Sucampo Pharmaceuticals 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Entity Registrant Name	Sucampo Pharmaceuticals, Inc.
Entity Central Index Key	1,365,216
Trading Symbol	scmp
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		45,788,853
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Common Class A [Member]
Stockholders' equity:
Common stock value	$ 456,000	$ 455,000
Common Class B [Member]
Stockholders' equity:
Common stock value	0	0
Cash and cash equivalents	130,077,000	108,284,000
Product royalties receivable	16,501,000	22,792,000
Accounts receivable, net	16,074,000	22,759,000
Restricted cash	26,944,000	55,218,000
Inventories	24,437,000	33,121,000
Prepaid expenses and other current assets	14,097,000	9,186,000
Total current assets	228,130,000	251,360,000
Property and equipment, net	6,944,000	6,393,000
Intangible assets	133,599,000	130,315,000
Goodwill	65,787,000	60,937,000
In-process research and development	6,614,000	6,171,000
Deferred charge, non-current	1,400,000	$ 1,400,000
Convertible note receivable	5,000,000
Other assets	736,000	$ 605,000
Total assets	448,210,000	457,181,000
Accounts payable	5,135,000	11,213,000
Accrued expenses	13,689,000	10,886,000
Collaboration obligation	5,197,000	5,623,000
Income tax payable	3,468,000	6,507,000
Notes payable, current	27,839,000	39,083,000
Other current liabilities	7,097,000	14,815,000
Total current liabilities	62,425,000	88,127,000
Notes payable, non-current	207,862,000	213,277,000
Deferred revenue, non-current	941,000	1,088,000
Deferred tax liability, net	59,188,000	52,497,000
Other liabilities	16,951,000	15,743,000
Total liabilities	347,367,000	370,732,000
Preferred stock, $0.01 par value; 5,000,000 shares authorized at March 31, 2016 and December 31, 2015; no shares issued and outstanding at March 31, 2016 and December 31, 2015	0	0
Additional paid-in capital	102,115,000	99,212,000
Accumulated other comprehensive income	28,959,000	13,412,000
Treasury stock, at cost; 3,009,942 shares at March 31, 2016 and December 31, 2015	(46,269,000)	(46,269,000)
Retained earnings	15,582,000	19,639,000
Total stockholders' equity	100,843,000	86,449,000
Total liabilities and stockholders' equity	$ 448,210,000	$ 457,181,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Common Class A [Member]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	270,000,000	270,000,000
Common stock, shares issued (in shares)	45,640,318	45,509,150
Common stock, shares outstanding (in shares)	45,640,318	45,509,150
Common Class B [Member]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Treasury stock shares (in shares)	3,009,942	3,009,942

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Product royalty revenue	$ 16,716	$ 15,745
Product sales revenue	26,595	11,145
Research and development revenue	3,430	2,345
Contract and collaboration revenue	467	245
Total revenues	47,208	29,480
Costs and expenses:
Costs of goods sold	23,338	6,110
Research and development	14,671	6,793
General and administrative	8,927	6,283
Selling and marketing	775	640
Total costs and expenses	47,711	19,826
Income (loss) from operations	(503)	9,654
Non-operating income (expense):
Interest income	25	40
Interest expense	(6,270)	(276)
Other expense, net	(347)	(203)
Total non-operating expense, net	(6,592)	(439)
Income (loss) before income taxes	(7,095)	9,215
Income tax benefit (provision)	3,038	(2,807)
Net income (loss)	$ (4,057)	$ 6,408
Net income (loss) per share:
Basic (in dollars per share)	$ (0.10)	$ 0.14
Diluted (in dollars per share)	$ (0.10)	$ 0.14
Weighted average common shares outstanding:
Basic (in shares)	42,539	44,366
Diluted (in shares)	42,539	45,912
Comprehensive income (loss):
Net income (loss)	$ (4,057)	$ 6,408
Other comprehensive income (expense):
Unrealized loss on pension benefit obligation	$ (8)	(7)
Unrealized gain (loss) on investments, net of tax effect		(6)
Foreign currency translation gain (loss)	$ 15,555	175
Comprehensive income (loss)	$ 11,490	$ 6,570

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($)	Common Stock [Member]Common Class A [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2015	45,509,150			3,009,942
Balance at Dec. 31, 2015	$ 455,000	$ 99,212,000	$ 13,412,000	$ (46,269,000)	$ 19,639,000	$ 86,449,000
Stock-based compensation expense		1,971				1,971
Stock issued under exercise of stock options (in shares)	124,883
Stock issued under exercise of stock options	$ 1,000	756,000				757,000
Stock issued under employee stock purchase plan (in shares)	6,285
Stock issued under employee stock purchase plan		58,000				58,000
Windfall tax benefit from stock-based compensation		118,000				118,000
Unrealized loss on pension benefit obligation			(8,000)			(8,000)
Foreign currency translation gain (loss)			15,555,000			15,555,000
Net income (loss)					(4,057,000)	(4,057,000)
Balance (in shares) at Mar. 31, 2016	45,640,318			3,009,942
Balance at Mar. 31, 2016	$ 456,000	$ 102,115,000	$ 28,959,000	$ (46,269,000)	$ 15,582,000	$ 100,843,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ (4,057,000)	$ 6,408,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,573,000	83,000
Deferred tax provision	$ 2,347,000	(114,000)
Deferred charge		74,000
Stock-based compensation	$ 1,971,000	1,069,000
Amortization of premiums on investments		26,000
Unrealized currency translations	$ 4,226,000	18,000
Shortfall from stock-based compensation	(62,000)	$ (68,000)
Windfall benefit from stock-based compensation	(180,000)
Changes in operating assets and liabilities:
Product royalties receivable	6,292,000	$ 2,830,000
Accounts receivable	8,378,000	(2,707,000)
Unbilled accounts receivable	(1,087,000)	(112,000)
Inventory	1,774,000	(328,000)
Prepaid and income taxes receivable and payable, net	(3,295,000)	556,000
Accounts payable	(6,266,000)	(2,727,000)
Accrued expenses	(2,067,000)	1,200,000
Accrued interest payable	4,743,000	275,000
Deferred revenue	58,000	(446,000)
Collaboration obligation	(425,000)	(61,000)
Other assets and liabilities, net	(4,366,000)	(1,397,000)
Net cash provided by operating activities	$ 23,557,000	4,579,000
Cash flows from investing activities:
Purchases of investments		(25,987,000)
Maturities of investments		$ 5,250,000
Convertible note receivable	$ (5,000,000)
Changes in restricted cash	10,598,000
Squeeze-out liability for non-tendering R-Tech shareholders	(8,213,000)
Purchases of property and equipment	(735,000)	$ (12,000)
Net cash used in investing activities	(3,350,000)	$ (20,749,000)
Cash flows from financing activities:
Payments of notes payable	(17,574,000)
Changes in restricted cash	17,676,000
Proceeds from exercise of stock options	757,000	$ 3,270,000
Proceeds from employee stock purchase plan	58,000	11,000
Windfall benefit from stock-based compensation	180,000	869,000
Net cash provided by financing activities	1,097,000	4,150,000
Effect of exchange rates on cash and cash equivalents	489,000	37,000
Net increase (decrease) in cash and cash equivalents	21,793,000	(11,983,000)
Cash and cash equivalents at beginning of period	108,284,000	71,622,000
Cash and cash equivalents at end of period	$ 130,077,000	$ 59,639,000

