Heron Therapeutics (HRTX) 10-Q 7 Nov 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 26, 2018
Document Information [Line Items]
Entity Registrant Name	HERON THERAPEUTICS, INC. /DE/
Entity Central Index Key	818,033
Trading Symbol	hrtx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding (in shares)		78,019,031
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 53,934	$ 144,583
Short-term investments	310,866	27,796
Accounts receivable, net	53,633	41,874
Inventory	31,412	10,108
Prepaid expenses and other current assets	10,217	3,702
Total current assets	460,062	228,063
Property and equipment, net	10,581	5,981
Other assets	253	263
Total assets	470,896	234,307
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	9,644	18,769
Accrued clinical liabilities	14,281	26,920
Accrued payroll and employee liabilities	8,457	8,860
Other accrued liabilities	27,368	17,175
Deferred revenue		2,763
Promissory note payable to related party		25,000
Convertible notes payable to related parties, net of discount	4,338	3,684
Total current liabilities	64,088	103,171
Stockholders’ equity:
Common stock	780	646
Additional paid-in capital	1,317,232	913,955
Accumulated other comprehensive loss	(42)	(10)
Accumulated deficit	(911,162)	(783,455)
Total stockholders’ equity	406,808	131,136
Total liabilities and stockholders’ equity	$ 470,896	$ 234,307

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Net product sales	$ 19,786	$ 8,572	$ 48,630	$ 20,714
Operating expenses:
Cost of product sales	7,576	1,051	15,940	3,250
Research and development	30,421	28,844	100,141	90,825
General and administrative	7,288	6,462	20,525	19,389
Sales and marketing	16,281	13,529	44,647	39,918
Total operating expenses	61,566	49,886	181,253	153,382
Loss from operations	(41,780)	(41,314)	(132,623)	(132,668)
Other income (expense), net	3,434	(552)	3,342	(2,326)
Net loss	(38,346)	(41,866)	(129,281)	(134,994)
Other comprehensive income (loss):
Unrealized gains (losses) on short-term investments	(17)	6	(32)	17
Comprehensive loss	$ (38,363)	$ (41,860)	$ (129,313)	$ (134,977)
Basic and diluted net loss per share (in dollars per share)	$ (0.49)	$ (0.77)	$ (1.81)	$ (2.55)
Shares used in computing basic and diluted net loss per share (in shares)	77,811	54,176	71,544	52,846

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating activities:
Net loss	$ (129,281)	$ (134,994)
Adjustments to reconcile net loss to net cash used for operating activities:
Stock-based compensation expense	23,572	23,647
Depreciation and amortization	1,093	1,146
Amortization of debt discount	654	570
(Gain) Loss on disposal of property and equipment	3	(7)
Accretion of discount on short-term investments	(1,920)	(259)
Change in operating assets and liabilities:
Accounts receivable	(11,759)	(26,891)
Prepaid expenses and other current assets	(6,505)	(849)
Inventory	(21,502)	171
Accounts payable	(9,125)	(1,477)
Accrued clinical liabilities	(12,639)	2,310
Accrued payroll and employee liabilities	(403)	(564)
Deferred revenue		4,461
Other accrued liabilities	9,494	9,585
Net cash used for operating activities	(158,318)	(123,151)
Investing activities:
Purchases of short-term investments	(400,382)	(93,776)
Maturities and sales of short-term investments	119,200	123,284
Purchases of property and equipment	(5,696)	(1,419)
Proceeds from the sale of property and equipment		13
Net cash (used for) provided by investing activities	(286,878)	28,102
Financing activities:
Net proceeds from sale of common stock	363,128	163,747
Repayment of promissory note payable to related party	(25,000)	(25,000)
Proceeds from stock option exercises	15,771	7,836
Proceeds from purchases under the Employee Stock Purchase Plan	648	576
Net cash provided by financing activities	354,547	147,159
Net (decrease) increase in cash and cash equivalents	(90,649)	52,110
Cash and cash equivalents at beginning of year	144,583	13,414
Cash and cash equivalents at end of period	53,934	65,524
Supplemental disclosure of cash flow information:
Interest paid	1,183	2,289
Cumulative effect of adoption of new accounting standard	$ 1,574

Note 1 - Business

Note 1 - Business	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	1. We are a commercial-stage biotechnology company focused on improving the lives of patients by developing best-in-class treatments to address some of the most important unmet patient needs. We are developing novel, patient-focused solutions that apply our innovative science and technologies to already-approved pharmacological agents for patients suffering from cancer or pain. On August 9, 2016, first 5 3 ≥5 October 2016. On November 9, 2017, second 1 “NK1” NK1 80 January 2018. HTX- 011, 011 011 five 011 fourth 2017 second 2018. 011. As of September 30, 2018, $364.8 September 30, 2018 one 10

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Basis of Accounting [Text Block]	2 . Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10 10 X. not three nine September 30, 2018 not may December 31, 2018. December 31, 2017 not 10 December 31, 2017, February 27, 2018.

