Corium International 10-Q 13 May 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2016	May. 10, 2016
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	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Trading Symbol	cori
Entity Common Stock, Shares Outstanding		22,288,067
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 54,445	$ 72,218
Accounts receivable	3,532	4,461
Unbilled accounts receivable	763	812
Inventories, net	3,213	2,902
Prepaid expenses and other current assets	955	1,367
Total current assets	62,908	81,760
Restricted cash	666
Property and equipment, net	11,298	11,593
Debt financing costs, net	652	554
Intangible assets, net	6,951	6,837
TOTAL ASSETS	82,475	100,744
Current liabilities:
Accounts payable	3,412	3,952
Accrued expenses and other current liabilities	3,888	4,091
Long-term debt, current portion	59	57
Capital lease obligations, current portion	492	820
Recall liability, current portion	720	760
Deferred contract revenues, current portion	341	134
Total current liabilities	8,912	9,814
Long-term debt, net of current portion	50,660	49,807
Capital lease obligations, net of current portion		72
Recall liability, net of current portion	1,883	2,229
Deferred contract revenues, net of current portion	3,500	3,500
Total liabilities	$ 64,955	$ 65,422
Commitments and contingencies
Stockholders’ equity:
Common stock, par value of $0.001 per share, 150,000,000 shares authorized; 22,287,830 and 22,160,991 shares issued and outstanding as of March 31, 2016 and September 30, 2015	$ 22	$ 22
Additional paid-in capital	168,167	166,085
Accumulated deficit	(150,669)	(130,785)
Total stockholders’ equity	17,520	35,322
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 82,475	$ 100,744

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Sep. 30, 2015
CONDENSED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	22,287,830	22,160,991
Common stock, shares outstanding	22,287,830	22,160,991

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Product revenues	$ 5,694	$ 7,632	$ 11,666	$ 14,171
Contract research and development revenues	975	3,363	2,245	6,293
Other revenues	293	296	588	593
Total revenues	6,962	11,291	14,499	21,057
Costs and operating expenses:
Cost of product revenues	4,000	5,219	8,298	9,306
Cost of contract research and development revenues	2,803	4,510	5,859	8,227
Research and development expenses	5,593	3,980	10,050	8,177
General and administrative expenses	2,973	2,670	5,990	5,357
Amortization of intangible assets	162	162	321	323
Loss on disposal of equipment	2		2	7
Total costs and operating expenses	15,533	16,541	30,520	31,397
Loss from operations	(8,571)	(5,250)	(16,021)	(10,340)
Interest income	58	4	88	6
Interest expense	(1,971)	(1,896)	(3,948)	(3,565)
Loss before income taxes	(10,484)	(7,142)	(19,881)	(13,899)
Income tax expense			3	2
Net loss and comprehensive loss	$ (10,484)	$ (7,142)	$ (19,884)	$ (13,901)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.47)	$ (0.40)	$ (0.89)	$ (0.77)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)	22,255,365	18,071,320	22,221,666	18,052,809

CONDENSED STATEMENT OF STOCKHOL

CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY - 6 months ended Mar. 31, 2016 - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Sep. 30, 2015	$ 22	$ 166,085	$ (130,785)	$ 35,322
Balance (in shares) at Sep. 30, 2015	22,160,991
Increase (Decrease) in Stockholders' Equity (Deficit)
Issuance of common stock under Employee Stock Purchase Plan		267		267
Issuance of common stock under Employee Stock Purchase Plan (in shares)	56,758
Issuance of common stock upon exercise of stock options		166		166
Issuance of common stock upon exercise of stock options (in shares)	70,081
Stock-based compensation		1,649		1,649
Net loss and comprehensive loss			(19,884)	(19,884)
Balance at Mar. 31, 2016	$ 22	$ 168,167	$ (150,669)	$ 17,520
Balance (in shares) at Mar. 31, 2016	22,287,830

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss and comprehensive loss	$ (19,884)	$ (13,901)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization of property and equipment	942	1,102
Loss on disposal of equipment	2	7
Amortization of intangible assets	321	323
Noncash amortized debt issue costs on long-term debt and capital leases	103	87
Noncash amortized discount on long-term debt and capital leases	10	12
Stock-based compensation expense	1,649	1,364
Changes in operating assets and liabilities:
Accounts receivable	929	(723)
Unbilled accounts receivable	49	153
Inventories, net	(311)	(369)
Prepaid expenses and other current assets	412	606
Accounts payable	(566)	121
Accrued expenses and other current liabilities	679	70
Deferred contract revenues	207	(176)
Recall liability	(386)	(359)
Net cash used by operating activities	(15,844)	(11,683)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(624)	(419)
Payments for patents and licensing rights	(435)	(381)
Change in restricted cash	(666)
Net cash used by investing activities	(1,725)	(800)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt		10,000
Payment of transaction costs associated with issuance of long-term debt and capital leases	(200)	(150)
Principal payments on long-term debt	(35)	(33)
Principal payments on capital lease obligations	(402)	(380)
Proceeds from exercise of stock options	166	13
Proceeds from issuance of common stock under Employee Stock Purchase Plan	267	298
Net cash provided (used) by financing activities	(204)	9,748
NET DECREASE IN CASH AND CASH EQUIVALENTS	(17,773)	(2,735)
CASH AND CASH EQUIVALENTS - Beginning of period	72,218	36,395
CASH AND CASH EQUIVALENTS - End of period	54,445	33,660
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	2,954	3,466
Cash paid for income taxes	3	1
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment purchases included in accounts payable	223	154
Issuance of payment-in-kind notes in lieu of cash interest payments	$ 882	$ 786

