Osiris Therapeutics Inactive 10-Q12 May 142014 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2014	9-May-14
Document and Entity Information	'	'
Entity Registrant Name	'OSIRIS THERAPEUTICS, INC.	'
Entity Central Index Key	'0001360886	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	34,222,162
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

CONDENSED_BALANCE_SHEETS

CONDENSED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$2,342	$2,416
Investments available for sale	34,650	39,508
Trading securities	16,907	17,086
Trade accounts receivable, net of reserves	11,763	7,459
Other receivables	15,130	15,265
Inventory	2,337	1,929
Prepaid expenses and other current assets	318	355
Current assets of discontinued operations	96	91
Total current assets	83,543	84,109
Property and equipment, net	1,809	1,896
Deferred tax asset	5,737	5,849
Restricted cash	243	243
Total assets	91,332	92,097
Current liabilities:	'	'
Accounts payable and accrued expenses	4,025	4,842
Capital lease obligations, current portion	45	45
Deferred tax liability	5,737	5,849
Current liabilities of discontinued operations	17	57
Total current liabilities	9,824	10,793
Other long-term liabilities	319	355
Total liabilities	10,143	11,148
Commitments and contingencies	'	'
Stockholders' equity	'	'
Common stock, $.001 par value, 90,000 shares authorized, 34,222 shares outstanding - 2014, 34,115 shares outstanding - 2013	34	34
Additional paid-in capital	284,219	282,702
Accumulated other comprehensive (loss) income	55	-33
Accumulated deficit	-203,119	-201,754
Total stockholders' equity	81,189	80,949
Total liabilities and stockholders' equity	$91,332	$92,097

CONDENSED_BALANCE_SHEETS_Paren

CONDENSED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
CONDENSED BALANCE SHEETS	'	'
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	90,000	90,000
Common stock, shares outstanding	34,222	34,115

STATEMENTS_OF_COMPREHENSIVE_LO

STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
STATEMENTS OF COMPREHENSIVE LOSS	'	'
Product revenues	$10,054	$4,055
Cost of product revenues	2,212	1,135
Gross profit	7,842	2,920
Operating expenses:	'	'
Research and development	670	957
Selling, general and administrative	7,235	2,404
Fees paid to related parties	149	62
Share based payments to related parties	403	180
Total operating expenses	8,457	3,603
Loss from operations	-615	-683
Other income (expense), net	-126	29
Loss from continuing operations, before income taxes	-741	-654
Income tax benefit	130	358
Loss from continuing operations	-611	-296
Discontinued operations:	'	'
Loss from operations of discontinued operations, net of income taxes of $165 and $358, respectively, in 2014 and 2013	-754	-2,439
Net loss	-1,365	-2,735
Other comprehensive income	'	'
Unrealized gain on investments available for sale	88	25
Comprehensive loss	($1,277)	($2,710)
Basic and diluted loss per share	'	'
Loss from continuing operations (in dollars per share)	($0.02)	($0.01)
Loss from discontinued operations (in dollars per share)	($0.02)	($0.07)
Basic and diluted loss per share (in dollars per share)	($0.04)	($0.08)
Weighted average common shares (basic and diluted) (in shares)	34,148	32,912

STATEMENTS_OF_COMPREHENSIVE_LO1

STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) (USD $)	3 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2011
STATEMENTS OF COMPREHENSIVE LOSS	'	'	'
Income (loss) from operations of discontinued operations, income taxes	$165	$358	$818

STATEMENTS_OF_CHANGES_IN_STOCK

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit
In Thousands, except Share data, unless otherwise specified	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit
Balance at Dec. 31, 2013	$80,949	$34	$282,702	($33)	($201,754)
Balance (in shares) at Dec. 31, 2013	34,115,000	34,114,603	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'
Exercise of options to purchase common stock ($.40- $12.01 per share)	634	'	634	'	'
Exercise of options to purchase common stock (in shares)	'	80,559	'	'	'
Share-based payment-director services ($14.93 per share)	403	'	403	'	'
Share-based payment-director services (in shares)	'	27,000	'	'	'
Share-based payment-employee compensation	480	'	480	'	'
Net loss	-1,365	'	'	'	-1,365
Unrealized gain on investments available for sale	88	'	'	88	'
Balance at Mar. 31, 2014	$81,189	$34	$284,219	$55	($203,119)
Balance (in shares) at Mar. 31, 2014	34,222,000	34,222,162	'	'	'

STATEMENTS_OF_CHANGES_IN_STOCK1

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2014
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY	'
Exercise of options to purchase common stock, per share, low end of range	$0.40
Exercise of options to purchase common stock, per share, high end of range	$12.01
Share-based payment-director services, per share	$14.93

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Loss from continuing operations	($611)	($296)
Adjustments to reconcile loss from continuing operations to net cash used in operations of continuing operations:	'	'
Unrealized loss on trading securities	179	'
Depreciation and amortization	214	146
Non cash share-based payments	883	473
Provision for bad debts	'	22
Changes in operating assets and liabilities:	'	'
Accounts receivable	-4,204	-2,244
Inventory	-408	-333
Prepaid expenses, and other current assets	72	141
Lease reserves	-25	'
Accounts payable, accrued expenses, and other current liabilities	-817	-52
Net cash used in operating activities of continuing operations	-4,717	-2,143
Discontinued operations	'	'
Loss from discontinued operations	-754	-2,439
Adjustments to reconcile loss from discontinued operations to net cash used in operations of discontinued operations:	'	'
Depreciation and amortization	'	39
Changes in operating assets and liabilities:	'	'
Accounts receivable and other current assets	-5	-61
Accounts payable and accrued expenses	-40	19
Net cash used in operations of discontinued operations	-799	-2,442
Net cash used in operating activities	-5,516	-4,585
Cash flows from investing activities:	'	'
Purchases of property and equipment	-127	-111
Proceeds from sale of investments available for sale	5,000	4,000
Purchases of investments available for sale	-54	-29
Net cash provided by investing activities	4,819	3,860
Cash flows from financing activities:	'	'
Principal payments on capital lease obligations	-11	-11
Proceeds from the exercise of options to purchase common stock	634	169
Net cash provided by financing activities	623	158
Net increase in cash	-74	-567
Cash at beginning of period	2,416	1,854
Cash at end of period	$2,342	$1,287

Description_of_Business_and_Si

Description of Business and Significant Accounting Policies	3 Months Ended
Description of Business and Significant Accounting Policies	Mar. 31, 2014
Description of Business and Significant Accounting Policies	'
Description of Business and Significant Accounting Policies	'
	1. Description of Business and Significant Accounting Policies

	Description of Business

	Osiris Therapeutics, Inc. (“we,” “us,” “our,” or the “Company”) is a Maryland corporation headquartered in Columbia, Maryland. We began operations on December 23, 1992 and were a Delaware corporation until, with approval of our stockholders, we reincorporated as a Maryland corporation on May 31, 2010. We are a leading stem cell company focused on developing and marketing products in the wound, orthopedic, and sports medicine markets.

	From 2010 to 2013, we operated our business in two segments, Biosurgery and Therapeutics. We now operate only our Biosurgery business, as a result of the sale of our Therapeutics segment assets in the fourth quarter of 2013, as discussed further below. Our Biosurgery business focuses on products for wound care, cartilage repair, and orthopedics, to harness the ability of cells and novel constructs to promote the body’s natural healing. Until it was sold, our Therapeutics business focused on developing biologic stem cell drug candidates from a readily available and non-controversial source—adult bone marrow.

	Our Biosurgery business has continued to grow since its inception, and we have increased our organizational focus on the development and commercialization of products in this segment. Consistent with this organizational focus, as discussed further in Note 2— Discontinued Operations below, on October 10, 2013, we entered into a Purchase Agreement to sell our Therapeutics segment, including all of our culture expanded mesenchymal stem cell business, including Prochymal and other related assets. We eliminated the Therapeutics segment from our continuing operations as a result of the disposal transaction, and have presented the assets, liabilities, and results of the segment’s operations as a discontinued operation for all periods presented. Our continuing operations now represent the portion of our business previously referred to as our Biosurgery segment.

	Unaudited Interim Financial Statements

	Except for the Balance Sheet as of December 31, 2013, which was derived from audited financial statements, the accompanying condensed financial statements are unaudited. The accompanying condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, these statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of our results of operations, financial position and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with our financial statements and footnotes included in our Annual Report on Form 10-K (“2013 10-K”) for the fiscal year ended December 31, 2013.

	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 and assumptions that affect the amounts reported in the financial statements and accompanying notes. Due to the inherent uncertainty involved in making those assumptions, actual results could differ from those estimates. We believe that the most significant estimates that affect our financial statements are those that relate to deferred tax assets, inventory valuation, share-based compensation and the value of the derivative obtained in connection with the sale of our former Therapeutics business.

	Reclassifications

	We have reclassified certain prior-year amounts for comparative purposes. These reclassifications did not affect our results of operations or financial positions for the periods presented.

