Corium International 10-Q 14 Feb 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Feb. 09, 2017
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	Dec. 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		29,224,792
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 33,075	$ 39,833
Accounts receivable	2,164	4,336
Unbilled accounts receivable	557	346
Inventories	1,932	2,424
Prepaid expenses and other current assets	1,435	1,341
Total current assets	39,163	48,280
Restricted cash	666	666
Property and equipment, net	11,702	11,147
Intangible assets, net	7,092	7,057
TOTAL ASSETS	58,623	67,150
Current liabilities:
Accounts payable	3,836	2,737
Accrued expenses and other current liabilities	4,073	4,271
Long-term debt, current portion	70	77
Capital lease obligations, current portion		72
Recall liability, current portion	207	460
Deferred contract revenues, current portion	288	355
Total current liabilities	8,474	7,972
Long-term debt, net of current portion	50,939	50,966
Recall liability, net of current portion	1,968	1,859
Deferred contract revenues, net of current portion	3,500	3,500
Total liabilities	64,881	64,297
Commitments and contingencies
Stockholders’ equity (deficit):
Common stock, par value of $0.001 per share, 150,000,000 shares authorized; 22,557,450 and 22,391,631 shares issued and outstanding as of December 31, 2016 and September 30, 2016	23	22
Additional paid-in capital	171,636	170,319
Accumulated deficit	(177,917)	(167,488)
Total stockholders’ equity (deficit)	(6,258)	2,853
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$ 58,623	$ 67,150

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2016	Sep. 30, 2016
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	22,557,450	22,391,631
Common stock, shares outstanding	22,557,450	22,391,631

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Product revenues	$ 5,738	$ 5,972
Contract research and development revenues	963	1,270
Other revenues	267	295
Total revenues	6,968	7,537
Costs and operating expenses:
Cost of product revenues	4,081	4,298
Cost of contract research and development revenues	2,120	3,056
Research and development expenses	5,998	4,457
General and administrative expenses	3,005	3,017
Amortization of intangible assets	177	159
Total costs and operating expenses	15,381	14,987
Loss from operations	(8,413)	(7,450)
Interest income	28	30
Interest expense	(2,042)	(1,977)
Loss before income taxes	(10,427)	(9,397)
Income tax expense	2	3
Net loss and comprehensive loss	$ (10,429)	$ (9,400)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.46)	$ (0.42)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)	22,453,172	22,188,332

STATEMENT OF STOCKHOLDERS' EQUI

STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) - 3 months ended Dec. 31, 2016 - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Sep. 30, 2016	$ 22	$ 170,319	$ (167,488)	$ 2,853
Balance (in shares) at Sep. 30, 2016	22,391,631
Increase (Decrease) in Stockholders' Equity (Deficit)
Issuance of common stock under Employee Stock Purchase Plan	$ 1	225		226
Issuance of common stock under Employee Stock Purchase Plan (in shares)	69,886
Issuance of common stock upon exercise of stock options		222		222
Issuance of common stock upon exercise of stock options (in shares)	95,933
Stock-based compensation		870		870
Net loss and comprehensive loss			(10,429)	(10,429)
Balance at Dec. 31, 2016	$ 23	$ 171,636	$ (177,917)	$ (6,258)
Balance (in shares) at Dec. 31, 2016	22,557,450

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss and comprehensive loss	$ (10,429)	$ (9,400)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization of property and equipment	318	479
Amortization of intangible assets	177	159
Noncash amortized debt issue costs on long-term debt and capital leases	68	48
Noncash amortized discount on long-term debt and capital leases	4	6
Stock-based compensation expense	870	778
Issuance of payment-in-kind notes in lieu of cash interest payments	458	441
Changes in operating assets and liabilities:
Accounts receivable	2,172	1,339
Unbilled accounts receivable	(211)	(71)
Inventories	492	38
Prepaid expenses and other current assets	(94)	534
Accounts payable	1,053	(1,453)
Accrued expenses and other current liabilities	(742)	(995)
Deferred contract revenues	(67)	(30)
Recall liability	(144)	(190)
Net cash used by operating activities	(6,075)	(8,317)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(827)	(467)
Payments for patents and licensing rights	(212)	(266)
Net cash used by investing activities	(1,039)	(733)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of transaction costs associated with issuance of long-term debt		(200)
Principal payments on long-term debt	(19)	(18)
Principal payments on capital lease obligations	(73)	(199)
Proceeds from exercise of stock options	222	9
Proceeds from issuance of common stock under Employee Stock Purchase Plan	226	268
Net cash provided (used) by financing activities	356	(140)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(6,758)	(9,190)
CASH AND CASH EQUIVALENTS - Beginning of period	39,833	72,218
CASH AND CASH EQUIVALENTS - End of period	33,075	63,028
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	1,512	1,481
Cash paid for income taxes	1	3
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment purchases included in accounts payable	219	220
Unpaid transaction costs associated with issuance of long-term debt	$ 544
Unpaid deferred offering costs		$ 225

