Vivus (VVUS) 10-K 9 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 29, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	VIVUS INC
Entity Central Index Key	881,524
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 238,937,273
Entity Common Stock, Shares Outstanding		104,075,642
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 95,395	$ 83,174
Available-for-sale securities	146,168	216,397
Accounts receivable, net	8,997	11,595
Inventories	13,602	34,447
Prepaid expenses and other assets	10,624	12,824
Total current assets	274,786	358,437
Property and equipment, net	994	1,346
Non-current assets	4,801	7,155
Total assets	280,581	366,938
Current liabilities:
Accounts payable	7,060	10,430
Accrued and other liabilities	15,891	16,314
Deferred revenue	22,142	19,445
Current portion of long-term debt	15,550	10,459
Total current liabilities	60,643	56,648
Long-term debt, net of current portion	219,219	217,324
Deferred revenue, net of current portion	6,508	8,876
Non-current accrued and other liabilities	1,296	1,572
Total liabilities	$ 287,666	$ 284,420
Commitments and contingencies
Stockholders' equity:
Preferred stock; $1.00 par value; 5,000 shares authorized; no shares issued and outstanding at December 31, 2015 and 2014
Common stock; $.001 par value; 200,000 shares authorized; 104,055 and 103,729 shares issued and outstanding at December 31, 2015 and 2014, respectively	$ 104	$ 104
Additional paid-in capital	829,428	825,691
Accumulated other comprehensive income (loss)	(261)	(28)
Accumulated deficit	(836,356)	(743,249)
Total stockholders' (deficit ) equity	(7,085)	82,518
Total liabilities and stockholders' equity	$ 280,581	$ 366,938

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	104,055,000	103,729,000
Common stock, shares outstanding	104,055,000	103,729,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue:
Net product revenue	$ 54,622	$ 45,277	$ 23,718
License and milestone revenue	11,574	38,614	55,838
Supply revenue	26,674	26,519	1,526
Royalty revenue	2,560	3,771
Total revenue	95,430	114,181	81,082
Operating expenses:
Cost of goods sold	34,157	33,387	4,868
Selling, general and administrative	79,387	111,539	158,235
Research and development	10,102	13,793	29,677
Inventory impairment and other non-recurring charges	32,061	6,173	42,916
Total operating expenses	155,707	164,892	235,696
Loss from operations	(60,277)	(50,711)	(154,614)
Interest Expense	33,317	32,535	19,532
Other expense (income), net	(490)	30	703
Total interest and other expense	32,827	32,565	20,235
Loss from continuing operations before income taxes	(93,104)	(83,276)	(174,849)
Provision for (benefit from) income taxes	3	(629)	97
Loss from continuing operations	(93,107)	(82,647)	(174,946)
Income from discontinued operations, net of tax			490
Net loss	$ (93,107)	$ (82,647)	$ (174,456)
Basic and diluted net loss per share:
Continuing operations (in dollars per share)	$ (0.90)	$ (0.80)	$ (1.72)
Discontinued operations (in dollars per share)	0	0	0
Basic and diluted net loss per share (in dollars per share)	$ (0.90)	$ (0.80)	$ (1.72)
Shares used in per share computation:
Basic and diluted (in shares)	103,926	103,456	101,174

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (93,107)	$ (82,647)	$ (174,456)
Other comprehensive loss:
Unrealized (losss) gain on securities, net of taxes	(233)	(94)	33
Comprehensive loss	$ (93,340)	$ (82,741)	$ (174,423)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Balances at Dec. 31, 2012	$ 101	$ 708,921	$ 33	$ (486,146)	$ 222,909
Balances (in shares) at Dec. 31, 2012	100,659,000
Sale of common stock through employee stock purchase plan		860			860
Sale of common stock through employee stock purchase plan (in shares)	103,000
Exercise of common stock options for cash	$ 2	13,704			13,706
Exercise of common stock options for cash (in shares)	2,366,000
Vesting of restricted stock units (in shares)	33,000
Share-based compensation expense		32,877			32,877
Equity component of convertible debt		95,262			95,262
Offering cost allocated to equity		(3,113)			(3,113)
Purchase of capped call transaction		(34,709)			(34,709)
Net unrealized (loss) gain on securities			33		33
Net loss				(174,456)	(174,456)
Balances at Dec. 31, 2013	$ 103	813,802	66	(660,602)	153,369
Balances (in shares) at Dec. 31, 2013	103,161,000
Sale of common stock through employee stock purchase plan		405			405
Sale of common stock through employee stock purchase plan (in shares)	113,000
Exercise of common stock options for cash	$ 1	1,718			1,719
Exercise of common stock options for cash (in shares)	385,000
Vesting of restricted stock units (in shares)	70,000
Share-based compensation expense		9,766			9,766
Net unrealized (loss) gain on securities			(94)		(94)
Net loss				(82,647)	(82,647)
Balances at Dec. 31, 2014	$ 104	825,691	(28)	(743,249)	$ 82,518
Balances (in shares) at Dec. 31, 2014	103,729,000				103,729,000
Sale of common stock through employee stock purchase plan		147			$ 147
Sale of common stock through employee stock purchase plan (in shares)	77,000
Vesting of restricted stock units (in shares)	249,000
Share-based compensation expense		3,590			3,590
Net unrealized (loss) gain on securities			(233)		(233)
Net loss				(93,107)	(93,107)
Balances at Dec. 31, 2015	$ 104	$ 829,428	$ (261)	$ (836,356)	$ (7,085)
Balances (in shares) at Dec. 31, 2015	104,055,000				104,055,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net loss	$ (93,107)	$ (82,647)	$ (174,946)
Adjustments to reconcile net loss to net cash used for operating activities from continuing operations:
Depreciation and amortization	1,387	1,112	973
Amortization of debt issuance costs and discounts	17,174	15,923	8,369
Amortization of discount or premium on available-for-sale securities	2,282	4,016	2,635
Share-based compensation expense	3,590	9,766	32,397
Unrealized foreign currency remeasurement gain			(235)
Loss on disposal and impairment of property and equipment			896
Inventory impairment charge	29,522	2,170	7,525
Changes in assets and liabilities:
Accounts receivable	2,598	619	(9,436)
Inventories	(8,487)	11,886	(30,195)
Prepaid expenses and other assets	2,639	7,734	2,086
Accounts payable	(3,370)	(329)	(14,821)
Accrued and other liabilities	(889)	(9,061)	13,170
Deferred revenue	329	706	26,465
Net cash used for operating activities from continuing operations	(46,332)	(38,105)	(135,117)
Net cash used for operating activities from discontinued operations			(208)
Net cash used for operating activities	(46,332)	(38,105)	(135,325)
Cash flows from investing activities:
Property and equipment purchases	(310)	(262)	(1,795)
Purchases of available-for-sale securities	(213,536)	(240,983)	(329,145)
Proceeds from maturity of available-for-sale securities	281,250	260,500	242,500
Non-current assets		(3,362)	(1,681)
Net cash provided by (used for) investing activities	67,404	15,893	(90,121)
Cash flows from financing activities:
Net proceeds from debt issuance			290,247
Payments of note payable	(8,998)
Payments for capped call transactions			(34,709)
Net proceeds from exercise of common stock options		1,719	13,706
Sale of common stock through employee stock purchase plan	147	405	859
Net cash (used for) provided by financing activities	(8,851)	2,124	270,103
Net decrease in cash and cash equivalents	12,221	(20,088)	44,657
Cash and cash equivalents:
Beginning of period	83,174	103,262	58,605
End of period	95,395	83,174	103,262
Supplemental cash flow disclosure:
Interest paid	18,756	20,251	5,000
Income taxes paid	58	94	32
Non-cash investing activities:
Unrealized (loss) gain on securities	$ (233)	$ (94)	$ 33

Business and Significant Accoun

Business and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Business and Significant Accounting Policies
Business and Significant Accounting Policies	Note 1 . Business and Significant Accounting Policies Business VIVUS, Inc. is a biopharmaceutical company with two therapies approved by the U.S. Food and Drug Administration, or FDA: Qsymia ® for chronic weight management and STENDRA ® for erectile dysfunction. STENDRA is also approved by the European Commission, or EC, under the trade name, SPEDRA™, for the treatment of erectile dysfunction in the EU. Qsymia, or phentermine and topiramate extended-release, was approved by the FDA in July 2012, as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adult patients with an initial body mass index, or BMI, of 30 or greater, or obese patients, or 27 or greater, or overweight patients, in the presence of at least one weight ‑related comorbidity, such as hypertension, type 2 diabetes mellitus or high cholesterol, or dyslipidemia. In September 2012, Qsymia became available in the U.S. market through a limited number of certified home delivery networks and, in July 2013, Qsymia became available in retail pharmacies . Prior to August 2015, the Company commercialized Qsymia in the U.S. primarily through a dedicated contract sales force, supported by an internal commercial team. In August 2015, the Company directly hired approximately 50 former contract sales representatives to continue promoting Qsymia to physicians. STENDRA, or avanafil, is an oral phosphodiesterase type 5, or PDE5, inhibitor that the Company has licensed from Mitsubishi Tanabe Pharma Corporation, or MTPC. In July 2013, the Company entered into an agreement with the Menarini Group, through its subsidiary Berlin-Chemie AG, or Menarini, under which Menarini received an exclusive license to commercialize and promote SPEDRA for the treatment of ED in over 40 European countries, including the EU, as well as Australia and New Zealand. Menarini commenced its commercialization launch of the product in the EU in early 2014. In October 2013, the Company entered into an agreement with Auxilium Pharmaceuticals, Inc., or Auxilium, under which Auxilium received an exclusive license to commercialize and promote STENDRA in the United States and Canada. On the same date, we also entered into a supply agreement with Auxilium, whereby VIVUS will supply Auxilium with STENDRA drug product for commercialization. Auxilium began commercializing STENDRA in the U.S. market in December 2013. In January 2015, Auxilium was purchased by Endo International, plc. In December 2015, Auxilium notified the Company of its intention to return the U.S. and Canadian commercial rights for STENDRA. Auxilium has provided its contractually required six -month notice of termination which, absent an agreement between Auxilium and the Company for an earlier termination date, will result in the termination of the license agreement and supply agreement on June 30, 2016. In December 2013, the Company entered into an agreement with Sanofi under which Sanofi received an exclusive license to commercialize and promote avanafil for therapeutic use in humans in Africa, the Middle East, Turkey, and the Commonwealth of Independent States, or CIS, including Russia. Sanofi will be responsible for obtaining regulatory approval in its territories. Sanofi intends to market avanafil under the trade name SPEDRA or STENDRA. Effective as of December 2013, the Company also entered into a supply agreement, or the Sanofi Supply Agreement, with Sanofi Winthrop Industrie, a wholly-owned subsidiary of Sanofi. Under the license agreements with Menarini, Auxilium and Sanofi, avanafil is expected to be commercialized in over 100 countries worldwide. Under the Auxilium agreement, the Company has received approximately $45.0 million in license and milestone payments out of a potential of $300.0 million, as well as royalty payments. The Company does not anticipate any additional milestone revenue from the Auxilium agreement. Under the Menarini agreement, the Company has received approximately $63.0 million in license and milestone payments out of a potential of approximately $100.0 million, as well as royalty payments. Under the Sanofi agreement, the Company has received approximately $10.0 million in license and milestone payments out of a potential of $61.0 million. In addition, the Company is currently in discussions with potential collaboration partners to market and sell STENDRA for other territories in which it does not currently have a commercial collaboration. At December 31, 2015, the Company’s accumulated deficit was approximately $836.4 million . Based on current plans, management expects to incur further losses for the foreseeable future. Management believes that the Company’s existing capital resources combined with anticipated future cash flows will be sufficient to support its operating needs at least for the next twelve months. However, the Company anticipates that it may require additional funding to expand the use of Qsymia through targeted patient and physician education, find the right partner for expanded Qsymia commercial promotion to a broader primary care physician audience, create a pathway for centralized approval of the marketing authorization application for Qsiva in the EU, continue the expansion of our distribution of Qsymia through certified retail pharmacy locations, conduct post-approval clinical studies for Qsymia, conduct non-clinical and clinical research and development work to support regulatory submissions and applications for our future investigational drug candidates, finance the costs involved in filing and prosecuting patent applications and enforcing or defending our patent claims, if any, to fund operating expenses, establish additional or new manufacturing and marketing capabilities, and manufacture quantities of its drugs and investigational drug candidates and to make payments under its existing license agreement and supply agreements for STENDRA. If the Company requires additional capital, it may seek any required additional funding through collaborations, public and private equity or debt financings, capital lease transactions or other available financing sources. Additional financing may not be available on acceptable terms, or at all. If additional funds are raised by issuing equity securities, substantial dilution to existing stockholders may result. If adequate funds are not available, the Company may be required to delay, reduce the scope of or eliminate one or more of its commercialization or development programs or obtain funds through collaborations with others that are on unfavorable terms or that may require the Company to relinquish rights to certain of its technologies, product candidates or products that it would otherwise seek to develop on its own. Management has evaluated all events and transactions that occurred after December 31, 2015, through the date these consolidated financial statements were filed. There were no events or transactions occurring during this period that require recognition or disclosure in these consolidated financial statements. The Company operates in a single segment, the development and commercialization of novel therapeutic products. Significant Accounting Policies Reclassifications Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year’s presentation. In the prior ye ar, certain amounts related to the long-term portion of deferred rent were included in c urrent liabilities as they were considered immaterial. In the current year, the Company has presented these in non-current accrued and other liabilities on the balance sheet and reclassified the amounts from the prior year accordingly. Principles of Consolidation The consolidated financial statements include the accounts of VIVUS, Inc., and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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, 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. Cash and Cash Equivalents The Company considers highly liquid investments with maturities from the date of purchase of three months or less to be cash equivalents. At December 31, 2015 and 2014, all cash equivalents were invested in money market funds and U.S. Treasury securities. These investments are recorded at fair value. Available ‑for ‑Sale Securities The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. Marketable securities have been classified and accounted for as available ‑for ‑sale. 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. Securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of stockholders’ (deficit) equity, unless the decline in value is deemed to be other ‑than ‑temporary, in which case such securities are written down to fair value and the loss is charged to other ‑than ‑temporary loss on impaired securities. The Company periodically evaluates its investment securities for other ‑than ‑temporary declines based on quantitative and qualitative factors. Any losses that are deemed other-than-temporary are recognized as a non-operating loss. To date, the Company has not had any other-than-temporary declines in the value of any of its investment portfolio. Any realized gains or losses on the sale of marketable securities are determined on a specific identification method, and such gains and losses are reflected as a component of interest and other income (expense). Fair Value Measurements Financial instruments include cash equivalents, available ‑for ‑sale securities, accounts receivable, accounts payable and accrued liabilities. Available ‑for ‑sale securities are carried at fair value. The carrying value of cash equivalents, accounts payable and accrued liabilities approximate their fair value due to the relatively short ‑term nature of these instruments. Debt instruments are initially recorded at face value, with coupon interest and amortization of debt issuance discounts and costs recognized as interest expense. The Company’s Convertible Notes contain a conversion option that is classified as equity. The Company determined the fair value of the liability component of the debt instrument and allocated the excess amount of $95.3 million from the initial proceeds to the conversion option in additional paid-in capital. 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. This excess is reported as a debt discount and is amortized as non ‑cash interest expense, using the effective-interest method, over the expected life of the Convertible Notes. The Convertible Notes are recorded in the balance sheet as a component of long-term debt. Issuance costs related to the conversion feature of the Convertible Notes were charged to additional paid ‑in capital. The portion of the issuance costs 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 with the underwriters. The fair value of the purchased capped calls of $34.7 million was recorded to additional paid-in capital. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, available ‑for ‑sale ‑securities, and accounts receivable. The Company has established guidelines to limit its exposure to credit risk by placing investments in high credit quality money market funds, U.S. Treasury securities or corporate debt securities and by placing investments with maturities that maintain safety and liquidity within the Company’s liquidity needs. The Company has also established guidelines for the issuance of credit to existing and potential customers. Accounts Receivable, Allowances for Doubtful Accounts and Cash Discounts The Company extends credit to its customers for product sales resulting in accounts receivable. Customer accounts are monitored for past due amounts. Past due accounts receivable that are determined to be uncollectible are written off against the allowance for doubtful accounts. Allowances for doubtful accounts are estimated based upon past due amounts, historical losses and existing economic factors, and are adjusted periodically. Historically, the Company has not had any significant uncollected accounts. The Company offers cash discounts to its customers, generally 2% of the sales price, as an incentive for prompt payment. The estimate of cash discounts is recorded at the time of sale. The Company accounts for the cash discounts by reducing revenue and accounts receivable by the amount of the discounts it expects the customers to take. The accounts receivable are reported in the consolidated balance sheets, net of the allowances for doubtful accounts and cash discounts. There is no allowance for doubtful accounts at December 31, 2015 or 2014. The allowance for cash discounts is $164,000 and $150,000 at December 31, 2015 and 2014, respectively. Inventories Inventories are valued at the lower of cost or market. Cost is determined using the first ‑in, first ‑out method using a weighted average cost method calculated for each production batch. Inventory includes the cost of the active pharmaceutical ingredients, or APIs, raw materials and third ‑party contract manufacturing and packaging services. Indirect overhead costs associated with production and distribution are allocated to the appropriate cost pool and then absorbed into inventory based on the units produced or distributed, assuming normal capacity, in the applicable period. Inventory costs of product shipped to customers, but not yet recognized as revenue, are recorded within inventories on the consolidated balance sheets and are subsequently recognized to cost of goods sold when revenue recognition criteria have been met. The Company’s policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected requirements. The estimate of excess quantities is subjective and primarily dependent on the Company’s estimates of future demand for a particular product. If the estimate of future demand is inaccurate based on lower actual sales, the Company may increase the write down for excess inventory for that product and record a charge to inventory impairment in the accompanying consolidated statements of operations. 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 year ended December 31, 2015, the Company recognized an impairment charge of $29.5 million for Qsymia API inventory in excess of projected demand. For the year ended December 31, 2014, the Company recognized a total charge of $2.2 million for Qsymia inventories on hand in excess of projected demand. For the year ended December 31, 2013, the Company recognized a total charge of $10.2 million for Qsymia inventories on hand in excess of demand, plus a purchase commitment fee. Property and Equipment Property and equipment is stated at cost and includes leasehold improvements, computers and software and furniture and fixtures. Depreciation is computed using the straight ‑line method over the estimated useful lives of two to seven years for computers, software, furniture and fixtures . Leasehold improvements are amortized using the straight ‑line method over the shorter of the remaining lease term or the estimated useful lives. Expenditures for repairs and maintenance, which do not extend the useful life of the property and equipment, are expensed as incurred. Gains and losses associated with dispositions are reflected as a non-operating gain or loss in the accompanying consolidated statements of operations. Long ‑lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to an estimate of undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. Debt Issuance Costs Debt issuance costs, which are included in other assets, are amortized as interest expense using the effective-interest method over the expected term of the debt. Revenue Recognition Product Revenue: The Company recognizes product revenue from the sales of Qsymia, when: (i) persuasive evidence that an arrangement exists, (ii) delivery has occurred and title has passed, (iii) the price is fixed or determinable and (iv) collectability is reasonably assured. Revenue from sales transactions where the customer has the right to return the product is recognized at the time of sale only if: (i) the Company’s price to the customer is substantially fixed or determinable at the date of sale, (ii) the customer has paid the Company, or the customer is obligated to pay the Company and the obligation is not contingent on resale of the product, (iii) the customer’s obligation to the Company would not be changed in the event of theft or physical destruction or damage of the product, (iv) the customer acquiring the product for resale has economic substance apart from that provided by the Company, (v) the Company does not have significant obligations for future performance to directly bring about resale of the product by the customer, and (vi) the amount of future returns can be reasonably estimated. Product Revenue Allowances: Product revenue is recognized net of consideration paid to the Company’s customers, wholesalers and certified pharmacies, for services rendered by the wholesalers and pharmacies in accordance with the wholesalers and certified pharmacy services network agreements, and include a fixed rate per prescription shipped and monthly program management and data fees. These services are not deemed sufficiently separable from the customers’ purchase of the product; therefore, they are recorded as a reduction of revenue at the time of revenue recognition. Other product revenue allowances include certain prompt pay discounts and allowances offered to the Company’s customers, program rebates and chargebacks. These product revenue allowances are recognized as a reduction of revenue at the later of the date at which the related revenue is recognized or the date at which the allowance is offered. The Company also offers discount programs to patients. Calculating certain of these items involves estimates and judgments based on sales or invoice data, contractual terms, utilization rates, new information regarding changes in these programs’ regulations and guidelines that would impact the amount of the actual rebates or chargebacks. The Company reviews the adequacy of product revenue allowances on a quarterly basis. Amounts accrued for product revenue allowances are adjusted when trends or significant events indicate that adjustment is appropriate and to reflect actual experience. The Company ships units of Qsymia through a distribution network that includes certified retail pharmacies. Qsymia has a 36 –month shelf life and the Company grants rights to its customers to return unsold product six months prior to and up to 12 months after product expiration and issue credits that may be applied against existing or future invoices. Given the Company’s limited history of selling Qsymia and the duration of the return period, the Company has not had sufficient information to reliably estimate expected returns of Qsymia at the time of shipment, and therefore revenue is recognized when units are dispensed to patients through prescriptions, at which point, the product is not subject to return. The Company obtains prescription shipment data from the pharmacies to determine the amount of revenue to recognize. The Company will continue to recognize revenue for Qsymia based upon prescription sell ‑through until it has sufficient historical information to reliably estimate returns. As of December 31, 2015, the Company had deferred revenue of $19.3 million related to shipments of Qsymia, which represents product shipped to its customers, but not yet dispensed to patients through prescriptions. A corresponding accounts receivable is also recorded for this amount, as the payments from customers are not contingent upon the sale of product to patients. Supply Revenue: The Company recognizes supply revenue from the sales of STENDRA or SPEDRA when the four basic revenue recognition criteria described above are met. The Company produces STENDRA or SPEDRA through a contract manufacturing partner and then sells it to its commercialization partners. The Company is the primary responsible party in the commercial supply arrangements and bears significant risk in the fulfillment of the obligations, including risks associated with manufacturing, regulatory compliance and quality assurance, as well as inventory, financial and credit loss. As such, the Company recognizes supply revenue on a gross basis as the principal party in the arrangements. Under the Company’s product supply agreements, as long as the product meets specified product dating criteria at the time of shipment to the partner, the Company’s commercialization partners do not have a right of return or credit for expired product. As such, the Company recognizes revenue for products that meet the dating criteria at the time of shipment. 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 if the deliverables in the arrangement represent separate units of accounting. In determining the units of accounting, management evaluates certain criteria, including whether the deliverables have value to its customers on a stand ‑alone basis. Factors considered in this determination include whether the deliverable is proprietary to the Company, whether the customer can use the license or other deliverables for their intended purpose without the receipt of the remaining elements, whether the value of the deliverable is dependent on the undelivered items, and whether there are other vendors that can provide the undelivered items. Deliverables that meet these criteria are considered a separate unit of accounting. Deliverables that do not meet these criteria are combined and accounted for as a single unit of accounting. When deliverables are separable, the Company allocates non ‑contingent consideration to each separate unit of accounting 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 exists for a deliverable, the Company uses best estimated selling price, or BESP, for that deliverable. Significant management judgment may be required to determine the relative selling price of each element. 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 reported 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 the Company’s 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 the Company’s 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, 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 when the four basic revenue recognition criteria described above are met. Cost of Goods Sold Cost of goods sold for units dispensed to patients through prescriptions, or shipped to customers without a right of return or credit, includes the inventory costs of APIs, third ‑party contract manufacturing costs, packaging and distribution costs, royalties, cargo insurance, freight, shipping, handling and storage costs, and overhead costs of the employees involved with production. Specifically, cost of goods sold for Qsymia dispensed to patients includes the inventory costs of the APIs, third ‑party contract manufacturing and packaging and distribution costs, royalties, cargo insurance, freight, shipping, handling and storage costs, and overhead costs of the employees involved with production; cost of goods sold for STENDRA shipped to partners includes the inventory costs of purchased tablets, freight, shipping and handling costs. The cost of goods sold associated with deferred revenue on Qsymia and STENDRA product shipments is recorded as deferred costs, which are included in inventories in the consolidated balance sheets, until such time as the deferred revenue is recognized. Research and Development Expenses Research and development, or R&D, expenses include license fees, related compensation, consultants’ fees, facilities costs, administrative expenses related to R&D activities and clinical trial costs incurred by clinical research organizations or CROs, and research institutions under agreements that are generally cancelable, among other related R&D costs. The Company also records accruals for estimated ongoing clinical trial costs. Clinical trial costs represent costs incurred by CRO and clinical sites and include advertising for clinical trials and patient recruitment costs. These costs are recorded as a component of R&D expenses and are expensed as incurred. Under the Company’s agreements, progress payments are typically made to investigators, clinical sites and CROs. The Company analyzes the progress of the clinical trials, including levels of patient enrollment, invoices received and contracted costs when evaluating the adequacy of accrued liabilities. Significant judgments and estimates must be made and used in determining the accrued balance in any accounting period. Actual results could differ from those estimates under different assumptions. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. In addition, the Company has obtained rights to patented intellectual properties under several licensing agreements for use in research and development activities. Non ‑refundable licensing payments made for intellectual properties that have no alternative future uses are expensed to research and development as incurred. Advertising Expenses Advertising expenses are expensed as incurred. The Company incurred advertising and sales promotion costs related to its marketing of Qsymia of $12.6 million, $10.1 million and $26.1 million in 2015, 2014 and 2013, respectively. Share ‑Based Compensation The Company follows the fair value method of accounting for share ‑based compensation arrangements in accordance with FASB ASC topic 718, Compensation—Stock Compensation, or ASC 718. Compensation expense is recognized, using a fair ‑value based method, for all costs related to share ‑based payments including stock options and restricted stock units and stock issued under the employee stock purchase plan. The Company estimates the fair value of share ‑based payment awards on the date of the grant using the Black ‑Scholes option ‑pricing model. The fair value of each option award is estimated on the grant date using a Black ‑Scholes option ‑pricing model. The expected term, which represents the period of time that options granted are expected to be outstanding, is derived by analyzing the historical experience of similar awards, giving consideration to the contractual terms of the share ‑based awards, vesting schedules and expectations of future employee behavior. Expected volatilities are estimated using the historical share price performance over the expected term of the option. The Company also considers other factors such as its planned clinical trials and other company activities that may affect the volatility of VIVUS’s stock in the future but determined that, at this time, the historical volatility was more indicative of expected future stock price volatility. The risk ‑free interest rate for the period matching the expected term of the option is based on the U.S. Treasury yield curve in effect at the

