Corium International 10-Q 30 Jul 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Jul. 28, 2015
Document and Entity Information
Entity Registrant Name	Corium International, Inc.
Entity Central Index Key	1,594,337
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		18,159,075
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014	[1]
Current assets:
Cash and cash equivalents	$ 29,539	$ 36,395
Accounts receivable	4,640	4,168
Unbilled accounts receivable	872	1,385
Inventories, net	3,293	2,592
Prepaid expenses and other current assets	1,829	1,292
Total current assets	40,173	45,832
Property and equipment, net	11,767	12,658
Debt financing costs, net	594	571
Intangible assets, net	6,767	6,683
TOTAL ASSETS	59,301	65,744
Current liabilities:
Accounts payable	3,633	2,512
Accrued expenses and other current liabilities	3,630	4,008
Long-term debt, current portion	55	107
Capital lease obligations, current portion	799	760
Recall liability, current portion	660	774
Deferred contract revenues, current portion	220	301
Total current liabilities	8,997	8,462
Long-term debt, net of current portion	49,385	38,155
Capital lease obligations, net of current portion	285	891
Recall liability, net of current portion	2,529	2,936
Deferred contract revenues, net of current portion	3,500	3,500
Total liabilities	64,696	53,944
Stockholders’ equity (deficit):
Common stock; par value of $0.001 per share, 150,000,000 shares authorized; 18,158,559 and 18,003,883 shares issued and outstanding as of June 30, 2015 and September 30, 2014, respectively	18	18
Additional paid-in capital	116,737	114,117
Accumulated deficit	(122,150)	(102,335)
Total stockholders’ equity (deficit)	(5,395)	11,800
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$ 59,301	$ 65,744
[1]	Derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Sep. 30, 2014	Apr. 08, 2014
CONDENSED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000	150,000,000
Common stock, shares issued	18,158,559	18,003,883
Common stock, shares outstanding	18,158,559	18,003,883

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Product revenues	$ 6,296,000	$ 7,856,000	$ 20,467,000	$ 23,196,000
Contract research and development revenues	3,505,000	2,023,000	9,798,000	7,260,000
Other revenues	797,000	304,000	1,390,000	912,000
Total revenues	10,598,000	10,183,000	31,655,000	31,368,000
Costs and operating expenses:
Cost of product revenues	4,063,000	4,566,000	13,369,000	14,793,000
Cost of contract research and development revenues	4,065,000	3,789,000	12,292,000	11,237,000
Research and development expenses	3,493,000	1,614,000	11,670,000	3,742,000
General and administrative expenses	2,835,000	3,497,000	8,192,000	6,543,000
Amortization of intangible assets	141,000	138,000	464,000	399,000
(Gain)/ loss on disposal and sale and leaseback of equipment	(5,000)	(24,000)	2,000	(93,000)
Total costs and operating expenses	14,592,000	13,580,000	45,989,000	36,621,000
Loss from operations	(3,994,000)	(3,397,000)	(14,334,000)	(5,253,000)
Interest income	5,000	2,000	11,000	5,000
Interest expense	(1,925,000)	(1,586,000)	(5,490,000)	(5,390,000)
Change in fair value of preferred stock warrant liability				(274,000)
Change in fair value of subordinated note embedded derivative liability				7,367,000
Loss before income taxes	(5,914,000)	(4,981,000)	(19,813,000)	(3,545,000)
Income tax expense			2,000
Net loss and comprehensive loss	$ (5,914,000)	$ (4,981,000)	$ (19,815,000)	$ (3,545,000)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.33)	$ (0.28)	$ (1.10)	$ (0.48)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)	18,116,021	17,624,327	18,073,879	7,362,142

CONDENSED STATEMENT OF STOCKHOL

CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) - 9 months ended Jun. 30, 2015 - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Sep. 30, 2014	$ 18,000	$ 114,117,000	$ (102,335,000)	$ 11,800,000	[1]
Balance (in shares) at Sep. 30, 2014	18,003,883
Increase (Decrease) in Stockholders' Equity (Deficit)
Issuance of common stock under Employee Stock Purchase Plan		570,000		570,000
Issuance of common stock under Employee Stock Purchase Plan (in shares)	119,465
Issuance of common stock upon exercise of stock options		30,000		30,000
Issuance of common stock upon exercise of stock options (in shares)	14,502
Issuance of common stock upoon net exercise of common stock warrants (in shares)	12,591
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)	$ 8,118
Stock-based compensation expense		2,019,000		2,019,000
Net loss and comprehensive loss			(19,815,000)	(19,815,000)
Balance at Jun. 30, 2015	$ 18,000	$ 116,737,000	$ (122,150,000)	$ (5,395,000)
Balance (in shares) at Jun. 30, 2015	18,158,559
[1]	Derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015		Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss and comprehensive loss	$ (19,815)		$ (3,545)
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciation and amortization of property and equipment	1,546		1,642
(Gain)/ loss on disposal and sale and leaseback of equipment	2		(93)
Amortization of premium on modification of subordinated note			(292)
Change in fair value of preferred stock warrant liability			274
Change in fair value of subordinated note embedded derivative liability			(7,367)
Amortization of intangible assets	464		399
Noncash amortized issue costs on long-term debt	127		257
Noncash amortized discount on long-term debt	17		116
Stock-based compensation expense	2,019		960
Changes in operating assets and liabilities:
Accounts receivable	(472)		(1,374)
Unbilled accounts receivable	513		(305)
Inventories, net	(701)		1,393
Prepaid expenses and other current assets	(536)		(291)
Accounts payable	1,143		599
Accrued expenses and other current liabilities	837		1,549
Deferred contract revenues	(81)		(49)
Recall liability	(521)		(916)
Long-term interest payable			823
Net cash used by operating activities	(15,458)		(6,220)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(690)		(2,325)
Proceeds from sale of equipment	10		18
Proceeds from repayment of notes receivable - related parties			100
Payments for patents and licensing rights	(548)		(509)
Net cash used by investing activities	(1,228)		(2,716)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net of issuance costs			48,459
Repurchase of redeemable common stock from founders			(5,225)
Proceeds from issuance of long-term debt	10,000
Payment of transaction costs on issuance of common stock and long-term debt and capital leases	(150)
Principal payments on long-term debt	(50)		(468)
Principal payments on capital lease obligations	(571)		(802)
Borrowings on bank line of credit			1,298
Payments on bank line of credit			(3,670)
Proceeds from exercise of stock options	30		8
Proceeds from exercise of common stock warrants	1
Proceeds from issuance of common stock under employee stock purchase plan	570
Net cash provided by financing activities	9,830		39,600
NET INCREASE IN CASH AND CASH EQUIVALENTS	(6,856)		30,664
CASH AND CASH EQUIVALENTS - Beginning of period	36,395	[1]	13,581
CASH AND CASH EQUIVALENTS - End of period	29,539		44,245
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	4,130		3,503
Cash paid for income taxes	1
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment purchases included in accounts payable and accrued liabilities	176		360
Issuance of payment-in-kind notes in lieu of cash interest payments associated with long-term debt	$ 1,215		$ 971
[1]	Derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014

