Alkermes (ALKS) 10-Q 30 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 27, 2015
Document and Entity Information
Entity Registrant Name	Alkermes plc.
Entity Central Index Key	1,520,262
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		149,398,549
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 196,893	$ 224,064
Investments - short-term	579,877	407,102
Receivables, net	135,782	151,551
Inventory	38,801	51,357
Prepaid expenses and other current assets	50,424	29,289
Deferred tax assets-current	15,185	13,430
Total current assets	1,016,962	876,793
PROPERTY, PLANT AND EQUIPMENT, NET	239,258	265,740
INTANGIBLE ASSETS - NET	407,599	479,412
GOODWILL	92,873	94,212
CONTINGENT CONSIDERATION	59,100
INVESTMENTS - LONG-TERM	55,589	170,480
OTHER ASSETS	43,295	34,635
TOTAL ASSETS	1,914,676	1,921,272
CURRENT LIABILITIES:
Accounts payable and accrued expenses	125,722	121,258
Long-term debt-short-term	6,750	6,750
Deferred revenue-short-term	1,746	2,574
Total current liabilities	134,218	130,582
LONG-TERM DEBT	348,056	351,220
OTHER LONG-TERM LIABILITIES	7,805	11,801
DEFERRED TAX LIABILITIES, NET-LONG-TERM	12,747	18,918
DEFERRED REVENUE-LONG-TERM	12,859	11,914
Total liabilities	$ 515,685	$ 524,435
COMMITMENTS AND CONTINGENCIES (Note 15)
SHAREHOLDERS' EQUITY:
Preferred shares, par value, $0.01 per share; 50,000,000 shares authorized; zero issued and outstanding at June 30, 2015 and December 31, 2014, respectively
Ordinary shares, par value, $0.01 per share; 450,000,000 shares authorized; 150,581,367 and 148,545,150 shares issued; 149,304,016 and 147,538,519 shares outstanding at June 30, 2015 and December 31, 2014, respectively	$ 1,503	$ 1,482
Treasury shares, at cost (1,277,351 and 1,006,631 shares at June 30, 2015 and December 31, 2014, respectively)	(49,384)	(32,052)
Additional paid-in capital	2,038,700	1,942,878
Accumulated other comprehensive loss	(2,725)	(3,136)
Accumulated deficit	(589,103)	(512,335)
Total shareholders' equity	1,398,991	1,396,837
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,914,676	$ 1,921,272

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Preferred stock shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock shares, authorized	50,000,000	50,000,000
Preferred stock shares, issued	0	0
Preferred stock shares, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	150,581,367	148,545,150
Common stock, shares outstanding	149,304,016	147,538,519
Treasury stock shares	1,277,351	1,006,631

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REVENUES:
Manufacturing and royalty revenues	$ 113,162	$ 130,366	$ 241,906	$ 241,646
Product sales, net	37,172	21,595	68,309	38,674
Research and development revenue	1,036	1,463	2,369	3,316
Total revenues	151,370	153,424	312,584	283,636
EXPENSES:
Cost of goods manufactured and sold (exclusive of amortization of acquired intangible assets shown below)	30,418	43,290	70,392	82,129
Research and development	87,882	67,207	158,160	119,347
Selling, general and administrative	71,539	50,663	134,589	93,213
Amortization of acquired intangible assets	14,052	15,089	29,272	27,665
Total expenses	203,891	176,249	392,413	322,354
OPERATING LOSS	(52,521)	(22,825)	(79,829)	(38,718)
OTHER INCOME, NET:
Interest income	795	323	1,455	834
Interest expense	(3,315)	(3,385)	(6,603)	(6,741)
Gain on Gainesville Transaction	9,911		9,911
Increase in the fair value of contingent consideration	1,500		1,500
Other income (expense), net	585	518	374	(1,332)
Gain on sale of property, plant and equipment		12,285		12,285
Gain on sale of investment in Acceleron Pharma Inc.		15,296		15,296
Total other income, net	9,476	25,037	6,637	20,342
(LOSS) INCOME BEFORE INCOME TAXES	(43,045)	2,212	(73,192)	(18,376)
PROVISION (BENEFIT) FOR INCOME TAXES	3,064	(1,523)	3,574	2,243
NET (LOSS) INCOME	$ (46,109)	$ 3,735	$ (76,766)	$ (20,619)
(LOSS) EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ (0.31)	$ 0.03	$ (0.52)	$ (0.14)
Diluted (in dollars per share)	$ (0.31)	$ 0.02	$ (0.52)	$ (0.14)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic (in shares)	148,867	144,913	148,480	144,140
Diluted (in shares)	148,867	154,300	148,480	144,140
COMPREHENSIVE LOSS
Net (loss) income	$ (46,109)	$ 3,735	$ (76,766)	$ (20,619)
Unrealized gains (losses) on marketable securities, net of tax:
Holding (losses) gains, net of tax of $(39), $6,174, $170 and $7,627, respectively	(80)	4,540	409	2,009
Reclassification of unrealized gains to realized gains		(15,296)		(15,296)
COMPREHENSIVE LOSS	$ (46,189)	$ (7,021)	$ (76,357)	$ (33,906)

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Holding (losses) gains, net of tax	$ (39)	$ 6,174	$ 170	$ 7,627

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (76,766)	$ (20,619)
Adjustments to reconcile net loss to cash flows from operating activities:
Depreciation and amortization	43,108	47,486
Share-based compensation expense	39,206	32,758
Deferred income taxes	(21,624)	(10,664)
Excess tax benefit from share-based compensation	(16,506)	(6,984)
Gain on Gainesville Transaction	(9,911)
Increase in fair value of contingent consideration	(1,500)
Gain on sale of property, plant and equipment	(104)	(12,160)
Gain on sale of investment of Acceleron Pharma Inc.		(15,296)
Other non-cash charges	(435)	9,965
Changes in assets and liabilities:
Receivables	3,249	(5,162)
Inventory, prepaid expenses and other assets	7,012	(19,714)
Accounts payable and accrued expenses	21,138	3,693
Deferred revenue	(788)	(1,304)
Other long-term liabilities	592	3,306
Cash flows (used in) provided by operating activities	(13,329)	5,305
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions of property, plant and equipment	(24,755)	(11,438)
Proceeds from the sale of equipment	40	14,361
Net proceeds from the Gainesville Transaction	50,241
Purchases of investments	(269,447)	(433,203)
Sales and maturities of investments	212,143	184,446
Cash flows used in investing activities	(31,778)	(245,834)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of ordinary shares, net		248,406
Proceeds from the issuance of ordinary shares under share-based compensation arrangements	21,837	21,821
Excess tax benefit from share-based compensation	16,506	6,984
Employee taxes paid related to net share settlement of equity awards	(17,032)	(12,546)
Principal payments of long-term debt	(3,375)	(3,376)
Cash flows provided by financing activities	17,936	261,289
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(27,171)	20,760
CASH AND CASH EQUIVALENTS - Beginning of period	224,064	167,562
CASH AND CASH EQUIVALENTS - End of period	196,893	188,322
Non-cash investing and financing activities:
Purchased capital expenditures included in accounts payable and accrued expenses	4,480	$ 1,491
Fair value of warrants received as part of Gainesville Transaction	2,123
Fair value of contingent consideration received as part of Gainesville Transaction	$ 57,600