Organization, Description of Bu

Organization, Description of Business, and Summary of Significant Accounting Policies	6 Months Ended
	Mar. 31, 2016
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 collaboration agreements with partners. The Company is also engaged in the research and development of its own proprietary transdermal drug delivery products using its Corplex and MicroCor 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 March 31, 2016 and the statements of operations and comprehensive loss for the three and six months ended March 31, 2016 and 2015, statement of stockholders’ equity for the six months ended March 31, 2016 and statements of cash flows for the six months ended March 31, 2016 and 2015 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 March 31, 2016 and its results of operations for the three and six months ended March 31, 2016 and 2015 and cash flows for the six months ended March 31, 2016 and 2015. The financial data and the other financial information contained in these notes to the financial statements related to the three and six month periods are also unaudited. The results of operations for the six months ended March 31, 2016 are not necessarily indicative of the results to be expected for the year ending September 30, 2016 or for any future annual or interim period. The balance sheet as of September 30, 2015 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, 2015 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 16, 2015. 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, 2015. 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. For the three and six months ended March 31, 2016, four partners accounted for 95% of the Company’s revenues and 99% of accounts receivable as of March 31, 2016. These same partners accounted for 84% of accounts receivable as of September 30, 2015. For the three and six months ended March 31, 2015, four partners accounted for 89% of the Company’s revenues. Restricted Cash The Company’s restricted cash consists of cash maintained in a separate deposit account to secure a letter of credit issued by a bank to the landlord under a lease agreement for the Company’s new corporate headquarters. The Company has classified the restricted cash as noncurrent on the condensed balance sheet. Facility Lease On February 12, 2016, the Company entered into a lease agreement pursuant to which the Company will lease approximately 48,240 square feet of space, which will replace the Company’s current headquarters. The lease agreement provides for a term of ten years, commencing on or about August 1, 2016. The Company has an option to extend the term of the lease agreement for an additional seven years. Pursuant to the lease agreement, annual base rent will be approximately $72,360 per month for the first twelve months following the commencement of the term, $110,952 per month for the next twelve months and will increase by approximately 3% annually thereafter. In addition, the lease provides that the landlord will reimburse the Company for up to $2.4 million in tenant improvements. Comprehensive Income (Loss) For the three and six months ended March 31, 2016 and 2015, 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. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers, (Topic 606)” (“ASU 2014-09”). This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”, which defers the effective date of ASU 2014-09 by one year. The ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2017 for public companies and permits the use of either the retrospective or cumulative effect transition method, with early adoption permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. We are currently evaluating the effect, if any, ASU 2014-09 may have on our future financial position, results of operations and cash flows. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which supersedes existing guidance on accounting for leases in "Leases (Topic 840)" and generally requires all leases to be recognized in the statement of financial position. The provisions of ASU 2016-02 are effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The provisions of this ASU are to be applied using a modified retrospective approach. We are currently evaluating the effect that this ASU will have on our future financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 modifies U.S. GAAP by requiring the following, among others: (1) all excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit on the income statement (excess tax benefits are recognized regardless of whether the benefit reduces taxes payable in the current period); (2) excess tax benefits are to be classified along with other income tax cash flows as an operating activity in the statement of cash flows; (3) in the area of forfeitures, an entity can still follow the current U.S. GAAP practice of making an entity-wide accounting policy election to estimate the number of awards that are expected to vest or may instead account for forfeitures when they occur; and (4) classification as a financing activity in the statement of cash flows of cash paid by an employer to the taxing authorities when directly withholding shares for tax withholding purposes. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods. Early adoption is permitted. We are currently evaluating the effect that this ASU will have on our future financial position, results of operations and cash flows.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2016
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 March 31, 2016 Level I Level II Level III Total Financial Assets: Money market funds $ $ — $ — $ As of September 30, 2015 Level I Level II Level III Total Financial Assets: Money market funds $ $ — $ — $ The following financial liabilities have carrying values that differ from their fair value as estimated by the Company based on market quotes for instruments with similar terms and remaining maturities (Level III valuation) (in thousands): As of March 31, 2016 Carrying Fair Value Value Difference Long-term debt $ $ $ As of September 30, 2015 Carrying Fair Value Value Difference Long-term debt $ $ $

Inventories

Inventories	6 Months Ended
	Mar. 31, 2016
Inventories
Inventories	3. Inventories Inventories consist of the following (in thousands): As of March 31, As of September 30, 2016 2015 Raw materials $ $ Work in process Finished goods Total inventories, cost Less inventory reserves Total inventories, net $ $