	Cash and Cash Equivalents

	Amounts listed as cash on our balance sheets are maintained in depository accounts at a commercial bank. Cash and cash equivalents, which include highly liquid investments with maturities of three months or less when purchased, held in our brokerage investment accounts are classified as investments available for sale, as the amounts represent investments that have matured and are anticipated to be reinvested in debt securities in the near future, and are disclosed at fair value, which approximates cost.

	Investments Available for Sale

	Investments available for sale consist primarily of marketable securities with maturities less than one year. Investments available for sale are valued at their fair value, with unrealized gains and losses reported as a separate component of stockholders’ equity in accumulated other comprehensive income. All realized gains and losses on our investments available for sale are recognized in results of operations as other income.

	Investments available for sale are evaluated periodically to determine whether a decline in their value is “other than temporary.” The term “other than temporary” is not intended to indicate a permanent decline in value. Rather, it means that the prospects for near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the security. We review criteria such as the magnitude and duration of the decline, as well as the reasons for the decline, to predict whether the loss in value is other than temporary. If a decline in value is determined to be other than temporary, the carrying value of the security is reduced and a corresponding charge to earnings is recognized.

	Trading Securities - Derivative and Securities Received in Business Disposition

	As discussed in Note 2 — Discontinued Operations, we disposed of our Therapeutics segment in October 2013. A portion of the consideration for the sale of that business was stock of Mesoblast Limited (“Mesoblast”), the parent of the purchaser. We are required to hold that stock for one year from the date of receipt. We currently intend to dispose of the Mesoblast stock as soon as we are able to do so in December 2014. As such, we have reflected the investment as a current asset in Trading Securities. Mesoblast is a public company and its stock is traded on the Australian stock exchange.

	The Mesoblast stock is subject to limited price protection for the one year required holding period. To the extent the value of those shares decreases during the holding period, Mesoblast is required to pay us for the decrease in value. This payment is to be made at least one half in cash and at the option of Mesoblast, up to one half in additional shares of Mesoblast stock. Any additional Mesoblast stock will also have to be held for one year during which period there is no further price protection. The price protection is accounted for as a derivative under ASC 815, Derivatives and Hedging, and, as such is recorded on the balance sheet at fair value, with changes in value recognized in Other income (expense), net. We have elected to measure the Mesoblast stock at fair value with changes in fair value reflected in Other income (expense), net, as permitted under ASC 825-10, Financial Instruments — Fair Value Option.

	Our only derivative instrument is the price guarantee regarding the payment received in restricted shares of Mesoblast stock. We do not hold derivative financial instruments for trading purposes.

	Restricted Cash

	We periodically are required under the terms of various agreements to provide letters of credit which are collateralized by cash deposits. The majority of the restricted cash balance relates to a letter of credit that we caused to be issued in lieu of a security deposit under the operating lease for our Columbia, Maryland facility.

	Trade Accounts Receivable

	Trade accounts receivable are reported at their net realizable value. We charge off uncollectible receivables when the likelihood of collection is remote. We set credit terms with individual customers, and consider receivables outstanding longer than the time specified in the respective customer’s contract, typically 45-days, to be past due. As of March 31, 2014 and December 31, 2013, accounts receivable in the accompanying balance sheets are both reported net of a $78,000 allowance for doubtful accounts, respectively. We believe the reported amounts are fully collectible. Trade accounts receivable balances are not collateralized. We incurred $0 and $21,000 of bad debt expense in the first quarter 2014 and 2013 respectively.

	Other Receivables

	Other receivables consist of amounts due us from Mesoblast related to the sale of our Prochymal business, primarily the scheduled installment payment of $15.0 million which we received subsequent to the end of the first fiscal quarter of 2014, in April 2014. Other receivables also include reimbursements due us from Mesoblast for goods and services provided to them in connection with the Transition Services Agreement entered into as part of the sale transaction. The Transition Services Agreement has been extended so that we will provide some services to Mesoblast through October 10, 2014, and will continue to be reimbursed for the costs and time incurred.

	Inventory

	We began carrying inventory of our Biosurgery products on our balance sheet following commercial launch of such products. Inventory consists of raw materials, biologic products in process, and products available for distribution. We determine our inventory values using the first-in, first-out method. Inventory is valued at the lower of cost or market, and excludes units that we anticipate distributing for clinical evaluation. Materials and supplies purchased for product development and product improvement activities are expensed as incurred.

	Property and Equipment

	Property and equipment, including improvements that extend useful lives, are valued at cost, while maintenance and repairs are charged to operations as incurred. Depreciation is calculated using the straight-line method based on estimated useful lives ranging from three to seven years for furniture, equipment and internal use software. Leasehold improvements and assets under capital leases are amortized over the shorter of the estimated useful life of the asset or the term of the lease.

	Valuation of Long-lived Assets

	We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. Assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, an impairment loss is recognized for the difference between the fair value and carrying value of assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk. There were no impairment losses recognized during the first quarter of fiscal 2014 or during fiscal year 2013.

Biosurgery Revenue Recognition

We recognize revenue from product distribution when title passes to the customer. Title usually passes when the product is shipped to the customer and leaves our loading dock. In some situations, we store consigned inventory on site in freezers at hospital or clinic facilities and title passes to the customer when the product is used in a surgical procedure. In these instances we recognize the revenue upon notification of the completed surgical procedure. We verify the condition and status of all consigned inventory on at least a quarterly basis. Due to the nature of our products and the need to ensure they are maintained at the proper frozen temperature, we generally do not allow product returns.

Therapeutics Revenue Recognition

In our former Therapeutics business, we evaluated revenues from agreements that have multiple elements to determine whether the components of the arrangement represent separate units of accounting. To recognize a delivered item in a multiple element arrangement, the delivered items must have value on a standalone basis and the delivery or performance must be probable and within our control for any delivered items that have a right of return. The determination of whether multiple elements of a collaboration agreement meet the criteria for separate units of accounting requires us to exercise judgment. We account for the activities of our former Therapeutics business as discontinued operations.

Revenues from research licenses associated with our former Therapeutics business were recognized as earned upon either the incurring of reimbursable expenses directly related to the particular research plan or the completion of certain development milestones as defined within the terms of the agreement. Payments received in advance of research performance were designated as deferred revenue. Non-refundable upfront license fees and certain other related fees associated with our former Therapeutics business were recognized on a straight-line basis over the development periods of the contract deliverables. Fees associated with substantive at risk performance based milestones are recognized as revenue upon their completion, as defined in the respective agreements. Incidental assignment of technology rights were recognized as revenue when and if it was earned and received

Research and Development Costs

We expense internal and external research and development (“R&D”) costs, including costs of funded R&D arrangements and the manufacture of clinical batches of Biosurgery products used in clinical trials, in the period incurred.

Income Taxes

Deferred tax liabilities and assets are recognized for the estimated future tax consequences of temporary differences, income tax credits and net operating loss carry-forwards. Temporary differences are primarily the result of the differences between the tax bases of assets and liabilities and their financial reporting values. Deferred tax liabilities and assets are measured by applying the enacted statutory tax rates applicable to the future years in which deferred tax liabilities or assets are expected to be settled or realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense, if any, consists of the taxes payable for the current period and the change during the period in deferred tax assets and liabilities.

We recognize in our financial statements the impact of a tax position, if that position is more likely than not to be sustained upon an examination, based on the technical merits of the position. Interest and penalties related to income tax matters are recorded as income tax expense. At March 31, 2014 and December 31, 2013 we had no accruals for interest or penalties related to income tax matters.

Income per Common Share

Basic income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per common share adjusts basic income per share for the potentially dilutive effects of common share equivalents, using the treasury stock method, and includes the incremental effect of shares that would be issued upon the assumed exercise of stock options and warrants.

Diluted loss per common share for the three months ended March 31, 2014 excluded all 1,481,708 of our outstanding options as of March 31, 2014, as their impact on our net loss is anti-dilutive. As a result, basic and diluted weighted average common shares outstanding are identical for this period.

Diluted loss per common share for the three months ended March 31, 2013 excluded all 2,132,664 shares issuable upon the exercise of options, and all 1,000,000 shares issuable upon the exercise of an outstanding warrant, as their impact on our net loss is anti-dilutive. As a result, basic and diluted weighted average common shares outstanding are identical for the period.

Share-Based Compensation

We account for share-based payments using the fair value method.

We recognize all share-based payments to employees and non-employee directors in our financial statements based on their grant date fair values, calculated using the Black-Scholes option pricing model. Compensation expense related to share-based awards is recognized on a straight-line basis for each vesting tranche based on the value of share awards that are expected to vest on the grant date, which is revised if actual forfeitures differ materially from original expectations.

Comprehensive Income

Comprehensive income consists of net income and all changes in equity from non-stockholder sources, which consist of changes in unrealized gains and losses on investments.

Concentration of Risk

We maintain cash and short-term investment balances in accounts that exceed federally insured limits, although we have not experienced any losses on such accounts. We also invest excess cash in investment grade securities, generally with maturities of one year or less.

