Insite Vision (INSV) Inactive 10-Q7 Nov 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2014	Nov. 06, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Trading Symbol	'INSV	'
Entity Registrant Name	'INSITE VISION INC	'
Entity Central Index Key	'0000802724	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	131,951,033

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$330	$3,251	[1]
Short-term investments	'	5,000	[1]
Accounts receivable	360	1,026	[1]
Other receivables	'	1,114	[1]
Prepaid expenses and other current assets	126	95	[1]
Debt issuance costs, net	'	2,248	[1]
Total current assets	816	12,734	[1]
Property and equipment, net	1,678	1,431	[1]
Total assets	2,494	14,165	[1]
Current liabilities:	'	'
Accounts payable	891	394	[1]
Accrued liabilities	1,045	2,184	[1]
Accrued compensation and related expense	1,641	1,090	[1]
Accrued royalties	881	776	[1]
Lease incentive, current	186	154	[1]
Warrant liability	1,156	1,685	[1]
Non-recourse accrued interest	'	826	[1]
Non-recourse secured notes payable	'	41,281	[1]
Total current liabilities	5,800	48,390	[1]
Deferred revenues	1,000	7	[1]
Lease incentive	975	922	[1]
Total liabilities	7,775	49,319	[1]
Commitments and contingencies	'	'	[1]
Stockholders' deficit:	'	'
Preferred stock, $0.01 par value, 5,000,000 shares authorized, none issued and outstanding	'	'	[1]
Common stock, $0.01 par value, 240,000,000 shares authorized; 131,951,033 shares issued and outstanding at September 30, 2014 and December 31, 2013	1,320	1,320	[1]
Additional paid-in capital	166,232	165,549	[1]
Accumulated deficit	-172,833	-202,023	[1]
Total stockholders' deficit	-5,281	-35,154	[1]
Total liabilities and stockholders' deficit	$2,494	$14,165	[1]

[1]	Derived from the Company's audited consolidated financial statements as of December 31, 2013.

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value	$0.01	$0.01	[1]
Preferred stock, shares authorized	5,000,000	5,000,000	[1]
Preferred stock, shares issued	0	0	[1]
Preferred stock, shares outstanding	0	0	[1]
Common stock, par value	$0.01	$0.01	[1]
Common stock, shares authorized	240,000,000	240,000,000	[1]
Common stock, shares issued	131,951,033	131,951,033	[1]
Common stock, shares outstanding	131,951,033	131,951,033	[1]

[1]	Derived from the Company's audited consolidated financial statements as of December 31, 2013.

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:	'	'	'	'
Licensing fee	'	'	$6,000	'
Royalties	289	4,750	1,687	14,760
Sale of royalty, net	'	'	'	14,490
Other revenues	71	504	175	504
Total revenues	360	5,254	7,862	29,754
Expenses:	'	'	'	'
Research and development	1,901	2,526	6,983	9,370
General and administrative	1,215	1,279	4,555	4,356
Cost of revenues, principally royalties to third parties	158	130	455	382
Total expenses	3,274	3,935	11,993	14,108
Income (loss) from operations	-2,914	1,319	-4,131	15,646
Gain on extinguishment of debt	'	'	35,999	'
Interest expense and other, net	'	-1,924	-3,207	-6,084
Change in fair value of warrant liability	-365	1,184	529	1,212
Net income (loss)	($3,279)	$579	$29,190	$10,774
Net income (loss) per share:	'	'	'	'
Income (loss) per share-basic	($0.02)	$0	$0.22	$0.08
Income (loss) per share-diluted	($0.02)	$0	$0.22	$0.08
Weighted average shares used in per-share calculation:	'	'	'	'
-Basic	131,951	131,951	131,951	131,951
-Diluted	131,951	132,342	132,379	132,457

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014		Sep. 30, 2013
OPERATING ACTIVITIES:	'		'
Net income	$29,190		$10,774
Adjustments to reconcile net income to net cash used in operating activities:	'		'
Depreciation and amortization	250		80
Amortization of debt issuance costs	185		313
Amortization of lease incentive	-139		'
Gain on extinguishment of debt	-35,999		'
Stock-based compensation	683		699
Change in fair value of warrant liability	-529		-1,212
Changes in operating assets and liabilities:	'		'
Accounts receivable	666		500
Other receivables	1,114		'
Prepaid expenses and other current assets	-31		47
Accounts payable	497		-294
Accrued liabilities	-1,187		-578
Accrued compensation and related expense	551		-77
Accrued royalties	105		-201
Accrued interest	2,003		-155
Deferred revenues	993		'
Net cash provided by (used in) operating activities	-1,648		9,896
INVESTING ACTIVITIES:	'		'
Purchase of property and equipment	-273		-43
Decrease (increase) in short-term investments	5,000		3,999
Net cash provided by investing activities	4,727		3,956
FINANCING ACTIVITIES:	'		'
Payment of secured notes payable	-6,000		-7,752
Net cash used in financing activities	-6,000		-7,752
Net increase (decrease) in cash and cash equivalents	-2,921		6,100
Cash and cash equivalents at beginning of period	3,251	[1]	1,323
Cash and cash equivalents at end of period	330		7,423
Supplemental disclosure of cash flow information:	'		'
Interest received	1		4
Interest paid	1,018		5,929
Income taxes paid	1		1
Non-cash investing activities-Lease incentive	224		'
Non-cash financing activities-Debt extinguishment	$36,047		'

[1]	Derived from the Company's audited consolidated financial statements as of December 31, 2013.