THE COMPANY

THE COMPANY	6 Months Ended
	Jun. 30, 2015
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
THE COMPANY	1. THE COMPANY Alkermes is a fully integrated, global biopharmaceutical company that applies its scientific expertise and proprietary technologies to research, develop and commercialize, both with partners and on our own, pharmaceutical products that are designed to address unmet medical needs of patients in major therapeutic areas. We have a diversified portfolio of commercial drug products and a clinical pipeline of product candidates that address central nervous system (“CNS”) disorders such as schizophrenia, depression, addiction and multiple sclerosis. Headquartered in Dublin, Ireland, Alkermes has a research and development (“R&D”) center in Waltham, Massachusetts; a research and manufacturing facility in Athlone, Ireland; and a manufacturing facility in Wilmington, Ohio.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements of the Company for the three and six months ended June 30, 2015 and 2014 are unaudited and have been prepared on a basis substantially consistent with the audited financial statements for the year ended December 31, 2014 . The year-end condensed consolidated balance sheet data, which is presented for comparative purposes, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S.”) (commonly referred to as “GAAP”). In the opinion of management, the condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, that are necessary to state fairly the results of operations for the reported periods. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Alkermes, which are contained in the Company’s Annual Report, which has been filed with the SEC. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. Principles of Consolidation The condensed consolidated financial statements include the accounts of Alkermes plc and its wholly owned subsidiaries as disclosed in Note 2, Summary of Significant Accounting Policies, within the “Notes to Consolidated Financial Statements” accompanying its Annual Report. Intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in accordance with GAAP requires management to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates and judgments and methodologies, including those related to revenue recognition and related allowances, its collaborative relationships, clinical trial expenses, the valuation of inventory, impairment and amortization of intangibles and long-lived assets, share-based compensation, income taxes including the valuation allowance for deferred tax assets, valuation of contingent consideration, valuation of investments, litigation and restructuring charges. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Segment Information The Company operates as one business segment, which is the business of developing, manufacturing and commercializing medicines designed to yield better therapeutic outcomes and improve the lives of patients with serious diseases. The Company’s chief decision maker, the Chairman and Chief Executive Officer, reviews the Company’s operating results on an aggregate basis and manages the Company’s operations as a single operating unit. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard-setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In April 2014, the FASB adopted guidance that amends the requirements for reporting discontinued operations. Under the amendment, only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results will be reported as discontinued operations in the financial statements. Currently, many disposals, some of which may be routine in nature and not a change in an entity's strategy, are reported in discontinued operations. The Company adopted this guidance on January 1, 2015. In June 2014, the FASB issued guidance that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. Existing GAAP does not contain explicit guidance on how to account for these share-based payments. The new guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Entities have the option of prospectively applying the guidance to awards granted or modified after the effective date or retrospectively applying the guidance to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements. The guidance becomes effective for the Company in its year ending December 31, 2016, and early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In January 2015, the FASB issued guidance that simplifies income statement presentation by eliminating the concept of extraordinary items. The guidance becomes effective for the Company in its year ending December 31, 2016 and is not expected to have an impact on the Company’s consolidated financial statements. In April 2015, the FASB issued guidance simplifying the presentation of debt issuance costs. To simplify presentation of debt issuance costs, the amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance becomes effective for the Company in its year ending December 31, 2016, and early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. The guidance becomes effective for the Company in its year ending December 31, 2018, and the Company could early adopt the standard for its year ending December 31, 2017. The Company is currently assessing the impact that this standard will have on its consolidated financial statements.