Cash, Cash Equivalents and Avai

Cash, Cash Equivalents and Available-For-Sale Securities	12 Months Ended
	Dec. 31, 2015
CASH, CASH EQUIVALENTS AND AVAILABLE-FOR-SALE SECURITIES
CASH, CASH EQUIVALENTS AND AVAILABLE-FOR-SALE SECURITIES	Note 2. 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 consist of the following (in thousands): As of December 31, 2015 Gross Gross Cash and cash equivalents and available-for-sale Amortized Unrealized Unrealized Estimated securities Cost Gains Losses Fair Value Cash and money market funds $ $ — $ — $ U.S. Treasury securities — Corporate debt securities Total Less amounts classified as cash and cash equivalents — — Total available-for-sale securities $ $ $ $ As of December 31, 2014 Gross Gross Cash and cash equivalents and available-for-sale Amortized Unrealized Unrealized Estimated securities Cost Gains Losses Fair Value Cash and money market funds $ $ — $ — $ U.S. Treasury securities Total Less amounts classified as cash and cash equivalents — — Total available-for-sale securities $ $ $ $ As of December 31, 2015, the Company’s available ‑for ‑sale securities have original contractual maturities up to 36 months. In response to changes in the availability of and the yield on alternative investments as well as liquidity requirements, the Company may sell 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 Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value. The three levels are: · Level 1 — Quoted prices in active markets for identical assets or liabilities. · Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table represents the fair value hierarchy for our cash equivalents and available-for-sale securities by major security type (in thousands): As of December 31, 2015 Level 1 Level 2 Level 3 Total Cash and money market funds $ $ — $ — $ U.S. Treasury securities — — Corporate debt securities — — Total $ $ $ — $ As of December 31, 2014 Level 1 Level 2 Level 3 Total Cash and money market funds $ $ — $ — $ U.S. Treasury securities — — Total $ $ — $ — $

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2015
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE	Note 3. Accounts Receivable Accounts receivable consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Qsymia $ $ STENDRA/SPEDRA Qsymia allowance for cash discounts Net $ There was no allowance for doubtful accounts at December 31, 2015 or 2014.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2015
INVENTORIES
INVENTORIES	Note 4. Inventories Inventories consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Raw materials $ $ Work-in-process Finished goods Deferred costs Inventories $ $ Raw materials inventories as of December 31, 2015 consist primarily of the active pharmaceutical ingredients, or API, for Qsymia and STENDRA/SPEDRA. Raw materials inventories as of December 31, 2014 consisted primarily of API for Qsymia. Deferred costs inventories consist primarily of Qsymia and represents Qsymia product shipped to the Company’s wholesalers and certified retail pharmacies, but not yet dispensed to patients through prescriptions, net of prompt payment discounts, and for which recognition of revenue has been deferred.

Prepaid Expenses and Other Asse

Prepaid Expenses and Other Assets	12 Months Ended
	Dec. 31, 2015
PREPAID EXPENSES AND OTHER ASSETS
PREPAID EXPENSES AND OTHER ASSETS	Note 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Prepaid sales and marketing expenses $ $ Debt issuance costs Prepaid insurance Other prepaid expenses and assets Total $ $ The amounts included in prepaid expenses and other assets consist primarily of prepayments for future services, a receivable from a supplier, prepaid interest and interest income receivable. These costs have been deferred as prepaid expenses and other current assets on the consolidated balance sheets 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 receivable is collected by the Company.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2015
Property and Equipment.
Property and Equipment	Note 6. Property and Equipment Property and equipment consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Computers and software $ $ Furniture and fixtures Manufacturing equipment Leasehold improvements Accumulated depreciation Property and equipment, net $ $

Non-Current Assets

Non-Current Assets	12 Months Ended
	Dec. 31, 2015
NON-CURRENT ASSETS
NON-CURRENT ASSETS	Note 7. Non ‑Current Assets Non ‑current assets consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Debt issuance costs $ $ Other non-current assets Total $ $ The amounts included in other non-current assets primarily consist of patent acquisition and assignment costs (see Note 10).

Accrued and Other Liabilities

Accrued and Other Liabilities	12 Months Ended
	Dec. 31, 2015
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES	Note 8. Accrued and Other Liabilities Accrued and other liabilities consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Accrued employee compensation and benefits $ $ Accrued non-recurring charges (see Note 10) Accrued interest on debt (see Note 13) Accrued manufacturing costs Other accrued liabilities Total $ $ The amounts included in other accrued liabilities consist of obligations primarily related to sales, marketing, research, clinical development, corporate activities and royalties, including a payable to Endo related to the royalty revenue adjustment.

Non Current Accrued and Other L

Non Current Accrued and Other Liabilities	12 Months Ended
	Dec. 31, 2015
NON-CURRENT ACCRUED AND OTHER LIABILITIES
NON-CURRENT ACCRUED AND OTHER LIABILITIES	Note 9. Non ‑Current Accrued and Other Liabilities Non ‑current accrued and other liabilities were $ 1.3 million and $1.6 million at December 31, 2015 and 2014, respectively, and were primarily comprised of deferred rent and costs associated with the exit of certain operating leases and security deposits relating to the sublease agreements (see Note 10).

Inventory Impairment and Other

Inventory Impairment and Other Non-Recurring Charges	12 Months Ended
	Dec. 31, 2015
NON-RECURRING CHARGES
NON-RECURRING CHARGES	Note 10. Inventory Impairment and Other Non-Recurring Charges Inventory impairment and other non-recurring charges consist of the following (in thousands): Year Ended December 31, 2015 2014 2013 Inventory impairment (see Note 4) $ $ $ Employee severance and related costs Patent settlement — — Share-based compensation (see Note 15) Proxy contest expenses — — Operating lease termination costs — — Total inventory impairment and other non-recurring expense $ $ $ As discussed in Note 4, in 2015 the Company recorded inventory impairment charges primarily for Qsymia API inventory in excess of expected demand. In 2014, the Company recorded inventory impairment charges for finished goods and certain non-API raw materials on hand in excess of demand and, in 2013, the Company recorded inventory impairment charges for inventories on hand in excess of demand, plus a purchase commitment fee. In 2015, the Company recorded employee severance and related costs and share-based compensation related to the July 2015 corporate restructuring plan, which reduced the Company’s workforce by approximately 60 job positions. In 2014 and 2013, the Company recorded employee severance and related costs, share-based compensation and operating lease termination costs related to the 2013 cost reduction plan that reduced the Company’s workforce by approximately 20 employees. In 2014, the Company paid $5.0 million in connection with the transfer and assignment of certain patents from Janssen Pharmaceuticals, Inc. Of the $5.0 million, approximately $1.9 million was recognized as a non-recurring expense for the year ended December 31, 2014 as it related to a legal settlement. The remaining balance of approximately $3.1 million was recorded as an intangible asset and is being amortized as cost of goods sold through their expiration dates. In 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 terms of various agreements with certain of the Company’s employees. Under these 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 these agreements. As part of the settlement agreement with First Manhattan, the Company paid the reasonable and documented expenses incurred by First Manhattan in connection with its proxy contest. The following table sets forth activity for the proxy contest and cost reduction plans, the balance of which is primarily comprised of employee severance costs (in thousands): Proxy Facilities- contest Severance related costs obligations obligations Total Balance of accrued costs at December 31, 2012 $ — $ — $ — $ — Charges Payments Balance of accrued costs at December 31, 2013 — Charges — — Payments — Balance of accrued costs at December 31, 2014 — Charges — — Payments — Balance of accrued costs at December 31, 2015 $ — $ $ $ (1) The accrued facilities-related costs at December 31, 2015 represent estimated losses, net of expected subleases, on space vacated as part of the Company’s cost reduction plan. The noncancelable operating leases and scheduled payments against the amounts accrued extend through May 2020, unless the Company is able to negotiate earlier terminations. (2) In addition to the above non-recurring charges, the Company incurred non-cash share-based compensation expense of $0.3 million and $14.1 million for the years ended December 31, 2014 and 2013, respectively (see Note 15). Commencing in May 2014, the Company subleased a portion of its Evelyn Lease consisting of approximately 14,105 square feet of space for a term of 36 months at a starting annual rental rate of $42 per square feet (subject to agreed increases). The sublessee received an abatement of monthly installments of rents for months one through four . Minimum rents expected to be received under this sublease as of December 31, 2015 are $626,000 and $212,000 in fiscal years 2016 and 2017, respectively. Upon the completion of the sublease for this space, the Company expects to either find usage or to locate a suitable sublessee for the remaining duration of the Company’s Evelyn Lease. Commencing in September 2014, the Company subleased the expansion space relating to the Castro Lease. The sublease consists of approximately 4,914 square feet of space for a term of 31 months at a starting annual rental rate of $53 per square feet (subject to agreed increases). The sublessee received an abatement of the first monthly installment. Minimum rents expected to be received under this sublease as of December 31, 2015 are $274,000 and $69,000 in fiscal years 2016 and 2017, respectively. Of the total accrued employee severance and facilities-related costs as of December 31, 2015, $0.5 million is included under current liabilities in “Accrued and other liabilities " and $0.4 million is included in “Non ‑current accrued and other liabilities.” The balance of the accrued employee severance and facilities-related costs at December 31, 2015 is anticipated to be paid out as follows (in thousands): 2016 $ 2017 2018 Thereafter $

Deferred Revenue

Deferred Revenue	12 Months Ended
	Dec. 31, 2015
DEFERRED REVENUE
DEFERRED REVENUE	Note 11. Deferred Revenue Deferred revenue consists of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Qsymia deferred revenue - current $ $ SPEDRA deferred revenue - current Deferred revenue - current $ $ SPEDRA deferred revenue - non-current $ $ Qsymia deferred revenue consists of product shipped to the Company’s wholesalers, certified retail pharmacies and certified home delivery pharmacy services networks, but not yet dispensed to patients through prescriptions, net of prompt payment discounts. SPEDRA deferred revenue relates to a prepayment for future royalties on sales of SPEDRA.

