Pacira BioSciences (PCRX) 10-K 25 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 18, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	Pacira Pharmaceuticals, Inc.
Entity Central Index Key	1,396,814
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,295,479,652
Entity Common Stock, Shares Outstanding		37,053,372
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 56,984	$ 37,520
Restricted cash	0	1,509
Short-term investments	101,981	119,138
Accounts receivable, net	25,855	22,366
Inventories, net	61,645	29,263
Prepaid expenses and other current assets	6,117	4,461
Total current assets	252,582	214,257
Long-term investments	13,462	24,431
Fixed assets, net	90,324	60,632
Goodwill	30,880	23,761
Intangibles, net	81	403
Other assets	2,294	2,588
Total assets	389,623	326,072
Current liabilities:
Accounts payable	8,739	6,758
Accrued expenses	35,375	28,311
Convertible senior notes	105,928	103,100
Current portion of royalty interest obligation	0	276
Income taxes payable	1,426	1,426
Taxes Payable, Current	208	139
Total current liabilities	151,676	140,010
Deferred revenue	8,082	9,508
Other liabilities	11,473	5,409
Total liabilities	$ 171,231	$ 154,927
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001; 5,000,000 shares authorized, none issued and outstanding at December 31, 2015 and 2014	$ 0	$ 0
Common stock, par value $0.001 and 250,000,000 shares authorized; 36,848,319 shares issued and outstanding at December 31, 2015; 36,150,620 shares issued and outstanding at December 31, 2014	37	36
Additional paid-in capital	526,696	481,334
Accumulated deficit	(308,289)	(310,145)
Accumulated other comprehensive loss	(52)	(80)
Total stockholders’ equity	218,392	171,145
Total liabilities and stockholders’ equity	$ 389,623	$ 326,072

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	36,848,319	36,150,620
Common stock, shares outstanding	36,848,319	36,150,620
Treasury stock at cost, shares	0	0

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Net product sales	$ 244,487	$ 193,526	$ 81,956
Collaborative licensing and milestone revenue	1,426	1,287	972
Royalty revenue	3,084	2,855	2,623
Total revenues	248,997	197,668	85,551
Operating expenses:
Cost of goods sold	71,837	77,440	54,772
Research and development	28,662	18,731	21,560
Selling, general and administrative	139,043	106,662	62,508
Total operating expenses	239,542	202,833	138,840
Income (loss) from operations	9,455	(5,165)	(53,289)
Other (expense) income:
Interest income	678	382	259
Interest expense	(7,725)	(8,278)	(7,253)
Loss on early extinguishment of debt	(52)		(3,398)
Royalty interest obligation	(71)	(323)	(623)
Other, net	(165)	(159)	(47)
Total other expense, net	(7,335)	(8,378)	(11,062)
Income (loss) before income taxes	2,120	(13,543)	(64,351)
Income tax (expense) benefit	(264)	(173)	442
Net income (loss)	$ 1,856	$ (13,716)	$ (63,909)
Net income (loss) per share:
Basic and diluted net loss per common share (in dollars per share)	$ 0.05	$ (0.39)	$ (1.93)
Earnings Per Share, Diluted	$ 0.04	$ (0.39)	$ (1.93)
Weighted average common shares outstanding:
Basic and diluted (in shares)	36,540	35,299	33,182
Weighted Average Number of Shares Outstanding, Diluted	41,301	35,299	33,182

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,856	$ (13,716)	$ (63,909)
Other comprehensive income (loss):
Net unrealized gain (loss) on investments	28	(85)	(22)
Total other comprehensive income (loss)	28	(85)	(22)
Comprehensive income (loss)	$ 1,884	$ (13,801)	$ (63,931)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Treasury Stock	Accumulated Other Comprehensive Income
Balances at Dec. 31, 2012	$ 65,855	$ 33	$ 298,317	$ (232,520)	$ (2)	$ 27
Balances (in shares) at Dec. 31, 2012		32,623,000
Increase (Decrease) in Stockholders' Equity
Exercise of stock options	3,856	$ 1	3,855
Exercise of stock options (in shares)		741,000
Cashless exercise of warrants (in shares)		271,000
Stock-based compensation	11,513		11,513
Equity component of convertible senior notes, net of issuance costs	23,956		23,956
Issuance of common stock from treasury	0		(2)		2
Issuance of common stock from treasury (in shares)		1,000
Net unrealized gain (loss) on investments	(22)					(22)
Net income (loss)	(63,909)			(63,909)
Balances at Dec. 31, 2013	41,249	$ 34	337,639	(296,429)	0	5
Balances (in shares) at Dec. 31, 2013		33,636,000
Increase (Decrease) in Stockholders' Equity
Follow-on public offering, net	110,452	$ 2	110,450
Follow-on public offering, net (in shares)		1,840,000
Exercise of stock options	7,239		7,239
Exercise of stock options (in shares)		624,000
Shares issued under employee stock purchase plan	1,184		1,184
Shares issued under employee stock purchase plan (in shares)		16,000
Cashless exercise of warrants (in shares)		35,000
Stock-based compensation	24,822		24,822
Net unrealized gain (loss) on investments	(85)					(85)
Net income (loss)	(13,716)			(13,716)
Balances at Dec. 31, 2014	171,145	$ 36	481,334	(310,145)	0	(80)
Balances (in shares) at Dec. 31, 2014		36,151,000
Increase (Decrease) in Stockholders' Equity
Exercise of stock options	10,073	$ 1	10,072
Exercise of stock options (in shares)		618,000
Shares issued under employee stock purchase plan	$ 2,093		2,093
Shares issued under employee stock purchase plan (in shares)	50,700	35,000
Stock-based compensation	$ 33,368		33,368
Issuance of common stock upon conversion of convertible senior notes	3,929		3,929
Issuance of common stock upon conversion of convertible senior notes (in shares)		44,000
Equity component of convertible senior notes, net of issuance costs	(4,100)		(4,100)
Net unrealized gain (loss) on investments	28					28
Net income (loss)	1,856			1,856
Balances at Dec. 31, 2015	$ 218,392	$ 37	$ 526,696	$ (308,289)	$ 0	$ (52)
Balances (in shares) at Dec. 31, 2015		36,848,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating activities:
Net income (loss)	$ 1,856	$ (13,716)	$ (63,909)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of fixed assets and amortization of intangibles	11,475	10,035	5,747
Amortization of unfavorable lease obligation and debt issuance costs	481	487	459
Amortization of debt discount	4,102	4,139	3,959
Loss on disposal of fixed assets	6	158	32
Loss on early extinguishment of debt	52		3,398
Stock-based compensation	33,368	24,822	11,513
Changes in operating assets and liabilities:
Restricted cash	1,509	124	(110)
Accounts receivable, net	(3,489)	(7,776)	(10,238)
Inventories	(32,382)	(13,706)	(3,480)
Prepaid expenses and other assets	(2,007)	(1,621)	(972)
Accounts payable and accrued expenses	9,941	15,349	9,622
Royalty interest obligation	(276)	(970)	(434)
Other liabilities	5,786	2,526	1,047
Deferred revenue	(1,426)	6,713	(472)
Net cash provided by (used in) operating activities	28,996	26,564	(43,838)
Investing activities:
Purchases of fixed assets	(41,270)	(22,984)	(12,172)
Purchases of investments	(189,082)	(164,303)	(114,299)
Sales of investments	217,240	80,286	85,564
Payment of contingent consideration	(7,119)	(13,433)	(2,031)
Net cash used in investing activities	(20,231)	(120,434)	(42,938)
Financing activities:
Proceeds from follow-on public offering, net	0	110,452	0
Proceeds from exercise of stock options and warrants	10,073	7,239	3,856
Proceeds from shares issued under employee stock purchase plan	2,093	1,184	0
Conversion of principal and equity component of convertible senior notes	(1,467)	0
Proceeds from convertible senior notes		0	120,000
Repayment of debt	0		(27,500)
Payment of debt issuance and financing costs	0		(7,191)
Net cash provided by financing activities	10,699	118,875	89,165
Net increase in cash and cash equivalents	19,464	25,005	2,389
Cash and cash equivalents, beginning of year	37,520	12,515	10,126
Cash and cash equivalents, end of year	56,984	37,520	12,515
Supplemental cash flow information:
Cash paid for interest, including royalty interest obligation	4,224	5,193	3,500
Cash paid for income taxes, net of refunds	195	34	0
Non-cash investing and financing activities:
Equity component of convertible senior notes	0	0	24,936
Issuance of stock from conversion of convertible senior notes	3,929	0	0
Net increase (decrease) in accrued fixed assets	$ 418	$ (1,095)	$ 622

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS Pacira Pharmaceuticals, Inc. and its subsidiaries (collectively, the “Company” or “Pacira”) is a specialty pharmaceutical company focused on the development, commercialization and manufacture of proprietary pharmaceutical products, based on its proprietary DepoFoam ® extended release drug delivery technology, for use primarily in hospitals and ambulatory surgery centers. The Company’s lead product, EXPAREL ® (bupivacaine liposome injectable suspension), which consists of bupivacaine encapsulated in DepoFoam, was approved by the United States Food and Drug Administration, or FDA, on October 28, 2011 and launched commercially in April 2012. DepoFoam is also the basis for the Company’s other FDA-approved product, DepoCyt(e), which the Company manufactures for its commercial partners. Pacira is subject to risks common to companies in similar industries and stages of development, including, but not limited to, competition from larger companies, reliance on revenue from few products, reliance on a single manufacturing site, new technological innovations, dependence on key personnel, reliance on third-party service providers and sole source suppliers, protection of proprietary technology and compliance with government regulations.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP, and in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC. The accounts of wholly owned subsidiaries are included in the consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to conform to the current presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and contingent liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, among other things, revenue recognition, impairment of long-lived assets, stock-based compensation and valuation of deferred tax assets. The Company’s critical accounting policies are those that are both most important to the Company’s consolidated financial condition and results of operations and require the most difficult, subjective or complex judgments on the part of management in their application, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Because of the uncertainty of factors surrounding the estimates or judgments used in the preparation of the consolidated financial statements, actual results could differ from these estimates. Liquidity Management believes that the Company’s existing cash and cash equivalents, short-term and long-term investments and cash flows generated from product sales will be sufficient to enable the Company to meet its planned operating expenses, capital expenditure requirements, payment of the principal on any conversions of the Company’s convertible senior notes and to service its indebtedness at least through December 31, 2016 . However, changing circumstances may cause the Company to expend cash significantly faster than currently anticipated, and the Company may need to spend more cash than currently expected because of circumstances beyond its control. See Note 8, Debt, for further discussion of the Company’s convertible senior notes and conversion elections. The Company expects to continue to incur substantial additional expenditures as it continues to commercialize EXPAREL, develops and seeks regulatory approval for its product candidates, and expands its manufacturing facilities for EXPAREL and its other product candidates including costs associated with certain technical transfer activities and construction of two dedicated manufacturing suites in the United Kingdom. Revenue Recognition The Company’s principal sources of revenue include (i) sales of EXPAREL in the United States, or U.S., (ii) sales of DepoCyt(e) in the U.S. and the European Union, or E.U., (iii) royalties based on sales by commercial partners of DepoCyt(e) and (iv) license fees and milestone payments. The Company recognizes revenue when there is persuasive evidence that an arrangement exists, title has passed, collection is reasonably assured and the price is fixed or determinable. Net Product Sales The Company sells EXPAREL through a drop-ship program under which orders are processed through wholesalers based on orders of the product placed by end users which include hospitals, ambulatory surgery centers and doctors. EXPAREL is delivered directly to the end user without the wholesaler ever taking physical possession of the product. The Company records revenue at the time the product is delivered to the end user. The Company also recognizes revenue from products manufactured and supplied to commercial partners, such as DepoCyt(e), upon shipment. Prior to the shipment of manufactured products, the Company conducts initial product release and stability testing in accordance with current Good Manufacturing Practices. Revenues from sales of products are recorded net of returns allowances, prompt payment discounts, wholesaler service fees and volume rebates and chargebacks. The calculation of some of these items requires management to make estimates based on sales data, contract terms and experience. The Company reviews the adequacy of its provisions on a quarterly basis. Returns Allowances The Company allows customers to return product that is damaged or received in error. In addition, the Company allows EXPAREL to be returned beginning six months prior to, and twelve months following product expiration. The Company estimates its sales return reserve based on return history from other hospital-based products with similar distribution models and its experience with historical return rates, which management believes is the best estimate of the anticipated product to be returned. The returns reserve is recorded at the time of sale as a reduction to gross product sales and an increase in accrued expenses. The Company’s commercial partners can return DepoCyt(e) within contractually specified timeframes if the product does not meet the applicable inspection tests. The Company estimates its returns reserve based on its experience with historical return rates. Historically, the Company’s product returns have not been material. Prompt Payment Discounts The prompt payment reserve is based upon discounts offered to wholesalers as an incentive to meet certain payment terms. The Company accrues discounts to wholesalers based on contractual terms of agreements and historical experience. The Company accounts for these discounts at the time of sale as a reduction to gross product sales and a reduction to accounts receivable. Wholesaler Service Fees The Company’s customers include major and regional wholesalers with whom the Company has contracted a fee for service based on a percentage of gross product sales. This fee for service is recorded as a reduction to gross product sales and an increase to accrued expenses at the time of sale, and is recorded based on the contracted percentage. Volume Rebates and Chargebacks Volume rebates and chargeback reserves are based upon contracted discounts and promotional offers the Company provides to certain end users such as members of group purchasing organizations. Volume rebates are recorded at the time of sale as a reduction to gross product sales and an increase in accrued expenses. Chargeback reserves are recorded at the time of sale as a reduction to gross product sales and a reduction to accounts receivable. The following table provides a summary of activity with respect to the Company’s accrued rebates and chargebacks, returns, wholesaler service fees and prompt pay discounts for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Beginning of Period Accruals Payments (Credits) End of Period Year Ended December 31, 2015 Accrued rebates and chargebacks (1) $ 321 $ 2,020 $ (1,544 ) $ 797 Accrued returns 1,559 339 (165 ) 1,733 Accrued wholesaler service fees 588 3,482 (3,325 ) 745 Subtotal 2,468 5,841 (5,034 ) 3,275 Reserves for prompt pay discounts 575 4,905 (4,855 ) 625 Total $ 3,043 $ 10,746 $ (9,889 ) $ 3,900 Year Ended December 31, 2014 Accrued rebates and chargebacks $ 402 $ 881 $ (962 ) $ 321 Accrued returns 897 829 (167 ) 1,559 Accrued wholesaler service fees 266 2,780 (2,458 ) 588 Subtotal 1,565 4,490 (3,587 ) 2,468 Reserves for prompt pay discounts 313 3,833 (3,571 ) 575 Total $ 1,878 $ 8,323 $ (7,158 ) $ 3,043 Year Ended December 31, 2013 Accrued rebates and chargebacks (1) $ 111 $ 590 $ (299 ) $ 402 Accrued returns 134 802 (39 ) 897 Accrued wholesaler service fees 68 1,078 (880 ) 266 Subtotal 313 2,470 (1,218 ) 1,565 Reserves for prompt pay discounts 80 1,559 (1,326 ) 313 Total $ 393 $ 4,029 $ (2,544 ) $ 1,878 (1) - Includes reserves for chargebacks of $0.2 million at December 31, 2015 and $0.3 million at December 31, 2013, recorded as a contra asset. There was no reserve for chargebacks at December 31, 2014. Royalty Revenue The Company recognizes revenue from royalties based on sales of its commercial partners’ net sales of DepoCyt(e). Royalties are recognized as earned in accordance with contract terms when they can be reasonably estimated and collection is reasonably assured. The Company’s commercial partners are obligated to report their net product sales and the resulting royalty due to the Company within 60 days from the end of each quarter. Based on historical product sales, royalty receipts and other relevant information, the Company accrues royalty revenue each quarter and subsequently adjusts its royalty revenue when it receives royalty reports from its commercial partners. Collaborative Licensing and Milestone Revenue The Company recognizes revenues from non-refundable up-front license fees received under collaboration agreements ratably over the performance period as determined under the agreement (estimated development period in the case of development agreements, and contract period or longest patent life in the case of supply and distribution agreements). If the estimated performance period is subsequently modified, the Company will modify the period over which the up-front license fee is recognized accordingly on a prospective basis. Upon notification of a termination of a collaboration agreement, any remaining non-refundable license fees received by the Company, which had been deferred, are recognized over the remaining contractual term. If the termination is immediate and no additional services are to be performed, the deferred revenue is generally recognized in full. All such recognized revenues are included in collaborative licensing and milestone revenue in the Company’s consolidated statements of operations. The Company recognizes revenue from milestone payments received under collaboration agreements when earned, provided that the milestone event is substantive, its achievability was not reasonably assured at the inception of the agreement, the Company has no further performance obligations relating to the event and collection is reasonably assured. If these criteria are not met, the Company recognizes milestone payments ratably over the remaining period of the Company’s performance obligations under the applicable agreements. Concentration of Major Customers The Company’s customers are national and regional wholesalers of pharmaceutical products as well as commercial, collaborative and licensing partners. The Company sells EXPAREL through a drop-ship program under which orders are processed through wholesalers (including AmerisourceBergen Health Corporation, Cardinal Health, Inc., and McKesson Drug Company), but shipments of the product are sent directly to individual accounts, such as hospitals, ambulatory surgery centers and individual doctors. The table below includes the percentage of revenue comprised by the three largest customers (i.e., wholesalers or commercial partners) in each year presented: Year Ended December 31, 2015 2014 2013 Largest customer 33 % 33 % 33 % Second largest customer 29 % 29 % 28 % Third largest customer 28 % 24 % 18 % 90 % 86 % 79 % Revenues from customers outside the U.S. accounted for 2% , 2% and 5% of the Company’s revenue for the years ended December 31, 2015 , 2014 and 2013 , respectively. Research and Development Expenses Research and development expenses consist of costs associated with products being developed internally, and include related personnel expenses, laboratory supplies, active pharmaceutical ingredients, manufacturing supplies, facilities costs, preclinical and clinical trial costs and other outside service fees. The Company expenses research and development costs as incurred. A significant portion of the development activities are outsourced to third parties, including contract research organizations. In such cases, the Company may be required to estimate related service fees to be accrued. Cash and Cash Equivalents All highly-liquid investments with maturities of 90 days or less when purchased are considered cash equivalents. Restricted Cash As further discussed in Note 8, Debt , the Company had entered into a financing agreement with Paul Capital Advisors LLC, or Paul Capital, for the sale of a royalty interest in its DepoCyt(e) and DepoDur ® product revenue and royalties. The royalty interest agreement pertained only to DepoCyt(e) and the Company’s previously-marketed product, DepoDur, and does not include revenue related to EXPAREL or any other product candidates. As part of this financing agreement, the Company and Paul Capital maintained a lockbox, where all DepoCyt(e) and DepoDur product revenue and royalties were received. The Company had no minimum payment obligations under this agreement. Commencing on April 1 of every year, the first $2.5 million received in the lockbox was restricted and was used to make quarterly payments due to Paul Capital, if any, under the agreement during the subsequent 12 month period. On March 31 of the subsequent year, the balance of cash in the lockbox, if any, was remitted to the Company. The Paul Capital financing agreement terminated on December 31, 2014 and the final payment was made in March 2015. Short-Term and Long-Term Investments Short-term investments consist of asset-backed securities collateralized by credit card receivables, investment grade commercial paper and corporate bonds with initial maturities of greater than three months at the date of purchase, but less than one year. Long-term investments consist of corporate bonds with initial maturities greater than one year at the date of purchase. The Company determines the appropriate classification of its investments at the time of purchase and reevaluates such determination at each balance sheet date. The Company’s investment policy sets minimum credit quality criteria and maximum maturity limits on its investments to provide for preservation of capital, liquidity and a reasonable rate of return. Available-for-sale securities are recorded at fair value, based on current market valuations. Unrealized holding gains and losses on available-for-sale securities are excluded from net loss and are reported as a separate component of accumulated other comprehensive income (loss) until realized. Realized gains and losses are included in non-operating other income (expense) on the consolidated statements of operations and are derived using the specific identification method for determining the cost of the securities sold. Inventories Inventories consist of finished goods held for sale and distribution, raw materials and work in process. Inventories are stated at the lower of cost, which includes amounts related to material, labor and overhead, or market (net realizable) value and is determined using the first-in, first-out (“FIFO”) method. The Company periodically reviews its inventory to identify obsolete, slow-moving, or otherwise unsalable inventories, and establishes allowances for situations in which the cost of the inventory is not expected to be recovered. Fixed Assets Fixed assets are recorded at cost, net of accumulated depreciation and amortization. The Company reviews its property, plant and equipment assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation of fixed assets is provided over their estimated useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the related remaining lease terms. Useful lives by asset category are as follows: Asset Category Useful Lives Computer equipment and software 1 to 3 years Office furniture and equipment 5 years Manufacturing and laboratory equipment 5 to 10 years Asset Retirement Obligations The Company has contractual obligations stemming from certain of its lease agreements to return leased space to its original condition upon termination of the lease agreement. The Company records an asset retirement obligation, or ARO, liability along with a corresponding capital asset in an amount equal to the estimated fair value of the ARO. In subsequent periods, the Company records interest expense to accrete the ARO liability to full value. Each ARO capital asset is depreciated over the depreciable term of the associated asset. Goodwill and Intangible Assets Intangible assets are recorded at cost, net of accumulated amortization. Amortization of intangible assets is provided over their estimated useful lives on a straight-line basis. The Company evaluates the recoverability of intangible assets periodically and takes into account events and circumstances which may indicate that impairment exists. Goodwill represents the excess of purchase price over fair value acquired in a business combination and is not amortized, but subject to impairment at least annually or when a triggering event occurs that could indicate a potential impairment. Impairment of Long-Lived Assets Management reviews long-lived assets, including fixed assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Convertible Debt Transactions The Company separately accounts for the liability and equity components of convertible debt instruments by allocating the proceeds from the issuance between the liability component and the embedded conversion option, or equity component. This is done in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the initial proceeds from the convertible debt issuance and the fair value of the liability component is recorded as the carrying amount of the equity component. The Company recognizes the amortization of the resulting discount as part of interest expense in its consolidated statements of operations. Upon settlement of the convertible senior notes, the liability component is measured at fair value. The Company allocates a portion of the fair value of the total settlement consideration transferred to the extinguishment of the liability component equal to the fair value of that component immediately prior to the settlement. Any difference between the consideration attributed to the liability component and the net carrying amount of the liability component, including any unamortized debt issuance costs, is recognized as a gain or loss in the consolidated statements of operations. Any remaining consideration is allocated to the reacquisition of the equity component and is recognized as a reduction of additional paid-in capital. Foreign Currencies The Company receives payment from certain commercial partners relating to accounts receivable and royalties on DepoCyte ® in Euros. Gains and losses from foreign currency transactions are reflected in the consolidated statements of operations and were not significant in any period. All foreign currency receivables and payables are measured at the applicable exchange rate at the end of the reporting period. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to basis differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. As of December 31, 2015 and 2014 , all deferred tax assets were fully offset by a valuation allowance. In February 2013, the Company received $0.4 million from the sale of unused net operating losses through the State of New Jersey’s Economic Development Authority Technology Business Tax Certificate Transfer Program. As a result, the Company recorded an income tax benefit by reversing the valuation allowance for the related net deferred tax assets. The Company continues to maintain a full valuation allowance on its remaining net deferred tax assets because there is significant doubt regarding the Company’s ability to utilize such net deferred tax assets. The Company accrues interest and penalties, if any, on underpayment of income taxes related to unrecognized tax benefits as a component of income tax expense in its consolidated statements of operations. Per Share Data Basic net income (loss) per common share is computed by dividing net income (loss) available (attributable) to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is calculated by dividing net income (loss) available (attributable) to common stockholders as adjusted for the effect of dilutive securities, if any, by the weighted average number of common stock and dilutive common stock outstanding during the period. Potential common shares include the shares of common stock issuable upon the exercise of outstanding stock options, warrants and the purchase of shares from the employee stock purchase plan (using the treasury stock method) as well as the conversion of the excess conversion value on the Company’s convertible senior notes. Potential common shares in the diluted net loss per share computation are excluded to the extent that they would be anti-dilutive. For periods where the Company reported a net loss, no potentially dilutive securities were included in the computation of diluted net loss per share. Stock-Based Compensation The Company’s stock-based compensation program includes grants of stock options and restricted stock units to employees, consultants, and non-employee directors in addition to the opportunity for employees to participate in an employee stock purchase plan. The expense associated with these programs is recognized in the Company’s consolidated statements of operations based on their fair values as they are earned under the applicable vesting terms or the length of an offering period. The valuation of stock options is an inherently subjective process, since market values are generally not available for long-term, non-transferable stock options. Accordingly, the Company uses an option pricing model to derive an estimated fair value. In calculating the estimated fair value of stock options granted, the Company uses the Black-Scholes option valuation model, or Black-Scholes model, which requires the consideration of the following variables for purposes of estimating fair value: • Expected term of the option • Expected volatility • Expected dividends • Risk-free interest rate Since its initial public offering, the Company utilizes its available historic volatility data combined with a publicly traded peer group’s historic volatility to determine expected volatility over the expected option term. In 2015 , the Company used an expected term based on a weighted average combination of its historical data from stock option exercises and the simplified method. In prior years the Company utilized the “simplified” method for “plain vanilla” options to estimate the expected term of stock option grants. Under that approach, the weighted average expected life was presumed to be the average of the vesting term and the contractual term of the option. The risk-free interest rate is based on the implied yield on United States Department of the Treasury zero coupon bonds for periods commensurate with the expected term of the options. The dividend yield on the Company’s common stock is estimated to be zero as the Company has not paid any dividends since inception, nor does it have any intention to do so in the foreseeable future. The Company estimates the level of award forfeitures expected to occur based on its historical data and records compensation cost only for those awards that are ultimately expected to vest. Segment Reporting The Company operates in one reportable segment and, accordingly, no segment disclosures have been presented.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	12 Months Ended
	Dec. 31, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers , which requires that an entity recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to its customers. In order to achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued Accounting Standards Update 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date . This latest standard defers the effective date of revenue standard ASU 2014-09 by one year and permits early adoption on a limited basis. This update will replace existing revenue recognition guidance under GAAP when it becomes effective for the Company beginning January 1, 2018, with early adoption permitted in the first quarter of 2017. The updated standard will permit the use of either the retrospective or cumulative effect transition method. The Company is continuing to evaluate the impact of these updates on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The adoption of ASU 2015-03 is not expected to have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . The standard requires entities to measure most inventory “at the lower of cost and net realizable value,” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable value). The standard is effective for the Company prospectively beginning January 1, 2017. The adoption of ASU 2015-11 is not expected to have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . The standard eliminates the current requirement for an entity to separate deferred income tax liabilities and assets into current and non-current amounts in a classified balance sheet. Instead, this guidance requires deferred tax liabilities, deferred tax assets and valuation allowances be classified as non-current in a classified balance sheet. This ASU is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted. Additionally, this guidance may be applied either prospectively or retrospectively to all periods presented. The Company is evaluating the impact of ASU 2015-17 on its consolidated financial statements. Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or not significant to the consolidated financial statements of the Company.