DIVESTITURE

DIVESTITURE	6 Months Ended
	Jun. 30, 2015
DIVESTITURE
DIVESTITURE	3. DIVESTITURE On March 7, 2015, the Company entered into a definitive agreement to sell the Gainesville, GA facility, the related manufacturing and royalty revenue associated with products manufactured at the facility, and the rights to IV/IM and parenteral forms of Meloxicam to Recro Pharma, Inc. (“Recro”) and Recro Pharma LLC (together with Recro, the “Purchasers”). The sale was completed on April 10, 2015 and, under the ter ms of the agreement, Recro paid the Compan y $54.0 million in cash and issued warrants to purchase an aggregate of 350,000 shares of Recro common stock at a per share exercise price of $19.46 , which was two times the closing price of Recro’s common stock on the day prior to closing. The Company is also eligible to receive low double-digit royalties on net sales of IV/IM and parenteral forms of Meloxicam and up to $120.0 million in milestone payments upon the achievement of certain regulatory and sales milestones related to IV/IM and parenteral forms of Meloxicam. The gain on the Gainesville Transaction was determined as follows: April 10, 2015 (In thousands) Sales Proceeds: Cash $ Fair value of warrants Fair value of contingent consideration Total consideration received $ Less net assets sold Less transaction costs Gain on Gainesville Transaction $ The Company recorded the gain on the Gainesville Transaction within the accompanying condensed consolidated statement of operations and comprehensive loss. The Company determined that the sale of assets in con nection with the Gainesville Transaction did not constitute a strategic shift and that it did not and will not have a major effect on its operations and financial results. Accordingly, the operations from the Gainesville Transaction are not reported in discontinued operations. During the three and six months ended June 30, 2015 , the Gainesville, GA facility and associated intellectual property (“IP”) generated income before income taxes of $2.4 million and $7.6 million, respectively, and generated income before income taxes of $7.8 million and $16.4 million during the three and six months ended June 30, 2014 , respectively. The Company determined the value of the Gainesville Transaction’s contingent consideration using the following valuation approaches: · The fair value of the two regulatory milestones were estimated based on applying the likelihood of achieving the regulatory milestone and applying a discount rate from the expected time the milestone occurs to the balance sheet date. The Company expects the regulatory milestone events to occur within the next two and three years, respectively, and used a discount rate of 4.2% and 4.9% , respectively, for each of these events. · To estimate the fair value of future royalties on net sales of the product, the Company assessed the likelihood of the product being approved for sale and expected future sales given approval and IP protection. The Company then discounted these expected payments using a discount rate of 15.9% , which the Company believes captures a market participant’s view of the risk associated with the expected payments. · The sales milestones were determined through the use of a real options approach, where net sales are simulated in a risk-neutral world. To employ this methodology, the Company used a risk-adjusted expected growth rate based on its assessments of expected growth in net sales of the approved product, adjusted by an appropriate factor capturing their respective correlation with the market. A resulting expected (probability-weighted) milestone payment was then discounted at a cost of debt plus an alpha, which ranged from 11.3% to 12.2% . At June 30, 2015, the Company determined that the value of the Gainesville Transaction’s contingent consideration increased to $59.1 million due primarily to a shorter time to payment on the milestones and royalties included in the contingent consideration. The $1.5 million increase was recorded as “Change in the fair value of contingent consideration” in the three months ended June 30, 2015 in the accompanying condensed consolidated statements of operations and comprehensive lo ss. The warrants the Company received to purchase 350,000 shares of Recro common stock were determined to have a fair value of $2.1 million on the closing date of the transaction. At June 30, 2015, the Company determined that the value of these warrants had increased to $3.0 million and are being recorded within other long-term assets in the accompanying condensed consolidated balance sheets. The company used a Black-Scholes model with the following assumptions to determine the fair value of these warrants at June 30, 2015: Closing stock price at June 30, 2015 $ Warrant strike price $ Expected term (years) Risk-free rate % Volatility % The increase in the fair value of the warrants of $0.9 million during the three months ended June 30, 2015 was recorded within other income (expense), net in the accompanying condensed consolidated statements of operations and comprehensive loss.

INVESTMENTS

INVESTMENTS	6 Months Ended
	Jun. 30, 2015
INVESTMENTS
INVESTMENTS	4. INVESTMENT S Investments consisted of the following: Gross Unrealized Losses Amortized Less than Greater than Estimated Cost Gains One Year One Year Fair Value (In thousands) June 30, 2015 Short-term investments: Available-for-sale securities: U.S. government and agency debt securities $ $ $ $ — $ Corporate debt securities — International government agency debt securities — Total short-term investments — Long-term investments: Available-for-sale securities: U.S. government and agency debt securities — — Corporate debt securities — — International government agency debt securities — — — — Held-to-maturity securities: Certificates of deposit — — — Total long-term investments — — Total investments $ $ $ $ — $ December 31, 2014 Short-term investments: Available-for-sale securities: U.S. government and agency debt securities $ $ $ $ — $ Corporate debt securities — International government agency debt securities — Total short-term investments — Long-term investments: Available-for-sale securities: U.S. government and agency debt securities — Corporate debt securities — — International government agency debt securities — — Held-to-maturity securities: Certificates of deposit — — — Total long-term investments — Total investments $ $ $ $ $ The proceeds from the sales and maturities of marketable securities, which were primarily reinvested and resulted in realized gains and losses, were as follows: Six Months Ended June 30, (In thousands) 2015 2014 Proceeds from the sales and maturities of marketable securities $ $ Realized gains $ $ Realized losses $ $ The Company’s available-for-sale and held-to-maturity securities at June 30, 2015 had contractual maturities in the following periods: Av ailable -for-sale Held-to-maturity Amortized Estimated Amortized Estimated (In thousands) Cost Fair Value Cost Fair Value Within 1 year $ $ $ $ After 1 year through 5 years — — Total $ $ $ $ At June 30, 2015 , the Company believed that the unrealized losses on its available-for-sale investments were temporary. The investments with unrealized losses consisted primarily of U.S. government and agency debt securities and corporate debt securities. In making the determination that the decline in fair value of these securities was temporary, the Company considered various factors, including but not limited to: the length of time each security was in an unrealized loss position; the extent to which fair value was less than cost; financial condition and near-term prospects of the issuers; and the Company’s intent not to sell these securities and the assessment that it is more likely than not that the Company would not be required to sell these securities before the recovery of their amortized cost basis. In May 2014, the Company entered into an agreement whereby it is committed to provide up to €7.4 million to a partnership, Fountain Healthcare Partners II, L.P. of Ireland (“Fountain”), which was created to carry on the business of investing exclusively in companies and businesses engaged in healthcare, pharmaceutical and life sciences sectors. The Company’s commitment represents approximately 7% of the partnership’s total funding, and the Company is accounting for its investment in Fountain under the equity method. At June 30, 2015 , the Company had made payments of, and its investment is equal to, $1. 5 million ( €1.2 million), which is included within “Other assets” in the accompanying condensed consolidated balance sheets. During the three and six months ended June 30, 2015 , the Company recorded a reduction in its investment in Fountain of less than $0.1 million and $0. 1 million, respectively, which represented the Company’s proportional share of Fountain’s net losses for these periods.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2015
FAIR VALUE
FAIR VALUE MEASUREMENTS	5. FAIR VALUE MEASUREMENTS The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value: June 30, (In thousands) 2015 Level 1 Level 2 Level 3 Assets: U.S. government and agency debt securities $ $ $ $ — Corporate debt securities — — International government agency debt securities — — Contingent consideration — — Common stock warrants — — Total $ $ $ $ December 31, 2014 Level 1 Level 2 Level 3 Assets: U.S. government and agency debt securities $ $ $ $ — Corporate debt securities — — International government agency debt securities — — Total $ $ $ $ — The Company transfers its financial assets and liabilities, measured at fair value on a recurring basis, between the fair value hierarchies at the end of each reporting period. There were no transfers of any securities between the fair value hierarchies during the six months ended June 30, 2015 . The Company’s investments in U.S. government and agency debt securities, international government agency debt securities and corporate debt securities classified as Level 2 within the fair value hierarchy were initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing market-observable data. The market-observable data included reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. The Company validated the prices developed using the market-observable data by obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming that the relevant markets are active. The following table is a rollforward of the fair value of the Company’s assets whose fair value was determined using Level 3 inputs at June 30, 2015 : (In thousands) Fair Value Balance, January 1, 2015 $ — Acquisition of contingent consideration Acquisition of common stock warrants Increase in fair value of contingent consideration Increase in fair value of warrants Balance, June 30, 2015 $ The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued expenses approximate fair value due to their short-term nature. The fair value of the remaining financial instruments not currently recognized at fair value on the Company’s condensed consolidated balance sheets consisted of the $300.0 million, seven -year term loan bearing interest at LIBOR plus 2.75% with a LIBOR floor of 0.75% (“Term Loan B-1”) and the $75.0 million, four -year term loan bearing interest at LIBOR plus 2.75% , with no LIBOR floor (“Term Loan B-2” and together with Term Loan B-1, the “Term Loan Facility”). The estimated fair value of these term loans, which was based on quoted market price indications (Level 2 in the fair value hierarchy) and may not be representative of actual values that could have been or will be realized in the future, was as follows at June 30, 2015 : Carrying Estimated (In thousands) Value Fair Value Term Loan B-1 $ $ Term Loan B-2 $ $

