Zyla Life Sciences 10-Q/A 11 Jun 14 2014 Q1 Quarterly report (amended) Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	15-May-14
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'Egalet Corp	'
Entity Central Index Key	'0001586105	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	17,258,663
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$77,450,000	$15,700,000
Related party receivable	141,000	'
Prepaid expenses	659,000	1,774,000
Other receivables	231,000	231,000
Total current assets	78,481,000	17,705,000
Property and equipment, net	2,292,000	2,378,000
Intangible asset	209,000	209,000
Deposits and other assets	182,000	71,000
Total assets	81,164,000	20,363,000
Current liabilities:	'	'
Related party senior convertible debt, net of discount	'	17,209,000
Accounts payable	1,378,000	1,046,000
Accrued expenses	680,000	1,755,000
Deferred revenue	551,000	'
Other current liabilities	80,000	55,000
Total current liabilities	2,689,000	20,065,000
Deferred income tax liability	21,000	22,000
Deferred revenue - non-current portion	9,334,000	10,149,000
Total liabilities	12,044,000	30,236,000
Commitments and contingencies (Note 7)	'	'
Redeemable convertible preferred stock:	'	'
Redeemable convertible Series preferred stock	'	14,957,000
Stockholders' (deficit) equity:	'	'
Common stock-$0.01 par value and $0.001 par value at December 31,2013 and March 31,2014, respectively; 75,000,000 shares authorized at March 31,2014; 1,292,307 and 17,000,863 shares issued and outstanding at December 31, 2013 and March 31, 2014, respectively	17,000	13,000
Additional paid-in capital	114,189,000	7,431,000
Accumulated other comprehensive income	1,229,000	1,125,000
Accumulated deficit	-46,315,000	-33,399,000
Total stockholders' (deficit) equity	69,120,000	-24,830,000
Total liabilities, redeemable convertible preferred stock and stockholders' (deficit) equity	81,164,000	20,363,000
Redeemable convertible Series A-1 preferred stock	'	'
Redeemable convertible preferred stock:	'	'
Redeemable convertible Series preferred stock	'	1,443,000
Redeemable convertible Series A-2 preferred stock	'	'
Redeemable convertible preferred stock:	'	'
Redeemable convertible Series preferred stock	'	770,000
Redeemable convertible Series B preferred stock	'	'
Redeemable convertible preferred stock:	'	'
Redeemable convertible Series preferred stock	'	12,628,000
Redeemable convertible Series B-1 preferred stock	'	'
Redeemable convertible preferred stock:	'	'
Redeemable convertible Series preferred stock	'	$116,000

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Common stock, par value (in dollars per share)	$0.00	$0.01
Common stock, authorized	75,000,000	'
Common stock, issued	17,000,863	1,292,307
Common stock, outstanding	17,000,863	1,292,307
Redeemable convertible Series A-1 preferred stock	'	'
Redeemable convertible preferred stock, par value (in dollars per share)	'	$0.01
Redeemable convertible preferred stock, issued	'	1,406,894
Redeemable convertible preferred stock, outstanding	'	1,406,894
Redeemable convertible Series A-2 preferred stock	'	'
Redeemable convertible preferred stock, par value (in dollars per share)	'	$0.01
Redeemable convertible preferred stock, issued	'	593,106
Redeemable convertible preferred stock, outstanding	'	593,106
Redeemable convertible Series B preferred stock	'	'
Redeemable convertible preferred stock, par value (in dollars per share)	'	$0.01
Redeemable convertible preferred stock, issued	'	2,327,301
Redeemable convertible preferred stock, outstanding	'	2,327,301
Redeemable convertible Series B-1 preferred stock	'	'
Redeemable convertible preferred stock, par value (in dollars per share)	'	$0.01
Redeemable convertible preferred stock, issued	'	113,916
Redeemable convertible preferred stock, outstanding	'	113,916

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Consolidated Statements of Operations	'	'
Related party revenues	$256,000	'
Operating expenses:	'	'
General and administrative	3,269,000	855,000
Research and development	2,780,000	963,000
Total operating expenses	6,049,000	1,818,000
Loss from operations	-5,793,000	-1,818,000
Other (income) expense:	'	'
Interest expense	7,092,000	'
Gain on foreign currency exchange	-4,000	-22,000
Total nonoperating expenses	7,088,000	-22,000
Loss before provision for income taxes	-12,881,000	-1,796,000
Provision for income taxes	35,000	0
Net loss	($12,916,000)	($1,796,000)
Per share information:	'	'
Net loss per share of common stock, basic and diluted (in dollars per share)	($1.34)	($1.39)
Weighted average shares outstanding, basic and diluted (in shares)	9,638,260	1,292,307

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Loss (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Consolidated Statements of Comprehensive Loss	'	'
Net loss	($12,916,000)	($1,796,000)
Other comprehensive income (loss):	'	'
Foreign currency translation adjustments	104,000	-55,000
Comprehensive loss	($12,812,000)	($1,851,000)

Consolidated_Statements_of_Cha

Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' (Deficit) Equity (USD $)	Total	Redeemable Convertible Series A-1 preferred stock	Redeemable Convertible Series A-2 preferred stock	Redeemable Convertible Series B preferred stock	Redeemable Convertible Series B-1 preferred stock
Balance at beginning of the period at Dec. 31, 2013	$14,957,000	$1,443,000	$770,000	$12,628,000	$116,000
Balance at beginning of the period (in shares) at Dec. 31, 2013	'	1,406,894	593,106	2,327,301	113,916
Increase (Decrease) in Redeemable Convertible Preferred Stock	'	'	'	'	'
Issuance of common stock upon exchange of common stock and conversion of convertible preferred stock	'	($1,443,000)	($770,000)	($12,628,000)	($116,000)
Issuance of common stock upon exchange of common stock and conversion of convertible preferred stock (in shares)	'	-1,406,894	-593,106	-2,327,301	-113,916
Balance at end of the period at Mar. 31, 2014	'	'	'	'	'

Consolidated_Statements_of_Cha1

Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' (Deficit) Equity (USD $)	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Comprehensive Income
Balance at beginning of the period at Dec. 31, 2013	($24,830,000)	$13,000	$7,431,000	($33,399,000)	$1,125,000
Balance at beginning of the period (in shares) at Dec. 31, 2013	'	1,292,307	'	'	'
Increase (Decrease) in Stockholders' (Deficit) Equity	'	'	'	'	'
Issuance of common stock upon conversion of related party convertible debt	24,713,000	3,000	24,710,000	'	'
Issuance of common stock upon conversion of related party convertible debt (in shares)	'	2,585,745	'	'	'
Issuance of common stock upon exercise of common stock warrants	'	1,000	-1,000	'	'
Issuance of common stock upon exercise of common stock warrants (in shares)	'	600,000	'	'	'
Issuance of common stock in connection with initial public offering, net of offering costs of $6,502,000	51,459,000	5,000	51,454,000	'	'
Issuance of common stock in connection with initial public offering, net of offering costs of $6,502,000 (in shares)	'	4,830,000	'	'	'
Issuance of common stock upon exchange of common stock and conversion of convertible preferred stock	14,957,000	-7,000	14,964,000	'	'
Issuance of common stock upon exchange of common stock and conversion of convertible preferred stock (in shares)	'	5,329,451	'	'	'
Issuance of common stock to Shionogi, net of offering costs of $1,050,000	13,950,000	1,000	13,949,000	'	'
Issuance of common stock to Shionogi, net of offering costs of $1,050,000 (in shares)	'	1,250,000	'	'	'
Issuance of restricted shares of common	'	1,000	-1,000	'	'
Issuance of restricted shares of common (in shares)	'	1,113,360	'	'	'
Stock-based compensation expense	1,683,000	'	1,683,000	'	'
Foreign currency translation adjustment	104,000	'	'	'	104,000
Net loss	-12,916,000	'	'	-12,916,000	'
Balance at end of the period at Mar. 31, 2014	$69,120,000	$17,000	$114,189,000	($46,315,000)	$1,229,000
Balance at end of the period (in shares) at Mar. 31, 2014	'	17,000,863	'	'	'

