Heron Therapeutics (HRTX) 10-Q6 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	Oct. 29, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'HERON THERAPEUTICS, INC. /DE/	'
Document Type	'10-Q	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	29,180,099
Amendment Flag	'false	'
Entity Central Index Key	'0000818033	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Filer Category	'Accelerated Filer	'
Entity Well-known Seasoned Issuer	'No	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

Condensed_Balance_Sheets_Curre

Condensed Balance Sheets (Current Period Unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$86,212	$72,287
Prepaid expenses and other current assets	3,030	638
Total current assets	89,242	72,925
Property and equipment, net	2,910	2,882
Other long-term assets	130	130
Total assets	92,282	75,937
Current liabilities:	'	'
Accounts payable	1,475	1,264
Accrued clinical liabilities	4,530	1,773
Accrued payroll and employee-related liabilities	2,601	2,566
Other accrued expenses	1,218	364
Convertible notes payable to related parties, net of discount	1,450	1,025
Total current liabilities	11,274	6,992
Stockholdersâ€™ equity:	'	'
Common stock	292	237
Additional paid-in capital	375,329	307,578
Accumulated deficit	-294,613	-238,870
Total stockholdersâ€™ equity	81,008	68,945
Total liabilities and stockholdersâ€™ equity	$92,282	$75,937

Condensed_Statements_of_Operat

Condensed Statements of Operations (Unaudited) (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
Operating expenses:	'	'	'	'
Research and development	$14,731	$6,216	$40,929	$24,162
General and administrative	4,222	6,448	14,137	16,464
Total operating expenses	18,953	12,664	55,066	40,626
Loss from operations	-18,953	-12,664	-55,066	-40,626
Interest and other expense	-241	-209	-677	-614
Net loss	($19,194)	($12,873)	($55,743)	($41,240)
Basic and diluted net loss per share (in Dollars per share)	($0.66)	($0.84)	($2.17)	($2.69)
Shares used in computing basic and diluted net loss per share (in Shares)	29,004	15,375	25,679	15,305

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
Condensed Statements of Cash Flows (Unaudited) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Net loss	($55,743,000)	($41,240,000)
Adjustments to reconcile net loss to net cash used for operating activities:	'	'
Depreciation and amortization	389,000	237,000
Stock-based compensation expense	5,809,000	8,333,000
Amortization of debt discount	425,000	396,000
Changes in operating assets and liabilities:	'	'
Prepaid expenses and other assets	-2,392,000	-202,000
Accounts payable	211,000	514,000
Accrued clinical liabilities	2,757,000	302,000
Accrued payroll and employee-related liabilities	35,000	454,000
Other accrued expenses	1,084,000	70,000
Net cash used for operating activities	-47,425,000	-31,136,000
Investing activities:	'	'
Purchases of property and equipment	-417,000	-1,518,000
Net cash used for investing activities	-417,000	-1,518,000
Financing activities:	'	'
Proceeds from warrant exercises	'	600,000
Proceeds from purchases under the Employee Stock Purchase Plan	19,000	25,000
Proceeds from stock option exercises	2,832,000	1,120,000
Net proceeds from sale of common stock and pre-funded warrants	58,916,000	'
Net cash provided by financing activities	61,767,000	1,745,000
Net increase (decrease) in cash	13,925,000	-30,909,000
Cash at beginning of period	72,287,000	53,506,000
Cash at end of period	$86,212,000	$22,597,000

Note_1_Business

Note 1 - Business	9 Months Ended
Note 1 - Business	Sep. 30, 2014
Disclosure Text Block [Abstract]	'
Business Description and Basis of Presentation [Text Block]	'
	1. Business

	Heron Therapeutics, Inc. (formerly A.P. Pharma, Inc.) (the “Company,” “we,” “us” and “our”) is a biotechnology company using its proprietary technology and innovative efforts to develop products to address unmet medical needs. Our proprietary Biochronomer^® polymer-based drug delivery platform is designed to improve the therapeutic profile of injectable pharmaceuticals by extending the duration of action of known active ingredients. Our product development program also focuses on identifying new delivery methods and formulations utilizing known compounds that may expand or extend the therapeutic effort, or eliminate the drawbacks of current therapies.