Significant_Accounting_Policie

Significant Accounting Policies and Use of Estimates	9 Months Ended
Significant Accounting Policies and Use of Estimates	Sep. 30, 2014
Accounting Policies [Abstract]	'
Significant Accounting Policies and Use of Estimates	'
	Note 1.	Significant Accounting Policies and Use of Estimates
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements include the accounts of InSite Vision Incorporated (“InSite” or the “Company”) and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the preparation of the condensed consolidated financial statements.
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial results and financial condition have been included. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for any future period.
	The Company operates in one segment using one measure of profitability to manage its business. All of the Company’s long-lived assets are located in the United States. Revenues are primarily royalties from the North American license (the “Akorn License”) of AzaSite to Akorn, Inc. (“Akorn”).
	On June 10, 2014, the Company entered into the Third Amendment to License Agreement (the “Amendment”) with Akorn to amend the Akorn License. Under the Amendment, Akorn paid the Company an amendment fee of $6.0 million in return for a lower royalty on net sales of AzaSite in North America. The $6.0 million was used by the Company to repurchase and cancel the AzaSite Notes (for further discussion, see Note 5). Effective April 1, 2014, for annual net sales of AzaSite, the royalty is (1) 8.0% on net sales less than $20.0 million, subject to increase to 9.0% in the event that Akorn enters into certain settlements with third parties seeking to launch generic versions of AzaSite, (2) 12.5% on net sales greater than or equal to $20.0 million and less than or equal to $50.0 million and (3) 15.0% on net sales in excess of $50.0 million. For annual net sales of AzaSite Xtra, the royalty would be 12.5% on net sales less than $30.0 million and 15.0% on net sales greater than or equal to $30.0 million. The Company waived any right to consent to any settlements regarding AzaSite (for further discussion, see Note 7) and agreed to cooperate to effectuate any such settlement.
	The Amendment further provides that in the event AzaSite Xtra has received regulatory approval and has been commercially launched by Akorn, as to any calendar quarter, Akorn would not be obligated to pay any royalties as to a licensed product in a given country where sales of a generic equivalent of such licensed product occur in such country. Akorn may, at Akorn’s expense, act to acquire and maintain on the Company’s behalf, registrations for certain Company trademarks in North America. In addition, Akorn may, but is not obligated to, pay any maintenance or other fees related to the maintenance of certain patents licensed by the Company to Akorn in the event the Company fails to pay any such fee.
	Historically, the Company has incurred substantial cumulative losses and negative cash flows from operations. Clinical trials and costs to prepare a New Drug Application (“NDA”) for our product candidates with the U.S. Food and Drug Administration (“FDA”) are very expensive and difficult, in part because they are subject to rigorous regulatory requirements. As of September 30, 2014, the Company’s accumulated deficit was $172.8 million and its cash and cash equivalents were $0.3 million. Further, the Company anticipates that its existing cash and cash equivalent balances, together with cash flows from operations, and available debt (for further discussion, see Note 8) will only be adequate to fund its cash requirements through March 2015. Management’s plans include exploring strategic alternatives or raising additional financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects relating to the recoverability and classification of the recorded asset amounts or amounts and classification of liabilities that might result from the outcome of this uncertainty.

	These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
	Use of Estimates
	The preparation of financial statements requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.
	Warrant Liability
	In July 2011, the Company issued warrants to purchase shares of the Company’s common stock in connection with a private placement financing transaction. The Company accounted for these warrants as a liability measured at fair value due to a provision included in the warrant agreements that provides the warrant holders with an option to require the Company (or its successor) to purchase their warrants for cash in the event of a “Fundamental Transaction” (as defined in the warrant agreements). The actual amount of cash required if the mandatory purchase option is exercised would be determined using the Black-Scholes Option Pricing Model (the “Black-Scholes Model”) as determined in accordance with the terms of the warrant agreements. The fair value of the warrant liability is estimated using the Black-Scholes Model, which requires inputs such as the remaining term of the warrants, share price volatility and risk-free interest rate. These assumptions are reviewed on a monthly basis and changes in the estimated fair value of the outstanding warrants are recognized each reporting period in the Condensed Consolidated Statements of Operations under “Change in fair value of warrant liability.”
	Fair Value Measurements
	Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

	Level 1:	Quoted prices in active markets for identical assets or liabilities.

	Level 2:	Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

	Level 3:	Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
	The Company’s financial instruments consist mainly of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities. Accounts receivable and accounts payable are reflected in the accompanying unaudited condensed consolidated financial statements at cost, which approximates fair value due to the short-term nature of these instruments. While the Company believes its valuation methodologies are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.
	At September 30, 2014, $0.2 million of the Company’s cash and cash equivalents consisted of Level 1 U.S. Treasury-backed government securities or money market funds that are measured at fair value on a recurring basis.
	As discussed above, the fair value of the warrant liability, determined using Level 3 criteria, was initially recorded on the grant date and remeasured at September 30, 2014 using the Black-Scholes Model, which requires inputs such as the remaining term of the warrants, share price volatility and risk-free interest rate. These inputs are subjective and generally require significant analysis and judgment to develop. A significant increase (decrease) of any of the subjective variables would result in a correlated increase (decrease) in the warrant liability and an inverse effect on net income (loss).

	The fair value of the warrant liability was estimated using the following assumptions, as determined in accordance with the terms of the warrant agreements, at September 30, 2014 and December 31, 2013:


			September 30,			December 31,
			2014			2013
	Risk-free interest rate			0.6	%		0.8	%
	Remaining term (years)			1.8			2.5
	Expected dividends			0	%		0	%
	Volatility			100	%		100	%
	The expected dividend yield was set at zero because the Company has never paid cash dividends and has no present intention to pay cash dividends. Expected volatility was based on the historical volatility of the Company’s common stock and was equal to the greater of 100% or the 30-day volatility rate. The risk-free interest rates were taken from the Daily Federal Yield Curve Rates as published by the Federal Reserve and represent the yields on actively traded U.S. Treasury securities for a term equal to the remaining term of the warrants.
	The following table provides a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the nine months ended September 30, 2014 (in thousands):


	Balance at December 31, 2013		$	1,685
	Net decrease in fair value of warrant liability on remeasurement			(529	)

	Balance at September 30, 2014		$	1,156

	The net decrease in the estimated fair value of the warrant liability was recognized as income under “Change in fair value of warrant liability” in the Condensed Consolidated Statements of Operations.
	The warrant liability’s exposure to market risk will vary over time depending on interest rates and the Company’s stock price. Although the table above reflects the current estimated fair value of the warrant liability, it does not reflect the gains or losses associated with market exposures, which will depend on actual market conditions during the remaining life of the warrants.
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. The FASB and the International Accounting Standards Board (“IASB”) initiated a joint project to clarify the principles for recognizing revenue and developed a common revenue recognition standard for U.S. generally accepted accounting principles (“GAAP’) and International Financial Reporting Standards (“IFRS”). Under the guidance, an entity should recognize revenue when the entity satisfies a performance obligation within a contract at a determined transaction price. This update is effective for interim and annual reporting periods beginning after December 15, 2016; early adoption is not permitted. The Company does not expect the adoption of this standard will materially impact the Company’s consolidated statement of financial position or results of operations.
	In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements – Going Concern. This standard includes guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the financial statements are issued. If conditions or events raise substantial doubt, the entity must disclose the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, management’s evaluation of those conditions or events, and management’s plans to mitigate the conditions or events. This update is effective for interim and annual reporting periods beginning after December 15, 2016; early adoption is permitted. The Company adopted this standard in the quarter ended September 30, 2014. This standard did not materially impact the Company’s consolidated statement of financial position or results of operations and only resulted in additional disclosure requirements.