Consolidated_Statements_of_Cha2

Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' (Deficit) Equity (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2014
Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' (Deficit) Equity	'
Common stock, par value (in dollars per share)	$0.00
Offering costs of issuance of common stock in connection with initial public offering	$6,502,000
Offering costs of issuance of common stock to Shionogi	$1,050,000

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating activities:	'	'
Net loss	($12,916,000)	($1,796,000)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	168,000	104,000
Stock-based compensation	1,683,000	'
Noncash interest	6,987,000	'
Deferred income taxes, net	-1,000	'
Changes in assets and liabilities:	'	'
Related party receivable	-140,000	'
Prepaid expenses	-459,000	1,000
Accounts payable	240,000	-856,000
Accrued expenses	-553,000	-7,000
Deferred revenue	-115,000	'
Other current liabilities	25,000	16,000
Net cash used in operating activities	-5,081,000	-2,538,000
Investing activities:	'	'
Payments for purchase of property and equipment	-85,000	'
Deposits for purchases of property and equipment	-111,000	-181,000
Net cash used in investing activities	-196,000	-181,000
Financing activities:	'	'
Proceeds from initial public offering, net of costs	53,124,000	'
Proceeds from issuance of common stock, net of costs	13,950,000	'
Net cash provided by financing activities	67,074,000	'
Effect of foreign currency translation on cash	-47,000	-43,000
Net increase (decrease) in cash and cash equivalents	61,750,000	-2,762,000
Cash and cash equivalents-beginning of period	15,700,000	3,404,000
Cash and cash equivalents-end of period	77,450,000	642,000
Non-cash financing activities:	'	'
Conversion of convertible preferred stock	14,957,000	'
Conversion of debt and interest into preferred stock	$24,713,000	'

Organization_and_Description_o

Organization and Description of the Business	3 Months Ended
	Mar. 31, 2014
Organization and Description of the Business	'
Organization and Description of the Business	'
	1. Organization and Description of the Business
	Egalet Corporation (the “Company” or “Egalet US”) is a specialty pharmaceutical company developing and planning to commercialize proprietary, abuse-deterrent pharmaceutical products for the treatment of pain and in other indications. The Company was incorporated in Delaware in August 2013 and until its initial public offering in February 2014, had nominal assets and no operations. Egalet Limited, incorporated in July 2010 in England and Wales, owned all of the Company’s current assets and operations and acquired them in July 2010 pursuant to an agreement to purchase the business and certain assets of Egalet A/S, which was founded under the laws of Denmark. This transaction was accounted for as a business combination. In November 2013, all of the issued and outstanding ordinary shares and preferred shares of Egalet Limited were exchanged for an identical number of shares of common stock and preferred stock of Egalet US, which resulted in Egalet Limited becoming a wholly-owned subsidiary of Egalet US. As Egalet Limited and Egalet US are entities under common control, the consolidated financial statements reflect the historical carrying values of Egalet Limited’s assets and liabilities and its results of operations as if they were consolidated for all periods presented. As a result of these transactions, the Company has a late-stage portfolio of product candidates that are being developed using the Company’s broad-based drug delivery platform specifically designed to resist manipulation, to prevent easy extraction and to deter the abuse of medications via known routes of abuse, including chewing, snorting, and injecting. The Company’s product candidates being developed using its technology offer a predictable and tailored pharmacokinetic profile, lack a significant food effect and resist the effect of alcohol dose dumping. The Company’s technology platform can be used with a broad range of opioids and non-opioids. The Company has filed patents to protect its inventions covering both the technology and product-specific patents.
	Initial Public Offering
	On February 11, 2014, 4,200,000 shares of common stock were sold on the Company’s behalf at an initial public offering (“offering”) price of $12.00 per share, for aggregate gross proceeds of $50.4 million. On March 7, 2014, in connection with the exercise by the underwriters of a portion of the over-allotment option granted to them as a part of the Company’s initial public offering, 630,000 additional shares of common stock were sold by the Company at the initial public offering price of $12.00 per share, for aggregate gross proceeds of approximately $7.6 million. In addition, as part of the initial public offering, the Company exchanged 1,292,307 shares of common stock with a par value of $0.01 per share for the same amount of shares of common stock with a par value of $0.001 per share and converted all of its Convertible Preferred Stock and Related Party Senior Convertible Debt into 5,329,451 and 2,585,745 shares of common stock, respectively. Also, Shionogi Limited (“Shionogi”), the Company’s collaboration partner, purchased 1,250,000 shares of the Company’s common stock in a separate private placement concurrent with the completion of the initial public offering at a price per share equal to $12.00 per share, for aggregate gross proceeds of $15.0 million. The sale of such shares has not and will not be registered under the Securities Act of 1933, as amended. In addition, the 2013 related party senior convertible debt holders automatically exercised 600,000 warrants for shares of common stock at an exercise price of $0.0083 per share.
	The Company paid to the underwriters underwriting discounts and commissions of approximately $5.1 million in connection with the offering, including discounts and commissions from the exercise of the over-allotment option. In addition, the Company incurred expenses of approximately $2.4 million in connection with the offering, which when added to the underwriting discounts and commissions paid by the Company, amounts to total expenses of approximately $7.5 million. Thus, the net proceeds to the Company from the initial public offering, after deducting underwriting discounts and commissions and offering expenses, were approximately $51.5 million. Additionally, after deducting the expenses related to the private placement with Shionogi, the net proceeds to the Company from the private placement were approximately $14.0 million.
	Liquidity
	The Company has incurred recurring operating losses since inception. As of March 31, 2014, the Company had an accumulated deficit of $46.3 million and will require substantial additional capital to fund its research and development. The net proceeds from the Company’s initial public offering, together with its preexisting cash and cash equivalents, will enable it to fund its operating expenses and capital expenditure requirements through the end of March 31, 2015. The Company anticipates operating losses to continue for the foreseeable future due to, among other things, costs related to research funding, development of its product candidates and its preclinical programs, and the development of its administrative organization. As the Company continues to incur losses, a transition to profitability is dependent upon the successful development, approval and commercialization of its product candidates and the achievement of a level of revenue adequate to support the Company’s cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital. Management intends to fund future operations through the sale of equity, debt financings or other sources, including potential additional collaborations. There can be no assurances, however, that additional funding will be available on terms acceptable to the Company, or at all.
	Forward Stock Split
	In connection with preparing for the initial public offering, the Company’s Board of Directors and stockholders approved a 1.2 to 1 forward stock split of the Company’s Common Stock. The forward stock split became effective on January 21, 2014. All share and per share amounts in the financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this forward stock split, including reclassifying an amount equal to the increase in par value of common stock to additional paid-in capital.

