Neos Therapeutics (NEOS) 10-K 16 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Mar. 12, 2018	Jun. 30, 2017
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, 2017
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			$ 194.4
Entity Common Stock, Shares Outstanding		28,996,956
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 31,969	$ 24,352
Short-term investments	18,448	15,430
Accounts receivable, net of allowances for chargebacks and cash discounts of $1,154 and $950, respectively	13,671	6,135
Inventories	13,459	5,767
Deferred contract sales organization fees		720
Other current assets	5,093	2,865
Total current assets	82,640	55,269
Property and equipment, net	8,203	7,076
Intangible assets, net	16,348	17,647
Other assets	162	150
Total assets	107,353	80,142
Current Liabilities:
Accounts payable	11,460	7,798
Accrued expenses	10,570	5,264
Deferred revenue	14,676	3,662
Current portion of long-term debt	896	4,921
Total current liabilities	37,602	21,645
Long-Term Liabilities:
Long-term debt, net of current portion	58,938	58,599
Derivative liability	1,660
Deferred rent	1,083	1,174
Other long-term liabilities	180	272
Total long-term liabilities	61,861	60,045
Stockholders' Equity (Deficit):
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued or outstanding at December 31, 2017 and December 31, 2016
Common stock, $0.001 par value, 100,000,000 authorized at December 31, 2017 and December 31, 2016; 29,030,757 and 28,996,956 issued and outstanding, respectively, at December 31, 2017; 16,079,902 and 16,060,996 issued and outstanding, respectively, at December 31, 2016	29	16
Treasury stock, at cost, 33,801 shares at December 31, 2017; 18,906 shares at December 31, 2016	(352)	(232)
Additional paid-in capital	274,584	198,787
Accumulated deficit	(266,365)	(200,118)
Accumulated other comprehensive loss	(6)	(1)
Total stockholders' equity (deficit)	7,890	(1,548)
Total liabilities and stockholders' equity	$ 107,353	$ 80,142

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEETS
Receivables allowances for chargebacks and cash discounts (in dollars)	$ 1,154	$ 950
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	29,030,757	16,079,902
Common stock, outstanding shares	28,996,956	16,060,996
Treasury stock, shares	33,801	18,906

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Net product sales	$ 25,018	$ 9,154	$ 3,792
Cost of goods sold	12,391	11,437	5,929
Gross profit (loss)	12,627	(2,283)	(2,137)
Research and development expenses	8,957	12,207	11,691
Selling and marketing expenses	46,881	49,291	5,672
General and administrative expenses	13,805	12,625	7,078
Loss from operations	(57,016)	(76,406)	(26,578)
Interest expense	(10,085)	(6,937)	(3,721)
Loss on debt extinguishment		(1,187)
Other income (loss), net	854	1,197	(482)
Net loss	(66,247)	(83,333)	(30,781)
Preferred stock accretion to redemption value			(1,169)
Preferred stock dividends			(1,221)
Net loss attributable to common stock	$ (66,247)	$ (83,333)	$ (33,171)
Weighted average common shares outstanding used to compute net loss per share, basic and diluted	24,751,091	16,052,390	7,581,881
Net loss per share of common stock, basic and diluted	$ (2.68)	$ (5.19)	$ (4.38)

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Comprehensive loss
Net loss	$ (66,247)	$ (83,333)	$ (30,781)
Other comprehensive loss:
Net unrealized (loss) gain on short-term investments	(5)	2
Reclassification of gains included in net loss		(3)
Total other comprehensive loss	(5)	(1)
Comprehensive loss	$ (66,252)	$ (83,334)	$ (30,781)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Common Stock	Treasury Stock	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	Total
Balance, beginning at Dec. 31, 2014	$ 1		$ 4,831				$ (83,614)					$ (78,782)
Balance, beginning (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
Purchase of treasury stock		$ (171)										(171)
Purchase of treasury stock (in shares)		(9,197)
Share-based compensation expense			1,181									1,181
Cancellation of treasury stock	(55,905)	55,905
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
Purchase of treasury stock		$ (61)										(61)
Purchase of treasury stock (in shares)		(9,709)
Share-based compensation expense			3,460									3,460
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)
Increase (Decrease) in Stockholders Equity
Issuance of common stock, net of issuance costs	$ 12		64,548									64,560
Issuance of common stock, net of issuance costs (in shares)	12,019,639
Issuance of common stock upon conversion of convertible notes	$ 1		6,585									6,586
Issuance of common stock upon conversion of convertible notes (in shares)	929,967
Shares issued from exercise of stock options (in shares)	1,249
Purchase of treasury stock		$ (120)										(120)
Purchase of treasury stock (in shares)		(14,895)
Share-based compensation expense			4,051									4,051
Recognition of beneficial conversion feature on convertible notes			613									613
Net unrealized loss on investments								(5)				(5)
Net loss							(66,247)					(66,247)
Balance, ending at Dec. 31, 2017	$ 29	$ (352)	$ 274,584				$ (266,365)	$ (6)				$ 7,890
Balance, ending (in shares) at Dec. 31, 2017	29,030,757	(33,801)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash Flows From Operating Activities:
Net loss	$ (66,247)	$ (83,333)	$ (30,781)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense	4,051	3,460	1,181
Depreciation and amortization of property and equipment	1,363	1,598	1,724
Amortization of patents and other intangible assets	1,660	1,662	1,518
Changes in fair value of earnout, derivative and warrant liabilities	(509)	18	1,313
Amortization of senior debt discounts	1,316	406	576
Amortization of short-term investment purchase discounts	(126)	(156)
Deferred interest on debt	2,111	4,738	548
Loss on debt extinguishment		942
Gain on sale of equipment	(23)	(922)	(831)
Other adjustments	(91)	5	(23)
Changes in operating assets and liabilities:
Accounts receivable	(7,536)	(2,232)	(3,536)
Inventories	(7,692)	(3,247)	(489)
Deferred contract sales organization fees	720	(123)
Other assets	(1,586)	(1,624)	(1,060)
Accounts payable	3,008	2,377	3,567
Accrued expenses	5,306	2,123	426
Deferred revenue	11,014	3,662
Net cash used in operating activities	(53,261)	(70,646)	(25,867)
Cash Flows From Investing Activities:
Purchases of short-term investments	(48,015)	(66,088)
Sales and maturities of short-term investments	45,118	50,816	3,000
Proceeds from sale-leaseback of equipment	3,222
Capital expenditures	(2,497)	(3,550)	(1,023)
Intangible asset expenditures	(361)	(500)
Net cash (used in) provided by investing activities	(2,533)	(19,322)	1,977
Cash Flows From Financing Activities:
Proceeds from Deerfield debt note, net of fees		58,419
Proceeds from senior debt note			10,000
Prepayment of senior debt and fee		(26,063)
Proceeds from sale of equipment		415
Proceeds from the issuance of common stock, net of issuance cost	64,560	13	18,122
Proceeds from initial public offering, net of issuance cost			75,013
Payments made on borrowings	(989)	(9,166)	(1,654)
Payments made to purchase treasury stock	(120)	(61)	(171)
Payments made on behalf of Deerfield	(40)
Net cash provided by financing activities	63,411	23,557	101,310
Increase (decrease) in cash and cash equivalents	7,617	(66,411)	77,420
Cash and Cash Equivalents:
Beginning	24,352	90,763	13,343
Ending	31,969	24,352	90,763
Supplemental Disclosure of Noncash Transactions:
Issuance of senior secured convertible notes in lieu of interest payment	6,586
Issuance of common stock upon conversion of senior secured convertible notes	6,586
Capital lease liability from sale-leaseback transactions	3,222
Derivative Liability incurred in connection with First Amendment to Facility	2,107
Prepaid assets included in accounts payable	654
Beneficial conversion feature incurred on convertible notes	613
Deferred contract sales organization fees		597
Issuance of stock warrants			2,131
Exercise of Series C warrants for Series C Preferred Stock			2,322
Cashless exercise of Series C warrants from Series C financing in IPO closing			2,842
Conversion of Redeemable Preferred Stocks into Common Stock			110,776
Reclassification of Series C warrants issued with senior debt upon IPO closing			611
Preferred stock accretion			1,169
Preferred stock dividend			1,221
Supplemental Cash Flow Information:
Interest paid	$ 6,769	$ 2,857	$ 2,524

Organization and nature of oper

Organization and nature of operations	12 Months Ended
	Dec. 31, 2017
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 three approved products for the treatment of attention deficit hyperactivity disorder ("ADHD"). Adzenys XR-ODT was approved by the US Food and Drug Administration (the "FDA") on January 27, 2016 and launched commercially on May 16, 2016. The Company received approval from the FDA for Cotempla XR-ODT, its methylphenidate XR-ODT for the treatment of ADHD in patients 6 to 17 years old, on June 19, 2017, the Company initiated an early experience program with limited product availability on September 5, 2017 before launching this product nationwide on October 2, 2017. Also, the Company received approval from the FDA for Adzenys ER oral suspension ("Adzenys ER") on September 15, 2017, and launched this product on February 26, 2018. 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.

Summary of significant accounti

Summary of significant accounting policies	12 Months Ended
	Dec. 31, 2017
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 ("GAAP"), and with the rules and regulations of the Securities and Exchange Commission ("SEC"). Principles of consolidation: The consolidated financial statements include the accounts of the Company and its four wholly-owned subsidiaries. All significant intercompany transactions have been eliminated. 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. Fourteen and thirteen customers accounted for all the revenue and deferred revenue in the year ended December 31, 2017 and 2016, respectively, and accounts receivable at December 31, 2017 and 2016 were due from fourteen and eleven customers, respectively. Three customers accounted for 93% of the net revenue for the year ended December 31, 2017 and two customers accounted for 82% of the net revenue for the year ended December 31, 2016, respectively, and three customers accounted for 94% and 98% of the accounts receivable at December 31, 2017 and 2016, respectively. Four customers accounted for substantially all revenue in the year ended December 31 2015. 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. Reclassifications: Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current period's presentation. Liquidity: During 2017, 2016 and 2015, the Company produced operating losses and used cash to fund operations. Management intends to achieve profitability through revenue growth from pharmaceutical products developed with the Company's extended-release technologies. The Company does not anticipate it will be profitable until after the successful commercialization of its approved products, Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER. Accordingly, management has performed the review required for going concern accounting and believes the Company presently has sufficient liquidity to continue to operate for the next twelve months after the filing of this Report on Form 10-K. 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 as accumulated other comprehensive loss. Any tax effects are currently and have historically been insignificant. 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, 2017 or December 31, 2016, as management believes that all receivables are fully collectible. Inventories: Inventories are stated at the lower of cost (first in, first out) or market in 2016 and, effective January 1, 2017, inventory is now required to be measured at the lower of cost (first in, first out) or net realizable value. The change to stating inventories at the lower of cost or net realizable value in 2017 was adopted prospectively and did not have a significant effect on the Company's ongoing financial reporting as valuing inventory at the lower of cost or net realizable value approximated the prior policy of valuing inventory at the lower of cost or market. Inventories 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, for the production of Cotempla XR-ODT incurred after June 30, 2017, following the FDA approval date of June 19, 2017, and for the production of Adzenys ER incurred after September 30, 2017, following the FDA approval date of September 15, 2017, are being capitalized into inventory. 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, the costs to acquire the rights to Tussionex ANDA and patents, are recorded at cost and amortized over the estimated lives of the assets, which primarily range from 10 to 20 years. 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. 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, 2017, 2016 or 2015. Derivative liabilities: The Company evaluates its debt and equity issuances to determine if those contracts or embedded components of those contracts qualify as derivatives requiring separate recognition in the Company's financial statements. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as a liability and the change in fair value is recorded in other income (expense) in the consolidated results of operations. In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument is expected within twelve months of the balance sheet date. When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption and are classified in interest expense in the consolidated results of operations. Revenue recognition: Revenue is generated from product sales, recorded on a net sales basis. 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 commercial products to a limited number of pharmaceutical wholesalers, all subject to rights of return. 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 Cotempla XR-ODT, and no sales history for Adzenys ER, and has been unable to 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, Cotempla XR-ODT and Adzenys ER, respectively, until the right of return no longer exists, which occurs at the earlier of the time Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER units are dispensed through patient prescriptions or expiration of the right of return. The Company calculates and expects to calculate patient prescriptions dispensed of Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER, respectively, using an analysis of third-party information. Revenues for Adzenys XR-ODT, Cotempla XR-ODT and generic Tussionex for the years ended December 31, 2017, 2016 and 2015, respectively, are as follows: Year Ended December 31, 2017 2016 2015 (in thousands) Adzenys XR-ODT $ $ $ — Cotempla XR-ODT — — Generic Tussionex ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net branded product sales Net product sales for branded Adzenys XR-ODT and Cotempla XR-ODT 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 rebates to be incurred on the selling price of the respective product sales. The Company recognizes branded total gross product sales less gross to net sales adjustments as revenue based on information from third-party providers. Savings offers The Company offers savings programs for Adzenys XR-ODT and Cotempla 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 of redeemed savings offers 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. Prompt payment discounts Prompt payment discounts are based on standard programs with wholesalers and are recorded as a discount allowance against accounts receivable and as a deferred discount reduction of deferred revenue. The deferred discounts are subsequently recorded within net product sales when the deferred revenue is recognized into revenue based on units dispensed through patient prescriptions. Wholesale distribution fees Wholesale distribution fees are based on definitive contractual agreements for the management of the Company's products by wholesalers and are recorded as deferred wholesale distribution fees in other current assets. The deferred wholesale distribution fees are subsequently recorded as a reduction of net product sales when the deferred revenue is recognized into revenue based on units dispensed through patient prescriptions. 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 managed care organizations and federal and/or state governments. Calculations related to these rebate accruals are estimated based on information from third-party providers. Estimated rebates payable under such programs are recorded as a reduction of revenue at the time revenues are recorded. Historical trends of estimated rebates will be continually monitored and may result in future adjustments to such estimates. Net generic product sales Net product sales for generic Tussionex product represent total gross product sales less gross to net sales adjustments. Gross to net sales adjustments include prompt payment discounts, estimated allowances for product returns, wholesaler fees, estimated government rebates and estimated chargebacks to be incurred on the selling price of generic Tussionex related to the respective product sales. The Company recognizes generic Tussionex total gross product sales less gross to net sales adjustments as revenue based on shipments from 3PL's to the Company's wholesaler customers. Prompt payment discounts Prompt payment discounts are based on standard programs with wholesalers and are recorded as a discount allowance against accounts receivable and as a gross to net sales adjustments at the time 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. Estimated returns are recorded as accrued expenses and as a gross to net sales adjustments at the time revenue is recognized. During 2017, generic Tussionex product returns were estimated based upon return data available from sales of the Company's generic Tussionex product over the past three years. Prior to 2017, generic Tussionex product returns were estimated based upon data available from sales of the Company's generic Tussionex product provided by its former commercialization partner. Wholesale distribution fees Wholesale distribution fees are based on definitive contractual agreements for the management of the Company's product by wholesalers and are recorded as accrued expenses and as a gross to net sales adjustments at the time revenue is recognized. Rebates The Company's generic Tussionex product is subject to state government-managed Medicaid programs whereby discounts and rebates are provided to participating state governments. Estimated government rebates are recorded as accrued expenses and as a gross to net sales adjustments at the time revenue is recognized. During 2017, generic Tussionex government rebates were estimated based upon rebate payment data available from sales of the Company's generic Tussionex product over the past three years. Prior to 2017, Generic Tussionex government rebates were estimated based on information from third-party providers. Historical trends of such rebates will be continually monitored and may result in future adjustments to such estimates. Wholesaler Chargebacks The Company's generic Tussionex 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. Estimated chargebacks are recorded as a discount allowance against accounts receivable and as a gross to net sales adjustments at the time revenue is recognized based on information provided by third parties. Due to estimates and assumptions inherent in determining the amount of generic Tussionex returns, rebates and chargebacks, the actual amount of returns, 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 are recorded in the same period that the related revenue is recognized. Research and development costs: Research and development costs are charged to operations when incurred and 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. 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. 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 $0.4 million and $7.4 million during the years ended December 31, 2017 and 2016, respectively. There was no advertising costs incurred during the year ended December 31, 2015. Share-based compensation: Share-based compensation awards, including grants of employee stock options, restricted stock, restricted stock units ("RSUs") and modifications to existing stock options, are recognized in the 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 had, 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. Under new guidance for accounting for share-based payments, the Company has elected to continue estimating forfeitures at the time of grant and, if necessary, revise the estimate 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. The adoption of this standard in 2017 did not have a material impact on the Company's business, financial position, results of operations or liquidity. 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 ("SAB") Topic 14 due to the increased number and amount of options and option compensation. The Company has reclassified all prior quarters' amounts out of general and administrative expense to the appropriate income statement line in accordance with this approach. 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. 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, 2017 and 2016, 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, the Company considered that three years of cumulative operating losses was significant negative evidence outweighing projections for future taxable income. Therefore, at December 31, 2017 and 2016, the Company 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. 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. 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). Recent accounting pronouncements: In May 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the modification. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. This standard became effective for the Company on January 1, 2018. The adoption of this standard is not expected to have a material impact on the Company's consolidated results of operations or financial position. In August 2016, the FASB issued 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 does not 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, 2018, 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 standard will have on its consolidated financial statements and related disclosures and has not determined the expected impact at this time. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (the "New Revenue Standard"). The New Revenue Standard replaces transaction-and industry-specific revenue recognition guidance under current U.S. GAAP with a principles-based approach for determining revenue recognition. The New Revenue Standard requires an entity to recognize the amount of revenue based on the value of transferred goods or services to customers. There is also additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customer. The New Revenue Standard became effective for the Company on January 1, 2018. The New Revenue Standard permits the use of either a fully retrospective or cumulative effect transition method. For purposes of providing comparable periods upon adoption, the Company will apply the fully retrospective transition method. The impact of the New Revenue Standard relates to the Company's accounting for branded net product sales. There are no changes to the net product sales of generic Tussionex revenue since we have estimated product returns since inception of recognizing revenue in August 2014. As a result, the Company will revise its results for branded net product sales revenue which commenced in May 2016 with the launch of Adzenys XR-ODT for the years ended December 31, 2016 and 2017 and applicable interim periods within those years, as if the New Revenue Standard had been effective for those periods. No revisions are required for the year ended December 31, 2015 with the adoption of the New Revenue S

