Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 7-May-15 | |
Entity Registrant Name | Insys Therapeutics, Inc. | |
Entity Central Index Key | 1516479 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 35,713,158 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and Cash Equivalents | $70,074,000 | $58,106,000 |
Short-term Investments | 31,386,000 | 24,757,000 |
Accounts receivable, net of allowances of $5,774 and $5,816 at March 31, 2015 and December 31, 2014, respectively | 34,176,000 | 26,544,000 |
Inventories | 35,236,000 | 34,781,000 |
Prepaid expenses and other assets | 2,734,000 | 2,243,000 |
Deferred income tax assets | 8,479,000 | 4,611,000 |
Total current assets | 182,085,000 | 151,042,000 |
Property and equipment, net | 33,846,000 | 29,872,000 |
Long-term Investments | 22,891,000 | 23,262,000 |
Deferred income tax assets | 4,874,000 | 7,602,000 |
Other assets | 3,518,000 | 3,343,000 |
Total assets | 247,214,000 | 215,121,000 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 36,578,000 | 27,454,000 |
Accrued compensation | 7,009,000 | 6,926,000 |
Accrued sales allowances | 15,215,000 | 11,296,000 |
Total current liabilities | 58,802,000 | 45,676,000 |
Uncertain income tax position | 3,778,000 | 3,778,000 |
Total liabilities | 62,580,000 | 49,454,000 |
Commitments and contingencies | ||
Stockholders' Equity: | ||
Preferred stock (par value $0.01 per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively) | 0 | 0 |
Common stock (par value $0.01 per share; 100,000,000 shares authorized; 35,668,585 and 35,351,344 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively) | 357,000 | 354,000 |
Additional paid in capital | 227,327,000 | 216,414,000 |
Unrealized gain (loss) on available-for-sale securities | 4,000 | -24,000 |
Notes receivable from stockholders | -21,000 | -21,000 |
Accumulated deficit | -43,033,000 | -51,056,000 |
Total stockholders' equity | 184,634,000 | 165,667,000 |
Total liabilities and stockholders' equity | $247,214,000 | $215,121,000 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $5,774 | $5,816 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 35,668,585 | 35,351,344 |
Common stock, shares outstanding (in shares) | 35,668,585 | 35,351,344 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net revenue | $70,770,000 | $41,636,000 |
Cost of revenue | 6,375,000 | 4,773,000 |
Gross profit | 64,395,000 | 36,863,000 |
Operating expenses: | ||
Sales and marketing | 20,916,000 | 11,618,000 |
Research and development | 10,602,000 | 4,008,000 |
General and administrative | 21,246,000 | 8,568,000 |
Total operating expenses | 52,764,000 | 24,194,000 |
Operating income | 11,631,000 | 12,669,000 |
Other income (expense): | ||
Interest income | 125,000 | 6,000 |
Other income (expense), net | 13,000 | |
Total other income | 125,000 | 19,000 |
Income before income taxes | 11,756,000 | 12,688,000 |
Income tax expense | 3,733,000 | 5,030,000 |
Net income | 8,023,000 | 7,658,000 |
Unrealized gain (loss) on available-for-sale securities | 28,000 | -18,000 |
Total comprehensive income | $8,051,000 | $7,640,000 |
Net income per common share: | ||
Basic (in dollars per share) | $0.23 | $0.23 |
Diluted (in dollars per share) | $0.21 | $0.21 |
Weighted average common shares outstanding | ||
Basic (in shares) | 35,458,414 | 33,566,416 |
Diluted (in shares) | 37,459,159 | 36,902,578 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Receivables from Stockholder [Member] | Retained Earnings [Member] | Total |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Balance at Dec. 31, 2014 | $354,000 | ($24,000) | ($21,000) | ($51,056,000) | $165,667,000 | |
Balance (in shares) at Dec. 31, 2014 | 35,351,344 | 216,414 | ||||
Exercise of stock options (in shares) | 317,241 | 3,124 | 317,241 | |||
Exercise of stock options | 3,000 | 3,127,000 | ||||
Excess tax benefits on stock options and awards | 4,069,000 | |||||
Stock based compensation - stock options and awards | 3,720,000 | |||||
Unrealized gain (loss) on available-for-sale securities | 28,000 | 28,000 | ||||
Net income (loss) | 8,023,000 | 8,023,000 | ||||
Balance at Mar. 31, 2015 | $357,000 | $4,000 | ($21,000) | ($43,033,000) | $184,634,000 | |
Balance (in shares) at Mar. 31, 2015 | 35,668,585 | 227,327 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $8,023,000 | $7,658,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,175,000 | 523,000 |
Stock-based compensation | 3,720,000 | 2,456,000 |
Deferred income tax benefit | -1,140,000 | -152,000 |
Loss on disposal of assets | 41,000 | |
Excess tax benefits on stock options and awards | -4,069,000 | -5,182,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -7,632,000 | -2,740,000 |
Inventories | -455,000 | -4,878,000 |
Prepaid expenses and other assets | -666,000 | 53,000 |
Accounts payable, accrued expenses and other current liabilities | 17,197,000 | 9,026,000 |
Net cash provided by operating activities | 16,194,000 | 6,764,000 |
Cash flows from investing activities: | ||
Purchase of investments | -6,602,000 | -16,846,000 |
Proceeds from sales of investments | 371,000 | |
Purchases of property and equipment | -5,191,000 | -3,015,000 |
Net cash used in investing activities | -11,422,000 | -19,861,000 |
Cash flows from financing activities: | ||
Excess tax benefits on stock options and awards | 4,069,000 | 5,182,000 |
Proceeds from exercise of stock options | 3,127,000 | 2,543,000 |
Net cash provided by financing activities | 7,196,000 | 7,725,000 |
Change in cash and cash equivalents | 11,968,000 | -5,372,000 |
Cash and cash equivalents, beginning of period | 58,106,000 | 45,382,000 |
Cash and cash equivalents, end of period | 70,074,000 | 40,010,000 |
Supplemental cash flow disclosures: | ||
Cash paid for interest expense | 0 | 0 |
Cash paid for income taxes | $0 | $0 |
Note_1_Nature_of_Business_and_
Note 1 - Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1 |
Nature of Business and Basis of Presentation | |
Insys Therapeutics, Inc., which was incorporated in Delaware in June 1990, and our subsidiaries (collectively, “we,” “us,” and “our”) maintain headquarters in Chandler, Arizona. | |
We are a specialty pharmaceutical company that develops and commercializes innovative supportive care products. We have two marketed products: Subsys, a proprietary sublingual fentanyl spray for breakthrough cancer pain in opioid-tolerant patients and Dronabinol SG Capsule, a generic equivalent to Marinol, an approved second-line treatment for chemotherapy-induced nausea and vomiting and anorexia associated with weight loss in patients with AIDS. | |
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles, pursuant to rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements include normal recurring adjustments that are necessary for a fair presentation of the results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2014 included in our Annual Report on Form 10-K. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of results to be expected for the full fiscal year or any other periods. | |
The preparation of the condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make a number of estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to revenue recognition (which is affected by prescriptions dispensed, wholesaler discounts, patient discount programs, rebates and chargebacks), inventories, stock-based compensation expense, and deferred tax valuation allowances. We base our estimates on historical experience and on various other assumptions that are believed by management to be reasonable under the circumstances. Actual results may differ from these estimates. | |
All significant intercompany balances and transactions have been eliminated in the accompanying unaudited condensed consolidated financial statements. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017. |
Note_2_Revenue_Recognition
Note 2 - Revenue Recognition | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Revenue Recognition [Text Block] | 2 |
Revenue Recognition | |
We recognize revenue from the sale of Subsys and Dronabinol SG Capsule. Revenue is recognized when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred and title has passed, (iii) the price is fixed or determinable and (iv) collectability is reasonably assured. | |
Subsys | |
Subsys was commercially launched in March 2012, and is monitored by a U.S. Food and Drug Administration (“FDA”) mandated Risk Evaluation and Mitigation program known as the Transmucosal Immediate Release Fentanyl program (“TIRF REMS”). We sell Subsys in the United States to wholesale pharmaceutical distributors, and on a very limited basis directly to retail pharmacies, or collectively our customers, subject to rights of return within a period beginning six months prior to, and ending 12 months following, product expiration. Subsys currently has a shelf life of 36 months from the date of manufacture. We record revenue for Subsys at the time the wholesaler receives the shipment. | |