Note 3 - Accounting Policies

Note 3 - Accounting Policies	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Significant Accounting Policies [Text Block]	3 . Accounting Policies Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Heron Therapeutics, Inc. and its wholly-owned subsidiary, Heron Therapeutics, B.V., which was organized in the Netherlands in March 2015. no no no Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Our significant accounting policies that involve significant judgment and estimates include revenue recognition, inventory, accrued clinical liabilities, income taxes and stock-based compensation. Actual results could differ materially from those estimates. Ca sh, Cash Equivalents and Short-t erm Investments Cash and cash equivalents consist of cash and highly liquid investments with contractual maturities of three Short-term investments consist of securities with contractual maturities of greater than three one Our bank and investment accounts have been placed under control agreements in accordance with our Senior Secured Convertible Notes (“Convertible Notes”) and our Subordinated Secured Promissory Note (“Promissory Note”) (see Note 10 Concentration of Credit Risk Cash, cash equivalents and short-term investments are financial instruments that potentially subject us to concentrations of credit risk. We deposit our cash in financial institutions. At times, such deposits may may Our products are distributed in the U.S. through a limited number of specialty distributors and full line wholesalers (collectively, “Customers”) that resell our products to healthcare providers and hospitals, the end users. The following table includes the percentage of net product sales and accounts receivable balances for our three 10% Net Product Sales Accounts Receivable Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As of September 30, 2018 Customer A 23.2 % 42.6 % 45.4 % Customer B 44.1 % 30.6 % 36.1 % Customer C 32.0 % 26.4 % 18.3 % Total 99.3 % 99.6 % 99.8 % Accounts Receivable, Net Accounts receivable are recorded at the invoice amount, net of an allowance for doubtful accounts. The allowance for doubtful accounts reflects accounts receivable balances that are believed to be uncollectible. In estimating the allowance for doubtful accounts, we consider: ( 1 2 3 We offered extended payment terms to our Customers in connection with our product launches of SUSTOL and CINVANTI in October 2016 January 2018, January 2018, September 30, 2018, not As of September 30, 2018, not three nine September 30, 2018, not Inventory Inventory is stated at the lower of cost or estimated net realizable value on a first first may Revenue Recognition In May 2014, No. 2014 09, Revenue from Contracts with Customers 606” 606 606 December 15, 2017, first 2018, 606 2018 606, $1.6 January 1, 2018. $2.9 $1.1 $0.2 7 Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net changes in unrealized gains and losses on available-for-sale securities are included in other comprehensive loss and represent the difference between our net loss and comprehensive loss for all periods presented. Net L oss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration of common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, warrants and shares of common stock underlying Convertible Notes are considered to be common stock equivalents and are included in the calculation of diluted net loss per share only when their effect is dilutive. Because we have incurred a net loss for each of the periods presented in the unaudited condensed consolidated statements of operations and comprehensive loss, the following common stock equivalents were not As of September 30 , 2018 2017 Stock options outstanding 12,300 11,198 Warrants outstanding 640 620 Shares of common stock underlying Convertible Notes outstanding 8,348 7,865 Recent Accounting Pronouncements Recently Adopted In May 2017, No. 2017 09, Compensation – Stock Compensation : Scope of Modification Accounting 2017 09” 2017 09 718. first 2018, 2017 09, not Not In February 2016, No. 2016 02, Leases (Topic 842 2016 02” July 2018, No. 2018 11, Leases (Topic 842 No. 2018 10, Codification Improvements to Topic 842, 2016 02 842.” 842 not twelve twelve 842 December 15, 2018, 2016 02 January 1, 2019, In August 2018, No. 2018 13, Fair Value Measurement (Topic 820 2018 13” 2018 13 December 15, 2019, 2018 13 first 2020,

Note 4 - Fair Value Measurement

Note 4 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Fair Value Disclosures [Text Block]	4. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The FASB Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures ● Level 1 ● Level 2 1 not ● Level 3 no We measure cash, cash equivalents and short-term investments at fair value on a recurring basis. The fair values of such assets were as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Balance at for Identical Observable Unobservable September 30 , Assets Inputs Inputs 201 8 (Level 1) (Level 2) (Level 3) Cash and money market funds $ 37,456 $ 37,456 $ — $ — U.S. treasury bills and government agency obligations 69,598 69,598 — — U.S. corporate debt securities 67,048 — 67,048 — Foreign corporate debt securities 6,993 — 6,993 — U.S. commercial paper 64,253 — 64,253 — Foreign commercial paper 119,452 — 119,452 — Total $ 364,800 $ 107,054 $ 257,746 $ — Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Balance at for Identical Observable Unobservable December 31, Assets Inputs Inputs 201 7 (Level 1) (Level 2) (Level 3) Cash and money market funds $ 95,142 $ 95,142 $ — $ — U.S. corporate debt securities 17,520 — 17,520 — U.S. commercial paper 39,863 — 39,863 — Foreign commercial paper 19,854 — 19,854 — Total $ 172,379 $ 95,142 $ 77,237 $ — We have not three As of September 30, 2018, $16.4 three $310.9 three one December 31, 2017, $49.4 three $27.8 three one September 30, 2018 December 31, 2017 A company may not third not not Financial instruments, including cash, cash equivalents, receivables, inventory, prepaid expenses, other current assets, accounts payable and accrued expenses are carried at cost, which is considered to be representative of their respective fair values because of the short-term maturity of these instruments. Short-term available-for-sale investments are carried at fair value.

Note 5 - Short-term Investments

Note 5 - Short-term Investments	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	5. The following is a summary of our short-term investments (in thousands): September 30, 2018 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. treasury bills and government agency obligations $ 69,602 $ — $ (4 ) $ 69,598 U.S. corporate debt securities 67,084 — (36 ) 67,048 Foreign corporate debt securities 6,995 — (2 ) 6,993 U.S. commercial paper 55,261 — — 55,261 Foreign commercial paper 111,966 — — 111,966 Total $ 310,908 $ — $ (42 ) $ 310,866 D ecember 31, 2017 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. corporate debt securities $ 13,003 $ — $ (10 ) $ 12,993 U.S. commercial paper 4,929 — — 4,929 Foreign commercial paper 9,874 — — 9,874 Total $ 27,806 $ — $ (10 ) $ 27,796 The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. We regularly monitor and evaluate the realizable value of our marketable securities. We did not three nine September 30, 2018 2017. Realized gains and losses associated with our investments, if any, are reported in the statements of operations and comprehensive loss. We did not three nine September 30, 2018 2017.

