Vivus (VVUS) 10-K 14 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 28, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	VIVUS INC
Entity Central Index Key	881,524
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 128,175,791
Entity Common Stock, Shares Outstanding		106,021,055
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 66,392	$ 84,783
Available-for-sale securities	159,943	184,736
Accounts receivable, net	12,187	9,478
Inventories	17,712	16,186
Prepaid expenses and other current assets	7,178	8,251
Total current assets	263,412	303,434
Property and equipment, net	542	788
Non-current assets	1,014	1,554
Total assets	264,968	305,776
Current liabilities:
Accounts payable	10,072	4,707
Accrued and other liabilities	21,475	15,686
Deferred revenue	2,075	19,174
Current portion of long-term debt	5,147	8,708
Total current liabilities	38,769	48,275
Long-term debt, net of current portion	230,536	232,610
Deferred revenue, net of current portion	4,674	6,449
Non-current accrued and other liabilities	327	257
Total liabilities	274,306	287,591
Commitments and contingencies
Stockholders' equity
Preferred stock; $1.00 par value; 5,000 shares authorized; no shares issued and outstanding at December 31, 2017 and December 31, 2016
Common stock; $.001 par value; 200,000 shares authorized; 105,977 and 104,874 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively	105	105
Additional paid-in capital	834,730	831,750
Accumulated other comprehensive loss	(608)	(616)
Accumulated deficit	(843,565)	(813,054)
Total stockholders' (deficit) equity	(9,338)	18,185
Total liabilities and stockholders' (deficit) equity	$ 264,968	$ 305,776

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 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	105,977,000	104,874,000
Common stock, shares outstanding	105,977,000	104,874,000

Consolidated Statements Of Oper

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenue:
Net product revenue	$ 44,983	$ 48,501	$ 54,622
License and milestone revenue	7,500	69,400	11,574
Supply revenue	10,407	2,291	26,674
Royalty revenue	2,483	4,066	2,560
Total revenue	65,373	124,258	95,430
Operating expenses:
Cost of goods sold	17,187	10,602	34,157
Selling, general and administrative	40,130	52,379	79,387
Research and development	5,263	5,592	10,102
Inventory impairment and other non-recurring charges	0	0	32,061
Total operating expenses	62,580	68,573	155,707
Income (Loss) from operations	2,793	55,685	(60,277)
Interest Expense	33,231	32,888	33,317
Other expense (income), net	71	(575)	(490)
Interest expense and other expense, net	33,302	32,313	32,827
(Loss) income before income taxes	(30,509)	23,372	(93,104)
Provision for income taxes	2	70	3
Net (loss) income	$ (30,511)	$ 23,302	$ (93,107)
Basic and diluted net loss per share:
Basic net (loss) income per share	$ (0.29)	$ 0.22	$ (0.90)
Diluted net (loss) income per share	$ (0.29)	$ 0.22	$ (0.90)
Shares used in per share computation:
Basic	105,741	104,385	103,926
Diluted	105,741	104,969	103,926

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net (loss) income	$ (30,511)	$ 23,302	$ (93,107)
Other comprehensive loss:
Unrealized gain (loss) on securities, net of taxes	8	(355)	(233)
Comprehensive (loss) income	$ (30,503)	$ 22,947	$ (93,340)

Consolidated Statements Of Stoc

Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Balances at Dec. 31, 2014	$ 104	$ 825,691	$ (28)	$ (743,249)	$ 82,518
Balances (in shares) at Dec. 31, 2014	103,729,000
Sale of common stock through employee stock purchase plan		147			147
Sale of common stock through employee stock purchase plan (in shares)	77,000
Vesting of restricted stock units (in shares)	249,000
Share-based compensation expense		3,590			3,590
Net unrealized (loss) gain on securities			(233)		(233)
Net income (loss)				(93,107)	(93,107)
Balances at Dec. 31, 2015	$ 104	829,428	(261)	(836,356)	(7,085)
Balances (in shares) at Dec. 31, 2015	104,055,000
Sale of common stock through employee stock purchase plan		39			39
Sale of common stock through employee stock purchase plan (in shares)	41,000
Vesting of restricted stock units (in shares)	778,000
Vesting of restricted stock units, value	$ 1	(1)
Share-based compensation expense		2,284			2,284
Net unrealized (loss) gain on securities			(355)		(355)
Net income (loss)				23,302	23,302
Balances at Dec. 31, 2016	$ 105	831,750	(616)	(813,054)	$ 18,185
Balances (in shares) at Dec. 31, 2016	104,874,000				104,874,000
Sale of common stock through employee stock purchase plan		38			$ 38
Sale of common stock through employee stock purchase plan (in shares)	51,000
Vesting of restricted stock units (in shares)	1,052,000
Share-based compensation expense		2,942			2,942
Net unrealized (loss) gain on securities			8		8
Net income (loss)				(30,511)	(30,511)
Balances at Dec. 31, 2017	$ 105	$ 834,730	$ (608)	$ (843,565)	$ (9,338)
Balances (in shares) at Dec. 31, 2017	105,977,000				105,977,000

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flow - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net (loss) income	$ (30,511)	$ 23,302	$ (93,107)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	811	1,080	1,387
Amortization of debt issuance costs and discounts	20,442	18,666	17,174
Amortization of discount or premium on available-for-sale securities	768	944	2,282
Share-based compensation expense	2,942	2,284	3,590
Loss on disposal of property and equipment		342
Inventory impairment charge			29,522
Changes in assets and liabilities:
Accounts receivable	(2,709)	(481)	2,598
Inventories	(1,526)	(2,584)	(8,487)
Prepaid expenses and other assets	1,069	1,516	2,639
Accounts payable	5,365	(2,353)	(3,370)
Accrued and other liabilities	5,859	(1,524)	(889)
Deferred revenue	(18,874)	(3,027)	329
Net cash used for operating activities	(16,364)	38,165	(46,332)
Cash flows from investing activities:
Property and equipment purchases	(21)	(211)	(310)
Purchases of available-for-sale securities	(31,097)	(135,997)	(213,536)
Proceeds from maturity of available-for-sale securities	37,470	60,050	281,250
Proceeds from sales of available-for-sale securities	17,660	36,080
Net cash (used for) provided by investing activities	24,012	(40,078)	67,404
Cash flows from financing activities:
Repayments of notes payable	(26,077)	(8,738)	(8,998)
Sale of common stock through employee stock purchase plan	38	39	147
Net cash used for financing activities	(26,039)	(8,699)	(8,851)
Net (decrease) increase in cash and cash equivalents	(18,391)	(10,612)	12,221
Cash and cash equivalents:
Beginning of period	84,783	95,395	83,174
End of period	66,392	84,783	95,395
Supplemental cash flow disclosure:
Interest paid	15,350	15,368	18,756
Income taxes paid	47	59	58
Non-cash investing activities:
Unrealized gain (loss) on securities	$ 8	$ (355)	$ (233)