	Our lead investigational product candidate, APF530, which we intend to market as SUSTOL^® (granisetron injection, extended release), subject to regulatory approval, is being developed for the prevention of both acute- and delayed-onset chemotherapy induced nausea and vomiting (“CINV”). In 2014, we initiated a Phase 3 clinical study with APF530 for the prevention of delayed-onset CINV in patients receiving highly emetogenic chemotherapy (“HEC study”). One of the most debilitating side effects of cancer chemotherapy, CINV is a leading cause of premature discontinuation of treatment. There is only one injectable 5-HT3 receptor antagonist approved for the prevention of delayed-onset CINV in patients receiving moderately emetogenic chemotherapy; none are approved for delayed-onset CINV in patients receiving highly emetogenic chemotherapy.

	SUSTOL contains the 5-HT3 receptor antagonist granisetron formulated in the Company's proprietary Biochronomer polymer-based drug delivery platform, which has been shown in clinical studies to maintain therapeutic drug levels of SUSTOL for up to five days with a single subcutaneous injection. Currently available intravenous and oral formulations of granisetron are approved only for the prevention of acute-onset CINV. Granisetron was selected for SUSTOL because it is widely prescribed by physicians based on a well-established record of safety and efficacy. We own the worldwide rights to SUSTOL.

	In May 2009, we filed the original New Drug Application (“NDA”) with the U.S. Food and Drug Administration (“FDA”) seeking approval for SUSTOL for the prevention of acute-onset CINV in patients receiving both moderately and highly emetogenic chemotherapy and delayed-onset CINV in patients receiving moderately emetogenic chemotherapy. The FDA issued a Complete Response Letter (“CRL”) for the SUSTOL NDA in March 2010. In September 2012, we resubmitted our NDA for SUSTOL and, in March 2013, we received a second CRL, which identified several remaining issues that need to be addressed prior to approval of the SUSTOL NDA. We believe that we have substantially addressed those issues raised in the March 2013 CRL. We are targeting completing enrollment of our ongoing HEC study in the first quarter of 2015. We intend to include the results of the study in the resubmission of the SUSTOL NDA, which we anticipate filing shortly thereafter.

	Our core Biochronomer technology, on which SUSTOL and our other product candidates are based, consists of bioerodible polymers designed to release drugs over a defined period of time. The results of over 100 in vivo and in vitro studies demonstrate that our Biochronomer technology is potentially applicable to a range of therapeutic areas, including prevention of CINV, pain management and control of inflammation, among others. We have also completed comprehensive animal and human toxicology studies that have established that our Biochronomer polymers are well tolerated. Furthermore, our Biochronomer technology can be designed to deliver drugs over periods varying from days to potentially multiple weeks. We are researching the potential use of our Biochronomer technology with other drugs for the clinical development of other drug candidates.

	In November 2013, we initiated a program to expand our pipeline of sustained-release products, including a new program targeting pain management. We selected HTX-011, a combination of local anesthetic bupivacaine and the anti-inflammatory meloxicam in a formulation utilizing our proprietary Biochronomer polymer-based drug delivery platform, as the lead product candidate for our pain management program. We are in the process of commencing a Phase 1 study in Europe to examine the product candidate in human candidates. As of 2012, approximately 25 million¹ procedures associated with post-operative pain were conducted in the U.S. In addition, post-operative pain market sales were approximately $3.1 billion² in 2012.

	In November 2014, we announced the initiation of a product development program for HTX-019. The investigational product HTX-019 is a proprietary intravenous formulation of aprepitant, a substance P/neurokinin-1 (NK1) receptor antagonist used in combination with a 5-HT3 for the prevention of CINV. HTX-019 does not contain polysorbate 80. By eliminating the use of surfactant polysorbate 80, HTX-019 may reduce the hypersensitivity reactions observed with fosaprepitant formulations containing this component. At present, there is only one intravenous Nk₁ receptor antagonist approved in the U.S. for the prevention of CINV.

	In January 2014, we changed our name from A.P. Pharma, Inc. to Heron Therapeutics, Inc. Effective January 13, 2014, we effected a 1 - for - 20 reverse split of our outstanding common stock (“Reverse Stock Split”) (See Note 5). All historical share and per share amounts have been adjusted to reflect the Reverse Stock Split. All stock options, common stock underlying convertible notes and warrants outstanding were adjusted to give effect to the Reverse Stock Split.