We recognize estimated product sales allowances as a reduction of product sales in the same period the related revenue is recognized. Product sales allowances are based on amounts owed or to be claimed on the related sales. These estimates take into consideration the terms of our agreements with customers and third-party payors and the levels of inventory within the distribution channels that may result in future discounts taken. In certain cases, such as patient assistance programs, we recognize the cost of patient discounts as a reduction of revenue based on estimated utilization. If actual future results vary, we may need to adjust these estimates, which could have an effect on product revenue in the period of adjustment. Our product sales allowances include: | |
Product Returns. | |
We allow customers to return product for credit within six months before and up to 12 months following its product expiration date. The shelf life of Subsys is currently 36 months from the date of manufacture. We have monitored actual return history since product launch, which provides us with a basis to reasonably estimate future product returns, taking into consideration the shelf life of product at the time of shipment, shipment and prescription trends, estimated distribution channel inventory levels, and consideration of the introduction of competitive products. | |
Because of the shelf life of our products and our return policy of issuing credits on returned product that is within six months before and up to 12 months after its product expiration date, there may be a significant period of time between when the product is shipped and when we issue credits on returned product. Accordingly, we may have to adjust these estimates, which could have an effect on product sales and earnings in the period of adjustments. The allowance for product returns is included in accrued sales allowances. | |
Wholesaler Discounts. | |
We offer discounts to certain wholesale distributors based on contractually determined rates. We accrue the discount as a reduction of receivables due from the wholesalers upon shipment to the respective wholesale distributors and retail pharmacies and recognize the estimated discount as a reduction of revenue in the same period the related revenue is recognized. | |
Prompt Pay Discounts | |
. We offer cash discounts to our customers, generally 2.0% of the sales price, as an incentive for prompt payment. We account for cash discounts by reducing accounts receivable by the full amount and recognize the estimated discount as a reduction of revenue in the same period the related revenue is recognized. | |
Patient Discount Programs | |
. We offer discount card programs to patients for Subsys in which patients receive discounts on their prescriptions that are reimbursed to the retailer. We estimate the total amount that will be redeemed based on a percentage of actual redemption applied to inventory in the distribution and retail channel and recognize the estimated discount as a reduction of revenue in the same period the related revenue is recognized. The allowance for patient discount programs is included in accrued sales allowances. | |
Rebates | |
. We participate in certain rebate programs, which provide discounted prescriptions to qualified insured patients. Under these rebate programs, we pay a rebate to the third-party administrator of the program, generally two to three months after the quarter in which prescriptions subject to the rebate are filled. We estimate and accrue these rebates based on current contract prices, historical and estimated future percentages of products sold to qualified patients and estimated levels of inventory in the distribution channel. Estimated rebates are recognized as a reduction of revenue in the period the related revenue is recognized. The allowance for rebates is included in accrued sales allowances. | |
Chargebacks. | |
We provide discounts primarily to authorized users of the Federal Supply Schedule (“FSS”) of the General Services Administration under an FSS contract negotiated by the Department of Veterans Affairs and various organizations under Medicaid contracts and regulations. These entities purchase products from the wholesale distributors at a discounted price, and the wholesale distributors then charge back to us the difference between the current retail price and the price the entity paid for the product. We estimate and accrue chargebacks based on estimated wholesaler inventory levels, current contract prices and historical chargeback activity. Estimated chargebacks are recognized as a reduction of revenue in the same period the related revenue is recognized. The allowance for chargebacks is included as a reduction to accounts receivable. | |
Dronabinol SG Capsule | |
Dronabinol SG Capsule was commercially launched in December 2011, and we sell Dronabinol SG Capsule exclusively to Mylan Pharmaceuticals, Inc. (“Mylan”) in the United States under a supply and distribution agreement. Pursuant to the terms of the Mylan agreement, we manufacture Dronabinol SG Capsule under the Mylan label. Mylan distributes Dronabinol SG Capsule and on a monthly basis pays us an amount equal to the value of Dronabinol SG Capsule it sold to wholesale pharmaceutical distributors, less contractually defined deductions for chargebacks, rebates, sales discounts, distribution and storage fees, and royalties. Under the terms of the supply and distribution agreement with Mylan, we are obligated to pay Mylan a royalty of between 10% and 20% on Mylan’s net product sales, and a single digit percentage fee on such sales for distribution and storage services. We bear no risk of product return upon acceptance by Mylan. As Mylan has control over the amount it charges to wholesale pharmaceutical distributors for Dronabinol SG Capsule and the discounts offered to the distributors, the sales price is not fixed and determinable at the date we ship such products to Mylan. Accordingly, we recognize revenue upon Mylan’s sale of products to wholesale distributors, which is the point at which the sales price is fixed and determinable. The allowance for chargebacks is included in accrued expense. See Note 6 for a discussion on our ongoing dispute with Mylan. |
Note_3_Shortterm_and_Longterm_
Note 3 - Short-term and Long-term Investments | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||
Investment [Text Block] | 3 | Short-Term and Long-Term Investments | |||||||||||||||||||||||||||||||
Our policy for short-term and long-term investments is to establish a high-quality portfolio that preserves principal, meets liquidity needs, avoids inappropriate concentrations and delivers an appropriate yield in relationship to our investment guidelines and market conditions. Short-term and long-term investments consist of corporate and various government agency and municipal debt securities, as well as certificates of deposit that have maturity dates that are greater than 90 days. Certificates of deposit are carried at cost which approximates fair value. We classify our marketable securities as available-for-sale in accordance with FASB Accounting Standards Codification Topic 320, | |||||||||||||||||||||||||||||||||
Investments — Debt and Equity Securities | |||||||||||||||||||||||||||||||||
. Available-for-sale securities are carried at fair value with unrealized gains and losses reported in stockholders’ equity. A decline in the market value of any available-for-sale security below cost that is deemed to be other than temporary, results in impairment of the fair value of the investment. We did not have any realized gains or losses or decline in values judged to be other than temporary during the three months ended March 31, 2015. If we had realized gains and losses and declines in value judged to be other than temporary, we would have been required to include those changes in other income/expense in the condensed consolidated statements of income and comprehensive income. Premiums and discounts are amortized or accreted over the life of the related available-for-sale security. The cost of securities sold is calculated using the specific identification method. At March 31, 2015, our certificates of deposit as well as our marketable securities have been recorded at an estimated fair value of $31,386,000 and $22,891,000 in short-term and long-term investments, respectively. | |||||||||||||||||||||||||||||||||
Investments consisted of the following at March 31, 2015 (in thousands): | |||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Other- | Fair | Cash and Cash Equivalents | Short-term | Long-term | ||||||||||||||||||||||||||
Gains | Losses | Than- | Value | Investments | Investments | ||||||||||||||||||||||||||||
Temporary | |||||||||||||||||||||||||||||||||
Impairment | |||||||||||||||||||||||||||||||||
