Vivus (VVUS) 10-Q 7 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 28, 2013
Document and Entity Information	'	'
Entity Registrant Name	'VIVUS INC	'
Entity Central Index Key	'0000881524	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	101,704,865
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$143,121	$58,605
Available-for-sale securities	203,328	155,981
Accounts receivable, net	6,589	2,778
Inventories	37,918	25,353
Prepaid expenses and other assets	20,680	19,159
Total current assets	411,636	261,876
Property and equipment, net	2,968	1,951
Non-current assets	7,874	287
Total assets	422,478	264,114
Current liabilities:	'	'
Accounts payable	17,730	25,375
Accrued and other liabilities	21,112	14,680
Deferred revenue	20,147	1,150
Total current liabilities	58,989	41,205
Long term debt	209,642	'
Total liabilities	268,631	41,205
Commitments and contingencies	'	'
Stockholders' equity:	'	'
Preferred stock; $1.00 par value; 5,000 shares authorized; no shares issued and outstanding	'	'
Common stock; $.001 par value; 200,000 shares authorized; 101,082 and 100,659 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively	101	101
Additional paid-in capital	797,092	708,921
Accumulated other comprehensive income	92	33
Accumulated deficit	-643,438	-486,146
Total stockholders' equity	153,847	222,909
Total liabilities and stockholders' equity	$422,478	$264,114

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Per Share data, unless otherwise specified
CONDENSED CONSOLIDATED BALANCE SHEETS	'	'
Preferred stock, par value (in dollars per share)	$1	$1
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	101,082	100,659
Common stock, shares outstanding	101,082	100,659

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue:	'	'	'	'
Net product revenue	$6,379	$41	$16,025	$41
License revenue	21,000	'	21,000	'
Total revenue	27,379	41	37,025	41
Operating expenses:	'	'	'	'
Cost of goods sold	741	4	1,703	4
Inventory impairment and commitment fee	0	'	10,225	'
Research and development	8,405	9,300	24,683	24,307
Selling, general and administrative	38,167	31,269	121,666	59,351
Non-recurring charges	20,743	'	24,667	'
Total operating expenses	68,056	40,573	182,944	83,662
Loss from operations	-40,677	-40,532	-145,919	-83,621
Interest and other expense (income):	'	'	'	'
Interest expense	7,674	'	11,786	3
Interest and other (income) expense, net	-5	-59	31	-133
Total interest and other expense (income)	7,669	-59	11,817	-130
Loss from continuing operations before income taxes	-48,346	-40,473	-157,736	-83,491
Provision for income taxes	33	3	46	13
Loss from continuing operations	-48,379	-40,476	-157,782	-83,504
Income from discontinued operations, net of tax	175	80	490	282
Net loss	($48,204)	($40,396)	($157,292)	($83,222)
Basic and diluted net loss per share:	'	'	'	'
Continuing operations (in dollars per share)	($0.48)	($0.40)	($1.56)	($0.85)
Discontinued operations (in dollars per share)	$0	$0	$0	$0
Net loss per share (in dollars per share)	($0.48)	($0.40)	($1.56)	($0.85)
Shares used in per share computation:	'	'	'	'
Basic and diluted (in shares)	100,904	100,438	100,769	97,505

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS	'	'	'	'
Net loss	($48,204)	($40,396)	($157,292)	($83,222)
Other comprehensive income:	'	'	'	'
Unrealized gain on securities, net of taxes	118	50	59	12
Comprehensive loss	($48,086)	($40,346)	($157,233)	($83,210)

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net loss from continuing operations	($157,782)	($83,504)
Adjustments to reconcile net loss to net cash used for operating activities from continuing operations:	'	'
Provision for cash discounts	'	10
Depreciation	673	124
Amortization of debt issuance costs and discounts	5,377	'
Amortization of discount or premium on available-for-sale securities	1,816	3,104
Share-based compensation expense	27,755	10,922
Loss on disposal of property and equipment	105	'
Inventory impairment	7,525	'
Changes in assets and liabilities:	'	'
Accounts receivable	-3,811	-73
Inventories	-19,623	-3,011
Prepaid expenses and other assets	-1,521	-13,319
Accounts payable	-7,850	9,627
Accrued and other liabilities	7,335	3,376
Deferred revenue	18,997	453
Net cash used for operating activities from continuing operations	-121,004	-72,291
Net cash used for operating activities from discontinued operations	-208	-839
Net cash used for operating activities	-121,212	-73,130
Cash flows from investing activities:	'	'
Property and equipment purchases	-1,795	-1,030
Purchases of available-for-sale securities	-230,854	-218,652
Proceeds from sales and maturities of available-for-sale securities	181,750	110,638
Non-current assets	-1,419	-282
Net cash used for investing activities	-52,318	-109,326
Cash flows from financing activities:	'	'
Net proceeds from debt issuances	290,247	'
Payments for capped call transactions	-34,709	'
Net proceeds from exercise of common stock options	2,000	13,054
Proceeds from sale of common stock through employee stock purchase plan	508	122
Net proceeds from issuance of common stock	'	192,000
Net cash provided by financing activities	258,046	205,176
Net increase in cash and cash equivalents	84,516	22,720
Cash and cash equivalents:	'	'
Beginning of period	58,605	39,554
End of period	$143,121	$62,274

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2013
BASIS OF PRESENTATION	'
BASIS OF PRESENTATION	'
	1. BASIS OF PRESENTATION
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. Management has evaluated all events and transactions that occurred after September 30, 2013 through the date these unaudited condensed consolidated financial statements were filed. There were no events or transactions during this period which require recognition or disclosure in these unaudited condensed consolidated financial statements, except as disclosed in Note 14. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed on February 26, 2013 and as amended by the Form 10-K/A filed on April 30, 2013 and by the Form 10-K/A filed on June 12, 2013, with the Securities and Exchange Commission, or SEC. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.
	When we refer to “we,” “our,” “us,” the “Company” or “VIVUS” in this document, we mean the current Delaware corporation, or VIVUS, Inc., and its California predecessor, as well as all of our consolidated subsidiaries.
	Reclassifications
	Certain prior year amounts in the unaudited condensed consolidated financial statements have been reclassified to conform to the current year presentation.
	Use of Estimates
	The preparation of these unaudited condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including critical accounting policies or estimates related to available-for-sale securities, debt instruments, research and development expenses, income taxes, inventories, revenues, contingencies and litigation and share-based compensation. The Company bases its estimates on historical experience, information received from third-parties and on various market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ significantly from those estimates under different assumptions or conditions.
	Revenue from Multiple Element Arrangements
	The Company accounts for multiple element arrangements, such as license and commercialization agreements in which a customer may purchase several deliverables, in accordance with ASC Topic 605-25, Revenue Recognition — Multiple-Element Arrangements, or ASC 605-25. The Company evaluates how the deliverables in an arrangement should be separated and how the consideration should be allocated. The Company allocates non-contingent consideration to each stand-alone deliverable based upon the relative selling price of each element. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor-specific objective evidence, or VSOE, of selling price, if it exists, or third-party evidence, or TPE, of selling price, if it exists. If neither VSOE nor TPE of selling price exist for a deliverable, the Company uses best estimated selling price, or BESP, for that deliverable. Revenue allocated to each element is then recognized based on when the following four basic revenue recognition criteria are met for each element: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the price is fixed or determinable; and (iv) collectability is reasonably assured.
	Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue the Company reports. Changes in assumptions or judgments, or changes to the elements in an arrangement, could cause a material increase or decrease in the amount of revenue that the Company reports in a particular period.
	ASC Topic 605-28, Revenue Recognition — Milestone Method, or ASC 605-28, established the milestone method as an acceptable method of revenue recognition for certain contingent, event-based payments under research and development arrangements. Under the milestone method, a payment that is contingent upon the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved. A milestone is an event: (i) that can be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from its performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved, and (iii) that would result in additional payments being due to the Company. The determination that a milestone is substantive requires judgment and is made at the inception of the arrangement. Milestones are considered substantive when the consideration earned from the achievement of the milestone is: (i) commensurate with either the Company’s performance to achieve the milestone, or the enhancement of value of the item delivered as a result of a specific outcome resulting from its performance to achieve the milestone, (ii) relates solely to past performance, and (iii) is reasonable, relative to all deliverables and payment terms in the arrangement.
	Other contingent, event-based payments received for which payment is either contingent solely upon the passage of time or the results of a collaborative partner’s performance are not considered milestones under ASC 605-28. In accordance with ASC 605-25, such payments will be recognized as revenue when all of the four basic revenue recognition criteria are met.
	Revenues recognized for royalty payments are recognized as earned in accordance with the terms of the license and commercialization agreements.
	Fair Value of Financial Instruments
	Financial instruments include cash equivalents, available-for-sale securities, accounts payable and accrued liabilities. Available-for-sale securities are carried at estimated fair value. The carrying value of cash equivalents, accounts payable and accrued liabilities approximate their estimated fair value due to the relatively short-term nature of these instruments.
	Debt instruments are initially recorded at fair value, with coupon interest and amortization of debt issuance discounts recognized in the statement of operations as interest expense at each period end while such instruments are outstanding. If the Company issues shares to discharge the liability, the debt obligation is derecognized and common stock and additional paid-in capital are recognized on the issuance of those shares.
	The Company’s Convertible Notes contain a conversion option which is classified as equity. The Company determined the fair value of the liability component of the debt instrument and allocated the excess amount from the initial proceeds to the conversion option. The fair value of the debt component was determined by estimating a risk adjusted interest rate, or market yield, at the time of issuance for similar notes that do not include the conversion feature, or equity component. This excess is reported as a debt discount and is amortized as non-cash interest expense, using the interest method, over the expected life of the Convertible Notes.
	Issuance costs related to the equity component of the Convertible Notes were charged to additional paid-in capital. The remaining portion related to the debt component is being amortized and recorded as additional interest expense over the expected life of the Convertible Notes. In connection with the issuance of the Convertible Notes, the Company entered into capped call transactions with certain counterparties affiliated to the underwriters. The fair value of the purchased capped calls was recorded to stockholders’ equity.
	Recent Accounting Pronouncements
	There have been no recent accounting pronouncements or changes in accounting pronouncements during the three and nine months ended September 30, 2013, as compared to the recent accounting pronouncements described in the Company’s Form 10-K for the year ended December 31, 2012, that are of significance, or potential significance to the Company.

