Innocoll 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 03, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	Innocoll Holdings plc
Entity Central Index Key	1,660,484
Trading Symbol	innl
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		30,095,931
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenue	$ 1,207	$ 1,560
Cost of sales	(2,706)	(1,711)
Gross loss	(1,499)	(151)
Research and development expenses	(1,317)	(14,969)
General and administrative expenses	(8,402)	(7,385)
Loss on disposal of property, plant and equipment	(1)
Loss from operating activities	(11,219)	(22,505)
Interest income	7	10
Interest expense	(703)	(429)
Other expense	(700)	(299)
Loss before income tax	(12,615)	(23,223)
Income tax (expense)/benefit	(73)	169
Net loss	(12,688)	(23,054)
Other comprehensive loss:
Currency translation adjustment	47	117
Total comprehensive loss	$ (12,641)	$ (22,937)
Net loss per share
Basic and diluted (in dollars per share)	$ (0.43)	$ (0.97)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 7,200	$ 15,765
Trade and other receivables, net	1,139	1,350
Inventories	1,966	2,403
Prepaid expenses	3,363	5,486
Total current assets	13,668	25,004
Property, plant and equipment, net	17,501	16,698
Other assets	305	300
Total assets	31,474	42,002
Current liabilities:
Trade payables and accrued expenses	11,781	13,505
Deferred revenue	1,732	1,827
Current taxes payable	80	36
Total current liabilities	13,593	15,368
Interest bearing loans and borrowings	30,184	28,948
Warrant liability	1,007	854
Defined benefit pension liability	29	28
Total liabilities	44,813	45,198
Commitments and Contingencies
Equity:
Ordinary shares, par value, authorized: 1,025,100,000 shares, issued: 29,814,934 shares (29,773,239 shares in 2016), outstanding: 29,789,934 shares (29,748,239 shares in 2016) (Note 13)	325	324
Additional paid-in capital	223,462	220,965
Treasury shares, at cost, 25,000 shares as of March 31, 2017 and December 31, 2016	(27)	(27)
Accumulated currency translation adjustment	(1,305)	(1,352)
Accumulated loss	(235,794)	(223,106)
Total shareholders' deficit	(13,339)	(3,196)
Total liabilities and equity	$ 31,474	$ 42,002

CONDENSED CONSOLIDATED BALANCE4

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	1,025,100,000	1,025,100,000
Common stock, shares, issued	29,814,934	29,773,239
Common stock, shares, outstanding	29,789,934	29,748,239
Treasury stock, shares	25,000	25,000

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' (DEFICIT)/ EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common Stock	Additional paid-in capital	Accumulated currency translation adjustment	Treasury Shares	Accumulated loss	Total
Balance at Dec. 31, 2015	$ 1,943	$ 173,353	$ (1,244)		$ (166,152)	$ 7,900
Balance (in shares) at Dec. 31, 2015	1,785
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss					(23,054)	(23,054)
Currency translation adjustment			117			117
Share-based compensation		1,911				1,911
Exchange of shares resulting from common control merger	$ (1,680)	1,707				27
Exchange of shares resulting from common control merger (in shares)	21,866
Ordinary shares held in treasury at cost				$ (27)		(27)
Ordinary shares held in treasury at cost (in shares)				25
Issue of ordinary shares, net of issue costs	$ 1	3				4
Issue of ordinary shares, net of issue costs (in shares)	42
Balance at Mar. 31, 2016	$ 264	176,974	(1,127)	$ (27)	(189,206)	(13,122)
Balance (in shares) at Mar. 31, 2016	23,693			25
Balance at Dec. 31, 2016	$ 324	220,965	(1,352)	$ (27)	(223,106)	(3,196)
Balance (in shares) at Dec. 31, 2016	29,748			25
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss					(12,688)	(12,688)
Currency translation adjustment			47			47
Share-based compensation		2,494				2,494
Issue of ordinary shares, net of issue costs	$ 1	3				4
Issue of ordinary shares, net of issue costs (in shares)	42
Balance at Mar. 31, 2017	$ 325	$ 223,462	$ (1,305)	$ (27)	$ (235,794)	$ (13,339)
Balance (in shares) at Mar. 31, 2017	29,790			25

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net loss	$ (12,688)	$ (23,054)
Adjustments to reconcile net loss to net cash used in operating activities:
Deferred income tax (credit)/expense	(2)	330
Loss on disposals of property, plant and equipment	1
Depreciation of property, plant and equipment	271	95
Share-based compensation	2,494	1,911
Foreign exchange losses/(gains)	448	(367)
Changes in assets and liabilities:
Decrease/(increase) in inventories	437	(80)
Decrease/(increase) in trade and other receivables	211	(486)
(Decrease)/increase in trade payables and accrued expenses	(1,724)	3,789
Decrease in prepaid expenses	2,123	100
Decrease in deferred revenue and defined benefit pension liability	(94)	(253)
Increase/(decrease) in warrant liability	153	(99)
Increase in interest payable	703	429
Increase in income tax payable	44	106
Net cash used in operating activities	(7,623)	(17,579)
Investing activities:
Purchases of property, plant and equipment	(989)	(2,415)
Net cash used in investing activities	(989)	(2,415)
Financing activities:
Proceeds from issue of ordinary shares	3	3
Net cash inflows from financing activities	3	3
Effect of foreign exchange rate changes on cash and cash equivalents	44	548
Net decrease in cash and cash equivalents	(8,565)	(19,443)
Cash and cash equivalents at the beginning of the period	15,765	42,186
Cash and cash equivalents at the end of the period	7,200	22,743
Supplemental cash flow information:
Interest paid		(4)
Income taxes paid	$ (31)	$ (543)