Basis Of Presentation

Basis Of Presentation	12 Months Ended
	Dec. 31, 2017
BASIS OF PRESENTATION
Business and Significant Accounting Policies	Note 1 Business VIVUS is a biopharmaceutical company developing and commercializing innovative, next-generation therapies to address unmet medical needs in human health. The Company has 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. STENDRA® (avanafil) is approved by FDA for erectile dysfunction, or ED, and by the European Commission, or EC, under the trade name SPEDRA, for the treatment of ED in the EU. Tacrolimus is in clinical development for the treatment of patients with 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. primarily through a sales force supported by an internal commercial team, 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. At December 31, 2017, the Company’s accumulated deficit was approximately $843.6 million. Based on current plans, management expects to incur further losses for the foreseeable future. Management believes that the Company’s existing capital resources combined with anticipated future cash flows will be sufficient to support its operating needs at least for the next twelve months. However, the Company anticipates that it may require additional funding to find the right partner for expanded Qsymia commercial promotion to a broader primary care physician audience, create a pathway for centralized approval of the marketing authorization application for Qsiva in the EU, conduct post-approval clinical studies for Qsymia, conduct non-clinical and clinical research and development work to support regulatory submissions and applications for our current and future investigational drug candidates, finance the costs involved in filing and prosecuting patent applications and enforcing or defending our patent claims, if any, to fund operating expenses, establish additional or new manufacturing and marketing capabilities, and manufacture quantities of its drugs and investigational drug candidates and to make payments under its existing license agreements and supply agreements. If the Company requires additional capital, it may seek any required additional funding through collaborations, public and private equity or debt financings, capital lease transactions or other available financing sources. Additional financing may not be available on acceptable terms, or at all. If additional funds are raised by issuing equity securities, substantial dilution to existing stockholders may result. If adequate funds are not available, the Company may be required to delay, reduce the scope of or eliminate one or more of its commercialization or development programs or obtain funds through collaborations with others that are on unfavorable terms or that may require the Company to relinquish rights to certain of its technologies, product candidates or products that it would otherwise seek to develop on its own. Management has evaluated all events and transactions that occurred after December 31, 2017, through the date these consolidated financial statements were filed. There were no events or transactions occurring during this period that require recognition or disclosure in these consolidated financial statements. The Company operates in a single segment, the development and commercialization of novel therapeutic products. Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of VIVUS, Inc., and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The Company’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles as set forth in the FASB’s Accounting Standards Codification, with consideration given to the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission. These accounting principles require management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including critical accounting policies or estimates related to available‑for‑sale securities, debt instruments, contingencies, litigation, inventories, research and development expenses, income taxes, and share‑based compensation. The Company bases its estimates on historical experience, information received from third parties and on various market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ significantly from those estimates under different assumptions or conditions. Cash and Cash Equivalents The Company considers highly liquid investments with maturities from the date of purchase of three months or less to be cash equivalents. At December 31, 2017 and 2016, all cash equivalents were invested in money market funds or U.S. Treasury securities. These investments are recorded at fair value (see Note 2). Available‑for‑Sale Securities The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. Marketable securities have been classified and accounted for as available‑for‑sale. The Company may or may not hold securities with stated maturities greater than 12 months until maturity. In response to changes in the availability of and the yield on alternative investments as well as liquidity requirements, the Company may sell these securities prior to their stated maturities. As these securities are viewed by the Company as available to support current operations, securities with maturities beyond 12 months are classified as current assets. Securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of stockholders’ equity (deficit), unless the decline in value is deemed to be other than temporary, in which case such securities are written down to fair value and the loss is charged to other‑than‑temporary loss on impaired securities. The Company periodically evaluates its investment securities for other‑than‑temporary declines based on quantitative and qualitative factors. Any losses that are deemed other-than-temporary are recognized as a non-operating loss. To date, the Company has not had any other-than-temporary declines in the value of any of the securities in its investment portfolio. Realized gains or losses on the sale of marketable securities are determined on a specific identification method, and such gains and losses are reflected as a component of interest expense. Fair Value Measurements The Company’s financial instruments include cash equivalents, available‑for‑sale securities, accounts receivable, accounts payable, accrued liabilities and debt. Available‑for‑sale securities are carried at fair value. The carrying value of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the relatively short‑term nature of these instruments. Debt instruments are initially recorded at face value, with stated interest and amortization of debt issuance discounts and costs recognized as interest expense, which currently approximates fair value. Issuance costs related to the conversion option of the Company’s convertible notes were charged to additional paid‑in capital. The portion of the issuance costs related to the debt component is being amortized and recorded as additional interest expense over the expected life of the convertible notes. In connection with the issuance of the convertible notes, the Company entered into capped call transactions with certain counterparties affiliated with the underwriters. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, available‑for‑sale‑securities, and accounts receivable. The Company has established guidelines to limit its exposure to credit risk by placing investments in high credit quality money market funds, U.S. Treasury securities or corporate debt securities and by placing investments with maturities that maintain safety and liquidity within the Company’s liquidity needs. The Company has also established guidelines for the issuance of credit to existing and potential customers. Accounts Receivable, Allowances for Doubtful Accounts and Cash Discounts The Company extends credit to its customers for product sales resulting in accounts receivable. Customer accounts are monitored for past due amounts. Amounts that are determined to be uncollectible are written off against the allowance for doubtful accounts. Allowances for doubtful accounts are estimated based upon past due amounts, historical losses and existing economic factors, and are adjusted periodically. Historically, the Company has not had any significant uncollected accounts. The Company offers cash discounts to its customers, generally 2% of the sales price, as an incentive for prompt payment. The estimate of cash discounts is recorded at the time of sale. The Company accounts for the cash discounts by reducing revenue and accounts receivable by the amount of the discounts it expects the customers to take. The accounts receivable are reported in the consolidated balance sheets, net of the allowances for doubtful accounts and cash discounts. There is no allowance for doubtful accounts at December 31, 2017 or 2016. The allowance for cash discounts is $195,000 and $213,000 at December 31, 2017 and 2016, respectively. Inventories Inventories are valued at the lower of cost or market. Cost is determined using the first‑in, first‑out method using a weighted average cost method calculated for each production batch. Inventory includes the cost of the active pharmaceutical ingredients, or API, raw materials and third‑party contract manufacturing and packaging services. Indirect overhead costs associated with production and distribution are allocated to the appropriate cost pool and then absorbed into inventory based on the units produced or distributed, assuming normal capacity, in the applicable period. Inventory costs of product shipped to customers, but not yet recognized as revenue, are recorded within inventories on the consolidated balance sheets and are subsequently recognized to cost of goods sold when revenue recognition criteria have been met. The Company’s policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected requirements. The estimate of excess quantities is subjective and primarily dependent on the Company’s estimates of future demand for a particular product. If the estimate of future demand is inaccurate based on lower actual sales, the Company may increase the write down for excess inventory for that product and record a charge to inventory impairment. The Company periodically evaluates the carrying value of inventory on hand for potential excess amount over demand. As a result of this evaluation, for the year ended December 31, 2015, the Company recognized an impairment charge of $29.5 million for Qsymia API inventory in excess of projected demand. Property and Equipment Property and equipment is stated at cost and includes computers and software, furniture and fixtures, leasehold improvements and manufacturing equipment. Depreciation is computed using the straight‑line method over the estimated useful lives of two to seven years for computers and software, furniture and fixtures and manufacturing equipment. Leasehold improvements are amortized using the straight‑line method over the shorter of the remaining lease term or the estimated useful lives. Expenditures for repairs and maintenance, which do not extend the useful life of the property and equipment, are expensed as incurred. Gains and losses associated with dispositions are reflected as a non-operating gain or loss in the accompanying consolidated statements of operations. Long‑lived assets, including property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to an estimate of undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. To date, the Company has had no significant write-offs of long-lived assets. Debt Issuance Costs Debt issuance costs, which are presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, are amortized as interest expense using the effective-interest method over the expected term of the debt. Revenue Recognition Product Revenue: The Company recognizes product revenue when: (i) persuasive evidence that an arrangement exists, (ii) delivery has occurred and title has passed, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. Revenue from sales transactions where the customer has the right to return the product is recognized at the time of sale only if: (i) the Company’s price to the customer is substantially fixed or determinable at the date of sale, (ii) the customer has paid the Company, or the customer is obligated to pay the Company and the obligation is not contingent on resale of the product, (iii) the customer’s obligation to the Company would not be changed in the event of theft or physical destruction or damage of the product, (iv) the customer acquiring the product for resale has economic substance apart from that provided by the Company, (v) the Company does not have significant obligations for future performance to directly bring about resale of the product by the customer, and (vi) the amount of future returns can be reasonably estimated. Product Revenue Allowances: Product revenue is recognized net of consideration paid to the Company’s customers, wholesalers and certified pharmacies. 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, in the first quarter of 2017 the Company recognized a one-time adjustment relating to products that had been previously shipped, consisting of $17.9 million of gross revenues, adjusted for an expected returns reserve of $5.7 million and estimated gross-to-net charges of $4.9 million, for a net impact of $7.3 million in revenues. The Company also recorded increased cost of goods sold of $0.6 million and marketing expense of $0.7 million associated with the change in accounting estimate. The increase in net product revenue resulted in a decrease in net loss of $6.0 million or $0.06 per share for 2017. Supply Revenue: The Company recognizes supply revenue from the sales of STENDRA or SPEDRA when the four basic revenue recognition criteria described above are met. The Company produces STENDRA or SPEDRA through a contract manufacturing partner and then sells it to its commercialization partners. The Company is the primary responsible party in the commercial supply arrangements and bears significant risk in the fulfillment of the obligations, including risks associated with manufacturing, regulatory compliance and quality assurance, as well as inventory, financial and credit loss. As such, the Company recognizes supply revenue on a gross basis as the principal party in the arrangements. Under the Company’s product supply agreements, as long as the product meets specified product dating criteria at the time of shipment to the partner, the Company’s commercialization partners do not have a right of return or credit for expired product. As such, the Company recognizes revenue for products that meet the dating criteria at the time of shipment. Revenue from Multiple‑Element Arrangements: The Company accounts for multiple‑element arrangements, such as license and commercialization agreements in which a customer may purchase several deliverables, in accordance with ASC Topic 605‑25, Revenue Recognition —Multiple‑Element Arrangements , or ASC 605‑25. The Company evaluates if the deliverables in the arrangement represent separate units of accounting. In determining the units of accounting, management evaluates certain criteria, including whether the deliverables have value to its customers on a stand‑alone basis. Factors considered in this determination include whether the deliverable is proprietary to the Company, whether the customer can use the license or other deliverables for their intended purpose without the receipt of the remaining elements, whether the value of the deliverable is dependent on the undelivered items, and whether there are other vendors that can provide the undelivered items. Deliverables that meet these criteria are considered a separate unit of accounting. Deliverables that do not meet these criteria are combined and accounted for as a single unit of accounting. When deliverables are separable, the Company allocates non‑contingent consideration to each separate unit of accounting based upon the relative selling price of each element. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor‑specific objective evidence, or VSOE, of selling price, if it exists, or third‑party evidence, or TPE, of selling price, if it exists. If neither VSOE nor TPE of selling price exists for a deliverable, the Company uses best estimated selling price, or BESP, for that deliverable. Significant management judgment may be required to determine the relative selling price of each element. Revenue allocated to each element is then recognized based on when the following four basic revenue recognition criteria are met for each element: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the price is fixed or determinable; and (iv) collectability is reasonably assured. Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue the Company reports. Changes in assumptions or judgments, or changes to the elements in an arrangement, could cause a material increase or decrease in the amount of revenue reported in a particular period. ASC Topic 605‑28, Revenue Recognition — Milestone Method or (ASC 605‑28), established the milestone method as an acceptable method of revenue recognition for certain contingent, event‑based payments under research and development arrangements. Under the milestone method, a payment that is contingent upon the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved. A milestone is an event: (i) that can be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved, and (iii) that would result in additional payments being due to the Company. The determination that a milestone is substantive requires judgment and is made at the inception of the arrangement. Milestones are considered substantive when the consideration earned from the achievement of the milestone is: (i) commensurate with either the Company’s performance to achieve the milestone or the enhancement of value of the item delivered as a result of a specific outcome resulting from the Company’s performance to achieve the milestone, (ii) relates solely to past performance, and (iii) is reasonable relative to all deliverables and payment terms in the arrangement. Other contingent, event‑based payments received for which payment is either contingent solely upon the passage of time or the results of a collaborative partner’s performance are not considered milestones under ASC 605‑28. In accordance with ASC 605, such payments will be recognized as revenue when all of the four basic revenue recognition criteria are met. Revenues recognized for royalty payments are recognized when the four basic revenue recognition criteria described above are met. Cost of Goods Sold Cost of goods sold for units shipped to customers includes the inventory costs of API, third‑party contract manufacturing costs, packaging and distribution costs, royalties, cargo insurance, freight, shipping, handling and storage costs, and overhead costs of the employees involved with production. Specifically, cost of goods sold for Qsymia dispensed to patients includes the inventory costs of the API, third‑party contract manufacturing and packaging and distribution costs, royalties, cargo insurance, freight, shipping, handling and storage costs, and overhead costs of the employees involved with production; cost of goods sold for STENDRA shipped to partners includes the inventory costs of purchased tablets, freight, shipping and handling costs. The cost of goods sold associated with deferred revenue on Qsymia and STENDRA product shipments is recorded as deferred costs, which are included in inventories in the consolidated balance sheets, until such time as the deferred revenue is recognized. Research and Development Expenses Research and development, or R&D, expenses include license fees, related compensation, consultants’ fees, facilities costs, administrative expenses related to R&D activities and clinical trial costs incurred by clinical research organizations or CROs, and research institutions under agreements that are generally cancelable, among other related R&D costs. The Company also records accruals for estimated ongoing clinical trial costs. Clinical trial costs represent costs incurred by CRO and clinical sites and include advertising for clinical trials and patient recruitment costs. These costs are recorded as a component of R&D expenses and are expensed as incurred. Under the Company’s agreements, progress payments are typically made to investigators, clinical sites and CROs. The Company analyzes the progress of the clinical trials, including levels of patient enrollment, invoices received and contracted costs when evaluating the adequacy of accrued liabilities. Significant judgments and estimates must be made and used in determining the accrued balance in any accounting period. Actual results could differ from those estimates under different assumptions. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. In addition, the Company has obtained rights to patented intellectual properties under several licensing agreements for use in research and development activities. Non‑refundable licensing payments made for intellectual properties that have no alternative future uses are expensed to research and development as incurred. Advertising Expenses Advertising expenses are expensed as incurred. The Company incurred advertising and sales promotion costs related to its marketing of Qsymia of $3.2 million, $3.9 million and $12.6 million in 2017, 2016 and 2015, respectively. Share‑Based Compensation Compensation expense is recognized for share-based payments, including stock options, restricted stock units and shares issued under the employee stock purchase plan, using a fair‑value based method. The Company estimates the fair value of share‑based payment awards on the date of the grant using the Black‑Scholes option‑pricing model, which requires the Company to estimate the expected term of the award, the expected volatility, the risk-free interest rate and the expected dividends. The expected term, which represents the period of time that options granted are expected to be outstanding, is derived by analyzing the historical experience of similar awards, giving consideration to the contractual terms of the share‑based awards, vesting schedules and expectations of future employee behavior. Expected volatilities are estimated using the historical share price performance over the expected term of the option, which are adjusted as necessary for any other factors which may reasonably affect the volatility of VIVUS’s stock in the future. The risk‑free interest rate is based on the U.S. Treasury yield in effect at the time of the grant for the expected term of the award. The Company does not anticipate paying any dividends in the near future. The Company develops pre‑vesting forfeiture assumptions based on an analysis of historical data and expected future activity. Inventory Impairment and Other Non‑Recurring Charges The Company’s inventory impairment and other non-recurring charges consist of inventory impairment charges, proxy contest expenses and charges from cost reduction plans, including employee severance, one time termination benefits and ongoing benefits related to the reduction of our workforce, facilities and other facility exit costs. Liabilities for costs associated with the cost reduction plan are recognized when the liability is incurred. In addition, liabilities associated with cost reduction activities are measured at fair value. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Ongoing benefits are expensed when cost reduction activities are probable and the benefit amounts are estimable. Other costs primarily consist of legal, consulting, and other costs related to employee terminations and are expensed when incurred. Termination benefits are calculated in accordance with the various agreements with certain of the Company’s employees. Income Taxes The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. As part of the process of preparing the Company’s consolidated financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which the Company operates. This process involves the Company estimating its current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the Company’s consolidated balance sheets. The Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If it is not more likely than not that the Company will recover its deferred tax assets, the Company will increase its provision for taxes by recording a valuation allowance against the deferred tax assets that the Company estimates will not ultimately be recoverable. As a result of the Company’s analysis of all available evidence, both positive and negative, as of December 31, 2017, it was considered more likely than not that the Company’s deferred tax assets would not be realized. However, should there be a change in the Company’s ability to recover its deferred tax assets, the Company would recognize a benefit to its tax provision in the period in which the Company determines that it is more likely than not that it will recover its deferred tax assets. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of its provision for income taxes. FASB ASC topic 740, Income Taxes , or ASC 740, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740‑10 utilizes a two‑step approach for evaluating uncertain tax positions. Step one, Recognition, requires a company to determine if the weight of available evidence indicates that a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes, if any. Step two, Measurement, is based on the largest amount of benefit, which is more likely than not to be realized on ultimate settlement. The Company also recognizes interest and penalties accrued on any unrecognized tax benefits as a component of its provision for income taxes. As of December 31, 2017, the Company does not have any unrecognized tax positions. Foreign Currency Transactions Transactions in foreign currencies are initially recorded at the rates of exchange prevailing on the dates of the transactions