SHAREBASED_COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2013
SHARE-BASED COMPENSATION	'
SHARE-BASED COMPENSATION	'
	2. SHARE-BASED COMPENSATION
	The Company accounts for share-based compensation arrangements in accordance with the Financial Accounting Standards Board, or FASB’s, Accounting Standards Codification, or ASC, topic 718, Compensation—Stock Compensation, or ASC 718.
	Total share-based compensation expense for all of the Company’s share-based awards is as follows (in thousands):
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Research and development	$	363	$	1,194	$	2,217	$	2,659
	Selling, general and administrative	2,740		3,486		12,822		8,263
	Non-recurring charges	12,716		—		12,716		—
	Share-based compensation expense	$	15,819	$	4,680	$	27,755	$	10,922
	On July 18, 2013, the Company entered into a settlement agreement with First Manhattan Company, or First Manhattan, in connection with a proxy contest related to our 2013 Annual Meeting of Stockholders. According to the terms of the settlement agreement, more than a majority of the members of the Company’s Board of Directors resigned and new members were appointed. The change in the majority of the members of the Company’s Board of Directors, effective July 19, 2013, triggered certain “change of control” benefits in accordance with the Amended and Restated Change of Control and Severance Agreements, or the Amended Agreements, with certain of the Company’s employees; specifically, all unvested stock options held by these employees automatically vested in full and became immediately exercisable. In accordance with ASC 718, all unamortized expense for options that were expected to vest on the date of grant and the modified fair value of the options that were not expected to vest on the date of grant (due to expected forfeitures) were immediately expensed. As a result, in the three months ended September 30, 2013, the Company recognized approximately $12.7 million in additional share-based compensation expense related to this event.
	Total share-based compensation cost capitalized as part of the cost of inventory is $75,000 and $467,000 for the three and nine months ended September 30, 2013, respectively.

CASH_CASH_EQUIVALENTS_AND_AVAI

CASH, CASH EQUIVALENTS AND AVAILABLE-FOR-SALE SECURITIES	9 Months Ended
	Sep. 30, 2013
CASH, CASH EQUIVALENTS AND AVAILABLE-FOR-SALE SECURITIES	'
CASH, CASH EQUIVALENTS AND AVAILABLE-FOR-SALE SECURITIES	'
	3. CASH, CASH EQUIVALENTS AND AVAILABLE-FOR-SALE SECURITIES
	The fair value and the amortized cost of cash, cash equivalents, and available-for-sale securities by major security type at September 30, 2013 and December 31, 2012 are presented in the tables that follow.
	As of September 30, 2013 (in thousands):
	Cash and cash equivalents and available-for-sale	Amortized			Gross		Gross		Estimated
	securities	Cost			Unrealized		Unrealized		Fair Value
					Gains		Losses
	Cash and money market funds	$	143,121		$	—	$	—	$	143,121
	U.S. Treasury securities	203,236			92		—		203,328
	Total	346,357			92		—		346,449
	Less amounts classified as cash equivalents	(143,121		)	—		—		(143,121		)
	Total available-for-sale securities	$	203,236		$	92	$	—	$	203,328
	As of December 31, 2012 (in thousands):
	Cash and cash equivalents and available-for-sale	Amortized			Gross		Gross		Estimated
	securities	Cost			Unrealized		Unrealized		Fair Value
					Gains		Losses
	Cash and money market funds	$	58,605		$	—	$	—	$	58,605
	U.S. Treasury securities	155,948			33		—		155,981
	Total	214,553			33		—		214,586
	Less amounts classified as cash equivalents	(58,605		)	—		—		(58,605		)
	Total available-for-sale securities	$	155,948		$	33	$	—	$	155,981
	As of September 30, 2013, the Company’s available-for-sale securities have original contractual maturities up to 23 months. However, the Company may or may not hold securities with stated maturities greater than 12 months until maturity. In response to changes in the availability of and the yield on alternative investments as well as liquidity requirements, the Company may sell these securities prior to their stated maturities. As these securities are viewed by the Company as available to support current operations, securities with maturities beyond 12 months are classified as current assets. Due to their short-term maturities, the Company believes that the fair value of its bank deposits, accounts payable and accrued expenses approximate their carrying value.
	Fair Value Measurements
	As of September 30, 2013 and December 31, 2012, all of the Company’s cash and cash equivalents and available-for-sale securities were measured at fair value on a recurring basis, and classified as Level 1 in the fair value hierarchy. There were no assets or liabilities measured on a recurring basis where Level 2 or Level 3 valuation techniques were used.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2013
INVENTORIES	'
INVENTORIES	'
	4. INVENTORIES
	Inventories consist of (in thousands):
		Balance as of
		September 30, 2013		December 31, 2012
	Raw materials	$	23,746	$	5,139
	Work in process	609		2,635
	Finished goods	12,981		17,506
	Deferred costs	582		73
	Total	$	37,918	$	25,353
	As of September 30, 2013 and December 31, 2012, the raw materials inventories consist primarily of the active pharmaceutical ingredients, or API, for the commercialization of Qsymia® (phentermine and topiramate extended-release) capsules CIV, the finished goods inventory consists of both Qsymia and STENDRATM (avanafil) primarily for commercialization, while the work in process and deferred costs inventories relate exclusively to Qsymia. The deferred costs represent the costs of Qsymia product shipped to customers, including wholesalers, certified retail pharmacies and certified mail order pharmacies, but not yet shipped to patients through prescriptions, and for which recognition of revenue has been deferred.
	Inventories are stated at the lower of cost or market. Cost is determined using the weighted average method. The Company periodically evaluates the carrying value of inventory on hand for potential excess amount over demand using the same lower of cost or market approach as that used to value the inventory. As a result of this evaluation, for the nine months ended September 30, 2013, the Company recognized a total charge of $10.2 million for inventories on hand in excess of demand, plus a purchase commitment fee. No additional charge was required in the three months ended September 30, 2013.

PREPAID_EXPENSES_AND_OTHER_ASS

PREPAID EXPENSES AND OTHER ASSETS	9 Months Ended
	Sep. 30, 2013
PREPAID EXPENSES AND OTHER ASSETS	'
PREPAID EXPENSES AND OTHER ASSETS	'
	5. PREPAID EXPENSES AND OTHER ASSETS
	Prepaid expenses and other assets consist of (in thousands):
		Balance as of
		September 30, 2013		December 31, 2012
	Prepaid insurance	$	3,382	$	6,979
	Prepaid sales and marketing expenses	4,791		5,735
	Prepaid medical affairs expenses	3,136		1,782
	Manufacturing capacity commitment fees	823		2,300
	Withholding tax receivable	5,322		—
	Other prepaid expenses and assets	3,226		2,363
	Total	$	20,680	$	19,159
	The amounts included in prepaid expenses and other assets consist primarily of prepaid insurance, deposits and prepayments for future services, primarily related to prepaid product commercialization costs for services relating to future periods in support of the sales and marketing of Qsymia in the U.S., prepayments related to medical affairs activities for Qsymia and STENDRA, interest income receivable, withholding tax receivable and manufacturing capacity commitment fees. The withholding tax receivable represents refundable foreign tax withheld on payments Menarini Group, through its subsidiary Berlin-Chemie AG, or Menarini, made to the Company. These amounts represent probable future economic benefits obtained or controlled by the Company as a result of past transactions or events, which meet the definition of an asset under FASB Concept Statement 6. As such, these costs have been deferred as prepaid expenses and other assets on the condensed consolidated balance sheet and will be either (i) charged to expense accordingly when the related prepaid services are rendered to the Company, or (ii) converted to cash when the receivables are collected by the Company.

NONCURRENT_ASSETS

NON-CURRENT ASSETS	9 Months Ended
	Sep. 30, 2013
NON-CURRENT ASSETS	'
NON-CURRENT ASSETS	'
	6. NON-CURRENT ASSETS
	Non-current assets consist of (in thousands):
		Balance as of
		September 30, 2013		December 31, 2012
	Debt issuance costs	$	6,169	$	—
	Other non-current assets	1,705		287
	Total	$	7,874	$	287
	The amounts included in non-current assets consist of debt issuance costs relating to the Convertible Notes and the Senior Secured Notes Due 2018 (see Note 11), which primarily consist of investment banker, legal and other professional fees, and other assets which are not expected to be realized in the next 12 months.

ACCRUED_AND_OTHER_LIABILITIES

ACCRUED AND OTHER LIABILITIES	9 Months Ended
	Sep. 30, 2013
ACCRUED AND OTHER LIABILITIES	'
ACCRUED AND OTHER LIABILITIES	'
	7. ACCRUED AND OTHER LIABILITIES
	Accrued and other liabilities consist of (in thousands):
		Balance as of
		September 30, 2013		December 31, 2012
	Accrued employee compensation and benefits	$	5,999	$	3,859
	Accrued manufacturing costs	407		4,135
	Accrued sales and marketing expenses	624		2,908
	Accrued interest on debt (see Note 11)	6,385		—
	Accrued research and clinical expenses	3,405		1,372
	Other accrued liabilities	4,292		1,503
	Liabilities of discontinued operations	—		903
	Total	$	21,112	$	14,680
	The amounts included in accrued and other liabilities consist of obligations for past services, primarily related to accrued employee compensation and benefits, accrued manufacturing and product commercialization costs for services relating to past periods in support of the commercial launch of Qsymia in the U.S., accrued interest on debt, and accrued research and clinical expenses.

NONRECURRING_CHARGES

NON-RECURRING CHARGES	9 Months Ended
	Sep. 30, 2013
NON-RECURRING CHARGES	'
NON-RECURRING CHARGES	'
	8.  NON-RECURRING CHARGES
	Total non-recurring charges, primarily related to the proxy contest with First Manhattan, consist of (in thousands):
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Share-based compensation (see Note 2)	$	12,716	$	—	$	12,716	$	—
	Proxy contest expenses	5,155		—		8,863		—
	Employee termination and related costs	2,872		—		2,872		—
	Operating lease exit costs	—		—		216		—
	Non-recurring charges	$	20,743	$	—	$	24,667	$	—
	On July 18, 2013, the Company entered into a settlement agreement with First Manhattan in connection with a proxy contest related to the Company’s 2013 Annual Meeting of Stockholders. According to the terms of the settlement agreement, more than a majority of the members of the Company’s Board of Directors resigned and new members were appointed. The change in the majority of the members of the Company’s Board of Directors, effective July 19, 2013, triggered certain “change of control” benefits in accordance with the Amended Agreements with certain of the Company’s employees. Under the Amended Agreements, all unvested stock options held by these employees automatically vested in full and became immediately exercisable. In addition, the resignations of both the Company’s Chief Executive Officer and President resulted in severance charges under the Amended Agreements. As part of the settlement agreement with First Manhattan, the Company agreed to pay the reasonable and documented expenses incurred by First Manhattan in connection with its proxy contest, which are estimated at approximately $3.0 million.