Losses | |||||||||||||||||||||||||||||||||
Cash | $ | 52,771 | $ | - | $ | - | $ | - | $ | 52,771 | $ | 52,771 | $ | - | $ | - | |||||||||||||||||
Money market funds | 16,924 | - | - | - | 16,924 | 16,924 | - | - | |||||||||||||||||||||||||
Certificates of deposit | 14,289 | - | - | - | 14,289 | - | 3,313 | 10,976 | |||||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||||||||||
Corporate securities | 9,712 | - | (11 | ) | - | 9,701 | - | 5,870 | 3,831 | ||||||||||||||||||||||||
Federal agency securities | 11,008 | 4 | (3 | ) | - | 11,009 | - | 6,007 | 5,002 | ||||||||||||||||||||||||
Municipal securities | 19,643 | 16 | (2 | ) | - | 19,657 | 379 | 16,196 | 3,082 | ||||||||||||||||||||||||
Total marketable securities | 40,363 | 20 | (16 | ) | - | 40,367 | 379 | 28,073 | 11,915 | ||||||||||||||||||||||||
$ | 124,347 | $ | 20 | $ | (16 | ) | $ | - | $ | 124,351 | $ | 70,074 | $ | 31,386 | $ | 22,891 | |||||||||||||||||
Investments consisted of the following at December 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Other- | Fair | Cash and Cash Equivalents | Short-term | Long-term | ||||||||||||||||||||||||||
Gains | Losses | Than- | Value | Investments | Investments | ||||||||||||||||||||||||||||
Temporary | |||||||||||||||||||||||||||||||||
Impairment | |||||||||||||||||||||||||||||||||
Losses | |||||||||||||||||||||||||||||||||
Cash | $ | 44,785 | $ | - | $ | - | $ | - | $ | 44,785 | $ | 44,785 | $ | - | $ | - | |||||||||||||||||
Money market funds | 13,321 | - | - | - | 13,321 | 13,321 | - | - | |||||||||||||||||||||||||
Certificates of deposit | 12,657 | - | - | - | 12,657 | - | 3,160 | 9,497 | |||||||||||||||||||||||||
Marketable securities: | - | ||||||||||||||||||||||||||||||||
Corporate securities | 10,837 | - | (26 | ) | - | 10,811 | - | 6,229 | 4,582 | ||||||||||||||||||||||||
Federal agency securities | 9,512 | - | (10 | ) | - | 9,502 | - | 5,009 | 4,493 | ||||||||||||||||||||||||
Municipal securities | 15,037 | 15 | (3 | ) | - | 15,049 | - | 10,359 | 4,690 | ||||||||||||||||||||||||
Total marketable securities | 35,386 | 15 | (39 | ) | - | 35,362 | - | 21,597 | 13,765 | ||||||||||||||||||||||||
$ | 106,149 | $ | 15 | $ | (39 | ) | $ | - | $ | 106,125 | $ | 58,106 | $ | 24,757 | $ | 23,262 | |||||||||||||||||
The amortized cost and estimated fair value of the marketable securities at March 31, 2015, by maturity, are shown below (in thousands): | |||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 28,448 | $ | 28,452 | |||||||||||||||||||||||||||||
Due after one year through 5 years | 11,915 | 11,915 | |||||||||||||||||||||||||||||||
Due after 5 years through 10 years | - | - | |||||||||||||||||||||||||||||||
Due after 10 years | - | - | |||||||||||||||||||||||||||||||
$ | 40,363 | $ | 40,367 | ||||||||||||||||||||||||||||||
The following table shows the gross unrealized losses and the fair value of our investments, with unrealized losses that are not deemed to be other-than-temporarily impaired aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2015 (in thousands): | |||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||
Less Than 12 Months | Greater Than 12 Months | ||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||||||||||
Corporate securities | $ | 8,897 | $ | (11 | ) | $ | - | $ | - | ||||||||||||||||||||||||
Federal agency securities | 2,499 | (1 | ) | 998 | (2 | ) | |||||||||||||||||||||||||||
Municipal securities | 1,848 | (2 | ) | - | - | ||||||||||||||||||||||||||||
$ | 13,244 | $ | (14 | ) | $ | 998 | $ | (2 | ) | ||||||||||||||||||||||||
As of March 31, 2015, we have concluded that the unrealized losses on our marketable securities are temporary in nature. Marketable securities are reviewed quarterly for possible other-than-temporary impairment. This review includes an analysis of the facts and circumstances of each individual investment such as the severity of loss, the expectation for that security’s performance and the creditworthiness of the issuer. Additionally, we do not intend to sell, and it is not probable that we will be required to sell, any of the securities before the recovery of their amortized cost basis. |
Note_4_Fair_Value_Measurement
Note 4 - Fair Value Measurement | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Fair Value Disclosures [Text Block] | 4. Fair Value Measurement | ||||||||||||||||
FASB Accounting Standards Codification (“ASC”) No. 820, “Fair Value Measurement” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||||||||||
Level 1: | Observable inputs such as quoted prices in active markets; | ||||||||||||||||
Level 2: | Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | ||||||||||||||||
Level 3: | Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||||||||||||||
At March 31, 2015, we held short-term and long-term investments, as discussed in Note 3, that are required to be measured at fair value on a recurring basis. All available-for-sale investments held by us at March 31, 2015 have been valued based on Level 2 inputs. Available-for-sale securities classified within Level 2 of the fair value hierarchy are valued utilizing reports from third-party asset managers that hold our investments, showing closing prices on the last business day of the period presented. These asset managers utilize an independent pricing source to obtain quotes for most fixed income securities, and utilize internal procedures to validate the prices obtained. In addition, we use an independent third-party to perform price testing, comparing a sample of quoted prices listed in the asset managers’ reports to quotes listed through a public quotation service. | |||||||||||||||||
Our investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820, | |||||||||||||||||
Fair Value Measurements and Disclosures | |||||||||||||||||
, at March 31, 2015 and December 31, 2014 were as follows (in thousands): | |||||||||||||||||
Fair Value Measurement at Reporting Date | |||||||||||||||||
March 31, | Quoted Prices in active Markets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||
2015 | (Level 1) | (Level 3) | |||||||||||||||
Marketable securities: | |||||||||||||||||
Corporate securities | $ | 9,701 | $ | - | $ | 9,701 | $ | - | |||||||||
Federal agency securities | 11,009 | - | 11,009 | - | |||||||||||||
Municipal securities | 19,657 | - | 19,657 | - | |||||||||||||
Total assets measured at fair value | $ | 40,367 | $ | - | $ | 40,367 | $ | - | |||||||||
Fair Value Measurement at Reporting Date | |||||||||||||||||
December 31, | Quoted Prices in active Markets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||
2014 | (Level 1) | (Level 3) | |||||||||||||||
Marketable securities: | |||||||||||||||||
Corporate securities | $ | 10,811 | $ | - | $ | 10,811 | $ | - | |||||||||
Federal agency securities | 9,502 | - | 9,502 | - | |||||||||||||
Municipal securities | 15,049 | - | 15,049 | - | |||||||||||||
Total assets measured at fair value | $ | 35,362 | $ | - | $ | 35,362 | $ | - |
Note_5_Inventories
Note 5 - Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Inventory Disclosure [Text Block] | 5 | ||||||||
Inventories | |||||||||
Inventories are stated at lower of cost or market. Cost, which includes amounts related to materials and costs incurred by our contract manufacturers, is determined on a first-in, first-out basis. Inventories are reviewed periodically for potential excess, dated or obsolete status. Management evaluates the carrying value of inventories on a regular basis, taking into account such factors as historical and anticipated future sales compared to quantities on hand, the price we expect to obtain for products in their respective markets compared with historical cost and the remaining shelf life of goods on hand. | |||||||||
The components of inventories, net of allowances, are as follows (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Finished goods | $ | 29,865 | $ | 30,998 | |||||
Work-in-process | 5,186 | 4,316 | |||||||
Raw materials and supplies | 3,677 | 2,785 | |||||||
Total inventories | 38,728 | 38,099 | |||||||
Less: non-current work-in-process | (3,492 | ) | (3,318 | ) | |||||
$ | 35,236 | $ | 34,781 | ||||||
As of March 31, 2015 and December 31, 2014, raw materials inventories consisted of raw materials used in the manufacture of the active pharmaceutical ingredient (“API”) in our U.S.-based, state-of-the-art dronabinol manufacturing facility and component parts used in the manufacture of Subsys. Work-in-process consists of actual production costs, including facility overhead and tolling costs of in-process Dronabinol SG Capsule and Subsys products. Finished goods inventories consisted of finished Dronabinol SG Capsule and Subsys products. Non-current work-in-process represent those inventories pending FDA approval which is not expected before March 31, 2016 and are included in other assets in our condensed consolidated unaudited balance sheets. |
Note_6_Commitments_and_Conting
