Vivus (VVUS) 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document and Entity Information
Entity Registrant Name	VIVUS INC
Entity Central Index Key	881,524
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		105,953,444
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 73,151	$ 84,783
Available-for-sale securities	162,872	184,736
Accounts receivable, net	11,806	9,478
Inventories	13,442	16,186
Prepaid expenses and other assets	3,754	8,251
Total current assets	265,025	303,434
Property and equipment, net	606	788
Non-current assets	1,108	1,554
Total assets	266,739	305,776
Current liabilities:
Accounts payable	4,430	4,707
Accrued and other liabilities	19,806	15,686
Deferred revenue	1,884	19,174
Current portion of long-term debt	9,357	8,708
Total current liabilities	35,477	48,275
Long-term debt, net of current portion	225,354	232,610
Deferred revenue, net of current portion	5,205	6,449
Non-current accrued and other liabilities	348	257
Total liabilities	266,384	287,591
Commitments and contingencies
Stockholders' equity
Preferred stock; $1.00 par value; 5,000 shares authorized; no shares issued and outstanding at September 30, 2017 and December 31, 2016	0	0
Common stock; $.001 par value; 200,000 shares authorized; 105,858 and 104,874 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	105	105
Additional paid-in capital	833,997	831,750
Accumulated other comprehensive loss	(257)	(616)
Accumulated deficit	(833,490)	(813,054)
Total stockholders' equity	355	18,185
Total liabilities and stockholders' equity	$ 266,739	$ 305,776

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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	105,858,000	104,874,000
Common stock, shares outstanding	105,858,000	104,874,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Net product revenue	$ 9,911	$ 12,294	$ 36,049	$ 37,455
License and milestone revenue	2,500		7,500
Supply revenue	2,133		8,064	1,526
Royalty revenue	649	1,059	1,819	3,472
Total revenue	15,193	13,353	53,432	42,453
Operating expenses:
Cost of goods sold	3,514	2,065	13,251	8,416
Selling, general and administrative	8,388	10,440	31,449	39,254
Research and development	865	1,696	4,059	3,821
Total operating expenses	12,767	14,201	48,759	51,491
(Loss) income from operations	2,426	(848)	4,673	(9,038)
Interest expense and other expense, net	8,412	8,313	25,112	24,209
Loss before income taxes	(5,986)	(9,161)	(20,439)	(33,247)
Provision for (benefit from) income taxes	8	(9)	(3)	14
Net loss	$ (5,994)	$ (9,152)	$ (20,436)	$ (33,261)
Basic and diluted net loss per share:
Basic and diluted net loss per share (in dollars per share)	$ (0.06)	$ (0.09)	$ (0.19)	$ (0.32)
Shares used in per share computation:
Basic and diluted (in shares)	105,826	104,484	105,674	104,228

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (5,994)	$ (9,152)	$ (20,436)	$ (33,261)
Other comprehensive loss:
Unrealized gain (loss) on securities, net of taxes	125	(158)	359	469
Comprehensive loss	$ (5,869)	$ (9,310)	$ (20,077)	$ (32,792)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (20,436)	$ (33,261)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	656	823
Amortization of debt issuance costs and discounts	15,163	13,860
Amortization of discount or premium on available-for-sale securities	605	700
Share-based compensation expense	2,221	1,740
Changes in assets and liabilities:
Accounts receivable	(2,328)	(1,298)
Inventories	2,744	2,343
Prepaid expenses and other assets	4,490	4,206
Accounts payable	(277)	(620)
Accrued and other liabilities	4,211	(7,227)
Deferred revenue	(18,534)	67,323
Net cash used for operating activities	(11,485)	48,589
Cash flows from investing activities:
Property and equipment purchases	(21)
Purchases of available-for-sale securities	(20,915)	(50,523)
Proceeds from maturity of available-for-sale securities	29,120	60,050
Proceeds from sales of available-for-sale securities	13,413	6,960
Net cash (used for) provided by investing activities	21,597	16,487
Cash flows from financing activities:
Repayments of notes payable	(21,770)	(6,359)
Sale of common stock through employee stock purchase plan	26	25
Net cash used for financing activities	(21,744)	(6,334)
Net (decrease) increase in cash and cash equivalents	(11,632)	58,742
Cash and cash equivalents:
Beginning of period	84,783	95,395
End of period	$ 73,151	$ 154,137

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
BASIS OF PRESENTATION
Business and Significant Accounting Policies	1. BASIS OF PRESENTATION VIVUS is a biopharmaceutical company committed to the development and commercialization of innovative therapies that focus on advancing treatments for patients with serious unmet medical needs, with two approved therapies and one product candidate in active clinical development. Qsymia® (phentermine and topiramate extended release) is approved by FDA for chronic weight management and STENDRA® (avanafil) is approved by FDA for erectile dysfunction, or ED, and by the European Commission, or EC, under the trade name SPEDRA in the EU. Tacrolimus is in clinical development for the treatment of Pulmonary Arterial Hypertension, or PAH. Qsymia incorporates a proprietary formulation combining low doses of active ingredients from two previously approved drugs, phentermine and topiramate, and is being commercialized by the Company in the U.S. through a sales force who promote Qsymia to physicians. Avanafil is an oral phosphodiesterase type 5 inhibitor that is being commercialized in the U.S., EU and other countries through commercialization collaborators. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Management has evaluated all events and transactions that occurred after September 30, 2017 through the date these unaudited condensed consolidated financial statements were filed. There were no events or transactions during this period that require recognition or disclosure in these unaudited condensed consolidated financial statements. The December 31, 2016 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 as filed on March 8, 2017 with the Securities and Exchange Commission, or SEC, and as amended by the Form 10-K/A filed on April 26, 2017 with the SEC. The unaudited condensed consolidated financial statements include the accounts of VIVUS, Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. When reference is made to the “Company” or “VIVUS” in these footnotes, it refers to the Delaware corporation, or VIVUS, Inc., and its California predecessor, as well as all of its consolidated subsidiaries. Use of Estimates The preparation of these unaudited condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including critical accounting policies or estimates related to available-for-sale securities, debt instruments, research and development expenses, income taxes, inventories, revenues, contingencies and litigation and share-based compensation. The Company bases its estimates on historical experience, information received from third parties and on various market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ significantly from those estimates under different assumptions or conditions. Significant Accounting Policies There have been no changes to the Company’s significant accounting policies since the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 with the exception of the following: Revenue Recognition Product Revenue: The Company recognizes product revenue when: (i) (ii) (iii) (iv) 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 is recognized net of consideration paid to the Company’s customers, wholesalers and certified pharmacies. Such consideration is for services rendered by the wholesalers and pharmacies in accordance with the wholesalers and certified pharmacy services network agreements, and includes 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. The Company began shipping Qsymia in September 2012 and grants rights to its customers to return unsold product from six months prior to and up to 12 months subsequent to product expiration. This has resulted in a potential return period of from 24 to 36 months depending on the ship date of the product. As the Company had no previous experience in selling Qsymia and given its lengthy return period, the Company was not initially able to reliably estimate expected returns of Qsymia at the time of shipment, and therefore recognized revenue when units were dispensed to patients through prescriptions, at which point, the product is not subject to return, or when the expiration period had ended. Beginning in the first quarter of 2017, with 48 months of returns experience, the Company now believes that it has sufficient data and experience from selling Qsymia to reliably estimate expected returns. Therefore, beginning in the first quarter of 2017, the Company began recognizing revenue from the sales of Qsymia upon shipment and recording a reserve for expected returns at the time of shipment. In accordance with this change in accounting estimate, the Company recognized a one-time adjustment of $7.3 million of revenues, net of expected returns reserve and gross-to-net charges, in the first quarter of 2017 relating to products that had been previously shipped. This increase in net product revenue resulted in a decrease in net loss of $6.0 million or $0.06 per share for the nine months ended September 30, 2017. Recent Accounting Pronouncements Adopted 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 the lower of cost or 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.” This 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 Company adopted this standard in the first quarter of 2017 and it did not have a material impact on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The Company adopted this standard in the first quarter of 2017, and it did not have a material impact on the Company’s condensed consolidated financial statements. 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 . This standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. This new standard will supersede most current revenue recognition guidance. In July 2015, the FASB voted to delay the effective date of this standard by one year to the first quarter of 2018. Early adoption is permitted, but not before the first quarter of 2017. This new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption, or the “modified retrospective basis.” The Company plans to adopt this standard in the first quarter of 2018 using the modified retrospective basis. The Company has analyzed the effect of this standard on its consolidated financial statements and currently does not expect the adoption of this standard to have a material impact on the Company’s net product revenues and supply revenues in the first quarter of adoption or on the timing of future recognition of net product revenues and supply revenues, as the Company expects that revenues generated will continue to be recognized upon the shipment of products to customers. Similarly, the Company does not expect a material impact on the recognition of royalty revenue. The Company does not expect the adoption of this standard to have a material impact on the Company’s license and milestone revenue in the first quarter of adoption; however, the Company does expect that the timing of recognition of future milestone revenue related to current license and supply agreements as well as the timing and allocation of revenue related to any future license and supply agreements entered into by the Company may be impacted. In February 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. This 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, this standard is effective for annual and interim periods beginning on or after December 15, 2018. Early adoption is permitted. The Company’s only significant lease is its operating lease for its corporate headquarters, and, while the Company cannot yet estimate the amounts by which its financial statements will be affected by the adoption of this guidance, it expects that the overall recognition of expense will be similar to current guidance, though possibly in different classifications, but that there will be a significant change in the balance sheet due to the recognition of right of use assets and the corresponding lease liabilities. The Company plans to adopt the new leases guidance effective January 1, 2019 using a modified retrospective transition method. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments . The standard clarifies how certain cash receipts and cash payments will be presented and classified in the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2017
SHARE-BASED COMPENSATION.
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	2. SHARE-BASED COMPENSATION Total share-based compensation expense for all of the Company’s share-based awards was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of goods sold $ 13 $ 40 $ 41 $ 115 Selling, general and administrative 652 1,920 Research and development 88 260 Total share-based compensation expense $ $ $ $ Share-based compensation costs capitalized as part of the cost of inventory were $3,000 and $19,000 for the three months ended September 30, 2017 and 2016, respectively, and $8,000 and $26,000 for the nine months ended September 30, 2017 and 2016, respectively.