DEFERRED_REVENUE

DEFERRED REVENUE	9 Months Ended
	Sep. 30, 2013
DEFERRED REVENUE	'
DEFERRED REVENUE	'
	9. DEFERRED REVENUE
	Qsymia Deferred Revenue
	At September 30, 2013, the Company had $9.5 million in deferred revenue, which represents Qsymia product shipped to the Company’s certified home delivery pharmacy services networks, wholesalers and certified retail pharmacies, but not yet shipped to patients through prescriptions, net of prompt payment discounts.
	SPEDRA™ Deferred Revenue
	As further discussed in Note 10 below, in September 2013, the Company received €6.7 million, (€8 million, net of approximately 16% reimbursable withholding tax) from Menarini as a prepayment for future royalties on sales of SPEDRA.The gross prepayment amount of €8 million, or $10.6 million, is recorded as deferred revenue as of September 30, 2013 and will be recognized through future earnings and deducted by Menarini against future royalties owed to the Company until such amount, plus interest cost, is depleted in full.

LICENSE_AND_COMMERCIALIZATION_

LICENSE AND COMMERCIALIZATION AGREEMENT AND COMMERCIAL SUPPLY AGREEMENT WITH MENARINI	9 Months Ended
	Sep. 30, 2013
LICENSE AND COMMERCIALIZATION AGREEMENT AND COMMERCIAL SUPPLY AGREEMENT WITH MENARINI	'
LICENSE AND COMMERCIALIZATION AGREEMENT AND COMMERCIAL SUPPLY AGREEMENT WITH MENARINI	'
	10. LICENSE AND COMMERCIALIZATION AGREEMENT AND COMMERCIAL SUPPLY AGREEMENT WITH MENARINI
	On July 5, 2013, the Company entered into a License and Commercialization Agreement, or the License Agreement, with Menarini to commercialize and promote SPEDRA for the treatment of ED in over 40 European countries, plus Australia and New Zealand. VIVUS and Menarini also entered into a Commercial Supply Agreement whereby VIVUS will supply Menarini with SPEDRA drug product.
	Under the terms of the License Agreement, VIVUS has received certain upfront payments and is eligible to receive various approval and sales milestones potentially totaling €79 million, plus royalties on SPEDRA sales. Upon the signing of the License Agreement, we received a payment of €6.7 million, (€8 million, net of approximately 16% reimbursable withholding tax), for the non-refundable, non-creditable license fee, as well as a payment of €6.7 million, (€8 million, net of approximately 16% reimbursable withholding tax), for a regulatory milestone payment, related to the approval of the SPEDRA marketing authorization by the European Commission. Although this payment was described in the License Agreement as a regulatory milestone payment for the marketing authorization approval in Europe, it is essentially an additional license fee because the approval by the European Commission was obtained prior to the final execution of the License Agreement. In addition, in September 2013, VIVUS received another payment of €6.7 million, (€8 million, net of approximately 16% reimbursable withholding tax), as a prepayment for future royalties on sales of SPEDRA. This amount has been recorded as deferred revenue as of September 30, 2013 and will be recognized as royalty income when earned. For the three months and nine months ended September 30, 2013, VIVUS has recognized €16.0 million, or $21.0 million, as license revenue, as the Company has determined that revenue was earned upon the delivery of the license rights and related know-how. Under the Commercial Supply Agreement, VIVUS will supply the SPEDRA drug product to Menarini on a cost-plus basis.
	In accordance with ASC 605-25, VIVUS identified the license and related know-how and supply services as separate deliverables under the agreements.  The Company determined that the license and related know-how and supply services individually represent separate units of accounting because each deliverable has stand-alone value.  The Company determined that the license and related know-how have stand-alone value based on various facts and circumstances in the arrangement, including Menarini’s option to sublicense. Although Menarini is precluded from reselling the license, Menarini’s ability to use the delivered license and related know-how for its intended purpose without the receipt of the remaining deliverable indicated that the license and related know-how have stand-alone value.
	VIVUS determined that the supply services have stand-alone value because: (i) the manufacturing process is not proprietary to the Company; (ii) a third party manufacturer produces the product, and (iii) Menarini may at any time with notice to the Company elect to accept assignment of VIVUS’s agreements with the third party manufacturer, or manufacture the licensed product itself or contract with a third party manufacturer to produce it.
	The Company allocated the non-contingent consideration relating to the stand-alone deliverables on the basis of relative selling price, which is BESP because VSOE or TPE are unavailable for these deliverables. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis.  BESP for the license is based on discounted future projected cash flows relating to the licensed territories.  Revenue related to the license was recognized in the third quarter of 2013 when the license and all related knowledge and data had been transferred.  BESP for the supply services is based on third party costs to manufacture the licensed product, plus a mark-up consistent with similar agreements.  Revenues allocated to the supply services will be recognized when the product has met all required specifications and the related title and risk of loss and damages have been transferred to Menarini.  The Company has determined that achievement of any and all of the milestones is dependent solely upon the results of Menarini and therefore none of the milestones are deemed to be substantive.  Royalties to be received from Menarini will be recognized by the Company based upon the net sales of the product by Menarini.  As of September 30, 2013, no supply services have been provided and the SPEDRA drug product has not yet launched, thus no revenues for supply services and royalties have been recognized.

LONG_TERM_DEBT

LONG TERM DEBT	9 Months Ended
	Sep. 30, 2013
LONG TERM DEBT	'
LONG TERM DEBT	'
	11. LONG TERM DEBT
	Convertible Senior Notes Due 2020
	On May 21, 2013, the Company closed an offering of $220.0 million in 4.5% Convertible Senior Notes due May 1, 2020, or the Convertible Notes. The Convertible Notes are governed by an indenture, dated as of May 21, 2013 between the Company and Deutsche Bank National Trust Company, as trustee. On May 29, 2013, the Company closed on an additional $30.0 million of Convertible Notes upon exercise of an option by the initial purchasers of the Convertible Notes. Total net proceeds from the Convertible Notes were approximately $241.8 million.
	The Convertible Notes are senior unsecured obligations of the Company and bear interest at a fixed rate of 4.50% per annum, payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2013, unless earlier purchased or converted.
	The Convertible Notes are convertible into approximately 16,826,000 shares of the Company’s common stock under certain circumstances prior to maturity at a conversion rate of 67.3038 shares per $1,000 principal amount of Convertible Notes, which represents a conversion price of approximately $14.858 per share, subject to adjustment under certain conditions. The Convertible Notes are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding November 1, 2019 only under certain conditions. On or after November 1, 2019, holders may convert all or any portion of their Convertible Notes at their option at the conversion rate then in effect at any time, regardless of these conditions. Subject to certain limitations, the Company will settle conversions of the Convertible Notes by paying or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election. The conversion rate of the Convertible Notes, and the corresponding conversion price, will be subject to adjustment for certain events, but will not be adjusted for accrued interest. In addition, following certain corporate transactions that occur on or prior to the maturity date for the Convertible Notes, the Company will increase the conversion rate for a holder that elects to convert its Convertible Notes in connection with such a corporate transaction. The Convertible Notes were issued to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, or the Securities Act. Neither the Convertible Notes nor any shares of VIVUS’s common stock issuable upon conversion of the Convertible Notes have been or are expected to be registered under the Securities Act or under any state securities laws.
	The Convertible Notes are accounted for in accordance with ASC 470-20, Debt with Conversion and Other Options. Under ASC 470-20, issuers of convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, are required to separately account for the liability (debt) and equity (conversion option) components. The Company analyzed the conversion feature to determine if it was required to be bifurcated and treated as a derivative liability and determined that it did not. Rather, the Company is required to separately account for the liability and equity components of the convertible debt instrument. The Company determined the fair value of the liability component by estimating a risk adjusted interest rate, or market yield, at the time of issuance for similar notes that do not include the equity component. To arrive at the appropriate risk adjusted rate, or market yield, for the Convertible Notes, the Company performed (i) a synthetic credit rating analysis estimating the issuer level credit rating of the Company using a regression model; (ii) research on appropriate market yields using option adjusted spread indications for similar credit ratings, and (iii) considered the market yield implied for the Convertible Notes from a binomial lattice model, or Level 3 inputs. The risk adjusted interest rate was used to compute the initial fair value of the liability component of $154.7 million. The excess of the proceeds received from the Convertible Notes over the amount allocated to the liability component, of $95.3 million, is allocated to the equity component and recorded to additional paid-in capital. This excess is reported as a debt discount and is amortized as non-cash interest expense, using the interest method, over the expected life of the Convertible Notes. The conversion option will not be subsequently remeasured as long as it continues to meet conditions for equity classification.
	In connection with the issuance of the Convertible Notes, the Company incurred $8.2 million of issuance costs, which primarily consisted of investment banker, legal and other professional fees. The portion of the costs related to the equity component of $3.1 million was charged to additional paid-in capital. The remaining portion related to the debt component of $5.1 million was recorded as a deferred charge and included in non-current assets, and is being amortized and recorded as additional interest expense over the expected life of the Convertible Notes.
	The combined effective interest rate on the liability component was 15.2%. Total interest expense of $5.7 million and $8.1 million was recognized during the three and nine month periods ended September 30, 2013, respectively, which includes $3.4 million and $4.9 million of amortization of the debt discount during the three and nine month periods ended September 30, 2013, respectively. The remaining expected life of the Convertible Notes at September 30, 2013 is 5.2 years. As of September 30, 2013, the Convertible Notes were not convertible and the if-converted value did not exceed their principal amount.
	In connection with the issuance of the Convertible Notes, the Company entered into capped call transactions with certain counterparties affiliated to the underwriters. The capped call transactions are expected to reduce potential dilution of earnings per share upon conversion of the Convertible Notes. Under the capped call transactions, the Company purchased capped call options that in the aggregate relate to the total number of shares of the Company’s common stock underlying the Convertible Notes, with a strike price equal to the conversion price of the notes and with a cap price equal to $20 per share. The fair value of the purchased capped calls of $34.7 million was recorded to stockholders’ equity.
	Senior Secured Notes Due 2018
	On March 25, 2013, the Company entered into the Purchase and Sale Agreement, or the Agreement, between the Company and BioPharma Secured Investments III Holdings Cayman LP, a Cayman Islands exempted limited partnership, or BioPharma, providing for the purchase of a debt-like instrument, or the Senior Secured Notes. Under the Agreement, the Company received $50 million, less $500,000 in funding and facility payments, at the initial closing on April 9, 2013. The Company may also elect prior to December 31, 2013, subject to certain terms and conditions, to receive an additional $60 million, less $600,000 in a funding payment, at the secondary closing no earlier than April 30, 2013 and no later than January 15, 2014. The Company was responsible for all reasonable and documented out-of-pocket legal costs and fees incurred by BioPharma related to the Agreement, subject to a cap of $300,000.
	Net proceeds from the initial financing were approximately $48.4 million. The Company is obligated to make scheduled quarterly payments. The first payment is scheduled to be made in the second quarter of 2014 and the final payment is scheduled to be made in the second quarter of 2018. The scheduled quarterly payments are subject to the net sales of (i) Qsymia® (and any derivative or improvement thereof, including Qsiva™ as it relates to the European Union), or the Product, and (ii) any other obesity agent developed or marketed by the Company or its affiliates or licensees. The scheduled quarterly payments, other than the payment(s) scheduled to be made in the second quarter of 2018, are capped at the lower of the scheduled payment amounts or 25% of the net sales of (i) and (ii) above. Accordingly, if 25% of the net sales is less than the scheduled quarterly payment, then 25% of the net sales is due for that quarter, with the exception of the payment(s) scheduled to be made in the second quarter of 2018, when any unpaid scheduled quarterly payments plus any accrued and unpaid make-whole premiums must be paid. Any quarterly payment less than the scheduled quarterly payment amount will be subject to a make-whole premium equal to the applicable scheduled quarterly payment of the preceding quarter less the actual payment made to BioPharma for the preceding quarter multiplied by 1.03. Regardless, the Company may pay scheduled quarterly payments out of any available funds notwithstanding Product net sales. The Company also has the option to prepay all scheduled quarterly payments as specified in the Agreement. Assuming all scheduled quarterly payments are made timely and in full, the annual implied effective interest rate is 13.38% per annum. The imputed interest for the Senior Secured Notes was $1.7 million and $3.2 million during the three and nine month periods ended September 30, 2013, respectively.
	To secure its obligations in connection with the Agreement, the Company granted BioPharma a security interest to (i) the purchased receivables which are defined in the Agreement as the scheduled quarterly payments, any underpayments of such payments based on an audit of the Company’s records and any interest due on the foregoing amounts, and (ii) the Company’s patents, trademarks, copyrights and regulatory filings related to the Product, or the Additional Collateral.
	In connection with the issuance of the Senior Secured Notes, the Company incurred $1.6 million of issuance costs, which primarily consisted of funding and facility fees, legal and other professional fees. These costs are being amortized and recorded as additional interest expense using the interest method through 2018.
	The following table summarizes information on the debt (in thousands) as of:
		September 30, 2013
	Convertible Senior Notes due 2020:
	Fair value of the liability component	$	154,738
	Accumulated accretion of discount	4,904
	Net carrying value	$	159,642
	Senior Secured Notes due 2018:
	Carrying value	$	50,000
	Total Notes:
	Fair value of the liability component	$	204,738
	Accumulated accretion of discount	4,904
	Net carrying amount	$	209,642

