Progenics Pharmaceuticals (PGNX) 10-Q 6 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2015	Aug. 03, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	PROGENICS PHARMACEUTICALS INC
Entity Central Index Key	835,887
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float	$ 245,713,772
Entity Common Stock, Shares Outstanding		69,684,555
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 99,309	$ 119,302
Accounts receivable, net	1,409	109
Other current assets	2,633	2,515
Total current assets	103,351	121,926
Fixed assets, at cost, net of accumulated depreciation and amortization	2,524	2,552
Intangible assets, net (Note 4)	28,700	28,700
Goodwill	7,702	7,702
Other assets	157	157
Total assets	142,434	161,037
Current liabilities:
Accounts payable and accrued expenses	6,516	6,570
Other current liabilities	115	115
Total current liabilities	6,631	6,685
Contingent consideration liability	18,300	17,200
Deferred tax liability - long term	11,332	11,332
Other liabilities	886	911
Total liabilities	$ 37,149	$ 36,128
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $.001 par value; 20,000,000 shares authorized; issued and outstanding - none	$ 0	$ 0
Common stock, $.0013 par value; 160,000,000 shares authorized; issued - 69,856,025 in 2015 and 69,832,949 in 2014	91	91
Additional paid-in capital	592,153	589,826
Accumulated deficit	(484,218)	(462,267)
Treasury stock, at cost (200,000 shares in 2015 and 2014)	(2,741)	(2,741)
Total stockholders' equity	105,285	124,909
Total liabilities and stockholders' equity	$ 142,434	$ 161,037

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Stockholders' equity:
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized	20,000,000	20,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.0013	$ 0.0013
Common stock, authorized	160,000,000	160,000,000
Common stock, issued	69,856,025	69,832,949
Common stock, shares outstanding (in shares)	69,656,025	69,632,949
Treasury stock, shares	200,000	200,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Royalty income	$ 1,773	$ 1,367	$ 1,947	$ 2,102
Collaboration revenue	145	72	210	1,121
Other revenues	19	38	28	69
Total revenues	1,937	1,477	2,185	3,292
Expenses:
Research and development	6,362	7,848	12,825	14,767
License fees - research and development	178	180	162	270
Royalty expense	178	147	220	229
General and administrative	5,998	3,856	9,591	7,261
Depreciation and amortization	129	133	261	277
Change in contingent consideration liability	800	400	1,100	900
Total expenses	13,645	12,564	24,159	23,704
Operating loss	(11,708)	(11,087)	(21,974)	(20,412)
Other income:
Interest income	11	13	23	25
Total other income	11	13	23	25
Net loss before income tax benefit	(11,697)	(11,074)	(21,951)	(20,387)
Income tax benefit	0	1	0	1
Net loss	$ (11,697)	$ (11,073)	$ (21,951)	$ (20,386)
Net loss per share - basic and diluted	$ (0.17)	$ (0.16)	$ (0.32)	$ (0.31)
Weighted-average shares - basic and diluted	69,647	69,561	69,642	66,775

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Comprehensive loss:
Comprehensive loss	$ (11,697)	$ (11,073)	$ (21,951)	$ (20,386)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total
Balance, beginning at Dec. 31, 2013	$ 79	$ 548,510	$ (466,677)	$ (192)	$ (2,741)	$ 78,979
Balance, beginning (in shares) at Dec. 31, 2013	61,025				(200)
Net loss			(20,386)			(20,386)
Compensation expenses for share-based payment arrangements		2,251				2,251
Sale of common stock in public offering, net of underwriting discounts and commissions and offering expenses	$ 12	37,447				37,459
Public Offering shares issued	8,750
Acquisition of subsidiary escrow shares returned		(82)				(82)
Acquisition of subsidiary escrow shares returned - shares	(19)
Balance, ending at Jun. 30, 2014	$ 91	588,126	(487,063)	(192)	$ (2,741)	98,221
Balance, ending (in shares) at Jun. 30, 2014	69,756				(200)
Balance, beginning at Dec. 31, 2014	$ 91	589,826	(462,267)	0	$ (2,741)	124,909
Balance, beginning (in shares) at Dec. 31, 2014	69,833				(200)
Net loss			(21,951)			(21,951)
Compensation expenses for share-based payment arrangements		2,211				2,211
Exercise of stock options		116				116
Exercise of stock options (in shares)	23
Acquisition of subsidiary escrow shares returned						0
Balance, ending at Jun. 30, 2015	$ 91	$ 592,153	$ (484,218)	$ 0	$ (2,741)	$ 105,285
Balance, ending (in shares) at Jun. 30, 2015	69,856				(200)

