Corium International 10-Q 15 May 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2018	May 10, 2018
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, 2018
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		36,140,048
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 94,221	$ 57,466
Accounts receivable	4,165	4,641
Unbilled accounts receivable	274	169
Inventories	1,975	2,300
Prepaid expenses and other current assets	415	982
Total current assets	101,050	65,558
Property and equipment, net	14,190	12,176
Intangible assets, net	7,235	7,117
TOTAL ASSETS	122,475	84,851
Current liabilities:
Accounts payable	6,308	3,978
Accrued expenses and other current liabilities	5,764	6,411
Long-term debt, current portion	48	13,172
Recall liability, current portion	187	114
Deferred contract revenues, current portion	157	626
Total current liabilities	12,464	24,301
Convertible notes, net	68,159
Long-term debt, net of current portion	350	39,027
Recall liability, net of current portion	1,684	1,811
Deferred contract revenues, net of current portion	3,500	3,500
Total liabilities	86,157	68,639
Commitments and contingencies
Stockholders’ equity:
Common stock, par value of $0.001 per share, 150,000,000 shares authorized; 36,139,058 and 36,004,602 shares issued and outstanding as of March 31, 2018 and September 30, 2017	36	36
Additional paid-in capital	282,861	231,457
Accumulated deficit	(246,579)	(215,281)
Total stockholders’ equity	36,318	16,212
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 122,475	$ 84,851

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2018	Sep. 30, 2017
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	36,139,058	36,004,602
Common stock, shares outstanding	36,139,058	36,004,602

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Product revenues	$ 6,690	$ 4,657	$ 12,611	$ 10,395
Contract research and development revenues	3,130	2,421	6,284	3,384
Other revenues	240	267	480	534
Total revenues	10,060	7,345	19,375	14,313
Costs and operating expenses:
Cost of product revenues	4,015	2,876	7,299	6,957
Cost of contract research and development revenues	3,294	2,794	6,899	4,914
Research and development expenses	11,968	7,530	22,206	13,528
General and administrative expenses	4,103	2,999	7,403	6,004
Amortization of intangible assets	181	178	358	355
Total costs and operating expenses	23,561	16,377	44,165	31,758
Loss from operations	(13,501)	(9,032)	(24,790)	(17,445)
Interest income	163	44	285	72
Interest expense	(2,410)	(2,049)	(4,533)	(4,091)
Loss on extinguishment of long-term debt	(2,258)		(2,258)
Loss before income taxes	(18,006)	(11,037)	(31,296)	(21,464)
Income tax expense			2	2
Net loss and comprehensive loss	$ (18,006)	$ (11,037)	$ (31,298)	$ (21,466)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.50)	$ (0.42)	$ (0.87)	$ (0.88)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)	36,147,306	26,487,493	36,109,749	24,448,166

CONDENSED STATEMENT OF STOCKHOL

CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY - 6 months ended Mar. 31, 2018 - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Sep. 30, 2017	$ 36	$ 231,457	$ (215,281)	$ 16,212
Balance (in shares) at Sep. 30, 2017	36,004,602
Increase (Decrease) in Stockholders' Equity (Deficit)
Issuance of common stock under Employee Stock Purchase Plan		213		213
Issuance of common stock under Employee Stock Purchase Plan (in shares)	64,547
Issuance of common stock upon exercise of stock options		223		223
Issuance of common stock upon exercise of stock options (in shares)	65,440
Issuance of common stock upon net exercise of common stock warrants (in shares)	4,469
Equity component of convertible notes, net of issuance costs of $2.5 million		46,154		46,154
Warrant to be issued in connection with the convertible note offering		2,432		2,432
Stock-based compensation expense		2,382		2,382
Net loss and comprehensive loss			(31,298)	(31,298)
Balance at Mar. 31, 2018	$ 36	$ 282,861	$ (246,579)	$ 36,318
Balance (in shares) at Mar. 31, 2018	36,139,058

CONDENSED STATEMENT OF STOCKHO6

CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Millions	Mar. 31, 2018USD ($)
STATEMENT OF STOCKHOLDERS' EQUITY
Portion of issuance costs allocated to equity component (additional paid-in capital)	$ 2.5

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss and comprehensive loss	$ (31,298)	$ (21,466)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization of property and equipment	461	577
Amortization of intangible assets	358	355
Noncash amortized debt discount and debt issuance costs on convertible debt	517
Noncash amortized debt discount and issuance costs on long-term debt and capital leases	172	178
Stock-based compensation expense	2,382	1,791
Issuance of payment-in-kind notes in lieu of cash interest payments		909
Loss on extinguishment of long-term debt	2,258
Changes in operating assets and liabilities:
Accounts receivable	476	896
Unbilled accounts receivable	(105)	163
Inventories	325	(244)
Prepaid expenses and other current assets	567	544
Accounts payable	1,519	945
Accrued expenses and other current liabilities	(122)	(450)
Deferred contract revenues	(469)	(114)
Recall liability	(54)	(272)
Net cash used by operating activities	(23,013)	(16,188)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(2,136)	(1,404)
Payments for patents and licensing rights	(476)	(519)
Net cash used by investing activities	(2,612)	(1,923)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of convertible notes	120,000
Payments of convertible notes issuance costs	(3,300)
Proceeds from issuance of common stock, net of issuance costs		18,514
Principal payments on long-term debt	(52,525)	(38)
Payments for long-term debt extinguishment costs	(2,231)
Principal payments on capital lease obligations		(73)
Proceeds from exercise of stock options	223	224
Proceeds from issuance of common stock under Employee Stock Purchase Plan	213	225
Net cash provided by financing activities	62,380	18,852
NET DECREASE IN CASH AND CASH EQUIVALENTS	36,755	741
CASH AND CASH EQUIVALENTS — Beginning of period	57,466	39,833
CASH AND CASH EQUIVALENTS — End of period	94,221	40,574
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	3,427	3,003
Cash paid for income taxes	6	2
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment purchases included in accounts payable	369	165
Unpaid transaction costs associated with issuance of convertible notes	472
Warrant to be issued in connection with convertible note offering	$ 2,432
Unpaid transaction costs associated with issuance of long-term debt		$ 544

