Progenics Pharmaceuticals (PGNX) 10-Q 4 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2016	Jul. 28, 2016
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	$ 147,391,176
Entity Common Stock, Shares Outstanding		69,985,307
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 60,146	$ 74,103
Accounts receivable, net	3,563	3,543
Other current assets	5,338	5,639
Total current assets	69,047	83,285
Property and equipment, net	3,702	2,407
Intangible assets, net	30,687	30,793
Goodwill	13,074	13,074
Other assets	1,694	1,692
Total assets	118,204	131,251
Current liabilities:
Accounts payable	1,065	332
Accrued expenses	12,052	9,212
Other current liabilities	312	185
Total current liabilities	13,429	9,729
Contingent consideration liability	19,600	18,800
Deferred tax liability	11,199	11,199
Other liabilities	138	862
Total liabilities	44,366	40,590
Stockholders' equity:
Preferred stock, $0.001 par value; Authorized - 20,000 shares; issued and outstanding - none	0	0
Common stock, $0.0013 par value; Authorized - 160,000 shares; issued - 70,148 shares in 2016 and 70,146 shares in 2015	91	91
Additional paid-in capital	596,058	594,511
Treasury stock at cost, 200 shares of common stock	(2,741)	(2,741)
Accumulated other comprehensive loss	(64)	(26)
Accumulated deficit	(519,672)	(501,379)
Total Progenics stockholders' equity	73,672	90,456
Noncontrolling interests	166	205
Total stockholders' equity	73,838	90,661
Total liabilities and stockholders' equity	$ 118,204	$ 131,251

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2016	Dec. 31, 2015
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	20,000	20,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0013	$ 0.0013
Common stock, authorized (in shares)	160,000	160,000
Common stock, issued (in shares)	70,148	70,146
Treasury stock (in shares)	200	200

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue:
Royalty income	$ 2,380	$ 1,773	$ 4,569	$ 1,947
Collaboration revenue	6,073	145	6,315	210
Other revenues	23	19	42	28
Total revenue	8,476	1,937	10,926	2,185
Operating expenses:
Research and development	7,988	6,718	17,137	13,207
General and administrative	5,599	6,127	11,416	9,852
Change in contingent consideration liability	600	800	800	1,100
Total operating expenses	14,187	13,645	29,353	24,159
Operating loss	(5,711)	(11,708)	(18,427)	(21,974)
Other income:
Interest income	54	11	97	23
Total other income	54	11	97	23
Net loss	(5,657)	(11,697)	(18,330)	(21,951)
Net loss attributable to noncontrolling interests	(19)	0	(37)	0
Net loss attributable to Progenics	$ (5,638)	$ (11,697)	$ (18,293)	$ (21,951)
Net loss per share attributable to Progenics - basic and diluted (in dollars per share)	$ (0.08)	$ (0.17)	$ (0.26)	$ (0.32)
Weighted-average shares - basic and diluted (in shares)	69,947	69,647	69,947	69,642

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Comprehensive loss:
Net loss	$ (5,657)	$ (11,697)	$ (18,330)	$ (21,951)
Foreign currency transaction adjustments	29	0	(40)	0
Comprehensive loss	(5,628)	(11,697)	(18,370)	(21,951)
Comprehensive loss attributable to noncontrolling interests	(18)	0	(39)	0
Comprehensive loss attributable to Progenics	$ (5,610)	$ (11,697)	$ (18,331)	$ (21,951)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Treasury Stock	Noncontrolling Interest	Total
Balance, beginning at Dec. 31, 2015	$ 91	$ 594,511	$ (501,379)	$ (26)	$ (2,741)	$ 205	$ 90,661
Balance, beginning (in shares) at Dec. 31, 2015	70,146				(200)
Net loss	$ 0	0	(18,293)	0	$ 0	(37)	(18,330)
Foreign currency transaction adjustment	0	0	0	(38)	0	(2)	(40)
Stock-based compensation expense	0	1,536	0	0	0	0	1,536
Exercise of stock options	$ 0	11	0	0	$ 0	0	11
Exercise of stock options (in shares)	2				0
Balance, ending at Jun. 30, 2016	$ 91	$ 596,058	$ (519,672)	$ (64)	$ (2,741)	$ 166	$ 73,838
Balance, ending (in shares) at Jun. 30, 2016	70,148				(200)

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (18,330)	$ (21,951)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,498	261
Stock-based compensation expense	1,536	2,211
Gain on sale of fixed assets	(283)	(18)
Change in fair value of contingent consideration	800	1,100
Changes in assets and liabilities:
Accounts receivable	(20)	(1,300)
Other current assets	314	(117)
Accounts payable	733	110
Accrued expenses	2,845	(164)
Other current liabilities	126	0
Other liabilities	(724)	(25)
Net cash used in operating activities	(11,505)	(19,893)
Cash flows from investing activities:
Purchases of property and equipment	(2,735)	(233)
Proceeds from sale of fixed assets	314	17
Net cash used in investing activities	(2,421)	(216)
Cash flows from financing activities:
Proceeds from exercise of stock options	11	116
Net cash provided by financing activities	11	116
Effect of currency rate changes on cash and cash equivalents	(42)	0
Net decrease in cash and cash equivalents	(13,957)	(19,993)
Cash and cash equivalents at beginning of period	74,103	119,302
Cash and cash equivalents at end of period	$ 60,146	$ 99,309