CONSOLIDATED STATEMENTS OF STO7

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) $ in Thousands	6 Months Ended
	Jun. 30, 2014USD ($)
Underwriting discounts and commissions	$ 2,415
Offering expenses	$ 376

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (21,951)	$ (20,386)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	261	277
Gains on sales of fixed assets	(18)	(73)
Deferred income tax	0	(1)
Change in contingent consideration liability	1,100	900
Expenses for share-based compensation awards	2,211	2,251
Acquisition of subsidiary escrow shares returned	0	(82)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	(1,300)	1,411
(Increase) in other current assets	(117)	0
(Decrease) in accounts payable and accrued expenses	(54)	(2,275)
(Decrease) in other liabilities	(25)	(2)
Net cash used in operating activities	(19,893)	(17,980)
Cash flows from investing activities:
Capital expenditures	(233)	(68)
Proceeds from sales of fixed assets	17	76
Net cash (used in) provided by investing activities	(216)	8
Cash flows from financing activities:
Proceeds from public offering of common stock, net of underwriting discounts and commissions and offering expenses	0	37,459
Proceeds from the exercise of stock options	116	0
Net cash provided by financing activities	116	37,459
Net (decrease) increase in cash and cash equivalents	(19,993)	19,487
Cash and cash equivalents at beginning of period	119,302	65,860
Cash and cash equivalents at end of period	$ 99,309	$ 85,347