CASH, CASH EQUIVALENTS, AND AVA

CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES	9 Months Ended
	Sep. 30, 2017
CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES
CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES	3. CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES The fair value and the amortized cost of cash, cash equivalents, and available-for-sale securities by major security type are presented in the tables that follow (in thousands). As of September 30, 2017 Gross Gross Amortized Unrealized Unrealized Estimated Cash and cash equivalents and available-for-sale securities Cost Gains Losses Fair Value Cash and money market funds $ 73,151 $ — $ — $ 73,151 U.S. Treasury securities 17,621 — (94) 17,527 Corporate debt securities 145,509 83 (247) 145,345 Total 236,281 83 (341) 236,023 Less amounts classified as cash and cash equivalents (73,151) — — (73,151) Total available-for-sale securities $ 163,130 $ 83 $ (341) $ 162,872 As of December 31, 2016 Gross Gross Amortized Unrealized Unrealized Estimated Cash and cash equivalents and available-for-sale securities Cost Gains Losses Fair Value Cash and money market funds $ 84,783 $ — $ — $ 84,783 U.S. Treasury securities 24,780 7 (110) 24,677 Corporate debt securities 160,571 52 (564) 160,059 Total 270,134 59 (674) 269,519 Less amounts classified as cash and cash equivalents (84,783) — — (84,783) Total available-for-sale securities $ 185,351 $ 59 $ (674) $ 184,736 As of September 30, 2017, the Company’s available-for-sale securities had original contractual maturities up to 67 months. However, the Company may sell these securities prior to their stated maturities in response to changes in the availability of and the yield on alternative investments as well as liquidity requirements. As these securities are readily marketable and 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 September 30, 2017 Level 1 Level 2 Level 3 Total Cash and money market funds $ 73,151 $ — $ — $ 73,151 U.S. Treasury securities 17,527 — — 17,527 Corporate debt securities — 145,345 — 145,345 Total $ 90,678 $ 145,345 $ — $ 236,023 As of December 31, 2016 Level 1 Level 2 Level 3 Total Cash and money market funds $ 84,783 $ — $ — $ 84,783 U.S. Treasury securities 24,677 — — 24,677 Corporate debt securities — 160,059 — 160,059 Total $ 109,460 $ 160,059 $ — $ 269,519

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	9 Months Ended
	Sep. 30, 2017
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE	4. ACCOUNTS RECEIVABLE Accounts receivable consist of the following (in thousands): Balance as of September 30, December 31, 2017 2016 Qsymia $ 9,870 $ 8,982 STENDRA/SPEDRA 2,131 12,001 Qsymia allowance for cash discounts (195) (213) Net $ 11,806 $

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2017
INVENTORIES
INVENTORIES	5. INVENTORIES Inventories consist of the following (in thousands): Balance as of September 30, December 31, 2017 2016 Raw materials $ 11,506 $ 9,412 Work-in-process 41 2,984 Finished goods 1,895 3,110 Deferred costs — 680 Inventories $ 13,442 $ 16,186 Raw materials inventories consist primarily of the active pharmaceutical ingredients, or API, for Qsymia and STENDRA/SPEDRA. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first in, first out method for all inventories, which are valued using a weighted-average cost method calculated for each production batch. The Company periodically evaluates the carrying value of inventory on hand for potential excess amounts over demand using the same lower of cost or net realizable value approach as that used to value the inventory.

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	9 Months Ended
	Sep. 30, 2017
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER ASSETS	6. Prepaid expenses and other current assets consist of the following (in thousands): Balance as of September 30, December 31, 2017 2016 Prepaid sales and marketing expenses $ 1,663 $ 1,767 Prepaid insurance 143 1,182 Other prepaid expenses and assets 1,948 5,302 Total $ 3,754 $ 8,251 The amounts included in prepaid expenses and other assets consist primarily of prepayments for future services, non-trade receivables, prepaid interest and interest income receivable. These costs have been deferred as prepaid expenses and other current assets on the condensed 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.

NON-CURRENT ASSETS

NON-CURRENT ASSETS	9 Months Ended
	Sep. 30, 2017
NON-CURRENT ASSETS
NON-CURRENT ASSETS	7. NON-CURRENT ASSETS Non-current assets consist primarily of patent acquisition and assignment costs.

ACCRUED AND OTHER LIABILITIES

ACCRUED AND OTHER LIABILITIES	9 Months Ended
	Sep. 30, 2017
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES	8. Accrued and other liabilities consist of the following (in thousands): Balance as of September 30, December 31, 2017 2016 Accrued employee compensation and benefits $ 2,357 $ 3,014 Reserve for product returns 7,152 — Product-related accruals 5,207 Accrued interest on debt (see Note 13) 2,335 1,509 Accrued manufacturing costs 545 Accrued non-recurring charges (see Note 10) — 5 Other accrued liabilities 2,210 3,652 Total $ 19,806 $ 15,686 The amounts included in other accrued liabilities consist of obligations primarily related to sales, marketing, research, clinical development, corporate activities, the STENDRA license and royalties.