Organization, Description of Bu

Organization, Description of Business, and Summary of Significant Accounting Policies	9 Months Ended
	Jun. 30, 2015
Organization, Description of Business, and Summary of Significant Accounting Policies
Organization, Description of Business, and Summary of Significant Accounting Policies	CORIUM INTERNATIONAL, INC. Notes to the Condensed Financial Statements 1. Organization, Description of Business and Summary of Significant Accounting Policies Organization Corium International, Inc., a Delaware corporation (the “Company”), is a commercial stage biopharmaceutical company focused on the development, manufacture and commercialization of specialty pharmaceutical products that leverage its broad experience in transdermal and transmucosal delivery systems. In the normal course of business, the Company enters into collaborative agreements with partners to develop and manufacture products based on the Company’s drug delivery technologies and product development expertise. Revenues consist of net sales of products manufactured, royalties and profit-sharing payments based on sales of such products by partners, and product development fees for research and development activities under collaborative agreements with strategic partners. The Company is also engaged in the research and development of its own transdermal drug delivery products using its proprietary technologies. The Company’s fiscal year ends on September 30. References to “fiscal” refer to the years ended September 30. Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and follow the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The interim balance sheet as of June 30, 2015 and the statements of operations and comprehensive loss for the three and nine months ended June 30, 2015 and 2014, statement of stockholders’ equity (deficit) for the nine months ended June 30, 2015 and statements of cash flows for the nine months ended June 30, 2015 and 2014 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to present fairly the Company’s financial position as of June 30, 2015 and its results of operations for the three and nine months ended June 30, 2015 and 2014 and cash flows for the nine months ended June 30, 2015 and 2014. The financial data and the other financial information contained in these notes to the financial statements related to the three and nine month periods are also unaudited. The results of operations for the nine months ended June 30, 2015 are not necessarily indicative of the results to be expected for the year ending September 30, 2015 or for any future annual or interim period. The balance sheet as of September 30, 2014 has been derived from the audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended September 30, 2014 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 15, 2014. There have been no material changes to the significant accounting policies previously disclosed in the Company’s audited financial statements for the year ended September 30, 2014. Initial Public Offering In April 2014, the Company sold 6,874,997 shares of its common stock in its initial public offering (the “IPO”) at a price of $8.00 per share. The Company received net cash proceeds of $48.5 million from the IPO, including proceeds from the partial exercise of the underwriters’ option, after deducting underwriting discounts, commissions and issuance costs paid by the Company. On April 8, 2014, immediately prior to the closing of the IPO, all outstanding shares of convertible preferred stock were converted into 3,567,807 shares of common stock, and the related carrying value of $57.3 million was reclassified to common stock and additional paid-in capital. In addition, certain warrants to purchase convertible preferred stock and common stock were converted and net exercised into 971,440 shares of common stock. In connection with the IPO, Corium also repurchased 1,077,809 shares of common stock from its founders for an aggregate purchase price of $5.2 million. Following the filing of the Restated Certificate of Incorporation of the Company on April 8, 2014, the number of shares of capital stock the Company is authorized to issue is 155,000,000 shares, of which 150,000,000 shares may be common stock and 5,000,000 shares may be preferred stock. Both the common stock and preferred stock have a par value of $0.001 per share. Use of Estimates Estimates and assumptions are required to be used by management in the preparation of financial statements in conformity with U.S. GAAP that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of operating revenues and operating expenses during the reporting period. Those estimates and assumptions affect revenue recognition and deferred revenues, impairment of long-lived assets, determination of fair value of stock-based awards and other debt- and equity-related instruments, and accounting for income taxes. As future events and their effects cannot be determined with precision, actual results could differ from those estimates. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with a single domestic financial institution that is well capitalized. The Company provides credit, in the normal course of business, to its partners and performs credit evaluations of such partners. Four partners accounted for 87% and 88% of the Company's revenues for the three and nine months ended June 30, 2015, compared to 94% and 95% for the corresponding periods in 2014. These same four partners accounted for 84% and 95% of accounts receivable as of June 30, 2015 and September 30, 2014. Comprehensive Income ( Loss ) During the three and nine months ended June 30, 2015 and 2014, the Company did not recognize any other comprehensive income ( loss ) and, therefore, the net loss and comprehensive loss was the same for all periods presented. Revenue Recognition The Company generates revenues from agreements for the development and commercialization of its products. The terms of the agreements may include nonrefundable upfront payments, partial or complete reimbursement of research and development costs, milestone payments, product sales, and royalties and profit sharing on product sales derived from partner agreements. The Company recognizes revenues when the following criteria are met: persuasive evidence of a sales arrangement exists; delivery has occurred; the price is fixed or determinable; and collectability is reasonably assured. Revenue related to multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. This determination is generally based on whether any deliverable has stand-alone value to the partner. This analysis also establishes a selling price hierarchy for determining how to allocate arrangement consideration to identified units of accounting. The selling price used for each unit of accounting is based on vendor-specific objective evidence, if available, third-party evidence if vendor-specific objective evidence is not available, or estimated selling price if neither vendor-specific nor third-party evidence is available. Typically, the Company has not granted licenses to partners at the beginning of its arrangements and thus there are no delivered items separate from the research and development services provided. As such, upfront payments are recorded as deferred revenues in the balance sheet and are recognized as contract research and development revenues over the estimated period of performance that is consistent with the terms of the research and development obligations contained in the agreement. The Company periodically reviews the estimated period of performance based on the progress made under each arrangement. Amounts related to research and development funding are generally recognized as the related services or activities are performed, in accordance with the contract terms. To the extent that agreements specify services are to be performed on a cost-plus basis, revenues are recognized as services are rendered. Such work is generally billed on a monthly basis for time incurred at specified rates in the agreements. To the extent that agreements specify services to be performed on a fixed-price basis, revenues are recognized consistent with the pattern of the work performed. Many of the agreements provide for reimbursement of third-party expenses, and such reimbursable expenses are billed as revenues at the time the associated expenses are incurred. The arrangements include contractual milestones, which relate to the achievement of pre-specified research, development, regulatory and commercialization events. The milestone events contained in the Company's arrangements generally coincide with the progression of the products through research and development, to regulatory approval, and through to commercialization. The process of successfully developing a new product, having it approved from a regulatory perspective, and ultimately sold for a profit, is highly uncertain. As such, the milestone payments that the Company earns from its partners involve a significant degree of risk to achieve. Research and development milestones in the Company's strategic alliances includes the following types of events: completion of pre-clinical research and development work, completion of certain development events and initiation or completion of clinical trials. Regulatory milestones may include the following types of events: filing of regulatory applications with the Food and Drug Administration and approval of the regulatory applications by the Food and Drug Administration. Commercialization milestones generally relate to product launch. The Company recognizes milestone payments in their entirety in the period in which the milestone is achieved. Upon commercialization, revenues are generated from product sales, royalties and profit sharing. Product sales are generally recognized as products are shipped and title and risk of loss pass to the partner. Royalties and profit sharing are generally recognized when the partners sell the product to their customers, which could be in a different accounting period than the period in which we sold that product to our partners, and are based on a percentage of the partners' gross sales or net profits of the products as specified in the underlying agreements. Royalties and profit sharing totaled $0.6 million and $1.8 million for the three and nine months ended June 30, 2015, compared to $1.0 million and $4.0 million for the corresponding periods in 2014. Other revenues consists primarily of income derived from the Company's arrangements with its partners, whereby a portion of the revenues received under these agreements relates to rental income from embedded leases associated with these relationships, as well as revenues associated with licenses granted to our partners , whereby the Company receives milestone payments upon commercial launch of each new product developed by the Company using the Company’s intellectual property .