Basis of Preparation and Signif

Basis of Preparation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Preparation and Significant Accounting Policies	Note 1. Basis of Preparation and Significant Accounting Policies Basis of Preparation These unaudited interim condensed consolidated financial statements include the accounts of Innocoll Holdings plc and its subsidiaries (herein referred to as “we,” “us,” “our,” “Innocoll” or the “Company”) and have been prepared These statements reflect all adjustments, which in the opinion of management, are necessary for fair presentation of the information contained i The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported in the unaudited interim condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Proposed Transaction On April 4, 2017, Innocoll entered into an agreement (the “Transaction Agreement”) on the terms of a recommended offer with Gurnet Point L.P., (“Gurnet Point”) a Delaware limited partnership acting through its general partner Waypoint International GP LLC, and Lough Ree Technologies Limited (“Gurnet Bidco”), an Irish private limited company and wholly-owned subsidiary of Gurnet Point. Under the recommended offer Gurnet Bidco will acquire the entire issued ordinary shares of the Company (the “Acquisition”) as of immediately prior to the effective date of the acquisition, subject to certain conditions, including the receipt of the necessary approval from the Company’s shareholders and other customary closing conditions. For each ordinary share of the Company, Gurnet Bidco will pay: (a) $1.75 in cash and (b) a contingent value right (each, a “CVR”) to be issued by Gurnet Bidco on the terms and conditions set forth in a CVR agreement to be entered into between Gurnet Bidco and an as of yet unidentified third party, as rights agent (the “Rights Agent”) in connection with the completion of the acquisition (the “CVR Agreement”), which will represent the contractual right to receive additional payments in cash up to a maximum aggregate amount of $4.90 per CVR, contingent upon the Company’s achievement of certain milestones related to the approval of the Company’s drug candidate Xaracoll by the U.S. Food and Drug Administration (“FDA”) and to the achievement of certain sales targets. The aggregate value of the transaction is $209 million (including the maximum amount payable upon achievement of the CVR milestones). In connection with the Acquisition, on May 9, 2017, the Company (in its capacity as the Guarantor) and its wholly-owned subsidiary, Innocoll Pharmaceuticals Limited, an Irish private limited company (the “Borrower”) entered into a Loan and Guaranty Agreement (the “GP Term Loan Agreement”) with Gurnet Point. Pursuant to the GP Term Loan Agreement, upon the agreed upon drawdown date, Gurnet Point or its Affiliate (the “Lender”) will loan the Borrower an aggregate principal amount of up to $10 million (the “GP Term Loan”). Upon entry into the GP Term Loan Agreement, the Company granted to Gurnet Bidco a warrant (the “Warrant”) to subscribe for up to 5% of the outstanding share capital of Innocoll as of December 31, 2017 for an exercise price of $0.01 per Company share. The Warrant will be exercisable if the GP Term Loan is not repaid in full by December 31, 2017. On May 5, 2017, in order to obtain the consent of The European Investment Bank (“EIB”) to enter into the GP Term Loan Agreement (i) the Company, the Borrower and the EIB entered into an Amendment and Waiver Agreement (the “Amendment Agreement”) to modify certain terms of the Finance Contract (the “Finance Contract”) between the Borrower and the EIB and (ii) the Company, the Lender, the Borrower and the EIB entered into an Intercreditor Deed (the “Intercreditor Deed”). The Amendment Agreement permits the entry into the GP Term Loan Agreement and modifies certain terms of the Finance Contract, including the maturity date of the Finance Contract under the occurrence of certain events. Subject to the prior condition that the Company raises, prior to December 15, 2017, at least $25 million through one or more equity financings, shareholder loans or from licensing revenue and has at least $25 million in cash on hand at December 30, 2017 (referred to as the “Extension Conditions”), the Intercreditor Deed provides that the Company may repay the GP Term Loan on December 30, 2017, prior to the repayment of the obligations under the Finance Contract, without such repayment constituting an event of default under the Finance Contract. The Amendment Agreement further provides that, if on December 31, 2017, the Acquisition has not been effected and the Extension Conditions have not been achieved, the EIB has the right to demand repayment of all of the obligations outstanding under the Finance Contract on or after December 31, 2017 instead of having to wait until the existing maturity on the outstanding obligations. Other than transaction expenses associated with the proposed transaction of $2.3 million for the three months ended March 31, 2017, the proposed transaction did not impact the Company's unaudited interim condensed consolidated financial statements. Accounting Pronouncements Accounting Standard Update (“ASU”) 2014-09 “Revenue from Contracts with Customers.” 1) identify the contract; 2) identify performance obligations; 3) determine the transaction price; 4) allocate the transaction price; and 5) recognize revenue. The ASU will result in enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue arising from contracts with customers. For public business entities, certain not-for-profit entities, and certain employee benefit plans, the effective date for ASC 606 is annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early application is permitted only as of annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. The effective date for all other entities is annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the ASU early, as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply ASC 606 early as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies ASC 606. The company intends to adopt the standard for annual periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company is currently establishing an implementation process to complete an initial assessment as to the impact of the standard on its contract portfolio and to commence implementing the ASU. The Company will select a representative sample of its contracts to review to identify the potential differences that would result from applying the requirements of the new standard and base its initial assessment on this process. Once completed the Company will complete a final assessment of the impact of the ASU and determine whether or not it will have a material impact on the Company’s financial statements and select its method of adoption at that time. The ASU provides detailed disclosure requirements, which are more detailed than under current U.S. GAAP. This will represent a significant change from current practice and significantly increase the volume of disclosures required in the financial statements. The Company expects to complete its impact assessment over the coming months and initiate efforts to redesign impacted processes, policies and controls. ASU 2015-11 “Simplifying the Measurement of Inventory.” ASU 2016-02, “ Leases ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting. ASU 2016-15, “Statement of Cash Flows ASU 2016-18 “Statement of Cash Flows The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations. The planned adoption dates for all standards not yet implemented are based on the Company’s current classification as an Emerging Growth Company. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period as noted in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. If this classification changes, we will re-valuate our timeline for implementing these standards.

Research and development expens

Research and development expenses	3 Months Ended
	Mar. 31, 2017
Research and Development [Abstract]
Research and development expenses	Note 2. Research and development expenses Three Months Ended March 31, Thousands of Dollars 2017 2016 Employee compensation $ 568 $ 735 External clinical research costs 651 14,020 General operating costs 98 214 Total research and development expenses $ 1,317 $ 14,969 Research and development expenses include labor, materials and direct overheads associated with the various research programs.

Other expense

Other expense	3 Months Ended
	Mar. 31, 2017
Other Income and Expenses [Abstract]
Other expense	Note 3. Other expense Three Months Ended March 31, Thousands of Dollars 2017 2016 Warrant (expense)/income $ (153 ) $ 99 Foreign exchange loss (547 ) (395 ) Other expense - (3 ) Total other expense $ (700 ) $ (299 ) The warrant (expense)/income arises on the change in the fair value of the liability of the warrants following re-measurement at each period end.

