Neos Therapeutics (NEOS) 10-K 15 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Mar. 14, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	Neos Therapeutics, Inc.
Entity Central Index Key	1,467,652
Trading Symbol	neos
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 143.7
Entity Common Stock, Shares Outstanding		22,560,635
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 24,352	$ 90,763
Short-term investments	15,430
Accounts receivable, net of allowances for chargebacks and cash discounts of $950 and $1,039, respectively	6,135	3,903
Inventories	5,767	2,520
Deferred contract sales organization fees	720
Other current assets	2,865	1,058
Total current assets	55,269	98,244
Property and equipment, net	7,076	5,124
Intangible assets, net	15,579	16,672
Other assets	2,218	2,470
Total assets	80,142	122,510
Current Liabilities:
Accounts payable	7,798	4,824
Accrued expenses	5,264	3,141
Deferred revenue	3,662
Current portion of long-term debt	4,921	7,973
Total current liabilities	21,645	15,938
Long-Term Liabilities:
Long-term debt, net of current portion	58,599	26,271
Earnout liability	232	214
Deferred gain on leaseback	40	547
Deferred rent	1,174	1,166
Total long-term liabilities	60,045	28,198
Stockholders' Equity (Deficit):
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued or outstanding at December 31, 2016 and December 31, 2015
Common stock, $0.001 par value, 100,000,000 authorized at December 31, 2016 and December 31, 2015; 16,079,902 and 16,060,996 issued and outstanding, respectively, at December 31, 2016; 16,025,155 and 16,015,958 issued and outstanding, respectively, at December 31, 2015	16	16
Treasury stock, at cost, 18,906 shares at December 31, 2016; 9,917 shares at December 31, 2015	(232)	(171)
Additional paid-in capital	198,787	195,314
Accumulated deficit	(200,118)	(116,785)
Accumulated other comprehensive loss	(1)
Total stockholders' equity (deficit)	(1,548)	78,374
Total liabilities and stockholders' equity (deficit)	$ 80,142	$ 122,510

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED BALANCE SHEETS
Receivables allowance (in dollars)	$ 950	$ 1,039
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	16,079,902	16,025,155
Common stock, outstanding shares	16,060,996	16,015,958
Treasury stock, shares	18,906	9,197

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Product	$ 9,154	$ 3,792	$ 316
Manufacturing			113
Profit sharing			169
Development			160
Net sales	9,154	3,792	758
Cost of Goods Sold	11,437	5,929	3,391
Gross loss	(2,283)	(2,137)	(2,633)
Operating Expenses
Research and development	12,207	11,691	10,574
Selling and marketing expenses	49,291	5,672	229
General and administrative expenses	12,625	7,078	5,036
Loss from operations	(76,406)	(26,578)	(18,472)
Interest expense	(6,937)	(3,721)	(2,520)
Loss on debt extinguishment	(1,187)		(445)
Other income, net	1,215	831	837
Change in fair value of earnout and warrant liabilities	(18)	(1,313)	(249)
Net loss	(83,333)	(30,781)	(20,849)
Preferred stock accretion to redemption value		(1,169)	(1,118)
Preferred stock dividends		(1,221)	(2,185)
Net loss attributable to common stock	$ (83,333)	$ (33,171)	$ (24,152)
Weighted average common shares outstanding
Weighted average common shares outstanding used to compute net loss per share, basic and diluted	16,052,390	7,581,881	876,318
Net loss per share of common stock, basic and diluted
Net loss per share of common stock, basic and diluted:	$ (5.19)	$ (4.38)	$ (27.56)

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Comprehensive loss
Net loss	$ (83,333)	$ (30,781)	$ (20,849)
Other comprehensive loss:
Net unrealized gain on short-term investments	2
Reclassification of gains included in net loss	(3)
Total other comprehensive loss	(1)
Comprehensive loss	$ (83,334)	$ (30,781)	$ (20,849)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Common StockIPO	Common Stock	Treasury Stock	Additional Paid-in CapitalIPO	Additional Paid-in Capital	Accumulated DeficitSeries B Preferred Stock	Accumulated DeficitSeries B-1 Preferred Stock	Accumulated DeficitSeries C Preferred Stock	Accumulated Deficit	Accumulated Other Comprehensive Loss	Series B Preferred Stock	Series B-1 Preferred Stock	Series C Preferred Stock	IPO	Total
Balance, beginning at Dec. 31, 2013		$ 1			$ 4,617				$ (59,462)						$ (54,844)
Balance, beginning (in shares) at Dec. 31, 2013		925,451	(55,905)
Increase (Decrease) in Stockholders Equity
Proceeds from exercise of options and warrants					4										4
Proceeds from exercise of options and warrants (in shares)		13,408
Share-based compensation expense					210										210
Preferred Stock accretion to redemption value						$ (352)	$ (679)	$ (87)			$ (352)	$ (679)	$ (87)
Accrued dividend							(2,185)					(2,185)
Net loss									(20,849)						(20,849)
Balance, ending at Dec. 31, 2014		$ 1			4,831				(83,614)						(78,782)
Balance, ending (in shares) at Dec. 31, 2014		938,859	(55,905)
Increase (Decrease) in Stockholders Equity
Proceeds from exercise of options and warrants					75										75
Proceeds from exercise of options and warrants (in shares)		325,292
Share-based compensation expense					1,181										1,181
Cancellation of treasury stock		(55,905)	55,905
Purchase of treasury stock			$ (171)												(171)
Purchase of treasury stock (in shares)			(9,197)
Preferred Stock accretion to redemption value						$ (192)	(370)	$ (607)			$ (192)	(370)	$ (607)
Accrued dividend							$ (1,221)					$ (1,221)
Conversion of Redeemable Preferred Stock		$ 9			110,767										110,776
Conversion of Redeemable Preferred Stock (in shares)		9,217,983
Cashless exercise of Series C warrants issued with Series C financing					2,842										2,842
Cashless exercise of Series C warrants issued with Series C financing (in shares)		78,926
Reclassification of Series C warrants issued with senior debt					611										611
Net proceeds from issuance of common stock in IPO	$ 6			$ 75,007										$ 75,013
Net proceeds from issuance of common stock in IPO (in shares)	5,520,000
Net loss									(30,781)						(30,781)
Balance, ending at Dec. 31, 2015		$ 16	$ (171)		195,314				(116,785)						78,374
Balance, ending (in shares) at Dec. 31, 2015		16,025,155	(9,197)
Increase (Decrease) in Stockholders Equity
Proceeds from exercise of options and warrants					13										13
Proceeds from exercise of options and warrants (in shares)		54,747
Share-based compensation expense					3,460										3,460
Purchase of treasury stock			$ (61)												(61)
Purchase of treasury stock (in shares)			(9,709)
Net unrealized loss on investments										$ (1)					(1)
Net loss									(83,333)						(83,333)
Balance, ending at Dec. 31, 2016		$ 16	$ (232)		$ 198,787				$ (200,118)	$ (1)					$ (1,548)
Balance, ending (in shares) at Dec. 31, 2016		16,079,902	(18,906)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities:
Net loss	$ (83,333,000)	$ (30,781,000)	$ (20,849,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense	3,460,000	1,181,000	210,000
Depreciation and amortization of property and equipment	1,598,000	1,724,000	1,645,000
Amortization of intangible assets	1,593,000	1,495,000	1,037,000
Changes in fair value of warrant and earnout liabilities	18,000	1,313,000	249,000
Amortization of patents	69,000	23,000	31,000
Amortization of senior debt fees	406,000	576,000	182,000
Amortization of short-term investment purchase discounts	(156,000)
Deferred interest on debt	4,738,000	548,000	511,000
Loss on debt extinguishment	942,000		445,000
Gain on sale of equipment	(922,000)	(831,000)	(824,000)
Change in deferred rent	8,000	(23,000)	41,000
Realized gain on sale of short-term investments	(3,000)
Provision for bad debts			(264,000)
Changes in operating assets and liabilities:
Accounts receivable	(2,232,000)	(3,536,000)	417,000
Inventories	(3,247,000)	(489,000)	(1,612,000)
Deferred contract sales organization fees	(720,000)
Other current assets	(1,807,000)	(794,000)	(167,000)
Other assets	183,000	(266,000)	(231,000)
Accounts payable	2,974,000	3,567,000	284,000
Accrued expenses	2,123,000	426,000	1,505,000
Deferred revenue	3,662,000
Net cash used in operating activities	(70,646,000)	(25,867,000)	(17,390,000)
Cash Flows From Investing Activities:
Purchases of short-term investments	(66,088,000)
Sales and maturities of short-term investments	50,816,000	3,000,000	4,497,000
Capital expenditures	(3,550,000)	(1,023,000)	(339,000)
Intangible asset acquisition	(500,000)		(6,283,000)
Net cash provided by (used in) investing activities	(19,322,000)	1,977,000	(2,125,000)
Cash Flows From Financing Activities:
Proceeds from Deerfield debt note, net of fees	58,419,000
Proceeds from senior debt note		10,000,000	15,000,000
Prepayment of senior debt and fee	(26,063,000)
Proceeds from sale of equipment	415,000		795,000
Net proceeds from issuance of stock	13,000	18,122,000	17,350,000
Net proceeds from initial public offering, net of underwriting discounts, commissions and offering costs		75,013,000
Payments made on borrowings	(9,166,000)	(1,654,000)	(11,671,000)
Payments made to purchase treasury stock	(61,000)	(171,000)
Deferred financing costs			(563,000)
Net cash provided by financing activities	23,557,000	101,310,000	20,911,000
Increase (decrease) in cash and cash equivalents	(66,411,000)	77,420,000	1,396,000
Cash and Cash Equivalents:
Beginning	90,763,000	13,343,000	11,947,000
Ending	24,352,000	90,763,000	13,343,000
Noncash Investing and Financing Activities:
Earnout liability incurred in connection with intangible assets acquisition			589,000
Issuance of stock warrants		2,131,000	1,707,000
Exercise of Series C warrants for Series C Preferred Stock		2,322,000
Cashless exercise of Series C warrants from Series C financing in IPO closing		2,842,000
Conversion of Redeemable Preferred Stocks into Common Stock		110,776,000
Reclassification of Series C warrants issued with senior debt upon IPO closing		611,000
Preferred stock accretion		1,169,000	1,118,000
Preferred stock dividend		1,221,000	2,185,000
Supplemental Cash Flow Information:
Interest paid	$ 2,857,000	$ 2,524,000	$ 1,793,000

Organization and nature of oper

Organization and nature of operations	12 Months Ended
	Dec. 31, 2016
Organization and nature of operations
Organization and nature of operations	Note 1. Organization and nature of operations Neos Therapeutics, Inc., a Delaware corporation, and its subsidiaries (the "Company") is a fully integrated pharmaceutical company. The Company has developed a broad, proprietary modified-release drug delivery technology that enables the manufacture of single and multiple ingredient extended-release pharmaceuticals in patient- and caregiver-friendly orally disintegrating tablet and liquid suspension dosage forms. The Company has a pipeline of extended-release pharmaceuticals including one approved product and two proprietary product candidates in late stage development for the treatment of attention deficit hyperactivity disorder ("ADHD"). Adzenys XR-ODT was approved by the US Food and Drug Administration, or FDA, on January 27, 2016. In addition, the Company manufactures and markets a generic Tussionex (hydrocodone and chlorpheniramine) ("generic Tussionex") extended-release liquid suspension for the treatment of cough and upper respiratory symptoms of a cold. These products are developed and manufactured using the Company's proprietary and patented modified-release drug delivery technology. The Company's predecessor company was incorporated in Texas on November 30, 1994 as PharmaFab, Inc. and subsequently changed its name to Neostx, Inc. On June 15, 2009, the Company completed a reorganization pursuant to which substantially all of the capital stock of Neostx, Inc. was acquired by a newly formed Delaware corporation, named Neos Therapeutics, Inc. The remaining capital stock of Neostx, Inc. was acquired by the Company on June 29, 2015. Historically, the Company was primarily engaged in the development and contract manufacturing of unapproved or Drug Efficacy Study Indication ("DESI"), pharmaceuticals and, to a lesser extent, nutraceuticals for third parties. The unapproved or DESI pharmaceuticals contract business was discontinued in 2007 and the manufacturing of nutraceuticals for third parties was discontinued in March 2013. On August 28, 2014, the Company completed an acquisition of all of the rights to the Tussionex Abbreviated New Drug Application ("Tussionex ANDA"), which included the rights to produce, develop, market and sell, as well as all the profits from such selling activities, the Company's generic Tussionex, which the Company previously owned the rights to manufacture, but which was marketed and sold by the generic drug division of Cornerstone Biopharma, Inc. ("Cornerstone"). These rights were acquired from the collaboration of the Company, Cornerstone and Coating Place, Inc. ("CPI"), a supplier of the resins for the product (see Note 9). Prior to the acquisition, the Company, Cornerstone and CPI shared profits generated by the sale and manufacture of the product under a development and manufacturing agreement with those companies. On July 28, 2015, the Company closed its initial public offering ("IPO") whereby the Company sold 5,520,000 shares of common stock, at a public offering price of $15.00 per share, which includes 720,000 shares of common stock resulting from the underwriters' exercise of their over-allotment option at the IPO price on July 23, 2015. Proceeds from the Company's IPO, net of underwriting discounts and commissions and other offering costs, were $75.0 million. In connection with the IPO, the Company's Board of Directors approved a 1-for-2.4 reverse stock split of the Company's common stock which also resulted in a proportional adjustment to the conversion ratios of the preferred stock and the preferred stock warrants. All references to common stock and per share amounts in these condensed financial statements and accompanying footnotes have been retroactively adjusted for all periods presented to give effect to this reverse stock split. Between June 30, 2015 and July 27, 2015, the Company issued a total of 1,000,000 shares of its Series C redeemable convertible preferred stock ("Series C") to several existing investors upon the exercise of warrants to purchase Series C preferred stock ("Series C warrants") held by those investors at an exercise price of $5.00 per share, for an aggregate exercise price of $5.0 million. On the IPO closing date, all outstanding shares of redeemable preferred stock converted into 9,217,983 shares of common stock and all remaining outstanding Series C warrants issued in conjunction with purchases of Series C were net exercised at the IPO price for 78,926 shares of common stock. Upon the closing of the Company's IPO, all of the shares of the Company's redeemable convertible preferred stock ("Preferred Shares") were retired and cancelled and shall not be reissued as shares of such series, and all rights and preferences of those Preferred Shares were cancelled including the right to receive undeclared accumulated dividends. These transactions produced a significant increase in the number of shares outstanding which will impact the year-over-year comparability of the Company's loss per share calculations. Additionally, in connection with the closing of the IPO, the Company amended and restated its certificate of incorporation to increase the number of authorized shares of common stock to 100,000,000 and to authorize 5,000,000 shares of undesignated preferred stock.