Note 1 - Business Organization

Note 1 - Business Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Business Organization and Basis of Presentation Description of the Business Sucampo Pharmaceuticals, Inc., (Company) is a global biopharmaceutical company focused on innovative research and development of proprietary drugs to treat gastrointestinal, ophthalmic, autoimmune The Company currently generates revenue mainly from product royalties, upfront and milestone payments, product sales and reimbursements for development activities. The Company expects to continue to incur significant expenses for the next several years as the Company continues its research and development activities, seeks additional regulatory approvals and additional indications for approved products and other compounds and seeks strategic opportunities for in-licensing new products and product candidates. AMITIZA ® In Japan, AMITIZA is marketed under a license, commercialization and supply agreement (the Japan Mylan Agreement) that was transferred to Mylan, Inc. (Mylan) from Abbott Laboratories, Inc. (Abbott), as of February 2015, as part of Mylan’s acquisition of a product portfolio from Abbott. The Company received approval of its new drug application (NDA) for AMITIZA for the treatment of chronic constipation (CC), excluding constipation caused by organic diseases, from Japan’s Ministry of Health, Labour and Welfare in June 2012 and pricing approval in November 2012. AMITIZA is Japan’s only prescription medicine for CC. The Company did not experience any significant changes in the commercialization of AMITIZA in Japan as a result of the transfer of the Japan Mylan Agreement from Abbott to Mylan. In May 2015, the Company entered into an exclusive license, development, commercialization and supply agreement (the China Gloria Agreement) with Harbin Gloria Pharmaceuticals Co., Ltd. (Gloria), for AMITIZA in the People’s Republic of China. Under the China Gloria Agreement, Gloria is responsible for all development activities and costs, as well as commercialization and regulatory activities, for AMITIZA in the People’s Republic of China. The Company will be the exclusive supplier of AMITIZA to Gloria at an agreed upon supply price. Upon entering into the China Gloria Agreement, the Company received an upfront payment of $1.0 million. In June 2015, the China Food and Drug Administration accepted an Investigational New Drug (IND) application for a pivotal trial of AMITIZA in patients with CIC; as a result the Company received an additional payment of $500,000 from Gloria. In addition to the $1.5 million in payments received and recognized as revenue through June 2015, the Company is eligible to receive an additional payment in the amount of $1.5 million upon the occurrence of a specified regulatory or commercial milestone event. In October 2014, the Company entered into an exclusive license, development, commercialization and supply agreement (the Global Takeda Agreement) for lubiprostone with Takeda, through which Takeda has the exclusive rights to further develop and commercialize AMITIZA in all global markets, except the U.S., Canada, Japan and the People’s Republic of China. Takeda became the marketing authorization holder in Switzerland in April 2015, in the United Kingdom (U.K.), Austria, Belgium, Germany, Ireland and Luxembourg in early 2016, and is expected to become the marketing authorization holder in Italy, the Netherlands and Spain in the first half of 2016. Before the execution of the Global Takeda Agreement, the Company retained full rights to develop and commercialize AMITIZA for the rest of the world’s markets outside of the U.S., Canada and Japan. In the U.K., the Company received approval in September 2012 from the Medicines and Healthcare Products Regulatory Agency (MHRA) for the use of AMITIZA to treat CIC. The Company made AMITIZA available in the U.K. in the fourth quarter of 2013. In 2014, the Company resubmitted an application to the MHRA for approval of the OIC indication following its initial decision to not approve in March 2014. In January 2016, the Company received notification from the MHRA that the appeal for the OIC indication was not approved. In July 2014, National Institute of Health and Care Excellence (NICE) published the technology appraisal guidance recommending the use of AMITIZA in the treatment of CIC and associated symptoms in adults who have failed laxatives. In January 2015, the Company successfully completed the European mutual recognition procedure (MRP) for AMITIZA for the treatment of CIC in select European countries, resulting in a recommendation for marketing authorization. In Switzerland, AMITIZA was approved to treat CIC in 2009. In 2012, the Company reached an agreement with the Bundesamt fur Gesundheit, (BAG), the Federal Office of Public Health in Switzerland, on a reimbursement price for AMITIZA in Switzerland, and began active marketing in the first quarter of 2013. In October 2015, the Company and Takeda obtained approval of the clinical trial application (CTA) for AMITIZA for the treatment of CIC and IBS-C in Russia that was submitted in June 2015. In December 2015, a CTA was filed for AMITIZA for the treatment of CIC, IBS-C and OIC in Mexico and South Korea. The Company expects Takeda to initiate phase 3 registration trials in Russia, Mexico, and South Korea in the first half of 2016. An NDA for the treatment of CIC, IBS-C, and OIC was submitted in Kazakhstan in December 2015 In the U.S., the Company ceased marketing RESCULA in the fourth quarter of 2014 and no product was made available after the March 2015 expiration date. In May 2015, the Company returned all licenses for unoprostone isopropyl to R-Tech. As part of the acquisition of R-Tech in October 2015, the Company acquired all rights to RESCULA. RESCULA is being commercialized by Santen Pharmaceutical Co., Ltd in Japan, Dong-A Pharmaceutical, Co., Ltd in South Korea and Zuelliq Pharma Co., Ltd in Taiwan The Company’s other clinical development programs include the following: Lubiprostone Alternate Formulation The Company has been developing an alternate formulation of lubiprostone for both adult and pediatric patients who are unable to tolerate capsules and for naso-gastric tube fed patients. Takeda has agreed to fund 100% of the costs, up to a cap, of this alternate formulation work and the Company expects to initiate a phase 3 trial of the alternate formulation of lubiprostone in the second half of 2016. Lubiprostone for Pediatric Functional Constipation The phase 3 program required to support an application for marketing approval of lubiprostone for pediatric functional constipation comprises four clinical trials, two of which are currently ongoing and are both testing the soft gelatin capsule formulation of lubiprostone in patients 6 to 17 years of age. The first of the two trials is a pivotal 12-week, randomized, placebo-controlled trial which was initiated in December 2013. The second trial is a follow-on, long-term safety extension trial that was initiated in March 2014. Following the successful completion of the phase 3 trial for the alternative formulation of lubiprostone, which Takeda is funding 100% up to a cap, as described above, the Company is also planning to initiate two additional trials in its phase 3 program for pediatric functional constipation, which will be in children aged 6 months to less than 6 years testing the alternative formulation. Takeda has agreed to fund 70% of the costs, up to a cap, of this pediatric functional constipation program. Cobiprostone for Oral Mucositis In May 2015, the U.S. FDA granted Fast Track Designation for cobiprostone for the prevention of OM. In September 2015, the Company initiated a phase 2a clinical trial in the U.S. of cobiprostone oral spray for the prevention of OM in patients suffering from head and neck cancer (HNC) receiving concurrent radiation therapy (RT) and chemotherapy (CT). Cobiprostone for Proton Pump Inhibitor-Refractory Non-Erosive Reflux Disease (NERD)/symptomatic Gastroesophageal Reflux Disease (sGERD) In December 2014, the Company initiated a phase 2a clinical trial in Japan for cobiprostone in NERD/sGERD patients who have had a non-satisfactory response to proton pump inhibitors. In April 2016, the Company reported that its analysis of the top-line date from this study showed that the trial did not meet its primary endpoints and, as a result, the Company would discontinue development of cobiprostone for this indication. VAP-1 Inhibitor for RTU-1096 RTU-1096 is an oral compound under development for the treatment of diseases such as nonalcoholic steatohepatitis (NASH), chronic obstructive pulmonary disease (COPD), diabetic macular edema (DME) and diabetic retinopathy (DR) and immune-oncology. In the first quarter of 2016, the Company completed a phase 1 in healthy individuals that evaluated the safety and pharmacokinetics expects to receive results from this trial in the first half of 2016. The Company will also look to generate additional preclinical data in the emerging area of immune-oncology, to support partnership opportunities of combination therapy in cancer patients of our molecules with check-point pathway inhibitors. VAP-1 Inhibitor for RTU-009 RTU-009 is a pre-clinical stage, injectable VAP-1 inhibitor that is planned to be studied in acute cerebral infarction. The Company’s next step would be to complete IND-enabling studies, and thereafter initiate clinical-stage development. CPP 1-X/Sulindac Combination Product In January 2016, This product is currently in a phase 3 clinical trial, which is being conducted by CPP for the treatment of familial adenomatous polyposis (FAP). Under the agreement with CPP, the Company has the exclusive option to license this product for North America. There are currently no approved treatments for FAP. The ongoing phase 3 study is a 150-patient, three-arm, double-blind, randomized trial of the combination agent and the single agent comparators. Enrollment in the study is expected to be complete in the first half of 2016 and the trial is expected to conclude in 2018. More information regarding the Company’s arrangement with CPP is set forth in note 19. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and the rules and regulations of the U.S. Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s Consolidated Financial Statements as of and for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on March 11, 2016, as amended. The financial information as of March 31, 2016 and for the three months ended March 31, 2016 and 2015 is unaudited. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments or accruals, considered necessary for a fair statement of the results of these interim periods have been included. The results of the Company’s operations for any interim period are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year. The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries: Sucampo AG (SAG) based in Zug, Switzerland, through which the Company conducts certain of its worldwide and European operations; Sucampo Pharma, LLC (SPL) based in Osaka, Japan, through which the Company conducts its Asian operations; R-Tech Ueno, Ltd., based in Kobe, Japan, through which the Company conducts manufacturing and certain development operations; Sucampo Pharma Americas LLC (SPA), based in Rockville, Maryland, through which the Company conducts its North American operations; and Sucampo Pharma Europe, Ltd. (SPE), based in Oxford, United Kingdom. All inter-company balances and transactions have been eliminated. The preparation of financial statements in conformity with GAAP 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. Actual results could differ from those estimates.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Significant Accounting Policies [Text Block]	2. Summary of Significant Accounting Policies Restricted Cash As of March 31, 2016, restricted cash consisted primarily of $25.0 million related to the Credit Facility (see note 14). As of December 31, 2015, restricted cash consisted primarily of $25.0 million related to the Credit Facility and $17.7 million related to the payment of the Ueno and Kuno Trust Notes, which were settled on February 1, 2016 (see note 13), and $8.2 million related to the squeeze out of non-tendering R-Tech shareholders, which was settled in January 2016. Certain Risks, Concentrations and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and cash equivalents, restricted cash and receivables. The Company places its cash, cash equivalents and restricted cash with highly rated financial institutions. As of March 31, 2016 and December 31, 2015, approximately $2.4 million or 1.5%, and $5.9 million or 3.6%, respectively, of the Company’s cash, cash equivalents, and restricted cash were issued or insured by the United States government or other government agencies. The Company has not experienced any losses on these accounts related to amounts in excess of insured limits. Revenues from Takeda, an unrelated party, accounted for 61.5% and 61.8% of the Company’s total revenues for the three months ended March 31, 2016 and 2015, respectively. Accounts receivable and product royalties receivable from Takeda accounted for 76.1% and 78.1% of the Company’s total accounts receivable and product royalties receivable at March 31, 2016 and December 31, 2015, respectively. Revenues from another unrelated party, Mylan, accounted for 30.6% and 37.8% of the Company’s total revenues for the three months ended March 31, 2016 and 2015, respectively. The Company depends significantly upon collaborations with Takeda and Mylan, and its activities may be impacted if these relationships are disrupted. Fair Value of Financial Instruments The carrying values of the Company’s financial instruments approximate their fair values based on their short maturities, independent valuations or internal assessments. The Company’s financial instruments include cash and cash equivalents, restricted cash, current and non-current investments, receivables, accounts payable, convertible notes receivable, collaboration obligation and accrued expenses. The carrying amounts of the notes payable at March 31, 2016 and 2015 approximated fair value and are classified as a Level 2 instrument. Variable Interest Entities The Company performs an initial and on-going evaluation of the entities with which it has variable interests, such as equity ownership, in order to identify entities (i) that do not have sufficient equity investment at risk to permit the entity to finance its activities without additional subordinated financial support or (ii) in which the equity investors lack an essential characteristic of a controlling financial interest as variable interest entities (“VIE” or “VIEs”). If an entity is identified as a VIE, the Company performs an assessment to determine whether the Company has both (i) the power to direct activities that most significantly impact the VIE’s economic performance and (ii) have the obligation to absorb losses from or the right to receive benefits of the VIE that could potentially be significant to the VIE. If both of these criteria are satisfied, the Company is identified as the primary beneficiary of the VIE. As of March 31, 2016, the Company’s investment in CPP, in which we held a variable interest, was determined to be a VIE. See note 19 for additional information. Recent Accounting Pronouncements In April 2015 , the FASB issued ASU Number 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs to a note shall be reported in the balance sheet as a direct reduction from the face amount of the note. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those fiscal years. ASU 2015-03 had no effect on the Company’s results of operations or liquidity. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes The Company has elected to early adopt the guidance and applied the guidance on a prospective basis. The adoption has no impact on consolidated statements of operations and comprehensive income, changes in stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2015. In January 2016, the FASB issued Accounting Standards Update 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share Based Payment Accounting