Note 6 - Inventory

Note 6 - Inventory	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Inventory Disclosure [Text Block]	6. Inventory consists of the following (in thousands): September 30, 2018 December 31, 2017 Raw materials $ 9,437 $ 2,754 Work in process 13,203 4,166 Finished goods 8,772 3,188 Total inventory $ 31,412 $ 10,108 Prior to FDA approval, $1.4 March 31, 2018,

Note 7 - Revenue Recognition

Note 7 - Revenue Recognition	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	7 . Revenue Recognition Product Sales SUSTOL is distributed in the U.S. through a limited number of Customers that resell SUSTOL to healthcare providers, the end users of SUSTOL, and CINVANTI is distributed in the U.S. through a limited number of Customers that resell CINVANTI to healthcare providers and hospitals, the end users of CINVANTI. Adoption of Topic 606 On January 1, 2018, 606 not January 1, 2018. January 1, 2018 606, not 605, Revenue Recognition 605” 606, 606, 605 606 Revenue is recognized in an amount that reflects the consideration we expect to receive in exchange for our products. To determine revenue recognition for contracts with customers within the scope of Topic 606, five The following table shows the reconciliation of assets and liabilities disclosed in our Annual Report on Form 10 December 31, 2017, 606 January 1, 2018 ( As Reported U nder Topic 605 Effect of Change As Adjusted U nder Topic 606 Inventory $ 10,108 $ (198 ) $ 9,910 Other accrued liabilities 17,175 991 18,166 Deferred revenue 2,763 (2,763 ) — Retained earnings (783,455 ) 1,574 (781,881 ) The following table shows the unaudited condensed consolidated financial statement line items as if revenue from contracts with customers had been accounted for under Topic 605 As R eported U nder Topic 606 Effect of Change As Revised Under Topic 605 Consolidated Balance Sheet as of September 30, 2018 Inventory $ 31,412 $ 1,954 $ 33,366 Other accrued liabilities 27,368 (4,628 ) 22,740 Deferred revenue — 10,524 10,524 Retained earnings (911,162 ) (3,942 ) (915,104 ) Consolidated Statement of Operations for the Three Months Ended September 30, 2018 Net product sales $ 19,786 $ 177 $ 19,963 Cost of product sales 7,576 (328 ) 7,248 Loss from operations (41,780 ) 505 (41,275 ) Net loss (38,346 ) 505 (37,841 ) Basic and diluted net loss per share (0.49 ) — (0.49 ) Consolidated Statement of Operations for the Nine Months Ended September 30, 2018 Net product sales $ 48,630 $ (4,124 ) $ 44,506 Cost of product sales 15,940 (1,756 ) 14,184 Loss from operations (132,623 ) (2,368 ) (134,991 ) Net loss (129,281 ) (2,368 ) (131,649 ) Basic and diluted net loss per share (1.81 ) (0.03 ) (1.84 ) Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2018 Net loss $ (129,281 ) $ (2,368 ) $ (131,649 ) Adjustments to reconcile net loss to net cash used in operating activities: Inventory (21,502 ) (1,756 ) (23,258 ) Other accrued liabilities 9,494 (3,637 ) (5,857 ) Deferred revenue — 7,761 7,761 Product Sales Allowances We recognize product sales allowances as a reduction of product sales in the same period the related revenue is recognized. Product sales allowances are based on amounts owed or to be claimed on the related sales. These estimates take into consideration the terms of our agreements with Customers, historical product returns, rebates or discounts taken, the shelf life of the product and specific known market events, such as competitive pricing and new product introductions. If actual future results vary from our estimates, we may ● Product Returns — We allow our Customers to return product for credit 12 may ● Distributor Fees — We offer contractually determined discounts to our Customers. These discounts are paid no two ● Group Purchasing Organization (“GPO”) Discounts and Rebates — We offer cash discounts to GPO members. These discounts are taken when the GPO members purchase SUSTOL or CINVANTI from our Customers, who then charge back to us the discount amount. Additionally, we offer volume and contract-tier rebates to GPO members. Rebates are based on actual purchase levels during the quarterly rebate purchase period. ● GPO Administrative Fees — We pay administrative fees to GPOs for services and access to data. These fees are based on contracted terms and are paid after the quarter in which the product was purchased by the GPO’s members. ● Medicaid Rebates — We participate in Medicaid rebate programs, which provide assistance to certain low-income patients based on each individual state’s guidelines regarding eligibility and services. Under the Medicaid rebate programs, we pay a rebate to each participating state, generally within three We believe our estimated allowance for product returns requires a high degree of judgment and is subject to change based on our experience and certain quantitative and qualitative factors. We believe our estimated allowances for distributor fees, GPO discounts, rebates and administrative fees and Medicaid rebates do not Our product sales allowances and related accruals are evaluated each reporting period and adjusted when trends or significant events indicate that a change in estimate is appropriate. Changes in sales allowance estimates could materially affect our results of operations and financial position. The following table provides a summary of activity with respect to our product returns, distributor fees and discounts, rebates and administrative fees for the nine September 30, 2018, Product Returns Distributor Fees Discounts, Rebates and Administrative Fees Total Balance at December 31, 2017 $ 521 $ 580 $ 8,218 $ 9,319 Provision 178 4,342 33,764 38,284 Payments/credits (18 ) (3,145 ) (25,619 ) (28,782 ) Balance at September 30, 2018 $ 681 $ 1,777 $ 16,363 $ 18,821

Note 8 - Leases

Note 8 - Leases	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Leases of Lessee Disclosure [Text Block]	8. On May 8, 2018, AP3 SD1 October 18, 2016, March 15, 2017 4242 87 $0.9 first 12 $1.4 three $0.1 The following table shows the annual future minimum lease payments under all of our operating leases as of September 30, 2018 ( Period ending September 30: 2019 $ 3,335 2020 2,702 2021 2,781 2022 2,862 2023 2,946 Thereafter 4,026 Total future minimum lease payments $ 18,652

Note 9 - Realignment of Goals a

Note 9 - Realignment of Goals and Objectives and New Development Focus	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Restructuring and Related Activities Disclosure [Text Block]	9. Following the approval of SUSTOL and consistent with our transition into a commercial-stage biotechnology company, we realigned our goals and objectives and refocused our development efforts to the area of postoperative pain management. On September 30, 2016, three one The total expense for these activities was $9.6 $5.7 $3.9 September 30, 2016 December 31, 2017. We expect to make the final payment resulting from the realignment of our goals and objectives and new development focus in the first 2019. September 30, 2018, $5.5 $5.7 In March 2018, first 2018, $0.5 We have accounted for these expenses in accordance with ASC Topic 420, Exit or Disposal Cost Obligations