NON-CURRENT ACCRUED AND OTHER L

NON-CURRENT ACCRUED AND OTHER LIABILITIES	9 Months Ended
	Sep. 30, 2017
NON-CURRENT ACCRUED AND OTHER LIABILITIES
NON-CURRENT ACCRUED AND OTHER LIABILITIES	9. NON-CURRENT ACCRUED AND OTHER LIABILITIES Non-current accrued and other liabilities were $0.3 million and $0.3 million at September 30, 2017 and December 31, 2016, respectively, and were primarily comprised of deferred rent and security deposits.

NON-RECURRING CHARGES

NON-RECURRING CHARGES	9 Months Ended
	Sep. 30, 2017
INVENTORY IMPAIRMENT AND OTHER NON-RECURRING CHARGES
INVENTORY IMPAIRMENT AND OTHER NON-RECURRING CHARGES	10. NON-RECURRING CHARGES The following table sets forth activities for the Company’s obligations related to its July 2015 corporate restructuring plan (in thousands): Severance obligations Balance of accrued costs at January 1, 2017 $ 5 Charges — Payments (5) Balance of accrued costs at September 30, 2017 $ — Accrued employee severance costs as of December 31, 2016 are included under current liabilities in “Accrued and other liabilities.”

DEFERRED REVENUE

DEFERRED REVENUE	9 Months Ended
	Sep. 30, 2017
DEFERRED REVENUE
DEFERRED REVENUE	11. Deferred revenue consists of the following (in thousands): Balance as of September 30, December 31, 2017 2016 Qsymia deferred revenue - current $ — $ 17,558 STENDRA deferred revenue - current 1,884 1,616 Deferred revenue - current $ 1,884 $ 19,174 STENDRA deferred revenue - non-current $ 5,205 $ 6,449 The Company ships units of Qsymia through a distribution network that includes certified retail pharmacies. The Company was not initially able to reliably estimate expected returns of Qsymia at the time of shipment, and therefore recognized revenue when units were dispensed to patients through prescriptions, at which point, the product is not subject to return, or when the expiration period had ended. Qsymia deferred revenue at December 31, 2016 consisted 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. Beginning in the first quarter of 2017, the Company began recognizing revenue from the sales of Qsymia upon shipment and recording a reserve for expected returns at the time of shipment. Accordingly, all of the Qsymia deferred revenue, net of appropriate reserves, was recognized as revenue as of January 1, 2017 (See Note 1). SPEDRA deferred revenue relates to a prepayment for future royalties on sales of SPEDRA.

LICENSE, COMMERCIALIZATION AND

LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS	9 Months Ended
	Sep. 30, 2017
LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS
LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS	12. LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS During 2013, the Company entered into separate license and commercialization agreements and separate commercial supply agreements with each of 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 avanafil (STENDRA/SPEDRA) in their respective territories. Menarini’s territory is comprised of over 40 European countries, including the European Union, or EU, plus Australia and New Zealand. Sanofi’s territory was comprised of Africa, the Middle East, Turkey and Eurasia. Auxilium’s territory was comprised of the United States and Canada and their respective territories. In January 2015, Auxilium was acquired by Endo. Auxilium terminated the supply agreement effective June 30, 2016 and the license agreement effective September 30, 2016. On March 23, 2017, the Company and Sanofi entered into the Termination, Rights Reversion and Transition Services Agreement, or the Transition Agreement, effective February 28, 2017. Under the Transition Agreement, effective upon the thirtieth (30th) day following February 28, 2017, the license and commercialization agreement with Sanofi terminated for all countries in the Sanofi territory. In addition, under the Transition Agreement, Sanofi will provide the Company with certain transition services in support of ongoing regulatory approval efforts while the Company seeks to obtain a new commercial partner or partners for the Sanofi territory. The Company will pay certain transition service fees to Sanofi as part of the Transition Agreement. On September 30, 2016, the Company entered into a license and commercialization agreement, or the Metuchen License Agreement, and a commercial supply agreement, or the Metuchen Supply Agreement, with Metuchen Pharmaceuticals LLC, or Metuchen. Under the terms of the Metuchen License Agreement, Metuchen received an exclusive license to develop, commercialize and promote STENDRA in the United States, Canada, South America and India, or the Metuchen Territory, effective October 1, 2016. The Company and Metuchen have agreed not to develop, commercialize, or in-license any other product that operates as a PDE-5 inhibitor in the Metuchen Territory for a limited time period, subject to certain exceptions. The Metuchen License Agreement will terminate upon the expiration of the last-to-expire payment obligations under the Metuchen License Agreement; upon expiration of the term of the Metuchen License Agreement, the exclusive license granted under the Metuchen License Agreement shall become fully paid-up, royalty-free, perpetual and irrevocable as to the Company but not certain trademark royalties due to Mitsubishi Tanabe Pharmaceutical Corporation, or MTPC. Metuchen will obtain STENDRA exclusively from the Company. For each calendar year during the term of the Metuchen Supply Agreement, if Metuchen fails to purchase an agreed minimum purchase amount of STENDRA from the Company, it will reimburse the Company for the shortfall as it relates to the Company’s out of pocket costs to acquire certain raw materials needed to manufacture STENDRA. Upon the termination of the Metuchen Supply Agreement (other than by Metuchen for the Company’s uncured material breach or upon completion of the transfer of the control of the supply chain), Metuchen’s agreed minimum purchase amount of STENDRA from the Company shall accelerate for the entire then current initial term or renewal term, as applicable. The initial term under the Metuchen Supply Agreement will be for a period of five years, with automatic renewal for successive two-year periods unless either party provides a termination notice to the other party at least two years in advance of the expiration of the then current term. On September 30, 2016, the Company received $70 million from Metuchen under the Metuchen License Agreement, which was recorded as deferred revenue on the consolidated balance sheet at September 30, 2016, with $69.4 million of license revenue recorded in the fourth quarter of 2016. The Metuchen License Agreement is royalty-free as to the Company, but Metuchen will reimburse the Company for payments made to cover royalty and milestone obligations to MTPC during the term of the Metuchen License Agreement. In September 2017, the Company entered into a license and commercialization agreement, or the Alvogen License Agreement, and a commercial supply agreement, or the Alvogen Supply Agreement, with Alvogen Malta Operations (ROW) Ltd, or Alvogen. Under the terms of the Alvogen License Agreement, Alvogen will be solely responsible for obtaining and maintaining regulatory approvals for all sales and marketing activities for Qsymia in South Korea. The Company received an upfront payment of $2.5 million in September 2017, which was recorded in license and milestone revenue in the third quarter of 2017, and is eligible to receive additional payments upon Alvogen achieving marketing authorization, commercial launch and reaching a sales milestone. Additionally, the Company will receive a royalty on Alvogen’s Qsymia net sales in South Korea. Under the Alvogen Supply Agreement, the Company will supply product to Alvogen.