	Liquidity

	We have incurred significant operating losses and negative cash flows from operations and we have an accumulated deficit of $294.6 million as of September 30, 2014. Since 2011, we completed a total of five rounds of equity and/or debt financings, which provided us with cash of approximately $194.3 million, net of issuance costs, to fund operations (see Notes 4 and 5). As of September 30, 2014, we had cash on hand of $86.2 million.

	We believe that our current working capital is sufficient to fund operations into 2015, including pursuing regulatory approval to market SUSTOL, and beginning human clinical studies relative to our HTX-011 and HTX-019 development programs. In the event we were to pursue clinical product development in other areas, potentially acquire other strategic assets, or begin to make significant investments in preparing for commercialization of SUSTOL, we would need to raise additional capital. If we are unable to obtain sufficient financing on acceptable terms or otherwise, we may be required to reduce or defer our activities.

Note_2_Basis_of_Presentation

Note 2 - Basis of Presentation	9 Months Ended
Note 2 - Basis of Presentation	Sep. 30, 2014
Disclosure Text Block [Abstract]	'
Basis of Accounting [Text Block]	'
	2. Basis of Presentation

	The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation 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 other quarters or the year ending December 31, 2014. The condensed balance sheet at December 31, 2013 has been derived from the audited financial statements as of that date, but does not include all of the information and disclosures required by GAAP. The presentation of prior year amounts was reclassified to conform to the current year presentation. For more complete financial information, these unaudited condensed financial statements and the notes thereto should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 filed with the Securities and Exchange Commission (“SEC”) on March 7, 2014.

Note_3_Accounting_Policies

Note 3 - Accounting Policies	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Significant Accounting Policies [Text Block]	'
	3. Accounting Policies

	Use of Estimates

	The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on an ongoing basis, including those related to clinical trial accruals, income taxes and stock-based compensation. We base our estimates on historical experience and on assumptions that we believe to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions.

	Cash

	We had cash of $86.2 million and $72.3 million at September 30, 2014 and December 31, 2013, respectively. We did not hold any cash equivalents or investment securities as of both dates. Our bank accounts have been placed under a control agreement in accordance with the Senior Secured Convertible Notes (see Note 4).

	Earnings Per Share

	Basic earnings per share (“EPS”) is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration of common share equivalents. Diluted EPS is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, warrants and common stock underlying convertible notes are considered to be common stock equivalents and are only included in the calculation of diluted EPS when their effect is dilutive.

	Because we have incurred a net loss for all periods presented in the unaudited condensed statements of operations, outstanding stock options, warrants and common stock underlying convertible notes are not included in the computation of net loss per share because their effect would be anti-dilutive.

	The following table includes the number of outstanding stock options, warrants and common stock underlying convertible notes not included in the computation as of the dates shown below (in thousands):

		As of September 30,
		2014		2013

	Stock options outstanding		6,456		6,270
	Warrants outstanding		4,108		3,969
	Common stock underlying convertible notes outstanding		6,578		6,198

	Comprehensive Income (Loss)

	Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Our comprehensive net loss for all periods presented was comprised solely of our net loss and there were no other changes in equity from non-owner sources.

	Recent Accounting Pronouncements

	In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40) (“ASU 2014-15”). ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial satements are issued (or available to be issued). The amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. We plan to adopt the provisions on ASU 2014-15 in 2016. We do not expect the adoption of this ASU to have a material impact on our results of operations or financial condition.

	In June 2014, FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718) (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The amendments in ASU 2014-12 may either be applied (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earlier annual period presented in the financial statements and to all new or modified awards thereafter. We plan to adopt the provisions of ASU 2014-12 in the first quarter of 2016. We do not expect the adoption of this ASU to have a material impact on our results of operations or financial condition.

	In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). This update provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013, with an option for early adoption. We adopted this guidance in 2014 and it did not have a material impact on our financial condition, results of operations or related financial statement disclosures.

Note_4_Convertible_Notes_to_Re

Note 4 - Convertible Notes to Related Parties	9 Months Ended
Note 4 - Convertible Notes to Related Parties	Sep. 30, 2014
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	4. Convertible Notes to Related Parties

	In April 2011, we entered into a Securities Purchase Agreement for a private placement of up to $4.5 million in Senior Secured Convertible Notes (“Notes”). We received a total of $4.3 million, net of issuance costs, from the issuance of these Notes.