Long-Term Debt

Long-Term Debt	6 Months Ended
	Mar. 31, 2016
Long-Term Debt.
Long-Term Debt	4. Long-Term Debt Outstanding long-term debt consists of the following (in thousands): As of March 31, As of September 30, 2016 2015 Term loan agreement expiring June 30, 2019, less discount of $51 and $58 as of March 31, 2016 and September 30, 2015. 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 CRG, a structured debt and equity investment management firm. In August 2012 and December 2012, the Company drew down $29.0 million and $6.0 million under this agreement. On November 14, 2014, the agreement was amended to, among other things, increase the principal amount available under the term loan by $10.0 million, extend the interest-only period to June 30, 2018, and extend the 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 (payment-in-kind (“PIK”) notes). Amounts outstanding under the term loan agreement are collateralized by all of the Company’s assets. The amended agreement also provides for a prepayment penalty, the amount of which varies with the date on which prepayment is made, if the Company chooses to repay principal prior to June 30, 2018 or upon other specified events, including a change of control. On December 4, 2014, the Company borrowed the remaining $10.0 million of principal provided for in the amended agreement. As of March 31, 2016 and September 30, 2015, the Company had converted $5.2 million and $4.4 million of interest into PIK notes, each of which added to the then-outstanding principal, and is included in the balances shown as of those dates. As of March 31, 2016, the principal amount outstanding under the term loan agreement, including all PIK notes, was $50.2 million. The term loan agreement was amended in November 2015 to modify the financial covenants for minimum annual revenues (beginning with the 12 months ended June 30, 2016) 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	6 Months Ended
	Mar. 31, 2016
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 March 31, Six Months Ended March 31, 2016 2015 2016 2015 Teva $ $ $ $ Par P&G Agile Other Total revenues $ $ $ $ Included in total revenues above are royalties and profit sharing, which totaled $0.5 million and $1.2 million for the three and six months ended March 31, 2016, compared to $0.6 million and $1.2 million for the corresponding periods in 2015.

Warrants

Warrants	6 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and September 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 ten 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	6 Months Ended
	Mar. 31, 2016
Convertible Preferred Stock, Common Stock and Stockholders' Equity
Convertible Preferred Stock, Common Stock and Stockholders' Equity	7. Convertible Preferred Stock, Common Stock and Stockholders' Equity Convertible Preferred Stock The Company was authorized to issue up to 5.0 million shares of preferred stock as of March 31, 2016 and September 30, 2015 with a par value of $0.001 per share. No preferred stock was outstanding as of those dates. Common Stock The Company was authorized to issue up to 150.0 million shares of common stock as of March 31, 2016 and September 30, 2015 with a par value of $0.001 per share. As of March 31, 2016, there were 22,287,830 shares of common stock outstanding and as of September 30, 2015, there were 22,160,991 shares of common stock outstanding. Controlled Equity Offering In December 2015, the Company entered into a Controlled Equity Offering SM Sales Agreement with Cantor Fitzgerald & Co., as agent (“Cantor Fitzgerald”), pursuant to which the Company may offer and sell, from time to time through Cantor Fitzgerald, shares of its common stock, par value $0.001 per share, with aggregate proceeds of up to $20.0 million. The offer and sale of these shares will be made pursuant to a shelf registration statement on Form S-3 and the related prospectus (File No. 333-204025) filed by the Company with the SEC on May 8, 2015 and declared effective by the SEC on May 21, 2015, as supplemented by a prospectus supplement dated and filed with the SEC on December 30, 2015. The Company will pay Cantor Fitzgerald a commission of 3.0% of the aggregate gross proceeds from any shares sold by Cantor Fitzgerald. During the six months ended March 31, 2016, the Company did not sell any shares under this sales agreement.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Mar. 31, 2016
Stock-Based Compensation
Stock-Based Compensation	8. Stock-Based Compensation Equity Incentive Plans As of March 31, 2016 and September 30, 2015, the Company had three equity incentive plans, all of which are sponsored by the Company. On March 20, 2014, the Company's board of directors approved the adoption of the 2014 Equity Incentive Plan (the "2014 Plan"). Under the 2014 Plan, the Company had initially 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 2014 Plan provides for the grant of incentive stock options (ISOs), nonstatutory stock options (NSOs), stock appreciation rights, restricted stock awards, restricted stock unit awards, stock bonus awards, performance-based stock awards, and other forms of equity compensation, all of which may be granted to employees (including officers), non-employee directors and consultants of the Company. 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 will be 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 11, 2016 and January 16, 2015, the Company’s board of directors authorized an increase of 888,776 and 722,834 shares to be added to the total number of shares of common stock issuable under the 2014 Plan. As of March 31, 2016 and September 30, 2015, the Company had reserved 4,564,068 and 3,745,373 shares of common stock for issuance pursuant to the Corium Plans and had 1,121,886 and 830,396 shares of common stock available for grant pursuant to the 2014 Plan. The term “Corium Plans” refers to the 2014 Plan, the 2012 Plan and the 2002 Stock Option Plan. The exercise price of each option granted under the Corium 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 restricted stock unit awards granted under the 2014 Plan typically vest over a four -year period. A summary of activity under the Corium Plans during the six months ended March 31, 2016 is as follows: Weighted Weighted Average Stock Options Average Remaining Aggregate and Awards Exercise Contractual Intrinsic Value Outstanding Price Life (Years) (In thousands) Balance - September 30, 2015 $ $ Options granted $ Restricted stock unit awards granted $ Options exercised $ Options forfeited / cancelled $ Balance - March 31, 2016 $ $ — Options and awards exercisable - March 31, 2016 $ $ Options and awards vested and expected to vest - March 31, 2016 $ $ — All outstanding stock options under the Corium Plans as of March 31, 2016 have an exercise price between $2.12 and $14.12 per share. The weighted-average fair value of the stock options granted for the six months ended March 31, 2016 were estimated using the Black-Scholes option-pricing model with the following assumptions: Six Months Ended March 31, 2016 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 vesting commencement date and the contractual expiration period of the stock-based awards. 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 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. 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"). 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 as agreed to by the Company’s board of directors. No more than 4.0 million shares may be issued over the ten -year t erm 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 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. As of March 31, 2016 and September 30, 2015, 573,402 and 372,529 shares of common stock were available for issuance pursuant to the 2014 ESPP. For the three and six months ended March 31, 2016 , the Company recorded stock-based compensation expense of $ 61,000 and $138,000 , compared to $111,000 and $275,000 for the corresponding periods in 2015 related to the 2014 ESPP. For the six months ended March 31, 2016 and 2015, the Company issued 56,758 and 61,042 shares of common stock to employees related to the 2014 ESPP. The fair value of the purchase rights granted under the 2014 ESPP between April 2, 2014 and November 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: Six Months Ended March 31, 2016 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 $5.49 for the offering period commencing November 20, 2014 and $6.78 for the offering period commencing on November 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 $4.67 for the offering period commencing November 20, 2014 and $5.76 for the offering period commencing November 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. Stock-Based Compensation Expense Employee stock-based compensation expense for the three and six months ended March 31, 2016 and 2015 is classified in the condensed statements of operations and comprehensive loss as follows (in thousands): Three months ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 Cost of product revenues $ $ $ $ Cost of contract research and development revenues Research and development General and administrative Total stock-based compensation $ $ $ $ As of March 31, 2016 , there was a total of $6.7 million of unrecognized employee stock-based compensation expense, net of estimated forfeitures, related to unvested awards, which is expected to be recognized on a straight-line basis over a weighted-average period of approximately 2.6 years.