We have historically provided credit in the normal course of business to contract counterparties and to the distributors of our product. Trade accounts receivable in the accompanying balance sheets consist primarily of amounts due from distributors of our Biosurgery products within the United States. During the first fiscal quarters of fiscal 2014 and 2013, revenues from one of the distributors of our Biosurgery products, Stability Biologics, comprised approximately 58% and 64%, respectively, of our total Biosurgery product revenues. As of March 31, 2014 and December 31, 2013, receivables from this distributor comprised 20% and 57%, respectively, of our trade receivables. We expect all of our reported receivables to be fully collected. As discussed under “Trade Accounts Receivable,” we have not incurred any bad debt expense for the three months ended March 31, 2014.

Recently Adopted Accounting Guidance at March 31, 2014

In July 2013, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) related to the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as either a reduction to a deferred tax asset or separately as a liability depending on the existence, availability and/or use of an operating loss carryforward, a similar tax loss, or a tax credit carryforward. This ASU was adopted at January 1, 2014. This ASU did not have an impact on our consolidated financial statements as we currently do not have any unrecognized tax benefits in the same jurisdictions in which we have tax loss or credit carryovers.

Discontinued_Operations

Discontinued Operations	3 Months Ended
Discontinued Operations	Mar. 31, 2014
Discontinued Operations	'
Discontinued Operations	'
	2. Discontinued Operations

	On October 10, 2013, we entered into a Purchase Agreement with a wholly-owned subsidiary of Mesoblast Limited, pursuant to the terms of which we sold our culture expanded mesenchymal stem cell (ceMSC) business, including Prochymal and other related assets. The Purchase Agreement provides for payment to us of $50 million in initial consideration, and payment of up to an additional $50 million upon the achievement by Mesoblast of certain clinical and regulatory milestones. Additionally, we will be entitled to earn low single to double digit cash royalties on future sales by Mesoblast of Prochymal and other products utilizing the acquired ceMSC technology.

	The Purchase Agreement provides for the $50.0 million of initial payments and up to $50.0 million of contingent additional payments to us upon our achievement of milestone events, as follows:

		Amount
	Milestone	$0

	Initial consideration
	Letter of intent payments	$	3,500
	Initial closing payment	16,500
	Additional closing payment, received in April 2014	15,000
	Delivery of all scheduled assets under the Transfer Agreement	15,000
	Total initial consideration	50,000

	Contingent Consideration
	First marketing authorization received in the U.S.	20,000
	First marketing authorization received from France, Germany, or European Union.	10,000
	Completion of the enrollment of the Phase 3 Crohn’s Trial or Mesoblast’s election to discontinue the trial	10,000
	Receipt of final data for the Crohn’s trial or first marketing approval for Crohn’s	10,000
	Total conditional consideration	50,000

	Total possible purchase price	$	100,000

	Of the $50 million in total initial consideration, we had received at December 31, 2013, payment of $20 million in cash, and $15 million in Mesoblast ordinary shares, which were delivered to us upon completed delivery of the ceMSC assets. The remaining $15 million of the initial consideration was received in cash on April 9, 2014. The Mesoblast shares received by us are subject to a one year holding period from the date of receipt, but are afforded limited downside protection for a drop in the Mesoblast share price over the holding period. We have evaluated this downside protection, and determined that it meets the criteria of a derivative instrument. The fair value of the protection at the time of the disposition of our Therapeutics business was $1.7 million. We recognized the price protection derivative as an asset at March 31, 2014 and December 31, 2013 at its then fair value of $2.0 million and $1.7 million respectively, which has been reflected in the calculation of the gain on sale of the Therapeutics business.

	Our ability to receive the second $50 million is subject to satisfaction of the milestones indicated above all of which are largely dependent upon the clinical and regulatory success of Mesoblast and other factors not in our control. These include many if not all of the risks and uncertainties that our ceMSC business was subject to prior to its sale to Mesoblast, including product development, efficacy and regulatory risks. We have received no such payments thus far, nor do we have any expectation of receiving any such payments in the foreseeable future. Our ability to earn royalties from Mesoblast is subject to these same risks and will require performance by Mesoblast that results in its meeting some or all of the milestones referred to above, and is thereafter also dependent upon the commercial success of Mesoblast’s ceMSC business. Royalties, if any, are payable to us in cash. Any portion of the second $50 million that becomes payable to us will be payable, at the discretion of Mesoblast, in Mesoblast ordinary shares, based on a then current valuation of such shares. Any such Mesoblast ordinary shares that we receive will also be subject to a one year holding period, with the same limited downside protection described above.

	We eliminated the Therapeutics segment from our continuing operations as a result of the disposal transaction and have presented the assets, liabilities, and results of the segment’s operations as a discontinued operation for all periods. Our continuing operations now represent the portion of our business previously referred to as our Biosurgery segment.

	As a result of the disposal of our Therapeutics segment, we have presented the assets, liabilities, and results of the segment’s operations as a discontinued operation for all periods presented. Our only continuing involvement in our former Therapeutics business is to wind down our prior research and development activities and to assist Mesoblast absorb this business under a Transition Services Agreement entered into as part of the Purchase Agreement. The only continuing cash flows to us related to our former Therapeutics business will be the contingent consideration and royalties provided for under the purchase agreement, as described above. We received no such contingent payments or royalties in the first quarter of fiscal 2014 or full fiscal year 2013. .

	We recognized a gain of approximately $49.4 million of the sale of discontinued operations during the year ended December 31, 2013, representing the $50.0 million in initial payments received under the Purchase Agreement and the $1.7 million fair value of the derivative instrument received, net of transaction costs of approximately $600,000, including legal, accounting and advisory fees, and income tax expense of $1.7 million.

	The net assets allocable to the Therapeutics business at March 31, 2014 and December 31, 2013 were as follows:

		March 31, 2014			December 31, 2013
		($000s)			($000s)

	Current assets:
	Accounts receivable	$	96		$	91
	Current liabilities:
	Accounts payable and accrued expenses	$	17		$	57

	Summarized operating results of discontinued operations are as follows:

		March 31, 2014			March 31, 2013
		($000s)			($000s)

	Revenue from collaborative research agreements and royalties	$	—		$	186

	Operating expenses:
	Research and development	73			2,024
	Selling, general and administrative	516			243
		589			2,267

	Loss from discontinued operations before income tax expense	(589		)	(2,081		)
	Income tax expense	165			358

	Loss from operations of discontinued operations	$	(754	)	$	(2,439	)

	Revenues from our former Therapeutics business have historically consisted primarily of collaborative research agreements and royalties. Because of the disposition of our Therapeutics business in 2013, we will no longer incur related research and development expenses related to these discontinued operations. Our discontinued operations earned royalty revenues and cost reimbursement under an adult expanded access program. Royalties were earned on the sale of human mesenchymal stem cells sold for research purposes. We recognized this revenue as sales were made.

Segment_Reporting

Segment Reporting	3 Months Ended
Segment Reporting	Mar. 31, 2014
Segment Reporting	'
Segment Reporting	'
	3. Segment Reporting

	Historically, we managed our business in two operating segments: our Biosurgery segment and our Therapeutics segment.

	Our Biosurgery segment is focused on the development, manufacture and distribution of biologic products for wound care, cartilage repair, and orthopedics to harness the ability of cells and novel constructs to promote the body’s natural healing. We launched Grafix for commercial distribution in 2010, began distribution of Ovation in early fiscal 2011, and began distribution of Cartiform and OvationOS during 2013. We have continued to increase our distribution volume of these products since their respective commercial launches and are developing additional products for future commercialization.

	Our Therapeutics segment focused on developing and marketing products to treat medical conditions in the inflammatory and cardiovascular disease areas. Its operations have focused on clinical trials and discovery efforts. As disclosed in Note 2 — Discontinued Operations, in October 2013 we entered into a Purchase Agreement with Mesoblast, pursuant to the terms of which we sold our culture expanded mesenchymal stem cell business, including Prochymal and other related assets.

	Given the sale of our former Therapeutics segment, we now have only one operating segment. As such, our financial statements present the assets, liabilities, and results of the former Therapeutics segment as discontinued operations for all periods presented, and our continuing operations now represent what was formerly our Biosurgery segment.

Property_and_Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2014
Property and Equipment	'
Property and Equipment	'
	4. Property and Equipment

	Property and equipment at March 31, 2014 and December 31, 2013 are as follows:

		March 31, 2014			December 31,
		$0			2013
					$0
	Laboratory and manufacturing equipment	$	706		$	663
	Computer hardware, furniture and fixtures	1,021			889
	Leased assets	228			228
	Leasehold improvements	4,262			4,260

		6,217			6,050
	Accumulated depreciation and amortization	(4,408		)	(4,154		)

	Property and equipment, net	$	1,809		$	1,896

Inventory

Inventory	3 Months Ended
	Mar. 31, 2014
Inventory	'
Inventory	'
	5. Inventory

	As of March 31, 2014 and December 31, 2013, inventory for our Biosurgery business consists of the following:

		March 31,		December 31,
		2014		2013
		$0		$0
	Inventory
	Raw materials and supplies	$	460	$	387
	Work-in-process	428		22
	Finished goods	1,449		1,520

	Total Biosurgery inventory	$	2,337	$	1,929

	Prior to the transaction described in Note 2—Discontinued Operations, we did not carry any inventory for our Therapeutics products, as we had yet to launch Prochymal for commercial distribution.