Interim Financial Statements

Interim Financial Statements	6 Months Ended
	Jun. 30, 2015
Interim Financial Statements [Abstract]
Interim Financial Statements	1. Progenics Pharmaceuticals, Inc. (the Company, Progenics, we or us) . 18 On April 1, 2015, Valeant Pharmaceuticals International, Inc. acquired Salix Pharmaceuticals, Ltd. (Salix), and Salix became a wholly-owned subsidiary of Valeant (references hereinafter to "Valeant" refer to Salix and Valeant as a consolidated entity as a result of the acquisition). We have licensed to Valeant our first commercial drug, RELISTOR ® ® Our current principal sources of revenue from operations are royalty, commercialization milestone and revenue-sharing payments from Valeant's RELISTOR operations. Royalty and milestone payments from RELISTOR depend on success in development and commercialization, which is dependent on many factors, such as Valeant's efforts, decisions by the FDA and other regulatory bodies, competition from drugs for the same or similar indications, and the outcome of clinical and other testing of RELISTOR. Progenics commenced principal operations in 1988, became publicly traded in 1997 and throughout has been engaged primarily in research and development efforts, establishing corporate collaborations and related activities. Certain of our intellectual property rights are held by wholly owned subsidiaries. All of our operations are conducted at our facilities in Tarrytown, New York. We operate under a single research and development segment. Funding and Financial Matters We fund our operations to a significant extent from capital-raising. In the first quarter of 2014, we raised $37.5 million in an underwritten public offering of 8.75 million shares of common stock at a public offering price of $4.60 per share, and entered into an agreement with an investment bank under which we may sell from time to time up to an additional $50 million of our common stock. Our interim Consolidated Financial Statements have been prepared in accordance with applicable presentation requirements, and accordingly do not include all information and disclosures necessary for a presentation of our financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America (GAAP). In the opinion of management, these financial statements reflect all adjustments, consisting primarily of normal recurring accruals necessary for a fair statement of results for the periods presented. The results of operations for interim periods are not necessarily indicative of the results for the full year. Our interim financial statements should be read in conjunction with the financial statements and notes thereto contained in our 2014 Annual Report on Form 10-K. The year-end consolidated balance sheet data in these financial statements were derived from audited financial statements but do not include all disclosures required by GAAP. Certain amounts have been reclassified in prior periods' financial statements to conform to the current year presentation. This includes the reclassification of certain non-cash items from general and administrative expenses to change in contingent consideration liability, which reclassification had no effect on total expenses as previously reported.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2015
Revenue Recognition [Abstract]
Revenue Recognition	2. Revenue Recognition The Company recognizes revenue from all sources based on the provisions of the SEC's Staff Accounting Bulletin (SAB) No. 104 (SAB 104) of the Securities and Exchange Commission (SEC) and ASC 605 Revenue Recognition. Under ASC 605, delivered items are separate units of accounting, provided (i) the delivered items have value to a collaborator on a stand-alone basis, and (ii) if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered items is considered probable and substantially in our control. We recognize revenue for payments that are contingent upon performance solely by our collaborator immediately upon the achievement of the defined event if we have no related performance obligations. A separate update to ASC 605 provides guidance on the criteria that should be met when determining whether the milestone method of revenue recognition is appropriate. There have been no changes to our revenue recognition accounting policies in the second quarter of 2015. These policies are disclosed in Note 2 to the consolidated financial statements included in our 2014 Annual Report on Form 10-K. Under our 2012 agreement with FUJIFILM RI Pharma Co., Ltd. (Fuji) for the development of 1404 in Japan, we recognized as revenue a $1.0 million payment contingent on execution of the first contract by Fuji with an investigation site for a phase 1 trial in the first quarter of 2014.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2015
Net Loss Per Share [Abstract]
Net Loss Per Share	3. Net Loss Per Share Our basic net loss per share amounts have been computed by dividing net loss by the weighted-average number of common shares outstanding during the period. For each of the periods presented below, we reported net losses and, accordingly, potential common shares were not included since such inclusion would have been anti-dilutive. The calculations of net loss per share, basic and diluted, are as follows: Net Loss Weighted Average Common Shares (in thousands) Per Share Three months ended June 30, 2015 Basic and diluted $ (11,697 ) 69,647 $ (0.17 ) Six months ended June 30, 2015 Basic and diluted $ (21,951 ) 69,642 $ (0.32 ) Three months ended June 30, 2014 Basic and diluted $ (11,073 ) 69,561 $ (0.16 ) Six months ended June 30, 2014 Basic and diluted $ (20,386 ) 66,775 $ (0.31 ) For these periods, anti-dilutive common shares excluded from diluted per share amounts consist of the following: Three Months Ended June 30, 2015 2014 Weighted (in thousands) Weighted Weighted (in thousands) Weighted Options 6,705 $ 9.80 6,261 $ 10.14 Contingent consideration liability 3,025 4,347 Total 9,730 10,608 Six Months Ended June 30, 2015 2014 Weighted (in thousands) Weighted Weighted (in thousands) Weighted Options 6,483 $ 9.93 6,066 $ 10.43 Contingent consideration liability 2,966 3,725 Total 9,449 9,791