INVENTORY

INVENTORY	6 Months Ended
	Jun. 30, 2015
INVENTORY
INVENTORY	6. INVENTORY Inventory is stated at the lower of cost or market value. Cost is determined using the first-in, first-out method. Inventory consisted of the following: June 30, December 31, (In thousands) 2015 2014 Raw materials $ $ Work in process Finished goods Total inventory $ $

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	6 Months Ended
	Jun. 30, 2015
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT	7. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: June 30, December 31, (In thousands) 2015 2014 Land $ $ Building and improvements Furniture, fixture and equipment Leasehold improvements Construction in progress Subtotal Less: accumulated depreciation Total property, plant and equipment, net $ $ In April 2015, as part of the Gainesville Transaction, the Company sold certain of its land, buildings, equipment and construction in progress that had a carrying value of $38.3 million. In April 2014, the Company sold certain of its land, buildings and equipment at its Athlone, Ireland facility that had a carrying value of $2.2 million in exchange for $17.5 million. $3.0 million of the sale proceeds will remain in escrow pending the completion of certain additional services the Company is obligated to perform, and will be recognized as “Gain on sale of property, plant and equipment” in the statements of operations and comprehensive loss as the services are provided.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2015
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	8. GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets consisted of the following: Six Months Ended June 30, 2015 (In thousands) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Goodwill $ $ — $ Finite-lived intangible assets: Collaboration agreements 12 $ $ $ NanoCrystal technology 13 OCR technologies 12 Total $ $ $ In April 2015, as part of the Gainesville Transaction, the Company reduced the value of its goodwill by $1.3 million and sold and/or licensed certain of its collaboration agreements with third-party pharmaceutical companies and Oral Controlled Release (“OCR”) technology which had a gross carrying amount of $34.1 million and $23.7 million, respectively. Based on the Company’s most recent analysis, amortization of intangible assets included within its condensed consolidated balance sheet at June 30, 2015 is expected to be approximately $60.0 million, $60.0 million, $60.0 million, $60.0 million and $55. 0 million in the years ending December 31, 2015 through 2019, respectively. Although the Company believes such available information and assumptions are reasonable, given the inherent risks and uncertainties underlying its expectations regarding such future revenues, there is the potential for the Company’s actual results to vary significantly from such expectations. If revenues are projected to change, the related amortization of the intangible assets will change in proportion to the change in revenues.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	6 Months Ended
	Jun. 30, 2015
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	9. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following: June 30, December 31, (In thousands) 2015 2014 Accounts payable $ $ Accrued compensation Accrued product reserves Accrued other Total accounts payable and accrued expenses $ $

RESTRUCTURING

RESTRUCTURING	6 Months Ended
	Jun. 30, 2015
RESTRUCTURING
RESTRUCTURING	10. RESTRUCTURING On April 4, 2013, the Company approved a restructuring plan at its Athlone, Ireland manufacturing facility consistent with the evolution of the Company’s product portfolio and designed to improve operational performance for the future. The restructuring plan calls for the Company to terminate manufacturing services for certain older products that are expected to no longer be economically practicable to produce due to decreasing demand from its customers resulting from generic competition. The Company expects to continue to generate revenues from the manufacturing of these products through the year ending December 31, 2015. As a result of the termination of these services, the Company also implemented a corresponding reduction in headcount of up to 130 employees. In connection with this restructuring plan, during the twelve months ended March 31, 2013, the Company recorded a restructuring charge of $12.3 million, which consisted of severance and outplacement services. The Company has paid in cash $11.8 million and recorded an adjustment of less than $0.1 million due to changes in foreign currency since inception of this restructuring plan. Restructuring activity during the six months ended June 30, 2015 was as follows: Severance and (In thousands) Outplacement Services Balance, January 1, 2015 $ Payments Adjustments Balance, June 30, 2015 $ At June 30, 2015 and December 31, 2014 , this restructuring accrual was included within “Accounts payable and accrued expenses,” in the accompanying condensed consolidated balance sheets.

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2015
LONG-TERM DEBT
LONG-TERM DEBT	11. LONG-TERM DEBT Long-term debt consisted of the following: June 30, December 31, (In thousands) 2015 2014 Term Loan B-1, due September 25, 2019 $ $ Term Loan B-2, due September 25, 2016 Total Less: current portion Long-term debt $ $

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2015
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	12. SHARE-BASED COMPENSATION Share-based compensation expense consisted of the following: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2015 2014 2015 2014 Cost of goods manufactured and sold $ $ $ $ Research and development Selling, general and administrative Total share-based compensation expense $ $ $ $ At June 30, 2015 and December 31, 2014 , $0.7 million and $0.8 million, respectively, of share-based compensation cost was capitalized and recorded as “Inventory” in the accompanying condensed consolidated balance sheets.