	The Notes are secured by substantially all of our assets, including placing our bank accounts under a control agreement. The Notes bear interest at 6% per annum, payable quarterly in cash or in additional principal amount of Notes, at the election of the purchasers. The Notes mature on May 2, 2021, however, the holders of the Notes may require prepayment of the Notes at any time, at each holder’s option.

	The Notes are convertible into shares of our common stock at a rate of 1,250 shares for every $1,000 of principal and accrued interest due under the Notes. There is no right to convert the Notes to the extent that, after giving effect to such conversion, the holder would beneficially own in excess of 9.99% of our outstanding common stock. Each holder of the Notes can increase or decrease this beneficial ownership conversion limit by written notice to us, which will not be effective until 61 days after delivery of the notice.

	As of September 30, 2014, we were in compliance with all covenants under the Notes. Upon the occurrence of an event of default under the Notes, the holders of the Notes have the right to require us to redeem all or a portion of their Notes.

	We filed a registration statement with the SEC to register for resale 3.5 million shares underlying the Notes. The registration statement was declared effective on July 29, 2011. The Note holders have agreed to waive their right to require us to maintain the effectiveness of the registration statement and to register the additional shares underlying the Notes until they provide notice otherwise.

	The Notes contain an embedded conversion feature that was in-the-money on the issuance dates. Based on an effective fixed conversion rate of 1,250 shares for every $1,000 of principal and accrued interest due under the Notes, the total conversion benefit at issuance exceeded the loan proceeds. Therefore, a debt discount was recorded in an amount equal to the face value of the Notes on the issuance dates and we began amortizing the resultant debt discount over the respective 10-year term of the Notes. During the period ended September 30, 2014, accrued interest of approximately $78,000 was paid-in-kind and rolled into the Note principal balance, which resulted in an additional debt discount of approximately $78,000. For the three months ended September 30, 2014 and 2013, interest expense relating to the stated rate was approximately $79,000 and $74,000, respectively, and interest expense relating to the amortization of the debt discount was approximately $145,000 and $135,000, respectively. For the nine months ended September 30, 2014 and 2013, interest expense relating to the stated rate was approximately $233,000 and $218,000, respectively, and interest expense relating to the amortization of the debt discount was approximately $425,000 and $396,000, respectively.

	As of September 30, 2014, the carrying value of the Notes was approximately $1,450,000, which is comprised of the $5,262,000 principal amount of the Notes outstanding, less debt discount of $3,812,000. If the $5,262,000 principal amount of Notes is converted, we would issue approximately 6,578,000 shares of our common stock.

Note_5_Stockholders_Equity

Note 5 - Stockholders' Equity	9 Months Ended
Note 5 - Stockholders' Equity	Sep. 30, 2014
Stockholders' Equity Note [Abstract]	'
Stockholders' Equity Note Disclosure [Text Block]	'
	5. Stockholders’ Equity

	Amendments to Articles of Incorporation – *Reverse Stock Split*

	Effective January 13, 2014, we amended our Certificate of Incorporation to change our name to Heron Therapeutics, Inc. and to effect a 1 - for - 20 reverse split of our outstanding common stock. The name change and Reverse Stock Split were approved by our stockholders on September 19, 2013. As a result of the Reverse Stock Split, the total authorized shares of common stock were reduced from 1,500,000,000 to 75,000,000 shares.

	2011 Private Placement

	In June 2011, we sold 8.0 million shares of our common stock for net proceeds of $22.8 million (net of approximately $1.2 million in issuance costs). For each share purchased, the investors received one warrant to purchase 0.5 shares of common stock at an exercise price of $3.60 per share. The warrants were immediately exercisable and expire on July 1, 2016. The warrants may be exercised for cash only, or, if a registration statement is not then effective and available for the resale of the shares of common stock issuable upon exercise of the warrants, by surrender of such warrant, or a portion of such warrant, by way of cashless exercise. There is no right to exercise the warrants to the extent that, after giving effect to such exercise the holder would beneficially own in excess of 9.99% of our outstanding shares of common stock or such other limit as may be designated by any particular purchaser. Each holder of the warrants can amend or waive the foregoing limitation by written notice to us, with such waiver taking effect only upon the expiration of a 61-day notice period.