Note 10 - Secured Notes to Rela

Note 10 - Secured Notes to Related Party	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Debt Disclosure [Text Block]	10. Convertible Notes In April 2011, $4.5 no $4.3 The Convertible Notes are secured by substantially all of our assets, including placing our bank and investment accounts under a control agreement. The Convertible Notes bear interest at a rate of 6% May 2, 2021; may The Convertible Notes are convertible into shares of our common stock at a rate of 1,250 $1,000 no 9.99% not 61 As of September 30, 2018, In 2011, 3.5 July 29, 2011. The Convertible 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 $1,000 10 nine September 30, 2018, $0.3 $0.3 three September 30, 2018 2017, $0.1 $0.2 nine September 30, 2018 2017, $0.3 $0.6 As of September 30, 2018, $4.3 $6.6 $2.3 September 30, 2018, 8.3 Promissory Note In August 2016, $100.0 two 8% first $50.0 August 5, 2016. second $50.0 not no no no second no For the three nine September 30, 2018, $0.2 $1.2 $0.5 $2.3 2017, August 2018, $25.0 $0.2 September 30, 2018, no

Note 11 - Stockholders' Equity

Note 11 - Stockholders' Equity	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	11. Common Stock Offering s In January 2017, 14.1 $12.20 $163.7 $8.8 In December 2017, 9.7 $15.50 $142.6 $7.4 In April 2018, 6.9 $26.00 $168.7 $10.7 In June 2018, 5.1 $39.50 $194.4 $5.6 Stock Option Activity The following table summarizes the stock option activity for the nine September 30, 2018: Weighted- a verage Weighted- Remaining a verage Contractual Shares Exercise Term (in thousands) Price (Years) Balance at December 31, 2017 13,463 $ 15.03 8.01 Granted 725 $ 32.42 Exercised (1,332 ) $ 11.84 Expired and forfeited (556 ) $ 17.94 Balance at September 30, 2018 12,300 $ 16.27 7.50 For the nine September 30, 2018, 1,332,000 $15.8 Stock-based Compensation The following table summarizes stock-based compensation expense related to stock-based payment awards granted pursuant to all of our equity compensation arrangements (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Research and development $ 3,212 $ 2,595 $ 9,363 $ 8,758 General and administrative 2,366 2,419 6,950 7,345 Sales and marketing 2,472 2,462 7,259 7,544 Total stock-based compensation expense $ 8,050 $ 7,476 $ 23,572 $ 23,647 As of September 30, 2018, $73.8 2.5 We estimated the fair value of each option grant on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions: September 30 , 20 18 20 17 Risk-free interest rate 2.8 % 2.0 % Dividend yield 0.0 % 0.0 % Volatility 70.5 % 80.2 % Expected life (years) 6 6 We estimated the fair value of each purchase right granted under our 1997 no three September 30, 2018 2017.

Note 12 - Income Taxes

Note 12 - Income Taxes	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	1 2 . 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 our deferred tax assets as of September 30, 2018. 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 not 2017, 2016 09, $3.6 10 December 31, 2017, February 27, 2018, three nine September 30, 2018.

Note 13 - Other Income (Expense

Note 13 - Other Income (Expense), Net	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Other Nonoperating Income and Expense [Text Block]	13. Other Income (Expense), Net In the third 2018, $1.9 16 1934.

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Heron Therapeutics, Inc. and its wholly-owned subsidiary, Heron Therapeutics, B.V., which was organized in the Netherlands in March 2015. no no no
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Our significant accounting policies that involve significant judgment and estimates include revenue recognition, inventory, accrued clinical liabilities, income taxes and stock-based compensation. Actual results could differ materially from those estimates.
Cash, Cash Equivalents, and Short-Term Investments [Policy Text Block]	Ca sh, Cash Equivalents and Short-t erm Investments Cash and cash equivalents consist of cash and highly liquid investments with contractual maturities of three Short-term investments consist of securities with contractual maturities of greater than three one Our bank and investment accounts have been placed under control agreements in accordance with our Senior Secured Convertible Notes (“Convertible Notes”) and our Subordinated Secured Promissory Note (“Promissory Note”) (see Note 10
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk Cash, cash equivalents and short-term investments are financial instruments that potentially subject us to concentrations of credit risk. We deposit our cash in financial institutions. At times, such deposits may may Our products are distributed in the U.S. through a limited number of specialty distributors and full line wholesalers (collectively, “Customers”) that resell our products to healthcare providers and hospitals, the end users. The following table includes the percentage of net product sales and accounts receivable balances for our three 10% Net Product Sales Accounts Receivable Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As of September 30, 2018 Customer A 23.2 % 42.6 % 45.4 % Customer B 44.1 % 30.6 % 36.1 % Customer C 32.0 % 26.4 % 18.3 % Total 99.3 % 99.6 % 99.8 %
Receivables, Policy [Policy Text Block]	Accounts Receivable, Net Accounts receivable are recorded at the invoice amount, net of an allowance for doubtful accounts. The allowance for doubtful accounts reflects accounts receivable balances that are believed to be uncollectible. In estimating the allowance for doubtful accounts, we consider: ( 1 2 3 We offered extended payment terms to our Customers in connection with our product launches of SUSTOL and CINVANTI in October 2016 January 2018, January 2018, September 30, 2018, not As of September 30, 2018, not three nine September 30, 2018, not
Inventory, Policy [Policy Text Block]	Inventory Inventory is stated at the lower of cost or estimated net realizable value on a first first may
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition In May 2014, No. 2014 09, Revenue from Contracts with Customers 606” 606 606 December 15, 2017, first 2018, 606 2018 606, $1.6 January 1, 2018. $2.9 $1.1 $0.2 7
Comprehensive Income, Policy [Policy Text Block]	Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net changes in unrealized gains and losses on available-for-sale securities are included in other comprehensive loss and represent the difference between our net loss and comprehensive loss for all periods presented.
Earnings Per Share, Policy [Policy Text Block]	Net L oss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration of common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, warrants and shares of common stock underlying Convertible Notes are considered to be common stock equivalents and are included in the calculation of diluted net loss per share only when their effect is dilutive. Because we have incurred a net loss for each of the periods presented in the unaudited condensed consolidated statements of operations and comprehensive loss, the following common stock equivalents were not As of September 30 , 2018 2017 Stock options outstanding 12,300 11,198 Warrants outstanding 640 620 Shares of common stock underlying Convertible Notes outstanding 8,348 7,865
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements Recently Adopted In May 2017, No. 2017 09, Compensation – Stock Compensation : Scope of Modification Accounting 2017 09” 2017 09 718. first 2018, 2017 09, not Not In February 2016, No. 2016 02, Leases (Topic 842 2016 02” July 2018, No. 2018 11, Leases (Topic 842 No. 2018 10, Codification Improvements to Topic 842, 2016 02 842.” 842 not twelve twelve 842 December 15, 2018, 2016 02 January 1, 2019, In August 2018, No. 2018 13, Fair Value Measurement (Topic 820 2018 13” 2018 13 December 15, 2019, 2018 13 first 2020,