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stock-Based Compensation	'
	Note 2.	Stock-Based Compensation
	Equity Incentive Program
	In 2007, the Company’s stockholders approved the Company’s 2007 Performance Incentive Plan (the “2007 Plan”), which provides for grants of options and other equity-based awards to the Company’s employees, directors and consultants. Options granted under this plan, and its predecessor plan, expire 10 years after the date of grant and become exercisable at such times and under such conditions as determined by the Company’s Board of Directors (generally, with 25% vesting after one year and the balance vesting on a daily basis over the next three years of service). Upon termination of the optionee’s service, unvested options terminate and vested options generally expire three months thereafter, if not exercised. Only nonqualified stock options have been granted under these plans to date. On January 1 of each calendar year during the term of the 2007 Plan, the shares of common stock available for issuance under the 2007 Plan will be increased by the lesser of (i) 2% of the total outstanding shares of common stock on December 31 of the preceding calendar year and (ii) 3,000,000 shares. On January 1, 2014, the shares of common stock available for issuance under the 2007 Plan increased by 2,639,020 shares.
	Stock-based Compensation
	The Company’s stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period.
	The effect of recording stock-based compensation for the three and nine months ended September 30, 2014 and 2013 was as follows (in thousands):


			Three months ended						Nine months ended
			September 30,						September 30,
			2014			2013			2014			2013
	Stock-based compensation expense by type of award:
	Employee stock options		$	213		$	218		$	680		$	694
	Scientific Advisory Board stock options			7			3			3			5

	Total stock-based compensation expense		$	220		$	221		$	683		$	699

	Stock-based compensation included in expense line items in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2014 and 2013 was as follows (in thousands):


			Three months ended						Nine months ended
			September 30,						September 30,
			2014			2013			2014			2013
	Research and development		$	82		$	82		$	268		$	249
	General and administrative			138			139			415			450

			$	220		$	221		$	683		$	699

	During the nine months ended September 30, 2014 and 2013, the Company granted options to purchase 2,777,000 and 3,374,374 shares of common stock, respectively, with an estimated total grant date fair value of $555,000 and $752,000, respectively. Based on the Company’s historical experience of option cancellations and estimates of future forfeiture rates, the Company has assumed an annualized forfeiture rate of 10% for its options for all periods disclosed. Accordingly, for the quarters ended September 30, 2014 and 2013, the Company estimated that the stock-based compensation for the awards not expected to vest was $233,000 and $289,000, respectively.

	As of September 30, 2014, unrecorded deferred stock-based compensation balance related to stock options was $1.0 million and will be recognized over an estimated weighted-average amortization period of 2.3 years.
	Valuation assumptions
	The Company estimates the fair value of stock options using a Black-Scholes valuation model using the graded-vesting method with the following weighted-average assumptions:


			Three months ended			Nine months ended
			September 30,			September 30,
	Stock Options		2013			2014			2013
	Risk-free interest rate			1.5	%		1.7	%		0.9	%
	Expected term (years)			5			5			5
	Expected dividends			0	%		0	%		0	%
	Volatility			92.3	%		88.2	%		77.1	%
	The expected dividend yield was set at zero because the Company has never paid cash dividends and has no present intention to pay cash dividends. Expected volatility was based on the historical volatility of the Company’s common stock and the expected moderation in future volatility over the period commensurate with the expected life of the options and other factors. The risk-free interest rates were taken from the Daily Federal Yield Curve Rates as of the grant dates as published by the Federal Reserve and represent the yields on actively traded U.S. Treasury securities for terms equal to the expected term of the options. The expected term calculation was based on the terms utilized by the Company’s peers, observed historical option exercise behavior and forfeitures of options by the Company’s employees. No options were granted during the three months ended September 30, 2014.
	The following is a summary of stock option activity for the indicated periods:


			Number of			Weighted-Average			Weighted-Average			Aggregate
			shares			Exercise Price			Remaining Contractual			Intrinsic Value
									Term (Years)			(in thousands)
	Outstanding at December 31, 2013			17,097,984		$	0.39
	Granted			2,777,000			0.29
	Exercised			—			0
	Forfeited			(108,190	)		0.33
	Expired			(166,899	)		0.62

	Outstanding at September 30, 2014			19,599,895		$	0.37			6.9		$	172


	Options vested and expected to vest at September 30, 2014			19,095,355		$	0.38			6.84		$	171
	Options exercisable at September 30, 2014			13,478,858		$	0.4			6.1		$	126
	At September 30, 2014, the Company had 4,658,463 shares of common stock available for grant or issuance under its 2007 Plan. The weighted average grant date fair value of options granted during the nine months ended September 30, 2014 and 2013 was $0.20 and $0.22 per share, respectively. No options were exercised during the nine months ended September 30, 2014 and 2013.

Net_Income_Loss_per_Share

Net Income (Loss) per Share	9 Months Ended
Net Income (Loss) per Share	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Net Income (Loss) per Share	'
	Note 3.	Net Income (Loss) per Share
	Basic net income (loss) per share has been computed using the weighted-average number of common shares outstanding during the period. Dilutive net income (loss) per share was computed using the sum of the weighted average number of common shares outstanding and the potential number of dilutive common shares outstanding during the period. Potential common shares consist of the shares issuable upon exercise of stock options and warrants. Potentially dilutive securities have been excluded from the computation of diluted net income (loss) per share in 2014 and 2013 as their inclusion would be anti-dilutive. For the three months ended September 30, 2014 and 2013, respectively, 34,391,271 and 30,871,605 options and warrants were excluded from the calculation of diluted net income per share because the effect was anti-dilutive. For the nine months ended September 30, 2014 and 2013, respectively, 33,962,885 and 30,757,165 options and warrants were excluded from the calculation of diluted net income per share because the effect was anti-dilutive.
	The following table sets forth the computation of basic and diluted net income per share:


			Three months ended					Nine months ended
			September 30,					September 30,
	(in thousands, except per share data)		2014			2013		2014		2013
	Numerator:
	Net income (loss)		$	(3,279	)	$	579	$	29,190	$	10,774

	Denominator:
	Weighted-average shares outstanding			131,951			131,951		131,951		131,951
	Effect of dilutive securities:
	Stock options			—			391		428		506

	Weighted-average shares outstanding for diluted loss per share			131,951			132,342		132,379		132,457

	Net income (loss) per share:
	Basic		$	(0.02	)	$	0	$	0.22	$	0.08

	Diluted		$	(0.02	)	$	0	$	0.22	$	0.08

Warrant_Liability

Warrant Liability	9 Months Ended
	Sep. 30, 2014
Text Block [Abstract]	'
Warrant Liability	'
	Note 4.	Warrant Liability
	In July 2011, the Company completed a private placement financing transaction in which it sold shares of its common stock and warrants to purchase shares of its common stock. The Company sold a total of 36,978,440 shares of common stock, at a price of $0.60 per share, and issued warrants to purchase up to 14,791,376 shares of common stock. The warrants are exercisable at $0.75 per share and expire five years from the date of issuance. The private placement resulted in $22.2 million in gross proceeds and approximately $20.4 million in net proceeds to the Company after deducting placement agent fees, legal, accounting and other costs associated with the transaction. The Company used the net proceeds of the transaction to fund clinical trials and for general corporate purposes, including working capital.
	As discussed in Note 1, the warrants issued in July 2011 include a provision that provides the warrant holders with an option to require the Company (or its successor) to purchase the warrants for cash in an amount equal to the Black-Scholes value in the event of a “Fundamental Transaction” (as defined in the warrant agreements). Accordingly, the fair value of the warrants at the issuance date was estimated using the Black-Scholes Model, as determined in accordance with the terms of the warrant agreements, and the Company recorded a warrant liability of $6.4 million in July 2011 and remeasured to $1.7 million and $1.2 million at December 31, 2013 and September 30, 2014, respectively. The Company recorded an increase of $0.4 million and decrease of $0.5 million to the warrant liability for the three and nine months ended September 30, 2014, respectively, which were recognized as expense and income in the Company’s Condensed Consolidated Statement of Operations. Additional disclosures regarding the assumptions used in calculating the fair value of the warrant liability are included in Note 1.