Note 6 - Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes to Financial Statements | |||||
Commitments and Contingencies Disclosure [Text Block] | 6 | ||||
Commitments and | |||||
Contingencies | |||||
Legal Matters | |||||
Other than the matters that we have disclosed below, we from time to time become involved in various ordinary course legal and administrative proceedings, which include intellectual property, commercial, governmental and regulatory investigations, employee related issues and private litigation, which we do not believe are either individually or collectively material. | |||||
As legal and governmental proceedings are inherently unpredictable and, in part, beyond our control, unless otherwise indicated, we cannot reasonably predict the outcome of these legal proceedings, nor can we estimate the amount of loss, or range of loss, if any, that may result from these proceedings. An adverse outcome in any of these proceedings could have a material adverse effect on our business, financial condition, results of operations and cash flows, and could cause the market value of our common shares to decline. | |||||
Government Proceedings | |||||
Like other companies in the pharmaceutical industry, we are subject to extensive regulation by national, state and local government agencies in the United States. As a result, interactions with government agencies occur in the normal course of our operations. The following is a brief description of pending governmental investigations which we believe are potentially material at this time. It is possible that criminal charges and substantial fines and/or civil penalties or damages could result from any government investigation or proceeding, as well as a corporate integrity agreement or similar government mandated compliance document, whether we deem an investigation to be material or not at this time. | |||||
We have invested, and continue to invest, substantial time and resources with respect to the implementation and enhancement of our corporate compliance program. | |||||
Department of Health and Human Services Investigation. | |||||
We received a subpoena, dated December 9, 2013, from the Office of Inspector General of the Department of Health and Human Services in connection with an investigation of potential violations involving federal healthcare programs. The subpoena was issued in connection with an investigation by the U.S. Attorney’s Office for the Central District of California. The subpoena requests documents regarding our business, including the commercialization of Subsys. We are cooperating with this investigation and have produced documents in response to the subpoena and have provided other requested information. | |||||
The company has also | |||||
received a civil investigative demand, or CID, from the U.S. Attorney's Office for the Middle District of Florida for documents and information relating to the Company's sales and marketing of Subsys. The company is cooperating with this investigation. | |||||
Health Insurance Portability and Accountability Act Investigation. | |||||
On September 8, 2014, we received a subpoena issued pursuant to the Health Insurance Portability and Accountability Act of 1996, as amended, or HIPA, from the U.S. Attorney’s Office for the District of Massachusetts. The subpoena requests documents regarding Subsys, including our sales and marketing practices related to this product. | |||||
The company has also received a subpoena, pursuant to HIPA, from the U.S. Attorney’s Office in the District of New Hampshire that requests documents regarding Subsys, including our sales and marketing practices related to this product. | |||||
We are cooperating with these investigations and have produced documents in response to these subpoenas and have provided other requested information. | |||||
State Related Investigations. | |||||
We have received CIDs from each of the Office of the Attorney General of the State of Arizona, Oregon Department of Justice, the Attorney General of the Commonwealth of Massachusetts and the Office of the Attorney General of Illinois. These CIDs request documents regarding Subsys, including the Company’s sales and marketing practices related to Subsys in the applicable State. We are cooperating with each of these investigations and have produced documents in response to these CIDs and related requests for information from each office. | |||||
The investigative demand for documents from the Oregon Department of Justice is under the state's consumer protection law. Although we have had preliminary discussions regarding a potential settlement of this inquiry, no agreement has been reached and the outcome of such discussions is not known at this time. We believe we have meritorious defenses to the specific issues under review in Oregon. | |||||
We believe that the probability of unfavorable outcome or loss related to these governmental proceedings and an estimate of the amount or range of loss, if any, from an unfavorable outcome are not determinable at this time. We believe we have meritorious legal positions and will continue to represent our interests vigorously in these matters. However, responding to government investigations, defending any claims raised, and any resulting fines, restitution, damages and penalties, settlement payments or administrative actions, as well as any related actions brought by shareholders or other third parties, could have a material impact on our reputation, business and financial condition and divert the attention of our management from operating our business. | |||||
Federal Securities Litigation | |||||
Between May 15 and May 19, 2014, two complaints (captioned Larson v. Insys Therapeutics, Inc., Case No. 14-cv-01043-GMS) and (Li vs. Insys Therapeutics, Inc., Case No 14-cv-01077-DGC) were filed in the U.S. District Court for the District of Arizona, or Arizona District Court, against us and certain of our current officers. The complaints were brought as purported class actions, on behalf of purchasers of our common stock. In general, the plaintiffs allege that the defendants violated federal securities laws by making intentionally false and misleading statements regarding our business and operations, therefore artificially inflating the price of our common stock. The plaintiffs seek unspecified monetary damages and other relief. On July 14, 2014, several purported shareholders filed motions to consolidate the two cases, appoint a lead plaintiff, and appoint lead counsel. On August 29, 2014, the Arizona District Court issued an order consolidating the action, appointing Hongwei Li as lead plaintiff, and appointing the lead counsel. Lead plaintiffs complaint was filed on October 27, 2014. On December 11, 2014, we moved to dismiss the amended consolidated complaint. On March 19, 2015, the parties participated in a mediation and the parties subsequently agreed in principle, on April 14, 2015, to settle the action. On April 20, 2015, the parties filed a Notice of Settlement with the Court. If the Court preliminarily approves the settlement, then potential class members will be notified of the proposed settlement and the procedure by which they can object to the settlement or request to be excluded from the class. The settlement will then be subject to final approval by the Court. Because we have met our retainage amount under our applicable directors and officers insurance policy, the currently contemplated obligations that may arise as result of the proposed settlement in this matter will be fully covered under our directors and officers insurance policy. Accordingly, we have not accrued any loss contingency for this matter into our operating results. | |||||
General Litigation and Disputes | |||||
Kottayil vs. Insys Pharma, Inc. | |||||
On September 29, 2009, Insys Pharma, Inc., our wholly owned subsidiary, and certain of our officers and the five directors who comprised the Insys Pharma board of directors as of June 2009, as well as their spouses, were named as defendants in a lawsuit in the Superior Court of the State of Arizona, Maricopa County, or the Arizona Superior Court, brought by Santosh Kottayil, Ph.D., certain of his family members and a trust of which Dr. Kottayil is the trustee. Dr. Kottayil formerly served as President, Chief Scientific Officer and a director of Insys Pharma, among other positions. The complaint brought a cause of action for statutory and common law appraisal of Dr. Kottayil’s Insys Pharma common stock. The cause of action for appraisal relates to a reverse stock split that Insys Pharma effected in June 2009, which resulted in Dr. Kottayil’s ownership position becoming a fractional share of Insys Pharma common stock. Following the reverse stock split, Insys Pharma cancelled all resulting fractional shares, including the fractional share held by Dr. Kottayil, and offered a cash payment in lieu of the fractional shares. The complaint also brought causes of action for breach of fiduciary duty, fraud and negligent misrepresentation in the defendants’ dealings with Dr. Kottayil on the subject of his compensation and stock ownership in Insys Pharma. In January 2010, the plaintiffs added claims seeking to rescind Dr. Kottayil’s assignment to Insys Pharma of his interest in all of the fentanyl and dronabinol patent applications previously assigned to Insys Pharma and to recover the benefits of those interests. Dr. Kottayil is seeking, among other relief, the fair value of his Insys Pharma common stock as of June 2, 2009, compensatory and punitive damages, and rescission of all assignments to Insys Pharma of his interest in the patent applications, as well as attorneys’ fees, costs and interest. | |||||