Organization, Description of Bu

Organization, Description of Business, and Summary of Significant Accounting Policies	6 Months Ended
	Mar. 31, 2018
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. The Company refers to its Transdermal Delivery Systems as “TDS.” 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. 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, 2018, statements of operations and comprehensive loss for the three and six months ended March 31, 2018 and 2017, statement of stockholders’ equity for the six months ended March 31, 2018, and statements of cash flows for the six months ended March 31, 2018 and 2017 are all 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, 2018, its results of operations for the three and six months ended March 31, 2018 and 2017, and its cash flows for the six months ended March 31, 2018 and 2017. The financial data and the other financial information contained in these notes to the financial statements related to the six-month periods are also unaudited. The results of operations for the six months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending September 30, 2018 or for any future annual or interim period. The balance sheet as of September 30, 2017 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, 2017 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 29, 2017. There have been no material changes to the significant accounting policies or recent accounting pronouncements previously disclosed in the Company’s audited financial statements for the year ended September 30, 2017. Liquidity With the exception of fiscal 2013, the Company has incurred losses from operations since fiscal 2006 and has an accumulated deficit of $246.6 million as of March 31, 2018. The Company has financed its operations primarily through the proceeds from the sale of equity securities, and various debt and capital lease financings. During the six months ended March 31, 2018, the Company issued $120.0 million aggregate principal amount of convertible senior notes due in 2025 (see Note 4). The Company used the proceeds from the issuance of the convertible senior notes to prepay in full all outstanding borrowings, fees and other amounts due under the earlier term loan agreement with CRG, a structured debt and equity investment management firm. With the addition of the $62.0 million net proceeds arising from the issuance of the convertible notes and retirement of the CRG indebtedness, the Company believes that its existing cash and cash equivalents will be sufficient to fund operations as currently planned beyond the next 12 months. Consequently, the Company believes there is no longer the substantial doubt that existed in prior periods regarding its ability to continue as a going concern because, at such times, it did not have sufficient cash or cash equivalents to maintain compliance with its CRG loan covenant for minimum liquidity or the Company anticipated not being able to satisfy the CRG loan covenant for minimum revenue for the twelve months ended June 30, 2018. The unaudited condensed financial statements as of March 31, 2018 have been prepared under the assumption that the Company will continue as a going concern for the next 12 months. 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 trial expenses 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 both the three and six months ended March 31, 2018, three partners accounted for 99% of the Company’s revenues and three partners accounted for 99% of accounts receivable as of March 31, 2018. For the three and six months ended March 31, 2017, three partners accounted for 91% and 92% of the Company’s revenues. As of September 30, 2017, three partners accounted for 88% of accounts receivable. Comprehensive Income (Loss) For the three and six months ended March 31, 2018 and 2017, 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. These ASUs are 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 modified retrospective method, with early adoption permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” which further clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” which addresses narrow-scope improvements to the guidance on collectibility, noncash consideration, and completed contracts at transition and provides a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. In December 2016, the FASB issued ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” which clarifies areas for correction or improvement in the Codification. The Company will adopt the new revenue recognition standard on October 1, 2018, utilizing the modified retrospective method. The Company is in the process of evaluating the impact the adoption of this standard will have on its financial statements and has performed an initial review of its major contracts with partners. Based on the initial reviews, the Company believes the adoption of the new standard will not have a significant quantitative impact on product revenues, as the timing of revenue recognition for product sales, profit sharing and royalties is not expected to significantly change. For the Company’s collaboration and partner arrangements, the consideration the Company is eligible to receive under these arrangements typically consists of nonrefundable upfront payments, reimbursement of research and development costs and milestone payments. The Company believes the adoption of the new standard will not have a significant quantitative impact on the revenue recognition of the reimbursement of research and development costs as the timing of the revenue recognition is not expected to significantly change. The Company continues to review the impact that this new standard will have on the timing of recognition for nonrefundable upfront payments and milestone payments as well as on its financial statement disclosures and has not made a determination on the impact to its financial statements. The Company is evaluating changes to its accounting processes, internal controls and disclosures to support the new standard. 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 annual 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. The Company is evaluating the effect that this ASU will have on the Company’s future financial position, results of operations or cash flows. In May 2017, the FASB issued ASU No. 2017-09, “Compensation-Stock Compensation (Topic 718) – Scope of Modification Accounting.” This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification, and provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all three of the following conditions are met: (1) The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. (2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. (3) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. This ASU is effective for annual periods beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s future financial position, results of operations or cash flows.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2018
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 that 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 Levels I, II and III of the fair value hierarchy during the three and six months ended March 31, 2018. 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 March 31, 2018 Level I Level II Level III Total Financial Assets: Money market funds $ 94,773 $ — $ — $ 94,773 As of September 30, 2017 Level I Level II Level III Total Financial Assets: Money market funds $ 57,928 $ — $ — $ 57,928 The Company did not have Level III liabilities as of September 30, 2017. In March 2018, the Company issued $120.0 million aggregate principal amount of convertible senior notes due 2025 with embedded conversion features (the “Convertible Notes”). The Company estimated the fair value of the liability component at issuance based on a hypothetical non-convertible debt instrument with a seven-year term, but with a fair market value interest rate derived from a Monte Carlo simulation of the coupon and conversion option outcomes of the Convertible Notes. The Company recorded $71.3 million as the gross fair value of the liability at issuance on March 5, 2018, with the balance of $48.7 million recorded to equity as additional paid-in capital, before issuance costs. The fair value of the liability component is based on unobservable inputs and is based on Level III inputs. As of March 31, 2018, the carrying value of the Convertible Notes liability approximates the fair value, net of issuance costs allocated to it. The carrying value of the Company’s long-term debt as of September 30, 2017 reflects the principal amount, adjusted for any unamortized debt issuance costs and discount. $51.8 million of the adjusted debt principal as of September 30, 2017 represents the then-outstanding term loan with CRG (see Note 4). The following financial liabilities have carrying values which are similar or differ from their fair value as estimated by the Company based on market quotes for instruments with similar terms and remaining maturities (in thousands): As of March 31, 2018 Carrying Fair Value Value Difference Long-term debt $ 398 $ 398 $ — As of September 30, 2017 Carrying Fair Value Value Difference Long-term debt $ 52,199 $ 55,888 $ 3,689

Inventories

Inventories	6 Months Ended
	Mar. 31, 2018
Inventories
Inventories	3. Inventories Inventories consist of the following (in thousands): As of March 31, As of September 30, 2018 2017 Raw materials $ 1,514 $ 1,683 Work in process 279 264 Finished goods 182 353 Total inventories $ 1,975 $ 2,300