ShareBased_Compensation

Share-Based Compensation	3 Months Ended
Share-Based Compensation	Mar. 31, 2014
Share-Based Compensation	'
Share-Based Compensation	'
	6. Share-Based Compensation

	In April 2006, we adopted our 2006 Omnibus Plan. We amended and restated this plan in 2008 and 2010, and amended it further in 2012, in each case to, among other things, increase the number of shares available for grant. In addition, we had previously established our Amended and Restated 1994 Stock Incentive Plan. Both Plans authorize the issuance of various forms of stock-based awards, including incentive and non-qualified stock options, stock purchase rights, stock appreciation rights and restricted and unrestricted stock awards. A total of 2,250,000 shares of our common stock have been reserved for issuance under the Amended and Restated 2006 Omnibus Plan, and 736,378 shares were reserved under our Amended and Restated 1994 Stock Incentive Plan. We ceased all grants under the Amended and Restated 1994 Stock Incentive Plan concurrent with our initial public offering in August 2006. As a result, no shares are currently available for future awards under the Amended and Restated 1994 Stock Incentive Plan. At March 31, 2014, there were 14,281 shares available for future awards under the Amended and Restated 2006 Omnibus Plan. At our 2014 Annual Meeting of Stockholders, held on May 6, 2014, an amendment to the Amended and Restated 2006 Omnibus Plan was approved that, among other things, increased the maximum number of shares that may be awarded under the Plan to 3,000,000 shares.

	In connection with the stock options exercised during the three months ended March 31, 2014, we received cash proceeds of $634,000. At March 31, 2014, there was $4.5 million of total unrecognized compensation costs related to non-vested stock options, which is expected to be recognized through fiscal 2018.

	A summary of stock option activity for the three months ended March 31, 2014 is as follows:

		Number of		Weighted			Weighted	Aggregate
		Shares		Average			Average	Intrinsic Value
				Exercise			Remaining	(in thousands)
				Price			Contractual Life
	Outstanding at January 1, 2014	1,233,767		$	10.61		6.3-years	$	7,992
	Granted	488,500		$	15.37
	Exercised	(80,559	)	$	(7.87	)		$	507
	Forfeited or canceled	(160,000	)	$	(21.63	)

	Balance, March 31, 2014	1,481,708		$	11.15		7.5-years	$	4,851

	Exercisable at March 31, 2014	509,958		$	10.03		5.7-years	$	2,238

	The weighted fair value of options granted during the three months ended March 31, 2014 was $8.11 per share.

Income_Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2014
Income Taxes	'
Income Taxes	'
	7. Income Taxes

	We calculate our interim tax provision in accordance with the guidance for accounting for income taxes in interim periods. At the end of each interim period, we estimate the annual effective tax rate and apply that tax rate to our ordinary quarterly pre-tax income from continuing operations. The tax expense or benefit related to significant, unusual or extraordinary discrete events during the interim period is recognized in the interim period in which those events occurred. In addition, the effect of changes in enacted tax laws or rates or tax status is recognized in the interim period in which the change occurs. For the period ended March 31, 2014 and 2013, the tax benefit from continuing operations was $130,000 and $358,000 million, respectively. This benefit is attributable to the losses from continuing operations that were expected to be utilized by discontinued operations.

Investments_Available_for_Sale

Investments Available for Sale	3 Months Ended
Investments Available for Sale	Mar. 31, 2014
Investments Available for Sale	'
Investments Available for Sale	'
	8. Investments Available for Sale

	Investments available for sale consisted of the following as of March 31, 2014 and December 31, 2013:

		March 31, 2014									December 31, 2013
		$0									$0
				Unrealized									Unrealized
		Cost		Gain		Loss			Fair Value		Cost		Gain		Loss			Fair Value
	Cash equivalents:
	Money market funds & certificates of deposit	$	111	$	—	$	—		$	111	$	655	$	—	$	—		$	655
	Commercial paper & corporate securities	9,135		26		(9		)	9,152		6,354		23		(10		)	6,367
		9,246		26		(9		)	9,263		7,009		23		(10		)	7,022
	Investments:
	Common stock and municipal securities	13,538		30		(15		)	13,553		12,507		9		(24		)	12,492
	Agency obligations & Mutual Funds	5,474		23		(4		)	5,493		10,781		5		(35		)	10,750
	US & International government agencies	6,337		4		—			6,341		9,244		—		—			9,244
		25,349		57		(19		)	25,387		32,532		14		(59		)	32,486

	Investments available for sale	$	34,595	$	83	$	(28	)	$	34,650	$	39,541	$	37	$	(69	)	$	39,508

	The cash equivalents detailed above represent highly liquid investments with maturities of three months or less when purchased that are held in our brokerage investment accounts. They are classified as investments available for sale as the amounts represent investments that have matured and are anticipated to be reinvested in debt securities in the near future.

	The following table summarizes maturities of our investments available for sale as of March 31, 2014 and December 31, 2013:

		March 31, 2014				December 31, 2013
		$0				$0
		Cost		Fair Value		Cost			Fair Value
	Maturities:
	Within 3-months	$	3,590	$	3,612	$	12,664		$	12,664
	Between 3—12 months	4,444		4,452		1,623			1,610
	More than 1 year	26,561		26,586		25,254			25,234
	Investments available for sale	$	34,595	$	34,650	$	39,541		$	39,508

	Realized gains and investment income earned on investments available for sale were $54,000 and $18,000, respectively, for the three months ended March 31, 2014 and 2013, and have been included as a component of “Other income, net” in the accompanying financial statements.

Fair_Value

Fair Value	3 Months Ended
Fair Value	Mar. 31, 2014
Fair Value	'
Fair Value	'
	9. Fair Value

	Fair value is defined as the price at which an asset could be exchanged or a liability transferred (an exit price) in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied.

	Financial assets recorded at fair value in the accompanying financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, and are as follows:

	Level 1		Inputs are unadjusted, quoted prices in active markets for identical assets at the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

			The fair valued assets we hold that are generally included in this category are money market securities and the Mesoblast shares received in the disposition of the Therapeutics business, where fair value is based on publicly quoted prices.

	Level 2		Inputs are other than quoted prices included in Level 1, which are either directly or indirectly observable for the asset or liability through correlation with market data at the reporting date and for the duration of the instrument’s anticipated life.

			The fair valued assets we hold that are generally included in this category are investment grade short-term securities and our derivative instrument.

	Level 3		Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the reporting date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

			The only asset we hold that is included in this category is the price protection derivative related to the Mesoblast shares received in the disposition of our Therapeutics business.

	When quoted prices in active markets for identical assets are available, we use these quoted market prices to determine the fair value of financial assets and classify these assets as Level 1. In other cases where a quoted market price for identical assets in an active market is either not available or not observable, we obtain the fair value from a third party vendor that uses pricing models, such as matrix pricing, to determine fair value. These financial assets would then be classified as Level 2. In the event quoted market prices were not available, we would determine fair value using broker quotes or an internal analysis of each investment’s financial statements and cash flow projections. In these instances, financial assets would be classified based upon the lowest level of input that is significant to the valuation. Thus, financial assets might be classified in Level 3 even though there could be some significant inputs that may be readily available.

	The price protection derivative related to the Mesoblast shares is classified in Level 3. Its fair value was determined through use of the Black-Scholes valuation method, a standard industry methodology for valuing equity options, because the price protection is economically equivalent to a put option on the Mesoblast shares at a price of $15 million. Significant inputs to the model include the following:

	Fair value of underlying Mesoblast stock: $15,000,000

	Contractual life: 1.0 year

	Volatility: 40%

	Risk-free interest rate: 0.13%

	Expected dividends: $0

	There have been no other transfers in and out of Level 3. The following table represents a rollforward of the fair value of Level 3 instruments, comprised solely of the limited price protection derivative related to the Mesoblast stock issued to us in connection with the sale of our former Therapeutics business:

			March 31, 2014
			($000s)
	Balance at beginning of period		$	1,685
	Change in Fair Value		286
	Balance at end of period		$	1,971

	Assets and liabilities measured at fair value on a recurring basis are summarized below as of March 31, 2014 and December 31, 2013:

			March 31, 2014
			($000s)
			Level I			Level II			Level III			Total
	Assets
	Investments available for sale
	Cash & Cash Equivalents		$	111		$	—		$	—		$	111
	Investments: Available for Sale Securities
	Government Obligations		—			6,341			—			6,340
	Mutual Funds		—			3,987			—			3,987
	Agency Obligations		—			1,506			—			1,506
	Corporate Debt Securities & Commercial Paper		—			9,152			—			9,152
	Municipal Securities		—			13,553			—			13,554