In-Process Research and Develop

In-Process Research and Development and Goodwill	6 Months Ended
	Jun. 30, 2015
In-Process Research and Development and Goodwill [Abstract]
In-Process Research and Development and Goodwill [Text Block]	4. In-Process Research and Development and Goodwill The fair values of in-process research and development (IPR&D) acquired in business combinations are capitalized. The Company utilizes the "income method," which applies a probability weighting that considers the risk of development and commercialization to the estimated future net cash flows that are derived from projected sales revenues and estimated costs. These projections are based on factors such as relevant market size, patent protection, historical pricing of similar products and expected industry trends. The estimated future net cash flows are then discounted to the present value using an appropriate discount rate. This analysis is performed for each project independently. These assets are treated as indefinite-lived intangible assets until completion or abandonment of the projects, at which time the assets are amortized over the remaining useful life or written off, as appropriate. IPR&D intangible assets which are determined to have a decline in their fair value are adjusted downward and an impairment loss is recognized in the Consolidated Statements of Operations. These are tested at least annually or when a triggering event occurs that could indicate a potential impairment. Goodwill represents excess consideration in a business combination over the fair value of identifiable net assets acquired. Goodwill is not amortized, but is subject to impairment testing at least annually or when a triggering event occurs that could indicate a potential impairment. The Company determines whether goodwill may be impaired by comparing the fair value of the reporting unit (the Company has determined that it has only one reporting unit for this purpose), calculated as the product of shares outstanding and the share price as of the end of a period, to its carrying value (for this purpose, the Company's total stockholders' equity). No goodwill impairment has been recognized as of June 30, 2015 or 2014. The following tables summarize the activity related to the Company's goodwill and indefinite lived IPR&D: Goodwill IPR&D Balance at January 1, 2015 $ 7,702 $ 28,700 Impairment - - Balance at June 30, 2015 $ 7,702 $ 28,700 Goodwill IPR&D Balance at January 1, 2014 $ 7,702 $ 31,360 Impairment - - Balance at June 30, 2014 $ 7,702 $ 31,360

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements [Abstract]
Fair Value Measurements	5. Fair Value Measurements We record the contingent consideration liability resulting from the Molecular Insight Pharmaceuticals, Inc. (MIP) acquisition at fair value in accordance with ASC 820-10-50. The following tables present our money market funds and contingent consideration liability measured at fair value on a recurring basis as of the dates indicated, classified by valuation hierarchy: Fair Value Measurements at June 30, 2015 Balance at June 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds $ 92,829 $ 92,829 $ - $ - Total Assets $ 92,829 $ 92,829 $ - $ - Liability: Contingent consideration $ 18,300 $ - $ - $ 18,300 Total Liability $ 18,300 $ - $ - $ 18,300 Fair Value Measurements at December 31, 2014 Balance at December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds $ 112,808 $ 112,808 $ - $ - Total Assets $ 112,808 $ 112,808 $ - $ - Liability: Contingent consideration $ 17,200 $ - $ - $ 17,200 Total Liability $ 17,200 $ - $ - $ 17,200 The estimated fair value of the contingent consideration liability of $18,300 as of June 30, 2015, represents future potential milestone payments to former MIP stockholders. The Company considers this liability a Level 3 instrument (one with significant unobservable inputs) in the fair value hierarchy. The estimated fair value was determined based on probability adjusted discounted cash flow and Monte Carlo simulation models that included significant estimates and assumptions pertaining to commercialization events and sales targets. The most significant unobservable inputs were the probabilities of achieving regulatory approval of the development projects and subsequent commercial success and discount rates. Significant changes in any of the probabilities of success would result in a significantly higher or lower fair value measurement, respectively. Significant changes in the probabilities as to the periods in which milestones will be achieved would result in a significantly lower or higher fair value measurement, respectively. The Company records the contingent consideration liability at fair value with changes in estimated fair values recorded in change in contingent consideration liability in the Consolidated Statements of Operations. The following table presents quantitative information pertaining to the June 30, 2015 fair value measurement of the Level 3 inputs. The assumptions remained unchanged since December 31, 2014: Fair Value as of June 30, 2015 Fair Value as of December 31, 2014 Valuation Technique Unobservable Input Range (Weighted Average) Contingent consideration liability: Azedra commercialization $ 2,400 $ 2,300 Probability adjusted discounted cash flow model Probability of success 40% Period of milestone expected achievement 2018 Discount rate 10% 1404 commercialization $ 4,000 $ 3,800 Probability adjusted discounted cash flow model Probability of success 59% Period of milestone expected achievement 2019 Discount rate 10% MIP-1095 commercialization $ 500 $ 400 Probability adjusted discounted cash flow model Probability of success 19% Period of milestone expected achievement 2023 Discount rate 10% Net sales targets $ 11,400 $ 10,700 Monte-Carlo simulation Probability of success 19% - 59% (37.4%) Period of milestone expected achievement 2019 - 2026 Discount rates (1) 12%/3.5% (1) At June 30, 2015 and December 31, 2014, net sales targets contingent consideration liability was derived from a model under a risk neutral framework resulting in the application of 12% and 3.5% discount rates to estimated cash flows. For those financial instruments with significant Level 3 inputs, the following table summarizes the activities for the periods indicated: Liability – Contingent Consideration Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Three Months Ended June 30, 2015 2014 Description Balance at beginning of period $ 17,500 $ 16,200 Fair value change to contingent consideration included in net loss 800 400 Balance at end of period $ 18,300 $ 16,600 Changes in unrealized gains or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period $ 800 $ 400 Liability – Contingent Consideration Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Six Months Ended June 30, 2015 2014 Description Balance at beginning of period $ 17,200 $ 15,700 Fair value change to contingent consideration included in net loss 1,100 900 Balance at end of period $ 18,300 $ 16,600 Changes in unrealized gains or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period $ 1,100 $ 900