Cash, Cash Equivalents, And Ava

Cash, Cash Equivalents, And Available-For-Sale Securities	12 Months Ended
	Dec. 31, 2017
CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES
CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES	Note 2. Cash, Cash Equivalents and Available‑for‑Sale Securities The fair value and the amortized cost of cash, cash equivalents, and available-for-sale securities by major security type consist of the following (in thousands): As of December 31, 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 $ 66,392 $ — $ — $ 66,392 U.S. Treasury securities 21,070 1 (139) 20,932 Corporate debt securities 139,481 16 (486) 139,011 Total 226,943 17 (625) 226,335 Less amounts classified as cash and cash equivalents (66,392) — — (66,392) Total available-for-sale securities $ 160,551 $ 17 $ (625) $ 159,943 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 December 31, 2017, the Company’s available‑for‑sale securities have original contractual maturities up to 67 months. In response to changes in the availability of and the yield on alternative investments as well as liquidity requirements, the Company may sell securities prior to their stated maturities. As these securities are viewed by the Company as available to support current operations, securities with maturities beyond 12 months are classified as current assets. Due to their short‑term maturities, the Company believes that the fair value of its bank deposits, accounts payable and accrued expenses approximate their carrying value. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value. The three levels are: · Level 1 — Quoted prices in active markets for identical assets or liabilities. · Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table represents the fair value hierarchy for our cash equivalents and available-for-sale securities by major security type (in thousands): As of December 31, 2017 Level 1 Level 2 Level 3 Total Cash and money market funds $ $ — $ — $ U.S. Treasury securities — — Corporate debt securities — — Total $ $ $ — $ 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 Corporate debt securities — — Total $ 109,460 $ $ — $ 269,519

Accounts Receivable

Accounts Receivable	12 Months Ended
	Dec. 31, 2017
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE	Note 3. Accounts Receivable Accounts receivable consist of the following (in thousands): Balance as of December 31, December 31, 2017 2016 Qsymia $ 10,400 $ 8,982 STENDRA/SPEDRA 1,982 12,382 Qsymia allowance for cash discounts (195) (213) Net $ 12,187 $ There was no allowance for doubtful accounts at December 31, 2017 or 2016.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2017
INVENTORIES
INVENTORIES	Note 4. Inventories Inventories consist of the following (in thousands): Balance as of December 31, December 31, 2017 2016 Raw materials $ 13,663 $ 9,412 Work-in-process 2,264 2,984 Finished goods 1,785 3,110 Deferred costs — 680 Inventories $ 17,712 $ 16,186 Raw materials inventories consist primarily of the active pharmaceutical ingredients, or API, for Qsymia and STENDRA/SPEDRA.

Prepaid Expenses And Other Curr

Prepaid Expenses And Other Current Assets	12 Months Ended
	Dec. 31, 2017
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER ASSETS	Note 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): Balance as of December 31, December 31, 2017 2016 Prepaid sales and marketing expenses $ 1,538 $ 1,767 Prepaid insurance 1,124 1,182 Other prepaid expenses and assets 4,516 5,302 Total $ 7,178 $ 8,251 The amounts included in prepaid expenses and other assets consist primarily of prepayments for future services, miscellaneous non-trade receivables, prepaid interest and interest income receivable. These costs have been deferred as prepaid expenses and other current assets on the consolidated balance sheets and will be either (i) charged to expense accordingly when the related prepaid services are rendered to the Company, or (ii) converted to cash when the receivable is collected by the Company.

Property And Equipment

Property And Equipment	12 Months Ended
	Dec. 31, 2017
Property and Equipment.
Property and Equipment	Note 6. Property and Equipment Property and equipment consist of the following (in thousands): Balance as of December 31, December 31, 2017 2016 Computers and software $ 1,965 $ Furniture and fixtures 185 Manufacturing equipment 213 Leasehold improvements 513 2,876 3,186 Accumulated depreciation Property and equipment, net $ 542 $ 788

Non-Current Assets

Non-Current Assets	12 Months Ended
	Dec. 31, 2017
NON-CURRENT ASSETS
NON-CURRENT ASSETS	Note 7. Non‑Current Assets Non-current assets primarily consist of patent acquisition and assignment costs (see Note 10).

Accrued And Other Liabilities

Accrued And Other Liabilities	12 Months Ended
	Dec. 31, 2017
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES	Note 8. Accrued and Other Liabilities Accrued and other liabilities consist of the following (in thousands): Balance as of December 31, December 31, 2017 2016 Accrued employee compensation and benefits $ 3,642 $ 3,014 Reserve for product returns 7,854 — Product-related accruals 5,751 Accrued interest on debt (see Note 13) 410 1,509 Accrued manufacturing costs 1,238 Accrued non-recurring charges (see Note 10) — 5 Other accrued liabilities 2,580 3,652 Total $ 21,475 $ 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	12 Months Ended
	Dec. 31, 2017
NON-CURRENT ACCRUED AND OTHER LIABILITIES
NON-CURRENT ACCRUED AND OTHER LIABILITIES	Note 9. Non‑Current Accrued and Other Liabilities Non‑current accrued and other liabilities were $0.3 million and $0.3 million at December 31, 2017 and 2016, respectively, and were primarily comprised of deferred rent and costs associated with the exit of certain operating leases and security deposits relating to the sublease agreements (see Note 10).