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Fair Value Measurements	2. Fair Value Measurements Financial assets and liabilities are recorded at fair value. Except as noted below, the carrying values of the Company’s financial instruments, including cash equivalents, accounts receivable, and accounts payable, approximated their fair values due to the short period of time to maturity or repayment. Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset, or an exit price that would be 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. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level I —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level II —Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level III —Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows (in thousands): As of June 30, 2015 Level I Level II Level III Total Financial Assets: Money market funds $ $ — $ — $ Total financial assets $ $ — $ — $ As of September 30, 2014 Level I Level II Level III Total Financial Assets: Money market funds $ $ — $ — $ Total financial assets $ $ — $ — $ The following financial liabilities have carrying values which differ from their fair value as estimated by the Company for instruments with similar terms and remaining maturities (Level III valuation technique) (in thousands): As of June 30, 2015 Carrying Fair Value Value Difference Long-term debt $ $ $ Total $ $ $ As of September 30, 2014 Carrying Fair Value Value Difference Long-term debt $ $ $ Total $ $ $

Inventories

Inventories	9 Months Ended
	Jun. 30, 2015
Inventories
Inventories	3. Inventories Inventories consist of the following (in thousands): As of June 30, As of September 30, 2015 2014 Raw materials $ $ Work in process Finished goods Total inventories, cost Less inventory reserves Total inventories, net $ $

Long-Term Debt

Long-Term Debt	9 Months Ended
	Jun. 30, 2015
Long-Term Debt
Long-Term Debt	4. Long-Term Debt O utstanding long-term debt consists of the following (in thousands): As of June 30, As of September 30, 2015 2014 Term loan agreement expiring June 30, 2019, less discount of $62 and $76 as of June 30, 2015 and September 30, 2014. See terms of the agreement below. $ $ Notes payable to lessor for tenant improvements. The note calls for monthly payments of principal and interest of $3 at an interest rate of 7% and is due April 2017 Notes payable to lessor for tenant improvements. The note calls for monthly payments of principal and interest of $6 at an interest rate of 7% and is due November 2024 Total Less current portion Long-term portion $ $ On July 13, 2012, the Company completed a $35.0 million term loan agreement with Capital Royalty Group, subsequently renamed as CRG, a healthcare-focused investment firm. In August 2012 and December 2012, the Company drew down $29.0 million and $6.0 million under this agreement, respectively, completing the principal borrowing authorized under that agreement. On November 14, 2014, the agreement was amended to, among other things, increase the principal amount of the term loan by $10.0 million, extend the interest-only period to June 30, 2018, and extend its maturity from June 30, 2017 to June 30, 2019. The amended agreement provides for a maximum borrowing of $45.0 million, excluding PIK notes, as defined below. The amended agreement requires interest to be paid quarterly at a simple annual rate of 15% , and all outstanding principal be repaid in four equal quarterly payments beginning on June 30, 2018, with interest continuing to accrue on the unpaid principal at a simple annual rate of 15% . In addition, the amended agreement contains a provision whereby the Company can, at each quarterly payment due date prior to June 30, 2018, choose to convert that portion of each quarterly interest obligation equal to 3.5% of the then-outstanding principal into additional notes. As of June 30, 2015 and September 30, 2014, the Company had converted $3.9 million and $2.7 million, of interest into such additional notes (also known as payment-in-kind (“PIK”) notes), each of which add to the outstanding principal. On December 4, 2014, the Company borrowed the remaining $10.0 million of principal provided for in the amended agreement. As of June 30, 2015, the principal amount outstanding under the term loan agreement, including all PIK notes, was $48. 9 million. Amounts outstanding under the term loan agreement are collateralized by all of the Company's assets. The amended agreement provides for a prepayment penalty on the outstanding principal if the Company chooses to repay principal prior to June 30, 2018, or upon other specified events, including a change of control. The term loan agreement provides for financial covenants for minimum annual revenues (beginning with the 12 months ending June 30, 2015) and minimum liquidity, with which the Company has been in continuous compliance since the inception of the loan.

Collaboration and Partner Arran

Collaboration and Partner Arrangements	9 Months Ended
	Jun. 30, 2015
Collaboration and Partner Arrangements.
Collaboration and Partner Arrangements	5. Collaboration and Partner Arrangements The Company has recognized the following revenues from its collaboration and partner agreements (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 P&G $ $ $ $ Teva Par Agile Other Total revenues $ $ $ $ Aequus Pharmaceuticals, Inc. In April 2015, the Company entered into an agreement with Aequus Pharmaceuticals, Inc. (“Aequus”) to develop new transdermal products with an initial focus on neurological disorders. Under the agreement, for each product selected for development, the parties will assign an allocation of responsibilities, costs, rights and product revenues. Upon regulatory approval, the Company will manufacture the product and will be paid a profit share based on the Company’s interest in the product.

Warrants

Warrants	9 Months Ended
	Jun. 30, 2015
Warrants
Warrants	6. Warrants The Company issued warrants to purchase shares of the Company's capital stock as part of several transactions from fiscal 2008 through fiscal 2013. The warrants were recorded as equity instruments at the date of their issuances based on the terms of the warrants. As of June 30, 2015, warrants to purchase 51,386 shares of common stock , on an as - converted basis , were outstanding with a weighted-average exercise price of $9.26 per share. All of the common stock warrants are exercisable at any time up to five years from issuance. The fair value of these warrants was recorded in stockholders’ equity upon issuance.