Summary of significant accounti

Summary of significant accounting policies	12 Months Ended
	Dec. 31, 2016
Summary of significant accounting policies
Summary of significant accounting policies	Note 2. Summary of significant accounting policies Basis of Presentation: The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, and with the rules and regulations of the Securities and Exchange Commission, or SEC. Principles of consolidation: At each of December 31, 2016 and 2015, the consolidated financial statements include the accounts of the Company and its four wholly-owned subsidiaries. At December 31, 2014, Neos Therapeutics, Inc. owned, directly or indirectly, 100% of two of its subsidiaries and 99.9% of the third subsidiary, Neostx, Inc. ("NTX"). The remaining 0.1% ownership of NTX was held by a third party and all such remaining capital stock was acquired by the Company on June 29, 2015, and NTX was merged with and into the Company. The amounts attributable to the noncontrolling interest were not material to the consolidated financial statements. On September 16, 2015, the Company established two new wholly-owned subsidiaries, Neos Therapeutics Brands, LLC and Neos Therapeutics Commercial, LLC. All significant intercompany transactions have been eliminated. Cash equivalents: The Company invests its available cash balances in bank deposits and money market funds. The Company considers highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. The Company's primary objectives for investment of available cash are the preservation of capital and the maintenance of liquidity. Short-term investments: Short-term investments consist of debt securities that have original maturities greater than three months but less than or equal to one year and are classified as available-for-sale securities. Such securities are carried at estimated fair value, with any unrealized holding gains or losses reported, net of any tax effects reported, as accumulated other comprehensive loss, which is a separate component of stockholders' equity. Realized gains and losses, and declines in value judged to be other-than-temporary, if any, are included in other income (expense) in the consolidated results of operations. A decline in the market value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a reduction in fair value charged to earnings in that period, and a new cost basis for the security is established. Dividend and interest income are recognized in other income when earned. The cost of securities sold is calculated using the specific identification method. The Company places all investments with government agencies, or corporate institutions whose debt is rated as investment grade. The Company classifies all available-for-sale marketable securities with maturities greater than one year from the balance sheet date, if any, as non-current assets. Allowance for doubtful accounts: The allowance for doubtful accounts is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management determines the adequacy of the allowance based on reviews of individual accounts, historical losses, existing economic conditions and estimates based on management's judgments in specific matters. Accounts are written off as they are deemed uncollectible based on periodic review of the accounts. There is no allowance for doubtful accounts at December 31, 2016 or December 31, 2015, as management believes that all receivables are fully collectible. Fair value of financial instruments: The carrying value of the Company's financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, other current assets, accounts payable, accrued expenses, and debt, approximates fair value due to the short-term nature of the instruments and/or the current interest rates payable in relation to current market conditions. The fair value of the Company's warrants and earnout liabilities is disclosed in Note 4. Inventories: Inventories are stated at the lower of cost (first in, first out) or market and have been reduced by an allowance for excess and obsolete inventories. Cost elements include material, labor and manufacturing overhead. Inventories consist of raw materials, work in process, finished goods and deferred cost of goods sold. The cost of sales associated with the deferred product revenues are recorded as deferred costs of goods sold that are released from inventory into cost of goods sold as the deferred revenue is recognized into revenue. Until objective and persuasive evidence exists that regulatory approval has been received and future economic benefit is probable, pre-launch inventories are expensed into research and development. Manufacturing costs for the production of Adzenys XR-ODT incurred after the January 27, 2016 FDA approval date are being capitalized into inventory. Deferred contract sales organization fees: The Company records fees billed in accordance with its commercial sales organization contract for services not yet performed as deferred contract sales organization fees. Such fees are recorded as selling and marketing expenses when the services are provided. Property and equipment: Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the respective lease term or the estimated useful lives of the assets. Intangible assets: Intangible assets subject to amortization, which principally include proprietary modified-release drug delivery technology and the costs to acquire the rights to Tussionex ANDA, are recorded at cost and amortized over the estimated lives of the assets which primarily range from 10 to 20 years. Impairment of long-lived assets: Long-lived assets such as property and equipment and intangibles subject to amortization are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset group may not be recoverable. Such assets are also evaluated for impairment in light of the Company's continuing losses. If the estimated future cash flows (undiscounted and without interest charges) from the use of an asset are less than the carrying value, a write-down would be recorded to reduce the related asset to its estimated fair value. No impairment charges were recorded for the years ended December 31, 2016, 2015 or 2014. Patent costs: The Company estimates that the patents it has filed have a future beneficial value. Therefore, costs associated with filing for its patents are capitalized. Once the patent is approved and commercial revenue realized, the costs associated with the patent are amortized over the useful life of the patent. If the patent is not approved, the costs will be expensed. Revenue recognition: Revenue is generated from product sales, recorded on a net sales basis, and historically, manufacturing, development and profit sharing from a development and manufacturing agreement. Product revenue is recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) price to the buyer is fixed and determinable; and (4) collectability is reasonably assured. Revenue from sales transactions where the buyer has the right to return the product is recognized at the time of sale only if (1) the price to the buyer is substantially fixed or determinable at the date of sale, (2) the buyer has paid for the product, or the buyer is obligated to pay for the product and the obligation is not contingent on resale of the product, (3) the buyer's obligation to pay would not be changed in the event of theft or physical destruction or damage of the product, (4) the buyer acquiring the product for resale has economic substance apart from that provided by the Company, (5) the Company does not have significant obligations for future performance to directly bring about resale of the product by the buyer, and (6) the amount of future returns can be reasonably estimated. The Company sells its generic Tussionex to a limited number of pharmaceutical wholesalers. Pharmaceutical wholesalers buy drug products directly from manufacturers. Title to the product passes upon delivery to the wholesalers, when the risks and rewards of ownership are assumed by the wholesaler (freight on board destination). These wholesalers then resell the product to retail customers such as food, drug and mass merchandisers. The Company has a limited sales history for Adzenys XR-ODT and has determined that at this time it cannot reliably estimate expected returns of the product at the time of shipment to wholesalers. Accordingly, the Company defers recognition of revenue on product shipments of Adzenys XR-ODT until the right of return no longer exists, which occurs at the earlier of the time Adzenys XR-ODT units are dispensed through patient prescriptions or expiration of the right of return. The Company calculates patient prescriptions of Adzenys XR-ODT dispensed using an analysis of third-party information. The Company's manufacturing, profit sharing and development revenue ended in 2014 as the Company has terminated the Company's development and manufacturing agreement. As a result of the Company's acquisition of the rights to commercialize and derive future profits from the Tussionex ANDA, the Company will utilize its manufacturing capability to derive revenue directly from sales made by the Company, rather than through the Company's commercial partner. Net product sales Net product sales for the Company's products represent total gross product sales less gross to net sales adjustments. Gross to net sales adjustments include savings offers, prompt payment discounts, wholesaler fees and estimated allowances for product returns, rebates and chargebacks to be incurred on the selling price of the respective product sales. Wholesale distribution fees based on definitive contractual agreements are incurred on the management of these products by wholesalers and are recorded within net sales for generic Tussionex and as deferred wholesale distribution fees in other current assets for Adzenys XR-ODT. The deferred wholesale distribution fees for Adzenys XR-ODT are later recorded within net product sales when revenue associated with those fees is recognized. The Company estimates and records gross to net sales adjustments for product returns, rebates and chargebacks based upon analysis of third-party information, including information obtained from the Company's third party logistics providers ("3PLs"), with respect to its inventory levels and sell-through to the wholesalers' customers, for savings offers from data available from third parties regarding savings offers processed for prescriptions written for the Company's products, and, for generic Tussionex, experience reported by the Company's previous commercialization partners. Due to estimates and assumptions inherent in determining the amount of returns, rebates and chargebacks, the actual amount of returns and claims for rebates and chargebacks may be different from the estimates, at which time reserves would be adjusted accordingly. Wholesale distribution fees and the allowance for prompt pay discounts are recorded at the time of shipment and such fees and allowances and all other accruals are recorded in the same period that the related revenue is recognized. Savings offers The Company offers savings programs for Adzenys XR-ODT to patients covered under commercial payor plans in which the cost of a prescription to such patients is discounted. The Company records the amount redeemed based on information from third-party providers and recognizes the discount as a reduction of revenue in the same period the related revenue is recognized. Product returns Wholesalers' contractual return rights are limited to defective product, product that was shipped in error, product ordered by customer in error, product returned due to overstock, product returned due to dating or product returned due to recall or other changes in regulatory guidelines. The return policy for expired product allows the wholesaler to return such product starting six months prior to expiry date to twelve months post expiry date. Generic Tussionex product returns are estimated based upon data available from sales of the Company's product by its previous commercialization partner and from actual experience as reported by retailers. Historical trend of returns will be continually monitored and may result in future adjustments to such estimates. On August 26, 2014, the U.S. Drug Enforcement Agency reclassified the Company's generic Tussionex from a Schedule III controlled substance to a Schedule II controlled substance which had the effect of requiring unsold product at the wholesalers and the 3PL to either be relabeled or returned. This new ruling was effective October 6, 2014. As such, the Company established reserves for the estimated returns of such product outstanding at the wholesalers as of October 6, 2014. The Company had no inventory labeled as Schedule III at the 3PL as of the effective date. Rebates The Company's products are subject to commercial managed care and government-managed Medicare and Medicaid programs whereby discounts and rebates are provided to participating state governments. Estimated rebates payable under such programs are recorded as a reduction of revenue at the time revenues are recorded. Calculations related to these rebate accruals are estimated based on information from third-party providers. Historical trend of such rebates will be continually monitored and may result in future adjustments to such estimates. Wholesaler Chargebacks The Company's products are subject to certain programs with wholesalers whereby pricing on products is discounted below wholesaler list price to participating entities. These entities purchase products through wholesalers at the discounted price, and the wholesalers charge the difference between their acquisition cost and the discounted price back to the Company. Chargebacks are accounted for by establishing an accrual in an amount equal to the Company's estimate of chargeback claims at the time of product sale based on information provided by third parties. Due to estimates and assumptions inherent in determining the amount of chargebacks, the actual amount of claims for chargebacks may be different from estimates, which may result in adjustments to such reserves. Manufacturing Manufacturing revenue is derived from product manufactured by the Company and sold by the Company's commercial partner under a development and manufacturing agreement. Manufacturing revenue is derived from a contractual supply price paid to the Company by the Company's commercial partners. Profit sharing Profit sharing revenue is recorded as the product is sold by the Company's commercial partner. The profit share is the Company's share of the net profits after taking into account net revenue, which is gross product sales by the Company's commercial partner, net of discounts, returns and allowances incurred by the Company's commercial partner, less collaboration expenses. Development revenue Development revenue from the development and manufacturing agreement has been recognized as the related services are completed. Development revenue in the form of milestone payments is recognized upon achievement of the related milestones and provided that collectability is reasonably assured and other revenue recognition criteria are met. Amounts received under cost reimbursement arrangements for production and research and development are recorded as offsets to the costs incurred and not recognized as revenue. Distribution expenses: Costs invoiced to the Company by its third party logistics firm are classified as cost of goods sold in the consolidated statements of operations. Shipping and handling costs: Amounts billed to customers for shipping and handling fees for the delivery of goods are classified as cost of goods sold in the consolidated statements of operations. Advertising costs: Advertising costs are comprised of print and electronic media placements that are expensed as incurred. The Company recognized advertising costs of $7.4 million during the year ended December 31, 2016. There were no advertising costs incurred during the years ended December 31, 2015 and 2014. Research and development costs: Research and development costs are charged to operations when incurred, include salaries and benefits, facilities costs, overhead costs, raw materials, laboratory and clinical supplies, clinical trial costs, contract services, fees paid to regulatory authorities for review and approval of the Company's product candidates and other related costs, and are included in research and development in the consolidated statements of operations. During the third quarter of 2016, the Company reclassified its approved product and facility regulatory fees out of research and development expense and into cost of sales commensurate with the commercial launch of Adzenys XR-ODT. The Company has reclassified all such applicable regulatory fees for prior quarters and prior years out of research and development expense and into cost of goods sold in accordance with this approach. Income taxes: Income taxes are accounted for using the liability method, under which deferred taxes are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax laws that will be in effect when the differences are expected to reverse. Management evaluates the Company's tax positions in accordance with guidance on accounting for uncertainty in income taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not that the position will be sustained upon examination. As of December 31, 2016 and 2015, the Company has unrecognized tax benefits associated with uncertain tax positions in the consolidated financial statements. These uncertain tax positions were netted against net operating losses (NOL's) with no separate reserve for uncertain tax positions required. Deferred tax assets should be reduced by a valuation allowance if current evidence indicates that it is considered more likely than not that these benefits will not be realized. In evaluating the objective evidence that historical results provide, we consider that three years of cumulative operating losses was significant negative evidence outweighing projections for future taxable income. Therefore, management has determined that it is more likely than not that the deferred tax assets will not be realized. Accordingly, the Company has recorded a valuation allowance to reduce deferred tax assets to zero. Paragraph IV Litigation Costs: Legal costs incurred by the Company in the enforcement of the Company's intellectual property rights are charged to expense as incurred. Warrants: The Company accounts for its warrants and other derivative financial instruments as either equity or liabilities based upon the characteristics and provisions of each instrument. Warrants classified as derivative liabilities are recorded on the Company's balance sheet at their fair value on the date of issuance and prior to completion of the Company's IPO were revalued at each subsequent balance sheet date, with fair value changes recognized as increases or reductions to other income (expense) in the statements of operations. The Company estimates the fair value of its derivative liabilities using third party valuation analysis that utilizes option pricing models and assumptions that are based on the individual characteristics of the warrants or instruments on the valuation date, as well as assumptions for expected volatility, expected life, yield, and risk-free interest rate. Prior to the closing of the IPO, the Company's Series C warrants were determined to be derivative liabilities and they were revalued at each subsequent balance sheet date. Upon closing the IPO, the warrants issued in conjunction with the Series C financing were exchanged in a cashless exercise for 947,185 shares of Series C which converted into 78,926 shares of the Company's common stock. The remaining Series C warrants issued with the senior debt to purchase 170,000 pre-split shares of Series C ("Hercules Warrants") were converted into warrants to purchase 70,833 shares of the Company's common stock and the warrant liability was reclassified to Additional Paid in Capital within Stockholders' Equity (Deficit). Share-based compensation: Share-based compensation awards, including grants of employee stock options and restricted stock and modifications to existing stock options, are recognized in the consolidated statement of operations based on their fair values. Compensation expense related to awards to employees is recognized on a straight-line basis, based on the grant date fair value, over the requisite service period of the award, which is generally the vesting term. The fair value of the Company's stock-based awards to employees and directors is estimated using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including (1) the expected stock price volatility, (2) the expected term of the award, (3) the risk-free interest rate and (4) expected dividends. Due to the previous lack of a public market for the trading of its common stock and a lack of company-specific historical and implied volatility data, the Company has, prior to the IPO, historically utilized third party valuation analyses to determine the fair value. After the closing of the Company's IPO, the Company's board of directors has determined the fair value of each share of underlying common stock based on the closing price of the Company's common stock as reported by the NASDAQ Global Market on the date of grant. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the actual expense recognized over the vesting period will only be for those options that vest. Beginning in July 2016, the Company began recording stock compensation expense in the same income statement line as the cash compensation of the employee with the option in accordance with Staff Accounting Bulletin Topic 14 due to the increased number and amount of options and option compensation. The Company has reclassified all prior periods' amounts out of general and administrative expense to the appropriate income statement line in accordance with this approach. Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Concentration of credit risk: Accounts receivable subjects the Company to concentrations of credit risk. Thirteen customers accounted for all the revenue and deferred revenue in the year ended December 31, 2016 and accounts receivable at December 31, 2016 were due from eleven customers. Two customers accounted for 82% of the net revenue for the year ended December 31, 2016, and three customers accounted for 98% of the accounts receivable at December 31, 2016. Four and two customers accounted for substantially all revenue in the years ended December 31, 2015 and 2014, respectively. Accounts receivable at December 31, 2015 were due from three customers. Segment information: Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment, which is the development, manufacturing and commercialization of pharmaceuticals. Liquidity: During 2016, 2015 and 2014, the Company produced operating losses and used cash to fund operations. Management intends to achieve profitability through revenue growth from pharmaceutical products developed with its extended-release technologies. The Company does not anticipate it will be profitable until after the successful commercialization of its approved product, Adzenys XR-ODT, or one or more of its ADHD product candidates. Management believes that its existing cash and cash equivalents and short-term investments, taken together with the net proceeds which the Company received from its public offering of common stock completed in February 2017, will be sufficient to fund the Company's operations for at least the next 12 months after the filing of this Annual Report on Form 10-K. Application of revised accounting standards: In April 2012, the Jumpstart Our Business Startups Act (the "JOBS Act"), was enacted in the United States. Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. In 2015, the Company irrevocably elected not to avail itself of this extended transition period and, as a result, will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies. Recent accounting pronouncements: In August 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This ASU was designed to reduce the diversity in practice of how the eight specified items are presented and classified in the statement of cash flows, including debt prepayment or debt extinguishment costs. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company believes the amendments will not have a significant effect on its ongoing financial reporting as the Company has classified its debt prepayment and debt extinguishment costs, in the Consolidated Statements of Cash Flows in accordance with the amendments. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation—Improvements to Employee Share-Based Payment Accounting (Topic 718) . For public companies, areas of accounting for share-based payment that this ASU was designed to simplify include: the income tax consequences, the accounting policy for forfeitures, the classification of awards as either equity or liabilities and the classification on the statement of cash flows. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those years. The adoption of this standard is not expected to have a material impact on the Company's business, financial position, results of operations or liquidity. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and 2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The Company is evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, Inventory—Simplifying the Measurement of Inventory (Topic 330). The amendments in this ASU require an entity to measure inventory that is not measured using the last-in, first-out (LIFO) or retail inventory methods at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, including interim periods within those years. The Company does not believe that this ASU will have a significant effect on its ongoing financial reporting as valuing inventory at the lower of cost or net realizable value approximates the current policy of valuing inventory at the lower of cost or market. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. ASU 2014-15 is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. This ASU is for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company has performed the review required by this ASU and believes the Company presently has sufficient liquidity to continue to operate for the next twelve months from its filing date. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance replaces transaction-and industry-specific revenue recognition guidance under current U.S. GAAP with a principles-based approach for determining revenue recognition. The new guidance requires an entity to recognize the amount of revenue based on the value of transferred goods or services to customers. There are also additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The FASB delayed the effective date to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. In addition, in March and April 2016, the FASB issued new guidance intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. Both amendments permit the use of either a retrospective or cumulative effect transition method and are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early application permitted. The Company has limited sales history for its branded product that may not allow for reliable estimates of expected returns of the product at the time of shipment to wholesalers. The Company is assessing other market data and the impact of this new standard on its financial statements and has not yet selected a transition method. From time to time, additional new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes t

Net loss per share

Net loss per share	12 Months Ended
	Dec. 31, 2016
Net loss per share
Net loss per share	Note 3. Net loss per share Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. Potentially dilutive securities, which include redeemable convertible preferred stock, warrants, and outstanding stock options under the stock option plan, have been excluded from the computation of diluted net loss per share as they would be anti-dilutive. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company's net loss position. The following potentially dilutive securities were excluded from consideration in the computation of diluted net loss per share of common stock for the periods presented because including them would have been anti-dilutive: December 31, 2016 2015 2014 Series A Redeemable Convertible Preferred Stock (as converted) — — Series B Redeemable Convertible Preferred Stock (as converted) — — Series B-1 Redeemable Convertible Preferred Stock (as converted) — — Series C Redeemable Convertible Preferred Stock (as converted) — — Series C Redeemable Convertible Preferred Stock Warrants (as converted) Common Stock Warrants — Stock options

Fair value of financial instrum

Fair value of financial instruments	12 Months Ended
	Dec. 31, 2016
Fair value of financial instruments
Fair value of financial instruments	Note 4. Fair value of financial instruments Financial instruments are categorized into a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the categorization of the financial instrument is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets recorded at fair value on the Company's consolidated balance sheets are categorized as follows: Level 1: Unadjusted quoted prices for identical assets in an active market. Level 2: Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full-term of the asset. Level 2 inputs include the following: • Quoted prices for similar assets in active markets. • Quoted prices for identical or similar assets in nonactive markets. • Inputs other than quoted market prices that are observable. • Inputs that are derived principally from or corroborated by observable market data through correlation or other means. Level 3: Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management's own assumptions about the assumptions a market participant would use in pricing the asset. The following table presents the hierarchy for the Company's financial instruments measured at fair value on a recurring basis for the indicated dates: Fair Value as of December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ $ $ — $ Short-term investments — — Earnout liability — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ $ — $ — $ Earnout liability — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company's Level 1 assets include cash and cash equivalents. Cash and cash equivalents include bank deposits, certificates of deposit and money market funds with a maturity of 90 days or less whose values are considered to approximate fair value at December 31, 2016 and 2015 due to the short-term nature of the instruments and/or the current interest rates payable in relation to current market conditions. Beginning in February 2016, the Company's Level 2 assets include commercial paper and corporate bonds with maturities of less than 90 days less whose values are considered to approximate fair value at December 31, 2016 and 2015 due to the short-term nature of the instruments and/or the current interest rates payable in relation to current market conditions. Also included in the Company's Level 2 assets are short-term investments which are classified as available-for-sale securities and have a maturity greater than 90 days, but less than 1 year, with quoted prices in active markets. Level 2 securities primarily consisted of commercial paper and bonds issued by domestic and foreign corporations. The estimated fair values of these securities are determined by third parties using various calculations and valuation techniques that incorporate standard observable inputs and assumptions such as quoted prices for similar assets, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids/offers and other pertinent reference data. The Company's cash and cash equivalents and short-term investments had quoted prices at December 31, 2016 as shown below: December 31, 2016 Amortized Unrealized Market (in thousands) Bank deposits and money market funds $ $ — $ Financial and corporate debt securities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 3 liabilities include the fair values of the earnout liability. Various methodologies were utilized to value the Level 3 liabilities including Black-Scholes-Merton, Probability-Weighted Expected Return ("PWERM"), Option Pricing and Monte Carlo. The methodologies and significant inputs used in the determination of the fair value of the earnout liability were as follows: Initial Valuation December 31, 2014 December 31, 2015 December 31, 2016 (Dollars in thousands) Date of Valuation 8/28/2014 12/31/2014 12/31/2015 12/31/2016 Valuation Method Monte Carlo Monte Carlo Monte Carlo Monte Carlo Volatility (annual) 50% 50% 50% 50% Risk-free rate (annual) .03% - 3.56% .15% - 3.21% .56% - 3.31% .74% - 3.42% Time period from valuation until end of earnout .1708 - 9.8417 .5 - 9.5 .5 - 9.5 .5 - 9.5 Earnout Target 1 $13,700 $13,700 $13,700 $13,700 Earnout Target 2 $18,200 $18,200 $18,200 $18,200 Discount rate 8.03% - 10.51% 7.96% - 11.03% 8.11% - 10.86% 12.02% - 14.70% ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of liability at valuation date $589 $756 $214 $232 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The methodologies and significant inputs used in the determination of the fair value of the Hercules Warrants through July 22. 2015 were as follows: Series C Warrants Series C Warrants Revalue Series C Revalue Series C (Dollars in thousands, except $5 and $12 Exercise Prices) Date of Valuation 3/28/2014 9/25/2014 12/31/2014 7/22/2015 Valuation Method Black-Scholes-Merton PWERM and Black-Scholes-Merton PWERM and Option Pricing Black-Scholes-Merton Option-Pricing Dividend yield (per share) 0 0 0 0 Exercise price $5 $5 $5 $12 Volatility (annual) 60% 60% 60% 60% Risk-free rate (annual) 0.34% 2.03% .25% - 2.47% 1.78% Contractual term (years) 1.76 5.76 1 - 5 5 Number of warrants 60,000 110,000 170,000 70,833 ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of liability at valuation date $124 $248 $454 $611 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As the Hercules Warrants converted into warrants for common stock effective on July 22, 2015 with the IPO, with a term of five years from the IPO date, it was determined that the Black-Scholes-Merton Option-Pricing model would provide a better indication of the fair value as it was designed to calculate the value of a put or call option over time. The methodologies and significant inputs used in the determination of the fair value of the Series C warrants issued with the Series C through July 22, 2015 were as follows: Initial Valuation of Initial Valuation Initial Valuation Revalue All Warrants (Dollars in thousands, except $5 and $12 Exercise Prices) Date of Valuation 12/31/2014 1/31/2015 2/28/2015 7/22/2015 Valuation Method PWERM and Option Pricing PWERM and Option Pricing PWERM and Option Pricing Intrinsic Value Dividend yield (per share) 0 0 0 0 Exercise price $5 $5 $5 $12 Volatility (annual) 60% 60% 60% — Risk-free rate (annual) .25% - 2.47% .25% - 2.47% .25% - 2.47% — Contractual term (years) 1 - 5 1 - 5 1 - 5 — Number of warrants 749,967 590,906 606,312 1,347,185 ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of liability at valuation date $1,335 $1,052 $1,079 $4,042 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Significant changes to these assumptions in the preceding valuation tables would result in increases/decreases to the fair value of the earnout liability. Changes in Level 3 liabilities measured at fair value for the periods indicated were as follows: Earnout Series C Warrants Series C Warrants (in thousands) Balance at December 31, 2014 $ $ $ Additions during the period — — Changes in fair value ) Warrants exercised — — ) Cashless warrant exercise due to IPO — — ) Conversion to common stock warrant — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2015 $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Upon closing the IPO, the warrants issued in conjunction with the Series C financing were exchanged in a cashless exercise for 947,185 shares of Series C which converted into 78,926 shares of the Company's common stock. The remaining Series C warrants issued with the senior debt to purchase 170,000 pre-split shares of Series C ("Hercules Warrants") were converted into warrants to purchase 70,833 shares of the Company's common stock and the warrant liability was reclassified to Additional Paid in Capital within Stockholders' Equity (Deficit). The 2015 reductions in fair value of the earnout liability shown above resulted from new information regarding the projected impact of the DEA's reclassification of Tussionex from a Schedule III controlled substance to a Schedule II controlled substance and a review of the launch dates of the Company's approved product, Adzenys XR-ODT, and its two ADHD product candidates. The 2015 increases in the fair value of the Series C warrants were due to the increased weighting of the IPO scenario in the PWERM model.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2016
Inventories
Inventories	Note 5. Inventories Inventories at the indicated dates consist of the following: December 31, 2016 2015 (in thousands) Raw materials $ $ Work in progress Finished goods Deferred cost of goods sold — ​ ​ ​ ​ ​ ​ ​ ​ Inventory at cost Inventory reserve ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The deferred cost of goods sold relates to Adzenys XR-ODT and will be recognized when associated revenue is recognized.

Property and equipment

Property and equipment	12 Months Ended
	Dec. 31, 2016
Property and equipment
Property and equipment	Note 6. Property and equipment Property and equipment, net at the indicated dates consists of the following: December 31, 2016 2015 (in thousands) Assets under capital lease $ $ Leasehold improvements Manufacturing, packaging and lab equipment Office furniture and equipment Assets under construction ​ ​ ​ ​ ​ ​ ​ ​ Accumulated depreciation and amortization (including $762 and $3,684 at December 31, 2016 and 2015, respectively, applicable to capital leases) ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization expense related to property and equipment was $1,598,000, $1,724,000 and $1,645,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Depreciation and amortization expense is recorded in cost of goods sold, research and development, or general and administrative expenses in the accompanying consolidated statements of operations. As noted in Note 7, the Company sold and leased back a substantial portion of its operating assets in a series of capital lease transactions. On October 20, 2016, the Company utilized a third party auctioneer to conduct an auction of certain fully-depreciated equipment assets, resulting in net proceeds of approximately $415,000 which were paid during the fourth quarter of 2016 and were recorded as a gain on sale and included in other income (loss) in the Company's consolidated statement of operations. Included in the total of assets under capital lease as of December 31, 2016 and December 31, 2015, are certain manufacturing, packaging and lab equipment that are temporarily idle as a result of the cessation of contract manufacturing. The cost of these assets was $811,000 and $1,699,000, and the accumulated depreciation of these assets was $811,000 and $1,396,000 at December 31, 2016 and December 31, 2015, respectively.