Summary_of_Significant_Account

Summary of Significant Accounting Policies and Basis of Accounting	3 Months Ended
	Mar. 31, 2014
Summary of Significant Accounting Policies and Basis of Accounting	'
Summary of Significant Accounting Policies and Basis of Accounting	'
	2. Summary of Significant Accounting Policies and Basis of Accounting
	Basis of Presentation
	The unaudited consolidated financial statements are prepared in conformity with U.S. GAAP for interim financial information. Certain information and footnotes normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q. The accompanying consolidated financial statements include the accounts of Egalet Limited and its wholly owned subsidiary, Egalet US, Inc. The Company’s consolidation policy requires the consolidation of entities where a controlling financial interest is held. All intercompany balances and transactions have been eliminated in consolidation.
	The accompanying consolidated Balance Sheet as of March 31, 2014, consolidated Statements of Operations and Comprehensive Loss and consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2014 and the Statement of Redeemable Convertible Preferred Stock and Stockholders’ (Deficit) Equity for the three months ended March 31, 2014 are unaudited. The interim unaudited financial statements have been prepared on the same basis as the annual audited financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2014 and the results of its operations, its comprehensive loss and its cash flows for the three months ended March 31, 2013 and 2014. The financial data and other information disclosed in these notes related to the three months ended March 31, 2013 and 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014, any other interim periods or any future year or period. These are unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2013 filed on March 31, 2014 with the SEC.
	The Company’s significant accounting policies are described in Note 2 of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Since the date of those financial statements, there have been no changes to the Company’s significant accounting policies, except where noted below.
	Reclassification
	Certain reclassifications were made to prior period amounts to conform to the current period presentation.
	Fair Value Measurements
	The carrying amounts reported in the Company’s consolidated financial statements for cash, accounts receivable, accounts payable, accrued liabilities, and notes payable approximate their respective fair values because of the short-term nature of these accounts.
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
	Fair value should be based on the assumptions that market participants would use when pricing an asset or liability and is based on a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices in active markets (observable inputs) and the lowest priority to the Company’s assumptions (unobservable inputs). Fair value measurements should be disclosed separately by level within the fair value hierarchy. For assets and liabilities recorded at fair value, it is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with established fair value hierarchy.
	Fair value measurements for assets and liabilities where there exists limited or no observable market data are based primarily upon estimates, and often are calculated based on the economic and competitive environment, the characteristics of the asset or liability and other factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability.
	Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values.
	Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as assets held for sale and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets.
	The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:
	Level 1—Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange.
	Level 2—Valuations for assets and liabilities that can be obtained from readily available pricing sources via independent providers for market transactions involving similar assets or liabilities. The Company’s principal markets for these securities are the secondary institutional markets, and valuations are based on observable market data in those markets.
	Level 3—Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and are not based on market exchange or dealer- or broker-traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.
	Level 3 valuations are for instruments that are not traded in active markets or are subject to transfer restrictions and may be adjusted to reflect illiquidity and/or non-transferability, with such adjustment generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.
	An adjustment to the pricing method used within either Level 1 or Level 2 inputs could generate a fair value measurement that effectively falls in a lower level in the hierarchy. The Company had no assets or liabilities classified as Level 1 or Level 2 as of December 31, 2013 and March 31, 2014 and there were no material re-measurements of fair value with respect to financial assets and liabilities, during those years, other than those assets and liabilities that are measured at fair value on a recurring basis. There were no transfers between Level 1 and Level 2 in any of the periods reported.
	Revenue Recognition
	During 2013, the Company entered into a collaborative research and license agreement. The terms of the agreement contain multiple deliverables which may include (i) licenses, (ii) research and development activities, and (iii) royalty and related commissions. In all instances, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, delivery has occurred or the services have been rendered, collectability of the resulting receivable is reasonably assured, and the Company has fulfilled its performance obligations under the contract. The Company has adopted the provisions of Accounting Standards Update (“ASU”) 2009-13, “Multiple-Deliverable Revenue Arrangements,” which amends ASC 605-25, and also adopted ASU 2010-17, “Revenue Recognition—Milestone Method.” In accordance with ASU 2009-13, the Company considered whether the deliverables under the arrangement represent separate units of accounting. In determining the units of accounting, management evaluates certain criteria, including whether the deliverables have stand-alone value. See Note 8. License and Colloboration Agreement for further discussion of the Company’s accounting for collaborative research and license agreement.
	Stock-Based Compensation
	The Company accounts for stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation—Stock Compensation (ASC 718), which requires the recognition of expense related to the fair value of stock-based compensation awards in the Statements of Operations and Comprehensive Loss.
	For stock options issued to employees and members of the Board for their services on the Board, the Company estimates the grant date fair value of each option using the Black-Scholes option-pricing model. The use of the Black- Scholes option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates, the value of the common stock and expected dividend yields of the common stock. For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense, net of estimated forfeitures, equal to the grant date fair value of stock options on a straight-line basis over the requisite service period, which is generally the vesting term. For awards subject to both performance and service-based vesting conditions, the Company recognizes stock-based compensation expense using the accelerated attribution method when it is probable that the performance condition will be achieved. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
	Share-based payments issued to non-employees are recorded at their fair values, and are periodically revalued as the equity instruments vest and are recognized as expense over the related service period in accordance with the provisions of ASC 718 and ASC Topic 505, Equity. See Note 6 for a discussion of the assumptions used by the Company in determining the grant date fair value of options granted under the Black-Scholes option pricing model, as well as a summary of the stock option activity under the Company’s stock-based compensation plan for the three months ended March 31, 2014.
	The stock-based compensation expense for restricted stock awards is determined based on the closing market price of the Company’s common stock on the grant date of the awards applied to the total number of awards that are anticipated to vest.
	Income Taxes
	Income taxes are recorded in accordance with ASC Topic 740, Income Taxes (ASC 740), which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
	The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of December 31, 2013 and March 31, 2014, the Company does not have any significant uncertain tax positions.
	Recent Accounting Pronouncements
	The Company does not anticipate the adoption of recently issued accounting standards to have a significant impact on its financial position, results of operations or cash flows.

Net_Loss_Per_Common_Share

Net Loss Per Common Share	3 Months Ended
	Mar. 31, 2014
Net Loss Per Common Share	'
Net Loss Per Common Share	'
	3. Net Loss Per Common Share
	The following table sets forth the computation of basic and diluted net loss per share for the periods indicated:
		Three Months Ended March 31,
		2013			2014
	Basic and diluted net loss per common share calculation:
	Net loss attributable to common stockholders	$	(1,796,000	)	$	(12,916,000	)
	Weighted average common shares outstanding	1,292,307			9,638,260
	Net loss per share of common stock—basic and diluted	$	(1.39	)	$	(1.34	)
	The following outstanding securities at March, 31, 2013 and 2014 have been excluded from the computation of diluted weighted shares outstanding, as they would have been anti-dilutive:
		March 31,
		2013		2014
	Redeemable convertible preferred stock	4,441,217		—
	Options outstanding	—		81,696
	Unvested restricted stock awards	—		1,113,360
	Total	4,441,217		1,195,056

Intangible_Asset

Intangible Asset	3 Months Ended
	Mar. 31, 2014
Intangible Asset	'
Intangible Asset	'
	4. Intangible Asset
	In connection with the acquisition of Egalet A/S, the Company recognized an in-process research and development (“IPR&D”) asset related to the drug delivery platform specifically designed to help deter physical abuse of pain medications. The IPR&D is considered an indefinite-lived intangible asset and is assessed for impairment annually or more frequently if impairment indicators exist. As of December 31, 2013 and March 31, 2014, the carrying value of IPR&D was $209,000, respectively.