Note 3 - Accounting Policies (T

Note 3 - Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	Net Product Sales Accounts Receivable Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As of September 30, 2018 Customer A 23.2 % 42.6 % 45.4 % Customer B 44.1 % 30.6 % 36.1 % Customer C 32.0 % 26.4 % 18.3 % Total 99.3 % 99.6 % 99.8 %
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	As of September 30 , 2018 2017 Stock options outstanding 12,300 11,198 Warrants outstanding 640 620 Shares of common stock underlying Convertible Notes outstanding 8,348 7,865

Note 4 - Fair Value Measureme_2

Note 4 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Balance at for Identical Observable Unobservable September 30 , Assets Inputs Inputs 201 8 (Level 1) (Level 2) (Level 3) Cash and money market funds $ 37,456 $ 37,456 $ — $ — U.S. treasury bills and government agency obligations 69,598 69,598 — — U.S. corporate debt securities 67,048 — 67,048 — Foreign corporate debt securities 6,993 — 6,993 — U.S. commercial paper 64,253 — 64,253 — Foreign commercial paper 119,452 — 119,452 — Total $ 364,800 $ 107,054 $ 257,746 $ — Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant Balance at for Identical Observable Unobservable December 31, Assets Inputs Inputs 201 7 (Level 1) (Level 2) (Level 3) Cash and money market funds $ 95,142 $ 95,142 $ — $ — U.S. corporate debt securities 17,520 — 17,520 — U.S. commercial paper 39,863 — 39,863 — Foreign commercial paper 19,854 — 19,854 — Total $ 172,379 $ 95,142 $ 77,237 $ —

Note 5 - Short-term Investmen_2

Note 5 - Short-term Investments (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Debt Securities, Available-for-sale [Table Text Block]	September 30, 2018 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. treasury bills and government agency obligations $ 69,602 $ — $ (4 ) $ 69,598 U.S. corporate debt securities 67,084 — (36 ) 67,048 Foreign corporate debt securities 6,995 — (2 ) 6,993 U.S. commercial paper 55,261 — — 55,261 Foreign commercial paper 111,966 — — 111,966 Total $ 310,908 $ — $ (42 ) $ 310,866 D ecember 31, 2017 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. corporate debt securities $ 13,003 $ — $ (10 ) $ 12,993 U.S. commercial paper 4,929 — — 4,929 Foreign commercial paper 9,874 — — 9,874 Total $ 27,806 $ — $ (10 ) $ 27,796

Note 6 - Inventory (Tables)

Note 6 - Inventory (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 30, 2018 December 31, 2017 Raw materials $ 9,437 $ 2,754 Work in process 13,203 4,166 Finished goods 8,772 3,188 Total inventory $ 31,412 $ 10,108

Note 7 - Revenue Recognition (T

Note 7 - Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]	As Reported U nder Topic 605 Effect of Change As Adjusted U nder Topic 606 Inventory $ 10,108 $ (198 ) $ 9,910 Other accrued liabilities 17,175 991 18,166 Deferred revenue 2,763 (2,763 ) — Retained earnings (783,455 ) 1,574 (781,881 ) As R eported U nder Topic 606 Effect of Change As Revised Under Topic 605 Consolidated Balance Sheet as of September 30, 2018 Inventory $ 31,412 $ 1,954 $ 33,366 Other accrued liabilities 27,368 (4,628 ) 22,740 Deferred revenue — 10,524 10,524 Retained earnings (911,162 ) (3,942 ) (915,104 ) Consolidated Statement of Operations for the Three Months Ended September 30, 2018 Net product sales $ 19,786 $ 177 $ 19,963 Cost of product sales 7,576 (328 ) 7,248 Loss from operations (41,780 ) 505 (41,275 ) Net loss (38,346 ) 505 (37,841 ) Basic and diluted net loss per share (0.49 ) — (0.49 ) Consolidated Statement of Operations for the Nine Months Ended September 30, 2018 Net product sales $ 48,630 $ (4,124 ) $ 44,506 Cost of product sales 15,940 (1,756 ) 14,184 Loss from operations (132,623 ) (2,368 ) (134,991 ) Net loss (129,281 ) (2,368 ) (131,649 ) Basic and diluted net loss per share (1.81 ) (0.03 ) (1.84 ) Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2018 Net loss $ (129,281 ) $ (2,368 ) $ (131,649 ) Adjustments to reconcile net loss to net cash used in operating activities: Inventory (21,502 ) (1,756 ) (23,258 ) Other accrued liabilities 9,494 (3,637 ) (5,857 ) Deferred revenue — 7,761 7,761
Valuation Allowances and Reserves [Table Text Block]	Product Returns Distributor Fees Discounts, Rebates and Administrative Fees Total Balance at December 31, 2017 $ 521 $ 580 $ 8,218 $ 9,319 Provision 178 4,342 33,764 38,284 Payments/credits (18 ) (3,145 ) (25,619 ) (28,782 ) Balance at September 30, 2018 $ 681 $ 1,777 $ 16,363 $ 18,821