(LOSS) EARNINGS PER SHARE

(LOSS) EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2015
(LOSS) EARNINGS PER SHARE
(LOSS) EARNINGS PER SHARE	13. (LOSS) EARNINGS PER SHARE Basic (loss) earnings per ordinary share is calculated based upon net (loss) income available to holders of ordinary shares divided by the weighted average number of shares outstanding. For the calculation of diluted (loss) earnings per ordinary share, the Company uses the weighted average number of ordinary shares outstanding, as adjusted for the effect of potential outstanding shares, including stock options and restricted stock units. Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2015 2014 2015 2014 Numerator: Net (loss) income $ $ $ $ Denominator: Weighted average number of ordinary shares outstanding Effect of dilutive securities: Stock options — — — Restricted stock units — — — Dilutive ordinary share equivalents — — — Shares used in calculating diluted loss per share The following potential ordinary equivalent shares have not been included in the net (loss) income per ordinary share calculation because the effect would have been anti-dilutive: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2015 2014 2015 2014 Stock options Restricted stock units Total

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2015
INCOME TAXES
INCOME TAXES	14. INCOME TAXES The Company recorded an income tax provision of $ 3.1 million and $ 3.6 million for the three and six months ended June 30, 2015 , respectively, and an income tax benefit and income tax provision of $1.5 million and $2.2 million for the three and six months ended June 30, 2014 , respectively. In all of these periods, the income tax provision or benefit primarily relates to U.S. Federal and state taxes on income. The Company records a deferred tax asset or liability based on the difference between the financial statement and tax basis of its assets and liabilities, as measured by enacted jurisdictional tax rates assumed to be in effect when these differences reverse. At June 30, 2015 , the Company maintained a valuation allowance against certain of its U.S. and foreign deferred tax assets. The Company evaluates, at each reporting period, the need for a valuation allowance on its deferred tax assets on a jurisdiction by jurisdiction basis.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	15. COMMITMENTS AND CONTINGENCIES From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of business. For example, the Company is currently involved in various Paragraph IV lawsuits in the U.S. and other proceedings outside of the U.S. involving its patents in respect of TRICOR, MEGACE ES and AMPYRA. The Company is not aware of any such proceedings or claims that it believes will have, individually or in the aggregate, a material adverse effect on its business, financial condition, cash flows and results of operations.

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of the Company for the three and six months ended June 30, 2015 and 2014 are unaudited and have been prepared on a basis substantially consistent with the audited financial statements for the year ended December 31, 2014 . The year-end condensed consolidated balance sheet data, which is presented for comparative purposes, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S.”) (commonly referred to as “GAAP”). In the opinion of management, the condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, that are necessary to state fairly the results of operations for the reported periods. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Alkermes, which are contained in the Company’s Annual Report, which has been filed with the SEC. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Alkermes plc and its wholly owned subsidiaries as disclosed in Note 2, Summary of Significant Accounting Policies, within the “Notes to Consolidated Financial Statements” accompanying its Annual Report. Intercompany accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of the Company’s condensed consolidated financial statements in accordance with GAAP requires management to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates and judgments and methodologies, including those related to revenue recognition and related allowances, its collaborative relationships, clinical trial expenses, the valuation of inventory, impairment and amortization of intangibles and long-lived assets, share-based compensation, income taxes including the valuation allowance for deferred tax assets, valuation of contingent consideration, valuation of investments, litigation and restructuring charges. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.
Segment Information	Segment Information The Company operates as one business segment, which is the business of developing, manufacturing and commercializing medicines designed to yield better therapeutic outcomes and improve the lives of patients with serious diseases. The Company’s chief decision maker, the Chairman and Chief Executive Officer, reviews the Company’s operating results on an aggregate basis and manages the Company’s operations as a single operating unit.
New Accounting Pronouncements	New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard-setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In April 2014, the FASB adopted guidance that amends the requirements for reporting discontinued operations. Under the amendment, only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results will be reported as discontinued operations in the financial statements. Currently, many disposals, some of which may be routine in nature and not a change in an entity's strategy, are reported in discontinued operations. The Company adopted this guidance on January 1, 2015. In June 2014, the FASB issued guidance that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. Existing GAAP does not contain explicit guidance on how to account for these share-based payments. The new guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Entities have the option of prospectively applying the guidance to awards granted or modified after the effective date or retrospectively applying the guidance to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements. The guidance becomes effective for the Company in its year ending December 31, 2016, and early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In January 2015, the FASB issued guidance that simplifies income statement presentation by eliminating the concept of extraordinary items. The guidance becomes effective for the Company in its year ending December 31, 2016 and is not expected to have an impact on the Company’s consolidated financial statements. In April 2015, the FASB issued guidance simplifying the presentation of debt issuance costs. To simplify presentation of debt issuance costs, the amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance becomes effective for the Company in its year ending December 31, 2016, and early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. The guidance becomes effective for the Company in its year ending December 31, 2018, and the Company could early adopt the standard for its year ending December 31, 2017. The Company is currently assessing the impact that this standard will have on its consolidated financial statements.

DIVESTITURE (Tables)

DIVESTITURE (Tables)	6 Months Ended
	Jun. 30, 2015
DIVESTITURE
Summary of assets and liabilities disposed of in Gainesville Transaction	April 10, 2015 (In thousands) Sales Proceeds: Cash $ Fair value of warrants Fair value of contingent consideration Total consideration received $ Less net assets sold Less transaction costs Gain on Gainesville Transaction $
Schedule of assumptions used to determine the fair value of the warrants	Closing stock price at June 30, 2015 $ Warrant strike price $ Expected term (years) Risk-free rate % Volatility %

INVESTMENTS (Tables)

INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
INVESTMENTS
Schedule of investments	Gross Unrealized Losses Amortized Less than Greater than Estimated Cost Gains One Year One Year Fair Value (In thousands) June 30, 2015 Short-term investments: Available-for-sale securities: U.S. government and agency debt securities $ $ $ $ — $ Corporate debt securities — International government agency debt securities — Total short-term investments — Long-term investments: Available-for-sale securities: U.S. government and agency debt securities — — Corporate debt securities — — International government agency debt securities — — — — Held-to-maturity securities: Certificates of deposit — — — Total long-term investments — — Total investments $ $ $ $ — $ December 31, 2014 Short-term investments: Available-for-sale securities: U.S. government and agency debt securities $ $ $ $ — $ Corporate debt securities — International government agency debt securities — Total short-term investments — Long-term investments: Available-for-sale securities: U.S. government and agency debt securities — Corporate debt securities — — International government agency debt securities — — Held-to-maturity securities: Certificates of deposit — — — Total long-term investments — Total investments $ $ $ $ $
Proceeds from the sales and maturities of marketable securities, plus the resulting realized gains and losses	Six Months Ended June 30, (In thousands) 2015 2014 Proceeds from the sales and maturities of marketable securities $ $ Realized gains $ $ Realized losses $ $
The cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity	The Company’s available-for-sale and held-to-maturity securities at June 30, 2015 had contractual maturities in the following periods: Av ailable -for-sale Held-to-maturity Amortized Estimated Amortized Estimated (In thousands) Cost Fair Value Cost Fair Value Within 1 year $ $ $ $ After 1 year through 5 years — — Total $ $ $ $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE
Summary of the Company's assets and liabilities measured at fair value on a recurring basis	June 30, (In thousands) 2015 Level 1 Level 2 Level 3 Assets: U.S. government and agency debt securities $ $ $ $ — Corporate debt securities — — International government agency debt securities — — Contingent consideration — — Common stock warrants — — Total $ $ $ $ December 31, 2014 Level 1 Level 2 Level 3 Assets: U.S. government and agency debt securities $ $ $ $ — Corporate debt securities — — International government agency debt securities — — Total $ $ $ $ —
Schedule of rollforward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs	(In thousands) Fair Value Balance, January 1, 2015 $ — Acquisition of contingent consideration Acquisition of common stock warrants Increase in fair value of contingent consideration Increase in fair value of warrants Balance, June 30, 2015 $
Estimated fair value of term loans	The estimated fair value of these term loans, which was based on quoted market price indications (Level 2 in the fair value hierarchy) and may not be representative of actual values that could have been or will be realized in the future, was as follows at June 30, 2015 : Carrying Estimated (In thousands) Value Fair Value Term Loan B-1 $ $ Term Loan B-2 $ $