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 30, 2015
Accounts Receivable [Abstract]
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	6. Accounts Receivable Our accounts receivable represent amounts due to Progenics from royalties, collaborators and sales of research reagents, and at the below dates consisted of the following: June 30, 2015 December 31, 2014 Royalties $ 1,268 $ 40 Collaborators 142 14 Other 9 65 1,419 119 Less, allowance for doubtful accounts (10 ) (10 ) Total $ 1,409 $ 109

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	6 Months Ended
	Jun. 30, 2015
Accounts Payable and Accrued Expenses [Abstract]
Accounts Payable and Accrued Expenses	7. Accounts Payable and Accrued Expenses The carrying value of our accounts payable and accrued expenses approximates fair value, as it represents amounts due to vendors and employees which will be satisfied within one year. Accounts payable and accrued expenses at the below dates consisted of the following: June 30, 2015 December 31, 2014 Legal and professional fees $ 3,165 $ 1,063 Accrued consulting and clinical trial costs 1,718 2,662 Accrued payroll and related costs 1,099 1,722 Accounts payable and other 534 1,123 Total $ 6,516 $ 6,570

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies In the ordinary course of our business, we enter into agreements with third parties, such as business partners, clinical sites and suppliers, that include usual and customary indemnification provisions. We generally reciprocally agree to indemnify, hold harmless and reimburse indemnified parties for losses suffered or incurred with respect to products or product candidates, use of such products or other actions taken or omitted by the parties. The maximum potential amount of future payments we could be required to make under these indemnification provisions is frequently not limited. We have not incurred material costs to defend lawsuits or settle claims related to these provisions. As a result, the estimated fair value of liabilities relating to indemnification provisions is minimal. We have no liabilities recorded for these provisions as of June 30, 2015 and December 31, 2014. Progenics is a party to a proceeding brought by a former employee complaining that the Company violated the anti-retaliation provisions of the federal Sarbanes-Oxley law by terminating the former employee in mid-2008. In July 2013, the federal District Court hearing the case issued an order denying our motion for summary judgment dismissing the former employee's complaint. The case went to trial in July 2015 and the jury awarded the former employee approximately $1.66 million in compensatory damages primarily consisting of salary the former employee would have received during the period from his termination to the date of the verdict. We have accrued an amount in connection with this matter which we believe is probable and estimable. Certain ancillary matters in the case, including the former employee's claims for additional compensation, pre-judgment interest and the awarding of attorneys' fees, remain subject to dispute. Given that there are matters yet to be decided and an estimate of the additional exposure, if any, have yet to be determined there is a reasonable possibility that additional losses may be incurred. The Company is assessing the verdict and its options in the case, including a potential appeal. In July 2015, Progenics was named as a defendant in a complaint brought by Lonza Sales AG (Lonza) in the U.S. District Court for the District of Delaware arising from a multi-product license agreement entered into by Progenics and Lonza in April 2010. The complaint alleges that Progenics breached the multi-product license agreement and misappropriated trade secrets in connection with Progenics' sale of certain assets relating to the PRO 140 product to a third party, and seeks unspecified damages and injunctive relief. Progenics intends to vigorously defend against this action. At this time, we do not believe losses, if any, would have a material effect on the results of operations or financial position taken as a whole. The Company and its affiliates are or may be from time to time involved in various other disputes, governmental and/or regulatory inspections, inquires, investigations and proceedings that could result in litigation, and other litigation matters that arise from time to time. The process of resolving matters through litigation or other means is inherently uncertain and it is possible that an unfavorable resolution of these matters will adversely affect the Company, its results of operations, financial condition and cash flows.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Net Loss Per Share [Abstract]