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Business Progenics Pharmaceuticals, Inc. and its subsidiaries ("the Company," "Progenics," "we," or "us") develops innovative medicines for targeting and treating cancer, with a pipeline that includes several product candidates in later-stage clinical development. These products in development include therapeutic agents designed to precisely target cancer (AZEDRA ® TM Note 3. Business Acquisition. We licensed our first commercial drug, RELISTOR ® Our current principal sources of revenue from operations are royalty, development and commercialization milestones, and sublicense revenue-sharing payments from Valeant relating to RELISTOR. 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. Under the agreement with Bayer, we received an upfront payment of $4 million and could receive up to an additional $49 million in potential clinical and regulatory development milestones. We are also entitled to single digit royalties on net sales, and potential net sales milestone payments up to an aggregate total of $130 million. During the second quarter of 2016, we recognized collaboration revenue of $5 million, of which $4 million related to the upfront payment and $1 million related to the achievement of a preclinical development milestone. We determined that the exclusive rights of the license agreement had standalone value and, accordingly, we recognized revenue for the upfront payment immediately (upon receipt in April 2016). We commenced principal operations in 1988, became publicly traded in 1997, and throughout have 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 U.S. operations are presently conducted at our new facility in New York, New York, and our international operations are conducted at our facilities in Lund, Sweden. We operate under a single research and development business segment. Liquidity At June 30, 2016, we had $60.1 million of cash and cash equivalents, a decrease of $14.0 million from $74.1 million at December 31, 2015. We expect that this amount, together with the milestone payment of $50.0 million from Valeant (See additional information in Note 12. Subsequent Event Basis of Presentation Our interim condensed 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 U.S. ("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 condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2015. 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 prior period amounts in our condensed consolidated financial statements have been reclassified to conform to the current period presentation. Accounts payable, which was historically combined with accrued expenses on our consolidated balance sheet, has been presented as a separate line item for all periods presented in these unaudited condensed consolidated financial statements. Principles of Consolidation The condensed consolidated financial statements include the accounts of Progenics as well as its wholly-owned and controlled subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Foreign Currency Translation Our international subsidiaries generally consider their local currency to be their functional currency. Assets and liabilities of these international subsidiaries are translated into U.S. dollars at quarter-end exchange rates and revenues and expenses are translated at average exchange rates during the quarter and year-to-date period. Foreign currency translation adjustments for the reported periods are included in accumulated other comprehensive loss in our condensed consolidated statements of comprehensive loss, and the cumulative effect is included in the stockholders' equity section of our condensed consolidated balance sheets. Realized gains and losses from currency exchange transactions are recorded in operating expenses in our condensed consolidated statements of operations and were not material to our consolidated results of operations in the three and six months ended June 30, 2016 or 2015. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates. Property and Equipment Property and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $6.8 million and $10.3 million as of June 30, 2016 and December 31, 2015, respectively. The following table summarizes our property and equipment (in thousands): June 30, 2016 December 31, 2015 Machinery and equipment $ 886 $ 5,706 Leasehold improvements 5,028 5,027 Computer equipment 1,713 1,727 Furniture and fixtures 129 131 Construction in progress 2,728 87 Property and equipment, gross 10,484 12,678 Less - accumulated depreciation and amortization (6,782 ) (10,271 ) Property and equipment, net $ 3,702 $ 2,407 On December 31, 2015, in connection with our decision to relocate our headquarters, we entered into a lease (the "Lease") for approximately 26,000 square feet of office space located in New York City. The term of the Lease commenced on August 1, 2016, the date we first occupied the leased premises. The Lease term expires on September 30, 2030, and we have an option to renew the term for an additional five years. The Lease contains customary default provisions that could result in the early termination of the Lease in the event the Company defaults under the terms and conditions of the Lease. As a result of our decision to relocate our headquarters, on January 1, 2016, we revised the estimated useful lives of our leasehold improvements at the leased premises in Tarrytown, New York. The remaining amortization period of our leasehold improvements was shortened from 5 years (original lease expiring in December 2020) to 7 months (based on our relocation in August 2016). During the six months ended June 30, 2016, we recognized incremental amortization expense of $1.1 million related to our leasehold improvements. On May 6, 2016, we entered into an assignment and assumption agreement with BMR-Landmark at Eastview LLC (the "Landlord") and Regeneron Pharmaceuticals, Inc. ("Regeneron") pursuant to which we assigned to Regeneron the amended and restated lease agreement dated as of October 28, 2009 between the Landlord and us for our headquarters at 771 Old Saw Mill River Road, Tarrytown, New York.

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 2. New Accounting Pronouncements Recently Adopted In September 2015, the FASB issued ASU No. 2015-16 ("ASU 2015-16"), Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments Not Yet Adopted In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606)

Business Acquisition

Business Acquisition	6 Months Ended
	Jun. 30, 2016
Business Acquisition [Abstract]
Business Acquisition	Note 3. Business Acquisition Acquisition of EXINI Diagnostics AB On November 12, 2015, we acquired 92.45% of the outstanding shares of EXINI, a Lund, Sweden based leader in the development of advanced imaging analysis tools and solutions for medical decision support. EXINI's operations are included in our condensed consolidated financial statements beginning November 12, 2015, the date we acquired control. Through the end of the extended acceptance period of November 20, 2015, we acquired additional outstanding shares and, as of June 30, 2016, we own 96.81% of the voting shares of EXINI. We commenced a judicial process in Sweden for acquiring the remaining shares and EXINI was delisted and ceased to be publicly traded effective as of the close of trading on December 4, 2015. EXINI complements our strategy by supporting our imaging and therapeutic agents with sophisticated analytical tools and other technologies that help physicians and patients visualize, understand, target, and treat cancer. The acquisition provides us with in-house development capabilities in these areas that we can apply to our own pipeline, including our prostate cancer imaging agents 1404 and PyL. During the year ended December 31, 2015, we incurred $391 thousand in transaction costs related to the acquisition, which primarily consisted of legal, accounting, and valuation-related expenses. The transaction costs were recorded in general and administrative expenses in our consolidated statements of operations. Purchase Price Allocation We accounted for the EXINI acquisition as a business combination by allocating the consideration we paid to the fair values of the assets acquired, liabilities assumed, and noncontrolling interests at the effective date of the acquisition. Acquired intangible assets, including goodwill, are not deductible for tax purposes. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date (amounts in thousands): Amount Cash and cash equivalents $ 7 Accounts receivable 18 Other current assets 108 Property and equipment, net 22 Accounts payable and accrued expenses (807 ) Other current liabilities (127 ) Intangible assets – technology 2,120 Total identifiable net assets 1,341 Noncontrolling interests (504 ) Goodwill 5,372 Total consideration transferred $ 6,209

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2016
Net Loss Per Share [Abstract]
Net Loss Per Share	Note 4. Net Loss Per Share Our basic net loss per share attributable to Progenics amounts have been computed by dividing net loss attributable to Progenics by the weighted-average number of common shares outstanding during the period. For all periods presented, the diluted net loss per share is the same as basic net loss per share as the inclusion of other shares of stock issuable pursuant to stock options and contingent consideration would be anti-dilutive. The following table summarizes anti-dilutive common shares that were excluded from the calculation of diluted loss per share (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Stock options 5,796 6,705 5,604 6,483 Contingent consideration liability 4,059 3,025 4,219 2,966 Total anti-dilutive securities 9,855 9,730 9,823 9,449