Debt

Debt	6 Months Ended
	Mar. 31, 2018
Debt.
Debt	4. Debt Long-Term Debt Outstanding long-term debt consists of the following (dollars in thousands): As of March 31, As of September 30, 2018 2017 Term loan agreement expiring June 30, 2019, less unamortized issuance costs of $697 and unamortized discount of $27 as of September 30, 2017. See terms of the agreement below. $ — $ 51,779 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 398 420 Total 398 52,199 Less current portion 48 13,172 Long-term portion $ 350 $ 39,027 Since 2012, the Company borrowed $45.0 million from CRG, a structured debt and equity investment management firm, pursuant to a term loan agreement and subsequent amendments to such agreement. The amended agreement provided for a maximum borrowing of $45.0 million, excluding payment-in-kind (“PIK”) notes. The amended agreement required 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 September 30, 2018, with interest continuing to accrue on the unpaid principal at a simple annual rate of 15%. In addition, the amended agreement contained a provision whereby the Company could, 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 PIK notes. Since inception of the amended agreement, the Company converted $7.5 million of interest into PIK notes, each of which were added to the then-outstanding principal. Amounts outstanding under the term loan agreement were collateralized by all of the Company’s assets. The amended agreement also provided for a prepayment premium, the amount of which varied with the date on which prepayment was made if the Company chose to repay principal prior to December 31, 2018, or upon other specified events, including a change of control. For the period January 1, 2018 through December 31, 2018, the prepayment premium was equal to 3.25% of the aggregate value of the principal and PIK notes outstanding at the time of prepayment. An additional fee of 1.0% of the aggregate value of the principal and PIK notes outstanding was due at the time of repayment of the loan, whether paid early or upon the maturity date. On March 5, 2018, the Company terminated the term loan agreement with CRG, as amended, and prepaid in full all outstanding borrowings, fees and other amounts due thereunder, in an aggregate amount of approximately $54.7 million plus accrued interest. This amount included total prepayment fees equal to 4.25% of the principal amount then outstanding. The loss on extinguishment of the debt was $2.3 million and is included in the Statement of Operations and Comprehensive Loss for the three and six months ended March 31, 2018. The Company was in continuous compliance with the financial covenants from inception through termination of the loan. Convertible Notes In March 2018, the Company issued $120.0 million aggregate principal amount of Convertible Notes due 2025, which aggregate principal amount included the exercise in full by the initial purchaser of the Convertible Notes of an option to purchase $20.0 million of such Convertible Notes. The Convertible Notes are senior, unsecured obligations and accrue interest at an interest rate of 5.00% per year, payable in cash semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2018. The Convertible Notes have a maturity date of March 15, 2025, unless earlier converted or repurchased in accordance with their terms. The Company received $116.7 million in net proceeds from the sale of the Convertible Notes at the closings, after deducting payments for offering fees and expenses of $3.3 million. The Convertible Notes were issued pursuant to an indenture, dated as of March 5, 2018, by and between the Company and U.S. Bank National Association, as trustee (the “Indenture”). Pursuant to their terms, the Convertible Notes will be convertible into cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s election, as discussed in more detail below. The Convertible Notes have an initial conversion rate of 58.0552 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $17.22 per share of common stock. The conversion rate and the corresponding conversion price will be subject to adjustment upon the occurrence of certain events, including, but not limited to, stock splits and dividends, rights offerings, cash dividends, or a make-whole fundamental change (as described in the Indenture). The Company may not redeem the Convertible Notes prior to March 15, 2022. The Company may redeem for cash all or any portion of the Convertible Notes, at its option, on or after March 15, 2022 if certain conditions are met, including, but not limited to, that the last reported sales price per share of the Company’s common stock has exceeded 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter. Noteholders may convert their Convertible Notes at their option only in the following circumstances: · at any time during a calendar quarter after June 30, 2018, if the last reported sales price per share of the Company’s common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; · during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, referred to as the measurement period) in which the trading price per $1,000 principal amount of Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of the Company’s common stock on such trading day and the conversion rate on such trading day; · upon the occurrence of certain corporate events or distributions on the Company’s common stock; · the Company calls the Convertible Notes for redemption; and · at any time from, and including, September 15, 2024 until the close of business on the scheduled trading day immediately before the maturity date. The Convertible Notes are considered convertible debt with a cash conversion feature. The Company has separated the carrying value of the convertible debt into liability and equity components. The $71.3 million initial carrying amount of the liability component is based on the calculated fair value of a hypothetical non-convertible debt instrument with a seven-year term, but with a fair market value interest rate derived from a Monte Carlo simulation of the coupon and conversion option outcomes of the Convertible Notes. The $48.7 million gross carrying value of the equity component, which amount is also recorded as the initial debt discount, represents the standalone value of the conversion option, and was determined by Monte Carlo simulation. The carrying value of the Convertible Notes equals the aggregate par value of the Convertible Notes less the unamortized debt discount and unamortized debt issuance costs. The debt discount and debt issuance costs are being amortized to interest expense over the seven-year term of the Convertible Notes, using the effective interest rate method. The equity component will not be re-measured as long as it continues to meet the conditions for equity classification. The $46.2 million equity component of the Convertible Notes, net of $2.5 million in issuance costs allocated to it, is included in additional paid-in capital. In connection with the issuance of the Convertible Notes, the Company incurred approximately $6.2 million of total debt issuance costs, primarily consisting of underwriting, legal and other professional fees, and allocated these costs to the liability and equity components in proportion to their respective carrying values. Of the total debt issuance costs, $3.7 million were allocated to the liability component and are recorded as a reduction of the Convertible Notes carrying value in the balance sheet. The remaining $2.5 million of debt issuance costs were allocated to the equity component and are recorded as a reduction to additional paid-in capital. Debt discount and issuance costs totaling $52.4 million are being amortized to interest expense over the seven-year life of the Convertible Notes using the effective interest rate method. As of March 31, 2018, the interest rate was 5.00%, and the effective interest rate was 11.21%. Interest expense related to the Convertible Notes for the three and six months ended March 31, 2018 was $0.9 million, including $0.5 million related to the amortization of the debt discount and issuance costs. The table below summarizes the carrying value of the Convertible Notes as of March 31, 2018 (in thousands): Gross proceeds $ 120,000 Portion of proceeds allocated to equity component (additional paid-in capital) (48,671) Debt issuance costs (6,204) Portion of issuance costs allocated to equity component (additional paid-in capital) 2,517 Amortization of debt discount and debt issuance costs 517 Carrying value Convertible Notes $ 68,159 On May 14, 2018, the Company issued a warrant to purchase 350,000 shares of the Company’s common stock to Cantor Fitzgerald (the “Cantor Warrant”) in recognition of that firm’s execution of the Company’s offering of the Convertible Notes. The Cantor Warrant has a term of 7 years, a strike price of $17.22 per share. The Company recorded an estimated value of the warrant of $2.4 million as an adjustment to equity as of March 31, 2018, and will further adjust this estimate to the actual value of the warrant as of the issuance date. The warrant was treated as an equity instrument, with its estimated value recorded as an additional issuance cost associated with the offering of the Convertible Notes, which is included in the total issuance costs of $6.2 million. The Company estimated the value of this warrant as of March 31, 2018 using the Black-Scholes option pricing model with the following key assumptions: Expected term (in years) Risk-free interest rate % Expected volatility % Expected dividend rate %

Collaboration and Partner Arran

Collaboration and Partner Arrangements	6 Months Ended
	Mar. 31, 2018
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, 2018 2017 2018 2017 Mayne $ 2,657 $ 796 $ 4,689 $ 2,203 Par — — — 363 P&G 4,978 4,092 9,793 8,113 Agile 2,333 1,782 4,656 2,860 Other 92 675 237 774 Total revenues $ 10,060 $ 7,345 $ 19,375 $ 14,313 Included in revenues from Mayne is profit sharing, which totaled $0.1 million and $0.4 million for the three and six months ended March 31, 2018, compared to $0.1 million and $0.5 million for the corresponding periods in fiscal 2017.