Net loss per share

Net loss per share	12 Months Ended
	Dec. 31, 2017
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 warrants, outstanding stock options under the stock option plan and shares issuable in future periods, such as RSU awards, 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. Restricted stock is considered legally issued and outstanding on the grant date, while RSUs are not considered legally issued and outstanding until the RSUs vest. Once the RSUs are vested, equivalent common shares will be issued or issuable to the grantee and therefore the RSUs are not considered for inclusion in total common shares issued and outstanding until vested. The following potentially dilutive securities outstanding were excluded from consideration in the computation of diluted net loss per share of common stock for the years ended December 31, 2017, 2016 and 2015, respectively, because including them would have been anti-dilutive: December 31, 2017 2016 2015 Series C Redeemable Convertible Preferred Stock Warrants (as converted) Common Stock Warrants — — Stock options outstanding RSU's granted, not issued or outstanding — —

Fair value of financial instrum

Fair value of financial instruments	12 Months Ended
	Dec. 31, 2017
Fair value of financial instruments
Fair value of financial instruments	Note 4. Fair value of financial instruments The Company records financial assets and liabilities at fair value. The carrying amounts of certain financial assets and liabilities including cash and cash equivalents, accounts receivable, other current assets, accounts payable, accrued liabilities and deferred revenue, approximated their fair value due to their short maturities. The remaining financial instruments were reported on the Company's consolidated balance sheets at amounts that approximate current fair values based on market based assumptions and inputs. As a basis for categorizing inputs, the Company uses a three tier fair value hierarchy, which prioritizes the inputs used to measure fair value from market based assumptions to entity specific assumptions 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 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, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ $ — $ — $ Short-term investments — — Earnout liability — — Derivative liability (see Note 11) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company's Level 1 assets included bank deposits, certificates of deposit and actively traded money market funds with a maturity of 90 days or less at December 31, 2017 and 2016. Asset values were considered to approximate fair value due to their short-term nature. The Company's Level 2 assets included commercial paper and corporate bonds with maturities of less than one year that are not actively traded which were classified as available for sale securities. The estimated fair values of these securities were determined by third parties using 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, 2017 and 2016 as shown below: December 31, 2017 Amortized Unrealized Market (in thousands) Bank deposits and money market funds $ $ — $ Financial and corporate debt securities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2016 Amortized Unrealized Market (in thousands) Bank deposits and money market funds $ $ — $ Financial and corporate debt securities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company's Level 3 liability included the fair value of the earnout liability at December 31, 2017 and 2016 and the fair value of the Deerfield derivative liability at December 31, 2017. The fair value of the earnout liability was determined after taking into consideration valuations using the Monte Carlo method based on assumptions at December 31, 2016 and revised at December 31, 2017. These revisions were primarily due to an updated revenue forecast for the Company's generic Tussionex and the use of a directly-calculated revenue volatility of 42% based on data for potential comparable publicly-traded companies in the generic drug manufacturing space including the Company, whereas previously an unlevered equity volatility of 50% had been selected. Significant changes to these assumptions would result in increases/decreases to the fair value of the earnout liability. The methodologies and significant inputs used in the determination of the fair value of the earnout liability were as follows: Initial Valuation December 31, 2015 December 31, 2016 December 31, 2017 Date of Valuation 8/28/2014 12/31/2015 12/31/2016 12/31/2017 Valuation Method Monte Carlo Monte Carlo Monte Carlo Monte Carlo Volatility (annual) 50% 50% 50% 42% Risk-free rate (annual) .03% - 3.56% .56% - 3.31% .74% - 3.42% 1.62% - 2.88% Time period from valuation until end of earnout .1708 - 9.8417 .5 - 9.5 .5 - 9.5 .5 - 9.5 Earnout Target 1 (thousands) $13,700 $13,700 $13,700 $13,700 Earnout Target 2 (thousands) $18,200 $18,200 $18,200 $18,200 Discount rate 8.03% - 10.51% 8.11% - 10.86% 12.02% - 14.70% 14.72% - 15.98% ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of liability at valuation date (thousands) $589 $214 $232 $170 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The fair value of the derivative liability was determined after taking into consideration valuations using the Monte Carlo method based on assumptions at June 1, 2017 and December 31, 2017. The methodologies and significant inputs used in the determination of the fair value of the debt derivative liability were as follows: Derivative Liability Initial Valuation Date of Valuation 12/31/2017 6/1/2017 Valuation Method Monte Carlo Monte Carlo Volatility (annual) N/A 76.4% Time period from valuation until maturity of debt (yrs.) 4.360 4.943 Cumulative probability of a change in control prepayment implied by model 27% 28% Cumulative probability of other accelerated prepayments implied by model 17% 17% Discount rate 16.20% 15.87% ​ ​ ​ ​ ​ Fair value of liability at valuation date (thousands) $1,660 $2,107 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Significant changes to these assumptions in the preceding valuation tables would result in increases/decreases to the fair value of the earnout liability and derivative liability. Changes in Level 3 liabilities measured at fair value for the periods indicated were as follows: Level 3 (in thousands) Balance at December 31, 2015 $ ​ ​ ​ ​ ​ Change in fair value ​ ​ ​ ​ ​ Balance at December 31, 2016 ​ ​ ​ ​ ​ Addition of Deerfield derivative liability Change in fair value ) ​ ​ ​ ​ ​ Balance at December 31, 2017 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Inventories

Inventories	12 Months Ended
	Dec. 31, 2017
Inventories
Inventories	Note 5. Inventories Inventories at the indicated dates consist of the following: December 31, 2017 2016 (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 the cost of shipments of Adzenys XR-ODT and Cotempla XR-ODT to distributors where the related revenue has been deferred. Such amounts are charged to cost of goods sold when the associated revenue is recognized.

Property and equipment

Property and equipment	12 Months Ended
	Dec. 31, 2017
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, 2017 2016 (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 $157 and $762 at December 31, 2017 and 2016, respectively, applicable to capital leases) ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization expense related to property and equipment was $1,363,000, $1,598,000 and $1,724,000 for the years ended December 31, 2017, 2016 and 2015, 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.

Sale-leaseback transaction

Sale-leaseback transaction	12 Months Ended
	Dec. 31, 2017
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). 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 and the November 2013 leases for a total of $3.5 million and $1.0 million of assets expired in July 2016 and April 2017, respectively, and the related $2.6 million and $161,000 gains, respectively, were fully amortized at that time and the $385,000 and $100,000 lease buy-out option liabilities, respectively, were 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. The March 2014 lease for $795,000 of asset expired in September 2017 and the related $116,000 gain was fully amortized at that time and the lease buy-out option liability of $79,000 was fully satisfied. In February 2017, the Company entered into an agreement with a related party for the sale-leaseback of newly acquired assets of up to $5.0 million to finance its capital expenditures. Each lease under this master agreement will be for an initial term of 36 months and will have an option to purchase the equipment at the end of the respective lease that management considers to be a bargain purchase option. Under this agreement, the Company entered into leases and sold assets with a total capitalized cost of $481,000 and $2,742,000 at effective interest rates of 14.3% and 14.9% on February 13, 2017 and June 30, 2017, respectively. The February sale resulted in net gains of $14,000 which has been deferred and is being amortized over the 36-month term of the lease. There was no gain or loss on the June 2017 sale. For the years ended December 31, 2017, 2016 and 2015, approximately $44,000, $507,000 and $831,000, respectively, of the net gain on sale-leasebacks was recognized in other income on the condensed consolidated statements of operations.

Intangible assets

Intangible assets	12 Months Ended
	Dec. 31, 2017
Intangible assets
Intangible assets	Note 8. Intangible assets Intangible assets, net at the indicated dates consist of the following: December 31, 2017 2016 (in thousands) Proprietary modified-release drug delivery technology $ $ Tussionex ANDA CPI profit sharing Patents 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, 2017, 2016 and 2015. 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 Coating Place, Inc. ("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, 2017, 2016 and 2015, resulting in a $62,000 decrease, an $18,000 increase and a $542,000 decrease 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 for each of the years ended December 31, 2017, 2016 and 2015. Aggregate amortization of intangible assets for each of the next five years and thereafter is as follows: Year ending December 31, (in thousands) 2018 $ 2019 2020 2021 2022 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 $599,000 are being amortized over their expected useful life, including $535,000 being amortized for approximately 16 years beginning with the approval of Adzenys XR-ODT on January 27, 2016 and $64,000 being amortized for approximately 15 years beginning in December 2017. Patents utilized in the manufacturing of Cotempla XR-ODT which total $83,000 are being amortized over their expected useful life of approximately 15 years, beginning with the approval of Cotempla XR-ODT on June 19, 2017. Patents utilized in the manufacturing of Adzenys ER which total $451,000 are being amortized over their expected useful life of approximately 15 years, beginning with the approval of Adzenys ER on September 15, 2017. For the years ended December 31, 2017, 2016 and 2015, $88,000, $69,000 and $23,000 of patent amortization expense was recorded, respectively.

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2017
Income taxes
Income taxes	Note 9. 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, the 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 2014 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. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017. The legislation significantly changes U.S. tax law by, among other things, lowering the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the Tax Cuts and Jobs Act of 2017, the Company revalued its ending net deferred tax assets at December 31, 2017 and recognized a reduction of $20.5 million in deferred tax assets with a corresponding reduction in the valuation allowance. The significant components of deferred income tax assets and liabilities consist of the following: December 31, 2017 2016 (in thousands) Deferred Tax Assets: Net operating loss $ $ Deferred revenue — Share-based compensation R&D tax credit Other reserves Capital lease liability State deferreds Inventory — Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred Tax Liabilities: Intangible assets ) ) Property and equipment ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset (liability) $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2017, and 2016, the Company has gross federal net operating loss carry-forwards of $247,493,000 and $200,170,000 and research and development credits of $2,275,000 and $2,179,000, respectively, which begin to expire in 2024. The Company has tax effected state net operating loss carry-forwards of $2,620,000 and $1,835,000 at December 31, 2017 and 2016, 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. Due to an ownership change in 2017, the amount of federal net operating loss that will expire unused due to the Section 382 limitation is $101,744,000. The amount of federal research and development credit that will expire unused is $350,000. The deferred tax assets and related valuation allowances for both carryforwards have been reduced 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, 2017 and December 31, 2016, the Company had gross unrecognized tax benefits related to uncertain tax positions of $7,261,000 and $5,081,000, 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, 2017 2016 (in thousands) Beginning Balance $ $ Increase based on tax positions taken during a current period ​ ​ ​ ​ ​ ​ ​ ​ Ending Balance $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company has recorded a valuation allowance of $39,322,000 at December 31, 2017 and $68,217,000 at December 31, 2016 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 a decrease of 28,895,000 and an increase of $29,886,000 for the years ended December 31, 2017 and December 2016, respectively. As a result of the TCJA reduction in the U.S. corporate income tax rate, the Company reduced its deferred tax assets by $20,547,000 with a corresponding reduction in the valuation allowance. 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 2017 2016 U.S. Statutory Tax Rate % % Change in Valuation Allowance )% Deferred Tax Adjustments )% % Federal Rate Change )% — State tax expense, net % % Provision to Return and Other Adjustments )% )% ​ ​ ​ ​ ​ ​ ​ ​ Tax Expense / (Benefit) % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The deferred tax adjustments are primarily attributable to the amount of federal net operating loss that will expire unused due to the Section 382 limitation.

Accrued expenses

Accrued expenses	12 Months Ended
	Dec. 31, 2017
Accrued expenses
Accrued expenses	Note 10. Accrued expenses Accrued expenses as of December 31, 2017 and 2016 consist of the following: December 31, 2017 2016 Reserve for rebates $ $ Accrued payroll and benefits Reserve for wholesaler fees Other accrued expenses ​ ​ ​ ​ ​ ​ ​ ​ Total accrued expenses $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Long-term debt