NET_INCOME_LOSS_PER_SHARE

NET INCOME (LOSS) PER SHARE	9 Months Ended
	Sep. 30, 2013
NET INCOME (LOSS) PER SHARE	'
NET INCOME (LOSS) PER SHARE	'
	12. NET INCOME (LOSS) PER SHARE
	The Company computes basic net income (loss) per share applicable to common stockholders based on the weighted average number of common shares outstanding during the period. Diluted net income per share is based on the weighted average number of common and common equivalent shares, which represent shares that may be issued in the future upon the exercise of outstanding stock options or upon a net share settlement of the Company’s Convertible Notes. Common share equivalents are excluded from the computation in periods in which they have an anti-dilutive effect. Stock options for which the price exceeds the average market price over the period have an anti-dilutive effect on net income per share and, accordingly, are excluded from the calculation. As discussed in Note 11, the triggering conversion conditions that allow holders of the Convertible Notes to convert have not been met. If such conditions are met and the note holders opt to convert, the Company may choose to pay in cash, common stock, or a combination thereof; however, if this occurs, the Company has the intent and ability to net share settle this debt security; thus the Company uses the treasury stock method for earnings per share purposes. Due to the effect of the capped call instrument purchased in relation to the Convertible Notes, there would be no net shares issued until the market value of the Company’s stock exceeds $20 per share, and thus no impact on diluted net income per share. Further, when there is a net loss, potentially dilutive common equivalent shares are not included in the calculation of net loss per share since their inclusion would be anti-dilutive.
	As the Company recognized a net loss for the three and nine months ended September 30, 2013 and September 30, 2012, all potential common equivalent shares were excluded for these periods as they were anti-dilutive. For the three months ended September 30, 2013 and September 30, 2012, 5,626,000 and 4,242,000 options outstanding, respectively, were not included in the computation of diluted net loss per share because the effect would be anti-dilutive. For the nine months ended September 30, 2013 and September 30, 2012, 6,026,000 and 4,053,000 options outstanding, respectively, were not included in the computation of diluted net loss per share because the effect would be anti-dilutive.