License, Commercialization and

License, Commercialization and Supply Agreements	12 Months Ended
	Dec. 31, 2015
LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS
LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS	Note 12. License, Commercialization and Supply Agreements During 2013, the Company entered into license and commercialization agreements and commercial supply agreements with the Menarini Group, through its subsidiary Berlin Chemie AG, or Menarini, Auxilium Pharmaceuticals, Inc., or Auxilium, and Sanofi and its affiliate, or Sanofi, to commercialize and promote STENDRA or SPEDRA in their respective territories. Menarini’s territory consists of over 40 European countries, including the EU, plus Australia and New Zealand. Auxilium’s territory consists of the United States and Canada and their respective territories. In January 2015, Auxilium was purchased by Endo International, plc. In December 2015, Auxilium notified the Company of Auxilium’s intention to return the U.S. and Canadian commercial rights for STENDRA to the Company. Auxilium has provided its contractually required six -month notice of termination which, absent an agreement between Auxilium and us for an earlier termination date, will result in the termination of the license agreement and supply agreement on June 30, 2016. Sanofi’s territory consists of Africa, the Middle East, Turkey and Eurasia.

Long Term Debt

Long Term Debt	12 Months Ended
	Dec. 31, 2015
LONG TERM DEBT
LONG TERM DEBT	Note 13. Long ‑Term Debt Convertible Senior Notes Due 2020 In May 2013, the Company closed an offering of $220.0 million in 4.5% Convertible Senior Notes due May 2020, or the Convertible Notes. The Convertible Notes are governed by an indenture, dated May 2013 between the Company and Deutsche Bank National Trust Company, as trustee. In May 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 at a conversion rate of approximately $14.86 per share. Total net proceeds from the Convertible Notes were approximately $241.8 million. The Convertible Notes are convertible at the option of the holders under certain conditions at any time prior to the close of business on the business day immediately preceding November 1, 2019. On or after November 1, 2019, holders may convert all or any portion of their Convertible Notes at any time at their option at the conversion rate then in effect, 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 our common stock, at the Company’s election. Interest payments are made quarterly. For the year ended December 31, 2015, total interest expense related to the Convertible Notes was $27.2 million, including amortization of $16.0 million of the debt discount and $848,000 of deferred financing costs. For the year ended December 31, 2014, total interest expense related to the Convertible Notes was $25.0 million, including amortization of $14.7 million of the debt discount and $784,000 of deferred financing costs. Senior Secured Notes Due 2018 In March 2013, the Company entered into the Purchase and Sale Agreement between the Company and BioPharma Secured Investments III Holdings Cayman LP, a Cayman Islands exempted limited partnership, 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 in April 2013. The Company had the option, but elected not to exercise it, to receive an additional $60 million, less $600,000 in a funding payment, at a secondary closing no later than January 15, 2014. The scheduled quarterly payments on the Senior Secured Notes are subject to the net sales of (i) Qsymia and (ii) any other obesity agent developed or marketed by us or our 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 . The Company may elect to pay full scheduled quarterly payments if it chooses. For the year ended December 31, 2015, the interest expense related to the Senior Secured Notes was $6.3 million, including amortization of deferred financing costs amounting to $393,000 . For the year ended December 31, 2014, the interest expense related to the Senior Secured Notes was $7.5 million, including amortization of deferred financing costs amounting to $468,000 . The following table summarizes information on the debt (in thousands) as of December 31, 2015: December 31, 2015 Convertible Senior Notes due 2020 $ Senior Secured Notes due 2018 Less: Discount on convertible senior notes Less: Current portion Long-term debt, net of current portion $ Future estimated payments on debt as of December 31, 2015 are as follows: 2016 2017 2018 Total Less: Interest portion Senior Secured Notes $

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity
Stockholders' Equity	Note 14. Stockholders’ Equity Common Stock The Company is authorized to issue 200,000,000 shares of common stock. As of December 31, 2015 and 2014 , there were 104,055,000 and 103,729,000 shares, respectively, issued and outstanding. Preferred Stock The Company is authorized to issue 5,000,000 shares of undesignated preferred stock with a par value of $1.00 per share. As of December 31, 2015 and 2014, there were no preferred shares issued or outstanding. The Company may issue shares of preferred stock in the future, without stockholder approval, upon such terms as the Company’s management and Board of Directors may determine. Stockholder Rights Plan On March 26, 2007, the Board of Directors of the Company adopted a Stockholder Rights Plan, or the Rights Plan, and amended its bylaws. Under the Rights Plan, the Company will issue a dividend of one right for each share of its common stock held by stockholders of record as of the close of business on April 13, 2007. The Rights Plan is designed to guard against partial tender offers and other coercive tactics to gain control of the Company without offering a fair and adequate price and terms to all of the Company’s stockholders. The Rights Plan is intended to provide the Board of Directors with sufficient time to consider any and all alternatives to such an action and is similar to plans adopted by many other publicly traded companies. The Rights Plan was not adopted in response to any efforts to acquire the Company and the Company is not aware of any such efforts. Each right will initially entitle stockholders to purchase a fractional share of the Company’s preferred stock for $26.00 . However, the rights are not immediately exercisable and will become exercisable only upon the occurrence of certain events. If a person or group acquires, or announces a tender or exchange offer that would result in the acquisition of 15% or more of the Company’s common stock while the Stockholder Rights Plan remains in place, then, unless the rights are redeemed by the Company for $.001 per right, the rights will become exercisable by all rights holders except the acquiring person or group for the Company’s shares or shares of the third ‑party acquirer having a value of twice the right’s then ‑current exercise price. The Rights will expire on the earliest of (i) April 13, 2017 (the final expiration date), or (ii) redemption or exchange of the Rights.

Stock Option and Purchase Plans

Stock Option and Purchase Plans	12 Months Ended
	Dec. 31, 2015
Stock Option and Purchase Plans
Stock Option and Purchase Plans	Note 15. Stock Option and Purchase Plans Stock Option Plan On March 29, 2010, the Company’s Board of Directors terminated the 2001 Stock Option Plan and adopted and approved a new 2010 Equity Incentive Plan, or the 2010 Plan, with 32,000 shares remaining reserved and unissued under the 2001 Plan, subject to the approval of the Company’s stockholders. The 2001 Plan, however, continues to govern awards previously granted under it. On June 25, 2010, the Company’s stockholders approved the 2010 Plan at the Company’s 2010 Annual Meeting of Stockholders. The 2010 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and performance units to employees, directors and consultants, to be granted from time to time as determined by the Board of Directors, the Compensation Committee of the Board of Directors, or its designees. The term of the option is determined by the Board of Directors on the date of grant but shall not be longer than 10 years. Options under this plan generally vest over four years. The 2010 Plan’s share reserve, which the stockholders approved, is 8,400,000 shares, plus any shares reserved but not issued pursuant to awards under the 2001 Plan as of the date of stockholder approval, or 99,975 shares, plus any shares subject to outstanding awards under the 2001 Plan that expire or otherwise terminate without having been exercised in full, or are forfeited to or repurchased by the Company, up to a maximum of 8,111,273 shares (which was the number of shares subject to outstanding options under the 2001 Plan as of March 11, 2010). In September 2014, the Company’s stockholders approved an increase to the total number of shares reserved under the 2010 Plan by 5,950,000 for a total of 14,350,000 shares. Restricted Stock Units Beginning in 2012, the Company began issuing restricted units under the 2010 Plan on a limited basis. A summary of restricted stock unit award activity under the 2010 Plan is as follows: Weighted Number of Average Restricted Grant Date Stock Units Fair Value Restricted stock units outstanding January 1, 2013 $ Granted Vested Forfeited Restricted stock units outstanding, December 31, 2012 — — Granted Vested Forfeited Restricted stock units outstanding December 31, 2014 Granted Vested Forfeited Restricted stock units outstanding, December 31, 2015 $ Stock Options A summary of stock option award activity under these plans is as follows: Years Ended December 31, 2015 2014 2013 Weighted- Weighted- Weighted- Average Average Average Number of Exercise Number of Exercise Number of Exercise Shares Price Shares Price Shares Price Balance at beginning of year $ $ $ Options: Granted $ $ $ Exercised — $ — $ $ Cancelled $ $ $ Balance at end of year $ $ $ Exercisable at end of year $ $ $ Weighted average grant-date fair value of options granted during the year $ $ $ At December 31, 2015, stock options were outstanding and exercisable as follows: Options Outstanding Options Exercisable Weighted- Number Average Weighted- Number Weighted- Outstanding at Remaining Average Exercisable Average December 31, Contractual Exercise December 31, Exercise Range of Exercise Prices 2015 Life Price 2015 Price $ 1.26 — $ 2.53 years $ $ $ 2.74 — $ 2.74 years $ — $ — $ 2.79 — $ 12.04 years $ $ $ 12.39 — $ 25.74 years $ $ $ 1.26 — $ 25.74 years $ $ The aggregate intrinsic value of outstanding options as of December 31, 2015 was zero as all of the outstanding stock options had an exercise price greater than the share price of common stock as of that date. At December 31, 2015, 8,585,900 options remained available for grant. Valuation Assumptions The fair value of each option is estimated on the date of grant using the Black ‑Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions: 2015 2014 2013 Expected life (in years) Volatility % % % Risk-free interest rate % % % Dividend yield — — — Employee Stock Purchase Plan Under the 1994 Employee Stock Purchase Plan, or the ESPP, the Company reserved 800,000 shares of common stock for issuance to employees pursuant to the ESPP, under which eligible employees may authorize payroll deductions of up to 10% of their base compensation (as defined) to purchase common stock at a price equal to 85% of the lower of the fair market value as of the beginning or the end of the offering period. At the annual meeting held on June 4, 2003, the stockholders approved amendments to the ESPP to (i) extend the original term of the ESPP by an additional 10 years such that the ESPP would expire in April 2014 (subject to earlier termination as described in the ESPP) and (ii) increase the number of shares of common stock reserved for issuance under the ESPP by 600,000 shares to a new total of 1,400,000 . In June 2011, the Company’s stockholders approved amendments to the Company’s ESPP to increase the number of shares reserved for issuance under the ESPP by 600,000 shares to a new total of 2,000,000 , to remove the Plan’s 20 –year term, and to include certain changes consistent with Treasury Regulations relating to employee stock purchase plans under Section 423 of the Internal Revenue Code of 1986, as amended, and other applicable law. As of December 31, 2015, 1,691,809 shares have been issued to employees and there are 308,191 shares available for issuance under the ESPP. The weighted average fair value of shares issued under the ESPP in 2015, 2014 and 2013 was $0.69 , $1.05 and $3.53 per share, respectively. Valuation Assumptions The fair value of shares issued under the ESPP is estimated using the Black ‑Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions: 2015 2014 2013 Expected life (in years) Volatility % % % Risk-free interest rate % % % Dividend yield — — — Share ‑Based Compensation Expense Total estimated share ‑based compensation expense, related to all of the Company’s share ‑based awards, was comprised as follows (in thousands): 2015 2014 2013 Cost of goods sold $ $ $ — Selling, general and administrative Research and development Non-recurring charges Total share-based compensation expense $ $ $ 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 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 various 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, for the year ended December 31, 2013, the Company recognized approximately $12.9 million in additional share ‑based compensation expense related to this event. 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 implemented a cost reduction plan that reduced the Company’s workforce by approximately 20 employees, or 17% of its workforce, excluding the sales force, for the year ended December 31, 2013. As a result, the Company incurred $1.2 million in additional share ‑based compensation expense for the year ended December 31, 2013, related to the automatic acceleration of vesting of unvested stock options held by the terminated employees. Total share ‑based compensation cost capitalized as part of the cost of inventory was $23,000 , $ 0 and $480,000 for the years ended December 31, 2015, 2014 and 2013, respectively. The following table summarizes share ‑based compensation, net of estimated forfeitures associated with each type of award (in thousands): 2015 2014 2013 Restricted stock units $ $ $ Stock options Employee stock purchase plan $ $ $ As of December 31, 2015, unrecognized estimated compensation expense totaled $6.1 million related to non ‑vested stock options and restricted stock units and $10,000 related to the ESPP. The weighted average remaining requisite service period for the non ‑vested stock options was 2.6 years and for the ESPP was less than 6 months.

Commitments

Commitments	12 Months Ended
	Dec. 31, 2015
Commitments
Commitments	Note 16. Commitments Lease Commitments In November 2006, the Company entered into a 30 -month lease for its former corporate headquarters located in Mountain View, California, or Castro Lease. On February 14, 2012 , the Company entered into the most current, fourth amendment to the Castro Lease. Under the fourth amendment to the Castro Lease, the lease term for the headquarters’ premises terminated July 31, 2013. The fourth amendment also included a new lease on an additional 4,914 square feet of office space located at 1174 Castro Street, Mountain View, California, or the Expansion Space, which is adjacent to the Company’s former corporate headquarters. The average base rent for the Expansion Space is approximately $2.87 per square foot or $14,124 per month. The new lease for the Expansion Space has a term of 60 months commencing March 15, 2012, with an option to extend the term for one year from the expiration of the new lease. Commencing on September 1, 2014, the Company subleased the expansion space for a term of 31 months at a starting monthly rental rate of $ 4 .42 per square feet (subject to agreed increases). The sublessee is entitled to abatement of the first monthly installment. Minimum rents expected to be received under this sublease are $274,000 and $69,000 for the years ending December 31, 2016 and 2017, respectively. The Company entered into a lease effective as of December 11, 2012, with SFERS Real Estate Corp. U, or the Landlord, for new principal executive offices, consisting of an approximately 45,240 square foot building, located at 351 East Evelyn Avenue, Mountain View, California, or the Evelyn Lease. The Evelyn Lease has an initial term of approximately 84 months, commencing on May 11, 2013, and at a starting annual rental rate of $31.20 per rentable square foot (subject to agreed increases). The Company is entitled to an abatement of the monthly installments of rent for months seven through 12 of the initial term subject to the conditions detailed in the Evelyn Lease. The Company has one option to renew the Evelyn Lease for a term of three years at the prevailing market rate as detailed in the Evelyn Lease. In addition, the Company has a one –time right to accelerate the termination date of the Evelyn Lease from the expiration of the 84th full calendar month of the term to the expiration of the 60 th full calendar month of the term subject to the conditions detailed in the Evelyn Lease. If this acceleration of the termination date is exercised, the following will be payable to the Landlord: (i) six months of the monthly installments of rent and the Company’s proportionate share of expenses and taxes subject to the fifth lease year and (ii) the unamortized portion of all of the following: (a) any leasing commissions and legal fees, (b) the initial alterations as detailed in the Evelyn Lease, and (c) Landlord’s allowance towards the cost of performing the initial alterations, which is $7.00 per rentable square foot; provided that the amount payable to the Landlord will be increased by the unamortized portion of any leasing commissions, tenant improvements and allowances, or other concessions incurred by the Landlord in connection with any additional space other than the premises leased by the Company and that is subject to acceleration under the Evelyn Lease. Commencing on May 1, 2014, the Company subleased a portion of its Evelyn Lease consisting of approximately 14,105 square feet of space for a term of 36 months at a starting annual rental rate of $42 per square feet (subject to agreed increases). The sublessee is entitled to abatement of monthly installments of rents for months one through four . Minimum rents expected to be received under this sublease are $626,000 and $212,000 for the years ending December 31, 2016 and 2017, respectively. Upon the completion of the sublease for this space, the Company expects to either find usage or to locate a suitable sublessee for the remaining duration of the Company’s Evelyn Lease. Future minimum lease payments under operating leases at December 31, 2015, were as follows (in thousands): 2016 $ 2017 2018 2019 2020 $ Included in the operating lease commitments above are obligations under leases for which the Company has vacated the underlying facilities as part of a cost reduction plan. These leases expire at various dates through 2020 and represent an aggregate obligation of $3.6 million through 2020. The Company has cost reduction accruals of $0.5 million at December 31, 2015, which represents the difference between this aggregate future obligation and expected future sublease income under estimated potential sublease agreements, as well as other facilities ‑related obligations (see Note 10). Rent expense under operating leases was $2.1 million, $1.6 million and $2.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. As a condition of the FDA granting approval to commercialize Qsymia in the U.S., the Company agreed to complete certain post-marketing requirements (“PMRs”). One requirement was to perform a cardiovascular outcomes trial (“CVOT”), on Qsymia. The cost of a CVOT is estimated to be between $180 million and $220 million incurred over a period of approximately five years. The Company is working with the FDA to determine a pathway to provide the FDA with information to support the safety of Qsymia in a more cost effective manner. To date, the Company has not incurred expenses related to the CVOT. .