Long-term debt	12 Months Ended
	Dec. 31, 2017
Long-term debt
Long-term debt	Note 11. Long-term debt Long-term debt at the indicated dates consists of the following: December 31, 2017 2016 (in thousands) Deerfield senior secured credit facility, net of discount of $2,843 and $1,401, respectively $ $ Capital leases, maturing through May 2020 ​ ​ ​ ​ ​ ​ ​ ​ Less current portion ) ) ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Senior secured credit facility: On May 11, 2016, the Company entered into a $60.0 million senior secured credit facility ("Facility") with Deerfield Private Design Fund III, L.P. (66 2 / 3 % of Facility) and Deerfield Special Situations Fund, L.P. (33 1 / 3 % of Facility) (collectively, "Deerfield"), as lenders. In February 2017, the Company closed an underwritten public offering of 5,750,000 shares of its common stock at a public offering price of $5.00 per share (see Note 12). Deerfield, the Company's senior lender, participated in the purchase of the Company's common shares as part of this public offering, and as a result, is now classified as a related party. 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") with Hercules Technology III, L.P., ("Hercules"), 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 ("Note") that was issued by the Company to Essex Capital Corporation ("Essex"), which were otherwise payable in 2016 and 2017. Principal on the 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 had an option, which it exercised, to defer payment of each of the first four interest payments, adding such amounts to the outstanding loan principal. The aggregate $6.6 million in deferred interest payments ("Accrued Interest") was due and payable on June 1, 2017. Borrowings under the Facility are collateralized by substantially all of the Company's assets, except the assets under capital lease, and the Company will maintain cash on deposit of not less than $5.0 million. On June 1, 2017 (the "Amendment Date"), the Company and Deerfield entered into a First Amendment (the "Amendment") to the Facility which extended the date to repay the Accrued Interest under the Facility to June 1, 2018 (the "PIK Maturity Date"), which may be extended to June 1, 2019 at the election of the Company if certain conditions have been met as specified in the Amendment. The right to payment of the Accrued Interest was memorialized in the form of senior secured convertible notes (the "Convertible Notes") issued to Deerfield on the Amendment Date. Interest is due quarterly at a rate of 12.95% per year. The principal amount of the Convertible Notes issued under the Amendment and all accrued and unpaid interest thereon shall become due and payable upon written notice from Deerfield, and if either (a) the Company does not meet certain quarterly sales milestones specified in the Amendment or (b) the Company has not received and publicly announced FDA approval of the new drug applications on or before the applicable Prescription Drug User Fee Act (the "PDUFA") goal date as set forth on the schedules to Amendment. Per the Amendment, the Company will prepay all of the outstanding obligations under the Facility and the Convertible Notes upon the occurrence of a change in control or a sale of substantially all of the Company's assets and liabilities. The Amendment increased the staggered prepayment fees for prepayments due upon a change of control or any other prepayment made or required to be made by the Company by 300 basis points from June 1, 2017 through the period ending prior to May 11, 2020 for the change in control prepayment fees and through the period ending prior to May 11, 2022 for any other prepayments, respectively (the "Prepayment Premiums"). Such Prepayment Premiums, as amended, range from 12.75% to 2%. The $6.6 million of Convertible Notes was convertible into shares of the Company's common stock at the noteholder's option at any time up to the close of business on the date that is five days prior to the PIK Maturity Date. The per share conversion price was the greater of (a) 95% of the average of the volume weighted average prices per share of the Company's common stock on the NASDAQ Global Market for the three trading day period immediately preceding such conversion, and (b) $7.00. Deerfield cannot own more than 9.985% of the Company's outstanding shares at any one time, and the aggregate conversion cannot exceed 19.9% of the Company's outstanding common stock as of June 1, 2017. On October 26, 2017, Deerfield provided a conversion notice electing to convert the entire $6.6 million of Convertible Notes into shares of the Company's common stock at a conversion price of $7.08 per share. The conversion price was based on 95% of the average of the volume weighted average prices per share of the Company's common stock on the NASDAQ Global Market for the three trading day period immediately preceding such conversion. This resulted in issuing 929,967 shares of the Company's common stock to Deerfield on this date and the Convertible Notes were cancelled. In conjunction with the Amendment to the Facility and the related issuance of the Convertible Notes, the Company entered into a Registration Rights Agreement ("Registration Agreement") which required the Company to file a registration statement with the SEC to register the shares of common stock issued or issuable upon conversion of the Convertible Notes ("Conversion Shares") (subject to certain adjustment for stock split, dividend or other distribution, recapitalization or similar events, "Registrable Securities") within 30 days from June 1, 2017, which was to become effective per the SEC no later than 75 days thereafter. The Company filed a registration statement on Form S-3 to comply with the Registration Agreement on June 30, 2017, which became effective on July 11, 2017. This filing covered 940,924 shares, which is the number of shares that would be issued at the floor conversion rate of $7.00 per share. The Company is also required to, among other things, maintain the effectiveness of such registration statement, continue to file the required SEC filings on a timely basis, use its best efforts to ensure that the registered securities are listed on each securities exchange on which securities of the same class or series as issued by the Company are then listed and comply with any Financial Industry Regulatory Authority ("FINRA ") requests. The Company's obligations with respect to each registration end at the date which is the earlier of (a) when all of the Registrable Securities covered by such registration have been sold or (b) when Deerfield or any of its transferee or assignee under the Registration Agreement cease to hold any Registrable Securities. For each registration, the Company shall bear all reasonable expenses, other than underwriting discounts and commissions, and shall reimburse Deerfield or any assignee or transferee for up to $25,000 in legal fees. The Company currently expects to satisfy all of its obligations under this Registration Agreement and does not expect to pay any damages pursuant to this agreement; therefore, no liability has been recorded (see Note 15). The Company has accounted for the Amendment as a debt modification as the instruments were not substantially different; therefore, the remaining debt discount on the original Facility is being amortized using the effective interest method over the remaining term of the modified debt. The Company evaluated the Amendment together with the Convertible Notes to determine if those contracts or embedded components of those contracts qualified as derivatives requiring separate recognition. This evaluation identified a derivative liability of $2.1 million for the fair value of the change in control and other accelerated payment features as the prepayment fees resulted in premiums that were greater than 10% (see Note 4). As the change in control and other accelerated payments terms, including the prepayment fees, were applied to the entire debt per the terms of the amended Facility, the corresponding debt discount will be amortized using the effective interest method over the remaining term of the Facility. The fees paid to or on behalf of the creditor for the debt modification totaled $40,000 and were recorded as additional debt discount on the amended Facility to be amortized to interest expense using the effective interest method over the term of the Facility. The Company's evaluation also determined that the embedded conversion options should not be bifurcated as derivatives from the Convertible Notes host instruments. Therefore, the Company recorded a $0.6 million discount to the convertible notes for the intrinsic value of the embedded conversion option based upon the difference between the fair value of the underlying common stock on June 1, 2017 and the effective conversion price embedded in the Convertible Notes, which will be amortized using the effective interest method to interest expense over the one-year term of the Convertible Notes. The Company recorded a $0.6 million corresponding credit to a beneficial conversion feature classified as additional paid in capital in stockholders' equity (deficit) in the Company's financial statements. In connection with the initial 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 $5.0 million. Pursuant to the Convertible Notes, if the Company had failed to provide the number of conversion shares, then the Company would have paid damages to Deerfield or subsequent holder or any designee ("Holder") for each day after the third business day after receipt of notice of conversion ("Share Delivery Date") that such conversion was not timely effected. 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 lenders 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, 2017, the Company was in compliance with the covenants under the Facility. Debt discount amortization for the Facility, including the Amendment after June 1, 2017, was calculated using the effective interest rates of 15.03% on the original facility debt and 25.35% on the Convertible Notes, charged to interest expense and totaled $1,316,000 and $181,000 for the years ended December 31, 2017 and 2016, respectively. Senior debt: In March 2014, the Company entered into the LSA, 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 under a previous credit facility. 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, and the fourth and final draw ("Tranche 4") in the amount of $5.0 million was issued in June 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. LSA end of term charge amortization totaled $121,000 and $311,000 for the years ended December 31, 2016 and 2015, respectively. LSA debt discount amortization charged to interest expense totaled $104,000 and $265,000 for the years ended December 30, 2016 and 2015, respectively. 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. 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. During the year ended December 31, 2016, interest expense of $263,000 was accrued. On May 11, 2016, the Company prepaid the $5.9 million outstanding aggregate principal and $1.3 million in accrued and unpaid interest. Capital lease obligations to related party: As described in Notes 7 and 17, during the years ended December 31, 2017, 2014 and 2013, the Company entered into agreements with Essex for the sale-leaseback of existing and newly acquired assets with a total capitalized cost of $3.2 million, $795,000 and $5.5 million, respectively, which are classified as capital leases. The approximate imputed interest rate on these leases is 14.9%, 14.5% and 14.5%, respectively. Interest expense on these leases was $263,000, $204,000 and 467,000 for the years ended December 31, 2017, 2016 and 2015 respectively. Future minimum capital lease payments through the years ending December 31, 2020 are as follows: Year ending: December 31, (in thousands) 2018 $ 2019 2020 ​ ​ ​ ​ ​ 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) 2018 $ 2019 2020 2021 2022 Thereafter — ​ ​ ​ ​ ​ Future principal payments $ ​ ​ ​ ​ ​ Less unamortized debt discount ) Less current portion of long-term debt ) ​ ​ ​ ​ ​ Total long-term debt $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Common stock

Common stock	12 Months Ended
	Dec. 31, 2017
Common stock
Common stock	Note 12. Common stock 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. In February 2017, the Company closed an underwritten public offering of 5,750,000 shares of its common stock at a public offering price of $5.00 per share, which included 750,000 shares of its common stock resulting from the underwriters' exercise of their over-allotment option on February 17, 2017. Deerfield, the Company's senior lender, participated in the purchase of the Company's common shares as part of this public offering, and as a result, is now classified as a related party. 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 $26.7 million. On June 30, 2017, the Company closed an underwritten public offering of 4,800,000 shares of the its common stock at a public offering price of $6.25 per share for total proceeds of $30.0 million before estimated offering costs of $0.2 million. The Company also granted the underwriters a 30-day option to purchase up to an additional 720,000 shares of its common stock which was exercised in full on July 26, 2017. The net proceeds to the Company through July 26, 2017 from this offering, after deducting offering expenses payable by the Company, were approximately $34.3 million. The shares of common stock for both the June 2017 and February 2017 offerings were offered pursuant to a shelf registration statement on Form S-3, including a base prospectus, filed by us on August 1, 2016, and declared effective by the SEC, on August 12, 2016. This shelf registration statement 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 "Sales Agreement"). During the year ended December 31, 2017, the Company sold an aggregate 749,639 shares of common stock under the Sales Agreement in February 2017, at an average sale price of approximately $5.01 per share for gross proceeds of $3.7 million and net proceeds of $3.6 million and paying total compensation to the sales agent of approximately $0.1 million. As of December 31, 2017, $58.0 million of the Company's common stock, preferred stock, debt securities, warrants and/or units remained available to be sold pursuant to the Shelf, including $36.2 million of the Company's common stock which remained available to be sold under the Sales Agreement, subject to certain conditions specified therein. On October 26, 2017, Deerfield provided a conversion notice electing to convert the entire $6.6 million of Convertible Notes into shares of the Company's common stock at a conversion price of $7.08 per share. The conversion price was based on 95% of the average of the volume weighted average prices per share of the Company's common stock on the NASDAQ Global Market for the three trading day period immediately preceding such conversion. This resulted in issuing 929,967 shares of the Company's common stock to Deerfield on this date and the Convertible Notes were cancelled. The Company never declared or paid any dividends on its capital stock. The Company currently intends to retain all available funds and any future earnings, if any, to fund the development and expansion of its business, and the Company does not anticipate paying any cash dividends in the foreseeable future. Any future determination to pay dividends will be made at the discretion of our board of directors. The Company’s ability to pay dividends on its common stock is limited by restrictions under the terms of our credit facility with Deerfield. In addition, any future indebtedness that the Company may incur could preclude it from paying dividends.

Share-based Compensation

Share-based Compensation	12 Months Ended
	Dec. 31, 2017
Share-based Compensation
Share-based Compensation	Note 13. Share-based Compensation Share-based Compensation Plans 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. Accordingly, on January 1, 2018 and 2017, the Company added 1,449,847 shares and 803,049 shares, respectively, 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 reserved and available for issuance. Effective upon closing of the IPO, the Company's 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. Through December 31, 2017, the Company has granted options, restricted stock and RSUs. The exercise price per share for the stock covered by a stock award 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 stock awards 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 and to grant restricted stock awards to members of its management and selected members of the Company's 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. 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 periods ranging from two to four years. 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, 2017, 9,304 shares related to forfeited 2009 Plan options and 33,801 shares related to the surrender of restricted stock were added to the shares available under the 2015 Plan. During year ended December 31, 2017, 1,804 shares related to forfeited 2009 Plan options and 14,895 shares related to the surrender of restricted stock were added to the shares available under the 2015 Plan. As of December 31, 2017, 594,665 shares of common stock remain available for grant under the 2015 Plan. Share-based Compensation Expense The Company has reported share-based compensation expense for the years ended December 31, 2017, 2016 and 2015, respectively, in its condensed consolidated statements of operations as follows: Year Ended December 31, 2017 2016 2015 (in thousands) Cost of goods sold $ $ $ Research and development Selling and marketing General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The total share based compensation expense included in the table above is attributable to stock options, RSUs and restricted stock of $3.9 million, $86,000 and $71,000, respectively, for the year ended December 31, 2017. The total share based compensation expense included in the table above is attributable to stock options and restricted stock of $3.4 million and $91,000, respectively, for the year ended December 31, 2016. The total share based compensation expense included in the table above is attributable to stock options and restricted stock of $1.1 million and $94,000, respectively, for the year ended December 31, 2015. As of December 31, 2017, there was $6.5 million of compensation costs adjusted for any estimated forfeitures, related to non-vested stock options and RSUs granted under the Company's equity incentive plans not yet recognized in the Company's financial statements. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.0 years for stock options and 3.4 years for RSUs. There is no unrecognized compensation cost associated with grants of restricted stock. Stock Options During the year ended December 31, 2017, the Company's board of directors granted 570,432 options. The Company estimates the fair value of all stock options 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 period indicated are as follows: Year Ended December 31, 2017 2016 2015 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 $ $ $ A summary of outstanding and exercisable options as of December 31, 2017, 2016 and 2015, and the activity from December 31, 2014 through December 31, 2017, is presented below: Number of Weighted-Average Intrinsic (in thousands) 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 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted Exercised ) Expired, forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted-average remaining contractual life of options outstanding and exercisable on December 31, 2017 was 7.9 and 7.2 years, respectively. The option exercise price for all options granted in the year ended December 31, 2017 ranged from $7.00 to $9.10 per share. Restricted Stock Units On May 1, 2017, the Company granted 78,750 RSUs to members of its management which vest in four equal annual installments, beginning May 1, 2018. On October 2, 2017, the Company granted 6,250 RSUs to a member of its management which vest in four equal annual installments, beginning October 2, 2018. The Company had not issued any RSUs previously. A summary of outstanding RSUs as of December 31, 2017 and 2016 and the activity from December 31, 2016 through December 31, 2017, is presented below: Number of Weighted-Average Outstanding at December 31, 2016 — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted $ Exercised — — Expired, forfeited or cancelled — — ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2017 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted-average remaining contractual life of RSUs outstanding on December 31, 2017 was 9.4 years. Restricted stock The Company did not issue any shares of restricted stock for the years ended December 31, 2017, 2016 and 2015. On October 16, 2017, October 17, 2016 and October 16, 2015, 14,895 shares, 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. The surrendered shares of restricted stock were added to the shares available under the 2015 Plan. The Company had no unvested restricted stock as of December 31, 2017, and had 35,513 and 71,025 shares of unvested restricted stock with a weighted average fair value of $2.55 and $2.55 as of December 31, 2016 and 2015, respectively. For the years ended December 31, 2017, 2016 and 2015, there were no shares of restricted stock granted or forfeited.

Treasury stock

Treasury stock	12 Months Ended
	Dec. 31, 2017
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 October 16, 2017, October 17, 2016 and October 16, 2015, 14,895 shares, 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 33,801 shares as of December 31, 2017. 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.