Warrants

Warrants	6 Months Ended
	Mar. 31, 2018
Warrants
Warrants	6. 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 March 31, 2018 and September 30, 2017, warrants to purchase 32,380 and 51,386 shares of common stock were outstanding, with an 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. During the six months ended March 31, 2018, warrants to purchase 19,006 shares of common stock were net exercised, resulting in the issuance of 4,469 shares of common stock.

Convertible Preferred Stock, Co

Convertible Preferred Stock, Common Stock and Stockholders' Equity	6 Months Ended
	Mar. 31, 2018
Convertible Preferred Stock, Common Stock and Stockholders' Equity - Convertible Preferred Stock
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, 2018 and September 30, 2017 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, 2018 and September 30, 2017 with a par value of $0.001 per share. As of March 31, 2018, there were 36,139,058 shares of common stock outstanding and as of September 30, 2017, there were 36,004,602 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 of common stock sold by Cantor Fitzgerald. The Company has not sold any shares of common stock under this sales agreement.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Mar. 31, 2018
Stock-Based Compensation
Stock-Based Compensation	8. Stock-Based Compensation Equity Incentive Plans As of March 31, 2018 and September 30, 2017, 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 grant new awards. 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 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 16, 2018 and January 10, 2017, the Company’s board of directors authorized an increase of 1,444,716 and 902,298 shares to be added to the total number of shares of common stock issuable under the 2014 Plan. As of March 31, 2018 and September 30, 2017, the Company had reserved 6,440,105 and 5,060,829 shares of common stock for issuance pursuant to the 2014 Plan. As of March 31, 2018 and September 30, 2017, the Company had 1,705,754 and 1,129,232 shares of common stock available for issuance pursuant to the 2014 Plan. Stock Options The exercise price of each stock 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 stock options granted under the Corium Plans is ten years and the vesting period is typically four years. A summary of stock option activity under the Corium Plans during the six months ended March 31, 2018 is as follows: Weighted Weighted Stock Average Remaining Aggregate Options Exercise Contractual Intrinsic Value Outstanding Price Life (Years) (In thousands) Balance - September 30, 2017 3,787,222 $ 4.85 6.84 $ 23,819 Options granted 811,050 $ 11.59 Options exercised (65,440) $ 3.40 Options forfeited / cancelled (12,411) $ 7.52 Options expired (445) $ 2.22 Balance - March 31, 2018 4,519,976 $ 6.07 6.99 $ 24,682 Options exercisable - March 31, 2018 2,932,806 $ 4.78 5.97 $ 19,766 Options vested and expected to vest - March 31, 2018 4,372,219 $ 5.99 6.92 $ 24,252 All outstanding stock options under the Corium Plans as of March 31, 2018 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, 2018 were estimated using the Black-Scholes option-pricing model with the following assumptions: Six Months Ended March 31, 2018 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 insufficient 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 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. Restricted Stock Unit Awards The fair value of restricted stock unit awards is determined on the grant date based on the fair market value of the Company’s common stock on the date of the grant. The restricted stock unit awards granted under the 2014 Plan have a maximum term of ten years and typically vest over a four-year period. A summary of restricted stock unit award activity under the Corium Plans during the six months ended March 31, 2018 is as follows: Weighted Average Number of Grant Date Shares Fair Value Nonvested - September 30, 2017 144,375 $ 6.44 Granted 70,000 $ 11.59 Vested (27,502) $ 5.50 Forfeited — $ — Nonvested - March 31, 2018 186,873 $ 8.51 As of March 31, 2018 and September 30, 2017, the Company had 214,375 and 144,375 restricted stock unit awards outstanding. 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 will be automatically increased by 1% of the number of shares of common stock and common stock equivalents 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 16, 2018 and January 10, 2017, the Company’s board of directors reserved an additional 409,224 and 267,565 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. 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. As of March 31, 2018 and September 30, 2017, there were 981,076 and 636,399 shares of common stock available for issuance pursuant to the 2014 ESPP. For the three and six months ended March 31, 2018, the Company recorded stock-based compensation expense related to the 2014 ESPP of $27,000 and $70,000 compared to $70,000 and $164,000 for the corresponding periods in fiscal 2017. For the six months ended March 31, 2018 and 2017, the Company issued 64,547 and 69,886 shares of common stock to employees pursuant to the 2014 ESPP. The fair value of the purchase rights granted under the 2014 ESPP for the offering periods beginning May 20, 2016, November 20, 2016, May 20, 2017 and November 20, 2017 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 March 31, 2018 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, $4.82, $6.54, and $10.95 for the offering periods commencing May 20, 2016, November 20, 2016, May 20, 2017 and November 20, 2017. Grant Price — 85% of the fair market value of the Company’s common stock on the first day of the offering period, or $3.22, $4.10, $5.56, and $9.31 for the offering periods commencing May 20, 2016, November 20, 2016, May 20, 2017 and November 20, 2017. 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 each of the expected terms. 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, 2018 and 2017 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, 2018 2017 2018 2017 Cost of product revenues $ 112 $ 105 $ 221 $ 206 Cost of contract research and development revenues 89 58 169 108 Research and development 261 176 481 327 General and administrative 785 583 1,511 1,150 Total stock-based compensation $ 1,247 $ 922 $ 2,382 $ 1,791 As of March 31, 2018, there was a total of $8.7 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 2.7 years.

Product Recall Liability

Product Recall Liability	6 Months Ended
	Mar. 31, 2018
Product Recall Liability
Product Recall Liability	9. Product Recall Liability In fiscal 2008 and fiscal 2010, 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. In April 2017, the Company and Actavis mutually agreed to extend the provision for quarterly payments through April 1, 2019, and agreed that, to the extent that the revised settlement liability has not been fully repaid as of April 30, 2019, 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. During the three and six months ended March 31, 2018, the Company made an immaterial amount of settlement payments to Actavis compared to $0.1 million and $0.3 million for the corresponding periods in fiscal 2017. The outstanding balance of the recall liability was $1.9 million as of March 31, 2018 and September 30, 2017.