	Investments available for sale		111			34,539			—			34,650

	Derivative and securities received in business disposition
	Restricted shares of Mesoblast common stock		14,936			—			—			14,936
	Price protection on restricted Mesoblast shares		—			—			1,971			1,971

	Derivative and securities received in business disposition		14,936			—			1,971			16,907

Total assets		$	15,047		$	34,540		$	1,971		$	51,558

		December 31, 2013
		($000s)
		Level I			Level II			Level III			Total
Assets
Investments available for sale
Cash & Cash Equivalents		$	655		$	—		$	—		$	655
Investments: Available for Sale Securities
Government Obligations		—			9,244			—			9,244
Mutual Funds		—			4,076			—			4,076
Agency Obligations		—			6,675			—			6,675
Corporate Debt Securities & Commercial Paper		—			6,367			—			6,367
Municipal Securities		—			12,491			—			12,491

Investments available for sale		655			38,853			—			39,508


Derivative and securities received in business disposition
Restricted shares of Mesoblast common stock		15,401			—			—			15,401
Price protection on restricted Mesoblast shares		—			—			1,685			1,685

Derivative and securities received in business disposition		—			—			1,685			17,086


Total assets		$	16,056		$	38,853		$	1,685		$	56,594

Subsequent_Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2014
Subsequent Events	'
Subsequent Events	'
	10. Subsequent Events

	We evaluated our March 31, 2014 financial statements for subsequent events through the date the consolidated financial statements were issued. On April 9, 2014, we received a $15.0 million milestone payment related to the disposition of the Therapeutics product as detailed in “Note 2 - Discontinued Operations.” We are not aware of any other subsequent events which would require recognition or disclosure in the consolidated financial statements. Furthermore, there have been no material changes, outside of the normal course of business, to any of the contractual obligations disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

Description_of_Business_and_Si1

Description of Business and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2014
Description of Business and Significant Accounting Policies	'
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 and assumptions that affect the amounts reported in the financial statements and accompanying notes. Due to the inherent uncertainty involved in making those assumptions, actual results could differ from those estimates. We believe that the most significant estimates that affect our financial statements are those that relate to deferred tax assets, inventory valuation, share-based compensation and the value of the derivative obtained in connection with the sale of our former Therapeutics business.
Reclassifications	'
	Reclassifications

	We have reclassified certain prior-year amounts for comparative purposes. These reclassifications did not affect our results of operations or financial positions for the periods presented.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents

	Amounts listed as cash on our balance sheets are maintained in depository accounts at a commercial bank. Cash and cash equivalents, which include highly liquid investments with maturities of three months or less when purchased, held in our brokerage investment accounts are classified as investments available for sale, as the amounts represent investments that have matured and are anticipated to be reinvested in debt securities in the near future, and are disclosed at fair value, which approximates cost.
Investments Available for Sale	'
	Investments Available for Sale

	Investments available for sale consist primarily of marketable securities with maturities less than one year. Investments available for sale are valued at their fair value, with unrealized gains and losses reported as a separate component of stockholders’ equity in accumulated other comprehensive income. All realized gains and losses on our investments available for sale are recognized in results of operations as other income.

	Investments available for sale are evaluated periodically to determine whether a decline in their value is “other than temporary.” The term “other than temporary” is not intended to indicate a permanent decline in value. Rather, it means that the prospects for near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the security. We review criteria such as the magnitude and duration of the decline, as well as the reasons for the decline, to predict whether the loss in value is other than temporary. If a decline in value is determined to be other than temporary, the carrying value of the security is reduced and a corresponding charge to earnings is recognized.
Trading Securities - Derivative and Securities Received in Business Disposition	'
	Trading Securities - Derivative and Securities Received in Business Disposition

	As discussed in Note 2 — Discontinued Operations, we disposed of our Therapeutics segment in October 2013. A portion of the consideration for the sale of that business was stock of Mesoblast Limited (“Mesoblast”), the parent of the purchaser. We are required to hold that stock for one year from the date of receipt. We currently intend to dispose of the Mesoblast stock as soon as we are able to do so in December 2014. As such, we have reflected the investment as a current asset in Trading Securities. Mesoblast is a public company and its stock is traded on the Australian stock exchange.

	The Mesoblast stock is subject to limited price protection for the one year required holding period. To the extent the value of those shares decreases during the holding period, Mesoblast is required to pay us for the decrease in value. This payment is to be made at least one half in cash and at the option of Mesoblast, up to one half in additional shares of Mesoblast stock. Any additional Mesoblast stock will also have to be held for one year during which period there is no further price protection. The price protection is accounted for as a derivative under ASC 815, Derivatives and Hedging, and, as such is recorded on the balance sheet at fair value, with changes in value recognized in Other income (expense), net. We have elected to measure the Mesoblast stock at fair value with changes in fair value reflected in Other income (expense), net, as permitted under ASC 825-10, Financial Instruments — Fair Value Option.

	Our only derivative instrument is the price guarantee regarding the payment received in restricted shares of Mesoblast stock. We do not hold derivative financial instruments for trading purposes.
Restricted Cash	'
	Restricted Cash

	We periodically are required under the terms of various agreements to provide letters of credit which are collateralized by cash deposits. The majority of the restricted cash balance relates to a letter of credit that we caused to be issued in lieu of a security deposit under the operating lease for our Columbia, Maryland facility.
Trade Accounts Receivable	'
	Trade Accounts Receivable

	Trade accounts receivable are reported at their net realizable value. We charge off uncollectible receivables when the likelihood of collection is remote. We set credit terms with individual customers, and consider receivables outstanding longer than the time specified in the respective customer’s contract, typically 45-days, to be past due. As of March 31, 2014 and December 31, 2013, accounts receivable in the accompanying balance sheets are both reported net of a $78,000 allowance for doubtful accounts, respectively. We believe the reported amounts are fully collectible. Trade accounts receivable balances are not collateralized. We incurred $0 and $21,000 of bad debt expense in the first quarter 2014 and 2013 respectively.
Other Receivables	'
	Other Receivables

	Other receivables consist of amounts due us from Mesoblast related to the sale of our Prochymal business, primarily the scheduled installment payment of $15.0 million which we received subsequent to the end of the first fiscal quarter of 2014, in April 2014. Other receivables also include reimbursements due us from Mesoblast for goods and services provided to them in connection with the Transition Services Agreement entered into as part of the sale transaction. The Transition Services Agreement has been extended so that we will provide some services to Mesoblast through October 10, 2014, and will continue to be reimbursed for the costs and time incurred.
Inventory	'
	Inventory

	We began carrying inventory of our Biosurgery products on our balance sheet following commercial launch of such products. Inventory consists of raw materials, biologic products in process, and products available for distribution. We determine our inventory values using the first-in, first-out method. Inventory is valued at the lower of cost or market, and excludes units that we anticipate distributing for clinical evaluation. Materials and supplies purchased for product development and product improvement activities are expensed as incurred.
Property and Equipment	'
	Property and Equipment

	Property and equipment, including improvements that extend useful lives, are valued at cost, while maintenance and repairs are charged to operations as incurred. Depreciation is calculated using the straight-line method based on estimated useful lives ranging from three to seven years for furniture, equipment and internal use software. Leasehold improvements and assets under capital leases are amortized over the shorter of the estimated useful life of the asset or the term of the lease.
Valuation of Long-lived Assets	'
	Valuation of Long-lived Assets

	We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. Assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, an impairment loss is recognized for the difference between the fair value and carrying value of assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk. There were no impairment losses recognized during the first quarter of fiscal 2014 or during fiscal year 2013.
Biosurgery Revenue Recognition	'
	Biosurgery Revenue Recognition

	We recognize revenue from product distribution when title passes to the customer. Title usually passes when the product is shipped to the customer and leaves our loading dock. In some situations, we store consigned inventory on site in freezers at hospital or clinic facilities and title passes to the customer when the product is used in a surgical procedure. In these instances we recognize the revenue upon notification of the completed surgical procedure. We verify the condition and status of all consigned inventory on at least a quarterly basis. Due to the nature of our products and the need to ensure they are maintained at the proper frozen temperature, we generally do not allow product returns.
Therapeutics Revenue Recognition	'
	Therapeutics Revenue Recognition

	In our former Therapeutics business, we evaluated revenues from agreements that have multiple elements to determine whether the components of the arrangement represent separate units of accounting. To recognize a delivered item in a multiple element arrangement, the delivered items must have value on a standalone basis and the delivery or performance must be probable and within our control for any delivered items that have a right of return. The determination of whether multiple elements of a collaboration agreement meet the criteria for separate units of accounting requires us to exercise judgment. We account for the activities of our former Therapeutics business as discontinued operations.