Non-Recurring Charges

Non-Recurring Charges	12 Months Ended
	Dec. 31, 2017
INVENTORY IMPAIRMENT AND OTHER NON-RECURRING CHARGES
INVENTORY IMPAIRMENT AND OTHER NON-RECURRING CHARGES	Note 10. Inventory Impairment and Other Non-Recurring Charges Inventory impairment and other non-recurring charges consist of the following (in thousands): Year Ended December 31, 2017 2016 2015 Inventory impairment (see Note 4) $ — $ — $ 29,522 Employee severance and related costs — — 2,503 Share-based compensation (see Note 15) — — 36 Total inventory impairment and other non-recurring expense $ — $ — $ 32,061 As discussed in Note 1, in 2015 the Company recorded inventory impairment charges primarily for Qsymia API inventory in excess of expected demand. In 2014, the Company recorded inventory impairment charges for finished goods and certain non-API raw materials on hand in excess of demand. In 2015, the Company recorded employee severance and related costs and share-based compensation related to the July 2015 corporate restructuring plan, which reduced the Company’s workforce by approximately 60 job positions. In 2014, the Company recorded employee severance and related costs and share-based compensation costs related to the 2013 cost reduction plan that reduced the Company’s workforce by approximately 20 employees. The following table sets forth activity for the cost reduction plans (in thousands): Severance obligations Balance of accrued costs at December 31, 2014 $ 3,280 Charges 2,474 Payments (5,344) Balance of accrued costs at December 31, 2015 410 Charges — Reclassifications (268) Payments (137) Balance of accrued costs at December 31, 2016 5 Charges — Reclassifications — Payments (5) Balance of accrued costs at December 31, 2017 $ —

Deferred Revenue

Deferred Revenue	12 Months Ended
	Dec. 31, 2017
DEFERRED REVENUE
DEFERRED REVENUE	Note 11. Deferred Revenue Deferred revenue consists of the following (in thousands): Balance as of December 31, December 31, 2017 2016 Qsymia deferred revenue - current $ — $ 17,558 STENDRA deferred revenue - current 2,075 1,616 Deferred revenue - current $ 2,075 $ 19,174 STENDRA deferred revenue - non-current $ 4,674 $ 6,449 Qsymia deferred revenue consists of product shipped to the Company’s wholesalers, certified retail pharmacies and certified home delivery pharmacy services networks, but not yet dispensed to patients through prescriptions, net of prompt payment discounts. Beginning in the first quarter of 2017, the Company began recognizing product revenue from the sales of Qsymia upon shipment. SPEDRA deferred revenue relates to a prepayment for future royalties on sales of SPEDRA.

License, Commercialization And

License, Commercialization And Supply Agreements	12 Months Ended
	Dec. 31, 2017
LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS
LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS	Note 12. License, Commercialization and Supply Agreements MTPC In January 2001, the Company entered into an exclusive development, license and clinical trial and commercial supply agreement with Tanabe Seiyaku Co., Ltd., now Mitsubishi Tanabe Pharma Corporation, or MTPC, for the development and commercialization of avanafil. Under the terms of the agreement, MTPC agreed to grant an exclusive license to the Company for products containing avanafil outside of Japan, North Korea, South Korea, China, Taiwan, Singapore, Indonesia, Malaysia, Thailand, Vietnam and the Philippines. The Company agreed to grant MTPC an exclusive, royalty free license within those countries for oral products that we develop containing avanafil. The MTPC agreement contains a number of milestone payments to be made by us based on various triggering events. The term of the MTPC agreement is based on a country by country and on a product by product basis. In August 2012, the Company entered into an amendment to the agreement with MTPC that permitted the Company to manufacture the active pharmaceutical ingredient, or API, and tablets for STENDRA by itself or through third parties. In 2015, the Company transferred the manufacturing of the API and tablets for STENDRA to Sanofi. The Company maintains royalty obligations to MTPC which have been passed through to our commercialization partners. Menarini In July 2013, the Company entered into a license and commercialization agreement, or the Menarini License Agreement, and a supply agreement, or the Menarini Supply Agreement, with the Menarini Group through its subsidiary Berlin Chemie AG, or Menarini. Under the terms of the Menarini License Agreement, Menarini received an exclusive license to commercialize and promote SPEDRA for the treatment of ED in over 40 countries, including the EU, plus Australia and New Zealand. Additionally, the Company transferred to Menarini ownership of the marketing authorization for SPEDRA in the EU for the treatment of ED, which was granted by the EC in June 2013. Under the Menarini License Agreement, the Company has and is entitled to receive potential milestone payments based on certain net sales targets, plus royalties on SPEDRA sales. Under the terms of the Menarini Supply Agreement, the Company will supply Menarini with STENDRA drug product until December 31, 2018. Menarini also has the right to manufacture STENDRA independently, provided that it continues to satisfy certain minimum purchase obligations to the Company. Following the expiration of the Menarini Supply Agreement, Menarini will be responsible for its own supply of STENDRA. Either party may terminate the Menarini Supply Agreement for the other party’s uncured material breach or bankruptcy, or upon the termination of the Menarini License Agreement. Auxilium In October 2013, the Company entered into a license and commercialization agreement, or the Auxilium License Agreement, and a commercial supply agreement, or the Auxilium Supply Agreement. Auxilium terminated the Auxilium Supply Agreement effective June 30, 2016 and the Auxilium License Agreement effective September 30, 2016. Sanofi In December 2013, the Company entered into a license and commercialization agreement, or the Sanofi License Agreement, with Sanofi. Under the terms of the Sanofi License Agreement, Sanofi received an exclusive license to commercialize and promote avanafil for therapeutic use in humans in Africa, the Middle East—Turkey and Commonwealth of Independent States, including Russia, or the Sanofi Territory. In July 2013, the Company entered into a Commercial Supply Agreement with Sanofi Chimie to manufacture and supply the API for avanafil on an exclusive basis in the United States and other territories and on a semi-exclusive basis in Europe, including the EU, Latin America and other territories. In November 2013, the Company entered into a Manufacturing and Supply Agreement with Sanofi Winthrop Industrie to manufacture and supply the avanafil tablets on an exclusive basis in the United States and other territories and on a semi exclusive basis in Europe, including the EU, Latin America and other territories. The Company has minimum annual purchase commitments under these agreements for at least the initial five-year terms. 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 Sanofi License Agreement 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. Metuchen 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. 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 MTPC. Metuchen will obtain STENDRA exclusively from the Company for a mutually agreed term pursuant to the Metuchen Supply Agreement. Metuchen may elect to transfer the control of the supply chain for STENDRA for the Metuchen Territory to itself or its designee by assigning to Metuchen the Company’s agreements with the contract manufacturer. For 2016 and each subsequent 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. Metuchen will also reimburse the Company for payments made to cover royalty and milestone obligations to MTPC during the term of the license agreement. For the year ended December 31, 2016, the Company recognized this amount as license revenue, less an estimate of its financial obligations under the Metuchen License Agreement. Alvogen 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

Long-Term Debt	12 Months Ended
	Dec. 31, 2017
LONG-TERM DEBT AND COMMITMENTS
LONG-TERM DEBT AND COMMITMENTS	Note 13. Long‑Term Debt Convertible Senior Notes Due 2020 In May 2013, the Company closed offerings of $250.0 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. Total net proceeds from the Convertible Notes were approximately $241.8 million. The Convertible Notes are convertible at a conversion rate of approximately $14.86 per share at the option of the holders under certain conditions at any time prior to the close of business on the business day immediately preceding November 1, 2019. On or after November 1, 2019, holders may convert all or any portion of their Convertible Notes at any time at their option at the conversion rate then in effect, regardless of these conditions. Subject to certain limitations, the Company will settle conversions of the Convertible Notes by paying or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of our common stock, at the Company’s election. Interest payments are made quarterly. For the year ended December 31, 2017, total interest expense related to the Convertible Notes was $32.6 million, including amortization of $19.3 million of the debt discount and $1,023,000 of deferred financing costs. For the year ended December 31, 2016, total interest expense related to the Convertible Notes was $29.8 million, including amortization of $17.5 million of the debt discount and $929,000 of deferred financing costs. For the year ended December 31, 2015, total interest expense related to the Convertible Notes was $27.2 million, including amortization of $16.0 million of the debt discount and $848,000 of deferred financing costs. Senior Secured Notes Due 2018 In March 2013, the Company entered into the Purchase and Sale Agreement between the Company and BioPharma Secured Investments III Holdings Cayman LP, a Cayman Islands exempted limited partnership, providing for the purchase of a debt‑like instrument, or the Senior Secured Notes. Under the agreement, the Company received $50 million, less $500,000 in funding and facility payments, at the initial closing in April 2013. The scheduled quarterly payments on the Senior Secured Notes are subject to the net sales of (i) Qsymia and (ii) any other obesity agent developed or marketed by us or our affiliates or licensees. The scheduled quarterly payments, other than the payment(s) scheduled to be made in the second quarter of 2018, are capped at the lower of the scheduled payment amounts or 25% of the net sales of (i) and (ii) above. Accordingly, if 25% of the net sales is less than the scheduled quarterly payment, then 25% of the net sales is due for that quarter, with the exception of the payment(s) scheduled to be made in the second quarter of 2018, when any unpaid scheduled quarterly payments plus any accrued and unpaid make whole premiums must be paid. Any quarterly payment less than the scheduled quarterly payment amount will be subject to a make whole premium equal to the applicable scheduled quarterly payment of the preceding quarter less the actual payment made to BioPharma for the preceding quarter multiplied by 1.03. The Company may elect to pay full scheduled quarterly payments if it chooses. For the year ended December 31, 2017, the interest expense related to the Senior Secured Notes was $3.2 million, including amortization of deferred financing costs amounting to $153,000. For the year ended December 31, 2016, the interest expense related to the Senior Secured Notes was $4.6 million, including amortization of deferred financing costs amounting to $235,000. For the year ended December 31, 2015, the interest expense related to the Senior Secured Notes was $6.3 million, including amortization of deferred financing costs amounting to $393,000. The following table summarizes information on the debt (in thousands): December 31, 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 as of December 31, 2017 are as follows: 2018 $ 2019 2020 256,250 Total 285,450 Less: Interest portion Senior Secured Notes $ 256,187