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
INCOME TAXES
INCOME TAXES	Note 17. Income Taxes Deferred income taxes result from differences in the recognition of expenses for tax and financial reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of the Company’s deferred income tax assets as of December 31, 2015 and 2014, are as follows (in thousands): 2015 2014 Deferred tax assets: Net operating loss carry forwards $ $ Research and development credit carry forwards Share-based compensation Accruals and other Depreciation Deferred revenue Valuation allowance Total $ — $ — The net increase in the valuation allowance for the years ended December 31, 2015 and 2014, was $ 24.1 million, and $2. 7 million respectively. As of December 31, 2015, the Company had no significant deferred tax liabilities. As of December 31, 2015, the Company had approximately $675.6 million and $301.5 million of net operating loss, or NOL, carryforwards with which to offset its future taxable income for federal and state income tax reporting purposes, respectively. The federal and state NOL carryforwards will begin expiring in 2022 and 2028, respectively, unless previously utilized. As of December 31, 2015, the Company has federal and state research credit carryforwards of approximately $13.2 million, and $5.2 million, respectively. The federal research credit carryforwards will begin expiring in 2018, unless previously utilized. The state research credit carryforwards do not expire. Utilization of the Company’s NOL and tax credit carryforwards, or Tax Attributes, may be subject to substantial annual limitations provided by the Internal Revenue Code and similar state provisions to the extent certain ownership changes are deemed to occur. Such an annual limitation could result in the expiration of the Tax Attributes before utilization. The Tax Attributes reflected above have not been reduced by any limitations. To the extent it is determined upon completion of the analysis that such limitations do apply, the Company will adjust the Tax Attributes accordingly. The Company faces the risk that its ability to use its Tax Attributes will be substantially restricted if it undergoes an “ownership change” as defined in Section 382 of the U.S. Internal Revenue Code, or Section 382. An ownership change under Section 382 would occur if “5 -percent shareholders,” within the meaning of Section 382, collectively increased their ownership in the Company by more than 50 percentage points over a rolling three-year period. The Company has completed studies through December 31, 2015 and concluded that no adjustments were required. If the Company has experienced a change of control at any time since its formation, its NOL carryforwards and tax credits may not be available, or their utilization could be subject to an annual limitation under Section 382. A full valuation allowance has been provided against the Company’s NOL carryforwards, and if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Accordingly, there would be no impact on the consolidated financial statements. The Company uses the with-and-without approach described in guidance which has been incorporated into ASC 740 Income Taxes to determine the recognition and measurement of excess tax benefits. Accordingly, the Company has elected to recognize excess income tax benefits from stock option exercises in additional paid-in capital only if an incremental income tax benefit would be realized after considering all other tax attributes presently available to the Company. As of December 31, 2015, the amount of excess tax benefits from stock options included in federal and state net operating losses is $48.4 million and $9.9 million, respectively. The impact of this excess tax benefit is recognized as additional paid-in capital when it reduces taxes payable. In addition, the Company has elected to account for the indirect effects of stock-based awards on other tax attributes, such as the research and alternative minimum tax credits, through the consolidated statement of operations. The provision (benefit) for income taxes is based upon the loss from continuing operations before income taxes as follows (in thousands): 2015 2014 2013 Loss before income taxes: Domestic $ $ $ International Loss before taxes $ $ $ The provision (benefit) for income taxes consists of the following (in thousands): Continuing Operations: 2015 2014 2013 Current: Federal $ — $ — $ — State Foreign — — — Total current provision (benefit) for income taxes $ $ $ Deferred: Federal $ — $ — $ — State — — — Foreign — — — Total deferred provision for income taxes $ — $ — $ — Total provision (benefit) for income taxes from continuing operations $ $ $ The effective tax rate differs from the amount computed by applying the statutory federal income tax rates as follows: 2015 2014 2013 Tax at U.S. federal statutory rate % % % Change in valuation allowance Permanent items Tax credits — — Other Effective tax rate — % % — % The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2015 2014 2013 Unrecognized tax benefits as of January 1 $ — $ $ Gross increase/(decrease) for tax positions of prior years — — Gross increase/(decrease) for tax positions of current year — — Settlements — — Lapse of statute of limitations — — — Unrecognized tax benefits balance at December 31 $ $ — $ The remaining balance recorded on the Company’s consolidated balance sheets is as follows (in thousands): 2015 2014 Total unrecognized tax benefits $ $ — Amounts netted against deferred tax assets — Unrecognized tax benefits recorded on consolidated balance sheets $ — $ — As the Company is not currently under examination, it is reasonable to assume that the balance of gross unrecognized tax benefits will likely not change in the next twelve months. The Company currently does not recognize interest and penalties relating to uncertain tax positions in income tax expense. On December 18, 2015, The Consolidated Appropriations Act of 2014 was signed into law, which retroactively reinstated and made permanent the federal research tax credit provisions from January 1, 2015 through December 31, 2015. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , related to balance sheet classification of deferred taxes. The ASU requires that deferred tax assets and liabilities be classified as noncurrent in the statement of financial position, thereby simplifying the current guidance that requires an entity to separate deferred assets and liabilities into current and noncurrent amounts. The ASU will be effective for the Company beginning in the first quarter of fiscal year 2018 though early adoption is permitted. The Company early-adopted the ASU as of December 31, 2015 and its statement of financial position as of this date reflects the revised classification of current deferred tax assets and liabilities as noncurrent. There was no impact to the adoption of this ASU on the Company as its deferred tax assets are entirely reserved.

Segment Information and Concent

Segment Information and Concentration of Customers and Suppliers	12 Months Ended
	Dec. 31, 2015
SEGMENT INFORMATION
SEGMENT INFORMATION	Note 18. Segment Information and Concentration of Customers and Suppliers The Company operates in one business segment — the development and commercialization of novel therapeutic products. Therefore, results of operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. Disclosures about product revenues by geographic area, revenues and accounts receivable from major customers, and major suppliers are presented below. Geographic Information Outside the United States, the Company sells products principally in the EU. The geographic classification of product sales was based on the location of the customer. The geographic classification of all other revenues was based on the domicile of the entity from which the revenues were earned. Product revenue by geographic region is as follows (in thousands): Years Ended December 31, 2015 2014 U.S. ROW Total U.S. ROW Total Qsymia—Net product revenue $ $ — $ $ $ — $ STENDRA/SPEDRA—License and milestone revenue — STENDRA/SPEDRA—Supply revenue STENDRA/SPEDRA —Royalty revenue Total revenue $ $ (1) $ $ $ (2) $ 2013 U.S. ROW Total Qsymia—Net product revenue $ $ — $ STENDRA/SPEDRA—License and milestone revenue STENDRA/SPEDRA—Supply revenue STENDRA/SPEDRA —Royalty revenue — — — Total revenue $ $ (3) $ (1) $23.7 million of which is attributable to Germany. (2) $37.2 million of which is attributable to Germany. (3) $ 21.0 million of which is attributable to Germany. Major customers Revenues from significant customers as a percentage of total revenues is as follows: 2015 2014 2013 Menarini % % % McKesson % % % Auxilium % % % Amerisource Bergen % % — % Cardinal Health, Inc. % % % Express Scripts, Inc. — % % % CVS — % — % % Walgreens — % — % % Accounts receivable by significant customer as a percentage of the total gross accounts receivable balance are as follows: 2015 2014 McKesson % % Amerisource Bergen % % Cardinal Health, Inc. % % Auxilium % % Menarini % % Major suppliers The Company relies on third ‑party sole ‑source manufacturers to produce its clinical trial materials, raw materials and finished goods. Catalent Pharma Solutions, LLC, or Catalent, which supplied the product for the Phase 3b/4 program for Qsymia, is the Company’s sole source of clinical and commercial supplies for Qsymia. Until 2015, MTPC was the Company’s sole ‑source supplier for the API and the tablets for STENDRA (avanafil). In 2015, the Company transitioned to Sanofi as it sole-source supply for STENDRA API and tablets. The Company does not have any manufacturing facilities and intends to continue to rely on third parties for the supply of the starting materials, API and tablets. Third ‑party manufacturers may not be able to meet the Company’s needs with respect to timing, quantity or quality. In July 2013, the Company entered into a Commercial Supply Agreement with Sanofi Chimie to manufacture and supply the API for our drug avanafil on an exclusive basis in the United States and other territories and on a semi-exclusive basis in Europe, including the EU, Latin America and other territories. In November 2013, the Company entered into a Manufacturing and Supply Agreement with Sanofi Winthrop Industrie to manufacture and supply the avanafil tablets on an exclusive basis in the United States and other territories and on a semi-exclusive basis in Europe, including the EU, Latin America and other territories. During the years ended December 31, 2015, 2014 and 2013, the Company incurred expenses for work performed by a third ‑party clinical research organization, or CRO, for Qsymia and STENDRA post ‑approval studies that accounted for 11% , 27% and 29% , respectively, of total research and development expenses.

401(k) Plan

401(k) Plan	12 Months Ended
	Dec. 31, 2015
401(k) Plan
401(k) Plan	Note 19. 401(k) Plan All of the Company’s full ‑time employees are eligible to participate in the VIVUS 401(k) Plan. Employer ‑matching contributions for the years ended December 31, 2015, 2014 and 2013 were $406,000 , $467,000 and $565,000 , respectively.

Legal Matters

Legal Matters	12 Months Ended
	Dec. 31, 2015
LEGAL MATTERS
LEGAL MATTERS	Note 20. Legal Matters Securities Related Class Action and Shareholder Derivative Lawsuits The Company, a current officer and a former officer were defendants in a putative class action 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 New Drug Application, or 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. Following briefing of the appeal, the Court of Appeals held oral argument on January 16, 2015. On January 29, 2015, the Court of Appeals issued a Memorandum decision affirming the District Court’s ruling. On February 12, 2015, plaintiff asked the Court of Appeals’ panel to rehear the case or for the Court to rehear the case en banc . The Court of Appeals denied that petition on March 16, 2015, and the matter is now concluded. Additionally, certain of the Company’s former officers and directors and a current director 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 agreed to stay the derivative lawsuits pending the outcome of the appeal of the securities class action. Following the resolution of the class action in the Company’s favor, discussed above, the Turberg plaintiff dismissed the derivative litigation. On March 27, 2014, Mary Jane and Thomas Jasin, who purport to be purchasers of VIVUS common stock, filed an Amended Complaint in Santa Clara County Superior Court alleging securities fraud against the Company and three of its former officers and directors. In that complaint, captioned Jasin v. VIVUS, Inc ., Case No. 114-cv-261427, plaintiffs asserted claims under California’s securities and consumer protection securities statutes. Plaintiffs alleged generally that defendants misrepresented the prospects for the Company’s success, including with respect to the launch of Qsymia, while purportedly selling VIVUS stock for personal profit. Plaintiffs alleged losses of “at least” $2.8 million, and sought damages and other relief. On June 5, 2014, the Company and the other defendants filed a demurrer to the Amended Complaint seeking its dismissal. With the demurrer pending, on July 18, 2014, the same plaintiffs filed a complaint in the United States District Court for the Northern District of California, captioned Jasin v. VIVUS, Inc ., Case No. 5:14-cv-03263. The Jasins’ federal complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, based on facts substantially similar to those alleged in their state court action. On September 15, 2014, pursuant to an agreement between the parties, plaintiffs moved to voluntarily dismiss, with prejudice, the state court action. In the federal action, defendants filed a motion to dismiss on November 12, 2014. On December 3, 2014, plaintiffs filed a First Amended Complaint in the federal action. On January 21, 2015, defendants filed a motion to dismiss the First Amended Complaint. The court ruled on that motion on June 18, 2015, dismissing the seven California claims with prejudice and dismissing the two federal claims with leave to amend. Plaintiffs filed a second amended complaint on August 17, 2015. Defendants moved to dismiss that complaint on October 2, 2015. On September 10, 2015, plaintiffs moved for entry of judgment on their state claims. Briefing on both defendants’ motion to dismiss and plaintiffs’ motion for entry of judgment was completed on December 15, 2015. The court heard oral argument on both motions on January 14, 2016. The court has not yet issued a ruling on either motion. The Company maintains directors’ and officers’ liability insurance that it believes affords coverage for much of the anticipated cost of the remaining Jasin action, subject to the use of the Company’s financial resources to pay for its self-insured retention and the policies’ terms and conditions. The Company and the defendant officers and 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. Qsymia ANDA Litigation On May 7, 2014, the Company received a Paragraph IV certification notice from Actavis Laboratories FL indicating that it filed an abbreviated new drug application, or ANDA, with the U.S. Food and Drug Administration, or FDA, requesting approval to market a generic version of Qsymia and contending that the patents listed for Qsymia in the FDA Orange Book at the time the notice was received (U.S. Patents 7,056,890, 7,553,818, 7,659,256, 7,674,776, 8,580,298, and 8,580,299 (collectively “patents-in-suit”)) are invalid, unenforceable and/or will not be infringed by the manufacture, use, sale or offer for sale of a generic form of Qsymia as described in their ANDA. On June 12, 2014, the Company filed a lawsuit in the U.S. District Court for the District of New Jersey against Actavis Laboratories FL, Inc., Actavis, Inc., and Actavis PLC, collectively referred to as Actavis. The lawsuit (Case No. 14-3786 (SRC)(CLW)) was filed on the basis that Actavis’ submission of their ANDA to obtain approval to manufacture, use, sell or offer for sale generic versions of Qsymia prior to the expiration of the patents-in-suit constitutes infringement of one or more claims of those patents. In accordance with the Hatch-Waxman Act, as a result of having filed a timely lawsuit against Actavis, FDA approval of Actavis’ ANDA will be stayed until the earlier of (i) up to 30 months from the Company’s May 7, 2014 receipt of Actavis’ Paragraph IV certification notice (i.e. November 7, 2016) or (ii) a District Court decision finding that the identified patents are invalid, unenforceable or not infringed. On January 21, 2015, the Company received a second Paragraph IV certification notice from Actavis contending that two additional patents listed in the Orange Book for Qsymia (U.S. Patents 8,895,057 and 8,895,058) are invalid, unenforceable and/or will not be infringed by the manufacture, use, sale, or offer for sale of a generic form of Qsymia. On March 4, 2015, the Company filed a second lawsuit in the U.S. District Court for the District of New Jersey against Actavis (Case No. 15-1636 (SRC)(CLW)) in response to the second Paragraph IV certification notice on the basis that Actavis’ submission of their ANDA constitutes infringement of one or more claims of the patents-in-suit. On July 7, 2015, the Company received a third Paragraph IV certification notice from Actavis contending that two additional patents listed in the Orange Book for Qsymia (U.S. Patents 9,011,905 and 9,011,906) are invalid, unenforceable and/or will not be infringed by the manufacture, use, sale, or offer for sale of a generic form of Qsymia. On August 17, 2015, the Company filed a third lawsuit in the U.S. District Court for the District of New Jersey against Actavis (Case No. 15-6256 (SRC)(CLW)) in response to the third Paragraph IV certification notice on the basis that Actavis’ submission of their ANDA constitutes infringement of one or more claims of the patents-in-suit. The three lawsuits against Actavis have been consolidated into a single suit (Case No. 14-3786 (SRC)(CLW)). On March 5, 2015, the Company received a Paragraph IV certification notice from Teva Pharmaceuticals USA, Inc. indicating that it filed an ANDA with the FDA, requesting approval to market a generic version of Qsymia and contending that eight patents listed for Qsymia in the Orange Book at the time of the notice (U.S. Patents 7,056,890, 7,553,818, 7,659,256, 7,674,776, 8,580,298, 8,580,299, 8,895,057 and 8,895,058) (collectively “patents-in-suit”) are invalid, unenforceable and/or will not be infringed by the manufacture, use or sale of a generic form of Qsymia as described in their ANDA. On April 15, 2015, the Company filed a lawsuit in the U.S. District Court for the District of New Jersey against Teva Pharmaceutical USA, Inc. and Teva Pharmaceutical Industries, Ltd., collectively referred to as Teva. The lawsuit (Case No. 15-2693 (SRC)(CLW)) was filed on the basis that Teva’s submission of their ANDA to obtain approval to manufacture, use, sell, or offer for sale generic versions of Qsymia prior to the expiration of the patents-in-suit constitutes infringement of one or more claims of those patents. In accordance with the Hatch-Waxman Act, as a result of having filed a timely lawsuit against Teva, FDA approval of Teva’s ANDA will be stayed until the earlier of (i) up to 30 months from our March 5, 2015 receipt of Teva’s Paragraph IV certification notice (i.e. September 5, 2017) or (ii) a District Court decision finding that the identified patents are invalid, unenforceable or not infringed. On August 5, 2015, the Company received a second Paragraph IV certification notice from Teva contending that two additional patents listed in the Orange Book for Qsymia (U.S. Patents 9,011,905 and 9,011,906) are invalid, unenforceable and/or will not be infringed by the manufacture, use, sale, or offer for sale of a generic form of Qsymia. On September 18, 2015, the Company filed a second lawsuit in the U.S. District Court for the District of New Jersey against Teva (Case No. 15-6957(SRC)(CLW)) in response to the second Paragraph IV certification notice on the basis that Teva’s submission of their ANDA constitutes infringement of one or more claims of the patents-in-suit. The two lawsuits against Teva have been consolidated into a single suit (Case No. 15-2693 (SRC)(CLW)). The Company intends to vigorously enforce its intellectual property rights relating to Qsymia, but the Company cannot predict the outcome of these matters. The Company is not aware of any other asserted or unasserted claims against it where it believes that an unfavorable resolution would have an adverse material impact on the operations or financial position of the Company .

Selected Financial Data (Unaudi

Selected Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2015
Selected Financial Data (Unaudited)
Selected Financial Data (Unaudited)	Note 21. Selected Financial Data (Unaudited) Selected Quarterly Financial Data (in thousands except per share data) Quarter Ended, March 31 June 30 September 30 December 31 2015 Total revenue $ $ $ $ Total gross profit Operating expenses Net loss Basic and diluted net loss per share $ $ $ $ 2014 Total revenue $ $ $ $ Total gross profit Operating expenses Net loss Basic and diluted net loss per share $ $ $ $

SCHEDULE II-VALUATION AND QUALI

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2015
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	VIVUS, Inc. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (in thousands) Each of the following valuation and qualifying accounts are reported as assets and liabilities of continuing and discontinued operations in the consolidated balance sheets for all periods presented. Balance at Charged Balance at Beginning of to Charges End of Period Operations* Utilized Period Allowance for Cash Discounts Fiscal year ended December 31, 2013 $ $ $ $ Fiscal year ended December 31, 2014 $ $ $ $ Fiscal year ended December 31, 2015 $ $ $ $ * Amount charged to operations during fiscal years ended December 31, 2015, 2014 and 2013, includes $1,656,000 , $1,373,000 and $750,000 , respectively, for cash discount allowances related to revenue recognized during each fiscal year. The remaining amounts were recorded on the consolidated balance sheets as deferred revenue at the end of each period, respectively.