INVENTORY (Tables)

INVENTORY (Tables)	6 Months Ended
	Jun. 30, 2015
INVENTORY
Schedule of inventories	June 30, December 31, (In thousands) 2015 2014 Raw materials $ $ Work in process Finished goods Total inventory $ $

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2015
PROPERTY, PLANT AND EQUIPMENT
Schedule of property, plant and equipment	June 30, December 31, (In thousands) 2015 2014 Land $ $ Building and improvements Furniture, fixture and equipment Leasehold improvements Construction in progress Subtotal Less: accumulated depreciation Total property, plant and equipment, net $ $

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2015
GOODWILL AND INTANGIBLE ASSETS
Schedule of goodwill and intangible assets	Six Months Ended June 30, 2015 (In thousands) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Goodwill $ $ — $ Finite-lived intangible assets: Collaboration agreements 12 $ $ $ NanoCrystal technology 13 OCR technologies 12 Total $ $ $

ACCOUNTS PAYABLE AND ACCRUED 29

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	6 Months Ended
	Jun. 30, 2015
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Schedule of accounts payable and accrued expenses	June 30, December 31, (In thousands) 2015 2014 Accounts payable $ $ Accrued compensation Accrued product reserves Accrued other Total accounts payable and accrued expenses $ $

RESTRUCTURING (Tables)

RESTRUCTURING (Tables)	6 Months Ended
	Jun. 30, 2015
RESTRUCTURING
Schedule of restructuring charges recorded	Severance and (In thousands) Outplacement Services Balance, January 1, 2015 $ Payments Adjustments Balance, June 30, 2015 $

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2015
LONG-TERM DEBT
Schedule of long-term debt	June 30, December 31, (In thousands) 2015 2014 Term Loan B-1, due September 25, 2019 $ $ Term Loan B-2, due September 25, 2016 Total Less: current portion Long-term debt $ $

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2015
SHARE-BASED COMPENSATION
Schedule of share-based compensation expense	Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2015 2014 2015 2014 Cost of goods manufactured and sold $ $ $ $ Research and development Selling, general and administrative Total share-based compensation expense $ $ $ $

(LOSS) EARNINGS PER SHARE (Tabl

(LOSS) EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
(LOSS) EARNINGS PER SHARE
Schedule of weighted average number of ordinary shares outstanding, as adjusted for the effect of potential outstanding shares, including stock options and restricted stock units	Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2015 2014 2015 2014 Numerator: Net (loss) income $ $ $ $ Denominator: Weighted average number of ordinary shares outstanding Effect of dilutive securities: Stock options — — — Restricted stock units — — — Dilutive ordinary share equivalents — — — Shares used in calculating diluted loss per share
Schedule of anti-dilutive potential common equivalent shares excluded from calculation of net (loss) income per share	Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2015 2014 2015 2014 Stock options Restricted stock units Total

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Jun. 30, 2015item
Segment Information
Number of business segments	1

DIVESTITURE (Detail)

DIVESTITURE (Detail) $ / shares in Units, $ in Thousands	Apr. 10, 2015USD ($)multipliershares	Jun. 30, 2015USD ($)$ / shares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item$ / shares	Jun. 30, 2014USD ($)	Mar. 07, 2015USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discount rate (as a percent)				15.90%
CONTINGENT CONSIDERATION		$ 59,100		$ 59,100
Increase in the fair value of contingent consideration		1,500		1,500
Increase in fair value of warrants				900
Estimated consideration recieved
Fair value of warrants				2,123
Gain on Gainesville Transaction		9,911		$ 9,911
Minimum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discount rate (as a percent)				11.30%
Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discount rate (as a percent)				12.20%
Gainesville Transaction
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of regulatory milsestones | item				2
Fair value of warrants		3,000		$ 3,000		$ 2,100
Gainesville Transaction | Minimum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Period of milestone events occurence				2 years
Discount rate (as a percent)				4.20%
Gainesville Transaction | Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Period of milestone events occurence				3 years
Discount rate (as a percent)				4.90%
Gainesville Transaction | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of times closing price of common stock on prior day | multiplier	2
Maximum milestone payment receivable	$ 120,000
Disposal group income before income tax		$ 2,400	$ 7,800	$ 7,600	$ 16,400
Warrants received | shares	350,000
Estimated consideration recieved
Fair value of warrants	$ 2,123
Fair value of contingent consideration	57,600
Total consideration received	113,733
Less: net assets sold	(101,373)
Less: transaction costs	(2,449)
Cash	54,010
Gain on Gainesville Transaction	$ 9,911
Recro | Gainesville Transaction
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Closing stock price at June 30, 2015 | $ / shares		$ 12.92		$ 12.92
Warrant strike price | $ / shares		$ 19.46		$ 19.46
Expected term (years)				6 years 9 months 11 days
Risk-free rate (as a percent)				2.07%
Volatility (as a percent)				80.00%