Convertible Preferred Stock, Co

Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit)	9 Months Ended
	Jun. 30, 2015
Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit)
Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit)	7. Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit) Convertible Preferred Stock The Company was authorized to issue up to 5.0 million shares of preferred stock as of June 30, 2015 and September 30, 2014 with a par value of $0.001 per share. No preferred stock was outstanding as of that date. Common Stock The Company was authorized to issue up to 150.0 million shares of common stock as of June 30, 2015 and September 30, 2014 with a par value of $0.001 per share. As of June 30, 2015, there were 18,158,559 shares of common stock outstanding.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Jun. 30, 2015
Stock-Based Compensation
Stock-Based Compensation	8. Stock-Based Compensation Equity Incentive Plans As of June 30, 2015 and September 30, 2014, the Company had four equity incentive plans, all of which are sponsored by the Company, with the exception of the separate stock option plan of StrataGent, Inc., a corporation acquired by the Company on September 20, 2007 (the "StrataGent Plan"). The Company assumed all unexpired, unexercised options outstanding for those employees of StrataGent who remained Company employees after the merger. Each StrataGent option became exercisable into whole shares of Corium stock based on an agreed exchange ratio and per share exercise price such that the total value of the option grant did not change. The Company elected to make no further grants under the StrataGent Plan, however, its terms continue to govern all options issued under that plan. No additional shares available for grant under the StrataGent Plan were assumed by the Company, and any options that were returned to the pool subsequent to the merger with StrataGent were canceled and were not made available for future grants. This wholly-owned subsidiary was dissolved in 2008. As of June 30, 2015, all StrataGent options had been either exercised or canceled. On March 20, 2014, the Company's board of directors approved the adoption of the 2014 Equity Incentive Plan (the "2014 Plan"), which became effective in connection with the IPO. Under the 2014 Plan, the Company initially had reserved a total of 1.0 million shares of common stock plus the remaining unissued shares under the Company's 2012 Equity Incentive Plan (the "2012 Plan"), which was adopted in November 2012 and was replaced by the 2014 Plan. The Company also sponsored the 2002 Stock Option Plan that expired in 2012. On January 1 of each year during the ten -year term of the 2014 Plan, the number of shares of common stock issuable under the 2014 Plan is automatically increased by an amount equal to up to 4% of the number of shares of common stock outstanding as of the preceding December 31, or such lesser number agreed to by the Company’s board of directors. On January 16, 2015, the Company’s board of directors authorized an increase of 722,834 shares to be added to the total number of shares of common stock issuable under the 2014 Plan. The exercise price of each option issued under each of the equity incentive plans is required to be no less than the fair market value of the Company's common stock on the date of the grant. The maximum term of the options is ten years and the vesting period is typically four years. The term “Corium Plans” refers to the 2014 Plan, the 2012 Plan and the 2002 Stock Option Plan. A summary of activity under the Corium Plans during the nine months ended June 30, 2015 is as follows: Weighted Weighted Average Shares Stock Average Remaining Aggregate Available Options Exercise Contractual Intrinsic Value for Grant Outstanding Price Life (Years) (In thousands) Balance - September 30, 2014 $ $ Additional shares authorized — — Granted $ Exercised — $ Forfeited / Cancelled $ Balance - June 30, 2015 $ $ Options exercisable - June 30, 2015 $ $ Options vested and expected to vest - June 30, 2015 $ $ All outstanding options under the Corium Plans as of June 30, 2015 have an exercise price between $2.12 and $13.36 per share. The weighted-average fair value of the stock options granted for the nine months ended June 30, 2015 were estimated using the Black-Scholes option-pricing model with the following assumptions: Nine Months Ended June 30, 2015 Expected term (in years) - Risk-free interest rate % - % Expected volatility % - % Expected dividend rate % Expected Term — The expected term represents the period that the stock-based awards are expected to be outstanding before exercise or cancellation. As the Company's historical share exercise experience has not yet provided a reasonable basis upon which to estimate expected term because of a lack of sufficient data points, the Company estimated the expected term by using the midpoint between the vest ing commencement date and the contractual expiration period of the stock-based awards. Expected Volatility —Because the Company has limited information on the volatility of its common stock due to a lack of significant trading history and limited historical data regarding the volatility of its common stock, the expected volatility used is based on the volatility of a group of comparable publicly traded companies. In evaluating comparability, the Company considered factors such as industry, stage of life cycle and size. The Company will continue to analyze the historical stock price volatility and term assumptions as more historical data for the Company's common stock becomes available. Risk-Free Interest Rate —The risk-free interest rate is based on the constant maturity yields of U.S. Treasury notes with remaining maturities similar to the expected term. Expected Dividend Rate —The Company has never paid any dividends, does not plan to pay dividends in the foreseeable future, and, therefore, uses an expected dividend rate of zero in the valuation model. 2014 Employee Stock Purchase Plan On March 20, 2014, the Company's board of directors approved the adoption of the 2014 Employee Stock Purchase Plan (the "2014 ESPP"), which became effective in connection with the IPO. On January 1 of each year during the ten -year term of the plan, the number of shares issuable under the 2014 ESPP can be increased by an amount equal to up to 1% of the number of shares of common stock and common stock equivalents outstanding as of the preceding December 31, or a lesser number agreed to by the board of directors. No more than 4.0 million shares may be issued over the ten -year term of the 2014 ESPP without the consent of the Company's stockholders. Shares subject to purchase rights granted under the Company's 2014 ESPP that terminate without having been exercised in full will not reduce the number of shares available for issuance under the Company's 2014 ESPP. The Company initially had reserved 310,000 shares of common stock for issuance pursuant to the 2014 ESPP upon its adoption and, on January 16, 2015, the Company’s board of directors reserved an additional 181,994 shares of common stock for issuance pursuant to the 2014 ESPP. As of June 30, 2015, the total reserve available for issuance pursuant to the 2014 ESPP was 372,529 shares of common stock, which reserve is net of issuances of 119,465 shares of common stock. The 2014 ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Internal Revenue Code of 1986 with the purpose of providing employees with an opportunity to purchase the Company's common stock through accumulated payroll deductions. The 2014 ESPP provides for a 24 -month offering period with four consecutive six -month purchase periods during each offering period. Employees are able to purchase shares of common stock at 85% of the lower of the fair market value of the Company's common stock on the first day of the offering period (the “Offering Date”) or on the last day of each six-month purchase period (the “Purchase Date”). The closing price as quoted by the Nasdaq is deemed to be the fair value of the Company's common stock on the Offering Date or the Purchase Date, or if there are no sales on such date, then the last preceding business day on which there were sales. In the event that the closing price of the Company's common stock on the Purchase Date is lower than it was on the Offering Date, then all participating employees may re-enroll in a new 24-month offering period that commences the day following the Purchase Date. The fair value of the purchase rights granted under the 2014 ESPP between April 2, 2014 and May 19, 2015 and the offering periods commencing on November 20, 2014 and May 20, 2015 were estimated by applying the Black-Scholes option-pricing model to each of the four purchase periods in each offering period using the following assumptions: Nine Months Ended June 30, 2015 Fair value of common stock $ – Grant price $ – Expected term (in years) – Expected volatility – % Risk-free interest rate – % Expected dividend rate % Fair Value of Common Stock —The fair market value of the Company’s common stock on the first day of each offering period, or $8.00 for the first offering period, based on the Company's IPO price, $5.4 9 for the offering period commencing on November 20, 2014 , and $12.31 for the offering period commencing on May 20, 2015. Grant Price — 85% of the fair market value of the Company’s common stock on the first day of each offering period, or $6.80 fo r the first offering period, $4.67 for the offering period commencing November 20, 2014 , and $10.46 for the offering period commencing May 20, 2015. Expected Terms —The expected terms are based on the end dates of the four purchase periods of each ESPP offering period, which are six , twelve , eighteen and twenty four months from the commencement of each new offering period. Expected Volatility —Because the Company has limited information on the volatility of its common stock due to a lack of significant trading history and limited historical data regarding the volatility of its common stock, the expected volatility used is based on the volatility of a group of comparable publicly traded companies. In evaluating comparability, the Company considered factors such as industry, stage of life cycle and size. The Company will continue to analyze the historical stock price volatility and term assumptions as more historical data for the Company's common stock becomes available. Risk-Free Interest Rate —The risk-free interest rate is based on the constant maturity yields of U.S. Treasury notes with remaining maturities similar to each expected term. Expected Dividend Rate —The Company has never paid any dividends, does not plan to pay dividends in the foreseeable future, and, therefore, uses an expected dividend rate of zero in the valuation model. For the three and nine months ended June 30, 2015 , the Company recorded stock-based compensation expense of $ 86,000 and $362,000 , and for the nine months ended June 30, 2015 issued 119,465 shares of common stock to employees related to the 2014 ESPP. Stock-Based Compensation Expense Employee stock-based compensation expense for the three and nine months ended June 30, 2015 and 2014 is classified in the condensed statements of operations and comprehensive loss as follows (in thousands): Three months ended June 30, Nine months ended June 30, 2015 2014 2015 2014 Cost of product revenues $ $ $ $ Cost of contract research and development revenues Research and development General and administrative Total stock-based compensation $ $ $ $ As of June 30, 2015 , there was a total of $5.4 million of unrecognized employee stock-based compensation expense, net of estimated forfeitures, related to unvested stock option awards, which is expected to be recognized on a straight-line basis over a weighted-average period of approximately 2.8 years.