LONG-TERM DEBT AND COMMITMENTS

LONG-TERM DEBT AND COMMITMENTS	9 Months Ended
	Sep. 30, 2017
LONG-TERM DEBT AND COMMITMENTS
LONG-TERM DEBT AND COMMITMENTS	13. LONG-TERM DEBT AND COMMITMENTS 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 semi-annually. For the three and nine months ended September 30, 2017, total interest expense related to the Convertible Notes was $8.3 million and $24.3 million, respectively, including amortization of $4.9 million and $14.3 million, respectively, of the debt discount and amortization of $259,000 and $758,000, respectively, of deferred financing costs. For the three and nine months ended September 30, 2016, total interest expense related to the Convertible Notes was $7.5 million and $22.1 million, respectively, including amortization of $4.4 million and $13.0 million, respectively, of the debt discount and amortization of $235,000 and $689,000, respectively, 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, or Biopharma, 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 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 three and nine months ended September 30, 2017, the interest expense related to the Senior Secured Notes was $0.7 million and $2.7 million, respectively, including amortization of deferred financing costs of $46,000 and $126,000, respectively. For the three and nine months ended September 30, 2016, the interest expense related to the Senior Secured Notes was $1.3 million and $3.6 million, respectively, including amortization of deferred financing costs of $46,000 and $189,000, respectively. The following table summarizes information on the debt (in thousands): September 30, 2017 Convertible Senior Notes due 2020 $ Senior Secured Notes due 2018 Less: Debt issuance costs Less: Discount on convertible senior notes Less: Current portion Long-term debt, net of current portion $ Future estimated payments on the Senior Secured Notes as of September 30, 2017 are as follows: 2017 (remaining 3 months) $ 2018 Total Less: Interest portion Senior Secured Notes $ As a condition of FDA granting approval to commercialize Qsymia in the U.S., the Company agreed to complete certain post-marketing requirements. One requirement was to perform a cardiovascular outcomes trial, or 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 FDA to significantly reduce or remove the requirements of the CVOT. To date, the Company has not incurred expenses related to the CVOT.

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	9 Months Ended
	Sep. 30, 2017
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE	14. NET INCOME (LOSS) PER SHARE The Company computes basic net income (loss) per share applicable to common stockholders based on the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is based on the weighted average number of common and common equivalent shares, which represent shares that may be issued in the future upon the exercise of outstanding stock options or upon a net share settlement of the Company’s Convertible Notes. Common share equivalents are excluded from the computation in periods in which they have an anti-dilutive effect. Stock options for which the price exceeds the average market price over the period have an anti-dilutive effect on net income per share and, accordingly, are excluded from the calculation. The triggering conversion conditions that allow holders of the Convertible Notes to convert have not been met. If such conditions are met and the note holders opt to convert, the Company may choose to pay in cash, common stock, or a combination thereof; however, if this occurs, the Company has the intent and ability to net share settle this debt security; thus the Company uses the treasury stock method for earnings per share purposes. Due to the effect of the capped call instrument purchased in relation to the Convertible Notes, there would be no net shares issued until the market value of the Company’s stock exceeds $20 per share, and thus no impact on diluted net income per share. Further, when there is a net loss, potentially dilutive common equivalent shares are not included in the calculation of net loss per share since their inclusion would be anti-dilutive. As the Company recognized a net loss for each of the three and nine month periods ended September 30, 2017 and 2016, all potential common equivalent shares were excluded for these periods as they were anti-dilutive. Awards and options which were not included in the computation of diluted net loss per share because the effect would be anti-dilutive were 13,724,000 and 13,435,000, respectively for the three and nine months ended September 30, 2017 and were 10,261,000 and 10,520,000, respectively, for the three and nine months ended September 30, 2016.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2017
INCOME TAXES
INCOME TAXES	15. INCOME TAXES For the three and nine months ended September 30, 2017, the Company recorded a provision of $8,000 and a benefit of $3,000, respectively. For the three and nine months ended September 30, 2016, the Company recorded a benefit of $9,000 and a provision for taxes $14,000, respectively. The benefit and provision for income taxes for each of the periods was primarily comprised of state taxes during the period. The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on the Company’s ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. The Company weighed both positive and negative evidence and determined that there is a continued need for a full valuation allowance on its deferred tax assets in the United States as of September 30, 2017. Should the Company determine that it would be able to realize its remaining deferred tax assets in the foreseeable future, an adjustment to its remaining deferred tax assets would cause a material increase to income in the period such determination is made. As of September 30, 2017, the Company’s unrecognized tax benefit is related to the federal and California research and development credits which result in an unrecognized tax benefit balance of $84,000. The Company does not expect to have any other significant changes to unrecognized tax benefits through the end of the fiscal year. Because of the Company’s history of tax losses, certain tax years remain open to tax audit. The Company’s policy is to recognize interest and penalties related to uncertain tax positions (if any) as a component of the income tax provision.

LEGAL MATTERS

LEGAL MATTERS	9 Months Ended
	Sep. 30, 2017
LEGAL MATTERS
LEGAL MATTERS	16. LEGAL MATTERS Shareholder Lawsuit 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 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, as amended, 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 voluntarily dismissed their state court action with prejudice. Defendants moved to dismiss the federal action and moved to dismiss again after plaintiffs amended their complaint to include additional factual allegations and to add seven new claims under California law. The court granted the latter 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 as well. On April 19, 2016, the court granted defendants’ motion to dismiss with prejudice and entered judgment in favor of defendants. Plaintiffs filed a notice of appeal to the Ninth Circuit Court of Appeals on May 18, 2016. Briefing on the appeal has now been completed, and the Ninth Circuit has set the matter for oral argument on November 13, 2017. 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 former officers and directors cannot predict the outcome of the lawsuit, but they believe the lawsuit is without merit and intend to continue vigorously defending against the claims. 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 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. 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 were consolidated into a single suit (Case No. 14-3786 (SRC)(CLW)). On June 29, 2017, the Company entered into a settlement agreement with Actavis resolving the suit against Actavis. On July 5, 2017, the U.S. District Court for the District of New Jersey entered an order dismissing the suit. In accordance with legal requirements, we have submitted the settlement agreement to the U.S. Federal Trade Commission and the U.S. Department of Justice for review. On March 5, 2015, the Company received a Paragraph IV certification notice from Teva Pharmaceuticals USA, Inc. indicating that it filed an ANDA with 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. 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 were consolidated into a single suit (Case No. 15-2693 (SRC)(CLW)). On September 27, 2016, Dr. Reddy’s Laboratories, S.A. and Dr. Reddy’s Laboratories, Inc., collectively referred to as DRL, were substituted for Teva as defendants in the lawsuit. On August 28, 2017, the Company entered into a settlement agreement with DRL resolving the suit against DRL. On September 6, 2017, the U.S. District Court for the District of New Jersey entered an order dismissing the suit. In accordance with legal requirements, we have submitted the settlement agreement to the U.S. Federal Trade Commission and the U.S. Department of Justice for review. The settlement agreement with DRL resolves all patent litigation brought by VIVUS against generic pharmaceutical companies that have filed ANDAs seeking approval to market generic versions of Qsymia. STENDRA ANDA Litigation On June 20, 2016, the Company received a Paragraph IV certification notice from Hetero USA, Inc. and Hetero Labs Limited, collectively referred to as Hetero, indicating that it filed an ANDA with FDA, requesting approval to market a generic version of STENDRA and contending that patents listed for STENDRA in the Orange Book at the time of the notice (U.S. Patents 6,656,935, and 7,501,409) (collectively “patents-in-suit”) are invalid, unenforceable and/or will not be infringed by the manufacture, use or sale of a generic form of STENDRA as described in their ANDA. On July 27, 2016, the Company filed a lawsuit in the U.S. District Court for the District of New Jersey against Hetero (Case No. 16-4560 (KSH)(CLW)). On January 3, 2017, we entered into a settlement agreement with Hetero. Under the settlement agreement, Hetero was granted a license to manufacture and commercialize the generic version of STENDRA described in its ANDA filing in the United States as of the date that is the later of (a) October 29, 2024, which is 180 days prior to the expiration of the last to expire of the patents-in-suit, or (b) the date that Hetero obtains final approval from FDA of the Hetero ANDA. The settlement agreement provides for a full settlement of all claims that were asserted in the suit. 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 .