Note 3 - Net (Loss) Income per

Note 3 - Net (Loss) Income per Share	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	3. Net Income (Loss) per Share Basic net income (loss) per share is computed by dividing net income (loss) by the sum of the weighted average class A common shares outstanding. Diluted net income per share is computed by dividing net income by the weighted average common shares and potential dilutive common shares outstanding. Diluted net loss per share is computed by dividing net loss by the weighted average common shares outstanding without the impact of potential dilutive common shares outstanding because they would have an anti-dilutive impact on diluted net loss per share. The computation of net income (loss) per share for the three months ended March 31, 2016 and 2015 is shown below: Three Months Ended March 31, (In thousands, except per share data) 2016 2015 Basic net income (loss) per share: Net income (loss) $ (4,057 ) $ 6,408 Weighted average class A common shares outstanding 42,539 44,366 Basic net income (loss) per share $ (0.10 ) $ 0.14 Diluted net income (loss) per share: Net income (loss) $ (4,057 ) $ 6,408 Weighted average class A common shares outstanding 42,539 44,366 Assumed exercise of stock options under the treasury stock method - 1,546 42,539 45,912 Diluted net income (loss) per share $ (0.10 ) $ 0.14 The following securities were excluded from the computation of diluted net loss per share as their effect would have been anti-dilutive for the three months ended March 31, 2016 and 2015: Three Months Ended March 31, (In thousands) 2016 2015 Employee stock options 5,537 957

Note 4 - Acquisition of R-Tech

Note 4 - Acquisition of R-Tech	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block]	4. Acquisition of R-Tech On October 20, 2015, the Company acquired approximately 98% of the outstanding shares of R-Tech Ueno, Ltd., a Japanese company (R-Tech). The Company acquired the remaining 2% of outstanding shares of R-Tech through a squeeze-out process under Japanese law on December 8, 2015. The total consideration for the acquisition was 33 billion Japanese Yen, or approximately $275 million. This transaction was accounted for under the acquisition method of accounting, with the Company as the acquirer. Under the acquisition method of accounting, the assets and liabilities of R-Tech were recorded as of the acquisition date at their respective fair values, and combined with those of the Company. The purchase price allocation was based upon preliminary estimates using information that was available to management at the time the financial statements were prepared. These estimates and assumptions are subject to change within the measurement period, up to one year from the acquisition date. Accordingly, the allocation may change. The Company continues to gather information about the fair value of all assets and liabilities, including intangible assets, acquired and deferred tax assets and liabilities. The Company is in the process of finalizing a valuation appraisal for an acquired building. There have been no material changes to the preliminary purchase price during the first quarter of 2016. Acquisition related costs are expensed when incurred and are included in general and administrative expenses in the consolidated statement of operations and comprehensive income. The following unaudited pro forma information is presented as if the acquisition had occurred on January 1, 2015, and combines the historical results of operations of the Company and R-Tech for the three months ended March 31, 2016 and 2015. Three months ended March 31, (In thousands) 2016 2015 Pro forma revenue $ 47,208 $ 42,916 Pro forma net loss (4,057 ) (2,346 )

Note 5 - Segment Information

Note 5 - Segment Information	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	5. Segment Information The Company has one operating segment which is the development and commercialization of pharmaceutical products. Summarized product category and geographic information is shown in the tables below. Product Category Information Revenues for product categories are attributed based on the following categories. Product royalty revenue represents royalty revenue earned on the net sales of AMITIZA in North America. Product sales revenue represents drug product net sales of AMITIZA in North America, Japan and Europe and drug product net sales of RESCULA in Japan. Research and development revenue represents funded development work primarily related to AMITIZA. Contract and collaboration revenue represents the amortization of up-front payments under the North America Takeda Agreement and release of the collaboration obligation under the Global Takeda Agreement (see note 15). Company revenues by product category for the three months ended March 31, 2016 and 2015 were as follows: Three Months Ended March 31, (In thousands) 2016 2015 Product royalty revenue $ 16,716 $ 15,745 Product sales revenue - AMITIZA 23,434 11,151 Product sales revenue - RESCULA 3,161 (6 ) Research and development revenue 3,430 2,345 Contract and collaboration revenue 467 245 Total $ 47,208 $ 29,480 Geographical Information Revenues are attributable to countries based on the location of the customer. The Company operates a manufacturing facility in Japan that supplies products to customers as well as the Company’s subsidiaries in other countries. The sales from the manufacturing operations to other countries are included in the net sales of the country in which the manufacturing location is based. The intersegment portions of such sales are excluded to derive consolidated revenues. The Company’s country of domicile is the United States. Company revenues by geographic location for the three months ended March 31, 2016 and 2015 were as follows: Three Months Ended March 31, (In thousands) 2016 2015 United States $ 28,939 $ 18,225 Japan 17,848 11,157 Rest of the world 421 98 Total $ 47,208 $ 29,480 The Company’s long-lived assets by geographic location where located on March 31, 2016 and 2015 were as follows: (In thousands) March 31, December 31, United States $ 3,238 $ 3,105 Japan 3,657 3,232 Rest of the world 49 56 Total $ 6,944 $ 6,393

Note 6 - Fair Value Measurement

Note 6 - Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Fair Value, Measurement Inputs, Disclosure [Text Block]	6. Fair Value measurements The Company performs fair value measurements in accordance with the Financial Accounting Standards Board’s (FASB) guidance for fair value measurements and disclosures, which defines fair value as the exchange price that would be received for selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is established which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company classifies its investments into the following categories based on the three levels of inputs used to measure fair value: Level 1 Level 2 Level 3 The Company has elected the fair value option on its investment in CPP; as such, it is measured at fair value on a recurring basis. As of March 31, 2016, the fair value of the convertible note is $5.0 million using level 3 inputs (see note 19) provided by a valuation specialist using market level inputs and assumptions. The Company re-evaluates the fair value on a quarterly basis. Changes in the fair value can result from adjustments to the market level inputs and assumptions. The election was made upon the acquisition of the financial asset and cannot be revoked. The changes in fair value are recorded in current earnings within Other Income. As of March 31, 2016, there were no changes in the fair value of the note recorded in earnings related to the convertible note received from CPP. There were no other financial instruments measured at fair value on a recurring basis as of March 31, 2016, and no financial instruments were measured at fair value on a recurring basis as of December 31, 2015.

Note 7 - Restructuring

Note 7 - Restructuring	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Restructuring and Related Activities Disclosure [Text Block]	7. Restructuring In December 2015, the Company adopted a plan to restructure certain operations and consolidate certain functions in the Company’s corporate headquarters located in Rockville, Maryland. During the three months ended March 31, 2016, the Company recorded pretax charges of approximately $183,000. The restructuring plan primarily included headcount reductions. These costs are reflected within operating expenses between research and development, general and administrative expenses, and selling and marketing expenses. As of March 31, 2016, a restructuring accrual of $94,000 was included in accrued liabilities. The Company expects to record additional restructuring charges in 2016 related to this program and in connection with the integration of R-Tech. The restructuring charges incurred under this plan total $1.0 million. The following table summarizes the cash components of the restructuring costs at March 31, 2016. (In thousands) Termination Facility Contract & Total Balance at December 31, 2015 $ 851 $ - $ - $ 851 Expenses incurred 183 - - 183 Amounts paid (940 ) - - (940 ) Balance at March 31, 2016 $ 94 $ - $ - $ 94

Note 8 - Inventory

Note 8 - Inventory	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	8. Inventory Inventories are stated at the lower of cost or net realizable value. Inventories consist of raw materials, work-in-process and finished goods. The Company’s inventories include the direct purchase cost of materials and supplies and manufacturing overhead costs. In connection with the acquisition of R-Tech, all inventory held by R-Tech was stepped-up in fair value to $37.6 million as of the acquisition date. As of March 31, 2016 and December 31, 2015, the remaining balance of inventory step-up was $6.1 million and $14.3 million, respectively. The remaining balance of inventory step-up will amortize evenly through costs of goods through May 2016. Inventory consisted of the following at March 31, 2016 and December 31, 2015: (In thousands) March 31, December 31, Raw materials $ 1,696 $ 5,554 Work in process 21,674 26,926 Finished goods 1,067 641 Total $ 24,437 $ 33,121

Note 9 - Intangible Assets

Note 9 - Intangible Assets	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	9. Intangible Assets Intangible assets by major class consisted of the following as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 (In thousands) Weighted average life Carrying amount Weighted average life Carrying amount Amortized intangible assets Patent and license rights 69 $ 10,513 72 $ 10,513 Manufacturing know-how 74 134,600 76 134,600 Accumulated amortization (14,375 ) (8,463 ) Impairment losses (5,651 ) (5,651 ) Foreign currency translation adjustments 8,512 (684 ) Total amortized intangible assets $ 133,599 $ 130,315 Unamortized intangible assets In-process research and development $ 6,614 $ 6,171 Goodwill 65,787 60,937 Total unamortized intangible assets $ 72,401 $ 67,108 Total intangible assets $ 206,000 $ 197,423 The changes in intangible assets for the three months ended March 31, 2016 are as follows: (In thousands) Intangibles Goodwill In-process research & development Balance at December 31, 2015 $ 130,315 $ 60,937 $ 6,171 Additions - 467 - Amortization (5,906 ) - - Foreign currency translation adjustment 9,190 4,383 443 Balance at March 31, 2016 $ 133,599 $ 65,787 $ 6,614

Note 10 - Accrued Expenses and

Note 10 - Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	10. Accrued Expenses and Other Current Liabilities Accrued expenses consisted of the following at March 31, 2016 and December 31, 2015: (In thousands) March 31, December 31, Research and development costs $ 5,266 $ 3,843 Accrued interest 4,812 70 Employee compensation 1,671 4,860 Restructuring 95 851 Legal service fees 421 428 Other accrued expenses 1,424 834 Total $ 13,689 $ 10,886 Other current liabilities consisted of the following at March 31, 2016 and December 31, 2015: (In thousands) March 31, December 31, Indirect taxes payable $ 4,582 $ 5,963 Squeeze out liability for non-tendering R-Tech shareholders 468 7,668 Deferred revenue 881 676 Other liabilities 1,166 508 Total $ 7,097 $ 14,815

Note 11 - Other Liabilities

Note 11 - Other Liabilities	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Other Liabilities Disclosure [Text Block]	11. Other Liabilities Other liabilities consisted of the following at March 31, 2016 and December 31, 2015: (In thousands) March 31, December 31, Deferred grants $ 10,275 $ 9,604 Unrecognized tax benefits 3,522 3,061 Deferred leasehold incentive 1,656 1,715 Other liabilities 1,498 1,363 Total $ 16,951 $ 15,743 Deferred grants consisted of a $10.0 million grant from the Japan Science and Technology Agency for use in developing unoprostone-related medicine for pigmentary degeneration of the retina, and a $300,000 government grant from Montgomery County, Maryland related to the move of the Company’s headquarters. Both grants may have to be repaid if certain conditions are not met.