Product Recall Liability

Product Recall Liability	9 Months Ended
	Jun. 30, 2015
Product Recall Liability
Product Recall Liability	9. Product Recall Liability In fiscal 2008 and fiscal 2010, Actavis issued two voluntary recalls of certain lots and strengths of Fentanyl TDS manufactured by the Company and sold and distributed by Actavis in the United States. The Company and Actavis negotiated financial settlements for these two recalls, and the Company accrued amounts related to these settlements in fiscal 2009 and 2011. These recall liabilities were subsequently reduced through various mechanisms per the terms of the settlement agreements. In October 2012, the Company reached a revised settlement related to the two recalls, which provided for a total and combined remaining liability of $5.0 million as of that date. The revised liability will be repaid through quarterly payments in arrears based on a percentage of the average of the total net revenues recorded by the Company related to Fentanyl TDS. These quarterly payments have been paid to Actavis since July 1, 2013 and will continue through April 1, 2017. To the extent that the revised settlement liability has not been fully repaid as of April 1, 2017, the remaining liability, if any, will be converted into the most recent form of capital stock issued by the Company in connection with a financing, at the price per share of that financing. The revised liability does not accrue interest. The following table summarizes the changes to the product recall liability (in thousands): Nine Months Ended June 30, 2015 Balance at September 30, 2014 $ Payment of settlement liability Balance at June 30, 2015 $

Net Income (Loss) and Net Incom

Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders	9 Months Ended
	Jun. 30, 2015
Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders
Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders	10. Net Loss and Net Loss per Share Attributable to Common Stockholders In April 2014, the Company completed its IPO, which resulted in significant changes to the number of then-outstanding shares of common stock. The following table sets forth the computation of the Company's basic and diluted net loss per share attributable to common stockholders during the three and nine months ended June 30, 2015 and 2014 (in thousands, except share and per share data): Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Basic and diluted net loss per share Net loss attributable to common stockholders, basic and diluted $ $ $ $ Weighted average shares used in computing net loss per share attributable to common stockholders, basic and diluted Net loss per share attributable to common stockholders, basic and diluted $ $ $ $ The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Stock o ptions to purchase common stock Shares authorized under the 2014 ESPP Common stock warrants

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	11. Income Taxes The Company did not record a provision for Federal income taxes for the three and nine months ended June 30, 2015 because it expect s to generate a net operating loss for the year ending September 3 0 , 2015. The income tax expense of $2,000 for the nine months ended June 30, 2015 represents minimum statutory payments due in the states in which the Company is subject to taxation. The Company’s deferred tax assets continue to be fully offset by a valuation allowance.

Segment and Enterprise-Wide Inf

Segment and Enterprise-Wide Information	9 Months Ended
	Jun. 30, 2015
Segment and Enterprise-Wide Information
Segment and Enterprise-Wide Information	12. Segment and Enterprise-Wide Information The Company’s chief operating decision maker is its President and Chief Executive Officer. The President and Chief Executive Officer reviews the Company’s operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations or operating results for levels or components. Accordingly, the Company has a single reporting segment and operating unit structure. All of the Company’s revenues are derived from partners located in the United States and all long-lived assets are located in the United States.

Organization, Description of 19

Organization, Description of Business, and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2015
Organization, Description of Business, and Summary of Significant Accounting Policies
Organization	Organization Corium International, Inc., a Delaware corporation (the “Company”), is a commercial stage biopharmaceutical company focused on the development, manufacture and commercialization of specialty pharmaceutical products that leverage its broad experience in transdermal and transmucosal delivery systems. In the normal course of business, the Company enters into collaborative agreements with partners to develop and manufacture products based on the Company’s drug delivery technologies and product development expertise. Revenues consist of net sales of products manufactured, royalties and profit-sharing payments based on sales of such products by partners, and product development fees for research and development activities under collaborative agreements with strategic partners. The Company is also engaged in the research and development of its own transdermal drug delivery products using its proprietary technologies. The Company’s fiscal year ends on September 30. References to “fiscal” refer to the years ended September 30.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and follow the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The interim balance sheet as of June 30, 2015 and the statements of operations and comprehensive loss for the three and nine months ended June 30, 2015 and 2014, statement of stockholders’ equity (deficit) for the nine months ended June 30, 2015 and statements of cash flows for the nine months ended June 30, 2015 and 2014 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to present fairly the Company’s financial position as of June 30, 2015 and its results of operations for the three and nine months ended June 30, 2015 and 2014 and cash flows for the nine months ended June 30, 2015 and 2014. The financial data and the other financial information contained in these notes to the financial statements related to the three and nine month periods are also unaudited. The results of operations for the nine months ended June 30, 2015 are not necessarily indicative of the results to be expected for the year ending September 30, 2015 or for any future annual or interim period. The balance sheet as of September 30, 2014 has been derived from the audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended September 30, 2014 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 15, 2014. There have been no material changes to the significant accounting policies previously disclosed in the Company’s audited financial statements for the year ended September 30, 2014.
Initial Public Offering	Initial Public Offering In April 2014, the Company sold 6,874,997 shares of its common stock in its initial public offering (the “IPO”) at a price of $8.00 per share. The Company received net cash proceeds of $48.5 million from the IPO, including proceeds from the partial exercise of the underwriters’ option, after deducting underwriting discounts, commissions and issuance costs paid by the Company. On April 8, 2014, immediately prior to the closing of the IPO, all outstanding shares of convertible preferred stock were converted into 3,567,807 shares of common stock, and the related carrying value of $57.3 million was reclassified to common stock and additional paid-in capital. In addition, certain warrants to purchase convertible preferred stock and common stock were converted and net exercised into 971,440 shares of common stock. In connection with the IPO, Corium also repurchased 1,077,809 shares of common stock from its founders for an aggregate purchase price of $5.2 million. Following the filing of the Restated Certificate of Incorporation of the Company on April 8, 2014, the number of shares of capital stock the Company is authorized to issue is 155,000,000 shares, of which 150,000,000 shares may be common stock and 5,000,000 shares may be preferred stock. Both the common stock and preferred stock have a par value of $0.001 per share.
Use of Estimates	Use of Estimates Estimates and assumptions are required to be used by management in the preparation of financial statements in conformity with U.S. GAAP that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of operating revenues and operating expenses during the reporting period. Those estimates and assumptions affect revenue recognition and deferred revenues, impairment of long-lived assets, determination of fair value of stock-based awards and other debt- and equity-related instruments, and accounting for income taxes. As future events and their effects cannot be determined with precision, actual results could differ from those estimates.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with a single domestic financial institution that is well capitalized. The Company provides credit, in the normal course of business, to its partners and performs credit evaluations of such partners. Four partners accounted for 87% and 88% of the Company's revenues for the three and nine months ended June 30, 2015, compared to 94% and 95% for the corresponding periods in 2014. These same four partners accounted for 84% and 95% of accounts receivable as of June 30, 2015 and September 30, 2014.
Comprehensive Income (Loss)	Comprehensive Income ( Loss ) During the three and nine months ended June 30, 2015 and 2014, the Company did not recognize any other comprehensive income ( loss ) and, therefore, the net loss and comprehensive loss was the same for all periods presented.
Revenue Recognition	Revenue Recognition The Company generates revenues from agreements for the development and commercialization of its products. The terms of the agreements may include nonrefundable upfront payments, partial or complete reimbursement of research and development costs, milestone payments, product sales, and royalties and profit sharing on product sales derived from partner agreements. The Company recognizes revenues when the following criteria are met: persuasive evidence of a sales arrangement exists; delivery has occurred; the price is fixed or determinable; and collectability is reasonably assured. Revenue related to multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. This determination is generally based on whether any deliverable has stand-alone value to the partner. This analysis also establishes a selling price hierarchy for determining how to allocate arrangement consideration to identified units of accounting. The selling price used for each unit of accounting is based on vendor-specific objective evidence, if available, third-party evidence if vendor-specific objective evidence is not available, or estimated selling price if neither vendor-specific nor third-party evidence is available. Typically, the Company has not granted licenses to partners at the beginning of its arrangements and thus there are no delivered items separate from the research and development services provided. As such, upfront payments are recorded as deferred revenues in the balance sheet and are recognized as contract research and development revenues over the estimated period of performance that is consistent with the terms of the research and development obligations contained in the agreement. The Company periodically reviews the estimated period of performance based on the progress made under each arrangement. Amounts related to research and development funding are generally recognized as the related services or activities are performed, in accordance with the contract terms. To the extent that agreements specify services are to be performed on a cost-plus basis, revenues are recognized as services are rendered. Such work is generally billed on a monthly basis for time incurred at specified rates in the agreements. To the extent that agreements specify services to be performed on a fixed-price basis, revenues are recognized consistent with the pattern of the work performed. Many of the agreements provide for reimbursement of third-party expenses, and such reimbursable expenses are billed as revenues at the time the associated expenses are incurred. The arrangements include contractual milestones, which relate to the achievement of pre-specified research, development, regulatory and commercialization events. The milestone events contained in the Company's arrangements generally coincide with the progression of the products through research and development, to regulatory approval, and through to commercialization. The process of successfully developing a new product, having it approved from a regulatory perspective, and ultimately sold for a profit, is highly uncertain. As such, the milestone payments that the Company earns from its partners involve a significant degree of risk to achieve. Research and development milestones in the Company's strategic alliances includes the following types of events: completion of pre-clinical research and development work, completion of certain development events and initiation or completion of clinical trials. Regulatory milestones may include the following types of events: filing of regulatory applications with the Food and Drug Administration and approval of the regulatory applications by the Food and Drug Administration. Commercialization milestones generally relate to product launch. The Company recognizes milestone payments in their entirety in the period in which the milestone is achieved. Upon commercialization, revenues are generated from product sales, royalties and profit sharing. Product sales are generally recognized as products are shipped and title and risk of loss pass to the partner. Royalties and profit sharing are generally recognized when the partners sell the product to their customers, which could be in a different accounting period than the period in which we sold that product to our partners, and are based on a percentage of the partners' gross sales or net profits of the products as specified in the underlying agreements. Royalties and profit sharing totaled $0.6 million and $1.8 million for the three and nine months ended June 30, 2015, compared to $1.0 million and $4.0 million for the corresponding periods in 2014. Other revenues consists primarily of income derived from the Company's arrangements with its partners, whereby a portion of the revenues received under these agreements relates to rental income from embedded leases associated with these relationships, as well as revenues associated with licenses granted to our partners , whereby the Company receives milestone payments upon commercial launch of each new product developed by the Company using the Company’s intellectual property .