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2017
SEGMENT INFORMATION
SEGMENT INFORMATION	17. The Company operates in one reportable segment—the development and commercialization of novel therapeutic products. The Company has identified its Chief Executive Officer as the Chief Operating Decision Maker, or CODM, who manages the Company’s operations on a consolidated basis for purposes of allocating resources. When evaluating financial performance, the CODM reviews individual customer and product information, while other financial information is reviewed on a consolidated basis. Therefore, results of operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. Disclosures about revenues by product and by geographic area are presented below. Geographic Information Outside the United States, or ROW, the Company sells avanafil (STENDRA/SPEDRA) through a commercialization licensee principally in the EU. The geographic classification of product sales was based on the location of the customer. The geographic classification of supply, license and milestone revenue was based on the domicile of the entity from which the revenue was earned. Net product revenue by geographic region was as follows (in thousands): Three Months Ended September 30, 2017 2016 U.S. ROW Total U.S. ROW Total Qsymia—Net product revenue $ 9,911 $ — $ 9,911 $ 12,294 $ — $ 12,294 Qsymia—License revenue — 2,500 2,500 — — — STENDRA/SPEDRA—Supply revenue 1,070 1,063 2,133 — — — STENDRA/SPEDRA —Royalty revenue — 649 649 425 634 1,059 Total revenue $ 10,981 $ 4,212 (1) $ 15,193 $ 12,719 $ 634 (2) $ 13,353 Nine Months Ended September 30, 2017 2016 U.S. ROW Total U.S. ROW Total Qsymia—Net product revenue $ 36,049 $ — $ 36,049 $ 37,455 $ — $ 37,455 Qsymia—License and milestone revenue 5,000 2,500 7,500 — — — STENDRA/SPEDRA—Supply revenue 4,845 3,219 8,064 — 1,526 1,526 STENDRA/SPEDRA —Royalty revenue — 1,819 1,819 1,649 1,823 3,472 Total revenue $ 45,894 $ 7,538 (3) $ 53,432 $ 39,104 $ 3,349 (4) $ 42,453 (1) $1.7 million of which was attributable to Germany and $2.5 million of which was attributable to South Korea. (2) $0.6 million of which was attributable to Germany. (3) $5.0 million of which was attributable to Germany and $2.5 million of which was attributable to South Korea. (4) $3.3 million of which was attributable to Germany.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2017
BASIS OF PRESENTATION
Use of Estimates	Use of Estimates The preparation of these unaudited condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including critical accounting policies or estimates related to available-for-sale securities, debt instruments, research and development expenses, income taxes, inventories, revenues, contingencies and litigation and share-based compensation. The Company bases its estimates on historical experience, information received from third parties and on various market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ significantly from those estimates under different assumptions or conditions.
Available-for-Sale Securities	As of September 30, 2017, the Company’s available-for-sale securities had original contractual maturities up to 67 months. However, the Company may sell these securities prior to their stated maturities in response to changes in the availability of and the yield on alternative investments as well as liquidity requirements. As these securities are readily marketable and are viewed by the Company as available to support current operations, securities with maturities beyond 12 months are classified as current assets. Due to their short-term maturities, the Company believes that the fair value of its bank deposits, accounts payable and accrued expenses approximate their carrying value.
Inventories	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 the lower of cost or 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.” This 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 Company adopted this standard in the first quarter of 2017 and it did not have a material impact on the Company’s condensed consolidated financial statements.
Revenue Recognition	Revenue Recognition Product Revenue: The Company recognizes product revenue when: (i) (ii) (iii) (iv) 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 is recognized net of consideration paid to the Company’s customers, wholesalers and certified pharmacies. Such consideration is for services rendered by the wholesalers and pharmacies in accordance with the wholesalers and certified pharmacy services network agreements, and includes 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.
Product Revenue Allowance	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.
Revenue Recognition, Sales Returns	The Company ships units of Qsymia through a distribution network that includes certified retail pharmacies. The Company began shipping Qsymia in September 2012 and grants rights to its customers to return unsold product from six months prior to and up to 12 months subsequent to product expiration. This has resulted in a potential return period of from 24 to 36 months depending on the ship date of the product. As the Company had no previous experience in selling Qsymia and given its lengthy return period, the Company was not initially able to reliably estimate expected returns of Qsymia at the time of shipment, and therefore recognized revenue when units were dispensed to patients through prescriptions, at which point, the product is not subject to return, or when the expiration period had ended. Beginning in the first quarter of 2017, with 48 months of returns experience, the Company now believes that it has sufficient data and experience from selling Qsymia to reliably estimate expected returns. Therefore, beginning in the first quarter of 2017, the Company began recognizing revenue from the sales of Qsymia upon shipment and recording a reserve for expected returns at the time of shipment. In accordance with this change in accounting estimate, the Company recognized a one-time adjustment of $7.3 million of revenues, net of expected returns reserve and gross-to-net charges, in the first quarter of 2017 relating to products that had been previously shipped. This increase in net product revenue resulted in a decrease in net loss of $6.0 million or $0.06 per share for the nine months ended September 30, 2017.
Share-based compensation	In March 2016, the FASB issued Accounting Standards Update 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The Company adopted this standard in the first quarter of 2017, and it did not have a material impact on the Company’s condensed consolidated financial statements.
Income Taxes	The Company’s policy is to recognize interest and penalties related to uncertain tax positions (if any) as a component of the income tax provision.
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 . This standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. This new standard will supersede most current revenue recognition guidance. In July 2015, the FASB voted to delay the effective date of this standard by one year to the first quarter of 2018. Early adoption is permitted, but not before the first quarter of 2017. This new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption, or the “modified retrospective basis.” The Company plans to adopt this standard in the first quarter of 2018 using the modified retrospective basis. The Company has analyzed the effect of this standard on its consolidated financial statements and currently does not expect the adoption of this standard to have a material impact on the Company’s net product revenues and supply revenues in the first quarter of adoption or on the timing of future recognition of net product revenues and supply revenues, as the Company expects that revenues generated will continue to be recognized upon the shipment of products to customers. Similarly, the Company does not expect a material impact on the recognition of royalty revenue. The Company does not expect the adoption of this standard to have a material impact on the Company’s license and milestone revenue in the first quarter of adoption; however, the Company does expect that the timing of recognition of future milestone revenue related to current license and supply agreements as well as the timing and allocation of revenue related to any future license and supply agreements entered into by the Company may be impacted. In February 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. This 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, this standard is effective for annual and interim periods beginning on or after December 15, 2018. Early adoption is permitted. The Company’s only significant lease is its operating lease for its corporate headquarters, and, while the Company cannot yet estimate the amounts by which its financial statements will be affected by the adoption of this guidance, it expects that the overall recognition of expense will be similar to current guidance, though possibly in different classifications, but that there will be a significant change in the balance sheet due to the recognition of right of use assets and the corresponding lease liabilities. The Company plans to adopt the new leases guidance effective January 1, 2019 using a modified retrospective transition method. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments . The standard clarifies how certain cash receipts and cash payments will be presented and classified in the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements.