Note 12 - Commitments and Conti

Note 12 - Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	12. Commitments and Contingencies Operating Leases The Company leases office space in the United States, Switzerland and Japan under operating leases through 2027. Total future minimum, non-cancelable lease payments under operating leases are as follows: (In thousands) March 31, 2016 $ 1,299 2017 976 2018 1,258 2019 1,029 2020 969 Total minimum lease payments $ 5,531 Rent expense for all operating leases was approximately $645,000 and $333,000 for the three months ended March 31, 2016 and March 31, 2015, respectively. Numab Commitment The maximum contingent liability under the Numab Agreement (see note 13) in the event that Numab defaults under its loan with Zurcher Kantonalbank is $2.3 million. This guarantee is set to expire during September 2016. As of March 31, 2016 and December 31, 2015, due to the pay down of the loan with Zurcher Kantonalbank, the potential amount of payments in the event of Numab’s default is $1.6 million and $1.5 million, respectively. As of March 31 2016, the Company had a recorded liability of $208,000 in collateral callable to meet a potential loan default by Numab.

Note 13 - Related Party Transac

Note 13 - Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	13. Related Party Transactions R-Tech Ueno, Ltd. Before the R-Tech acquisition on October 20, 2015, R-Tech was a related party through common ownership. Prior to the R-Tech acquisition the Company did not own manufacturing facilities. Instead, the Company contracted with R-Tech as the sole manufacturer of the Company’s products to produce AMITIZA and RESCULA. The Company had entered into multiple exclusive supply arrangements with R-Tech and had granted to R-Tech the exclusive right to manufacture and supply AMITIZA and other products and compounds to the Company to meet its commercial and clinical requirements. Since 2003, the Company has received upfront, development and milestone payments under these agreements totaling $9.0 million through October 20, 2015. The Company recorded the following expenses under all of its agreements with R-Tech for the three months ended March 31, 2015: (In thousands) Three Months Ended March 31, Clinical supplies $ 31 Other research and development services 5 Commercial supplies 6,142 $ 6,178 (In thousands) March 31, Deferred revenue, current $ 138 Deferred revenue, non-current 4,240 $ 4,378 The Company recognized approximately $138,000 of revenue relating to its agreements with R-Tech for the three months ended March 31, 2015, which was recorded as contract and collaboration revenue in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. Numab AG In September 2011, the Company entered into a loan guarantee and development agreement (the Numab Agreement) with Numab AG (Numab). Under the terms of the Numab Agreement, which extends through September 2016, the Company would provide Numab with up to CHF 5.0 million as collateral and would serve as guarantor for a loan to Numab from a third party, Zurcher Kantonalbank. Following the payment of the first success fee during the first quarter of 2013, this amount was reduced to CHF 2.2 million, or approximately $2.3 million as of March 31, 2016. As of March 31, 2016, collateral of CHF 2.2 million had been deposited by the Company and Numab has utilized CHF 1.5 million of its loan facility, or approximately $1.6 million. At March 31, 2016 and December 31, 2015, the Company has a recorded guarantee liability of $208,000 and $202,000, respectively, in collateral callable to meet a potential loan default by Numab. Subordinated Unsecured Promissory Notes In connection with the SAG acquisition in 2010, the Company issued subordinated unsecured promissory notes (Notes) to the Ueno Trust and Kuno Trust, former shareholders of SAG. The Ueno Trust and Kuno Trust are considered related parties. Each of the Notes was issued with an initial principal balance of approximately $25.9 million, or approximately $51.9 million in the aggregate. The interest rate for the Notes is the sum of the London Interbank Offered Rate, or LIBOR, plus 4.0%, and was reset on December 1, 2015 to 4.7%. On February 1, 2016, the Notes were paid in full.

Note 14 - Credit Facility and N

Note 14 - Credit Facility and Notes Payable	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	14. Credit Facility and Notes Payable On October 16, 2015, the Company entered into a Credit Agreement (Credit Facility) with Jefferies Financing LLC. Term Loans under the Credit Facility bear interest, at the Company’s option, at the Adjusted Eurodollar Rate plus 7.25% or the Adjustable Base Rate plus 6.25%. The average interest rate on the notes payable for the three months ending March 31, 2016 was 8.39%. The Company was in compliance with all covenants under the credit facility as of March 31, 2016. The Company’s debt is subject to the fair value disclosure requirements as discussed in note 2, and is classified as a Level 2 security.

Note 15 - Collaboration Obligat

Note 15 - Collaboration Obligation	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Collaborative Arrangement Disclosure [Text Block]	15. Collaboration Obligation Due to signing of the Global Takeda Agreement, the Company received an upfront payment from Takeda of $14.0 million in 2014, of which the Company is obligated to reimburse Takeda for the first $6.0 million in developmental expenses incurred by Takeda. As of March 31, 2016 and December 31, 2015, the collaboration obligation was $5.2 million and $5.6 million, respectively.

Note 16 - Collaboration and Lic

Note 16 - Collaboration and License Agreements	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Collaborative and License Arrangement Disclosure [Text Block]	16. Collaboration and License Agreements North America Takeda Agreement The following table summarizes the cash streams and related revenue recognized or deferred under the North America Takeda Agreement for the three months ended March 31, 2016: (In thousands) Amount Cash Received Revenue Change in Foreign Currency Amount Product royalty revenue $ - $ 22,792 $ 16,500 $ (6,292 ) $ - $ - Product sales revenue $ - $ 13,391 $ 8,974 $ (3,939 ) $ (478 ) $ - Research and development revenue: Reimbursement of research and development expenses $ - $ 3,309 $ 3,429 $ 120 $ - $ - Collaboration revenue: Up-front payment associated with the Company's obligation to participate in joint committees $ 736 $ - $ 37 $ - $ - $ 699 Japan Mylan Agreement The following table summarizes the cash streams and related revenue recognized or deferred under the Japan Mylan Agreement for the three months ended March 31, 2016: (In thousands) Amount Deferred at December 31, Cash Received for the Three Months Ended March 31, Revenue Recognized for the Three Months Ended March 31, Change in Accounts Receivable for the Three Months Ended March 31, Foreign Currency Effects for the Three Months Ended March 31, Amount Deferred at March 31, Product sales revenue $ - $ 14,881 $ 14,460 $ 1,277 $ (1,698 ) $ - Collaboration revenue: Up-front payment associated with the Company's obligation to participate in joint committees $ 416 $ - $ 9 $ - $ 30 $ 437 The Company has recorded product sales revenue under the Japan Mylan Agreement for the three months ended March 31, 2016 and 2015 of approximately $14.5 million and $11.1 million, respectively. China Gloria Agreement The Company has no recorded product sales revenue under the China Gloria Agreement for the three months ended March 31, 2016. Japan Santen Agreement The Company has recorded Rescula product sales revenue under the Japan Santen Agreement for the three months ended March 31, 2016 of approximately $3.4 million. The Company has recorded no revenues under the Japan Santen Agreement for the three months ended March 31, 2015

Note 17 - Stock Option Plans

Note 17 - Stock Option Plans	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	17. Stock Option Plans A summary of employee stock option activity for the three months ended March 31, 2016 under the Company’s Amended and Restated 2001 Stock Incentive Plan is presented below: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding, December 31, 2015 37,400 $ 10.00 Options exercised (20,400 ) 10.00 Options outstanding, March 31, 2016 17,000 10.00 0.09 $ 15,810 Options exercisable, March 31, 2016 17,000 10.00 0.09 $ 15,810 Options vested and expected to vest, March 31, 2016 17,000 10.00 0.09 $ 15,810 A summary of employee stock option activity for the three months ended March 31, 2016 under the Company’s Amended and Restated 2006 Stock Incentive Plan is presented below: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding, December 31, 2015 4,440,608 $ 9.37 Options granted 1,224,450 13.69 Options exercised (104,483 ) 6.10 Options forfeited (28,209 ) 14.29 Options expired (12,025 ) 15.86 Options outstanding, March 31, 2016 5,520,341 10.35 8.36 $ 11,809,367 Options exercisable, March 31, 2016 2,100,317 8.05 6.95 $ 7,503,522 Options vested and expected to vest, March 31, 2016 4,356,237 9.95 8.14 $ 10,352,390 The weighted average grant date fair value of options granted during the three months ended March 31, 2016 and the year ended December 31, 2015 was $13.69 and $15.18, respectively. Employee Stock Purchase Plan Under the Company’s 2006 Employee Stock Purchase Plan, the Company received $58,391 and $11,483 upon employees’ purchase of 6,285 and 950 shares of class A common stock during the three months ended March 31, 2016 and 2015, respectively. Accumulated Other Comprehensive Income (Loss) The following table details the accumulated other comprehensive income (loss) activity for the three months ended March 31, 2016 and 2015: (In thousands) Foreign currency translation adjustments Unrealized income (loss) on investments, net of tax effect Unrealized income (loss) on pension benefit obligation Accumulated other comprehensive income (loss) Balance January 1, 2016 $ 14,243 $ 42 $ (873 ) $ 13,412 Other comprehensive income before reclassifications 15,555 - (8 ) 15,547 Amounts reclassified from accumulated other comprehensive loss - - - - Balance March 31, 2016 $ 29,798 $ 42 $ (881 ) $ 28,959 Balance January 1, 2015 $ 15,208 $ 35 $ (978 ) $ 14,265 Other comprehensive income before reclassifications 175 (6 ) (7 ) 162 Amounts reclassified from accumulated other comprehensive loss - - - - Balance March 31, 2015 $ 15,383 $ 29 $ (985 ) $ 14,427