Organization, Description of Bu

Organization, Description of Business, and Summary of Significant Accounting Policies	3 Months Ended
	Dec. 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 the Company’s broad experience with advanced 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 December 31, 2016 and the statements of operations and comprehensive loss for the three months ended December 31, 2016 and 2015, statement of stockholders’ equity for the three months ended December 31, 2016 and statements of cash flows for the three months ended December 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 December 31, 2016 and its results of operations for the three months ended December 31, 2016 and 2015 and cash flows for the three months ended December 31, 2016 and 2015. The financial data and the other financial information contained in these notes to the financial statements related to the three month periods are also unaudited. The results of operations for the three months ended December 31, 2016 are not necessarily indicative of the results to be expected for the year ending September 30, 2017 or for any future annual or interim period. The balance sheet as of September 30, 2016 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, 2016 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 20, 2016. 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, 2016. Liquidity With the exception of fiscal 2013, the Company has incurred losses from operations since fiscal 2006 and has an accumulated deficit of $177.9 million as of December 31, 2016. The Company has financed its operations primarily through the proceeds from the sale of equity securities, and various debt and capital lease financings. The Company believes that the existing cash and cash equivalents, including the proceeds of the additional equity financing obtained subsequent to December 31, 2016, as disclosed in Note 14, will not be sufficient to fund operations as currently planned through the next 12 months, which raises substantial doubt about the Company’s ability to continue as a going concern. The Company has based this belief on assumptions and estimates that may prove to be wrong, and the Company could spend its available financial resources less or more rapidly than currently expected. The Company will continue to require additional sources of cash to develop product candidates and to fund development and commercialization operations. Management intends to seek additional capital through collaborative or other funding arrangements with partners, equity and/or debt financings, or through other sources of financing. In the event that additional financing is required from outside sources, the Company may not be able to raise such financing on terms acceptable to the Company or at all. If the Company is unable to raise additional capital when required or on acceptable terms, the Company may be required to significantly delay, scale back or discontinue one or more of the product development programs or commercialization efforts or other aspects of the Company’s business plans, and its business, operating results and financial condition would be adversely affected. The Company is currently in compliance with the covenants under the Company’s term loan agreement with CRG, a structured debt and equity investment management firm, based on the Company’s current forecast estimates and expectations. However, the Company anticipates that its current cash and cash equivalent balances will not be sufficient to maintain compliance with the minimum liquidity financial covenant beyond fiscal 2017. Failure to meet this covenant would be considered an event of default on the Company’s debt obligation, and could result in the acceleration of the Company’s existing indebtedness, causing the outstanding principal of approximately $51.6 million, plus an early prepayment premium, to be immediately due and payable to CRG. The Company does not currently have sufficient cash and cash equivalents to repay all of the outstanding debt in full if repayment of such debt were accelerated. Due to these uncertainties, there is substantial doubt about the Company’s ability to continue as a going concern. The unaudited condensed financial statements as of December 31, 2016 have been prepared under the assumption that the Company will continue as a going concern for the next 12 months. The Company’s ability to continue as a going concern is dependent upon its ability to secure new sources of revenue, obtain additional equity and/or debt financing, generate operating efficiencies, and reduce expenditures. The unaudited condensed financial statements as of December 31, 2016 do not include any adjustments that might result from the outcome of this uncertainty. 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, deferred revenues, impairment of long-lived assets, determination of fair value of stock-based awards and other debt- and equity-related instruments, accounting for clinical trials 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 months ended December 31, 2016, three partners accounted for 93% of the Company’s revenues and two partners accounted for 93% of accounts receivable as of December 31, 2016. For the three months ended December 31, 2015, three partners accounted for 85% of the Company’s revenues. As of September 30, 2016, four partners accounted for 84% of accounts receivable. Restricted Cash The Company’s restricted cash consists solely of cash maintained in a separate deposit account used to secure a letter of credit issued by a bank to a former landlord pursuant to a terminated lease agreement. The Company has classified the restricted cash as noncurrent on the condensed balance sheet. Comprehensive Income (Loss) For the three months ended December 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. Reclassifications The Company reclassified certain balances in the condensed statements of cash flows for prior periods to conform to current presentation. The reclassifications did not impact total cash flows from operating, investing or financing activities.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 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 did not have any transfers between Level I, II and III of the fair value hierarchy during the three months ended December 31, 2016. The Company’s policy is to determine the need for transfers between levels at the end of the reporting period when circumstances in the underlying valuation criteria are evaluated for changes requiring transfer between levels. 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 December 31, 2016 Level I Level II Level III Total Financial Assets: Money market funds $ $ — $ — $ As of September 30, 2016 Level I Level II Level III Total Financial Assets: Money market funds $ $ — $ — $ The Company did not have Level III liabilities as of December 31, 2016 and September 30, 2016. The carrying values of the Company’s long-term debt reflects the principal amount, adjusted for any unamortized debt issuance costs and discount. 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 December 31, 2016 Carrying Fair Value Value Difference Long-term debt $ $ $ As of September 30, 2016 Carrying Fair Value Value Difference Long-term debt $ $ $

