1.7
Washington DC Lease
Commitments and Contingencies Disclosure [Line Items]
Leased square footage	40,188
Expiration date of leases for office space	2,026
Washington DC Lease | Sublease
Commitments and Contingencies Disclosure [Line Items]
Leased square footage	9,928
Washington DC Lease Amendment
Commitments and Contingencies Disclosure [Line Items]
Leased square footage	30,260
Renewal term of lease agreement	5 years
London Lease
Commitments and Contingencies Disclosure [Line Items]
Leased square footage	2,880
Noncancellable lease term ending date	2,021
Berlin Lease
Commitments and Contingencies Disclosure [Line Items]
Leased square footage	1,249

Summary of Minimum Annual Futur

Summary of Minimum Annual Future Payments Under Operating Leases and Subleases for Office Space (Detail) $ in Thousands	Dec. 31, 2016USD ($)
Operating Leased Assets [Line Items]
Operating leases, Total	$ 21,623
Operating leases, 2017	1,981
Operating leases, 2018	2,216
Operating leases, 2019	2,271
Operating leases, 2010	2,327
Operating leases, 2021	2,170
Operating leases, Thereafter	$ 10,658

Commitments and Contingencies69

Commitments and Contingencies (Textual 2 - HETLIOZ) - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		12 Months Ended
	Jul. 31, 2013	Feb. 29, 2004	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2006
HETLIOZ
Acquisition of intangible assets							$ 8,000
Milestone obligation under license agreement					$ 25,000	$ 25,000
Percentage of future sublicense fees payable to third-party					Mid-twenties
HETLIOZ
HETLIOZ
Acquisition of intangible assets	$ 3,000	$ 500		$ 8,000				$ 1,000
Milestone obligation under license agreement			$ 25,000		$ 25,000	25,000
Royalty payable percentage on net sales			10.00%
Cumulative worldwide sales milestone			$ 250,000			250,000
Intangible assets capitalized			$ 25,000			$ 25,000

Commitments and Contingencies70

Commitments and Contingencies (Textual 3 - Fanapt) - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2014
Fanapt
Royalty received percentage on net sales		10.00%
Prepaid royalty	$ 1,761,000
Royalty Rate for Annual Sales up to $200 million through November 2016
Fanapt
Royalty percentage payable on net sales below annual threshold	23.00%
Royalty Rate for Annual Sales in Excess of $200 million through November 2016
Fanapt
Royalty percentage payable on net sales above annual threshold	Mid-twenties
November 16,2016 through December 31,2019
Fanapt
Royalty payable percentage on net sales	3.00%
Prepaid royalty	$ 2,000,000
Maximum
Fanapt
Agreed upon sales threshold level for royalty rate	$ 200,000,000
Fanapt
Fanapt
Royalty payable percentage on net sales	6.00%
Royalty payment period	10 years

Commitments and Contingencies71

Commitments and Contingencies (Textual 4 - Tradipitant) - Additional Information (Detail) - Tradipitant $ in Millions	12 Months Ended
	Dec. 31, 2012USD ($)
Tradipitant
Future percentage of royalty payments based net sales	Low double digits
Possible future milestone payments	$ 4
Milestone payment under license agreement	1
Future Regulatory Approval and Sales Milestones
Tradipitant
Possible future milestone payments	$ 95

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Line Items]
Provision for income taxes	$ 104	$ 0	$ 0
Income (loss) before income taxes	(17,906)	$ (39,865)	$ 20,186
Pretax loss in U.S	(18,100)
Pretax income from foreign subsidiaries	200
Net deferred tax assets	100
Operating loss carryforwards, net	228,000
Operating loss carryforwards, excess windfall benefits generated from stock options	$ 8,700
Net operating loss carryforwards beginning expiration year	2,028
Carryforward credits beginning expiration year	2,024
Research and Development
Income Taxes [Line Items]
Tax credits carryforwards	$ 7,500
Orphan Drug
Income Taxes [Line Items]
Tax credits carryforwards	33,700
Non-current inventory and other
Income Taxes [Line Items]
Net deferred tax assets	$ 100

Summery of Provision (Benefit)

Summery of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
Federal	$ 0	$ 0	$ 0
State	66
Foreign	142
Deferred:
Federal	0	0	0
State	0	0	0
Foreign	(104)
Provision for income taxes	$ 104	$ 0	$ 0