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The components of inventories are as follows (in thousands): December 31, 2015 2014 Raw materials $ 16,712 $ 9,263 Work-in-process 12,152 8,617 Finished goods 32,781 11,383 Total $ 61,645 $ 29,263

FIXED ASSETS

FIXED ASSETS	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
FIXED ASSETS	FIXED ASSETS Fixed assets, net summarized by major category, consist of the following (in thousands): December 31, 2015 2014 Machinery and laboratory equipment $ 29,864 $ 29,697 Leasehold improvements 30,834 26,350 Computer equipment and software 4,007 3,754 Office furniture and equipment 1,439 1,001 Construction in progress 49,097 19,944 Total 115,241 80,746 Less: accumulated depreciation (24,917 ) (20,114 ) Fixed assets, net $ 90,324 $ 60,632 Depreciation expense for the years ended December 31, 2015 , 2014 and 2013 was $11.2 million , $9.3 million and $3.7 million , respectively. During the years ended December 31, 2015 , 2014 and 2013 , the Company capitalized interest of $0.8 million , $0.4 million and $1.1 million , respectively. Included in total fixed assets, net, is $25.9 million of leasehold improvements and manufacturing process equipment located in Swindon, England. As of December 31, 2015 , the Company has recorded an ARO of $0.6 million , included in other liabilities on its consolidated balance sheet, for costs associated with returning leased space to its original condition upon the termination of certain lease agreements.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS In March 2007, the Company acquired from SkyePharma Holding, Inc., or Skyepharma, its California operating subsidiary, or Pacira California, referred to herein as the Acquisition. The Company’s goodwill arose in April 2012 from a contingent milestone payment to Skyepharma in connection with the Acquisition. The Acquisition was accounted for under Statement of Financial Accounting Standards 141, Accounting for Business Combinations , which was the effective GAAP at the Acquisition date. In connection with the Acquisition, the Company agreed to certain earn-out payments based on a percentage of net sales of EXPAREL collected and certain other yet-to-be-developed products as well as milestone payments for EXPAREL as follows: (i) $10.0 million upon the first commercial sale in the United States; (ii) $4.0 million upon the first commercial sale in a major E.U. country (United Kingdom, France, Germany, Italy and Spain); (iii) $8.0 million when annual net sales collected reach $100.0 million ; (iv) $8.0 million when annual net sales collected reach $250.0 million ; and (v) $32.0 million when annual net sales collected reach $500.0 million . The first milestone was met in April 2012 resulting in a $10.0 million payment to Skyepharma. The Company recorded this payment net of a $2.0 million contingent consideration liability recognized at the time of the Acquisition, resulting in $8.0 million recorded as goodwill. In September 2014, the Company made an $8.0 million milestone payment to Skyepharma in connection with achieving $100.0 million of annual EXPAREL net sales collected. For purposes of meeting future milestone payments, with certain exceptions, annual net sales are measured on a rolling quarterly basis. Cumulatively through December 31, 2015 , the Company has recorded an additional $14.9 million as goodwill for earn-out payments which are based on a percentage of net sales of EXPAREL collected. Any remaining earn-out payments will also be treated as additional costs of the Acquisition and, therefore, recorded as goodwill if and when each contingency is resolved. The change in the carrying value of goodwill is summarized as follows (in thousands): Carrying Value Balance at December 31, 2013 $ 10,328 Milestone payment triggered by collections of net sales of EXPAREL 8,000 Percentage payments on collections of net sales of EXPAREL 5,433 Balance at December 31, 2014 23,761 Percentage payments on collections of net sales of EXPAREL 7,119 Balance at December 31, 2015 $ 30,880 Intangible assets, net, consist of core technology, developed technology and trademarks and trade names acquired in the Acquisition and are summarized as follows (in thousands): December 31, 2015 Gross Accumulated Intangible Estimated Amortizable intangible assets: Core technology $ 2,900 $ (2,819 ) $ 81 9 Years Developed technology 11,700 (11,700 ) — 7 Years Trademarks and trade names 400 (400 ) — 7 Years Total intangible assets $ 15,000 $ (14,919 ) $ 81 December 31, 2014 Gross Accumulated Intangible Estimated Amortizable intangible assets: Core technology $ 2,900 $ (2,497 ) $ 403 9 years Developed technology 11,700 (11,700 ) — 7 years Trademarks and trade names 400 (400 ) — 7 years Total intangible assets $ 15,000 $ (14,597 ) $ 403 Annual amortization expense for intangibles for the years ended December 31, 2015 , 2014 and 2013 was $0.3 million , $0.8 million and $2.1 million , respectively. The remaining net value of core technology of $0.1 million will be fully amortized in 2016.

ACCRUED EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
ACCRUED EXPENSES	ACCRUED EXPENSES Accrued expenses consist of the following (in thousands): December 31, 2015 2014 Compensation and benefits $ 11,944 $ 8,909 Accrued operating expenses 14,984 12,094 Accrued royalties 3,731 3,213 Accrued interest 1,605 1,625 Product returns, rebates and other fees 3,111 2,470 Total $ 35,375 $ 28,311