Loss per share

Loss per share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Loss per share	Note 4. Loss per share The Company calculates basic EPS by dividing the net loss attributable to ordinary shareholders for the period by the weighted average number of ordinary shares outstanding during the period. The Company calculates diluted EPS by dividing the net loss attributable to ordinary shareholders for the period by the weighted average number of ordinary shares and dilutive instruments outstanding during the period. The Company has RSUs and other stock awards which have been granted to eligible employees. These awards may have a potential dilutive effect if exercised. The weighted average number of ordinary shares have been adjusted to reflect the effect of the merger in 2016. The impact of the merger in 2016 is further detailed in the 2016 Annual Report. The below table presents the basic and diluted EPS: Three Months Ended March 31, 2017 2016 Numerator - Thousands of Dollars: Net loss - basic and diluted $ (12,688 ) $ (23,054 ) Denominator - Number of shares: Weighted-average shares outstanding -  basic and diluted 29,758,894 23,661,908 Loss per share: Basic and diluted $ (0.43 ) $ (0.97 ) The basic loss per share was $0.43 in the first quarter of 2017 and $0.97 in the first quarter of 2016. Options to purchase 2,771,369 ordinary shares were outstanding at March 31, 2017 but were not included in the computation of diluted EPS because the options’ exercise price was greater than the average market price of the ordinary shares. 1,329,000 restricted stock units were outstanding at March 31, 2017 but were not included in the computation of diluted EPS as they are anti-dilutive due to the company incurring losses.

Trade and other receivables, ne

Trade and other receivables, net	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Trade and other receivables, net	Note 5. Trade and other receivables, net Thousands of Dollars March 31, 2017 December 31, 2016 Trade receivables, net $ 636 $ 320 Sales taxes receivable 503 1,030 Total trade and other receivables, net $ 1,139 $ 1,350

Inventories

Inventories	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventories	Note 6. Inventories Thousands of Dollars March 31, 2017 December 31, 2016 Raw materials $ 973 $ 920 Work in progress 882 1,266 Finished goods 111 217 Total inventories $ 1,966 $ 2,403

Property, plant and equipment,

Property, plant and equipment, net	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property, plant and equipment, net	Note 7. Property, plant and equipment, net Thousands of Dollars March 31, 2017 December 31, 2016 Leasehold improvements $ 11,074 $ 10,752 Plant and machinery 17,204 16,558 Furniture and fittings 3,359 3,253 Property, plant and equipment, gross 31,637 30,563 Less: accumulated depreciation (14,136 ) (13,865 ) Total property, plant and equipment, net $ 17,501 $ 16,698 Included in property, plant and equipment, net as of December 31, 2016 are assets under construction, which relate to the manufacturing facility in Germany. Assets under construction are stated at cost as of December 31, 2016. As of March 31, 2017 all assets previously under construction had been brought into use. No provision for depreciation is made on these assets until such time as the relevant assets are completed and brought into use. The Company did not incur and capitalize assets under construction during the three months ended March 31, 2017. During 2016, the Company incurred and capitalized assets under construction of $10.3 million.

Income Tax

Income Tax	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax	Note 8. Income Tax The Company’s incomes taxes (expense)/benefit was $(0.1) million and $0.2 million during the three months ended March 31, 2017 and 2016, respectively. The Company’s effective tax rates for these periods differ from the Irish corporate tax rate of 12.5% due to the effect of income earned by certain of the Company’s overseas entities being taxed at local statutory rates and the valuation allowance recognized in relation to losses arising on operations in Ireland as noted below. Deferred tax assets and liabilities The following temporary differences which might give rise to deferred taxes relate to: Thousands of Dollars March 31, 2017 December 31, 2016 Deferred tax assets: $ $ Tax credits and net operating losses 24,477 23,489 Valuation allowances (24,350 ) (23,364 ) Total deferred tax assets $ 127 $ 125 The recognized deferred tax assets of $0.1 million arises on losses carried forward from operations in the U.S. The Company has recognized these deferred tax assets in the period as management considers that the realization of these deferred tax balances in the near future is more likely than not. All of the unrecognized deferred tax assets arise on operations in Ireland. Losses arising on operations in Ireland can be carried forward indefinitely, but are limited to the same trade/trades. The Company has not recognized any deferred tax assets in the period as management does not consider the realization of these deferred tax balances in the near future to be more likely than not due to the significant costs the Company is likely to incur in the short term in advancing its product pipeline.