Reconciliation Between Statutor

Reconciliation Between Statutory Tax Rate and Effective Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Rate Reconciliation [Line Items]
Federal tax at statutory rate	35.00%	35.00%	34.00%
State taxes	0.80%	(0.10%)	7.20%
Change in valuation allowance	(38.40%)	(25.40%)	(59.70%)
Research and development credit	3.80%	1.50%	1.30%
Orphan drug credit	7.60%	1.60%	8.50%
Section 162(m) limitation	0.00%	(5.70%)	1.10%
Tax rate change	3.90%	(0.30%)	4.80%
Change in state NOLs	0.00%	(1.40%)	0.00%
Non-deductible stock-based compensation	(12.50%)	(5.10%)	0.00%
Other non-deductible items	(0.80%)	(0.10%)	2.80%
Effective tax rate	(0.60%)	0.00%	0.00%

Components of Deferred Tax Asse

Components of Deferred Tax Assets, Net and Related Valuation Allowance (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred tax assets:
Net operating loss carryforwards	$ 84,177	$ 83,686
Stock-based compensation	12,443	12,919
Accrued and deferred expenses	2,558	1,443
Research and development and orphan drug credit carryforwards	41,104	38,333
Intangible assets	5,477	2,954
Other	1,019	802
Total deferred tax assets	146,778	140,137
Deferred tax liabilities:
Other	(666)	(1,100)
Total deferred tax liabilities	(666)	(1,100)
Deferred tax assets, net	146,112	139,037
Valuation allowance	(146,012)	$ (139,037)	$ (128,890)	$ (141,150)
Net deferred tax assets	$ 100

Valuation Allowance Activity on

Valuation Allowance Activity on Deferred Tax Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation Allowance [Line Items]
Balance At Beginning Of Period	$ 139,037	$ 128,890	$ 141,150
Additions	11,031	17,002	27,893
Reductions	(4,056)	(6,855)	(40,153)
Balance At End Of Period	$ 146,012	$ 139,037	$ 128,890

Public Offering of Common Sto77

Public Offering of Common Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2014	Dec. 31, 2016	Dec. 31, 2014
Stockholders Equity Note [Line Items]
Public common stock offering, shares	5,750,000
Common stock offering price, per share	$ 11.60
Net cash proceeds from public common stock offering	$ 62,300		$ 62,313

Equity Incentive Plans (Textual

Equity Incentive Plans (Textual 1 - Equity Incentive Plan) - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2016	Jun. 16, 2016
2006 Plan and 2016 Plan | Outstanding options and RSUs granted (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares subject to outstanding options and RSUs	6,686,764
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock reserved for issuance		2,000,000
Number of shares of common stock available for future grant	1,822,500

Equity Incentive Plans (Textu79

Equity Incentive Plans (Textual 2 Stock Option) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation option awards contractual term	10 years
Portion of initial stock options granted to employees that vests on employee's first anniversary	25.00%
Portion of initial stock options granted to employees that vests ratably over three years after completion of first year of service	75.00%
Option awards vesting period, after completion of one year of service	3 years
Vesting period	4 years
Vesting period for initial stock options granted to directors	4 years
Vesting period for subsequent stock options granted to directors	1 year
Proceeds from exercise of employee stock options	$ 7,751	$ 4,374	$ 2,851
Options granted, weighted average fair value per share	$ 4.53	$ 6.59	$ 6.99
Service option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expenses	$ 8,900
Unrecognized compensation expenses, weighted average period	1 year 2 months 12 days

Summary of Option Activity for

Summary of Option Activity for 2004 Plan (Detail) - 2004 Plan - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of Shares
Beginning balance	652,810	670,744
Exercised	(652,810)	(17,934)
Ending balance		652,810	670,744
Weighted Average Exercise Price at Grant Date
Beginning balance	$ 1.74	$ 1.79
Exercised	$ 1.74	3.57
Ending balance		$ 1.74	$ 1.79
Weighted Average Remaining Term (Years)
Weighted Average Remaining Term		9 months 11 days	1 year 9 months 11 days
Aggregate Intrinsic Value
Beginning balance	$ 8,212	$ 7,124
Exercised	$ 6,129
Ending balance		$ 8,212	$ 7,124