DEBT

DEBT	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
DEBT	DEBT The composition of the Company’s debt and financing obligations is as follows (in thousands): December 31, 2015 2014 Debt: Convertible senior notes $ 118,533 $ 120,000 Discount on debt (12,605 ) (16,900 ) Total debt, net of discount 105,928 103,100 Royalty interest obligation — 276 Total debt and financing obligations $ 105,928 $ 103,376 Convertible Senior Notes On January 23, 2013, the Company completed a private placement of $120.0 million in aggregate principal amount of 3.25% convertible senior notes due 2019, or Notes, and entered into an indenture agreement, or Indenture, with respect to the Notes. The Notes accrue interest at a fixed rate of 3.25% per year, payable semiannually in arrears on February 1 and August 1 of each year. The Notes mature on February 1, 2019. The net proceeds from the offering were $115.3 million after deducting the initial purchasers’ discounts, commissions and the offering expenses payable by the Company. The net proceeds from the Notes were used by the Company to repay the entire balance of the Company’s then existing credit facility. In connection with the early extinguishment of the credit facility, the Company prepaid the remaining principal amount of $27.5 million , a $1.7 million end of term fee, an $0.8 million early prepayment penalty and $0.2 million of accrued interest. The Company recorded a loss on early extinguishment of debt of $3.4 million, comprised of the early prepayment penalty, the remaining unamortized debt issuance costs and end of term fee. Holders may convert their Notes prior to the close of business on the business day immediately preceding August 1, 2018, only under the following circumstances: (i) during any calendar quarter, if the last reported sales price of the Company’s common stock for at least 20 trading days during the period including the last 30 consecutive trading days of the quarter (ending on the last trading day of the immediately preceding calendar quarter) is greater than 130% of the conversion price then applicable (the “Consecutive Sales Price”), on each applicable trading day; (ii) during the five business-day period after any five consecutive trading-day period (the ‘‘measurement period’’) in which the trading price (as defined in the Indenture) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; (iii) upon the occurrence of specified corporate events, including a merger or a sale of all or substantially all of the Company’s assets; or (iv) if the Company calls the Notes for redemption until the close of business on the business day immediately preceding the redemption date. On or after August 1, 2018, until the close of business on the second scheduled trading day immediately preceding February 1, 2019, holders may convert their Notes at any time, regardless of the foregoing circumstances. Upon conversion, holders will receive cash up to the principal amount of the Notes and, with respect to any excess conversion value, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s option. The initial conversion rate for the Notes was 40.2945 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $24.82 per share of the Company’s common stock. The conversion rate will be subject to adjustment for some events, but will not be adjusted for any accrued and unpaid interest. The initial conversion price of the Notes represented a premium of approximately 32.5% to the closing sale price of $18.73 per share of the Company’s common stock on The NASDAQ Global Select Market on January 16, 2013, the date that the Company priced the private offering of the Notes. During the quarter ended December 31, 2015 , the requirements with respect to the Consecutive Sales Price were met. As a result, the Notes are classified as a current obligation and will be convertible until March 31, 2016 . As of December 31, 2015 , the Notes had a market price of $3,121 per $1,000 principal amount, compared to an estimated conversion value of $3,094 . In the event of conversion, holders would forgo all future interest payments, any unpaid accrued interest and the possibility of further stock price appreciation. Upon the receipt of conversion requests, the settlement of the Notes will be paid pursuant to the terms of the Indenture, which state that the principal must be settled in cash. In the event that all of the Notes are converted, the Company would be required to repay the $118.5 million in principal value and approximately $248 million of cash or issue approximately 3.2 million shares of its common stock (or a combination of cash and shares of its common stock at the Company’s option) to settle the conversion premium as of December 31, 2015 , causing dilution to the Company’s shareholders and/or significant expenditures of the Company’s cash and liquid securities. In February 2015, the Company received notice of an election for conversion from one of the holders of the Notes. The principal amount of the conversion request was $1.5 million , which was paid in cash pursuant to the terms of the Indenture in April 2015. The Company elected to settle the conversion premium by issuing 44,287 shares of its common stock, calculated based on a daily volume-weighted adjusted price over a 40 trading-day observation period which ended on April 8, 2015. The Company realized a $0.1 million loss on the early extinguishment of the converted Notes. While the Notes are classified in the Company’s consolidated balance sheets at December 31, 2015 and 2014 as a current obligation, the future convertibility and resulting balance sheet classification of this liability will be monitored at each quarterly reporting date and will be analyzed dependent upon market prices of the Company’s common stock during the prescribed measurement periods. In the event that the holders of the Notes continue to have the election to convert the Notes at any time during the prescribed measurement period, the Notes will continue to be considered a current obligation and classified as such. Prior to August 1, 2017, in the event that none of the conversion conditions are satisfied in a given quarter, the Notes would be reclassified as a long-term liability. Prior to February 1, 2017, the Company may not redeem the Notes. On or after February 1, 2017, the Company may redeem for cash all or part of the Notes if the last reported sale price (as defined in the Indenture) of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading-day period ending within five trading days prior to the date on which the Company provides notice of redemption. The redemption price will equal the sum of (i) 100% of the principal amount of the Notes being redeemed, plus (ii) accrued and unpaid interest, including additional interest, if any, to, but excluding, the redemption date, plus (iii) a “make-whole premium” payment in cash equal to the sum of the present values of the remaining scheduled payments of interest that would have been made on the Notes to be redeemed had such Notes remained outstanding from the redemption date to the maturity date (excluding interest accrued to, but excluding, the redemption date that is otherwise paid pursuant to the preceding clause (ii)). The present values of the remaining interest payments will be computed using a discount rate equal to 2.0% . The Company must make the make-whole premium payments on all Notes called for redemption prior to the maturity date, including Notes converted after the date the Company provides the notice of redemption. No sinking fund is provided for the Notes, which means that the Company is not required to redeem or retire the Notes periodically. If the Company undergoes a fundamental change as defined in the Indenture, subject to certain conditions, holders of the Notes may require the Company to repurchase for cash all or part of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Notes are senior unsecured obligations of the Company and will rank senior in right of payment to the Company’s future indebtedness, if any, that is expressly subordinated in right of payment to the Notes and equal in right of payment to the Company’s existing and future unsecured indebtedness that is not so subordinated. The Notes are effectively junior in right of payment to any secured indebtedness of the Company to the extent of the value of the assets securing such indebtedness and are structurally junior to all existing and future indebtedness and other liabilities (including trade payables) incurred by the Company’s subsidiaries. The Notes do not contain any financial or operating covenants or any restrictions on the payment of dividends, the incurrence of other indebtedness or the issuance or repurchase of securities by the Company. The Indenture contains customary events of default with respect to the Notes, including that upon certain events of default, 100% of the principal of and accrued and unpaid interest on the Notes will automatically become due and payable. Under Accounting Standards Codification 470-20, Debt with Conversion and Other Options , an entity must separately account for the liability and equity components of convertible debt instruments (such as the Notes) that may be settled entirely or partially in cash upon conversion in a manner that reflects the issuer’s economic interest cost. The equity component is recorded in additional paid-in capital in the consolidated balance sheet at the issuance date and the equity component is treated as a discount on the liability component of the Notes. The initial carrying value of the liability component of $95.1 million was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying value of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component is not re-measured as long as it continues to meet the conditions for equity classification. The Company allocated the total transaction costs of $4.7 million related to the issuance of the Notes to the liability and equity components of the Notes based on their relative values. Transaction costs attributable to the liability component are amortized to interest expense over the six -year term of the Notes, and transaction costs attributable to the equity component are netted with the equity components in stockholders’ equity. The following table sets forth the total interest expense recognized by the Company (in thousands): Year Ended December 31, 2015 2014 2013 Contractual interest expense $ 3,856 $ 3,900 $ 3,833 Amortization of debt issuance costs 615 620 593 Amortization of debt discount 4,102 4,139 3,959 Capitalized interest (848 ) (381 ) (1,132 ) Total $ 7,725 $ 8,278 $ 7,253 Effective interest rate on the Notes 7.21 % 7.22 % 7.22 % Oxford Loan Facility On May 2, 2012, the Company entered into a definitive loan and security agreement with Oxford Finance LLC, and borrowed the principal amount of $27.5 million , or the Loan Facility, at a fixed rate of 9.75% , with the first principal payment due December 1, 2013. The term loan under the Loan Facility was repaid and terminated in January 2013, and the Company recorded a loss on early extinguishment of debt of $3.4 million comprised of the early prepayment penalty and the remaining unamortized debt issuance costs. Sale of Royalty Interests In 2000, prior to the Acquisition, Pacira California and SkyePharma PLC entered into a Royalty Interests Assignment Agreement, or PLC Royalty Agreement, with an affiliate of Paul Capital to raise $30.0 million . Under the PLC Royalty Agreement, Paul Capital had the right to receive a royalty interest in four of SkyePharma PLC’s product sales including product sales of, and other payments related to DepoCyt(e) and the no-longer marketed DepoDur. Payments began for product sales realized on or after January 1, 2003 and continued through December 31, 2014. The final payment to Paul Capital occurred in March 2015.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
FINANCIAL INSTRUMENTS	FINANCIAL INSTRUMENTS Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in the principal or most advantageous market in an orderly transaction. To increase consistency and comparability in fair value measurements, the FASB established a three-level hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of fair value measurements are: • Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. • Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. • Level 3: Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The carrying value of financial instruments including cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of these items. The fair value of the Company’s Notes at December 31, 2015 are calculated utilizing market quotations from an over-the-counter trading market for these notes (Level 2). The carrying amount and fair value of the Notes are as follows (in thousands): Carrying Fair Value Measurements Using Financial Liabilities Carried at Historical Cost Level 1 Level 2 Level 3 December 31, 2015 Convertible senior notes * $ 105,928 $ — $ 369,971 $ — * The fair value of the Notes was based on the Company’s closing stock price of $76.79 per share at December 31, 2015 compared to a conversion price of $24.82 per share which, if converted, would result in an approximate conversion premium of 3.2 million shares or $248 million of cash. The maximum conversion premium that can be due on the Notes is 4.8 million shares, which assumes no increases in the conversion rate for certain corporate events. Short-term investments consist of asset-backed securities collateralized by credit card receivables, investment grade commercial paper and corporate bonds with maturities greater than three months, but less than one year. Long-term investments consist of corporate bonds with maturities greater than one year. The net unrealized gains from the Company’s short-term and long-term investments are reported in other comprehensive income (loss). At December 31, 2015 , all of the Company’s short-term and long-term investments are classified as available for sale investments and are determined to be Level 2 instruments, which are measured at fair value using standard industry models with observable inputs. The fair value of the commercial paper is measured based on a standard industry model that uses the three-month Treasury bill rate as an observable input. The fair value of the asset-backed securities and corporate bonds is principally measured or corroborated by trade data for identical issues in which related trading activity is not sufficiently frequent to be considered a Level 1 input or that of comparable securities. At December 31, 2015 , all short-term and long-term investments were rated A or better by Standard & Poor’s. All long-term investments mature within 18 months of December 31, 2015. The following summarizes the Company’s investments at December 31, 2015 and 2014 (in thousands): December 31, 2015 Cost Gross Gross Fair Value Debt securities: Short-term: Asset-backed securities $ 27,484 $ — $ (15 ) $ 27,469 Commercial paper 35,191 31 — 35,222 Corporate bonds 39,319 2 (31 ) 39,290 Subtotal 101,994 33 (46 ) 101,981 Long-term: Corporate bonds 13,501 — (39 ) 13,462 Total $ 115,495 $ 33 $ (85 ) $ 115,443 December 31, 2014 Cost Gross Gross Fair Value Debt securities: Short-term: Asset-backed securities $ 15,009 $ — $ (9 ) $ 15,000 Commercial paper 1,747 3 — 1,750 Corporate bonds 102,430 — (42 ) 102,388 Subtotal 119,186 3 (51 ) 119,138 Long-term: Corporate bonds 24,463 10 (42 ) 24,431 Total $ 143,649 $ 13 $ (93 ) $ 143,569 Certain assets and liabilities are measured at fair value on a nonrecurring basis, including assets and liabilities acquired in a business combination and long-lived assets, which would be recognized at fair value if deemed to be impaired or if reclassified as assets held for sale. The fair value in these instances would be determined using Level 3 inputs. At December 31, 2015 , the Company had no financial instruments that were measured using Level 3 inputs. Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, long-term investments and accounts receivable. The Company maintains its cash and cash equivalents with high-credit quality financial institutions. At times, such amounts may exceed federally-insured limits. The Company performs ongoing credit evaluations of its customers as warranted and generally does not require collateral. As of December 31, 2015 , three customers accounted for over 10% of the Company’s accounts receivable; 34% , 28% and 27% , respectively. At December 31, 2014 , three customers accounted for over 10% of the Company’s accounts receivable; 33% , 29% and 27% , respectively. Revenues are primarily derived from major wholesalers and pharmaceutical companies which generally have significant cash resources. Allowances for doubtful accounts receivable are maintained based on historical payment patterns, aging of accounts receivable and actual write-off history. As of December 31, 2015 and 2014 , no allowances for doubtful accounts were deemed necessary by the Company on its accounts receivable.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS’ EQUITY Common Stock The Company is authorized to issue up to 250,000,000 shares of common stock, of which 36,848,319 and 36,150,620 were outstanding at December 31, 2015 and 2014 , respectively. In April 2014, the Company completed a follow-on underwritten public offering of 1,840,000 shares of common stock, including the shares issued to cover the underwriters’ overallotment option, at $64.00 per share. The Company received proceeds of $110.5 million as a result of the offering, net of underwriters’ fees and related expenses. Preferred Stock The Company is authorized to issue up to 5,000,000 shares of preferred stock. No preferred stock was outstanding at December 31, 2015 or 2014 . Warrants At both December 31, 2015 and 2014 , the Company had 7,216 warrants outstanding at a weighted average exercise price of $13.44 . Accumulated Other Comprehensive Income (Loss) The following table illustrates the changes in the balances of the Company’s accumulated other comprehensive income (loss) (in thousands): Net Unrealized Gains (Losses) From Available For Sale Investments Balance at December 31, 2013 $ 5 Other comprehensive loss before reclassifications (85 ) Amounts reclassified from accumulated other comprehensive income (loss) — Balance at December 31, 2014 (80 ) Other comprehensive loss before reclassifications 28 Amounts reclassified from accumulated other comprehensive income (loss) — Balance at December 31, 2015 $ (52 )

STOCK PLANS

STOCK PLANS	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK PLANS	STOCK PLANS Stock Incentive Plans The Company’s amended and restated 2011 stock incentive plan, or 2011 Plan, was adopted by its Board of Directors and approved by its stockholders in June 2014. The 2011 Plan allows the granting of incentive stock options, non-statutory stock options, restricted stock awards and other stock-based awards. The remaining shares available for issuance under a 2007 stock incentive plan, or 2007 Plan, were reallocated to the 2011 Plan. Any shares forfeited or canceled from the 2007 Plan are transferred to the 2011 Plan. In April 2014, the Company’s Board of Directors adopted the 2014 Inducement Plan which authorized 175,000 shares of common stock to be granted as equity awards to new employees. All of the Company’s stock option grants have an exercise price equal to the closing price of the fair market value of the Company’s common stock on the date of grant, generally have a 10-year contractual term and vest in increments (generally over four years from the date of grant although the Company may occasionally grant options with different vesting terms). The Company uses authorized and unissued shares to satisfy its obligations under these plans. 2014 Employee Stock Purchase Plan In April 2014, the Company’s Board of Directors adopted the 2014 Employee Stock Purchase Plan, or ESPP, which was subsequently approved by the Company’s stockholders in June 2014. The purpose of the ESPP is to provide a vehicle for eligible employees to purchase shares of the Company’s common stock at a discounted price and to help retain and motivate current employees as well as attract new talent. Under the ESPP, up to 500,000 shares of common stock may be sold under the ESPP which expires in June 2024. The ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code. The maximum fair market value of stock which can be purchased by a participant in a calendar year is $ 25,000 . Six-month offering periods begin on January 1 and July 1 of each year. During an offering period, eligible employees will have the opportunity to elect to purchase shares of the Company’s common stock on the purchase dates of June 30 and December 31. The per share purchase price will be equal to the lesser of 85% of the fair market value of the Company’s common stock on either the offering date or the purchase date. Restricted Stock Units In June 2015, the Company granted a mix of stock options and restricted stock units, or RSUs, to employees and its Board of Directors. The RSUs are authorized as part of the 2011 Plan. The following table contains information about the Company’s plans at December 31, 2015 : Stock Incentive Plans Awards Reserved for Issuance Awards Issued Awards Available for Grant 2007 Plan 2,022,837 2,022,837 — 2011 Plan 5,931,700 5,213,023 718,677 2014 Inducement plan 175,000 67,000 108,000 8,129,537 7,302,860 826,677 Employee Stock Purchase Plan Shares Reserved for Purchase Shares Purchased Shares Available for Purchase 2014 ESPP 500,000 50,700 449,300 Stock-Based Compensation Compensation expense for stock options and RSUs granted to employees and directors is based on the estimated grant date fair value of options recognized over the requisite service period on a straight-line expense attribution method. Compensation expense for options and RSUs granted to non-employees is based on the fair value of options, which are revalued each reporting period until vested and are recognized as expense over the requisite service period. Compensation expense for ESPP options is based on the grant date fair value of the ESPP shares and the grant date number of shares that can be purchased, which is recognized as expense over the length of an offering period. The Company recognized stock-based compensation expense (net of forfeitures) in its consolidated statements of operations for the years ended December 31, 2015 , 2014 and 2013 as follows (in thousands): Year Ended December 31, 2015 2014 2013 Cost of goods sold $ 6,012 $ 3,582 $ 1,526 Research and development 5,134 6,490 4,345 Selling, general and administrative 22,222 14,750 5,642 Total $ 33,368 $ 24,822 $ 11,513 Stock-based compensation from: Stock options (employee awards) $ 27,262 $ 19,182 $ 7,133 Stock options (consultant awards) 2,367 5,295 4,380 RSUs 2,887 — — ESPP 852 345 — Total $ 33,368 $ 24,822 $ 11,513 In November 2014, the Company’s Board of Directors approved amendments to stock options held by a departing Vice President. The amendments accelerated the vesting of nine months’ worth of options and as a result the Company recognized an additional $0.6 million in stock-based compensation expense for the year ended December 31, 2014. In September 2013, the Company’s Board of Directors approved amendments to stock options held by two departing directors. The amendments (i) accelerated the vesting of the unvested portion of certain options and (ii) extended the period during which each departing director could exercise all vested options to September 30, 2015. As a result of these amendments, the Company recognized an additional $0.2 million in stock-based compensation for the year ended December 31, 2013. The following table summarizes the Company’s stock option activity and related information for the period from January 1, 2013 to December 31, 2015 : Number of Weighted Weighted Average Aggregate Outstanding at January 1, 2013 4,003,166 $ 7.86 8.66 $ 38,485 Granted 918,915 30.42 Exercised (742,211 ) 5.19 $ 21,679 Forfeited (338,145 ) 10.93 Expired (1,687 ) 7.24 Outstanding at December 31, 2013 3,840,038 13.50 8.01 $ 168,905 Granted 1,638,575 79.68 Exercised (624,229 ) 11.60 $ 45,289 Forfeited (175,967 ) 44.32 Expired (561 ) 21.70 Outstanding at December 31, 2014 4,677,856 35.78 7.86 $ 248,276 Granted 906,706 75.35 Exercised (618,434 ) 16.29 $ 39,401 Forfeited (294,880 ) 64.29 Expired (25,526 ) 81.94 Outstanding at December 31, 2015 4,645,722 $ 44.03 7.31 $ 162,340 Exercisable at December 31, 2015 2,618,881 $ 26.08 6.32 $ 135,576 Vested and expected to vest at December 31, 2015 4,499,941 $ 43.08 7.26 $ 161,272 As of December 31, 2015 , $66.3 million of total unrecognized compensation cost related to non-vested stock options is expected to be recognized over a weighted average period of 2.7 years . The Company’s stock options have a maximum expiration date of ten years from the date of grant. The weighted average fair value of stock options granted for the years ended December 31, 2015 , 2014 and 2013 was $37.82 , $42.62 and $19.22 per share, respectively. The fair values of stock options granted were estimated using the Black-Scholes model with the following weighted average assumptions: Year Ended December 31, 2015 2014 2013 Expected dividend yield None None None Risk free interest rate 1.40 - 2.28% 0.02 - 2.16% 0.33 - 2.83% Expected volatility 52.9% 57.2% 68.7% Expected term of options 5.76 years 5.86 years 6.22 years The following table summarizes the Company’s RSU activity and related information for 2015: Number Weighted Aggregate Unvested at December 31, 2014 — $ — $ — Granted 232,046 78.65 Vested — — Forfeited (15,848 ) 79.43 Unvested at December 31, 2015 216,198 $ 78.59 $ 16,602 Expected to vest at December 31, 2015 194,290 $ 78.61 $ 14,920 As of December 31, 2015 , $14.1 million of total unrecognized compensation cost related to non-vested RSUs is expected to be recognized over a weighted average period of 3.4 years . The Company’s RSUs have a maximum vest date of four years from the date of grant. The fair values of RSUs awarded are equal to the common stock price on the date of grant. The fair values of the ESPP share options granted are estimated using the Black-Scholes model with the following weighted average assumptions: Grant Date Per Share Expected Risk Free Expected Expected September 2014 $ 23.27 None 0.37% 28.2% 4 months January 2015 25.24 None 0.11% 45.0% 6 months July 2015 21.93 None 0.13% 58.2% 6 months