Related_Party_Senior_Convertib

Related Party Senior Convertible Debt, Net of Discount	3 Months Ended
	Mar. 31, 2014
Related Party Senior Convertible Debt, Net of Discount	'
Related Party Senior Convertible Debt, Net of Discount	'
	5. Related Party Senior Convertible Debt, Net of Discount
	In April 2013, the Company entered into a $5.0 million convertible loan with several of its equity investors to provide the Company with funding to meet its short-term obligations. The loan bears interest at an annual rate of 6% and was originally scheduled to mature on December 31, 2013. During December 2013, the maturity date was extended to April 26, 2014. The loan will automatically convert into shares of common stock or convertible preferred series B or series B-1 stock, as applicable, upon (i) the closing of an initial public offering that yields a minimum of approximately $20 million in net proceeds to the Company at a per share price that values the Company at a minimum of $105.4 million (ii) the affirmative vote of at least sixty-five percent (65%) of the outstanding loan amount, or (iii) a change in control of the Company.
	In connection with the Company’s initial public offering on February 6, 2014 (see Note 1), the outstanding principal and interest of $5.0 million and $240,000, respectively, was converted into shares of the Company’s common stock.  For the three months ended March 31, 2014 the Company recognized interest expense of $35,000.
	On August 29, 2013, the Company entered into the 2013 Loan Agreement with several of its equity investors. The 2013 Loan Agreement was used to fund clinical and manufacturing development, working capital, and other general operational funding requirements. Upon entering into the 2013 Loan Agreement, the Company borrowed $10.0 million in debt proceeds. Borrowings under the 2013 Loan Agreement bear interest at an annual rate of 6% and mature on August 29, 2014. Subsequent to the maturity date, all outstanding principal and unpaid interest are due upon written request by lenders holding at least 66% of the principal amount outstanding which constitutes a lending super-majority. Prepayment of any borrowings, prior to maturity, is prohibited unless written approval from the lending super-majority is obtained.
	The 2013 Loan Agreement requires the lenders to convert any portion of the outstanding principal and interest in exchange for equity instruments upon the completion of an initial public offering that generates aggregate proceeds in excess of approximately $26.5 million (based on the exchange rate on August 29, 2013) (the “IPO Scenario”). In the event of a conversion under the IPO Scenario, the holders will obtain a number of shares of common stock at a conversion price equal to 50% of the offering price that was initially offered to the public.
	In connection with the 2013 Loan Agreement, the lenders received 600,000 warrants that will automatically be exercised immediately prior to consummation of the IPO, provided that such lender purchases a specified minimum amount of common stock in the IPO. Pursuant to the terms of the warrant agreement, the holders would be able to exercise their warrants for shares of common stock at a price of $0.0083 per share (based on the exchange rate on August 29, 2013).
	Immediately prior to completing its initial public offering on February 6, 2014 (See Note 1), the Company accelerated the recognition of the premium immediately prior to converting into equity.  The outstanding principal, premium and interest of $10.0 million, $10.0 million, and $275,000, respectively, were converted into shares of the Company’s common stock.  The unamortized debt discount balance of $802,000 was also converted.  For the three months ended March 31, 2014 the Company recognized interest expense of $7.1 million of which $7.0 million was related to the accretion of premiums and the amortization of debt discounts, respectively.
	In addition, the 2013 related party senior convertible debt holders automatically exercised warrants for 600,000 shares of common stock at an exercise price of $0.0083 per share in connection with the conversion of the senior convertible debt into shares of common stock.

Stockbased_Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2014
Stock-based Compensation	'
Stock-based Compensation	'
	6. Stock-based Compensation
	2013 Equity Incentive Plan
	In November 2013, the Company adopted its 2013 Stock-Based Incentive Plan (the “Plan”).  Pursuant to the Plan, the Company’s compensation committee is authorized to grant equity-based incentive awards to its directors, executive officers and other employees and service providers, including officers, employees and service providers of its subsidiaries and affiliates. The number of shares of common stock initially reserved for issuance under the Plan is 1,680,000, in the form of restricted stock and stock options. The amount, terms of grants and exercisability provisions are determined by the board of directors. The term of the options may be up to 10 years, and options are exercisable in cash or as otherwise determined by the board of directors. All options vest over time as stipulated in the individual award agreements.
	The estimated grant-date fair value of the Company’s share-based awards is amortized ratably over the awards’ service periods. Share-based compensation expense recognized was as follows:
		Three months ended
		March 31,
		2013			2014
	Research and development	$	—		$	527,000
	General and administrative	—			1,156,000
	Total stock-based compensation	$	—		$	1,683,000
	Options Granted in the 2013 Equity Incentive Plan
		Options Outstanding
		Number of		Weighted-Average			Weighted Average
		Shares		Exercise Price			Remaining
							Contractual
							Term (in years)
	Balance, December 31, 2013	—		—			—
	Granted	81,696		$	13.11
	Exercised	—		—
	Forfeitures	—		—
	Balance, March 31, 2014	81,696		$	13.11		9.92
	Vested or expected to vest at March 31, 2014	81,696		$	13.11		9.92
	Exercisable at March 31, 2014	857		$	13.44		9.91
	The intrinsic value of our 80,839 unvested options as of March 31, 2014 was $78,000, based on a per share price of $14.00, the Company’s closing stock price on that date, and a weighted average exercise price of $13.11 per share.
	The Company uses the Black-Scholes option-pricing model to estimate the fair value of stock options at the grant date. The Black-Scholes model requires the Company to make certain estimates and assumptions, including estimating the fair value of the Company’s common stock, assumptions related to the expected price volatility of the Company’s stock, the period during which the options will be outstanding, the rate of return on risk-free investments and the expected dividend yield for the Company’s stock.
	The per-share weighted-average grant date fair value of the options granted to employees during the three months ended March 31, 2014 was estimated at $8.43 per share on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:
	Risk-free interest rate	1.66	%
	Expected term of options (in years)	5.9
	Expected volatility	73.84	%
	Dividend yield	0	%
	The weighted-average valuation assumptions were determined as follows:
	·                  Risk-free interest rate: The Company based the risk-free interest rate on the interest rate payable on U.S. Treasury securities in effect at the time of grant for a period that is commensurate with the assumed expected option term.
	·                  Expected term of options: The Company estimated the expected life of its employee stock options using the “simplified” method, as prescribed in Staff Accounting Bulletin (SAB) No. 107, whereby the expected life equals the arithmetic average of the vesting term and the original contractual term of the option due to its lack of sufficient historical data.
	·                  Expected stock price volatility: The Company estimated the expected volatility based on actual historical volatility of the stock price of similar companies with publicly-traded equity securities. The Company calculated the historical volatility of the selected companies by using daily closing prices over a period of the expected term of the associated award. The companies were selected based on their enterprise value, risk profiles, position within the industry and with historical share price information sufficient to meet the expected term of the associated award. A decrease in the selected volatility would have decreased the fair value of the underlying instrument.
	·                  Expected annual dividend yield: The Company estimated the expected dividend yield based on consideration of its historical dividend experience and future dividend expectations. The Company has not historically declared or paid dividends to stockholders. Moreover, it does not intend to pay dividends in the future, but instead expects to retain any earnings to invest in the continued growth of the business. Accordingly, the Company assumed an expected dividend yield of 0.0%.
	As of March 31, 2014, there was $672,000 of total unrecognized compensation expense, related to unvested options granted under the Plan, which will be recognized over the weighted average remaining period of 2.27 years.
	Restricted stock
	Upon consummation of the IPO, the Company granted an aggregate of 862,800 shares of restricted stock to its Chief Executive Officer, Chief Financial Officer, Chief Business Officer and Senior Vice President of Research and Development. On March 3, 2014, the Company granted an aggregate of 250,560 shares of restricted stock to three individuals who were providing research and development consulting services to the Company.
	A summary of the status of our restricted stock awards at March 31, 2014 and of changes in restricted stock awards outstanding under the Plan for the three months ended March 31, 2014 is as follows:
		Shares		Weighted Average
				Grant Date Fair
				Value per Share
	Outstanding balance at December 31, 2013	—		$	—
	Granted	1,113,360		$	12.23
	Vesting of restricted stock awards	—		$	—
	Outstanding balance at March 31, 2014	1,113,360		$	12.23
	The total fair value of restricted stock awards vested during the three months ended March 31, 2014 was $0.
	All restricted stock awards issued above vest over time as stipulated in the individual award agreements. In the event of a change in control, the unvested awards will be accelerated and fully vested immediately prior to the change in control. There are no performance based features or market conditions.
	As of March 31, 2014, there was $12.0 million of total unrecognized compensation expense, related to restricted stock under the Plan, which will be recognized over the weighted average remaining period of 1.25 years.
	Shares Reserved for Future Issuance
	At March 31, 2014, the Company has reserved the following shares of common stock for issuance:
	Shares initially reserved under the Plan	1,680,000
	Common stock options outstanding	(81,696	)
	Restricted stock awards outstanding	(1,113,360	)
	Remaining shares available for future issuance	484,944