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Held-to-maturity securities:
Estimated Fair Value	$ 1,619
Total investments
Amortized Cost	635,168	$ 577,864
Gross Unrealized Gains	480	127
Gross Unrealized Losses, Less than One Year	(182)	(368)
Gross Unrealized Losses, Greater than One Year		(41)
Estimated Fair Value	635,466	577,582
Short-term investments
Available-for-sale securities:
Amortized Cost	579,490	407,061
Gross Unrealized Gains	480	127
Gross Unrealized Losses, Less than One Year	(93)	(86)
Estimated Fair Value	579,877	407,102
Short-term investments | U.S. government and agency debt securities
Available-for-sale securities:
Amortized Cost	342,084	226,387
Gross Unrealized Gains	394	88
Gross Unrealized Losses, Less than One Year	(12)	(15)
Estimated Fair Value	342,466	226,460
Short-term investments | Corporate debt securities
Available-for-sale securities:
Amortized Cost	220,406	140,900
Gross Unrealized Gains	75	26
Gross Unrealized Losses, Less than One Year	(80)	(66)
Estimated Fair Value	220,401	140,860
Short-term investments | International government agency debt securities
Available-for-sale securities:
Amortized Cost	17,000	39,774
Gross Unrealized Gains	11	13
Gross Unrealized Losses, Less than One Year	(1)	(5)
Estimated Fair Value	17,010	39,782
Long-term investments
Available-for-sale securities:
Amortized Cost	54,059	169,184
Gross Unrealized Losses, Less than One Year	(89)	(282)
Gross Unrealized Losses, Greater than One Year		(41)
Estimated Fair Value	53,970	168,861
Total investments
Total long-term investments	55,678	170,803
Total long-term investments	55,589	170,480
Long Term Investments	55,589	170,480
Long-term investments | Certificates of deposit
Held-to-maturity securities:
Amortized Cost	1,619	1,619
Estimated Fair Value	1,619	1,619
Long-term investments | U.S. government and agency debt securities
Available-for-sale securities:
Amortized Cost	24,996	100,429
Gross Unrealized Losses, Less than One Year	(32)	(196)
Gross Unrealized Losses, Greater than One Year		(40)
Estimated Fair Value	24,964	100,193
Long-term investments | Corporate debt securities
Available-for-sale securities:
Amortized Cost	19,068	61,187
Gross Unrealized Losses, Less than One Year	(48)	(84)
Estimated Fair Value	19,020	61,103
Long-term investments | International government agency debt securities
Available-for-sale securities:
Amortized Cost	9,995	7,568
Gross Unrealized Losses, Less than One Year	(9)	(2)
Gross Unrealized Losses, Greater than One Year		(1)
Estimated Fair Value	$ 9,986	$ 7,565

INVESTMENTS (Details 2)

INVESTMENTS (Details 2) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
INVESTMENTS
Proceeds from the sales and maturities of marketable securities		$ 212,143	$ 184,446
Realized gains		16	15,304
Realized losses		$ 1	10
Realized gain on sale of investment in Acceleron Pharma Inc.	$ 15,296		$ 15,296

INVESTMENTS (Details 3)

INVESTMENTS (Details 3) $ in Thousands	Jun. 30, 2015USD ($)
Available-for-sale, Amortized Cost
Within 1 year	$ 342,340
After 1 year through 5 years	291,209
Total	633,549
Available-for-sale, Estimated Fair Value
Within 1 year	342,368
After 1 year through 5 years	291,479
Total	633,847
Held-to-maturity, Amortized Cost
Within 1 year	1,619
Total	1,619
Held-to-maturity, Estimated Fair Value
Within 1 year	1,619
Total	$ 1,619

INVESTMENTS (Details 4)

INVESTMENTS (Details 4) - Fountain Healthcare Partners II, LP of Ireland € in Millions, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2015EUR (€)	Jun. 30, 2015USD ($)	May. 31, 2014EUR (€)
Equity method investment
Carrying value of equity investment			€ 1.2	$ 1.5
Amount committed					€ 7.4
Funding commitment as percentage of partnership's total funding					7.00%
Maximum
Equity method investment
Reduction in carrying value of investment of the entity, which represents the Company's share of investee's net losses | $	$ 0.1	$ 0.1

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details ) - Recurring basis - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Level 1
Fair value
Assets, Total	$ 220,286	$ 189,030
Level 2
Fair value
Assets, Total	413,560	386,933
Level 3
Fair value
Assets, Total	62,099
Total
Fair value
Assets, Total	695,945	575,963
U.S. government and agency debt securities | Level 1
Fair value
Assets, Total	220,286	189,030
U.S. government and agency debt securities | Level 2
Fair value
Assets, Total	147,144	137,623
U.S. government and agency debt securities | Total
Fair value
Assets, Total	367,430	326,653
Corporate debt securities | Level 2
Fair value
Assets, Total	239,421	201,963
Corporate debt securities | Total
Fair value
Assets, Total	239,421	201,963
International government agency debt securities | Level 2
Fair value
Assets, Total	26,995	47,347
International government agency debt securities | Total
Fair value
Assets, Total	26,995	$ 47,347
Contingent Consideration | Level 3
Fair value
Assets, Total	59,100
Contingent Consideration | Total
Fair value
Assets, Total	59,100
Equity securities | Level 3
Fair value
Assets, Total	2,999
Equity securities | Total
Fair value
Assets, Total	$ 2,999

FAIR VALUE MEASUREMENTS (Deta41

FAIR VALUE MEASUREMENTS (Details 2) - 6 months ended Jun. 30, 2015	USD ($)item
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Transfers between the levels	$ 0
Number of investments transferred from level 2 to level 1 | item	0
Acquisition of Level 3 securities	$ 57,600,000
Balance at the end of the period	62,099,000
Fair Value Of Contingent Consideration
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Increase in fair value	1,500,000
Other income (expense)
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Increase in fair value	876,000
Warrant
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Acquisition of Level 3 securities	$ 2,123,000

FAIR VALUE MEASUREMENTS (Deta42

FAIR VALUE MEASUREMENTS (Details 3) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Estimated fair value of the Term Loans
Carrying Value	$ 354,806	$ 357,970
Term Loan B-1
Estimated fair value of the Term Loans
Fair value of remaining financial instruments not recognized at fair value	$ 300,000
Term loans maturity period	7 years
Variable interest rate base	LIBOR
Carrying Value	$ 290,167	291,476
Estimated Fair Value	291,569
Term Loan B-2
Estimated fair value of the Term Loans
Fair value of remaining financial instruments not recognized at fair value	$ 75,000
Term loans maturity period	4 years
Variable interest rate base	LIBOR
Carrying Value	$ 64,639	$ 66,494
Estimated Fair Value	$ 64,567
LIBOR | Term Loan B-1
Estimated fair value of the Term Loans
Interest rate added to base rate (as a percent)	2.75%
Interest rate, variable interest rate floor (as a percent)	0.75%
LIBOR | Term Loan B-2
Estimated fair value of the Term Loans
Interest rate added to base rate (as a percent)	2.75%
Interest rate, variable interest rate floor (as a percent)	0.00%