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
EARNINGS PER SHARE	PER SHARE Basic net income (loss) per common share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding plus dilutive potential common stock outstanding during the period. Potential common shares include the shares of common stock issuable upon the exercise of outstanding stock options and warrants, the vesting of RSUs and the purchase of shares from the employee stock purchase plan (using the treasury stock method) as well as the conversion of the excess conversion value on the Notes. As discussed in Note 8, Debt , the Company must settle the principal of the Notes in cash upon conversion, and it may settle any conversion premium in either cash or stock at the Company’s discretion. For purposes of calculating the dilutive impact, it is presumed that the conversion premium will be settled in common stock. Potential common shares are excluded from the diluted net income (loss) per share computation to the extent that they would be antidilutive. Because the Company reported a net loss for the years ended December 31, 2014 and 2013 , no potentially dilutive securities have been included in the computation of diluted net loss per share for those periods. The following table sets forth the computation of basic and diluted net income (loss) per share for the years ended December 31, 2015 , 2014 and 2013 (in thousands except per share amounts): Year Ended December 31, 2015 2014 2013 Numerator: Net income (loss) $ 1,856 $ (13,716 ) $ (63,909 ) Denominator: Weighted average shares of common stock outstanding—basic 36,540 35,299 33,182 Computation of diluted securities: Dilutive effect of stock options 1,638 — — Dilutive effect of RSUs 3 — — Dilutive effect of conversion premium on the Notes 3,113 — — Dilutive effect of warrants 6 — — Dilutive effect of ESPP 1 — — Weighted average shares of common stock outstanding—diluted 41,301 35,299 33,182 Net income (loss) per share: Basic net income (loss) per share of common stock $ 0.05 $ (0.39 ) $ (1.93 ) Diluted net income (loss) per share of common stock $ 0.04 $ (0.39 ) $ (1.93 ) The following outstanding stock options, RSUs, conversion premium on the Notes, warrants and ESPP units are antidilutive in the periods presented (in thousands): Year Ended December 31, 2015 2014 2013 Weighted average number of stock options 1,891 3,534 3,980 Weighted average number of RSUs 99 — — Conversion premium on the Notes — 2,483 1,194 Weighted average number of warrants — 21 204 Weighted average purchase options under ESPP 8 1 — Total 1,998 6,039 5,378

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income (loss) before income taxes and the related tax (expense) benefit is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Income (loss) before income taxes: Domestic $ 4,033 $ (13,271 ) $ (64,351 ) Foreign (1,913 ) (272 ) — Total income (loss) before income taxes $ 2,120 $ (13,543 ) $ (64,351 ) Current taxes: Federal $ (92 ) $ — $ — State (172 ) (173 ) 442 Total income tax (expense) benefit $ (264 ) $ (173 ) $ 442 A reconciliation of income taxes at the U.S. federal statutory rate to the provision for income taxes is as follows: Year Ended December 31, 2015 2014 2013 U.S. federal statutory rate 35.00 % 35.00 % 35.00 % State taxes 0.71 % (32.62 )% 4.79 % Foreign taxes 12.03 % (0.13 )% — % Increase (decrease) in valuation allowance 10.32 % (17.71 )% (42.91 )% Stock-based compensation 7.26 % (0.44 )% 1.72 % Tax credits (30.63 )% 5.49 % 1.69 % Interest expense (37.57 )% 10.68 % 0.30 % Other permanent items 15.33 % (1.55 )% 0.10 % Effective tax rate 12.45 % (1.28 )% 0.69 % The tax provision of $0.3 million for the year ended December 31, 2015 reflects alternative minimum tax as well as minimum and apportionment state taxes. The Company’s effective tax rate for 2015 was 12.45% , which was impacted by the expected utilization of domestic net operating loss carryforwards to offset current year taxable income. Prior to 2015, there was no provision for federal income taxes since the Company has incurred net operating losses since inception. The income tax provision of $0.2 million for the year ended December 31, 2014 was the result of minimum and apportionment based state taxes. In 2013, the Company sold a portion of its unused New Jersey State net operating losses through a program sponsored by the New Jersey Economic Development Authority. Cash proceeds of $0.4 million were received by the Company resulting in a state tax benefit recognized during the year ended December 31, 2013. Deferred taxes reflect the tax effects of the differences between the amounts recorded as assets and liabilities for financial reporting purposes and the comparable amounts recorded for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities at December 31, 2015 and 2014 are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Net operating loss carry-forwards $ 101,011 $ 111,086 Federal and state research credits 7,140 6,043 Depreciation and amortization 1,310 3,494 Accruals and reserves 5,558 3,861 Deferred revenue 3,530 4,065 Stock based compensation 17,201 8,487 Other 1,045 588 Total deferred tax assets 136,795 137,624 Deferred tax liabilities: Discount on convertible senior notes (4,679 ) (6,283 ) 132,116 131,341 Less: valuation allowance (132,116 ) (131,341 ) Net deferred tax assets $ — $ — As of December 31, 2015 , the available federal net operating loss carryforward and the federal research and development tax credit carryforwards totaled $335.0 million and $5.1 million , respectively. $72.9 million of the federal net operating loss carryforward related to excess tax benefits arising from the exercise of stock options for which future tax benefits will be credited to equity when realized through a reduction in taxes payable. The Company also had state net operating loss carryforwards and state research and development tax credit carryforwards of $197.9 million and $3.2 million , respectively, which are subject to change on an annual basis due to variations in the Company’s annual state apportionment factors. The Company had non-U.S. tax net operating loss carry forwards of $2.2 million at December 31, 2015 . The net operating loss carryforwards will begin expiring in 2025 for federal purposes and 2016 for state purposes if the Company has not used them prior to that time. Since the Company had cumulative changes in ownership of more than 50% within a three-year period, under Internal Revenue Code sections 382 and 383, the Company’s ability to use certain net operating loss and credit carryforwards to offset taxable income or tax will be limited. Such ownership changes were triggered by the initial acquisition of the Company’s stock in 2007 as well as cumulative ownership changes arising as a result of the completion of the initial public offering and other financing transactions. As a result of these ownership changes, the Company estimates that approximately $192.8 million of federal net operating losses are subject to annual limitations. At December 31, 2015 , $94.1 million of these federal net operating losses were available. The Company estimates that an additional $26.4 million will become available in 2016, $14.8 million in 2017, $10.3 million annually from 2018 through 2022, and the remaining $6.0 million through 2025. In addition, California and certain states have suspended the use of net operating loss carryforwards for certain taxable years, and other states are considering similar measures. As a result, the Company may incur higher state income tax expense in the future. The valuation allowance for deferred tax assets increased by approximately $0.8 million , $9.9 million and $17.5 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. There is significant doubt regarding the Company’s ability to utilize its net deferred tax assets and, therefore, the Company has recorded a full valuation allowance. The 2007 Acquisition was treated as a stock acquisition for tax purposes and, therefore, the acquired intangibles for book purposes are not deductible for income tax purposes. The Company also recorded goodwill relating to contingent payments due under the Acquisition during the years ended December 31, 2015 and 2014 , which are not deductible for income tax purposes. See Note 6, Goodwill and Intangible Assets , for further discussion. In connection with the adoption of stock-based compensation guidance in 2006, the Company elected to follow the with-and-without approach to determine the sequence in which deductions and net operating loss carryforwards are utilized. Accordingly, no tax benefit related to stock options was recognized in the current year. The Company evaluates its uncertain tax positions in a two-step process. The Company first determines whether it is more-likely-than-not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to be recognized in the financial statements. The tax position is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company did not have a liability related to unrecognized tax benefits as of December 31, 2015 and 2014 due to operating losses but has reduced its deferred tax assets by $0.4 million at December 31, 2015 and 2014 . Further, because the Company has recorded a full valuation allowance on its net deferred tax assets, the effect of implementing ASC 740 has been a reduction of the tax valuation allowance by the amount above. The Company recognizes interest and penalties related to unrecognized tax benefits as tax expense. No interest or penalties were accrued for 2015 , 2014 or 2013 . The Company is currently open for audit by the United States Internal Revenue Service, or IRS, and state tax jurisdictions for 2009 through 2015. However, the IRS or states may still examine and adjust a net operating loss arising from a closed year to the extent it is utilized in an open tax year. The American Tax Relief Act of 2012, enacted on January 2, 2013, retroactively reinstated the research and development tax credit for 2012. The Company reported credits of approximately $0.2 million for federal income tax purposes in the first quarter of 2013 related to 2012.

OTHER EMPLOYEE BENEFITS

OTHER EMPLOYEE BENEFITS	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
OTHER EMPLOYEE BENEFITS	OTHER EMPLOYEE BENEFITS The Company sponsors a 401(k) savings plan. Under the plan, employees may make contributions which are eligible for a discretionary percentage match as defined in the plan and determined by the Board of Directors. The Company recognized $1.7 million , $1.0 million and $0.6 million of related compensation expense for the years ended December 31, 2015 , 2014 and 2013 , respectively.

COMMERCIAL PARTNERS AND OTHER A

COMMERCIAL PARTNERS AND OTHER AGREEMENTS	12 Months Ended
	Dec. 31, 2015
COMMERCIAL PARTNERS AND OTHER AGREEMENTS
COMMERCIAL PARTNERS AND OTHER AGREEMENTS	COMMERCIAL PARTNERS AND OTHER AGREEMENTS Commercial Partners Patheon UK Limited In April 2014, the Company and Patheon UK Limited, or Patheon, entered into a Strategic Co-Production Agreement and Technical Transfer and Service Agreement to collaborate in the manufacture of EXPAREL. Under the terms of the Technical Transfer and Service Agreement, Patheon has agreed to undertake certain technical transfer activities and construction services needed to prepare its Swindon, England facility for the manufacture of EXPAREL in two dedicated manufacturing suites. Under the agreements, the Company will make monthly base fee payments for services rendered. This agreement will remain in full effect unless and until it expires or is terminated. Upon termination of this agreement (other than termination by the Company in the event that Patheon does not meet the construction and manufacturing milestones or for a breach by Patheon), the Company will pay for the make good costs occasioned by the removal of its manufacturing equipment and for Patheon’s termination costs up to a maximum amount of $2.4 million . The Company also entered into a Manufacturing and Supply Agreement with Patheon. Under the terms of the Manufacturing and Supply Agreement, following the FDA approval date of the suites, the Company has agreed to purchase EXPAREL product from Patheon. Unless earlier terminated, this agreement will expire on the 10th anniversary of the FDA approval date for the initial manufacturing suite. Future expenditures associated with the aforementioned agreements are primarily driven by the potential commercial requirements and demand for the Company’s products which cannot be fully determined at this time. Aratana Therapeutics, Inc. On December 5, 2012, the Company entered into a worldwide license, development and commercialization agreement with Aratana Therapeutics, Inc., or Aratana. Under the agreement, the Company granted Aratana an exclusive royalty-bearing license, including the limited right to grant sublicenses, for the development and commercialization of the Company’s bupivacaine liposome injectable suspension product for animal health indications. Under the agreement, Aratana will develop and seek approval for the use of the product in veterinary surgery to manage postsurgical pain, focusing initially on developing the product for cats and dogs. In connection with its entry into the license agreement, the Company received a one-time payment of $1.0 million and is eligible to receive up to an additional aggregate $42.5 million upon the achievement of development and commercial milestones. Once the product has been approved by the FDA for sale in the United States, Aratana will be required to pay the Company a tiered double digit royalty on net sales made in the United States. If the product is approved by foreign regulatory agencies for sale outside of the United States, Aratana will be required to pay the Company a tiered double digit royalty on such net sales. Royalty rates will be reduced by a certain percentage upon the entry of a generic competitor for animal health indications into a jurisdiction or if Aratana must pay royalties to third parties under certain circumstances. In December 2013, the Company received a $0.5 million milestone payment under the agreement. Mundipharma International Corporation Limited In June 2003, the Company entered into an agreement granting Mundipharma International Corporation Limited, or Mundipharma, exclusive marketing and distribution rights to DepoCyte in the E.U. and certain other European countries. Under the agreement, as amended, and a separate supply agreement, the Company receives a fixed payment for supplying vials of DepoCyte and a double-digit royalty, net of supply price, on sales in the applicable territories. In April 2014, the Company and Mundipharma amended their agreements to, among other things, (i) extend the term of such agreements by an additional 15 years to June 2033 and (ii) expand the territories where Mundipharma can market and distribute DepoCyte to all countries other than the United States of America, Canada and Japan. In connection with the agreements, the Company received a non-refundable upfront payment of $8.0 million in May 2014 which was deferred and is being recognized over the contractual term. Sigma-Tau Pharmaceuticals, Inc. In December 2002, the Company entered into a supply and distribution agreement with Enzon Pharmaceuticals Inc., subsequently acquired by Sigma-Tau Pharmaceuticals, Inc., or Sigma-Tau, regarding the sale of DepoCyt ® . Pursuant to the agreement, Sigma-Tau was appointed the exclusive distributor of DepoCyt in the United States and Canada. Under the supply and distribution agreement, the Company supplies unlabeled DepoCyt vials to Sigma-Tau for finished packaging by Sigma-Tau. Under these agreements, the Company receives a fixed payment for supplying the vials of DepoCyt and a double-digit royalty on sales, net of supply price, in the United States and Canada. CrossLink BioScience, LLC Effective October 1, 2013, the Company and CrossLink BioScience, LLC, or CrossLink, commenced a five-year arrangement for the promotion and sale of EXPAREL pursuant to the terms of a Master Distributor Agreement. Under the agreement, the Company appointed CrossLink as a third-party distributor during the term to promote and sell EXPAREL to orthopedic surgeons in the United States, with the exception of certain geographical areas and accounts. The prices and purchasing terms related to sales of EXPAREL are determined by the Company, and all orders are subject to acceptance or rejection by the Company. CrossLink is entitled to receive commissions on its sales of EXPAREL in the applicable territories, subject to certain conditions and adjustments. CrossLink may receive additional performance-based payments if it achieves certain sales goals. The Company may terminate the agreement if CrossLink fails to meet certain minimum performance metrics or if the Company pays a termination fee. Effective March 1, 2015, the agreement was amended to, among other things, amend certain payment terms and specify certain sub-distributors that may promote and sell EXPAREL under the agreement. Under the terms of the Third Amendment, the Company and CrossLink have mutual termination rights under the Agreement, and the Company is permitted to terminate the Agreement without cause effective September 30, 2016, subject to certain terms and conditions set forth in the Agreement. In the event the Company terminates the agreement, a termination payment based on a percentage of earned performance-based fees will be due to CrossLink. Research Development Foundation Pursuant to an agreement with Research Development Foundation, or RDF, the Company is required to pay RDF a low single-digit royalty on the collection of revenues from its DepoFoam-based products, for as long as certain patents assigned to the Company under the agreement remain valid. RDF has the right to terminate the agreement for an uncured material breach by the Company, in connection with its bankruptcy or insolvency or if it directly or indirectly opposes or disputes the validity of the assigned patent rights. Amylin Pharmaceuticals, Inc. In March 2008, the Company entered into a development and licensing agreement with Amylin Pharmaceuticals, Inc., or Amylin. Under the development and licensing agreement, the Company provided Amylin with access to its proprietary DepoFoam drug delivery technology to conduct research, feasibility and formulation work, and for the manufacturing of pre-clinical and clinical material for various Amylin products. The Company is entitled to payments from Amylin for its work on the formulation and development of compounds with the DepoFoam technology, its achievement of certain clinical development milestones, its achievement of certain worldwide sales and a tiered royalty based upon sales. The development and licensing agreement with Amylin remains in effect until January 2017, however, neither party is currently performing any activities under the agreement.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company’s former Chief Medical Officer, Dr. Gary Patou, is a partner of MPM Asset Management LLC, or MPM, an investor in the Company. David Stack, the Company’s Chief Executive Officer and Chairman is also a managing director at MPM. The Company contracted with MPM and Dr. Patou for the services of Dr. Patou, or Consultant. MPM earned monthly consulting fees between $16,000 and $26,000 in exchange for 50% to 80% of the Consultant’s business time. The Company executed an Amendment with MPM effective April 1, 2015, for an increase to $21,000 in exchange for 50% of the Consultant’s business time. The Company incurred expenses of $0.3 million , $0.5 million and $0.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. At December 31, 2015 and 2014 , the amount payable to MPM was $0.1 million and $0.2 million , respectively. The Company’s agreement with MPM expired on December 31, 2015. In December 2012, the Company entered into a worldwide license, development and commercialization agreement with Aratana as discussed in Note 15, Commercial Partners and Other Agreements . MPM and its affiliates are holders of capital stock of Aratana. In April 2012, the Company entered into a consulting agreement with Dr. Gary Pace, a director of the Company, whereby Dr. Pace would provide consulting services. Pursuant to the consulting agreement and subsequent amendments, the consulting services are paid at the rate of $5,000 to $15,000 per month based on the number of days worked. The Company recorded expenses under the consulting arrangement of $0.1 million for each of the years ended December 31, 2015 , 2014 and 2013 . In connection with the consulting arrangement, Dr. Pace received an option to purchase 20,000 shares of common stock at an exercise price of $11.02 per share and an option to purchase 70,000 shares of common stock at an exercise price of $16.67 per share. The amounts payable at December 31, 2015 and 2014 to Dr. Pace for the consulting services were less than $0.1 million .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Leases The Company leases research and development, manufacturing and warehouse facilities in San Diego, California which expire in August 2020 and its corporate headquarters in Parsippany, New Jersey which expires in March 2028. As of December 31, 2015 , the aggregate annual minimum payments due under the Company’s lease obligations are as follows (in thousands): Year Annual Minimum Payments Due 2016 $ 7,743 2017 7,878 2018 8,081 2019 8,303 2020 6,420 2021 through 2028 8,731 Total $ 47,156 Total rent expense, net of amortization of unfavorable lease obligations and tenant improvements, under all operating leases for the years ended December 31, 2015 , 2014 and 2013 was $5.7 million , $4.9 million and $4.9 million , respectively. Deferred rent at December 31, 2015 and 2014 was $9.2 million and $4.5 million , respectively. The Company’s research and development facility in San Diego, California included a lease incentive allowance of $5.7 million for the payment of leasehold improvements. The Company has utilized $4.6 million of this lease incentive allowance, which was capitalized into fixed assets, net on the consolidated balance sheets and depreciated over the lease term. Litigation From time to time, the Company has been and may again become involved in legal proceedings arising in the ordinary course of its business, including those related to patents, product liability and government investigations. Except as described below, the Company is not presently a party to any litigation which it believes to be material, and is not aware of any pending or threatened litigation against the Company which it believes could have a material adverse effect on its business, operating results, financial condition or cash flows. In September 2014, the FDA’s Office of Prescription Drug Promotion issued Pacira a warning letter related to certain promotional materials. Pacira took actions to address the immediate FDA concerns and minimize further disruption to its business, but ultimately sought a court order to defend against any retroactive attempt to limit the broad indication for EXPAREL and restrict communications supported by the approved label. On September 8, 2015, the Company, along with two independent physicians, filed a lawsuit in the U.S. District Court for the Southern District of New York against the FDA and other governmental defendants seeking to exercise its lawful right to communicate truthful and non-misleading information about EXPAREL. The complaint outlined the Company’s belief that the FDA’s warning letter and regulations restricting the Company’s truthful and non-misleading speech about EXPAREL violated the Administrative Procedure Act and the First and Fifth Amendments of the U.S. Constitution. The lawsuit sought a declaration and injunctive relief to permit the Company to promote EXPAREL consistent with its approved indication and pivotal studies that supported FDA approval. On December 15, 2015, the Company’s lawsuit against the FDA was amicably resolved. The FDA approved a revised label for EXPAREL confirming that EXPAREL has, since its approval on October 28, 2011, been approved for administration into the surgical site to produce postsurgical analgesia in a variety of surgeries not limited to those studied in its pivotal trials, and issued a rescission letter withdrawing its previously issued warning letter. In April 2015, the Company received a subpoena from the U.S. Department of Justice, U.S. Attorney’s Office for the District of New Jersey, requiring the production of a broad range of documents pertaining to marketing and promotional practices related to EXPAREL. The Company is cooperating with the government’s inquiry. The Company can make no assurances as to the time or resources that will need to be devoted to this inquiry or the impact, if any, of this inquiry or any proceedings on its business, financial condition, results of operations and cash flows. On October 3, 2014, a purported class action lawsuit was filed in the U.S. District Court for the District of New Jersey against the Company and several of its current officers, Nicholas R. Lovallo v. Pacira Pharmaceuticals, Inc., et al., Case No. 2:14-cv-06172-WHW-CLW. The plaintiff amended the lawsuit on May 29, 2015. The lawsuit asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and is premised on allegedly false and/or misleading statements, and non-disclosure of material facts, regarding the Company’s business, operations, prospects and performance during the proposed class period of February 24, 2014 to April 29, 2015. On November 19, 2015, the suit was dismissed with leave to re-plead by a New Jersey federal judge. On January 22, 2016, the parties agreed to and filed a Stipulation of Dismissal with Prejudice. Purchase Obligations The Company has $0.9 million of minimum, non-cancelable contractual commitments for the purchase of certain raw materials as of December 31, 2015 . Other Commitments and Contingencies The FDA, as a condition of the approval of EXPAREL, has required the Company to study EXPAREL in pediatric patients. The Company has agreed to a trial timeline where, over several years, it will study pediatric patient populations in descending order starting with 12 - 18 year olds and ending with children under two years of age. The cost to complete the trial may be significant. In addition to the initial $19.6 million purchase price for the Acquisition, the Company entered into an earn-out agreement with Skyepharma which was based on the Company reaching certain revenue milestones following the Acquisition. Pursuant to this agreement, the Company is required to pay Skyepharma milestone payments up to an aggregate of $62.0 million , of which $18.0 million has been paid. Additionally, the Company agreed to pay to Skyepharma a 3% percentage payment on collections of EXPAREL sales in the United States, Japan, the United Kingdom, France, Germany, Italy and Spain. Such obligations to make percentage payments will continue for the term in which such sales related to EXPAREL are covered by a valid claim in certain patent rights related to EXPAREL and other biologics products. The expiration date of the last valid claim will occur in 2018. The Company has the right to cease paying the 3% percentage payments in the event that Skyepharma breaches certain covenants not to compete contained in the stock purchase agreement. Refer to Note 6, Goodwill and Intangible Assets , for further discussion.