Net Loss and Net Loss per Share

Net Loss and Net Loss per Share Attributable to Common Stockholders	6 Months Ended
	Mar. 31, 2018
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, 2018 and 2017 (in thousands, except share and per share data): Three Months Ended Six Months Ended March 31, March 31, 2018 2017 2018 2017 Basic and diluted net loss per share Net loss attributable to common stockholders, basic and diluted $ (18,006) $ (11,037) $ (31,298) $ (21,466) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 36,147,306 26,487,493 36,109,749 24,448,166 Net loss per share attributable to common stockholders, basic and diluted $ (0.50) $ (0.42) $ (0.87) $ (0.88) 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, 2018 2017 2018 2017 Convertible notes 6,968,641 — 6,968,641 — Stock options to purchase common stock 4,519,976 4,055,292 4,519,976 4,055,292 Unvested restricted stock unit awards 186,873 102,500 186,873 102,500 Shares authorized under the 2014 ESPP 981,076 701,368 981,076 701,368 Common stock warrants 32,380 51,386 32,380 51,386

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2018
Income Taxes
Income Taxes	11. Income Taxes The Company did not record a provision for Federal income taxes for the six months ended March 31, 2018 because it expects to generate a net operating loss for the year ending September 30, 2018. The income tax expense of $2,000 for both the six months ended March 31, 2018 and 2017 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. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”). The 2017 Tax Act makes broad and complex changes to the U.S. tax code and will affect the Company’s fiscal year ending September 30, 2018, including, but not limited to reducing the U.S. federal corporate tax rate from 35 percent to 21 percent and creating limitations on net operating losses (“NOLs”) generated after March 31, 2018. Because the Company’s fiscal years do not coincide with the federal tax year, Section 15 of the Internal Revenue Code requires that the Company’s fiscal year ending September 30, 2018 will have a blended corporate tax rate of 24.53 percent, which is based on the applicable tax rates in effect before and after December 31, 2017 weighted by the number of days in the Company’s 2018 fiscal year before and after December 31, 2017. The SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the 2017 Tax Act. SAB 118 provides a measurement period that should not extend beyond December 22, 2018 for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the 2017 Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the 2017 Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the 2017 Tax Act. The Company’s analysis of the impact of the 2017 Tax Act is incomplete, as it does not have the necessary information available, prepared, or analyzed in reasonable detail to make reasonable estimates of the effects as of March 31, 2018. The Company expects the 2017 Tax Act will result in a decline in deferred tax assets as a result of the lower U.S. corporate tax rate, however, due to the existence of a full valuation allowance the impact on income tax expense will be immaterial.

Segment and Enterprise-Wide Inf

Segment and Enterprise-Wide Information	6 Months Ended
	Mar. 31, 2018
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 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.

Organization, Description of 20

Organization, Description of Business, and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2018
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. The Company refers to its Transdermal Delivery Systems as “TDS.” 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. 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, 2018, statements of operations and comprehensive loss for the three and six months ended March 31, 2018 and 2017, statement of stockholders’ equity for the six months ended March 31, 2018, and statements of cash flows for the six months ended March 31, 2018 and 2017 are all 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, 2018, its results of operations for the three and six months ended March 31, 2018 and 2017, and its cash flows for the six months ended March 31, 2018 and 2017. The financial data and the other financial information contained in these notes to the financial statements related to the six-month periods are also unaudited. The results of operations for the six months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending September 30, 2018 or for any future annual or interim period. The balance sheet as of September 30, 2017 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, 2017 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on December 29, 2017. There have been no material changes to the significant accounting policies or recent accounting pronouncements previously disclosed in the Company’s audited financial statements for the year ended September 30, 2017.
Liquidity	Liquidity With the exception of fiscal 2013, the Company has incurred losses from operations since fiscal 2006 and has an accumulated deficit of $246.6 million as of March 31, 2018. The Company has financed its operations primarily through the proceeds from the sale of equity securities, and various debt and capital lease financings. During the six months ended March 31, 2018, the Company issued $120.0 million aggregate principal amount of convertible senior notes due in 2025 (see Note 4). The Company used the proceeds from the issuance of the convertible senior notes to prepay in full all outstanding borrowings, fees and other amounts due under the earlier term loan agreement with CRG, a structured debt and equity investment management firm. With the addition of the $62.0 million net proceeds arising from the issuance of the convertible notes and retirement of the CRG indebtedness, the Company believes that its existing cash and cash equivalents will be sufficient to fund operations as currently planned beyond the next 12 months. Consequently, the Company believes there is no longer the substantial doubt that existed in prior periods regarding its ability to continue as a going concern because, at such times, it did not have sufficient cash or cash equivalents to maintain compliance with its CRG loan covenant for minimum liquidity or the Company anticipated not being able to satisfy the CRG loan covenant for minimum revenue for the twelve months ended June 30, 2018. The unaudited condensed financial statements as of March 31, 2018 have been prepared under the assumption that the Company will continue as a going concern for the next 12 months.
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 trial expenses 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 both the three and six months ended March 31, 2018, three partners accounted for 99% of the Company’s revenues and three partners accounted for 99% of accounts receivable as of March 31, 2018. For the three and six months ended March 31, 2017, three partners accounted for 91% and 92% of the Company’s revenues. As of September 30, 2017, three partners accounted for 88% of accounts receivable.
Comprehensive Income (Loss)	Comprehensive Income (Loss) For the three and six months ended March 31, 2018 and 2017, 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	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. These ASUs are 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 modified retrospective method, with early adoption permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” which further clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” which addresses narrow-scope improvements to the guidance on collectibility, noncash consideration, and completed contracts at transition and provides a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. In December 2016, the FASB issued ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” which clarifies areas for correction or improvement in the Codification. The Company will adopt the new revenue recognition standard on October 1, 2018, utilizing the modified retrospective method. The Company is in the process of evaluating the impact the adoption of this standard will have on its financial statements and has performed an initial review of its major contracts with partners. Based on the initial reviews, the Company believes the adoption of the new standard will not have a significant quantitative impact on product revenues, as the timing of revenue recognition for product sales, profit sharing and royalties is not expected to significantly change. For the Company’s collaboration and partner arrangements, the consideration the Company is eligible to receive under these arrangements typically consists of nonrefundable upfront payments, reimbursement of research and development costs and milestone payments. The Company believes the adoption of the new standard will not have a significant quantitative impact on the revenue recognition of the reimbursement of research and development costs as the timing of the revenue recognition is not expected to significantly change. The Company continues to review the impact that this new standard will have on the timing of recognition for nonrefundable upfront payments and milestone payments as well as on its financial statement disclosures and has not made a determination on the impact to its financial statements. The Company is evaluating changes to its accounting processes, internal controls and disclosures to support the new standard. 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 annual 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. The Company is evaluating the effect that this ASU will have on the Company’s future financial position, results of operations or cash flows. In May 2017, the FASB issued ASU No. 2017-09, “Compensation-Stock Compensation (Topic 718) – Scope of Modification Accounting.” This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification, and provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all three of the following conditions are met: (1) The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. (2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. (3) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. This ASU is effective for annual periods beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s future financial position, results of operations or cash flows.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2018
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, 2018 Level I Level II Level III Total Financial Assets: Money market funds $ 94,773 $ — $ — $ 94,773 As of September 30, 2017 Level I Level II Level III Total Financial Assets: Money market funds $ 57,928 $ — $ — $ 57,928
Schedule of differences between carrying values and estimated fair value of financial instruments	The following financial liabilities have carrying values which are similar or differ from their fair value as estimated by the Company based on market quotes for instruments with similar terms and remaining maturities (in thousands): As of March 31, 2018 Carrying Fair Value Value Difference Long-term debt $ 398 $ 398 $ — As of September 30, 2017 Carrying Fair Value Value Difference Long-term debt $ 52,199 $ 55,888 $ 3,689