In February 2010, Insys Pharma and the other defendants answered and filed counter-claims to Dr. Kottayil’s amended complaint. The counter-claims include actions for breach of fiduciary duty, fraud and negligent misrepresentations and omissions with respect to the time during which Dr. Kottayil was employed at Insys Pharma. The counter-claims, among other relief, seek compensatory and punitive damages. | |||||
Discovery on all of the foregoing claims was completed and a trial was scheduled to commence on January 27, 2014; however, on January 22, 2014, the court vacated the trial and granted plaintiffs leave to file an amended complaint to add Insys Therapeutics, Inc. as a defendant. | |||||
On January 29, 2014, the plaintiffs filed a second amended complaint in the Arizona Superior Court in which Insys Therapeutics, Inc. was also named as defendant in this lawsuit. This amended complaint filed by plaintiffs re-alleges substantially the same claims set forth in the prior complaint, except that plaintiffs now allege that they are entitled to rescissory damages. Plaintiffs have also added our majority stockholder, a private trust, as a defendant to the breach of fiduciary duty claim and plaintiffs have revised their fraud claim against the Insys Pharma director defendants. | |||||
On February 25, 2014, we filed a Motion to Dismiss the Kottayil Plantiffs’ claims for a statutory and common law appraisal. The motion was denied on May 2, 2014. | |||||
The trial commenced on December 1, 2014 with the evidence phase of the trial completing on January 29, 2015. | |||||
On April 10, 2015, following post-trial submissions and an oral argument, the court took the matter under advisement and the parties await the court’s final findings of fact and conclusions of law. Based on preliminary statements from the court, we concluded that it is probable that a loss has been incurred and the amount of the loss will be confirmed when the court’s final findings of fact and conclusions of law are released. While the court’s statements were preliminary and, by their nature subject to material change, we have nevertheless accrued $8,000,000 into our operating results during the quarter ended March 31, 2015. This accrual is a preliminary estimate based on the best information available to us at this time. | |||||
Insys Therapeutics, Inc. vs. Mylan Pharmaceuticals | |||||
. | |||||
On or around May 30, 2013, we filed a lawsuit against Mylan Pharmaceuticals, or Mylan, seeking a declaration that the parties’ Supply and Distribution Agreement dated May 20, 2011, or the Distribution Agreement, had been terminated because of Mylan’s material breach of the Distribution Agreement. Mylan removed the action to the United States District Court for the District of Arizona, or the District Court, as Case No. 2:13-cv-01112-DGC, and moved to compel arbitration and sought a preliminary injunction. The District Court compelled arbitration and issued a preliminary injunction requiring that the Distribution Agreement continue in full force and effect pending the outcome of arbitration. The District Court then dismissed the lawsuit. | |||||
On May 31, 2013, Mylan filed a demand with the American Arbitration Association, Case No. 55 122 00119 13. Mylan’s demand alleged that we were in breach of the Distribution Agreement. On July 10, 2013, we filed a response to Mylan’s demand, denying we were in breach of the Distribution Agreement, and asserting counterclaims based on Mylan’s material breach of the Distribution Agreement and the duty of good faith and fair dealing. | |||||
On January 21, 2014, Mylan filed a second new lawsuit against us with the District Court, as Case No. 2:14-cv-00119-GMS, asserting a claim for declaratory judgment and seeking a temporary restraining order and preliminary injunction relating to our notice of termination of the Distribution Agreement with respect to the parties’ failure to agree on floor pricing. On January 24, 2014, we responded in opposition to the application for temporary restraining order and preliminary injunction, or Application. A hearing was initially set for April 3, 2014. After stipulation of the parties to postpone the hearing, the Court denied all pending motions as moot on April 2, 2014. The Application was dismissed by the Court with prejudice on June 2, 2014. After the Application was dismissed, Mylan filed a Motion to Enforce a draft settlement agreement between the parties. We responded in opposition and the District Court denied Mylan’s motion on September 12, 2014. We have moved for sanctions against Mylan for filing the motion to enforce and we intend to seek damages and attorneys’ fees as part of this arbitration. | |||||
On September 23, 2014, the three member arbitration panel held a preliminary hearing wherein it decided that the arbitration proceeding would be bifurcated. The first phase of the proceeding will determine whether there has been a material breach of the Agreement. If either party is successful in establishing its claims during this first phase then there will be a second phase of the arbitration to determine damages. | |||||
In November 2014, the arbitration panel held Phase I of the arbitration proceeding which we anticipate will resolve (1) whether Mylan materially breached the Agreement by failing to accept the delivery of conforming shipments of product in October 2012, January 2014 and March 2014; (2) whether Mylan has materially breached the parties’ Supply and Distribution Agreement by failing to use commercially reasonable efforts to market and sell the product; and (3) whether we are in breach of the Agreement by delivering non-conforming product. If we are successful in our claims, the Panel will schedule a Phase II of the arbitration to determine the amount, if any, of damages suffered because of the breach of the Supply and Distribution Agreement. The arbitration panel has not yet delivered a Phase I decision. | |||||
Except as it pertains to the $8,000,000 accrual for the dispute with Dr. Kottayil and the potential for damages in the federal securities litigation that should be sufficiently covered by our director and officers insurance policies as noted above, we believe that the probability of unfavorable outcome or loss related to all of the above litigation matters and an estimate of the amount or range of loss, if any, from an unfavorable outcome are not determinable at this time. We believe we have meritorious legal positions and will continue to represent our interests vigorously in these matters but the range possible outcomes on these matters is very broad and we are not able to provide a reasonable estimate of our potential liability, if any, nor are we able to predict the outcome of each litigation matter. Responding to each of these litigation matters, defending any claims raised, and any resulting fines, restitution, damages and penalties, or settlement payments as well as any related actions brought by shareholders or other third parties, could have a material impact on our reputation, business and financial condition and divert the attention of our management from operating our business. | |||||
Material Agreements | |||||
In April 2015, we entered into an amendment to our manufacturing and supply agreement with DPT, which extends our existing manufacturing and supply agreement to produce Subsys until the end of 2020. In addition to extending the term, this amendment added certain minimum purchase commitments which are subject to customary contingencies related to certain events occuring or not occuring. The following table sets forth minimum purchase commitments with DPT under this agreement (in thousands): | |||||
Years ending December 31, | |||||
2015 | - | ||||
2016 | - | ||||
2017 | 8,450 | ||||
2018 | 11,150 | ||||
2019 | 13,850 | ||||
Thereafter | 16,290 | ||||
Total | $ | 49,740 |
Note_7_Stockbased_Compensation
Note 7 - Stock-based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 7 | ||||||||||||||||
Stock-based Compensation | |||||||||||||||||