	On July 29, 2011, we filed a registration statement with the SEC to register for resale the shares and the shares of common stock issuable upon the exercise of the warrants. The registration statement was declared effective on August 4, 2011. We are obligated to maintain the effectiveness of the registration statement until the investors are able to sell shares and the shares of common stock underlying the warrants without limitation or restriction under Rule 144 of the Securities Act of 1933, as amended (“Rule 144”). There is currently only one investor who is an affiliate of ours and is therefore not able to sell without limitation under Rule 144, and that investor has agreed to waive its right to require us to maintain the effectiveness of the registration statement until it provides notice otherwise.

	During the nine months ended September 30, 2014, warrant holders exercised 460,706 warrants under the cashless exercise provision in the warrant agreement, which resulted in the net issuance of 303,614 shares of common stock and no net cash proceeds to us. During the nine months ended September 30, 2013, we received $0.6 million for cash exercises of these warrants.

	2012 Private Placement

	In July 2012, we sold approximately 5.1 million shares of our common stock at a purchase price of $10.50 per share, resulting in net proceeds of approximately $50.5 million (net of approximately $3.1 million in issuance costs). On August 24, 2012, we filed a registration statement with the SEC to register these shares for resale. The registration statement was declared effective on September 6, 2012.

	2013 Common Stock Offering

	In November 2013, we sold approximately 8.6 million shares of our common stock at a public offering price of $8.00 per share. We received total net proceeds of approximately $57.8 million (net of approximately $3.9 million in issuance costs). The offering was made pursuant to an effective registration statement, which was previously filed with the SEC and was declared effective.

	2014Common Stock Offering

	In June 2014, we sold approximately 4.8 million shares of our common stock at a public offering price of $11.75 per share. In addition, as a component of the offering, we sold 600,000 pre-funded warrants to purchase shares of our common stock at a public offering price of $11.74 per share. The pre-funded warrants have an exercise price of $0.01 per share and are exercisable for seven years from the date of issuance. We received total net proceeds of approximately $58.9 million (net of approximately $4.0 million in issuance costs) from the sale of the common stock and the pre-funded warrants. The offering was made pursuant to an effective registration statement, which was previously filed with the SEC and was declared effective.

	Stock Option Exercises

	For the nine months ended September 30, 2014, approximately 550,000 shares of common stock were issued pursuant to the exercise of stock options, resulting in proceeds to us of approximately $2.8 million.

	Stock-Based Compensation

	The following table summarizes stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013 related to stock options and Employee Stock Purchase Plan (“ESPP”) purchase rights by expense category (in thousands):

			Three Months Ended								Nine Months Ended
			September 30,								September 30,
			2014				2013				2014		2013

	Research and development		$	715			$	702			$	2,423	$	1,492
	General and administrative			1,045				3,393				3,386		6,841
	Stock-based compensation expense included in operating expenses		$	1,760			$	4,095			$	5,809	$	8,333

	Impact on basic and diluted net loss per share		$	0.06			$	0.27			$	0.23	$	0.54

	As of September 30, 2014, there was approximately $26.8 million of total unrecognized compensation cost related to non-vested, stock-based payment awards granted pursuant to our equity compensation arrangements. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. We expect to recognize this compensation cost over a period of 2.5 years, which is the weighted-average vesting period for all stock-based compensation awards.

	We estimated the fair value of each option grant on the grant date using the Black-Scholes option valuation model with the following weighted-average assumptions:

			September 30,
			2014				2013
	Risk-free interest rate			2	%			1	%
	Dividend yield			0	%			0	%
	Volatility			102.9	%			104.2	%
	Expected life (years)			6				6

	We estimated the fair value of each purchase right granted under the ESPP at the beginning of each new offering period using the Black-Scholes option valuation model. There were no new offering periods for the quarters ended September 30, 2014 and 2013.