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies.	'
Commitments and Contingencies	'
	7. Commitments and Contingencies
	Employment Agreements
	The Company has entered into employment agreements with its President and Chief Executive Officer, Chief Financial Officer, Chief Business Officer, and Senior Vice President of Research and Development, that provide for, among other things, salary, bonus and severance payments.
	Legal Proceedings
	The Company is not involved in any legal proceeding.

License_and_Collaboration_Agre

License and Collaboration Agreement	3 Months Ended
	Mar. 31, 2014
License and Collaboration Agreement	'
License and Collaboration Agreement	'
	8. License and Collaboration Agreement
	In November 2013, the Company entered into a license and collaboration agreement with Shionogi, granting Shionogi an exclusive, royalty-bearing, worldwide license to develop, manufacture and commercialize abuse-deterrent hydrocodone-based product candidates using the Company’s technology. The collaboration allows Shionogi to develop and commercialize an abuse-deterrent single-agent hydrocodone-based product and up to 20 different abuse-deterrent combination product candidates containing hydrocodone.
	Under the terms of the agreement, the Company received an upfront payment of $10.0 million. The Company is eligible to receive regulatory milestone payments under the agreement as follows: (i) up to $60.0 million upon successful achievement of specified regulatory milestones for the first licensed product candidate; (ii) up to $42.5 million upon successful achievement of specified regulatory milestones for a defined combination product candidate; (iii) up to $25.0 million upon successful achievement of specified regulatory milestones for a second product candidate (other than the defined combination product candidate); and (iv) up to $12.5 million upon successful achievement of specified regulatory milestones for further product candidates. In addition, the Company is eligible to receive up to an aggregate of $185.0 million based on successful achievement of specified net sales thresholds of licensed products.
	The Company determined that the deliverables under the Shionogi agreement were the exclusive, royalty-bearing, worldwide license to its abuse-deterrent hydrocodone-based product candidates using the Company’s technology, the research and development services to be completed by the Company and the Company’s obligation to serve on a joint committee. The license did not have standalone value to Shionogi and was not separable from the research and development services, because of the uncertainty of Shionogi’s ability to develop the product candidates without the research and development services of the Company during the transfer period and over the term of the agreement.
	Due to the lack of standalone value for the license and research and development services, the upfront payment is being recognized ratably using the straight line method through November 2030, the expected term of the agreement. The Company recorded the $10.0 million upfront payment as deferred revenue within its consolidated balance sheet as of December 31, 2013. For the three months ended March 31, 2014, the Company recognized revenue of $115,000 related to the $10.0 million upfront payment we received.
	Additionally, during the three months ended March 31, 2014, we recognized revenue of $141,000 related to certain development costs incurred under our collaborative research and license agreement.  In accordance with the accounting guidance, we recorded revenue on a gross basis for the reimbursement of development costs.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2014
Income Taxes	'
Income Taxes	'
	9. Income Taxes
	In accordance with ASC Topic No. 270 “Interim Reporting” and ASC Topic No. 740 “Income Taxes” (Topic No. 740) at the end of each interim period the Company is required to determine the best estimate of its annual effective tax rate and then apply that rate in providing for income taxes on a current year-to-date (interim period) basis. For the three months ended March 31, 2013 and 2014, the Company had tax expense of $0 and $35,000, respectively.
	As of December 31, 2013 and March 31, 2014, the Company had a non-current deferred tax liability of $22,000 and $21,000, respectively. The deferred tax liability relates entirely to an indefinite-lived intangible that was recorded in connection with the Danish IPR&D. The Company maintains a full valuation against all deferred tax assets as management has determined that it is not more likely than not that the Company will realize these future tax benefits