Interest-bearing loans and borr

Interest-bearing loans and borrowings	3 Months Ended
	Mar. 31, 2017
Debt Instruments [Abstract]
Interest-bearing loans and borrowings	Note 9. Interest-bearing loans and borrowings Gross liabilities as of March 31, 2017: Thousands of Dollars Interest Bearing Balance as of December 31, 2016 $ 28,948 Movements during the period 1,236 Balance as of March 31, 2017 $ 30,184 Reconciliation of gross proceeds to carrying value: Thousands of Dollars March 31, 2017 December 31, 2016 Gross Proceeds $ 27,571 $ 27,571 Accrued interest 3,567 2,779 Foreign exchange fluctuations (954 ) (1,402 ) $ 30,184 $ 28,948 On March 27, 2015, the Company approved the execution of the Finance Contract (the “Finance Contract”) between Innocoll Pharmaceuticals Limited and the European Investment Bank (“EIB”) for a loan of up to $27.6 million, pursuant to which amounts drawn were available to be used to finance up to 50% of certain research and development and capital expenditures forecast to be made by the Company over a three year period from 2015 through 2017. Pursuant to the terms of the Finance Contract, the first $16.3 million tranche of the loan commitment was available to be drawn at any time up to fifteen months from the date of the Finance Contract, and the remaining $11.3 million tranche was available to be drawn at any time up to eighteen months from the date of the Finance Contract subject to the delivery of clinical data, certified by the management board of Innocoll Holdings plc, confirming to the satisfaction of EIB that the primary clinical endpoints for either Cogenzia or XaraColl Phase 3 trials had been achieved and therefore it could be concluded that the Phase 3 clinical trial had successfully been completed. On December 18, 2015, Innocoll Pharmaceuticals Limited drew down the first tranche of $16.3 million. On June 17, 2016, Innocoll Pharmaceuticals Limited drew down the second and final tranche of $11.3 million. The loan bears interest at a fixed rate of 12% per annum, compounded annually. There are no cash payments of interest required during the term of the loan, interest on the outstanding loan balance accrues daily, and is payable only on the maturity date or prepayment date of the loan, whichever is earlier. The maturity date of each tranche is three to five years from the draw down date, as may be determined by the Company in each draw down request. Principal of the loan is payable on the maturity date or the prepayment date, whichever is earlier. Where a prepayment is made the Company will incur a prepayment indemnity of 1%, 0.75%, 0.5% or 0.25% of the principal amount to be repaid within one year, two years, three years or four years from date of drawdown, respectively. There will be no prepayment indemnity for prepayment after the fourth year. The loan contains an expenditure covenant requiring the Company to spend at least 75% of our forecast research and development, and capital expenditures during the period from 2015 to 2020 as set out in a business plan agreed with the EIB. If, upon completion of the “Project” (as defined in the Finance Contract), it is determined that the total principal amount of the loan drawn by the Company exceeds 50% of the total cost of the Project, EIB may cancel the undisbursed portion of the loan and demand prepayment of the loan up to the amount by which the loan, excluding accrued interest, exceeds 50% of the total cost of the Project. The security on the Finance Contract includes a guarantee from the Company on 100% of the outstanding principal, interest, expense, commission, indemnity and other sum owed by Innocoll Pharmaceuticals Limited, together with a fixed charge over all the shares in Innocoll Pharmaceuticals Limited and a floating charge over all the assets of Innocoll Pharmaceuticals Limited. As of March 31, 2017, no violations of the covenants had occurred. As of March 31, 2017, the carrying value of the loan equated the fair value. In connection with the Acquisition, on May 9, 2017, the Company and Innocoll Pharmaceuticals Limited entered into the GP Term Loan Agreement. Pursuant to the GP Term Loan Agreement, upon the agreed upon drawdown date, the Lender will loan the Borrower an aggregate principal amount of up to $10 million. On May 5, 2017, in order to obtain the consent of EIB to enter into the GP Term Loan Agreement, (i) the Company, the Borrower and the EIB entered into the Amendment Agreement and (ii) the Company, the Lender, the Borrower and the EIB entered into an Intercreditor Deed. The Amendment Agreement permits the entry into the GP Term Loan Agreement and modifies certain terms of the Finance Contract, including the maturity date of the Finance Contract under the occurrence of certain events. See Capital Resources and Liquidity for a more complete description of the GP Term Loan and the modifications to the Finance Contract.

Warrants

Warrants	3 Months Ended
	Mar. 31, 2017
Warrants and Rights Note Disclosure [Abstract]
Warrants	Note 10. Warrants The below note includes detail on the warrants as of March 31, 2017 and December 31, 2016 respectively. Number Exercise price Contractual life (years) March 31, 2017 December 31, Outstanding at beginning of period € 83.25 2.45 196,912 196,912 Outstanding at end of period € 83.25 2.21 196,912 196,912 Exercisable at end of period € 83.25 2.21 196,912 196,912 All warrants have been classified as a liability due to certain provisions pursuant to which the exercise price of the warrants may be reduced in the event that the Company issues or sells any of its ordinary shares at a price per share less than the exercise price in effect immediately prior to such issue or sale. On January 1, 2016, Innocoll AG transformed into an Irish incorporated entity Innocoll Holdings plc and pursuant to the terms of an agreement entered into on March 16, 2016 Innocoll Holdings plc assumed all rights and obligations of Innocoll AG, including the warrant liabilities. The fair value is calculated using a recognized valuation methodology for the valuation of financial instruments (Monte Carlo simulation model). The carrying value of warrants was as follows: March 31, December 31, Thousands of Dollars 2017 2016 Liability Fair value at beginning of period $ 854 $ 11,498 Fair value movement on warrants in issue 153 (10,644 ) Fair value at end of period $ 1,007 $ 854 The following input assumptions were used to fair value the warrants: March 31, December 31, 2017 2016 Expected volatility 79.49 % 104.88 % Risk free rate -0.38 % -0.53 % Exercise price € 83.25 € 83.25 Contractual life 2.21 years 2.45 years Stock price on valuation date $ 14.84 $ 9.14