Amounts recognized in the condensed consolidated statements of income and comprehensive income with respect to our stock-based compensation plans were as follows (in thousands): | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Research and development | $ | 341 | $ | 327 | |||||||||||||
General and administrative | 3,379 | 2,129 | |||||||||||||||
Total cost of stock-based compensation | $ | 3,720 | $ | 2,456 | |||||||||||||
As of March 31, 2015, we expected to recognize $34,418,000 of stock-based compensation for outstanding options over a weighted-average period of 2.9 years. | |||||||||||||||||
The following table summarizes stock option activity as of December 31, 2014 and for the three months ended March 31, 2015: | |||||||||||||||||
Weighted | |||||||||||||||||
Weighted | Average | Aggregate | |||||||||||||||
Average | Remaining | Intrinsic | |||||||||||||||
Number of | Exercise | Contractual | Value | ||||||||||||||
Shares | Price | Term (in years) | (in millions) | ||||||||||||||
Vested and exercisable as of December 31, 2014 | 1,330,360 | $ | 7.9 | 7.2 | $ | 45.6 | |||||||||||
Outstanding as of December 31, 2014 | 3,853,581 | $ | 15.14 | ||||||||||||||
Granted | 141,000 | $ | 57.45 | ||||||||||||||
Cancelled | (80,595 | ) | $ | 31.79 | |||||||||||||
Exercised | (317,241 | ) | $ | 9.86 | |||||||||||||
Outstanding as of March 31, 2015 | 3,596,745 | $ | 16.89 | 8.1 | $ | 148.3 | |||||||||||
Vested and exercisable as of March 31, 2015 | 1,296,883 | $ | 8.92 | 7.1 | $ | 63.8 | |||||||||||
Cash received from option exercises under all share-based payment arrangements for the three months ended March 31, 2015 and 2014 was $3,127,000 and $2,543,000, respectively. For the three months ended March 31, 2015, we recorded net reductions of $4,069,000 of our federal and state income tax liability, with an offsetting credit to additional paid-in capital, resulting from the excess tax benefits of stock options. |
Note_8_Net_Income_Per_Share
Note 8 - Net Income Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Earnings Per Share [Text Block] | 8 | ||||||||
Net Income per Share | |||||||||
Basic net income per common share is computed by dividing the net income allocable to the common stockholders by the weighted average number of common shares outstanding during the period. The diluted income per share further includes any common shares available to be issued upon exercise of outstanding stock options if such inclusion would be dilutive. | |||||||||
The following table sets forth the computation of basic and diluted net income per common share (dollars in thousands, except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Historical net income per share - Basic | |||||||||
Numerator: | |||||||||
Net income | $ | 8,023 | $ | 7,658 | |||||
Denominator: | |||||||||
Weighted average number of common shares outstanding | 35,458,414 | 33,566,416 | |||||||
Basic net income per common share | $ | 0.23 | $ | 0.23 | |||||
Historical net income per share - Diluted | |||||||||
Numerator: | |||||||||
Net income | $ | 8,023 | $ | 7,658 | |||||
Denominator: | |||||||||
Weighted average number of common shares outstanding | 35,458,414 | 33,566,416 | |||||||
Effect of dilutive stock options | 2,000,745 | 3,336,162 | |||||||
Weighted average number of common shares outstanding | 37,459,159 | 36,902,578 | |||||||
Diluted net income per common share | $ | 0.21 | $ | 0.21 | |||||
Anti-dilutive share equivalents included 792,252 and 292,275 outstanding stock options as of March 31, 2015 and 2014, respectively. |
Note_9_Product_Lines_Concentra
Note 9 - Product Lines, Concentration of Credit Risk and Significant Customers | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Concentration Risk Disclosure [Text Block] | 9 | ||||||||
Product Lines, Concentration of Credit Risk and Significant Customers | |||||||||
We are engaged in the business of developing and selling pharmaceutical products. We have two product lines, consisting of Subsys and Dronabinol SG Capsule. Our chief operating decision-maker evaluates revenues based on product lines. | |||||||||
The following tables summarize our net revenue by product line, as well as the percentages of revenue by route to market (in thousands): | |||||||||
Net Revenue by Product Line | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Subsys | $ | 70,540 | $ | 40,654 | |||||
Dronabinol SG Capsule | 230 | 982 | |||||||
Total net revenue | $ | 70,770 | $ | 41,636 | |||||
Percent of Revenue by Route to Market | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Pharmaceutical wholesalers | 100 | % | 98 | % | |||||
Generic pharmaceutical distributors | 0 | % | 2 | % | |||||
100 | % | 100 | % | ||||||
All our products are sold in the United States of America. | |||||||||
Product shipments to four pharmaceutical wholesalers accounted for 28%, 23%, 19% and 18% of total shipments for the three months ended March 31, 2015. Product shipments to four pharmaceutical wholesalers accounted for 39%, 18%, 16% and 14% of total shipments for the three months ended March 31, 2014. Three pharmaceutical wholesalers’ accounts receivable balances accounted for 29%, 28%, and 24% of gross accounts receivable as of March 31, 2015. Four pharmaceutical wholesalers’ accounts receivable balances accounted for 26%, 24%, 23% and 14% of gross accounts receivable as of December 31, 2014. |
Note_10_Related_Party_Transact
Note 10 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 10 |
Related Party Transactions | |
In March of 2015, we entered into a consulting agreement with Dr. John Kapoor, our Executive Chairman of our Board of Directors and our majority shareholder, to compensate Dr. Kapoor for his ongoing time and contribution to the Company. Under the terms of the agreement, Dr. Kapoor will receive an annual consulting fee of $300,000. |
Note_11_Subsequent_Event
Note 11 - Subsequent Event | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 11. Subsequent Event |
On May 5, 2015, our board of directors approved a two-for-one stock split of our common stock to be effected through a stock dividend. The record date for the stock split is the close of business on May 26, 2015, with share distribution scheduled for June 5, 2015. As a result of the dividend, shareholders will receive one additional share of Insys Therapeutics, Inc. common stock, par value $0.01, for each share they hold as of the record date. The share and per share amounts in these financial statements have not been adjusted to reflect the stock split. |
Note_3_Shortterm_and_Longterm_1
Note 3 - Short-term and Long-term Investments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | 31-Mar-15 | ||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Other- | Fair | Cash and Cash Equivalents | Short-term | Long-term | ||||||||||||||||||||||||||
Gains | Losses | Than- | Value | Investments | Investments | ||||||||||||||||||||||||||||
Temporary | |||||||||||||||||||||||||||||||||
Impairment | |||||||||||||||||||||||||||||||||
Losses | |||||||||||||||||||||||||||||||||
Cash | $ | 52,771 | $ | - | $ | - | $ | - | $ | 52,771 | $ | 52,771 | $ | - | $ | - | |||||||||||||||||
Money market funds | 16,924 | - | - | - | 16,924 | 16,924 | - | - | |||||||||||||||||||||||||
Certificates of deposit | 14,289 | - | - | - | 14,289 | - | 3,313 | 10,976 | |||||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||||||||||
Corporate securities | 9,712 | - | (11 | ) | - | 9,701 | - | 5,870 | 3,831 | ||||||||||||||||||||||||
Federal agency securities | 11,008 | 4 | (3 | ) | - | 11,009 | - | 6,007 | 5,002 | ||||||||||||||||||||||||
Municipal securities | 19,643 | 16 | (2 | ) | - | 19,657 | 379 | 16,196 | 3,082 | ||||||||||||||||||||||||
Total marketable securities | 40,363 | 20 | (16 | ) | - | 40,367 | 379 | 28,073 | 11,915 | ||||||||||||||||||||||||
$ | 124,347 | $ | 20 | $ | (16 | ) | $ | - | $ | 124,351 | $ | 70,074 | $ | 31,386 | $ | 22,891 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Other- | Fair | Cash and Cash Equivalents | Short-term | Long-term | ||||||||||||||||||||||||||
Gains | Losses | Than- | Value | Investments | Investments | ||||||||||||||||||||||||||||
Temporary | |||||||||||||||||||||||||||||||||
Impairment | |||||||||||||||||||||||||||||||||
Losses | |||||||||||||||||||||||||||||||||
Cash | $ | 44,785 | $ | - | $ | - | $ | - | $ | 44,785 | $ | 44,785 | $ | - | $ | - | |||||||||||||||||
Money market funds | 13,321 | - | - | - | 13,321 | 13,321 | - | - | |||||||||||||||||||||||||
Certificates of deposit | 12,657 | - | - | - | 12,657 | - | 3,160 | 9,497 | |||||||||||||||||||||||||
Marketable securities: | - | ||||||||||||||||||||||||||||||||
Corporate securities | 10,837 | - | (26 | ) | - | 10,811 | - | 6,229 | 4,582 | ||||||||||||||||||||||||
Federal agency securities | 9,512 | - | (10 | ) | - | 9,502 | - | 5,009 | 4,493 | ||||||||||||||||||||||||
Municipal securities | 15,037 | 15 | (3 | ) | - | 15,049 | - | 10,359 | 4,690 | ||||||||||||||||||||||||