RelatedParty_Transactions

Related-Party Transactions	3 Months Ended
	Mar. 31, 2014
Related-Party Transactions	'
Related-Party Transactions	'
	10. Related-Party Transactions
	Related Party Receivables
	The Company has derived all of its revenue for the three months ended March 31, 2014 under its license and collaboration agreement with Shionogi who is also an investor in the Company. As of March 31, 2014, related party receivables with Shionogi were $141,000.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2014
Subsequent Events	'
Subsequent Events	'
	11. Subsequent Events
	On May 1, 2014, the Company granted an aggregate of 257,800 shares of restricted stock to certain employees at a grant date fair value of $11.15 per share. The restricted stock will vest in full upon the third anniversary of the grant date.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies and Basis of Accounting (Policies)	3 Months Ended
	Mar. 31, 2014
Summary of Significant Accounting Policies and Basis of Accounting	'
Basis of Presentation	'
	Basis of Presentation
	The unaudited consolidated financial statements are prepared in conformity with U.S. GAAP for interim financial information. Certain information and footnotes normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q. The accompanying consolidated financial statements include the accounts of Egalet Limited and its wholly owned subsidiary, Egalet US, Inc. The Company’s consolidation policy requires the consolidation of entities where a controlling financial interest is held. All intercompany balances and transactions have been eliminated in consolidation.
	The accompanying consolidated Balance Sheet as of March 31, 2014, consolidated Statements of Operations and Comprehensive Loss and consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2014 and the Statement of Redeemable Convertible Preferred Stock and Stockholders’ (Deficit) Equity for the three months ended March 31, 2014 are unaudited. The interim unaudited financial statements have been prepared on the same basis as the annual audited financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2014 and the results of its operations, its comprehensive loss and its cash flows for the three months ended March 31, 2013 and 2014. The financial data and other information disclosed in these notes related to the three months ended March 31, 2013 and 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014, any other interim periods or any future year or period. These are unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2013 filed on March 31, 2014 with the SEC.
	The Company’s significant accounting policies are described in Note 2 of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Since the date of those financial statements, there have been no changes to the Company’s significant accounting policies, except where noted below.
Reclassification	'
	Reclassification
	Certain reclassifications were made to prior period amounts to conform to the current period presentation.
Fair Value Measurements	'
	Fair Value Measurements
	The carrying amounts reported in the Company’s consolidated financial statements for cash, accounts receivable, accounts payable, accrued liabilities, and notes payable approximate their respective fair values because of the short-term nature of these accounts.
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
	Fair value should be based on the assumptions that market participants would use when pricing an asset or liability and is based on a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices in active markets (observable inputs) and the lowest priority to the Company’s assumptions (unobservable inputs). Fair value measurements should be disclosed separately by level within the fair value hierarchy. For assets and liabilities recorded at fair value, it is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with established fair value hierarchy.
	Fair value measurements for assets and liabilities where there exists limited or no observable market data are based primarily upon estimates, and often are calculated based on the economic and competitive environment, the characteristics of the asset or liability and other factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability.
	Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values.
	Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as assets held for sale and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets.
	The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:
	Level 1—Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange.
	Level 2—Valuations for assets and liabilities that can be obtained from readily available pricing sources via independent providers for market transactions involving similar assets or liabilities. The Company’s principal markets for these securities are the secondary institutional markets, and valuations are based on observable market data in those markets.
	Level 3—Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and are not based on market exchange or dealer- or broker-traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.
	Level 3 valuations are for instruments that are not traded in active markets or are subject to transfer restrictions and may be adjusted to reflect illiquidity and/or non-transferability, with such adjustment generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.
	An adjustment to the pricing method used within either Level 1 or Level 2 inputs could generate a fair value measurement that effectively falls in a lower level in the hierarchy. The Company had no assets or liabilities classified as Level 1 or Level 2 as of December 31, 2013 and March 31, 2014 and there were no material re-measurements of fair value with respect to financial assets and liabilities, during those years, other than those assets and liabilities that are measured at fair value on a recurring basis. There were no transfers between Level 1 and Level 2 in any of the periods reported.
Revenue Recognition	'
	Revenue Recognition
	During 2013, the Company entered into a collaborative research and license agreement. The terms of the agreement contain multiple deliverables which may include (i) licenses, (ii) research and development activities, and (iii) royalty and related commissions. In all instances, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, delivery has occurred or the services have been rendered, collectability of the resulting receivable is reasonably assured, and the Company has fulfilled its performance obligations under the contract. The Company has adopted the provisions of Accounting Standards Update (“ASU”) 2009-13, “Multiple-Deliverable Revenue Arrangements,” which amends ASC 605-25, and also adopted ASU 2010-17, “Revenue Recognition—Milestone Method.” In accordance with ASU 2009-13, the Company considered whether the deliverables under the arrangement represent separate units of accounting. In determining the units of accounting, management evaluates certain criteria, including whether the deliverables have stand-alone value. See Note 8. License and Colloboration Agreement for further discussion of the Company’s accounting for collaborative research and license agreement.
Stock-Based Compensation	'
	Stock-Based Compensation
	The Company accounts for stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation—Stock Compensation (ASC 718), which requires the recognition of expense related to the fair value of stock-based compensation awards in the Statements of Operations and Comprehensive Loss.
	For stock options issued to employees and members of the Board for their services on the Board, the Company estimates the grant date fair value of each option using the Black-Scholes option-pricing model. The use of the Black- Scholes option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates, the value of the common stock and expected dividend yields of the common stock. For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense, net of estimated forfeitures, equal to the grant date fair value of stock options on a straight-line basis over the requisite service period, which is generally the vesting term. For awards subject to both performance and service-based vesting conditions, the Company recognizes stock-based compensation expense using the accelerated attribution method when it is probable that the performance condition will be achieved. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
	Share-based payments issued to non-employees are recorded at their fair values, and are periodically revalued as the equity instruments vest and are recognized as expense over the related service period in accordance with the provisions of ASC 718 and ASC Topic 505, Equity. See Note 6 for a discussion of the assumptions used by the Company in determining the grant date fair value of options granted under the Black-Scholes option pricing model, as well as a summary of the stock option activity under the Company’s stock-based compensation plan for the three months ended March 31, 2014.
	The stock-based compensation expense for restricted stock awards is determined based on the closing market price of the Company’s common stock on the grant date of the awards applied to the total number of awards that are anticipated to vest.
Income Taxes	'
	Income Taxes
	Income taxes are recorded in accordance with ASC Topic 740, Income Taxes (ASC 740), which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
	The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As of December 31, 2013 and March 31, 2014, the Company does not have any significant uncertain tax positions.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	The Company does not anticipate the adoption of recently issued accounting standards to have a significant impact on its financial position, results of operations or cash flows.

Net_Loss_Per_Common_Share_Tabl

Net Loss Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2014
Net Loss Per Common Share	'
Schedule of computation of basic and diluted earnings per share of common stock	'
		Three Months Ended March 31,
		2013			2014
	Basic and diluted net loss per common share calculation:
	Net loss attributable to common stockholders	$	(1,796,000	)	$	(12,916,000	)
	Weighted average common shares outstanding	1,292,307			9,638,260
	Net loss per share of common stock—basic and diluted	$	(1.39	)	$	(1.34	)
Schedule of outstanding securities excluded from the computation of diluted weighted shares outstanding, as they would have been anti dilutive	'
		March 31,
		2013		2014
	Redeemable convertible preferred stock	4,441,217		—
	Options outstanding	—		81,696
	Unvested restricted stock awards	—		1,113,360
	Total	4,441,217		1,195,056

Stockbased_Compensation_Tables

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2014
Stock-based Compensation	'
Schedule of share based compensation expense recognized	'
		Three months ended
		March 31,
		2013			2014
	Research and development	$	—		$	527,000
	General and administrative	—			1,156,000
	Total stock-based compensation	$	—		$	1,683,000
Schedule of Options Granted in the 2013 Equity Incentive Plan	'
		Options Outstanding
		Number of		Weighted-Average			Weighted Average
		Shares		Exercise Price			Remaining
							Contractual
							Term (in years)
	Balance, December 31, 2013	—		—			—
	Granted	81,696		$	13.11
	Exercised	—		—
	Forfeitures	—		—
	Balance, March 31, 2014	81,696		$	13.11		9.92
	Vested or expected to vest at March 31, 2014	81,696		$	13.11		9.92
	Exercisable at March 31, 2014	857		$	13.44		9.91
Schedule of weighted average assumptions	'
	The per-share weighted-average grant date fair value of the options granted to employees during the three months ended March 31, 2014 was estimated at $8.43 per share on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:
	Risk-free interest rate	1.66	%
	Expected term of options (in years)	5.9
	Expected volatility	73.84	%
	Dividend yield	0	%
Summary of status and change in restricted stock awards	'
		Shares		Weighted Average
				Grant Date Fair
				Value per Share
	Outstanding balance at December 31, 2013	—		$	—
	Granted	1,113,360		$	12.23
	Vesting of restricted stock awards	—		$	—
	Outstanding balance at March 31, 2014	1,113,360		$	12.23
Schedule of common stock reserved for issuance	'
	At March 31, 2014, the Company has reserved the following shares of common stock for issuance:
	Shares initially reserved under the Plan	1,680,000
	Common stock options outstanding	(81,696	)
	Restricted stock awards outstanding	(1,113,360	)
	Remaining shares available for future issuance	484,944