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Mar. 31, 2018
Inventories
Schedule of Inventories	Inventories consist of the following (in thousands): As of March 31, As of September 30, 2018 2017 Raw materials $ 1,514 $ 1,683 Work in process 279 264 Finished goods 182 353 Total inventories $ 1,975 $ 2,300

Debt (Tables)

Debt (Tables)	6 Months Ended
	Mar. 31, 2018
Schedule of the entity's outstanding debt	Long-Term Debt Outstanding long-term debt consists of the following (dollars in thousands): As of March 31, As of September 30, 2018 2017 Term loan agreement expiring June 30, 2019, less unamortized issuance costs of $697 and unamortized discount of $27 as of September 30, 2017. See terms of the agreement below. $ — $ 51,779 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 398 420 Total 398 52,199 Less current portion 48 13,172 Long-term portion $ 350 $ 39,027
Warrant
Schedule of valuation assumptions for warrant	The Company estimated the value of this warrant as of March 31, 2018 using the Black-Scholes option pricing model with the following key assumptions: Expected term (in years) Risk-free interest rate % Expected volatility % Expected dividend rate %
Convertible Notes
Schedule of Convertible Notes	The table below summarizes the carrying value of the Convertible Notes as of March 31, 2018 (in thousands): Gross proceeds $ 120,000 Portion of proceeds allocated to equity component (additional paid-in capital) (48,671) Debt issuance costs (6,204) Portion of issuance costs allocated to equity component (additional paid-in capital) 2,517 Amortization of debt discount and debt issuance costs 517 Carrying value Convertible Notes $ 68,159

Collaboration and Partner Arr24

Collaboration and Partner Arrangements (Tables)	6 Months Ended
	Mar. 31, 2018
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, 2018 2017 2018 2017 Mayne $ 2,657 $ 796 $ 4,689 $ 2,203 Par — — — 363 P&G 4,978 4,092 9,793 8,113 Agile 2,333 1,782 4,656 2,860 Other 92 675 237 774 Total revenues $ 10,060 $ 7,345 $ 19,375 $ 14,313

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Mar. 31, 2018
Stock-Based Compensation
Summary of stock option activity	Weighted Weighted Stock Average Remaining Aggregate Options Exercise Contractual Intrinsic Value Outstanding Price Life (Years) (In thousands) Balance - September 30, 2017 3,787,222 $ 4.85 6.84 $ 23,819 Options granted 811,050 $ 11.59 Options exercised (65,440) $ 3.40 Options forfeited / cancelled (12,411) $ 7.52 Options expired (445) $ 2.22 Balance - March 31, 2018 4,519,976 $ 6.07 6.99 $ 24,682 Options exercisable - March 31, 2018 2,932,806 $ 4.78 5.97 $ 19,766 Options vested and expected to vest - March 31, 2018 4,372,219 $ 5.99 6.92 $ 24,252
Schedule of valuation assumptions used for stock options	Six Months Ended March 31, 2018 Expected term (in years) - Risk-free interest rate % - % Expected volatility % - % Expected dividend rate %
Schedule of restricted stock unit activity	Weighted Average Number of Grant Date Shares Fair Value Nonvested - September 30, 2017 144,375 $ 6.44 Granted 70,000 $ 11.59 Vested (27,502) $ 5.50 Forfeited — $ — Nonvested - March 31, 2018 186,873 $ 8.51
Schedule of valuation assumptions used for ESPP	As of March 31, 2018 Fair value of common stock $ – $ Grant price $ – $ Expected term (in years) – Expected volatility % – % Risk-free interest rate % – % Expected dividend rate %
Schedule of employee stock-based compensation expense classified in the statements of operations and comprehensive loss	Employee stock-based compensation expense for the three and six months ended March 31, 2018 and 2017 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, 2018 2017 2018 2017 Cost of product revenues $ 112 $ 105 $ 221 $ 206 Cost of contract research and development revenues 89 58 169 108 Research and development 261 176 481 327 General and administrative 785 583 1,511 1,150 Total stock-based compensation $ 1,247 $ 922 $ 2,382 $ 1,791

Net Loss and Net Loss per Sha26

Net Loss and Net Loss per Share Attributable to Common Stockholders (Tables)	6 Months Ended
	Mar. 31, 2018
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, 2018 and 2017 (in thousands, except share and per share data): Three Months Ended Six Months Ended March 31, March 31, 2018 2017 2018 2017 Basic and diluted net loss per share Net loss attributable to common stockholders, basic and diluted $ (18,006) $ (11,037) $ (31,298) $ (21,466) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 36,147,306 26,487,493 36,109,749 24,448,166 Net loss per share attributable to common stockholders, basic and diluted $ (0.50) $ (0.42) $ (0.87) $ (0.88)
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, 2018 2017 2018 2017 Convertible notes 6,968,641 — 6,968,641 — Stock options to purchase common stock 4,519,976 4,055,292 4,519,976 4,055,292 Unvested restricted stock unit awards 186,873 102,500 186,873 102,500 Shares authorized under the 2014 ESPP 981,076 701,368 981,076 701,368 Common stock warrants 32,380 51,386 32,380 51,386

Organization, Description of 27

Organization, Description of Business and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)item	Mar. 31, 2017item	Mar. 31, 2018USD ($)item	Mar. 31, 2017item	Sep. 30, 2017USD ($)item	Dec. 04, 2014USD ($)
Liquidity
Accumulated deficit	$ (246,579)		$ (246,579)		$ (215,281)
Net proceeds after issuance of convertible notes and payment of outstanding borrowings			$ 62,000
Term loan agreement expiring on June 30, 2019
Liquidity
Face amount						$ 45,000
Principal amount outstanding					$ 51,800
Revenues. | Customer concentration | Three partners
Concentration of credit risk
Number of partners | item	3	3	3	3
Concentration risk percentage	99.00%	91.00%	99.00%	92.00%
Accounts receivable | Credit concentration | Three partners
Concentration of credit risk
Number of partners | item			3		3
Concentration risk percentage			99.00%		88.00%
Convertible Notes
Liquidity
Face amount	$ 120,000		$ 120,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis - Money market funds - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Financial Assets
Total financial assets	$ 94,773	$ 57,928
Level I
Financial Assets
Total financial assets	$ 94,773	$ 57,928