SELECTED QUARTERLY FINANCIAL DA

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following table presents selected quarterly financial data for the years ended December 31, 2015 and 2014 (in thousands, except per share data): Three Months Ended March 31, June 30, September 30, December 31, Total revenues $ 58,316 $ 59,148 $ 62,213 $ 69,320 Cost of goods sold 17,580 18,929 15,901 19,427 Total operating expenses 54,975 57,330 57,104 70,133 Net income (loss) 1,260 8 3,086 (2,498 ) Basic and diluted net income (loss) per common share $ 0.03 $ 0.00 $ 0.08 $ (0.07 ) Three Months Ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 Total revenues $ 36,662 $ 47,165 $ 52,048 $ 61,793 Cost of goods sold 18,127 19,954 20,391 18,968 Total operating expenses 45,920 50,007 53,033 53,873 Net income (loss) (11,477 ) (5,037 ) (3,004 ) 5,802 Basic net income (loss) per common share $ (0.34 ) $ (0.14 ) $ (0.08 ) $ 0.16 Diluted net income (loss) per common share $ (0.34 ) $ (0.14 ) $ (0.08 ) $ 0.14 For periods where the Company reported a net loss, no potentially dilutive securities were included in the computation of diluted net loss per share.

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Asset Retirement Obligations, Policy [Policy Text Block]	Asset Retirement Obligations The Company has contractual obligations stemming from certain of its lease agreements to return leased space to its original condition upon termination of the lease agreement. The Company records an asset retirement obligation, or ARO, liability along with a corresponding capital asset in an amount equal to the estimated fair value of the ARO. In subsequent periods, the Company records interest expense to accrete the ARO liability to full value. Each ARO capital asset is depreciated over the depreciable term of the associated asset.
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP, and in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC. The accounts of wholly owned subsidiaries are included in the consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to conform to the current presentation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and contingent liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, among other things, revenue recognition, impairment of long-lived assets, stock-based compensation and valuation of deferred tax assets. The Company’s critical accounting policies are those that are both most important to the Company’s consolidated financial condition and results of operations and require the most difficult, subjective or complex judgments on the part of management in their application, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Because of the uncertainty of factors surrounding the estimates or judgments used in the preparation of the consolidated financial statements, actual results could differ from these estimates.
Liquidity	Liquidity Management believes that the Company’s existing cash and cash equivalents, short-term and long-term investments and cash flows generated from product sales will be sufficient to enable the Company to meet its planned operating expenses, capital expenditure requirements, payment of the principal on any conversions of the Company’s convertible senior notes and to service its indebtedness at least through December 31, 2016 . However, changing circumstances may cause the Company to expend cash significantly faster than currently anticipated, and the Company may need to spend more cash than currently expected because of circumstances beyond its control. See Note 8, Debt, for further discussion of the Company’s convertible senior notes and conversion elections. The Company expects to continue to incur substantial additional expenditures as it continues to commercialize EXPAREL, develops and seeks regulatory approval for its product candidates, and expands its manufacturing facilities for EXPAREL and its other product candidates including costs associated with certain technical transfer activities and construction of two dedicated manufacturing suites in the United Kingdom.
Revenue Recognition	Revenue Recognition The Company’s principal sources of revenue include (i) sales of EXPAREL in the United States, or U.S., (ii) sales of DepoCyt(e) in the U.S. and the European Union, or E.U., (iii) royalties based on sales by commercial partners of DepoCyt(e) and (iv) license fees and milestone payments. The Company recognizes revenue when there is persuasive evidence that an arrangement exists, title has passed, collection is reasonably assured and the price is fixed or determinable. Net Product Sales The Company sells EXPAREL through a drop-ship program under which orders are processed through wholesalers based on orders of the product placed by end users which include hospitals, ambulatory surgery centers and doctors. EXPAREL is delivered directly to the end user without the wholesaler ever taking physical possession of the product. The Company records revenue at the time the product is delivered to the end user. The Company also recognizes revenue from products manufactured and supplied to commercial partners, such as DepoCyt(e), upon shipment. Prior to the shipment of manufactured products, the Company conducts initial product release and stability testing in accordance with current Good Manufacturing Practices. Revenues from sales of products are recorded net of returns allowances, prompt payment discounts, wholesaler service fees and volume rebates and chargebacks. The calculation of some of these items requires management to make estimates based on sales data, contract terms and experience. The Company reviews the adequacy of its provisions on a quarterly basis. Returns Allowances The Company allows customers to return product that is damaged or received in error. In addition, the Company allows EXPAREL to be returned beginning six months prior to, and twelve months following product expiration. The Company estimates its sales return reserve based on return history from other hospital-based products with similar distribution models and its experience with historical return rates, which management believes is the best estimate of the anticipated product to be returned. The returns reserve is recorded at the time of sale as a reduction to gross product sales and an increase in accrued expenses. The Company’s commercial partners can return DepoCyt(e) within contractually specified timeframes if the product does not meet the applicable inspection tests. The Company estimates its returns reserve based on its experience with historical return rates. Historically, the Company’s product returns have not been material. Prompt Payment Discounts The prompt payment reserve is based upon discounts offered to wholesalers as an incentive to meet certain payment terms. The Company accrues discounts to wholesalers based on contractual terms of agreements and historical experience. The Company accounts for these discounts at the time of sale as a reduction to gross product sales and a reduction to accounts receivable. Wholesaler Service Fees The Company’s customers include major and regional wholesalers with whom the Company has contracted a fee for service based on a percentage of gross product sales. This fee for service is recorded as a reduction to gross product sales and an increase to accrued expenses at the time of sale, and is recorded based on the contracted percentage. Volume Rebates and Chargebacks Volume rebates and chargeback reserves are based upon contracted discounts and promotional offers the Company provides to certain end users such as members of group purchasing organizations. Volume rebates are recorded at the time of sale as a reduction to gross product sales and an increase in accrued expenses. Chargeback reserves are recorded at the time of sale as a reduction to gross product sales and a reduction to accounts receivable. The following table provides a summary of activity with respect to the Company’s accrued rebates and chargebacks, returns, wholesaler service fees and prompt pay discounts for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Beginning of Period Accruals Payments (Credits) End of Period Year Ended December 31, 2015 Accrued rebates and chargebacks (1) $ 321 $ 2,020 $ (1,544 ) $ 797 Accrued returns 1,559 339 (165 ) 1,733 Accrued wholesaler service fees 588 3,482 (3,325 ) 745 Subtotal 2,468 5,841 (5,034 ) 3,275 Reserves for prompt pay discounts 575 4,905 (4,855 ) 625 Total $ 3,043 $ 10,746 $ (9,889 ) $ 3,900 Year Ended December 31, 2014 Accrued rebates and chargebacks $ 402 $ 881 $ (962 ) $ 321 Accrued returns 897 829 (167 ) 1,559 Accrued wholesaler service fees 266 2,780 (2,458 ) 588 Subtotal 1,565 4,490 (3,587 ) 2,468 Reserves for prompt pay discounts 313 3,833 (3,571 ) 575 Total $ 1,878 $ 8,323 $ (7,158 ) $ 3,043 Year Ended December 31, 2013 Accrued rebates and chargebacks (1) $ 111 $ 590 $ (299 ) $ 402 Accrued returns 134 802 (39 ) 897 Accrued wholesaler service fees 68 1,078 (880 ) 266 Subtotal 313 2,470 (1,218 ) 1,565 Reserves for prompt pay discounts 80 1,559 (1,326 ) 313 Total $ 393 $ 4,029 $ (2,544 ) $ 1,878 (1) - Includes reserves for chargebacks of $0.2 million at December 31, 2015 and $0.3 million at December 31, 2013, recorded as a contra asset. There was no reserve for chargebacks at December 31, 2014. Royalty Revenue The Company recognizes revenue from royalties based on sales of its commercial partners’ net sales of DepoCyt(e). Royalties are recognized as earned in accordance with contract terms when they can be reasonably estimated and collection is reasonably assured. The Company’s commercial partners are obligated to report their net product sales and the resulting royalty due to the Company within 60 days from the end of each quarter. Based on historical product sales, royalty receipts and other relevant information, the Company accrues royalty revenue each quarter and subsequently adjusts its royalty revenue when it receives royalty reports from its commercial partners. Collaborative Licensing and Milestone Revenue The Company recognizes revenues from non-refundable up-front license fees received under collaboration agreements ratably over the performance period as determined under the agreement (estimated development period in the case of development agreements, and contract period or longest patent life in the case of supply and distribution agreements). If the estimated performance period is subsequently modified, the Company will modify the period over which the up-front license fee is recognized accordingly on a prospective basis. Upon notification of a termination of a collaboration agreement, any remaining non-refundable license fees received by the Company, which had been deferred, are recognized over the remaining contractual term. If the termination is immediate and no additional services are to be performed, the deferred revenue is generally recognized in full. All such recognized revenues are included in collaborative licensing and milestone revenue in the Company’s consolidated statements of operations. The Company recognizes revenue from milestone payments received under collaboration agreements when earned, provided that the milestone event is substantive, its achievability was not reasonably assured at the inception of the agreement, the Company has no further performance obligations relating to the event and collection is reasonably assured. If these criteria are not met, the Company recognizes milestone payments ratably over the remaining period of the Company’s performance obligations under the applicable agreements.
Concentration of Major Customers	Concentration of Major Customers The Company’s customers are national and regional wholesalers of pharmaceutical products as well as commercial, collaborative and licensing partners. The Company sells EXPAREL through a drop-ship program under which orders are processed through wholesalers (including AmerisourceBergen Health Corporation, Cardinal Health, Inc., and McKesson Drug Company), but shipments of the product are sent directly to individual accounts, such as hospitals, ambulatory surgery centers and individual doctors. The table below includes the percentage of revenue comprised by the three largest customers (i.e., wholesalers or commercial partners) in each year presented: Year Ended December 31, 2015 2014 2013 Largest customer 33 % 33 % 33 % Second largest customer 29 % 29 % 28 % Third largest customer 28 % 24 % 18 % 90 % 86 % 79 % Revenues from customers outside the U.S. accounted for 2% , 2% and 5% of the Company’s revenue for the years ended December 31, 2015 , 2014 and 2013 , respectively.
Research and Development Expenses	Research and Development Expenses Research and development expenses consist of costs associated with products being developed internally, and include related personnel expenses, laboratory supplies, active pharmaceutical ingredients, manufacturing supplies, facilities costs, preclinical and clinical trial costs and other outside service fees. The Company expenses research and development costs as incurred. A significant portion of the development activities are outsourced to third parties, including contract research organizations. In such cases, the Company may be required to estimate related service fees to be accrued.
Cash and Cash Equivalents	Cash and Cash Equivalents All highly-liquid investments with maturities of 90 days or less when purchased are considered cash equivalents.
Restricted Cash	Restricted Cash As further discussed in Note 8, Debt , the Company had entered into a financing agreement with Paul Capital Advisors LLC, or Paul Capital, for the sale of a royalty interest in its DepoCyt(e) and DepoDur ® product revenue and royalties. The royalty interest agreement pertained only to DepoCyt(e) and the Company’s previously-marketed product, DepoDur, and does not include revenue related to EXPAREL or any other product candidates. As part of this financing agreement, the Company and Paul Capital maintained a lockbox, where all DepoCyt(e) and DepoDur product revenue and royalties were received. The Company had no minimum payment obligations under this agreement. Commencing on April 1 of every year, the first $2.5 million received in the lockbox was restricted and was used to make quarterly payments due to Paul Capital, if any, under the agreement during the subsequent 12 month period. On March 31 of the subsequent year, the balance of cash in the lockbox, if any, was remitted to the Company. The Paul Capital financing agreement terminated on December 31, 2014
Short-Term Investments	Short-Term and Long-Term Investments Short-term investments consist of asset-backed securities collateralized by credit card receivables, investment grade commercial paper and corporate bonds with initial maturities of greater than three months at the date of purchase, but less than one year. Long-term investments consist of corporate bonds with initial maturities greater than one year at the date of purchase. The Company determines the appropriate classification of its investments at the time of purchase and reevaluates such determination at each balance sheet date. The Company’s investment policy sets minimum credit quality criteria and maximum maturity limits on its investments to provide for preservation of capital, liquidity and a reasonable rate of return. Available-for-sale securities are recorded at fair value, based on current market valuations. Unrealized holding gains and losses on available-for-sale securities are excluded from net loss and are reported as a separate component of accumulated other comprehensive income (loss) until realized. Realized gains and losses are included in non-operating other income (expense) on the consolidated statements of operations and are derived using the specific identification method for determining the cost of the securities sold.
Inventories	Inventories Inventories consist of finished goods held for sale and distribution, raw materials and work in process. Inventories are stated at the lower of cost, which includes amounts related to material, labor and overhead, or market (net realizable) value and is determined using the first-in, first-out (“FIFO”) method. The Company periodically reviews its inventory to identify obsolete, slow-moving, or otherwise unsalable inventories, and establishes allowances for situations in which the cost of the inventory is not expected to be recovered.
Fixed Assets	Fixed Assets Fixed assets are recorded at cost, net of accumulated depreciation and amortization. The Company reviews its property, plant and equipment assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation of fixed assets is provided over their estimated useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the related remaining lease terms. Useful lives by asset category are as follows: Asset Category Useful Lives Computer equipment and software 1 to 3 years Office furniture and equipment 5 years Manufacturing and laboratory equipment 5 to 10 years
Goodwill and Intangible Assets	Goodwill and Intangible Assets Intangible assets are recorded at cost, net of accumulated amortization. Amortization of intangible assets is provided over their estimated useful lives on a straight-line basis. The Company evaluates the recoverability of intangible assets periodically and takes into account events and circumstances which may indicate that impairment exists. Goodwill represents the excess of purchase price over fair value acquired in a business combination and is not amortized, but subject to impairment at least annually or when a triggering event occurs that could indicate a potential impairment.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Management reviews long-lived assets, including fixed assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets.
Convertible Debt Transactions	Convertible Debt Transactions The Company separately accounts for the liability and equity components of convertible debt instruments by allocating the proceeds from the issuance between the liability component and the embedded conversion option, or equity component. This is done in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the initial proceeds from the convertible debt issuance and the fair value of the liability component is recorded as the carrying amount of the equity component. The Company recognizes the amortization of the resulting discount as part of interest expense in its consolidated statements of operations. Upon settlement of the convertible senior notes, the liability component is measured at fair value. The Company allocates a portion of the fair value of the total settlement consideration transferred to the extinguishment of the liability component equal to the fair value of that component immediately prior to the settlement. Any difference between the consideration attributed to the liability component and the net carrying amount of the liability component, including any unamortized debt issuance costs, is recognized as a gain or loss in the consolidated statements of operations. Any remaining consideration is allocated to the reacquisition of the equity component and is recognized as a reduction of additional paid-in capital.
Foreign Currencies	Foreign Currencies The Company receives payment from certain commercial partners relating to accounts receivable and royalties on DepoCyte ® in Euros. Gains and losses from foreign currency transactions are reflected in the consolidated statements of operations and were not significant in any period. All foreign currency receivables and payables are measured at the applicable exchange rate at the end of the reporting period.
Income Taxes	Income Taxes The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to basis differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. As of December 31, 2015 and 2014 , all deferred tax assets were fully offset by a valuation allowance. In February 2013, the Company received $0.4 million from the sale of unused net operating losses through the State of New Jersey’s Economic Development Authority Technology Business Tax Certificate Transfer Program. As a result, the Company recorded an income tax benefit by reversing the valuation allowance for the related net deferred tax assets. The Company continues to maintain a full valuation allowance on its remaining net deferred tax assets because there is significant doubt regarding the Company’s ability to utilize such net deferred tax assets. The Company accrues interest and penalties, if any, on underpayment of income taxes related to unrecognized tax benefits as a component of income tax expense in its consolidated statements of operations.
Per Share Data	Per Share Data Basic net income (loss) per common share is computed by dividing net income (loss) available (attributable) to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is calculated by dividing net income (loss) available (attributable) to common stockholders as adjusted for the effect of dilutive securities, if any, by the weighted average number of common stock and dilutive common stock outstanding during the period. Potential common shares include the shares of common stock issuable upon the exercise of outstanding stock options, warrants and the purchase of shares from the employee stock purchase plan (using the treasury stock method) as well as the conversion of the excess conversion value on the Company’s convertible senior notes. Potential common shares in the diluted net loss per share computation are excluded to the extent that they would be anti-dilutive. For periods where the Company reported a net loss, no potentially dilutive securities were included in the computation of diluted net loss per share.
Stock-Based Compensation	Stock-Based Compensation The Company’s stock-based compensation program includes grants of stock options and restricted stock units to employees, consultants, and non-employee directors in addition to the opportunity for employees to participate in an employee stock purchase plan. The expense associated with these programs is recognized in the Company’s consolidated statements of operations based on their fair values as they are earned under the applicable vesting terms or the length of an offering period. The valuation of stock options is an inherently subjective process, since market values are generally not available for long-term, non-transferable stock options. Accordingly, the Company uses an option pricing model to derive an estimated fair value. In calculating the estimated fair value of stock options granted, the Company uses the Black-Scholes option valuation model, or Black-Scholes model, which requires the consideration of the following variables for purposes of estimating fair value: • Expected term of the option • Expected volatility • Expected dividends • Risk-free interest rate Since its initial public offering, the Company utilizes its available historic volatility data combined with a publicly traded peer group’s historic volatility to determine expected volatility over the expected option term. In 2015 , the Company used an expected term based on a weighted average combination of its historical data from stock option exercises and the simplified method. In prior years the Company utilized the “simplified” method for “plain vanilla” options to estimate the expected term of stock option grants. Under that approach, the weighted average expected life was presumed to be the average of the vesting term and the contractual term of the option. The risk-free interest rate is based on the implied yield on United States Department of the Treasury zero coupon bonds for periods commensurate with the expected term of the options. The dividend yield on the Company’s common stock is estimated to be zero as the Company has not paid any dividends since inception, nor does it have any intention to do so in the foreseeable future. The Company estimates the level of award forfeitures expected to occur based on its historical data and records compensation cost only for those awards that are ultimately expected to vest.
Segment Reporting	Segment Reporting The Company operates in one reportable segment and, accordingly, no segment disclosures have been presented.
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers , which requires that an entity recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to its customers. In order to achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued Accounting Standards Update 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date . This latest standard defers the effective date of revenue standard ASU 2014-09 by one year and permits early adoption on a limited basis. This update will replace existing revenue recognition guidance under GAAP when it becomes effective for the Company beginning January 1, 2018, with early adoption permitted in the first quarter of 2017. The updated standard will permit the use of either the retrospective or cumulative effect transition method. The Company is continuing to evaluate the impact of these updates on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The adoption of ASU 2015-03 is not expected to have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . The standard requires entities to measure most inventory “at the lower of cost and net realizable value,” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable value). The standard is effective for the Company prospectively beginning January 1, 2017. The adoption of ASU 2015-11 is not expected to have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . The standard eliminates the current requirement for an entity to separate deferred income tax liabilities and assets into current and non-current amounts in a classified balance sheet. Instead, this guidance requires deferred tax liabilities, deferred tax assets and valuation allowances be classified as non-current in a classified balance sheet. This ASU is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted. Additionally, this guidance may be applied either prospectively or retrospectively to all periods presented. The Company is evaluating the impact of ASU 2015-17 on its consolidated financial statements. Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or not significant to the consolidated financial statements of the Company.