Summary of Option Activity fo81

Summary of Option Activity for 2006 Plan and the 2016 Plan (Detail) - 2006 Plan and 2016 Plan - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of Shares
Beginning balance	6,252,448	6,227,112	5,533,618
Granted	866,011	1,056,500	1,324,337
Forfeited	(392,700)	(496,854)	(237,108)
Expired	(279,766)	(64,336)
Exercised	(897,657)	(469,974)	(393,735)
Ending balance	5,548,336	6,252,448	6,227,112	5,533,618
Exercisable	3,983,012
Vested and expected to vest at December 31, 2016	5,450,280
Weighted Average Exercise Price at Grant Date
Beginning balance	$ 11.87	$ 11.58	$ 10.98
Granted	8.43	11.74	12.17
Forfeited	11.23	10.75	8.35
Expired	17.38	25.69
Exercised	8.63	7.02	7.08
Ending balance	11.62	$ 11.87	$ 11.58	$ 10.98
Exercisable	12.07
Vested and expected to vest at December 31, 2016	$ 11.66
Weighted Average Remaining Term (Years)
Weighted Average Remaining Term	5 years 6 months 29 days	6 years 1 month 28 days	6 years 8 months 16 days	6 years 11 months 5 days
Exercisable	4 years 5 months 12 days
Vested and expected to vest at December 31, 2016	5 years 6 months 7 days
Aggregate Intrinsic Value
Beginning balance	$ 7,498	$ 28,523	$ 21,264
Exercised	4,264	2,594	2,923
Ending balance	32,453	$ 7,498	$ 28,523	$ 21,264
Exercisable	23,924
Vested and expected to vest at December 31, 2016	$ 31,850

Equity Incentive Plans (Textu82

Equity Incentive Plans (Textual 3 RSU) - Additional Information (Detail) - Restricted Stock Units (RSU) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of RSU awards in equal installments	4 years
Unrecognized compensation expenses, weighted average period	1 year 9 months 18 days
Unrecognized compensation expenses related to unvested RSUs	$ 8.2
2006 Plan and 2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of common stock vested, shares	287,666	231,093	209,562
Fair value of common stock vested	$ 2.8

Summary of RSU Activity under 2

Summary of RSU Activity under 2006 Plan and the 2016 Plan (Detail) - 2006 Plan and 2016 Plan - Restricted Stock Units (RSU) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of Shares Unvested
Beginning balance	1,022,681	1,025,961	883,690
Granted	657,742	417,000	436,115
Forfeited	(254,329)	(189,187)	(84,282)
Vested	(287,666)	(231,093)	(209,562)
Ending balance	1,138,428	1,022,681	1,025,961
Weighted Average Price/Share Unvested
Beginning balance	$ 10.90	$ 9.94	$ 7.70
Granted	8.71	11.51	12.28
Forfeited	10.38	10.60	6.75
Vested	9.65	7.96	6.67
Ending balance	$ 10.07	$ 10.90	$ 9.94

Total Stock-Based Compensation

Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 8,543	$ 7,961	$ 5,878
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	2,087	2,269	1,933
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 6,456	$ 5,692	$ 3,945

Black-Scholes-Merton Option Pri

Black-Scholes-Merton Option Pricing Model for Stock Options Granted (Detail)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%
Weighted average expected volatility	57.00%	60.00%	62.00%
Weighted average expected term (years)	6 years 29 days	6 years	5 years 10 months 24 days
Weighted average risk-free rate	1.37%	1.67%	1.73%

Employee Benefit Plan - Additio

Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Benefit Plans [Line Items]
Defined contribution plan employer matching percent	50.00%
Defined contribution plan maximum employee contribution percent	6.00%
Defined contribution plan vesting period	4 years
Defined contribution plan matching amount	$ 0.4	$ 0.3	$ 0.2

Quarterly Financial Data (Detai

Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Data [Line Items]
Revenue		$ 38,244	$ 38,482	$ 36,029	$ 33,262	$ 31,849	$ 28,344	$ 27,582	$ 22,150	$ 146,017	$ 109,925	$ 50,157
Gross profit	[1]	30,867	28,549	26,593	24,363	22,735	18,891	18,874	12,991
Loss from operations		(654)	(653)	(4,789)	(12,475)	(14,893)	(9,541)	(5,458)	(10,293)	(18,571)	(40,185)	20,062
Net loss		$ (604)	$ (430)	$ (4,618)	$ (12,358)	$ (14,797)	$ (9,461)	$ (5,386)	$ (10,221)	$ (18,010)	$ (39,865)	$ 20,186
Net loss per share, basic and diluted		$ (0.01)	$ (0.01)	$ (0.11)	$ (0.29)	$ (0.35)	$ (0.22)	$ (0.13)	$ (0.24)
[1]	Gross profit includes revenue less cost of goods sold, excluding amortization and intangible asset amortization.