NonRecourse_Secured_Notes_Paya

Non-Recourse Secured Notes Payable	9 Months Ended
	Sep. 30, 2014
Debt Disclosure [Abstract]	'
Non-Recourse Secured Notes Payable	'
	Note 5.	Non-Recourse Secured Notes Payable
	In February 2008, the Company’s wholly-owned subsidiary, Azithromycin Royalty Sub, LLC, (the “Subsidiary”) completed a private placement of $60.0 million in aggregate principal amount of the AzaSite Notes, which were non-convertible, non-recourse promissory notes due in 2019. The annual interest rate on the notes was 16% with interest payable quarterly in arrears. The notes were secured by royalties to be paid to the Company by Akorn from net sales of AzaSite in the United States. The secured notes were non-recourse to InSite Vision Incorporated.
	For the quarters ended December 31, 2013 and March 31, 2014, the Subsidiary received insufficient royalties to make the interest payments in full that were due on the notes. Accordingly, an event of default occurred on May 15, 2014.
	On June 10, 2014, the Subsidiary and the noteholders entered into a Note Purchase Agreement under which the Subsidiary repurchased and cancelled the AzaSite Notes for a single payment of $6.0 million. As a result of the cancellation, the remaining principal on the AzaSite Notes of $41.3 million and accrued interest of $2.8 million was extinguished. In addition, the Subsidiary wrote-off the remaining balance of $2.1 million in debt issuance costs and incurred less than $0.1 million of legal and professional fees. In the Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2014, the unpaid principle of $35.3 million and unpaid interest of $2.8 million less the write-off of debt issuance costs of $2.1 million are included under “Non-cash financing activities – Debt extinguishment.”
	The $6.0 million payment to the noteholders was funded by Akorn in return for a lower royalty on net sales of AzaSite in North America.
	For the nine months ended September 30, 2014, the gain on the extinguishment of debt was $36.0 million and represented basic and diluted net income per share of $0.27.

Common_Stock_Warrants

Common Stock Warrants

9 Months Ended

Sep. 30, 2014

Text Block [Abstract]

Common Stock Warrants

Note 6.

Common Stock Warrants

The following table shows outstanding warrants as of September 30, 2014, all of which were issued in the July 2011 private placement financing transaction. All of the outstanding warrants have cashless exercise provisions in the event the registration statement registering the resale of the shares of common stock issuable upon exercise of the warrants is not effective or the prospectus forming a part of the registration statement is not current. All warrants are exercisable for common stock.

Date Issued

Warrant Shares

Exercise Price

Expiration Date

Potential Proceeds if

Exercised for Cash

July 18, 2011

14,791,376

0.75

July 18, 2016

11,093,532

Legal_Proceedings

Legal Proceedings	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Legal Proceedings	'
	Note 7.	Legal Proceedings
	The Company is subject to various claims and legal actions during the ordinary course of its business.
	In April 2011, the Company received a Notice Letter that Sandoz, Inc. or Sandoz, has filed an Abbreviated New Drug Application, or ANDA, with the FDA seeking marketing approval for a 1% azithromycin ophthalmic solution, or the Sandoz Product, prior to the expiration of the five U.S. patents listed in the Orange Book for AzaSite, which include four of our patents and one patent licensed to us by Pfizer. In the paragraph IV Certification accompanying the Sandoz ANDA filing, Sandoz alleges that the claims of the Orange Book listed patents are invalid, unenforceable and/or will not be infringed upon by the Sandoz Product. On May 26, 2011, we, Merck and Pfizer filed a patent infringement lawsuit against Sandoz and related entities. The plaintiff companies agreed that Merck would take the lead in prosecuting this lawsuit. Before the trial, the patents involved in the litigation were limited to the one Pfizer patent and three of our patents. On October 4, 2013, the United States District Court for the District of New Jersey entered a Final Judgment in favor of us and the other plaintiffs finding all the asserted claims of the patents in the litigation valid and infringed by Sandoz and related entities. The Court Order specified that the effective date of any FDA approval of a Sandoz ANDA for generic 1% azithromycin ophthalmic solution products would be no earlier than the expiration date of the patents in the litigation. On November 4, 2013, Sandoz filed an appeal of this decision to the United States Court of Appeals for the Federal Circuit. On November 15, 2013, Akorn acquired Inspire from Merck, and as such, acquired the rights to AzaSite in North America. Akorn has taken the lead in prosecuting this lawsuit. We and the other plaintiffs intend to vigorously contest any Sandoz assertions that these patents should have been found not infringed, invalid or unenforceable.
	In May 2013, the Company received a Notice Letter that Mylan Pharmaceuticals, Inc. or Mylan, has filed an ANDA with the FDA seeking marketing approval for a 1% azithromycin ophthalmic solution, or the Mylan Product, prior to the expiration of the U.S. patents listed in the Orange Book for AzaSite, which include three of our patents and one patent licensed to us by Pfizer. In the paragraph IV Certification accompanying the Mylan ANDA filing, Mylan alleges that the claims of the Orange Book listed patents are invalid, unenforceable and/or will not be infringed upon by the Mylan Product. On June 14, 2013, we, Merck and Pfizer filed a patent infringement lawsuit against Mylan and a related entity. On November 15, 2013, Akorn acquired Inspire from Merck, and as such, acquired the rights to AzaSite in North America. The plaintiff companies have agreed that Akorn will take the lead in prosecuting this lawsuit. The filing of this lawsuit triggered an automatic stay, or bar, of the FDA’s approval of the ANDA for up to 30 months or until a final district court decision of the infringement lawsuit, whichever comes first. We and the other plaintiffs intend to vigorously enforce our patent rights relating to AzaSite and vigorously contest any Mylan assertions that these patents are invalid or unenforceable.
	On January 3, 2013, certain plaintiffs filed a complaint in circuit court in Fayette County, Kentucky against Bausch & Lomb and the Company alleging that they were injured when treated with the Bausch & Lomb product Besivance following a photorefractive keratectomy. In February 2013, Bausch & Lomb removed the case to the United States District Court for the Eastern District of Kentucky. The Company moved to dismiss for lack of jurisdiction and in January 2014, the plaintiffs filed a response conceding to the Company’s motion to dismiss for lack of personal jurisdiction. On March 7, 2014, the matter was taken off docket by the District Court. The Company subsequently received a complete release of all claims.
	On July 24, 2014, Karin Stiens filed a complaint against Bausch & Lomb, Dr. Lance Ferguson and the Company (Fayette (Kentucky) Circuit Court Civil Action No. 14-CI-2829) alleging that she suffered ophthalmological damage when Dr. Ferguson engaged in off-label use of Besivance in a photorefractive keratectomy procedure as a prophylactic antibiotic. The plaintiff alleges that Bausch & Lomb and the Company negligently tested, marketed and distributed Besivance, and negligently informed medical providers and consumers about Besivance. The complaint contains no facts supporting these general allegations, no facts supporting the plaintiff’s claim of permanent injuries and no allegations asserting Kentucky jurisdiction over the Company. The plaintiff has not pleaded any specific amount in damages nor made any demand. The Company is investigating the plaintiff’s allegations. The Company filed its answer on August 18, 2014.
	There are currently no other claims or legal actions that would have a material adverse impact on our financial position, operations or potential performance.