Product Recall Liability

Product Recall Liability	6 Months Ended
	Mar. 31, 2016
Product Recall Liability
Product Recall Liability	9. Product Recall Liability In fiscal 2008 and fiscal 2010, Allergan, Inc., formerly known as Actavis Inc. (“ Actavis”) issued two voluntary recalls of certain lots and strengths of Fentanyl TDS manufactured by the Company and sold and distributed at that time 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 the settlement 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 in those prior periods 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 Company made settlement payments of $0.2 million during the three months ended March 31, 2016 and 2015 and $0.4 million during the six months ended March 31, 2016 and 2015.

Net Loss and Net Loss per Share

Net Loss and Net Loss per Share Attributable to Common Stockholders	6 Months Ended
	Mar. 31, 2016
Net Loss and Net Loss per Share Attributable to Common Stockholders
Net Loss and Net Loss per Share Attributable to Common Stockholders	10. Net Loss and Net 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 six months ended March 31, 2016 and 2015 (in thousands, except share and per share data): Three Months Ended Six Months Ended March 31, March 31, 2016 2015 2016 2015 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 Six Months Ended March 31, March 31, 2016 2015 2016 2015 Stock options to purchase common stock Unvested restricted stock unit awards — — Shares authorized under the 2014 ESPP Common stock warrants

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2016
Income Taxes
Income Taxes	11. Income Taxes The Company did not record a provision for Federal income taxes for the three and six months ended March 31, 2016 because it expects to generate a net operating loss for the year ending September 30, 2016. The income tax expense of $3,000 for the six months ended March 31, 2016 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	6 Months Ended
	Mar. 31, 2016
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 primarily in North America and all long-lived assets are located in the United States.

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2016
Subsequent Events
Subsequent Events	13. Subsequent Events On May 10, 2016, we entered into a Lease Amendment #1 (the “Lease Amendment”) with 4741 Talon Court L.L.C. (“Landlord”), which amends the lease agreement, dated April 30, 2012, for our warehouse facility in Grand Rapids, Michigan, located at 4741 Talon Court SE (the “Lease”). The Lease term would have expired on April 30, 2017 and the Lease Amendment extends that term until April 30, 2019.