	The following table summarizes the stock option activity for the nine months ended September 30, 2014:

											Weighted-
											Average
							Weighted-				Remaining
							Average				Contractual
		Shares				Exercise				Term
		(in thousands)				Price				(Years)
Balance at January 1, 2014			6,356			$	8.22				8.14
Granted			1,631			$	9.95
Exercised			(719	)		$	6.29
Expired and forfeited			(812	)		$	9.82
Balance at September 30, 2014			6,456			$	8.67				8.18

Note_6_Income_Taxes

Note 6 - Income Taxes	9 Months Ended
Note 6 - Income Taxes	Sep. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	6. Income Taxes

	Deferred income tax assets and liabilities are recognized for temporary differences between financial statements and income tax carrying values using tax rates in effect for the years such differences are expected to reverse. Due to uncertainties surrounding our ability to generate future taxable income and consequently realize such deferred income tax assets, a full valuation allowance has been established. We continue to maintain a full valuation allowance against its deferred tax assets as of September 30, 2014.

	The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. There have been no material changes in our unrecognized tax benefits since December 31, 2013 and as such, disclosures included in the Company’s 2013 Annual Report on Form 10-K continue to be relevant for the period ended September 30, 2014.

Accounting_Policies_by_Policy_

Accounting Policies, by Policy (Policies)	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Use of Estimates, Policy [Policy Text Block]	'
	Use of Estimates

	The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on an ongoing basis, including those related to clinical trial accruals, income taxes and stock-based compensation. We base our estimates on historical experience and on assumptions that we believe to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions.
Cash and Cash Equivalents, Policy [Policy Text Block]	'
	Cash

	We had cash of $86.2 million and $72.3 million at September 30, 2014 and December 31, 2013, respectively. We did not hold any cash equivalents or investment securities as of both dates. Our bank accounts have been placed under a control agreement in accordance with the Senior Secured Convertible Notes (see Note 4).
Liquidity Disclosure [Policy Text Block]	'
	We had cash of $86.2 million and $72.3 million at September 30, 2014 and December 31, 2013, respectively.
Earnings Per Share, Policy [Policy Text Block]	'
	Earnings Per Share

	Basic earnings per share (“EPS”) is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration of common share equivalents. Diluted EPS is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, warrants and common stock underlying convertible notes are considered to be common stock equivalents and are only included in the calculation of diluted EPS when their effect is dilutive.

	Because we have incurred a net loss for all periods presented in the unaudited condensed statements of operations, outstanding stock options, warrants and common stock underlying convertible notes are not included in the computation of net loss per share because their effect would be anti-dilutive.

	The following table includes the number of outstanding stock options, warrants and common stock underlying convertible notes not included in the computation as of the dates shown below (in thousands):

		As of September 30,
		2014		2013

	Stock options outstanding		6,456		6,270
	Warrants outstanding		4,108		3,969
	Common stock underlying convertible notes outstanding		6,578		6,198
Comprehensive Income, Policy [Policy Text Block]	'
	Comprehensive Income (Loss)

	Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Our comprehensive net loss for all periods presented was comprised solely of our net loss and there were no other changes in equity from non-owner sources.
New Accounting Pronouncements, Policy [Policy Text Block]	'
	Recent Accounting Pronouncements

	In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40) (“ASU 2014-15”). ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial satements are issued (or available to be issued). The amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. We plan to adopt the provisions on ASU 2014-15 in 2016. We do not expect the adoption of this ASU to have a material impact on our results of operations or financial condition.

	In June 2014, FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718) (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The amendments in ASU 2014-12 may either be applied (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earlier annual period presented in the financial statements and to all new or modified awards thereafter. We plan to adopt the provisions of ASU 2014-12 in the first quarter of 2016. We do not expect the adoption of this ASU to have a material impact on our results of operations or financial condition.

	In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). This update provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013, with an option for early adoption. We adopted this guidance in 2014 and it did not have a material impact on our financial condition, results of operations or related financial statement disclosures.