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Schedule of the Company's financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy	The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows (in thousands): As of June 30, 2015 Level I Level II Level III Total Financial Assets: Money market funds $ $ — $ — $ Total financial assets $ $ — $ — $ As of September 30, 2014 Level I Level II Level III Total Financial Assets: Money market funds $ $ — $ — $ Total financial assets $ $ — $ — $
Summary of the changes in the fair value of the Company's Level III financial liabilities, which are measured on a recurring basis	The following financial liabilities have carrying values which differ from their fair value as estimated by the Company for instruments with similar terms and remaining maturities (Level III valuation technique) (in thousands): As of June 30, 2015 Carrying Fair Value Value Difference Long-term debt $ $ $ Total $ $ $ As of September 30, 2014 Carrying Fair Value Value Difference Long-term debt $ $ $ Total $ $ $

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2015
Inventories
Schedule of Inventories	Inventories consist of the following (in thousands): As of June 30, As of September 30, 2015 2014 Raw materials $ $ Work in process Finished goods Total inventories, cost Less inventory reserves Total inventories, net $ $

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Jun. 30, 2015
Long-Term Debt
Schedule of the entity's outstanding debt	O utstanding long-term debt consists of the following (in thousands): As of June 30, As of September 30, 2015 2014 Term loan agreement expiring June 30, 2019, less discount of $62 and $76 as of June 30, 2015 and September 30, 2014. See terms of the agreement below. $ $ Notes payable to lessor for tenant improvements. The note calls for monthly payments of principal and interest of $3 at an interest rate of 7% and is due April 2017 Notes payable to lessor for tenant improvements. The note calls for monthly payments of principal and interest of $6 at an interest rate of 7% and is due November 2024 Total Less current portion Long-term portion $ $

Collaboration and Partner Arr23

Collaboration and Partner Arrangements (Tables)	9 Months Ended
	Jun. 30, 2015
Collaboration and Partner Arrangements.
Schedule of revenues from the entity's collaboration and partner agreements	The Company has recognized the following revenues from its collaboration and partner agreements (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 P&G $ $ $ $ Teva Par Agile Other Total revenues $ $ $ $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Jun. 30, 2015
Stock-based compensation
Schedule of employee stock-based compensation expense classified in the statements of operations and comprehensive income (loss)	Employee stock-based compensation expense for the three and nine months ended June 30, 2015 and 2014 is classified in the condensed statements of operations and comprehensive loss as follows (in thousands): Three months ended June 30, Nine months ended June 30, 2015 2014 2015 2014 Cost of product revenues $ $ $ $ Cost of contract research and development revenues Research and development General and administrative Total stock-based compensation $ $ $ $
Corium Plans
Stock-based compensation
Summary of activity under the Plans	Weighted Weighted Average Shares Stock Average Remaining Aggregate Available Options Exercise Contractual Intrinsic Value for Grant Outstanding Price Life (Years) (In thousands) Balance - September 30, 2014 $ $ Additional shares authorized — — Granted $ Exercised — $ Forfeited / Cancelled $ Balance - June 30, 2015 $ $ Options exercisable - June 30, 2015 $ $ Options vested and expected to vest - June 30, 2015 $ $
Schedule of valuation assumptions used	Nine Months Ended June 30, 2015 Expected term (in years) - Risk-free interest rate % - % Expected volatility % - % Expected dividend rate %
2014 Employee Stock Purchase Plan
Stock-based compensation
Schedule of valuation assumptions used	Nine Months Ended June 30, 2015 Fair value of common stock $ – Grant price $ – Expected term (in years) – Expected volatility – % Risk-free interest rate – % Expected dividend rate %

Product Recall Liability (Table

Product Recall Liability (Tables)	9 Months Ended
	Jun. 30, 2015
Product Recall Liability
Summary of changes to the product recall liability	The following table summarizes the changes to the product recall liability (in thousands): Nine Months Ended June 30, 2015 Balance at September 30, 2014 $ Payment of settlement liability Balance at June 30, 2015 $

Net Income (Loss) and Net Inc26

Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Jun. 30, 2015
Net Income (Loss) and Net Income (Loss) per Share Attributable to Common Stockholders
Schedule of computation of the Company's basic and diluted net income (loss) per share attributable to common stockholders	The following table sets forth the computation of the Company's basic and diluted net loss per share attributable to common stockholders during the three and nine months ended June 30, 2015 and 2014 (in thousands, except share and per share data): Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Basic and diluted net loss per share Net loss attributable to common stockholders, basic and diluted $ $ $ $ Weighted average shares used in computing net loss per share attributable to common stockholders, basic and diluted Net loss per share attributable to common stockholders, basic and diluted $ $ $ $
Schedule of anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders	Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Stock o ptions to purchase common stock Shares authorized under the 2014 ESPP Common stock warrants