Stockholders Equity

Stockholders Equity	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity
Stockholders' Equity	Note 14. Stockholders’ Equity Common Stock The Company is authorized to issue 200,000,000 shares of common stock. As of December 31, 2017 and 2016, there were 105,977,000 and 104,874,000 shares, respectively, issued and outstanding. Preferred Stock The Company is authorized to issue 5,000,000 shares of undesignated preferred stock with a par value of $1.00 per share. As of December 31, 2017 and 2016, there were no preferred shares issued or outstanding. The Company may issue shares of preferred stock in the future, without stockholder approval, upon such terms as the Company’s management and Board of Directors may determine. Stockholder Rights Plan On March 26, 2007, the Board of Directors of the Company adopted a Stockholder Rights Plan, or the Rights Plan, and amended its bylaws. Under the Rights Plan, the Company will issue a dividend of one right for each share of its common stock held by stockholders of record as of the close of business on April 13, 2007. The Rights Plan is designed to guard against partial tender offers and other coercive tactics to gain control of the Company without offering a fair and adequate price and terms to all of the Company’s stockholders. The Rights Plan is intended to provide the Board of Directors with sufficient time to consider any and all alternatives to such an action and is similar to plans adopted by many other publicly traded companies. The Rights Plan was not adopted in response to any efforts to acquire the Company and the Company is not aware of any such efforts. Each right will initially entitle stockholders to purchase a fractional share of the Company’s preferred stock for $26.00. However, the rights are not immediately exercisable and will become exercisable only upon the occurrence of certain events. If a person or group acquires, or announces a tender or exchange offer that would result in the acquisition of 15% or more of the Company’s common stock while the Stockholder Rights Plan remains in place, then, unless the rights are redeemed by the Company for $.001 per right, the rights will become exercisable by all rights holders except the acquiring person or group for the Company’s shares or shares of the third‑party acquirer having a value of twice the right’s then‑current exercise price. The rights will expire on the earliest of (i) April 13, 2017 (the final expiration date), or (ii) redemption or exchange of the rights. On November 9, 2016, the Company adopted an Amended and Restated Preferred Stock Rights Agreement, or the A&R Rights Agreement, which amended and extended the Rights Plan. The A&R Rights Agreement was approved to mitigate the likelihood of an “ownership change” within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended, or the Code, and thereby preserve the current ability of the Company to utilize certain net operating loss carryovers and other tax benefits of the Company and its subsidiaries to offset future income. The A&R Rights Agreement is intended to act as a deterrent to any person or group acquiring beneficial ownership of 4.9% or more of the outstanding common stock of the Company without the approval of the Board. The A&R Rights Agreement extends the expiration date of the rights from April 13, 2017 to November 9, 2019 (subject to earlier expiration under the circumstances described below). It also lowers the threshold at which a person or group becomes an “Acquiring Person” to 4.9% of the outstanding Common Stock, subject to certain exceptions (including that any person or group who, as of the time of the first public announcement of the approval of the A&R Rights Agreement, beneficially owns 4.9% or more of the then-outstanding shares of Common Stock, will not be deemed to be an “Acquiring Person” so long as such person or group does not thereafter acquire an additional 1% of the outstanding shares of Common Stock, subject to certain exceptions); and amends certain other provisions, including the definitions of “Beneficial Ownership” and “Exempt Person”, to include terms appropriate for the purpose of preserving the tax benefits. Each right would initially entitle the holder to purchase one one-thousandth of a share of the Company’s Series A Participating Preferred Stock, par value $0.001 per share, or the Preferred Stock, for a purchase price of $5.30 (subject to adjustment). Under certain circumstances set forth in the A&R Rights Agreement, the Company may suspend the exercisability of the rights. The rights and the A&R Rights Agreement will expire on the earliest of (i) November 9, 2019, (ii) the time at which the rights are redeemed or exchanged pursuant to the A&R Rights Agreement, (iii) the repeal of Section 382 of the Code or any successor statute if the Board determines that the A&R Rights Agreement is no longer necessary or desirable for the preservation of the tax benefits, (iv) the first business day following the date on which the A&R Rights Agreement fails to be ratified by the Company’s stockholders at the Company’s 2017 annual meeting and (v) the beginning of a taxable year to which the Board determines that no tax benefits may be carried forward.

Stock Option and Purchase Plans

Stock Option and Purchase Plans	12 Months Ended
	Dec. 31, 2017
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	Note 15. Stock Option and Purchase Plans Stock Option Plan On March 29, 2010, the Company’s Board of Directors terminated the 2001 Stock Option Plan and adopted and approved a new 2010 Equity Incentive Plan, or the 2010 Plan, which was approved by the Company’s stockholders at the 2010 Annual Meeting of Shareholders. The 2001 Plan continues to govern awards previously granted under it. The 2010 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and performance units to employees, directors and consultants, to be granted from time to time as determined by the Board of Directors, the Compensation Committee of the Board of Directors, or its designees. The term of the option is determined by the Board of Directors on the date of grant but shall not be longer than 10 years. Options under this plan generally vest over four years. The 2010 Plan’s original share reserve was 8,400,000 shares, plus any shares reserved but not issued pursuant to awards under the 2001 Plan as of the date of stockholder approval, or 99,975 shares, plus any shares subject to outstanding awards under the 2001 Plan that expire or otherwise terminate without having been exercised in full, or are forfeited to or repurchased by the Company, up to a maximum of 8,111,273 shares (which was the number of shares subject to outstanding options under the 2001 Plan as of March 11, 2010). In September 2014, November 2016 and October 2017, the Company’s stockholders approved increases to the total number of shares reserved under the 2010 Plan by 5,950,000, 5,000,000 and 7,000,000 shares, respectively, for a total of 26,350,000 shares. Restricted Stock Units Beginning in 2012, the Company began issuing restricted stock units under the 2010 Plan on a limited basis. A summary of restricted stock unit award activity under the 2010 Plan is as follows: Weighted Number of Average Restricted Grant Date Stock Units Fair Value Restricted stock units outstanding January 1, 2015 333,500 $ 8.17 Granted 1,954,000 1.85 Vested (248,688) 2.73 Forfeited (628,937) 7.99 Restricted stock units outstanding, December 31, 2015 1,409,875 Granted 562,500 Vested (1,359,829) Forfeited (70,789) Restricted stock units outstanding December 31, 2016 541,757 1.91 Granted 450,000 1.17 Vested 1.48 Forfeited 1.50 Restricted stock units outstanding, December 31, 2017 291,540 $ 1.78 Stock Options A summary of stock option award activity under these plans is as follows: Years Ended December 31, 2017 2016 2015 Weighted- Weighted- Weighted- Average Average Average Number of Exercise Number of Exercise Number of Exercise Shares Price Shares Price Shares Price Options outstanding at beginning of year 9,568,143 $ 4.62 $ 7.97 $ 12.09 Granted 5,184,800 $ 1.06 $ 1.06 $ 2.46 Exercised — $ — — $ — — $ — Cancelled (506,201) $ 2.17 $ 5.89 $ 9.38 Options outstanding at end of year 14,246,742 $ 3.41 $ 4.62 $ 7.97 Options exercisable at end of year 6,479,390 $ 6.10 $ 9.62 $ 11.48 Weighted average grant-date fair value of options granted during the year $ 0.50 $ 0.55 $ 1.44 At December 31, 2017, stock options were outstanding and exercisable as follows: Options Outstanding Options Exercisable Weighted- Number Average Weighted- Number Weighted- Outstanding at Remaining Average Exercisable Average December 31, Contractual Exercise December 31, Exercise Range of Exercise Prices 2017 Life Price 2017 Price $ 0.70 — $ 1.00 763,000 years $ 125,000 $ $ 1.06 — $ 1.06 4,495,050 years $ 2,171,851 $ $ 1.12 — $ 1.12 4,117,100 years $ — $ — $ 1.15 — $ 25.74 4,871,592 years $ 4,182,539 $ $ 1.06 — $ 25.74 14,246,742 years $ 6,479,390 $ The aggregate intrinsic value of outstanding options as of December 31, 2017 was $0. At December 31, 2017, 11,043,868 options remained available for grant. Valuation Assumptions The fair value of each option is estimated on the date of grant using the Black‑Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions: 2017 2016 2015 Expected life (in years) 4.69 Volatility % % % Risk-free interest rate % % 1.28 % Dividend yield — — — Employee Stock Purchase Plan Under the 1994 Employee Stock Purchase Plan, or the ESPP, the Company reserved 800,000 shares of common stock for issuance to employees pursuant to the ESPP. The reserved amount was increased to 1,400,000 in 2003 and 2,000,000 in 2011. Under the ESPP, eligible employees may authorize payroll deductions of up to 10% of their base compensation (as defined) to purchase common stock at a price equal to 85% of the lower of the fair market value as of the beginning or the end of each six-month offering period. As of December 31, 2017, 1,783,614 shares have been issued to employees and there are 216,386 shares available for issuance under the ESPP. The weighted average fair value of shares issued under the ESPP in 2017, 2016 and 2015 was $0.23, $0.33 and $0.69 per share, respectively. Valuation Assumptions The fair value of shares issued under the ESPP is estimated using the Black‑Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions: 2017 2016 2015 Expected life (in years) Volatility % % % Risk-free interest rate % % % Dividend yield — — — Share‑Based Compensation Expense Total estimated share‑based compensation expense, related to all of the Company’s share‑based awards, was comprised as follows (in thousands): 2017 2016 2015 Cost of goods sold $ $ $ Selling, general and administrative Research and development Non-recurring charges — — Total share-based compensation expense $ $ $ Total share‑based compensation cost capitalized as part of the cost of inventory was $9,000, $33,000 and $23,000 for the years ended December 31, 2017, 2016 and 2015, respectively. The following table summarizes share‑based compensation, net of estimated forfeitures associated with each type of award (in thousands): 2017 2016 2015 Restricted stock units $ $ $ Stock options Employee stock purchase plan $ 2,942 $ 2,284 $ 3,590 As of December 31, 2017, unrecognized estimated compensation expense totaled $ 3.9 million related to non‑vested stock options and restricted stock units and $8,000 related to the ESPP. The weighted average remaining requisite service period for the non‑vested stock options was 2.4 years and for the ESPP was less than 6 months.

Commitments

Commitments	12 Months Ended
	Dec. 31, 2017
Commitments
Commitments	Note 16. Commitments Lease Commitments In August 2016, the Company entered into a lease for new principal executive offices, consisting of approximately 13,981 square feet of office space at 900 E. Hamilton Avenue, Campbell, California, or the Campbell Lease. The Campbell Lease has an initial term of approximately 58 months, commencing on December 27, 2016, with a beginning annual rental rate of $3.10 per rentable square foot, subject to agreed-upon increases. The Company received an abatement of the monthly rent for the first four months on the lease term. The Company has one option to extend the lease term for two years at the fair market rental rate then prevailing as detailed in the Campbell Lease. Future minimum lease payments under operating lease at December 31, 2017, were as follows (in thousands): 2018 $ 2019 2020 2021 $ Cardiovascular Outcomes Trial 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 determine a pathway to provide FDA with information to support the safety of Qsymia in a more cost-effective manner. To date, the Company has not incurred expenses related to the CVOT. .