Note_3_Accounting_Policies_Tab

Note 3 - Accounting Policies (Tables)	9 Months Ended
Note 3 - Accounting Policies (Tables)	Sep. 30, 2014
Accounting Policies [Abstract]	'
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	'
		As of September 30,
		2014		2013

	Stock options outstanding		6,456		6,270
	Warrants outstanding		4,108		3,969
	Common stock underlying convertible notes outstanding		6,578		6,198

Note_5_Stockholders_Equity_Tab

Note 5 - Stockholders' Equity (Tables)	9 Months Ended
Note 5 - Stockholders' Equity (Tables)	Sep. 30, 2014
Note 5 - Stockholders' Equity (Tables) [Line Items]	'
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	'
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014		2013

	Research and development	$	715		$	702		$	2,423	$	1,492
	General and administrative		1,045			3,393			3,386		6,841
	Stock-based compensation expense included in operating expenses	$	1,760		$	4,095		$	5,809	$	8,333

	Impact on basic and diluted net loss per share	$	0.06		$	0.27		$	0.23	$	0.54
Schedule of Share-based Compensation, Activity [Table Text Block]	'
								Weighted-
								Average
					Weighted-			Remaining
					Average			Contractual
		Shares			Exercise			Term
		(in thousands)			Price			(Years)
	Balance at January 1, 2014		6,356		$	8.22			8.14
	Granted		1,631		$	9.95
	Exercised		(719	)	$	6.29
	Expired and forfeited		(812	)	$	9.82
	Balance at September 30, 2014		6,456		$	8.67			8.18
Employee Stock Option [Member]	'
Note 5 - Stockholders' Equity (Tables) [Line Items]	'
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	'
		September 30,
		2014			2013
	Risk-free interest rate		2	%		1	%
	Dividend yield		0	%		0	%
	Volatility		102.9	%		104.2	%
	Expected life (years)		6			6

Note_1_Business_Details

Note 1 - Business (Details) (USD $)	45 Months Ended		0 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Jan. 13, 2014
	Sep. 30, 2014	Dec. 31, 2013	Reverse Stock Split [Member]
Note 1 - Business (Details) [Line Items]	'	'	'
Stockholders' Equity Note, Stock Split, Conversion Ratio	'	'	20
Retained Earnings (Accumulated Deficit)	($294,613,000)	($238,870,000)	'
Proceeds from Issuance of Long-term Debt and Capital Securities, Net	194,300,000	'	'
Cash	$86,212,000	$72,287,000	'

Note_3_Accounting_Policies_Det

Note 3 - Accounting Policies (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Accounting Policies [Abstract]	'	'
Cash	$86,212,000	$72,287,000
Cash Equivalents, at Carrying Value	$0	$0

Note_3_Accounting_Policies_Det1

Note 3 - Accounting Policies (Details) - Equity Excluded From Calculation of Diluted Earnings Per Share	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Equity Option [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Shares excluded	6,456	6,270
Warrant [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Shares excluded	4,108	3,969
Convertible Debt Securities [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Shares excluded	6,578	6,198

Note_4_Convertible_Notes_to_Re1

Note 4 - Convertible Notes to Related Parties (Details) (USD $)

0 Months Ended

3 Months Ended

9 Months Ended

6 Months Ended

1 Months Ended

3 Months Ended

1 Months Ended

Jul. 29, 2011

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Jun. 30, 2014

Sep. 30, 2014

Apr. 30, 2011

Jun. 30, 2011

Sep. 30, 2014

Apr. 30, 2011

In Case of Debt Conversion [Member]

Common Stock [Member]

Notes Payable, Other Payables [Member]

Initial Closing Amount [Member]

Purchase Option [Member]

Principal Amount [Member]

Notes Payable, Other Payables [Member]

Note 4 - Convertible Notes to Related Parties (Details) [Line Items]

Convertible Debt Issuable In Connection With Private Placement1

$4,500,000

Notes Authorized Under Private Placement Initial Closing

4,300,000

Purchase Option Under Private Placement

0.06

Debt Instrument, Maturity Date

2-May-21

Debt Instrument Conversion Ratio, Shares (in Shares)

1,250

Debt Instrument Conversion Ratio, Multiple of Principal

1,000

Beneficial Ownership After Conversion

9.99%

Notice Period Associated with Beneficial Ownership Percentage Limitation, Convertible Notes

'61 days

Common Shares Registered For Resale In Connection With Convertible Notes (in Shares)

3,500,000

Debt Instrument, Unamortized Discount

78,000

3,812,000

Paid-in-Kind Interest

78,000

Interest Expense, Debt, Excluding Amortization

79,000

74,000

233,000

218,000

Amortization of Debt Discount (Premium)