Business and Significant Acco30

Business and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Business and Significant Accounting Policies
Reclassifications	Reclassifications Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year’s presentation. In the prior ye ar, certain amounts related to the long-term portion of deferred rent were included in c urrent liabilities as they were considered immaterial. In the current year, the Company has presented these in non-current accrued and other liabilities on the balance sheet and reclassified the amounts from the prior year accordingly.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of VIVUS, Inc., and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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, 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.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers highly liquid investments with maturities from the date of purchase of three months or less to be cash equivalents. At December 31, 2015 and 2014, all cash equivalents were invested in money market funds and U.S. Treasury securities. These investments are recorded at fair value.
Available-for-Sale Securities	Available ‑for ‑Sale Securities The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. Marketable securities have been classified and accounted for as available ‑for ‑sale. 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. Securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of stockholders’ (deficit) equity, unless the decline in value is deemed to be other ‑than ‑temporary, in which case such securities are written down to fair value and the loss is charged to other ‑than ‑temporary loss on impaired securities. The Company periodically evaluates its investment securities for other ‑than ‑temporary declines based on quantitative and qualitative factors. Any losses that are deemed other-than-temporary are recognized as a non-operating loss. To date, the Company has not had any other-than-temporary declines in the value of any of its investment portfolio. Any realized gains or losses on the sale of marketable securities are determined on a specific identification method, and such gains and losses are reflected as a component of interest and other income (expense).
Fair Value Measurements	Fair Value Measurements Financial instruments include cash equivalents, available ‑for ‑sale securities, accounts receivable, accounts payable and accrued liabilities. Available ‑for ‑sale securities are carried at fair value. The carrying value of cash equivalents, accounts payable and accrued liabilities approximate their fair value due to the relatively short ‑term nature of these instruments. Debt instruments are initially recorded at face value, with coupon interest and amortization of debt issuance discounts and costs recognized as interest expense. The Company’s Convertible Notes contain a conversion option that is classified as equity. The Company determined the fair value of the liability component of the debt instrument and allocated the excess amount of $95.3 million from the initial proceeds to the conversion option in additional paid-in capital. 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. This excess is reported as a debt discount and is amortized as non ‑cash interest expense, using the effective-interest method, over the expected life of the Convertible Notes. The Convertible Notes are recorded in the balance sheet as a component of long-term debt. Issuance costs related to the conversion feature of the Convertible Notes were charged to additional paid ‑in capital. The portion of the issuance costs 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 with the underwriters. The fair value of the purchased capped calls of $34.7 million was recorded to additional paid-in capital.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, available ‑for ‑sale ‑securities, and accounts receivable. The Company has established guidelines to limit its exposure to credit risk by placing investments in high credit quality money market funds, U.S. Treasury securities or corporate debt securities and by placing investments with maturities that maintain safety and liquidity within the Company’s liquidity needs. The Company has also established guidelines for the issuance of credit to existing and potential customers.
Accounts Receivable, Allowances for Doubtful Accounts and Cash Discounts	Accounts Receivable, Allowances for Doubtful Accounts and Cash Discounts The Company extends credit to its customers for product sales resulting in accounts receivable. Customer accounts are monitored for past due amounts. Past due accounts receivable that are determined to be uncollectible are written off against the allowance for doubtful accounts. Allowances for doubtful accounts are estimated based upon past due amounts, historical losses and existing economic factors, and are adjusted periodically. Historically, the Company has not had any significant uncollected accounts. The Company offers cash discounts to its customers, generally 2% of the sales price, as an incentive for prompt payment. The estimate of cash discounts is recorded at the time of sale. The Company accounts for the cash discounts by reducing revenue and accounts receivable by the amount of the discounts it expects the customers to take. The accounts receivable are reported in the consolidated balance sheets, net of the allowances for doubtful accounts and cash discounts. There is no allowance for doubtful accounts at December 31, 2015 or 2014. The allowance for cash discounts is $164,000 and $150,000 at December 31, 2015 and 2014, respectively.
Inventories	Inventories Inventories are valued at the lower of cost or market. Cost is determined using the first ‑in, first ‑out method using a weighted average cost method calculated for each production batch. Inventory includes the cost of the active pharmaceutical ingredients, or APIs, raw materials and third ‑party contract manufacturing and packaging services. Indirect overhead costs associated with production and distribution are allocated to the appropriate cost pool and then absorbed into inventory based on the units produced or distributed, assuming normal capacity, in the applicable period. Inventory costs of product shipped to customers, but not yet recognized as revenue, are recorded within inventories on the consolidated balance sheets and are subsequently recognized to cost of goods sold when revenue recognition criteria have been met. The Company’s policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected requirements. The estimate of excess quantities is subjective and primarily dependent on the Company’s estimates of future demand for a particular product. If the estimate of future demand is inaccurate based on lower actual sales, the Company may increase the write down for excess inventory for that product and record a charge to inventory impairment in the accompanying consolidated statements of operations. 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 year ended December 31, 2015, the Company recognized an impairment charge of $29.5 million for Qsymia API inventory in excess of projected demand. For the year ended December 31, 2014, the Company recognized a total charge of $2.2 million for Qsymia inventories on hand in excess of projected demand. For the year ended December 31, 2013, the Company recognized a total charge of $10.2 million for Qsymia inventories on hand in excess of demand, plus a purchase commitment fee.
Property and Equipment	Property and Equipment Property and equipment is stated at cost and includes leasehold improvements, computers and software and furniture and fixtures. Depreciation is computed using the straight ‑line method over the estimated useful lives of two to seven years for computers, software, furniture and fixtures . Leasehold improvements are amortized using the straight ‑line method over the shorter of the remaining lease term or the estimated useful lives. Expenditures for repairs and maintenance, which do not extend the useful life of the property and equipment, are expensed as incurred. Gains and losses associated with dispositions are reflected as a non-operating gain or loss in the accompanying consolidated statements of operations. Long ‑lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to an estimate of undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset.
Deferred Issuance Costs	Debt Issuance Costs Debt issuance costs, which are included in other assets, are amortized as interest expense using the effective-interest method over the expected term of the debt.
Revenue Recognition	Revenue Recognition Product Revenue: The Company recognizes product revenue from the sales of Qsymia, when: (i) persuasive evidence that an arrangement exists, (ii) delivery has occurred and title has passed, (iii) the price is fixed or determinable and (iv) collectability is reasonably assured. Revenue from sales transactions where the customer has the right to return the product is recognized at the time of sale only if: (i) the Company’s price to the customer is substantially fixed or determinable at the date of sale, (ii) the customer has paid the Company, or the customer is obligated to pay the Company and the obligation is not contingent on resale of the product, (iii) the customer’s obligation to the Company would not be changed in the event of theft or physical destruction or damage of the product, (iv) the customer acquiring the product for resale has economic substance apart from that provided by the Company, (v) the Company does not have significant obligations for future performance to directly bring about resale of the product by the customer, and (vi) the amount of future returns can be reasonably estimated.
Product Revenue Allowances	Product Revenue Allowances: Product revenue is recognized net of consideration paid to the Company’s customers, wholesalers and certified pharmacies, for services rendered by the wholesalers and pharmacies in accordance with the wholesalers and certified pharmacy services network agreements, and include a fixed rate per prescription shipped and monthly program management and data fees. These services are not deemed sufficiently separable from the customers’ purchase of the product; therefore, they are recorded as a reduction of revenue at the time of revenue recognition. Other product revenue allowances include certain prompt pay discounts and allowances offered to the Company’s customers, program rebates and chargebacks. These product revenue allowances are recognized as a reduction of revenue at the later of the date at which the related revenue is recognized or the date at which the allowance is offered. The Company also offers discount programs to patients. Calculating certain of these items involves estimates and judgments based on sales or invoice data, contractual terms, utilization rates, new information regarding changes in these programs’ regulations and guidelines that would impact the amount of the actual rebates or chargebacks. The Company reviews the adequacy of product revenue allowances on a quarterly basis. Amounts accrued for product revenue allowances are adjusted when trends or significant events indicate that adjustment is appropriate and to reflect actual experience. The Company ships units of Qsymia through a distribution network that includes certified retail pharmacies. Qsymia has a 36 –month shelf life and the Company grants rights to its customers to return unsold product six months prior to and up to 12 months after product expiration and issue credits that may be applied against existing or future invoices. Given the Company’s limited history of selling Qsymia and the duration of the return period, the Company has not had sufficient information to reliably estimate expected returns of Qsymia at the time of shipment, and therefore revenue is recognized when units are dispensed to patients through prescriptions, at which point, the product is not subject to return. The Company obtains prescription shipment data from the pharmacies to determine the amount of revenue to recognize. The Company will continue to recognize revenue for Qsymia based upon prescription sell ‑through until it has sufficient historical information to reliably estimate returns. As of December 31, 2015, the Company had deferred revenue of $19.3 million related to shipments of Qsymia, which represents product shipped to its customers, but not yet dispensed to patients through prescriptions. A corresponding accounts receivable is also recorded for this amount, as the payments from customers are not contingent upon the sale of product to patients. Supply Revenue: The Company recognizes supply revenue from the sales of STENDRA or SPEDRA when the four basic revenue recognition criteria described above are met. The Company produces STENDRA or SPEDRA through a contract manufacturing partner and then sells it to its commercialization partners. The Company is the primary responsible party in the commercial supply arrangements and bears significant risk in the fulfillment of the obligations, including risks associated with manufacturing, regulatory compliance and quality assurance, as well as inventory, financial and credit loss. As such, the Company recognizes supply revenue on a gross basis as the principal party in the arrangements. Under the Company’s product supply agreements, as long as the product meets specified product dating criteria at the time of shipment to the partner, the Company’s commercialization partners do not have a right of return or credit for expired product. As such, the Company recognizes revenue for products that meet the dating criteria at the time of shipment.
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 if the deliverables in the arrangement represent separate units of accounting. In determining the units of accounting, management evaluates certain criteria, including whether the deliverables have value to its customers on a stand ‑alone basis. Factors considered in this determination include whether the deliverable is proprietary to the Company, whether the customer can use the license or other deliverables for their intended purpose without the receipt of the remaining elements, whether the value of the deliverable is dependent on the undelivered items, and whether there are other vendors that can provide the undelivered items. Deliverables that meet these criteria are considered a separate unit of accounting. Deliverables that do not meet these criteria are combined and accounted for as a single unit of accounting. When deliverables are separable, the Company allocates non ‑contingent consideration to each separate unit of accounting 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 exists for a deliverable, the Company uses best estimated selling price, or BESP, for that deliverable. Significant management judgment may be required to determine the relative selling price of each element. 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 reported 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 the Company’s 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 the Company’s 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, 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 when the four basic revenue recognition criteria described above are met.
Cost of Goods Sold	Cost of Goods Sold Cost of goods sold for units dispensed to patients through prescriptions, or shipped to customers without a right of return or credit, includes the inventory costs of APIs, third ‑party contract manufacturing costs, packaging and distribution costs, royalties, cargo insurance, freight, shipping, handling and storage costs, and overhead costs of the employees involved with production. Specifically, cost of goods sold for Qsymia dispensed to patients includes the inventory costs of the APIs, third ‑party contract manufacturing and packaging and distribution costs, royalties, cargo insurance, freight, shipping, handling and storage costs, and overhead costs of the employees involved with production; cost of goods sold for STENDRA shipped to partners includes the inventory costs of purchased tablets, freight, shipping and handling costs. The cost of goods sold associated with deferred revenue on Qsymia and STENDRA product shipments is recorded as deferred costs, which are included in inventories in the consolidated balance sheets, until such time as the deferred revenue is recognized.
Research and Development Expenses	Research and Development Expenses Research and development, or R&D, expenses include license fees, related compensation, consultants’ fees, facilities costs, administrative expenses related to R&D activities and clinical trial costs incurred by clinical research organizations or CROs, and research institutions under agreements that are generally cancelable, among other related R&D costs. The Company also records accruals for estimated ongoing clinical trial costs. Clinical trial costs represent costs incurred by CRO and clinical sites and include advertising for clinical trials and patient recruitment costs. These costs are recorded as a component of R&D expenses and are expensed as incurred. Under the Company’s agreements, progress payments are typically made to investigators, clinical sites and CROs. The Company analyzes the progress of the clinical trials, including levels of patient enrollment, invoices received and contracted costs when evaluating the adequacy of accrued liabilities. Significant judgments and estimates must be made and used in determining the accrued balance in any accounting period. Actual results could differ from those estimates under different assumptions. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. In addition, the Company has obtained rights to patented intellectual properties under several licensing agreements for use in research and development activities. Non ‑refundable licensing payments made for intellectual properties that have no alternative future uses are expensed to research and development as incurred.
Advertising Expenses	Advertising Expenses Advertising expenses are expensed as incurred. The Company incurred advertising and sales promotion costs related to its marketing of Qsymia of $12.6 million, $10.1 million and $26.1 million in 2015, 2014 and 2013, respectively.
Share-based compensation	Share ‑Based Compensation The Company follows the fair value method of accounting for share ‑based compensation arrangements in accordance with FASB ASC topic 718, Compensation—Stock Compensation, or ASC 718. Compensation expense is recognized, using a fair ‑value based method, for all costs related to share ‑based payments including stock options and restricted stock units and stock issued under the employee stock purchase plan. The Company estimates the fair value of share ‑based payment awards on the date of the grant using the Black ‑Scholes option ‑pricing model. The fair value of each option award is estimated on the grant date using a Black ‑Scholes option ‑pricing model. The expected term, which represents the period of time that options granted are expected to be outstanding, is derived by analyzing the historical experience of similar awards, giving consideration to the contractual terms of the share ‑based awards, vesting schedules and expectations of future employee behavior. Expected volatilities are estimated using the historical share price performance over the expected term of the option. The Company also considers other factors such as its planned clinical trials and other company activities that may affect the volatility of VIVUS’s stock in the future but determined that, at this time, the historical volatility was more indicative of expected future stock price volatility. The risk ‑free interest rate for the period matching the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The Black ‑Scholes Model also requires a single expected dividend yield as an input. The Company does not anticipate paying any dividends in the near future. The Company develops pre ‑vesting forfeiture assumptions based on an analysis of historical data.
Inventory Impairment and Other Non-Recurring Charges	Inventory Impairment and Other Non ‑Recurring Charges The Company’s inventory impairment and other non-recurring charges consist of inventory impairment charges, proxy contest expenses and charges from cost reduction plans, including employee severance, one time termination benefits and ongoing benefits related to the reduction of our workforce, facilities and other facility exit costs. Liabilities for costs associated with the cost reduction plan are recognized when the liability is incurred. In addition, liabilities associated with cost reduction activities are measured at fair value. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Ongoing benefits are expensed when cost reduction activities are probable and the benefit amounts are estimable. Other costs primarily consist of legal, consulting, and other costs related to employee terminations and are expensed when incurred. Termination benefits are calculated in accordance with the various agreements with certain of the Company’s employees.
Income Taxes	Income Taxes The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. As part of the process of preparing the Company’s consolidated financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which the Company operates. This process involves the Company estimating its current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the Company’s consolidated balance sheets. The Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If it is not more likely than not that the Company will recover its deferred tax assets, the Company will increase its provision for taxes by recording a valuation allowance against the deferred tax assets that the Company estimates will not ultimately be recoverable. As a result of the Company’s analysis of all available evidence, both positive and negative, as of December 31, 2015, it was considered more likely than not that the Company’s deferred tax assets would not be realized. However, should there be a change in the Company’s ability to recover its deferred tax assets, the Company would recognize a benefit to its tax provision in the period in which the Company determines that it is more likely than not that it will recover its deferred tax assets. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of its provision for income taxes. FASB ASC topic 740, Income Taxes , or ASC 740, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 ‑10 utilizes a two ‑step approach for evaluating uncertain tax positions. Step one, Recognition, requires a company to determine if the weight of available evidence indicates that a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes, if any. Step two, Measurement, is based on the largest amount of benefit, which is more likely than not to be realized on ultimate settlement. The Company also recognizes interest and penalties accrued on any unrecognized tax benefits as a component of its provision for income taxes. As of December 31, 2015, the Company does not have any unrecognized tax positions.
Discontinued operations	Discontinued operations On November 5, 2010, the Company completed the sale of the MUSE product to Meda AB. For the year ended December 31, 2013, the Company recorded some minor adjustments related to the MUSE disposition, primarily adjustments to its sales reserves for accrued product returns.
Foreign Currency Transactions	Foreign Currency Transactions Transactions in foreign currencies are initially recorded at the rates of exchange prevailing on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated into the Company’s functional currency at the rates prevailing on the balance sheet date. Non ‑monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in the profit and loss account for the period. Exchange differences arising on the retranslation of non ‑monetary items carried at fair value are included in other expense in the accompanying consolidated statements of operations for the period.
Contingencies and Litigation	Contingencies and Litigation The Company is periodically involved in disputes and litigation related to a variety of matters. When it is probable that the Company will experience a loss, and that loss is quantifiable, the Company records appropriate reserves. The Company records legal fees and costs as an expense when incurred.
Intangible Assets	Intangible Assets The Company records acquired intangible assets at cost and amortizes them over the estimated useful life of the asset. When events or changes in circumstances indicate that the carrying value of intangible assets may not be recoverable, the Company evaluates such impairment if the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. Should an impairment exist, the impairment loss would be measured based on the excess carrying value of the asset over the asset’s fair value or discounted estimates of future cash flows attributable to the assets. To date , the Company has recorded no impairment losses on its intangible assets.
Net Loss Per Share	Net Loss Per Share The Company computes basic net loss per share applicable to common stockholders based on the weighted average number of common shares outstanding during the period. Diluted net loss 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 13, 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, other 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 from continuing operations for the years ended December 31, 2015, 2014 and 2013, 7,167,000 , 8,096,000 and 7,027,000 potentially dilutive outstanding stock options were not included in the computation of diluted net loss per share, respectively, because the effect would have been anti ‑dilutive.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. As originally issued, the standard would be effective for the Company’s fiscal year beginning January 1, 2017, with early adoption not permitted. In July 2015, the FASB voted to delay the effective date of the standard by one year to the first quarter of 2018 to provide companies sufficient time to implement the standard. Early adoption will be permitted, but not before the first quarter of 2017. Adoption can occur using one of two prescribed transition methods. The Company is currently evaluating the method by which it will implement this standard and the impact of the adoption of this standard on the Company’s consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The standard is effective for annual and interim periods beginning on or after December 15, 2015. As of December 31, 2015, the Company has $3.4 million of net deferred financing costs that would be reclassified from a current and long-term asset to a reduction in the carrying amount of its debt. In July 2015, the FASB issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory - Inventory (Topic 330), which changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. Net realizable value is defined as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” The standard eliminates the guidance that entities consider replacement cost or net realizable value less an approximately normal profit margin in the subsequent measurement of inventory when cost is determined on a first-in, first-out or average cost basis. The standard is effective for public entities with fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact of the adoption of this standard on the Company's consolidated financial statements. In Februa ry 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842), which modifies the accounting by lessees for all leases with a term greater than 12 months. The standard will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. For public companies, the standard is effective for annual and interim periods beginning on or after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard on the Company’s consolidated financial statements.