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 5. Fair Value Measurements To estimate the fair values of our financial assets and liabilities, we use valuation approaches within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is divided into three levels based on the source of inputs as follows: · Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access · Level 2 – Valuations for which all significant inputs are observable, either directly or indirectly, other than Level 1 inputs · Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used for measuring fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level of input used that is significant to the overall fair value measurement. We believe the carrying amounts of our cash equivalents, accounts receivable, other current assets, other assets, accounts payable and accrued expenses approximated their fair values as of June 30, 2016 and December 31, 2015. We record the contingent consideration liability resulting from our acquisition of Molecular Insight Pharmaceuticals, Inc. ("MIP") at fair value in accordance with Accounting Standards Codification ("ASC") 820 (Topic 820, Fair Value Measurement The following tables summarize each major class of our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated, classified by valuation hierarchy (in thousands): Fair Value Measurements at June 30, 2016 Balance at June 30, 2016 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 $ 58,587 $ 58,587 $ - $ - Total assets $ 58,587 $ 58,587 $ - $ - Liabilities: Contingent consideration liability $ 19,600 $ - $ - $ 19,600 Total liabilities $ 19,600 $ - $ - $ 19,600 Fair Value Measurements at December 31, 2015 Balance at December 31, 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 $ 68,140 $ 68,140 $ - $ - Total assets $ 68,140 $ 68,140 $ - $ - Liabilities: Contingent consideration liability $ 18,800 $ - $ - $ 18,800 Total liabilities $ 18,800 $ - $ - $ 18,800 The estimated fair value of the contingent consideration liability of $19.6 million as of June 30, 2016, represents future potential milestone payments to former MIP stockholders. We consider 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 are 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. We record the contingent consideration liability at fair value with changes in estimated fair values recorded in change in contingent consideration liability in our condensed consolidated statements of operations. The following table summarizes quantitative information and assumptions pertaining to the fair value measurement of the Level 3 inputs at June 30, 2016 and December 31, 2015 (in thousands). The increase in the contingent consideration liability of $800 thousand during the six months ended June 30, 2016 was primarily attributable to a decrease in the discount period. Fair Value at June 30, 2016 December 31, 2015 Valuation Technique Unobservable Input Range (Weighted-Average) Contingent Consideration Liability: AZEDRA commercialization $ 2,600 $ 2,500 Probability adjusted discounted cash flow model Probability of success 40% Period of expected milestone achievement 2018 Discount rate 10% 1404 commercialization 4,400 4,200 Probability adjusted discounted cash flow model Probability of success 59% Period of expected milestone achievement 2019 Discount rate 10% 1095 commercialization 500 500 Probability adjusted discounted cash flow model Probability of success 19% Period of expected milestone achievement 2023 Discount rate 10% Net sales targets 12,100 11,600 Monte-Carlo simulation Probability of success 19%- 59% (37%) Period of expected milestone achievement 2019-2022 at June 30, 2016 2019-2025 at December 31, 2015 Discount rate (1) 11%/4.3% at June 30, 2016 12%/3.5% at December 31, 2015 Total $ 19,600 $ 18,800 (1) T he contingent consideration liability related to the net sales targets was derived from a model under a risk neutral framework resulting in the application of 11 % and 4.3 % at June 30, 2016 and 12 % and 3.5 % at December 31, 2015, discount rates to estimated cash flows. For those financial instruments with significant Level 3 inputs, the following tables summarize 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, 2016 2015 Balance at beginning of period $ 19,000 $ 17,500 Fair value change included in net loss 600 800 Balance at end of period $ 19,600 $ 18,300 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 $ 600 $ 800 Liability – Contingent Consideration Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Six Months Ended June 30, 2016 2015 Balance at beginning of period $ 18,800 $ 17,200 Fair value change included in net loss 800 1,100 Balance at end of period $ 19,600 $ 18,300 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 $ 1,100 Note 6. Accounts Receivable

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 30, 2016
Accounts Receivable [Abstract]
Loans, Notes, Trade and Other Receivables Disclosure	Our accounts receivable represent amounts due to us from collaborators, royalties, and sales of research reagents, and consisted of the following at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Royalties $ 2,380 $ 3,463 Collaborators 1,172 63 Other 11 27 Accounts receivable, gross 3,563 3,553 Less - Allowance for doubtful accounts - (10 ) Accounts receivable, net $ 3,563 $ 3,543

Goodwill, In-Process Research a

Goodwill, In-Process Research and Development, and Other Intangible Assets	6 Months Ended
	Jun. 30, 2016
Goodwill, In-Process Research and Development and Other Intangible Assets [Abstract]
In-Process Research and Development and Goodwill	Note 7. Goodwill, In-Process Research and Development, and Other Intangible Assets The fair values of in-process research and development ("IPR&D") and other identified intangible assets acquired in business combinations are capitalized. We utilize 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 or "replacement costs", whichever is greater. 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 IPR&D project and other identified intangible assets, independently. IPR&D 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. Other identified intangible assets, which include the technology asset acquired as part of the EXINI business combination, are amortized over the relevant estimated useful life. The IPR&D assets are tested for impairment at least annually or when a triggering event occurs that could indicate a potential impairment and any impairment loss is recognized in our condensed consolidated statements of operations. 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. We determine whether goodwill may be impaired by comparing the fair value of the reporting unit (we have determined that we have 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, our total stockholders' equity). No goodwill impairment has been recognized as of June 30, 2016 or 2015. The following tables summarize the activity related to our goodwill and intangible assets (in thousands): Goodwill IPR&D Other Intangible Assets Balance at January 1, 2016 $ 13,074 $ 28,700 $ 2,093 Amortization expense - - (106 ) Impairment - - - Balance at June 30, 2016 $ 13,074 $ 28,700 $ 1,987 Goodwill IPR&D Other Intangible Assets Balance at January 1, 2015 $ 7,702 $ 28,700 $ - Amortization expense - - - Impairment - - - Balance at June 30, 2015 $ 7,702 $ 28,700 $ -