Inventories

Inventories	3 Months Ended
	Dec. 31, 2016
Inventories
Inventories	3. Inventories Inventories consist of the following (in thousands): As of December 31, As of September 30, 2016 2016 Raw materials $ $ Work in process Finished goods Total inventories $ $

Long-Term Debt

Long-Term Debt	3 Months Ended
	Dec. 31, 2016
Long-Term Debt.
Long-Term Debt	4. Long-Term Debt Outstanding long-term debt consists of the following (dollars in thousands): As of December 31, As of September 30, 2016 2016 Term loan agreement expiring June 30, 2019, less unamortized issuance costs of $1,021 and $544 and unamortized discount of $39 and $43 as of December 31, 2016 and September 30, 2016. 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 September 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 an early prepayment premium, 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 December 31, 2016 and September 30, 2016, the Company had converted $6.6 million and $6.1 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 December 31, 2016, the principal amount outstanding under the term loan agreement, including all PIK notes, was $51.6 million. The term loan agreement was amended in December 2016 to modify the financial covenants for minimum annual revenues (beginning with the 12 months ended June 30, 2017) in exchange for a fee equal to 1.0% of the aggregate principal amount of all loans and PIKs advanced by CRG to the Company under the term loan agreement, which will be due upon the loan maturity date of June 30, 2019 or upon the earlier acceleration of the loan pursuant to its terms. Based on the current loan balance and projected PIK borrowings, this fee is expected to be approximately $0.5 million. The Company has been in continuous compliance with the financial convenants since the inception of the loan.

Contingencies

Contingencies	3 Months Ended
	Dec. 31, 2016
Contingencies
Contingencies	5. Contingencies The Company may be subject to legal proceedings and litigation arising in the ordinary course of business. Management is not aware of any legal matters in which the final disposition is expected to have a material effect on the business, except as noted below. On September 23, 2016, a complaint was filed against the Company by LBA Realty Fund III-Company VII, LLC, a Delaware Limited Liability Company (the “Landlord”), in the Superior Court of California, County of Alameda, LBA Realty Fund III-Company VII, LLC vs. Corium International, Inc. , alleging breach of contract with respect to the lease agreement dated February 12, 2016 between the Landlord and the Company. The Complaint alleges that the Company breached the lease when the Company provided written notice to the Landlord to terminate the lease on July 29, 2016 and seeks damages in excess of $10.0 million as well as declaratory relief. On or about November 16, 2016, the Company filed its answer generally denying the allegations and setting forth its defenses. At the same time, the Company also filed a cross-complaint seeking compensatory damages, among other relief, for the landlord’s material breaches with respect to the lease agreement. The Company has served an initial set of discovery, including third party subpoenas as well as discovery directed to LBA. The parties have agreed to engage in mediation. A Case Management Conference has been scheduled for January 23, 2018. A trial date of May 11, 2018 has been set. At this time, the Company is unable to assess whether any loss or adverse effect on the Company’s financial condition is reasonably possible as a result of this lawsuit or to estimate the range of any potential losses. Accordingly, the Company has not accrued any liability associated with this complaint. The Company does not believe that this lawsuit has any merit, and plans to defend vigorously against this claim, while prosecuting its cross-complaint.

Collaboration and Partner Arran

Collaboration and Partner Arrangements	3 Months Ended
	Dec. 31, 2016
Collaboration and Partner Arrangements.
Collaboration and Partner Arrangements	6. Collaboration and Partner Arrangements The Company has recognized the following revenues from its collaboration and partner agreements (in thousands): Three Months Ended December 31, 2016 2015 Teva $ — $ Mayne — Endo / Par P&G Agile Other Total revenues $ $ Included in total revenues above are royalties and profit sharing, which totaled $0.4 million and $0.7 million for the three months ended December 31, 2016 and 2015.