Calculation of net loss per share, basic and diluted	Net Loss Weighted Average Common Shares (in thousands) Per Share Three months ended June 30, 2015 Basic and diluted $ (11,697 ) 69,647 $ (0.17 ) Six months ended June 30, 2015 Basic and diluted $ (21,951 ) 69,642 $ (0.32 ) Three months ended June 30, 2014 Basic and diluted $ (11,073 ) 69,561 $ (0.16 ) Six months ended June 30, 2014 Basic and diluted $ (20,386 ) 66,775 $ (0.31 )
Schedule of antidilutive common shares excluded from computation of diluted earnings per share	For these periods, anti-dilutive common shares excluded from diluted per share amounts consist of the following: Three Months Ended June 30, 2015 2014 Weighted (in thousands) Weighted Weighted (in thousands) Weighted Options 6,705 $ 9.80 6,261 $ 10.14 Contingent consideration liability 3,025 4,347 Total 9,730 10,608 Six Months Ended June 30, 2015 2014 Weighted (in thousands) Weighted Weighted (in thousands) Weighted Options 6,483 $ 9.93 6,066 $ 10.43 Contingent consideration liability 2,966 3,725 Total 9,449 9,791

In-Process Research and Devel18

In-Process Research and Development and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2015
In-Process Research and Development and Goodwill [Abstract]
Activity related to goodwill and indefinite lived intangible assets [Text Block]	The following tables summarize the activity related to the Company's goodwill and indefinite lived IPR&D: Goodwill IPR&D Balance at January 1, 2015 $ 7,702 $ 28,700 Impairment - - Balance at June 30, 2015 $ 7,702 $ 28,700 Goodwill IPR&D Balance at January 1, 2014 $ 7,702 $ 31,360 Impairment - - Balance at June 30, 2014 $ 7,702 $ 31,360

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements [Abstract]
Assets and liabilities measured at fair value on recurring basis	The following tables present our money market funds and contingent consideration liability measured at fair value on a recurring basis as of the dates indicated, classified by valuation hierarchy: Fair Value Measurements at June 30, 2015 Balance at June 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds $ 92,829 $ 92,829 $ - $ - Total Assets $ 92,829 $ 92,829 $ - $ - Liability: Contingent consideration $ 18,300 $ - $ - $ 18,300 Total Liability $ 18,300 $ - $ - $ 18,300 Fair Value Measurements at December 31, 2014 Balance at December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds $ 112,808 $ 112,808 $ - $ - Total Assets $ 112,808 $ 112,808 $ - $ - Liability: Contingent consideration $ 17,200 $ - $ - $ 17,200 Total Liability $ 17,200 $ - $ - $ 17,200
Quantitative information for fair value measurement of Level 3	The following table presents quantitative information pertaining to the June 30, 2015 fair value measurement of the Level 3 inputs. The assumptions remained unchanged since December 31, 2014: Fair Value as of June 30, 2015 Fair Value as of December 31, 2014 Valuation Technique Unobservable Input Range (Weighted Average) Contingent consideration liability: Azedra commercialization $ 2,400 $ 2,300 Probability adjusted discounted cash flow model Probability of success 40% Period of milestone expected achievement 2018 Discount rate 10% 1404 commercialization $ 4,000 $ 3,800 Probability adjusted discounted cash flow model Probability of success 59% Period of milestone expected achievement 2019 Discount rate 10% MIP-1095 commercialization $ 500 $ 400 Probability adjusted discounted cash flow model Probability of success 19% Period of milestone expected achievement 2023 Discount rate 10% Net sales targets $ 11,400 $ 10,700 Monte-Carlo simulation Probability of success 19% - 59% (37.4%) Period of milestone expected achievement 2019 - 2026 Discount rates (1) 12%/3.5% (1) At June 30, 2015 and December 31, 2014, net sales targets contingent consideration liability was derived from a model under a risk neutral framework resulting in the application of 12% and 3.5% discount rates to estimated cash flows.
Summary of activities in financial instruments with Level 3 inputs	For those financial instruments with significant Level 3 inputs, the following table summarizes the activities for the periods indicated: Liability – Contingent Consideration Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Three Months Ended June 30, 2015 2014 Description Balance at beginning of period $ 17,500 $ 16,200 Fair value change to contingent consideration included in net loss 800 400 Balance at end of period $ 18,300 $ 16,600 Changes in unrealized gains or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period $ 800 $ 400 Liability – Contingent Consideration Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Six Months Ended June 30, 2015 2014 Description Balance at beginning of period $ 17,200 $ 15,700 Fair value change to contingent consideration included in net loss 1,100 900 Balance at end of period $ 18,300 $ 16,600 Changes in unrealized gains or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period $ 1,100 $ 900