Organization_and_Description_o1

Organization and Description of the Business (Details) (USD $)	0 Months Ended	3 Months Ended		0 Months Ended			3 Months Ended	0 Months Ended		3 Months Ended
	Jan. 21, 2014	Mar. 31, 2014	Dec. 31, 2013	Feb. 11, 2014	Feb. 06, 2014	Aug. 29, 2013	Mar. 31, 2014	Feb. 11, 2014	Mar. 07, 2014	Mar. 31, 2014
				Related party senior convertible debt	Related party senior convertible debt	Related party senior convertible debt	Initial public offering and exercise of over-allotment option by underwriters	Initial public offering	Exercise of over-allotment option by underwriters	Private placement
				Equity investors	Equity investors	Equity investors				Shionogi
Organization and Description of the Business	'	'	'	'	'	'	'	'	'	'
Shares of common stock sold	'	'	'	'	'	'	'	4,200,000	630,000	1,250,000
Share price (in dollars per share)	'	'	'	'	'	'	'	$12	$12	$12
Aggregate gross proceeds from initial public offering	'	'	'	'	'	'	'	$50,400,000	$7,600,000	'
Number of shares exchanged	'	'	'	'	'	'	'	1,292,307	'	'
Common stock, par value (in dollars per share)	'	$0.00	$0.01	'	'	'	'	'	'	'
Number of shares issued upon conversion of stock	'	'	'	'	'	'	'	5,329,451	'	'
Shares issued upon conversion of debt	'	'	'	'	'	'	'	2,585,745	'	'
Aggregate gross proceeds from private placement	'	'	'	'	'	'	'	'	'	15,000,000
Number of warrants exercised (in shares)	'	'	'	600,000	600,000	'	'	'	'	'
Exercise price of warrants (in dollars per share)	'	'	'	$0.01	$0.01	$0.01	'	'	'	'
Underwriting discounts and commissions	'	'	'	'	'	'	5,100,000	'	'	'
Offering expenses excluding underwriting discounts and commissions	'	'	'	'	'	'	2,400,000	'	'	'
Total expenses in connection with the offering	'	'	'	'	'	'	7,500,000	'	'	'
Net proceeds from initial public offering	'	53,124,000	'	'	'	'	51,500,000	'	'	'
Net proceeds from private placement offering	'	13,950,000	'	'	'	'	'	'	'	14,000,000
Liquidity	'	'	'	'	'	'	'	'	'	'
Accumulated deficit	'	($46,315,000)	($33,399,000)	'	'	'	'	'	'	'
Forward stock split	'	'	'	'	'	'	'	'	'	'
Forward Stock Split	1.2	1.2	'	'	'	'	'	'	'	'

Summary_of_Significant_Account2

Summary of Significant Accounting Policies and Basis of Accounting (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Fair value measurements	'	'
Transfer of assets from level 2 to level 1	$0	'
Transfer of assets from level 1 to level 2	0	'
Transfer of liabilities from level 1 to level 2	0	'
Transfer of liabilities from level 2 to level 1	0	'
Income Taxes	'	'
Uncertain tax positions liability	0	0
Level 1	'	'
Fair value measurements	'	'
Assets	0	0
Liabilities	0	0
Level 2	'	'
Fair value measurements	'	'
Assets	0	0
Liabilities	$0	$0

Net_Loss_Per_Common_Share_Deta

Net Loss Per Common Share (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Basic and diluted net loss per common share calculation:	'	'
Net loss attributable to common stockholders	($12,916,000)	($1,796,000)
Weighted average common shares outstanding	9,638,260	1,292,307
Net loss per share of common stock-basic and diluted	($1.34)	($1.39)
Antidilutive securities	'	'
Shares excluded from the calculation of diluted weighted average shares outstanding, as they would be anti-dilutive	1,195,056	4,441,217
Redeemable convertible preferred stock	'	'
Antidilutive securities	'	'
Shares excluded from the calculation of diluted weighted average shares outstanding, as they would be anti-dilutive	'	4,441,217
Options outstanding	'	'
Antidilutive securities	'	'
Shares excluded from the calculation of diluted weighted average shares outstanding, as they would be anti-dilutive	81,696	'
Unvested restricted stock awards	'	'
Antidilutive securities	'	'
Shares excluded from the calculation of diluted weighted average shares outstanding, as they would be anti-dilutive	1,113,360	'

Intangible_Asset_Details

Intangible Asset (Details) (IPR&D, USD $)	Mar. 31, 2014	Dec. 31, 2013
IPR&D	'	'
Intangible Asset	'	'
Carrying value	$209,000	$209,000

Related_Party_Senior_Convertib1

Related Party Senior Convertible Debt, Net of Discount (Details) (USD $)	3 Months Ended		0 Months Ended	1 Months Ended	3 Months Ended	0 Months Ended			3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Feb. 06, 2014	Apr. 30, 2013	Mar. 31, 2014	Feb. 11, 2014	Feb. 06, 2014	Aug. 29, 2013	Mar. 31, 2014
			Convertible loan entered into April 2013	Convertible loan entered into April 2013	Convertible loan entered into April 2013	2013 Loan Agreement	2013 Loan Agreement	2013 Loan Agreement	2013 Loan Agreement
			Equity investors	Equity investors	Equity investors	Equity investors	Equity investors	Equity investors	Equity investors
Related Party Senior Convertible Debt, Net of Discount	'	'	'	'	'	'	'	'	'
Loan amount	'	$17,209,000	'	$5,000,000	'	'	'	$10,000,000	'
Interest rate (as a percent)	'	'	'	6.00%	'	'	'	6.00%	'
Minimum net proceeds from initial public offering which would trigger conversion of debt	'	'	'	20,000,000	'	'	'	26,500,000	'
Percentage of initial public offering price at which IPO shares will be given to investor group	'	'	'	'	'	'	'	50.00%	'
Minimum value of the entity upon closing of initial public offering which would trigger conversion of debt	'	'	'	105,400,000	'	'	'	'	'
Minimum affirmative vote of the outstanding loan which would trigger conversion of debt (as a percent)	'	'	'	65.00%	'	'	'	'	'
Outstanding principal converted into shares of common stock	'	'	5,000,000	'	'	'	10,000,000	'	'
Outstanding interest converted into shares of common stock	'	'	240,000	'	'	'	275,000	'	'
Outstanding premium converted into shares of common stock	'	'	'	'	'	'	10,000,000	'	'
Interest expense	7,092,000	'	'	'	35,000	'	'	'	7,100,000
Accretion of premiums and amortization of debt discounts included in interest expense	'	'	'	'	'	'	'	'	7,000,000
Unamortized debt discount converted into shares of common stock	'	'	'	'	'	'	$802,000	'	'
Minimum percentage of principal amount outstanding held by lenders that may request payment of outstanding principal and interest upon maturity	'	'	'	'	'	'	'	66.00%	'
Number of warrants issued to lenders	'	'	'	'	'	'	'	600,000	'
Exercise price (in dollars per share)	'	'	'	'	'	$0.01	$0.01	$0.01	'
Number of warrants exercised for common stock	'	'	'	'	'	600,000	600,000	'	'