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
INVENTORY
Raw materials	$ 16,625	$ 21,101
Work in process	10,410	14,824
Finished goods	11,766	15,432
Total inventory	$ 38,801	$ 51,357

PROPERTY, PLANT AND EQUIPMENT44

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	1 Months Ended		6 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Property, plant and equipment
Subtotal			$ 400,483		$ 435,900
Less: accumulated depreciation			(161,225)		(170,160)
Total property, plant and equipment, net			239,258		265,740
Carrying value at the time of disposition	$ 38,300
Proceeds from sale of property, plant and equipment			40	$ 14,361
Athlone, Ireland manufacturing facility
Property, plant and equipment
Carrying value at the time of disposition		$ 2,200
Proceeds from sale of property, plant and equipment		17,500
Proceeds from sale of property, plant and equipment which remain in escrow account		$ 3,000
Land
Property, plant and equipment
Subtotal			5,866		8,163
Buildings and improvements
Property, plant and equipment
Subtotal			132,936		149,158
Furniture, fixtures and equipment
Property, plant and equipment
Subtotal			193,212		225,834
Leasehold improvements
Property, plant and equipment
Subtotal			13,067		12,971
Construction in progress
Property, plant and equipment
Subtotal			$ 55,402		$ 39,774

GOODWILL AND INTANGIBLE ASSET45

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Apr. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Intangible assets
Gross Carrying Amount		$ 92,873
Goodwill		92,873	$ 94,212
Finite-lived intangible assets:
Gross Carrying Amount		582,750
Accumulated Amortization		(175,151)
Net Carrying Amount		$ 407,599
Collaboration agreements
Intangible assets
Gross carrying amount of finite lived intangible assets sold	$ 34,100
Finite-lived intangible assets:
Weighted Amortizable Life		12 years
Gross Carrying Amount		$ 465,590
Accumulated Amortization		(144,721)
Net Carrying Amount		$ 320,869
NanoCrystal technology
Finite-lived intangible assets:
Weighted Amortizable Life		13 years
Gross Carrying Amount		$ 74,600
Accumulated Amortization		(15,758)
Net Carrying Amount		$ 58,842
OCR technologies
Intangible assets
Gross carrying amount of finite lived intangible assets sold	23,700
Finite-lived intangible assets:
Weighted Amortizable Life		12 years
Gross Carrying Amount		$ 42,560
Accumulated Amortization		(14,672)
Net Carrying Amount		$ 27,888
Gainesville Transaction
Intangible assets
Decrease in value of goodwill	$ 1,300

GOODWILL AND INTANGIBLE ASSET46

GOODWILL AND INTANGIBLE ASSETS (Details 2) $ in Millions	Jun. 30, 2015USD ($)
Expected amortization of intangible assets
2,015	$ 60
2,016	60
2,017	60
2,018	60
2,019	$ 55

ACCOUNTS PAYABLE AND ACCRUED 47

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable	$ 26,945	$ 32,335
Accrued compensation	29,113	36,854
Accrued product reserves	18,261	12,607
Accrued other	51,403	39,462
Total accounts payable and accrued expenses	$ 125,722	$ 121,258

RESTRUCTURING (Details)

RESTRUCTURING (Details) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2013item	Jun. 30, 2015USD ($)	Mar. 31, 2013USD ($)
Restructuring activity
Restructuring charge			$ 12,300
Cash paid for restructuring costs		$ 11,800
Foreign currency adjustment		100
Restructuring activity
Payments			$ (12,300)
Athlone, Ireland manufacturing facility | Maximum
Restructuring activity
Number of employees eliminated | item	130
Severance and outplacement services
Restructuring activity
Restructuring charge		743
Restructuring activity
Balance at beginning of the period		1,328
Payments		(743)
Adjustments		(116)
Balance at end of the period		$ 469

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Long-term debt
Total	$ 354,806	$ 357,970
Less: current portion	(6,750)	(6,750)
Long-term debt	348,056	351,220
Term Loan B-1
Long-term debt
Total	290,167	291,476
Term Loan B-2
Long-term debt
Total	$ 64,639	$ 66,494

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Share-based Compensation Expense
Total share-based compensation expense	$ 21,877	$ 19,338	$ 39,206	$ 32,758
Share based compensation cost capitalized			700		$ 800
Cost of goods manufactured and sold
Share-based Compensation Expense
Total share-based compensation expense	478	1,770	2,495	4,079
Research and development
Share-based Compensation Expense
Total share-based compensation expense	5,466	4,079	9,923	7,482
Selling, general and administrative
Share-based Compensation Expense
Total share-based compensation expense	$ 15,933	$ 13,489	$ 26,788	$ 21,197

(LOSS) EARNINGS PER SHARE (Deta

(LOSS) EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator:
Net (loss) income	$ (46,109)	$ 3,735	$ (76,766)	$ (20,619)
Denominator:
Weighted average number of ordinary shares outstanding	148,867	144,913	148,480	144,140
Effect of dilutive securities:
Dilutive ordinary share equivalents (in shares)		9,387
Shares used in calculating diluted loss per share	148,867	154,300	148,480	144,140
Stock options
Effect of dilutive securities:
Dilutive ordinary share equivalents (in shares)		8,067
Restricted stock units
Effect of dilutive securities:
Dilutive ordinary share equivalents (in shares)		1,320

(LOSS) EARNINGS PER SHARE (De52

(LOSS) EARNINGS PER SHARE (Details 2) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Denominator:
Anti-dilutive potential common equivalent shares excluded from calculation of net (loss) income per share	11,772	2,574	11,344	11,536
Stock options
Denominator:
Anti-dilutive potential common equivalent shares excluded from calculation of net (loss) income per share	9,643	1,879	9,175	9,644
Restricted stock units
Denominator:
Anti-dilutive potential common equivalent shares excluded from calculation of net (loss) income per share	2,129	695	2,169	1,892

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
INCOME TAXES
Income Tax Expense (Benefit)	$ 3,064	$ (1,523)	$ 3,574	$ 2,243