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Activity in Accrued Rebates and Chargebacks, Returns, Wholsesaler Service Fees and Prompt Pay Discounts	The following table provides a summary of activity with respect to the Company’s accrued rebates and chargebacks, returns, wholesaler service fees and prompt pay discounts for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Beginning of Period Accruals Payments (Credits) End of Period Year Ended December 31, 2015 Accrued rebates and chargebacks (1) $ 321 $ 2,020 $ (1,544 ) $ 797 Accrued returns 1,559 339 (165 ) 1,733 Accrued wholesaler service fees 588 3,482 (3,325 ) 745 Subtotal 2,468 5,841 (5,034 ) 3,275 Reserves for prompt pay discounts 575 4,905 (4,855 ) 625 Total $ 3,043 $ 10,746 $ (9,889 ) $ 3,900 Year Ended December 31, 2014 Accrued rebates and chargebacks $ 402 $ 881 $ (962 ) $ 321 Accrued returns 897 829 (167 ) 1,559 Accrued wholesaler service fees 266 2,780 (2,458 ) 588 Subtotal 1,565 4,490 (3,587 ) 2,468 Reserves for prompt pay discounts 313 3,833 (3,571 ) 575 Total $ 1,878 $ 8,323 $ (7,158 ) $ 3,043 Year Ended December 31, 2013 Accrued rebates and chargebacks (1) $ 111 $ 590 $ (299 ) $ 402 Accrued returns 134 802 (39 ) 897 Accrued wholesaler service fees 68 1,078 (880 ) 266 Subtotal 313 2,470 (1,218 ) 1,565 Reserves for prompt pay discounts 80 1,559 (1,326 ) 313 Total $ 393 $ 4,029 $ (2,544 ) $ 1,878 (1) - Includes reserves for chargebacks of $0.2 million at December 31, 2015 and $0.3 million at December 31, 2013, recorded as a contra asset. There was no reserve for chargebacks at December 31, 2014.
Schedule of percentage of revenue comprised by the three largest customers	The table below includes the percentage of revenue comprised by the three largest customers (i.e., wholesalers or commercial partners) in each year presented: Year Ended December 31, 2015 2014 2013 Largest customer 33 % 33 % 33 % Second largest customer 29 % 29 % 28 % Third largest customer 28 % 24 % 18 % 90 % 86 % 79 %
Schedule of useful lives by asset category	Useful lives by asset category are as follows: Asset Category Useful Lives Computer equipment and software 1 to 3 years Office furniture and equipment 5 years Manufacturing and laboratory equipment 5 to 10 years

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Schedule of components of inventories	The components of inventories are as follows (in thousands): December 31, 2015 2014 Raw materials $ 16,712 $ 9,263 Work-in-process 12,152 8,617 Finished goods 32,781 11,383 Total $ 61,645 $ 29,263

FIXED ASSETS (Tables)

FIXED ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Schedule of fixed assets summarized by major category	Fixed assets, net summarized by major category, consist of the following (in thousands): December 31, 2015 2014 Machinery and laboratory equipment $ 29,864 $ 29,697 Leasehold improvements 30,834 26,350 Computer equipment and software 4,007 3,754 Office furniture and equipment 1,439 1,001 Construction in progress 49,097 19,944 Total 115,241 80,746 Less: accumulated depreciation (24,917 ) (20,114 ) Fixed assets, net $ 90,324 $ 60,632

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of change in carrying value of goodwill	The change in the carrying value of goodwill is summarized as follows (in thousands): Carrying Value Balance at December 31, 2013 $ 10,328 Milestone payment triggered by collections of net sales of EXPAREL 8,000 Percentage payments on collections of net sales of EXPAREL 5,433 Balance at December 31, 2014 23,761 Percentage payments on collections of net sales of EXPAREL 7,119 Balance at December 31, 2015 $ 30,880
Summary of intangible assets	Intangible assets, net, consist of core technology, developed technology and trademarks and trade names acquired in the Acquisition and are summarized as follows (in thousands): December 31, 2015 Gross Accumulated Intangible Estimated Amortizable intangible assets: Core technology $ 2,900 $ (2,819 ) $ 81 9 Years Developed technology 11,700 (11,700 ) — 7 Years Trademarks and trade names 400 (400 ) — 7 Years Total intangible assets $ 15,000 $ (14,919 ) $ 81 December 31, 2014 Gross Accumulated Intangible Estimated Amortizable intangible assets: Core technology $ 2,900 $ (2,497 ) $ 403 9 years Developed technology 11,700 (11,700 ) — 7 years Trademarks and trade names 400 (400 ) — 7 years Total intangible assets $ 15,000 $ (14,597 ) $ 403
Schedule of approximate amortization expense for intangibles subject to amortization	ore technology of $0.1 million will be fully amortized in 2016.

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
Schedule of accrued expenses	Accrued expenses consist of the following (in thousands): December 31, 2015 2014 Compensation and benefits $ 11,944 $ 8,909 Accrued operating expenses 14,984 12,094 Accrued royalties 3,731 3,213 Accrued interest 1,605 1,625 Product returns, rebates and other fees 3,111 2,470 Total $ 35,375 $ 28,311

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of composition of the Company's debt and financing obligations	The composition of the Company’s debt and financing obligations is as follows (in thousands): December 31, 2015 2014 Debt: Convertible senior notes $ 118,533 $ 120,000 Discount on debt (12,605 ) (16,900 ) Total debt, net of discount 105,928 103,100 Royalty interest obligation — 276 Total debt and financing obligations $ 105,928 $ 103,376
Schedule of total interest expense recognized related to the Notes	The following table sets forth the total interest expense recognized by the Company (in thousands): Year Ended December 31, 2015 2014 2013 Contractual interest expense $ 3,856 $ 3,900 $ 3,833 Amortization of debt issuance costs 615 620 593 Amortization of debt discount 4,102 4,139 3,959 Capitalized interest (848 ) (381 ) (1,132 ) Total $ 7,725 $ 8,278 $ 7,253 Effective interest rate on the Notes 7.21 % 7.22 % 7.22 %

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Schedule of carrying amount and fair value of the long-term debt	The carrying amount and fair value of the Notes are as follows (in thousands): Carrying Fair Value Measurements Using Financial Liabilities Carried at Historical Cost Level 1 Level 2 Level 3 December 31, 2015 Convertible senior notes * $ 105,928 $ — $ 369,971 $ — * The fair value of the Notes was based on the Company’s closing stock price of $76.79 per share at December 31, 2015 compared to a conversion price of $24.82 per share which, if converted, would result in an approximate conversion premium of 3.2 million shares or $248 million of cash. The maximum conversion premium that can be due on the Notes is 4.8 million shares, which assumes no increases in the conversion rate for certain corporate events.
Schedule of short-term investments	The following summarizes the Company’s investments at December 31, 2015 and 2014 (in thousands): December 31, 2015 Cost Gross Gross Fair Value Debt securities: Short-term: Asset-backed securities $ 27,484 $ — $ (15 ) $ 27,469 Commercial paper 35,191 31 — 35,222 Corporate bonds 39,319 2 (31 ) 39,290 Subtotal 101,994 33 (46 ) 101,981 Long-term: Corporate bonds 13,501 — (39 ) 13,462 Total $ 115,495 $ 33 $ (85 ) $ 115,443 December 31, 2014 Cost Gross Gross Fair Value Debt securities: Short-term: Asset-backed securities $ 15,009 $ — $ (9 ) $ 15,000 Commercial paper 1,747 3 — 1,750 Corporate bonds 102,430 — (42 ) 102,388 Subtotal 119,186 3 (51 ) 119,138 Long-term: Corporate bonds 24,463 10 (42 ) 24,431 Total $ 143,649 $ 13 $ (93 ) $ 143,569

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Schedule of accumulated other comprehensive income	Accumulated Other Comprehensive Income (Loss) The following table illustrates the changes in the balances of the Company’s accumulated other comprehensive income (loss) (in thousands): Net Unrealized Gains (Losses) From Available For Sale Investments Balance at December 31, 2013 $ 5 Other comprehensive loss before reclassifications (85 ) Amounts reclassified from accumulated other comprehensive income (loss) — Balance at December 31, 2014 (80 ) Other comprehensive loss before reclassifications 28 Amounts reclassified from accumulated other comprehensive income (loss) — Balance at December 31, 2015 $ (52 )

STOCK PLANS (Tables)

STOCK PLANS (Tables)	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of information about the plans	The following table contains information about the Company’s plans at December 31, 2015 : Stock Incentive Plans Awards Reserved for Issuance Awards Issued Awards Available for Grant 2007 Plan 2,022,837 2,022,837 — 2011 Plan 5,931,700 5,213,023 718,677 2014 Inducement plan 175,000 67,000 108,000 8,129,537 7,302,860 826,677 Employee Stock Purchase Plan Shares Reserved for Purchase Shares Purchased Shares Available for Purchase 2014 ESPP 500,000 50,700 449,300
Schedule of recognized stock-based compensation in consolidated statements of operations	Year Ended December 31, 2015 2014 2013 Cost of goods sold $ 6,012 $ 3,582 $ 1,526 Research and development 5,134 6,490 4,345 Selling, general and administrative 22,222 14,750 5,642 Total $ 33,368 $ 24,822 $ 11,513 Stock-based compensation from: Stock options (employee awards) $ 27,262 $ 19,182 $ 7,133 Stock options (consultant awards) 2,367 5,295 4,380 RSUs 2,887 — — ESPP 852 345 — Total $ 33,368 $ 24,822 $ 11,513
Schedule of the Company's stock option activity and related information	The following table summarizes the Company’s stock option activity and related information for the period from January 1, 2013 to December 31, 2015 : Number of Weighted Weighted Average Aggregate Outstanding at January 1, 2013 4,003,166 $ 7.86 8.66 $ 38,485 Granted 918,915 30.42 Exercised (742,211 ) 5.19 $ 21,679 Forfeited (338,145 ) 10.93 Expired (1,687 ) 7.24 Outstanding at December 31, 2013 3,840,038 13.50 8.01 $ 168,905 Granted 1,638,575 79.68 Exercised (624,229 ) 11.60 $ 45,289 Forfeited (175,967 ) 44.32 Expired (561 ) 21.70 Outstanding at December 31, 2014 4,677,856 35.78 7.86 $ 248,276 Granted 906,706 75.35 Exercised (618,434 ) 16.29 $ 39,401 Forfeited (294,880 ) 64.29 Expired (25,526 ) 81.94 Outstanding at December 31, 2015 4,645,722 $ 44.03 7.31 $ 162,340 Exercisable at December 31, 2015 2,618,881 $ 26.08 6.32 $ 135,576 Vested and expected to vest at December 31, 2015 4,499,941 $ 43.08 7.26 $ 161,272
Schedule of weighted average assumptions used to estimate the fair values of each option grant using the Black-Scholes option pricing model	The fair values of stock options granted were estimated using the Black-Scholes model with the following weighted average assumptions: Year Ended December 31, 2015 2014 2013 Expected dividend yield None None None Risk free interest rate 1.40 - 2.28% 0.02 - 2.16% 0.33 - 2.83% Expected volatility 52.9% 57.2% 68.7% Expected term of options 5.76 years 5.86 years 6.22 years

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Schedule of computation of basic and diluted loss per share	The following table sets forth the computation of basic and diluted net income (loss) per share for the years ended December 31, 2015 , 2014 and 2013 (in thousands except per share amounts): Year Ended December 31, 2015 2014 2013 Numerator: Net income (loss) $ 1,856 $ (13,716 ) $ (63,909 ) Denominator: Weighted average shares of common stock outstanding—basic 36,540 35,299 33,182 Computation of diluted securities: Dilutive effect of stock options 1,638 — — Dilutive effect of RSUs 3 — — Dilutive effect of conversion premium on the Notes 3,113 — — Dilutive effect of warrants 6 — — Dilutive effect of ESPP 1 — — Weighted average shares of common stock outstanding—diluted 41,301 35,299 33,182 Net income (loss) per share: Basic net income (loss) per share of common stock $ 0.05 $ (0.39 ) $ (1.93 ) Diluted net income (loss) per share of common stock $ 0.04 $ (0.39 ) $ (1.93 )
Schedule of potential dilutive effect of the securities excluded from the calculation of diluted loss per share	Year Ended December 31, 2015 2014 2013 Weighted average number of stock options 1,891 3,534 3,980 Weighted average number of RSUs 99 — — Conversion premium on the Notes — 2,483 1,194 Weighted average number of warrants — 21 204 Weighted average purchase options under ESPP 8 1 — Total 1,998 6,039 5,378

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of reconciliation of income taxes at the U.S. Federal statutory rate to the provision for income taxes	A reconciliation of income taxes at the U.S. federal statutory rate to the provision for income taxes is as follows: Year Ended December 31, 2015 2014 2013 U.S. federal statutory rate 35.00 % 35.00 % 35.00 % State taxes 0.71 % (32.62 )% 4.79 % Foreign taxes 12.03 % (0.13 )% — % Increase (decrease) in valuation allowance 10.32 % (17.71 )% (42.91 )% Stock-based compensation 7.26 % (0.44 )% 1.72 % Tax credits (30.63 )% 5.49 % 1.69 % Interest expense (37.57 )% 10.68 % 0.30 % Other permanent items 15.33 % (1.55 )% 0.10 % Effective tax rate 12.45 % (1.28 )% 0.69 %
Schedule of significant components of the Company's deferred tax assets	Significant components of the Company’s deferred tax assets and liabilities at December 31, 2015 and 2014 are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Net operating loss carry-forwards $ 101,011 $ 111,086 Federal and state research credits 7,140 6,043 Depreciation and amortization 1,310 3,494 Accruals and reserves 5,558 3,861 Deferred revenue 3,530 4,065 Stock based compensation 17,201 8,487 Other 1,045 588 Total deferred tax assets 136,795 137,624 Deferred tax liabilities: Discount on convertible senior notes (4,679 ) (6,283 ) 132,116 131,341 Less: valuation allowance (132,116 ) (131,341 ) Net deferred tax assets $ — $ —

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of annual minimum payments due under the Company's lease obligations	As of December 31, 2015 , the aggregate annual minimum payments due under the Company’s lease obligations are as follows (in thousands): Year Annual Minimum Payments Due 2016 $ 7,743 2017 7,878 2018 8,081 2019 8,303 2020 6,420 2021 through 2028 8,731 Total $ 47,156

SELECTED QUARTERLY FINANCIAL 39

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Financial Data	The following table presents selected quarterly financial data for the years ended December 31, 2015 and 2014 (in thousands, except per share data): Three Months Ended March 31, June 30, September 30, December 31, Total revenues $ 58,316 $ 59,148 $ 62,213 $ 69,320 Cost of goods sold 17,580 18,929 15,901 19,427 Total operating expenses 54,975 57,330 57,104 70,133 Net income (loss) 1,260 8 3,086 (2,498 ) Basic and diluted net income (loss) per common share $ 0.03 $ 0.00 $ 0.08 $ (0.07 ) Three Months Ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 Total revenues $ 36,662 $ 47,165 $ 52,048 $ 61,793 Cost of goods sold 18,127 19,954 20,391 18,968 Total operating expenses 45,920 50,007 53,033 53,873 Net income (loss) (11,477 ) (5,037 ) (3,004 ) 5,802 Basic net income (loss) per common share $ (0.34 ) $ (0.14 ) $ (0.08 ) $ 0.16 Diluted net income (loss) per common share $ (0.34 ) $ (0.14 ) $ (0.08 ) $ 0.14 For periods where the Company reported a net loss, no potentially dilutive securities were included in the computation of diluted net loss per share.