Stockbased_Compensation_Detail

Stock-based Compensation (Details) (USD $)	3 Months Ended				1 Months Ended		3 Months Ended	1 Months Ended
	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Nov. 30, 2013	Nov. 30, 2013	Mar. 31, 2014	Nov. 30, 2013
		Research and development	General and administrative	Options outstanding	Options outstanding	2013 Equity Incentive Plan	2013 Equity Incentive Plan	2013 Equity Incentive Plan
					Maximum		Options outstanding	Options outstanding
								Maximum
Stock-based Compensation	'	'	'	'	'	'	'	'
Common stock initially reserved for issuance (in shares)	1,680,000	'	'	'	'	1,680,000	'	'
Term of the awards	'	'	'	'	'	'	'	'P10Y
Share-based compensation expense recognized	$1,683,000	$527,000	$1,156,000	'	'	'	'	'
Options Outstanding, Number of Shares	'	'	'	'	'	'	'	'
Granted (in shares)	'	'	'	'	'	'	81,696	'
Balance at end of the period (in shares)	81,696	'	'	'	'	'	81,696	'
Exercisable at the end of the period (in shares)	'	'	'	'	'	'	857	'
Options Outstanding, Weighted-Average Exercise Price	'	'	'	'	'	'	'	'
Granted (in dollars per share)	'	'	'	'	'	'	$13.11	'
Balance at end of the period (in dollars per share)	'	'	'	'	'	'	$13.11	'
Exercisable at the end of the period (in dollars per share)	'	'	'	'	'	'	$13.44	'
Options, additional disclosures	'	'	'	'	'	'	'	'
Options Outstanding, Weighted Average Remaining Contractual Term	'	'	'	'	'	'	'9 years 11 months 1 day	'
Vested or expected to vest, Weighted Average Remaining Contractual Term	'	'	'	'	'	'	'9 years 11 months 1 day	'
Exercisable, Weighted Average Remaining Contractual Term	'	'	'	'	'	'	'9 years 10 months 28 days	'
Vested or expected to vest at the end of the period (in shares)	'	'	'	'	'	'	81,696	'
Vested or expected to vest at the end of the period (in dollars per share)	'	'	'	'	'	'	$13.11	'
Unvested options (in shares)	'	'	'	'	'	'	80,839	'
Intrinsic value of unvested options (in dollars)	'	'	'	'	'	'	78,000	'
Stock price (in dollars per share)	'	'	'	'	'	'	$14	'
Unvested options, Weighted Average Exercise Price (in dollars per share)	'	'	'	'	'	'	$13.11	'
Weighted average grant date fair value of the options granted (in dollars per share)	'	'	'	$8.43	'	'	'	'
Weighted average assumptions:	'	'	'	'	'	'	'	'
Risk free interest rate (as a percent)	'	'	'	1.66%	'	'	'	'
Expected term of options	'	'	'	'5 years 10 months 24 days	'10 years	'	'	'
Expected volatility (as a percent)	'	'	'	73.84%	'	'	'	'
Dividend yield (as a percent)	'	'	'	0.00%	'	'	'	'
Unrecognized compensation expense and recognition period disclosure	'	'	'	'	'	'	'	'
Unrecognized compensation expense	'	'	'	'	'	'	$672,000	'
Weighted average remaining period over which unrecognized compensation expense will be recognized	'	'	'	'	'	'	'2 years 3 months 7 days	'

Stockbased_Compensation_Detail1

Stock-based Compensation (Details 2) (USD $)	Mar. 31, 2014	Mar. 31, 2014	Mar. 03, 2014	Mar. 31, 2014	Nov. 30, 2013	Mar. 31, 2014
		Restricted stock	Restricted stock	Restricted stock	2013 Equity Incentive Plan	2013 Equity Incentive Plan
			Research and development consultants	Chief Executive Officer, Chief Financial Officer, Chief Business Officer and Senior Vice President of Research and Development		Restricted stock
			item
Stock-based Compensation	'	'	'	'	'	'
Granted (in shares)	'	1,113,360	'	862,800	'	'
Shares granted to individuals providing research and development consulting services	'	'	250,560	'	'	'
Number of individuals providing research and development consulting services	'	'	3	'	'	'
Shares	'	'	'	'	'	'
Outstanding balance at the beginning of the period (in shares)	1,113,360	'	'	'	'	'
Granted (in shares)	'	1,113,360	'	862,800	'	'
Outstanding balance at the end of the period (in shares)	1,113,360	1,113,360	'	'	'	'
Weighted Average Grant Date Fair Value per Share	'	'	'	'	'	'
Granted (in dollars per share)	'	$12.23	'	'	'	'
Outstanding balance at the end of the period (in dollars per share)	'	$12.23	'	'	'	'
Total fair value	'	$0	'	'	'	'
Unrecognized compensation expense	'	'	'	'	'	$12,000,000
Weighted average remaining period over which unrecognized compensation expense will be recognized	'	'	'	'	'	'1 year 3 months
Shares of common stock reserved for issuance:	'	'	'	'	'	'
Shares initially reserved under the Plan	1,680,000	'	'	'	1,680,000	'
Common stock options outstanding	-81,696	'	'	'	'	'
Restricted stock awards outstanding	-1,113,360	-1,113,360	'	'	'	'
Remaining shares available for future issuance	484,944	'	'	'	'	'

License_and_Collaboration_Agre1

License and Collaboration Agreement (Details) (USD $)	1 Months Ended	3 Months Ended
	Nov. 30, 2013	Mar. 31, 2014	Dec. 31, 2013
License and collaboration agreement	'	'	'
Research and development services revenue	'	$256,000	'
Collaboration and License Agreement | Shionogi	'	'	'
License and collaboration agreement	'	'	'
Up-front payment received	10,000,000	'	'
Deferred revenue	'	'	10,000,000
Revenue recognized related to upfront payment received	'	115,000	'
Collaboration and License Agreement | Shionogi | Development activities	'	'	'
License and collaboration agreement	'	'	'
Research and development services revenue	'	141,000	'
Collaboration and License Agreement | Shionogi | Maximum	'	'	'
License and collaboration agreement	'	'	'
Number of different abuse-deterrent combination product candidates containing hydrocodone that may be developed and commercialized by counterparty under agreement	20	'	'
Collaboration and License Agreement | Shionogi | Maximum | Specified regulatory milestones for the first licensed product candidate	'	'	'
License and collaboration agreement	'	'	'
Regulatory milestone payment receivable	60,000,000	'	'
Collaboration and License Agreement | Shionogi | Maximum | Specified regulatory milestones for a defined combination product candidate	'	'	'
License and collaboration agreement	'	'	'
Regulatory milestone payment receivable	42,500,000	'	'
Collaboration and License Agreement | Shionogi | Maximum | Specified regulatory milestones for a second product candidate	'	'	'
License and collaboration agreement	'	'	'
Regulatory milestone payment receivable	25,000,000	'	'
Collaboration and License Agreement | Shionogi | Maximum | Specified regulatory milestones for further product candidates	'	'	'
License and collaboration agreement	'	'	'
Regulatory milestone payment receivable	12,500,000	'	'
Collaboration and License Agreement | Shionogi | Maximum | Specified net sales thresholds of licensed products	'	'	'
License and collaboration agreement	'	'	'
Regulatory milestone payment receivable	$185,000,000	'	'

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Income Taxes	'	'	'
Tax expense	$35,000	$0	'
Non-current deferred tax liability	$21,000	'	$22,000

RelatedParty_Transactions_Deta

Related-Party Transactions (Details) (USD $)	Mar. 31, 2014
Related-Party Transactions	'
Related party receivables	$141,000
Shionogi	'
Related-Party Transactions	'
Related party receivables	$141,000

Subsequent_Events_Details

Subsequent Events ( Details) (Restricted stock, USD $)	3 Months Ended	0 Months Ended
	Mar. 31, 2014	1-May-14
		Subsequent events
Subsequent Events	'	'
Granted (in shares)	1,113,360	257,800
Grant date fair value (in dollars per share)	$12.23	$11.15