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2016
Accounts Payable and Accrued Expenses [Abstract]
Accounts Payable and Accrued Expenses	Note 8. Accrued Expenses The carrying value of our accrued expenses approximates fair value as it represents amounts that will be satisfied within one year. Accrued expenses consisted of the following at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Accrued consulting and clinical trial costs $ 3,738 $ 2,844 Accrued payroll and related costs 2,201 1,961 Accrued legal and professional fees 3,574 3,605 Other 2,539 802 Accrued expenses $ 12,052 $ 9,212

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 9. Commitments and Contingencies We are or may be from time to time involved in various other disputes, governmental and/or regulatory inspections, inquiries, 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 us, our results of operations, financial condition, and cash flows. In each of the matters described in this filing or in Note 10. Commitments and Contingencies Former Employee Litigation We are a party to a proceeding brought by a former employee on November 2, 2010 in the U.S. District Court for the Southern District of New York, complaining that we had violated the anti-retaliation provisions of the Federal Sarbanes-Oxley law by terminating the former employee. The former employee seeks reinstatement of his employment, compensatory damages, and certain costs and fees associated with the litigation. 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, on July 31, 2015, the jury awarded the former employee approximately $1.66 million in compensatory damages (held in escrow by the District Court and recorded as restricted cash in other current assets on our condensed consolidated balance sheet) 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 (inclusive of the $1.66 million held in escrow). 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, has yet to be determined, there is a reasonable possibility that additional losses may be incurred. We have moved for a new trial or, in the alternative, for remittitur and continue to assess the verdict and our options in the case, including a potential appeal. Abbreviated New Drug Application Litigations On October 7, 2015, Progenics, Valeant, and Wyeth LLC (Valeant's predecessor as licensee of RELISTOR) received notification of a Paragraph IV certification for certain patents for RELISTOR subcutaneous injection, which are listed in the FDA's Approved Drug Products with Therapeutic Equivalence Evaluations, or the Orange Book. The certification resulted from the filing by Mylan Pharmaceuticals, Inc. of an Abbreviated New Drug Application ("ANDA") with the FDA, challenging such patents for RELISTOR subcutaneous injection and seeking to obtain approval to market a generic version of RELISTOR subcutaneous injection before some or all of these patents expire. On October 28, 2015, Progenics, Valeant, and Wyeth LLC received a second notification of a Paragraph IV certification with respect to the same patents for RELISTOR subcutaneous injection from Actavis LLC as a result of Actavis LLC's filing of an ANDA with the FDA, also challenging these patents and seeking to obtain approval to market a generic version of RELISTOR subcutaneous injection before some or all of these patents expire. In accordance with the Drug Price Competition and Patent Term Restoration Act (commonly referred to as the Hatch-Waxman Act), we and Valeant timely commenced litigation against each of these ANDA filers in order to obtain an automatic stay of FDA approval of the ANDA until the earlier of (i) 30 months from receipt of the notice or (ii) a District Court decision finding that the identified patents are invalid, unenforceable or not infringed. In addition to the aforementioned ANDA notifications, in October 2015, we received notices of opposition to three European patents relating to methylnaltrexone. The oppositions were filed separately by each of Actavis Group PTC ehf. and Fresenius Kabi Deutschland GmbH. Each of the ANDA litigation proceedings is in its early stages and we and Valeant continue to cooperate closely to vigorously defend and enforce RELISTOR intellectual property rights. Pursuant to the RELISTOR license agreement between us and Valeant, Valeant has the first right to enforce the intellectual property rights at issue and is responsible for the costs of such enforcement.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity [Abstract]
Stockholders' Equity	Note 10. Stockholders' Equity Common Stock and Preferred Stock We are authorized to issue 160.0 million shares of our common stock, par value $0.0013, and 20.0 million shares of preferred stock, par value $0.001. The Board of Directors (the "Board") has the authority to issue common and preferred shares, in series, with rights and privileges as determined by the Board. Public Equity Offering During the first quarter of 2014, we established a $150.0 million replacement shelf registration statement, which we used for our February 2014 underwritten public offering of 8.75 million shares of common stock at a public offering price of $4.60 per share, resulting in net proceeds of approximately $37.5 million. We may utilize this shelf registration for the issuance of up to approximately $110.0 million of additional common stock and other securities, including up to $50.0 million of our common stock under an agreement with an investment bank providing for at-the-market sales through the bank. All sales of shares have been and will continue to be made pursuant to an effective shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission. Accumulated Other Comprehensive Loss The following table summarizes the components of accumulated other comprehensive loss ("AOCL") at June 30, 2016 (in thousands): Foreign Currency Translation AOCL Balance at January 1, 2016 $ (26 ) $ (26 ) Foreign currency translation adjustment (38 ) (38 ) Balance at June 30, 2016 $ (64 ) $ (64 ) We did not have any reclassifications out of AOCL to losses during the six months ended June 30, 2016 or 2015.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Share-Based Payment Arrangements [Abstract]
Share-Based Payment Arrangements	Note 11. Stock-Based Compensation Equity Incentive Plans We adopted the following stockholder-approved equity incentive plans: · The 1996 Amended Stock Incentive Plan (the "1996 Plan") authorized the issuance of up to 5,000,000 shares of our common stock covering several different types of awards, including stock options, restricted shares, stock appreciation rights, performance shares, and phantom stock. The 1996 Plan was terminated in 2006. Options granted before termination of the 1996 Plan will continue to remain outstanding until exercised, cancelled, or expired. · The 2005 Stock Incentive Plan (the "2005 Plan"), pursuant to which we are authorized to issue up to 11,450,000 shares of common stock covering several different types of awards, including stock options, restricted shares, stock appreciation rights, performance shares, and phantom stock. The 2005 Plan will terminate on March 25, 2024. The stock option plans provide that options may be granted at an exercise price of 100% of fair market value of our common stock on the date of grant, may be exercised in full or in installments, at the discretion of the Board or its Compensation Committee (the "Compensation Committee"), and must be exercised within ten years from date of grant. Stock options generally vest pro rata over three to five years. We recognize stock-based compensation expense on a straight-line basis over the requisite service (vesting) period based on fair values. We use historical data to estimate expected employee behaviors related to option exercises and forfeitures and included these expected forfeitures as a part of the estimate of stock-based compensation expense as of the grant date. We adjust the total amount of stock-based compensation expense recognized for each award, in the period in which each award vests, to reflect the actual forfeitures related to that award. Changes in our estimated forfeiture rate will result in changes in the rate at which compensation cost for an award is recognized over its vesting period. Stock Options The following table summarizes stock options activity for the six months ended June 30, 2016 (in thousands, except per share data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Outstanding at January 1, 2016 5,134 $ 9.05 5.69 Granted 1,112 4.58 Exercised (2 ) 4.70 Cancelled (362 ) 6.03 Expired (65 ) 27.57 Outstanding at June 30, 2016 5,817 $ 8.18 6.05 Exercisable at June 30, 2016 4,244 $ 9.19 4.88 Vested and expected to vest at June 30, 2016 5,503 $ 8.33 5.86 The weighted average fair value of options granted during the three and six months ended June 30, 2016 was $3.33 and $3.12 per share, respectively and during the three and six months ended June 30, 2015 was $5.00 and $4.82 per share, respectively. The total intrinsic value (the excess of the market price over the exercise price) was approximately $13 thousand for stock options outstanding, exercisable, and vested and expected to vest as of June 30, 2016. The total intrinsic value for stock options exercised during the three and six months ended June 30, 2016 was approximately $1 thousand and during the three and six months ended June 30, 2015 was approximately $26 thousand and $46 thousand, respectively. We do not expect to realize any tax benefits from our stock option activity or the recognition of stock-based compensation expense, because we currently have net operating losses and have a full valuation allowance against our deferred tax assets. Accordingly, no amounts related to windfall tax benefits have been reported in cash flows from operations or cash flows from financing activities for the six months ended June 30, 2016 and 2015. Stock-Based Compensation Expense We account for stock-based awards issued to employees in accordance with the provisions of ASC 718 (Topic 718, Compensation – Stock Compensation Equity We estimated the fair value of the stock options granted on the date of grant using a Black-Scholes valuation model that used the weighted average assumptions noted in the following table. The risk-free interest rate assumption we use is based upon United States Treasury interest rates appropriate for the expected life of the awards. The expected life (estimated period of time that we expect employees, directors, and consultants to hold their stock options) was estimated based on historical rates for three group classifications, (i) employees, (ii) outside directors and officers, and (iii) consultants. Expected volatility was based on historical volatility of our stock price for a period equal to the stock option's expected life and calculated on a daily basis. The expected dividend rate is zero since we do not currently pay cash dividends on our common stock and do not anticipate doing so in the foreseeable future. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Risk-free interest rate 1.51% 2.29% 1.54% 1.99% Expected life (in years) 7.20 7.33 6.79 6.84 Expected volatility 72% 84% 74% 81% Expected dividend yield - - - - Stock-based compensation expense for the three and six months ended June 30, 2016 and 2015 was recorded in our condensed consolidated statement of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Research and development expenses $ 174 $ 366 $ 449 $ 756 General and administrative expenses 786 1,088 1,087 1,455 Total stock-based compensation expense $ 960 $ 1,454 $ 1,536 $ 2,211 At June 30, 2016, unrecognized stock-based compensation expense related to stock options was approximately $4.0 million and is expected to be recognized over a weighted average period of approximately 2.8 years.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2016
Subsequent Event [Abstract]
Subsequent Event	Note 12. Subsequent Event On July 19, 2016, the FDA approved RELISTOR Tablets for the treatment of OIC in adults with chronic non-cancer pain, which entitled us to a $50 million development milestone payment from Valeant pursuant to the RELISTOR license agreement. We received the development milestone payment on July 25, 2016.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Business	Business Progenics Pharmaceuticals, Inc. and its subsidiaries ("the Company," "Progenics," "we," or "us") develops innovative medicines for targeting and treating cancer, with a pipeline that includes several product candidates in later-stage clinical development. These products in development include therapeutic agents designed to precisely target cancer (AZEDRA ® TM Note 3. Business Acquisition. We licensed our first commercial drug, RELISTOR ® Our current principal sources of revenue from operations are royalty, development and commercialization milestones, and sublicense revenue-sharing payments from Valeant relating to RELISTOR. 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. Under the agreement with Bayer, we received an upfront payment of $4 million and could receive up to an additional $49 million in potential clinical and regulatory development milestones. We are also entitled to single digit royalties on net sales, and potential net sales milestone payments up to an aggregate total of $130 million. During the second quarter of 2016, we recognized collaboration revenue of $5 million, of which $4 million related to the upfront payment and $1 million related to the achievement of a preclinical development milestone. We determined that the exclusive rights of the license agreement had standalone value and, accordingly, we recognized revenue for the upfront payment immediately (upon receipt in April 2016). We commenced principal operations in 1988, became publicly traded in 1997, and throughout have 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 U.S. operations are presently conducted at our new facility in New York, New York, and our international operations are conducted at our facilities in Lund, Sweden. We operate under a single research and development business segment.
Liquidity	Liquidity At June 30, 2016, we had $60.1 million of cash and cash equivalents, a decrease of $14.0 million from $74.1 million at December 31, 2015. We expect that this amount, together with the milestone payment of $50.0 million from Valeant (See additional information in Note 12. Subsequent Event
Basis of Presentation	Basis of Presentation Our interim condensed 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 U.S. ("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 condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2015. 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 prior period amounts in our condensed consolidated financial statements have been reclassified to conform to the current period presentation. Accounts payable, which was historically combined with accrued expenses on our consolidated balance sheet, has been presented as a separate line item for all periods presented in these unaudited condensed consolidated financial statements.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Progenics as well as its wholly-owned and controlled subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation.
Foreign Currency Transaction	Foreign Currency Translation Our international subsidiaries generally consider their local currency to be their functional currency. Assets and liabilities of these international subsidiaries are translated into U.S. dollars at quarter-end exchange rates and revenues and expenses are translated at average exchange rates during the quarter and year-to-date period. Foreign currency translation adjustments for the reported periods are included in accumulated other comprehensive loss in our condensed consolidated statements of comprehensive loss, and the cumulative effect is included in the stockholders' equity section of our condensed consolidated balance sheets. Realized gains and losses from currency exchange transactions are recorded in operating expenses in our condensed consolidated statements of operations and were not material to our consolidated results of operations in the three and six months ended June 30, 2016 or 2015.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates.
Property and Equipment	Property and Equipment Property and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $6.8 million and $10.3 million as of June 30, 2016 and December 31, 2015, respectively. The following table summarizes our property and equipment (in thousands): June 30, 2016 December 31, 2015 Machinery and equipment $ 886 $ 5,706 Leasehold improvements 5,028 5,027 Computer equipment 1,713 1,727 Furniture and fixtures 129 131 Construction in progress 2,728 87 Property and equipment, gross 10,484 12,678 Less - accumulated depreciation and amortization (6,782 ) (10,271 ) Property and equipment, net $ 3,702 $ 2,407 On December 31, 2015, in connection with our decision to relocate our headquarters, we entered into a lease (the "Lease") for approximately 26,000 square feet of office space located in New York City. The term of the Lease commenced on August 1, 2016, the date we first occupied the leased premises. The Lease term expires on September 30, 2030, and we have an option to renew the term for an additional five years. The Lease contains customary default provisions that could result in the early termination of the Lease in the event the Company defaults under the terms and conditions of the Lease. As a result of our decision to relocate our headquarters, on January 1, 2016, we revised the estimated useful lives of our leasehold improvements at the leased premises in Tarrytown, New York. The remaining amortization period of our leasehold improvements was shortened from 5 years (original lease expiring in December 2020) to 7 months (based on our relocation in August 2016). During the six months ended June 30, 2016, we recognized incremental amortization expense of $1.1 million related to our leasehold improvements. On May 6, 2016, we entered into an assignment and assumption agreement with BMR-Landmark at Eastview LLC (the "Landlord") and Regeneron Pharmaceuticals, Inc. ("Regeneron") pursuant to which we assigned to Regeneron the amended and restated lease agreement dated as of October 28, 2009 between the Landlord and us for our headquarters at 771 Old Saw Mill River Road, Tarrytown, New York.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Property, Plant and Equipment	Property and Equipment Property and equipment is recorded at historical cost, net of accumulated depreciation and amortization of $6.8 million and $10.3 million as of June 30, 2016 and December 31, 2015, respectively. The following table summarizes our property and equipment (in thousands): June 30, 2016 December 31, 2015 Machinery and equipment $ 886 $ 5,706 Leasehold improvements 5,028 5,027 Computer equipment 1,713 1,727 Furniture and fixtures 129 131 Construction in progress 2,728 87 Property and equipment, gross 10,484 12,678 Less - accumulated depreciation and amortization (6,782 ) (10,271 ) Property and equipment, net $ 3,702 $ 2,407