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2015
Accounts Receivable [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	June 30, 2015 December 31, 2014 Royalties $ 1,268 $ 40 Collaborators 142 14 Other 9 65 1,419 119 Less, allowance for doubtful accounts (10 ) (10 ) Total $ 1,409 $ 109

Accounts Payable and Accrued 21

Accounts Payable and Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2015
Accounts Payable and Accrued Expenses [Abstract]
Schedule of accounts payable and accrued expenses	June 30, 2015 December 31, 2014 Legal and professional fees $ 3,165 $ 1,063 Accrued consulting and clinical trial costs 1,718 2,662 Accrued payroll and related costs 1,099 1,722 Accounts payable and other 534 1,123 Total $ 6,516 $ 6,570

Interim Financial Statements (D

Interim Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014
Public Offering [Abstract]
Proceeds				$ 37,459
Public Offering shares issued		8,750,000
Common stock offering price		$ 4.60
Proceeds from future sales of common stock under an agreement with investment bank	$ 50,000		$ 50,000
Funding and Financial Matters [Abstract]
Cash and cash equivalents at end of period	99,309		99,309	85,347
Increase (decrease) in cash and cash equivalents	$ (9,121)		$ (19,993)	$ 19,487
Minimum number of years cash will fund operations (in years)			1 year

Revenue Recognition (Details)

Revenue Recognition (Details) $ in Millions	3 Months Ended
	Mar. 31, 2014USD ($)
Revenue Recognition [Abstract]
Milestone Revenue from Fuji	$ 1

Net Loss Per Share (Details)

Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net Income (Loss) (Numerator) [Abstract]
Net loss basic and diluted	$ (11,697)	$ (11,073)	$ (21,951)	$ (20,386)
Weighted Average Common Shares (Denominator) Abstract
Shares outstanding, basic and diluted (in shares)	69,647	69,561	69,642	66,775
Per share amount [Abstract]
Net loss per share, basic and diluted (in dollars per share)	$ (0.17)	$ (0.16)	$ (0.32)	$ (0.31)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted Average Number (in shares)	9,730	10,608	9,449	9,791
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted Average Number (in shares)	6,705	6,261	6,483	6,066
Weighted Average Exercise Price (in dollars per share)	$ 9.80	$ 10.14	$ 9.93	$ 10.43
Contingent Consideration Liability [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted Average Number (in shares)	3,025	4,347	2,966	3,725