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	Note 8.	Subsequent Events
	On October 9, 2014, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) to which the Company agreed to sell 12% Senior Secured Notes (the “Notes”) in an aggregate principal amount of up to $15 million and issue warrants to purchase shares of the Company’s common stock. As of November 10, 2014, the purchasers had committed to purchase Notes in an aggregate principal amount of $7.1 million. The Notes have a maturity date of one year from the date of issuance, which may be extended for two years at the option of the Company. The Notes bear interest at a rate of 12%. In the event that the Company extends the maturity date, the interest rate increases to 14%.
	On October 9, 2014, the Company sold and issued Notes to the purchasers in the amount $2.4 million and issued warrants to purchase 2,053,169 shares of Company’s common stock at an exercise price of $0.33 per share. The Company has the right to enter into additional subscriptions with the current purchasers for Notes having an aggregate principal amount up to $4.7 million and issue additional warrants. If additional prospective Note purchasers elect to participate, the Company could borrow a further $7.9 million under the Purchase Agreement.
	Riverbank Capital Securities acted as the placement agent (the “Placement Agent”) for the offering of Notes and warrants pursuant to the Purchase Agreement and received $142,900, a 6% cash commission on the gross proceeds from the sale of the Notes and issuance of the warrants on October 9, 2014. Timothy McInerney, the Chairman of the Board of the Company and a member of the Company’s Board of Directors, is a principal of the Placement Agent and is a purchaser in the offering of Notes and warrants under the same terms as the other purchasers.
	The Company evaluated subsequent events through the date on which the financial statements were issued and determined that there were no other subsequent events that required adjustments or disclosures to the financial statements for the quarter ended September 30, 2014.

Significant_Accounting_Policie1

Significant Accounting Policies and Use of Estimates (Policies)	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements include the accounts of InSite Vision Incorporated (“InSite” or the “Company”) and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the preparation of the condensed consolidated financial statements.
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial results and financial condition have been included. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for any future period.
	The Company operates in one segment using one measure of profitability to manage its business. All of the Company’s long-lived assets are located in the United States. Revenues are primarily royalties from the North American license (the “Akorn License”) of AzaSite to Akorn, Inc. (“Akorn”).
	On June 10, 2014, the Company entered into the Third Amendment to License Agreement (the “Amendment”) with Akorn to amend the Akorn License. Under the Amendment, Akorn paid the Company an amendment fee of $6.0 million in return for a lower royalty on net sales of AzaSite in North America. The $6.0 million was used by the Company to repurchase and cancel the AzaSite Notes (for further discussion, see Note 5). Effective April 1, 2014, for annual net sales of AzaSite, the royalty is (1) 8.0% on net sales less than $20.0 million, subject to increase to 9.0% in the event that Akorn enters into certain settlements with third parties seeking to launch generic versions of AzaSite, (2) 12.5% on net sales greater than or equal to $20.0 million and less than or equal to $50.0 million and (3) 15.0% on net sales in excess of $50.0 million. For annual net sales of AzaSite Xtra, the royalty would be 12.5% on net sales less than $30.0 million and 15.0% on net sales greater than or equal to $30.0 million. The Company waived any right to consent to any settlements regarding AzaSite (for further discussion, see Note 7) and agreed to cooperate to effectuate any such settlement.
	The Amendment further provides that in the event AzaSite Xtra has received regulatory approval and has been commercially launched by Akorn, as to any calendar quarter, Akorn would not be obligated to pay any royalties as to a licensed product in a given country where sales of a generic equivalent of such licensed product occur in such country. Akorn may, at Akorn’s expense, act to acquire and maintain on the Company’s behalf, registrations for certain Company trademarks in North America. In addition, Akorn may, but is not obligated to, pay any maintenance or other fees related to the maintenance of certain patents licensed by the Company to Akorn in the event the Company fails to pay any such fee.
	Historically, the Company has incurred substantial cumulative losses and negative cash flows from operations. Clinical trials and costs to prepare a New Drug Application (“NDA”) for our product candidates with the U.S. Food and Drug Administration (“FDA”) are very expensive and difficult, in part because they are subject to rigorous regulatory requirements. As of September 30, 2014, the Company’s accumulated deficit was $172.8 million and its cash and cash equivalents were $0.3 million. Further, the Company anticipates that its existing cash and cash equivalent balances, together with cash flows from operations, and available debt (for further discussion, see Note 8) will only be adequate to fund its cash requirements through March 2015. Management’s plans include exploring strategic alternatives or raising additional financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects relating to the recoverability and classification of the recorded asset amounts or amounts and classification of liabilities that might result from the outcome of this uncertainty.

	These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.
Warrant Liability	'
	Warrant Liability
	In July 2011, the Company issued warrants to purchase shares of the Company’s common stock in connection with a private placement financing transaction. The Company accounted for these warrants as a liability measured at fair value due to a provision included in the warrant agreements that provides the warrant holders with an option to require the Company (or its successor) to purchase their warrants for cash in the event of a “Fundamental Transaction” (as defined in the warrant agreements). The actual amount of cash required if the mandatory purchase option is exercised would be determined using the Black-Scholes Option Pricing Model (the “Black-Scholes Model”) as determined in accordance with the terms of the warrant agreements. The fair value of the warrant liability is estimated using the Black-Scholes Model, which requires inputs such as the remaining term of the warrants, share price volatility and risk-free interest rate. These assumptions are reviewed on a monthly basis and changes in the estimated fair value of the outstanding warrants are recognized each reporting period in the Condensed Consolidated Statements of Operations under “Change in fair value of warrant liability.”
Fair Value Measurements	'
	Fair Value Measurements
	Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

	Level 1:	Quoted prices in active markets for identical assets or liabilities.

	Level 2:	Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

	Level 3:	Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
	The Company’s financial instruments consist mainly of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities. Accounts receivable and accounts payable are reflected in the accompanying unaudited condensed consolidated financial statements at cost, which approximates fair value due to the short-term nature of these instruments. While the Company believes its valuation methodologies are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.
	At September 30, 2014, $0.2 million of the Company’s cash and cash equivalents consisted of Level 1 U.S. Treasury-backed government securities or money market funds that are measured at fair value on a recurring basis.
	As discussed above, the fair value of the warrant liability, determined using Level 3 criteria, was initially recorded on the grant date and remeasured at September 30, 2014 using the Black-Scholes Model, which requires inputs such as the remaining term of the warrants, share price volatility and risk-free interest rate. These inputs are subjective and generally require significant analysis and judgment to develop. A significant increase (decrease) of any of the subjective variables would result in a correlated increase (decrease) in the warrant liability and an inverse effect on net income (loss).