Cash, Cash Equivalents and Av31

Cash, Cash Equivalents and Available-For-Sale Securities (Tables)	12 Months Ended
	Dec. 31, 2015
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	The fair value and the amortized cost of cash, cash equivalents, and available-for-sale securities by major security type consist of the following (in thousands): As of December 31, 2015 Gross Gross Cash and cash equivalents and available-for-sale Amortized Unrealized Unrealized Estimated securities Cost Gains Losses Fair Value Cash and money market funds $ $ — $ — $ U.S. Treasury securities — Corporate debt securities Total Less amounts classified as cash and cash equivalents — — Total available-for-sale securities $ $ $ $ As of December 31, 2014 Gross Gross Cash and cash equivalents and available-for-sale Amortized Unrealized Unrealized Estimated securities Cost Gains Losses Fair Value Cash and money market funds $ $ — $ — $ U.S. Treasury securities Total Less amounts classified as cash and cash equivalents — — Total available-for-sale securities $ $ $ $
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	The following table represents the fair value hierarchy for our cash equivalents and available-for-sale securities by major security type (in thousands): As of December 31, 2015 Level 1 Level 2 Level 3 Total Cash and money market funds $ $ — $ — $ U.S. Treasury securities — — Corporate debt securities — — Total $ $ $ — $ As of December 31, 2014 Level 1 Level 2 Level 3 Total Cash and money market funds $ $ — $ — $ U.S. Treasury securities — — Total $ $ — $ — $

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2015
ACCOUNTS RECEIVABLE
Schedule of accounts receivable	Accounts receivable consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Qsymia $ $ STENDRA/SPEDRA Qsymia allowance for cash discounts Net $

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2015
INVENTORIES
Schedule of inventories	Inventories consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Raw materials $ $ Work-in-process Finished goods Deferred costs Inventories $ $

Prepaid Expenses and Other As34

Prepaid Expenses and Other Assets (Tables)	12 Months Ended
	Dec. 31, 2015
PREPAID EXPENSES AND OTHER ASSETS
Schedule of prepaid expenses and other assets	Prepaid expenses and other current assets consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Prepaid sales and marketing expenses $ $ Debt issuance costs Prepaid insurance Other prepaid expenses and assets Total $ $

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property and Equipment.
Schedule of property and equipment	Property and equipment consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Computers and software $ $ Furniture and fixtures Manufacturing equipment Leasehold improvements Accumulated depreciation Property and equipment, net $ $

Non-Current Assets (Tables)

Non-Current Assets (Tables)	12 Months Ended
	Dec. 31, 2015
NON-CURRENT ASSETS
Schedule of non-current assets	Non ‑current assets consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Debt issuance costs $ $ Other non-current assets Total $ $

Accrued and Other Liabilities (

Accrued and Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
ACCRUED AND OTHER LIABILITIES
Schedule of accrued and other liabilities	Accrued and other liabilities consist of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Accrued employee compensation and benefits $ $ Accrued non-recurring charges (see Note 10) Accrued interest on debt (see Note 13) Accrued manufacturing costs Other accrued liabilities Total $ $

Inventory Impairment and Othe38

Inventory Impairment and Other Non-Recurring Charges (Tables)	12 Months Ended
	Dec. 31, 2015
NON-RECURRING CHARGES
Schedule of non-recurring charges	Inventory impairment and other non-recurring charges consist of the following (in thousands): Year Ended December 31, 2015 2014 2013 Inventory impairment (see Note 4) $ $ $ Employee severance and related costs Patent settlement — — Share-based compensation (see Note 15) Proxy contest expenses — — Operating lease termination costs — — Total inventory impairment and other non-recurring expense $ $ $
Schedule of activity for the cost reduction plan (the restructuring accrual)	The following table sets forth activity for the proxy contest and cost reduction plans, the balance of which is primarily comprised of employee severance costs (in thousands): Proxy Facilities- contest Severance related costs obligations obligations Total Balance of accrued costs at December 31, 2012 $ — $ — $ — $ — Charges Payments Balance of accrued costs at December 31, 2013 — Charges — — Payments — Balance of accrued costs at December 31, 2014 — Charges — — Payments — Balance of accrued costs at December 31, 2015 $ — $ $ $ (1) The accrued facilities-related costs at December 31, 2015 represent estimated losses, net of expected subleases, on space vacated as part of the Company’s cost reduction plan. The noncancelable operating leases and scheduled payments against the amounts accrued extend through May 2020, unless the Company is able to negotiate earlier terminations. (2) In addition to the above non-recurring charges, the Company incurred non-cash share-based compensation expense of $0.3 million and $14.1 million for the years ended December 31, 2014 and 2013, respectively (see Note 15).
Schedule of balance of the accrued employee severance and facilities-related costs anticipated to be paid out	The balance of the accrued employee severance and facilities-related costs at December 31, 2015 is anticipated to be paid out as follows (in thousands): 2016 $ 2017 2018 Thereafter $

Deferred Revenue (Tables)

Deferred Revenue (Tables)	12 Months Ended
	Dec. 31, 2015
DEFERRED REVENUE
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	Deferred revenue consists of the following (in thousands): Balance as of December 31, December 31, 2015 2014 Qsymia deferred revenue - current $ $ SPEDRA deferred revenue - current Deferred revenue - current $ $ SPEDRA deferred revenue - non-current $ $

Long Term Debt (Tables)

Long Term Debt (Tables)	12 Months Ended
	Dec. 31, 2015
LONG TERM DEBT
Schedule of debt	The following table summarizes information on the debt (in thousands) as of December 31, 2015: December 31, 2015 Convertible Senior Notes due 2020 $ Senior Secured Notes due 2018 Less: Discount on convertible senior notes Less: Current portion Long-term debt, net of current portion $ Future estimated payments on debt as of December 31, 2015 are as follows: 2016 2017 2018 Total Less: Interest portion Senior Secured Notes $

Stock Option and Purchase Pla41

Stock Option and Purchase Plans (Tables)	12 Months Ended
	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of restricted stock unit award activity	Weighted Number of Average Restricted Grant Date Stock Units Fair Value Restricted stock units outstanding January 1, 2013 $ Granted Vested Forfeited Restricted stock units outstanding, December 31, 2012 — — Granted Vested Forfeited Restricted stock units outstanding December 31, 2014 Granted Vested Forfeited Restricted stock units outstanding, December 31, 2015 $
Summary of stock option award activity	Years Ended December 31, 2015 2014 2013 Weighted- Weighted- Weighted- Average Average Average Number of Exercise Number of Exercise Number of Exercise Shares Price Shares Price Shares Price Balance at beginning of year $ $ $ Options: Granted $ $ $ Exercised — $ — $ $ Cancelled $ $ $ Balance at end of year $ $ $ Exercisable at end of year $ $ $ Weighted average grant-date fair value of options granted during the year $ $ $
Schedule of stock options outstanding and exercisable, by range of exercise prices	At December 31, 2015, stock options were outstanding and exercisable as follows: Options Outstanding Options Exercisable Weighted- Number Average Weighted- Number Weighted- Outstanding at Remaining Average Exercisable Average December 31, Contractual Exercise December 31, Exercise Range of Exercise Prices 2015 Life Price 2015 Price $ 1.26 — $ 2.53 years $ $ $ 2.74 — $ 2.74 years $ — $ — $ 2.79 — $ 12.04 years $ $ $ 12.39 — $ 25.74 years $ $ $ 1.26 — $ 25.74 years $ $
Schedule of share-based compensation expense	Total estimated share ‑based compensation expense, related to all of the Company’s share ‑based awards, was comprised as follows (in thousands): 2015 2014 2013 Cost of goods sold $ $ $ — Selling, general and administrative Research and development Non-recurring charges Total share-based compensation expense $ $ $
Schedule of share-based compensation, net of estimated forfeitures associated with each type of award	The following table summarizes share ‑based compensation, net of estimated forfeitures associated with each type of award (in thousands): 2015 2014 2013 Restricted stock units $ $ $ Stock options Employee stock purchase plan $ $ $
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of weighted average assumptions used in estimating the fair value of stock options	The fair value of each option is estimated on the date of grant using the Black ‑Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions: 2015 2014 2013 Expected life (in years) Volatility % % % Risk-free interest rate % % % Dividend yield — — —
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of weighted average assumptions used in estimating the fair value of stock options	The fair value of shares issued under the ESPP is estimated using the Black ‑Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions: 2015 2014 2013 Expected life (in years) Volatility % % % Risk-free interest rate % % % Dividend yield — — —

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments
Schedule of future minimum lease payments under operating leases	Future minimum lease payments under operating leases at December 31, 2015, were as follows (in thousands): 2016 $ 2017 2018 2019 2020 $

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosures
Schedule of significant components of deferred income tax assets	Significant components of the Company’s deferred income tax assets as of December 31, 2015 and 2014, are as follows (in thousands): 2015 2014 Deferred tax assets: Net operating loss carry forwards $ $ Research and development credit carry forwards Share-based compensation Accruals and other Depreciation Deferred revenue Valuation allowance Total $ — $ —
Schedule of (loss)/income from continuing operations before (benefit)/provision for income taxes	The provision (benefit) for income taxes is based upon the loss from continuing operations before income taxes as follows (in thousands): 2015 2014 2013 Loss before income taxes: Domestic $ $ $ International Loss before taxes $ $ $
Schedule of reconciliation between the U.S. federal statutory tax rate and effective tax rate from continuing operations	2015 2014 2013 Tax at U.S. federal statutory rate % % % Change in valuation allowance Permanent items Tax credits — — Other Effective tax rate — % % — %
Schedule of reconciliation of unrecognized tax benefits	The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2015 2014 2013 Unrecognized tax benefits as of January 1 $ — $ $ Gross increase/(decrease) for tax positions of prior years — — Gross increase/(decrease) for tax positions of current year — — Settlements — — Lapse of statute of limitations — — — Unrecognized tax benefits balance at December 31 $ $ — $
Schedule of unrecognized tax benefits recorded on consolidated balance sheets	The remaining balance recorded on the Company’s consolidated balance sheets is as follows (in thousands): 2015 2014 Total unrecognized tax benefits $ $ — Amounts netted against deferred tax assets — Unrecognized tax benefits recorded on consolidated balance sheets $ — $ —
Continuing Operations:
Income Tax Disclosures
Schedule of components of (benefit)/provision for income taxes	The provision (benefit) for income taxes consists of the following (in thousands): Continuing Operations: 2015 2014 2013 Current: Federal $ — $ — $ — State Foreign — — — Total current provision (benefit) for income taxes $ $ $ Deferred: Federal $ — $ — $ — State — — — Foreign — — — Total deferred provision for income taxes $ — $ — $ — Total provision (benefit) for income taxes from continuing operations $ $ $

Segment Information and Conce44

Segment Information and Concentration of Customers and Suppliers (Tables)	12 Months Ended
	Dec. 31, 2015
Concentration of Customers
Schedule of net product revenue by geographic region	Product revenue by geographic region is as follows (in thousands): Years Ended December 31, 2015 2014 U.S. ROW Total U.S. ROW Total Qsymia—Net product revenue $ $ — $ $ $ — $ STENDRA/SPEDRA—License and milestone revenue — STENDRA/SPEDRA—Supply revenue STENDRA/SPEDRA —Royalty revenue Total revenue $ $ (1) $ $ $ (2) $ 2013 U.S. ROW Total Qsymia—Net product revenue $ $ — $ STENDRA/SPEDRA—License and milestone revenue STENDRA/SPEDRA—Supply revenue STENDRA/SPEDRA —Royalty revenue — — — Total revenue $ $ (3) $ (1) $23.7 million of which is attributable to Germany. (2) $37.2 million of which is attributable to Germany. (3) $ 21.0 million of which is attributable to Germany.
Total revenues | Customer concentration
Concentration of Customers
Schedule of significant customers concentration	2015 2014 2013 Menarini % % % McKesson % % % Auxilium % % % Amerisource Bergen % % — % Cardinal Health, Inc. % % % Express Scripts, Inc. — % % % CVS — % — % % Walgreens — % — % %
Gross accounts receivable | Customer concentration
Concentration of Customers
Schedule of significant customers concentration	2015 2014 McKesson % % Amerisource Bergen % % Cardinal Health, Inc. % % Auxilium % % Menarini % %

Selected Financial Data (Unau45

Selected Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Selected Financial Data (Unaudited)
Schedule of selected quarterly financial data	Selected Quarterly Financial Data (in thousands except per share data) Quarter Ended, March 31 June 30 September 30 December 31 2015 Total revenue $ $ $ $ Total gross profit Operating expenses Net loss Basic and diluted net loss per share $ $ $ $ 2014 Total revenue $ $ $ $ Total gross profit Operating expenses Net loss Basic and diluted net loss per share $ $ $ $

Business and Significant Acco46

Business and Significant Accounting Policies Narratives (Details) $ / shares in Units, $ in Thousands	Dec. 11, 2013item	Jul. 05, 2013item	Aug. 31, 2015employee	Dec. 31, 2015USD ($)item$ / shares	Dec. 31, 2013USD ($)country	Dec. 31, 2014USD ($)
License, Commercialization, and Development Agreements with Third Parties
Number of European countries covered under the license agreement | country					40
Business
Number of approved FDA therapies, Qsymia and STENDRA				2
BMI of patients to discuss safety and efficacy of Qnexa, one				30
BMI of patients to discuss safety and efficacy of Qnexa, two				27
Minimum number of weight-related comorbidity considered to discuss safety and efficacy of Qnexa				1
Number of previously approved drugs from which low doses of active ingredients incorporated				2
Number of former contract sales representatives hired | employee			50
Accumulated deficit | $				$ (836,356)		$ (743,249)
Carrying value of the equity component | $					$ 95,300
AdjustmentsToAdditionalPaidInCapitalPurchaseOfCappedCallTransaction | $					$ (34,709)
Net Deferred Financing Costs To Be Reclassified to Reduce the Carrying Amount of Debt | $				$ 3,400
Minimum
Business
Market price of capped call transactions in relation to the convertible notes (in dollars per share) | $ / shares				$ 20
License and commercialization agreement | SPEDRA | Menarini Group | Minimum
License, Commercialization, and Development Agreements with Third Parties
Number of European countries covered under the license agreement		40
License and commercialization agreement | STENDRA/SPEDRA
License, Commercialization, and Development Agreements with Third Parties
Number of countries worldwide in which product is expected to be commercialized under the license and commercialization agreement	100

Business and Significant Acco47

Business and Significant Accounting Policies Collaborative Agreements (Details) $ / shares in Units, $ in Thousands

Dec. 11, 2013item

Sep. 30, 2012

Dec. 31, 2015USD ($)

Sep. 30, 2015USD ($)

Jun. 30, 2015USD ($)

Mar. 31, 2015USD ($)

Dec. 31, 2014USD ($)

Sep. 30, 2014USD ($)

Jun. 30, 2014USD ($)

Mar. 31, 2014USD ($)

Dec. 31, 2015USD ($)$ / shares

Dec. 31, 2014USD ($)

Dec. 31, 2013USD ($)

Dec. 31, 2015USD ($)

Dec. 31, 2015USD ($)

Dec. 31, 2015USD ($)

License, Commercialization, and Development Agreements with Third Parties

Termination notice of license and supply agreement

6 months

License and Services Revenue

$ 11,574

$ 38,614

$ 55,838

Revenue, Net

$ 15,343

$ 24,936

$ 22,985

$ 32,166

$ 21,732

$ 33,877

$ 21,881

$ 36,691

95,430

114,181

81,082

Deferred Revenue, Current

22,142

19,445

$ 22,142

19,445

$ 22,142

$ 22,142

$ 22,142

Minimum

License, Commercialization, and Development Agreements with Third Parties

Market price of capped call transactions in relation to the convertible notes (in dollars per share) | $ / shares

$ 20

Auxilium Pharmaceuticals, Inc.

License, Commercialization, and Development Agreements with Third Parties

Termination notice of license and supply agreement

6 months

Qsymia

License, Commercialization, and Development Agreements with Third Parties

Product shelf life period

36 months

Deferred Revenue, Current

19,275

16,433

$ 19,275

16,433

19,275

19,275

19,275

Qsymia | Minimum

License, Commercialization, and Development Agreements with Third Parties

Product shelf life period

6 months

Qsymia | Maximum

License, Commercialization, and Development Agreements with Third Parties

Product shelf life period

12 months

STENDRA/SPEDRA

License, Commercialization, and Development Agreements with Third Parties

License and Services Revenue

11,574

38,614

$ 55,838

STENDRA/SPEDRA | Sanofi

License, Commercialization, and Development Agreements with Third Parties

Revenue, Net

10,000

STENDRA/SPEDRA | Sanofi | Maximum

License, Commercialization, and Development Agreements with Third Parties

Revenue, Net

61,000

STENDRA | Auxilium Pharmaceuticals, Inc.