Business Acquisition (Tables)

Business Acquisition (Tables)	6 Months Ended
	Jun. 30, 2016
Business Acquisition [Abstract]
Schedule of Purchase Price Allocation	The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date (amounts in thousands): Amount Cash and cash equivalents $ 7 Accounts receivable 18 Other current assets 108 Property and equipment, net 22 Accounts payable and accrued expenses (807 ) Other current liabilities (127 ) Intangible assets – technology 2,120 Total identifiable net assets 1,341 Noncontrolling interests (504 ) Goodwill 5,372 Total consideration transferred $ 6,209

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Net Loss Per Share [Abstract]
Schedule of Antidilutive Common Shares Excluded from Computation of Diluted Earnings per Share	The following table summarizes anti-dilutive common shares that were excluded from the calculation of diluted loss per share (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Stock options 5,796 6,705 5,604 6,483 Contingent consideration liability 4,059 3,025 4,219 2,966 Total anti-dilutive securities 9,855 9,730 9,823 9,449

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables summarize each major class of our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated, classified by valuation hierarchy (in thousands): Fair Value Measurements at June 30, 2016 Balance at June 30, 2016 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 $ 58,587 $ 58,587 $ - $ - Total assets $ 58,587 $ 58,587 $ - $ - Liabilities: Contingent consideration liability $ 19,600 $ - $ - $ 19,600 Total liabilities $ 19,600 $ - $ - $ 19,600 Fair Value Measurements at December 31, 2015 Balance at December 31, 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 $ 68,140 $ 68,140 $ - $ - Total assets $ 68,140 $ 68,140 $ - $ - Liabilities: Contingent consideration liability $ 18,800 $ - $ - $ 18,800 Total liabilities $ 18,800 $ - $ - $ 18,800
Quantitative Information for Fair Value Measurement of Level 3	The following table summarizes quantitative information and assumptions pertaining to the fair value measurement of the Level 3 inputs at June 30, 2016 and December 31, 2015 (in thousands). The increase in the contingent consideration liability of $800 thousand during the six months ended June 30, 2016 was primarily attributable to a decrease in the discount period. Fair Value at June 30, 2016 December 31, 2015 Valuation Technique Unobservable Input Range (Weighted-Average) Contingent Consideration Liability: AZEDRA commercialization $ 2,600 $ 2,500 Probability adjusted discounted cash flow model Probability of success 40% Period of expected milestone achievement 2018 Discount rate 10% 1404 commercialization 4,400 4,200 Probability adjusted discounted cash flow model Probability of success 59% Period of expected milestone achievement 2019 Discount rate 10% 1095 commercialization 500 500 Probability adjusted discounted cash flow model Probability of success 19% Period of expected milestone achievement 2023 Discount rate 10% Net sales targets 12,100 11,600 Monte-Carlo simulation Probability of success 19%- 59% (37%) Period of expected milestone achievement 2019-2022 at June 30, 2016 2019-2025 at December 31, 2015 Discount rate (1) 11%/4.3% at June 30, 2016 12%/3.5% at December 31, 2015 Total $ 19,600 $ 18,800 (1) T he contingent consideration liability related to the net sales targets was derived from a model under a risk neutral framework resulting in the application of 11 % and 4.3 % at June 30, 2016 and 12 % and 3.5 % at December 31, 2015, 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 tables summarize 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, 2016 2015 Balance at beginning of period $ 19,000 $ 17,500 Fair value change included in net loss 600 800 Balance at end of period $ 19,600 $ 18,300 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 $ 600 $ 800 Liability – Contingent Consideration Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Six Months Ended June 30, 2016 2015 Balance at beginning of period $ 18,800 $ 17,200 Fair value change included in net loss 800 1,100 Balance at end of period $ 19,600 $ 18,300 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 $ 1,100 Note 6. Accounts Receivable