LEGAL_MATTERS

LEGAL MATTERS	9 Months Ended
	Sep. 30, 2013
LEGAL MATTERS	'
LEGAL MATTERS	'
	13. LEGAL MATTERS
	Securities Related Class Action Lawsuits
	The Company and two of its officers were defendants in a putative class action lawsuit captioned Kovtun v. Vivus, Inc., et al., Case No. 4:10-CV-04957-PJH, in the U.S. District Court, Northern District of California. The action, filed in November 2010, alleged violations of Section 10(b) and 20(a) of the federal Securities Exchange Act of 1934 based on allegedly false or misleading statements made by the defendants in connection with the Company’s clinical trials and NDA for Qsymia as a treatment for obesity. The Court granted defendants’ motions to dismiss both plaintiff’s Amended Class Action Complaint and Second Amended Class Action Complaint; by order dated September 27, 2012, the latter dismissal was with prejudice and final judgment was entered for defendants the same day. On October 26, 2012, plaintiff filed a Notice of Appeal to the U.S. Court of Appeals for the Ninth Circuit. Briefing of the appeal is complete, and the parties are awaiting word on whether the Court of Appeals wishes to entertain oral argument.
	Additionally, certain of the Company’s officers and directors are defendants in a shareholder derivative lawsuit captioned Turberg v. Logan, et al., Case No. CV-10-05271-PJH, pending in the same federal court. In the plaintiff’s Verified Amended Shareholder Derivative Complaint filed June 3, 2011, the plaintiff largely restated the allegations of the Kovtun action and alleged that the directors breached fiduciary duties to the Company by purportedly permitting the Company to violate the federal securities laws as alleged in the Kovtun action. The same individuals are also named defendants in consolidated shareholder derivative suits pending in the California Superior Court, Santa Clara County under the caption In re VIVUS, Inc. Derivative Litigation, Master File No. 11 0 CV188439. The allegations in the state court derivative suits are substantially similar to the other lawsuits. The Company is named as a nominal defendant in these actions, neither of which seeks any recovery from the Company. The parties have agreed to stay the derivative lawsuits pending the outcome of the appeal of the securities class action.
	The Company and its directors cannot predict the outcome of the various shareholder lawsuits, but they believe the various shareholder lawsuits are without merit and intend to continue vigorously defending them.
	On July 12, 2013, various current and former officers and directors of the Company were named as defendants in a separate shareholder derivative lawsuit filed in the California Superior Court, Santa Clara County and captioned Ira J. Gaines IRA, et al. v. Leland F. Wilson, et al., Case No.1-13-CV-249436.  The lawsuit generally alleges breaches of the fiduciary duty of care in connection with the launch of Qsymia, breaches of the duty of loyalty and insider trading by some defendants for selling Company stock while purportedly being aware that the Qsymia launch would be less successful than predicted and corporate waste. Again, the Company is named as a nominal defendant, and no recovery from the Company is sought. As with the other shareholder litigation, the Company does have certain indemnification obligations to the named defendants, including to advance defense costs to the individuals. The Company also maintains directors’ and officers’ liability insurance that it believes affords coverage for much of the anticipated cost of the proceedings, subject to the policies’ terms and conditions. The individual defendants deny the material allegations and have indicated an intention to defend them vigorously. On October 21, 2013, the Company filed a demurrer seeking to have the lawsuit dismissed in its entirety for failure to make a pre-suit demand upon the Company’s Board of Directors or plead sufficient facts to show that such demand would have been futile.
	Proxy Related Lawsuit
	On July 16, 2013, First Manhattan, the owner of approximately 9.9% of the outstanding shares of common stock of the Company, commenced an action in the Court of Chancery of the State of Delaware, naming the then-serving members of the board of directors of the Company as defendants and the Company as a nominal defendant. The action was captioned First Manhattan Co. v. Leland F. Wilson, et al., C.A. No. 8731-VCL. In its verified complaint, First Manhattan alleged that the Company’s directors breached their fiduciary duties in connection with the Board’s decision to adjourn the annual stockholders meeting from July 15, 2013 until July 18, 2013. The verified complaint sought declaratory and injunctive relief, including enjoining the defendants from soliciting proxies, directing the inspector of elections to certify the election of directors based on votes that were present and prepared to be voted on July 15, 2013 before the annual stockholders meeting was adjourned, and prohibiting defendants from taking any actions as directors of the Company. The verified complaint did not seek damages from the Company or the defendant board members. The parties entered into a settlement agreement on July 18, 2013, and the action was dismissed with prejudice on July 19, 2013. As part of the settlement agreement with First Manhattan, the Company agreed to pay the reasonable and documented expenses incurred by First Manhattan in connection with its proxy contest, which are estimated at approximately $3.0 million.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2013
SUBSEQUENT EVENTS	'
SUBSEQUENT EVENTS	'
	14. SUBSEQUENT EVENTS
	License and Commercialization Agreement and Commercial Supply Agreement for STENDRA
	On October 10, 2013, the Company, entered into a License and Commercialization Agreement, or the License Agreement, and a Commercial Supply Agreement, or the Supply Agreement, with Auxilium Pharmaceuticals, Inc., or Auxilium.
	Under the terms of the License Agreement, Auxilium received an exclusive license to commercialize and promote VIVUS’s drug STENDRA™ (avanafil) for the treatment of erectile dysfunction in the United States and Canada and their respective territories, or the Territory. Additionally, following the completion of certain events, VIVUS has agreed to transfer to Auxilium ownership of the product marketing authorization for STENDRA for the treatment of erectile dysfunction, which was granted by the FDA in April 2012. Each party agreed not to develop, commercialize, or in-license any other product that operates as a PDE5 inhibitor for the treatment of erectile dysfunction in the Territory for a limited time period, subject to certain exceptions. A PDE5 inhibitor means any product that operates as a phosphodiesterase type 5 inhibitor.
	VIVUS received an upfront license fee of $30 million in October 2013, and is expected to receive various milestone payments, plus royalty payments on STENDRA sales. VIVUS is eligible to receive a regulatory milestone payment of $15 million upon approval by the FDA of a specific time of onset claim for STENDRA in the Territory. In addition, VIVUS is eligible to receive up to an aggregate of $255 million in potential milestone payments based on certain net sales targets by Auxilium. Further, VIVUS is eligible to receive royalty payments based on tiered percentages of the aggregate annual net sales of STENDRA in the Territory on a quarterly basis. The percentage of Auxilium’s aggregate annual net sales to be paid to VIVUS increases in accordance with the achievement of specific thresholds of aggregate annual net sales of STENDRA in the Territory. If Auxilium’s net sales of STENDRA in a country are reduced by certain amounts following the entry of a generic product to the market, royalty payments will be reduced by certain percentages based on such reductions. Auxilium will also reimburse VIVUS for payments made to cover various obligations to Mitsubishi Tanabe Pharmaceutical Corporation during the term of the License Agreement.
	Auxilium will receive an exclusive license, with a right to sublicense, subject to certain limitations, under certain of VIVUS’s trademarks, including STENDRA, to market, sell and distribute STENDRA for the treatment of erectile dysfunction in the Territory. In addition, Auxilium will receive an exclusive license, with a right to sublicense, subject to certain limitations, under certain of VIVUS’s patents and know-how (i) to use, distribute, import, promote, market, sell, offer for sale and otherwise commercialize STENDRA for the treatment of erectile dysfunction in the Territory, (ii) to make and have made STENDRA anywhere in the world, with certain exceptions, where STENDRA is solely for use or sale for the treatment of erectile dysfunction in the Territory, and (iii) to conduct certain development activities on STENDRA for the treatment of erectile dysfunction in support of obtaining regulatory approval in the Territory.
	Auxilium will obtain STENDRA exclusively from VIVUS for a mutually agreed term pursuant to the Supply Agreement, as further described below. Auxilium may elect to transfer the control of the supply chain for STENDRA for the Territory to itself or its designee by assigning to Auxilium VIVUS’s agreements with the contract manufacturer, which is referred to below as the Supply Chain Transfer.
	At VIVUS’s sole cost and expense, VIVUS shall be responsible for preparing and filing with the FDA the appropriate documents to obtain a label expansion for STENDRA referencing a specific time of onset claim. VIVUS shall use commercially reasonable efforts to obtain approval of such label expansion filing. Further, VIVUS shall be responsible for conducting any post-regulatory studies of STENDRA that are required by the FDA in the Territory. Such costs will be split equally between the parties up to a specified amount and then once the specified amount is reached VIVUS shall be solely responsible for the remainder of the costs.
	The License Agreement will terminate on a country-by-country basis upon the later to occur of the following: (a) ten (10) years after the STENDRA product launch in such country; or (b) the expiration of the last to expire patents within the VIVUS patents covering STENDRA in such country. In addition, Auxilium may terminate the License Agreement (i) for any reason following the one (1) year anniversary of the STENDRA launch in the U.S upon one hundred eighty (180) days written notice, and (ii) upon the entry of a generic avanafil product into the market upon thirty (30) days written notice. VIVUS may terminate the License Agreement (i) immediately upon written notice to Auxilium if Auxilium is excluded from participation in the U.S. federal healthcare programs and fails to cure such exclusion within one hundred twenty (120) days, and (ii) if Auxilium challenges the VIVUS patents covering STENDRA upon written notice to Auxilium. Either party may terminate the License Agreement for the other party’s uncured material breach or bankruptcy.
	Under the terms of the Supply Agreement, VIVUS will supply Auxilium with STENDRA drug product until December 31, 2018 at the latest. For 2015 and each subsequent year during the term of the Supply Agreement, if Auxilium fails to purchase an agreed minimum purchase amount of STENDRA from VIVUS, it will reimburse VIVUS for the shortfall as it relates to VIVUS’s out of pocket costs to acquire certain raw materials needed to manufacture STENDRA. Either party may terminate the Supply Agreement for the other party’s uncured material breach or bankruptcy, or upon the termination of the License Agreement. The Supply Agreement will automatically terminate upon completion of the Supply Chain Transfer, as described above.
	Cost Reduction Plan
	As part of the Company’s ongoing efforts to reduce costs by eliminating expenses that are not essential to expanding the use of Qsymia, the Company has implemented a cost reduction plan which will reduce the Company’s workforce by approximately 20 employees, or 17% of our workforce, excluding the sales force of 150, in the fourth quarter of 2013. The Company expects to complete the cost reduction plan by the end of 2013, and anticipates incurring pre-tax non-recurring charges in the range of $6 million to $8 million in the fourth quarter of 2013, including approximately $4 million to $5 million in employee termination costs, $1 million to $1.5 million in non-cash share-based compensation expense related to the automatic acceleration of vesting of unvested stock options held by the terminated employees, and $1 million to $1.5 million in operating lease exit costs. The Company expects to realize approximately $6 million to $8 million in annual net cost savings beginning in fiscal year 2014. The estimates of the charges and costs that the Company expects to incur and the annual net costs savings that the Company expects to realize in connection with the cost reduction plan, and the timing thereof, are subject to a number of assumptions and actual results may materially differ.
	New Principal Financial Officer
	On November 4, 2013, the Company and Timothy E. Morris entered into a letter agreement, or the Letter Agreement, in connection with the Amended and Restated Change of Control and Severance Agreement by and between the Company and Mr. Morris, effective as of July 1, 2013, or the Severance Agreement. In connection with the change in the majority of the Board of Directors of the Company and the material reduction or change in job duties and responsibilities as a result of no longer having the duties and responsibilities of the Chief Financial Officer or those associated as the head of investor relations, human resources and corporate development, the Company acknowledges and agrees that Mr. Morris is entitled to terminate his employment for Good Reason (as defined in the Severance Agreement). Under the terms of the Letter Agreement, Mr. Morris will continue his employment with the Company until December 31, 2013 to assist with the transition of his duties. On December 31, 2013, Mr. Morris’s employment will terminate automatically for Good Reason, and Mr. Morris will be entitled to severance payments and benefits pursuant to the terms of the Severance Agreement.
	On November 5, 2013, the Board of Directors of the Company appointed Svai Sanford, the Company’s Corporate Controller, as interim Chief Financial Officer effective November 5, 2013, or the Effective Date. As of the Effective Date, Mr. Sanford has assumed the duties of the Company’s principal financial officer on an interim basis.
	No new compensatory or severance arrangements were entered into in connection with Mr. Sanford’s appointment as interim Chief Financial Officer.