Fair Value Measurements (Level

Fair Value Measurements (Level III Valuation) (Details) - USD ($) $ in Thousands	1 Months Ended
	Mar. 31, 2018	Mar. 05, 2018	Sep. 30, 2017	Dec. 04, 2014
Term loan agreement expiring on June 30, 2019
Fair value measurements
Principal amount				$ 45,000
Principal amount outstanding			$ 51,800
Convertible Notes
Fair value measurements
Principal amount	$ 120,000
Term of debt (in years)	7 years
Portion of convertible notes proceeds allocated to debt		$ 71,300
Portion of proceeds allocated to equity component (additional paid-in capital)	$ 48,671
Carrying Value
Fair value measurements
Long-term debt	398		52,199
Fair Value
Fair value measurements
Long-term debt	$ 398		55,888
Fair Value | Convertible Notes
Fair value measurements
Portion of convertible notes proceeds allocated to debt		$ 71,300
Difference
Fair value measurements
Long-term debt			$ 3,689

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Inventories
Raw materials	$ 1,514	$ 1,683
Work in process	279	264
Finished goods	182	353
Total inventories	$ 1,975	$ 2,300

Debt (Details)

Debt (Details) $ in Thousands	Mar. 05, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)installment	Mar. 31, 2018USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)installment	Dec. 31, 2018	Dec. 04, 2014USD ($)
Long-term Debt
Carrying value of long-term debt		$ 398		$ 398	$ 52,199
Less current portion		48		48	13,172
Long-term debt, net of current portion		350		350	39,027
Loss on extinguishment of long-term debt		(2,258)		(2,258)
Term loan agreement expiring on June 30, 2019
Long-term Debt
Carrying value of long-term debt					51,779
Unamortized issuance costs					697
Unamortized discount					27
Interest rate (as a percent)			15.00%			15.00%
Face amount								$ 45,000
Maximum borrowing capacity								$ 45,000
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%
Portion of interest due converted into additional notes						$ 7,500
Principal amount outstanding					51,800
Percentage fee (as a percent)	4.25%		1.00%			1.00%
Payment of debt, fees and other amounts due	$ 54,700
Term loan agreement expiring on June 30, 2019 | Forecast
Long-term Debt
Prepayment premium (as a percent)							3.25%
Notes payable due in November 2024
Long-term Debt
Carrying value of long-term debt		$ 398		$ 398	420
Monthly payments of principal and interest			$ 6		$ 6
Interest rate (as a percent)			7.00%		7.00%	7.00%

Debt - Convertible Notes (Detai

Debt - Convertible Notes (Details)	May 14, 2018$ / sharesshares	Mar. 31, 2018USD ($)D$ / shares	Mar. 31, 2018USD ($)$ / shares	Mar. 31, 2018USD ($)$ / shares	Mar. 05, 2018USD ($)
Convertible notes
Offering fees and expenses				$ 3,300,000
Initial portion of convertible notes proceeds allocated to equity component, net of issuance costs				46,154,000
Gross proceeds				120,000,000
Portion of issuance costs allocated to equity component (additional paid-in capital)		$ 2,500,000	$ 2,500,000	2,500,000
Amortization of debt discount and debt issuance costs				517,000
Carrying value Convertible Notes		68,159,000	68,159,000	68,159,000
Warrant to be issued in connection with the convertible note offering				2,432,000
Convertible Notes
Convertible notes
Face amount		$ 120,000,000	$ 120,000,000	$ 120,000,000
Interest rate (as a percent)		5.00%	5.00%	5.00%
Optional amount of debt initial purchaser has option to purchase		$ 20,000,000
Net proceeds from debt offering		116,700,000
Offering fees and expenses		$ 3,300,000
Conversion rate of common stock per $1 of principal amount		0.0580552
Principal amount		$ 1,000	$ 1,000	$ 1,000
Conversion price (in dollars per share) | $ / shares		$ 17.22	$ 17.22	$ 17.22
Stock price trigger (as a percent)		130.00%
Number of trading days within 30 consecutive trading days | D		20
Consecutive trading days, period | D		30
Business days, period		5 days
Consecutive trading-day period		5 days
Maximum product of the closing sale price of shares of the Company's common stock and the applicable conversion rate for such trading day (as a percent)		98.00%	98.00%	98.00%
Portion of convertible notes proceeds allocated to debt					$ 71,300,000
Term of debt (in years)		7 years
Initial portion of convertible notes proceeds allocated to equity component, net of issuance costs		$ 46,200,000
Portion of convertible notes proceeds allocated to debt		3,700,000
Debt discount and issuance costs subject to amortization		$ 52,400,000	$ 52,400,000	$ 52,400,000
Effective interest rate (as a percent)		11.21%	11.21%	11.21%
Interest expense			$ 900,000	$ 900,000
Gross proceeds				120,000,000
Portion of proceeds allocated to equity component (additional paid-in capital)		$ (48,671,000)	(48,671,000)	(48,671,000)
Debt issuance costs		(6,204,000)	(6,204,000)	(6,204,000)
Portion of issuance costs allocated to equity component (additional paid-in capital)		2,517,000	2,517,000	2,517,000
Amortization of debt discount and debt issuance costs				517,000
Carrying value Convertible Notes		$ 68,159,000	$ 68,159,000	$ 68,159,000
Cantor Fitzgerald
Convertible notes
Number of shares the warrant may be converted | shares	350,000
Warrant term	7 years
Strike price (in dollars per share) | $ / shares	$ 17.22
Warrant
Assumptions used in estimating weighted average fair value
Expected term (in years)				7 years
Risk-free interest rate (as a percent)				2.68%
Expected volatility (as a percent)				70.00%
Expected dividend rate (as a percent)				0.00%

Collaboration and Partner Arr33

Collaboration and Partner Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Collaboration and partner arrangements
Total revenues	$ 10,060	$ 7,345	$ 19,375	$ 14,313
Mayne
Collaboration and partner arrangements
Total revenues	2,657	796	4,689	2,203
Royalties and profit sharing	100	100	400	500
Par
Collaboration and partner arrangements
Total revenues				363
P&G
Collaboration and partner arrangements
Total revenues	4,978	4,092	9,793	8,113
Agile
Collaboration and partner arrangements
Total revenues	2,333	1,782	4,656	2,860
Other
Collaboration and partner arrangements
Total revenues	$ 92	$ 675	$ 237	$ 774

Warrants (Details)

Warrants (Details) - Common stock warrants - $ / shares	6 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017
Warrants
Warrants outstanding (in shares)	32,380	51,386	51,386
Exercise price (in dollars per share)	$ 9.26		$ 9.26
Warrant shares exercised	19,006
Stock exercised into shares of common stock using the net exercise provisions in the warrants (in shares)	4,469
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, 2018	Dec. 31, 2017	Sep. 30, 2017
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		36,139,058		36,004,602
Shares sold		36,139,058		36,004,602
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 - Stoc