Organization, Description of 27

Organization, Description of Business, and Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 08, 2014	Apr. 30, 2014	Jun. 30, 2015	Sep. 30, 2014
Organization, Description of Business, and Summary of Significant Accounting Policies
Shares of common stock sold in IPO		6,874,997
Price at which shares of common stock were sold in IPO (in dollars per share)		$ 8
Net cash proceeds from the IPO, including proceeds from the partial exercise of the underwriters' option, after underwriting discounts, commissions and issuance costs		$ 48.5
Shares of common stock issued upon conversion of all outstanding shares of convertible preferred stock	3,567,807
Carrying value of outstanding shares of convertible preferred stock reclassified to common stock and additional paid-in capital	$ 57.3
Shares of common stock issued upon conversion of convertible preferred stock and common stock	971,440
Number of shares repurchased	1,077,809
Aggregate repurchase price	$ 5.2
Authorized shares (in shares)	155,000,000
Authorized common stock (in shares)	150,000,000		150,000,000	150,000,000
Authorized preferred stock (in shares)	5,000,000		5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 0.001		$ 0.001	$ 0.001
Preferred stock, par value (in dollars per share)	$ 0.001		$ 0.001	$ 0.001

Organization, Description of 28

Organization, Description of Business, and Summary of Significant Accounting Policies (Details 2) $ in Millions	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2015USD ($)Partnership	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Revenue Recognition
Royalties and profit sharing			$ 0.6	$ 1	$ 1.8	$ 4
Revenues. | Customer concentration
Concentration of credit risk
Number of partners | Partnership			4
Revenues. | Customer concentration | Four partners
Concentration of credit risk
Concentration risk percentage			87.00%	94.00%	88.00%	95.00%
Accounts receivable | Credit concentration | Four partners
Concentration of credit risk
Concentration risk percentage	84.00%	95.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Level I
Financial Assets
Total financial assets	$ 29,983	$ 36,019
Level I | Money market funds
Financial Assets
Total financial assets	29,983	36,019
Total
Financial Assets
Total financial assets	29,983	36,019
Total | Money market funds
Financial Assets
Total financial assets	$ 29,983	$ 36,019

Fair Value Measurements (Deta30

Fair Value Measurements (Details 2) - Level III - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Carrying Value
Fair value measurements
Long-term debt	$ 49,440	$ 38,262
Total	49,440	38,262
Total
Fair value measurements
Long-term debt	49,562	40,357
Total	49,562	40,357
Difference
Fair value measurements
Long-term debt	122	2,095
Total	$ 122	$ 2,095

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Inventories
Raw materials	$ 2,061	$ 1,268
Work in process	774	898
Finished goods	649	632
Total inventories, cost	3,484	2,798
Less inventory reserves	(191)	(206)
Total inventories, net	$ 3,293	$ 2,592	[1]
[1]	Derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014

Long-Term Debt (Details)

Long-Term Debt (Details)	Dec. 04, 2014USD ($)	Nov. 14, 2014USD ($)	Dec. 31, 2012USD ($)	Aug. 31, 2012USD ($)	Jun. 30, 2015USD ($)installment	Sep. 30, 2014USD ($)		Jul. 13, 2012USD ($)
Long-term Debt
Total					$ 49,440,000	$ 38,262,000
Less current portion					55,000	107,000	[1]
Long-term Debt, Excluding Current Maturities					49,385,000	38,155,000	[1]
Unamortized discount					62,000	76,000
Proceeds from issuance of long-term debt					10,000,000
Term loan agreement expiring on June 30, 2019
Long-term Debt
Total					$ 48,853,000	37,625,000
Interest rate (as a percent)					15.00%
Face amount		$ 45,000,000						$ 35,000,000
Increase in principal amount		$ 10,000,000
Amount drawn			$ 6,000,000	$ 29,000,000
Proceeds from issuance of long-term debt	$ 10,000,000
Number of quarterly installments for repayment of outstanding principal | installment					4
Percentage of cash payment the entity can defer by converting interest due into additional notes		3.50%
Portion of interest due converted into additional notes					$ 3,900,000	2,700,000
Principal amount outstanding					48,900,000
Notes payable due April 2017
Long-term Debt
Total					74,000	96,000
Monthly payments of principal and interest					$ 3,000	$ 3,000
Interest rate (as a percent)					7.00%	7.00%
Notes payable due in November 2024
Long-term Debt
Total					$ 513,000	$ 541,000
Monthly payments of principal and interest					$ 6,000	$ 6,000
Interest rate (as a percent)					7.00%	7.00%
[1]	Derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014

Collaboration and Partner Arr33

Collaboration and Partner Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Collaboration and partner arrangements
Total revenues	$ 10,598	$ 10,183	$ 31,655	$ 31,368
P&G
Collaboration and partner arrangements
Total revenues	2,957	3,123	9,173	8,885
Teva
Collaboration and partner arrangements
Total revenues	2,819	3,750	8,645	10,408
Par
Collaboration and partner arrangements
Total revenues	2,811	2,253	7,787	8,851
Agile
Collaboration and partner arrangements
Total revenues	635	465	2,389	1,500
Other
Collaboration and partner arrangements
Total revenues	$ 1,376	$ 592	$ 3,661	$ 1,724

Warrants (Details)

Warrants (Details) - Jun. 30, 2015 - Common stock warrants - $ / shares	Total
Warrants
Warrants outstanding (in shares)	51,386
Weighted-average exercise price (in dollars per share)	$ 9.26
Maximum
Warrants
Warrant term	5 years

Convertible Preferred Stock, 35

Convertible Preferred Stock, Common Stock and Stockholders' Equity (Deficit) (Details) - $ / shares	Jun. 30, 2015	Sep. 30, 2014	Apr. 08, 2014
Preferred Stock
Authorized preferred stock (in shares)	5,000,000	5,000,000	5,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Preferred stock outstanding (in shares)	0	0
Common Stock
Common shares authorized	150,000,000	150,000,000	150,000,000
Common shares par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Common stock, shares outstanding	18,158,559	18,003,883