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2017
SHARE-BASED COMPENSATION.
Schedule of share-based compensation expense	Total share-based compensation expense for all of the Company’s share-based awards was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of goods sold $ 13 $ 40 $ 41 $ 115 Selling, general and administrative 652 1,920 Research and development 88 260 Total share-based compensation expense $ $ $ $

CASH, CASH EQUIVALENTS, AND A26

CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2017
CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES
Schedule of fair value and amortized cost of cash, cash equivalents, and available-for-sale securities by major security type	As of September 30, 2017 Gross Gross Amortized Unrealized Unrealized Estimated Cash and cash equivalents and available-for-sale securities Cost Gains Losses Fair Value Cash and money market funds $ 73,151 $ — $ — $ 73,151 U.S. Treasury securities 17,621 — (94) 17,527 Corporate debt securities 145,509 83 (247) 145,345 Total 236,281 83 (341) 236,023 Less amounts classified as cash and cash equivalents (73,151) — — (73,151) Total available-for-sale securities $ 163,130 $ 83 $ (341) $ 162,872 As of December 31, 2016 Gross Gross Amortized Unrealized Unrealized Estimated Cash and cash equivalents and available-for-sale securities Cost Gains Losses Fair Value Cash and money market funds $ 84,783 $ — $ — $ 84,783 U.S. Treasury securities 24,780 7 (110) 24,677 Corporate debt securities 160,571 52 (564) 160,059 Total 270,134 59 (674) 269,519 Less amounts classified as cash and cash equivalents (84,783) — — (84,783) Total available-for-sale securities $ 185,351 $ 59 $ (674) $ 184,736
Schedule of Fair Value of Separate Accounts by Major Category of Investment	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 September 30, 2017 Level 1 Level 2 Level 3 Total Cash and money market funds $ 73,151 $ — $ — $ 73,151 U.S. Treasury securities 17,527 — — 17,527 Corporate debt securities — 145,345 — 145,345 Total $ 90,678 $ 145,345 $ — $ 236,023 As of December 31, 2016 Level 1 Level 2 Level 3 Total Cash and money market funds $ 84,783 $ — $ — $ 84,783 U.S. Treasury securities 24,677 — — 24,677 Corporate debt securities — 160,059 — 160,059 Total $ 109,460 $ 160,059 $ — $ 269,519

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	9 Months Ended
	Sep. 30, 2017
ACCOUNTS RECEIVABLE
Schedule of accounts receivable	Accounts receivable consist of the following (in thousands): Balance as of September 30, December 31, 2017 2016 Qsymia $ 9,870 $ 8,982 STENDRA/SPEDRA 2,131 12,001 Qsymia allowance for cash discounts (195) (213) Net $ 11,806 $

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2017
INVENTORIES
Schedule of inventories	Inventories consist of the following (in thousands): Balance as of September 30, December 31, 2017 2016 Raw materials $ 11,506 $ 9,412 Work-in-process 41 2,984 Finished goods 1,895 3,110 Deferred costs — 680 Inventories $ 13,442 $ 16,186

PREPAID EXPENSES AND OTHER CU29

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	9 Months Ended
	Sep. 30, 2017
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Schedule of prepaid expenses and other assets	Prepaid expenses and other current assets consist of the following (in thousands): Balance as of September 30, December 31, 2017 2016 Prepaid sales and marketing expenses $ 1,663 $ 1,767 Prepaid insurance 143 1,182 Other prepaid expenses and assets 1,948 5,302 Total $ 3,754 $ 8,251

ACCRUED AND OTHER LIABILITIES (

ACCRUED AND OTHER LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2017
ACCRUED AND OTHER LIABILITIES
Schedule of accrued and other liabilities	Accrued and other liabilities consist of the following (in thousands): Balance as of September 30, December 31, 2017 2016 Accrued employee compensation and benefits $ 2,357 $ 3,014 Reserve for product returns 7,152 — Product-related accruals 5,207 Accrued interest on debt (see Note 13) 2,335 1,509 Accrued manufacturing costs 545 Accrued non-recurring charges (see Note 10) — 5 Other accrued liabilities 2,210 3,652 Total $ 19,806 $ 15,686

NON-RECURRING CHARGES (Tables)

NON-RECURRING CHARGES (Tables)	9 Months Ended
	Sep. 30, 2017
INVENTORY IMPAIRMENT AND OTHER NON-RECURRING CHARGES
Schedule of activity for the cost reduction plan (the restructuring accrual)	Severance obligations Balance of accrued costs at January 1, 2017 $ 5 Charges — Payments (5) Balance of accrued costs at September 30, 2017 $ —

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	9 Months Ended
	Sep. 30, 2017
DEFERRED REVENUE
Deferred Revenue, by Arrangement, Disclosure	Deferred revenue consists of the following (in thousands): Balance as of September 30, December 31, 2017 2016 Qsymia deferred revenue - current $ — $ 17,558 STENDRA deferred revenue - current 1,884 1,616 Deferred revenue - current $ 1,884 $ 19,174 STENDRA deferred revenue - non-current $ 5,205 $ 6,449

LONG-TERM DEBT AND COMMITTMENTS

LONG-TERM DEBT AND COMMITTMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
LONG-TERM DEBT AND COMMITMENTS
Schedule of debt	The following table summarizes information on the debt (in thousands): September 30, 2017 Convertible Senior Notes due 2020 $ Senior Secured Notes due 2018 Less: Debt issuance costs Less: Discount on convertible senior notes Less: Current portion Long-term debt, net of current portion $ Future estimated payments on the Senior Secured Notes as of September 30, 2017 are as follows: 2017 (remaining 3 months) $ 2018 Total Less: Interest portion Senior Secured Notes $

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Information and Concentration of Customers and Suppliers
Schedule of revenue	Net product revenue by geographic region was as follows (in thousands): Three Months Ended September 30, 2017 2016 U.S. ROW Total U.S. ROW Total Qsymia—Net product revenue $ 9,911 $ — $ 9,911 $ 12,294 $ — $ 12,294 Qsymia—License revenue — 2,500 2,500 — — — STENDRA/SPEDRA—Supply revenue 1,070 1,063 2,133 — — — STENDRA/SPEDRA —Royalty revenue — 649 649 425 634 1,059 Total revenue $ 10,981 $ 4,212 (1) $ 15,193 $ 12,719 $ 634 (2) $ 13,353 Nine Months Ended September 30, 2017 2016 U.S. ROW Total U.S. ROW Total Qsymia—Net product revenue $ 36,049 $ — $ 36,049 $ 37,455 $ — $ 37,455 Qsymia—License and milestone revenue 5,000 2,500 7,500 — — — STENDRA/SPEDRA—Supply revenue 4,845 3,219 8,064 — 1,526 1,526 STENDRA/SPEDRA —Royalty revenue — 1,819 1,819 1,649 1,823 3,472 Total revenue $ 45,894 $ 7,538 (3) $ 53,432 $ 39,104 $ 3,349 (4) $ 42,453 (1) $1.7 million of which was attributable to Germany and $2.5 million of which was attributable to South Korea. (2) $0.6 million of which was attributable to Germany. (3) $5.0 million of which was attributable to Germany and $2.5 million of which was attributable to South Korea. (4) $3.3 million of which was attributable to Germany.