Financial instruments and fair

Financial instruments and fair value measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Financial instruments and fair value measurements	Note 11. Financial instruments and fair value measurements Financial liabilities measured at fair value in the statement of financial position are grouped into three levels of fair value hierarchy. This grouping is determined based on the lowest level of significant inputs used in fair value measurement, as follows: Level 1 -  Level 2 -  Level 3 -  March 31, Level 1 Level 2 Level 3 Liabilities: Interest bearing loans & borrowings $ 30,184 $ - $ - $ 30,184 Warrants 1,007 - - 1,007 $ 31,191 $ - $ - $ 31,191 December 31, Level 1 Level 2 Level 3 Liabilities: Interest bearing loans & borrowings $ 28,948 $ - $ - $ 28,948 Warrants 854 - - 854 $ 29,802 $ - $ - $ 29,802 There have been no transfers between Level 1, Level 2 and Level 3 during the period. As of March 31, 2017 and December 31, 2016, our interest bearing loans and borrowings are recorded at amortized cost with carrying value of $30.2 million and $28.9 million, respectively, and have fair value of $30.2 million and $28.9 million, respectively. As of March 31, 2017, management considers amortized cost to approximate fair value. The fair value of warrants issued by the Company has been estimated using a Monte Carlo simulation model and, in doing so, the Company’s management utilized a third-party valuation report. The Monte Carlo simulation is a generally accepted statistical method used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of the Company’s future expected stock prices and minimizes standard error. The estimated fair value of the liability classified warrants is determined using Level 3 inputs. Inherent in the Monte Carlo valuation model are assumptions related to expected stock-price volatility, the risk-free interest rate, exercise price and expected life of the warrants. The Company estimates the volatility of its common stock based upon a weighted average combining the average implied volatility of its peers, the average most recent 4.45–year weekly volatility of its peer group and the Company’s most recent 1-year weekly historical volatility. A change in any of the inputs included in the Monte Carlo valuation model could result in a variation in the fair value of the warrants included in the financial statements. The carrying amount of the Company’s cash and cash equivalents, trade and other receivables, trade payables and accrued expenses approximate fair value due to the short term maturities of these items.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Note 12. Commitments and Contingencies Legal contingencies We and certain of our officers are subject to two securities class action lawsuits, which may require significant management and board time and attention and significant legal expenses and may result in an unfavorable outcome, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. We and certain of our executive officers have been named as defendants in a securities class action lawsuit initially filed in the United States District Court for the Eastern District of Pennsylvania on January 24, 2017, captioned Anthony Pepicelli v. Innocoll Holdings Public Limited Company, Anthony P. Zook, Jose Carmona and Lesley Russel, civil action no. 2:17-cv-00341-GEKP. We and certain of our executive officers also have been named as defendants in a securities class action lawsuit initially filed in the United States District Court for the Eastern District of Pennsylvania on February 16, 2017, captioned Jianmin Huang v. Innocoll Holdings Public Limited Company, Anthony P. Zook, Jose Carmona and Lesley Russel, civil action no. 2:17-cv-00740-GEKP. The plaintiffs in Pepicelli requested that defendants waive service of process pursuant to federal Rule 4, and defendants have done so. No attempt has been made to serve in Huang and no request for waiver of service has been mailed. All plaintiffs have joined in an unopposed motion to consolidate the two actions and to appoint lead plaintiffs. The motion has not yet been decided. The allegations in both complaints are substantively identical. The complaints in both actions allege that we and certain of our executive officers violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder by making materially false or misleading statements and omissions relating to the development of Xaracoll and/or related requests for regulatory approval. The complaints also allege that the defendant officers violated Section 20(a) of the Exchange Act. While we believe that we have substantial legal and factual defenses to the claims in the class actions and intend to vigorously defend the case, these lawsuits could divert our management’s and board’s attention from other business matters, the outcome of the pending litigation is difficult to predict and quantify, and the defense against the underlying claims will likely be costly. The ultimate resolution of this matter could result in payments of monetary damages or other costs, materially and adversely affect our business, financial condition, results of operations and cash flows, or adversely affect our reputation, and consequently, could negatively impact the price of our ordinary shares. We have insurance policies related to the risks associated with our business, including directors’ and officers’ liability insurance policies. However, there is no assurance that our insurance coverage will be sufficient or that our insurance carriers will cover all claims in that litigation. If we are not successful in our defense of the claims asserted in the putative action and those claims are not covered by insurance or exceed our insurance coverage, we may have to pay damage awards, indemnify our officers from damage awards that may be entered against them and pay the costs and expenses incurred in defense of, or in any settlement of, such claims. In addition, there is the potential for additional shareholder litigation against us, and we could be materially and adversely affected by such matters.

Equity

Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Equity	Note 13. Equity Number Mach 31, 2017 December 31, Authorized number of shares: Ordinary shares at $0.01 nominal value 1,000,000,000 1,000,000,000 Deferred shares at $0.01 nominal value 25,000,000 25,000,000 Deferred shares at €1.00 nominal value 100,000 100,000 1,025,100,000 1,025,100,000 Issued, called up and fully paid number of shares: Ordinary shares at $0.01 nominal value 29,789,934 29,748,239 Deferred shares at €1.00 nominal value 25,000 25,000 29,814,934 29,773,239

Going Concern

Going Concern	3 Months Ended
	Mar. 31, 2017
Going Concern [Abstract]
Going Concern	Note 14. Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company generated net losses of $12.7 million and $23.1 million in the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017, the Company had cash and cash equivalent of $7.2 million. The Company anticipates that expenditures during the next twelve months necessary to advance its current operations, including plans to conduct further studies to enable it to submit a revised NDA for XaraColl and to develop and commercialize CollaGUARD, will be greater than the amount of its current cash and cash equivalents. This assessment is based on current estimates and assumptions regarding clinical programs and business needs. The Company’s working capital requirements could vary depending on a variety of circumstances, including, for example, if it is required to conduct additional tests not currently contemplated. These matters, among others, raise substantial doubt about its ability to continue as a going concern. Based on the foregoing, the Company currently does not have sufficient working capital to meet its needs through the next twelve months, unless it can successfully obtain additional funding through debt, equity or licensing transactions. As discussed in Note 1, Gurnet Point entered into the GP Term Loan with the Company pursuant to which Gurnet Point will provide the Company with a term loan in the aggregate principal amount of up to $10 million which, in management’s opinion, will enable the Company to settle its obligations as they become due and to pursue the submission of a revised NDA for Xaracoll. The Company’s plans to continue as a going concern are currently contingent on its ability to successfully close the Acquisition with Gurnet Point or an alternative transaction with a third party. If the Company does not close the Acquisition or an alternative transaction with a third party on or before December 31, 2017, the Company will be obligated to repay the GP Term Loan on December 31, 2017. In order to repay the GP Term Loan, the Company will be required to first satisfy its obligations to the EIB under the Finance Contract (described in Note 9) unless the Company is able to satisfy the Extension Conditions (described in Note 9), which require that the Company raises, prior to December 15, 2017, at least $25 million through one or more equity financings, shareholder loans or from licensing revenue and has at least $25 million in cash on hand at December 30, 2017. If the Extension Conditions are satisfied, the Company may repay the GP Term Loan on December 30, 2017, prior to the repayment of the obligations under the Finance Contract (which obligations would remain outstanding until their current maturity dates), without such repayment constituting an event of default under the Finance Contract. The Company believes that if it does not close the Acquisition with Gurnet Point or an alternative transaction with a third party on or before December 31, 2017, but the Company is able to achieve the Extension Conditions, the Company will be able to pay its obligations as they become due, and secure a cash runway for XaraColl through its PDUFA date, which the Company expects would be in the latter part of 2018. There is no guarantee that the Company will be able to successfully consummate the Acquisition with Gurnet Point or satisfy the Extension Conditions and there is no guarantee that the proceeds from the GP Term Loan or any funds raised though the satisfaction of the Extension Conditions will enable the Company to satisfy its goals as set forth herein. Our ability to successfully raise sufficient funds through the sale of equity securities or the identification of strategic alliances, when needed, is subject to many risks and uncertainties and even if we are successful, future equity issuances would result in dilution to our existing stockholders. In addition, to the extent that we might seek to raise capital through the identification of strategic alliances, we may be required to license or transfer rights to our technologies to other parties that we might otherwise desire to retain. Innocoll received a Refusal to File (“RTF”) Letter from the FDA in December 2016 pertaining to the Xaracoll NDA initially submitted on October 31, 2016. In the RTF letter, the FDA indicated among other things, that Xaracoll should be characterized as a drug/device combination, which would require that the Company submit additional information. During the Type A meeting, representatives of the FDA, after reviewing information provided by Innocoll to address matters raised in the RTF letter, provided guidance which was confirmed in the formal FDA meeting minutes. The minutes serve as the official record of the FDA response to the Company’s proposal to address certain issues raised in the RTF by conducting an additional short-term pharmacokinetic study and several short-term non-clinical toxicology and biocompatibility studies. Management believes, if adequately financed and successful, such studies may be completed in time for a resubmission of the NDA at the end of 2017.