Note 18 - Income Taxes

Note 18 - Income Taxes	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	18. Income Taxes The provision for income taxes is based upon the estimated annual effective tax rates for the year applied to the current period income before tax plus the tax effect of any significant unusual items, discrete events or changes in tax law. Our operating subsidiaries are exposed to effective tax rates ranging from zero to approximately 40%. Fluctuations in the distribution of pre-tax income among our operating subsidiaries can lead to fluctuations of the effective tax rate in the condensed consolidated financial statements. In the three-month periods ended March 31, 2016 and 2015, the actual effective tax rates were 42.8% and 30.5%, respectively. We assess uncertain tax positions in accordance with ASC 740 (ASC 740-10 Accounting for Uncertainties in Tax). As of March 31, 2016, our net unrecognized tax benefits totaled approximately $3.5 million. Of this balance $2.2 million would favorably impact our effective tax rate in the periods if they are recognized. Management has not identified any uncertain tax positions that are reasonably likely to be released during the next 12 months due to lapse of statutes of limitations or settlements with tax authorities. We conduct business globally and, as a result, file numerous consolidated and separate income tax returns in the U.S., Switzerland and Japan, as well as in various other state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world. Currently tax years 2011 to 2015 remain open and subject to examination in the major tax jurisdictions in which tax returns are filed. The tax years 2009-2011 were examined by the U.S. tax authorities and resulted in no tax adjustments.

Note 19 - Investments

Note 19 - Investments	3 Months Ended
	Mar. 31, 2016
CPP [Member]
Notes to Financial Statements
Collaborative and License Arrangement Disclosure [Text Block]	19. Investments On January 9, 2016, the Company entered into a Securities Purchase Agreement and an Option and Collaboration Agreement with Cancer Prevention Pharmaceuticals (CPP) for the development and commercialization of CPP-1X/sulindac combination. Under the terms of a Securities Purchase Agreement, the Company made a $5.0 million loan to CPP in exchange for a convertible note. The note will automatically convert into CPP securities at a discount upon a Qualified Financing as defined by the Securities Purchase Agreement. The Company has also agreed to purchase up to $5.0 million of CPP’s securities in a Qualified Financing. CPP filed a Registration Statement on Form S-1 with the Securities and Exchange Commission in December 2015. Under the terms of an Option and Collaboration Agreement, CPP granted the Company the sole option to acquire an exclusive license to commercialize CPP-1X/Sulindac combination product in North America. This product is currently in a Phase 3 clinical trial for the treatment of familial adenomatous polyposis (FAP). Target enrollment in the study was achieved in April of 2016 and the trial is expected to conclude in 2018. The Company will pay CPP an option fee of $7.5 million, payable in two tranches. The first tranche of $3.0 million was paid in January 2016 and expensed as R&D expense and the second tranche of $4.5 million is due upon achievement of certain results of the ongoing feasibility study (expected in the third quarter of 2016). CPP will complete the ongoing Phase 3 trial under the oversight of a joint steering committee between CPP and the Company. Upon exercise of its exclusive option, the Company would acquire the rights to negotiate an exclusive license to develop and commercialize the product in North America for all indications in connection with the exercise and finalization of the license right, the Company would be obligated to pay CPP up to an aggregate of $190.0 million of specified clinical development and sales milestones. Under the terms of the license, the Company and CPP would share equally in net profits from the sale of licensed products. The Company has elected the fair value option on the convertible note received from CPP due to the nature of the financial characteristics of the investment. As of March 31, 2016, the fair value of the convertible note is $5.0 million using level 3 inputs (see note 6). CPP is considered a variable interest entity in which the Company has a variable interest. It has been determined that the power to direct the activities that most significantly impact CPP’s economic performance is held by the board of directors of CPP. The Company does not have a representative on CPP’s board and does not have the right to appoint or elect such a representative. Therefore, the Company is not the primary beneficiary of CPP and the entity is not consolidated. The company’s maximum exposure to loss as a result of its involvement with CPP is $5.0 million as of March 31, 2016, which is the investment in the convertible security of $5.0 million. As of December 31, 2015, CPP had total assets of $1.8 million and total liabilities of $12.5 million.
Collaborative and License Arrangement Disclosure [Text Block]	16. Collaboration and License Agreements North America Takeda Agreement The following table summarizes the cash streams and related revenue recognized or deferred under the North America Takeda Agreement for the three months ended March 31, 2016: (In thousands) Amount Cash Received Revenue Change in Foreign Currency Amount Product royalty revenue $ - $ 22,792 $ 16,500 $ (6,292 ) $ - $ - Product sales revenue $ - $ 13,391 $ 8,974 $ (3,939 ) $ (478 ) $ - Research and development revenue: Reimbursement of research and development expenses $ - $ 3,309 $ 3,429 $ 120 $ - $ - Collaboration revenue: Up-front payment associated with the Company's obligation to participate in joint committees $ 736 $ - $ 37 $ - $ - $ 699 Japan Mylan Agreement The following table summarizes the cash streams and related revenue recognized or deferred under the Japan Mylan Agreement for the three months ended March 31, 2016: (In thousands) Amount Deferred at December 31, Cash Received for the Three Months Ended March 31, Revenue Recognized for the Three Months Ended March 31, Change in Accounts Receivable for the Three Months Ended March 31, Foreign Currency Effects for the Three Months Ended March 31, Amount Deferred at March 31, Product sales revenue $ - $ 14,881 $ 14,460 $ 1,277 $ (1,698 ) $ - Collaboration revenue: Up-front payment associated with the Company's obligation to participate in joint committees $ 416 $ - $ 9 $ - $ 30 $ 437 The Company has recorded product sales revenue under the Japan Mylan Agreement for the three months ended March 31, 2016 and 2015 of approximately $14.5 million and $11.1 million, respectively. China Gloria Agreement The Company has no recorded product sales revenue under the China Gloria Agreement for the three months ended March 31, 2016. Japan Santen Agreement The Company has recorded Rescula product sales revenue under the Japan Santen Agreement for the three months ended March 31, 2016 of approximately $3.4 million. The Company has recorded no revenues under the Japan Santen Agreement for the three months ended March 31, 2015

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]	Restricted Cash As of March 31, 2016, restricted cash consisted primarily of $25.0 million related to the Credit Facility (see note 14). As of December 31, 2015, restricted cash consisted primarily of $25.0 million related to the Credit Facility and $17.7 million related to the payment of the Ueno and Kuno Trust Notes, which were settled on February 1, 2016 (see note 13), and $8.2 million related to the squeeze out of non-tendering R-Tech shareholders, which was settled in January 2016.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Certain Risks, Concentrations and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and cash equivalents, restricted cash and receivables. The Company places its cash, cash equivalents and restricted cash with highly rated financial institutions. As of March 31, 2016 and December 31, 2015, approximately $2.4 million or 1.5%, and $5.9 million or 3.6%, respectively, of the Company’s cash, cash equivalents, and restricted cash were issued or insured by the United States government or other government agencies. The Company has not experienced any losses on these accounts related to amounts in excess of insured limits. Revenues from Takeda, an unrelated party, accounted for 61.5% and 61.8% of the Company’s total revenues for the three months ended March 31, 2016 and 2015, respectively. Accounts receivable and product royalties receivable from Takeda accounted for 76.1% and 78.1% of the Company’s total accounts receivable and product royalties receivable at March 31, 2016 and December 31, 2015, respectively. Revenues from another unrelated party, Mylan, accounted for 30.6% and 37.8% of the Company’s total revenues for the three months ended March 31, 2016 and 2015, respectively. The Company depends significantly upon collaborations with Takeda and Mylan, and its activities may be impacted if these relationships are disrupted.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments The carrying values of the Company’s financial instruments approximate their fair values based on their short maturities, independent valuations or internal assessments. The Company’s financial instruments include cash and cash equivalents, restricted cash, current and non-current investments, receivables, accounts payable, convertible notes receivable, collaboration obligation and accrued expenses. The carrying amounts of the notes payable at March 31, 2016 and 2015 approximated fair value and are classified as a Level 2 instrument.
Consolidation, Variable Interest Entity, Policy [Policy Text Block]	Variable Interest Entities The Company performs an initial and on-going evaluation of the entities with which it has variable interests, such as equity ownership, in order to identify entities (i) that do not have sufficient equity investment at risk to permit the entity to finance its activities without additional subordinated financial support or (ii) in which the equity investors lack an essential characteristic of a controlling financial interest as variable interest entities (“VIE” or “VIEs”). If an entity is identified as a VIE, the Company performs an assessment to determine whether the Company has both (i) the power to direct activities that most significantly impact the VIE’s economic performance and (ii) have the obligation to absorb losses from or the right to receive benefits of the VIE that could potentially be significant to the VIE. If both of these criteria are satisfied, the Company is identified as the primary beneficiary of the VIE. As of March 31, 2016, the Company’s investment in CPP, in which we held a variable interest, was determined to be a VIE. See note 19 for additional information.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In April 2015 , the FASB issued ASU Number 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs to a note shall be reported in the balance sheet as a direct reduction from the face amount of the note. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those fiscal years. ASU 2015-03 had no effect on the Company’s results of operations or liquidity. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes The Company has elected to early adopt the guidance and applied the guidance on a prospective basis. The adoption has no impact on consolidated statements of operations and comprehensive income, changes in stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2015. In January 2016, the FASB issued Accounting Standards Update 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share Based Payment Accounting