	Revenues from research licenses associated with our former Therapeutics business were recognized as earned upon either the incurring of reimbursable expenses directly related to the particular research plan or the completion of certain development milestones as defined within the terms of the agreement. Payments received in advance of research performance were designated as deferred revenue. Non-refundable upfront license fees and certain other related fees associated with our former Therapeutics business were recognized on a straight-line basis over the development periods of the contract deliverables. Fees associated with substantive at risk performance based milestones are recognized as revenue upon their completion, as defined in the respective agreements. Incidental assignment of technology rights were recognized as revenue when and if it was earned and received
Research and Development Costs	'
	Research and Development Costs

	We expense internal and external research and development (“R&D”) costs, including costs of funded R&D arrangements and the manufacture of clinical batches of Biosurgery products used in clinical trials, in the period incurred.
Income Taxes	'
	Income Taxes

	Deferred tax liabilities and assets are recognized for the estimated future tax consequences of temporary differences, income tax credits and net operating loss carry-forwards. Temporary differences are primarily the result of the differences between the tax bases of assets and liabilities and their financial reporting values. Deferred tax liabilities and assets are measured by applying the enacted statutory tax rates applicable to the future years in which deferred tax liabilities or assets are expected to be settled or realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense, if any, consists of the taxes payable for the current period and the change during the period in deferred tax assets and liabilities.

	We recognize in our financial statements the impact of a tax position, if that position is more likely than not to be sustained upon an examination, based on the technical merits of the position. Interest and penalties related to income tax matters are recorded as income tax expense. At March 31, 2014 and December 31, 2013 we had no accruals for interest or penalties related to income tax matters.
Income per Common Share	'
	Income per Common Share

	Basic income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per common share adjusts basic income per share for the potentially dilutive effects of common share equivalents, using the treasury stock method, and includes the incremental effect of shares that would be issued upon the assumed exercise of stock options and warrants.

	Diluted loss per common share for the three months ended March 31, 2014 excluded all 1,481,708 of our outstanding options as of March 31, 2014, as their impact on our net loss is anti-dilutive. As a result, basic and diluted weighted average common shares outstanding are identical for this period.

	Diluted loss per common share for the three months ended March 31, 2013 excluded all 2,132,664 shares issuable upon the exercise of options, and all 1,000,000 shares issuable upon the exercise of an outstanding warrant, as their impact on our net loss is anti-dilutive. As a result, basic and diluted weighted average common shares outstanding are identical for the period.
Share-Based Compensation	'
	Share-Based Compensation

	We account for share-based payments using the fair value method.

	We recognize all share-based payments to employees and non-employee directors in our financial statements based on their grant date fair values, calculated using the Black-Scholes option pricing model. Compensation expense related to share-based awards is recognized on a straight-line basis for each vesting tranche based on the value of share awards that are expected to vest on the grant date, which is revised if actual forfeitures differ materially from original expectations.
Comprehensive Income	'
	Comprehensive Income

	Comprehensive income consists of net income and all changes in equity from non-stockholder sources, which consist of changes in unrealized gains and losses on investments.
Concentration of Risk	'
	Concentration of Risk

	We maintain cash and short-term investment balances in accounts that exceed federally insured limits, although we have not experienced any losses on such accounts. We also invest excess cash in investment grade securities, generally with maturities of one year or less.

	We have historically provided credit in the normal course of business to contract counterparties and to the distributors of our product. Trade accounts receivable in the accompanying balance sheets consist primarily of amounts due from distributors of our Biosurgery products within the United States. During the first fiscal quarters of fiscal 2014 and 2013, revenues from one of the distributors of our Biosurgery products, Stability Biologics, comprised approximately 58% and 64%, respectively, of our total Biosurgery product revenues. As of March 31, 2014 and December 31, 2013, receivables from this distributor comprised 20% and 57%, respectively, of our trade receivables. We expect all of our reported receivables to be fully collected. As discussed under “Trade Accounts Receivable,” we have not incurred any bad debt expense for the three months ended March 31, 2014.
Recently Adopted Accounting Guidance at March 31, 2014	'
	Recently Adopted Accounting Guidance at March 31, 2014

	In July 2013, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) related to the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as either a reduction to a deferred tax asset or separately as a liability depending on the existence, availability and/or use of an operating loss carryforward, a similar tax loss, or a tax credit carryforward. This ASU was adopted at January 1, 2014. This ASU did not have an impact on our consolidated financial statements as we currently do not have any unrecognized tax benefits in the same jurisdictions in which we have tax loss or credit carryovers.

Discontinued_Operations_Tables

Discontinued Operations (Tables)	3 Months Ended
Discontinued Operations (Tables)	Mar. 31, 2014
Discontinued Operations	'
Schedule of initial consideration and contingent additional payments upon achievement of milestone events provided under Purchase Agreement	'


		Amount
	Milestone	$0

	Initial consideration
	Letter of intent payments	$	3,500
	Initial closing payment	16,500
	Additional closing payment, received in April 2014	15,000
	Delivery of all scheduled assets under the Transfer Agreement	15,000
	Total initial consideration	50,000

	Contingent Consideration
	First marketing authorization received in the U.S.	20,000
	First marketing authorization received from France, Germany, or European Union.	10,000
	Completion of the enrollment of the Phase 3 Crohn’s Trial or Mesoblast’s election to discontinue the trial	10,000
	Receipt of final data for the Crohn’s trial or first marketing approval for Crohn’s	10,000
	Total conditional consideration	50,000

	Total possible purchase price	$	100,000
Schedule of net assets allocable to the Therapeutics business	'


		March 31, 2014			December 31, 2013
		($000s)			($000s)

	Current assets:
	Accounts receivable	$	96		$	91
	Current liabilities:
	Accounts payable and accrued expenses	$	17		$	57
Summary of operating results of discontinued operations	'


		March 31, 2014			March 31, 2013
		($000s)			($000s)

	Revenue from collaborative research agreements and royalties	$	—		$	186

	Operating expenses:
	Research and development	73			2,024
	Selling, general and administrative	516			243
		589			2,267

	Loss from discontinued operations before income tax expense	(589		)	(2,081		)
	Income tax expense	165			358

	Loss from operations of discontinued operations	$	(754	)	$	(2,439	)

Property_and_Equipment_Tables

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2014
Property and Equipment	'
Schedule of property and equipment	'


		March 31, 2014			December 31,
		$0			2013
					$0
	Laboratory and manufacturing equipment	$	706		$	663
	Computer hardware, furniture and fixtures	1,021			889
	Leased assets	228			228
	Leasehold improvements	4,262			4,260

		6,217			6,050
	Accumulated depreciation and amortization	(4,408		)	(4,154		)

	Property and equipment, net	$	1,809		$	1,896

Inventory_Tables

Inventory (Tables)	3 Months Ended
	Mar. 31, 2014
Inventory	'
Schedule of inventory for Biosurgery business	'


		March 31,		December 31,
		2014		2013
		$0		$0
	Inventory
	Raw materials and supplies	$	460	$	387
	Work-in-process	428		22
	Finished goods	1,449		1,520

	Total Biosurgery inventory	$	2,337	$	1,929

ShareBased_Compensation_Tables

Share-Based Compensation (Tables)	3 Months Ended
Share-Based Compensation (Tables)	Mar. 31, 2014
Share-Based Compensation	'
Summary of stock option activity	'


		Number of		Weighted			Weighted	Aggregate
		Shares		Average			Average	Intrinsic Value
				Exercise			Remaining	(in thousands)
				Price			Contractual Life
	Outstanding at January 1, 2014	1,233,767		$	10.61		6.3-years	$	7,992
	Granted	488,500		$	15.37
	Exercised	(80,559	)	$	(7.87	)		$	507
	Forfeited or canceled	(160,000	)	$	(21.63	)

	Balance, March 31, 2014	1,481,708		$	11.15		7.5-years	$	4,851

	Exercisable at March 31, 2014	509,958		$	10.03		5.7-years	$	2,238

Investments_Available_for_Sale1

Investments Available for Sale (Tables)	3 Months Ended
Investments Available for Sale (Tables)	Mar. 31, 2014
Investments Available for Sale	'
Schedule of investments available for sale	'


		March 31, 2014									December 31, 2013
		$0									$0
				Unrealized									Unrealized
		Cost		Gain		Loss			Fair Value		Cost		Gain		Loss			Fair Value
	Cash equivalents:
	Money market funds & certificates of deposit	$	111	$	—	$	—		$	111	$	655	$	—	$	—		$	655
	Commercial paper & corporate securities	9,135		26		(9		)	9,152		6,354		23		(10		)	6,367
		9,246		26		(9		)	9,263		7,009		23		(10		)	7,022
	Investments:
	Common stock and municipal securities	13,538		30		(15		)	13,553		12,507		9		(24		)	12,492
	Agency obligations & Mutual Funds	5,474		23		(4		)	5,493		10,781		5		(35		)	10,750
	US & International government agencies	6,337		4		—			6,341		9,244		—		—			9,244
		25,349		57		(19		)	25,387		32,532		14		(59		)	32,486

	Investments available for sale	$	34,595	$	83	$	(28	)	$	34,650	$	39,541	$	37	$	(69	)	$	39,508
Schedule of maturities of investments available for sale	'