Sale-leaseback transaction

Sale-leaseback transaction	12 Months Ended
	Dec. 31, 2016
Sale-leaseback transaction
Sale-leaseback transaction	Note 7. Sale-leaseback transaction The Company accounts for the sale and leaseback transactions discussed below as capital leases under the provisions of Accounting Standards Codification ("ASC") Topic 840-40, Leases—Sale Leaseback Transactions . Accordingly, the leased assets are recorded in property and equipment and the capitalized lease obligations are included in long-term liabilities at the present value of the future lease payments in accordance with the terms of the lease (see Note 11 for further details). Lease payments are applied using the effective interest rate inherent in the leases. Depreciation of the property and equipment is included within depreciation and amortization in the consolidated statements of operations and consolidated statements of cash flows. In 2012, the Company negotiated financing arrangements with a related party which provided for the sale-leaseback of up to $6.5 million of the Company's property and equipment with a bargain purchase option at the end of the respective lease. These financing arrangements were executed in five separate tranches that occurred in February, July and November 2013, and March 2014. In the aggregate, the Company sold groups of assets for $795,000 and $5.5 million, which resulted in a net gains of approximately $116,000 and $2.7 million, in the years ended December 31, 2014 and 2013, respectively, and executed capital leases for these assets with repurchase options at the end of each respective lease term. Gains on the transactions are recognized on a straight-line basis over each respective 42-month lease term. The two February 2013 leases for a total of $3.5 million of assets expired in July 2016 and the related $2.6 million gain was fully amortized at that time and the $385,000 lease buy-out option liability was fully satisfied. The July 2013 lease for a total of $1.0 million of assets expired in December 2016 and the related $0.1 million loss had been recorded at inception of the lease and the $100,000 lease buy-out option liability was fully satisfied. For the years ended December 31, 2016, 2015 and 2014 approximately $507,000, $831,000 and $824,000, respectively, of the net gain was recognized in other income on the consolidated statements of operations. Leases 1 & 2 Lease 3 Lease 4 Lease 5 Total (in thousands) Carrying value at December 31, 2014 $ $ $ $ $ Assets retired in 2015 ) — ) — ) 2015 Amortization ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value at December 31, 2015 $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2016 Amortization ) ) ) ) ) Transfer to property and equipment at end of lease — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value at December 31, 2016 $ — $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Intangible assets

Intangible assets	12 Months Ended
	Dec. 31, 2016
Intangible assets
Intangible assets	Note 8. Intangible assets Intangible assets, net at the indicated dates consist of the following: December 31, 2016 2015 (in thousands) Proprietary modified-release drug delivery technology $ $ Tussionex ANDA CPI profit sharing Other ​ ​ ​ ​ ​ ​ ​ ​ Accumulated amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As part of the June 15, 2009 reorganization of the Company as Neos Therapeutics, Inc., the Company performed a purchase price allocation analysis. The proprietary modified-release drug delivery technology was valued at $15.6 million based on projected cash flows expected to be generated from this technology. The $15.6 million is being amortized over 20 years. Amortization expense of $780,000 was recorded in each of the years ended December 31, 2016, 2015 and 2014. On August 28, 2014, the Company completed an acquisition of the rights to Tussionex ANDA from Cornerstone and CPI which was accounted for as an asset acquisition. Prior to the acquisition, the Company, Cornerstone and CPI shared profits generated by the sale and manufacture of the product under a development and manufacturing agreement, and Cornerstone had commercialization rights to the product. The Company paid $4.2 million to Cornerstone to buy out their rights to commercialize and derive future profits from the product and entered into an agreement whereby Cornerstone transferred certain assets associated with the product to the Company. Legal fees of $90,000 associated with this buyout agreement have been capitalized as part of the purchase price. Additional estimated earnout costs due to Cornerstone of $589,000, recorded at fair value by the Company based upon a valuation provided by a third party valuation firm, were capitalized as part of the purchase price of this intangible asset. This earnout amount was revalued at December 31, 2016, 2015 and 2014, resulting in an $18,000 increase, a $542,000 decrease and a $167,000 increase in the estimated fair value of the earnout, respectively, which is recorded in other income (expense), net in the Company's consolidated statements of operations. The 2015 net decrease resulted primarily from new information regarding the projected impact of the DEA's reclassification of Tussionex from a Schedule III controlled substance to a Schedule II controlled substance. In addition, the Company paid $2.0 million to CPI to buy out their rights to future profits from the collaboration and entered into an agreement whereby CPI will continue to supply a component of the product. Legal fees of $43,000 associated with this buyout agreement have been capitalized as part of the purchase price of this intangible asset. These two intangible assets have an expected life of ten years and are being amortized on a straight-line basis beginning September 2014. Total amortization expense related to these intangible assets was $687,000, $687,000 and $229,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Aggregate amortization of intangible assets for each of the next five years and thereafter is as follows: Year ending December 31: December 31, (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other assets

Other assets	12 Months Ended
	Dec. 31, 2016
Other assets
Other assets	Note 9. Other assets Other assets at the indicated dates consist of the following: December 31, 2016 2015 (in thousands) Patents, net $ $ Deposits ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Patents utilized in the manufacturing of the Company's generic Tussionex product which total $352,000 are being amortized over their expected useful life of 10 years. Patents utilized in the manufacturing of Adzenys XR-ODT which total $535,000 are being amortized over their expected useful life of approximately 16 years, beginning with the PDUFA approval of Adzenys XR-ODT on January 27, 2016. For the years ended December 31, 2016, 2015 and 2014, $69,000, $23,000 and $31,000 of patent amortization expense was recorded, respectively.

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2016
Income taxes
Income taxes	Note 10. Income taxes The Company applies FASB ASC topic 740, " Income Taxes" or ASC 740 which addresses the determination of whether tax benefits claimed, or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, our Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on derecognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company is generally subject to tax examination for a period of three years after tax returns are filed. Therefore, the statute of limitations remains open for tax years 2013 and forward. However, when a company has net operating loss carryovers, those tax years remain open until three years after the net operating losses are utilized. Therefore, the tax years remain open back to 2004. Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities. The significant components of deferred income tax assets and liabilities consist of the following: December 31, 2016 2015 (in thousands) Deferred Tax Assets: Net operating loss $ $ R&D tax credit Share-based compensation Other reserves Paragraph IV litigation costs Accrued expenses Deferred lease liability Capital lease liability — Earnout liability State deferreds — Deferred gain on sale-leaseback Property and equipment — ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred Tax Liabilities: Intangible assets ) ) Property and equipment ) — Capital lease liability — ) State deferreds — ) Inventory reserve — ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ) ​ ​ ​ ​ ​ ​ ​ ​ Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset (liability) $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2016, and 2015, the Company has federal net operating loss carry-forwards of $200,170,000 and $122,075,000 and research and development credits of $2,179,000 and $2,010,000, respectively, which begin to expire in 2024. The Company has state net operating loss carry-forwards of $1,835,000 and $278,000 for December 31, 2016 and 2015, respectively. Utilization of the net operating loss carry-forwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. The Company has performed an analysis to determine the impact of any ownership change(s) under Section 382 of the Internal Revenue Code. The amount of federal net operating loss that will expire unused due to the Section 382 limitation is $6,089,000. The amount of federal research and development credit that will expire unused is $350,000. The deferred tax assets for both carryforwards have been adjusted downward accordingly. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The Company has no accrued interest related to its uncertain tax positions as they all relate to timing differences that would adjust the Company's net operating loss carryforward and do not require recognition. As a result of these timing differences, at December 31, 2016 and December 31, 2015, the Company had gross unrecognized tax benefits related to uncertain tax positions of $5,081,000 and $4,355,000, respectively. The Company has no other tax positions taken or expected to be taken that would significantly increase or decrease unrecognized tax benefits within 12 months of the reporting date. Changes in unrecognized benefits in any given year are recorded as a component of deferred tax expense. A tabular rollforward of the Company's gross unrecognized tax benefits is below: December 31, 2016 2015 (in thousands) Beginning Balance $ $ Increase/(Decrease) based on tax positions taken during a current period ​ ​ ​ ​ ​ ​ ​ ​ Ending Balance $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company has recorded a valuation allowance of $68,217,000 at December 31, 2016 and $38,331,000 at December 31, 2015 to fully reserve its net deferred tax assets. The Company has assessed the likelihood that the deferred tax assets will be realized and determined that it is more likely than not that all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Due to the uncertainty of realizing the deferred tax asset, the Company has placed a valuation allowance against the entire deferred tax asset. The Company may not ever be able to realize the benefit of some or all of the federal and state loss carryforwards, either due to ongoing operating losses or due to ownership changes, which limit the usefulness of the loss carryforwards. The change in the valuation allowance was an increase of $29,886,000 and $8,437,000 for the years ended December 31, 2016 and December 2015, respectively. A reconciliation of the Company's Federal statutory tax rate of 34% to the Company's effective income tax rate is as follows: Year Ended December 31, 2016 2015 U.S. Statutory Tax Rate % % Provision to Return and Other Adjustments )% )% Change in Valuation Allowance )% )% Deferred Tax Adjustments % )% State tax expense, net % % ​ ​ ​ ​ ​ ​ ​ ​ Tax Expense / (Benefit) % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Long-term debt

Long-term debt	12 Months Ended
	Dec. 31, 2016
Long-term debt
Long-term debt	Note 11. Long-term debt Long-term debt at the indicated dates consists of the following: December 31, 2016 2015 (in thousands) Deerfield senior secured credit facility, net of discount of $1,401 $ $ — Senior debt, net of discount of $1,167 — 10% subordinated note payable to a related party — Capital leases, maturing through August 2017 ​ ​ ​ ​ ​ ​ ​ ​ Less current portion ) ) ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deerfield Senior Secured Credit facility: On May 11, 2016, the Company entered into a $60 million senior secured credit facility ("Facility") with Deerfield Private Design Fund III, L.P. (66 2 / 3 % of loan) and Deerfield Special Situations Fund, L.P. (33 1 / 3 % of Loan) ("Deerfield"), as lenders. Principal on the new facility is due in three equal annual installments beginning in May 2019 and continuing through May 2021, with a final payment of principal, interest and all other obligations under the facility due May 11, 2022. Interest is due quarterly beginning in June 2016, at a rate of 12.95% per year. The Company has an option to defer payment of each of the first four interest payments until June 1, 2017. The Company exercised the option to defer the first three interest payments during the year ended December 31, 2016 and exercised the option to defer the fourth interest payment due March 1, 2017 on February 6, 2017, adding such amounts to the outstanding loan principal until they are paid on June 1, 2017. In connection with the Facility, the Company paid a $1,350,000 yield enhancement fee to Deerfield, approximately $173,000 of legal costs to the Company's attorneys and $58,000 of legal costs on behalf of Deerfield's attorneys, all of which were recorded as debt discount and amortized over the six-year term of the Facility, using the effective interest method. Borrowings under the Facility are collateralized by substantially all of the Company's assets, except the Company's assets under capital lease, and the Company will maintain cash on deposit of not less than $5 million. Approximately $33 million of the $60 million Facility proceeds was used to prepay the existing $24.3 million principal and $0.1 million of accrued interest related to the senior Loan and Security Agreement ("LSA"), the $1.1 million LSA end of term fee, an LSA prepayment charge of $243,000 and the $5.9 million of principal and $1.3 million of interest on the 10% related party amended and restated subordinated note (the "Note") that was issued by the Company to Essex Capital Corporation ("Essex"), which were otherwise payable in 2016 and 2017. The Facility, also contains certain customary nonfinancial covenants, including limitations on the Company's ability to transfer assets, engage in a change of control, merge or acquire with or into another entity, incur additional indebtedness and distribute assets to shareholders. Upon an event of default, the lender may declare all outstanding obligations accrued under the Facility to be immediately due and payable, and exercise its security interests and other rights. As of December 31, 2016, the Company was in compliance with the covenants under the Facility. Debt discount amortization for the Facility was calculated using the effective interest rate, charged to interest expense and totaled $181,000 for the year ended December 31, 2016. Senior debt: On March 28, 2014, the Company entered into the LSA with Hercules Technology III, L.P. ("Hercules"), which was subsequently amended in August 2014, September 2014, December 2014 and June 2015. As amended, the LSA provided a total commitment of $25.0 million, available in four draws. Borrowings under the LSA were collateralized by substantially all of the Company's assets, except the Company's intellectual property and assets under capital lease. The first draw of $10.0 million, ("Tranche 1"), was issued during March 2014 and was used in its entirety to repay outstanding principal and the $697,000 of interest expense related to the Credit Agreement in March 2014. The early prepayment of the Credit Agreement resulted in a $445,000 loss (due to recording the $98,000 prepayment penalty and writing off the $154,000 unamortized exit fee and the $193,000 of unamortized loan cost) reflected in the loss on debt extinguishment for the year ended December 31, 2014. The second draw of $5.0 million, ("Tranche 2"), was issued during September 2014. The third draw ("Tranche 3") in the amount of $5.0 million was issued in March 2015. In June 2015, the fourth and final draw of $5.0 million, ("Tranche 4"), was issued prior to meeting the Tranche 4 milestones, which were met in July 2015. Each draw was to be repaid in monthly installments, comprised of interest-only monthly payments until May 2016, when installments of interest and principal calculated over a thirty-month amortization period commenced. A balloon payment of the entire principal balance outstanding on October 1, 2017 and all accrued but unpaid interest thereunder was due and payable on October 1, 2017. The interest rate was 9% per annum for Tranche 1 and Tranche 4 and 10.5% per annum for Tranche 2 and Tranche 3. An end of term charge of $1.1 million was payable at the earliest to occur of (1) October 1, 2017, (2) the date the Company prepaid its outstanding Secured Obligations, as defined therein, or (3) the date the Secured Obligations became due and payable. As such, the end of term charge of $1.1 million was paid on May 11, 2016 when the Company prepaid its outstanding Secured Obligations, as defined therein. In connection with the LSA, the Company issued the Hercules Warrants which consisted of 60,000 Series C warrants in March 2014 and 110,000 Series C warrants in September 2014 at the then current price of $5.00 per share. The Hercules Warrants became warrants with a term of five years for the purchase of 70,833 shares of common stock at a price of $12.00 per share upon the closing of the Company's IPO and were therefore reclassified from warrant liability to Additional Paid in Capital within Stockholders' Equity at July 22, 2015. End of term charge amortization to interest expense totaled $121,000, $311,000 and $128,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Debt discount amortization to interest expense for the senior debt totaled $104,000, $265,000 and $140,000 for the years ended December 31, 2016, 2015 and 2014, respectively. As of July 22, 2015, the fair values of the Hercules Warrants were remeasured and a 2015 cumulative change in fair value of approximately $157,000 was recorded in other income (expense), net in the Company's consolidated statements of operations for the year ended December 31, 2015. The early prepayment of the LSA with some of the proceeds from the Facility resulted in a $1,187,000 loss on debt extinguishment which is separately shown in the consolidated statement of operations for the year ended December 31, 2016. Credit Agreement: Previously, the Company had a credit agreement entered into on August 20, 2012 (the "Credit Agreement") with a financial institution. The Credit Agreement provided for a four-year $10.0 million term loan, with an annual interest rate of 9.5% payable monthly. The proceeds from the initial $10.0 million draw on the LSA were used to repay the outstanding $10.0 million Credit Agreement balance and $697,000 of interest expense related to the Credit Agreement in March 2014. The early prepayment of the Credit Agreement resulted in a $445,000 loss reflected in loss on debt extinguishment for the year ended December 31, 2014. 10% subordinated related party note: The Company had a Note in the aggregate principal amount of $5.9 million that was issued by the Company to Essex which was to mature in March 2017. Interest was to be accrued and added to the principal balance until such time as the Company achieved positive EBITDA for three consecutive months. On July 19, 2014, the interest rate on the Note was reduced to 6% for the period from July 19, 2014 through June 28, 2015 pursuant to an amendment to the Note entered into as consideration for the $128,000 payment made by the Company to Essex as part of the Settlement and Release of Claims Agreement with Essex and a third party (see Note 17). The Company recorded this amendment as a loan modification. On May 11, 2016, the Company prepaid the $5.9 million outstanding aggregate principal and $1.3 million in accrued and unpaid interest. At December 31, 2015 and December 31, 2014, the aggregate principal amount of the Note was $5.9 million, and $263,000, $548,000 and $511,000 in interest was expensed in the years ended December 31, 2016, 2015 and 2014, respectively. Capital lease obligations to related party: As described in Notes 7 and 17, during the years ended December 31, 2014 and 2013, the Company entered into agreements with a related party for the sale-leaseback of existing and newly acquired assets with a total capitalized cost of $795,000 and $5.5 million, respectively, which are classified as capital leases. The approximate imputed interest rate on these leases is 14.5% and interest expense on these leases was $ 204,000, $467,000 and $662,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Future minimum capital lease payments through the year ending December 31, 2017 are as follows: Year ending (in thousands): Total minimum lease payments $ Less amount representing interest ​ ​ ​ ​ ​ Future minimum lease payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Future principal payments of long-term debt, including capital leases, are as follows: Year ending: December 31, (in thousands) 2017 $ 2018 — 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Future principal payments $ ​ ​ ​ ​ ​ Less unamortized debt discount ) Less current portion of long-term debt ) ​ ​ ​ ​ ​ Total long-term debt $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Common stock and redeemable con

Common stock and redeemable convertible preferred stock	12 Months Ended
	Dec. 31, 2016
Common stock and redeemable convertible preferred stock
Common stock and redeemable convertible preferred stock	Note 12. Common stock and redeemable convertible preferred stock Reverse Stock Split On July 10, 2015, the Company filed an amendment to its amended and restated certificate of incorporation, effecting a 1-for-2.4 reverse stock split of the Company's issued and outstanding shares of common stock as approved by the board of directors on July 9, 2015. All issued and outstanding common stock and per share amounts contained in the Company's financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented. Authorized Shares In connection with the closing of the Company's IPO on July 28, 2015, the Company amended and restated its certificate of incorporation to authorize 5,000,000 shares of preferred stock, par value $0.001 per share, and 100,000,000 shares of common stock, par value $0.001 per share. Public Offerings and Related Transactions On July 28, 2015, the Company closed its IPO whereby the Company sold 5,520,000 shares of common stock, at a public offering price of $15.00 per share, which includes 720,000 shares of common stock resulting from the underwriters' exercise of their over-allotment option at the IPO price on July 23, 2015. Proceeds from the Company's IPO, net of underwriting discounts and commissions and other offering costs, were $75.0 million. Upon the closing of the Company's IPO, all of the Company's Preferred Shares converted into shares of the Company's Common Stock, all such Preferred Shares were retired and cancelled and shall not be reissued as shares of such series, and all rights and preferences of those Preferred Shares were cancelled including the right to receive undeclared accumulated dividends. Each of the following occurred in connection with the closing of the Company's IPO on July 28, 2015: • the conversion of all outstanding shares of convertible preferred stock into 9,217,983 shares of the Company's common stock; • the conversion of the Hercules Warrants to purchase 170,000 shares of Series C into warrants to purchase 70,833 shares of the Company's common stock and the resultant reclassification of the warrant liability to Additional Paid in Capital within Stockholders' Equity (Deficit); and • the net exercise of outstanding Series C warrants issued in conjunction with the Series C financing to purchase 947,185 shares of Series C for 78,926 shares of the Company's common stock. The Company had classified its classes of redeemable convertible preferred stock as mezzanine equity based upon the terms and conditions which contain various redemption and conversion features. In connection with the sale of shares of the Company's Series B-1 Redeemable Convertible Preferred Stock ("Series B-1"), the Series B-1 investors also received warrants to purchase 389,474 shares of common stock at an exercise price of $.0024 per share ("Series B-1 warrants"). There were no exercises of Series B-1 warrants in 2014. During the year ended December 31, 2015, the Company issued a total of 286,968 shares of its common stock upon the exercise of Series B-1 warrants held by several investors at an exercise price of $0.0024 per share. During the six months ended June 30, 2016, the Company issued a total of 43,861 shares of its common stock upon the exercise of Series B-1 warrants held by several investors at an exercise price of $0.0024 per share. The remaining Series B-1 warrants to purchase 6,297 shares of common stock expired on June 10, 2016. Between December 2014 and February 2015, the Company closed on an additional Series C preferred stock financing raising a total of $20.6 million, including $7.5 million in December 2014 and $13.1 million during the year ended December 31, 2015. The Company issued 1,499,935 shares in December 2014 and 2,624,936 shares in 2015 through February 25, 2015 of Series C preferred stock. In addition, the Company issued a Series C warrant to purchase one additional share of Series C preferred stock at a purchase price of $5.00 per share for every two purchased shares of Series C preferred stock, provided the investor purchased its pro-rata share of the Series C preferred stock. In the event that the Company's Series C preferred stock converted into common stock or another class of the Company's stock ("Conversion Stock") during the warrant exercise period, then the warrants would become exercisable for the Conversion Stock and the exercise price of those warrants was to be ratably adjusted. The Company issued Series C warrants to purchase 749,967 shares of Series C preferred stock in December 2014 and 1,197,218 shares of Series C preferred stock during the year ended December 31, 2015 (see warrant liability section below). From June 30, 2015 through July 27, 2015, the Company issued a total of 1,000,000 shares of its Series C to several investors upon the exercise of warrants held by those investors at an exercise price of $5.00 per share, for an aggregate exercise price of $5 million. On August 1, 2016 the Company filed a shelf registration statement on Form S-3 with the SEC, which covers the offering, issuance and sale by the Company of up to an aggregate of $125.0 million of its common stock, preferred stock, debt securities, warrants and/or units (the "Shelf"). The Company simultaneously entered into a Sales Agreement with Cowen and Company, LLC, as sales agent, to provide for the offering, issuance and sale by the Company of up to $40.0 million of its common stock from time to time in "at-the-market" offerings under the Shelf (the "ATM Facility"). The Shelf was declared effective by the SEC on August 12, 2016. During the year ended December 31, 2016, we did not make any sales under our ATM Facility. Prior to the closing of the Company's IPO, the rights and preferences of the preferred stock were as follows: Dividends: Dividends could not be paid on the common stock unless equivalent or larger dividends had been paid to holders of the Series C, Series B-1, Series B and Series A Redeemable Convertible Preferred Stock ("Series A") on an as-if converted basis and other financial tests, as defined, had been met. From and after the date of the issuance of the Series B-1 until the retirement and cancellation of Series B-1 in conjunction with the Company's IPO, dividends at the rate per annum of 8% of the Series B-1 original issuance price of $5.00 were accrued on such shares of Series B-1. Dividends accrued from day to day, whether or not declared, and were cumulative. The accruing dividends were to be payable in additional shares of Series B-1, valued at the Series B-1 original issuance price, unless the board of directors of the Company elected to pay all or any portion of the accruing dividends in cash. In accordance with the conversion provision of the Company's Third Amended and Restated Certificate of Incorporation, as amended, which was triggered upon the Company's IPO, all rights with respect to the Preferred Shares of the Company were terminated, including the right to receive undeclared dividends. The Series B-1 cumulative dividends were never declared by the Company's board of directors. Redemption: Prior to the retirement and cancellation of the Company's Preferred Shares as a result of the IPO, the holders of a majority of the outstanding shares of Series C, Series B-1 and Series B, voting together as a single class, could require the Company to redeem the Series C, Series B-1 and Series B at their original purchase price of $5.00 per share in three annual installments by giving a sixty-day notice at any time on or after March 31, 2017. On March 25, 2014, the Company amended the initial redemption date, extending it to November 1, 2017. On each redemption date, the Company was to redeem, on a pro rata basis in accordance with the number of shares of Series C, Series B-1 and Series B owned by each holder, that number of outstanding shares of Series C, Series B-1 and Series B. If the Company did not have sufficient funds legally available to redeem on any redemption date, the Company was to redeem a pro rata portion of each holder's Series C, Series B-1 and Series B out of funds legally available. The Series C, Series B-1 and Series B were to be redeemable on November 1, 2017, their carrying value was being accreted to the minimum redemption value of $5.00 per share or $43,768,000, $27,309,000 and $15,565,000, respectively, over the period from issuance through November 1, 2017 using the effective interest method for issuances through December 31, 2014. Due to the additional issuances of Series C prior to the IPO, the Series C was accreted to the increased minimum redemption value of $5.00 per share, or $57,642,000, over the period from issuance through the IPO effective date using the effective interest method. The amount of accretion recorded in 2015 and 2014 for Series C amounted to $607,000 and $87,000, respectively. The amount of accretion recorded in 2015 and 2014 for Series B-1 was $370,000 and $679,000, respectively. The amount of accretion recorded in 2015 and 2014 for Series B amounted to $192,000 and $352,000, respectively. In accordance with the conversion provision of the Company's Third Amended and Restated Certificate of Incorporation, as amended, which was triggered upon the Company's IPO, all rights with respect to the Preferred Shares of the Company were terminated, including redemption rights. Warrant liability: In connection with the December 2014 $7.5 million additional Series C financing (see above) the Company issued warrants to purchase an aggregate 749,967 shares of the Series C. The proceeds from the December 2014 additional Series C financing with stock purchase warrants were allocated to the two elements based on the fair value of the Series C warrants at time of issuance. The remainder of the proceeds was allocated to the redeemable convertible preferred instrument portion of the transaction, resulting in a discount. The portion of the proceeds so allocated to the warrants is accounted for as a warrant liability and periodically adjusted to fair value through the consolidated statement of operations. The related preferred stock discount is amortized as preferred stock accretion to redemption value over the remaining term until the redemption date using the effective interest method. The fair value of the 749,967 Series C Warrants was $1,335,000, with the residual $6,108,000, net of legal fees of $57,000, allocated to the 1,499,935 shares of Series C as of December 31, 2014. The proceeds from the 2015 additional Series C financing with stock purchase warrants were allocated to the two elements based on the fair value of the Series C warrants at time of issuance. The remainder of the proceeds was allocated to the redeemable convertible preferred instrument portion of the transaction, resulting in a discount. The portion of the proceeds so allocated to the warrants is accounted for as a warrant liability and periodically adjusted to fair value through the consolidated statement of operations. The related preferred stock discount is amortized as preferred stock accretion to redemption value over the remaining term until the redemption date using the effective interest method. The fair value of the 1,197,218 Series C warrants was $2,131,000, with the residual $10,916,000, net of legal fees of $78,000, allocated to the 2,624,936 shares of Series C. On the IPO effective date of July 22, 2015, the Series C warrant fair values were remeasured for a final time and an increase in fair value of approximately $1,698,000 has been recorded in other income (expense), net in the Company's consolidated statements of operations for year ended December 31, 2015. Upon the closing of the Company's IPO, all of the shares of the Company's redeemable convertible preferred stock ("Preferred Shares") were retired and cancelled and shall not be reissued as shares of such series, and all rights and preferences of those Preferred Shares were cancelled including the right to receive undeclared accumulated dividends. On the IPO closing date, all outstanding shares of redeemable preferred stock converted into 9,217,983 shares of common stock and all remaining outstanding Series C warrants issued in conjunction with purchases of Series C were net exercised at the IPO price for 78,926 shares of common stock.