In-Process Research and Devel25

In-Process Research and Development and Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Goodwill and indefinite lived in-process research and development [Abstract]
Goodwill	$ 7,702	$ 7,702	$ 7,702	$ 7,702
Goodwill, Acquired During Period	0	0
Indefinite-Lived Intangible Assets (Excluding Goodwill)	28,700	31,360	$ 28,700	$ 31,360
Impairment of Indefinite Intangible Assets (Excluding Goodwill)	$ 0	$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	$ 18,300		$ 18,300		$ 17,200
Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	18,300		18,300		17,200
Money Market Funds	92,829		92,829		112,808
Asset, total	92,829		92,829		112,808
Liability, total	18,300		18,300		17,200
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	0		0		0
Money Market Funds	92,829		92,829		112,808
Asset, total	92,829		92,829		112,808
Liability, total	0		0		0
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	0		0		0
Money Market Funds	0		0		0
Asset, total	0		0		0
Liability, total	0		0		0
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	18,300		18,300		17,200
Money Market Funds	0		0		0
Asset, total	0		0		0
Liability, total	18,300		$ 18,300		$ 17,200
Azedra commercialization [Member]
Fair Value Measurements, Quantitative Information
Period of milestone expected achievement			2,018		2,018
Fair Value	2,400		$ 2,400		$ 2,300
Valuation technique			Probability adjusted discounted cash flow model		Probability adjusted discounted cash flow model
Discount Rate			10.00%		10.00%
Probability of success			40.00%		40.00%
MIP - 1404 commercialization [Member]
Fair Value Measurements, Quantitative Information
Period of milestone expected achievement			2,019		2,019
Fair Value	4,000		$ 4,000		$ 3,800
Valuation technique			Probability adjusted discounted cash flow model		Probability adjusted discounted cash flow model
Discount Rate			10.00%		10.00%
Probability of success			59.00%		59.00%
MIP-1095 commercialization [Member]
Fair Value Measurements, Quantitative Information
Period of milestone expected achievement			2,023		2,023
Fair Value	500		$ 500		$ 400
Valuation technique			Probability adjusted discounted cash flow model		Probability adjusted discounted cash flow model
Discount Rate			10.00%		10.00%
Probability of success			19.00%		19.00%
Net sales targets [Member]
Fair Value Measurements, Quantitative Information
Fair Value	11,400		$ 11,400		$ 10,700
Valuation technique			Monte-Carlo simulation		Monte-Carlo simulation
Net sales targets [Member] | Minimum [Member]
Fair Value Measurements, Quantitative Information
Period of milestone expected achievement			2,019		2,019
Discount Rate			3.50%		3.50%
Probability of success			19.00%		19.00%
Net sales targets [Member] | Maximum [Member]
Fair Value Measurements, Quantitative Information
Period of milestone expected achievement			2,026		2,026
Discount Rate			12.00%		12.00%
Probability of success			59.00%		59.00%
Net sales targets [Member] | Weighted average [Member]
Fair Value Measurements, Quantitative Information
Probability of success			37.40%		37.40%
Contingent Consideration Liability [Member]
Summary of activities in financial instruments with significant Level 3 inputs [Roll Forward]
Balance at beginning of period	17,500	$ 16,200	$ 17,200	$ 15,700	$ 15,700
Total realized/unrealized gains (losses)
Fair value change to contingent consideration included in net loss	800	400	1,100	900
Balance at end of period	18,300	16,600	18,300	16,600	$ 17,200
Changes in unrealized gains or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period	$ 800	$ 400	$ 1,100	$ 900

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 1,409	$ 109
Allowance for Doubtful Accounts Receivable	(10)	(10)
Collaborators [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	142	14
Royalties [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	1,268	40
Other Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	9	65
Subtotal [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 1,419	$ 119

Accounts Payable and Accrued 28

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts Payable and Accrued Expenses [Abstract]
Legal and professional fees	$ 3,165	$ 1,063
Accrued consulting and clinical trial costs	1,718	2,662
Accrued payroll and related costs	1,099	1,722
Accounts payable and other	534	1,123
Total	$ 6,516	$ 6,570

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2015USD ($)
Commitments and Contingencies [Abstract]
Loss Contingency, Damages Awarded, Value	$ 1,660