BASIS_OF_PRESENTATION_Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2013
BASIS OF PRESENTATION	'
Reclassifications	'
	Reclassifications
	Certain prior year amounts in the unaudited condensed consolidated financial statements have been reclassified to conform to the current year presentation.
Use of Estimates	'
	Use of Estimates
	The preparation of these unaudited condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including critical accounting policies or estimates related to available-for-sale securities, debt instruments, research and development expenses, income taxes, inventories, revenues, contingencies and litigation and share-based compensation. The Company bases its estimates on historical experience, information received from third-parties and on various market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ significantly from those estimates under different assumptions or conditions.
Revenue from Multiple Element Arrangements	'
	Revenue from Multiple Element Arrangements
	The Company accounts for multiple element arrangements, such as license and commercialization agreements in which a customer may purchase several deliverables, in accordance with ASC Topic 605-25, Revenue Recognition — Multiple-Element Arrangements, or ASC 605-25. The Company evaluates how the deliverables in an arrangement should be separated and how the consideration should be allocated. The Company allocates non-contingent consideration to each stand-alone deliverable based upon the relative selling price of each element. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor-specific objective evidence, or VSOE, of selling price, if it exists, or third-party evidence, or TPE, of selling price, if it exists. If neither VSOE nor TPE of selling price exist for a deliverable, the Company uses best estimated selling price, or BESP, for that deliverable. Revenue allocated to each element is then recognized based on when the following four basic revenue recognition criteria are met for each element: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the price is fixed or determinable; and (iv) collectability is reasonably assured.
	Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue the Company reports. Changes in assumptions or judgments, or changes to the elements in an arrangement, could cause a material increase or decrease in the amount of revenue that the Company reports in a particular period.
	ASC Topic 605-28, Revenue Recognition — Milestone Method, or ASC 605-28, established the milestone method as an acceptable method of revenue recognition for certain contingent, event-based payments under research and development arrangements. Under the milestone method, a payment that is contingent upon the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved. A milestone is an event: (i) that can be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from its performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved, and (iii) that would result in additional payments being due to the Company. The determination that a milestone is substantive requires judgment and is made at the inception of the arrangement. Milestones are considered substantive when the consideration earned from the achievement of the milestone is: (i) commensurate with either the Company’s performance to achieve the milestone, or the enhancement of value of the item delivered as a result of a specific outcome resulting from its performance to achieve the milestone, (ii) relates solely to past performance, and (iii) is reasonable, relative to all deliverables and payment terms in the arrangement.
	Other contingent, event-based payments received for which payment is either contingent solely upon the passage of time or the results of a collaborative partner’s performance are not considered milestones under ASC 605-28. In accordance with ASC 605-25, such payments will be recognized as revenue when all of the four basic revenue recognition criteria are met.
	Revenues recognized for royalty payments are recognized as earned in accordance with the terms of the license and commercialization agreements.
	In accordance with ASC 605-25, VIVUS identified the license and related know-how and supply services as separate deliverables under the agreements.  The Company determined that the license and related know-how and supply services individually represent separate units of accounting because each deliverable has stand-alone value.  The Company determined that the license and related know-how have stand-alone value based on various facts and circumstances in the arrangement, including Menarini’s option to sublicense. Although Menarini is precluded from reselling the license, Menarini’s ability to use the delivered license and related know-how for its intended purpose without the receipt of the remaining deliverable indicated that the license and related know-how have stand-alone value.
	VIVUS determined that the supply services have stand-alone value because: (i) the manufacturing process is not proprietary to the Company; (ii) a third party manufacturer produces the product, and (iii) Menarini may at any time with notice to the Company elect to accept assignment of VIVUS’s agreements with the third party manufacturer, or manufacture the licensed product itself or contract with a third party manufacturer to produce it.
	The Company allocated the non-contingent consideration relating to the stand-alone deliverables on the basis of relative selling price, which is BESP because VSOE or TPE are unavailable for these deliverables. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis.  BESP for the license is based on discounted future projected cash flows relating to the licensed territories.  Revenue related to the license was recognized in the third quarter of 2013 when the license and all related knowledge and data had been transferred.  BESP for the supply services is based on third party costs to manufacture the licensed product, plus a mark-up consistent with similar agreements.  Revenues allocated to the supply services will be recognized when the product has met all required specifications and the related title and risk of loss and damages have been transferred to Menarini.  The Company has determined that achievement of any and all of the milestones is dependent solely upon the results of Menarini and therefore none of the milestones are deemed to be substantive.  Royalties to be received from Menarini will be recognized by the Company based upon the net sales of the product by Menarini.  As of September 30, 2013, no supply services have been provided and the SPEDRA drug product has not yet launched, thus no revenues for supply services and royalties have been recognized.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	Financial instruments include cash equivalents, available-for-sale securities, accounts payable and accrued liabilities. Available-for-sale securities are carried at estimated fair value. The carrying value of cash equivalents, accounts payable and accrued liabilities approximate their estimated fair value due to the relatively short-term nature of these instruments.
	Debt instruments are initially recorded at fair value, with coupon interest and amortization of debt issuance discounts recognized in the statement of operations as interest expense at each period end while such instruments are outstanding. If the Company issues shares to discharge the liability, the debt obligation is derecognized and common stock and additional paid-in capital are recognized on the issuance of those shares.
	The Company’s Convertible Notes contain a conversion option which is classified as equity. The Company determined the fair value of the liability component of the debt instrument and allocated the excess amount from the initial proceeds to the conversion option. The fair value of the debt component was determined by estimating a risk adjusted interest rate, or market yield, at the time of issuance for similar notes that do not include the conversion feature, or equity component. This excess is reported as a debt discount and is amortized as non-cash interest expense, using the interest method, over the expected life of the Convertible Notes.
	Issuance costs related to the equity component of the Convertible Notes were charged to additional paid-in capital. The remaining portion related to the debt component is being amortized and recorded as additional interest expense over the expected life of the Convertible Notes. In connection with the issuance of the Convertible Notes, the Company entered into capped call transactions with certain counterparties affiliated to the underwriters. The fair value of the purchased capped calls was recorded to stockholders’ equity.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	There have been no recent accounting pronouncements or changes in accounting pronouncements during the three and nine months ended September 30, 2013, as compared to the recent accounting pronouncements described in the Company’s Form 10-K for the year ended December 31, 2012, that are of significance, or potential significance to the Company.
Long Term Debt	'
	The Convertible Notes are accounted for in accordance with ASC 470-20, Debt with Conversion and Other Options. Under ASC 470-20, issuers of convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, are required to separately account for the liability (debt) and equity (conversion option) components. The Company analyzed the conversion feature to determine if it was required to be bifurcated and treated as a derivative liability and determined that it did not. Rather, the Company is required to separately account for the liability and equity components of the convertible debt instrument. The Company determined the fair value of the liability component by estimating a risk adjusted interest rate, or market yield, at the time of issuance for similar notes that do not include the equity component. To arrive at the appropriate risk adjusted rate, or market yield, for the Convertible Notes, the Company performed (i) a synthetic credit rating analysis estimating the issuer level credit rating of the Company using a regression model; (ii) research on appropriate market yields using option adjusted spread indications for similar credit ratings, and (iii) considered the market yield implied for the Convertible Notes from a binomial lattice model, or Level 3 inputs. The risk adjusted interest rate was used to compute the initial fair value of the liability component of $154.7 million. The excess of the proceeds received from the Convertible Notes over the amount allocated to the liability component, of $95.3 million, is allocated to the equity component and recorded to additional paid-in capital. This excess is reported as a debt discount and is amortized as non-cash interest expense, using the interest method, over the expected life of the Convertible Notes. The conversion option will not be subsequently remeasured as long as it continues to meet conditions for equity classification.
Share-based compensation	'
	In accordance with ASC 718, all unamortized expense for options that were expected to vest on the date of grant and the modified fair value of the options that were not expected to vest on the date of grant (due to expected forfeitures) were immediately expensed.
Available-for-Sale Securities	'
	As of September 30, 2013, the Company’s available-for-sale securities have original contractual maturities up to 23 months. However, the Company may or may not hold securities with stated maturities greater than 12 months until maturity. In response to changes in the availability of and the yield on alternative investments as well as liquidity requirements, the Company may sell these securities prior to their stated maturities. As these securities are viewed by the Company as available to support current operations, securities with maturities beyond 12 months are classified as current assets. Due to their short-term maturities, the Company believes that the fair value of its bank deposits, accounts payable and accrued expenses approximate their carrying value.
Inventories and related reserves	'
	Inventories are stated at the lower of cost or market. Cost is determined using the weighted average method. The Company periodically evaluates the carrying value of inventory on hand for potential excess amount over demand using the same lower of cost or market approach as that used to value the inventory.
Net Income (Loss) Per Share	'
	The Company computes basic net income (loss) per share applicable to common stockholders based on the weighted average number of common shares outstanding during the period. Diluted net income per share is based on the weighted average number of common and common equivalent shares, which represent shares that may be issued in the future upon the exercise of outstanding stock options or upon a net share settlement of the Company’s Convertible Notes. Common share equivalents are excluded from the computation in periods in which they have an anti-dilutive effect. Stock options for which the price exceeds the average market price over the period have an anti-dilutive effect on net income per share and, accordingly, are excluded from the calculation. As discussed in Note 11, the triggering conversion conditions that allow holders of the Convertible Notes to convert have not been met. If such conditions are met and the note holders opt to convert, the Company may choose to pay in cash, common stock, or a combination thereof; however, if this occurs, the Company has the intent and ability to net share settle this debt security; thus the Company uses the treasury stock method for earnings per share purposes. Due to the effect of the capped call instrument purchased in relation to the Convertible Notes, there would be no net shares issued until the market value of the Company’s stock exceeds $20 per share, and thus no impact on diluted net income per share. Further, when there is a net loss, potentially dilutive common equivalent shares are not included in the calculation of net loss per share since their inclusion would be anti-dilutive.

SHAREBASED_COMPENSATION_Tables

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2013
SHARE-BASED COMPENSATION	'
Schedule of share-based compensation expense	'
	Total share-based compensation expense for all of the Company’s share-based awards is as follows (in thousands):
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Research and development	$	363	$	1,194	$	2,217	$	2,659
	Selling, general and administrative	2,740		3,486		12,822		8,263
	Non-recurring charges	12,716		—		12,716		—
	Share-based compensation expense	$	15,819	$	4,680	$	27,755	$	10,922

CASH_CASH_EQUIVALENTS_AND_AVAI1

CASH, CASH EQUIVALENTS AND AVAILABLE-FOR-SALE SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2013
CASH, CASH EQUIVALENTS AND AVAILABLE-FOR-SALE SECURITIES	'
Schedule of fair value and amortized cost of cash, cash equivalents, and available-for-sale securities by major security type	'
	As of September 30, 2013 (in thousands):
	Cash and cash equivalents and available-for-sale	Amortized			Gross		Gross		Estimated
	securities	Cost			Unrealized		Unrealized		Fair Value
					Gains		Losses
	Cash and money market funds	$	143,121		$	—	$	—	$	143,121
	U.S. Treasury securities	203,236			92		—		203,328
	Total	346,357			92		—		346,449
	Less amounts classified as cash equivalents	(143,121		)	—		—		(143,121		)
	Total available-for-sale securities	$	203,236		$	92	$	—	$	203,328
	As of December 31, 2012 (in thousands):
	Cash and cash equivalents and available-for-sale	Amortized			Gross		Gross		Estimated
	securities	Cost			Unrealized		Unrealized		Fair Value
					Gains		Losses
	Cash and money market funds	$	58,605		$	—	$	—	$	58,605
	U.S. Treasury securities	155,948			33		—		155,981
	Total	214,553			33		—		214,586
	Less amounts classified as cash equivalents	(58,605		)	—		—		(58,605		)
	Total available-for-sale securities	$	155,948		$	33	$	—	$	155,981

INVENTORIES_Tables

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2013
INVENTORIES	'
Schedule of inventory	'
	Inventories consist of (in thousands):
		Balance as of
		September 30, 2013		December 31, 2012
	Raw materials	$	23,746	$	5,139
	Work in process	609		2,635
	Finished goods	12,981		17,506
	Deferred costs	582		73
	Total	$	37,918	$	25,353

PREPAID_EXPENSES_AND_OTHER_ASS1

PREPAID EXPENSES AND OTHER ASSETS (Tables)	9 Months Ended
	Sep. 30, 2013
PREPAID EXPENSES AND OTHER ASSETS	'
Schedule of prepaid expenses and other assets	'
	Prepaid expenses and other assets consist of (in thousands):
		Balance as of
		September 30, 2013		December 31, 2012
	Prepaid insurance	$	3,382	$	6,979
	Prepaid sales and marketing expenses	4,791		5,735
	Prepaid medical affairs expenses	3,136		1,782
	Manufacturing capacity commitment fees	823		2,300
	Withholding tax receivable	5,322		—
	Other prepaid expenses and assets	3,226		2,363
	Total	$	20,680	$	19,159

NONCURRENT_ASSETS_Tables

NON-CURRENT ASSETS (Tables)	9 Months Ended
	Sep. 30, 2013
NON-CURRENT ASSETS	'
Schedule of non-current assets	'
	Non-current assets consist of (in thousands):
		Balance as of
		September 30, 2013		December 31, 2012
	Debt issuance costs	$	6,169	$	—
	Other non-current assets	1,705		287
	Total	$	7,874	$	287