Stock options, restricted stock

Stock options, restricted stock and performance stock options	12 Months Ended
	Dec. 31, 2016
Stock options, restricted stock and performance stock options
Stock options, restricted stock and performance stock options	Note 13. Stock options, restricted stock and performance stock options In July 2015, the Company adopted the Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan ("2015 Plan") which became effective immediately prior to the closing of the IPO and initially had 767,330 shares of common stock reserved for issuance. On January 1, 2016 and each January 1 thereafter, the number of shares of common stock reserved and available for issuance under the 2015 Plan shall be cumulatively increased by five percent of the number of shares of stock issued and outstanding on the immediately preceding December 31 or such lesser number of shares determined by the administrator of the 2015 Plan (the "Evergreen Provisions"). Accordingly, on January 1, 2016, the Company added 800,797 shares to the option pool and on January 1, 2017, the Company added 803,049 shares to the option pool. The 2015 Plan superseded the Neos Therapeutics, Inc. 2009 Equity Plan ("2009 Plan"), originally adopted in November 2009 and which had 1,375,037 shares for reserved and available for issuance. Effective upon closing of the IPO, the board of directors determined not to grant any further awards under the 2009 Plan. The shares of common stock underlying any awards that are forfeited, canceled, reacquired by the Company prior to vesting, satisfied without the issuance of stock or otherwise terminated (other than by exercise) under the 2009 Plan will be added to the shares of common stock available under the 2015 Plan. This number is subject to adjustment in the event of a stock split, stock dividend or other change in the Company's capitalization. The 2015 Plan is administered by the Company's compensation committee. The Company's compensation committee has full power to select, from among the individuals eligible for awards, the individuals to whom awards will be granted, to make any combination of awards to participants and to determine the specific terms and conditions of each award, subject to the provisions of the 2015 Plan. The Company's compensation committee may delegate authority to grant certain awards to the Company's chief executive officer. The exercise price per share for the stock covered by a stock option granted shall be determined by the administrator at the time of grant but shall not be less than 100 percent of the fair market value on the date of grant. Unexercised options under the 2015 Plan expire after the earlier of 10 years or termination of employment, except in the case of any unexercised vested options, which generally expire 90 days after termination of employment. The 2009 Plan allowed the Company to grant options to purchase shares of the Company's common stock. Options were granted to officers, employees, nonemployee directors and consultants, and independent contractors of the Company. The Company also granted performance based awards to selected management. The performance options vested over a three-year period based on achieving certain operational milestones and the remaining options vest in equal increments over a four-year period. Unexercised options under the 2009 Plan expire after the earlier of 10 years or termination of employment, except in the case of any unexercised vested options, which generally expire 90 days after termination of employment. All terminated options are available for reissuance under the 2015 Plan. Since the inception of the 2015 Plan through December 31, 2016, 7,500 shares related to forfeited 2009 Plan options and 18,906 shares related to the surrender of restricted stock were transferred into the shares available under the 2015 Plan. As of December 31, 2016, 210,599 shares of common stock remain available for grant under the 2015 Plan. The Company estimates the fair value of all stock option awards on the grant date by applying the Black-Scholes option pricing valuation model. The application of this valuation model involves assumptions that are highly subjective, judgmental and sensitive in the determination of compensation cost. Prior to the IPO, given the absence of an active market for the Company's common stock prior to its IPO, the Company's board of directors was required to estimate the fair value of its common stock at the time of each option grant primarily based upon valuations performed by a third party valuation firm. The weighted-average key assumptions used in determining the fair value of options granted during the periods indicated are as follows: Year Ended December 31, 2016 2015 2014 Estimated dividend yield % % % Expected stock price volatility % % % Weighted-average risk-free interest rate % % % Expected life of option in years Weighted-average option fair value at grant $ $ $ The Company has reported share-based compensation expense for stock options granted to employees for the years ended December 31, 2016, 2015 and 2014, respectively, in its consolidated statements of operations as follows: Year Ended December 31, 2016 2015 2014 (in thousands) Cost of goods sold $ $ $ Research and development Selling and marketing General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2016, there was $8.8 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to unamortized stock options compensation which is expected to be recognized over 2.7 years. For the year ended December 31, 2016, the Company issued 10,886 shares of the Company's common stock upon the exercise of outstanding stock options and received proceeds of $13,000 and realized no tax benefit from the exercised stock options. For the year ended December 31, 2015, the Company issued 38,307 shares of the Company's common stock upon the exercise of outstanding stock options and received proceeds of $74,000 and realized no tax benefit from the exercised of stock options A summary of outstanding and exercisable options as of December 31, 2016 and 2015, and changes during the periods then ended is presented below: Number of Weighted-Average Intrinsic (in thousands) Outstanding at January 1, 2014 $ Granted Exercised ) Expired, forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2014 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2014 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted Exercised ) Expired, forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted Exercised ) Expired, forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted-average remaining contractual life of options outstanding and exercisable on December 31, 2016 was 8.5 and 7.6 years, respectively. The option exercise price for all options granted in the year ended December 31, 2016 ranged from $8.84 to $10.96 per share. Restricted stock: Under the 2009 Plan, the Company grants restricted stock awards to members of its management and selected members of the board of directors. Restricted stock awards are recorded as deferred compensation and amortized into compensation expense, on a straight-line basis over a defined vesting period ranging from 1 to 48 months. In 2013, the Company issued 149,244 shares of restricted stock at a grant date fair value of $2.55 per share. Of these shares, 7,195 vested immediately and the remaining 142,049 of these shares vest over 48 months in four equal tranches on the anniversary of the issue date. The Company did not issue any shares of restricted stock for the years ended December 31, 2016, 2015 or 2014. During the years ended December 31, 2016, 2015 and 2014, $91,000, $94,000 and $90,000, respectively, of restricted stock compensation cost has been charged to general and administrative expenses. At December 31, 2016, there was $71,000 of unrecognized compensation cost related to restricted stock which will be recognized over 0.8 years. In 2014, the Company settled certain vested restricted stock awards which were settled having a value of $266,000 in cash, and the Company realized a tax benefit of $90,000. On October 16, 2015, the Company settled certain vested restricted stock awards which were settled having a value of $658,000 in cash, and the company realized a tax benefit of $224,000. On October 16, 2015, 9,197 shares of restricted stock were surrendered by the holder to the Company to cover taxes associated with vesting of restricted stock. The fair value of such shares was determined to be $18.54 per share, the closing price of the Company's stock on such date. On October 17, 2016, the Company settled certain vested restricted stock awards having a value of $226,000 in cash and the Company realized a tax benefit of $79,000. On October 17, 2016, 9,709 shares of restricted stock were surrendered by the holder to the Company to cover taxes associated with vesting of restricted stock. The fair value of such shares was determined to be $6.37 per share, the closing price of the Company's stock on such date. The Company had 35,513 and 71,025 shares of unvested restricted stock with a weighted average fair value of $2.55 as of December 31, 2016 and 2015, respectively. A summary of the status of the Company's nonvested restricted stock as of December 31, 2016 and December 31, 2015, and changes during the periods ended December 31, 2016 and December 31, 2015, is presented below: Number of Weighted- Nonvested at January 1, 2014 $ Granted — — Vested ) Forfeited — — ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at December 31, 2014 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted — — Vested ) Forfeited — — ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted — — Vested ) Forfeited — — ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Treasury stock

Treasury stock	12 Months Ended
	Dec. 31, 2016
Treasury stock.
Treasury stock	Note 14. Treasury stock The Company has the authority to repurchase common stock from former employees, officers, directors or other persons who performed services for the Company at the lower of the original purchase price or the then-current fair market value. On February 19, 2015, the Company's board of directors approved the cancellation of the Company's 55,905 shares of treasury stock which had been repurchased at the original purchase price of $0.002 in 2013. On October 17, 2016 and October 16, 2015, 9,709 shares and 9,197 shares, respectively, of restricted stock were surrendered by the holder to the Company to cover taxes associated with vesting of restricted stock and such shares were added back into the treasury stock of the Company, increasing total treasury stock to 18,906 shares.

Commitments and contingencies

Commitments and contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and contingencies
Commitments and contingencies	Note 15. Commitments and contingencies Patent Infringement Litigation: On July 25, 2016, the Company received a paragraph IV certification from Actavis Laboratories FL, Inc. ("Actavis") advising the Company that Actavis has filed an Abbreviated New Drug Application ("ANDA") with the FDA for a generic version of Adzenys XR-ODT. The certification notice alleges that the four U.S. patents listed in the FDA's Orange Book for Adzenys XR-ODT, one with an expiration date in April 2026 and three with expiration dates in June 2032, will not be infringed by Actavis's proposed product, are invalid and/or are unenforceable. On September 1, 2016, the Company filed a patent infringement lawsuit in federal district court against Actavis. This case alleges that Actavis infringed the Company's Adzenys XR-ODT patents by submitting to the FDA an ANDA seeking to market a generic version of Adzenys XR-ODT prior to the expiration of the Company's patents. This lawsuit automatically stayed, or barred, the FDA from approving Actavis's ANDA for 30 months or until a district court decision that is adverse to the asserted patents is rendered, whichever is earlier. Neos intends to vigorously enforce its intellectual property rights relating to Adzenys XR-ODT. The Company cannot predict the timing or outcome of these proceedings. Defined contribution plans: The Company maintains a defined contribution plan covering substantially all employees under the provisions of Section 401(k) of the Internal Revenue Code ("Code"). As the Company has elected a Safe-Harbor provision for the 401(k) Plan, participants are always fully vested in their employer contributions. Employees may contribute annually up to the lesser of 50% of their compensation or the applicable limit established by the Code. Through December 31, 2014, the Company was required to make a matching contribution to the 401(k) plan of 50%, to a limit of 6%, of the participant's annual compensation, which was paid in the first quarter of 2015. Effective January 1, 2015, the Company amended its 401(k) plan to provide a Company matching contribution on 100% of a participant's contribution for the first 3% of their salary deferral and 50% of the next 2% of their salary deferral. For the years ended December 31, 2016, 2015 and 2014, the Company recorded $371,000, $186,000 and $82,000, respectively, of expense for 401(k) contributions. Operating leases: The Company leases its Grand Prairie, Texas office space and manufacturing facility under an operating lease which expires in 2024. In addition, the Company has a 60-month lease for office space in Blue Bell, Pennsylvania for its commercial operations which commenced on May 1, 2016. Total future minimum lease payments under these operating leases with noncancelable terms are as follows: Year ending December 31, (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Future minimum lease payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company accounts for rent expense on long-term operating leases on a straight-line basis over the life of the lease resulting in a deferred rent balance of $1,174,000 and $1,166,000 at December 31, 2016 and December 31, 2015, respectively. The Company is also liable for a share of operating expenses for both premises as defined in the lease agreements. The Company's share of these operating expenses for both locations was $230,000 for the year ended December 31, 2016. The Company's share of these operating expenses for the Grand Prairie facility was $237,000 and $251,000 for the years ended December 31, 2015 and 2014, respectively. Rent expense for these leases, excluding the share of operating expenses, was $1,011,000, $884,000 and $896,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Cash incentive bonus plan: In July 2015, the Company adopted the Senior Executive Cash Incentive Bonus Plan ("Bonus Plan"). The Bonus Plan provides for cash payments based upon the attainment of performance targets established by the Company's compensation committee. The payment targets will be related to financial and operational measures or objectives with respect to the Company, or corporate performance goals, as well as individual targets. The Company has recorded $464,000 and $552,000 of compensation expense for the years ended December 31, 2016 and 2015, respectively, under the Bonus Plan.

License agreements

License agreements	12 Months Ended
	Dec. 31, 2016
License agreements
License agreements	Note 16. License agreements On July 23, 2014, the Company entered into a Settlement Agreement and an associated License Agreement with Shire LLC for a non-exclusive license to certain patents for certain activities with respect to the Company's new drug application No. 204326 for an extended-release orally disintegrating amphetamine polistirex tablet ("Neos NDA"). In accordance with the terms of the Agreement, following the receipt of the approval from the FDA for Adzenys XR-ODT, the Company paid a lump sum, non-refundable license fee of an amount less than $1.0 million on February 26, 2016. This license fee was capitalized as an intangible asset and is being amortized over the life of the longest associated patent. The Company is paying a single digit royalty on net sales of Adzenys XR-ODT during the life of the patents. The royalties are being recorded as cost of goods sold in the same period as the net sales upon which they are calculated.

Related party transactions

Related party transactions	12 Months Ended
	Dec. 31, 2016
Related party transactions
Related party transactions	Note 17. Related party transactions At December 31, 2015 and December 31, 2014, the Company was obligated under a $5,935,000 long-term subordinated note ("Note") that was issued by the Company to Essex. See Note 11 for further details. On July 21, 2014, the Company, Essex and a third party entered into a Settlement Agreement and Release of Claims Agreement resolving certain issues and disputes whereby Essex paid $256,000 to the third party, the Company paid Essex $128,000 and Essex agreed to reduce the interest rate on the Note from 10% to 6% for the July 19, 2014 through June 28, 2015 period. The third party released both Essex and the Company from any and all claims. The Company repaid this Note and the related accrued interest on May 11, 2016 using proceeds from the new $60 million Facility (see Note 11). As described in Note 7, in 2012, the Company negotiated financing arrangements with a related party that provided for the sale-leaseback of up to $6.5 million of the Company's property and equipment. In 2013, the Company executed four transactions totaling $5.5 million and in March 2014, the Company completed the final tranche of the sale-leaseback arrangement, raising an additional $795,000. The two February 2013 leases for $3.5 million of assets expired in July 2016 and the related $2.6 million gain was fully amortized at that time and the $385,000 lease buy-out option liability was fully satisfied. The July 2013 leases for a total of $1.0 million of assets expired in December 2016 and the related $0.1million loss had been recorded at inception of the lease and the $100,000 lease buy-out option liability was fully satisfied. During 2014, the Company contracted for approximately $112,000 in consulting and testing services with a company affiliated with the Company's Chairman of the board of directors. As the Company's Chairman is no longer affiliated with this consulting and testing services company, there are no such related party transactions in 2015 or 2016. The cost of the acquired services was negotiated at arm's length and priced at commercially available rates.

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2016
Selected Quarterly Financial Data (Unaudited)
Selected Quarterly Financial Data (Unaudited)	Note 18. Selected Quarterly Financial Data (Unaudited) The following financial information reflects all normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods. Operating results for these periods are not necessarily indicative of the operating results for a full year. Historical results are not necessarily indicative of results to be expected in future periods. Selected quarterly financial data for years ended December 31, 2016 and 2015, are as follows (in thousands, except share and per share amounts): Quarter Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Net sales $ $ $ $ Gross loss ) ) ) ) Net loss $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preferred stock accretion to redemption value ) ) ) — Preferred stock dividends ) ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss attributable to common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding used to compute net loss per share, basic and diluted(1)(2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss per share of common stock, basic and fully diluted(3): $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Net sales(4) $ $ $ $ Gross profit (loss)(4) ) ) ) ) Net loss attributable to common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding used to compute net loss per share, basic and diluted(1)(2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss per share of common stock, basic and fully diluted(3): $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) In connection with the IPO, the Company's Board of Directors approved a 1-for-2.4 reverse stock split of the Company's common stock which also resulted in a proportional adjustment to the conversion ratios of the preferred stock and the preferred stock warrants. All references to common stock and per share amounts in these condensed financial statements and accompanying footnotes have been retroactively adjusted for all periods presented to give effect to this reverse stock split. (2) Between June 30, 2015 and July 27, 2015, the Company issued a total of 1,000,000 shares of its Series C redeemable convertible preferred stock to several existing investors upon the exercise of warrants to purchase Series C preferred stock held by those investors at an exercise price of $5.00 per share, for an aggregate exercise price of $5.0 million. On the IPO closing date, all outstanding shares of redeemable preferred stock converted into 9,217,983 shares of common stock and all remaining outstanding Series C warrants issued in conjunction with purchases of Series C preferred stock were net exercised at the IPO price for 78,926 shares of common stock. Upon the closing of the Company's IPO, all of the shares of the Company's redeemable convertible preferred stock were retired and cancelled and shall not be reissued as shares of such series, and all rights and preferences of those Preferred Shares were cancelled including the right to receive undeclared accumulated dividends. On July 28, 2015, the Company closed its initial public offering whereby the Company sold 5,520,000 shares of common stock, at a public offering price of $15.00 per share, which includes 720,000 shares of common stock resulting from the underwriters' exercise of their over-allotment option at the IPO price on July 23, 2015. These transactions produced a significant increase in the number of shares outstanding which will impact the year-over-year comparability of the Company's loss per share calculations. (3) Loss per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly loss per share may not necessarily equal the total for the year. (4) The Company began selling Adzenys XR-ODT on May 16, 2016, and has determined that at this time it cannot reliably estimate expected returns of the product at the time of shipment to wholesalers. Accordingly, the Company defers recognition of revenue and related cost of goods sold on product shipments of Adzenys XR-ODT until the right of return no longer exists, which occurs at the earlier of the time Adzenys XR-ODT units are dispensed through patient prescriptions or expiration of the right of return. Thus, the amounts included in Net Sales and Gross profit (loss) for Adzenys XR-ODT reflect only patient prescriptions dispensed to date. Also, the Net loss amounts in 2016 reflect the sales and marketing expenses associated with the commercialization of Adzenys XR-ODT.

Subsequent events

Subsequent events	12 Months Ended
	Dec. 31, 2016
Subsequent events
Subsequent events	Note 19. Subsequent events On January 1, 2017, in accordance with the Evergreen Provisions of the 2015 Plan, the Company added 803,049 shares to the option pool, increasing the total number of shares reserved and available for issuance under the 2015 Plan to 1,013,648 shares. On February 6, 2017, the Company exercised the option to defer the fourth interest payment due March 1, 2017 under the Facility, and will add, when otherwise due, such amount to the outstanding loan principal until it is paid on June 1, 2017. On February 8, 2017, the Company closed an underwritten public offering of 5,000,000 shares of its common stock at a public offering price of $5.00 per share, before underwriting discounts and commissions. The Company's senior lender participated in the Company's public offering. In addition, on February 17, 2017, the underwriters elected to exercise their option in full to purchase up to an additional 750,000 shares of common stock at the $5.00 per share public offering price, less underwriting discounts and commissions. The net proceeds to the Company from this offering, after deducting underwriting discounts and commissions and other offering expenses payable by the Company were approximately $26.8 million. The shares of common stock were offered pursuant to a shelf registration statement on Form S-3, including a base prospectus, filed by the Company on August 1, 2016 and declared effective by the Securities and Exchange Commission, or the SEC, on August 12, 2016. In February 2017, the Company closed on a 36-month capital lease line of up to $5 million with a related party to finance its capital expenditures. Each tranche will have a bargain purchase option at the end of the respective lease.