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
INCOME TAXES
INCOME TAXES	Note 17. Income Taxes Deferred income taxes result from differences in the recognition of expenses for tax and financial reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of the Company’s deferred income tax assets as of December 31, 2017 and 2016, are as follows (in thousands): 2017 2016 Deferred tax assets: Net operating loss carry forwards $ 152,947 $ 220,053 Research and development credit carry forwards 17,426 16,550 Share-based compensation 5,248 7,579 Accruals and other 13,741 21,833 Depreciation (36) 75 Deferred revenue 1,486 3,123 190,812 269,213 Valuation allowance (190,812) (269,213) Total $ — $ — The net decrease in the valuation allowance in 2017 and 2016 was $78.4 million and $15.2 million, respectively. As of December 31, 2017, the Company had no significant deferred tax liabilities. On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. Among other changes is a permanent reduction in the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of the reduction in the corporate income tax rate, the Company will need to revalue its net deferred tax asset at December 31, 2017. We estimate that this will result in a reduction in the value of our net deferred tax asset of approximately $98.4 million, which will be offset by the change in valuation allowance of $98.4 million. As of December 31, 2017, the Company had approximately $640.4 million and $276.2 million of net operating loss, or NOL, carryforwards with which to offset its future taxable income for federal and state income tax reporting purposes, respectively. The federal and state NOL carryforwards will begin expiring in 2022 and 2028, respectively, unless previously utilized. As of December 31, 2017, the Company has federal and state research credit carryforwards of approximately $13.2 million, and $5.3 million, respectively. The federal research credit carryforwards will begin expiring in 2018, unless previously utilized. The state research credit carryforwards do not expire. Utilization of the Company’s NOL and tax credit carryforwards, or Tax Attributes, may be subject to substantial annual limitations provided by the Code and similar state provisions to the extent certain ownership changes are deemed to occur. Such an annual limitation could result in the expiration of the Tax Attributes before utilization. The Tax Attributes reflected above have not been reduced by any limitations. To the extent it is determined upon completion of the analysis that such limitations do apply, the Company will adjust the Tax Attributes accordingly. The Company faces the risk that its ability to use its Tax Attributes will be substantially restricted if it undergoes an “ownership change” as defined in Section 382 of the Code, or Section 382. An ownership change under Section 382 would occur if “5-percent shareholders,” within the meaning of Section 382, collectively increased their ownership in the Company by more than 50 percentage points over a rolling three-year period. The Company has completed studies through December 31, 2016 and concluded that no adjustments were required. If there is a future change of control, the Company’s NOL carryforwards and tax credits may not be available, or their utilization could be subject to an annual limitation under Section 382. A full valuation allowance has been provided against the Company’s NOL carryforwards, and if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Accordingly, there would be no impact on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . This guidance affects entities that issue share-based payment awards to their employees and is designed to simplify several aspects of accounting for share-based payment award transactions which include the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. The Company adopted this standard in the first quarter of 2017. Under ASU 2016-09, excess tax benefits and deficiencies are required to be recognized prospectively as part of provision for income taxes rather than additional paid-in capital. The Company's cumulative effect of windfall tax attributes are approximately $17.4 million. After applying the valuation allowance, no adjustment was recorded to the beginning retained earnings balance. The provision (benefit) for income taxes is based upon the loss from continuing operations before income taxes as follows (in thousands): 2017 2016 2015 Income (loss) before income taxes: Domestic $ (30,371) $ 23,592 $ (92,967) International (138) (220) (137) Income (loss) before taxes $ (30,509) $ 23,372 $ (93,104) The provision (benefit) for income taxes consists of the following (in thousands): 2017 2016 2015 Current: Federal $ — $ — $ — State 2 70 3 Foreign — — — Total current provision (benefit) for income taxes $ 2 $ 70 $ 3 Deferred: Federal $ — $ — $ — State — — — Foreign — — — Total deferred provision for income taxes $ — $ — $ — Total provision (benefit) for income taxes from continuing operations $ 2 $ 70 $ 3 The effective tax rate differs from the amount computed by applying the statutory federal income tax rates as follows: 2017 2016 2015 Tax at U.S. federal statutory rate (35) % 35 % (35) % State income taxes, net of federal tax effect (1) 4 (2) Change in valuation allowance (310) (67) 31 Permanent items 24 28 6 Tax credits (1) — — Tax Cuts and Jobs Act impact 323 — — Effective tax rate — % — % — % The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2017 2016 2015 Unrecognized tax benefits as of January 1 $ 65 $ 38 $ — Gross increase/(decrease) for tax positions of prior years — 2 — Gross increase/(decrease) for tax positions of current year 45 25 38 Unrecognized tax benefits balance at December 31 $ 110 $ 65 $ 38 The remaining balance of unrecognized tax benefits recorded on the Company’s consolidated balance sheets is as follows (in thousands): 2017 2016 Total unrecognized tax benefits $ 110 $ 65 Amounts netted against deferred tax assets (110) (65) Unrecognized tax benefits recorded on consolidated balance sheets $ — $ — As the Company is not currently under examination, it is reasonable to assume that the balance of gross unrecognized tax benefits will likely not change in the next twelve months. The Company currently has not recorded interest and penalties relating to uncertain tax positions.

Segment Information and Concent

Segment Information and Concentration of Customers and Suppliers	12 Months Ended
	Dec. 31, 2017
SEGMENT INFORMATION
SEGMENT INFORMATION	Note 18. Segment Information and Concentration of Customers and Suppliers The Company operates in one business segment — the development and commercialization of novel therapeutic products. Therefore, results of operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. Disclosures about product revenues by geographic area, revenues and accounts receivable from major customers, and major suppliers are presented below. Geographic Information Outside the United States, the Company sells products principally in the EU. The geographic classification of product sales was based on the location of the customer. The geographic classification of all other revenues was based on the domicile of the entity from which the revenues were earned. Product revenue by geographic region is as follows (in thousands): Years Ended December 31, 2017 2016 U.S. ROW Total U.S. ROW Total Qsymia—Net product revenue $ $ — $ 44,983 $ $ — $ 48,501 Qsymia—License revenue 5,000 2,500 7,500 — — — STENDRA/SPEDRA—License revenue — — — 69,400 — 69,400 STENDRA/SPEDRA—Supply revenue 10,407 2,291 STENDRA/SPEDRA —Royalty revenue — 2,483 4,066 Total revenue $ 55,892 $ 9,481 (1) $ 65,373 $ 120,315 $ 3,943 (2) $ 124,258 2015 U.S. ROW Total Qsymia—Net product revenue $ $ — $ 54,622 STENDRA/SPEDRA—License and milestone revenue — 11,574 STENDRA/SPEDRA—Supply revenue 26,674 STENDRA/SPEDRA —Royalty revenue 2,560 Total revenue $ 71,642 $ 23,788 (3) $ 95,430 (1) $7.0 million of which is attributable to Germany. (2) $3.9 million of which is attributable to Germany. (3) $23.7 million of which is attributable to Germany. Major customers Revenues from significant customers as a percentage of Qsymia product revenues is as follows: 2017 2016 2015 McKesson 37 % 34 % 37 % Amerisource Bergen 32 % 35 % 31 % Cardinal Health, Inc. 29 % 29 % 30 % Accounts receivable by significant customer as a percentage of the total gross accounts receivable balance are as follows: 2017 2016 Amerisource Bergen 42 % 40 % McKesson 28 % 30 % Cardinal Health, Inc. 28 % 21 % Major suppliers The Company does not have any manufacturing facilities and intends to continue to rely on third parties for the supply of the starting materials, API and tablets. Catalent Pharma Solutions, LLC, or Catalent, is the Company’s sole source of clinical and commercial supplies for Qsymia. Sanofi Chimie manufactures and supplies the API for our drug avanafil on an exclusive basis in the United States and other territories and on a semi-exclusive basis in Europe, including the EU, Latin America and other territories. Sanofi Winthrop Industrie manufactures and supplies the avanafil tablets on an exclusive basis in the United States and other territories and on a semi-exclusive basis in Europe, including the EU, Latin America and other territories. Third‑party manufacturers may not be able to meet the Company’s needs with respect to timing, quantity or quality. During the years ended December 31, 2017, 2016 and 2015, the Company incurred expenses for work performed by a third‑party clinical research organization, or CRO, for Qsymia and STENDRA post‑approval studies that accounted for 0%, 27% and 11%, respectively, of total research and development expenses.

401(k) Plan

401(k) Plan	12 Months Ended
	Dec. 31, 2017
401(k) Plan
401(k) Plan	Note 19. 401(k) Plan All of the Company’s full‑time employees are eligible to participate in the VIVUS 401(k) Plan. Employer‑matching contributions for the years ended December 31, 2017, 2016 and 2015 were $272,000, $272,000 and $406,000, respectively.

Legal Matters

Legal Matters	12 Months Ended
	Dec. 31, 2017
LEGAL MATTERS
LEGAL MATTERS	Note 20. 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. The Ninth Circuit issued a decision on January 16, 2018, affirming the district court’s dismissal of the action. The deadline for Plaintiffs to seek rehearing in the Ninth Circuit has now expired, and unless Plaintiffs elect to file a petition for certiorari in the Supreme Court, the matter is concluded. 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. 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 .

Selected Financial Data (Unaudi

Selected Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2017
Selected Financial Data (Unaudited)
Selected Financial Data (Unaudited)	Note 21. Selected Financial Data (Unaudited) Selected Quarterly Financial Data (in thousands except per share data): Quarter Ended, March 31 June 30 September 30 December 31 2017 Total revenue $ 27,012 $ 11,227 $ 15,193 $ 11,941 Total gross profit 20,845 7,657 11,679 8,005 Operating expenses 19,778 16,214 12,767 13,821 Net (loss) income Basic and diluted net (loss) income per share $ $ $ $ 2016 Total revenue $ $ $ $ Total gross profit Operating expenses Net (loss) income Basic net (loss) income per share Diluted net (loss) income per share $ $ $ $

Subsequent Events

Subsequent Events	Mar. 09, 2018
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	Note 22. Subsequent Events On February 26, 2018, the Company and Allan L. Shaw entered into a Consulting Agreement, or the Consulting Agreement, effective February 1, 2018. The Consulting Agreement provides that the Company will recommend at the next meeting of the Compensation Committee of the Board of Directors that Mr. Shaw be granted a stock option to purchase 300,000 shares of the Company’s common stock at a price per share equal to the fair market value as determined by the closing price of the Company’s common stock on the date of grant. On March 9, 2018, the Compensation Committee of the Board of Directors of the Company authorized and approved the grant to Mr. Shaw of a stock option to purchase 300,000 shares of the Company’s common stock at a price per share equal to the closing price of the Company’s common stock on the date of grant ($0.49 per share). The shares will vest in accordance with a vesting schedule subject to Mr. Shaw continuing to provide services under the Consulting Agreement on the relevant vesting dates.