Subsequent events

Subsequent events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent events	Note 15. Subsequent events There have been no significant post balance sheet events, except as discussed more fully in Note 1, with respect to the proposed transaction with Gurnet Point and Gurnet Bidco, the GP Term Loan and EIB’s entry into the Intercreditor Deed.

Basis of Preparation and Sign22

Basis of Preparation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Preparation	Basis of Preparation These unaudited interim condensed consolidated financial statements include the accounts of Innocoll Holdings plc and its subsidiaries (herein referred to as “we,” “us,” “our,” “Innocoll” or the “Company”) and have been prepared These statements reflect all adjustments, which in the opinion of management, are necessary for fair presentation of the information contained i The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported in the unaudited interim condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Accounting Pronouncements	Accounting Pronouncements Accounting Standard Update (“ASU”) 2014-09 “Revenue from Contracts with Customers.” 1) identify the contract; 2) identify performance obligations; 3) determine the transaction price; 4) allocate the transaction price; and 5) recognize revenue. The ASU will result in enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue arising from contracts with customers. For public business entities, certain not-for-profit entities, and certain employee benefit plans, the effective date for ASC 606 is annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early application is permitted only as of annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. The effective date for all other entities is annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the ASU early, as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply ASC 606 early as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies ASC 606. The company intends to adopt the standard for annual periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company is currently establishing an implementation process to complete an initial assessment as to the impact of the standard on its contract portfolio and to commence implementing the ASU. The Company will select a representative sample of its contracts to review to identify the potential differences that would result from applying the requirements of the new standard and base its initial assessment on this process. Once completed the Company will complete a final assessment of the impact of the ASU and determine whether or not it will have a material impact on the Company’s financial statements and select its method of adoption at that time. The ASU provides detailed disclosure requirements, which are more detailed than under current U.S. GAAP. This will represent a significant change from current practice and significantly increase the volume of disclosures required in the financial statements. The Company expects to complete its impact assessment over the coming months and initiate efforts to redesign impacted processes, policies and controls. ASU 2015-11 “Simplifying the Measurement of Inventory.” ASU 2016-02, “ Leases ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting. ASU 2016-15, “Statement of Cash Flows ASU 2016-18 “Statement of Cash Flows The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations. The planned adoption dates for all standards not yet implemented are based on the Company’s current classification as an Emerging Growth Company. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period as noted in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. If this classification changes, we will re-valuate our timeline for implementing these standards.

Research and development expe23

Research and development expenses (Tables)	3 Months Ended
	Mar. 31, 2017
Research and Development [Abstract]
Schedule of research and development expenses	Three Months Ended March 31, Thousands of Dollars 2017 2016 Employee compensation $ 568 $ 735 External clinical research costs 651 14,020 General operating costs 98 214 Total research and development expenses $ 1,317 $ 14,969

Other expense (Tables)

Other expense (Tables)	3 Months Ended
	Mar. 31, 2017
Other Income and Expenses [Abstract]
Schedule of other expense	Three Months Ended March 31, Thousands of Dollars 2017 2016 Warrant (expense)/income $ (153 ) $ 99 Foreign exchange loss (547 ) (395 ) Other expense - (3 ) Total other expense $ (700 ) $ (299 )

Loss per share (Tables)

Loss per share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of basic and diluted earning per share	Three Months Ended March 31, 2017 2016 Numerator - Thousands of Dollars: Net loss - basic and diluted $ (12,688 ) $ (23,054 ) Denominator - Number of shares: Weighted-average shares outstanding -  basic and diluted 29,758,894 23,661,908 Loss per share: Basic and diluted $ (0.43 ) $ (0.97 )

Trade and other receivables, 26

Trade and other receivables, net (Tables)	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Schedule of trade and other receivables net	Thousands of Dollars March 31, 2017 December 31, 2016 Trade receivables, net $ 636 $ 320 Sales taxes receivable 503 1,030 Total trade and other receivables, net $ 1,139 $ 1,350

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of inventory	Thousands of Dollars March 31, 2017 December 31, 2016 Raw materials $ 973 $ 920 Work in progress 882 1,266 Finished goods 111 217 Total inventories $ 1,966 $ 2,403

Property, plant and equipment28

Property, plant and equipment, net (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of property plant and equipment	Thousands of Dollars March 31, 2017 December 31, 2016 Leasehold improvements $ 11,074 $ 10,752 Plant and machinery 17,204 16,558 Furniture and fittings 3,359 3,253 Property, plant and equipment, gross 31,637 30,563 Less: accumulated depreciation (14,136 ) (13,865 ) Total property, plant and equipment, net $ 17,501 $ 16,698

Income Tax (Tables)

Income Tax (Tables)	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of Deferred tax assets	Thousands of Dollars March 31, 2017 December 31, 2016 Deferred tax assets: $ $ Tax credits and net operating losses 24,477 23,489 Valuation allowances (24,350 ) (23,364 ) Total deferred tax assets $ 127 $ 125

Interest-bearing loans and bo30

Interest-bearing loans and borrowings (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Instruments [Abstract]
Schedule of gross liabilities	Thousands of Dollars Interest Bearing Balance as of December 31, 2016 $ 28,948 Movements during the period 1,236 Balance as of March 31, 2017 $ 30,184
Schedule of reconciliation of gross proceeds to carrying value	Thousands of Dollars March 31, 2017 December 31, 2016 Gross Proceeds $ 27,571 $ 27,571 Accrued interest 3,567 2,779 Foreign exchange fluctuations (954 ) (1,402 ) $ 30,184 $ 28,948