Organization, Description of 20

Organization, Description of Business, and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2016
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 collaboration agreements with partners. The Company is also engaged in the research and development of its own proprietary transdermal drug delivery products using its Corplex and MicroCor 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 March 31, 2016 and the statements of operations and comprehensive loss for the three and six months ended March 31, 2016 and 2015, statement of stockholders’ equity for the six months ended March 31, 2016 and statements of cash flows for the six months ended March 31, 2016 and 2015 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 March 31, 2016 and its results of operations for the three and six months ended March 31, 2016 and 2015 and cash flows for the six months ended March 31, 2016 and 2015. The financial data and the other financial information contained in these notes to the financial statements related to the three and six month periods are also unaudited. The results of operations for the six months ended March 31, 2016 are not necessarily indicative of the results to be expected for the year ending September 30, 2016 or for any future annual or interim period. The balance sheet as of September 30, 2015 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, 2015 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 16, 2015. 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, 2015.
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. For the three and six months ended March 31, 2016, four partners accounted for 95% of the Company’s revenues and 99% of accounts receivable as of March 31, 2016. These same partners accounted for 84% of accounts receivable as of September 30, 2015. For the three and six months ended March 31, 2015, four partners accounted for 89% of the Company’s revenues. Restricted Cash The Company’s restricted cash consists of cash maintained in a separate deposit account to secure a letter of credit issued by a bank to the landlord under a lease agreement for the Company’s new corporate headquarters. The Company has classified the restricted cash as noncurrent on the condensed balance sheet. Facility Lease On February 12, 2016, the Company entered into a lease agreement pursuant to which the Company will lease approximately 48,240 square feet of space, which will replace the Company’s current headquarters. The lease agreement provides for a term of ten years, commencing on or about August 1, 2016. The Company has an option to extend the term of the lease agreement for an additional seven years. Pursuant to the lease agreement, annual base rent will be approximately $72,360 per month for the first twelve months following the commencement of the term, $110,952 per month for the next twelve months and will increase by approximately 3% annually thereafter. In addition, the lease provides that the landlord will reimburse the Company for up to $2.4 million in tenant improvements.
Comprehensive Income (Loss)	Comprehensive Income (Loss) For the three and six months ended March 31, 2016 and 2015, 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.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2016
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 March 31, 2016 Level I Level II Level III Total Financial Assets: Money market funds $ $ — $ — $ As of September 30, 2015 Level I Level II Level III Total Financial Assets: Money market funds $ $ — $ — $
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 that differ from their fair value as estimated by the Company based on market quotes for instruments with similar terms and remaining maturities (Level III valuation) (in thousands): As of March 31, 2016 Carrying Fair Value Value Difference Long-term debt $ $ $ As of September 30, 2015 Carrying Fair Value Value Difference Long-term debt $ $ $

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Mar. 31, 2016
Inventories
Schedule of Inventories	Inventories consist of the following (in thousands): As of March 31, As of September 30, 2016 2015 Raw materials $ $ Work in process Finished goods Total inventories, cost Less inventory reserves Total inventories, net $ $

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Mar. 31, 2016
Long-Term Debt.
Schedule of the entity's outstanding debt	Outstanding long-term debt consists of the following (in thousands): As of March 31, As of September 30, 2016 2015 Term loan agreement expiring June 30, 2019, less discount of $51 and $58 as of March 31, 2016 and September 30, 2015. 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 Arr24

Collaboration and Partner Arrangements (Tables)	6 Months Ended
	Mar. 31, 2016
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 March 31, Six Months Ended March 31, 2016 2015 2016 2015 Teva $ $ $ $ Par P&G Agile Other Total revenues $ $ $ $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Mar. 31, 2016
Stock-Based Compensation
Schedule of valuation assumptions used	Six Months Ended March 31, 2016 Expected term (in years) - Risk-free interest rate % - % Expected volatility % - % Expected dividend rate %
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 six months ended March 31, 2016 and 2015 is classified in the condensed statements of operations and comprehensive loss as follows (in thousands): Three months ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 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 Stock Options Average Remaining Aggregate and Awards Exercise Contractual Intrinsic Value Outstanding Price Life (Years) (In thousands) Balance - September 30, 2015 $ $ Options granted $ Restricted stock unit awards granted $ Options exercised $ Options forfeited / cancelled $ Balance - March 31, 2016 $ $ — Options and awards exercisable - March 31, 2016 $ $ Options and awards vested and expected to vest - March 31, 2016 $ $ —
2014 Employee Stock Purchase Plan
Stock-Based Compensation
Schedule of valuation assumptions used	Six Months Ended March 31, 2016 Fair value of common stock $ – $ Grant price $ – $ Expected term (in years) – Expected volatility % – % Risk-free interest rate % – % Expected dividend rate %

Net Loss and Net Loss per Sha26

Net Loss and Net Loss per Share Attributable to Common Stockholders (Tables)	6 Months Ended
	Mar. 31, 2016
Net Loss and Net Loss per Share Attributable to Common Stockholders
Schedule of computation of the Company's basic and diluted net 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 six months ended March 31, 2016 and 2015 (in thousands, except share and per share data): Three Months Ended Six Months Ended March 31, March 31, 2016 2015 2016 2015 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 loss per share attributable to common stockholders	Three Months Ended Six Months Ended March 31, March 31, 2016 2015 2016 2015 Stock options to purchase common stock Unvested restricted stock unit awards — — Shares authorized under the 2014 ESPP Common stock warrants