145,000

135,000

425,000

396,000

Carrying Value of Notes Outstanding

1,450,000

1,025,000

1,450,000

Debt Instrument, Face Amount

$5,262,000

Debt Instrument, Convertible, Number of Equity Instruments

6,578,000

Note_5_Stockholders_Equity_Det

Note 5 - Stockholders' Equity (Details) (USD $)

9 Months Ended

1 Months Ended

9 Months Ended

28 Months Ended

1 Months Ended

0 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Jan. 13, 2014

Jun. 30, 2011

Sep. 30, 2014

Sep. 30, 2013

Jun. 30, 2011

Jul. 31, 2012

Jun. 30, 2014

Nov. 30, 2013

Jun. 30, 2014

Jan. 13, 2014

Private Placement 2011 [Member]

Private Placement 2012 [Member]

Pre Funded Warrants [Member]

Common Stock [Member]

Common Stock and Prefunded Warrants [Member]

Scenario, Previously Reported [Member]

Reverse Stock Split [Member]

Common Stock [Member]

Warrant [Member]

Common Stock [Member]

Jefferies LLC [Member]

Note 5 - Stockholders' Equity (Details) [Line Items]

Stockholders' Equity Note, Stock Split, Conversion Ratio

Common Stock, Shares Authorized (in Shares)

75,000,000

1,500,000,000

Stock Issued During Period, Shares, New Issues (in Shares)

8,000,000

303,614

5,100,000

8,600,000

4,800,000

Stock Issued During Period, Value, New Issues

$22,800,000

$50,500,000

Payments of Stock Issuance Costs

1,200,000

3,100,000

3,900,000

4,000,000

Shares Available Per Warrant Exercised (in Shares)

0.5

Exercise Price Arrangement, Warrants To Purchase Shares, Purchase Price Per Unit (in Dollars per Share)

$3.60

Limitation On Exercisable Warrants

9.99%

Proceeds from Issuance of Common Stock

57,800,000

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised (in Shares)

460,706

Proceeds from Warrant Exercises

600,000

Shares Issued, Price Per Share (in Dollars per share)

$10.50

Sale of Stock, Price Per Share (in Dollars per share)

$11.75

Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares)

600,000

Share Price (in Dollars per share)

$11.74

Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)

$0.01

Warrant Term

'7 years

Proceeds from Issuance or Sale of Equity

58,916,000

58,900,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Net (in Shares)

550,000

Proceeds from Stock Options Exercised

2,832,000

1,120,000

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized

$26,800,000

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition

'2 years 6 months

Note_5_Stockholders_Equity_Det1

Note 5 - Stockholders' Equity (Details) - Stock-based Compensation Expense (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
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]	'	'	'	'
Share-based compensation expense	$1,760	$4,095	$5,809	$8,333
Impact on basic and diluted net loss per share (in Dollars per share)	$0.06	$0.27	$0.23	$0.54
Research and Development Expense [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]	'	'	'	'
Share-based compensation expense	715	702	2,423	1,492
General and Administrative Expense [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]	'	'	'	'
Share-based compensation expense	$1,045	$3,393	$3,386	$6,841

Note_5_Stockholders_Equity_Det2

Note 5 - Stockholders' Equity (Details) - Option Valuation Assumptions (Employee Stock Option [Member])	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Employee Stock Option [Member]	'	'
Note 5 - Stockholders' Equity (Details) - Option Valuation Assumptions [Line Items]	'	'
Risk-free interest rate	2.00%	1.00%
Dividend yield	0.00%	0.00%
Volatility	102.90%	104.20%
Expected life (years)	'6 years	'6 years

Note_5_Stockholders_Equity_Det3

Note 5 - Stockholders' Equity (Details) - Option Summary (USD $)	9 Months Ended	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Option Summary [Abstract]	'	'
Shares	'	6,356
Weighted-Average Exercise Price	'	$8.22
Weighted-Average Remaining Contractual Term	'8 years 65 days	'8 years 51 days
Granted	$9.95	'
Granted	1,631	'
Exercised	-719	'
Exercised	$6.29	'
Expired and forfeited	-812	'
Expired and forfeited	$9.82	'
Shares	6,456	'
Weighted-Average Exercise Price	$8.67	'
Weighted-Average Remaining Contractual Term	'8 years 65 days	'8 years 51 days