Note 3 - Net (Loss) Income pe27

Note 3 - Net (Loss) Income per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended March 31, (In thousands, except per share data) 2016 2015 Basic net income (loss) per share: Net income (loss) $ (4,057 ) $ 6,408 Weighted average class A common shares outstanding 42,539 44,366 Basic net income (loss) per share $ (0.10 ) $ 0.14 Diluted net income (loss) per share: Net income (loss) $ (4,057 ) $ 6,408 Weighted average class A common shares outstanding 42,539 44,366 Assumed exercise of stock options under the treasury stock method - 1,546 42,539 45,912 Diluted net income (loss) per share $ (0.10 ) $ 0.14
Schedule of Potentially Dilutive Securities [Table Text Block]	Three Months Ended March 31, (In thousands) 2016 2015 Employee stock options 5,537 957

Note 4 - Acquisition of R-Tech

Note 4 - Acquisition of R-Tech (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Business Acquisition, Pro Forma Information [Table Text Block]	Three months ended March 31, (In thousands) 2016 2015 Pro forma revenue $ 47,208 $ 42,916 Pro forma net loss (4,057 ) (2,346 )

Note 5 - Segment Information (T

Note 5 - Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Revenue from External Customers by Products and Services [Table Text Block]	Three Months Ended March 31, (In thousands) 2016 2015 Product royalty revenue $ 16,716 $ 15,745 Product sales revenue - AMITIZA 23,434 11,151 Product sales revenue - RESCULA 3,161 (6 ) Research and development revenue 3,430 2,345 Contract and collaboration revenue 467 245 Total $ 47,208 $ 29,480
Revenue from External Customers by Geographic Areas [Table Text Block]	Three Months Ended March 31, (In thousands) 2016 2015 United States $ 28,939 $ 18,225 Japan 17,848 11,157 Rest of the world 421 98 Total $ 47,208 $ 29,480
Long-lived Assets by Geographic Areas [Table Text Block]	(In thousands) March 31, December 31, United States $ 3,238 $ 3,105 Japan 3,657 3,232 Rest of the world 49 56 Total $ 6,944 $ 6,393

Note 7 - Restructuring (Tables)

Note 7 - Restructuring (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Restructuring and Related Costs [Table Text Block]	(In thousands) Termination Facility Contract & Total Balance at December 31, 2015 $ 851 $ - $ - $ 851 Expenses incurred 183 - - 183 Amounts paid (940 ) - - (940 ) Balance at March 31, 2016 $ 94 $ - $ - $ 94

Note 8 - Inventory (Tables)

Note 8 - Inventory (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	(In thousands) March 31, December 31, Raw materials $ 1,696 $ 5,554 Work in process 21,674 26,926 Finished goods 1,067 641 Total $ 24,437 $ 33,121

Note 9 - Intangible Assets (Tab

Note 9 - Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Intangible Assets and Goodwill [Table Text Block]	March 31, 2016 December 31, 2015 (In thousands) Weighted average life Carrying amount Weighted average life Carrying amount Amortized intangible assets Patent and license rights 69 $ 10,513 72 $ 10,513 Manufacturing know-how 74 134,600 76 134,600 Accumulated amortization (14,375 ) (8,463 ) Impairment losses (5,651 ) (5,651 ) Foreign currency translation adjustments 8,512 (684 ) Total amortized intangible assets $ 133,599 $ 130,315 Unamortized intangible assets In-process research and development $ 6,614 $ 6,171 Goodwill 65,787 60,937 Total unamortized intangible assets $ 72,401 $ 67,108 Total intangible assets $ 206,000 $ 197,423
Schedule of Changes in Intangible Assets and Goodwill [Table Text Block]	(In thousands) Intangibles Goodwill In-process research & development Balance at December 31, 2015 $ 130,315 $ 60,937 $ 6,171 Additions - 467 - Amortization (5,906 ) - - Foreign currency translation adjustment 9,190 4,383 443 Balance at March 31, 2016 $ 133,599 $ 65,787 $ 6,614

Note 10 - Accrued Expenses an33

Note 10 - Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	(In thousands) March 31, December 31, Research and development costs $ 5,266 $ 3,843 Accrued interest 4,812 70 Employee compensation 1,671 4,860 Restructuring 95 851 Legal service fees 421 428 Other accrued expenses 1,424 834 Total $ 13,689 $ 10,886 (In thousands) March 31, December 31, Indirect taxes payable $ 4,582 $ 5,963 Squeeze out liability for non-tendering R-Tech shareholders 468 7,668 Deferred revenue 881 676 Other liabilities 1,166 508 Total $ 7,097 $ 14,815

Note 11 - Other Liabilities (Ta

Note 11 - Other Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Other Noncurrent Liabilities [Table Text Block]	(In thousands) March 31, December 31, Deferred grants $ 10,275 $ 9,604 Unrecognized tax benefits 3,522 3,061 Deferred leasehold incentive 1,656 1,715 Other liabilities 1,498 1,363 Total $ 16,951 $ 15,743

Note 12 - Commitments and Con35

Note 12 - Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	(In thousands) March 31, 2016 $ 1,299 2017 976 2018 1,258 2019 1,029 2020 969 Total minimum lease payments $ 5,531

Note 13 - Related Party Trans36

Note 13 - Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2016
Agreements with R-Tech [Member]
Notes Tables
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	(In thousands) March 31, Deferred revenue, current $ 138 Deferred revenue, non-current 4,240 $ 4,378
Schedule of Related Party Transactions [Table Text Block]	(In thousands) Three Months Ended March 31, Clinical supplies $ 31 Other research and development services 5 Commercial supplies 6,142 $ 6,178

Note 16 - Collaboration and L37

Note 16 - Collaboration and License Agreements (Tables)	3 Months Ended
	Mar. 31, 2016
Mylan [Member]
Notes Tables
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	(In thousands) Amount Deferred at December 31, Cash Received for the Three Months Ended March 31, Revenue Recognized for the Three Months Ended March 31, Change in Accounts Receivable for the Three Months Ended March 31, Foreign Currency Effects for the Three Months Ended March 31, Amount Deferred at March 31, Product sales revenue $ - $ 14,881 $ 14,460 $ 1,277 $ (1,698 ) $ - Collaboration revenue: Up-front payment associated with the Company's obligation to participate in joint committees $ 416 $ - $ 9 $ - $ 30 $ 437
Takeda [Member]
Notes Tables
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	(In thousands) Amount Cash Received Revenue Change in Foreign Currency Amount Product royalty revenue $ - $ 22,792 $ 16,500 $ (6,292 ) $ - $ - Product sales revenue $ - $ 13,391 $ 8,974 $ (3,939 ) $ (478 ) $ - Research and development revenue: Reimbursement of research and development expenses $ - $ 3,309 $ 3,429 $ 120 $ - $ - Collaboration revenue: Up-front payment associated with the Company's obligation to participate in joint committees $ 736 $ - $ 37 $ - $ - $ 699

Note 17 - Stock Option Plans (T

Note 17 - Stock Option Plans (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding, December 31, 2015 37,400 $ 10.00 Options exercised (20,400 ) 10.00 Options outstanding, March 31, 2016 17,000 10.00 0.09 $ 15,810 Options exercisable, March 31, 2016 17,000 10.00 0.09 $ 15,810 Options vested and expected to vest, March 31, 2016 17,000 10.00 0.09 $ 15,810 Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding, December 31, 2015 4,440,608 $ 9.37 Options granted 1,224,450 13.69 Options exercised (104,483 ) 6.10 Options forfeited (28,209 ) 14.29 Options expired (12,025 ) 15.86 Options outstanding, March 31, 2016 5,520,341 10.35 8.36 $ 11,809,367 Options exercisable, March 31, 2016 2,100,317 8.05 6.95 $ 7,503,522 Options vested and expected to vest, March 31, 2016 4,356,237 9.95 8.14 $ 10,352,390
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	(In thousands) Foreign currency translation adjustments Unrealized income (loss) on investments, net of tax effect Unrealized income (loss) on pension benefit obligation Accumulated other comprehensive income (loss) Balance January 1, 2016 $ 14,243 $ 42 $ (873 ) $ 13,412 Other comprehensive income before reclassifications 15,555 - (8 ) 15,547 Amounts reclassified from accumulated other comprehensive loss - - - - Balance March 31, 2016 $ 29,798 $ 42 $ (881 ) $ 28,959 Balance January 1, 2015 $ 15,208 $ 35 $ (978 ) $ 14,265 Other comprehensive income before reclassifications 175 (6 ) (7 ) 162 Amounts reclassified from accumulated other comprehensive loss - - - - Balance March 31, 2015 $ 15,383 $ 29 $ (985 ) $ 14,427

Note 1 - Business Organizatio39

Note 1 - Business Organization and Basis of Presentation (Details Textual) - USD ($)	1 Months Ended		2 Months Ended	3 Months Ended
	Jun. 30, 2015	May. 31, 2015	Jun. 30, 2015	Mar. 31, 2016
Gloria [Member] | First Tranche [Member] | China Gloria Agreement [Member]
Collaboration Revenue from Upfront Payment		$ 1,000,000
Gloria [Member] | Second Tranche [Member] | China Gloria Agreement [Member]
Collaboration Revenue from Upfront Payment	$ 500,000
Gloria [Member] | China Gloria Agreement [Member]
Collaboration Revenue from Upfront Payment			$ 1,500,000	$ 1,500,000
Takeda [Member] | Lubiprostone Alternate Formulation [Member]
Additional Reformulation Costs Funded, Percentage				100.00%
Takeda [Member] | Lubiprostone for Pediatric Functional Constipation [Member]
Additional Reformulation Costs Funded, Percentage				70.00%