License, Commercialization, and Development Agreements with Third Parties

License and Services Revenue

45,000

STENDRA | Auxilium Pharmaceuticals, Inc. | Maximum

License, Commercialization, and Development Agreements with Third Parties

Revenue, Net

300,000

SPEDRA

License, Commercialization, and Development Agreements with Third Parties

Deferred Revenue, Current

$ 2,867

$ 3,012

$ 2,867

$ 3,012

$ 2,867

$ 2,867

2,867

SPEDRA | Menarini Group

License, Commercialization, and Development Agreements with Third Parties

License and Services Revenue

63,000

SPEDRA | Menarini Group | Maximum

License, Commercialization, and Development Agreements with Third Parties

Revenue, Net

$ 100,000

License and commercialization agreement | STENDRA/SPEDRA

License, Commercialization, and Development Agreements with Third Parties

Number of countries worldwide in which product is expected to be commercialized under the license and commercialization agreement | item

100

Business and Significant Acco48

Business and Significant Accounting Policies. Accounts Receivable Allowances (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accounts Receivable, Allowances for Doubtful Accounts and Cash Discounts
Cash discount (as a percent)	2.00%
Accounts receivable and allowance for doubtful accounts	$ 0	$ 0
Available-for-Sale Securities
Minimum maturity period for available-for-sale securities	12 months
Minimum maturity period for available-for-sale securities to support current operations securities to classify as current assets	12 months
Doubtful Account
Accounts Receivable, Allowances for Doubtful Accounts and Cash Discounts
Accounts receivable and allowance for doubtful accounts	$ 0
Reserve for cash discount
Accounts Receivable, Allowances for Doubtful Accounts and Cash Discounts
Allowance for cash discounts	$ 164,000	$ 150,000

Business and Significant Acco49

Business and Significant Accounting Policies, PP&E (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Inventories
Total charge for inventories on hand in excess of demand	$ 29,522	$ 2,170	$ 10,225
Advertising Expenses
Advertising and sales promotion expenses incurred	$ 12,600	$ 10,100	$ 26,100
Computers and software | Minimum
Inventories
Estimated useful lives for computers, software, furniture and fixtures	2 years
Computers and software | Maximum
Inventories
Estimated useful lives for computers, software, furniture and fixtures	7 years
Furniture and fixtures | Minimum
Inventories
Estimated useful lives for computers, software, furniture and fixtures	2 years
Furniture and fixtures | Maximum
Inventories
Estimated useful lives for computers, software, furniture and fixtures	7 years

Business and Significant Acco50

Business and Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Anti-dilutive Securities
Stockholders' Equity Attributable to Parent	$ (7,085)	$ 82,518	$ 153,369	$ 222,909
Net loss	$ (93,107)	$ (82,647)	$ (174,456)
Net loss per share-basic and diluted (in dollars per share)	$ (0.90)	$ (0.80)	$ (1.72)
Shares used in the computation of net loss per share-basic and diluted	103,926,000	103,456,000	101,174,000
Continuing Operations:
Anti-dilutive Securities
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	7,167,000	8,096,000	7,027,000

Cash, Cash Equivalents and Av51

Cash, Cash Equivalents and Available-For-Sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash and cash equivalents and available-for-sale securities, Amortized Cost
Available-for-sale securities including cash and cash equivalents, Amortized Cost	$ 241,825	$ 299,599
Less amounts classified as cash equivalents, Amortized Cost	(95,395)	(83,174)	$ (103,262)	$ (58,605)
Available-for-sale securities, Amortized Cost	146,430	216,425
Available-for-sale securities, Gross Unrealized Gains	20	35
Available-for-sale securities, Gross Unrealized Losses	(282)	(63)
Available-for-sale Securities, Debt Securities, Total	241,563	299,571
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Less amounts classified as cash equivalents, Estimated Fair Value	(95,395)	(83,174)
Available-for-sale securities, Estimated Fair Value	$ 146,168	216,397
Maximum original contractual maturities of available for sale securities	36 months
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	$ 84,734	216,425
Available-for-sale securities, Gross Unrealized Gains		35
Available-for-sale securities, Gross Unrealized Losses	(107)	(63)
Available-for-sale Securities, Debt Securities, Total	84,627	216,397
Corporate Debt Securities [Member]
Cash and cash equivalents and available-for-sale securities, Amortized Cost
Available-for-sale securities, Amortized Cost	61,696
Available-for-sale securities, Gross Unrealized Gains	20
Available-for-sale securities, Gross Unrealized Losses	(175)
Available-for-sale Securities, Debt Securities, Total	61,541
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	95,395	83,174
Available-for-sale Securities, Debt Securities, Total	$ 95,395	$ 83,174

Cash, Cash Equivalents and Av52

Cash, Cash Equivalents and Available-For-Sale Securities Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair value measurements
Available For Sale Securities Fair Value Disclosure	$ 241,563	$ 299,571
Cash and money market funds
Fair value measurements
Available For Sale Securities Fair Value Disclosure	95,395	83,174
U.S. Treasury securities
Fair value measurements
Available For Sale Securities Fair Value Disclosure	84,627	216,397
Corporate Debt Securities [Member]
Fair value measurements
Available For Sale Securities Fair Value Disclosure	61,541
Level 1
Fair value measurements
Available For Sale Securities Fair Value Disclosure	180,022	299,571
Level 1 | Cash and money market funds
Fair value measurements
Available For Sale Securities Fair Value Disclosure	95,395	83,174
Level 1 | U.S. Treasury securities
Fair value measurements
Available For Sale Securities Fair Value Disclosure	84,627	$ 216,397
Level 2
Fair value measurements
Available For Sale Securities Fair Value Disclosure	61,541
Level 2 | Corporate Debt Securities [Member]
Fair value measurements
Available For Sale Securities Fair Value Disclosure	$ 61,541

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accounts Receivable, Gross, Current	$ 9,160	$ 11,745
Accounts Receivable, Net, Current	8,997	11,595
Qsymia
Accounts Receivable, Gross, Current	8,508	6,874
Qsymia allowance for cash discounts	(163)	(150)
STENDRA/SPEDRA
Accounts Receivable, Gross, Current	$ 652	$ 4,871

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Inventory balances
Raw materials	$ 8,645	$ 29,765
Work in process	247	889
Finished goods	4,282	1,544
Deferred costs	428	2,249
Total	$ 13,602	$ 34,447

Prepaid Expenses and Other As55

Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
PREPAID EXPENSES AND OTHER ASSETS
Prepaid sales and marketing expenses	$ 3,434	$ 4,123
Debt issuance costs	1,194	1,246
Prepaid insurance	1,124	1,612
Other prepaid expenses and assets	4,872	5,843
Total	$ 10,624	$ 12,824

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property and Equipment
Property and equipment, gross	$ 4,332	$ 4,430
Accumulated depreciation	(3,338)	(3,084)
Property and equipment, net	994	1,346
Computers and software
Property and Equipment
Property and equipment, gross	2,300	2,404
Furniture and fixtures
Property and Equipment
Property and equipment, gross	943	937
Manufacturing equipment
Property and Equipment
Property and equipment, gross	213	213
Leasehold improvements
Property and Equipment
Property and equipment, gross	$ 876	$ 876

Non-Current Assets (Details)

Non-Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
NON-CURRENT ASSETS
Debt issuance costs	$ 2,185	$ 3,375
Other non-current assets	2,616	3,780
Total	$ 4,801	$ 7,155

Accrued and Other Liabilities58

Accrued and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ACCRUED AND OTHER LIABILITIES
Accrued employee compensation and benefits	$ 3,621	$ 4,230
Accrued non-recurring charges (see Note 10)	503	3,284
Accrued interest on debt (see Note 13)	1,293	2,921
Accrued manufacturing costs	5,408	400
Other accrued liabilities	5,066	5,479
Total	$ 15,891	$ 16,314

NON-CURRENT ACCRUED AND OTHER L

NON-CURRENT ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Non-current accrued and other liabilities
Restructuring charges
Non-current accrued and other liabilities	$ 1.3	$ 1.6

Inventory Impairment and othe60

Inventory Impairment and other Non-Recurring Charges (Details)	Sep. 30, 2014USD ($)	Sep. 01, 2014ft²$ / item	May. 01, 2014ft²$ / item	Dec. 11, 2012ft²$ / item	Sep. 30, 2014USD ($)	Nov. 30, 2006	Dec. 31, 2015USD ($)employee	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)employee	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Non-Recurring Charges
Inventory impairment (see Note 4)							$ 29,522,000	$ 2,170,000	$ 10,225,000
Employee severance and related costs							2,503,000	1,711,000	8,546,000
Patent Settlement								1,949,000
Share-based compensation (see Note 15)							36,000	343,000	14,072,000
Proxy contest expenses									8,863,000
Operating lease termination costs									1,210,000
Total inventory impairment and other non-recurring expense							32,061,000	6,173,000	42,916,000
Activity for the Company's cost reduction plan obligations
Balance of accrued costs at the end of the period							3,852,000	7,531,000	0
Charges							2,474,000	1,711,000	18,619,000
Payments							(5,445,000)	(5,390,000)	(11,088,000)
Balance of accrued costs at the end of the period							881,000	3,852,000	7,531,000
Share-based compensation							3,590,000	9,766,000	32,397,000
Period of lease						30 months
Additional disclosures
Accrued severance and facilities-related costs, Current										$ 503,000	$ 3,284,000
Restructuring accrual anticipated to be paid out
2,016										503,000
2,017										351,000
2,018										11,000
Thereafter										16,000
Total							$ 3,852,000	7,531,000	$ 0	881,000	3,852,000
Patents
Non-Recurring Charges
Payments to Acquire Intangible Assets					$ 5,000,000
July 2015 Restructuring Plan member
Non-Recurring Charges
Number of employees reduced | employee							60
2013 Cost Reduction Plan Member
Non-Recurring Charges
Number of employees reduced | employee									20
Evelyn lease
Activity for the Company's cost reduction plan obligations
Area of property (in square feet) | ft²			14,105	45,240
Period of lease			36 months
Annual rental rate (in dollars per square foot) | $ / item			42	31.20
Future minimum lease receivable under operating leases
2,016										626,000
2,017										212,000
Evelyn lease | Minimum
Activity for the Company's cost reduction plan obligations
Abatement period of monthly installments of rent			1 month	7 months
Evelyn lease | Maximum
Activity for the Company's cost reduction plan obligations
Abatement period of monthly installments of rent			4 months	12 months
Castro Lease
Activity for the Company's cost reduction plan obligations
Area of property (in square feet) | ft²		4,914
Period of lease		31 months
Annual rental rate (in dollars per square foot) | $ / item		53
Future minimum lease receivable under operating leases
2,016										274,000
2,017										69,000
Non-current assets
Non-Recurring Charges
Payment for transfer and assignment of certain patents	$ 3,100,000
Activity for the Company's cost reduction plan obligations
Share-based compensation								300,000	$ 14,100,000
Non-recurring charges
Activity for the Company's cost reduction plan obligations
Share-based compensation							$ 198,000	343,000	14,072,000
Cost of goods sold
Activity for the Company's cost reduction plan obligations
Share-based compensation							132,000	118,000
Proxy contest costs
Activity for the Company's cost reduction plan obligations
Balance of accrued costs at the end of the period									0
Charges									8,863,000
Payments									(8,863,000)
Restructuring accrual anticipated to be paid out
Total									$ 0
Employee severance costs
Non-Recurring Charges
Number of employees reduced | employee									20
Number of employees reduced (as a percent)									17.00%
Activity for the Company's cost reduction plan obligations
Balance of accrued costs at the end of the period							3,280,000	6,509,000	$ 0
Charges							2,474,000	1,711,000	8,546,000
Payments							(5,344,000)	(4,940,000)	(2,037,000)
Balance of accrued costs at the end of the period							410,000	3,280,000	6,509,000
Additional disclosures
Accrued severance and facilities-related costs, Current										500,000
Accrued severance and facilities-related costs, Non-current										400,000
Restructuring accrual anticipated to be paid out
Total							3,280,000	6,509,000	0	410,000	3,280,000
Facilities-related costs
Activity for the Company's cost reduction plan obligations
Balance of accrued costs at the end of the period							572,000	1,022,000	0
Charges									1,210,000
Payments							(101,000)	(450,000)	(188,000)
Balance of accrued costs at the end of the period							471,000	572,000	1,022,000
Restructuring accrual anticipated to be paid out
Total							572,000	$ 1,022,000	$ 0	$ 471,000	$ 572,000
Nonrecurring transaction | Patents
Non-Recurring Charges
Total inventory impairment and other non-recurring expense							$ 1,900,000

Deferred Revenue (Details)

Deferred Revenue (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
DEFERRED REVENUE
Current deferred revenue	$ 22,142	$ 19,445
Non-Current deferred revenue	6,508	8,876
Qsymia
DEFERRED REVENUE
Current deferred revenue	19,275	16,433
SPEDRA
DEFERRED REVENUE
Current deferred revenue	2,867	3,012
Non-Current deferred revenue	$ 6,508	$ 8,876

License, Commercialization an62

License, Commercialization and Supply Agreements (Detail)	Jul. 05, 2013item	Dec. 31, 2015	Dec. 31, 2013country
License, Commercialization, and Development Agreements with Third Parties
Number of European countries covered under the license agreement | country			40
Termination notice of license and supply agreement		6 months
License and commercialization agreement | SPEDRA | Menarini Group | Minimum
License, Commercialization, and Development Agreements with Third Parties
Number of European countries covered under the license agreement | item	40

Long-Term Debt Narratives (Deta

Long-Term Debt Narratives (Details)	May. 29, 2013USD ($)$ / shares	Apr. 09, 2013USD ($)	Dec. 31, 2015USD ($)$ / shares	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	May. 21, 2013USD ($)	Mar. 25, 2013USD ($)
Long-term debt
Net proceeds from offering					$ 290,247,000
Initial fair value of the liability component			$ 291,002,000
Carrying value of the equity component					$ 95,300,000
Minimum
Long-term debt
Cap price of capped call transactions (in dollars per share) | $ / shares			$ 20
Convertible Senior Notes Due 2020
Long-term debt
Offering amount						$ 220,000,000
DebtInstrumentFaceAmountIncrease	$ 30,000,000
Interest rate (as a percent)						4.50%
Net proceeds from offering	$ 241,800,000
Conversion price per share (in dollars per share) | $ / shares	$ 14.86
Total interest expense recognized			$ 27,200,000	$ 25,000,000
Amortization of debt discount			16,000,000	14,700,000
Amortization of deferred financing costs			$ 848,000	784,000
Scheduled quarterly payment amount as a percentage of net sales			25.00%
Make-whole premium ratio			1.03
Initial fair value of the liability component			$ 250,000,000
Senior Secured Notes Due 2018
Long-term debt
Total interest expense recognized			6,300,000	7,500,000
Amortization of deferred financing costs			393,000	$ 468,000
Initial fair value of the liability component			$ 41,002,000
Senior Secured Notes Due 2018 | Purchase of a debt-like instrument from BioPharma | Initial closing
Long-term debt
Amount received		$ 50,000,000
Amount received in funding and facility payments		$ 500,000
Senior Secured Notes Due 2018 | Purchase of a debt-like instrument from BioPharma | Secondary closing
Long-term debt
Additional discretionary amount receivable							$ 60,000,000
Additional discretionary amount receivable in funding and facility payments							$ 600,000

Long Term Debt, Current and Non

Long Term Debt, Current and NonCurrent (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Long-term debt
Senior Secured Notes	$ 291,002
Less: Discount on convertible senior notes	(56,233)
Net carrying value	234,769
Less: Current Portion	(15,550)	$ (10,459)
Long-term debt, net of current portion	219,219	$ 217,324
Convertible Senior Notes Due 2020
Long-term debt
Senior Secured Notes	250,000
Senior Secured Notes Due 2018
Long-term debt
Senior Secured Notes	41,002
2,016	31,250
2,017	31,250
2,018	20,103
Total	82,603
Less: Interest portion	$ (41,601)

Stockholders' Equity (Details)

Stockholders' Equity (Details)	Mar. 26, 2007item	Dec. 31, 2015item$ / shares$ / itemshares	Dec. 31, 2014$ / sharesshares
Capital stock
Common stock, shares authorized		200,000,000	200,000,000
Common stock, shares issued		104,055,000	103,729,000
Common stock, shares outstanding		104,055,000	103,729,000
Preferred stock, shares authorized		5,000,000	5,000,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 1	$ 1
Preferred stock, shares issued		0	0
Preferred stock, shares outstanding		0	0
Number of rights per common stock share issued as dividend | item	1
Exercise price of preferred stock for each right (in dollars per share) | $ / shares		$ 26
Minimum percentage of common stock to be acquired for rights to become exercisable		15.00%
Redemption price per right (in dollars per right) | $ / item		0.001
Multiplier of the exercise price that the right holder has right to receive in value of acquiring company's common stock | item		2
Common stock, par value (in dollars per share) | $ / shares		$ 0.001	$ 0.001

Stock Option and Purchase Pla66

Stock Option and Purchase Plans (Details) - $ / shares	1 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Jun. 25, 2010	Mar. 29, 2010
Stock options
Stock Option and Purchase Plans
Shares reserved and unissued		8,585,900
Expiration period of awards granted		10 years
Number of Shares
Balance at beginning of year (in shares)		5,956,459	8,906,451	8,510,917
Granted (in shares)		3,499,200	935,800	4,166,292
Exercised (in shares)			(374,530)	(2,375,688)
Cancelled (in shares)		(3,733,554)	(3,511,262)	(1,395,070)
Balance at end of year (in shares)		5,722,105	5,956,459	8,906,451
Exercisable at end of year (in shares)		3,042,888	4,053,329	6,616,555
Weighted-Average Exercise Price
Balance at beginning of year (in dollars per share)		$ 12.09	$ 12.06	$ 10.33
Granted (in dollars per share)		2.46	6.89	12.86
Exercised (in dollars per share)			4.48	5.79
Cancelled (in dollars per share)		9.38	11.45	14.54
Balance at end of year (in dollars per share)		7.97	12.09	12.06
Exercisable at end of year (in dollars per share)		11.48	12.34	11
Weighted average grant-date fair value of options granted during the year (in dollars per share)		$ 1.44	$ 4.34	$ 8.32
Restricted stock units
Number of Restricted Stock Units
Restricted stock units outstanding at the beginning of the period (in shares)		333,500		35,000
Granted (in shares)		1,954,000	521,900	144,500
Vested (in shares)		(248,688)	(70,500)	(33,296)
Forfeited (in shares)		(628,937)	(117,900)	(146,204)
Restricted stock units outstanding at the end of the period (in shares)		1,409,875	333,500
Weighted Average Grant Date Fair Value
Restricted stock units outstanding at the beginning of the period (in dollars per shares)		$ 8.17		$ 24.88
Granted (in dollars per share)		1.85	$ 8.20	12.63
Vested (in dollars per share)		2.73	8.37	14.15
Forfeited (in dollars per share)		7.99	8.17	$ 13.83
Restricted stock units outstanding at the end of the period (in dollars per shares)		$ 1.87	$ 8.17
Stock option plan, 2001
Stock Option and Purchase Plans
Shares reserved and unissued						32,000
Equity incentive plan, 2010
Stock Option and Purchase Plans
Vesting period		4 years
Increase in the number of authorized shares	5,950,000
Number of shares authorized	14,350,000				8,400,000
Number of shares reserved but not issued pursuant to awards under 2001 Stock Option Plan					99,975
Number of shares reserved but not issued pursuant to options outstanding under 2001 Stock Option Plan					8,111,273