		March 31, 2014				December 31, 2013
		$0				$0
		Cost		Fair Value		Cost			Fair Value
	Maturities:
	Within 3-months	$	3,590	$	3,612	$	12,664		$	12,664
	Between 3—12 months	4,444		4,452		1,623			1,610
	More than 1 year	26,561		26,586		25,254			25,234
	Investments available for sale	$	34,595	$	34,650	$	39,541		$	39,508

Fair_Value_Tables

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2014
Fair Value	'
Schedule of significant inputs used to measure fair value using Black-Scholes valuation method	'


	Fair value of underlying Mesoblast stock: $15,000,000

	Contractual life: 1.0 year

	Volatility: 40%

	Risk-free interest rate: 0.13%

	Expected dividends: $0
Schedule of rollforward of the fair value of Level 3 instruments, comprised solely of the limited price protection derivative related to the Mesoblast stock issued to entity in connection with the sale of entity's former Therapeutics business	'


		March 31, 2014
		($000s)
	Balance at beginning of period	$	1,685
	Change in Fair Value	286
	Balance at end of period	$	1,971
Schedule of assets and liabilities measured at fair value on a recurring basis	'


		March 31, 2014
		($000s)
		Level I		Level II		Level III		Total
	Assets
	Investments available for sale
	Cash & Cash Equivalents	$	111	$	—	$	—	$	111
	Investments: Available for Sale Securities
	Government Obligations	—		6,341		—		6,340
	Mutual Funds	—		3,987		—		3,987
	Agency Obligations	—		1,506		—		1,506
	Corporate Debt Securities & Commercial Paper	—		9,152		—		9,152
	Municipal Securities	—		13,553		—		13,554

	Investments available for sale	111		34,539		—		34,650

	Derivative and securities received in business disposition
	Restricted shares of Mesoblast common stock	14,936		—		—		14,936
	Price protection on restricted Mesoblast shares	—		—		1,971		1,971

	Derivative and securities received in business disposition	14,936		—		1,971		16,907

	Total assets	$	15,047	$	34,540	$	1,971	$	51,558

		December 31, 2013
		($000s)
		Level I		Level II		Level III		Total
	Assets
	Investments available for sale
	Cash & Cash Equivalents	$	655	$	—	$	—	$	655
	Investments: Available for Sale Securities
	Government Obligations	—		9,244		—		9,244
	Mutual Funds	—		4,076		—		4,076
	Agency Obligations	—		6,675		—		6,675
	Corporate Debt Securities & Commercial Paper	—		6,367		—		6,367
	Municipal Securities	—		12,491		—		12,491

	Investments available for sale	655		38,853		—		39,508


	Derivative and securities received in business disposition
	Restricted shares of Mesoblast common stock	15,401		—		—		15,401
	Price protection on restricted Mesoblast shares	—		—		1,685		1,685

	Derivative and securities received in business disposition	—		—		1,685		17,086


	Total assets	$	16,056	$	38,853	$	1,685	$	56,594

Description_of_Business_and_Si2

Description of Business and Significant Accounting Policies(Details)	3 Months Ended
	Mar. 31, 2014
	item
Description of Business and Significant Accounting Policies	'
Number of business segments	2

Description_of_Business_and_Si3

Description of Business and Significant Accounting Policies (Details 2) (Purchase Agreement with Mesoblast)	0 Months Ended	3 Months Ended
	Oct. 10, 2013	Mar. 31, 2014	Mar. 31, 2014
Purchase Agreement with Mesoblast	'	'	'
Derivative and Securities Received in Business Disposition	'	'	'
Holding period for any payments made in ordinary shares	'1 year	'	'
Holding period of stock subject to limited price protection	'	'	'1 year
Aggregate compensation to be received for decrease in value of shares payable in cash (as a percent)	'	50.00%	'
Aggregate compensation to be received for decrease in value of shares (as a percent)	'	100.00%	'

Description_of_Business_and_Si4

Description of Business and Significant Accounting Policies (Details 3) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Trade Accounts Receivable	'	'	'
Typical trade accounts receivable due period	'45 days	'	'
Allowance for doubtful accounts related to accounts receivable	$78,000	'	$78,000
Trade Accounts Receivable	'	'	'
Provision for bad debts	'	22,000	'
Other Receivables	'	'	'
Scheduled installment payment due related to the sale of our Prochymal business	$15,000,000	'	'

Description_of_Business_and_Si5

Description of Business and Significant Accounting Policies (Details 4) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Valuation of Long-lived Assets	'	'
Impairment losses	$0	$0
Income Taxes	'	'
Accruals for interest or penalties related to income tax matters	$0	$0
Minimum	'	'
Property and Equipment	'	'
Estimated useful lives	'3 years	'
Maximum	'	'
Property and Equipment	'	'
Estimated useful lives	'7 years	'

Description_of_Business_and_Si6

Description of Business and Significant Accounting Policies (Details 5)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Warrant	'	'
Income per Common Share	'	'
Anti-dilutive securities not included in diluted income (loss) per common share	'	1,000,000
Stock options	'	'
Income per Common Share	'	'
Anti-dilutive securities not included in diluted income (loss) per common share	1,481,708	2,132,664

Description_of_Business_and_Si7

Description of Business and Significant Accounting Policies (Details 6) (Distributors)	3 Months Ended	12 Months Ended	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
	Receivables	Receivables	Revenue	Revenue
			Biosurgery segment	Biosurgery segment
			item	item
Concentration of Risk	'	'	'	'
Number of significant distributors	'	'	1	1
Concentration of risk (as a percent)	20.00%	57.00%	58.00%	64.00%

Discontinued_Operations_Detail

Discontinued Operations (Details) (USD $)

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

0 Months Ended

3 Months Ended

12 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2011

Mar. 31, 2014

Dec. 31, 2013

Apr. 09, 2014

Oct. 10, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Dec. 18, 2013

Oct. 10, 2013

Therapeutics segment

Purchase Agreement with Mesoblast

Subsequent event

Hedging instrument

Therapeutics segment

Letter of intent payments

Initial closing payment

Additional closing payment, received in April 2014

Delivery of all scheduled assets under the Transfer Agreement

First marketing authorization received in the U.S.

First marketing authorization received from France, Germany, or European Union

Completion of the enrollment of the Phase 3 Crohn's Trial or Mesoblast's election to discontinue the trial

Receipt of final data for the Crohn's trial or first marketing approval for Crohn's

Therapeutics segment

Initial consideration and contingent additional payments provided under Purchase Agreement

Initial consideration

$50,000,000

$3,500,000

$16,500,000

$15,000,000

Contingent Consideration

50,000,000

20,000,000

10,000,000

Total possible purchase price

100,000,000

Total initial consideration paid in cash

20,000,000

Initial consideration paid in ordinary shares

-15,000,000

Holding period for any payments made in ordinary shares

'1 year

Fair value of derivative instruments

1,700,000

Consideration in cash

20,000,000

Consideration in restricted stock

15,000,000

Initial consideration payable in cash

15,000,000

Gain on sale of discontinued operations

49,400,000

Transaction costs

600,000

Income tax expense related to gain from sale of discontinued operation

2,000,000

1,700,000

Current assets:

Accounts Receivable

96,000

91,000

Current liabilities:

Accounts payable and accrued expenses

17,000

57,000

Contingent milestone payments received

15,000,000

Royalty revenue

Summarized operating results

Revenue from collaborative research agreements and royalties

186,000

Operating expenses:

Research and development

73,000

2,024,000

Selling, general and administrative

516,000

243,000

Total operating expenses

589,000

2,267,000

Loss from discontinued operations before income tax expense

-589,000

-2,081,000

Income tax expense

-165,000

-358,000

-818,000

-165,000

358,000

Loss from operations of discontinued operations

($754,000)

($2,439,000)

($754,000)

($2,439,000)

Segment_Reporting_Details

Segment Reporting (Details)	3 Months Ended
	Mar. 31, 2014
	item
Segment Reporting	'
Number of operating segments historically managed by the entity	2
Number of operating segments	1

Property_and_Equipment_Details

Property and Equipment (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Property and Equipment	'	'
Property and equipment, gross	$6,217	$6,050
Accumulated depreciation and amortization	-4,408	-4,154
Property and equipment, net	1,809	1,896
Laboratory and manufacturing equipment	'	'
Property and Equipment	'	'
Property and equipment, gross	706	663
Computer hardware, furniture and fixtures	'	'
Property and Equipment	'	'
Property and equipment, gross	1,021	899
Leased assets	'	'
Property and Equipment	'	'
Property and equipment, gross	228	228
Leasehold improvements	'	'
Property and Equipment	'	'
Property and equipment, gross	$4,262	$4,260

Inventory_Details

Inventory (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Inventory	'	'
Total Biosurgery inventory	$2,337	$1,929
Biosurgery segment	'	'
Inventory	'	'
Raw materials and supplies	460	387
Work-in-process	428	22
Finished goods	1,449	1,520
Total Biosurgery inventory	$2,337	$1,929