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2016
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II Balance Additons Due to (paid to) third Deductions Balance For the year ended December 31, 2016 Allowance for chargebacks (1) $ $ $ — $ ) $ Allowance for cash discounts (1) ) ) Sales offers (2) — — ) — Reserve for wholesaler fees (2) ) Reserve for returns (2) — ) Rebates (2) ) For the year ended December 31, 2015 Allowance for chargebacks (1) — ) Allowance for cash discounts (1) — ) Sales offers (2) — — — — — Reserve for wholesaler fees (2) — ) Reserve for returns (2) — ) Rebates (2) — ) For the year ended December 31, 2014 Allowance for chargebacks (1) — — ) Allowance for cash discounts (1) — — ) Sales offers (2) — — — — — Reserve for wholesaler fees (2) — — ) Reserve for returns (2) — — — Rebates (2) — — — (1) Shown as a reduction of accounts receivable and gross sales or deferred sales as indicated in column heading. (2) Shown as accrued expenses and a reduction of gross sales.

Summary of significant accoun28

Summary of significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2016
Summary of significant accounting policies
Basis of Presentation	Basis of Presentation: The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, and with the rules and regulations of the Securities and Exchange Commission, or SEC.
Principles of consolidation	Principles of consolidation: At each of December 31, 2016 and 2015, the consolidated financial statements include the accounts of the Company and its four wholly-owned subsidiaries. At December 31, 2014, Neos Therapeutics, Inc. owned, directly or indirectly, 100% of two of its subsidiaries and 99.9% of the third subsidiary, Neostx, Inc. ("NTX"). The remaining 0.1% ownership of NTX was held by a third party and all such remaining capital stock was acquired by the Company on June 29, 2015, and NTX was merged with and into the Company. The amounts attributable to the noncontrolling interest were not material to the consolidated financial statements. On September 16, 2015, the Company established two new wholly-owned subsidiaries, Neos Therapeutics Brands, LLC and Neos Therapeutics Commercial, LLC. All significant intercompany transactions have been eliminated.
Cash equivalents	Cash equivalents: The Company invests its available cash balances in bank deposits and money market funds. The Company considers highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. The Company's primary objectives for investment of available cash are the preservation of capital and the maintenance of liquidity.
Short-term investments	Short-term investments: Short-term investments consist of debt securities that have original maturities greater than three months but less than or equal to one year and are classified as available-for-sale securities. Such securities are carried at estimated fair value, with any unrealized holding gains or losses reported, net of any tax effects reported, as accumulated other comprehensive loss, which is a separate component of stockholders' equity. Realized gains and losses, and declines in value judged to be other-than-temporary, if any, are included in other income (expense) in the consolidated results of operations. A decline in the market value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a reduction in fair value charged to earnings in that period, and a new cost basis for the security is established. Dividend and interest income are recognized in other income when earned. The cost of securities sold is calculated using the specific identification method. The Company places all investments with government agencies, or corporate institutions whose debt is rated as investment grade. The Company classifies all available-for-sale marketable securities with maturities greater than one year from the balance sheet date, if any, as non-current assets.
Allowance for doubtful accounts	Allowance for doubtful accounts: The allowance for doubtful accounts is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management determines the adequacy of the allowance based on reviews of individual accounts, historical losses, existing economic conditions and estimates based on management's judgments in specific matters. Accounts are written off as they are deemed uncollectible based on periodic review of the accounts. There is no allowance for doubtful accounts at December 31, 2016 or December 31, 2015, as management believes that all receivables are fully collectible.
Fair value of financial instruments	Fair value of financial instruments: The carrying value of the Company's financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, other current assets, accounts payable, accrued expenses, and debt, approximates fair value due to the short-term nature of the instruments and/or the current interest rates payable in relation to current market conditions. The fair value of the Company's warrants and earnout liabilities is disclosed in Note 4.
Inventories	Inventories: Inventories are stated at the lower of cost (first in, first out) or market and have been reduced by an allowance for excess and obsolete inventories. Cost elements include material, labor and manufacturing overhead. Inventories consist of raw materials, work in process, finished goods and deferred cost of goods sold. The cost of sales associated with the deferred product revenues are recorded as deferred costs of goods sold that are released from inventory into cost of goods sold as the deferred revenue is recognized into revenue. Until objective and persuasive evidence exists that regulatory approval has been received and future economic benefit is probable, pre-launch inventories are expensed into research and development. Manufacturing costs for the production of Adzenys XR-ODT incurred after the January 27, 2016 FDA approval date are being capitalized into inventory.
Deferred contract sales organization fees	Deferred contract sales organization fees: The Company records fees billed in accordance with its commercial sales organization contract for services not yet performed as deferred contract sales organization fees. Such fees are recorded as selling and marketing expenses when the services are provided.
Property and equipment	Property and equipment: Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the respective lease term or the estimated useful lives of the assets.
Intangible assets	Intangible assets: Intangible assets subject to amortization, which principally include proprietary modified-release drug delivery technology and the costs to acquire the rights to Tussionex ANDA, are recorded at cost and amortized over the estimated lives of the assets which primarily range from 10 to 20 years.
Impairment of long-lived assets	Impairment of long-lived assets: Long-lived assets such as property and equipment and intangibles subject to amortization are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset group may not be recoverable. Such assets are also evaluated for impairment in light of the Company's continuing losses. If the estimated future cash flows (undiscounted and without interest charges) from the use of an asset are less than the carrying value, a write-down would be recorded to reduce the related asset to its estimated fair value. No impairment charges were recorded for the years ended December 31, 2016, 2015 or 2014.
Patent costs	Patent costs: The Company estimates that the patents it has filed have a future beneficial value. Therefore, costs associated with filing for its patents are capitalized. Once the patent is approved and commercial revenue realized, the costs associated with the patent are amortized over the useful life of the patent. If the patent is not approved, the costs will be expensed.
Revenue recognition	Revenue recognition: Revenue is generated from product sales, recorded on a net sales basis, and historically, manufacturing, development and profit sharing from a development and manufacturing agreement. Product revenue is recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) price to the buyer is fixed and determinable; and (4) collectability is reasonably assured. Revenue from sales transactions where the buyer has the right to return the product is recognized at the time of sale only if (1) the price to the buyer is substantially fixed or determinable at the date of sale, (2) the buyer has paid for the product, or the buyer is obligated to pay for the product and the obligation is not contingent on resale of the product, (3) the buyer's obligation to pay would not be changed in the event of theft or physical destruction or damage of the product, (4) the buyer acquiring the product for resale has economic substance apart from that provided by the Company, (5) the Company does not have significant obligations for future performance to directly bring about resale of the product by the buyer, and (6) the amount of future returns can be reasonably estimated. The Company sells its generic Tussionex to a limited number of pharmaceutical wholesalers. Pharmaceutical wholesalers buy drug products directly from manufacturers. Title to the product passes upon delivery to the wholesalers, when the risks and rewards of ownership are assumed by the wholesaler (freight on board destination). These wholesalers then resell the product to retail customers such as food, drug and mass merchandisers. The Company has a limited sales history for Adzenys XR-ODT and has determined that at this time it cannot reliably estimate expected returns of the product at the time of shipment to wholesalers. Accordingly, the Company defers recognition of revenue on product shipments of Adzenys XR-ODT until the right of return no longer exists, which occurs at the earlier of the time Adzenys XR-ODT units are dispensed through patient prescriptions or expiration of the right of return. The Company calculates patient prescriptions of Adzenys XR-ODT dispensed using an analysis of third-party information. The Company's manufacturing, profit sharing and development revenue ended in 2014 as the Company has terminated the Company's development and manufacturing agreement. As a result of the Company's acquisition of the rights to commercialize and derive future profits from the Tussionex ANDA, the Company will utilize its manufacturing capability to derive revenue directly from sales made by the Company, rather than through the Company's commercial partner.
Net product sales	Net product sales Net product sales for the Company's products represent total gross product sales less gross to net sales adjustments. Gross to net sales adjustments include savings offers, prompt payment discounts, wholesaler fees and estimated allowances for product returns, rebates and chargebacks to be incurred on the selling price of the respective product sales. Wholesale distribution fees based on definitive contractual agreements are incurred on the management of these products by wholesalers and are recorded within net sales for generic Tussionex and as deferred wholesale distribution fees in other current assets for Adzenys XR-ODT. The deferred wholesale distribution fees for Adzenys XR-ODT are later recorded within net product sales when revenue associated with those fees is recognized. The Company estimates and records gross to net sales adjustments for product returns, rebates and chargebacks based upon analysis of third-party information, including information obtained from the Company's third party logistics providers ("3PLs"), with respect to its inventory levels and sell-through to the wholesalers' customers, for savings offers from data available from third parties regarding savings offers processed for prescriptions written for the Company's products, and, for generic Tussionex, experience reported by the Company's previous commercialization partners. Due to estimates and assumptions inherent in determining the amount of returns, rebates and chargebacks, the actual amount of returns and claims for rebates and chargebacks may be different from the estimates, at which time reserves would be adjusted accordingly. Wholesale distribution fees and the allowance for prompt pay discounts are recorded at the time of shipment and such fees and allowances and all other accruals are recorded in the same period that the related revenue is recognized.
Savings offers	Savings offers The Company offers savings programs for Adzenys XR-ODT to patients covered under commercial payor plans in which the cost of a prescription to such patients is discounted. The Company records the amount redeemed based on information from third-party providers and recognizes the discount as a reduction of revenue in the same period the related revenue is recognized.
Product returns	Product returns Wholesalers' contractual return rights are limited to defective product, product that was shipped in error, product ordered by customer in error, product returned due to overstock, product returned due to dating or product returned due to recall or other changes in regulatory guidelines. The return policy for expired product allows the wholesaler to return such product starting six months prior to expiry date to twelve months post expiry date. Generic Tussionex product returns are estimated based upon data available from sales of the Company's product by its previous commercialization partner and from actual experience as reported by retailers. Historical trend of returns will be continually monitored and may result in future adjustments to such estimates. On August 26, 2014, the U.S. Drug Enforcement Agency reclassified the Company's generic Tussionex from a Schedule III controlled substance to a Schedule II controlled substance which had the effect of requiring unsold product at the wholesalers and the 3PL to either be relabeled or returned. This new ruling was effective October 6, 2014. As such, the Company established reserves for the estimated returns of such product outstanding at the wholesalers as of October 6, 2014. The Company had no inventory labeled as Schedule III at the 3PL as of the effective date.
Rebates	Rebates The Company's products are subject to commercial managed care and government-managed Medicare and Medicaid programs whereby discounts and rebates are provided to participating state governments. Estimated rebates payable under such programs are recorded as a reduction of revenue at the time revenues are recorded. Calculations related to these rebate accruals are estimated based on information from third-party providers. Historical trend of such rebates will be continually monitored and may result in future adjustments to such estimates.
Wholesaler Chargebacks	Wholesaler Chargebacks The Company's products are subject to certain programs with wholesalers whereby pricing on products is discounted below wholesaler list price to participating entities. These entities purchase products through wholesalers at the discounted price, and the wholesalers charge the difference between their acquisition cost and the discounted price back to the Company. Chargebacks are accounted for by establishing an accrual in an amount equal to the Company's estimate of chargeback claims at the time of product sale based on information provided by third parties. Due to estimates and assumptions inherent in determining the amount of chargebacks, the actual amount of claims for chargebacks may be different from estimates, which may result in adjustments to such reserves.
Manufacturing	Manufacturing Manufacturing revenue is derived from product manufactured by the Company and sold by the Company's commercial partner under a development and manufacturing agreement. Manufacturing revenue is derived from a contractual supply price paid to the Company by the Company's commercial partners.
Profit sharing	Profit sharing Profit sharing revenue is recorded as the product is sold by the Company's commercial partner. The profit share is the Company's share of the net profits after taking into account net revenue, which is gross product sales by the Company's commercial partner, net of discounts, returns and allowances incurred by the Company's commercial partner, less collaboration expenses.
Development revenue	Development revenue Development revenue from the development and manufacturing agreement has been recognized as the related services are completed. Development revenue in the form of milestone payments is recognized upon achievement of the related milestones and provided that collectability is reasonably assured and other revenue recognition criteria are met. Amounts received under cost reimbursement arrangements for production and research and development are recorded as offsets to the costs incurred and not recognized as revenue.
Distribution expenses	Distribution expenses: Costs invoiced to the Company by its third party logistics firm are classified as cost of goods sold in the consolidated statements of operations.
Shipping and handling costs	Shipping and handling costs: Amounts billed to customers for shipping and handling fees for the delivery of goods are classified as cost of goods sold in the consolidated statements of operations.
Advertising costs	Advertising costs: Advertising costs are comprised of print and electronic media placements that are expensed as incurred. The Company recognized advertising costs of $7.4 million during the year ended December 31, 2016. There were no advertising costs incurred during the years ended December 31, 2015 and 2014.
Research and development costs	Research and development costs: Research and development costs are charged to operations when incurred, include salaries and benefits, facilities costs, overhead costs, raw materials, laboratory and clinical supplies, clinical trial costs, contract services, fees paid to regulatory authorities for review and approval of the Company's product candidates and other related costs, and are included in research and development in the consolidated statements of operations. During the third quarter of 2016, the Company reclassified its approved product and facility regulatory fees out of research and development expense and into cost of sales commensurate with the commercial launch of Adzenys XR-ODT. The Company has reclassified all such applicable regulatory fees for prior quarters and prior years out of research and development expense and into cost of goods sold in accordance with this approach.
Income taxes	Income taxes: Income taxes are accounted for using the liability method, under which deferred taxes are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax laws that will be in effect when the differences are expected to reverse. Management evaluates the Company's tax positions in accordance with guidance on accounting for uncertainty in income taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not that the position will be sustained upon examination. As of December 31, 2016 and 2015, the Company has unrecognized tax benefits associated with uncertain tax positions in the consolidated financial statements. These uncertain tax positions were netted against net operating losses (NOL's) with no separate reserve for uncertain tax positions required. Deferred tax assets should be reduced by a valuation allowance if current evidence indicates that it is considered more likely than not that these benefits will not be realized. In evaluating the objective evidence that historical results provide, we consider that three years of cumulative operating losses was significant negative evidence outweighing projections for future taxable income. Therefore, management has determined that it is more likely than not that the deferred tax assets will not be realized. Accordingly, the Company has recorded a valuation allowance to reduce deferred tax assets to zero.
Paragraph IV Litigation Costs	Paragraph IV Litigation Costs: Legal costs incurred by the Company in the enforcement of the Company's intellectual property rights are charged to expense as incurred.
Warrants	Warrants: The Company accounts for its warrants and other derivative financial instruments as either equity or liabilities based upon the characteristics and provisions of each instrument. Warrants classified as derivative liabilities are recorded on the Company's balance sheet at their fair value on the date of issuance and prior to completion of the Company's IPO were revalued at each subsequent balance sheet date, with fair value changes recognized as increases or reductions to other income (expense) in the statements of operations. The Company estimates the fair value of its derivative liabilities using third party valuation analysis that utilizes option pricing models and assumptions that are based on the individual characteristics of the warrants or instruments on the valuation date, as well as assumptions for expected volatility, expected life, yield, and risk-free interest rate. Prior to the closing of the IPO, the Company's Series C warrants were determined to be derivative liabilities and they were revalued at each subsequent balance sheet date. Upon closing the IPO, the warrants issued in conjunction with the Series C financing were exchanged in a cashless exercise for 947,185 shares of Series C which converted into 78,926 shares of the Company's common stock. The remaining Series C warrants issued with the senior debt to purchase 170,000 pre-split shares of Series C ("Hercules Warrants") were converted into warrants to purchase 70,833 shares of the Company's common stock and the warrant liability was reclassified to Additional Paid in Capital within Stockholders' Equity (Deficit).
Share-based compensation	Share-based compensation: Share-based compensation awards, including grants of employee stock options and restricted stock and modifications to existing stock options, are recognized in the consolidated statement of operations based on their fair values. Compensation expense related to awards to employees is recognized on a straight-line basis, based on the grant date fair value, over the requisite service period of the award, which is generally the vesting term. The fair value of the Company's stock-based awards to employees and directors is estimated using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including (1) the expected stock price volatility, (2) the expected term of the award, (3) the risk-free interest rate and (4) expected dividends. Due to the previous lack of a public market for the trading of its common stock and a lack of company-specific historical and implied volatility data, the Company has, prior to the IPO, historically utilized third party valuation analyses to determine the fair value. After the closing of the Company's IPO, the Company's board of directors has determined the fair value of each share of underlying common stock based on the closing price of the Company's common stock as reported by the NASDAQ Global Market on the date of grant. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the actual expense recognized over the vesting period will only be for those options that vest. Beginning in July 2016, the Company began recording stock compensation expense in the same income statement line as the cash compensation of the employee with the option in accordance with Staff Accounting Bulletin Topic 14 due to the increased number and amount of options and option compensation. The Company has reclassified all prior periods' amounts out of general and administrative expense to the appropriate income statement line in accordance with this approach.
Use of estimates	Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates.
Concentration of credit risk	Concentration of credit risk: Accounts receivable subjects the Company to concentrations of credit risk. Thirteen customers accounted for all the revenue and deferred revenue in the year ended December 31, 2016 and accounts receivable at December 31, 2016 were due from eleven customers. Two customers accounted for 82% of the net revenue for the year ended December 31, 2016, and three customers accounted for 98% of the accounts receivable at December 31, 2016. Four and two customers accounted for substantially all revenue in the years ended December 31, 2015 and 2014, respectively. Accounts receivable at December 31, 2015 were due from three customers.
Segment information	Segment information: Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment, which is the development, manufacturing and commercialization of pharmaceuticals.
Liquidity	Liquidity: During 2016, 2015 and 2014, the Company produced operating losses and used cash to fund operations. Management intends to achieve profitability through revenue growth from pharmaceutical products developed with its extended-release technologies. The Company does not anticipate it will be profitable until after the successful commercialization of its approved product, Adzenys XR-ODT, or one or more of its ADHD product candidates. Management believes that its existing cash and cash equivalents and short-term investments, taken together with the net proceeds which the Company received from its public offering of common stock completed in February 2017, will be sufficient to fund the Company's operations for at least the next 12 months after the filing of this Annual Report on Form 10-K.
Application of revised accounting standards	Application of revised accounting standards: In April 2012, the Jumpstart Our Business Startups Act (the "JOBS Act"), was enacted in the United States. Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. In 2015, the Company irrevocably elected not to avail itself of this extended transition period and, as a result, will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies.
Recent accounting pronouncements	Recent accounting pronouncements: In August 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This ASU was designed to reduce the diversity in practice of how the eight specified items are presented and classified in the statement of cash flows, including debt prepayment or debt extinguishment costs. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company believes the amendments will not have a significant effect on its ongoing financial reporting as the Company has classified its debt prepayment and debt extinguishment costs, in the Consolidated Statements of Cash Flows in accordance with the amendments. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation—Improvements to Employee Share-Based Payment Accounting (Topic 718) . For public companies, areas of accounting for share-based payment that this ASU was designed to simplify include: the income tax consequences, the accounting policy for forfeitures, the classification of awards as either equity or liabilities and the classification on the statement of cash flows. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those years. The adoption of this standard is not expected to have a material impact on the Company's business, financial position, results of operations or liquidity. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and 2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The Company is evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, Inventory—Simplifying the Measurement of Inventory (Topic 330). The amendments in this ASU require an entity to measure inventory that is not measured using the last-in, first-out (LIFO) or retail inventory methods at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, including interim periods within those years. The Company does not believe that this ASU will have a significant effect on its ongoing financial reporting as valuing inventory at the lower of cost or net realizable value approximates the current policy of valuing inventory at the lower of cost or market. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. ASU 2014-15 is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. This ASU is for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company has performed the review required by this ASU and believes the Company presently has sufficient liquidity to continue to operate for the next twelve months from its filing date. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance replaces transaction-and industry-specific revenue recognition guidance under current U.S. GAAP with a principles-based approach for determining revenue recognition. The new guidance requires an entity to recognize the amount of revenue based on the value of transferred goods or services to customers. There are also additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The FASB delayed the effective date to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. In addition, in March and April 2016, the FASB issued new guidance intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. Both amendments permit the use of either a retrospective or cumulative effect transition method and are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early application permitted. The Company has limited sales history for its branded product that may not allow for reliable estimates of expected returns of the product at the time of shipment to wholesalers. The Company is assessing other market data and the impact of this new standard on its financial statements and has not yet selected a transition method. From time to time, additional new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.
Reclassifications	Reclassifications: Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current period's presentation.