Warrants

Warrants	3 Months Ended
	Dec. 31, 2016
Warrants
Warrants	7. Warrants The Company issued warrants to purchase shares of the Company's capital stock as part of several transactions occurring 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 December 31, 2016 and September 30, 2016, 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. These warrants expire at various dates between December 2020 and November 2021. 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	3 Months Ended
	Dec. 31, 2016
Convertible Preferred Stock, Common Stock and Stockholders' Equity - Convertible Preferred Stock
Convertible Preferred Stock, Common Stock and Stockholders' Equity	8. 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 December 31, 2016 and September 30, 2016 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 December 31, 2016 and September 30, 2016 with a par value of $0.001 per share. As of December 31, 2016, there were 22,557,450 shares of common stock outstanding and as of September 30, 2016, there were 22,391,631 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. The Company has not sold any shares under this sales agreement.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 31, 2016
Stock-Based Compensation
Stock-Based Compensation	9. Stock-Based Compensation Equity Incentive Plans As of December 31, 2016 and September 30, 2016, the Company had three equity incentive plans, all of which are sponsored by the Company. On March 19, 2014, the Company's board of directors approved the adoption of the 2014 Equity Incentive Plan (the "2014 Plan"), which is the only plan under which the Company can issue shares. 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. The term “Corium Plans” refers to the 2014 Plan, the 2012 Plan and the 2002 Stock Option Plan. 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 up to 4% of the number of shares of common stock outstanding as of the preceding December 31, unless a lesser number of shares is 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 December 31, 2016 and September 30, 2016, the Company had reserved 4,434,047 and 4,529,980 shares of common stock for issuance pursuant to the 2014 Plan. The exercise price of each award 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 stock-based awards granted under the Corium Plans is ten years and the vesting period is typically four years. The restricted stock unit awards granted under the 2014 Plan vest over a four-year period. A summary of activity under the Corium Plans during the three months ended December 31, 2016 is as follows: Weighted Weighted Shares Stock Options Average Remaining Aggregate Available and Awards Exercise Contractual Intrinsic Value for Grant Outstanding Price Life (Years) (In thousands) Balance - September 30, 2016 $ $ Options granted $ Restricted stock unit awards granted $ Options exercised — $ Options forfeited / cancelled $ Balance - December 31, 2016 $ $ Options and awards exercisable - December 31, 2016 $ $ Options and awards vested and expected to vest - December 31, 2016 $ $ All outstanding stock-based awards under the Corium Plans as of December 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 three months ended December 31, 2016 were estimated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended December 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 limited historical data regarding the volatility of its common stock, the expected volatility used is based on 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 19, 2014, the Company's board of directors approved the adoption of the 2014 Employee Stock Purchase Plan (the "2014 ESPP"), with 310,000 shares initially reserved for issuance. 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. 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 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 Company’s board of directors. On January 11, 2016 and January 16, 2015, the Company’s board of directors reserved an additional 257,631 and 181,994 shares of common stock for issuance pursuant to the 2014 ESPP. 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. As of December 31, 2016 and September 30, 2016, there were 433,803 and 503,689 shares of common stock available for issuance pursuant to the 2014 ESPP. For the three months ended December 31, 2016 and 2015, the Company recorded stock-based compensation expense of $94,000 and $77,000 and issued 69,886 and 56,758 shares of common stock to employees related to the 2014 ESPP. The fair value of the purchase rights granted under the 2014 ESPP for each of the two year offering periods beginning May 20, 2016 and November 20, 2016 were estimated by applying the Black-Scholes option-pricing model to each of the four purchase periods in the offering period using the following assumptions: As of December 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 $3.79 and $4.82 for the offering periods commencing May 20, 2016 and November 20, 2016. Grant Price — 85% of the fair market value of the Company’s common stock on the first day of each two year offering period, or $3.22 and $4.10 for the offering periods commencing May 20, 2016 and November 20, 2016. Expected Term — The expected term is based on the end dates of the four purchase periods of each two year offering period, which are six, twelve, eighteen or twenty-four months from the commencement of each new offering period. Expected Volatility — The expected volatility is based on the historical volatility of the Company’s common stock over the expected term. 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 months ended December 31, 2016 and 2015 is classified in the condensed statements of operations and comprehensive loss as follows (in thousands): Three months ended December 31, 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 December 31, 2016, there was a total of $6.7 million of unrecognized employee stock-based compensation expense, net of estimated forfeitures, related to unvested stock-based awards under the Corium Plans, 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	3 Months Ended
	Dec. 31, 2016
Product Recall Liability
Product Recall Liability	10. Product Recall Liability In fiscal 2008 and fiscal 2010, Allergan, plc, 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, and may be pre-paid by the Company in its discretion. 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 30, 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 to Actavis of $0.1 million and $0.2 million during the three months ended December 31, 2016 and 2015. The outstanding balance of the recall liability was $2.2 million and $2.3 million as of December 31, 2016 and September 30, 2016.

Net Loss and Net Loss per Share

Net Loss and Net Loss per Share Attributable to Common Stockholders	3 Months Ended
	Dec. 31, 2016
Net Loss and Net Loss per Share Attributable to Common Stockholders
Net Loss and Net Loss per Share Attributable to Common Stockholders	11. 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 months ended December 31, 2016 and 2015 (in thousands, except share and per share data): Three Months Ended December 31, 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 December 31, 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	3 Months Ended
	Dec. 31, 2016
Income Taxes
Income Taxes	12. Income Taxes The Company did not record a provision for Federal income taxes for the three months ended December 31, 2016 because it expects to generate a net operating loss for the year ending September 30, 2017. The income tax expense of $2,000 and $3,000 for the three months ended December 31, 2016 and 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	3 Months Ended
	Dec. 31, 2016
Segment and Enterprise-Wide Information
Segment and Enterprise-Wide Information	13. 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 conducting their business involving the Company’s products and services primarily in North America and all long-lived assets are located in the United States.