Schedule II-Valuation And Quali

Schedule II-Valuation And Qualifying Accounts	12 Months Ended
	Dec. 31, 2017
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	VIVUS, Inc. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (in thousands) Each of the following valuation and qualifying accounts are reported as assets and liabilities of continuing and discontinued operations in the consolidated balance sheets for all periods presented. Balance at Charged Balance at Beginning of to Charges End of Period Operations* Utilized Period Allowance for Cash Discounts Fiscal year ended December 31, 2015 $ 150 $ 1,933 $ (1,919) $ 164 Fiscal year ended December 31, 2016 $ 164 $ 1,679 $ (1,630) $ 213 Fiscal year ended December 31, 2017 $ 213 $ 1,344 $ (1,362) $ 195 *

Basis Of Presentation (Policies

Basis Of Presentation (Policies)	12 Months Ended
	Dec. 31, 2017
BASIS OF PRESENTATION
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of VIVUS, Inc., and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The Company’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles as set forth in the FASB’s Accounting Standards Codification, with consideration given to the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission. These accounting principles require management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including critical accounting policies or estimates related to available‑for‑sale securities, debt instruments, contingencies, litigation, inventories, research and development expenses, income taxes, and share‑based compensation. The Company bases its estimates on historical experience, information received from third parties and on various market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ significantly from those estimates under different assumptions or conditions.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers highly liquid investments with maturities from the date of purchase of three months or less to be cash equivalents. At December 31, 2017 and 2016, all cash equivalents were invested in money market funds or U.S. Treasury securities. These investments are recorded at fair value (see Note 2).
Available-for-Sale Securities	Available‑for‑Sale Securities The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. Marketable securities have been classified and accounted for as available‑for‑sale. The Company may or may not hold securities with stated maturities greater than 12 months until maturity. In response to changes in the availability of and the yield on alternative investments as well as liquidity requirements, the Company may sell these securities prior to their stated maturities. As these securities are viewed by the Company as available to support current operations, securities with maturities beyond 12 months are classified as current assets. Securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of stockholders’ equity (deficit), unless the decline in value is deemed to be other than temporary, in which case such securities are written down to fair value and the loss is charged to other‑than‑temporary loss on impaired securities. The Company periodically evaluates its investment securities for other‑than‑temporary declines based on quantitative and qualitative factors. Any losses that are deemed other-than-temporary are recognized as a non-operating loss. To date, the Company has not had any other-than-temporary declines in the value of any of the securities in its investment portfolio. Realized gains or losses on the sale of marketable securities are determined on a specific identification method, and such gains and losses are reflected as a component of interest expense.
Fair Value Measurements	Fair Value Measurements The Company’s financial instruments include cash equivalents, available‑for‑sale securities, accounts receivable, accounts payable, accrued liabilities and debt. Available‑for‑sale securities are carried at fair value. The carrying value of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the relatively short‑term nature of these instruments. Debt instruments are initially recorded at face value, with stated interest and amortization of debt issuance discounts and costs recognized as interest expense, which currently approximates fair value. Issuance costs related to the conversion option of the Company’s convertible notes were charged to additional paid‑in capital. The portion of the issuance costs related to the debt component is being amortized and recorded as additional interest expense over the expected life of the convertible notes. In connection with the issuance of the convertible notes, the Company entered into capped call transactions with certain counterparties affiliated with the underwriters.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, available‑for‑sale‑securities, and accounts receivable. The Company has established guidelines to limit its exposure to credit risk by placing investments in high credit quality money market funds, U.S. Treasury securities or corporate debt securities and by placing investments with maturities that maintain safety and liquidity within the Company’s liquidity needs. The Company has also established guidelines for the issuance of credit to existing and potential customers.
Accounts Receivable, Allowances for Doubtful Accounts and Cash Discounts	Accounts Receivable, Allowances for Doubtful Accounts and Cash Discounts The Company extends credit to its customers for product sales resulting in accounts receivable. Customer accounts are monitored for past due amounts. Amounts that are determined to be uncollectible are written off against the allowance for doubtful accounts. Allowances for doubtful accounts are estimated based upon past due amounts, historical losses and existing economic factors, and are adjusted periodically. Historically, the Company has not had any significant uncollected accounts. The Company offers cash discounts to its customers, generally 2% of the sales price, as an incentive for prompt payment. The estimate of cash discounts is recorded at the time of sale. The Company accounts for the cash discounts by reducing revenue and accounts receivable by the amount of the discounts it expects the customers to take. The accounts receivable are reported in the consolidated balance sheets, net of the allowances for doubtful accounts and cash discounts. There is no allowance for doubtful accounts at December 31, 2017 or 2016. The allowance for cash discounts is $195,000 and $213,000 at December 31, 2017 and 2016, respectively.
Inventories	Inventories Inventories are valued at the lower of cost or market. Cost is determined using the first‑in, first‑out method using a weighted average cost method calculated for each production batch. Inventory includes the cost of the active pharmaceutical ingredients, or API, raw materials and third‑party contract manufacturing and packaging services. Indirect overhead costs associated with production and distribution are allocated to the appropriate cost pool and then absorbed into inventory based on the units produced or distributed, assuming normal capacity, in the applicable period. Inventory costs of product shipped to customers, but not yet recognized as revenue, are recorded within inventories on the consolidated balance sheets and are subsequently recognized to cost of goods sold when revenue recognition criteria have been met. The Company’s policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected requirements. The estimate of excess quantities is subjective and primarily dependent on the Company’s estimates of future demand for a particular product. If the estimate of future demand is inaccurate based on lower actual sales, the Company may increase the write down for excess inventory for that product and record a charge to inventory impairment. The Company periodically evaluates the carrying value of inventory on hand for potential excess amount over demand. As a result of this evaluation, for the year ended December 31, 2015, the Company recognized an impairment charge of $29.5 million for Qsymia API inventory in excess of projected demand.
Property and Equipment	Property and Equipment Property and equipment is stated at cost and includes computers and software, furniture and fixtures, leasehold improvements and manufacturing equipment. Depreciation is computed using the straight‑line method over the estimated useful lives of two to seven years for computers and software, furniture and fixtures and manufacturing equipment. Leasehold improvements are amortized using the straight‑line method over the shorter of the remaining lease term or the estimated useful lives. Expenditures for repairs and maintenance, which do not extend the useful life of the property and equipment, are expensed as incurred. Gains and losses associated with dispositions are reflected as a non-operating gain or loss in the accompanying consolidated statements of operations. Long‑lived assets, including property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to an estimate of undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. To date, the Company has had no significant write-offs of long-lived assets.
Deferred Issuance Costs	Debt Issuance Costs Debt issuance costs, which are presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, are amortized as interest expense using the effective-interest method over the expected term of the debt.
Revenue Recognition	Revenue Recognition Product Revenue: The Company recognizes product revenue when: (i) persuasive evidence that an arrangement exists, (ii) delivery has occurred and title has passed, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. Revenue from sales transactions where the customer has the right to return the product is recognized at the time of sale only if: (i) the Company’s price to the customer is substantially fixed or determinable at the date of sale, (ii) the customer has paid the Company, or the customer is obligated to pay the Company and the obligation is not contingent on resale of the product, (iii) the customer’s obligation to the Company would not be changed in the event of theft or physical destruction or damage of the product, (iv) the customer acquiring the product for resale has economic substance apart from that provided by the Company, (v) the Company does not have significant obligations for future performance to directly bring about resale of the product by the customer, and (vi) the amount of future returns can be reasonably estimated.
Product Revenue Allowances	Product Revenue Allowances: Product revenue is recognized net of consideration paid to the Company’s customers, wholesalers and certified pharmacies. 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, in the first quarter of 2017 the Company recognized a one-time adjustment relating to products that had been previously shipped, consisting of $17.9 million of gross revenues, adjusted for an expected returns reserve of $5.7 million and estimated gross-to-net charges of $4.9 million, for a net impact of $7.3 million in revenues. The Company also recorded increased cost of goods sold of $0.6 million and marketing expense of $0.7 million associated with the change in accounting estimate. The increase in net product revenue resulted in a decrease in net loss of $6.0 million or $0.06 per share for 2017. Supply Revenue: The Company recognizes supply revenue from the sales of STENDRA or SPEDRA when the four basic revenue recognition criteria described above are met. The Company produces STENDRA or SPEDRA through a contract manufacturing partner and then sells it to its commercialization partners. The Company is the primary responsible party in the commercial supply arrangements and bears significant risk in the fulfillment of the obligations, including risks associated with manufacturing, regulatory compliance and quality assurance, as well as inventory, financial and credit loss. As such, the Company recognizes supply revenue on a gross basis as the principal party in the arrangements. Under the Company’s product supply agreements, as long as the product meets specified product dating criteria at the time of shipment to the partner, the Company’s commercialization partners do not have a right of return or credit for expired product. As such, the Company recognizes revenue for products that meet the dating criteria at the time of shipment.