SUMMARY OF SIGNIFICANT ACCOUN40

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Jan. 23, 2013	Dec. 31, 2015
Liquidity
Estimated conversion value		$ 248,000,000
Shares issuable upon conversion		3,200,000
Revenue Recognition
Beginning period prior to product expiration allowed for the product to be returned		6 months
Period following product expiration upto which the product is allowed to be returned		12 months
Notes
Liquidity
Stated interest rate (as a percent)	3.25%	3.25%
Proceeds from Issuance of Debt	$ 118,500,000

SUMMARY OF SIGNIFICANT ACCOUN41

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning of Period	$ 3,043,000	$ 1,878,000	$ 393,000
Accruals	10,746,000	8,323,000	4,029,000
Payments (Credits)		(7,158,000)
End of Period		3,043,000	1,878,000
Accrued rebates and chargebacks
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning of Period	321,000	402,000
Accruals		881,000
Payments (Credits)	(1,544,000)		(299,000)
End of Period	797,000	321,000	402,000
Accrued returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning of Period	1,559,000
Accruals	339,000	829,000	802,000
Payments (Credits)		(167,000)	(39,000)
End of Period		1,559,000
Accrued wholesaler service fees
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning of Period	588,000	266,000
Payments (Credits)			(880,000)
End of Period	745,000	588,000	266,000
Subtotal
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning of Period		1,565,000
Accruals		4,490,000
Payments (Credits)	(5,034,000)
End of Period			1,565,000
Reserves for prompt pay discounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning of Period	575,000	313,000
Payments (Credits)		(3,571,000)
End of Period		575,000	313,000
Reserves for chargebacks
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning of Period	0	300,000
End of Period	$ 200,000	$ 0	$ 300,000

SUMMARY OF SIGNIFICANT ACCOUN42

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Restricted Cash
Amount received in lockbox restricted for payment of royalty interest	$ 2,500,000
Period for making payment from amount received in lockbox restricted for payment of royalty interest	12 months
Net revenue | Customer concentration
Concentration of Major Customers
Percentage of revenue from customers to total revenue	90.00%	86.00%	79.00%
Net revenue | Customer concentration | Largest customer
Concentration of Major Customers
Percentage of revenue from customers to total revenue	33.00%	33.00%	33.00%
Net revenue | Customer concentration | Second largest customer
Concentration of Major Customers
Percentage of revenue from customers to total revenue	29.00%	29.00%	28.00%
Net revenue | Customer concentration | Third largest customer
Concentration of Major Customers
Percentage of revenue from customers to total revenue	28.00%	24.00%	18.00%
Net revenue | Customer concentration | Customers outside U.S.
Concentration of Major Customers
Percentage of revenue from customers to total revenue	2.00%	2.00%	5.00%

SUMMARY OF SIGNIFICANT ACCOUN43

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) $ in Millions	1 Months Ended	12 Months Ended
	Feb. 28, 2013USD ($)	Dec. 31, 2015segment
Income Taxes
Amount received from sale of unused net operating losses | $	$ 0.4
Segment Reporting
Number of reportable segments | segment		1
Manufacturing and laboratory equipment | Minimum
Fixed Assets
Useful life		5 years
Manufacturing and laboratory equipment | Maximum
Fixed Assets
Useful life		10 years
Computer equipment and software | Minimum
Fixed Assets
Useful life		1 year
Computer equipment and software | Maximum
Fixed Assets
Useful life		3 years
Office furniture and equipment
Fixed Assets
Useful life		5 years

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 16,712	$ 9,263
Work-in-process	12,152	8,617
Finished goods	32,781	11,383
Total	$ 61,645	$ 29,263

FIXED ASSETS (Details)

FIXED ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
FIXED ASSETS
Total	$ 115,241	$ 80,746
Less accumulated depreciation	(24,917)	(20,114)
Fixed assets, net	90,324	60,632
Depreciation expense	11,200	9,300	$ 3,700
Capitalized interest	800	400	$ 1,100
Foreign Property, Plant and Equipment, Net	25,900
Asset Retirement Obligation	600
Manufacturing and laboratory equipment
FIXED ASSETS
Total	29,864	29,697
Computer equipment and software
FIXED ASSETS
Total	4,007	3,754
Office furniture and equipment
FIXED ASSETS
Total	1,439	1,001
Leasehold improvements
FIXED ASSETS
Total	30,834	26,350
Construction in progress
FIXED ASSETS
Total	$ 49,097	$ 19,944

GOODWILL AND INTANGIBLE ASSET46

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($)	1 Months Ended	12 Months Ended
	Apr. 30, 2012	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2014
Goodwill
Payment obligation arising in connection with the acquisition	$ 10,000,000
Contingent consideration liability recognized at the time of the acquisition	2,000,000
Goodwill recorded in connection with the acquisition	$ 8,000,000
Goodwill [Roll Forward]
Beginning balance		$ 23,761,000	$ 10,328,000
Goodwill Recorded on Milestone Payments			8,000,000
Milestone payment triggered by collections of net sales of EXPAREL		7,119,000	5,433,000
Ending balance		30,880,000	$ 23,761,000
Total Goodwill Recorded for Earn Out Payments		14,900,000
Upon first commercial sale in the United States
Goodwill
Milestone payments for EXPAREL agreed in connection with acquisition		10,000,000
Upon first commercial sale in a major EU country (United Kingdom, France, Germany, Italy and Spain)
Goodwill
Milestone payments for EXPAREL agreed in connection with acquisition		4,000,000
When annual net sales collected reach $100.0 million
Goodwill
Payment Obligation Arising Due to Net Sales Collected Threshold of $100 Million				$ 8,000,000
Milestone payments for EXPAREL agreed in connection with acquisition		8,000,000
Annual net sales threshold		100,000,000
Goodwill [Roll Forward]
Net Sales Collected Threshold Which Triggers a Payment Obligation				$ 100,000,000
When annual net sales collected reach $250.0 million
Goodwill
Milestone payments for EXPAREL agreed in connection with acquisition		8,000,000
Annual net sales threshold		250,000,000
When annual net sales collected reach $500.0 million
Goodwill
Milestone payments for EXPAREL agreed in connection with acquisition		32,000,000
Annual net sales threshold		$ 500,000,000

GOODWILL AND INTANGIBLE ASSET47

GOODWILL AND INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Intangible Assets
Gross amount	$ 15,000	$ 15,000
Accumulated amortization	(14,919)	(14,597)
Intangibles, net	81	403
Amortization expense for intangibles	300	800	$ 2,100
Approximate amortization expense for intangibles
Intangibles, net	81	403
Core Technology
Intangible Assets
Gross amount	2,900	2,900
Accumulated amortization	(2,819)	(2,497)
Intangibles, net	$ 81	$ 403
Estimated Useful Life	9 years	9 years
Approximate amortization expense for intangibles
2,014	$ 100
Intangibles, net	81	$ 403
Developed Technology
Intangible Assets
Gross amount	11,700	11,700
Accumulated amortization	(11,700)	(11,700)
Intangibles, net	$ 0	$ 0
Estimated Useful Life	7 years	7 years
Approximate amortization expense for intangibles
Intangibles, net	$ 0	$ 0
Trademarks and trade names
Intangible Assets
Gross amount	400	400
Accumulated amortization	(400)	(400)
Intangibles, net	$ 0	$ 0
Estimated Useful Life	7 years	7 years
Approximate amortization expense for intangibles
Intangibles, net	$ 0	$ 0

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Compensation and benefits	$ 11,944	$ 8,909
Accrued operating expenses	14,984	12,094
Accrued royalties	3,731	3,213
Accrued interest	1,605	1,625
Product returns, rebates and other fees	3,111	2,470
Total	$ 35,375	$ 28,311

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2013	Dec. 31, 2014
Debt Disclosure [Abstract]
Conversion Request Convertible Senior Notes	$ 1,500
Debt:
Current portion of long-term debt	118,533		$ 120,000
Discount on debt	(12,605)		(16,900)
Total debt, net of debt discount	105,928		103,100
Royalty Interest Obligation	0		276
Total debt and financing obligations	$ 105,928		$ 103,376
Debt Instrument, Convertible, Conversion Premium, Shares	44,287
Settlement Period - Convertible Debt Conversion Request	40 days
Loss on early extinguishment of debt	$ 52	$ 3,398

DEBT (Details 2)

DEBT (Details 2)	Jan. 23, 2013USD ($)	Jan. 23, 2013USD ($)	Jan. 31, 2013USD ($)	May. 31, 2012USD ($)	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / shares	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2000USD ($)product	Jan. 16, 2013	May. 02, 2012shares
Debt disclosures
Loss on early extinguishment of debt						$ 52,000		$ 3,398,000
Estimated conversion value					$ 248,000,000	248,000,000
Debt Conversion, Converted Instrument, Shares Issued | shares					3,200,000
Interest Expense, Debt [Abstract]
Amortization of debt discount						4,102,000	$ 4,139,000	3,959,000
Interest Costs Capitalized						800,000	400,000	1,100,000
Oxford Loan Facility
Debt Instrument, Unamortized Discount					$ 12,605,000	$ 12,605,000	16,900,000
Number of shares exercisable for warrants issued to holders of the debt | shares											162,885
Affiliate of Paul Capital
Assumptions used in determining fair value of the warrants
Amount to be raised									$ 30,000,000
Number of product sales on which there is a right to receive royalty interest | product									4
Notes
Financing obligations:
Gross Proceeds From Issuance of Debt		$ 120,000,000
Debt disclosures
Debt issued in private offering	$ 118,500,000
Stated interest rate (as a percent)	3.25%	3.25%			3.25%	3.25%
Net proceeds from private placement of debt		$ 115,300,000
Principal amount used for debt instrument conversion ratio					$ 1,000	$ 1,000
Initial conversion rate of common stock per $1000 of principal amount of Notes (in shares)						40.2945
Initial conversion price of notes into common stock (in dollars per share) | $ / shares					$ 24.82	$ 24.82
Premium on sale price to calculate conversion price of notes (as a percent)										32.50%
Debt Redemption Price Due to Fundamental Change as Percentage of Principal Amount						100.00%
In event of default, the percentage of principal amount due and payable						100.00%
Liability component of convertible debt					$ 95,100,000	$ 95,100,000
Total transaction costs related to the issuance of Notes		$ 4,700,000
Term of Notes		6 years
Interest Expense, Debt [Abstract]
Contractual interest expense						3,856,000	3,900,000	3,833,000
Amortization of debt issuance costs						615,000	620,000	593,000
Amortization of debt discount						4,102,000	4,139,000	3,959,000
Interest Costs Capitalized						(848,000)	(381,000)	(1,132,000)
Total interest expense recognized						$ 7,725,000	$ 8,278,000	$ 7,253,000
Effective interest rate (as a percent)						7.21%	7.22%	7.22%
Notes | Conversion terms business day immediately preceding August 1, 2018
Debt disclosures
Minimum number of days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price for the notes to be convertible						20 days
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days in order for the notes to be convertible						30 days
Percentage of the conversion price that the closing sales price of the entity's common stock must exceed in order for the notes to be convertible						130.00%
Number of consecutive business days immediately after any five consecutive trading day period during the note measurement period						5 days
Number of consecutive trading days before five consecutive business days during the note measurement period						5 days
Principal amount used for debt instrument conversion ratio					1,000	$ 1,000
Percentage of the trading price to the product of the last reported sale price of the entity's common stock and the conversion rate						98.00%
Market price per $1000 of principal amount of notes					3,121	$ 3,121
Estimated conversion value					$ 3,094	$ 3,094
Notes | Debt redemption terms on or after February 1, 2017
Debt disclosures
Minimum number of days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price for the notes to be convertible						20 days
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days in order for the notes to be convertible						30 days
Percentage of the conversion price that the closing sales price of the entity's common stock must exceed in order for the notes to be convertible						130.00%
Number of trading days prior to the date on which the company provides notice of redemption during which the closing price of the entity's common stock must exceed the conversion price for the notes to be redeemed						5 days
Redemption price as percentage of principal amount of notes plus accrued and unpaid interest plus make-whole premium payment						100.00%
Assumptions used in determining fair value of the warrants
Discount rate (as a percent)						2.00%
Oxford Loan Facility
Debt disclosures
Debt issued in private offering				$ 27,500,000
Stated interest rate (as a percent)											9.75%
Repayment of remaining principal amount of debt		$ 27,500,000
End of term charge on early termination		1,700,000
Prepayment fees on early termination		800,000
Repayment of accrued interest		200,000
Loss on early extinguishment of debt		$ 3,400,000	$ 3,400,000

FINANCIAL INSTRUMENTS (Details)

FINANCIAL INSTRUMENTS (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
		Dec. 31, 2015	Apr. 30, 2014	Jan. 16, 2013
Fair Value Measurements
Price per share (in dollars per share)		$ 76.79	$ 64
Debt Instrument, Convertible, Conversion Premium, Shares		3,200,000
Estimated conversion value		$ 248,000
Level 1
Fair Value Measurements
Long-term debt-current and long-term	[1]	0
Level 2
Fair Value Measurements
Long-term debt-current and long-term	[1]	369,971
Level 3
Fair Value Measurements
Long-term debt-current and long-term	[1]	$ 0
Notes
Fair Value Measurements
Price per share (in dollars per share)				$ 18.73
Initial conversion price of notes into common stock (in dollars per share)		$ 24.82
Maximum
Fair Value Measurements
Debt Instrument, Convertible, Conversion Premium, Shares		4,800,000
Carrying Value
Fair Value Measurements
Long-term debt-current and long-term	[1]	$ 105,928
[1]	The fair value of the Notes was based on the Company’s closing stock price of $76.79 per share at December 31, 2015 compared to a conversion price of $24.82 per share which, if converted, would result in an approximate conversion premium of 3.2 million shares or $248 million of cash. The maximum conversion premium that can be due on the Notes is 4.8 million shares, which assumes no increases in the conversion rate for certain corporate events.