Net loss per share (Tables)

Net loss per share (Tables)	12 Months Ended
	Dec. 31, 2016
Net loss per share
Potentially dilutive securities excluded in the computation of diluted net loss per share	December 31, 2016 2015 2014 Series A Redeemable Convertible Preferred Stock (as converted) — — Series B Redeemable Convertible Preferred Stock (as converted) — — Series B-1 Redeemable Convertible Preferred Stock (as converted) — — Series C Redeemable Convertible Preferred Stock (as converted) — — Series C Redeemable Convertible Preferred Stock Warrants (as converted) Common Stock Warrants — Stock options

Fair value of financial instr30

Fair value of financial instruments (Tables)	12 Months Ended
	Dec. 31, 2016
Methodologies and significant inputs used in the determination of the fair value
Hierarchy for financial instruments measured at fair value on a recurring basis	Fair Value as of December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ $ $ — $ Short-term investments — — Earnout liability — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ $ — $ — $ Earnout liability — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of cash and cash equivalents and short-term investments	December 31, 2016 Amortized Unrealized Market (in thousands) Bank deposits and money market funds $ $ — $ Financial and corporate debt securities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Changes in Level 3 liabilities measured at fair value	Earnout Series C Warrants Series C Warrants (in thousands) Balance at December 31, 2014 $ $ $ Additions during the period — — Changes in fair value ) Warrants exercised — — ) Cashless warrant exercise due to IPO — — ) Conversion to common stock warrant — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2015 $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Earnout liability
Methodologies and significant inputs used in the determination of the fair value
Methodologies and significant inputs used in determination of fair value	Initial Valuation December 31, 2014 December 31, 2015 December 31, 2016 (Dollars in thousands) Date of Valuation 8/28/2014 12/31/2014 12/31/2015 12/31/2016 Valuation Method Monte Carlo Monte Carlo Monte Carlo Monte Carlo Volatility (annual) 50% 50% 50% 50% Risk-free rate (annual) .03% - 3.56% .15% - 3.21% .56% - 3.31% .74% - 3.42% Time period from valuation until end of earnout .1708 - 9.8417 .5 - 9.5 .5 - 9.5 .5 - 9.5 Earnout Target 1 $13,700 $13,700 $13,700 $13,700 Earnout Target 2 $18,200 $18,200 $18,200 $18,200 Discount rate 8.03% - 10.51% 7.96% - 11.03% 8.11% - 10.86% 12.02% - 14.70% ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of liability at valuation date $589 $756 $214 $232 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Series C Warrants Issued with Senior Debt
Methodologies and significant inputs used in the determination of the fair value
Methodologies and significant inputs used in determination of fair value	Series C Warrants Series C Warrants Revalue Series C Revalue Series C (Dollars in thousands, except $5 and $12 Exercise Prices) Date of Valuation 3/28/2014 9/25/2014 12/31/2014 7/22/2015 Valuation Method Black-Scholes-Merton PWERM and Black-Scholes-Merton PWERM and Option Pricing Black-Scholes-Merton Option-Pricing Dividend yield (per share) 0 0 0 0 Exercise price $5 $5 $5 $12 Volatility (annual) 60% 60% 60% 60% Risk-free rate (annual) 0.34% 2.03% .25% - 2.47% 1.78% Contractual term (years) 1.76 5.76 1 - 5 5 Number of warrants 60,000 110,000 170,000 70,833 ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of liability at valuation date $124 $248 $454 $611 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Series C Warrants Issued with Series C Redeemable Preferred Stock Financing | Derivative liability
Methodologies and significant inputs used in the determination of the fair value
Methodologies and significant inputs used in determination of fair value	Initial Valuation of Initial Valuation Initial Valuation Revalue All Warrants (Dollars in thousands, except $5 and $12 Exercise Prices) Date of Valuation 12/31/2014 1/31/2015 2/28/2015 7/22/2015 Valuation Method PWERM and Option Pricing PWERM and Option Pricing PWERM and Option Pricing Intrinsic Value Dividend yield (per share) 0 0 0 0 Exercise price $5 $5 $5 $12 Volatility (annual) 60% 60% 60% — Risk-free rate (annual) .25% - 2.47% .25% - 2.47% .25% - 2.47% — Contractual term (years) 1 - 5 1 - 5 1 - 5 — Number of warrants 749,967 590,906 606,312 1,347,185 ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of liability at valuation date $1,335 $1,052 $1,079 $4,042 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2016
Inventories
Schedule of inventories	December 31, 2016 2015 (in thousands) Raw materials $ $ Work in progress Finished goods Deferred cost of goods sold — ​ ​ ​ ​ ​ ​ ​ ​ Inventory at cost Inventory reserve ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Property and equipment (Tables)

Property and equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property and equipment
Schedule of property and equipment, net	December 31, 2016 2015 (in thousands) Assets under capital lease $ $ Leasehold improvements Manufacturing, packaging and lab equipment Office furniture and equipment Assets under construction ​ ​ ​ ​ ​ ​ ​ ​ Accumulated depreciation and amortization (including $762 and $3,684 at December 31, 2016 and 2015, respectively, applicable to capital leases) ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Sale-leaseback transaction (Tab

Sale-leaseback transaction (Tables)	12 Months Ended
	Dec. 31, 2016
Sale-leaseback transaction
Summary of sale-leaseback transactions	Leases 1 & 2 Lease 3 Lease 4 Lease 5 Total (in thousands) Carrying value at December 31, 2014 $ $ $ $ $ Assets retired in 2015 ) — ) — ) 2015 Amortization ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value at December 31, 2015 $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2016 Amortization ) ) ) ) ) Transfer to property and equipment at end of lease — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying value at December 31, 2016 $ — $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Intangible assets (Tables)

Intangible assets (Tables)	12 Months Ended
	Dec. 31, 2016
Intangible assets
Schedule of intangible assets, net	December 31, 2016 2015 (in thousands) Proprietary modified-release drug delivery technology $ $ Tussionex ANDA CPI profit sharing Other ​ ​ ​ ​ ​ ​ ​ ​ Accumulated amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of aggregate amortization of intangible assets	Year ending December 31: December 31, (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other assets (Tables)

Other assets (Tables)	12 Months Ended
	Dec. 31, 2016
Other assets
Schedule of other assets	December 31, 2016 2015 (in thousands) Patents, net $ $ Deposits ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income taxes
Schedule of significant components of deferred income tax assets and liabilities	December 31, 2016 2015 (in thousands) Deferred Tax Assets: Net operating loss $ $ R&D tax credit Share-based compensation Other reserves Paragraph IV litigation costs Accrued expenses Deferred lease liability Capital lease liability — Earnout liability State deferreds — Deferred gain on sale-leaseback Property and equipment — ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred Tax Liabilities: Intangible assets ) ) Property and equipment ) — Capital lease liability — ) State deferreds — ) Inventory reserve — ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ) ​ ​ ​ ​ ​ ​ ​ ​ Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset (liability) $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of gross unrecognized tax benefits	December 31, 2016 2015 (in thousands) Beginning Balance $ $ Increase/(Decrease) based on tax positions taken during a current period ​ ​ ​ ​ ​ ​ ​ ​ Ending Balance $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of reconciliation of Federal statutory tax rate	Year Ended December 31, 2016 2015 U.S. Statutory Tax Rate % % Provision to Return and Other Adjustments )% )% Change in Valuation Allowance )% )% Deferred Tax Adjustments % )% State tax expense, net % % ​ ​ ​ ​ ​ ​ ​ ​ Tax Expense / (Benefit) % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Long-term debt (Tables)

Long-term debt (Tables)	12 Months Ended
	Dec. 31, 2016
Long-term debt
Schedule of long-term debt	December 31, 2016 2015 (in thousands) Deerfield senior secured credit facility, net of discount of $1,401 $ $ — Senior debt, net of discount of $1,167 — 10% subordinated note payable to a related party — Capital leases, maturing through August 2017 ​ ​ ​ ​ ​ ​ ​ ​ Less current portion ) ) ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of future minimum capital lease payments	Future minimum capital lease payments through the year ending December 31, 2017 are as follows: Year ending (in thousands): Total minimum lease payments $ Less amount representing interest ​ ​ ​ ​ ​ Future minimum lease payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of future principal payments of long-term debt, including capital leases	Year ending: December 31, (in thousands) 2017 $ 2018 — 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Future principal payments $ ​ ​ ​ ​ ​ Less unamortized debt discount ) Less current portion of long-term debt ) ​ ​ ​ ​ ​ Total long-term debt $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Stock options, restricted sto38

Stock options, restricted stock and performance stock options (Tables)	12 Months Ended
	Dec. 31, 2016
Stock options, restricted stock and performance stock options
Schedule of weighted-average key assumptions used in determining fair value of options granted	Year Ended December 31, 2016 2015 2014 Estimated dividend yield % % % Expected stock price volatility % % % Weighted-average risk-free interest rate % % % Expected life of option in years Weighted-average option fair value at grant $ $ $
Schedule of share-based compensation expense for stock options granted to employees	Year Ended December 31, 2016 2015 2014 (in thousands) Cost of goods sold $ $ $ Research and development Selling and marketing General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of outstanding and exercisable options	Number of Weighted-Average Intrinsic (in thousands) Outstanding at January 1, 2014 $ Granted Exercised ) Expired, forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2014 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2014 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted Exercised ) Expired, forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted Exercised ) Expired, forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of status of nonvested restricted stock	Number of Weighted- Nonvested at January 1, 2014 $ Granted — — Vested ) Forfeited — — ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at December 31, 2014 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted — — Vested ) Forfeited — — ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted — — Vested ) Forfeited — — ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Commitments and contingencies (

Commitments and contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and contingencies
Schedule of future minimum lease payments	Year ending December 31, (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Future minimum lease payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Selected Quarterly Financial 40

Selected Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Selected Quarterly Financial Data (Unaudited)
Schedule of selected quarterly financial data	Quarter Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Net sales $ $ $ $ Gross loss ) ) ) ) Net loss $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preferred stock accretion to redemption value ) ) ) — Preferred stock dividends ) ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss attributable to common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding used to compute net loss per share, basic and diluted(1)(2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss per share of common stock, basic and fully diluted(3): $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Net sales(4) $ $ $ $ Gross profit (loss)(4) ) ) ) ) Net loss attributable to common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding used to compute net loss per share, basic and diluted(1)(2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss per share of common stock, basic and fully diluted(3): $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) In connection with the IPO, the Company's Board of Directors approved a 1-for-2.4 reverse stock split of the Company's common stock which also resulted in a proportional adjustment to the conversion ratios of the preferred stock and the preferred stock warrants. All references to common stock and per share amounts in these condensed financial statements and accompanying footnotes have been retroactively adjusted for all periods presented to give effect to this reverse stock split. (2) Between June 30, 2015 and July 27, 2015, the Company issued a total of 1,000,000 shares of its Series C redeemable convertible preferred stock to several existing investors upon the exercise of warrants to purchase Series C preferred stock held by those investors at an exercise price of $5.00 per share, for an aggregate exercise price of $5.0 million. On the IPO closing date, all outstanding shares of redeemable preferred stock converted into 9,217,983 shares of common stock and all remaining outstanding Series C warrants issued in conjunction with purchases of Series C preferred stock were net exercised at the IPO price for 78,926 shares of common stock. Upon the closing of the Company's IPO, all of the shares of the Company's redeemable convertible preferred stock were retired and cancelled and shall not be reissued as shares of such series, and all rights and preferences of those Preferred Shares were cancelled including the right to receive undeclared accumulated dividends. On July 28, 2015, the Company closed its initial public offering whereby the Company sold 5,520,000 shares of common stock, at a public offering price of $15.00 per share, which includes 720,000 shares of common stock resulting from the underwriters' exercise of their over-allotment option at the IPO price on July 23, 2015. These transactions produced a significant increase in the number of shares outstanding which will impact the year-over-year comparability of the Company's loss per share calculations. (3) Loss per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly loss per share may not necessarily equal the total for the year. (4) The Company began selling Adzenys XR-ODT on May 16, 2016, and has determined that at this time it cannot reliably estimate expected returns of the product at the time of shipment to wholesalers. Accordingly, the Company defers recognition of revenue and related cost of goods sold on product shipments of Adzenys XR-ODT until the right of return no longer exists, which occurs at the earlier of the time Adzenys XR-ODT units are dispensed through patient prescriptions or expiration of the right of return. Thus, the amounts included in Net Sales and Gross profit (loss) for Adzenys XR-ODT reflect only patient prescriptions dispensed to date. Also, the Net loss amounts in 2016 reflect the sales and marketing expenses associated with the commercialization of Adzenys XR-ODT.

Organization and nature of op41

Organization and nature of operations (Details)	12 Months Ended
	Dec. 31, 2016item
Organization and nature of operations
Number of approved product	1
Number of proprietary product candidates	2

Organization and nature of op42

Organization and nature of operations - IPO (Details) $ / shares in Units, $ in Millions	Jul. 28, 2015USD ($)$ / sharesshares	Jul. 10, 2015	Jul. 27, 2015USD ($)$ / sharesshares	Dec. 31, 2015shares
Series C Preferred Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Organization and nature of operations
Number of shares issued upon exercise of warrants			1,000,000
Exercise price of warrants (in dollars per share) | $ / shares			$ 5
Proceeds from exercise of warrants (in dollars) | $			$ 5
Common Stock
Organization and nature of operations
Reverse stock split ratio		0.4167
Common Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing | Cashless exercise of redeemable convertible preferred stock warrant into common stock
Organization and nature of operations
Shares issued on conversion	78,926
Common Stock | All series of redeemable convertible preferred stock | Conversion of redeemable convertible preferred stock into common stock
Organization and nature of operations
Shares issued on conversion	9,217,983
IPO | Common Stock
Organization and nature of operations
Shares sold	5,520,000			5,520,000
Public offering price (in dollars per share) | $ / shares	$ 15
Net proceeds from issuance of stock | $	$ 75
Over-allotment option | Common Stock
Organization and nature of operations
Shares sold	720,000

Organization and nature of op43

Organization and nature of operations - Authorized Shares (Details) - shares	Dec. 31, 2016	Dec. 31, 2015	Jul. 28, 2015
Organization and nature of operations
Common stock, authorized shares	100,000,000	100,000,000	100,000,000
Preferred stock, authorized shares	5,000,000	5,000,000	5,000,000

Summary of significant accoun44

Summary of significant accounting policies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)subsidiary	Dec. 31, 2014USD ($)subsidiary	Sep. 16, 2015subsidiary	Jun. 29, 2015	Oct. 06, 2014USD ($)
Significant accounting policies
Allowance for Doubtful Accounts	$ 0	$ 0
Impairment charges	0	0	$ 0
Advertising costs	7,400	0	$ 0
Deferred tax assets, net of valuation allowance	$ 0	$ 0
Wholly-owned subsidiaries
Significant accounting policies
Number of wholly-owned subsidiaries | subsidiary		4	2
Percentage ownership by parent (as a percent)			100.00%
Number of new wholly-owned subsidiaries established | subsidiary				2
Neostx, Inc. ("NTX")
Significant accounting policies
Percentage ownership by parent (as a percent)			99.90%
Minimum
Significant accounting policies
Property and equipment - Useful life	3 years
Intangible assets - useful life	10 years
Maximum
Significant accounting policies
Property and equipment - Useful life	10 years
Intangible assets - useful life	20 years
Neostx, Inc. ("NTX")
Significant accounting policies
Ownership acquired (as a percent)					0.10%
Third party logistics provider - 3PL
Significant accounting policies
Inventory labeled as Schedule III controlled substance that is solely located at the third party logistics provider (does not include inventory at wholesalers)						$ 0

Summary of significant accoun45

Summary of significant accounting policies - Warrants (Details)	Jul. 28, 2015shares
Series C Warrants Issued with Senior Debt | Conversion of redeemable convertible preferred stock warrant into common stock warrant
Warrants
Warrants issued (in shares)	170,000
Common Stock Warrants | Conversion of redeemable convertible preferred stock warrant into common stock warrant
Warrants
Warrants issued (in shares)	70,833
Common Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing | Cashless exercise of redeemable convertible preferred stock warrant into common stock
Warrants
Shares converted	947,185
Shares issued on conversion	78,926

Summary of significant accoun46

Summary of significant accounting policies - Credit Risk (Details) - Customer Concentration Risk - customer	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues And Deferred Revenues
Concentration of credit risk
Concentration Risk, Number	13
Accounts Receivable
Concentration of credit risk
Concentration Risk, Number	11
Accounts Receivable | Major Customers
Concentration of credit risk
Concentration Risk, Number	3	3
Concentration Risk, Percentage	98.00%
Total Net Revenues | Major Customers
Concentration of credit risk
Concentration Risk, Number	2	4	2
Concentration Risk, Percentage	82.00%

Summary of significant accoun47

Summary of significant accounting policies - Segment Information and Liquidity (Details)	12 Months Ended
	Dec. 31, 2016segmentproduct
Summary of significant accounting policies
Number of Operating Segments | segment	1
Minimum number of product candidate launches anticipated before profitability anticipated | product	1

Net loss per share (Details)

Net loss per share (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Series A Preferred Stock
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share (as converted if related to redeemable convertible preferred stock warrants)			487,494
Series B Preferred Stock
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share (as converted if related to redeemable convertible preferred stock warrants)			1,297,100
Series B-1 Preferred Stock
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share (as converted if related to redeemable convertible preferred stock warrants)			2,275,733
Series C Preferred Stock
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share (as converted if related to redeemable convertible preferred stock warrants)			3,647,274
Warrants | Series C Redeemable Convertible Preferred Stock Warrants
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share (as converted if related to redeemable convertible preferred stock warrants)	70,833	70,833	383,316
Warrants | Common Stock Warrants
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share (as converted if related to redeemable convertible preferred stock warrants)		50,158	337,133
Employee stock options
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share (as converted if related to redeemable convertible preferred stock warrants)	2,107,344	1,352,283	511,775

Fair value of financial instr49

Fair value of financial instruments - Hierarchy (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Hierarchy for financial instruments measured at fair value on a recurring basis
Short-term investments	$ 15,430
Earnout liability	232	$ 214
Recurring basis | Fair Value
Hierarchy for financial instruments measured at fair value on a recurring basis
Cash and cash equivalents	24,352	90,763
Short-term investments	15,430
Earnout liability	232	214
Financial instruments measured at fair value on a recurring basis	40,014	90,977
Recurring basis | Fair Value | Level 1
Hierarchy for financial instruments measured at fair value on a recurring basis
Cash and cash equivalents	17,917	90,763
Financial instruments measured at fair value on a recurring basis	17,917	90,763
Recurring basis | Fair Value | Level 2
Hierarchy for financial instruments measured at fair value on a recurring basis
Cash and cash equivalents	6,435
Short-term investments	15,430
Financial instruments measured at fair value on a recurring basis	21,865
Recurring basis | Fair Value | Level 3
Hierarchy for financial instruments measured at fair value on a recurring basis
Earnout liability	232	214
Financial instruments measured at fair value on a recurring basis	$ 232	$ 214

Fair value of financial instr50

Fair value of financial instruments - Cash and cash equivalents and short-term investments (Details) $ in Thousands	Dec. 31, 2016USD ($)
Cash and cash equivalents and short-term investments
Amortized cost of cash and cash equivalents and short-term investments	$ 39,783
Unrealized loss of cash and cash equivalents and short-term investments	(1)
Market value of cash and cash equivalents and short-term investments	39,782
Bank deposits and money market funds
Cash and cash equivalents and short-term investments
Amortized cost of cash and cash equivalents and short-term investments	17,917
Market value of cash and cash equivalents and short-term investments	17,917
Financial and corporate debt securities
Cash and cash equivalents and short-term investments
Amortized cost of cash and cash equivalents and short-term investments	21,866
Unrealized loss of cash and cash equivalents and short-term investments	(1)
Market value of cash and cash equivalents and short-term investments	$ 21,865

Fair value of financial instr51

Fair value of financial instruments - Earnout Liability (Details) - Recurring basis - Level 3 - Earnout liability - Monte Carlo - USD ($) $ in Thousands	Aug. 28, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Methodologies and significant inputs used in the determination of the fair value
Volatility (as a percent)	50.00%	50.00%	50.00%	50.00%
Earnout Target 1	$ 13,700	$ 13,700	$ 13,700	$ 13,700
Earnout Target 2	18,200	18,200	18,200	18,200
Fair value of liability at valuation date	$ 589	$ 232	$ 214	$ 756
Minimum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)	0.03%	0.74%	0.56%	0.15%
Time period from valuation until end of earnout	2 months 2 days	6 months	6 months	6 months
Discount rate	8.03%	12.02%	8.11%	7.96%
Maximum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)	3.56%	3.42%	3.31%	3.21%
Time period from valuation until end of earnout	9 years 10 months 3 days	9 years 6 months	9 years 6 months	9 years 6 months
Discount rate	10.51%	14.70%	10.86%	11.03%

Fair value of financial instr52

Fair value of financial instruments - Hercules Warrants (Details) - Series C Warrants Issued with Senior Debt - USD ($) $ / shares in Units, $ in Thousands	Jul. 22, 2015	Sep. 25, 2014	Mar. 28, 2014	Jul. 22, 2015	Dec. 31, 2014
Conversion of redeemable convertible preferred stock warrant into common stock warrant
Methodologies and significant inputs used in the determination of the fair value
Contractual term	5 years
Recurring basis | Level 3 | Derivative liability | Black-Scholes-Merton
Methodologies and significant inputs used in the determination of the fair value
Dividend yield (in dollars per share)			$ 0
Exercise price (in dollars per share)			$ 5
Volatility (as a percent)			60.00%
Risk-free rate (as a percent)			0.34%
Contractual term			1 year 9 months 4 days
Number of warrants (in shares)			60,000
Fair value of liability at valuation date			$ 124
Recurring basis | Level 3 | Derivative liability | Probability-Weighted Expected Return and Black-Scholes-Merton
Methodologies and significant inputs used in the determination of the fair value
Dividend yield (in dollars per share)		$ 0
Exercise price (in dollars per share)		$ 5
Volatility (as a percent)		60.00%
Risk-free rate (as a percent)		2.03%
Contractual term		5 years 9 months 4 days
Number of warrants (in shares)		110,000
Fair value of liability at valuation date		$ 248
Recurring basis | Level 3 | Derivative liability | Probability-Weighted Expected Return and Option Pricing
Methodologies and significant inputs used in the determination of the fair value
Dividend yield (in dollars per share)					$ 0
Exercise price (in dollars per share)					$ 5
Volatility (as a percent)					60.00%
Number of warrants (in shares)					170,000
Fair value of liability at valuation date					$ 454
Recurring basis | Level 3 | Derivative liability | Probability-Weighted Expected Return and Option Pricing | Minimum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)					0.25%
Contractual term					1 year
Recurring basis | Level 3 | Derivative liability | Probability-Weighted Expected Return and Option Pricing | Maximum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)					2.47%
Contractual term					5 years
Recurring basis | Level 3 | Derivative liability | Black-Scholes-Merton Option-Pricing
Methodologies and significant inputs used in the determination of the fair value
Dividend yield (in dollars per share)				$ 0
Exercise price (in dollars per share)	$ 12			$ 12
Volatility (as a percent)				60.00%
Risk-free rate (as a percent)				1.78%
Contractual term				5 years
Number of warrants (in shares)	70,833			70,833
Fair value of liability at valuation date	$ 611			$ 611