ACCRUED_AND_OTHER_LIABILITIES_

ACCRUED AND OTHER LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2013
ACCRUED AND OTHER LIABILITIES	'
Schedule of accrued and other liabilities	'
	Accrued and other liabilities consist of (in thousands):
		Balance as of
		September 30, 2013		December 31, 2012
	Accrued employee compensation and benefits	$	5,999	$	3,859
	Accrued manufacturing costs	407		4,135
	Accrued sales and marketing expenses	624		2,908
	Accrued interest on debt (see Note 11)	6,385		—
	Accrued research and clinical expenses	3,405		1,372
	Other accrued liabilities	4,292		1,503
	Liabilities of discontinued operations	—		903
	Total	$	21,112	$	14,680

NONRECURRING_CHARGES_Tables

NON-RECURRING CHARGES (Tables)	9 Months Ended
	Sep. 30, 2013
NON-RECURRING CHARGES	'
Schedule of non-recurring charges	'
	Total non-recurring charges, primarily related to the proxy contest with First Manhattan, consist of (in thousands):
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Share-based compensation (see Note 2)	$	12,716	$	—	$	12,716	$	—
	Proxy contest expenses	5,155		—		8,863		—
	Employee termination and related costs	2,872		—		2,872		—
	Operating lease exit costs	—		—		216		—
	Non-recurring charges	$	20,743	$	—	$	24,667	$	—

LONG_TERM_DEBT_Tables

LONG TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2013
LONG TERM DEBT	'
Schedule of debt	'
	The following table summarizes information on the debt (in thousands) as of:
		September 30, 2013
	Convertible Senior Notes due 2020:
	Fair value of the liability component	$	154,738
	Accumulated accretion of discount	4,904
	Net carrying value	$	159,642
	Senior Secured Notes due 2018:
	Carrying value	$	50,000
	Total Notes:
	Fair value of the liability component	$	204,738
	Accumulated accretion of discount	4,904
	Net carrying amount	$	209,642

SHAREBASED_COMPENSATION_Detail

SHARE-BASED COMPENSATION (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
SHARE-BASED COMPENSATION	'	'	'	'
Share-based compensation expense	$15,819,000	$4,680,000	$27,755,000	$10,922,000
Research and development	'	'	'	'
SHARE-BASED COMPENSATION	'	'	'	'
Share-based compensation expense	363,000	1,194,000	2,217,000	2,659,000
Selling, general and administrative	'	'	'	'
SHARE-BASED COMPENSATION	'	'	'	'
Share-based compensation expense	2,740,000	3,486,000	12,822,000	8,263,000
Non-recurring charges	'	'	'	'
SHARE-BASED COMPENSATION	'	'	'	'
Share-based compensation expense	12,716,000	'	12,716,000	'
Inventory	'	'	'	'
SHARE-BASED COMPENSATION	'	'	'	'
Total share-based compensation cost capitalized as part of cost of inventory	$75,000	'	$467,000	'

CASH_CASH_EQUIVALENTS_AND_AVAI2

CASH, CASH EQUIVALENTS AND AVAILABLE-FOR-SALE SECURITIES (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
Cash and cash equivalents and available-for-sale securities, Amortized Cost	'	'	'	'
Available-for-sale securities including cash and cash equivalents, Amortized Cost	$346,357	$214,553	'	'
Less amounts classified as cash equivalents, Amortized Cost	-143,121	-58,605	-62,274	-39,554
Available-for-sale securities, Amortized Cost	203,236	155,948	'	'
Available-for-sale securities, Gross Unrealized Gains	92	33	'	'
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value	'	'	'	'
Available-for-sale securities including cash and cash equivalents, Estimated Fair Value	346,449	214,586	'	'
Less amounts classified as cash equivalents, Estimated Fair Value	-143,121	-58,605	'	'
Available-for-sale securities, Estimated Fair Value	203,328	155,981	'	'
Maximum original contractual maturities of available for sale securities	'23 months	'	'	'
Cash and money market funds	'	'	'	'
Cash and cash equivalents and available-for-sale securities, Amortized Cost	'	'	'	'
Available-for-sale securities including cash and cash equivalents, Amortized Cost	143,121	58,605	'	'
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value	'	'	'	'
Available-for-sale securities including cash and cash equivalents, Estimated Fair Value	143,121	58,605	'	'
U.S. Treasury securities	'	'	'	'
Cash and cash equivalents and available-for-sale securities, Amortized Cost	'	'	'	'
Available-for-sale securities including cash and cash equivalents, Amortized Cost	203,236	155,948	'	'
Available-for-sale securities, Gross Unrealized Gains	92	33	'	'
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value	'	'	'	'
Available-for-sale securities including cash and cash equivalents, Estimated Fair Value	$203,328	$155,981	'	'

CASH_CASH_EQUIVALENTS_AND_AVAI3

CASH, CASH EQUIVALENTS AND AVAILABLE-FOR-SALE SECURITIES (Details 2) (Recurring basis, USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Level 2	'	'
Fair value measurements	'	'
Assets where Level 2 or Level 3 valuation techniques were used	$0	$0
Liabilities where Level 2 or Level 3 valuation techniques were used	0	0
Level 3	'	'
Fair value measurements	'	'
Assets where Level 2 or Level 3 valuation techniques were used	0	0
Liabilities where Level 2 or Level 3 valuation techniques were used	$0	$0

INVENTORIES_Details

INVENTORIES (Details) (USD $)	3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Inventory balances	'	'	'
Raw materials	$23,746	$23,746	$5,139
Work in process	609	609	2,635
Finished goods	12,981	12,981	17,506
Deferred costs	582	582	73
Total	37,918	37,918	25,353
Total charge for inventories on hand in excess of demand, plus a purchase commitment fee	$0	$10,225	'

PREPAID_EXPENSES_AND_OTHER_ASS2

PREPAID EXPENSES AND OTHER ASSETS (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
PREPAID EXPENSES AND OTHER ASSETS	'	'
Prepaid insurance	$3,382	$6,979
Prepaid sales and marketing expenses	4,791	5,735
Prepaid medical affairs expenses	3,136	1,782
Manufacturing capacity commitment fees	823	2,300
Withholding tax receivable	5,322	'
Other prepaid expenses and assets	3,226	2,363
Total	$20,680	$19,159

NONCURRENT_ASSETS_Details

NON-CURRENT ASSETS (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
NON-CURRENT ASSETS	'	'
Debt issuance costs	$6,169	'
Other non-current assets	1,705	287
Total	$7,874	$287

ACCRUED_AND_OTHER_LIABILITIES_1

ACCRUED AND OTHER LIABILITIES (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
ACCRUED AND OTHER LIABILITIES	'	'
Accrued employee compensation and benefits	$5,999	$3,859
Accrued manufacturing costs	407	4,135
Accrued sales and marketing expenses	624	2,908
Accrued interest on debt (see Note 11)	6,385	'
Accrued research and clinical expenses	3,405	1,372
Other accrued liabilities	4,292	1,503
Liabilities of discontinued operations	'	903
Total	$21,112	$14,680

NONRECURRING_CHARGES_Details

NON-RECURRING CHARGES (Details) (USD $)	3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Jul. 18, 2013
					Nonrecurring transaction	Nonrecurring transaction	Nonrecurring transaction
							Proxy Related Lawsuits
Other Nonrecurring (Income) Expense [Abstract]	'	'	'	'	'	'	'
Share-based compensation (see Note 2)	$15,819,000	$4,680,000	$27,755,000	$10,922,000	$12,716,000	$12,716,000	'
Proxy contest expenses	'	'	'	'	5,155,000	8,863,000	'
Employee termination and related costs	'	'	'	'	2,872,000	2,872,000	'
Operating lease exit costs	'	'	'	'	'	216,000	'
Non-recurring charges	20,743,000	'	24,667,000	'	20,743,000	24,667,000	'
Reimbursement of expenses incurred in connection with proxy solicitation	'	'	'	'	'	'	$3,000,000

DEFERRED_REVENUE_Details

DEFERRED REVENUE (Details)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Jul. 05, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
	USD ($)	USD ($)	Upfront payments	License and Commercialization Agreement	License and Commercialization Agreement	License and Commercialization Agreement	License and Commercialization Agreement
			Qsymia	SPEDRA	SPEDRA	Royalties	Royalties
			USD ($)	Menarini Group	Menarini Group	SPEDRA	SPEDRA
					EUR (€)	Menarini Group	Menarini Group
						EUR (€)	USD ($)
DEFERRED REVENUE	'	'	'	'	'	'	'
Deferred revenue	$20,147,000	$1,150,000	$9,500,000	'	'	€ 8,000,000	$10,600,000
Prepayment received for future royalties	'	'	'	'	6,700,000	6,700,000	'
Prepayment received for future royalties before withholding tax	'	'	'	'	€ 8,000,000	€ 8,000,000	'
Reimbursable withholding tax rate (as a percent)	'	'	'	16.00%	16.00%	16.00%	'

LICENSE_AND_COMMERCIALIZATION_1

LICENSE AND COMMERCIALIZATION AGREEMENT AND COMMERCIAL SUPPLY AGREEMENT WITH MENARINI (Details)	3 Months Ended	9 Months Ended	0 Months Ended	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Jul. 05, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
	USD ($)	USD ($)	License and Commercialization Agreement	License and Commercialization Agreement	License and Commercialization Agreement	License and Commercialization Agreement	License and Commercialization Agreement	License and Commercialization Agreement
			SPEDRA	SPEDRA	SPEDRA	SPEDRA	SPEDRA	SPEDRA
			Menarini Group	Menarini Group	Menarini Group	Menarini Group	Menarini Group	Menarini Group
			EUR (€)	EUR (€)	USD ($)	EUR (€)	USD ($)	EUR (€)
			item
License and commercial agreement and commercial supply agreement with Menarini	'	'	'	'	'	'	'	'
Number of European countries covered under the license agreement	'	'	40	'	'	'	'	'
Potential amount of approval and sales milestone to be received	'	'	€ 79,000,000	'	'	'	'	'
Payment for non-refundable, non-creditable license fee received	'	'	6,700,000	'	'	'	'	'
Payment for non-refundable, non-creditable license fee received before reimbursable withholding tax	'	'	8,000,000	'	'	'	'	'
Reimbursable withholding tax rate (as a percent)	'	'	16.00%	16.00%	'	'	'	'
Proceeds from payments for regulatory milestone	'	'	6,700,000	'	'	'	'	'
Proceeds from payments for regulatory milestone before reimbursable withholding tax	'	'	8,000,000	'	'	'	'	'
Reimbursable withholding tax rate on payment of regulatory milestone (as a percent)	'	'	16.00%	'	'	'	'	'
Prepayment received for future royalties	'	'	'	6,700,000	'	'	'	'
Prepayment received for future royalties before withholding tax	'	'	'	8,000,000	'	'	'	'
License revenue	21,000,000	21,000,000	'	'	21,000,000	16,000,000	21,000,000	16,000,000
Revenues for supply services and royalties	'	'	'	'	$0	'	$0	'