Total marketable securities | 35,386 | 15 | (39 | ) | - | 35,362 | - | 21,597 | 13,765 | ||||||||||||||||||||||||
$ | 106,149 | $ | 15 | $ | (39 | ) | $ | - | $ | 106,125 | $ | 58,106 | $ | 24,757 | $ | 23,262 | |||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | 31-Mar-15 | ||||||||||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 28,448 | $ | 28,452 | |||||||||||||||||||||||||||||
Due after one year through 5 years | 11,915 | 11,915 | |||||||||||||||||||||||||||||||
Due after 5 years through 10 years | - | - | |||||||||||||||||||||||||||||||
Due after 10 years | - | - | |||||||||||||||||||||||||||||||
$ | 40,363 | $ | 40,367 | ||||||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] | 31-Mar-15 | ||||||||||||||||||||||||||||||||
Less Than 12 Months | Greater Than 12 Months | ||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||||||||||
Corporate securities | $ | 8,897 | $ | (11 | ) | $ | - | $ | - | ||||||||||||||||||||||||
Federal agency securities | 2,499 | (1 | ) | 998 | (2 | ) | |||||||||||||||||||||||||||
Municipal securities | 1,848 | (2 | ) | - | - | ||||||||||||||||||||||||||||
$ | 13,244 | $ | (14 | ) | $ | 998 | $ | (2 | ) |
Note_4_Fair_Value_Measurement_
Note 4 - Fair Value Measurement (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurement at Reporting Date | ||||||||||||||||
March 31, | Quoted Prices in active Markets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||
2015 | (Level 1) | (Level 3) | |||||||||||||||
Marketable securities: | |||||||||||||||||
Corporate securities | $ | 9,701 | $ | - | $ | 9,701 | $ | - | |||||||||
Federal agency securities | 11,009 | - | 11,009 | - | |||||||||||||
Municipal securities | 19,657 | - | 19,657 | - | |||||||||||||
Total assets measured at fair value | $ | 40,367 | $ | - | $ | 40,367 | $ | - | |||||||||
Fair Value Measurement at Reporting Date | |||||||||||||||||
December 31, | Quoted Prices in active Markets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||
2014 | (Level 1) | (Level 3) | |||||||||||||||
Marketable securities: | |||||||||||||||||
Corporate securities | $ | 10,811 | $ | - | $ | 10,811 | $ | - | |||||||||
Federal agency securities | 9,502 | - | 9,502 | - | |||||||||||||
Municipal securities | 15,049 | - | 15,049 | - | |||||||||||||
Total assets measured at fair value | $ | 35,362 | $ | - | $ | 35,362 | $ | - |
Note_5_Inventories_Tables
Note 5 - Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Inventory, Current [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Finished goods | $ | 29,865 | $ | 30,998 | |||||
Work-in-process | 5,186 | 4,316 | |||||||
Raw materials and supplies | 3,677 | 2,785 | |||||||
Total inventories | 38,728 | 38,099 | |||||||
Less: non-current work-in-process | (3,492 | ) | (3,318 | ) | |||||
$ | 35,236 | $ | 34,781 |
Note_6_Commitments_and_Conting1
Note 6 - Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes Tables | |||||
Long-term Purchase Commitment [Table Text Block] | Years ending December 31, | ||||
2015 | - | ||||
2016 | - | ||||
2017 | 8,450 | ||||
2018 | 11,150 | ||||
2019 | 13,850 | ||||
Thereafter | 16,290 | ||||
Total | $ | 49,740 |
Note_7_Stockbased_Compensation1
Note 7 - Stock-based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Research and development | $ | 341 | $ | 327 | |||||||||||||
General and administrative | 3,379 | 2,129 | |||||||||||||||
Total cost of stock-based compensation | $ | 3,720 | $ | 2,456 | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted | ||||||||||||||||
Weighted | Average | Aggregate | |||||||||||||||
Average | Remaining | Intrinsic | |||||||||||||||
Number of | Exercise | Contractual | Value | ||||||||||||||
Shares | Price | Term (in years) | (in millions) | ||||||||||||||
Vested and exercisable as of December 31, 2014 | 1,330,360 | $ | 7.9 | 7.2 | $ | 45.6 | |||||||||||
Outstanding as of December 31, 2014 | 3,853,581 | $ | 15.14 | ||||||||||||||
Granted | 141,000 | $ | 57.45 | ||||||||||||||
Cancelled | (80,595 | ) | $ | 31.79 | |||||||||||||
Exercised | (317,241 | ) | $ | 9.86 | |||||||||||||
Outstanding as of March 31, 2015 | 3,596,745 | $ | 16.89 | 8.1 | $ | 148.3 | |||||||||||
Vested and exercisable as of March 31, 2015 | 1,296,883 | $ | 8.92 | 7.1 | $ | 63.8 |
Note_8_Net_Income_Per_Share_Ta
Note 8 - Net Income Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Historical net income per share - Basic | |||||||||
Numerator: | |||||||||
Net income | $ | 8,023 | $ | 7,658 | |||||
Denominator: | |||||||||
Weighted average number of common shares outstanding | 35,458,414 | 33,566,416 | |||||||
Basic net income per common share | $ | 0.23 | $ | 0.23 | |||||
Historical net income per share - Diluted | |||||||||
Numerator: | |||||||||
Net income | $ | 8,023 | $ | 7,658 | |||||
Denominator: | |||||||||
Weighted average number of common shares outstanding | 35,458,414 | 33,566,416 | |||||||
Effect of dilutive stock options | 2,000,745 | 3,336,162 | |||||||
Weighted average number of common shares outstanding | 37,459,159 | 36,902,578 | |||||||
Diluted net income per common share | $ | 0.21 | $ | 0.21 |
Note_9_Product_Lines_Concentra1
Note 9 - Product Lines, Concentration of Credit Risk and Significant Customers (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Revenue from External Customers by Products and Services [Table Text Block] | Net Revenue by Product Line | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Subsys | $ | 70,540 | $ | 40,654 | |||||
Dronabinol SG Capsule | 230 | 982 | |||||||
Total net revenue | $ | 70,770 | $ | 41,636 | |||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Percent of Revenue by Route to Market | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Pharmaceutical wholesalers | 100 | % | 98 | % | |||||
Generic pharmaceutical distributors | 0 | % | 2 | % | |||||
100 | % | 100 | % |
Note_2_Revenue_Recognition_Det
Note 2 - Revenue Recognition (Details Textual) | 3 Months Ended |
Mar. 31, 2015 | |
Subsys [Member] | |
Shelf Life of Product from Date of Manufacture | 3 years |
Mylan Pharmaceuticals, Inc [Member] | Minimum [Member] | |
Royalty Obligation as Percentage of Net Sales | 10.00% |
Mylan Pharmaceuticals, Inc [Member] | Maximum [Member] | |
Royalty Obligation as Percentage of Net Sales | 20.00% |
Mylan Pharmaceuticals, Inc [Member] | |
Cash Discount, Percent | 2.00% |
Note_3_Shortterm_and_Longterm_2
Note 3 - Short-term and Long-term Investments (Details Textual) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Short-term Investments | $31,386,000 | $24,757,000 |
Long-term Investments | 22,891,000 | 23,262,000 |
Available-for-sale Securities [Member] | ||
Short-term Investments | 31,386,000 | |
Long-term Investments | $22,891,000 |
Note_3_Shortterm_and_Longterm_3
Note 3 - Short-term and Long-term Investments - Summary of Investments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Amortized Cost | $124,347,000 | $106,149,000 |
Fair Value | 124,351,000 | 106,125,000 |
Cash and Cash Equivalents | 70,074,000 | 58,106,000 |
Short-term Investments | 31,386,000 | 24,757,000 |
Long-term Investments | 22,891,000 | 23,262,000 |
Unrealized Losses | -16,000 | -39,000 |
Unrealized Gains | 20,000 | 15,000 |
Cash [Member] | ||
Amortized Cost | 52,771,000 | 44,785,000 |
Fair Value | 52,771,000 | 44,785,000 |
Cash and Cash Equivalents | 52,771,000 | 44,785,000 |
Money Market Funds [Member] | ||
Amortized Cost | 16,924,000 | 13,321,000 |
Fair Value | 16,924,000 | 13,321,000 |
Cash and Cash Equivalents | 16,924,000 | 13,321,000 |
Certificates of Deposit [Member] | ||
Amortized Cost | 14,289,000 | 12,657,000 |
Fair Value | 14,289,000 | 12,657,000 |
Short-term Investments | 3,313,000 | 3,160,000 |
Long-term Investments | 10,976,000 | 9,497,000 |
Corporate Debt Securities [Member] | ||
Amortized Cost | 9,712,000 | 10,837,000 |
Fair Value | 9,701,000 | 10,811,000 |
Short-term Investments | 5,870,000 | 6,229,000 |
Long-term Investments | 3,831,000 | 4,582,000 |
Unrealized Losses | -11,000 | -26,000 |
US Government Agencies Debt Securities [Member] | ||
Amortized Cost | 11,008,000 | 9,512,000 |
Fair Value | 11,009,000 | 9,502,000 |
Short-term Investments | 6,007,000 | 5,009,000 |
Long-term Investments | 5,002,000 | 4,493,000 |
Unrealized Losses | -3,000 | -10,000 |
Unrealized Gains | 4,000 | |
Municipal Bonds [Member] | ||
Amortized Cost | 19,643,000 | 15,037,000 |
Fair Value | 19,657,000 | 15,049,000 |
Cash and Cash Equivalents | 379,000 | |
Short-term Investments | 16,196,000 | 10,359,000 |
Long-term Investments | 3,082,000 | 4,690,000 |
Unrealized Losses | -2,000 | -3,000 |
Unrealized Gains | 16,000 | 15,000 |
Marketable Securities [Member] | ||
Amortized Cost | 40,363,000 | 35,386,000 |
Fair Value | 40,367,000 | 35,362,000 |
Cash and Cash Equivalents | 379,000 | |
Short-term Investments | 28,073,000 | 21,597,000 |
Long-term Investments | 11,915,000 | 13,765,000 |
Unrealized Losses | -16,000 | -39,000 |
Unrealized Gains | $20,000 | $15,000 |
Note_3_Shortterm_and_Longterm_4