Commitments and contingencies

Commitments and contingencies	12 Months Ended
	Dec. 31, 2017
Commitments and contingencies
Commitments and contingencies	Note 15. Commitments and contingencies Registration Payment Arrangement: On June 1, 2017, in conjunction with the Amendment to the Facility and the related issuance of the Convertible Notes, the Company entered into the Registration Agreement which required the Company to file a registration statement with the SEC to register the Registrable Securities (see Note 11) within 30 days from June 1, 2017, which was to become effective per the SEC no later than 75 days thereafter. The Company filed a registration statement on Form S-3 to comply with the Registration Agreement on June 30, 2017, which became effective on July 11, 2017. This filing covered 940,924 shares, which is the number of shares that would be issued at the floor conversion rate of $7.00 per share. The Company is also required to, among other things, maintain the effectiveness of such registration statement, continue to file the required SEC filings on a timely basis, use its best efforts to ensure that the registered securities are listed on each securities exchange on which securities of the same class or series as issued by the Company are then listed and comply with any FINRA requests. Upon any Registration Failure, the Company shall pay additional damages to the Holder for each 30-day period (prorated for any partial period) after the date of such Registration Failure in an amount in cash equal to two percent of the original principal amount of the Convertible Notes. The Company's obligations with respect to each registration end at the date which is the earlier of (a) when all of the Registrable Securities covered by such registration have been sold or (b) when Deerfield or any of its transferee or assignee under the Registration Agreement cease to hold any of the Registrable Securities. For each registration filing, the Company shall bear all reasonable expenses, other than underwriting discounts and commissions, and shall reimburse Deerfield or any assignee or transferee for up to $25,000 in legal fees. The Company currently expects to satisfy all of its obligations under the Registration Agreement and does not expect to pay any damages pursuant to this agreement; therefore, no liability has been recorded. Patent Infringement Litigation: On October 31, 2017, the Company received a paragraph IV certification from Teva Pharmaceuticals USA, Inc. ("Teva") advising the Company that Teva has filed an ANDA with the FDA for a generic version of Cotempla XR-ODT, in connection with seeking to market its product prior to the expiration of patents covering Cotempla XR-ODT. The certification notice alleged that the three U.S. patents listed in the FDA's Orange Book for Cotempla XR-ODT, one with an expiration date in April 2026 and two with expiration dates in June 2032, will not be infringed by Teva's proposed product, are invalid and/or are unenforceable. On December 13, 2017, the Company filed a patent infringement lawsuit in federal district court in the District of Delaware against Teva alleging that Teva infringed the Company's Cotempla XR-ODT patents by submitting to the FDA an ANDA seeking to market a generic version of Cotempla XR-ODT prior to the expiration of the Company's patents. This lawsuit automatically stayed, or barred, the FDA from approving Teva's ANDA for 30 months or until a district court decision that is adverse to the asserted patents is rendered, whichever is earlier. The Company intend to vigorously enforce its intellectual property rights relating to Cotempla XR-ODT. On July 25, 2016, the Company received a paragraph IV certification from Actavis Laboratories FL, Inc. ("Actavis") advising the Company that Actavis had filed an Abbreviated New Drug Application ("ANDA") with the FDA for a generic version of Adzenys XR-ODT. The certification notice alleged 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 alleging 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. On October 17, 2017, the Company entered into a Settlement Agreement (the "Settlement Agreement") and a Licensing Agreement (the "Licensing Agreement" and collectively with the Settlement Agreement, the "Agreement") with Actavis. The Agreement resolves all ongoing litigation involving our Adzenys XR-ODT patents and Actavis's ANDA. Under the Agreement, the Company granted Actavis the right to manufacture and market its generic version of Adzenys XR-ODT under the ANDA beginning on September 1, 2025, or earlier under certain circumstances. A stipulation and order of dismissal was entered by the U.S. District Court for the District of Delaware. The Agreement has been submitted to the applicable governmental agencies. Other Litigation: On March 7, 2018, the Company received a citation advising the Company that the County of Harris, Texas (the "County") filed a lawsuit on December 13, 2017 against the Company and various other alleged manufacturers, promoters, sellers and distributors of opioid pharmaceutical products. Through this lawsuit, the County seeks to recoup as damages some of the expenses it allegedly has incurred to combat opioid use and addiction. The County also seeks punitive damages, disgorgement of profits and attorneys' fees. While the Company believes that the lawsuit is without merit and intend to vigorously defend against it, the Company is not able to predict at this time whether this proceeding will have a material impact on its results of operations. 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. 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, 2017, 2016 and 2015, the Company recorded $419,000, $371,000 and $186,000, 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) 2018 $ 2019 2020 2021 2022 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 $1,083,000 and $1,174,000 at December 31, 2017 and December 31, 2016, 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 $243,000 and $230,000 for the years ended December 31, 2017 and 2016. The Company's share of these operating expenses for the Grand Prairie facility was $237,000 for the years ended December 31, 2015. Rent expense for these leases, excluding the share of operating expenses, was $1,010,000, $1,011,000 and $884,000 for the years ended December 31, 2017, 2016 and 2015, 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 $701,000, $464,000 and $552,000 of compensation expense for the years ended December 31, 2017, 2016 and 2015, respectively, under the Bonus Plan.

License agreements

License agreements	12 Months Ended
	Dec. 31, 2017
License agreements
License agreements	Note 16. License agreements On October 17, 2017, the Company entered into the Agreement with Actavis. Under the Licensing Agreement, the Company granted Actavis a non-exclusive license to certain patents owned by the Company by which Actavis has the right to manufacture and market its generic version of Adzenys XR-ODT under its ANDA beginning on September 1, 2025, or earlier under certain circumstances. The Licensing Agreement has been submitted to the applicable governmental agencies (see Note 15). On July 23, 2014, the Company entered into a Settlement Agreement and an associated License Agreement (the "2014 License Agreement") with Shire LLC ("Shire") for a non-exclusive license to certain patents for certain activities with respect to the Company's New Drug Application (the "NDA") No. 204326 for an extended-release orally disintegrating amphetamine polistirex tablet. In accordance with the terms of the 2014 License 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 in February 2016. The Company is paying a single digit royalty on net sales of Adzenys XR-ODT during the life of the patents. On January 26, 2017, the Company sent a letter to Shire, notifying Shire that the Company has made a Paragraph IV certification to the FDA that in the Company's opinion and to the best of its knowledge, the patents owned by Shire that purportedly cover the Company's Adzenys ER are invalid, unenforceable and/or will not be infringed by the commercial manufacture, use or sale of Adzenys ER. On March 6, 2017, the Company entered into a License Agreement (the "2017 License Agreement") with Shire, pursuant to which Shire granted the Company a non-exclusive license to certain patents owned by Shire for certain activities with respect to the Company's NDA No. 204325 for an extended-release amphetamine liquid suspension. In accordance with the terms of the 2017 License Agreement, following the receipt of the approval from the FDA for Adzenys ER, the Company paid a lump sum, non-refundable license fee of an amount less than $1.0 million in October 2017. The Company will also pay a single digit royalty on net sales of Adzenys ER during the life of the relevant Shire patents. Such license fees are capitalized as an intangible asset and are amortized into cost of goods sold over the life of the longest associated patent. The royalties are recorded as cost of goods sold in the same period as the net sales upon which they are calculated. Additionally, each of the 2014 and 2017 License Agreements contains a covenant from Shire not to file a patent infringement suit against the Company alleging that Adzenys XR-ODT or Adzenys ER, respectively, infringes the Shire patents.

Related party transactions

Related party transactions	12 Months Ended
	Dec. 31, 2017
Related party transactions
Related party transactions	Note 17. Related party transactions As described in Note 7, in February 2017, the Company entered into an agreement with a related party for the sale-leaseback of newly acquired assets of up to $5.0 million to finance the Company's capital expenditures. Each lease under this master agreement will be for an initial term of 36 months and will have an option to purchase the equipment at the end of the respective lease that management considers to be bargain purchase option. Under this master agreement, the Company entered into leases and sold assets with a total capitalized cost of $481,000 and $2,742,000 at effective interest rates of 14.3% and 14.9% on February 13, 2017 and June 30, 2017, respectively. Also, in 2012, the Company negotiated financing arrangements with the same related party that provided for the sale-leaseback of up to $6.5 million of the Company's property and equipment. From the 2012 financing arrangements, the Company has no lease obligation remaining at December 31, 2017 and has a lease obligation of $445,000 at December 31, 2016. The total lease obligation under all related party financing arrangements was $2,678,000 and $445,000 at December 31, 2017 and 2016, respectively. In February 2017, the Company closed an underwritten public offering of 5,750,000 shares of its common stock at a public offering price of $5.00 per share, which includes 750,000 shares of the Company's common stock resulting from the underwriters' exercise of their over-allotment option at the public offering price on February 17, 2017 (see Note 12). On June 30, 2017, the Company closed an underwritten public offering of 4,800,000 shares of its common stock at a public offering price of $6.25 per share for total proceeds of $30.0 million before estimated offering costs of $0.2 million. The Company also granted the underwriters a 30-day option to purchase up to an additional 720,000 shares of its common stock (see Note 12). Deerfield, the Company's senior lender, participated in the purchase of the Company's common shares as part of both public offerings, and as a result, is now classified as a related party. The Company is obligated under a $60.0 million senior secured credit Facility that was issued by the Company to Deerfield. On June 1, 2017, the Company and Deerfield entered into an Amendment to the Company's existing Facility with Deerfield which extended the date to repay the Accrued Interest under the Facility to June 1, 2018, which may be extended to June 1, 2019 at the election of the Company if certain conditions have been met as specified in the Amendment. The right to payment of the Accrued Interest was memorialized in the form of Convertible Notes issued to Deerfield on the Amendment Date. On October 26, 2017, Deerfield provided a conversion notice electing to convert the entire $6.6 million of Convertible Notes into shares of the Company's common stock at a conversion price of $7.08 per share. The conversion price was based on 95% of the average of the volume weighted average prices per share of the Company's common stock on the NASDAQ Global Market for the three trading day period immediately preceding such conversion. This resulted in issuing 929,967 shares of the Company's common stock to Deerfield on this date and the Convertible Notes were cancelled (see Note 11).

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2017
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, 2017 and 2016, are as follows (in thousands, except share and per share amounts): Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Net sales(1) $ $ $ $ Gross profit(1) Net loss attributable to common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding used to compute net loss per share, basic and diluted(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(1) $ $ $ $ Gross (loss)(1) ) ) ) ) Net loss attributable to common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding used to compute net loss per share, basic and diluted(2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss per share of common stock, basic and fully diluted(3): $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The Company began selling Adzenys XR-ODT on May 16, 2016 and initiated an early experience program for Cotempla XR-ODT with limited product availability on September 5, 2017 before launching this product nationwide on October 2, 2017, and has determined that at this time it cannot reliably estimate expected returns of the products 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 and Cotempla XR-ODT until the right of return no longer exists, which occurs at the earlier of the time Adzenys XR-ODT and Cotempla 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 and Cotempla XR-ODT reflect only patient prescriptions dispensed to date. Also, the net loss amounts reflect the sales and marketing expenses associated with the commercialization of Adzenys XR-ODT and Cotempla XR-ODT. (2) In February 2017, the Company closed an underwritten public offering of 5,750,000 shares of its common stock at a public offering price of $5.00 per share, which included 750,000 shares of its common stock resulting from the underwriters' exercise of their over-allotment option on February 17, 2017. On June 30, 2017, the Company closed an underwritten public offering of 4,800,000 shares of the its common stock at a public offering price of $6.25 per share for total proceeds of $30.0 million before estimated offering costs of $0.2 million. The Company also granted the underwriters a 30-day option to purchase up to an additional 720,000 shares of its common stock which was exercised in full on July 26, 2017. On October 26, 2017, Deerfield provided a conversion notice electing to convert the entire $6.6 million of Convertible Notes into shares of the Company's common stock at a conversion price of $7.08 per share. The conversion price was based on 95% of the average of the volume weighted average prices per share of the Company's common stock on the NASDAQ Global Market for the three trading day period immediately preceding such conversion. This resulted in issuing 929,967 shares of the Company's common stock to Deerfield on this date and the Convertible Notes were cancelled. 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.

Subsequent event

Subsequent event	12 Months Ended
	Dec. 31, 2017
Subsequent event
Subsequent event	Note 19. Subsequent event On January 1, 2018, in accordance with the Evergreen Provisions of the 2015 Plan, the Company added 1,449,847 shares to the option pool, increasing the total number of shares reserved and available for issuance under the 2015 Plan to 2,044,512 shares.