Note 8 - Leases (Tables)

Note 8 - Leases (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Period ending September 30: 2019 $ 3,335 2020 2,702 2021 2,781 2022 2,862 2023 2,946 Thereafter 4,026 Total future minimum lease payments $ 18,652

Note 11 - Stockholders' Equity

Note 11 - Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Share-based Compensation, Stock Options, Activity [Table Text Block]	Weighted- a verage Weighted- Remaining a verage Contractual Shares Exercise Term (in thousands) Price (Years) Balance at December 31, 2017 13,463 $ 15.03 8.01 Granted 725 $ 32.42 Exercised (1,332 ) $ 11.84 Expired and forfeited (556 ) $ 17.94 Balance at September 30, 2018 12,300 $ 16.27 7.50
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Research and development $ 3,212 $ 2,595 $ 9,363 $ 8,758 General and administrative 2,366 2,419 6,950 7,345 Sales and marketing 2,472 2,462 7,259 7,544 Total stock-based compensation expense $ 8,050 $ 7,476 $ 23,572 $ 23,647
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	September 30 , 20 18 20 17 Risk-free interest rate 2.8 % 2.0 % Dividend yield 0.0 % 0.0 % Volatility 70.5 % 80.2 % Expected life (years) 6 6

Note 1 - Business (Details Text

Note 1 - Business (Details Textual) $ in Millions	Sep. 30, 2018USD ($)
Cash, Cash Equivalents, and Short-term Investments, Total	$ 364.8

Note 3 - Accounting Policies (D

Note 3 - Accounting Policies (Details Textual) - USD ($) $ in Thousands	Jan. 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Revenue from Contract with Customer, Including Assessed Tax		$ 19,786	$ 8,572	$ 48,630	$ 20,714
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Ending Balance		18,821		18,821		$ 9,319
Cost of Goods and Services Sold, Total		$ 7,576	$ 1,051	$ 15,940	$ 3,250
Accounting Standards Update 2014-09 [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 2,900
Cost of Goods and Services Sold, Total	200
Accounting Standards Update 2014-09 [Member] | Product Sales Allowance [Member]
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Ending Balance	1,100
Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 1,600

Note 3 - Accounting Policies -

Note 3 - Accounting Policies - Percentage of Net Product Sales and Accounts Receivable Balance (Details) - Customer Concentration Risk [Member]	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Sales Revenue, Net [Member]
Concentration risk percentage	99.30%	99.60%
Sales Revenue, Net [Member] | Largest Customer [Member]
Concentration risk percentage	23.20%	42.60%
Sales Revenue, Net [Member] | Second Largest Customer [Member]
Concentration risk percentage	44.10%	30.60%
Sales Revenue, Net [Member] | Third Largest Customer [Member]
Concentration risk percentage	32.00%	26.40%
Accounts Receivable [Member]
Concentration risk percentage		99.80%
Accounts Receivable [Member] | Largest Customer [Member]
Concentration risk percentage		45.40%
Accounts Receivable [Member] | Second Largest Customer [Member]
Concentration risk percentage		36.10%
Accounts Receivable [Member] | Third Largest Customer [Member]
Concentration risk percentage		18.30%

Note 3 - Accounting Policies _2

Note 3 - Accounting Policies - Securities Excluded From Calculation of Diluted Earnings Per Share (Details) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Employee Stock Option [Member]
Shares excluded (in shares)	12,300	11,198
Warrant [Member]
Shares excluded (in shares)	640	620
Convertible Debt Securities [Member]
Shares excluded (in shares)	8,348	7,865

Note 4 - Fair Value Measureme_3

Note 4 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Cash Equivalents, at Carrying Value, Total	$ 16,400	$ 49,400
Available-for-sale Securities, Current, Total	$ 310,866	$ 27,796

Note 4 - Fair Value Measureme_4

Note 4 - Fair Value Measurements - Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Available-for-sale securities	$ 310,866	$ 27,796
US Treasury Securities [Member]
Available-for-sale securities	69,598
Debt Security, Corporate, US [Member]
Available-for-sale securities	67,048	12,993
United States Commercial Paper [Member]
Available-for-sale securities	55,261	4,929
Debt Security, Corporate, Non-US [Member]
Available-for-sale securities	6,993
Foreign Commercial Paper [Member]
Available-for-sale securities	111,966	9,874
Fair Value, Measurements, Recurring [Member]
Total	364,800	172,379
Fair Value, Measurements, Recurring [Member] | Foreign Commercial Paper [Member]
Available-for-sale securities	119,452	19,854
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member]
Available-for-sale securities	69,598
Fair Value, Measurements, Recurring [Member] | Debt Security, Corporate, US [Member]
Available-for-sale securities	67,048	17,520
Fair Value, Measurements, Recurring [Member] | United States Commercial Paper [Member]
Available-for-sale securities	64,253	39,863
Fair Value, Measurements, Recurring [Member] | Debt Security, Corporate, Non-US [Member]
Available-for-sale securities	6,993
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Total	107,054	95,142
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member]
Available-for-sale securities	69,598
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Debt Security, Corporate, US [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | United States Commercial Paper [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Debt Security, Corporate, Non-US [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Commercial Paper [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Total	257,746	77,237
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Debt Security, Corporate, US [Member]
Available-for-sale securities	67,048	17,520
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | United States Commercial Paper [Member]
Available-for-sale securities	64,253	39,863
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Debt Security, Corporate, Non-US [Member]
Available-for-sale securities	6,993
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Commercial Paper [Member]
Available-for-sale securities	119,452	19,854
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Total
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Treasury Securities [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Security, Corporate, US [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | United States Commercial Paper [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Security, Corporate, Non-US [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Commercial Paper [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member]
Cash and money market funds	37,456	95,142
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Cash and money market funds	37,456	95,142
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Cash and money market funds
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Cash and money market funds