Warrants (Tables)

Warrants (Tables)	3 Months Ended
	Mar. 31, 2017
Warrants and Rights Note Disclosure [Abstract]
Schedule of warrants outstanding	Number Exercise price Contractual life (years) March 31, 2017 December 31, Outstanding at beginning of period € 83.25 2.45 196,912 196,912 Outstanding at end of period € 83.25 2.21 196,912 196,912 Exercisable at end of period € 83.25 2.21 196,912 196,912
Schedule of carrying value of warrants	March 31, December 31, Thousands of Dollars 2017 2016 Liability Fair value at beginning of period $ 854 $ 11,498 Fair value movement on warrants in issue 153 (10,644 ) Fair value at end of period $ 1,007 $ 854
Schedule of assumptions were used to fair value the warrants	March 31, December 31, 2017 2016 Expected volatility 79.49 % 104.88 % Risk free rate -0.38 % -0.53 % Exercise price € 83.25 € 83.25 Contractual life 2.21 years 2.45 years Stock price on valuation date $ 14.84 $ 9.14

Financial instruments and fai32

Financial instruments and fair value measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Financial liabilities measured at fair value	March 31, Level 1 Level 2 Level 3 Liabilities: Interest bearing loans & borrowings $ 30,184 $ - $ - $ 30,184 Warrants 1,007 - - 1,007 $ 31,191 $ - $ - $ 31,191 December 31, Level 1 Level 2 Level 3 Liabilities: Interest bearing loans & borrowings $ 28,948 $ - $ - $ 28,948 Warrants 854 - - 854 $ 29,802 $ - $ - $ 29,802

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of capital units	Number Mach 31, 2017 December 31, Authorized number of shares: Ordinary shares at $0.01 nominal value 1,000,000,000 1,000,000,000 Deferred shares at $0.01 nominal value 25,000,000 25,000,000 Deferred shares at €1.00 nominal value 100,000 100,000 1,025,100,000 1,025,100,000 Issued, called up and fully paid number of shares: Ordinary shares at $0.01 nominal value 29,789,934 29,748,239 Deferred shares at €1.00 nominal value 25,000 25,000 29,814,934 29,773,239

Basis of Preparation and Sign34

Basis of Preparation and Significant Accounting Policies (Detail Textuals) $ / shares in Units, $ in Thousands	May 05, 2017USD ($)	Apr. 04, 2017USD ($)$ / shares	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	May 09, 2017USD ($)$ / shares	Mar. 31, 2017€ / shares	Dec. 31, 2016€ / shares	Dec. 31, 2015€ / shares
Basis Of Preparation And Significant Accounting Policies [Line Items]
Proceeds from equity financing			$ 3	$ 3
Exercise price of warrants (in dollars per share) | € / shares						€ 83.25	€ 83.25	€ 83.25
Senior Secured Lender
Basis Of Preparation And Significant Accounting Policies [Line Items]
Transaction Costs			$ 2,300
Subsequent Event | Senior Secured Lender
Basis Of Preparation And Significant Accounting Policies [Line Items]
Proceeds from equity financing	$ 25,000
Cash on hand	$ 25,000
Gurnet Bidco | Subsequent Event
Basis Of Preparation And Significant Accounting Policies [Line Items]
Share price | $ / shares		$ 1.75
Aggregate value of transaction		$ 209,000
GP term loan					$ 10,000
Warrants to subscribe percentage of outstanding share capital					5.00%
Exercise price of warrants (in dollars per share) | $ / shares					$ 0.01
Gurnet Bidco | CVR | Subsequent Event
Basis Of Preparation And Significant Accounting Policies [Line Items]
Maximum additional payments in cash | $ / shares		$ 4.90

Research and development expe35

Research and development expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Research and Development [Abstract]
Employee compensation	$ 568	$ 735
External clinical research costs	651	14,020
General operating costs	98	214
Total research and development expenses	$ 1,317	$ 14,969

Other expense (Details)

Other expense (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Other Income and Expenses [Abstract]
Warrant (expense)/income	$ (153)	$ 99	$ 10,644
Foreign exchange loss	(547)	(395)
Other expense		(3)
Total other expense	$ (700)	$ (299)

Loss per share (Details)

Loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator-Thousands of Dollars:
Net loss-basic and diluted	$ (12,688)	$ (23,054)
Denominator - Number of shares:
Weighted-average shares outstanding - basic and diluted	29,758,894	23,661,908
Loss per share:
Basic and diluted	$ (0.43)	$ (0.97)

Loss per share (Detail Textuals

Loss per share (Detail Textuals) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Basic and diluted (in dollars per share)	$ (0.43)	$ (0.97)
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted EPS	2,771,369
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted EPS	1,329,000

Trade and other receivables net

Trade and other receivables net (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Trade receivables, net	$ 636	$ 320
Sales taxes receivable	503	1,030
Total trade and other receivables, net	$ 1,139	$ 1,350

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 973	$ 920
Work in progress	882	1,266
Finished goods	111	217
Total inventories	$ 1,966	$ 2,403

Property plant and equipment ne

Property plant and equipment net (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 31,637	$ 30,563
Less: accumulated depreciation	(14,136)	(13,865)
Total property, plant and equipment, net	17,501	16,698
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	11,074	10,752
Plant and machinery
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	17,204	16,558
Furniture and fittings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 3,359	$ 3,253

Property plant and equipment 42

Property plant and equipment net (Detail Textuals) $ in Millions	Mar. 31, 2017USD ($)
Property, Plant and Equipment [Abstract]
Capitalized assets under construction	$ 10.3

Income Tax (Details)

Income Tax (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Tax credits and net operating losses	$ 24,477	$ 23,489
Valuation allowances	(24,350)	(23,364)
Total deferred tax assets	$ 127	$ 125

Income Tax (Detail Textuals)

Income Tax (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Total deferred tax assets	$ 127		$ 125
Income tax (expense)/benefit	(73)	$ 169
United States
Operating Loss Carryforwards [Line Items]
Total deferred tax assets	$ 100