Stock Option and Purchase Pla67

Stock Option and Purchase Plans by Exercise Prices (Details)	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Exercise Prices Range One $1.26 - $2.53
Summary of Stock Options
Exercise price, low end of the range (in dollars per share)	$ 1.26
Exercise price, high end of the range (in dollars per share)	$ 2.53
Options Outstanding
Number Outstanding at end of the period (in shares) | shares	700,500
Weighted-Average Remaining Contractual Life	6 years 5 months 12 days
Weighted-Average Exercise Price (in dollars per share)	$ 1.44
Options Exercisable
Number Exercisable at the end of the period (in shares) | shares	118,747
Weighted Average Exercise Price (in dollars per share)	$ 2.33
Exercise Prices Range Two $2.74 - $2.74
Summary of Stock Options
Exercise price, low end of the range (in dollars per share)	2.74
Exercise price, high end of the range (in dollars per share)	$ 2.74
Options Outstanding
Number Outstanding at end of the period (in shares) | shares	1,550,800
Weighted-Average Remaining Contractual Life	6 years 22 days
Weighted-Average Exercise Price (in dollars per share)	$ 2.74
Exercise Prices Range Three $2.79 - $12.04
Summary of Stock Options
Exercise price, low end of the range (in dollars per share)	2.79
Exercise price, high end of the range (in dollars per share)	$ 12.04
Options Outstanding
Number Outstanding at end of the period (in shares) | shares	1,524,513
Weighted-Average Remaining Contractual Life	3 years 7 months 13 days
Weighted-Average Exercise Price (in dollars per share)	$ 7.56
Options Exercisable
Number Exercisable at the end of the period (in shares) | shares	1,291,467
Weighted Average Exercise Price (in dollars per share)	$ 7.79
Exercise Prices Range Four $12.39 - $25.74
Summary of Stock Options
Exercise price, low end of the range (in dollars per share)	12.39
Exercise price, high end of the range (in dollars per share)	$ 25.74
Options Outstanding
Number Outstanding at end of the period (in shares) | shares	1,946,292
Weighted-Average Remaining Contractual Life	4 years 10 months 24 days
Weighted-Average Exercise Price (in dollars per share)	$ 14.80
Options Exercisable
Number Exercisable at the end of the period (in shares) | shares	1,632,674
Weighted Average Exercise Price (in dollars per share)	$ 15.06
Exercise Prices Range Total $1.26 - $25.74
Summary of Stock Options
Exercise price, low end of the range (in dollars per share)	1.26
Exercise price, high end of the range (in dollars per share)	$ 25.74
Options Outstanding
Number Outstanding at end of the period (in shares) | shares	5,722,105
Weighted-Average Remaining Contractual Life	5 years 22 days
Weighted-Average Exercise Price (in dollars per share)	$ 7.97
Options Exercisable
Number Exercisable at the end of the period (in shares) | shares	3,042,888
Weighted Average Exercise Price (in dollars per share)	$ 11.48

Stock Options and Purchase Plan

Stock Options and Purchase Plans Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	4 years 8 months 9 days	4 years 10 months 2 days	4 years 10 months 17 days
Volatility (as a percent)	70.80%	79.10%	83.40%
Risk-free interest rate (as a percent)	1.28%	1.74%	1.12%
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	6 months	6 months	6 months
Volatility (as a percent)	63.40%	44.90%	54.20%
Risk-free interest rate (as a percent)	0.20%	0.10%	0.10%
Dividend yield (as a percent)	0.00%	0.00%	0.00%

Stock Option and Purchase Pla69

Stock Option and Purchase Plans ESPP (Details) - USD ($)	Jun. 17, 2011	Jun. 04, 2003	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2004
Stock Option and Purchase Plans
Aggregate intrinsic value of outstanding options			$ 0
Stock options
Stock Option and Purchase Plans
Shares available for grant			8,585,900
Shares granted			3,499,200	935,800	4,166,292
Employee Stock Purchase Plan
Stock Option and Purchase Plans
Shares available for grant			308,191
Shares reserved for issuance to employees	2,000,000	1,400,000				800,000
Maximum percentage of base compensation that can be contributed by the eligible employee						10.00%
Percentage of purchase price of common stock at fair market value						85.00%
Additional term		10 years
Increase in the number of authorized shares	600,000	600,000
Plan term that was removed in an amendment to the plan	20 years
Cumulative number of shares issued under the plan			1,691,809
Weighted average fair value of share issued (in dollars per share)			$ 0.69	$ 1.05	$ 3.53

Stock Option and Purchase Pla70

Stock Option and Purchase Plans Expense by Function (Details)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)employee
Share-Based Compensation Expense
Share-based compensation	$ 3,590,000	$ 9,766,000	$ 32,397,000
Proxy contest costs
Share-Based Compensation Expense
Additional share-based compensation expense related to the automatic acceleration of vesting of unvested stock options held by the terminated employees			$ 12,900,000
Employee severance costs
Share-Based Compensation Expense
Number of employees reduced | employee			20
Number of employees reduced (as a percent)			17.00%
Additional share-based compensation expense related to the automatic acceleration of vesting of unvested stock options held by the terminated employees			$ 1,200,000
Restricted stock units
Share-Based Compensation Expense
Share-based compensation	1,409,000	1,334,000	471,000
Stock options
Share-Based Compensation Expense
Share-based compensation	2,143,000	8,305,000	31,610,000
Net share-based compensation expense, per common share:
Unrecognized estimated compensation expense	$ 6,100,000
Weighted average remaining requisite service period	2 years 7 months 6 days
Employee Stock Purchase Plan
Share-Based Compensation Expense
Share-based compensation	$ 38,000	127,000	316,000
Net share-based compensation expense, per common share:
Unrecognized estimated compensation expense	$ 10,000
Employee Stock Purchase Plan | Maximum
Net share-based compensation expense, per common share:
Weighted average remaining requisite service period	6 months
Cost of goods sold
Share-Based Compensation Expense
Share-based compensation	$ 132,000	118,000
Selling, general and administrative
Share-Based Compensation Expense
Share-based compensation	2,862,000	1,177,000	2,361,000
Research and development
Share-Based Compensation Expense
Share-based compensation	398,000	8,128,000	15,964,000
Non-recurring charges
Share-Based Compensation Expense
Share-based compensation	198,000	343,000	14,072,000
Inventory
Share-Based Compensation Expense
Total share-based compensation cost capitalized as part of cost of inventory	$ 23,000	$ 0	$ 480,000

Commitments (Details)

Commitments (Details)	Sep. 01, 2014ft²$ / item	May. 01, 2014ft²$ / item	Dec. 11, 2012ft²$ / itemitem	Feb. 14, 2012USD ($)ft²item$ / item	Nov. 30, 2006	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2012USD ($)
Lease Commitments
Period of lease					30 months
Number of amendments | item				4
Restructuring accruals						$ 881,000	$ 3,852,000	$ 7,531,000	$ 0
Future minimum lease payments under operating leases
2,016						2,164,000
2,017						1,989,000
2,018						1,991,000
2,019						2,040,000
2,020						685,000
Total						8,869,000
Rent expenses under operating lease
Rent expense						2,100,000	1,600,000	2,900,000
Facilities-related costs
Lease Commitments
Restructuring accruals						471,000	$ 572,000	$ 1,022,000	$ 0
Future minimum lease payments under operating leases
Total						3,600,000
Expansion premises space for corporate headquarters
Lease Commitments
Period of lease				60 months
Base monthly rent (in dollars per square foot) | $ / item				2.87
Base monthly rent				$ 14,124
Area of property (in square feet) | ft²				4,914
Extended period of lease				1 year
Evelyn lease
Lease Commitments
Period of lease		36 months
Area of property (in square feet) | ft²		14,105	45,240
Period of sublease		36 months
Lease initial term			84 months
Annual rental rate (in dollars per square foot) | $ / item		42	31.20
Number of options available for lease renewal | item			1
Operating lease, renewal term			3 years
Number of rights to accelerate termination date | item			1
Operating leases accelerated termination period			60 months
Number of monthly installments of rent and proportionate share of expenses and taxes payable to landlord on exercising acceleration termination date | item			6
Lease year till which rent and proportionate share of expenses and taxes payable to landlord | item			5
Cost of initial alterations rent (in dollars per square foot) | $ / item			7
Future minimum lease receivable under operating leases
2,016						626,000
2,017						212,000
Evelyn lease | Minimum
Lease Commitments
Abatement period of monthly installments of rent		1 month	7 months
Evelyn lease | Maximum
Lease Commitments
Abatement period of monthly installments of rent		4 months	12 months
Castro Lease
Lease Commitments
Period of lease	31 months
Base monthly rent (in dollars per square foot) | $ / item	4.42
Area of property (in square feet) | ft²	4,914
Lease initial term	31 months
Annual rental rate (in dollars per square foot) | $ / item	53
Future minimum lease receivable under operating leases
2,016						274,000
2,017						69,000
FDA Approval Qsymia (PMR and CVOT) Member | Minimum
Lease Commitments
Contractual Obligation						180,000,000
FDA Approval Qsymia (PMR and CVOT) Member | Maximum
Lease Commitments
Contractual Obligation						$ 220,000,000

Income Taxes Deferred Tax Asset

Income Taxes Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Net operating loss carry forwards	$ 235,714	$ 219,786
Research and development credit carry forwards	16,562	16,464
Stock-based compensation	7,939	10,298
Accruals and other	20,589	9,502
Depreciation	104	128
Deferred revenue	3,492	4,146
Deferred tax assets, gross	284,400	260,324
Valuation allowance	(284,400)	(260,324)
Total	$ 0	$ 0

Income Taxes Narratives (Detail

Income Taxes Narratives (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating loss carryforwards
Net increase in valuation allowance	$ 24.1	$ 2.7
Deferred tax liabilities	$ 0
Change in ownership percentage	50.00%
Federal income tax
Operating loss carryforwards
Net operating loss carryforwards	$ 675.6
Tax Credit Carryforward, Amount	13.2
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options	48.4
State income tax
Operating loss carryforwards
Net operating loss carryforwards	301.5
Tax Credit Carryforward, Amount	5.2
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options	$ 9.9

Income Taxes Provision (Details

Income Taxes Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loss before income taxes:
Domestic	$ (92,967)	$ (83,151)	$ (174,083)
International	(137)	(125)	(766)
Loss from continuing operations before income taxes	(93,104)	(83,276)	(174,849)
Current
Federal	0	0	0
State	3	(629)	97
Foreign	0	0	0
Total current (benefit)/provision for income taxes	3	(629)	97
Total (benefit)/provision for income taxes from continuing operations	3	(629)	97
Deferred
Foreign	0	0	0
State	0	0	0
Federal	0	0	0
Total deferred benefit for income taxes	$ 0	$ 0	$ 0

Income Taxes Reconcilation (Det

Income Taxes Reconcilation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015
Reconciliation between the U.S. federal statutory tax rate and effective tax rate from continuing operations
Tax at U.S. federal statutory rate (as a percent)	(35.00%)	(35.00%)	(35.00%)
Change in valuation allowance (as a percent)	31.00%	29.00%	35.00%
Permanent items (as a percent)	6.00%	7.00%	2.00%
Tax credits (as a percent)			(1.00%)
Other	(2.00%)	(2.00%)	(1.00%)
Effective tax rate (as a percent)		(1.00%)
Reconciliation of beginning and ending amount of unrecognized tax benefits
Unrecognized tax benefits at the beginning of period		$ 1,662	$ 1,215
Gross increase/(decrease) for tax positions of prior years			447
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	$ 38
Settlements		(1,662)
Unrecognized tax benefits balance as the ending of period	38		1,662
Unrecognized tax benefits recorded on consolidated balance sheets
Total unrecognized tax benefits	$ 38	$ 1,662	$ 1,215	$ 38
Amounts netted against deferred tax assets				$ (38)

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Geographic Information
Net product revenue									$ 54,622	$ 45,277	$ 23,718
License and milestone revenue									11,574	38,614	55,838
Supply revenue									26,674	26,519	1,526
Royalty revenue									2,560	3,771
Total revenue	$ 15,343	$ 24,936	$ 22,985	$ 32,166	$ 21,732	$ 33,877	$ 21,881	$ 36,691	$ 95,430	114,181	81,082
Number of Operating Segments | item									1
U.S.
Geographic Information
Total revenue									$ 71,642	71,918	55,191
ROW
Geographic Information
Total revenue									23,788	42,263	25,891
Qsymia
Geographic Information
Net product revenue									54,622	45,277	23,718
Qsymia | U.S.
Geographic Information
Net product revenue									54,622	45,277	23,718
STENDRA/SPEDRA
Geographic Information
License and milestone revenue									11,574	38,614	55,838
Supply revenue									26,674	26,519	1,526
Royalty revenue									2,560	3,771
STENDRA/SPEDRA | U.S.
Geographic Information
License and milestone revenue										15,406	30,393
Supply revenue									16,602	9,059	1,080
Royalty revenue									418	2,176
STENDRA/SPEDRA | ROW
Geographic Information
License and milestone revenue									11,574	23,208	25,445
Supply revenue									10,072	17,460	446
Royalty revenue									2,142	1,595
STENDRA/SPEDRA | Germany
Geographic Information
Net product revenue									$ 23,700	$ 37,200
Total revenue											$ 21,000

Segment Information and Conce77

Segment Information and Concentration of Customers (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Total revenues | Menarini Group
Concentration of Customers
Concentration risk percentage	25.00%	32.00%	26.00%
Total revenues | McKesson
Concentration of Customers
Concentration risk percentage	21.00%	13.00%	2.00%
Total revenues | Auxilium Pharmaceuticals, Inc.
Concentration of Customers
Concentration risk percentage	18.00%	23.00%	39.00%
Total revenues | Amerisource Bergen
Concentration of Customers
Concentration risk percentage	18.00%	14.00%
Total revenues | Cardinal Health, Inc.
Concentration of Customers
Concentration risk percentage	17.00%	11.00%	4.00%
Total revenues | Express Scripts, Inc.
Concentration of Customers
Concentration risk percentage		1.00%	3.00%
Total revenues | CVS
Concentration of Customers
Concentration risk percentage			9.00%
Total revenues | Walgreens
Concentration of Customers
Concentration risk percentage			6.00%
Gross accounts receivable | Credit concentration | Menarini Group
Concentration of Customers
Concentration risk percentage	3.00%	25.00%
Gross accounts receivable | Credit concentration | McKesson
Concentration of Customers
Concentration risk percentage	33.00%	18.00%
Gross accounts receivable | Credit concentration | Auxilium Pharmaceuticals, Inc.
Concentration of Customers
Concentration risk percentage	4.00%	16.00%
Gross accounts receivable | Credit concentration | Amerisource Bergen
Concentration of Customers
Concentration risk percentage	32.00%	19.00%
Gross accounts receivable | Credit concentration | Cardinal Health, Inc.
Concentration of Customers
Concentration risk percentage	25.00%	20.00%

Segment Information and Conce78

Segment Information and Concentration of Major Suppliers (Details) - Research and development - Qsymia and STENDRA post-approval studies CRO	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Concentration of Suppliers
Expenses incurred for work performed by a third-party CRO (as a percent)	11.00%	27.00%
Third party manufacturer
Concentration of Suppliers
Expenses incurred for work performed by a third-party CRO (as a percent)			29.00%

401(k) Plan (Details)

401(k) Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
401(k) Plan
401(k) Plan employer-matching contributions	$ 406,000	$ 467,000	$ 565,000

LEGAL MATTERS (Details)

LEGAL MATTERS (Details) $ in Millions	Aug. 05, 2015item	Jan. 21, 2015item	Mar. 27, 2014USD ($)item	Dec. 31, 2015item
Securities fraud lawsuit
LEGAL MATTERS
Number of former officers and directors against whom complaint is filed			3
Securities fraud lawsuit | Minimum
LEGAL MATTERS
Amount of damages sought | $			$ 2.8
Qsymia ANDA Litigation | Qsymia | Actavis Laboratories FL
LEGAL MATTERS
Number of patents-in-suit		2		2
Qsymia ANDA Litigation | Qsymia | Teva Pharmaceuticals USA
LEGAL MATTERS
Number of patents-in-suit	2
Qsymia ANDA Litigation | Maximum | Qsymia | Actavis Laboratories FL
LEGAL MATTERS
Period from receipt of certification notice until which FDA approval of ANDA will be stayed				30 months
Qsymia ANDA Litigation | Maximum | Qsymia | Teva Pharmaceuticals USA
LEGAL MATTERS
Period from receipt of certification notice until which FDA approval of ANDA will be stayed				30 months

Selected Financial Data (Unau81

Selected Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Selected Financial Data (Unaudited)
Total revenue	$ 15,343	$ 24,936	$ 22,985	$ 32,166	$ 21,732	$ 33,877	$ 21,881	$ 36,691	$ 95,430	$ 114,181	$ 81,082
Total gross profit (loss)	12,717	13,171	13,115	22,270	12,161	26,609	14,866	27,158
Operating expenses	19,560	32,965	64,192	38,990	39,117	41,789	39,367	44,619	155,707	164,892	235,696
Net loss	$ (12,183)	$ (16,106)	$ (49,352)	$ (15,466)	$ (25,447)	$ (15,825)	$ (25,825)	$ (15,550)	(93,107)	(82,647)	(174,946)
Net loss									$ (93,107)	$ (82,647)	$ (174,456)
Basic and diluted net (loss) per share:
Basic and Diluted net (loss) per share	$ (0.12)	$ (0.15)	$ (0.48)	$ (0.15)	$ (0.25)	$ (0.15)	$ (0.25)	$ (0.15)	$ (0.90)	$ (0.80)	$ (1.72)

SCHEDULE II-VALUATION AND QUA82

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for Cash Discounts
Changes in valuation and qualifying accounts reported as assets and liabilities of continuing and discontinued operations
Balance at Beginning of Period	$ 150,000	$ 134,000	$ 57,000
Charged to Operations	1,933,000	1,712,000	1,050,000
Charges Utilized	(1,919,000)	(1,696,000)	(973,000)
Balance at End of Period	164,000	150,000	134,000
Cash discount allowances related to revenue recognized
Changes in valuation and qualifying accounts reported as assets and liabilities of continuing and discontinued operations
Charged to Operations	$ 1,656,000	$ 1,373,000	$ 750,000