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2017
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance Additions Due to (paid to) third at charged to party and deferred Deductions Balance beginning costs and until sales and at end of of period expenses recognized Payments period For the year ended December 31, 2017 Allowance for chargebacks $ $ $ — $ (10,109) $ Allowance for cash discounts Sales offers — — — Reserve for wholesaler fees Reserve for returns — Rebates — For the year ended December 31, 2016 Allowance for chargebacks — Allowance for cash discounts Sales offers — — — Reserve for wholesaler fees Reserve for returns — Rebates — For the year ended December 31, 2015 Allowance for chargebacks — Allowance for cash discounts — Sales offers — — — — — Reserve for wholesaler fees — Reserve for returns — Rebates — (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, 2017
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 ("GAAP"), and with the rules and regulations of the Securities and Exchange Commission ("SEC").
Principles of consolidation	Principles of consolidation: The consolidated financial statements include the accounts of the Company and its four wholly-owned subsidiaries. All significant intercompany transactions have been eliminated.
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. Fourteen and thirteen customers accounted for all the revenue and deferred revenue in the year ended December 31, 2017 and 2016, respectively, and accounts receivable at December 31, 2017 and 2016 were due from fourteen and eleven customers, respectively. Three customers accounted for 93% of the net revenue for the year ended December 31, 2017 and two customers accounted for 82% of the net revenue for the year ended December 31, 2016, respectively, and three customers accounted for 94% and 98% of the accounts receivable at December 31, 2017 and 2016, respectively. Four customers accounted for substantially all revenue in the year ended December 31 2015.
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.
Reclassifications	Reclassifications: Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current period's presentation.
Liquidity	Liquidity: During 2017, 2016 and 2015, the Company produced operating losses and used cash to fund operations. Management intends to achieve profitability through revenue growth from pharmaceutical products developed with the Company's extended-release technologies. The Company does not anticipate it will be profitable until after the successful commercialization of its approved products, Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER. Accordingly, management has performed the review required for going concern accounting and believes the Company presently has sufficient liquidity to continue to operate for the next twelve months after the filing of this Report on Form 10-K.
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 as accumulated other comprehensive loss. Any tax effects are currently and have historically been insignificant. 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, 2017 or December 31, 2016, as management believes that all receivables are fully collectible.
Inventories	Inventories: Inventories are stated at the lower of cost (first in, first out) or market in 2016 and, effective January 1, 2017, inventory is now required to be measured at the lower of cost (first in, first out) or net realizable value. The change to stating inventories at the lower of cost or net realizable value in 2017 was adopted prospectively and did not have a significant effect on the Company's ongoing financial reporting as valuing inventory at the lower of cost or net realizable value approximated the prior policy of valuing inventory at the lower of cost or market. Inventories 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, for the production of Cotempla XR-ODT incurred after June 30, 2017, following the FDA approval date of June 19, 2017, and for the production of Adzenys ER incurred after September 30, 2017, following the FDA approval date of September 15, 2017, are being capitalized into inventory.
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, the costs to acquire the rights to Tussionex ANDA and patents, are recorded at cost and amortized over the estimated lives of the assets, which primarily range from 10 to 20 years. 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.
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, 2017, 2016 or 2015.
Derivative liabilities	Derivative liabilities: The Company evaluates its debt and equity issuances to determine if those contracts or embedded components of those contracts qualify as derivatives requiring separate recognition in the Company's financial statements. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as a liability and the change in fair value is recorded in other income (expense) in the consolidated results of operations. In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument is expected within twelve months of the balance sheet date. When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption and are classified in interest expense in the consolidated results of operations.
Revenue recognition	Revenue recognition: Revenue is generated from product sales, recorded on a net sales basis. 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 commercial products to a limited number of pharmaceutical wholesalers, all subject to rights of return. 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 Cotempla XR-ODT, and no sales history for Adzenys ER, and has been unable to 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, Cotempla XR-ODT and Adzenys ER, respectively, until the right of return no longer exists, which occurs at the earlier of the time Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER units are dispensed through patient prescriptions or expiration of the right of return. The Company calculates and expects to calculate patient prescriptions dispensed of Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER, respectively, using an analysis of third-party information. Revenues for Adzenys XR-ODT, Cotempla XR-ODT and generic Tussionex for the years ended December 31, 2017, 2016 and 2015, respectively, are as follows: Year Ended December 31, 2017 2016 2015 (in thousands) Adzenys XR-ODT $ $ $ — Cotempla XR-ODT — — Generic Tussionex ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net branded product sales	Net branded product sales Net product sales for branded Adzenys XR-ODT and Cotempla XR-ODT 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 rebates to be incurred on the selling price of the respective product sales. The Company recognizes branded total gross product sales less gross to net sales adjustments as revenue based on information from third-party providers.
Savings offers	Savings offers The Company offers savings programs for Adzenys XR-ODT and Cotempla 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 of redeemed savings offers 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.
Prompt payment discounts	Prompt payment discounts Prompt payment discounts are based on standard programs with wholesalers and are recorded as a discount allowance against accounts receivable and as a deferred discount reduction of deferred revenue. The deferred discounts are subsequently recorded within net product sales when the deferred revenue is recognized into revenue based on units dispensed through patient prescriptions. Prompt payment discounts are based on standard programs with wholesalers and are recorded as a discount allowance against accounts receivable and as a gross to net sales adjustments at the time revenue is recognized.
Wholesale distribution fees	Wholesale distribution fees Wholesale distribution fees are based on definitive contractual agreements for the management of the Company's products by wholesalers and are recorded as deferred wholesale distribution fees in other current assets. The deferred wholesale distribution fees are subsequently recorded as a reduction of net product sales when the deferred revenue is recognized into revenue based on units dispensed through patient prescriptions. Wholesale distribution fees are based on definitive contractual agreements for the management of the Company's product by wholesalers and are recorded as accrued expenses and as a gross to net sales adjustments at the time revenue is recognized.
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 managed care organizations and federal and/or state governments. Calculations related to these rebate accruals are estimated based on information from third-party providers. Estimated rebates payable under such programs are recorded as a reduction of revenue at the time revenues are recorded. Historical trends of estimated rebates will be continually monitored and may result in future adjustments to such estimates. The Company's generic Tussionex product is subject to state government-managed Medicaid programs whereby discounts and rebates are provided to participating state governments. Estimated government rebates are recorded as accrued expenses and as a gross to net sales adjustments at the time revenue is recognized. During 2017, generic Tussionex government rebates were estimated based upon rebate payment data available from sales of the Company's generic Tussionex product over the past three years. Prior to 2017, Generic Tussionex government rebates were estimated based on information from third-party providers. Historical trends of such rebates will be continually monitored and may result in future adjustments to such estimates.
Net generic product sales	Net generic product sales Net product sales for generic Tussionex product represent total gross product sales less gross to net sales adjustments. Gross to net sales adjustments include prompt payment discounts, estimated allowances for product returns, wholesaler fees, estimated government rebates and estimated chargebacks to be incurred on the selling price of generic Tussionex related to the respective product sales. The Company recognizes generic Tussionex total gross product sales less gross to net sales adjustments as revenue based on shipments from 3PL's to the Company's wholesaler customers.
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. Estimated returns are recorded as accrued expenses and as a gross to net sales adjustments at the time revenue is recognized. During 2017, generic Tussionex product returns were estimated based upon return data available from sales of the Company's generic Tussionex product over the past three years. Prior to 2017, generic Tussionex product returns were estimated based upon data available from sales of the Company's generic Tussionex product provided by its former commercialization partner.
Wholesaler Chargebacks	Wholesaler Chargebacks The Company's generic Tussionex 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. Estimated chargebacks are recorded as a discount allowance against accounts receivable and as a gross to net sales adjustments at the time revenue is recognized based on information provided by third parties. Due to estimates and assumptions inherent in determining the amount of generic Tussionex returns, rebates and chargebacks, the actual amount of returns, 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 are recorded in the same period that the related revenue is recognized.
Research and development costs	Research and development costs: Research and development costs are charged to operations when incurred and 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. 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.
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 $0.4 million and $7.4 million during the years ended December 31, 2017 and 2016, respectively. There was no advertising costs incurred during the year ended December 31, 2015.
Share-based compensation	Share-based compensation: Share-based compensation awards, including grants of employee stock options, restricted stock, restricted stock units ("RSUs") and modifications to existing stock options, are recognized in the 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 had, 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. Under new guidance for accounting for share-based payments, the Company has elected to continue estimating forfeitures at the time of grant and, if necessary, revise the estimate 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. The adoption of this standard in 2017 did not have a material impact on the Company's business, financial position, results of operations or liquidity. 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 ("SAB") Topic 14 due to the increased number and amount of options and option compensation. The Company has reclassified all prior quarters' amounts out of general and administrative expense to the appropriate income statement line in accordance with this approach.
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.
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, 2017 and 2016, 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, the Company considered that three years of cumulative operating losses was significant negative evidence outweighing projections for future taxable income. Therefore, at December 31, 2017 and 2016, the Company 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. 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.
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).
Recent accounting pronouncements	Recent accounting pronouncements : In May 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the modification. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. This standard became effective for the Company on January 1, 2018. The adoption of this standard is not expected to have a material impact on the Company's consolidated results of operations or financial position. In August 2016, the FASB issued 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 does not 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, 2018, 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 standard will have on its consolidated financial statements and related disclosures and has not determined the expected impact at this time. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (the "New Revenue Standard"). The New Revenue Standard replaces transaction-and industry-specific revenue recognition guidance under current U.S. GAAP with a principles-based approach for determining revenue recognition. The New Revenue Standard requires an entity to recognize the amount of revenue based on the value of transferred goods or services to customers. There is also additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customer. The New Revenue Standard became effective for the Company on January 1, 2018. The New Revenue Standard permits the use of either a fully retrospective or cumulative effect transition method. For purposes of providing comparable periods upon adoption, the Company will apply the fully retrospective transition method. The impact of the New Revenue Standard relates to the Company's accounting for branded net product sales. There are no changes to the net product sales of generic Tussionex revenue since we have estimated product returns since inception of recognizing revenue in August 2014. As a result, the Company will revise its results for branded net product sales revenue which commenced in May 2016 with the launch of Adzenys XR-ODT for the years ended December 31, 2016 and 2017 and applicable interim periods within those years, as if the New Revenue Standard had been effective for those periods. No revisions are required for the year ended December 31, 2015 with the adoption of the New Revenue Standard. In preparation for adoption of the New Revenue Standard, we have implemented internal controls and key system functionality to enable the preparation of financial information and have reached conclusions on key accounting assessments related to the New Revenue Standard, including management's assessment that the impact of accounting for costs incurred to obtain a contract is immaterial. Under current GAAP, revenue recognition of branded net product sales is deferred until the transaction price is fixed or determinable. The Company has a limited sales history for branded products Adzenys XR-ODT and Cotempla XR-ODT and no sales history for Adzenys ER. Under ASC 605 it was determined that management cannot reliably estimate historical returns of the product at the time of delivery to wholesalers, when title to the asset transfers and the customer is invoiced. Accordingly, the Company defers recognition of revenue on branded product shipments of Adzenys XR-ODT and Cotempla XR-ODT, respectively, until the right of return no longer exists, which occurs at the earlier of the time Adzenys XR-ODT and Cotempla XR-ODT units are dispensed through patient prescriptions or expiration of the right of return. The Company calculates patient prescriptions dispensed of Adzenys XR-ODT and Cotempla XR-ODT using an analysis of third-party information. Under the New Revenue Standard, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those good or services. Therefore, the Company will be required to make estimates of the net sales price, including estimates of variable consideration (e.g., savings offers, prompt payment discounts, product returns, wholesaler fees and estimated rebates) to be incurred on the selling price of the respective branded product sales, and recognize the estimated amount as revenue, when it transfers control of the product to its customers (e.g., upon shipment or delivery). Variable consideration must be determined using either an expected value or most likely amount method. The estimate of variable consideration is also subject to a constraint such that some or all of the estimated amount of variable consideration will only be included in the transaction price to the extent that it is probable that a significant reversal of revenue (in the context of the contract) will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimating variable consideration and the related constraint will require the use of significant management judgment and other market data. To implement the New Revenue Standard, the Company analyzed recent branded product return history and other market data obtained from its 3PLs to determine a reliable return rate. Additionally, management analyzed historical savings offers, prompt payment discounts, wholesaler fees and rebates payments based on patient prescriptions dispensed of Adzenys XR-ODT, Cotempla XR-ODT and information obtained from third-party providers to determine these respective variable considerations. Management has concluded that estimates of the above variable considerations are reasonably constrained, and estimates can be used for recognizing branded total gross product sales less gross to net sales adjustments as revenue beginning January 1, 2018. Adoption of the New Revenue Standard will result in the recognition of additional net branded product sales revenue of $2.1 million and $0.9 million for years ended December 31, 2017 and 2016, respectively partially offset by associated increased cost of goods sold of $1.6 million and $0.3 million, respectively. As a result, the net loss reported will be reduced by $0.5 million and $0.6 million reflecting the gross profit from the accelerated revenue and associated cost of goods sold for years ended December 31, 2017 and 2016, respectively. The net loss per share of common stock, basic and diluted reported will be improved by $0.02 and $0.03 per share for December 31, 2017 and 2016, respectively. The adoption of the New Revenue Standard will reduce the net operating loss carry forward for 2017 and 2016, respectively; however, there is no impact to the provision for income taxes because the Company's deferred tax asset benefits are fully reserved for December 31, 2017 and 2016, respectively. In addition, adoption of the New Revenue Standard will result in a decrease in reported total current assets by $3.2 million and $0.6 million as of December 31, 2017 and 2016, respectively, due to the elimination of deferred cost of goods sold and wholesaler fees. Reported total current liabilities will decrease by $4.3 million and $1.2 million as of December 31, 2017 and 2016, respectively, due to the elimination of deferred revenue partially offset by increases in accrued expenses for contract obligations related to savings offers, product returns and rebates. See Expected Impacts to Reported Results below for the impact of adoption of the New Revenue Standard on the Company’s consolidated financial statements. Expected impacts to reported results Adoption of the new revenue standard is expected to impact the Company's reported results as follows: Year Ended December, 31 2017 2016 Condensed consolidated statements of operations: As New As As New As (In thousands, except per share data) Revenue: net product sales $ $ $ $ $ $ Cost of goods sold Gross profit (loss) ) ) Net loss attributable to common stock ) ) ) ) Net loss per share of common stock, basic and diluted ) ) ) ) December 31, 2017 2016 Condensed consolidated statements of balance sheet: As New As As New As (In thousands) Inventories $ $ ) $ $ $ ) $ Other current assets ) ) Total current assets ) ) Accrued expenses Deferred revenue ) — ) — Total current liabilities ) ) Accumulated deficit ) ) ) ) Total liabilities and stockholder's equity ) ) Adoption of the New Revenue Standard had no impact to cash from or used in operating, financing, or investing on the Company's consolidated statements of cash flows.

Summary of significant accoun29

Summary of significant accounting policies (Tables)	12 Months Ended
	Dec. 31, 2017
Summary of significant accounting policies
Schedule of revenues	Year Ended December 31, 2017 2016 2015 (in thousands) Adzenys XR-ODT $ $ $ — Cotempla XR-ODT — — Generic Tussionex ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of expected impacts to reported results due to new revenue standard	Year Ended December, 31 2017 2016 Condensed consolidated statements of operations: As New As As New As (In thousands, except per share data) Revenue: net product sales $ $ $ $ $ $ Cost of goods sold Gross profit (loss) ) ) Net loss attributable to common stock ) ) ) ) Net loss per share of common stock, basic and diluted ) ) ) ) December 31, 2017 2016 Condensed consolidated statements of balance sheet: As New As As New As (In thousands) Inventories $ $ ) $ $ $ ) $ Other current assets ) ) Total current assets ) ) Accrued expenses Deferred revenue ) — ) — Total current liabilities ) ) Accumulated deficit ) ) ) ) Total liabilities and stockholder's equity ) )

Net loss per share (Tables)

Net loss per share (Tables)	12 Months Ended
	Dec. 31, 2017
Net loss per share
Schedule of potentially dilutive securities excluded in the computation of diluted net loss per share	December 31, 2017 2016 2015 Series C Redeemable Convertible Preferred Stock Warrants (as converted) Common Stock Warrants — — Stock options outstanding RSU's granted, not issued or outstanding — —

Fair value of financial instr31

Fair value of financial instruments (Tables)	12 Months Ended
	Dec. 31, 2017
Fair value of financial instruments
Schedule of hierarchy for financial instruments measured at fair value on a recurring basis	Fair Value as of December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ $ — $ — $ Short-term investments — — Earnout liability — — Derivative liability (see Note 11) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of cash and cash equivalents and short-term investments	December 31, 2017 Amortized Unrealized Market (in thousands) Bank deposits and money market funds $ $ — $ Financial and corporate debt securities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2016 Amortized Unrealized Market (in thousands) Bank deposits and money market funds $ $ — $ Financial and corporate debt securities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of changes in Level 3 liabilities measured at fair value	Level 3 (in thousands) Balance at December 31, 2015 $ ​ ​ ​ ​ ​ Change in fair value ​ ​ ​ ​ ​ Balance at December 31, 2016 ​ ​ ​ ​ ​ Addition of Deerfield derivative liability Change in fair value ) ​ ​ ​ ​ ​ Balance at December 31, 2017 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Earnout liability
Fair value of financial instruments
Methodologies and significant inputs used in determination of fair value	Initial Valuation December 31, 2015 December 31, 2016 December 31, 2017 Date of Valuation 8/28/2014 12/31/2015 12/31/2016 12/31/2017 Valuation Method Monte Carlo Monte Carlo Monte Carlo Monte Carlo Volatility (annual) 50% 50% 50% 42% Risk-free rate (annual) .03% - 3.56% .56% - 3.31% .74% - 3.42% 1.62% - 2.88% Time period from valuation until end of earnout .1708 - 9.8417 .5 - 9.5 .5 - 9.5 .5 - 9.5 Earnout Target 1 (thousands) $13,700 $13,700 $13,700 $13,700 Earnout Target 2 (thousands) $18,200 $18,200 $18,200 $18,200 Discount rate 8.03% - 10.51% 8.11% - 10.86% 12.02% - 14.70% 14.72% - 15.98% ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of liability at valuation date (thousands) $589 $214 $232 $170 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Derivative liability
Fair value of financial instruments
Methodologies and significant inputs used in determination of fair value	Derivative Liability Initial Valuation Date of Valuation 12/31/2017 6/1/2017 Valuation Method Monte Carlo Monte Carlo Volatility (annual) N/A 76.4% Time period from valuation until maturity of debt (yrs.) 4.360 4.943 Cumulative probability of a change in control prepayment implied by model 27% 28% Cumulative probability of other accelerated prepayments implied by model 17% 17% Discount rate 16.20% 15.87% ​ ​ ​ ​ ​ Fair value of liability at valuation date (thousands) $1,660 $2,107 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2017
Inventories
Schedule of inventories	December 31, 2017 2016 (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, 2017
Property and equipment
Schedule of property and equipment, net	December 31, 2017 2016 (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 $157 and $762 at December 31, 2017 and 2016, respectively, applicable to capital leases) ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Intangible assets (Tables)

Intangible assets (Tables)	12 Months Ended
	Dec. 31, 2017
Intangible assets
Schedule of intangible assets, net	December 31, 2017 2016 (in thousands) Proprietary modified-release drug delivery technology $ $ Tussionex ANDA CPI profit sharing Patents Other ​ ​ ​ ​ ​ ​ ​ ​ Accumulated amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of aggregate amortization of intangible assets	Year ending December 31, (in thousands) 2018 $ 2019 2020 2021 2022 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income taxes
Schedule of significant components of deferred income tax assets and liabilities	December 31, 2017 2016 (in thousands) Deferred Tax Assets: Net operating loss $ $ Deferred revenue — Share-based compensation R&D tax credit Other reserves Capital lease liability State deferreds Inventory — Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred Tax Liabilities: Intangible assets ) ) Property and equipment ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ) ​ ​ ​ ​ ​ ​ ​ ​ Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset (liability) $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of gross unrecognized tax benefits	December 31, 2017 2016 (in thousands) Beginning Balance $ $ Increase based on tax positions taken during a current period ​ ​ ​ ​ ​ ​ ​ ​ Ending Balance $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of reconciliation of Federal statutory tax rate	Year Ended 2017 2016 U.S. Statutory Tax Rate % % Change in Valuation Allowance % )% Deferred Tax Adjustments )% % Federal Rate Change )% — State tax expense, net % % Provision to Return and Other Adjustments )% )% ​ ​ ​ ​ ​ ​ ​ ​ Tax Expense / (Benefit) % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accrued expenses (Tables)

Accrued expenses (Tables)	12 Months Ended
	Dec. 31, 2017
Accrued expenses
Schedule of accrued expenses	December 31, 2017 2016 Reserve for rebates $ $ Accrued payroll and benefits Reserve for wholesaler fees Other accrued expenses ​ ​ ​ ​ ​ ​ ​ ​ Total accrued expenses $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Long-term debt (Tables)

Long-term debt (Tables)	12 Months Ended
	Dec. 31, 2017
Long-term debt
Schedule of long-term debt	December 31, 2017 2016 (in thousands) Deerfield senior secured credit facility, net of discount of $2,843 and $1,401, respectively $ $ Capital leases, maturing through May 2020 ​ ​ ​ ​ ​ ​ ​ ​ Less current portion ) ) ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of future minimum capital lease payments	Year ending: December 31, (in thousands) 2018 $ 2019 2020 ​ ​ ​ ​ ​ 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) 2018 $ 2019 2020 2021 2022 Thereafter — ​ ​ ​ ​ ​ Future principal payments $ ​ ​ ​ ​ ​ Less unamortized debt discount ) Less current portion of long-term debt ) ​ ​ ​ ​ ​ Total long-term debt $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Share-based Compensation (Table