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 31, 2016
Subsequent Events
Subsequent Events	14. Subsequent Events On January 10, 2017, pursuant to the provisions of the 2014 Plan and the ESPP Plan, the board of directors authorized and approved the registration of 902,298 additional shares of the Company’s common stock subject to issuance by the Company under the 2014 Plan and 267,565 additional shares of the Company’s common stock subject to issuance by the Company under the 2014 ESPP. On February 7, 2017, the Company completed an underwritten public offering pursuant to an effective shelf registration statement on Form S-3 (File No. 333-204025) of 6,666,667 shares of common stock at a public offering price of $3.00 per share. The Company received net proceeds of approximately $18.5 million after deducting underwriting discounts and commissions and other issuance costs and expenses . The Company has also granted the underwriters a 30-day option to purchase up to an additional 1,000,000 shares of its common stock in connection with the public offering.

Organization, Description of 21

Organization, Description of Business, and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 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 the Company’s broad experience with advanced 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 December 31, 2016 and the statements of operations and comprehensive loss for the three months ended December 31, 2016 and 2015, statement of stockholders’ equity for the three months ended December 31, 2016 and statements of cash flows for the three months ended December 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 December 31, 2016 and its results of operations for the three months ended December 31, 2016 and 2015 and cash flows for the three months ended December 31, 2016 and 2015. The financial data and the other financial information contained in these notes to the financial statements related to the three month periods are also unaudited. The results of operations for the three months ended December 31, 2016 are not necessarily indicative of the results to be expected for the year ending September 30, 2017 or for any future annual or interim period. The balance sheet as of September 30, 2016 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, 2016 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 20, 2016. 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, 2016.
Liquidity	Liquidity With the exception of fiscal 2013, the Company has incurred losses from operations since fiscal 2006 and has an accumulated deficit of $177.9 million as of December 31, 2016. The Company has financed its operations primarily through the proceeds from the sale of equity securities, and various debt and capital lease financings. The Company believes that the existing cash and cash equivalents, including the proceeds of the additional equity financing obtained subsequent to December 31, 2016, as disclosed in Note 14, will not be sufficient to fund operations as currently planned through the next 12 months, which raises substantial doubt about the Company’s ability to continue as a going concern. The Company has based this belief on assumptions and estimates that may prove to be wrong, and the Company could spend its available financial resources less or more rapidly than currently expected. The Company will continue to require additional sources of cash to develop product candidates and to fund development and commercialization operations. Management intends to seek additional capital through collaborative or other funding arrangements with partners, equity and/or debt financings, or through other sources of financing. In the event that additional financing is required from outside sources, the Company may not be able to raise such financing on terms acceptable to the Company or at all. If the Company is unable to raise additional capital when required or on acceptable terms, the Company may be required to significantly delay, scale back or discontinue one or more of the product development programs or commercialization efforts or other aspects of the Company’s business plans, and its business, operating results and financial condition would be adversely affected. The Company is currently in compliance with the covenants under the Company’s term loan agreement with CRG, a structured debt and equity investment management firm, based on the Company’s current forecast estimates and expectations. However, the Company anticipates that its current cash and cash equivalent balances will not be sufficient to maintain compliance with the minimum liquidity financial covenant beyond fiscal 2017. Failure to meet this covenant would be considered an event of default on the Company’s debt obligation, and could result in the acceleration of the Company’s existing indebtedness, causing the outstanding principal of approximately $51.6 million, plus an early prepayment premium, to be immediately due and payable to CRG. The Company does not currently have sufficient cash and cash equivalents to repay all of the outstanding debt in full if repayment of such debt were accelerated. Due to these uncertainties, there is substantial doubt about the Company’s ability to continue as a going concern. The unaudited condensed financial statements as of December 31, 2016 have been prepared under the assumption that the Company will continue as a going concern for the next 12 months. The Company’s ability to continue as a going concern is dependent upon its ability to secure new sources of revenue, obtain additional equity and/or debt financing, generate operating efficiencies, and reduce expenditures. The unaudited condensed financial statements as of December 31, 2016 do not include any adjustments that might result from the outcome of this uncertainty.
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, deferred revenues, impairment of long-lived assets, determination of fair value of stock-based awards and other debt- and equity-related instruments, accounting for clinical trials 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 months ended December 31, 2016, three partners accounted for 93% of the Company’s revenues and two partners accounted for 93% of accounts receivable as of December 31, 2016. For the three months ended December 31, 2015, three partners accounted for 85% of the Company’s revenues. As of September 30, 2016, four partners accounted for 84% of accounts receivable.
Restricted Cash	Restricted Cash The Company’s restricted cash consists solely of cash maintained in a separate deposit account used to secure a letter of credit issued by a bank to a former landlord pursuant to a terminated lease agreement. The Company has classified the restricted cash as noncurrent on the condensed balance sheet.
Comprehensive Income (Loss)	Comprehensive Income (Loss) For the three months ended December 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.
Reclassifications	Reclassifications The Company reclassified certain balances in the condensed statements of cash flows for prior periods to conform to current presentation. The reclassifications did not impact total cash flows from operating, investing or financing activities.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 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 December 31, 2016 Level I Level II Level III Total Financial Assets: Money market funds $ $ — $ — $ As of September 30, 2016 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 December 31, 2016 Carrying Fair Value Value Difference Long-term debt $ $ $ As of September 30, 2016 Carrying Fair Value Value Difference Long-term debt $ $ $