FINANCIAL INSTRUMENTS (Details

FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value Measurements
Cost	$ 115,495	$ 143,649
Gross Unrealized Gains	33	13
Gross Unrealized Losses	(85)	(93)
Level 2
Fair Value Measurements
Fair Value	115,443	143,569
Short-term Investments [Member]
Fair Value Measurements
Cost	101,994	119,186
Gross Unrealized Gains	33	3
Gross Unrealized Losses	(46)	(51)
Short-term Investments [Member] | Level 2
Fair Value Measurements
Fair Value	101,981	119,138
Short-term Investments [Member] | Asset-backed Securities
Fair Value Measurements
Cost	27,484	15,009
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(15)	(9)
Short-term Investments [Member] | Asset-backed Securities | Level 2
Fair Value Measurements
Fair Value	27,469	15,000
Short-term Investments [Member] | Commercial Paper
Fair Value Measurements
Cost	35,191	1,747
Gross Unrealized Gains	31	3
Gross Unrealized Losses	0	0
Short-term Investments [Member] | Commercial Paper | Level 2
Fair Value Measurements
Fair Value	35,222	1,750
Short-term Investments [Member] | Corporate bonds
Fair Value Measurements
Cost	39,319	102,430
Gross Unrealized Gains	2	0
Gross Unrealized Losses	(31)	(42)
Short-term Investments [Member] | Corporate bonds | Level 2
Fair Value Measurements
Fair Value	39,290	102,388
Long-Term Investments [Member] | Corporate bonds
Fair Value Measurements
Cost	13,501	24,463
Gross Unrealized Gains	0	10
Gross Unrealized Losses	(39)	(42)
Long-Term Investments [Member] | Corporate bonds | Level 2
Fair Value Measurements
Fair Value	$ 13,462	$ 24,431

FINANCIAL INSTRUMENTS (Detail53

FINANCIAL INSTRUMENTS (Details 3) - customer	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Credit Risk
Number of major customers	3	3
Accounts receivable | Credit risk | Major customer one
Credit Risk
Concentration risk (as a percent)	34.00%	33.00%
Accounts receivable | Credit risk | Major customer two
Credit Risk
Concentration risk (as a percent)	28.00%	29.00%
Accounts receivable | Credit risk | Major customer three
Credit Risk
Concentration risk (as a percent)	27.00%	27.00%

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Apr. 30, 2014	Dec. 31, 2015	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
Common stock, shares authorized		250,000,000	250,000,000
Common stock, shares outstanding		36,848,319	36,150,620
Stock Issued During Period, Shares, New Issues	1,840,000
Price per share (in dollars per share)	$ 64	$ 76.79
Proceeds from Issuance Initial Public Offering	$ 110.5
Preferred stock, shares authorized		5,000,000	5,000,000
Warrants
Warrants outstanding (in shares)		7,216	7,216
Exercise price per share (in dollars per share)		$ 13.44	$ 13.44

STOCKHOLDERS' EQUITY (Details 2

STOCKHOLDERS' EQUITY (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances at the beginning of the period	$ (80)
Balances at the end of the period	(52)	$ (80)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances at the beginning of the period	(80)	5
Other comprehensive loss before reclassifications	28	(85)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Balances at the end of the period	$ (52)	$ (80)

STOCK PLANS (Details)

STOCK PLANS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Apr. 30, 2014
Stock Incentive Plans
Awards Reserved for Issuance (in shares)	8,129,537
Awards Issued (in shares)	7,302,860
Awards Available for Grant (in shares)	826,677
Employee Stock Purchase Plan, Number of Shares Authorized	500,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans	50,700
Employee Stock Purchase Plan (ESPP), Shares in ESPP	500,000
Maximum Fair Market Value Purchase of ESPP Shares	$ 25,000
Employee Stock Purchase Plan fair value	85.00%
Employee Stock Purchase Plan, Number of Shares Available For Purchase	449,300
Two Thousand Seven Stock Incentive Plan [Member]
Stock Incentive Plans
Awards Reserved for Issuance (in shares)	2,022,837
Awards Issued (in shares)	2,022,837
Awards Available for Grant (in shares)	0
Stock Incentive Plan 2011 [Member]
Stock Incentive Plans
Awards Reserved for Issuance (in shares)	5,931,700
Awards Issued (in shares)	5,213,023
Awards Available for Grant (in shares)	718,677
Inducement Plan 2014 [Member]
Stock Incentive Plans
Awards Reserved for Issuance (in shares)	175,000	175,000
Awards Issued (in shares)	67,000
Awards Available for Grant (in shares)	108,000
Restricted Stock Units (RSUs) [Member]
Stock Incentive Plans
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 14,100,000

STOCK PLANS (Details 2)

STOCK PLANS (Details 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-Based Compensation
Stock-based compensation expense	$ 33,368	$ 24,822	$ 11,513
Compensation expense from stock options, employees	27,262	19,182	7,133
Compensation expense from stock options, non-employee awards	2,367	5,295	4,380
Restricted Stock or Unit Expense	2,887	0	0
Compensation expense from employee stock purchase plan	852	345	0
Stock-based compensation	33,368	24,822	11,513
Cost of revenues
Share-Based Compensation
Stock-based compensation expense	6,012	3,582	1,526
Research and development
Share-Based Compensation
Stock-based compensation expense	5,134	6,490	4,345
Selling, general and administrative
Share-Based Compensation
Stock-based compensation expense	$ 22,222	$ 14,750	$ 5,642
Stock options
Share-Based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	4,645,722	4,677,856	3,840,038	4,003,166
Stock-based compensation expense	$ 600	$ 200
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 44.03	$ 35.78	$ 13.50	$ 7.86
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	7 years 3 months 21 days	7 years 10 months 11 days	8 years 3 days	8 years 7 months 28 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 162,340	$ 248,276	$ 168,905	$ 38,485
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	906,706	1,638,575	918,915
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 75.35	$ 79.68	$ 30.42
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	618,434	624,229	742,211
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 16.29	$ 11.60	$ 5.19
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 39,401	$ 45,289	$ 21,679
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	294,880	175,967	338,145
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ 64.29	$ 44.32	$ 10.93
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	25,526	561	1,687
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ 81.94	$ 21.70	$ 7.24
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	2,618,881
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 26.08
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	6 years 3 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 135,576
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	4,499,941
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 43.08
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	7 years 3 months 3 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	$ 161,272

STOCK PLANS (Details 3)

STOCK PLANS (Details 3) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			12 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Stock Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding				$ 16,602	$ 0
Weighted average assumptions used to estimate the fair values of each option grant
Share-based Compensation arrangement by Share-based payment award, equity instruments others than options, vested and expected to vest, weighted average grant date fair value				$ 78.61
share-based compensation arrangement by share-based payment award, equity instruments other than options, vested and expected to vest, aggregate intrinsic value				$ 14,920
Employee Stock Option [Member]
Stock Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum				1.40%	0.02%	0.33%
Number of Shares
Balance at the beginning of the period (in shares)		4,677,856		4,677,856	3,840,038	4,003,166
Granted (in shares)				906,706	1,638,575	918,915
Exercised (in shares)				(618,434)	(624,229)	(742,211)
Forfeited (in shares)				(294,880)	(175,967)	(338,145)
Expired (in shares)				(25,526)	(561)	(1,687)
Balance at the end of the period (in shares)				4,645,722	4,677,856	3,840,038	4,003,166
Exercisable at the end of the period (in shares)				2,618,881
Vested and expected to vest at the end of the period (in shares)				4,499,941
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share)		$ 35.78		$ 35.78	$ 13.50	$ 7.86
Granted (in dollars per share)				75.35	79.68	30.42
Exercised (in dollars per share)				16.29	11.60	5.19
Forfeited (in dollars per share)				64.29	44.32	10.93
Expired (in dollars per share)				81.94	21.70	7.24
Balance at the end of the period (in dollars per share)				44.03	$ 35.78	$ 13.50	$ 7.86
Exercisable at the end of the period (in dollars per share)				26.08
Vested and expected to vest at the end of the period (in dollars per share)				$ 43.08
Weighted Average remaining contractual term
Balance at the end of the period				7 years 3 months 21 days	7 years 10 months 11 days	8 years 3 days	8 years 7 months 28 days
Exercisable at the end of the period				6 years 3 months 24 days
Vested and expected to vest at the end of the period				7 years 3 months 3 days
Aggregate intrinsic value
Balance at the beginning of the period (in dollars)		$ 248,276		$ 248,276	$ 168,905	$ 38,485
Exercised (in dollars)				39,401	45,289	21,679
Balance at the end of the period (in dollars)				162,340	$ 248,276	$ 168,905	$ 38,485
Exercisable at the end of the period (in dollars)				135,576
Vested and expected to vest at the end of the period (in dollars)				161,272
Additional disclosures
Unrecognized compensation cost related to non-vested stock options (in dollars)				$ 66,300
Weighted average contractual term of the unrecognized stock-based compensation				2 years 8 months 28 days
Weighted average fair value of options granted (in dollars per share)				$ 37.82	$ 42.62	$ 19.22
Weighted average assumptions used to estimate the fair values of each option grant
Risk free interest rate, maximum (as a percent)				2.28%	2.20%	2.80%
Expected volatility (as a percent)				52.90%	57.20%	68.70%
Expected life of options				5 years 9 months 3 days	5 years 10 months 11 days	6 years 2 months 19 days
Restricted Stock Units (RSUs) [Member]
Stock Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number				216,198	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value				$ 78.59	$ 0
Additional disclosures
Weighted average contractual term of the unrecognized stock-based compensation				3 years 4 months 24 days
Weighted average assumptions used to estimate the fair values of each option grant
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				232,046
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value				$ 78.65
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period				0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value				$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period				(15,848)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value				$ 79.43
Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest				194,290
Stock options
Additional disclosures
Weighted average fair value of options granted (in dollars per share)	$ 21.93	$ 25.24	$ 23.27
Weighted average assumptions used to estimate the fair values of each option grant
Expected volatility (as a percent)	58.20%	45.00%	28.20%
Expected life of options	6 months	6 months	4 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	0.10%	0.10%	0.40%

NET INCOME (LOSS) PER SHARE (De

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Numerator:
Net income (loss)	$ (2,498)	$ 3,086	$ 8	$ 1,260	$ 5,802	$ (3,004)	$ (5,037)	$ (11,477)	$ 1,856	$ (13,716)	$ (63,909)
Basic and diluted net loss per share of common stock (in dollars per share)	$ (0.07)	$ 0.08	$ 0	$ 0.03
Weighted Average Number of Shares Outstanding, Basic									36,540	35,299	33,182
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements									1,638	0	0
Incremental Common Shares Attributable to Dilutive Effect of Restricted Stock Units									3	0	0
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities									3,113	0	0
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants									6	0	0
Incremental Common Shares Attributable to Dilutive Effect of Equity Unit Purchase Agreements									1	0	0
Weighted Average Number of Shares Outstanding, Diluted									41,301	35,299	33,182
Earnings Per Share, Basic					$ 0.16	$ (0.08)	$ (0.14)	$ (0.34)	$ 0.05	$ (0.39)	$ (1.93)
Earnings Per Share, Diluted					$ 0.14	$ (0.08)	$ (0.14)	$ (0.34)	$ 0.04	$ (0.39)	$ (1.93)

NET INCOME (LOSS) PER SHARE (60

NET INCOME (LOSS) PER SHARE (Details 2) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive effect of securities (in shares)	1,998	6,039	5,378
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive effect of securities (in shares)	1,891	3,534	3,980
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive effect of securities (in shares)	99	0	0
Convertible debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive effect of securities (in shares)	0	2,483	1,194
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive effect of securities (in shares)	0	21	204
Employee Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive effect of securities (in shares)	8	1	0

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Income Tax Provision [Line Items]
Income (Loss) from Continuing Operations before Income Taxes, Domestic	$ 4,033	$ (13,271)	$ (64,351)
Income (Loss) from Continuing Operations before Income Taxes, Foreign	(1,913)	(272)	0
Income (Loss) from Continuing Operations before Income Taxes, Total	2,120	(13,543)	(64,351)
Current Federal Tax Expense (Benefit)	(92)	0	0
Current State and Local Tax Expense (Benefit)	(172)	(173)	442
Income Tax Expense (Benefit)	$ (264)	(173)	$ 442
Uncertain Tax Position Recognition Threshold	50.00%
Income Tax Provision	$ 300	$ 200
Non-US Net Operating Loss	$ 2,200
Minimum Cumulative Percentage of Change in Ownership as Condition to Offset Taxable Income or Tax	50.00%
Reconciliation of income taxes at U.S. Federal statutory rate to the provision for income taxes
Benefit at U.S. Federal statutory rate (as a percent)	35.00%	35.00%	35.00%
State taxes-deferred (as a percent)	0.71%	(32.62%)	4.79%
Effective Income Tax Rate Reconciliation, Foreign	12.03%	(0.13%)	0.00%
Increase in valuation allowance (as a percent)	10.32%	(17.71%)	(42.91%)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount	7.26%	(0.44%)	1.72%
Tax credits (as a percent)	(30.63%)	5.49%	1.69%
Interest expense (as a percent)	(37.57%)	10.68%	0.30%
Other (as a percent)	15.33%	(1.55%)	0.10%
Provision for income taxes (as a percent)	12.45%	(1.28%)	0.69%
Deferred tax assets:
Net operating loss carry-forwards	$ 101,011	$ 111,086
Federal and state research credits	7,140	6,043
Depreciation and amortization	1,310	3,494
Accruals and reserves	5,558	3,861
Deferred revenue	3,530	4,065
Deferred Tax Assets, Stock Based Compensation	17,201	8,487
Other	1,045	588
Total deferred tax assets	136,795	137,624
Discount on convertible senior notes	(4,679)	(6,283)
Net deferred tax assets, before valuation allowance	132,116	131,341
Less: valuation allowance	(132,116)	(131,341)
Net deferred tax assets	0	$ 0
Federal
Income Tax Provision [Line Items]
Net Operating Loss, Subject to Limitation	192,800
Available Net Operating Loss, Subject to Limitation	94,100
Future NOL's Which Will Become Available	26,400
Future NOL's Which Will Become Available (2017)	14,800
Future NOL's Which Will Become Available (2018-2022)	10,300
Future NOL's Which Will Become Available (2015-Onward)	6,000
Research Tax Credit Carryforward [Member] | Federal
Income Tax Provision [Line Items]
Tax Credit Carryforward, Amount	$ 5,100			$ 200

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
INCOME TAXES
Amount received from sale of unused net operating losses	$ 400
Deferred Tax Assets, Valuation Allowance		$ 132,116	$ 131,341
Increase in valuation allowance for deferred tax assets		$ 800	9,900	$ 17,500
Minimum Cumulative Percentage of Change in Ownership as Condition to Offset Taxable Income or Tax		50.00%
NOL carryforwards that relate to stock-based compensation		$ 72,900
Decrease in deferred tax assets		400	400
Federal
INCOME TAXES
Net operating losses		335,000
Federal | Research Tax Credit Carryforward [Member]
INCOME TAXES
Tax Credit Carryforward, Amount		5,100			$ 200
State
INCOME TAXES
Amount received from sale of unused net operating losses			$ 400
Net operating losses		197,900
State | Research Tax Credit Carryforward [Member]
INCOME TAXES
Tax Credit Carryforward, Amount		$ 3,200

OTHER EMPLOYEE BENEFITS (Detail

OTHER EMPLOYEE BENEFITS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Savings Plan
Compensation expense recognized	$ 1.7	$ 1	$ 0.6

COMMERCIAL PARTNERS AND OTHER64

COMMERCIAL PARTNERS AND OTHER AGREEMENTS (Details) - USD ($)	Dec. 05, 2012	Apr. 30, 2014	Dec. 31, 2013	Dec. 31, 2015
Aratana
COMMERCIAL PARTNERS AND OTHER AGREEMENTS
Up-front payment received	$ 1,000,000
Milestone payment received			$ 500,000
Aratana | Maximum | Achievement of development and commercial milestones
COMMERCIAL PARTNERS AND OTHER AGREEMENTS
Milestone payments Company is entitled to receive based on terms of agreement	$ 42,500,000
Patheon [Member]
COMMERCIAL PARTNERS AND OTHER AGREEMENTS
Contract Termination Fee				$ 2,400,000
Initial Term of Manufacturing Supply Agreement		10th
Mundipharma Ltd [Member]
COMMERCIAL PARTNERS AND OTHER AGREEMENTS
Term Extension of 2003 Agreements		P15Y
European Rights Expansion & New Distribution Payment		$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Aug. 31, 2012	Apr. 30, 2012	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
MPM
RELATED PARTY TRANSACTIONS
Due to Related Parties			$ 100	$ 200
MPM | Consulting agreement
RELATED PARTY TRANSACTIONS
Monthly rate payable to related party			$ 21
Percentage of consultant's business time devoted in exchange of monthly fee payable under the consulting agreement			50.00%
Expenses incurred by the entity			$ 300	500	$ 300
MPM | Consulting agreement | Minimum
RELATED PARTY TRANSACTIONS
Monthly rate payable to related party			$ 16
Percentage of consultant's business time devoted in exchange of monthly fee payable under the consulting agreement			50.00%
MPM | Consulting agreement | Maximum
RELATED PARTY TRANSACTIONS
Monthly rate payable to related party			$ 26
Percentage of consultant's business time devoted in exchange of monthly fee payable under the consulting agreement			80.00%
Member of board of directors
RELATED PARTY TRANSACTIONS
Due to Related Parties			$ 100
Member of board of directors | Consulting agreement
RELATED PARTY TRANSACTIONS
Number of shares that can be purchased under option (in shares)	70,000	20,000
Exercise price of shares that can be purchased under option (in dollars per share)	$ 16.67	$ 11.02
Member of board of directors | Consulting agreement | Minimum
RELATED PARTY TRANSACTIONS
Monthly rate payable to related party		$ 5
Member of board of directors | Consulting agreement | Maximum
RELATED PARTY TRANSACTIONS
Monthly rate payable to related party		$ 15
Expenses incurred by the entity			$ 100	$ 100	$ 100

COMMITMENTS AND CONTINGENCIES66

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Leased Assets [Line Items]
Leasehold Improvements, Gross	$ 5,700
Lease Incentive Utilized	4,600
Annual minimum payments due
2,016	7,743
2,017	7,878
2,018	8,081
2,019	8,303
2,020	6,420
2021 through 2028	8,731
Total	47,156
Rent expense	5,700	$ 4,900	$ 4,900
Deferred rent	$ 9,200	$ 4,500

COMMITMENTS AND CONTINGENCIES67

COMMITMENTS AND CONTINGENCIES (Details 2) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase Obligation	$ 0.9
Minimum age of pediatric patients in descending order to study EXPAREL	12 years
Maximum age of pediatric patients in descending order to study EXPAREL	18 years
Age of children to study EXPAREL in pediatric patients	2 years

COMMITMENTS AND CONTINGENCIES68

COMMITMENTS AND CONTINGENCIES (Details 3) - USD ($) $ in Millions	Mar. 21, 2007	Dec. 31, 2015
Commitments
Royalty on sale of product (as a percent)		3.00%
SkyePharma Holding, Inc.
Commitments
Total milestone payments paid		$ 18
SkyePharma Holding, Inc. | Maximum
Commitments
Milestone payments for EXPAREL agreed in connection with acquisition		$ 62
PPI-California
Commitments
Initial purchase price for acquisition	$ 19.6

SELECTED QUARTERLY FINANCIAL 69

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Total revenues	$ 69,320	$ 62,213	$ 59,148	$ 58,316	$ 61,793	$ 52,048	$ 47,165	$ 36,662	$ 248,997	$ 197,668	$ 85,551
Cost of goods sold	19,427	15,901	18,929	17,580	18,968	20,391	19,954	18,127	71,837	77,440	54,772
Total operating expenses	70,133	57,104	57,330	54,975	53,873	53,033	50,007	45,920	239,542	202,833	138,840
Net income (loss)	$ (2,498)	$ 3,086	$ 8	$ 1,260	$ 5,802	$ (3,004)	$ (5,037)	$ (11,477)	$ 1,856	$ (13,716)	$ (63,909)
Earnings Per Share, Basic and Diluted	$ (0.07)	$ 0.08	$ 0	$ 0.03
Earnings Per Share, Basic					$ 0.16	$ (0.08)	$ (0.14)	$ (0.34)	$ 0.05	$ (0.39)	$ (1.93)
Earnings Per Share, Diluted					$ 0.14	$ (0.08)	$ (0.14)	$ (0.34)	$ 0.04	$ (0.39)	$ (1.93)

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Millions	Dec. 31, 2015USD ($)
Subsequent Event [Line Items]
Conversion Request Convertible Senior Notes	$ 1.5