	The fair value of the warrant liability was estimated using the following assumptions, as determined in accordance with the terms of the warrant agreements, at September 30, 2014 and December 31, 2013:


			September 30,			December 31,
			2014			2013
	Risk-free interest rate			0.6	%		0.8	%
	Remaining term (years)			1.8			2.5
	Expected dividends			0	%		0	%
	Volatility			100	%		100	%
	The expected dividend yield was set at zero because the Company has never paid cash dividends and has no present intention to pay cash dividends. Expected volatility was based on the historical volatility of the Company’s common stock and was equal to the greater of 100% or the 30-day volatility rate. The risk-free interest rates were taken from the Daily Federal Yield Curve Rates as published by the Federal Reserve and represent the yields on actively traded U.S. Treasury securities for a term equal to the remaining term of the warrants.
	The following table provides a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the nine months ended September 30, 2014 (in thousands):


	Balance at December 31, 2013		$	1,685
	Net decrease in fair value of warrant liability on remeasurement			(529	)

	Balance at September 30, 2014		$	1,156

	The net decrease in the estimated fair value of the warrant liability was recognized as income under “Change in fair value of warrant liability” in the Condensed Consolidated Statements of Operations.
	The warrant liability’s exposure to market risk will vary over time depending on interest rates and the Company’s stock price. Although the table above reflects the current estimated fair value of the warrant liability, it does not reflect the gains or losses associated with market exposures, which will depend on actual market conditions during the remaining life of the warrants.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. The FASB and the International Accounting Standards Board (“IASB”) initiated a joint project to clarify the principles for recognizing revenue and developed a common revenue recognition standard for U.S. generally accepted accounting principles (“GAAP’) and International Financial Reporting Standards (“IFRS”). Under the guidance, an entity should recognize revenue when the entity satisfies a performance obligation within a contract at a determined transaction price. This update is effective for interim and annual reporting periods beginning after December 15, 2016; early adoption is not permitted. The Company does not expect the adoption of this standard will materially impact the Company’s consolidated statement of financial position or results of operations.
	In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements – Going Concern. This standard includes guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the financial statements are issued. If conditions or events raise substantial doubt, the entity must disclose the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, management’s evaluation of those conditions or events, and management’s plans to mitigate the conditions or events. This update is effective for interim and annual reporting periods beginning after December 15, 2016; early adoption is permitted. The Company adopted this standard in the quarter ended September 30, 2014. This standard did not materially impact the Company’s consolidated statement of financial position or results of operations and only resulted in additional disclosure requirements.
Net Income (Loss) per Share	'
	Basic net income (loss) per share has been computed using the weighted-average number of common shares outstanding during the period. Dilutive net income (loss) per share was computed using the sum of the weighted average number of common shares outstanding and the potential number of dilutive common shares outstanding during the period. Potential common shares consist of the shares issuable upon exercise of stock options and warrants. Potentially dilutive securities have been excluded from the computation of diluted net income (loss) per share in 2014 and 2013 as their inclusion would be anti-dilutive. For the three months ended September 30, 2014 and 2013, respectively, 34,391,271 and 30,871,605 options and warrants were excluded from the calculation of diluted net income per share because the effect was anti-dilutive. For the nine months ended September 30, 2014 and 2013, respectively, 33,962,885 and 30,757,165 options and warrants were excluded from the calculation of diluted net income per share because the effect was anti-dilutive.

Significant_Accounting_Policie2

Significant Accounting Policies and Use of Estimates (Tables)	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Estimated Fair Value of Warrant Liability	'
	The fair value of the warrant liability was estimated using the following assumptions, as determined in accordance with the terms of the warrant agreements, at September 30, 2014 and December 31, 2013:


		September 30,			December 31,
		2014			2013
	Risk-free interest rate		0.6	%		0.8	%
	Remaining term (years)		1.8			2.5
	Expected dividends		0	%		0	%
	Volatility		100	%		100	%
Changes in Fair Value of Level Three Financial Liabilities	'
	The following table provides a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the nine months ended September 30, 2014 (in thousands):


	Balance at December 31, 2013	$	1,685
	Net decrease in fair value of warrant liability on remeasurement		(529	)

	Balance at September 30, 2014	$	1,156

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stock-Based Compensation	'
	The effect of recording stock-based compensation for the three and nine months ended September 30, 2014 and 2013 was as follows (in thousands):


		Three months ended						Nine months ended
		September 30,						September 30,
		2014			2013			2014			2013
	Stock-based compensation expense by type of award:
	Employee stock options	$	213		$	218		$	680		$	694
	Scientific Advisory Board stock options		7			3			3			5

	Total stock-based compensation expense	$	220		$	221		$	683		$	699

Stock-Based Compensation Expenses	'
	Stock-based compensation included in expense line items in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2014 and 2013 was as follows (in thousands):


		Three months ended						Nine months ended
		September 30,						September 30,
		2014			2013			2014			2013
	Research and development	$	82		$	82		$	268		$	249
	General and administrative		138			139			415			450

		$	220		$	221		$	683		$	699

Weighted-Average Fair Value Assumptions of Stock Options	'
	The Company estimates the fair value of stock options using a Black-Scholes valuation model using the graded-vesting method with the following weighted-average assumptions:


		Three months ended			Nine months ended
		September 30,			September 30,
	Stock Options	2013			2014			2013
	Risk-free interest rate		1.5	%		1.7	%		0.9	%
	Expected term (years)		5			5			5
	Expected dividends		0	%		0	%		0	%
	Volatility		92.3	%		88.2	%		77.1	%
Summary of Stock Option Activity	'
	The following is a summary of stock option activity for the indicated periods:


		Number of			Weighted-Average			Weighted-Average			Aggregate
		shares			Exercise Price			Remaining Contractual			Intrinsic Value
								Term (Years)			(in thousands)
	Outstanding at December 31, 2013		17,097,984		$	0.39
	Granted		2,777,000			0.29
	Exercised		—			0
	Forfeited		(108,190	)		0.33
	Expired		(166,899	)		0.62

	Outstanding at September 30, 2014		19,599,895		$	0.37			6.9		$	172


	Options vested and expected to vest at September 30, 2014		19,095,355		$	0.38			6.84		$	171
	Options exercisable at September 30, 2014		13,478,858		$	0.4			6.1		$	126

Net_Income_Loss_per_Share_Tabl

Net Income (Loss) per Share (Tables)	9 Months Ended
Net Income (Loss) per Share (Tables)	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Computation of Basic and Diluted Net Income per Share	'
	The following table sets forth the computation of basic and diluted net income per share:


		Three months ended					Nine months ended
		September 30,					September 30,
	(in thousands, except per share data)	2014			2013		2014		2013
	Numerator:
	Net income (loss)	$	(3,279	)	$	579	$	29,190	$	10,774

	Denominator:
	Weighted-average shares outstanding		131,951			131,951		131,951		131,951
	Effect of dilutive securities:
	Stock options		—			391		428		506

	Weighted-average shares outstanding for diluted loss per share		131,951			132,342		132,379		132,457