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2016
Accounts Receivable [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Our accounts receivable represent amounts due to us from collaborators, royalties, and sales of research reagents, and consisted of the following at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Royalties $ 2,380 $ 3,463 Collaborators 1,172 63 Other 11 27 Accounts receivable, gross 3,563 3,553 Less - Allowance for doubtful accounts - (10 ) Accounts receivable, net $ 3,563 $ 3,543

Goodwill, In-Process Research26

Goodwill, In-Process Research and Development, and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill, In-Process Research and Development and Other Intangible Assets [Abstract]
Activity Related to Goodwill and Indefinite Lived Intangible Assets	The following tables summarize the activity related to our goodwill and intangible assets (in thousands): Goodwill IPR&D Other Intangible Assets Balance at January 1, 2016 $ 13,074 $ 28,700 $ 2,093 Amortization expense - - (106 ) Impairment - - - Balance at June 30, 2016 $ 13,074 $ 28,700 $ 1,987 Goodwill IPR&D Other Intangible Assets Balance at January 1, 2015 $ 7,702 $ 28,700 $ - Amortization expense - - - Impairment - - - Balance at June 30, 2015 $ 7,702 $ 28,700 $ -

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2016
Accounts Payable and Accrued Expenses [Abstract]
Schedule of Accounts Payable and Accrued Expenses	The carrying value of our accrued expenses approximates fair value as it represents amounts that will be satisfied within one year. Accrued expenses consisted of the following at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Accrued consulting and clinical trial costs $ 3,738 $ 2,844 Accrued payroll and related costs 2,201 1,961 Accrued legal and professional fees 3,574 3,605 Other 2,539 802 Accrued expenses $ 12,052 $ 9,212

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity [Abstract]
Comprehensive Income (Loss)	Accumulated Other Comprehensive Loss The following table summarizes the components of accumulated other comprehensive loss ("AOCL") at June 30, 2016 (in thousands): Foreign Currency Translation AOCL Balance at January 1, 2016 $ (26 ) $ (26 ) Foreign currency translation adjustment (38 ) (38 ) Balance at June 30, 2016 $ (64 ) $ (64 ) We did not have any reclassifications out of AOCL to losses during the six months ended June 30, 2016 or 2015.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Share-Based Payment Arrangements [Abstract]
Summary of Option Activity under the Plans	Stock Options The following table summarizes stock options activity for the six months ended June 30, 2016 (in thousands, except per share data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Outstanding at January 1, 2016 5,134 $ 9.05 5.69 Granted 1,112 4.58 Exercised (2 ) 4.70 Cancelled (362 ) 6.03 Expired (65 ) 27.57 Outstanding at June 30, 2016 5,817 $ 8.18 6.05 Exercisable at June 30, 2016 4,244 $ 9.19 4.88 Vested and expected to vest at June 30, 2016 5,503 $ 8.33 5.86
Assumptions Used in Computing the Fair Value of Option Grants	Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Risk-free interest rate 1.51% 2.29% 1.54% 1.99% Expected life (in years) 7.20 7.33 6.79 6.84 Expected volatility 72% 84% 74% 81% Expected dividend yield - - - -
Compensation Expense of Shares, Granted to Both Employees and Non-Employees	Stock-based compensation expense for the three and six months ended June 30, 2016 and 2015 was recorded in our condensed consolidated statement of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Research and development expenses $ 174 $ 366 $ 449 $ 756 General and administrative expenses 786 1,088 1,087 1,455 Total stock-based compensation expense $ 960 $ 1,454 $ 1,536 $ 2,211

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Licenses Revenue		$ 6,073	$ 145	$ 6,315	$ 210
Funding and Financial Matters [Abstract]
Cash and cash equivalents at end of period		60,146	$ 99,309	60,146	99,309	$ 74,103	$ 119,302
Decrease in cash and cash equivalents		$ (13,957)		(13,957)	$ (19,993)
Minimum number of years cash will fund operations		1 year
Incremental amortization of leasehold improvements				1,073
Property and Equipment [Line Items]
Fixed assets, gross		$ 10,484		10,484		12,678
Less - accumulated depreciation		(6,782)		(6,782)		(10,271)
Fixed assets, total		3,702		3,702		2,407
Salix [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Licenses Revenue	$ 50,000
Bayer [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
License upfront payment receivable		4,000		4,000
Potential clinical and regulatory development milestones		49,000		49,000
Potential net sales milestones		130,000		130,000
Licenses Revenue		5,000
Collaboration revenue receivable		1,000		1,000
Machinery and Equipment [Member]
Property and Equipment [Line Items]
Fixed assets, gross		886		886		5,706
Leasehold Improvements [Member]
Property and Equipment [Line Items]
Fixed assets, gross		5,028		5,028		5,027
Computer Equipment [Member]
Property and Equipment [Line Items]
Fixed assets, gross		1,713		1,713		1,727
Furniture and Fixtures [Member]
Property and Equipment [Line Items]
Fixed assets, gross		129		129		131
Construction in Progress and Other [Member]
Property and Equipment [Line Items]
Fixed assets, gross		$ 2,728		$ 2,728		$ 87

Business Acquisition (Details)

Business Acquisition (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Nov. 12, 2015	Jun. 30, 2015	Dec. 31, 2014
Assets Acquired and Liabilities Assumed [Abstract]
Goodwill	$ 13,074	$ 13,074		$ 7,702	$ 7,702
EXINI [Member]
Business Acquisition [Abstract]
Percentage of voting interests acquired	96.81%		92.45%
Assets Acquired and Liabilities Assumed [Abstract]
Cash and cash equivalents			$ 7
Accounts receivable			18
Other current assets			108
Property and equipment, net			22
Accounts payable and accrued expenses			(807)
Other current liabilities			(127)
Intangible assets - technology			2,120
Total identifiable net assets			1,341
Noncontrolling interests			(504)
Goodwill			5,372
Total consideration transferred			$ 6,209
EXINI [Member] | General and Administrative Expenses [Member]
Business Acquisition [Abstract]
Transaction costs		$ 391

Net Loss Per Share (Details)

Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number (in shares)	9,855	9,730	9,823	9,449
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number (in shares)	5,796	6,705	5,604	6,483
Contingent Consideration Liability [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number (in shares)	4,059	3,025	4,219	2,966