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2016
Inventories
Schedule of Inventories	Inventories consist of the following (in thousands): As of December 31, As of September 30, 2016 2016 Raw materials $ $ Work in process Finished goods Total inventories $ $

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Dec. 31, 2016
Long-Term Debt.
Schedule of the entity's outstanding debt	Outstanding long-term debt consists of the following (dollars in thousands): As of December 31, As of September 30, 2016 2016 Term loan agreement expiring June 30, 2019, less unamortized issuance costs of $1,021 and $544 and unamortized discount of $39 and $43 as of December 31, 2016 and September 30, 2016. 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 September 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 Arr25

Collaboration and Partner Arrangements (Tables)	3 Months Ended
	Dec. 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 December 31, 2016 2015 Teva $ — $ Mayne — Endo / Par P&G Agile Other Total revenues $ $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2016
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 months ended December 31, 2016 and 2015 is classified in the condensed statements of operations and comprehensive loss as follows (in thousands): Three months ended December 31, 2016 2015 Cost of product revenues $ $ Cost of contract research and development revenues Research and development General and administrative Total stock-based compensation $ $
2014 Plan
Stock-Based Compensation
Schedule of valuation assumptions used for stock options	Three Months Ended December 31, 2016 Expected term (in years) - Risk-free interest rate % - % Expected volatility % - % Expected dividend rate %
Corium Plans
Stock-Based Compensation
Summary of activity under the Plans	Weighted Weighted Shares Stock Options Average Remaining Aggregate Available and Awards Exercise Contractual Intrinsic Value for Grant Outstanding Price Life (Years) (In thousands) Balance - September 30, 2016 $ $ Options granted $ Restricted stock unit awards granted $ Options exercised — $ Options forfeited / cancelled $ Balance - December 31, 2016 $ $ Options and awards exercisable - December 31, 2016 $ $ Options and awards vested and expected to vest - December 31, 2016 $ $
2014 Employee Stock Purchase Plan
Stock-Based Compensation
Schedule of valuation assumptions used for ESPP	As of December 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 Sha27

Net Loss and Net Loss per Share Attributable to Common Stockholders (Tables)	3 Months Ended
	Dec. 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 months ended December 31, 2016 and 2015 (in thousands, except share and per share data): Three Months Ended December 31, 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 December 31, 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 28

Organization, Description of Business and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2016USD ($)item	Dec. 31, 2015item	Sep. 30, 2016USD ($)item
Liquidity
Accumulated deficit | $	$ (177,917)		$ (167,488)
Term loan agreement expiring on June 30, 2019
Liquidity
Principal amount outstanding | $	$ 51,600
Revenues. | Customer concentration | Three partners
Concentration of credit risk
Number of partners	3	3
Concentration risk percentage	93.00%	85.00%
Accounts receivable | Credit concentration | Two partners
Concentration of credit risk
Number of partners	2
Concentration risk percentage	93.00%
Accounts receivable | Credit concentration | Four partners
Concentration of credit risk
Number of partners			4
Concentration risk percentage			84.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis - Money market funds - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Financial Assets
Total financial assets	$ 33,188	$ 39,950
Level I
Financial Assets
Total financial assets	$ 33,188	$ 39,950

Fair Value Measurements (Level

Fair Value Measurements (Level III Valuation) (Details) - Level III - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Carrying Value
Fair value measurements
Long-term debt	$ 51,009	$ 51,043
Fair Value
Fair value measurements
Long-term debt	52,070	51,649
Difference
Fair value measurements
Long-term debt	$ 1,061	$ 606

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Inventories
Raw materials	$ 1,325	$ 1,307
Work in process	498	411
Finished goods	109	706
Total inventories	$ 1,932	$ 2,424