Organization, Description of 27

Organization, Description of Business and Summary of Significant Accounting Policies (Details) - Partnership	Sep. 30, 2015	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Concentration of credit risk
Number of partners		4		4
Revenues. | Customer concentration
Concentration of credit risk
Number of partners			4		4
Revenues. | Customer concentration | Four partners
Concentration of credit risk
Concentration risk percentage		95.00%	89.00%	95.00%	89.00%
Accounts receivable | Credit concentration
Concentration of credit risk
Number of partners						4
Accounts receivable | Credit concentration | Four partners
Concentration of credit risk
Concentration risk percentage	84.00%	99.00%

Organization, Description of 28

Organization, Description of Business and Summary of Significant Accounting Policies (Facility Lease) (Details)	Feb. 12, 2016USD ($)ft²	Mar. 31, 2016USD ($)
Organization, Description of Business, and Summary of Significant Accounting Policies
Area of property leased | ft²	48,240
Lease agreement term	10 years
Lease agreement extension term	7 years
Annual base rent for first twelve months	$ 72,360
Annual base rent for next twelve months	$ 110,952
Annual increase in base rent (as a percent)	3.00%
Amount of tenant improvements to be reimbursed by the landlord		$ 2,400,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis - Money market funds - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Financial Assets
Total financial assets	$ 54,583	$ 71,970
Level I
Financial Assets
Total financial assets	$ 54,583	$ 71,970

Fair Value Measurements (Level

Fair Value Measurements (Level III Valuation) (Details) - Level III - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Carrying Value
Fair value measurements
Long-term debt	$ 50,719	$ 49,864
Fair Value
Fair value measurements
Long-term debt	50,801	49,967
Difference
Fair value measurements
Long-term debt	$ 82	$ 103

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Inventories
Raw materials	$ 1,385	$ 1,573
Work in process	910	852
Finished goods	1,020	612
Total inventories, cost	3,315	3,037
Less inventory reserves	(102)	(135)
Total inventories, net	$ 3,213	$ 2,902

Long-Term Debt (Details)

Long-Term Debt (Details)	Dec. 04, 2014USD ($)	Nov. 14, 2014USD ($)	Dec. 31, 2012USD ($)	Aug. 31, 2012USD ($)	Mar. 31, 2016USD ($)installment	Mar. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2015USD ($)	Mar. 31, 2016USD ($)installment	Jul. 13, 2012USD ($)
Long-term Debt
Total					$ 50,719,000		$ 49,864,000	$ 49,864,000	$ 50,719,000
Less current portion					59,000		57,000	57,000	59,000
Long-term Debt, Excluding Current Maturities					50,660,000		49,807,000	49,807,000	50,660,000
Proceeds from issuance of long-term debt						$ 10,000,000
Term loan agreement expiring on June 30, 2019
Long-term Debt
Total					50,185,000		49,295,000	49,295,000	50,185,000
Unamortized discount					$ 51,000		58,000	58,000	$ 51,000
Interest rate (as a percent)					15.00%				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				4
Percentage of cash payment the entity can defer by converting interest due into additional notes		3.50%
Principal amount outstanding					$ 50,200,000				$ 50,200,000
Notes payable due April 2017
Long-term Debt
Total					51,000		66,000	$ 66,000	$ 51,000
Monthly payments of principal and interest					$ 3,000		$ 3,000
Interest rate (as a percent)					7.00%		7.00%	7.00%	7.00%
Notes payable due in November 2024
Long-term Debt
Total					$ 483,000		$ 503,000	$ 503,000	$ 483,000
Monthly payments of principal and interest					$ 6,000		$ 6,000
Interest rate (as a percent)					7.00%		7.00%	7.00%	7.00%
Pik notes
Long-term Debt
Portion of interest due converted into additional notes								$ 4,400,000	$ 5,200,000

Collaboration and Partner Arr33

Collaboration and Partner Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Collaboration and partner arrangements
Total revenues	$ 6,962	$ 11,291	$ 14,499	$ 21,057
Royalties and profit sharing	500	600	1,200	1,200
Teva
Collaboration and partner arrangements
Total revenues	1,277	3,922	2,795	5,826
Par
Collaboration and partner arrangements
Total revenues	1,778	2,611	3,593	4,863
P&G
Collaboration and partner arrangements
Total revenues	2,815	2,539	5,902	6,216
Agile
Collaboration and partner arrangements
Total revenues	762	980	1,415	1,867
Other
Collaboration and partner arrangements
Total revenues	$ 330	$ 1,239	$ 794	$ 2,285

Warrants (Details)

Warrants (Details) - Common stock warrants - $ / shares	6 Months Ended
	Mar. 31, 2016	Sep. 30, 2015
Warrants
Warrants outstanding (in shares)	51,386	51,386
Weighted-average exercise price (in dollars per share)	$ 9.26	$ 9.26
Maximum
Warrants
Warrant term	10 years