BASIS OF PRESENTATION, NARRATIV

BASIS OF PRESENTATION, NARRATIVES (Details)	9 Months Ended
	Sep. 30, 2017item
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Approved Federal Drug Administration Therapies	2
Number of product candidate in active clinical development	1
Qsymia
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Months of Returns Experience	48 months
Qsymia | Minimum
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Product Shelf Life Term	6 months
Potential Return Period	24 months
Qsymia | Maximum
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Product Shelf Life Term	12 months
Potential Return Period	36 months

BASIS OF PRESENTATION, RECLASSI

BASIS OF PRESENTATION, RECLASSIFICATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Change in Accounting Estimate [Line Items]
Net Income (Loss) Attributable to Parent	$ (5,994)	$ (9,152)	$ (20,436)	$ (33,261)
Earnings Per Share, Basic and Diluted	$ (0.06)	$ (0.09)	$ (0.19)	$ (0.32)
Change in accounting estimate | Qsymia
Change in Accounting Estimate [Line Items]
Revenues			$ 7,300
Net Income (Loss) Attributable to Parent			$ 6,000
Earnings Per Share, Basic and Diluted			$ 0.06

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
SHARE-BASED COMPENSATION
Share-based compensation	$ 753	$ 641	$ 2,221	$ 1,740
Cost of goods sold
SHARE-BASED COMPENSATION
Share-based compensation	13	40	41	115
Selling, general and administrative
SHARE-BASED COMPENSATION
Share-based compensation	652	413	1,920	1,299
Research and development
SHARE-BASED COMPENSATION
Share-based compensation	88	188	260	326
Inventory
SHARE-BASED COMPENSATION
Total share-based compensation cost capitalized as part of cost of inventory	$ 3	$ 19	$ 8	$ 26

CASH, CASH EQUIVALENTS, AND A38

CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES (Fair Value of Cash, Cash Equivalents, and Available-For-Sale Securities) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Cash and cash equivalents and available-for-sale securities, Amortized Cost
Cash and Cash Equivalents, at Carrying Value	$ 73,151	$ 84,783	$ 154,137	$ 95,395
Available-for-sale securities including cash and cash equivalents, Amortized Cost Total	236,281	270,134
Less amounts classified as cash equivalents, Amortized Cost	(73,151)	(84,783)	$ (154,137)	$ (95,395)
Available-for-sale Debt Securities, Amortized Cost Basis, Total	163,130	185,351
Available-for-sale securities, Gross Unrealized Gains	83	59
Available-for-sale securities, Gross Unrealized Losses	(341)	(674)
Available-for-sale Securities, Debt Securities, Current	162,872	184,736
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Cash and Cash Equivalents, Fair Value Disclosure	73,151	84,783
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	236,023	269,519
Less amounts classified as cash equivalents, Estimated Fair Value	(73,151)	(84,783)
Available-for-sale Securities, Debt Securities, Current	$ 162,872	184,736
Maximum original contractual maturities of available for sale securities	67 months
U.S. Treasury securities
Cash and cash equivalents and available-for-sale securities, Amortized Cost
Available-for-sale Debt Securities, Amortized Cost Basis, Total	$ 17,621	24,780
Available-for-sale securities, Gross Unrealized Gains		7
Available-for-sale securities, Gross Unrealized Losses	(94)	(110)
Available-for-sale Securities, Debt Securities, Current	17,527	24,677
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Available-for-sale Securities, Debt Securities, Current	17,527	24,677
Corporate Debt Securities [Member]
Cash and cash equivalents and available-for-sale securities, Amortized Cost
Available-for-sale Debt Securities, Amortized Cost Basis, Total	145,509	160,571
Available-for-sale securities, Gross Unrealized Gains	83	52
Available-for-sale securities, Gross Unrealized Losses	(247)	(564)
Available-for-sale Securities, Debt Securities, Current	145,345	160,059
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Available-for-sale Securities, Debt Securities, Current	145,345	160,059
Cash and money market funds
Cash and cash equivalents and available-for-sale securities, Amortized Cost
Cash and Cash Equivalents, at Carrying Value	73,151	84,783
Less amounts classified as cash equivalents, Amortized Cost	(73,151)	(84,783)
Available-for-sale securities, Gross Unrealized Losses		0
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Cash and Cash Equivalents, Fair Value Disclosure	73,151	84,783
Less amounts classified as cash equivalents, Estimated Fair Value	$ (73,151)	$ (84,783)

CASH, CASH EQUIVALENTS, AND A39

CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES (Fair Value Hierarchy for Cash Equivalents and Available-For-Sale Securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair value measurements
Cash and Cash Equivalents, Fair Value Disclosure	$ 73,151	$ 84,783
Available-for-sale Securities, Debt Securities, Current	162,872	184,736
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	236,023	269,519
U.S. Treasury securities
Fair value measurements
Available-for-sale Securities, Debt Securities, Current	17,527	24,677
Corporate Debt Securities [Member]
Fair value measurements
Available-for-sale Securities, Debt Securities, Current	145,345	160,059
Level 1
Fair value measurements
Cash and Cash Equivalents, Fair Value Disclosure	73,151	84,783
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	90,678	109,460
Level 1 | U.S. Treasury securities
Fair value measurements
Available-for-sale Securities, Debt Securities, Current	17,527	24,677
Level 1 | Corporate Debt Securities [Member]
Fair value measurements
Available-for-sale Securities, Debt Securities, Current	0	0
Level 2
Fair value measurements
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	145,345	160,059
Level 2 | U.S. Treasury securities
Fair value measurements
Available-for-sale Securities, Debt Securities, Current	0	0
Level 2 | Corporate Debt Securities [Member]
Fair value measurements
Available-for-sale Securities, Debt Securities, Current	145,345	160,059
Level 3
Fair value measurements
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	0	0
Level 3 | U.S. Treasury securities
Fair value measurements
Available-for-sale Securities, Debt Securities, Current	0	0
Level 3 | Corporate Debt Securities [Member]
Fair value measurements
Available-for-sale Securities, Debt Securities, Current	$ 0	$ 0

ACCOUNTS RECEIVABLE (Details)

ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Accounts Receivable, Gross, Current	$ 12,001	$ 9,691
Accounts receivable, net	11,806	9,478
Qsymia
Accounts Receivable, Gross, Current	9,870	8,982
Qsymia | Reserve for cash discount
Qsymia allowance for cash discouts	(195)	(213)
STENDRA/SPEDRA
Accounts Receivable, Gross, Current	$ 2,131	$ 709

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory balances
Raw materials	$ 11,506	$ 9,412
Work in process	41	2,984
Finished goods	1,895	3,110
Deferred costs		680
Total	$ 13,442	$ 16,186

PREPAID EXPENSES AND OTHER CU42

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid sales and marketing expenses	$ 1,663	$ 1,767
Prepaid insurance	143	1,182
Other prepaid expenses and assets	1,948	5,302
Total	$ 3,754	$ 8,251

ACCRUED AND OTHER LIABILITIES43

ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ACCRUED AND OTHER LIABILITIES
Accrued employee compensation and benefits	$ 2,357	$ 3,014
Reserve for product returns	7,152
Product-related accruals	5,207	671
Accrued interest on debt (see Note 13)	2,335	1,509
Accrued manufacturing costs	545	6,835
Accrued non-recurring charges (see Note 10)		5
Other accrued liabilities	2,210	3,652
Total	$ 19,806	$ 15,686

NON-CURRENT ACCRUED AND OTHER44

NON-CURRENT ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
NON-CURRENT ACCRUED AND OTHER LIABILITIES
Non-current accrued and other liabilities	$ 0.3	$ 0.3

NON-RECURRING CHARGES (Details)