Long-Term Debt - Outstanding (D

Long-Term Debt - Outstanding (Details)	Dec. 04, 2014USD ($)	Nov. 14, 2014USD ($)	Dec. 31, 2016USD ($)installment	Dec. 31, 2012USD ($)	Aug. 31, 2012USD ($)	Dec. 31, 2016USD ($)installment	Jun. 30, 2016USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)installment	Jun. 30, 2017USD ($)	Jul. 13, 2012USD ($)
Long-term Debt
Carrying value of long-term debt			$ 51,009,000			$ 51,009,000		$ 51,043,000		$ 51,043,000	$ 51,009,000
Less current portion			70,000			70,000		77,000		77,000	70,000
Long-term debt, net of current portion			50,939,000			50,939,000		50,966,000		50,966,000	50,939,000
Term loan agreement expiring on June 30, 2019
Long-term Debt
Carrying value of long-term debt			50,530,000			50,530,000		50,546,000		50,546,000	50,530,000
Unamortized issuance costs			1,021,000			1,021,000		544,000		544,000	1,021,000
Unamortized discount			$ 39,000			$ 39,000		43,000		43,000	$ 39,000
Interest rate (as a percent)			15.00%			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					4
Percentage of cash payment the entity can defer by converting interest due into additional notes		3.50%
Principal amount outstanding			$ 51,600,000			$ 51,600,000					$ 51,600,000
Percentage fee (as a percent)			1.00%
Term loan agreement expiring on June 30, 2019 | Forecast
Long-term Debt
Loan fee												$ 500,000
Notes payable due April 2017
Long-term Debt
Carrying value of long-term debt			$ 26,000			26,000		34,000		$ 34,000	$ 26,000
Monthly payments of principal and interest						$ 3,000		$ 3,000
Interest rate (as a percent)			7.00%			7.00%		7.00%		7.00%	7.00%
Notes payable due in November 2024
Long-term Debt
Carrying value of long-term debt			$ 453,000			$ 453,000		$ 463,000		$ 463,000	$ 453,000
Monthly payments of principal and interest							$ 6,000		$ 6,000
Interest rate (as a percent)							7.00%		7.00%
Pik notes
Long-term Debt
Portion of interest due converted into additional notes										$ 6,100,000	$ 6,600,000

Contingencies (Details)

Contingencies (Details) - LBA Realty Fund III Company VII LLC - USD ($) $ in Millions	Sep. 23, 2016	Dec. 31, 2016
Litigation
Loss contingency accrual		$ 0
Minimum
Litigation
Damages sought	$ 10

Collaboration and Partner Arr34

Collaboration and Partner Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Collaboration and partner arrangements
Total revenues	$ 6,968	$ 7,537
Royalties and profit sharing	400	700
Teva
Collaboration and partner arrangements
Total revenues		1,518
Mayne
Collaboration and partner arrangements
Total revenues	1,407
Endo/Par
Collaboration and partner arrangements
Total revenues	363	1,814
P&G
Collaboration and partner arrangements
Total revenues	4,021	3,087
Agile
Collaboration and partner arrangements
Total revenues	1,078	653
Other
Collaboration and partner arrangements
Total revenues	$ 99	$ 465

Warrants (Details)

Warrants (Details) - Common stock warrants - $ / shares	3 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
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, 36

Convertible Preferred Stock, Common Stock and Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Dec. 31, 2015	Dec. 31, 2016	Sep. 30, 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 par value (in dollars per share)		$ 0.001	$ 0.001
Common stock, shares outstanding		22,557,450	22,391,631	22,391,631
Shares sold		22,557,450	22,391,631
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	Jan. 16, 2015shares	Mar. 19, 2014shares	Dec. 31, 2016USD ($)plan$ / sharesshares	Dec. 31, 2015USD ($)	Sep. 30, 2016USD ($)plan$ / sharesshares
Stock-Based Compensation
Number of plans | plan				3		3
Allocated Share-based Compensation Expense | $				$ 870	$ 778
Stock options
Assumptions used in estimating weighted average fair value of the options granted
Risk-free interest rate, minimum				2.07%
Risk-free interest rate, maximum				2.31%
Expected volatility, minimum				76.00%
Expected volatility, maximum				79.00%
Expected dividend rate (as a percent)				0.00%
Stock options | Minimum
Assumptions used in estimating weighted average fair value of the options granted
Expected term (in years)				5 years 3 months 7 days
Stock options | 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
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				4,434,047		4,529,980
Shares of common stock available for grant				286,310		1,192,476
Granted (in shares)				(838,850)
Restricted stock units awards granted (in shares)				(80,000)
Grant date fair value (in dollars per share) | $ / shares				$ 4.59
Award activity
Balance at the beginning of the period (in shares)				3,337,504
Granted (in shares)				838,850
Restricted stock unit awards granted (in shares)				80,000
Options exercised (in shares)				(95,933)
Options forfeited / cancelled (in shares)				(12,684)
Balance at the end of the period (in shares)				4,147,737		3,337,504
Options and awards exercisable at the end of the period (in shares)				2,329,625
Options and awards vested and expected to vest at the end of the period (in shares)				3,947,795
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) | $ / shares				$ 4.65
Options granted (in dollars per share) | $ / shares				4.59
Restricted stock unit awards granted (in dollars per share) | $ / shares				4.59
Options exercised (in dollars per share) | $ / shares				2.32
Options forfeited / cancelled (in dollars per share) | $ / shares				7.12
Balance at the end of the period (in dollars per share) | $ / shares				4.59		$ 4.65
Options and awards exercisable at the end of the period (in dollars per share) | $ / shares				3.92
Options and awards vested and expected to vest at the end of the period (in dollars per share) | $ / shares				$ 4.56
Weighted Average Remaining Contractual Life
Balance				7 years 3 months 4 days
Aggregate Intrinsic Value
Balance at the end of the period | $				$ 2,923
Corium Plans | Maximum
Stock-Based Compensation
Term of the plan				10 years
Corium Plans | Stock options
Weighted Average Remaining Contractual Life
Balance						6 years 7 months 2 days
Options and awards exercisable at the end of the period				5 years 9 months 15 days
Options and awards vested and expected to vest at the end of the period				7 years 1 month 24 days
Aggregate Intrinsic Value
Balance at the beginning of the period | $				$ 5,707
Balance at the end of the period | $						$ 5,707
Options and awards exercisable at the end of the period | $				2,458
Options and awards vested and expected to vest at the end of the period | $				$ 2,850
Additional disclosures
Exercise price, minimum(in dollars per share) | $ / shares				$ 2.12
Exercise price, maximum(in dollars per share) | $ / shares				$ 14.12