Convertible Preferred Stock, 35

Convertible Preferred Stock, Common Stock and Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Dec. 31, 2015	Mar. 31, 2016	Sep. 30, 2015
Preferred Stock
Authorized preferred stock (in shares)		5,000,000	5,000,000
Preferred stock, par value (in dollars per share)		$ 0.001	$ 0.001
Preferred stock outstanding (in shares)		0	0
Common Stock
Common shares authorized		150,000,000	150,000,000
Common shares par value (in dollars per share)		$ 0.001	$ 0.001
Common stock, shares outstanding		22,287,830	22,160,991
Shares sold		22,287,830	22,160,991
Cantor Fitzgerald
Common Stock
Common shares par value (in dollars per share)	$ 0.001
Aggregate proceeds amount authorized from Controlled Equity Offering Sales Agreement	$ 20
Shares sold, commission percentage	3.00%
Shares sold		0

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands	Jan. 11, 2016shares	Nov. 20, 2015$ / shares	Jan. 16, 2015shares	Nov. 20, 2014$ / shares	Mar. 20, 2014shares	Mar. 31, 2016USD ($)plan$ / sharesshares	Mar. 31, 2016USD ($)plan$ / sharesshares	Sep. 30, 2015USD ($)plan$ / sharesshares
Stock-Based Compensation
Number of plans | plan						3	3	3
Weighted Average Exercise Price
Granted (in dollars per share) | $ / shares		$ 5.76		$ 4.67
Assumptions used in estimating weighted average fair value of the options granted
Risk-free interest rate, minimum							1.32%
Risk-free interest rate, maximum							1.97%
Expected volatility, minimum							74.00%
Expected volatility, maximum							77.00%
Expected dividend rate (as a percent)							0.00%
Minimum
Assumptions used in estimating weighted average fair value of the options granted
Expected term (in years)							5 years 3 months 7 days
Maximum
Assumptions used in estimating weighted average fair value of the options granted
Expected term (in years)							6 years 9 months 7 days
2014 Plan
Stock-Based Compensation
Term of the plan					10 years
Number of shares of common stock reserved under plan for issuance to employees					1,000,000
Shares of common stock available for grant						1,121,886	1,121,886	830,396
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%
Additional shares authorized	888,776		722,834
2014 Plan | Restricted stock unit awards
Stock-Based Compensation
Vesting period						4 years
Corium Plans
Stock-Based Compensation
Vesting period							4 years
Number of shares of common stock reserved under plan for issuance to employees						4,564,068	4,564,068	3,745,373
Corium Plans | Maximum
Stock-Based Compensation
Term of the plan							10 years
Corium Plans | Stock options
Stock-Based Compensation
Options granted (in shares)							619,100
Shares granted (in shares)							30,000
Grant date fair value (in dollars per share) | $ / shares							$ 7.94
Award activity
Balance at the beginning of the period (in shares)							2,914,977
Granted (in shares)							619,100
Restricted stock unit awards granted							30,000
Exercised (in shares)							(70,081)
Forfeited / Cancelled (in shares)							(51,814)
Balance at the end of the period (in shares)						3,442,182	3,442,182	2,914,977
Options and awards exercisable at the end of the period (in shares)						1,932,612	1,932,612
Options and awards vested and expected to vest at the end of the period (in shares)						3,296,856	3,296,856
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) | $ / shares							$ 4.04
Granted (in dollars per share) | $ / shares							7.72
Restricted stock unit awards, grant date fair value (in dollars per share) | $ / shares							7.94
Exercised (in dollars per share) | $ / shares							2.38
Forfeited / Cancelled (in dollars per share) | $ / shares							4.55
Balance at the end of the period (in dollars per share) | $ / shares						$ 4.69	4.69	$ 4.04
Options and awards exercisable at the end of the period (in dollars per share) | $ / shares						3.26	3.26
Options and awards vested and expected to vest at the end of the period (in dollars per share) | $ / shares						$ 4.58	$ 4.58
Weighted Average Remaining Contractual Life
Balance at the end of the period							7 years 26 days	6 years 11 months 9 days
Options and awards exercisable at the end of the period							5 years 8 months 19 days
Options and awards vested and expected to vest at the end of the period							6 years 11 months 23 days
Aggregate Intrinsic Value
Balance at the end of the period | $								$ 15,482
Options and awards exercisable at the end of the period | $						$ 1,167	$ 1,167
Additional disclosures
Exercise price, minimum(in dollars per share) | $ / shares							$ 2.12
Exercise price, maximum(in dollars per share) | $ / shares							$ 14.12
2014 Employee Stock Purchase Plan
Stock-Based Compensation
Term of the plan					10 years
Number of shares of common stock reserved under plan for issuance to employees						573,402	573,402	372,529
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%
Assumptions used in estimating weighted average fair value of the options granted
Risk-free interest rate, minimum							0.07%
Risk-free interest rate, maximum							0.91%
Expected volatility, minimum							47.00%
Expected volatility, maximum							63.00%
Expected dividend rate (as a percent)							0.00%
2014 Employee Stock Purchase Plan | Minimum
Weighted Average Exercise Price
Granted (in dollars per share) | $ / shares							$ 4.67
Assumptions used in estimating weighted average fair value of the options granted
Expected term (in years)							6 months
2014 Employee Stock Purchase Plan | Maximum
Weighted Average Exercise Price
Granted (in dollars per share) | $ / shares							$ 5.76
Assumptions used in estimating weighted average fair value of the options granted
Expected term (in years)							2 years