Interest-bearing loans and bo45

Interest-bearing loans and borrowings (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Interest Bearing Loans
Balance as of December 31, 2016	$ 28,948
Movements during the period	1,236
Balance as of March 31, 2017	$ 30,184

Interest-bearing loans and bo46

Interest-bearing loans and borrowings (Details 1) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instruments [Abstract]
Gross Proceeds	$ 27,571	$ 27,571
Accrued interest	3,567	2,779
Foreign exchange fluctuations	(954)	(1,402)
Interest-bearing loans and borrowings carrying value	$ 30,184	$ 28,948

Interest-bearing loans and bo47

Interest-bearing loans and borrowings (Detail Textuals) - USD ($) $ in Millions	1 Months Ended
	Mar. 27, 2017	Mar. 27, 2015	May 09, 2017	Jun. 17, 2016	Dec. 18, 2015
Subsequent Event | Gurnet Bidco
Line of Credit Facility [Line Items]
Loan amount under the Finance Contract			$ 10
European Investment Bank
Line of Credit Facility [Line Items]
Loan amount under the Finance Contract		$ 27.6
Percentage of finance used for research and development		50.00%
Research and development incurrence period		3 years
Amount drawn between fifteen months from date of Finance Contract		$ 16.3
Amounts drawn at any time up to eighteen months		$ 11.3
Loan fixed rate of interest		12.00%
Percentage of prepayment indemnity within one year		1.00%
Percentage of prepayment indemnity within two year		0.75%
Percentage of prepayment indemnity within three years		0.50%
Percentage of prepayment indemnity within four years		0.25%
Percentage of minimum forecast research and development		75.00%
Percentage of undisbursed portion of loan and demand prepayment		50.00%
Percentage of principal amount of loan drawn by Company		50.00%
Loan amount withdrawn, First tranche					$ 16.3
Loan amount withdrawn, Second and final tranche				$ 11.2
Debt guarantee percentage		100.00%
European Investment Bank | Minimum
Line of Credit Facility [Line Items]
Maturity date of each tranche of loan	3 years
European Investment Bank | Maximum
Line of Credit Facility [Line Items]
Maturity date of each tranche of loan	5 years

Warrants (Details)

Warrants (Details) - € / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Class Of Warrant Or Right [Roll Forward]
Outstanding at beginning of period	196,912	196,912
Outstanding at end of period	196,912	196,912
Exercisable at end of period	196,912	196,912
Exercise price outstanding	€ 83.25	€ 83.25
Exercise price outstanding	83.25	83.25
Exercise price exercisable	€ 83.25	€ 83.25
Contractual life (years) outstanding	2 years 2 months 16 days	2 years 5 months 12 days
Exercise price exercisable at end of period	2 years 2 months 16 days

Warrants (Details 1)

Warrants (Details 1) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Liability
Fair value at beginning of period	$ 854	$ 11,498	$ 11,498
Fair value movement on warrants in issue	153	$ (99)	(10,644)
Fair value at end of period	$ 1,007		$ 854

Warrants (Details 2)

Warrants (Details 2) - Warrants	3 Months Ended	12 Months Ended
	Mar. 31, 2017$ / shares	Dec. 31, 2016$ / shares	Mar. 31, 2017€ / shares	Dec. 31, 2016€ / shares
Class of Warrant or Right [Line Items]
Expected volatility	79.49%	104.88%
Risk free rate	(0.38%)	(0.53%)
Exercise price | € / shares			€ 83.25	€ 83.25
Exercise price	2 years 2 months 16 days	2 years 5 months 12 days
Stock price on valuation date | $ / shares	$ 14.84	$ 9.14

Financial instruments and fai51

Financial instruments and fair value measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest bearing loans & borrowings	$ 30,184	$ 28,948
Warrants	1,007	854	$ 11,498
Financial liabilities fair value measurement	31,191	29,802
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest bearing loans & borrowings
Warrants
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest bearing loans & borrowings
Warrants
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest bearing loans & borrowings	30,184	28,948
Warrants	1,007	854
Financial liabilities fair value measurement	$ 31,191	$ 29,802

Financial instruments and fai52

Financial instruments and fair value measurements (Detail Textuals) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Interest bearing loans and borrowings carrying value	$ 30,184	$ 28,948
Interest bearing loans and borrowings fair value	$ 30,200	$ 28,900

Equity (Details)

Equity (Details) - shares	Mar. 31, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Authorized number of shares	1,025,100,000	1,025,100,000
Issued, called up and fully paid number of shares	29,814,934	29,773,239
Ordinary shares
Class of Stock [Line Items]
Authorized number of shares	1,000,000,000	1,000,000,000
Issued, called up and fully paid number of shares	29,789,934	29,748,239
Deferred Shares
Class of Stock [Line Items]
Authorized number of shares	25,000,000	25,000,000
Deferred Shares
Class of Stock [Line Items]
Authorized number of shares	100,000	100,000
Issued, called up and fully paid number of shares	25,000	25,000

Equity (Parenthetical) (Details

Equity (Parenthetical) (Details)	Mar. 31, 2017$ / shares	Mar. 31, 2017€ / shares	Dec. 31, 2016$ / shares
Class of Stock [Line Items]
Nominal value	$ 0		$ 0
Ordinary shares
Class of Stock [Line Items]
Nominal value	0.01
Deferred Shares
Class of Stock [Line Items]
Nominal value	$ 0.01
Deferred Shares
Class of Stock [Line Items]
Nominal value | € / shares		€ 1

Going Concern (Detail Textuals)

Going Concern (Detail Textuals) - USD ($) $ in Thousands	May 05, 2017	Mar. 31, 2017	Mar. 31, 2016	May 09, 2017	Dec. 31, 2016	Dec. 31, 2015
Going Concern [Line Items]
Aggregate principal amount agreed to provide		$ 10,000
Net loss		(12,688)	$ (23,054)
Cash and cash equivalents		7,200	22,743		$ 15,765	$ 42,186
Proceeds from equity financing		$ 3	$ 3
Subsequent Event | Senior Secured Lender
Going Concern [Line Items]
Proceeds from equity financing	$ 25,000
Cash on hand	$ 25,000
Gurnet Bidco | Subsequent Event
Going Concern [Line Items]
GP term loan				$ 10,000