Stock-Based Compensation - Stock Options (Details) $ / shares in Units, $ in Thousands	Jan. 16, 2018shares	Jan. 10, 2017shares	Mar. 19, 2014shares	Mar. 31, 2018USD ($)plan$ / sharesshares	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)plan$ / sharesshares	Mar. 31, 2017USD ($)	Sep. 30, 2017USD ($)plan$ / sharesshares
Stock-Based Compensation
Number of plans | plan				3		3		3
Allocated Share-based Compensation Expense | $				$ 1,247	$ 922	$ 2,382	$ 1,791
Stock options
Assumptions used in estimating weighted average fair value
Risk-free interest rate, minimum						2.08%
Risk-free interest rate, maximum						2.72%
Expected volatility, minimum						67.00%
Expected volatility, maximum						73.00%
Expected dividend rate (as a percent)						0.00%
Stock options | Minimum
Assumptions used in estimating weighted average fair value
Expected term (in years)						5 years 3 months 7 days
Stock options | Maximum
Assumptions used in estimating weighted average fair value
Expected term (in years)						6 years 6 months 26 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	1,444,716	902,298
Corium Plans
Stock-Based Compensation
Number of shares of common stock reserved under plan for issuance to employees				6,440,105		6,440,105		5,060,829
Shares of common stock available for grant				1,705,754		1,705,754		1,129,232
Corium Plans | Stock options
Stock-Based Compensation
Vesting period						4 years
Stock Options Outstanding
Balance at the beginning of the period (in shares)						3,787,222
Granted (in shares)						811,050
Options exercised (in shares)						(65,440)
Options forfeited / cancelled (in shares)						(12,411)
Options expired						(445)
Balance at the end of the period (in shares)				4,519,976		4,519,976		3,787,222
Options exercisable at the end of the period (in shares)				2,932,806		2,932,806
Options vested and expected to vest at the end of the period (in shares)				4,372,219		4,372,219
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) | $ / shares						$ 4.85
Options granted (in dollars per share) | $ / shares						11.59
Options exercised (in dollars per share) | $ / shares						3.40
Options forfeited / cancelled (in dollars per share) | $ / shares						7.52
Options expired | $ / shares						2.22
Balance at the end of the period (in dollars per share) | $ / shares				$ 6.07		6.07		$ 4.85
Options exercisable at the end of the period (in dollars per share) | $ / shares				4.78		4.78
Options vested and expected to vest at the end of the period (in dollars per share) | $ / shares				$ 5.99		$ 5.99
Weighted Average Remaining Contractual Life
Balance - Weighted Average Remaining Contractual Life						6 years 11 months 27 days		6 years 10 months 2 days
Options exercisable at the end of the period						5 years 11 months 19 days
Options vested and expected to vest at the end of the period						6 years 11 months 1 day
Aggregate Intrinsic Value
Balance - Aggregate Intrinsic Value | $				$ 24,682		$ 24,682		$ 23,819
Options exercisable at the end of the period | $				19,766		19,766
Options vested and expected to vest at the end of the period | $				$ 24,252		$ 24,252
Additional disclosures
Exercise price, minimum(in dollars per share) | $ / shares						$ 2.12
Exercise price, maximum(in dollars per share) | $ / shares						$ 14.12
Corium Plans | Stock options | Maximum
Stock-Based Compensation
Term of the plan						10 years

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Unit Awards (Details) - Restricted stock unit awards - $ / shares	6 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Stock-Based Compensation
Vesting period	4 years
Maximum
Stock-Based Compensation
Term of the plan	10 years
Corium Plans
Number of Shares
Balance at the beginning of the period (in shares)	144,375
Granted (in shares)	70,000
Vested (in shares)	(27,502)
Balance at the end of the period (in shares)	186,873
Outstanding awards	214,375	144,375
Weighted Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share)	$ 6.44
Granted (in dollars per share)	11.59
Vested and released (in dollars per shares)	5.50
Balance at the end of the period (in dollars per share)	$ 8.51

Stock-Based Compensation - 2014

Stock-Based Compensation - 2014 Employee Stock Purchase Plan (Details)	Jan. 16, 2018shares	Nov. 20, 2017$ / shares	May 20, 2017$ / shares	Jan. 10, 2017shares	Nov. 20, 2016$ / shares	May 20, 2016$ / shares	Mar. 19, 2014shares	Mar. 31, 2018USD ($)$ / sharesshares	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)$ / sharesshares	Mar. 31, 2017USD ($)shares	Nov. 20, 2017item$ / shares	Sep. 30, 2017shares
2014 Employee Stock Purchase Plan
Stock-based compensation | $								$ 1,247,000	$ 922,000	$ 2,382,000	$ 1,791,000
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	981,076		981,076			636,399
Stock-based compensation | $								$ 27,000	$ 70,000	$ 70,000	$ 164,000
Additional shares authorized | shares	409,224			267,565
Offering period										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		$ 10.95	$ 6.54		$ 4.82	$ 3.79						$ 10.95
Grant Price		$ 9.31	$ 5.56		$ 4.10	$ 3.22
Expected volatility, minimum										56.00%
Expected volatility, maximum										87.00%
Risk-free interest rate, minimum										0.89%
Risk-free interest rate, maximum										1.77%
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										64,547	69,886
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								$ 10.95		$ 10.95
Grant Price										$ 9.31
Expected term (in years)										2 years

Stock-Based Compensation - St39

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Employee stock-based compensation expense
Stock-based compensation	$ 1,247	$ 922	$ 2,382	$ 1,791
Additional Disclosure
Unrecognized employee compensation cost, net of estimated forfeitures	8,700		$ 8,700
Weighted-average period over which unrecognized compensation cost is expected to be recognized			2 years 8 months 12 days
Cost of product revenues
Employee stock-based compensation expense
Stock-based compensation	112	105	$ 221	206
Cost of contract research and development revenues
Employee stock-based compensation expense
Stock-based compensation	89	58	169	108
Research and development
Employee stock-based compensation expense
Stock-based compensation	261	176	481	327
General and administrative
Employee stock-based compensation expense
Stock-based compensation	$ 785	$ 583	$ 1,511	$ 1,150

Product Recall Liability (Detai

Product Recall Liability (Details) $ in Millions	3 Months Ended	6 Months Ended	36 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2017USD ($)	Sep. 30, 2011item	Sep. 30, 2010item	Mar. 31, 2018USD ($)	Oct. 31, 2012USD ($)
Product recall liability
Recall liability | $					$ 1.9	$ 5
Actavis
Product recall liability
Payment of settlement liability | $	$ 0.1	$ 0.3
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		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
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	$ (18,006)	$ (11,037)	$ (31,298)	$ (21,466)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	36,147,306	26,487,493	36,109,749	24,448,166
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.50)	$ (0.42)	$ (0.87)	$ (0.88)
Convertible Notes
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	6,968,641		6,968,641
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	4,519,976	4,055,292	4,519,976	4,055,292
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	186,873	102,500	186,873	102,500
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	981,076	701,368	981,076	701,368
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	32,380	51,386	32,380	51,386

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Dec. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2018
Income tax expense			$ 2	$ 2
Statutory federal rate (as a percent)	21.00%	35.00%
Forecast
Statutory federal rate (as a percent)					24.53%

Segment and Enterprise-Wide I43

Segment and Enterprise-Wide Information (Details)	6 Months Ended
	Mar. 31, 2018item
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