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	$ 19,600	$ 18,800
Money Market Funds	58,587	68,140
Asset, total	58,587	68,140
Liability, total	19,600	18,800
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
Money Market Funds	58,587	68,140
Asset, total	58,587	68,140
Liability, total	0	0
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
Money Market Funds	0	0
Asset, total	0	0
Liability, total	0	0
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability	19,600	18,800
Money Market Funds	0	0
Asset, total	0	0
Liability, total	$ 19,600	$ 18,800

Fair Value Measurements, Quanti

Fair Value Measurements, Quantitative Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Summary of activities in financial instruments with significant Level 3 inputs [Roll Forward]
Balance at beginning of period	$ 19,000	$ 17,500	$ 18,800	$ 17,200	$ 17,200
Fair value change included in net loss	600	800	800	1,100
Balance at end of period	19,600	18,300	19,600	18,300	18,800
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	600	800	800	1,100
Fair Value Measurements, Quantitative Information
Contingent consideration liability	19,600		19,600		18,800
Increase in contingent consideration liability	600	$ 800	800	$ 1,100
Fair Value	19,600		$ 19,600		$ 18,800
Azedra commercialization [Member]
Fair Value Measurements, Quantitative Information
Period of milestone expected achievement			2,018		2,018
Fair Value	2,600		$ 2,600		$ 2,500
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	4,400		$ 4,400		$ 4,200
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		$ 500
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	$ 12,100		$ 12,100		$ 11,600
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			4.30%		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			2,022		2,025
Discount rate			11.00%		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%

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, gross	$ 3,563	$ 3,553
Less - Allowance for doubtful accounts	0	(10)
Accounts receivable	3,563	3,543
Royalties [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	2,380	3,463
Collaborators [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	1,172	63
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 11	$ 27

Goodwill, In-Process Research36

Goodwill, In-Process Research and Development, and Other Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Goodwill [Roll Forward]
Goodwill	$ 13,074	$ 7,702
Goodwill - impairment	0	0
Goodwill	13,074	7,702
IPR&D [Member]
Indefinite-lived Intangible Assets [Line Items]
IPR&D	28,700	28,700
IPR&D - impairment	0	0
IPR&D	28,700	28,700
Finite-Lived Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	2,093	0
Finite-lived intangible assets - amortization expense	(106)	0
Finite-lived intangible assets - impairment	0	0
Finite-lived intangible assets	$ 1,987	$ 0

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts Payable and Accrued Expenses [Abstract]
Accrued consulting and clinical trial costs	$ 3,738	$ 2,844
Accrued payroll and related costs	2,201	1,961
Accrued legal and professional fees	3,574	3,605
Other	2,539	802
Accrued expenses	$ 12,052	$ 9,212

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Commitments and Contingencies [Abstract]
Damages awarded	$ 1,660

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2014	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Stockholders' Equity [Abstract]
Common stock, authorized (in shares)		160,000		160,000
Common stock, par value (in dollars per share)		$ 0.0013		$ 0.0013
Preferred stock, authorized (in shares)		20,000		20,000
Preferred stock, par value (in dollars per share)		$ 0.001		$ 0.001
Common stock sold in public offering (in shares)	8,750
Proceeds from public offering of common stock, net of underwriting discounts and commissions and offering expenses	$ 37,500
Common stock offering price (in dollars per share)	$ 4.60
Replacement shelf registration	$ 150,000
Proceeds from future sales of common stock under an agreement with investment bank			$ 50,000
Proceeds from future sales of common stock			$ 110,000
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Balance, beginning		$ 90,661
Balance, ending		73,838
AOCL [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Balance, beginning		(26)
Foreign currency translation adjustment		(38)
Balance, ending		(64)
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Balance, beginning		(26)
Foreign currency translation adjustment		(38)
Balance, ending		$ (64)

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of options granted (in dollars per share)	$ 3.33	$ 5	$ 3.12	$ 4.82
Total intrinsic value of options exercised	$ 1	$ 26	$ 1	$ 46
Total intrinsic value of options outstanding	13		13
Total intrinsic value of options exercisable	13		13
Share-based compensation arrangement by share-based payment award, options, vested and expected to vest, outstanding, aggregate intrinsic value	13		13
Total unrecognized compensation	$ 4,000		$ 4,000
Weighted average periods			2 years 9 months 18 days
Assumptions used in computing the fair value [Abstract]
Risk-free interest rate	1.51%	2.29%	1.54%	1.99%
Expected life	7 years 2 months 12 days	7 years 3 months 29 days	6 years 9 months 14 days	6 years 10 months 2 days
Expected volatility	72.00%	84.00%	74.00%	81.00%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Options, Outstanding [Roll Forward]
Outstanding - beginning balance (in shares)			5,134,000
Granted (in shares)	1,112,000
Exercised (in shares)	(2,000)
Cancelled (in shares)	(362,000)
Expired (in shares)	(65,000)
Outstanding - ending balance (in shares)	5,817,000		5,817,000		5,134,000
Exercisable (in shares)	4,244,000		4,244,000
Vested and expected to vest (in shares)	5,503,000		5,503,000
Weighted Average Exercise Price [Roll Forward]
Outstanding - beginning balance (in dollars per share)			$ 9.05
Granted (in dollars per share)	$ 4.58
Exercised (in dollars per share)	4.70
Cancelled (in dollars per share)	6.03
Expired (in dollars per share)	27.57
Outstanding - ending balance (in dollars per share)	8.18		8.18		$ 9.05
Exercisable (in dollars per share)	9.19		9.19
Vested and expected to vest (in dollars per share)	$ 8.33		$ 8.33
Weighted Average Remaining Contractual Term [Abstract]
Options outstanding	6 years 18 days				5 years 8 months 8 days
Options exercisable	4 years 10 months 17 days
Vested and expected to vest	5 years 10 months 10 days
1996 Amended Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance of awards (in shares)	5,000,000		5,000,000
2005 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance of awards (in shares)	11,450,000		11,450,000

Stock-Based Compensation, Alloc

Stock-Based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 960	$ 1,454	$ 1,536	$ 2,211
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	174	366	449	756
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 786	$ 1,088	$ 1,087	$ 1,455

Subsequent Event (Details)

Subsequent Event (Details) $ in Millions	Jul. 25, 2016USD ($)
Subsequent Event [Member] | Salix [Member]
Subsequent Event [Line Items]
License upfront payment receivable	$ 50