ShareBased_Compensation_Detail

Share-Based Compensation (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Dec. 31, 2013	6-May-14	Mar. 31, 2014
	Stock options	Stock options	Amended and Restated 2006 Omnibus Plan	Amended and Restated 2006 Omnibus Plan	Amended and Restated 2006 Omnibus Plan	Amended and Restated 1994 Stock Incentive Plan
					Subsequent event
Share-Based Compensation	'	'	'	'	'	'
Common stock reserved for issuance (in shares)	'	'	2,250,000	'	2,100,000	736,378
Shares available for future issuance	'	'	'	14,281	'	0
Proceeds for exercise of options	$634,000	'	'	'	'	'
Total unrecognized compensation costs related to non-vested stock options	4,500,000	'	'	'	'	'
Number of Shares	'	'	'	'	'	'
Outstanding at the beginning of the period (in shares)	1,233,767	'	'	'	'	'
Granted (in shares)	488,500	'	'	'	'	'
Exercised (in shares)	-80,559	'	'	'	'	'
Forfeited or canceled (in shares)	-160,000	'	'	'	'	'
Outstanding at the end of the period (in shares)	1,481,708	1,233,767	'	'	'	'
Exercisable at the end of the period (in shares)	509,958	'	'	'	'	'
Weighted Average Exercise Price Per Share	'	'	'	'	'	'
Outstanding at the beginning of the period (in dollars per share)	$10.61	'	'	'	'	'
Granted (in dollars per share)	$15.37	'	'	'	'	'
Exercised (in dollars per share)	($7.87)	'	'	'	'	'
Forfeited or canceled (in dollars per share)	($21.63)	'	'	'	'	'
Outstanding at the end of the period (in dollars per share)	$11.15	$10.61	'	'	'	'
Exercisable at the end of the period (in dollars per share)	$10.03	'	'	'	'	'
Weighted Average Remaining Term Contractual Life	'	'	'	'	'	'
Outstanding at the beginning of the period	'7 years 6 months	'6 years 3 months 18 days	'	'	'	'
Outstanding at the end of the period	'7 years 6 months	'6 years 3 months 18 days	'	'	'	'
Exercisable at the end of the period	'5 years 8 months 12 days	'	'	'	'	'
Aggregate Intrinsic Value	'	'	'	'	'	'
Outstanding at the beginning of the period (in dollars)	7,992,000	'	'	'	'	'
Exercised (in dollars)	507,000	'	'	'	'	'
Outstanding at the end of the period (in dollars)	4,851,000	7,992,000	'	'	'	'
Exercisable at the end of the period (in dollars)	$2,238,000	'	'	'	'	'
Weighted average fair value of options granted (in dollars per share)	$8.11	'	'	'	'	'

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Income Taxes	'	'
Tax benefit from continuing operations	($130)	($358)

Investments_Available_for_Sale2

Investments Available for Sale (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Investments available for sale	'	'
Cost	$34,595	$39,541
Unrealized Gain	83	37
Unrealized Loss	-28	-69
Fair value of investments available for sale	34,650	39,508
Investments	'	'
Investments available for sale	'	'
Cost	25,349	32,532
Unrealized Gain	57	14
Unrealized Loss	-19	-59
Fair value of investments available for sale	25,387	32,486
Common stock and municipal securities	'	'
Investments available for sale	'	'
Cost	13,538	12,507
Unrealized Gain	30	9
Unrealized Loss	-15	-24
Fair value of investments available for sale	13,553	12,492
Agency obligations & Mutual Funds	'	'
Investments available for sale	'	'
Cost	5,474	10,781
Unrealized Gain	23	5
Unrealized Loss	-4	-35
Fair value of investments available for sale	5,493	10,750
US & International government agencies	'	'
Investments available for sale	'	'
Cost	6,337	9,244
Unrealized Gain	4	'
Fair value of investments available for sale	6,341	9,244
Cash equivalents	'	'
Investments available for sale	'	'
Cost	9,246	7,009
Unrealized Gain	26	23
Unrealized Loss	-9	-10
Fair value of investments available for sale	9,263	7,022
Money market funds & certificates of deposit	'	'
Investments available for sale	'	'
Cost	111	655
Fair value of investments available for sale	111	655
Commercial paper & corporate securities	'	'
Investments available for sale	'	'
Cost	9,135	6,354
Unrealized Gain	26	23
Unrealized Loss	-9	-10
Fair value of investments available for sale	$9,152	$6,367

Investments_Available_for_Sale3

Investments Available for Sale (Details 2) (USD $)	3 Months Ended	12 Months Ended
Investments Available for Sale (Details 2) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Cost	'	'
Maturities Within 3-months	$3,590,000	$12,664,000
Maturities Between 3-12 months	4,444,000	1,623,000
More than 1 year	26,561,000	25,254,000
Cost of investments available for sale	34,595,000	39,541,000
Fair Value	'	'
Maturities Within 3-months	3,612,000	12,664,000
Maturities Between 3-12 months	4,452,000	1,610,000
More than 1 year	26,586,000	25,234,000
Fair value of investments available for sale	34,650,000	39,508,000
Realized gains and investment income earned on investments available for sale	$54,000	$18,000

Fair_Value_Details

Fair Value (Details) (USD $)	3 Months Ended				3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014
		Price protection on restricted Mesoblast shares	Recurring	Recurring	Recurring
			Level III	Level III	Price protection on restricted Mesoblast shares
					Level III
Significant inputs	'	'	'	'	'
Fair value	'	'	$1,971	$1,685	$15,000
Contractual life	'	'	'	'	'1 year
Volatility (as a percent)	'	'	'	'	40.00%
Risk free interest rate (as a percent)	'	'	'	'	0.13%
Expected dividends	'	'	'	'	$0
Other transfers in and out of Level 3	'	'	'	'	'
Other transfers in Level 3	0	'	'	'	'
Other transfers out of Level 3	0	'	'	'	'
Rollforward of the fair value of Level 3 instruments	'	'	'	'	'
Balance at beginning of period	'	1,685	'	'	'
Change in Fair Value	'	286	'	'	'
Balance at end of period	'	$1,971	'	'	'

Fair_Value_Details_2

Fair Value (Details 2) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Assets	'	'
Investments available for sale	$34,650	$39,508
Recurring \| Level I	'	'
Assets	'	'
Investments available for sale	111	655
Derivative instruments	14,936	'
Total assets	15,047	16,056
Recurring \| Level II	'	'
Assets	'	'
Investments available for sale	34,539	38,853
Total assets	34,540	38,853
Recurring \| Level III	'	'
Assets	'	'
Derivative instruments	1,971	1,685
Total assets	1,971	1,685
Recurring \| Total	'	'
Assets	'	'
Investments available for sale	34,650	39,508
Derivative and securities received in business disposition	16,907	17,086
Derivative instruments	16,907	'
Total assets	51,558	56,594
Recurring \| Cash equivalents \| Level I	'	'
Assets	'	'
Investments available for sale	111	655
Recurring \| Cash equivalents \| Total	'	'
Assets	'	'
Investments available for sale	111	655
Recurring \| Government Obligations \| Level II	'	'
Assets	'	'
Investments available for sale	6,341	9,244
Recurring \| Government Obligations \| Total	'	'
Assets	'	'
Investments available for sale	6,340	9,244
Recurring \| Mutual Funds \| Level II	'	'
Assets	'	'
Investments available for sale	3,987	4,076
Recurring \| Mutual Funds \| Total	'	'
Assets	'	'
Investments available for sale	3,987	4,076
Recurring \| Agency Obligations \| Level II	'	'
Assets	'	'
Investments available for sale	1,506	6,675
Recurring \| Agency Obligations \| Total	'	'
Assets	'	'
Investments available for sale	1,506	6,675
Recurring \| Commercial paper & corporate securities \| Level II	'	'
Assets	'	'
Investments available for sale	9,152	6,367
Recurring \| Commercial paper & corporate securities \| Total	'	'
Assets	'	'
Investments available for sale	9,152	6,367
Recurring \| Municipal Securities \| Level II	'	'
Assets	'	'
Investments available for sale	13,553	12,491
Recurring \| Municipal Securities \| Total	'	'
Assets	'	'
Investments available for sale	13,553	12,491
Recurring \| Restricted shares of Mesoblast common stock \| Level I	'	'
Assets	'	'
Fair value of securities	14,936	15,401
Recurring \| Restricted shares of Mesoblast common stock \| Total	'	'
Assets	'	'
Fair value of securities	14,936	15,401
Recurring \| Price protection on restricted Mesoblast shares \| Level III	'	'
Assets	'	'
Derivative instruments	15,000	'
Recurring \| Price protection on restricted Mesoblast shares \| Level III \| Hedging instrument	'	'
Assets	'	'
Derivative instruments	1,971	1,685
Recurring \| Price protection on restricted Mesoblast shares \| Total \| Hedging instrument	'	'
Assets	'	'
Derivative instruments	$1,971	$1,685

Subsequent_Events_Details

Subsequent Events (Details) (Therapeutics product, USD $)	12 Months Ended	0 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Apr. 09, 2014
	Dec. 31, 2013	Subsequent event
Subsequent event	'	'
Contingent milestone payments received	$0	$15,000