Fair value of financial instr53

Fair value of financial instruments - Series C Warrants (Details) - Recurring basis - Level 3 - Derivative liability - Series C Warrants Issued with Series C Redeemable Preferred Stock Financing - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		7 Months Ended	12 Months Ended
	Feb. 28, 2015	Jan. 31, 2015	Jul. 22, 2015	Dec. 31, 2014
Probability-Weighted Expected Return and Option Pricing
Methodologies and significant inputs used in the determination of the fair value
Dividend yield (in dollars per share)	$ 0	$ 0		$ 0
Exercise price (in dollars per share)	$ 5	$ 5		$ 5
Volatility (as a percent)	60.00%	60.00%		60.00%
Number of warrants (in shares)	606,312	590,906		749,967
Fair value of liability at valuation date	$ 1,079	$ 1,052		$ 1,335
Probability-Weighted Expected Return and Option Pricing | Minimum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)	0.25%	0.25%		0.25%
Contractual term	1 year	1 year		1 year
Probability-Weighted Expected Return and Option Pricing | Maximum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)	2.47%	2.47%		2.47%
Contractual term	5 years	5 years		5 years
Intrinsic Value
Methodologies and significant inputs used in the determination of the fair value
Dividend yield (in dollars per share)			$ 0
Exercise price (in dollars per share)			$ 12
Number of warrants (in shares)			1,347,185
Fair value of liability at valuation date			$ 4,042

Fair value of financial instr54

Fair value of financial instruments - Changes in Level 3 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Earnout liability
Changes in Level 3 liabilities measured at fair value
Balance at beginning of period	$ 214	$ 756
Changes in fair value	18	(542)
Balance at end of period	$ 232	214
Derivative liability | Series C Warrants Issued with Senior Debt
Changes in Level 3 liabilities measured at fair value
Balance at beginning of period		454
Changes in fair value		157
Conversion to common stock warrant		(611)
Derivative liability | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Changes in Level 3 liabilities measured at fair value
Balance at beginning of period		1,335
Additions		2,131
Changes in fair value		1,698
Warrants exercised		(2,322)
Cashless warrant exercise due to IPO		$ (2,842)

Fair value of financial instr55

Fair value of financial instruments - Warrants (Details)	Jul. 28, 2015shares
Series C Warrants Issued with Senior Debt | Conversion of redeemable convertible preferred stock warrant into common stock warrant
Warrants
Warrants issued (in shares)	170,000
Common Stock Warrants | Conversion of redeemable convertible preferred stock warrant into common stock warrant
Warrants
Warrants issued (in shares)	70,833
Common Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing | Cashless exercise of redeemable convertible preferred stock warrant into common stock
Warrants
Shares converted	947,185
Shares issued on conversion	78,926

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventories
Raw materials	$ 1,672	$ 1,211
Work in progress	2,546	175
Finished goods	2,060	1,189
Deferred cost of goods sold	225
Inventory at cost	6,503	2,575
Inventory reserve	(736)	(55)
Inventories net	$ 5,767	$ 2,520

Property and equipment (Details

Property and equipment (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property and equipment
Property and equipment gross	$ 13,780,000	$ 13,780,000	$ 11,170,000
Accumulated depreciation and amortization (including $762 and $3,684 at December 31, 2016 and 2015, respectively, applicable to capital leases)	(6,704,000)	(6,704,000)	(6,046,000)
Property and equipment, net	7,076,000	7,076,000	5,124,000
Depreciation and amortization expense		1,598,000	1,724,000	$ 1,645,000
Accumulated depreciation and amortization of capital lease	762,000	762,000	3,684,000
Net proceeds of depreciated equipment		415,000		$ 795,000
Assets under capital lease
Property and equipment
Property and equipment gross	1,793,000	1,793,000	6,241,000
Leasehold improvements
Property and equipment
Property and equipment gross	3,757,000	3,757,000	3,497,000
Manufacturing, packaging and lab equipment
Property and equipment
Property and equipment gross	4,376,000	4,376,000	874,000
Office furniture and equipment
Property and equipment
Property and equipment gross	1,788,000	1,788,000	314,000
Assets under construction
Property and equipment
Property and equipment gross	2,066,000	2,066,000	244,000
Temporarily idle equipment
Property and equipment
Property and equipment gross	811,000	811,000	1,699,000
Accumulated depreciation and amortization of capital lease	811,000	$ 811,000	$ 1,396,000
Equipment
Property and equipment
Net proceeds of depreciated equipment	$ 415,000

Sale-leaseback transaction (Det

Sale-leaseback transaction (Details) - Related Party Sale-leaseback, Transaction One	1 Months Ended	12 Months Ended				14 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Mar. 31, 2014tranche	Jul. 31, 2016USD ($)	Dec. 31, 2012USD ($)
Sale-leaseback transaction
Maximum amount authorized under sale and leaseback transaction								$ 6,500,000
Number of tranches | tranche						5
Proceeds from sale of assets				$ 795,000	$ 5,500,000
Deferred gain				116,000	$ 2,700,000
Lease term		42 months
Net deferred gain recognized in period on sale leaseback transaction		$ 507,000	$ 831,000	824,000
Sale-leaseback transaction activity
Carrying value, beginning of period		2,557,000	3,954,000
Assets retired			(30,000)
Amortization		(1,020,000)	(1,367,000)
Transfer to property and equipment at end of lease		(506,000)
Carrying value, end of period	$ 1,031,000	1,031,000	2,557,000	3,954,000
Leases 1 & 2 February 2013
Sale-leaseback transaction
Original value of assets for which lease expired							$ 3,500,000
Cumulative gain recognized							2,600,000
Original value of lease buy-out option liability							$ 385,000
Sale-leaseback transaction activity
Carrying value, beginning of period		616,000	1,613,000
Assets retired			(28,000)
Amortization		(616,000)	(969,000)
Carrying value, end of period			616,000	1,613,000
Lease 3 July 2013
Sale-leaseback transaction
Original value of assets for which lease expired	1,000,000	1,000,000
Loss recognized	100,000
Original value of lease buy-out option liability	100,000	100,000
Sale-leaseback transaction activity
Carrying value, beginning of period		649,000	792,000
Amortization		(143,000)	(143,000)
Transfer to property and equipment at end of lease		(506,000)
Carrying value, end of period			649,000	792,000
Lease 4 November 2013
Sale-leaseback transaction activity
Carrying value, beginning of period		696,000	839,000
Assets retired			(2,000)
Amortization		(147,000)	(141,000)
Carrying value, end of period	549,000	549,000	696,000	839,000
Lease 5 March 2014
Sale-leaseback transaction activity
Carrying value, beginning of period		596,000	710,000
Amortization		(114,000)	(114,000)
Carrying value, end of period	$ 482,000	$ 482,000	$ 596,000	$ 710,000

Intangible assets (Details)

Intangible assets (Details) - USD ($)	Aug. 28, 2014	Jun. 15, 2009	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Intangible assets
Intangible assets, excluding patents, gross			$ 23,256,000	$ 22,756,000
Accumulated amortization			(7,677,000)	(6,084,000)
Intangible assets, excluding patents, net			15,579,000	16,672,000
Amortization of intangible assets			1,593,000	1,495,000	$ 1,037,000
Payment made to acquire asset			500,000		6,283,000
Aggregate amortization of intangible assets for each of the next five years and thereafter
2,017			1,562,000
2,018			1,562,000
2,019			1,562,000
2,020			1,562,000
2,021			1,562,000
Thereafter			7,769,000
Finite lived intangible assets, net			15,579,000
Proprietary modified-release drug delivery technology
Intangible assets
Intangible assets, excluding patents, gross			15,600,000	15,600,000
Amount of finite-lived intangibles		$ 15,600,000
Useful life		20 years
Amortization of intangible assets			780,000	780,000	780,000
Tussionex ANDA
Intangible assets
Intangible assets, excluding patents, gross			4,829,000	4,829,000
Payment made to acquire asset	$ 4,200,000
Legal fees	90,000
Earnout fair value	589,000
Tussionex ANDA | Other income (expense)
Intangible assets
Increase (decrease) in fair value of earnout liability			18,000	(542,000)	167,000
CPI Profit Sharing
Intangible assets
Intangible assets, excluding patents, gross			2,043,000	2,043,000
Payment made to acquire asset	2,000,000
Legal fees	$ 43,000
Other
Intangible assets
Intangible assets, excluding patents, gross			784,000	284,000
Tussionex ANDA and CPI profit sharing
Intangible assets
Useful life	10 years
Amortization of intangible assets			$ 687,000	$ 687,000	$ 229,000

Other assets (Details)

Other assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other assets
Patents, net	$ 2,068,000	$ 2,273,000
Deposits	150,000	197,000
Other assets	2,218,000	2,470,000
Amortization of patents	69,000	$ 23,000	$ 31,000
Generic Tussionex product
Other assets
Patents being amortized	$ 352,000
Useful life	10 years
Adzenys product
Other assets
Patents being amortized	$ 535,000
Useful life	16 years

Income taxes - Deferred Taxes (

Income taxes - Deferred Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Assets:
Net operating loss	$ 65,532	$ 37,809
R&D tax credit	1,792	1,660
Share-based compensation	1,562	388
Other reserves	1,064	623
Paragraph IV litigation costs	662	714
Accrued expenses	441	317
Deferred lease liability	399	396
Capital lease liability	151
Earnout liability	79	73
State deferreds	16
Deferred gain on sale-leaseback	14	186
Property and equipment		581
Total deferred tax assets	71,712	42,747
Deferred Tax Liabilities:
Intangible assets	(3,371)	(3,763)
Property and equipment	(124)
Capital lease liability		(603)
State deferreds		(31)
Inventory reserve		(19)
Total deferred tax liabilities	(3,495)	(4,416)
Valuation allowance	$ (68,217)	$ (38,331)

Income taxes - Tax Carryforward

Income taxes - Tax Carryforwards and Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Unrecognized tax benefits
Accrued interest related to uncertain tax positions	$ 0	$ 0
Roll forward of gross unrecognized tax benefits
Beginning Balance	4,355,000	835,000
Increase/(Decrease) based on tax positions taken during a current period	726,000	3,520,000
Ending Balance	5,081,000	4,355,000
Federal
Tax carryforwards and uncertainties
Net operating loss carry-forwards	200,170,000	122,075,000
Net operating loss carryforward that will expire unused	6,089,000
State
Tax carryforwards and uncertainties
Net operating loss carry-forwards	1,835,000	278,000
Research and development credits
Tax carryforwards and uncertainties
Tax credits carry-forwards	2,179,000	$ 2,010,000
Research and development credits | Federal
Tax carryforwards and uncertainties
Tax credit carryforwards that will expire unused	$ 350,000

Income taxes - Valuation Allowa

Income taxes - Valuation Allowance (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income taxes
Increase in valuation allowance	$ 29,886,000	$ 8,437,000

Income taxes - Reconciliation o

Income taxes - Reconciliation of Tax Rate (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income taxes
U.S. Statutory Tax Rate	34.00%	34.00%
Effective Income Tax Rate Reconciliation, Provision To Return And Other Adjustments	(1.00%)	(1.00%)
Change in Valuation Allowance	(36.00%)	(26.00%)
Deferred Tax Adjustments	1.00%	(7.00%)
State tax expense, net	2.00%	0.00%
Tax Expense / (Benefit)	0.00%	0.00%

Long-term debt - Summary (Detai

Long-term debt - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Long-term debt
Long-term debt and capital lease obligations, including current maturities	$ 63,520	$ 34,244
Less current portion	(4,921)	(7,973)
Total long-term debt	58,599	26,271
Debt instrument, unamortized discount
Unamortized discount on debt	1,401
Debt issued to entities affiliated with Deerfield | Senior Secured Credit Facility
Long-term debt
Long-term debt and capital lease obligations, including current maturities	63,075
Debt instrument, unamortized discount
Unamortized discount on debt	1,401
Senior debt (Hercules LSA)
Long-term debt
Long-term debt and capital lease obligations, including current maturities		24,895
Debt instrument, unamortized discount
Unamortized discount on debt		1,167
10% subordinated note payable | Essex Capital Corporation, as Investor
Long-term debt
Long-term debt and capital lease obligations, including current maturities		6,994
Capital leases
Long-term debt
Long-term debt and capital lease obligations, including current maturities	$ 445	$ 2,355

Long-term debt - Senior Secured

Long-term debt - Senior Secured Credit facility (Details)	Feb. 06, 2017payment	May 11, 2016USD ($)paymentinstallment	Dec. 31, 2016USD ($)payment	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Long-term debt
Proceeds from debt			$ 58,419,000
Prepayment of senior debt			26,063,000
Interest paid			2,857,000	$ 2,524,000	$ 1,793,000
Payments of end of term fee					563,000
Senior Notes and Subordinated Debt
Long-term debt
Repayments of debt		$ 33,000,000
Senior debt (Hercules LSA)
Long-term debt
Prepayment of senior debt		24,300,000
Interest paid		100,000
Payments of end of term fee		1,100,000
Prepayment penalty		243,000
Debt discount amortization			$ 104,000	265,000	140,000
Senior Secured Credit Facility
Long-term debt
Proceeds from debt		60,000,000
Senior Secured Credit Facility | Debt issued to entities affiliated with Deerfield
Long-term debt
Face amount of debt issued		$ 60,000,000
Date of first required principal payment		May 1, 2019
Number of equal annual installments | installment		4
Interest rate (as a percent)		12.95%
Number of first interest payments for which the reporting entity has the option to defer | payment		4
Number of first interest payments for which the reporting entity has exercised the option to defer | payment			3
Debt yield enhancement fee		$ 1,350,000
Term of debt (in years)		6 years
Minimum cash on deposit to maintain under debt arrangement		$ 5,000,000
Proceeds from debt		60,000,000
Debt discount amortization			$ 181,000
Senior Secured Credit Facility | Debt issued to entities affiliated with Deerfield | Subsequent event
Long-term debt
Number of first interest payments for which the reporting entity has exercised the option to defer | payment	1
Senior Secured Credit Facility | Debt issued to entities affiliated with Deerfield | Company's Attorneys
Long-term debt
Debt legal costs		173,000
Senior Secured Credit Facility | Debt issued to entities affiliated with Deerfield | On Behalf Of Deerfield's Attorneys
Long-term debt
Debt legal costs		$ 58,000
Senior Secured Credit Facility | Deerfield Private Design Found III, LP
Long-term debt
Debt borrowing structure (as a percent)		0.6667
Senior Secured Credit Facility | Deerfield Special Situations Fund, LP
Long-term debt
Debt borrowing structure (as a percent)		0.3333
Essex Capital Corporation, as Investor | 10% subordinated note payable
Long-term debt
Face amount of debt issued				$ 5,935,000	5,935,000
Interest rate (as a percent)			10.00%
Repayments of debt		$ 5,900,000			$ 5,900,000
Interest paid		$ 1,300,000

Long-term debt - Senior Debt (D

Long-term debt - Senior Debt (Details)	May 11, 2016USD ($)	Jul. 28, 2015$ / sharesshares	Sep. 25, 2014USD ($)$ / sharesshares	Mar. 28, 2014USD ($)item$ / sharesshares	Aug. 20, 2012USD ($)	May 31, 2016	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Long-term debt
Draws from senior debt note										$ 10,000,000	$ 15,000,000
Interest paid									$ 2,857,000	2,524,000	1,793,000
Loss on debt extinguishment									(1,187,000)		(445,000)
Payments of end of term fee											563,000
Series C Warrants Issued with Senior Debt | Other income (expense)
Long-term debt
Fair value adjustment of warrants (reduction) increase										157,000
Senior debt (Hercules LSA)
Long-term debt
Maximum borrowing capacity per agreement				$ 25,000,000
Number of draws available per debt agreement | item				4
Interest paid	$ 100,000
Loss on debt extinguishment									1,187,000
Prepayment penalty	243,000
Term of interest and principal payments, which commence at a later date						30 months
LSA end of term fee due upon prepayment or repayment									1,100,000
Payments of end of term fee	$ 1,100,000
End of term charge amortization									121,000	311,000	128,000
Debt discount amortization									$ 104,000	$ 265,000	140,000
Senior debt (Hercules LSA) | Tranche 1
Long-term debt
Draws from senior debt note				$ 10,000,000
Interest rate (as a percent)				9.00%
Senior debt (Hercules LSA) | Tranche 1 | Series C Warrants Issued with Senior Debt
Long-term debt
Warrants issued (in shares) | shares				60,000
Exercise price (in dollars per share) | $ / shares				$ 5
Senior debt (Hercules LSA) | Tranche 2
Long-term debt
Draws from senior debt note			$ 5,000,000
Interest rate (as a percent)			10.50%
Senior debt (Hercules LSA) | Tranche 2 | Series C Warrants Issued with Senior Debt
Long-term debt
Warrants issued (in shares) | shares			110,000
Exercise price (in dollars per share) | $ / shares			$ 5
Senior debt (Hercules LSA) | Tranche 3
Long-term debt
Draws from senior debt note								$ 5,000,000
Interest rate (as a percent)								10.50%
Senior debt (Hercules LSA) | Tranche 4
Long-term debt
Draws from senior debt note							$ 5,000,000
Interest rate (as a percent)							9.00%
Credit Agreement | Term Loan
Long-term debt
Maximum borrowing capacity per agreement					$ 10,000,000
Interest paid				$ 697,000
Loss on debt extinguishment											445,000
Prepayment penalty											98,000
Write-off of unamortized exit fee											154,000
Write-off of unamortized loan cost											$ 193,000
Interest rate (as a percent)					9.50%
Repayment of outstanding amount				$ 10,000,000
Debt term					4 years
Conversion, initial public offering | Common Stock Warrants
Long-term debt
Warrants issued (in shares) | shares		70,833
Exercise price (in dollars per share) | $ / shares		$ 12
Warrants Term		5 years

Long-term debt - Subordinated R

Long-term debt - Subordinated Related Party Note (Details) - USD ($)	May 11, 2016	Jul. 21, 2014	Jun. 28, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Long-term debt
Interest paid				$ 2,857,000	$ 2,524,000	$ 1,793,000
10% subordinated note payable | Essex Capital Corporation, as Investor
Long-term debt
Interest rate (as a percent)				10.00%
Face amount of debt issued					5,935,000	5,935,000
Reduced interest rate per amendment to note (as a percent)			6.00%
Payment for legal settlement		$ 128,000
Repayments of debt	$ 5,900,000					5,900,000
Interest paid	$ 1,300,000
Principal outstanding					5,900,000
Interest accrued				$ 263,000	$ 548,000	$ 511,000

Long-term debt - Capital Lease

Long-term debt - Capital Lease Obligations to Related Party (Details) - Capital leases - Related Party Sale-leaseback, Transaction One - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Long-term debt
Existing assets under sale-leaseback transaction					$ 5,500,000
Newly acquired assets under sale-leaseback transaction				$ 795,000
Imputed interest rate on lease (as a percent)	14.50%
Interest expense	$ 204,000	$ 467,000	$ 662,000

Long-term debt - Future Minimum

Long-term debt - Future Minimum Capital Lease Payments (Details) $ in Thousands	Dec. 31, 2016USD ($)
Future minimum capital lease payments
Total minimum lease payments	$ 473
Less amount representing interest	28
Future minimum lease payments	$ 445

Long-term debt - Future Princip

Long-term debt - Future Principal Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Future principal payments of long-term debt, including capital leases
2,017	$ 4,921
2,019	15,000
2,020	15,000
2,021	15,000
Thereafter	15,000
Future principal payments	64,921
Less unamortized debt discount	(1,401)
Less current portion of long-term debt	(4,921)	$ (7,973)
Total long-term debt	$ 58,599	$ 26,271

Common stock and redeemable c72

Common stock and redeemable convertible preferred stock - Reverse Stock Split, Authorized Shares, Public Offerings (Details) $ / shares in Units, $ in Millions	Jul. 28, 2015USD ($)$ / sharesshares	Jul. 10, 2015	Dec. 31, 2015$ / sharesshares	Dec. 31, 2016$ / sharesshares
Public offerings and related transactions
Preferred stock, authorized shares	5,000,000		5,000,000	5,000,000
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.001		$ 0.001	$ 0.001
Common stock, authorized shares	100,000,000		100,000,000	100,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.001		$ 0.001	$ 0.001
Conversion of redeemable convertible preferred stock warrant into common stock warrant | Series C Warrants Issued with Senior Debt
Public offerings and related transactions
Warrants issued (in shares)	170,000
Conversion of redeemable convertible preferred stock warrant into common stock warrant | Common Stock Warrants
Public offerings and related transactions
Warrants issued (in shares)	70,833
Common Stock
Public offerings and related transactions
Reverse stock split ratio		0.4167
Common Stock | IPO
Public offerings and related transactions
Shares sold	5,520,000		5,520,000
Public offering price (in dollars per share) | $ / shares	$ 15
Net proceeds from issuance of stock | $	$ 75
Common Stock | Over-allotment option
Public offerings and related transactions
Shares sold	720,000
Common Stock | Conversion of redeemable convertible preferred stock into common stock | All series of redeemable convertible preferred stock
Public offerings and related transactions
Shares issued on conversion	9,217,983
Common Stock | Cashless exercise of redeemable convertible preferred stock warrant into common stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Public offerings and related transactions
Shares issued on conversion	78,926
Shares converted	947,185