Stock-Based Compensation - 2014

Stock-Based Compensation - 2014 Employee Stock Purchase Plan (Details)	Nov. 20, 2016$ / shares	May 20, 2016$ / shares	Jan. 11, 2016shares	Jan. 16, 2015shares	Mar. 19, 2014shares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)shares	Dec. 31, 2016item$ / sharesshares	Sep. 30, 2016shares
2014 Employee Stock Purchase Plan
Stock-based compensation | $						$ 870,000	$ 778,000
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					310,000	433,803		433,803	503,689
Stock-based compensation | $						$ 94,000	$ 77,000
Additional shares authorized | shares			257,631	181,994
Offering period	2 years	2 years
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	$ 4.82	$ 3.79
Grant Price	$ 4.10	$ 3.22
Expected volatility, minimum						70.00%
Expected volatility, maximum						78.00%
Risk-free interest rate, minimum						0.43%
Risk-free interest rate, maximum						1.08%
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
Shares issued during the period | shares						69,886	56,758
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						$ 3.79		$ 3.79
Grant Price						$ 3.22
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						$ 4.82		$ 4.82
Grant Price						$ 4.10
Expected term (in years)						2 years

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Employee stock-based compensation expense
Stock-based compensation	$ 870	$ 778
Additional Disclosure
Unrecognized employee compensation cost, net of estimated forfeitures	$ 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	$ 102	75
Cost of contract research and development revenues
Employee stock-based compensation expense
Stock-based compensation	51	43
Research and development
Employee stock-based compensation expense
Stock-based compensation	151	157
General and administrative
Employee stock-based compensation expense
Stock-based compensation	$ 566	$ 503

Product Recall Liability (Detai

Product Recall Liability (Details) $ in Millions	3 Months Ended		36 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2011item	Sep. 30, 2010item	Sep. 30, 2016USD ($)	Oct. 31, 2012USD ($)
Product recall liability
Payment of settlement liability | $	$ 0.1	$ 0.2
Recall liability | $	$ 2.2				$ 2.3	$ 5
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 settlements | item			2

Net Loss and Net Loss per Sha41

Net Loss and Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 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	$ (10,429)	$ (9,400)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	22,453,172	22,188,332
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.46)	$ (0.42)
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	4,037,737	3,462,317
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	110,000	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	433,803	315,771
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	51,386

Income Taxes (Details)

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

Segment and Enterprise-Wide I43

Segment and Enterprise-Wide Information (Details)	3 Months Ended
	Dec. 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

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 07, 2017	Jan. 10, 2017	Jan. 11, 2016	Jan. 16, 2015	Dec. 31, 2016	Sep. 30, 2016
Subsequent events
Shares sold					22,557,450	22,391,631
2014 Plan
Subsequent events
Additional shares authorized			888,776	722,834
2014 Employee Stock Purchase Plan
Subsequent events
Additional shares authorized			257,631	181,994
Subsequent events
Subsequent events
Shares sold	6,666,667
Price of shares sold ( in dollars per share)	$ 3
Proceeds from issuance of common stock, net of issuance costs	$ 18.5
Underwriters' option period (in days)	30 days
Number of shares the underwriters have an option to purchase (in shares)	1,000,000
Subsequent events | 2014 Plan
Subsequent events
Additional shares authorized		902,298
Subsequent events | 2014 Employee Stock Purchase Plan
Subsequent events
Additional shares authorized		267,565