Stock-Based Compensation - 2014

Stock-Based Compensation - 2014 Employee Stock Purchase Plan (Details)	Nov. 20, 2015$ / shares	Nov. 20, 2014$ / shares	Mar. 20, 2014shares	Mar. 31, 2016USD ($)$ / sharesshares	Mar. 31, 2015USD ($)	Mar. 31, 2016USD ($)$ / sharesshares	Mar. 31, 2015USD ($)shares	Mar. 31, 2016item$ / sharesshares	Sep. 30, 2015shares
2014 Employee Stock Purchase Plan
Stock-based compensation | $				$ 871,000	$ 676,000	$ 1,649,000	$ 1,364,000
Assumptions used in estimating weighted average fair value of the shares expected to be purchased
Grant Price	$ 5.76	$ 4.67
Expected volatility, minimum						74.00%
Expected volatility, maximum						77.00%
Risk-free interest rate, minimum						1.32%
Risk-free interest rate, maximum						1.97%
Expected dividend rate (as a percent)						0.00%
Minimum
Assumptions used in estimating weighted average fair value of the shares expected to be purchased
Expected term (in years)						5 years 3 months 7 days
Maximum
Assumptions used in estimating weighted average fair value of the shares expected to be purchased
Expected term (in years)						6 years 9 months 7 days
2014 Employee Stock Purchase Plan
2014 Employee Stock Purchase Plan
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
Number of shares of common stock reserved under plan for issuance to employees | shares				573,402		573,402		573,402	372,529
Stock-based compensation | $				$ 61,000	$ 111,000	$ 138,000	$ 275,000
Shares issued during the period | shares						56,758	61,042
Number of purchase windows during each offering period | item								4
Purchase price of common stock of the lower of the fair market value of the Company's common stock (as a percent)						85.00%
Assumptions used in estimating weighted average fair value of the shares expected to be purchased
Fair value of common stock	$ 6.78	$ 5.49
Expected volatility, minimum						47.00%
Expected volatility, maximum						63.00%
Risk-free interest rate, minimum						0.07%
Risk-free interest rate, maximum						0.91%
Expected dividend rate (as a percent)						0.00%
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		$ 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				$ 6.78		$ 6.78		$ 6.78
Grant Price						$ 5.76
Expected term (in years)						2 years

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Employee stock-based compensation expense
Stock-based compensation	$ 871	$ 676	$ 1,649	$ 1,364
Additional Disclosure
Unrecognized employee compensation cost, net of estimated forfeitures	6,700		$ 6,700
Weighted-average period over which unrecognized compensation cost is expected to be recognized			2 years 7 months 6 days
Cost of product revenues
Employee stock-based compensation expense
Stock-based compensation	89	82	$ 164	185
Cost of contract research and development revenues
Employee stock-based compensation expense
Stock-based compensation	49	46	92	103
Research and development
Employee stock-based compensation expense
Stock-based compensation	183	143	340	268
General and administrative
Employee stock-based compensation expense
Stock-based compensation	$ 550	$ 405	$ 1,053	$ 808

Product Recall Liability (Detai

Product Recall Liability (Details) $ in Millions	3 Months Ended		6 Months Ended		36 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Sep. 30, 2011item	Sep. 30, 2010item	Oct. 31, 2012USD ($)
Product recall liability
Revised combined remaining liability | $							$ 5
Payment of settlement liability | $	$ 0.2	$ 0.2	$ 0.4	$ 0.4
Actavis
Product recall liability
Number of voluntary recalls of certain lots and strengths of Fentanyl TDS | item						2
Number of product recalls for which the company negotiated financial statements | item					2

Net Loss and Net Loss per Sha40

Net Loss and Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders
Net loss attributable to common stockholders, basic and diluted	$ (10,484)	$ (7,142)	$ (19,884)	$ (13,901)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	22,255,365	18,071,320	22,221,666	18,052,809
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.47)	$ (0.40)	$ (0.89)	$ (0.77)
Stock options
Anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders
Number of anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders	3,412,182	2,767,810	3,412,182	2,767,810
Unvested restricted stock unit awards
Anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders
Number of anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders	30,000		30,000
Shares authorized under the 2014 ESPP
Anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders
Number of anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders	573,402	430,952	573,402	430,952
Common stock warrants
Anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders
Number of anti-dilutive securities excluded from calculation of diluted net loss per share attributable to common stockholders	51,386	128,582	51,386	128,582

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Taxes
Income tax expense	$ 3	$ 2

Segment and Enterprise-Wide I42

Segment and Enterprise-Wide Information (Details)	6 Months Ended
	Mar. 31, 2016item
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