LONG_TERM_DEBT_Details

LONG TERM DEBT (Details) (USD $)

9 Months Ended

0 Months Ended

3 Months Ended

9 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

0 Months Ended

Sep. 30, 2013

29-May-13

Sep. 30, 2013

Sep. 30, 2013

21-May-13

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Mar. 25, 2013

Mar. 25, 2013

Mar. 25, 2013

Apr. 09, 2013

Mar. 25, 2013

Convertible Senior Notes Due 2020

Convertible Senior Notes Due 2020

Convertible Senior Notes Due 2020

Convertible Senior Notes Due 2020

Convertible Senior Notes Due 2020

Convertible Senior Notes Due 2020

Senior Secured Notes Due 2018

Senior Secured Notes Due 2018

Senior Secured Notes Due 2018

Senior Secured Notes Due 2018

Senior Secured Notes Due 2018

Senior Secured Notes Due 2018

Senior Secured Notes Due 2018

Senior Secured Notes Due 2018

Additional Paid-in Capital

Non-current assets

Purchase of a debt-like instrument from BioPharma

Purchase of a debt-like instrument from BioPharma

Purchase of a debt-like instrument from BioPharma

Purchase of a debt-like instrument from BioPharma

Purchase of a debt-like instrument from BioPharma

Purchase of a debt-like instrument from BioPharma

Purchase of a debt-like instrument from BioPharma

Minimum

Maximum

Initial closing

Secondary closing

Long-term debt

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Amount of offering

'

'

'

'

$220,000,000

'

'

'

'

'

'

'

'

'

'

Interest rate (as a percent)

'

'

'

'

4.50%

'

'

'

'

'

'

'

'

'

'

Additional aggregate principal amount

'

30,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Net proceeds from offering

290,247,000

241,800,000

'

'

'

'

'

'

'

'

'

'

'

48,400,000

'

Shares of common stock into which debt is convertible

'

'

'

16,826,000

'

'

'

'

'

'

'

'

'

'

'

Conversion rate in proportion to principal amount of Convertible Notes

'

'

'

$0.07

'

'

'

'

'

'

'

'

'

'

'

Conversion price per share (in dollars per share)

'

'

$14.86

$14.86

'

'

'

'

'

'

'

'

'

'

'

Initial fair value of the liability component

204,738,000

'

154,738,000

154,738,000

154,700,000

'

'

'

'

'

'

'

'

'

'

Carrying value of the equity component

'

'

'

'

95,300,000

'

'

'

'

'

'

'

'

'

'

Debt issuance costs

'

'

'

8,200,000

'

3,100,000

5,100,000

1,600,000

'

'

'

'

'

'

'

Combined effective interest rate (as a percent)

'

'

'

15.20%

'

'

'

'

'

'

'

'

'

'

'

Total interest expense recognized

'

'

5,700,000

8,100,000

'

'

'

'

'

'

'

'

'

'

'

Amortization of debt discount

'

'

3,400,000

4,900,000

'

'

'

'

'

'

'

'

'

'

'

Remaining expected life

'

'

'

'5 years 2 months 12 days

'

'

'

'

'

'

'

'

'

'

'

Cap price of capped call transactions (in dollars per share)

'

'

'

$20

'

'

'

'

'

'

'

'

'

'

'

Fair value of capped calls

'

'

'

34,700,000

'

'

'

'

'

'

'

'

'

'

'

Amount received

'

'

'

'

'

'

'

'

'

'

'

'

'

50,000,000

'

Amount received in funding and facility payments

'

'

'

'

'

'

'

'

'

'

'

'

'

500,000

'

Additional discretionary amount receivable

'

'

'

'

'

'

'

'

'

'

'

'

'

'

60,000,000

Additional discretionary amount receivable in funding and facility payments

'

'

'

'

'

'

'

'

'

'

'

'

'

'

600,000

Amount of reasonable and documented out-of-pocket legal costs and fees for which entity is responsible

'

'

'

'

'

'

'

'

'

'

'

'

300,000

'

'

Scheduled quarterly payment amount as a percentage of net sales

'

'

'

'

'

'

'

'

'

'

'

25.00%

'

'

'

Amount due as a percentage of net sales, if scheduled quarterly payments are less than 25% of the net sales

'

'

'

'

'

'

'

'

'

'

25.00%

'

'

'

'

Make-whole premium ratio

'

'

'

'

'

'

'

'

'

'

1.03

'

'

'

'

Annual implied effective interest rate (as a percent)

'

'

'

'

'

'

'

'

13.38%

13.38%

'

'

'

'

'

Imputed interest

'

'

'

'

'

'

'

'

$1,700,000

$3,200,000

'

'

'

'

'

LONG_TERM_DEBT_Details_2

LONG TERM DEBT (Details 2) (USD $)	Sep. 30, 2013	21-May-13
In Thousands, unless otherwise specified
Long-term debt	'	'
Fair value of the liability component	$204,738	'
Accumulated accretion of discount	4,904	'
Net carrying amount	209,642	'
Convertible Senior Notes Due 2020	'	'
Long-term debt	'	'
Fair value of the liability component	154,738	154,700
Accumulated accretion of discount	4,904	'
Net carrying amount	159,642	'
Senior Secured Notes Due 2018	'	'
Long-term debt	'	'
Net carrying amount	$50,000	'

NET_INCOME_LOSS_PER_SHARE_Deta

NET INCOME (LOSS) PER SHARE (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
NET INCOME (LOSS) PER SHARE	'	'	'	'
Equivalent shares of options excluded from computation of diluted net income (loss) per share because anti-dilutive effect	5,626,000	4,242,000	6,026,000	4,053,000
Convertible Notes	'	'	'	'
Net income (loss) per share	'	'	'	'
Net shares issued	'	'	0	'
Minimum stock price to trigger conversion of debt (in dollars per share)	'	'	20	'

LEGAL_MATTERS_Details

LEGAL MATTERS (Details) (USD $)	Jul. 16, 2013	Nov. 30, 2010	Jul. 12, 2013	Jul. 12, 2013	Jul. 18, 2013
	First Manhattan	Federal securities class action lawsuit	Shareholder derivative lawsuit	Proxy Related Lawsuits	Proxy Related Lawsuits
		person		First Manhattan	First Manhattan
Securities Related Class Action Lawsuits	'	'	'	'	'
Loss contingency, number of officers, defendants in lawsuit	'	2	'	'	'
Amount of damages sought	'	'	$0	$0	'
Outstanding shares of common stock owned (as a percent)	9.90%	'	'	'	'
Reimbursement of expenses incurred in connection with proxy solicitation	'	'	'	'	$3,000,000

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details) (USD $)	0 Months Ended			3 Months Ended	0 Months Ended	3 Months Ended	0 Months Ended	3 Months Ended	0 Months Ended	1 Months Ended	0 Months Ended
	Oct. 10, 2013	Oct. 10, 2013	Sep. 01, 2013	Dec. 31, 2013	Jan. 02, 2014	Dec. 31, 2013	Jan. 02, 2014	Dec. 31, 2013	Oct. 10, 2013	Oct. 31, 2013	Oct. 10, 2013
	Approval by the FDA	Milestone based on net sales target met	Manufacturing and Supply Agreement for Avanafil Tablets	Subsequent event	Subsequent event	Subsequent event	Subsequent event	Subsequent event	Subsequent event	Subsequent event	Subsequent event
	Forecast	Forecast	SPEDRA	Forecast	Forecast	Forecast	Forecast	Forecast	License and Commercialization Agreement	License and Commercialization Agreement	License and Commercialization Agreement
			Sanofi Winthrop Industrie	item	Maximum	Maximum	Minimum	Minimum	STENDRA	STENDRA	STENDRA
									Auxilium Pharmaceuticals, Inc.	Auxilium Pharmaceuticals, Inc.	Auxilium Pharmaceuticals, Inc.
											Maximum
Subsequent events	'	'	'	'	'	'	'	'	'	'	'
Upfront payments received	'	'	'	'	'	'	'	'	'	$30,000,000	'
Amount of regulatory milestone payment which the entity is eligible to receive	15,000,000	255,000,000	'	'	'	'	'	'	'	'	'
Termination period of the agreement from the launch of the product	'	'	'	'	'	'	'	'	'10 years	'	'
Period from the STENDRA launch in the U.S after which the agreement can be terminated by the counterparty	'	'	'	'	'	'	'	'	'1 year	'	'
Notice period for termination of the agreement by the counterparty after one year anniversary of the STENDRA launch in the U.S	'	'	'	'	'	'	'	'	'180 days	'	'
Notice period for termination of the agreement by the counterparty upon the entry of a generic avanafil product into the market	'	'	'	'	'	'	'	'	'30 days	'	'
Period available to the counterparty to cure the exclusion from participation in the U.S. federal healthcare programs in order to avoid the termination of the agreement by the entity	'	'	'	'	'	'	'	'	'	'	'120 days
Initial term	'	'	'5 years	'	'	'	'	'	'	'	'
Additional period of auto-renewal	'	'	'2 years	'	'	'	'	'	'	'	'
Number of employees reduced	'	'	'	20	'	'	'	'	'	'	'
Number of employees reduced (as a percent)	'	'	'	17.00%	'	'	'	'	'	'	'
Number of sales force excluded from the total workforce	'	'	'	150	'	'	'	'	'	'	'
Pre-tax restructuring charges	'	'	'	'	'	8,000,000	'	6,000,000	'	'	'
Employee termination costs	'	'	'	'	'	5,000,000	'	4,000,000	'	'	'
Non-cash share-based compensation expense related to the automatic acceleration of vesting of unvested stock options	'	'	'	'	'	1,500,000	'	1,000,000	'	'	'
Operating lease exit costs	'	'	'	'	'	1,500,000	'	1,000,000	'	'	'
Annual net cost savings	'	'	'	'	$8,000,000	'	$6,000,000	'	'	'	'