	Net income (loss) per share:
	Basic	$	(0.02	)	$	0	$	0.22	$	0.08

	Diluted	$	(0.02	)	$	0	$	0.22	$	0.08

Common_Stock_Warrants_Tables

Common Stock Warrants (Tables)

9 Months Ended

Sep. 30, 2014

Text Block [Abstract]

Outstanding Common Stock Warrants

Date Issued

Warrant Shares

Exercise Price

Expiration Date

Potential Proceeds if

Exercised for Cash

July 18, 2011

14,791,376

0.75

July 18, 2016

11,093,532

Significant_Accounting_Policie3

Significant Accounting Policies and Use of Estimates - Additional Information (Detail) (USD $)

9 Months Ended

0 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2013

Dec. 31, 2012

Jun. 10, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Segment

Akorn, Inc. [Member]

AzaSite [Member]

AzaSite Xtra [Member]

Level 3 [Member]

Level 1 [Member]

Fair Value on Recurring Basis [Member]

Warrant [Member]

U.S. Treasury-backed Money Market Funds [Member]

Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items]

Number of operating segment

Amendment fee

$6,000,000

Royalty description

'(1) 8.0% on net sales less than $20.0 million, subject to increase to 9.0% in the event that Akorn enters into certain settlements with third parties seeking to launch generic versions of AzaSite, (2) 12.5% on net sales greater than or equal to $20.0 million and less than or equal to $50.0 million and (3) 15.0% on net sales in excess of $50.0 million.

'The royalty would be 12.5% on net sales less than $30.0 million and 15.0% on net sales greater than or equal to $30.0 million.

Accumulated deficit

-172,833,000

-202,023,000

[1]

Cash and cash equivalents

330,000

3,251,000

[1]

7,423,000

1,323,000

Cash and cash equivalents at fair value

200,000

Expected dividend yield on warrant liabilities

0.00%

Cash dividends

Fair value of liabilities, volatility rate description

'Expected volatility was based on the historical volatility of the Company's common stock and was equal to the greater of 100% or the 30-day volatility rate.

Fair value of liabilities, expected volatility rate

100.00%

Fair value of liabilities, duration of volatility rate

'30 days

[1]

Derived from the Company's audited consolidated financial statements as of December 31, 2013.

Significant_Accounting_Policie4

Significant Accounting Policies and Use of Estimates - Estimated Fair Value of Warrant Liability (Detail) (Warrant [Member], Level 3 [Member], Fair Value on Recurring Basis [Member])	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Warrant [Member] \| Level 3 [Member] \| Fair Value on Recurring Basis [Member]	'	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'	'
Risk-free interest rate	0.60%	0.80%
Remaining term (years)	'1 year 9 months 18 days	'2 years 6 months
Expected dividends	0.00%	0.00%
Volatility	100.00%	100.00%

Significant_Accounting_Policie5

Significant Accounting Policies and Use of Estimates - Changes in Fair Value of Level Three Financial Liabilities (Detail) (Warrant [Member], USD $)	3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2014	Jul. 31, 2011
Warrant [Member]	'	'	'
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]	'	'	'
Balance at beginning of period	'	$1,685	$6,400
Net decrease in fair value of warrant liability on remeasurement	400	-529	'
Balance at end of period	$1,156	$1,156	$6,400

StockBased_Compensation_Additi

Stock-Based Compensation - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'	'	'	'
Options granted, Performance Incentive Plan expiration period	'	'	'10 years	'	'
Options vested, Performance Incentive Plan one year in percentage	'	'	25.00%	'	'
Balance options vested in daily basis	'	'	'3 years	'	'
Unvested options terminate and vested options generally expire	'	'	'3 months	'	'
Common stock available for issuance and increased percentage of the total	'	'	2.00%	'	'
Common stock shares available for issuance outstanding	'	'	3,000,000	'	'
Increase in the number of shares of common stock available for issuance	'	'	'	'	2,639,020
Common stock, shares granted options to purchase	0	'	2,777,000	3,374,374	'
Common stock, shares estimated total grant date fair value	'	'	$555,000	$752,000	'
Common stock, shares annualized forfeiture rate	'	'	10.00%	'	'
Stock-based compensation not expected to vest	'	'	233,000	289,000	'
Unrecorded deferred stock-based compensation	$1,000,000	'	$1,000,000	'	'
Recognized estimated weighted-average amortization period	'	'	'2 years 3 months 18 days	'	'
Expected dividend yield	'	0.00%	0.00%	0.00%	'
Common stock, shares available for grant or issuance under 2007 Plan	4,658,463	'	4,658,463	'	'
Weighted average fair value options granted	'	'	$0.20	$0.22	'
Options exercised	'	'	0	0	'

StockBased_Compensation_StockB

Stock-Based Compensation - Stock-Based Compensation (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'	'	'	'
Total stock-based compensation expense	$220	$221	$683	$699
Employee Stock Options [Member]	'	'	'	'
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'	'	'	'
Total stock-based compensation expense	213	218	680	694
Scientific Advisory Board Stock Options [Member]	'	'	'	'
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'	'	'	'
Total stock-based compensation expense	$7	$3	$3	$5

StockBased_Compensation_StockB1

Stock-Based Compensation - Stock-Based Compensation Expenses (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]	'	'	'	'
Total stock-based compensation expense	$220	$221	$683	$699
Research and Development [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]	'	'	'	'
Total stock-based compensation expense	82	82	268	249
General and Administrative [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]	'	'	'	'
Total stock-based compensation expense	$138	$139	$415	$450

StockBased_Compensation_Weight

Stock-Based Compensation - Weighted-Average Fair Value Assumptions of Stock Options (Detail)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'	'
Risk-free interest rate	1.50%	1.70%	0.90%
Expected term (years)	'5 years	'5 years	'5 years
Expected dividends	0.00%	0.00%	0.00%
Volatility	92.30%	88.20%	77.10%

StockBased_Compensation_Summar

Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $)	3 Months Ended	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013
Number of shares	'	'	'
Outstanding at beginning balance	'	17,097,984	'
Granted	0	2,777,000	3,374,374
Exercised	'	0	0
Forfeited	'	-108,190	'
Expired	'	-166,899	'
Outstanding at ending balance	19,599,895	19,599,895	'
Options vested and expected to vest at ending balance	19,095,355	19,095,355	'
Options exercisable at ending balance	13,478,858	13,478,858	'
Weighted-Average Exercise Price	'	'	'
Outstanding at beginning balance	'	$0.39	'
Granted	'	$0.29	'
Exercised	'	$0	'
Forfeited	'	$0.33	'
Expired	'	$0.62	'
Outstanding at ending balance	$0.37	$0.37	'
Options vested and expected to vest at ending balance	$0.38	$0.38	'
Options exercisable at ending balance	$0.40	$0.40	'
Weighted-Average Remaining Contractual Term (Years)	'	'	'
Outstanding at ending balance	'	'6 years 10 months 24 days	'
Options vested and expected to vest at ending balance	'	'6 years 10 months 2 days	'
Options exercisable at ending balance	'	'6 years 1 month 6 days	'
Aggregate Intrinsic Value	'	'	'
Outstanding at ending balance	$172	$172	'
Options vested and expected to vest at ending balance	171	171	'
Options exercisable at ending balance	'	$126	'