Note 5 - Short-term Investmen_3

Note 5 - Short-term Investments (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Total	$ 0	$ 0	$ 0	$ 0
Debt Securities, Available-for-sale, Realized Gain (Loss), Total	$ 0	$ 0	$ 0	$ 0

Note 5 - Short-term Investmen_4

Note 5 - Short-term Investments - Summary of Short-term Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Available-for-sale securities, amortized cost	$ 310,908	$ 27,806
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses	(42)	(10)
Available-for-sale securities	310,866	27,796
US Treasury Securities [Member]
Available-for-sale securities, amortized cost	69,602
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses	(4)
Available-for-sale securities	69,598
Debt Security, Corporate, US [Member]
Available-for-sale securities, amortized cost	67,084	13,003
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses	(36)	(10)
Available-for-sale securities	67,048	12,993
United States Commercial Paper [Member]
Available-for-sale securities, amortized cost	55,261	4,929
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses
Available-for-sale securities	55,261	4,929
Debt Security, Corporate, Non-US [Member]
Available-for-sale securities, amortized cost	6,995
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses	(2)
Available-for-sale securities	6,993
Foreign Commercial Paper [Member]
Available-for-sale securities, amortized cost	111,966	9,874
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses
Available-for-sale securities	$ 111,966	$ 9,874

Note 6 - Inventory (Details Tex

Note 6 - Inventory (Details Textual) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)
Research and Development Expense [Member] | CINVANTI [Member]
Manufacturing Costs	$ 1.4

Note 6 - Inventory - Inventory

Note 6 - Inventory - Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Raw materials	$ 9,437		$ 2,754
Work in process	13,203		4,166
Finished goods	8,772		3,188
Total inventory	$ 31,412	$ 9,910	$ 10,108

Note 7 - Revenue Recognition -

Note 7 - Revenue Recognition - Adoption of Topic 606 (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Inventory	$ 9,910	$ 31,412		$ 31,412		$ 10,108
Other accrued liabilities	18,166	27,368		27,368		17,175
Deferred revenue						2,763
Retained earnings	(781,881)	(911,162)		(911,162)		$ (783,455)
Net product sales		19,786	$ 8,572	48,630	$ 20,714
Cost of product sales		7,576	1,051	15,940	3,250
Loss from operations		(41,780)	(41,314)	(132,623)	(132,668)
Net loss		$ (38,346)	$ (41,866)	$ (129,281)	$ (134,994)
Basic and diluted net loss per share (in dollars per share)		$ (0.49)	$ (0.77)	$ (1.81)	$ (2.55)
Inventory				$ (21,502)	$ 171
Other accrued liabilities				9,494	9,585
Deferred revenue					$ 4,461
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Inventory		$ 33,366		33,366
Other accrued liabilities		22,740		22,740
Deferred revenue		10,524		10,524
Retained earnings		(915,104)		(915,104)
Net product sales		19,963		44,506
Cost of product sales		7,248		14,184
Loss from operations		(41,275)		(134,991)
Net loss		$ (37,841)		$ (131,649)
Basic and diluted net loss per share (in dollars per share)		$ (0.49)		$ (1.84)
Inventory				$ (23,258)
Other accrued liabilities				(5,857)
Deferred revenue				7,761
Accounting Standards Update 2014-09 [Member]
Inventory	(198)
Other accrued liabilities	991
Deferred revenue	(2,763)
Retained earnings	1,574
Net product sales	2,900
Cost of product sales	$ 200
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Inventory		$ 1,954		1,954
Other accrued liabilities		(4,628)		(4,628)
Deferred revenue		10,524		10,524
Retained earnings		(3,942)		(3,942)
Net product sales		177		(4,124)
Cost of product sales		(328)		(1,756)
Loss from operations		505		(2,368)
Net loss		$ 505		$ (2,368)
Basic and diluted net loss per share (in dollars per share)				$ (0.03)
Inventory				$ (1,756)
Other accrued liabilities				(3,637)
Deferred revenue				$ 7,761

Note 7 - Revenue Recognition _2

Note 7 - Revenue Recognition - Summary of Product Sales Allowance (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Balance	$ 9,319
Provision	38,284
Payments/credits	(28,782)
Balance	18,821
Allowance for Sales Returns 1 [Member]
Balance	521
Provision	178
Payments/credits	(18)
Balance	681
Allowance for Distributor Fees [Member]
Balance	580
Provision	4,342
Payments/credits	(3,145)
Balance	1,777
Allowance for Rebates and Chargebacks [Member]
Balance	8,218
Provision	33,764
Payments/credits	(25,619)
Balance	$ 16,363

Note 8 - Leases (Details Textua

Note 8 - Leases (Details Textual) - Lease Amendment to Lease for Additional Office Space in Campus Point Court, San Diego, California [Member] $ in Millions	May 08, 2018USD ($)
Lessee, Operating Lease, Liability, Annual Payments, Due Next Twelve Months	$ 0.9
Lessee, Operating Lease, Liability, Annual Payments Due in Final Three Months of Agreement	1.4
Payments for Security Deposit	$ 0.1

Note 8 - Leases - Future Minimu

Note 8 - Leases - Future Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2018USD ($)
2,019	$ 3,335
2,020	2,702
2,021	2,781
2,022	2,862
2,023	2,946
Thereafter	4,026
Total future minimum lease payments	$ 18,652