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands	May. 20, 2015$ / shares	Jan. 16, 2015shares	Nov. 20, 2014$ / shares	Nov. 19, 2014$ / shares	Mar. 20, 2014shares	Jun. 30, 2015USD ($)plan$ / sharesshares	Sep. 30, 2014USD ($)plan$ / sharesshares
Stock-based compensation
Number of plans | plan						4	4
Weighted Average Exercise Price
Granted (in dollars per share) | $ / shares	$ 10.46		$ 4.67	$ 6.80
Assumptions used in estimating weighted average fair value of the options granted
Expected dividend rate (as a percent)						0.00%
2014 Plan
Stock-based compensation
Term of the plan					10 years
Number of shares of common stock initially reserved under plan for issuance to employees					1,000,000
Maximum annual increase in number of shares issuable by the plan, as a percentage of shares outstanding as of the preceding December 31					4.00%
Shares Available for Grant
Additional shares authorized		722,834
Assumptions used in estimating weighted average fair value of the options granted
Expected dividend rate (as a percent)						0.00%
Corium Plans
Stock-based compensation
Vesting period						4 years
Assumptions used in estimating weighted average fair value of the options granted
Expected volatility, minimum						70.00%
Expected volatility, maximum						77.00%
Risk-free interest rate, minimum						1.42%
Risk-free interest rate, maximum						1.93%
Corium Plans | Minimum
Assumptions used in estimating weighted average fair value of the options granted
Expected term (in years)						5 years 3 months 7 days
Corium Plans | Maximum
Stock-based compensation
Term of the plan						10 years
Assumptions used in estimating weighted average fair value of the options granted
Expected term (in years)						6 years 7 months 17 days
Corium Plans | Stock options
Shares Available for Grant
Balance at the beginning of the period (in shares)						949,885
Additional shares authorized						722,834
Granted (in shares)						(811,450)
Forfeited / Cancelled (in shares)						7,622
Balance at the end of the period (in shares)						868,891	949,885
Stock Options Outstanding
Balance at the beginning of the period (in shares)						2,085,028
Granted (in shares)						811,450
Exercised (in shares)						(9,942)
Forfeited / Cancelled (in shares)						(7,622)
Balance at the end of the period (in shares)						2,878,914	2,085,028
Options exercisable at the end of the period (in shares)						1,588,990
Options vested and expected to vest at the end of the period (in shares)						2,760,209
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) | $ / shares						$ 2.92
Granted (in dollars per share) | $ / shares						6.40
Exercised (in dollars per share) | $ / shares						2.10
Forfeited / Cancelled (in dollars per share) | $ / shares						5.44
Balance at the end of the period (in dollars per share) | $ / shares						3.90	$ 2.92
Options exercisable at the end of the period (in dollars per share) | $ / shares						2.83
Options vested and expected to vest at the end of the period (in dollars per share) | $ / shares						$ 3.80
Weighted Average Remaining Contractual Life
Balance at the end of the period						7 years 1 month 24 days	7 years 7 days
Options exercisable at the end of the period						5 years 9 months 26 days
Options vested and expected to vest at the end of the period						7 years 22 days
Aggregate Intrinsic Value
Balance at the end of the period | $						$ 28,193	$ 6,710
Options exercisable at the end of the period | $						17,249
Options vested and expected to vest at the end of the period | $						$ 27,286
Additional disclosures
Exercise price, minimum(in dollars per share) | $ / shares						$ 2.12
Exercise price, maximum(in dollars per share) | $ / shares						$ 13.36
StrataGent Plan | Stock options | StrataGent, Inc.
Stock-based compensation
Additional shares available for grant assumed by the entity						0
Shares Available for Grant
Balance at the end of the period (in shares)						0

Stock-Based Compensation (Det37

Stock-Based Compensation (Details 2)

May. 20, 2015$ / shares

Jan. 16, 2015shares

Nov. 20, 2014$ / shares

Nov. 19, 2014$ / shares

Mar. 20, 2014itemshares

Jun. 30, 2015USD ($)$ / sharesshares

Jun. 30, 2014USD ($)

Jun. 30, 2015USD ($)$ / sharesshares

Jun. 30, 2014USD ($)

Apr. 20, 2015$ / shares

Sep. 30, 2014shares

Apr. 02, 2014$ / shares

Stock-Based Compensation

Stock-based compensation expense | $

$ 654,000

$ 710,000

$ 2,019,000

$ 960,000

Common stock, shares issued | shares

18,158,559

18,158,559

18,003,883

Assumptions used in estimating weighted average fair value of the shares expected to be purchased

Grant Price

$ 10.46

$ 4.67

$ 6.80

Expected dividend rate (as a percent)

0.00%

2014 Employee Stock Purchase Plan

Stock-Based Compensation

Number of shares of common stock initially reserved under plan for issuance to employees | shares

310,000

Shares available for issuance | shares

372,529

372,529

Term of the plan

10 years

Maximum annual increase in number of shares issuable by the plan, as a percentage of shares outstanding as of the preceding December 31

1.00%

Maximum number of shares to be issued over the term of the plan | shares

4,000,000

Additional shares authorized | shares

181,994

Offering period

24 months

Number of purchase windows during each offering period | item

4

Period of purchase windows during each offering period

6 months

Purchase price of common stock of the lower of the fair market value of the Company's common stock (as a percent)

85.00%

85.00%

Stock-based compensation expense | $

$ 86,000

$ 362,000

Shares issued during the period | shares

119,465

Assumptions used in estimating weighted average fair value of the shares expected to be purchased

Fair value of common stock

$ 5.49

$ 12.31

$ 8

Expected volatility, minimum

47.00%

Expected volatility, maximum

56.00%

Risk-free interest rate, minimum

0.07%

Risk-free interest rate, maximum

0.63%

Expected term, window one (in months)

6 months

Expected term, window two (in months)

12 months

Expected term, window three (in months)

18 months

Expected term, window four (in months)

24 months

2014 Employee Stock Purchase Plan | Minimum

Assumptions used in estimating weighted average fair value of the shares expected to be purchased

Fair value of common stock

$ 5.49

$ 5.49

Grant Price

$ 4.67

Expected term (in years)

6 months

2014 Employee Stock Purchase Plan | Maximum

Assumptions used in estimating weighted average fair value of the shares expected to be purchased

Fair value of common stock

$ 12.31

$ 12.31

Grant Price

$ 10.46

Expected term (in years)

2 years

Stock-Based Compensation (Det38

Stock-Based Compensation (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee stock-based compensation expense
Stock-based compensation	$ 654	$ 710	$ 2,019	$ 960
Additional Disclosure
Unrecognized employee compensation cost, net of estimated forfeitures	5,400		$ 5,400
Weighted-average period over which unrecognized compensation cost is expected to be recognized			2 years 9 months 18 days
Cost of product revenues
Employee stock-based compensation expense
Stock-based compensation	82	91	$ 267	102
Cost of contract research and development revenues
Employee stock-based compensation expense
Stock-based compensation	44	61	147	70
Research and development
Employee stock-based compensation expense
Stock-based compensation	120	68	389	91
General and administrative
Employee stock-based compensation expense
Stock-based compensation	$ 408	$ 490	$ 1,216	$ 697

Product Recall Liability (Detai

Product Recall Liability (Details) $ in Thousands	9 Months Ended	36 Months Ended
	Jun. 30, 2015USD ($)	Sep. 30, 2010item	Oct. 31, 2012USD ($)
Product recall liability
Revised combined remaining liability	$ 3,710		$ 5,000
Changes to the product recall liability
Beginning balance	3,710
Payment of settlement liability	(521)
Ending balance	$ 3,189
Actavis
Product recall liability
Number of voluntary recalls of certain lots and strengths of Fentanyl TDS | item		2

Net Loss and Net Loss per Share

Net Loss and Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic and diluted net loss per share
Net loss attributable to common stockholders, basic and diluted	$ (5,914)	$ (4,981)	$ (19,815)	$ (3,545)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	18,116,021	17,624,327	18,073,879	7,362,142
Earnings Per Share, Basic and Diluted	$ (0.33)	$ (0.28)	$ (1.10)	$ (0.48)
Stock options
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders
Number of anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders	2,878,914	2,000,173	2,878,914	2,000,173
Shares authorized under the 2014 ESPP
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders
Number of anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders	372,529	310,000	372,529	310,000
Common stock warrants
Anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders
Number of anti-dilutive securities excluded from calculation of diluted net income (loss) per share attributable to common stockholders	51,386	128,582	51,386	128,582

Income Taxes (Details)

Income Taxes (Details)	9 Months Ended
	Jun. 30, 2015USD ($)
Income Taxes
Income tax expense	$ 2,000

Segment and Enterprise-Wide I42

Segment and Enterprise-Wide Information (Details)	9 Months Ended
	Jun. 30, 2015item
Segment and Enterprise-Wide Information
Number of business activities	1
Number of segment managers held accountable for operations, or operating results for levels or components	0