Note 2 - Summary of Significa40

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Credit Facility [Member] | Term Loans [Member]
Debt Instrument, Covenant, Restricted Cash Account, Balance	$ 25
Subordinated Unsecured Promissory Notes [Member] | R-Tech [Member] | Kuno and Ueno Trust [Member]
Debt Instrument, Covenant, Restricted Cash Account, Balance			$ 17.7
R-Tech [Member] | Non-tendering R-tech Shareholders [Member]
Debt Instrument, Covenant, Restricted Cash Account, Balance			$ 8.2
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Takeda [Member]
Concentration Risk, Percentage	61.50%	61.80%
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Mylan [Member]
Concentration Risk, Percentage	30.60%	37.80%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Takeda [Member]
Concentration Risk, Percentage	76.10%		78.10%
Cash, FDIC Insured Amount	$ 2.4		$ 5.9
Percentage of Deposit within Federally Insured Limits	1.50%		3.60%

Note 3 - Net Income (Loss) per

Note 3 - Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic net income (loss) per share:
Net income (loss)	$ (4,057)	$ 6,408
Basic (in shares)	42,539	44,366
Basic net income (loss) per share (in dollars per share)	$ (0.10)	$ 0.14
Diluted net income (loss) per share:
Net income (loss)	$ (4,057)	$ 6,408
Basic (in shares)	42,539	44,366
Assumed exercise of stock options under the treasury stock method (in shares)		1,546
(in shares)	42,539	45,912
Diluted net income (loss) per share (in dollars per share)	$ (0.10)	$ 0.14

Note 3 - Potentially Dilutive S

Note 3 - Potentially Dilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Stock Option [Member]
Assumed exercise of stock options under the treasury stock method (in shares)	5,537	957
Assumed exercise of stock options under the treasury stock method (in shares)		1,546

Note 4 - Acquisition of R-Tec43

Note 4 - Acquisition of R-Tech (Details Textual) - R-Tech [Member] - JPY (¥) ¥ in Millions	Dec. 08, 2015	Oct. 20, 2015
Business Acquisition, Percentage of Voting Interests Acquired	2.00%	98.00%
Business Combination, Consideration Transferred	¥ 275

Note 4 - Acquisition Pro Forma

Note 4 - Acquisition Pro Forma Information (Details) - R-Tech [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Pro forma revenue	$ 47,208	$ 42,916
Pro forma net loss	$ (4,057)	$ (2,346)

Note 5 - Segment Information (D

Note 5 - Segment Information (Details Textual)	3 Months Ended
	Mar. 31, 2016
Number of Operating Segments	1

Note 5 - Revenues by Product Ca

Note 5 - Revenues by Product Catergory (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Product - Amitiza [Member]
Sales Revenue, Goods, Net	$ 23,434	$ 11,151
Product - Rescula [Member]
Sales Revenue, Goods, Net	3,161	(6)
Product royalty revenue	16,716	15,745
Sales Revenue, Goods, Net	26,595	11,145
Research and development revenue	3,430	2,345
Contract and collaboration revenue	467	245
Total	$ 47,208	$ 29,480

Note 5 - Revenues by Geographic

Note 5 - Revenues by Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
UNITED STATES
Total	$ 28,939	$ 18,225
JAPAN
Total	17,848	11,157
Rest of the World [Member]
Total	421	98
Total	$ 47,208	$ 29,480

Note 5 - Long-lived Assets by G

Note 5 - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
UNITED STATES
Long-lived assets	$ 3,238	$ 3,105
JAPAN
Long-lived assets	3,657	3,232
Rest of the World [Member]
Long-lived assets	49	56
Long-lived assets	$ 6,944	$ 6,393

Note 6 - Fair Value Measureme49

Note 6 - Fair Value Measurements (Details Textual) $ in Millions	Mar. 31, 2016USD ($)
Fair Value, Inputs, Level 3 [Member] | CPP [Member]
Notes Receivable, Fair Value Disclosure	$ 5

Note 7 - Restructuring (Details

Note 7 - Restructuring (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Restructuring Charges	$ 183,000
Restructuring Reserve	94,000	$ 851,000
Restructuring and Related Cost, Cost Incurred to Date	$ 1,000,000

Note 7 - Cash Components of Res

Note 7 - Cash Components of Restructuring Costs (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
One-time Termination Benefits [Member]
Balance	$ 851,000
Restructuring Charges	183,000
Amounts paid	(940,000)
Balance	94,000
Facility Closing [Member]
Balance	0
Restructuring Charges	0
Amounts paid	0
Balance	0
Contract Termination [Member]
Balance	0
Restructuring Charges	0
Amounts paid	0
Balance	0
Balance	851,000
Restructuring Charges	183,000
Amounts paid	(940,000)
Balance	$ 94,000

Note 8 - Inventory (Details Tex

Note 8 - Inventory (Details Textual) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015	Oct. 20, 2015
R-Tech [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	$ 6.1	$ 14.3	$ 37.6

Note 8 - Inventory Components (

Note 8 - Inventory Components (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Raw materials	$ 1,696	$ 5,554
Work in process	21,674	26,926
Finished goods	1,067	641
Total	$ 24,437	$ 33,121

Note 9 - Intangible Assets by M

Note 9 - Intangible Assets by Major Class (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Patent and License Rights [Member]
Amortized intangible assets
Amortized intangible assets, weighted average life	5 years 270 days	6 years
Amortized intangible assets, carrying amount	$ 10,513,000	$ 10,513,000
Manufacturing Know How [Member]
Amortized intangible assets
Amortized intangible assets, weighted average life	6 years 60 days	6 years 120 days
Amortized intangible assets, carrying amount	$ 134,600,000	$ 134,600,000
Accumulated amortization	(14,375,000)	(8,463,000)
Impairment losses	(5,651,000)	(5,651,000)
Intangibles, Foreign currency translation adjustment	8,512,000	(684,000)
Total amortized intangible assets	133,599,000	130,315,000
Unamortized intangible assets
In-process research and development	6,614,000	6,171,000
Goodwill	65,787,000	60,937,000
Total unamortized intangible assets	72,401,000	67,108,000
Total intangible assets	$ 206,000,000	$ 197,423,000

Note 9 - Changes in Intangible

Note 9 - Changes in Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Intangible Assets [Member]
Intangibles, Balance	$ 130,315
Intangibles, Additions
Intangibles, Amortization	$ (5,906)
Intangibles, Foreign currency translation adjustment	9,190
Intangibles, Balance	133,599	$ 130,315
In Process Research and Development [Member]
Intangibles, Balance	$ 6,171
Intangibles, Additions
Intangibles, Foreign currency translation adjustment	$ 443
Intangibles, Balance	6,614	6,171
Goodwill, Balance	60,937
Goodwill, Additions	467
Intangibles, Foreign currency translation adjustment	8,512	(684)
Goodwill, Foreign currency translation adjustment	4,383
Goodwill, Balance	$ 65,787	$ 60,937

Note 10 - Summary of Accrued Ex

Note 10 - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Research and development costs	$ 5,266	$ 3,843
Accrued interest	4,812	70
Employee compensation	1,671	4,860
Restructuring	95	851
Legal service fees	421	428
Other accrued expenses	1,424	834
Total	13,689	10,886
Indirect taxes payable	4,582	5,963
Squeeze out liability for non-tendering R-Tech shareholders	468	7,668
Deferred revenue	881	676
Other liabilities	1,166	508
Total	$ 7,097	$ 14,815

Note 11 - Other Liabilities (De

Note 11 - Other Liabilities (Details Textual) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
JAPAN
Deferred Grants, Noncurrrent	$ 10,000,000
Montgomery County, Maryland [Member]
Deferred Grants, Noncurrrent	300,000
Deferred Grants, Noncurrrent	$ 10,275,000	$ 9,604,000

Note 11 - Other Liabilities Sum

Note 11 - Other Liabilities Summary (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Deferred Grants, Noncurrrent	$ 10,275	$ 9,604
Unrecognized tax benefits	3,522	3,061
Deferred leasehold incentive	1,656	1,715
Other liabilities	1,498	1,363
Total	$ 16,951	$ 15,743

Note 12 - Commitments and Con59

Note 12 - Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Guarantee of Indebtedness of Others [Member] | Maximum [Member]
Loss Contingency, Estimate of Possible Loss	$ 2,300,000
Guarantee of Indebtedness of Others [Member]
Loss Contingency, Estimate of Possible Loss	1,600,000		$ 1,500,000
Guaranty Liabilities	208,000
Operating Leases, Rent Expense	$ 645,000	$ 333,000

Note 12 - Future Minimum, Non-C

Note 12 - Future Minimum, Non-Cancelable Lease Payments (Details) $ in Thousands	Mar. 31, 2016USD ($)
2,016	$ 1,299
2,017	976
2,018	1,258
2,019	1,029
2,020	969
Total minimum lease payments	$ 5,531

Note 13 - Related Party Trans61

Note 13 - Related Party Transactions (Details Textual) SFr in Millions	Jan. 01, 2015	Mar. 31, 2015USD ($)	Dec. 31, 2010USD ($)	Oct. 20, 2015USD ($)	Mar. 31, 2016CHF (SFr)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Mar. 31, 2013CHF (SFr)	Sep. 30, 2011USD ($)
R-Tech [Member]
Related Party Transaction, Other Revenues from Transactions with Related Party		$ 138,000
Kuno Trust [Member] | SAG [Member] | Subordinated Unsecured Promissory Notes [Member]
Debt Instrument, Face Amount			$ 25,900,000
Numab [Member] | Zurcher Kantonalbank [Member]
Loans Pledged as Collateral								SFr 2.2	$ 5,000,000
Numab [Member] | Financial Guarantee [Member]
Restricted Cash and Cash Equivalents | SFr					SFr 2.2
Guaranty Liabilities						$ 208,000	$ 202,000
Numab [Member]
Loans Pledged as Collateral							$ 2,300,000
Long-term Debt, Gross					SFr 1.5	$ 1,600,000
Ueno Trust [Member] | SAG [Member] | Subordinated Unsecured Promissory Notes [Member]
Debt Instrument, Face Amount			$ 25,900,000
Kuno and Ueno Trust [Member] | SAG [Member] | Subordinated Unsecured Promissory Notes [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	4.70%		4.00%
Kuno and Ueno Trust [Member] | SAG [Member] | Subordinated Unsecured Promissory Notes [Member]
Debt Instrument, Face Amount			$ 51,900,000
Related Party Transaction, Amounts of Transaction				$ 9,000,000