Note 9 - Realignment of Goals_2

Note 9 - Realignment of Goals and Objectives and New Development Focus (Details Textual) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Restructuring and Related Cost, Expected Cost, Total			$ 9.6
Restructuring Plan [Member]
Payments for Restructuring		$ 5.5
Restructuring Plan [Member] | General and Administrative Expense [Member]
Restructuring Charges, Total	$ 0.5
Restructuring Plan [Member] | Employee Severance [Member]
Restructuring and Related Cost, Expected Cost, Total		$ 5.7	5.7
Restructuring Plan [Member] | Accelerated Non-Cash Stock Option Expense [Member]
Restructuring and Related Cost, Expected Cost, Total			$ 3.9

Note 10 - Secured Notes to Re_2

Note 10 - Secured Notes to Related Party (Details Textual) - USD ($)	Aug. 07, 2018	Aug. 05, 2016	Aug. 02, 2016	Jul. 29, 2011	Apr. 30, 2011	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Convertible Debt Issuable in Connection with Private Placement					$ 4,500,000
Proceeds from Convertible Debt					$ 4,300,000
Amortization of Debt Discount (Premium)								$ 654,000	$ 570,000
Convertible Notes Payable, Related Parties, Current						$ 4,338,000		4,338,000		$ 3,684,000
Repayments of Long-term Debt, Total								25,000,000	25,000,000
Interest Paid, Excluding Capitalized Interest, Operating Activities								1,183,000	2,289,000
Convertible Debt [Member]
Debt Instrument, Interest Rate, Stated Percentage					6.00%
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				3,500,000
Debt Instrument, Term					10 years
Paid-in-Kind Interest								300,000
Debt Instrument, Increase (Decrease), Other, Net								300,000
Interest Expense, Debt, Excluding Amortization						100,000	$ 100,000	300,000	300,000
Amortization of Debt Discount (Premium)						200,000	200,000	600,000	600,000
Debt Instrument, Face Amount						6,600,000		6,600,000
Debt Instrument, Unamortized Discount, Total						2,300,000		$ 2,300,000
Debt Instrument, Convertible, Number Shares of Equity Insturments								8,300,000
Convertible Debt [Member] | Common Stock [Member]
Debt Instrument Conversion Ratio Shares					1,250
Term Loan [Member] | Tang Capital [Member]
Debt Instrument, Interest Rate, Stated Percentage			8.00%
Debt Instrument, Term			2 years
Debt Agreement, Maximum Borrowing Capacity			$ 100,000,000
Proceeds from Issuance of Long-term Debt, Total		$ 50,000,000
Proceeds from Issuance of Long-term Debt, Subject to Achievement of Corporate Milestone			50,000,000
Debt Instrument, Fee Amount			$ 0
Debt Instrument, Number of Warrants			0
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 0
Interest Expense, Total						200,000	$ 500,000	$ 1,200,000	$ 2,300,000
Repayments of Long-term Debt, Total	$ 25,000,000
Interest Paid, Excluding Capitalized Interest, Operating Activities	$ 200,000
Long-term Debt, Total						$ 0		$ 0

Note 11 - Stockholders' Equit_2

Note 11 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended				9 Months Ended
	Jun. 30, 2018	Apr. 30, 2018	Dec. 31, 2017	Jan. 31, 2017	Sep. 30, 2018	Sep. 30, 2017
Proceeds from Issuance of Common Stock	$ 194,400	$ 168,700	$ 142,600	$ 163,700
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Net					1,332,000
Proceeds from Stock Options Exercised					$ 15,771	$ 7,836
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total					$ 73,800
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition					2 years 182 days
Common Stock [Member]
Stock Issued During Period, Shares, New Issues	5,100,000	6,900,000	9,700,000	14,100,000
Share Price	$ 39.50	$ 26	$ 15.50	$ 12.20
Payments of Stock Issuance Costs	$ 5,600	$ 10,700	$ 7,400	$ 8,800

Note 11 - Stockholders' Equit_3

Note 11 - Stockholders' Equity - Stock Option Activity (Details) - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Number of shares outstanding (in shares)	13,463
Number of shares outstanding, weighted average exercise price (in dollars per share)	$ 15.03
Number of shares outstanding, weighted average remaining contractual term (Year)	7 years 182 days	8 years 3 days
Number of shares granted (in shares)	725
Number of shares granted, weighted average exercise price (in dollars per share)	$ 32.42
Number of shares exercised (in shares)	(1,332)
Number of shares exercised, weighted average exercise price (in dollars per share)	$ 11.84
Expired and forfeited (in shares)	(556)
Number of shares expired and forfeited, weighted average exercise price (in dollars per share)	$ 17.94
Number of shares outstanding (in shares)	12,300	13,463
Number of shares outstanding, weighted average exercise price (in dollars per share)	$ 16.27	$ 15.03

Note 11 - Stockholders' Equit_4

Note 11 - Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock-based compensation expense	$ 8,050	$ 7,476	$ 23,572	$ 23,647
Research and Development Expense [Member]
Stock-based compensation expense	3,212	2,595	9,363	8,758
General and Administrative Expense [Member]
Stock-based compensation expense	2,366	2,419	6,950	7,345
Selling and Marketing Expense [Member]
Stock-based compensation expense	$ 2,472	$ 2,462	$ 7,259	$ 7,544

Note 11 - Stockholders' Equit_5

Note 11 - Stockholders' Equity - Valuation Assumptions (Details) - Employee Stock Option [Member]	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Risk-free interest rate	2.80%	2.00%
Dividend yield	0.00%	0.00%
Volatility	70.50%	80.20%
Expected life (Year)	6 years	6 years

Note 12 - Income Taxes (Details

Note 12 - Income Taxes (Details Textual) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)
Accounting Standards Update 2014-09 [Member]
Unrecognized Tax Benefits, Period Increase (Decrease), Total	$ (3.6)

Note 13 - Other Income (Expen_2

Note 13 - Other Income (Expense), Net (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other Nonoperating Income (Expense), Total	$ 3,434	$ (552)	$ 3,342	$ (2,326)
Disgorgement of Short-Swing Profits from the Sale of Common Stock [Member]
Other Nonoperating Income (Expense), Total	$ 1,900