Share-based Compensation (Tables)	12 Months Ended
	Dec. 31, 2017
Share-based Compensation
Schedule of share-based compensation expense	Year Ended December 31, 2017 2016 2015 (in thousands) Cost of goods sold $ $ $ Research and development Selling and marketing General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of weighted-average key assumptions used in determining fair value of options granted	Year Ended December 31, 2017 2016 2015 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 $ $ $
Summary of outstanding and exercisable options	Number of Weighted-Average Intrinsic (in thousands) 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 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted Exercised ) Expired, forfeited or cancelled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of outstanding RSUs	Number of Weighted-Average Outstanding at December 31, 2016 — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted $ Exercised — — Expired, forfeited or cancelled — — ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2017 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Commitments and contingencies (

Commitments and contingencies (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and contingencies
Schedule of future minimum lease payments	Year ending December 31, (in thousands) 2018 $ 2019 2020 2021 2022 Thereafter ​ ​ ​ ​ ​ Future minimum lease payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Selected Quarterly Financial 40

Selected Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2017
Selected Quarterly Financial Data (Unaudited)
Schedule of selected quarterly financial data	Selected quarterly financial data for years ended December 31, 2017 and 2016, are as follows (in thousands, except share and per share amounts): Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Net sales(1) $ $ $ $ Gross profit(1) Net loss attributable to common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding used to compute net loss per share, basic and diluted(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(1) $ $ $ $ Gross (loss)(1) ) ) ) ) Net loss attributable to common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding used to compute net loss per share, basic and diluted(2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss per share of common stock, basic and fully diluted(3): $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The Company began selling Adzenys XR-ODT on May 16, 2016 and initiated an early experience program for Cotempla XR-ODT with limited product availability on September 5, 2017 before launching this product nationwide on October 2, 2017, and has determined that at this time it cannot reliably estimate expected returns of the products 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 and Cotempla XR-ODT until the right of return no longer exists, which occurs at the earlier of the time Adzenys XR-ODT and Cotempla 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 and Cotempla XR-ODT reflect only patient prescriptions dispensed to date. Also, the net loss amounts reflect the sales and marketing expenses associated with the commercialization of Adzenys XR-ODT and Cotempla XR-ODT. (2) In February 2017, the Company closed an underwritten public offering of 5,750,000 shares of its common stock at a public offering price of $5.00 per share, which included 750,000 shares of its common stock resulting from the underwriters' exercise of their over-allotment option on February 17, 2017. On June 30, 2017, the Company closed an underwritten public offering of 4,800,000 shares of the its common stock at a public offering price of $6.25 per share for total proceeds of $30.0 million before estimated offering costs of $0.2 million. The Company also granted the underwriters a 30-day option to purchase up to an additional 720,000 shares of its common stock which was exercised in full on July 26, 2017. On October 26, 2017, Deerfield provided a conversion notice electing to convert the entire $6.6 million of Convertible Notes into shares of the Company's common stock at a conversion price of $7.08 per share. The conversion price was based on 95% of the average of the volume weighted average prices per share of the Company's common stock on the NASDAQ Global Market for the three trading day period immediately preceding such conversion. This resulted in issuing 929,967 shares of the Company's common stock to Deerfield on this date and the Convertible Notes were cancelled. 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.

Organization and nature of op41

Organization and nature of operations (Details)	12 Months Ended
	Dec. 31, 2017item
Organization and nature of operations
Number of approved product	3

Summary of significant accoun42

Summary of significant accounting policies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)segmentsubsidiarycustomer	Dec. 31, 2016USD ($)subsidiarycustomer	Dec. 31, 2015USD ($)subsidiarycustomer
Significant accounting policies
Number of operating segments | segment	1
Concentration of credit risk
Allowance for doubtful accounts	$ 0	$ 0
Impairment of long-lived assets
Impairment charges	0	0	$ 0
Revenue recognition
Revenues	$ 25,018	9,154	3,792
Product returns
Return time period for expired product prior to expiry date	6 months
Return time period for expired product after expiry date	12 years
Return period of Tusioness product (in years)	3 years
Advertising costs
Advertising costs	$ 400	7,400	$ 0
Income taxes
Deferred tax assets, net of valuation allowance	$ 0	$ 0
Wholly-owned subsidiaries
Significant accounting policies
Number of wholly-owned subsidiaries | subsidiary	4	4	4
Revenues And Deferred Revenues | Customer Concentration Risk
Concentration of credit risk
Concentration Risk, Number | customer	14	13
Accounts Receivable | Customer Concentration Risk
Concentration of credit risk
Concentration Risk, Number | customer	14	11
Accounts Receivable | Customer Concentration Risk | Major Customers
Concentration of credit risk
Concentration Risk, Number | customer	3	3
Concentration Risk, Percentage	94.00%	98.00%
Total Net Revenues | Customer Concentration Risk | Major Customers
Concentration of credit risk
Concentration Risk, Number | customer	3	2	4
Concentration Risk, Percentage	93.00%	82.00%
Adzenys XR-ODT
Revenue recognition
Revenues	$ 18,959	$ 2,924
Cotempla XR-ODT
Intangible assets
Useful life	15 years
Revenue recognition
Revenues	$ 894
Generic Tussionex product
Intangible assets
Useful life	10 years
Revenue recognition
Revenues	$ 5,165	$ 6,230	$ 3,792
Minimum
Property and equipment
Property and equipment - Useful life	3 years
Intangible assets
Useful life	10 years
Maximum
Property and equipment
Property and equipment - Useful life	10 years
Intangible assets
Useful life	20 years

Summary of significant accoun43

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 accoun44

Summary of significant accounting policies - Recent accounting pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Recent accounting pronouncements
Net product sales									$ 25,018	$ 9,154	$ 3,792
Cost of goods sold									12,391	11,437	5,929
Gross profit (loss)	$ 5,009	$ 4,273	$ 2,333	$ 1,012	$ (517)	$ (735)	$ (858)	$ (173)	12,627	(2,283)	(2,137)
Net loss attributable to common stock	$ (14,225)	$ (16,258)	$ (18,674)	$ (17,090)	$ (18,374)	$ (25,806)	$ (26,539)	$ (12,614)	$ (66,247)	$ (83,333)	$ (33,171)
Net loss per share of common stock, basic and diluted	$ (0.49)	$ (0.58)	$ (0.83)	$ (0.87)	$ (1.14)	$ (1.61)	$ (1.65)	$ (0.79)	$ (2.68)	$ (5.19)	$ (4.38)
Inventories	$ 13,459				$ 5,767				$ 13,459	$ 5,767
Other current assets	5,093				2,865				5,093	2,865
Total current assets	82,640				55,269				82,640	55,269
Accrued expenses	10,570				5,264				10,570	5,264
Deferred revenue	14,676				3,662				14,676	3,662
Total current liabilities	37,602				21,645				37,602	21,645
Accumulated deficit	(266,365)				(200,118)				(266,365)	(200,118)
Total liabilities and stockholders' equity	107,353				80,142				107,353	80,142
ASU 2014-09 | New Revenue Standard Adjustment
Recent accounting pronouncements
Net product sales									2,114	879
Cost of goods sold									1,639	297
Gross profit (loss)									475	582
Net loss attributable to common stock									$ 475	$ 582
Net loss per share of common stock, basic and diluted									$ 0.02	$ 0.03
Inventories	(1,727)				(225)				$ (1,727)	$ (225)
Other current assets	(1,518)				(346)				(1,518)	(346)
Total current assets	(3,245)				(571)				(3,245)	(571)
Accrued expenses	10,374				2,509				10,374	2,509
Deferred revenue	(14,676)				(3,662)				(14,676)	(3,662)
Total current liabilities	(4,302)				(1,153)				(4,302)	(1,153)
Accumulated deficit	1,057				582				1,057	582
Total liabilities and stockholders' equity	(3,245)				(571)				(3,245)	(571)
ASU 2014-09 | As Adjusted
Recent accounting pronouncements
Net product sales									27,132	10,033
Cost of goods sold									14,030	11,734
Gross profit (loss)									13,102	(1,701)
Net loss attributable to common stock									$ (65,772)	$ (82,751)
Net loss per share of common stock, basic and diluted									$ (2.66)	$ (5.16)
Inventories	11,732				5,542				$ 11,732	$ 5,542
Other current assets	3,575				2,519				3,575	2,519
Total current assets	79,395				54,698				79,395	54,698
Accrued expenses	20,944				7,773				20,944	7,773
Total current liabilities	33,300				20,492				33,300	20,492
Accumulated deficit	(265,308)				(199,536)				(265,308)	(199,536)
Total liabilities and stockholders' equity	$ 104,108				$ 79,571				$ 104,108	$ 79,571

Net loss per share (Details)

Net loss per share (Details) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Warrants | Series C Redeemable Convertible Preferred Stock Warrants (as converted)
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share	70,833	70,833	70,833
Warrants | Common Stock Warrants
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share			50,158
Stock options outstanding
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share	2,454,973	2,107,344	1,352,283
RSU's
Net loss per share
Potentially dilutive shares excluded in the computation of diluted net loss per share	85,000

Fair value of financial instr46

Fair value of financial instruments - Hierarchy (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Hierarchy for financial instruments measured at fair value on a recurring basis
Short-term investments	$ 18,448	$ 15,430
Derivative liability (see Note 11)	1,660
Recurring basis | Fair Value
Hierarchy for financial instruments measured at fair value on a recurring basis
Cash and cash equivalents	31,969	24,352
Short-term investments	18,448	15,430
Earnout liability	170	232
Derivative liability (see Note 11)	1,660
Financial instruments measured at fair value on a recurring basis	52,247	40,014
Recurring basis | Fair Value | Level 1
Hierarchy for financial instruments measured at fair value on a recurring basis
Cash and cash equivalents	31,969	17,917
Financial instruments measured at fair value on a recurring basis	31,969	17,917
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	18,448	15,430
Financial instruments measured at fair value on a recurring basis	18,448	21,865
Recurring basis | Fair Value | Level 3
Hierarchy for financial instruments measured at fair value on a recurring basis
Earnout liability	170	232
Derivative liability (see Note 11)	1,660
Financial instruments measured at fair value on a recurring basis	$ 1,830	$ 232

Fair value of financial instr47

Fair value of financial instruments - Cash and cash equivalents and short-term investments (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Cash and cash equivalents and short-term investments
Amortized Cost	$ 50,423	$ 39,783
Unrealized Loss	(6)	(1)
Market Value	50,417	39,782
Bank deposits and money market funds
Cash and cash equivalents and short-term investments
Amortized Cost	31,969	17,917
Market Value	31,969	17,917
Financial and corporate debt securities
Cash and cash equivalents and short-term investments
Amortized Cost	18,454	21,866
Unrealized Loss	(6)	(1)
Market Value	$ 18,448	$ 21,865

Fair value of financial instr48

Fair value of financial instruments - Earnout liability and Derivative liability (Details) - Recurring basis - Level 3 - Monte Carlo - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 01, 2017	Aug. 28, 2014	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnout liability
Methodologies and significant inputs used in the determination of the fair value
Volatility (annual) (as a percent)			50.00%	42.00%	50.00%	50.00%
Fair value of liability at valuation date (thousands)	$ 170		$ 589	$ 170	$ 232	$ 214
Earnout Target 1 (thousands)			13,700	13,700	13,700	13,700
Earnout Target 2 (thousands)			$ 18,200	$ 18,200	$ 18,200	$ 18,200
Earnout liability | Maximum
Methodologies and significant inputs used in the determination of the fair value
Time period from valuation until maturity of debt (yrs.)			9 years 10 months 3 days	9 years 6 months	9 years 6 months	9 years 6 months
Discount rate			10.51%	15.98%	14.70%	10.86%
Risk-free rate (as a percent)			3.56%	2.88%	3.42%	3.31%
Earnout liability | Minimum
Methodologies and significant inputs used in the determination of the fair value
Time period from valuation until maturity of debt (yrs.)			2 months 2 days	6 months	6 months	6 months
Discount rate			8.03%	14.72%	12.02%	8.11%
Risk-free rate (as a percent)			0.03%	1.62%	0.74%	0.56%
Derivative liability
Methodologies and significant inputs used in the determination of the fair value
Volatility (annual) (as a percent)		76.40%
Time period from valuation until maturity of debt (yrs.)	4 years 4 months 10 days	4 years 11 months 10 days
Cumulative probability of a change in control prepayment implied by model	27.00%	28.00%
Cumulative probability of other accelerated prepayments implied by model	17.00%	17.00%
Discount rate	16.20%	15.87%
Fair value of liability at valuation date (thousands)	$ 1,660	$ 2,107		$ 1,660

Fair value of financial instr49

Fair value of financial instruments - Changes in Level 3 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Changes in Level 3 liabilities measured at fair value
Balance at beginning of period	$ 232	$ 214
Addition of Deerfield derivative liability	2,107
Change in fair value	(509)	18
Balance at end of period	$ 1,830	$ 232

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Inventories
Raw materials	$ 3,476	$ 1,672
Work in progress	6,156	2,546
Finished goods	2,470	2,060
Deferred cost of goods sold	1,726	225
Inventory at cost	13,828	6,503
Inventory reserve	(369)	(736)
Inventories net	$ 13,459	$ 5,767

Property and equipment (Details

Property and equipment (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property and equipment
Property and equipment gross	$ 13,780,000	$ 15,429,000	$ 13,780,000
Accumulated depreciation and amortization (including $157 and $762 at December 31, 2017 and 2016, respectively, applicable to capital leases)	(6,704,000)	(7,226,000)	(6,704,000)
Property and equipment, net	7,076,000	8,203,000	7,076,000
Depreciation and amortization expense		1,363,000	1,598,000	$ 1,724,000
Accumulated depreciation and amortization of capital lease	762,000	157,000	762,000
Net proceeds of depreciated equipment			415,000
Assets under capital lease
Property and equipment
Property and equipment gross	1,793,000	3,222,000	1,793,000
Leasehold improvements
Property and equipment
Property and equipment gross	3,757,000	4,195,000	3,757,000
Manufacturing, packaging and lab equipment
Property and equipment
Property and equipment gross	4,376,000	5,300,000	4,376,000
Office furniture and equipment
Property and equipment
Property and equipment gross	1,788,000	1,656,000	1,788,000
Assets under construction
Property and equipment
Property and equipment gross	2,066,000	$ 1,056,000	$ 2,066,000
Equipment
Property and equipment
Net proceeds of depreciated equipment	$ 415,000

Sale-leaseback transaction (Det

Sale-leaseback transaction (Details) - Related Party Sale-leaseback Transactions

Feb. 13, 2017USD ($)

Dec. 31, 2017USD ($)

Jun. 30, 2017USD ($)

Feb. 28, 2017USD ($)

Feb. 13, 2017

Dec. 31, 2017USD ($)

Dec. 31, 2016USD ($)

Dec. 31, 2015USD ($)

Dec. 31, 2014USD ($)

Dec. 31, 2013USD ($)

Mar. 31, 2014tranche

Apr. 30, 2017USD ($)

Jul. 31, 2016USD ($)

Dec. 31, 2012USD ($)

Other income, net

Sale-leaseback transaction

Net gain recognized in period on sale leaseback transaction

$ 44,000

$ 507,000

$ 831,000

Transaction One

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

Leases 1 and 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

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

Lease 4 November 2013

Sale-leaseback transaction

Original value of assets for which lease expired

$ 1,000,000

Cumulative gain recognized

161,000

Original value of lease buy-out option liability

$ 100,000

Lease 5 March 2014

Sale-leaseback transaction

Original value of assets for which lease expired

795,000

795,000

Cumulative gain recognized

116,000

116,000

Original value of lease buy-out option liability

$ 79,000

$ 79,000

Transaction Two

Sale-leaseback transaction

Maximum amount authorized under sale and leaseback transaction

$ 5,000,000

Proceeds from sale of assets

$ 481,000

$ 2,742,000

Lease term

36 months

Imputed interest rate on lease (as a percent)

14.30%

14.90%

Amortization period

36 months

Net gain on sale leaseback

$ 14,000

Net gain recognized in period on sale leaseback transaction

$ 0

Intangible assets (Details)