Note 13 - Expenses Under Agreem

Note 13 - Expenses Under Agreements With R-Tech (Details) - R-Tech [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2015USD ($)
Clinical Supplies [Member]
Expenses related to R-Tech	$ 31
Other Research and Development Services [Member]
Expenses related to R-Tech	5
Commercial Supplies [Member]
Expenses related to R-Tech	6,142
Expenses related to R-Tech	$ 6,178

Note 13 - Deferred Revenues Und

Note 13 - Deferred Revenues Under the Company's Agreements With R-Tech (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
R-Tech [Member]
Deferred revenue			$ 138,000
Deferred revenue, non-current			4,240,000
			$ 4,378,000
Deferred revenue	$ 881,000	$ 676,000
Deferred revenue, non-current	$ 941,000	$ 1,088,000

Note 14 - Credit Facility and64

Note 14 - Credit Facility and Notes Payable (Details Textual) - Jeffries Financing LLC [Member] - Term Loans [Member]	Oct. 16, 2015	Mar. 31, 2016
Adjusted Eurodollar [Member]
Debt Instrument, Basis Spread on Variable Rate	7.25%
Debt Instrument, Interest Rate During Period	6.25%	8.39%

Note 15 - Collaboration Oblig65

Note 15 - Collaboration Obligation (Details Textual) - Global License Agreement [Member] - Takeda [Member] - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Up-front Payment Arrangement [Member]
Deferred Revenue			$ 14
Development Expenses to Be Assumed			$ 6
Developmental Expense Reimbursement Obligation	$ 5.2	$ 5.6

Note 16 - Collaboration and L66

Note 16 - Collaboration and License Agreements (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Gloria [Member] | China Gloria Agreement [Member]
Sales Revenue, Goods, Net	$ 0
Santen [Member] | Japan Santen Agreement [Member] | RESCULA [Member]
Sales Revenue, Goods, Net	3,400,000	$ 0
Mylan [Member] | Japan Mylan Agreement [Member]
Sales Revenue, Goods, Net	14,500,000	11,100,000
Sales Revenue, Goods, Net	$ 26,595,000	$ 11,145,000

Note 16 - Cash Streams and Rela

Note 16 - Cash Streams and Related Revenue Recognized or Deferred Under the North American Takeda Agreement (Details) - Takeda [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Product Royalty Revenue [Member]
Deferred Revenue
Cash Received	$ 22,792
Revenue Recognized	16,500
Accounts Receivable	$ (6,292)
Foreign Currency Effects
Product Sales Revenue [Member]
Deferred Revenue
Cash Received	$ 13,391
Revenue Recognized	8,974
Accounts Receivable	(3,939)
Foreign Currency Effects	$ (478)
Research and Development Revenue [Member] | Reimbursement of Research and Development Expenses [Member]
Deferred Revenue
Cash Received	$ 3,309
Revenue Recognized	3,429
Accounts Receivable	$ 120
Foreign Currency Effects
Collaboration Revenue [Member] | Up-front Payment Arrangement [Member]
Deferred Revenue	$ 699	$ 736
Cash Received
Revenue Recognized	$ 37
Accounts Receivable
Foreign Currency Effects

Note 16 - Cash Streams and Re68

Note 16 - Cash Streams and Related Revenue Recognized or Deferred Under the Japan Mylan Agreement (Details) - Mylan [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Product Sales Revenue [Member]
Deferred Revenue
Cash Received	$ 14,881
Revenue Recognized	14,460
Accounts Receivable	1,277
Foreign Currency Effects	(1,698)
Collaboration Revenue [Member] | Up-front Payment Arrangement [Member]
Deferred Revenue	$ 437	$ 416
Cash Received
Revenue Recognized	$ 9
Accounts Receivable
Foreign Currency Effects	$ 30

Note 17 - Stock Option Plans (D

Note 17 - Stock Option Plans (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Stock Incentive Plan 2006 [Member] | Common Class A [Member]
Stock Issued During Period, Value, Employee Stock Purchase Plan	$ 58,391	$ 11,483
Stock Issued During Period, Shares, Employee Stock Purchase Plans	6,285	950
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 13.69		$ 15.18
Stock Issued During Period, Value, Employee Stock Purchase Plan	$ 58,000

Note 17 - Stock Option Activity

Note 17 - Stock Option Activity (Details)	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
Non Employee Stock Plan 2001 [Member]
Options outstanding (in shares) | shares	37,400
Options Outstanding, Weighted Average Exercise Price Per Share (in dollars per share)	$ 10
Options exercised (in shares) | shares	(20,400)
Options Exercised, Weighted Average Exercise Price Per Share (in dollars per share)	$ 10
Options outstanding (in shares) | shares	17,000
Options Outstanding, Weighted Average Exercise Price Per Share (in dollars per share)	$ 10
Options outstanding	32 days
Options outstanding | $	$ 15,810
Options exercisable, March 31, 2016 (in shares) | shares	17,000
Options Exercisable, Weighted Average Exercise Price Per Share (in dollars per share)	$ 10
Options exercisable	32 days
Options exercisable, March 31, 2016 | $	$ 15,810
Options vested and expected to vest, March 31, 2016 (in shares) | shares	17,000
Options vested and expected to vest, March 31, 2016 (in dollars per share)	$ 10
Options vested and expected to vest, March 31, 2016	32 days
Options vested and expected to vest, March 31, 2016 | $	$ 15,810
Options exercised (in dollars per share)	$ 10
Stock Incentive Plan 2006 [Member]
Options outstanding (in shares) | shares	4,440,608
Options Outstanding, Weighted Average Exercise Price Per Share (in dollars per share)	$ 9.37
Options exercised (in shares) | shares	(104,483)
Options Exercised, Weighted Average Exercise Price Per Share (in dollars per share)	$ 6.10
Options outstanding (in shares) | shares	5,520,341
Options Outstanding, Weighted Average Exercise Price Per Share (in dollars per share)	$ 10.35
Options outstanding	8 years 131 days
Options outstanding | $	$ 11,809,367
Options exercisable, March 31, 2016 (in shares) | shares	2,100,317
Options Exercisable, Weighted Average Exercise Price Per Share (in dollars per share)	$ 8.05
Options exercisable	6 years 346 days
Options exercisable, March 31, 2016 | $	$ 7,503,522
Options vested and expected to vest, March 31, 2016 (in shares) | shares	4,356,237
Options vested and expected to vest, March 31, 2016 (in dollars per share)	$ 9.95
Options vested and expected to vest, March 31, 2016	8 years 51 days
Options vested and expected to vest, March 31, 2016 | $	$ 10,352,390
Options granted (in shares) | shares	1,224,450
Options granted (in dollars per share)	$ 13.69
Options exercised (in dollars per share)	$ 6.10
Options forfeited (in shares) | shares	(28,209)
Options forfeited (in dollars per share)	$ 14.29
Options expired (in shares) | shares	(12,025)
Options expired (in dollars per share)	$ 15.86

Note 17 - Changes in Accumulate

Note 17 - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	$ 14,243	$ 15,208
Other comprehensive income before reclassifications	$ 15,555	$ 175
Amounts reclassified from accumulated other comprehensive loss
Balance	$ 29,798	$ 15,383
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Balance	$ 42	35
Other comprehensive income before reclassifications		$ (6)
Amounts reclassified from accumulated other comprehensive loss
Balance	$ 42	$ 29
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member]
Balance	(873)	(978)
Other comprehensive income before reclassifications	$ (8)	$ (7)
Amounts reclassified from accumulated other comprehensive loss
Balance	$ (881)	$ (985)
Balance	13,412	14,265
Other comprehensive income before reclassifications	$ 15,547	$ 162
Amounts reclassified from accumulated other comprehensive loss
Balance	$ 28,959	$ 14,427

Note 18 - Income Taxes (Details

Note 18 - Income Taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Minimum [Member]
Effective Income Tax Rate Reconciliation, Percent	0.00%
Maximum [Member]
Effective Income Tax Rate Reconciliation, Percent	40.00%
Earliest Tax Year [Member] | Domestic Tax Authority [Member]
Income Tax Examination, Year under Examination	2,009
Earliest Tax Year [Member]
Income Tax Examination, Year under Examination	2,015
Latest Tax Year [Member] | Domestic Tax Authority [Member]
Income Tax Examination, Year under Examination	2,011
Latest Tax Year [Member]
Income Tax Examination, Year under Examination	2,011
Effective Income Tax Rate Reconciliation, Percent	42.80%	30.50%
Unrecognized Tax Benefits	$ 3.5
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 2.2

Note 19 - Investments (Details

Note 19 - Investments (Details Textual)	Jan. 09, 2016USD ($)	Jan. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)
CPP [Member] | Scenario, Forecast [Member]
Payment of Option Fee			$ 4,500,000
CPP [Member] | Fair Value, Inputs, Level 3 [Member]
Notes Receivable, Fair Value Disclosure				$ 5,000,000
CPP [Member]
Collaboration Agreement, Amount of Investment	$ 5,000,000
Collaboration Agreement, Amount of Equity Investment	5,000,000
Option Fee, Maximum	$ 7,500,000
Number of Tranches	2
Payment of Option Fee		$ 3,000,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount				5,000,000
Assets					$ 1,800,000
Liabilities					12,500,000
Assets				448,210,000	457,181,000
Liabilities				$ 347,367,000	$ 370,732,000