Note 3 - Short-term and Long-term Investments - Amortized Cost and Estimated Fair Value of Securities (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Marketable securities: | |
Due in one year or less | $28,448 |
Due in one year or less | 28,452 |
Due after one year through 5 years | 11,915 |
Due after one year through 5 years | 11,915 |
40,363 | |
$40,367 |
Note_3_Shortterm_and_Longterm_5
Note 3 - Short-term and Long-term Investments - Gross Unrealized Losses (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Less Than 12 Months Fair Value | $13,244 |
Less Than 12 Months Unrealized Loss | -14 |
Greater Than 12 Months Fair Value | 998 |
Greater Than 12 Months Unrealized Loss | -2 |
Corporate Debt Securities [Member] | |
Less Than 12 Months Fair Value | 8,897 |
Less Than 12 Months Unrealized Loss | -11 |
US Government Agencies Debt Securities [Member] | |
Less Than 12 Months Fair Value | 2,499 |
Less Than 12 Months Unrealized Loss | -1 |
Greater Than 12 Months Fair Value | 998 |
Greater Than 12 Months Unrealized Loss | -2 |
Municipal Bonds [Member] | |
Less Than 12 Months Fair Value | 1,848 |
Less Than 12 Months Unrealized Loss | ($2) |
Note_4_Fair_Value_Measurement_1
Note 4 - Fair Value Measurement - Investments Measured at Fair Value on a Recurring Basis (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Available-for-sale securities | $40,367 | $35,362 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities | 9,701 | 10,811 |
Corporate Debt Securities [Member] | ||
Available-for-sale securities | 9,701 | 10,811 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities | 11,009 | 9,502 |
US Government Agencies Debt Securities [Member] | ||
Available-for-sale securities | 11,009 | 9,502 |
Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities | 19,657 | 15,049 |
Municipal Bonds [Member] | ||
Available-for-sale securities | 19,657 | 15,049 |
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities | $40,367 | $35,362 |
Note_5_Inventories_Components_
Note 5 - Inventories - Components of Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finished goods | $29,865 | $30,998 |
Work-in-process | 5,186 | 4,316 |
Raw materials and supplies | 3,677 | 2,785 |
Total inventories | 38,728 | 38,099 |
Less: non-current work-in-process | -3,492 | -3,318 |
$35,236 | $34,781 |
Note_6_Commitments_and_Conting2
Note 6 - Commitments and Contingencies (Details Textual) (Pending Litigation [Member], Kottayil vs. Insys Pharma, Inc. [Member], USD $) | Mar. 31, 2015 |
Pending Litigation [Member] | Kottayil vs. Insys Pharma, Inc. [Member] | |
Estimated Litigation Liability, Current | $8,000,000 |
Note_6_Commitments_and_Conting3
Note 6 - Commitments and Contingencies - Future Minimum Purchase Commitments (Details) (USD $) | Mar. 31, 2015 |
Years ending December 31, | |
2015 | $0 |
2016 | 0 |
2017 | 8,450,000 |
2018 | 11,150,000 |
2019 | 13,850,000 |
Thereafter | 16,290,000 |
Total | $49,740,000 |
Note_7_Stockbased_Compensation2
Note 7 - Stock-based Compensation (Details Textual) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $34,418,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 328 days | |
Proceeds from Stock Options Exercised | 3,127,000 | 2,543,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $4,069,000 |
Note_7_Stockbased_Compensation3
Note 7 - Stock-based Compensation - Stock-based Compensation Expense (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Allocated share-based compensation expense | $3,720 | $2,456 |
Research and Development Expense [Member] | ||
Allocated share-based compensation expense | 341 | 327 |
General and Administrative Expense [Member] | ||
Allocated share-based compensation expense | $3,379 | $2,129 |
Note_7_Stockbased_Compensation4
Note 7 - Stock-based Compensation - Stock Option Activity (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Vested and exercisable as of December 31, 2014 (in shares) | 1,296,883 | 1,330,360 |
Vested and exercisable as of December 31, 2014 (in dollars per share) | $8.92 | $7.90 |
Vested and exercisable as of December 31, 2014 | 7 years 36 days | 7 years 73 days |
Vested and exercisable as of December 31, 2014 | $63.80 | $45.60 |
Outstanding as of December 31, 2014 (in shares) | 3,596,745 | 3,853,581 |
Outstanding as of December 31, 2014 (in dollars per share) | $16.89 | $15.14 |
Granted (in shares) | 141,000 | |
Granted (in dollars per share) | $57.45 | |
Cancelled (in shares) | -80,595 | |
Cancelled (in dollars per share) | $31.79 | |
Exercised (in shares) | -317,241 | |
Exercised (in dollars per share) | $9.86 | |
Outstanding as of March 31, 2015 | 8 years 36 days | |
Outstanding as of March 31, 2015 | $148.30 |
Note_8_Net_Income_Per_Share_De
Note 8 - Net Income Per Share (Details Textual) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 792,252 | 292,275 |
Note_8_Net_Income_Per_Share_Co
Note 8 - Net Income Per Share - Computation of Basic and Diluted Net Income (Loss) Per Common Share (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Historical net income per share - Basic | ||
Net income | $8,023,000 | $7,658,000 |
Basic (in shares) | 35,458,414 | 33,566,416 |
Basic net income per common share (in dollars per share) | $0.23 | $0.23 |
Historical net income per share - Diluted | ||
Net income | $8,023,000 | $7,658,000 |
Weighted average number of common shares outstanding (in shares) | 35,458,414 | 33,566,416 |
Effect of dilutive stock options (in shares) | 2,000,745 | 3,336,162 |
Weighted average number of common shares outstanding (in shares) | 37,459,159 | 36,902,578 |
Diluted net income per common share (in dollars per share) | $0.21 | $0.21 |
Note_9_Product_Lines_Concentra2
Note 9 - Product Lines, Concentration of Credit Risk and Significant Customers (Details Textual) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Number of Product Lines | 2 | ||
Concentration Risk, Percentage | 100.00% | 100.00% | |
Pharmaceutical Wholesalers [Member] | Product Shipments [Member] | Customer One [Member] | |||
Concentration Risk, Percentage | 28.00% | 39.00% | |
Pharmaceutical Wholesalers [Member] | Product Shipments [Member] | Customer Two [Member] | |||
Concentration Risk, Percentage | 23.00% | 18.00% | |
Pharmaceutical Wholesalers [Member] | Product Shipments [Member] | Customer Three [Member] | |||
Concentration Risk, Percentage | 19.00% | 16.00% | |
Pharmaceutical Wholesalers [Member] | Product Shipments [Member] | Customer Four [Member] | |||
Concentration Risk, Percentage | 18.00% | 14.00% | |
Pharmaceutical Wholesalers [Member] | Product Shipments [Member] | |||
Concentration Risk, Number of Customers | 4 | 4 | |
Pharmaceutical Wholesalers [Member] | Accounts Receivable [Member] | Customer One [Member] | |||
Concentration Risk, Percentage | 29.00% | 26.00% | |
Pharmaceutical Wholesalers [Member] | Accounts Receivable [Member] | Customer Two [Member] | |||
Concentration Risk, Percentage | 28.00% | 24.00% | |
Pharmaceutical Wholesalers [Member] | Accounts Receivable [Member] | Customer Three [Member] | |||
Concentration Risk, Percentage | 24.00% | 23.00% | |
Pharmaceutical Wholesalers [Member] | Accounts Receivable [Member] | Customer Four [Member] | |||
Concentration Risk, Percentage | 14.00% | ||
Pharmaceutical Wholesalers [Member] | Accounts Receivable [Member] | |||
Concentration Risk, Number of Customers | 3 | 4 |
Note_9_Product_Lines_Concentra3
Note 9 - Product Lines, Concentration of Credit Risk and Significant Customers - Summary of Net Revenue by Product Line and Percentages (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | $70,770 | $41,636 |
Subsys [Member] | ||
Revenues | 70,540 | 40,654 |
Dronabinol Sg Capsule [Member] | ||
Revenues | $230 | $982 |
Note_9_Product_Lines_Concentra4
Note 9 - Product Lines, Concentration of Credit Risk and Significant Customers - Percentage of Revenue by Route to Market (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Concentration Risk Percentage | 100.00% | 100.00% |
Pharmaceutical Wholesalers [Member] | Sales Revenue, Product Line [Member] | Product Concentration Risk [Member] | ||
Concentration Risk Percentage | 100.00% | 98.00% |
Generic Pharmaceutical Distributor [Member] | Sales Revenue, Product Line [Member] | Product Concentration Risk [Member] | ||
Concentration Risk Percentage | 0.00% | 2.00% |
Note_10_Related_Party_Transact1
Note 10 - Related Party Transactions (Details Textual) (Board of Directors Chairman [Member], USD $) | 1 Months Ended |
Mar. 31, 2015 | |
Board of Directors Chairman [Member] | |
Annual Consulting Fee | $300,000 |
Note_11_Subsequent_Event_Detai
Note 11 - Subsequent Event (Details Textual) (USD $) | 0 Months Ended | ||
5-May-15 | Mar. 31, 2015 | Dec. 31, 2014 | |
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 | |
Subsequent Event [Member] | |||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 | ||
Stock Issued during Period Per Share, Stock Split | 1 | ||
Common Stock, Par or Stated Value Per Share | $0.01 |