Intangible assets (Details) - USD ($)	Aug. 28, 2014	Jun. 15, 2009	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Intangible assets
Intangible assets, gross			$ 25,809,000	$ 25,448,000
Accumulated amortization			(9,461,000)	(7,801,000)
Intangible assets, net			16,348,000	17,647,000
Payment made to acquire asset			361,000	500,000
Aggregate amortization of intangible assets for each of the next five years and thereafter
2,018			1,604,000
2,019			1,604,000
2,020			1,604,000
2,021			1,604,000
2,022			1,604,000
Thereafter			6,237,000
Finite lived intangible assets, net			14,257,000
Proprietary modified-release drug delivery technology
Intangible assets
Intangible assets, 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, 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			(62,000)	18,000	(542,000)
CPI Profit Sharing
Intangible assets
Intangible assets, gross			2,043,000	2,043,000
Payment made to acquire asset	2,000,000
Legal fees	$ 43,000
Patents
Intangible assets
Intangible assets, gross			2,302,000	2,191,000
Other
Intangible assets
Intangible assets, gross			1,035,000	785,000
Tussionex ANDA and CPI profit sharing
Intangible assets
Useful life	10 years
Amortization of intangible assets			$ 687,000	$ 687,000	$ 687,000

Intangible assets - Patents (De

Intangible assets - Patents (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Intangible assets
Amortization of patents	$ 88,000	$ 69,000	$ 23,000
Generic Tussionex product
Intangible assets
Patents being amortized	$ 352,000
Useful life	10 years
Adzenys XR-ODT
Intangible assets
Patents being amortized	$ 599,000
Cotempla XR-ODT
Intangible assets
Patents being amortized	$ 83,000
Useful life	15 years
Adzenys ER
Intangible assets
Patents being amortized	$ 451,000
Useful life	15 years
Patents being amortized on January 27, 2016 | Adzenys XR-ODT
Intangible assets
Patents being amortized	$ 535,000
Useful life	16 years
Patents being amortized on December 2017 | Adzenys XR-ODT
Intangible assets
Patents being amortized	$ 64,000
Useful life	15 years

Income taxes - Deferred Taxes (

Income taxes - Deferred Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 21, 2017	Dec. 31, 2017	Dec. 31, 2016
Income taxes
Reduction of federal income tax rate	21.00%	35.00%	34.00%	34.00%
Reduction of deferred tax expense			$ 20,500
Deferred Tax Assets:
Net operating loss	$ 32,193		32,193	$ 65,532
Deferred revenue	3,145		3,145
Share-based compensation	1,340		1,340	1,562
R&D tax credit	1,696		1,696	1,792
Other reserves	1,069		1,069	1,064
Capital lease liability	562		562	151
State deferreds	464		464	16
Inventory	466		466
Other	980		980	1,595
Total deferred tax assets	41,915		41,915	71,712
Deferred Tax Liabilities:
Intangible assets	(1,846)		(1,846)	(3,371)
Property and equipment	(747)		(747)	(124)
Total deferred tax liabilities	(2,593)		(2,593)	(3,495)
Valuation allowance	$ (39,322)		$ (39,322)	$ (68,217)

Income taxes - Tax Carryforward

Income taxes - Tax Carryforwards and Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Unrecognized tax benefits
Accrued interest related to uncertain tax positions	$ 0	$ 0
Roll forward of gross unrecognized tax benefits
Beginning Balance	5,081,000	4,355,000
Increase based on tax positions taken during a current period	2,180,000	726,000
Ending Balance	7,261,000	5,081,000
Federal
Tax carryforwards and uncertainties
Net operating loss carry-forwards	247,493,000	200,170,000
Net operating loss carryforward that will expire unused	101,744,000
State
Tax carryforwards and uncertainties
Net operating loss carry-forwards	2,620,000	1,835,000
Research and development credits
Tax carryforwards and uncertainties
Tax credits carry-forwards	2,275,000	$ 2,179,000
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, 2017	Dec. 31, 2016
Income taxes
(Decrease) increase in valuation allowance	$ (28,895,000)	$ 29,886,000
Reduction of deferred tax assets	$ 20,547,000

Income taxes - Reconciliation o

Income taxes - Reconciliation of Tax Rate (Details)	Dec. 31, 2017	Dec. 21, 2017	Dec. 31, 2017	Dec. 31, 2016
Income taxes
U.S. Statutory Tax Rate	21.00%	35.00%	34.00%	34.00%
Change in Valuation Allowance			44.00%	(36.00%)
Deferred Tax Adjustments			(47.00%)	1.00%
Federal Rate Change			(31.00%)
State tax expense, net			2.00%	2.00%
Provision to Return and Other Adjustments			(2.00%)	(1.00%)
Tax Expense / (Benefit)			0.00%	0.00%

Accrued expenses (Details)

Accrued expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accrued expenses
Reserve for rebates	$ 2,687	$ 421
Accrued payroll and benefits	2,534	2,085
Reserve for wholesaler fees	2,387	509
Other accrued expenses	2,962	2,249
Total accrued expenses	$ 10,570	$ 5,264

Long-term debt - Summary (Detai

Long-term debt - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Long-term debt
Long-term debt and capital lease obligations, including current maturities	$ 59,834	$ 63,520
Less current portion	(896)	(4,921)
Long-term debt	58,938	58,599
Debt instrument, unamortized discount
Unamortized discount on debt	2,843
Debt issued to entities affiliated with Deerfield | Senior Secured Credit Facility
Long-term debt
Long-term debt and capital lease obligations, including current maturities	57,156	63,075
Debt instrument, unamortized discount
Unamortized discount on debt	2,843	1,401
Capital leases, maturing through June 2020
Long-term debt
Long-term debt and capital lease obligations, including current maturities	$ 2,678	$ 445

Long-term debt - Senior Secured

Long-term debt - Senior Secured Credit facility (Details)	Oct. 26, 2017USD ($)$ / sharesshares	Jun. 30, 2017$ / sharesshares	Jun. 01, 2017USD ($)item$ / shares	May 11, 2016USD ($)	Jun. 30, 2017$ / sharesshares	Feb. 28, 2017$ / sharesshares	Dec. 31, 2017USD ($)shares	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Long-term debt
Proceeds from debt								$ 58,419,000
Debt discount amortization							$ 1,316,000	406,000	$ 576,000
Derivative liability							1,660,000
Unamortized discount on debt							2,843,000
Recognition of beneficial conversion feature on convertible notes							$ 613,000
Payment of senior debt and fee								26,063,000
Senior Notes and Subordinated Debt
Long-term debt
Repayments of debt				$ 33,000,000
Senior debt (Hercules LSA)
Long-term debt
Interest paid				100,000
Payments of end of term fee				1,100,000
Debt discount amortization								104,000	$ 265,000
Payment of senior debt and fee				24,300,000
Prepayment penalty				243,000
Senior Secured Convertible Note
Long-term debt
Face amount of debt issued			$ 6,600,000
Interest rate (as a percent)			12.95%
Deferred interest payments			$ 6,600,000
Term of debt (in years)			1 year
Effective interest rate during debt term (as a percent)							25.35%
Time period before debt maturity when debt conversion option expires			5 days
Increase in prepayment fee (in basis points)			300
Conversion price, expressed as a percentage of stock price			95.00%
Number of trading days used to determine conversion stock price			3 days
Unamortized discount on debt			$ 600,000
Recognition of beneficial conversion feature on convertible notes			$ 600,000
Maximum percentage of stock for note holder			9.985%
Maximum percentage of stock for aggregate conversion			19.90%
Common Stock
Long-term debt
Issuance of common stock, net of issuance costs (in shares) | shares							12,019,639
Underwritten Public Offering | Common Stock
Long-term debt
Issuance of common stock, net of issuance costs (in shares) | shares		4,800,000			4,800,000	5,750,000
Public offering price (in dollars per share) | $ / shares		$ 6.25			$ 6.25	$ 5
Minimum | Senior Secured Convertible Note
Long-term debt
Prepayment fee of debt (in percentage)			2.00%
Conversion price | $ / shares			$ 7
Maximum | Senior Secured Convertible Note
Long-term debt
Prepayment fee of debt (in percentage)			12.75%
Senior Secured Credit Facility
Long-term debt
Minimum cash on deposit to maintain under debt arrangement				5,000,000
Senior Secured Credit Facility | Registration Agreement
Long-term debt
Maximum reimbursable legal fees			$ 25,000
Senior Secured Credit Facility | Debt issued to entities affiliated with Deerfield
Long-term debt
Face amount of debt issued				60,000,000
Proceeds from debt				60,000,000
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
Effective interest rate during debt term (as a percent)							15.03%
Debt discount amortization							$ 1,316,000	181,000
Unamortized discount on debt							$ 2,843,000	$ 1,401,000
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)				66.67%
Senior Secured Credit Facility | Deerfield Special Situations Fund, LP
Long-term debt
Debt borrowing structure (as a percent)				33.33%
Senior Secured Credit Facility | Senior Secured Convertible Note
Long-term debt
Derivative liability			$ 2,100,000
Minimum premiums as percent required to treat as derivative			10.00%
Payment of debt modification fee			$ 40,000
Maximum time period to register shares per agreement			30 days
Maximum time period for registration to become effective per agreement			75 days
Senior Secured Credit Facility | Minimum | Senior Secured Convertible Note
Long-term debt
Conversion price | $ / shares			$ 7
Senior Secured Credit Facility | Maximum | Senior Secured Convertible Note
Long-term debt
Number of shares which may be issued for conversion of convertible notes | item			940,924
Essex Capital Corporation, as Investor | 10% subordinated note payable
Long-term debt
Face amount of debt issued				$ 5,900,000
Repayments of debt				5,900,000						$ 5,900,000
Interest paid				$ 1,300,000
Interest rate (as a percent)				10.00%			10.00%
Conversion Of Convertible Notes | Senior Secured Convertible Note
Long-term debt
Amount of debt converted into stock	$ 6,600,000
Number of shares of stock into which debt was converted | shares	929,967
Conversion price | $ / shares	$ 7.08
Conversion price, expressed as a percentage of stock price	95.00%
Number of trading days used to determine conversion stock price	3 days
Conversion Of Convertible Notes | Senior Secured Credit Facility
Long-term debt
Amount of debt converted into stock	$ 6,600,000
Number of shares of stock into which debt was converted | shares	929,967
Conversion price | $ / shares	$ 7.08
Conversion price, expressed as a percentage of stock price	95.00%
Number of trading days used to determine conversion stock price	3 days

Long-term debt - Senior Debt (D

Long-term debt - Senior Debt (Details)	May 11, 2016USD ($)	Jul. 22, 2015$ / sharesshares	Sep. 25, 2014USD ($)$ / sharesshares	Mar. 28, 2014USD ($)item$ / sharesshares	May 31, 2016	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Mar. 13, 2015
Long-term debt
Draws from senior debt note										$ 10,000,000
Loss on debt extinguishment									$ (1,187,000)
Debt discount amortization								$ 1,316,000	406,000	576,000
Senior debt (Hercules LSA)
Long-term debt
Maximum borrowing capacity per agreement				$ 25,000,000
Number of draws available per debt agreement | item				4
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
Loss on debt extinguishment									1,187,000
Debt discount amortization									$ 104,000	$ 265,000
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%
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) - 10% subordinated note payable - Essex Capital Corporation, as Investor - USD ($)	May 11, 2016	Dec. 31, 2016	Dec. 31, 2014	Dec. 31, 2017
Long-term debt
Interest rate (as a percent)	10.00%			10.00%
Face amount of debt issued	$ 5,900,000
Repayments of debt	5,900,000		$ 5,900,000
Interest paid	$ 1,300,000
Interest accrued		$ 263,000

Long-term debt - Capital Lease

Long-term debt - Capital Lease Obligations to Related Party (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2014	Dec. 31, 2013
Essex sale-leaseback transactions | Transaction One
Long-term debt
Imputed interest rate on lease (as a percent)	14.90%	14.50%	14.50%
Capital leases, maturing through June 2020
Long-term debt
Interest expense	$ 263,000	$ 204,000	$ 467,000
Capital leases, maturing through June 2020 | Essex sale-leaseback transactions | Transaction One
Long-term debt
Existing assets under sale-leaseback transaction					$ 5,500,000
Newly acquired assets under sale-leaseback transaction				$ 795,000
Capital leases, maturing through June 2020 | Essex sale-leaseback transactions | Transaction Two
Long-term debt
Newly acquired assets under sale-leaseback transaction	$ 3,200,000

Long-term debt - Future Minimum

Long-term debt - Future Minimum Capital Lease Payments (Details) $ in Thousands	Dec. 31, 2017USD ($)
Future minimum capital lease payments
2,018	$ 1,235
2,019	1,235
2,020	776
Total minimum lease payments	3,246
Less amount representing interest	568
Future minimum lease payments	$ 2,678

Long-term debt - Future Princip

Long-term debt - Future Principal Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Future principal payments of long-term debt, including capital leases
2,018	$ 896
2,019	16,039
2,020	15,742
2,021	15,000
2,022	15,000
Future principal payments	62,677
Less unamortized debt discount related to long-term debt	(2,843)
Less current portion of long-term debt	(896)	$ (4,921)
Long-term debt	$ 58,938	$ 58,599

Common stock - Public Offerings

Common stock - Public Offerings (Details) $ / shares in Units, $ in Thousands	Jul. 26, 2017USD ($)	Jun. 30, 2017USD ($)$ / sharesshares	Feb. 17, 2017USD ($)shares	Jul. 28, 2015USD ($)$ / sharesshares	Jun. 30, 2017USD ($)$ / sharesshares	Feb. 28, 2017$ / sharesshares	Dec. 31, 2017USD ($)shares	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Public offerings and related transactions
Net proceeds from issuance of stock | $							$ 64,560	$ 13	$ 18,122
Reverse stock split ratio				0.4167
Common Stock
Public offerings and related transactions
Issuance of common stock, net of issuance costs (in shares) | shares							12,019,639
Common Stock | IPO
Public offerings and related transactions
Issuance of common stock, net of issuance costs (in shares) | shares				5,520,000
Public offering price (in dollars per share) | $ / shares				$ 15
Net proceeds from issuance of stock | $				$ 75,000
Common Stock | Underwritten Public Offering
Public offerings and related transactions
Issuance of common stock, net of issuance costs (in shares) | shares		4,800,000			4,800,000	5,750,000
Public offering price (in dollars per share) | $ / shares		$ 6.25			$ 6.25	$ 5
Term of option to purchase share		30 days			30 days
Gross proceeds from issuance of stock | $		$ 30,000			$ 30,000
Stock issuance costs | $		$ 200			$ 200
Net proceeds from issuance of stock | $	$ 34,300		$ 26,700
Shares offered to underwriters under option granted (in shares) | shares		720,000			720,000
Common Stock | Over-allotment option
Public offerings and related transactions
Issuance of common stock, net of issuance costs (in shares) | shares			750,000	720,000

Common stock - Shelf Registrati

Common stock - Shelf Registration Statement and offer under sales agreement (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 26, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Aug. 01, 2016
Shelf registration statement
Net proceeds from issuance of stock		$ 64,560	$ 13	$ 18,122
Value of Securities which remain available to be sold pursuant to the Shelf		$ 58,000
Maximum
Shelf registration statement
Authorized amount to raise capital as per shelf registration statement					$ 125,000
Sales Agreement | Maximum | Cowen and Company LLC
Shelf registration statement
Authorized amount for issuance of common stock as per shelf registration statement					$ 40,000
Common Stock
Shelf registration statement
Shares issued		12,019,639
Common Stock | Sales Agreement
Shelf registration statement
Value of common stock which remains available to be sold under the Sales Agreement		$ 36,200
Sales Agreement | Common Stock
Shelf registration statement
Shares issued		749,639
Sales Agreement offering price (in dollars per share)		$ 5.01
Gross proceeds from issuance of stock		$ 3,700
Net proceeds from issuance of stock		3,600
Stock issuance costs		$ 100
Conversion Of Convertible Notes | Senior Secured Convertible Notes
Shelf registration statement
Amount of debt converted into stock	$ 6,600
Conversion price	$ 7.08
Conversion price, expressed as a percentage of stock price	95.00%
Number of trading days used to determine conversion stock price	3 days
Number of shares of stock into which debt was converted	929,967