Net_Income_Loss_per_Share_Addi

Net Income (Loss) per Share - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]	'	'	'	'
Options and warrants excluded from calculation of diluted net income per share	34,391,271	30,871,605	33,962,885	30,757,165

Net_Income_Loss_per_Share_Comp

Net Income (Loss) per Share - Computation of Basic and Diluted Net Income per Share (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Numerator:	'	'	'	'
Net income (loss)	($3,279)	$579	$29,190	$10,774
Denominator:	'	'	'	'
Weighted-average shares outstanding	131,951	131,951	131,951	131,951
Effect of dilutive securities:	'	'	'	'
Stock options	'	391	428	506
Weighted-average shares outstanding for diluted loss per share	131,951	132,342	132,379	132,457
Net income (loss) per share:	'	'	'	'
Basic	($0.02)	$0	$0.22	$0.08
Diluted	($0.02)	$0	$0.22	$0.08

Warrant_Liability_Additional_I

Warrant Liability - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended	9 Months Ended
Warrant Liability - Additional Information (Detail) (USD $)	Jul. 31, 2011	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013
Class of Warrant or Right [Line Items]	'	'	'	'
Gross proceeds from private placement	$22,200,000	'	'	'
Net proceeds from private placement	20,400,000	'	'	'
Common Stock [Member]	'	'	'	'
Class of Warrant or Right [Line Items]	'	'	'	'
Number of common stock sold	36,978,440	'	'	'
Selling price per share	$0.60	'	'	'
Number of warrants issued to purchase common stock	14,791,376	14,791,376	14,791,376	'
Warrant [Member]	'	'	'	'
Class of Warrant or Right [Line Items]	'	'	'	'
Warrants exercise price	$0.75	$0.75	$0.75	'
Expiration period of warrants	'5 years	'	'	'
Warrant liability	6,400,000	1,156,000	1,156,000	1,685,000
Increase (decrease) in warrant liability	'	$400,000	($529,000)	'

NonRecourse_Secured_Notes_Paya1

Non-Recourse Secured Notes Payable - Additional Information (Detail) (USD $)	0 Months Ended	9 Months Ended		0 Months Ended	9 Months Ended	0 Months Ended	9 Months Ended
	Feb. 29, 2008	Sep. 30, 2014	Feb. 29, 2008	Jun. 10, 2014	Sep. 30, 2014	Jun. 10, 2014	Sep. 30, 2014
				Note Purchase Agreement [Member]	Note Purchase Agreement [Member]	Note Purchase Agreement [Member]	Non-cash financing activities - Debt extinguishment [Member]
						Maximum
Debt Instrument [Line Items]	'	'	'	'	'	'	'
Non-recourse secured notes payable, principal amount	'	'	$60,000,000	'	'	'	'
Non-recourse secured notes payable, maturity year	'2019	'	'	'	'	'	'
Non-recourse secured notes payable, interest rate	'	'	16.00%	'	'	'	'
Non-recourse single payment	'	6,000,000	'	6,000,000	'	'	'
Extinguishment of debt remaining principal amount	'	36,047,000	'	41,300,000	'	'	35,300,000
Extinguishment of accrued interest amount debt	'	'	'	2,800,000	'	'	2,800,000
Debt issuance costs	'	'	'	2,100,000	'	'	2,100,000
Legal and professional fees	'	'	'	'	'	100,000	'
Gain on extinguishment of debt	'	$35,999,000	'	'	$36,000,000	'	'
Gain on extinguishment of debt basic and diluted net income per share	'	'	'	'	$0.27	'	'

Common_Stock_Warrants_Outstand

Common Stock Warrants - Outstanding Common Stock Warrants (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014	Jul. 31, 2011
Warrant [Member]	'	'
Class of Warrant or Right [Line Items]	'	'
Date Issued	18-Jul-11	'
Exercise Price	$0.75	$0.75
Expiration Date	18-Jul-16	'
Potential Proceeds if Exercised for Cash	$11,093,532	'
Common Stock [Member]	'	'
Class of Warrant or Right [Line Items]	'	'
Warrant Shares	14,791,376	14,791,376

Legal_Proceedings_Additional_I

Legal Proceedings - Additional Information (Detail)	Apr. 30, 2011	Jun. 14, 2013	31-May-13	26-May-11	Apr. 30, 2011	31-May-13	26-May-11	Apr. 30, 2011
	Patent	Maximum	Company [Member]	Company [Member]	Company [Member]	Pfizer Inc [Member]	Pfizer Inc [Member]	Pfizer Inc [Member]
			Patent	Patent	Patent	Patent	Patent	Patent
Legal Proceedings [Line Items]	'	'	'	'	'	'	'	'
Number of patents infringed	5	'	3	3	4	1	1	1
Period for filing of lawsuit	'	'30 months	'	'	'	'	'	'

Subsequent_Events_Additional_I

Subsequent Events - Additional Information (Detail) (USD $)	Feb. 29, 2008	Nov. 10, 2014	Oct. 09, 2014	Oct. 09, 2014	Oct. 09, 2014	Oct. 09, 2014	Oct. 09, 2014	Oct. 09, 2014	Oct. 09, 2014	Oct. 09, 2014
		Securities Purchase Agreement	Maximum	Maximum	Maximum	Maximum	Maximum	Maximum	Minimum	Minimum
		Subsequent Events	Securities Purchase Agreement	Securities Purchase Agreement	Securities Purchase Agreement	Securities Purchase Agreement	Securities Purchase Agreement	Securities Purchase Agreement	Securities Purchase Agreement	Securities Purchase Agreement
		Senior Secured Notes	Subsequent Events	Subsequent Events	Subsequent Events	Subsequent Events	Subsequent Events	Subsequent Events	Subsequent Events	Subsequent Events
					Riverbank Capital Securities	Riverbank Capital Securities	Senior Secured Notes	Senior Secured Notes	Senior Secured Notes	Senior Secured Notes
Subsequent Event [Line Items]	'	'	'	'	'	'	'	'	'	'
Debt Instrument Aggregate Principal amount	$60,000,000	$7,100,000	'	'	'	'	'	$15,000,000	'	'
Debt instrument interest rate	16.00%	'	'	'	'	'	'	14.00%	'	12.00%
Debt Instrument maturity period	'	'	'	'	'	'	'2 years	'	'1 year	'
Proceeds from issuance of notes	'	'	2,400,000	'	'	'	'	'	'	'
Warrants exercise price	'	'	'	$0.33	'	'	'	'	'	'
Number of warrants issued to purchase common stock	'	'	'	2,053,169	'	'	'	'	'	'
Additional aggregate principal amount	'	'	'	4,700,000	'	'	'	'	'	'
Additional borrowing capacity amount remaining under purchase agreement	'	'	'	7,900,000	'	'	'	'	'	'
Payments for offering of notes	'	'	'	'	$142,900	'	'	'	'	'
Percentage of commission received upon issue of warrants	'	'	'	'	'	6.00%	'	'	'	'