NON-RECURRING CHARGES (Details) - Employee severance costs $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Activity for the Company's cost reduction plan obligations
Balance of accrued costs at the beginning of the period	$ 5
Charges	0
Payments	(5)
Balance of accrued costs at the end of the period	$ 0

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
DEFERRED REVENUE
Current deferred revenue	$ 1,884	$ 19,174
Non-Current deferred revenue	5,205	6,449
Qsymia
DEFERRED REVENUE
Current deferred revenue		17,558
STENDRA/SPEDRA
DEFERRED REVENUE
Current deferred revenue	1,884	1,616
Non-Current deferred revenue	$ 5,205	$ 6,449

LICENSE, COMMERCIALIZATION AN47

LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS (Details) $ in Thousands	Sep. 30, 2016USD ($)	Jul. 05, 2013item	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2017USD ($)
License, Commercialization, and Development Agreements with Third Parties
License and Services Revenue				$ 2,500	$ 7,500
STENDRA/SPEDRA | Metuchen
License, Commercialization, and Development Agreements with Third Parties
License and Services Revenue			$ 69,400
Prepayment received for future royalties	$ 70,000
Qsymia
License, Commercialization, and Development Agreements with Third Parties
License and Services Revenue				2,500	$ 7,500
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
License and commercialization agreement | Qsymia | Alvogen
License, Commercialization, and Development Agreements with Third Parties
License and Services Revenue				$ 2,500
Supply agreement | STENDRA/SPEDRA | Metuchen
License, Commercialization, and Development Agreements with Third Parties
Initial term	5 years
Additional period of auto-renewal	2 years
Supply agreement | STENDRA/SPEDRA | Metuchen | Minimum
License, Commercialization, and Development Agreements with Third Parties
Termination notice of license and supply agreement	2 years

LONG-TERM DEBT AND COMMITMENTS

LONG-TERM DEBT AND COMMITMENTS (Narrative) (Details) - USD ($)	May 29, 2013	Apr. 09, 2013	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	May 21, 2013
FDA Approval Qsymia (PMR and CVOT) Member
Long-term debt
Contractual Obligation Term					5 years
Minimum | FDA Approval Qsymia (PMR and CVOT) Member
Long-term debt
Contractual Obligation			$ 180,000,000		$ 180,000,000
Maximum | FDA Approval Qsymia (PMR and CVOT) Member
Long-term debt
Contractual Obligation			220,000,000		220,000,000
Convertible Senior Notes Due 2020
Long-term debt
Offering amount							$ 220,000,000
Interest rate (as a percent)							4.50%
Increase in debt instrument face amount	$ 30,000,000
Conversion price per share (in dollars per share)	$ 14.86
Net proceeds from offering	$ 241,800,000
Total interest expense recognized			8,300,000	$ 7,500,000	24,300,000	$ 22,100,000
Amortization of debt discount			4,900,000	4,400,000	14,300,000	13,000,000
Amortization of deferred financing costs			259,000	235,000	758,000	689,000
Senior Secured Notes Due 2018
Long-term debt
Total interest expense recognized			700,000	1,300,000	2,700,000	3,600,000
Amortization of deferred financing costs			$ 46,000	$ 46,000	$ 126,000	$ 189,000
Amount received		$ 50,000,000
Amount received in funding and facility payments		$ 500,000
Amount due as a percentage of net sales, if scheduled quarterly payments are less than 25% of the net sales			25.00%		25.00%
Make-whole premium ratio			1.03		1.03

LONG-TERM DEBT AND COMMITMENT49

LONG-TERM DEBT AND COMMITMENTS (Schedule of Debt) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Long-term debt
Senior Secured Notes	$ 260,494
Less: Debt issuance costs	(1,332)
Less: Discount on convertible senior notes	(24,451)
Net carrying value	234,711
Less: Current Portion	(9,357)	$ (8,708)
Long-term debt, net of current portion	225,354	$ 232,610
2017 (remaining 3 months)	10,625
2,018	18,606
Total	29,231
Less: Interest portion	(18,737)
Convertible Senior Notes Due 2020
Long-term debt
Senior Secured Notes	250,000
Senior Secured Notes Due 2018
Long-term debt
Senior Secured Notes	$ 10,494

NET INCOME (LOSS) PER SHARE (De

NET INCOME (LOSS) PER SHARE (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income (loss) per share.
Equivalent shares of options excluded from computation of diluted net income (loss) per share because anti-dilutive effect	13,724,000	10,261,000	13,435,000	10,520,000
Convertible Senior Notes Due 2020
Net income (loss) per share.
Net shares issued			0
Minimum stock price to trigger conversion of debt (in dollars per share)			$ 20
Convertible Senior Notes Due 2020 | Convertible Common Stock
Net income (loss) per share.
Dilutive Securities impact on diluted net income (in dollars per share)			$ 0

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
INCOME TAXES
Income Tax Expense (Benefit)	$ 8,000	$ (9,000)	$ (3,000)	$ 14,000
Unrecognized Tax Benefits	$ 84,000		$ 84,000

LEGAL MATTERS (Details)

LEGAL MATTERS (Details) $ in Millions	Jan. 03, 2017	Aug. 05, 2015item	Jul. 07, 2015item	Jun. 18, 2015item	Jan. 21, 2015item	Mar. 27, 2014USD ($)
Third Paragraph IV Certification Notice from Actavis Member
LEGAL MATTERS
Number of patents-in-suit			2
Second Paragraph IV Certification Notice from Actavis Member
LEGAL MATTERS
Number of patents-in-suit					2
Paragraph IV Certification Notice from Teva Pharmaceuticals Member
LEGAL MATTERS
Number of patents-in-suit		2
Federal Leave To Amend Claims Member
LEGAL MATTERS
Loss Contingency, Claims Dismissed, Number				2
California Prejudice Claims Member
LEGAL MATTERS
Loss Contingency, Claims Dismissed, Number				7
STENDRA ANDA Litigation member
LEGAL MATTERS
Period prior to expiration notice of the last to expire of patents-in-suit	180 days
Shareholder derivative lawsuit | Minimum | Qsymia
LEGAL MATTERS
Amount of damages sought | $						$ 2.8

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)
Geographic Information
Net product revenue	$ 9,911	$ 12,294	$ 36,049	$ 37,455
License and milestone revenue	2,500		7,500
Supply revenue	2,133		8,064	1,526
Royalty revenue	649	1,059	1,819	3,472
Total revenue	15,193	13,353	$ 53,432	42,453
Number of Operating Segments | segment			1
U.S.
Geographic Information
Total revenue	10,981	12,719	$ 45,894	39,104
ROW
Geographic Information
Total revenue	4,212	634	7,538	3,349
Germany
Geographic Information
Total revenue	1,700	600	5,000	3,300
South Korea
Geographic Information
Total revenue	2,500		2,500
Qsymia
Geographic Information
Net product revenue	9,911	12,294	36,049	37,455
License and milestone revenue	2,500		7,500
Qsymia | U.S.
Geographic Information
Net product revenue	9,911	12,294	36,049	37,455
License and milestone revenue			5,000
Qsymia | ROW
Geographic Information
License and milestone revenue	2,500		2,500
STENDRA/SPEDRA
Geographic Information
Supply revenue	2,133		8,064	1,526
Royalty revenue	649	1,059	1,819	3,472
STENDRA/SPEDRA | U.S.
Geographic Information
Supply revenue	1,070		4,845
Royalty revenue		425		1,649
STENDRA/SPEDRA | ROW
Geographic Information
Supply revenue	1,063		3,219	1,526
Royalty revenue	$ 649	$ 634	$ 1,819	$ 1,823