Share-based Compensation - Plan

Share-based Compensation - Plan Information (Details) - shares	Jan. 01, 2018	Oct. 16, 2017	Jan. 01, 2017	Oct. 17, 2016	Oct. 16, 2015	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2016	Jul. 31, 2015	Nov. 30, 2009
Stock options outstanding | Performance based
Stock options, restricted stock and performance stock options
Vesting period						3 years
Stock options | Minimum
Stock options, restricted stock and performance stock options
Vesting period						2 years
Stock options | Maximum
Stock options, restricted stock and performance stock options
Vesting period						4 years
Restricted stock
Stock options, restricted stock and performance stock options
Shares surrendered by holder to cover taxes associated with vesting		14,895		9,709	9,197
Neos Therapeutics, Inc. 2009 Equity Plan
Stock options, restricted stock and performance stock options
Shares reserved for issuance under the plan										1,375,037
Shares related to forfeited prior plan options transferred into shares available under current plan						1,804
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. 2009 Equity Plan | Restricted stock | Minimum
Stock options, restricted stock and performance stock options
Vesting period						1 month
Neos Therapeutics, Inc. 2009 Equity Plan | Restricted stock | Maximum
Stock options, restricted stock and performance stock options
Vesting period						48 months
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 to the number of shares reserved and available for issuance as a percentage of outstanding common stock (as a percent)								5.00%
Increase in number of shares reserved and available for issuance			803,049
Stock option exercise price, minimum expressed as percentage of fair market value on grant date						100.00%
Shares related to forfeited prior plan options transferred into shares available under current plan							9,304
Share of restricted stock transferred into shares available under current plan							33,801
Shares available for grant						594,665
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	2,044,512
Increase in number of shares reserved and available for issuance	1,449,847
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
Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan | Restricted stock
Stock options, restricted stock and performance stock options
Shares surrendered by holder to cover taxes associated with vesting						14,895

Share-based Compensation - Expe

Share-based Compensation - Expense Allocation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation
Total compensation cost	$ 4,051	$ 3,460	$ 1,181
Cost of goods sold
Share-based Compensation
Total compensation cost	390	311	112
Research and development
Share-based Compensation
Total compensation cost	394	304	73
Selling and marketing expenses
Share-based Compensation
Total compensation cost	913	723	211
General and administrative expenses
Share-based Compensation
Total compensation cost	$ 2,354	$ 2,122	$ 785

Share-based Compensation - Ex71

Share-based Compensation - Expense Other (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation
Total compensation cost	$ 4,051,000	$ 3,460,000	$ 1,181,000
Unrecognized compensation cost	6,500,000
Stock options
Share-based Compensation
Total compensation cost	$ 3,900,000	3,400,000	1,100,000
Compensation cost not yet recognized, period for recognition	2 years
RSU's
Share-based Compensation
Total compensation cost	$ 86,000
Compensation cost not yet recognized, period for recognition	3 years 4 months 24 days
Restricted stock
Share-based Compensation
Total compensation cost	$ 71,000	$ 91,000	$ 94,000
Unrecognized compensation cost	$ 0

Share-based Compensation - Assu

Share-based Compensation - Assumptions Used in Determining Fair Value of Options (Details) - Stock options - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
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 22 days	6 years 1 month 24 days	5 years
Weighted-average option fair value at grant (in dollars per share)	$ 4.090	$ 5.800	$ 9.723
Weighted average
Weighted average key assumptions used in determining the fair value of options granted
Weighted-average risk-free interest rate (as a percent)	2.01%	1.18%	1.60%

Share-based Compensation - Opti

Share-based Compensation - Options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	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)	2,107,344	1,352,283	511,775
Exercisable at beginning of year (in shares)	595,424	229,000	150,109
Granted (in shares)	570,432	859,257	883,537
Exercised (in shares)	(1,249)	(10,886)	(38,307)
Expired, forfeited or cancelled (in shares)	(221,554)	(93,310)	(4,722)
Outstanding at end of period (in shares)	2,454,973	2,107,344	1,352,283
Exercisable at end of period (in shares)	1,137,766	595,424	229,000
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Outstanding at beginning of year (in dollars per share)	$ 12.173	$ 13.607	$ 3.684
Exercisable at beginning of year (in dollars per share)	9.715	3.385	1.467
Exercise price (in dollars per share)	7.220	10.385	18.789
Exercised (in dollars per share)	0.223	1.231	1.928
Expired, forfeited or cancelled (in dollars per share)	10.325	17.780	2.547
Outstanding at end of period (in dollars per share)	11.195	12.173	13.607
Exercisable at end of period (in dollars per share)	$ 10.919	$ 9.715	$ 3.385
Summary of intrinsic value of outstanding and exercisable options and other information
Intrinsic value, outstanding options	$ 4,764	$ 1,128	$ 964	$ 2,883
Intrinsic value, exercisable options	$ 2,890	$ 881	$ 2,504	$ 1,179
Weighted average remaining contractual life of options outstanding	7 years 10 months 24 days
Weighted-average remaining contractual life of options exercisable	7 years 2 months 12 days
Minimum
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Exercise price (in dollars per share)	$ 7
Maximum
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Exercise price (in dollars per share)	$ 9.10

Share-based Compensation - RSUs

Share-based Compensation - RSUs (Details) - RSU's - $ / shares	Oct. 02, 2017	May 01, 2017	Dec. 31, 2017
Summary of outstanding equity instruments and activity
Granted (in equity instruments)	6,250	78,750	85,000
Outstanding at end of period (in equity instruments)			85,000
Summary of weighted-average fair value
Granted (in dollars per equity instrument)			$ 7.150
Outstanding at end of period (in dollars per equity instrument)			$ 7.150
Summary of intrinsic value
Weighted average remaining contractual life of equity instruments outstanding			9 years 4 months 24 days
Four equal tranches
Stock options, restricted stock and performance stock options
Vesting period	4 years	4 years

Share-based Compensation - Rest

Share-based Compensation - Restricted Stock (Details) - Restricted stock - $ / shares	Oct. 16, 2017	Oct. 17, 2016	Oct. 16, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock options, restricted stock and performance stock options
Shares issued				0	0	0
Shares surrendered by holder to cover taxes associated with vesting	14,895	9,709	9,197
Unvested restricted stock outstanding (in shares)					35,513	71,025
Weighted average fair value of nonvested restricted stock (in dollars per share)					$ 2.55	$ 2.55
Shares granted				0	0	0
Shares forfeited				0	0	0

Treasury stock (Details)

Treasury stock (Details) - $ / shares	Oct. 16, 2017	Oct. 17, 2016	Oct. 16, 2015	Feb. 19, 2015	Dec. 31, 2017	Dec. 31, 2016
Treasury stock
Shares of treasury stock held					33,801	18,906
Cancellation of treasury stock				55,905
Original purchase price of treasury stock (in dollars per share)				$ 0.002
Restricted stock
Treasury stock
Shares surrendered by holder to cover taxes associated with vesting	14,895	9,709	9,197

Commitments and contingencies -

Commitments and contingencies - Registration Payment Arrangement (Details) - Senior Secured Convertible Notes	Jun. 01, 2017USD ($)item$ / shares
Maximum
Registration Payment Arrangement
Number of shares which may be issued for conversion of convertible notes | item	940,924
Registration Agreement
Registration Payment Arrangement
Time period after date of any Registration Failure during which additional damages are required to be paid	30 days
Additional damages payable upon any Registration Failure, as percent of original principal amount of debt	2.00%
Maximum reimbursable legal fees | $	$ 25,000
Registration Agreement | Minimum
Registration Payment Arrangement
Conversion price | $ / shares	$ 7

Commitments and contingencies78

Commitments and contingencies - Patent Infringement Litigation (Details)	Oct. 31, 2017
Actavis
Patent infringement litigation
Time Period For Which FDA Approval is Barred Upon Commencement Of Lawsuit	30 months

Commitments and contingencies79

Commitments and contingencies - Defined Contribution Plans (Details) - USD ($)	Jan. 01, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Contribution Plans
Maximum employee annual contribution (as a percent)		50.00%
Expense on defined contribution plans		$ 419,000	$ 371,000	$ 186,000
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%

Commitments and contingencies80

Commitments and contingencies - Operating Lease, Cash Incentive Bonus Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Future minimum operating lease payments
2,018	$ 1,104,000
2,019	1,109,000
2,020	1,160,000
2,021	1,058,000
2,022	1,055,000
Thereafter	2,162,000
Future minimum lease payments	7,648,000
Deferred rent balance	1,083,000	$ 1,174,000
Rent expense, share of operating expenses	243,000	230,000
Bonus Expenses	701,000	464,000	$ 552,000
Grand Prairie Lease Plus Blue Bell Lease
Future minimum operating lease payments
Rent expense, excluding share of operating expenses	$ 1,010,000	$ 1,011,000	884,000
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

License agreements (Details)

License agreements (Details) - Shire LLC - Maximum - USD ($) $ in Millions	1 Months Ended
	Oct. 31, 2017	Feb. 29, 2016
NDA 204,326
License agreements
Payment of non-refundable license fee		$ 1
NDA 204,325
License agreements
Payment of non-refundable license fee	$ 1

Related party transactions - Sa

Related party transactions - Sale-leaseback (Details) - Related Party Sale-leaseback Transactions - USD ($)	Feb. 13, 2017	Jun. 30, 2017	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2016	Dec. 31, 2012
Related party transactions
Capital Lease Obligations				$ 2,678,000			$ 445,000
Transaction One
Related party transactions
Maximum amount authorized under sale and leaseback transaction								$ 6,500,000
Lease term				42 months
Proceeds from sale of assets					$ 795,000	$ 5,500,000
Capital Lease Obligations							$ 445,000
Transaction One | Capital leases, maturing through June 2020
Related party transactions
Maximum amount authorized under sale and leaseback transaction								$ 6,500,000
Transaction Two
Related party transactions
Maximum amount authorized under sale and leaseback transaction			$ 5,000,000
Lease term			36 months
Proceeds from sale of assets	$ 481,000	$ 2,742,000
Imputed interest rate on lease (as a percent)	14.30%	14.90%

Related party transactions - De

Related party transactions - Debt (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 26, 2017	Jun. 30, 2017	Feb. 17, 2017	Jul. 28, 2015	Jun. 30, 2017	Feb. 28, 2017	Dec. 31, 2017
Common Stock
Stock transaction disclosures
Issuance of common stock, net of issuance costs (in shares)							12,019,639
Underwritten Public Offering | Common Stock
Stock transaction disclosures
Issuance of common stock, net of issuance costs (in shares)		4,800,000			4,800,000	5,750,000
Public offering price (in dollars per share)		$ 6.25			$ 6.25	$ 5
Proceeds from Issuance of Common Stock		$ 30			$ 30
Payments of Stock Issuance Costs		$ 0.2			$ 0.2
Term of option to purchase share		30 days			30 days
Shares offered to underwriters under option granted (in shares)		720,000			720,000
Over-allotment option | Common Stock
Stock transaction disclosures
Issuance of common stock, net of issuance costs (in shares)			750,000	720,000
Senior Secured Credit Facility | Debt issued to entities affiliated with Deerfield | Investor
Related party transactions
Face amount of debt at time of related party stock purchase						$ 60
Conversion Of Convertible Notes | Senior Secured Credit Facility
Stock transaction disclosures
Number of shares of stock into which debt was converted	929,967
Amount of debt converted into stock	$ 6.6
Conversion price	$ 7.08
Conversion price, expressed as a percentage of stock price	95.00%
Number of trading days used to determine conversion stock price	3 days

Selected Quarterly Financial 84

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Selected Quarterly Financial Information
Net sales	$ 7,787	$ 6,695	$ 4,909	$ 5,627	$ 3,503	$ 1,583	$ 1,485	$ 2,583
Gross profit (loss)	5,009	4,273	2,333	1,012	(517)	(735)	(858)	(173)	$ 12,627	$ (2,283)	$ (2,137)
Net loss attributable to common stock	$ (14,225)	$ (16,258)	$ (18,674)	$ (17,090)	$ (18,374)	$ (25,806)	$ (26,539)	$ (12,614)	$ (66,247)	$ (83,333)	$ (33,171)
Weighted average common shares outstanding used to compute net loss per share, basic and diluted	28,746,608	27,884,983	22,613,382	19,624,712	16,062,685	16,070,705	16,050,138	16,025,318	24,751,091	16,052,390	7,581,881
Net loss per share of common stock, basic and fully diluted	$ (0.49)	$ (0.58)	$ (0.83)	$ (0.87)	$ (1.14)	$ (1.61)	$ (1.65)	$ (0.79)	$ (2.68)	$ (5.19)	$ (4.38)

Selected Quarterly Financial 85

Selected Quarterly Financial Data (Unaudited) - Explanatory Information (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 26, 2017	Jun. 30, 2017	Feb. 17, 2017	Jul. 28, 2015	Jun. 30, 2017	Feb. 28, 2017	Dec. 31, 2017
Conversion Of Convertible Notes | Senior Secured Credit Facility
Selected Quarterly Financial Data (Unaudited)
Amount of debt converted into stock	$ 6.6
Conversion price	$ 7.08
Conversion price, expressed as a percentage of stock price	95.00%
Number of trading days used to determine conversion stock price	3 days
Number of shares of stock into which debt was converted	929,967
Common Stock
Selected Quarterly Financial Data (Unaudited)
Issuance of common stock, net of issuance costs (in shares)							12,019,639
Common Stock | Over-allotment option
Selected Quarterly Financial Data (Unaudited)
Issuance of common stock, net of issuance costs (in shares)			750,000	720,000
Common Stock | Underwritten Public Offering
Selected Quarterly Financial Data (Unaudited)
Issuance of common stock, net of issuance costs (in shares)		4,800,000			4,800,000	5,750,000
Public offering price (in dollars per share)		$ 6.25			$ 6.25	$ 5
Gross proceeds from issuance of stock		$ 30			$ 30
Stock issuance costs		$ 0.2			$ 0.2
Term of option to purchase share		30 days			30 days
Shares offered to underwriters under option granted (in shares)		720,000			720,000

Subsequent event (Details)

Subsequent event (Details) - Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan - shares	Jan. 01, 2018	Jan. 01, 2017	Jul. 31, 2015
Subsequent event
Increase in number of shares reserved and available for issuance		803,049
Total number of shares reserved and available for issuance under the 2015 Plan			767,330
Subsequent event
Subsequent event
Increase in number of shares reserved and available for issuance	1,449,847
Total number of shares reserved and available for issuance under the 2015 Plan	2,044,512

Schedule II - VALUATION AND Q87

Schedule II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for chargebacks
Movement in valuation and qualifying accounts
Balance at beginning of period	$ 779	$ 940	$ 190
Additions charged to costs and expenses	10,146	10,504	5,359
Deductions and Payments	(10,109)	(10,665)	(4,609)
Balance at end of period	816	779	940
Allowance for cash discounts
Movement in valuation and qualifying accounts
Balance at beginning of period	171	99	14
Additions charged to costs and expenses	1,814	772	194
Due to (paid to) third party and deferred until sales recognized	(47)	(13)
Deductions and Payments	(1,601)	(687)	(109)
Balance at end of period	337	171	99
Sales offers
Movement in valuation and qualifying accounts
Additions charged to costs and expenses	25,880	3,746
Deductions and Payments	(25,880)	(3,746)
Reserve for wholesaler fees
Movement in valuation and qualifying accounts
Balance at beginning of period	509	361	117
Additions charged to costs and expenses	8,286	2,838	914
Due to (paid to) third party and deferred until sales recognized	684	144
Deductions and Payments	(7,092)	(2,834)	(670)
Balance at end of period	2,387	509	361
Reserve for returns
Movement in valuation and qualifying accounts
Balance at beginning of period	884	429	212
Additions charged to costs and expenses	167	491	242
Deductions and Payments	(158)	(36)	(25)
Balance at end of period	893	884	429
Rebates
Movement in valuation and qualifying accounts
Balance at beginning of period	421	110	9
Additions charged to costs and expenses	6,639	396	103
Deductions and Payments	(4,373)	(85)	(2)
Balance at end of period	$ 2,687	$ 421	$ 110