Common stock and redeemable c73

Common stock and redeemable convertible preferred stock - Redeemable Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 10, 2016	Dec. 30, 2014	Jul. 27, 2015	Dec. 31, 2014	Feb. 25, 2015	Feb. 28, 2015	Jun. 30, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2012
Common stock warrants issued with Series B-1 redeemable preferred stock financing
Temporary equity related
Proceeds from exercises of warrants									$ 0
Number of warrants to purchase common stock expired	6,297
Common stock warrants issued with Series B-1 redeemable preferred stock financing | Common Stock
Temporary equity related
Exercise price of warrants (in dollars per share)							$ 0.0024	$ 0.0024
Number of shares issued upon exercise of warrants							43,861	286,968
Series C Preferred Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Temporary equity related
Exercise price of warrants (in dollars per share)			$ 5
Proceeds from exercises of warrants			$ 5
Shares issued (in shares)			1,000,000
Redeemable convertible preferred stock financing | Series C Preferred Stock
Temporary equity related
Proceeds from share issuance				$ 7.5		$ 20.6		$ 13.1
Shares issued (in shares)				1,499,935	2,624,936
Redeemable convertible preferred stock financing | Series C Preferred Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Temporary equity related
Warrants issued (in shares)				749,967				1,197,218
Redeemable convertible preferred stock financing | Series B-1 Preferred Stock | Common stock warrants issued with Series B-1 redeemable preferred stock financing
Temporary equity related
Warrants issued (in shares)										389,474
Exercise price of warrants (in dollars per share)										$ 0.0024
Upon investor purchase of pro-rata share of stock | Redeemable convertible preferred stock financing | Series C Preferred Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Temporary equity related
Exercise price of warrants (in dollars per share)		$ 5
Number of shares that can be purchased with each warrant		1
Number of purchased shares that entitle holder to receive a warrant		2

Common stock and redeemable c74

Common stock and redeemable convertible preferred stock - Shelf Registration Statement (Details) - Maximum $ in Millions	Aug. 01, 2016USD ($)
Shelf registration statement
Authorized amount to raise capital as per shelf registration statement	$ 125
Sales Agreement | Cowen and Company LLC
Shelf registration statement
Authorized amount for issuance of common stock as per shelf registration statement	$ 40

Common stock and redeemable c75

Common stock and redeemable convertible preferred stock - Rights and Preferences of Preferred Stock (Details)	Nov. 01, 2017USD ($)installment$ / shares	Jul. 28, 2015shares	Jul. 27, 2015shares	Dec. 31, 2014USD ($)shares	Feb. 25, 2015shares	Feb. 28, 2015USD ($)	Dec. 31, 2016$ / shares	Dec. 31, 2015USD ($)shares	Dec. 31, 2014USD ($)	Dec. 31, 2012shares
Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Temporary equity related
Fair value adjustment of warrants (reduction) increase								$ 1,698,000
Series C Warrants Issued with Series C Redeemable Preferred Stock Financing | Common Stock | Cashless exercise of redeemable convertible preferred stock warrant into common stock
Temporary equity related
Shares issued on conversion | shares		78,926
All series of redeemable convertible preferred stock | Common Stock | Conversion of redeemable convertible preferred stock into common stock
Temporary equity related
Shares issued on conversion | shares		9,217,983
Series C Preferred Stock
Temporary equity related
Accretion to redemption value								607,000	$ 87,000
Series C Preferred Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Temporary equity related
Shares issued (in shares) | shares			1,000,000
Series B-1 Preferred Stock
Temporary equity related
Dividend accrual rate (as a percent)							8.00%
Original issue price (in dollars per share) | $ / shares							$ 5
Accretion to redemption value								370,000	679,000
Series B Preferred Stock
Temporary equity related
Accretion to redemption value								192,000	352,000
Redeemable convertible preferred stock financing | Series C Preferred Stock
Temporary equity related
Proceeds from share issuance				$ 7,500,000		$ 20,600,000		13,100,000
Redeemable preferred stock value				6,108,000				10,916,000	6,108,000
Stock issuance legal fees				$ 57,000				$ 78,000	57,000
Shares issued (in shares) | shares				1,499,935	2,624,936
Redeemable convertible preferred stock financing | Series C Preferred Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Temporary equity related
Warrants issued (in shares) | shares				749,967				1,197,218
Fair value of warrants				$ 1,335,000				$ 2,131,000	$ 1,335,000
Redeemable convertible preferred stock financing | Series B-1 Preferred Stock | Common stock warrants issued with Series B-1 redeemable preferred stock financing
Temporary equity related
Warrants issued (in shares) | shares										389,474
Forecast | Series C, Series B-1, and Series B preferred stock
Temporary equity related
Original issue price (in dollars per share) | $ / shares	$ 5
Number of installments for redemption | installment	3
Notice period for redemption	60 days
Redemption value (in dollars per share) | $ / shares	$ 5
Forecast | Series B-1 Preferred Stock
Temporary equity related
Minimum redemption value upon initial redemption date	$ 27,309,000
Forecast | Series B Preferred Stock
Temporary equity related
Minimum redemption value upon initial redemption date	15,565,000
Forecast Related To Issuances Through December 2014 | Series C Preferred Stock
Temporary equity related
Minimum redemption value upon initial redemption date	43,768,000
Forecast Related To Issuances Through IPO Date | Series C Preferred Stock
Temporary equity related
Minimum redemption value upon initial redemption date	$ 57,642,000

Stock options, restricted sto76

Stock options, restricted stock and performance stock options - Stock Options (Details)	Jan. 01, 2017shares	Jan. 01, 2016shares	Dec. 31, 2016$ / sharesshares	Dec. 31, 2015$ / shares	Dec. 31, 2014$ / shares	Dec. 31, 2016shares	Jul. 31, 2015shares	Nov. 30, 2009shares
Employee stock options | Performance based
Stock options, restricted stock and performance stock options
Vesting period			3 years
Stock options
Stock options, restricted stock and performance stock options
Vesting period			4 years
Weighted average key assumptions used in determining the fair value of options granted
Estimated dividend yield (as a percent)			0.00%	0.00%	0.00%
Expected stock price volatility (as a percent)			60.00%	60.00%	60.00%
Expected life of option in years			6 years 1 month 24 days	5 years	5 years
Weighted-average option fair value at grant (in dollars per share) | $ / shares			$ 5.800	$ 9.723	$ 2.884
Stock options | Weighted average
Weighted average key assumptions used in determining the fair value of options granted
Weighted-average risk-free interest rate (as a percent)			1.18%	1.60%	1.77%
Neos Therapeutics, Inc. 2009 Equity Plan
Stock options, restricted stock and performance stock options
Shares reserved for issuance under the plan								1,375,037
Neos Therapeutics, Inc. 2009 Equity Plan | Stock options
Stock options, restricted stock and performance stock options
Expiration period			10 years
Expiration period of unexercised vested award after termination of employment			90 days
Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan
Stock options, restricted stock and performance stock options
Shares reserved for issuance under the plan							767,330
Increase in number of shares reserved and available for issuance		800,797
Increase to the number of shares reserved and available for issuance as a percentage of outstanding common stock (as a percent)		5.00%
Stock option exercise price, minimum expressed as percentage of fair market value on grant date			100
Shares related to forfeited prior plan options transferred into shares available under current plan						7,500
Share of restricted stock transferred into shares available under current plan						18,906
Shares available for grant			210,599			210,599
Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan | Subsequent event
Stock options, restricted stock and performance stock options
Shares reserved for issuance under the plan	1,013,648
Increase in number of shares reserved and available for issuance	803,049
Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan | Stock options
Stock options, restricted stock and performance stock options
Expiration period			10 years
Expiration period of unexercised vested award after termination of employment			90 days

Stock options, restricted sto77

Stock options, restricted stock and performance stock options - Compensation Costs (Details) - Stock options - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock Based Compensation
Total compensation cost	$ 3,369,000	$ 1,087,000	$ 120,000
Unrecognized compensation cost	$ 8,800,000
Compensation cost not yet recognized, period for recognition	2 years 8 months 12 days
Shares issued upon the exercise of outstanding stock options	10,886	38,307	13,408
Proceeds received upon the exercise of outstanding stock options	$ 13,000	$ 74,000
Tax benefit from the exercise of stock options	0	0
Cost of goods sold
Stock Based Compensation
Total compensation cost	311,000	112,000	$ 6,000
Research and development
Stock Based Compensation
Total compensation cost	304,000	73,000	4,000
Selling and marketing
Stock Based Compensation
Total compensation cost	723,000	211,000	18,000
General and administrative
Stock Based Compensation
Total compensation cost	$ 2,031,000	$ 691,000	$ 92,000

Stock options, restricted sto78

Stock options, restricted stock and performance stock options - Summary of Outstanding and Exercisable Options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of number of outstanding and exercisable options and the activity
Outstanding at beginning of year (in shares)	1,352,283	511,775	326,062
Exercisable at beginning of year (in shares)	229,000	150,109
Granted (in shares)	859,257	883,537	237,486
Exercised (in shares)	(10,886)	(38,307)	(13,408)
Expired, forfeited or cancelled (in shares)	(93,310)	(4,722)	(38,365)
Outstanding at end of period (in shares)	2,107,344	1,352,283	511,775
Exercisable at end of period (in shares)	595,424	229,000	150,109
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Outstanding at beginning of year (in dollars per share)	$ 13.607	$ 3.684	$ 1.797
Exercisable at beginning of year (in dollars per share)	3.385	1.467
Granted (in dollars per share)	10.385	18.789	5.684
Exercised (in dollars per share)	1.231	1.928	0.324
Expired, forfeited or cancelled (in dollars per share)	17.780	2.547	1.206
Outstanding at end of period (in dollars per share)	12.173	13.607	3.684
Exercisable at end of period (in dollars per share)	$ 9.715	$ 3.385	$ 1.467
Summary of intrinsic value of outstanding and exercisable options and other information
Intrinsic value, outstanding options	$ 1,128	$ 964	$ 2,883
Intrinsic value, exercisable options	$ 881	$ 2,504	$ 1,179
Weighted average remaining contractual life of options outstanding	8 years 6 months
Weighted-average remaining contractual life of options exercisable	7 years 7 months 6 days
Minimum
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Granted (in dollars per share)	$ 8.84
Maximum
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Granted (in dollars per share)	$ 10.96

Stock options, restricted sto79

Stock options, restricted stock and performance stock options - Restricted Stock (Details) - Restricted stock - USD ($)	Oct. 17, 2016	Oct. 16, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock options, restricted stock and performance stock options
Shares issued			0	0	0	149,244
Grant date fair value of shares issued (in dollars per share)			$ 2.55	$ 2.55		$ 2.55
Unrecognized compensation cost			$ 71,000
Compensation cost not yet recognized, period for recognition			9 months 18 days
Value of restricted stock awards settled	$ 226,000	$ 658,000			$ 266,000
Tax benefit from settlement of vested restricted stock awards	$ 79,000	$ 224,000			$ 90,000
Shares surrendered by holder to cover taxes associated with vesting	9,709	9,197
Current price (in dollars per share)	$ 6.37	$ 18.54
Unvested restricted stock outstanding (in shares)			35,513	71,025	106,537	142,049
Weighted average fair value of nonvested restricted stock (in dollars per share)			$ 2.550	$ 2.550	$ 2.550	$ 2.550
General and administrative
Stock options, restricted stock and performance stock options
Stock compensation cost			$ 91,000	$ 94,000	$ 90,000
Minimum
Stock options, restricted stock and performance stock options
Vesting period			1 month
Maximum
Stock options, restricted stock and performance stock options
Vesting period			48 months
Immediate vesting
Stock options, restricted stock and performance stock options
Shares issued						7,195
Four equal tranches
Stock options, restricted stock and performance stock options
Vesting period						48 months
Shares issued						142,049

Stock options, restricted sto80

Stock options, restricted stock and performance stock options - Summary of Nonvested Restricted Stock (Details) - Restricted stock - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of Shares
Nonvested, beginning of period	71,025	106,537	142,049
Shares vested	(35,512)	(35,512)	(35,512)
Nonvested, end of period	35,513	71,025	106,537	142,049
Weighted- Average Grant Date Fair Value
Nonvested, Weighted Average Grant Date Fair Value, Beginning of period (in dollars per share)	$ 2.550	$ 2.550	$ 2.550
Nonvested, Weighted Average Grant Date Fair Value, Granted (in dollars per share)	2.55	2.55		$ 2.55
Nonvested, Weighted Average Grant Date Fair Value, Vested (in dollars per share)	2.550	2.550	2.550
Nonvested, Weighted Average Grant Date Fair Value, End of period (in dollars per share)	$ 2.550	$ 2.550	$ 2.550	$ 2.550

Treasury stock (Details)

Treasury stock (Details) - $ / shares	Oct. 17, 2016	Oct. 16, 2015	Feb. 19, 2015	Dec. 31, 2016	Dec. 31, 2015
Treasury stock
Cancellation of treasury stock			55,905
Original purchase price of treasury stock (in dollars per share)			$ 0.002
Shares of treasury stock held				18,906	9,197
Restricted stock
Treasury stock
Shares surrendered by holder to cover taxes associated with vesting	9,709	9,197

Commitments and contingencies -

Commitments and contingencies - Patent Infringement Litigation (Details) - Actavis	Jul. 25, 2016item
Patent infringement litigation
Number Of Patents that Actavis Laboratories, Inc. alleges Will Not Be Infringed Upon	4
Number Of Patents that Actavis Laboratories, Inc. alleges Will Not Be Infringed Upon Which Expire In April 2026	1
Number Of Patents that Actavis Laboratories, Inc. alleges Will Not Be Infringed Upon Which Expire In June 2032	3
Time Period For Which FDA Approval is Barred Upon Commencement Of Lawsuit	30 months

Commitments and contingencies83

Commitments and contingencies - Defined Contribution Plans (Details) - USD ($)	Jan. 01, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Contribution Plans
Maximum employee annual contribution (as a percent)		50.00%
Employer's match of of employee contributions (as a percent)				50.00%
Expense on defined contribution plans		$ 371,000	$ 186,000	$ 82,000
First Tier Contributions
Defined Contribution Plans
Employer's match of of employee contributions (as a percent)	100.00%
Percentage of match by employer (as a percent)	3.00%
Second Tier Contributions
Defined Contribution Plans
Employer's match of of employee contributions (as a percent)	50.00%
Percentage of match by employer (as a percent)	2.00%
Maximum
Defined Contribution Plans
Percentage of match by employer (as a percent)				6.00%

Commitments and contingencies84

Commitments and contingencies - Operating Lease, Cash Incentive Bonus Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Future minimum operating lease payments
2,017	$ 1,101,000
2,018	1,105,000
2,019	1,109,000
2,020	1,161,000
2,021	1,057,000
Thereafter	3,217,000
Future minimum lease payments	8,750,000
Deferred rent balance	1,174,000	$ 1,166,000
Rent expense, share of operating expenses	230,000
Rent expense, excluding share of operating expenses	1,011,000	884,000	$ 896,000
Bonus Expenses	$ 464,000	552,000
Blue Bell, Pennsylvania
Commitments
Term of operating lease	60 months
Grand Prairie, Texas
Future minimum operating lease payments
Rent expense, share of operating expenses		$ 237,000	$ 251,000

License agreements (Details)

License agreements (Details) $ in Millions	Jul. 23, 2014USD ($)
Shire LLC | Maximum
License agreements
Non refundable license fee to be less than $1.0 million	$ 1

Related party transactions (Det

Related party transactions (Details)	May 11, 2016USD ($)	Jul. 21, 2014USD ($)	Dec. 31, 2016USD ($)	Jun. 28, 2015	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jul. 31, 2016USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2013USD ($)item	Dec. 31, 2012USD ($)
Related party transactions
Proceeds from debt					$ 58,419,000
Related Party Sale-leaseback, Transaction One
Related party transactions
Maximum amount authorized under sale and leaseback transaction											$ 6,500,000
Leases 1 & 2 February 2013 | Related Party Sale-leaseback, Transaction One
Related party transactions
Original value of assets for which lease expired								$ 3,500,000
Cumulative gain recognized								2,600,000
Original value of lease buy-out option liability								$ 385,000
Lease 3 July 2013 | Related Party Sale-leaseback, Transaction One
Related party transactions
Original value of assets for which lease expired			$ 1,000,000		1,000,000
Loss recognized			100,000
Original value of lease buy-out option liability			$ 100,000		100,000
Entity affiliated with Company's Chairman of the board of directors
Related party transactions
Expenses from transactions with related party					$ 0	$ 0	$ 112,000
10% subordinated note payable | Essex Capital Corporation, as Investor
Related party transactions
Aggregate principal amount						$ 5,935,000	$ 5,935,000
Payment for legal settlement		$ 128,000
Interest rate (as a percent)			10.00%		10.00%
Reduced interest rate per amendment to note (as a percent)				6.00%
Capital leases | Related Party Sale-leaseback, Transaction One
Related party transactions
Maximum amount authorized under sale and leaseback transaction											$ 6,500,000
Number of transactions | item										4
Sale and leaseback amount due										$ 5,500,000
Sale and leaseback additional amount raised									$ 795,000
Senior Secured Credit Facility
Related party transactions
Proceeds from debt	$ 60,000,000
Essex Capital Corporation | Third Party
Related party transactions
Payment for legal settlement made by related party to third party		$ 256,000

Selected Quarterly Financial 87

Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Selected Quarterly Financial Information
Net sales	$ 3,503	$ 1,583	$ 1,485	$ 2,583	$ 1,659	$ 221	$ 1,484	$ 428	$ 9,154	$ 3,792	$ 758
Gross loss	(517)	(735)	(858)	(173)	(183)	(956)	(254)	(744)	(2,283)	(2,137)	(2,633)
Net loss					(9,104)	(9,368)	(5,753)	(6,556)	(83,333)	(30,781)	(20,849)
Preferred stock accretion to redemption value						(99)	(586)	(484)		(1,169)	(1,118)
Preferred stock dividends						(138)	(544)	(539)		(1,221)	(2,185)
Net loss attributable to common stock	$ (18,374)	$ (25,806)	$ (26,539)	$ (12,614)	$ (9,104)	$ (9,605)	$ (6,883)	$ (7,579)	$ (83,333)	$ (33,171)	$ (24,152)
Weighted average common shares outstanding used to compute net loss per share, basic and diluted	16,062,685	16,070,705	16,050,138	16,025,318	15,933,315	12,403,182	887,397	885,237	16,052,390	7,581,881	876,318
Net loss per share of common stock, basic and fully diluted	$ (1.14)	$ (1.61)	$ (1.65)	$ (0.79)	$ (0.57)	$ (0.77)	$ (7.76)	$ (8.56)	$ (5.19)	$ (4.38)	$ (27.56)

Selected Quarterly Financial 88

Selected Quarterly Financial Data - Explanatory Information (Details) $ / shares in Units, $ in Millions	Jul. 28, 2015$ / sharesshares	Jul. 10, 2015	Jul. 27, 2015USD ($)$ / sharesshares	Dec. 31, 2015shares
Series C Preferred Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Selected Quarterly Financial Data
Number of shares issued upon exercise of warrants			1,000,000
Exercise price of warrants (in dollars per share) | $ / shares			$ 5
Proceeds from exercise of warrants (in dollars) | $			$ 5
Common Stock
Selected Quarterly Financial Data
Reverse stock split ratio		0.4167
Common Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing | Cashless exercise of redeemable convertible preferred stock warrant into common stock
Selected Quarterly Financial Data
Shares issued on conversion	78,926
Common Stock | All series of redeemable convertible preferred stock | Conversion of redeemable convertible preferred stock into common stock
Selected Quarterly Financial Data
Shares issued on conversion	9,217,983
Common Stock | IPO
Selected Quarterly Financial Data
Net proceeds from issuance of common stock in IPO (in shares)	5,520,000			5,520,000
Public offering price (in dollars per share) | $ / shares	$ 15
Common Stock | Over-allotment option
Selected Quarterly Financial Data
Net proceeds from issuance of common stock in IPO (in shares)	720,000

Subsequent events (Details)

Subsequent events (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 17, 2017	Feb. 17, 2017	Feb. 08, 2017	Jan. 01, 2017	Jan. 01, 2016	Feb. 28, 2017	Jul. 31, 2015
Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan
Subsequent events
Increase in number of shares reserved and available for issuance					800,797
Shares reserved for issuance under the plan							767,330
Subsequent event | Capital Lease Line Of Credit | Related Party Transaction, Capital Lease Line
Subsequent events
Debt term						36 months
Maximum borrowing capacity for capital expenditures						$ 5,000
Subsequent event | Underwritten Public Offering
Subsequent events
Shares sold			5,000,000
Offering price (in dollars per share)			$ 5
Net proceeds from underwritten public offering	$ 26,800
Subsequent event | Over Allotment Option Of Underwritten Public Offering
Subsequent events
Offering price (in dollars per share)	$ 5	$ 5
Maximum number of additional shares granted to purchase		750,000
Subsequent event | Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan
Subsequent events
Increase in number of shares reserved and available for issuance				803,049
Shares reserved for issuance under the plan				1,013,648

Schedule II - VALUATION AND Q90

Schedule II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for chargebacks
Movement in valuation and qualifying accounts
Balance at beginning of period	$ 940	$ 190
Additions charged to costs and expenses	10,504	5,359	$ 202
Deductions and Payments	(10,665)	(4,609)	(12)
Balance at end of period	779	940	190
Allowance for cash discounts
Movement in valuation and qualifying accounts
Balance at beginning of period	99	14
Additions charged to costs and expenses	772	194	18
Other additions	(13)
Deductions and Payments	(687)	(109)	(4)
Balance at end of period	171	99	14
Sales offers
Movement in valuation and qualifying accounts
Additions charged to costs and expenses	3,746
Deductions and Payments	(3,746)
Reserve for wholesaler fees
Movement in valuation and qualifying accounts
Balance at beginning of period	361	117
Additions charged to costs and expenses	2,838	914	122
Other additions	144
Deductions and Payments	(2,834)	(670)	(5)
Balance at end of period	509	361	117
Reserve for returns
Movement in valuation and qualifying accounts
Balance at beginning of period	429	212
Additions charged to costs and expenses	491	242	212
Deductions and Payments	(36)	(25)
Balance at end of period	884	429	212
Government rebates
Movement in valuation and qualifying accounts
Balance at beginning of period	110	9
Additions charged to costs and expenses	396	103	9
Other additions	383
Deductions and Payments	(468)	(2)
Balance at end of period	$ 421	$ 110	$ 9