Revenue from Multiple-Element Arrangements	Revenue from Multiple‑Element Arrangements: The Company accounts for multiple‑element arrangements, such as license and commercialization agreements in which a customer may purchase several deliverables, in accordance with ASC Topic 605‑25, Revenue Recognition —Multiple‑Element Arrangements , or ASC 605‑25. The Company evaluates if the deliverables in the arrangement represent separate units of accounting. In determining the units of accounting, management evaluates certain criteria, including whether the deliverables have value to its customers on a stand‑alone basis. Factors considered in this determination include whether the deliverable is proprietary to the Company, whether the customer can use the license or other deliverables for their intended purpose without the receipt of the remaining elements, whether the value of the deliverable is dependent on the undelivered items, and whether there are other vendors that can provide the undelivered items. Deliverables that meet these criteria are considered a separate unit of accounting. Deliverables that do not meet these criteria are combined and accounted for as a single unit of accounting. When deliverables are separable, the Company allocates non‑contingent consideration to each separate unit of accounting based upon the relative selling price of each element. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor‑specific objective evidence, or VSOE, of selling price, if it exists, or third‑party evidence, or TPE, of selling price, if it exists. If neither VSOE nor TPE of selling price exists for a deliverable, the Company uses best estimated selling price, or BESP, for that deliverable. Significant management judgment may be required to determine the relative selling price of each element. Revenue allocated to each element is then recognized based on when the following four basic revenue recognition criteria are met for each element: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the price is fixed or determinable; and (iv) collectability is reasonably assured. Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue the Company reports. Changes in assumptions or judgments, or changes to the elements in an arrangement, could cause a material increase or decrease in the amount of revenue reported in a particular period. ASC Topic 605‑28, Revenue Recognition — Milestone Method or (ASC 605‑28), established the milestone method as an acceptable method of revenue recognition for certain contingent, event‑based payments under research and development arrangements. Under the milestone method, a payment that is contingent upon the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved. A milestone is an event: (i) that can be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved, and (iii) that would result in additional payments being due to the Company. The determination that a milestone is substantive requires judgment and is made at the inception of the arrangement. Milestones are considered substantive when the consideration earned from the achievement of the milestone is: (i) commensurate with either the Company’s performance to achieve the milestone or the enhancement of value of the item delivered as a result of a specific outcome resulting from the Company’s performance to achieve the milestone, (ii) relates solely to past performance, and (iii) is reasonable relative to all deliverables and payment terms in the arrangement. Other contingent, event‑based payments received for which payment is either contingent solely upon the passage of time or the results of a collaborative partner’s performance are not considered milestones under ASC 605‑28. In accordance with ASC 605, such payments will be recognized as revenue when all of the four basic revenue recognition criteria are met. Revenues recognized for royalty payments are recognized when the four basic revenue recognition criteria described above are met.
Cost of Goods Sold	Cost of Goods Sold Cost of goods sold for units shipped to customers includes the inventory costs of API, third‑party contract manufacturing costs, packaging and distribution costs, royalties, cargo insurance, freight, shipping, handling and storage costs, and overhead costs of the employees involved with production. Specifically, cost of goods sold for Qsymia dispensed to patients includes the inventory costs of the API, third‑party contract manufacturing and packaging and distribution costs, royalties, cargo insurance, freight, shipping, handling and storage costs, and overhead costs of the employees involved with production; cost of goods sold for STENDRA shipped to partners includes the inventory costs of purchased tablets, freight, shipping and handling costs. The cost of goods sold associated with deferred revenue on Qsymia and STENDRA product shipments is recorded as deferred costs, which are included in inventories in the consolidated balance sheets, until such time as the deferred revenue is recognized.
Research and Development Expenses	Research and Development Expenses Research and development, or R&D, expenses include license fees, related compensation, consultants’ fees, facilities costs, administrative expenses related to R&D activities and clinical trial costs incurred by clinical research organizations or CROs, and research institutions under agreements that are generally cancelable, among other related R&D costs. The Company also records accruals for estimated ongoing clinical trial costs. Clinical trial costs represent costs incurred by CRO and clinical sites and include advertising for clinical trials and patient recruitment costs. These costs are recorded as a component of R&D expenses and are expensed as incurred. Under the Company’s agreements, progress payments are typically made to investigators, clinical sites and CROs. The Company analyzes the progress of the clinical trials, including levels of patient enrollment, invoices received and contracted costs when evaluating the adequacy of accrued liabilities. Significant judgments and estimates must be made and used in determining the accrued balance in any accounting period. Actual results could differ from those estimates under different assumptions. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. In addition, the Company has obtained rights to patented intellectual properties under several licensing agreements for use in research and development activities. Non‑refundable licensing payments made for intellectual properties that have no alternative future uses are expensed to research and development as incurred.
Advertising Expenses	Advertising Expenses Advertising expenses are expensed as incurred. The Company incurred advertising and sales promotion costs related to its marketing of Qsymia of $3.2 million, $3.9 million and $12.6 million in 2017, 2016 and 2015, respectively.
Share-based compensation	Share‑Based Compensation Compensation expense is recognized for share-based payments, including stock options, restricted stock units and shares issued under the employee stock purchase plan, using a fair‑value based method. The Company estimates the fair value of share‑based payment awards on the date of the grant using the Black‑Scholes option‑pricing model, which requires the Company to estimate the expected term of the award, the expected volatility, the risk-free interest rate and the expected dividends. The expected term, which represents the period of time that options granted are expected to be outstanding, is derived by analyzing the historical experience of similar awards, giving consideration to the contractual terms of the share‑based awards, vesting schedules and expectations of future employee behavior. Expected volatilities are estimated using the historical share price performance over the expected term of the option, which are adjusted as necessary for any other factors which may reasonably affect the volatility of VIVUS’s stock in the future. The risk‑free interest rate is based on the U.S. Treasury yield in effect at the time of the grant for the expected term of the award. The Company does not anticipate paying any dividends in the near future. The Company develops pre‑vesting forfeiture assumptions based on an analysis of historical data and expected future activity.
Inventory Impairment and Other Non-Recurring Charges	Inventory Impairment and Other Non‑Recurring Charges The Company’s inventory impairment and other non-recurring charges consist of inventory impairment charges, proxy contest expenses and charges from cost reduction plans, including employee severance, one time termination benefits and ongoing benefits related to the reduction of our workforce, facilities and other facility exit costs. Liabilities for costs associated with the cost reduction plan are recognized when the liability is incurred. In addition, liabilities associated with cost reduction activities are measured at fair value. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Ongoing benefits are expensed when cost reduction activities are probable and the benefit amounts are estimable. Other costs primarily consist of legal, consulting, and other costs related to employee terminations and are expensed when incurred. Termination benefits are calculated in accordance with the various agreements with certain of the Company’s employees.
Income Taxes	Income Taxes The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. As part of the process of preparing the Company’s consolidated financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which the Company operates. This process involves the Company estimating its current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the Company’s consolidated balance sheets. The Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If it is not more likely than not that the Company will recover its deferred tax assets, the Company will increase its provision for taxes by recording a valuation allowance against the deferred tax assets that the Company estimates will not ultimately be recoverable. As a result of the Company’s analysis of all available evidence, both positive and negative, as of December 31, 2017, it was considered more likely than not that the Company’s deferred tax assets would not be realized. However, should there be a change in the Company’s ability to recover its deferred tax assets, the Company would recognize a benefit to its tax provision in the period in which the Company determines that it is more likely than not that it will recover its deferred tax assets. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of its provision for income taxes. FASB ASC topic 740, Income Taxes , or ASC 740, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740‑10 utilizes a two‑step approach for evaluating uncertain tax positions. Step one, Recognition, requires a company to determine if the weight of available evidence indicates that a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes, if any. Step two, Measurement, is based on the largest amount of benefit, which is more likely than not to be realized on ultimate settlement. The Company also recognizes interest and penalties accrued on any unrecognized tax benefits as a component of its provision for income taxes. As of December 31, 2017, the Company does not have any unrecognized tax positions.
Foreign Currency Transactions	Foreign Currency Transactions Transactions in foreign currencies are initially recorded at the rates of exchange prevailing on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated into the Company’s functional currency at the rates prevailing on the balance sheet date. Non‑monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in the profit and loss account for the period. Exchange differences arising on the retranslation of non‑monetary items carried at fair value are included in other expense in the accompanying consolidated statements of operations for the period.
Contingencies and Litigation	Contingencies and Litigation The Company is periodically involved in disputes and litigation related to a variety of matters. When it is probable that the Company will experience a loss, and that loss is quantifiable, the Company records appropriate reserves. The Company records legal fees and costs as an expense when incurred.
Intangible Assets	Intangible Assets The Company records acquired intangible assets at cost and amortizes them over the estimated useful life of the asset. When events or changes in circumstances indicate that the carrying value of intangible assets may not be recoverable, the Company evaluates such impairment if the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. Should an impairment exist, the impairment loss would be measured based on the excess carrying value of the asset over the asset’s fair value or discounted estimates of future cash flows attributable to the assets. To date, the Company has recorded no impairment losses on its intangible assets.
Net Loss Per Share	Net Income (Loss) Per Share The Company computes basic net income (loss) per share applicable to common stockholders based on the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is based on the weighted average number of common and common equivalent shares, which represent shares that may be issued in the future upon the exercise of outstanding stock options or upon a net share settlement of the Company’s Convertible Notes. Common share equivalents are excluded from the computation in periods in which they have an anti‑dilutive effect. Stock options for which the price exceeds the average market price over the period have an anti‑dilutive effect on net income (loss) per share and, accordingly, are excluded from the calculation. As discussed in Note 13, the triggering conversion conditions that allow holders of the Convertible Notes to convert have not been met. If such conditions are met and the note holders opt to convert, the Company may choose to pay in cash, common stock, or a combination thereof. However, if this occurs, the Company has the intent and ability to net share settle this debt security; thus the Company uses the treasury stock method for net income (loss) 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 (loss) per share. Further, when there is a net loss, other potentially dilutive common equivalent shares are not included in the calculation of net loss per share since their inclusion would be anti‑dilutive. The following table presents the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): 2017 2016 2015 Net income (loss) $ $ $ Basic: Weighted-average shares outstanding Basic net income (loss) per share $ $ $ Diluted: Weighted-average shares outstanding used in basic calculation Dilutive potential shares — 584 — Weighted-average shares outstanding used in diluted calculation Diluted net income (loss) per share $ $ $ For the years ended December 31, 2017, 2016, and 2015, potentially dilutive outstanding stock options and RSUs of 13,499,000, 10,122,000 and 7,167,000, respectively, were not included in the computation of diluted net loss per share because the effect would have been anti‑dilutive.
Recent Accounting Pronouncements	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 Not Yet Adopted In May 2014, the 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.

Basis Of Presentation (Tables)

Basis Of Presentation (Tables)	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table presents the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): 2017 2016 2015 Net income (loss) $ $ $ Basic: Weighted-average shares outstanding Basic net income (loss) per share $ $ $ Diluted: Weighted-average shares outstanding used in basic calculation Dilutive potential shares — 584 — Weighted-average shares outstanding used in diluted calculation Diluted net income (loss) per share $ $ $

Cash, Cash Equivalents, And A33

Cash, Cash Equivalents, And Available-For-Sale Securities (Tables)	12 Months Ended
	Dec. 31, 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	The fair value and the amortized cost of cash, cash equivalents, and available-for-sale securities by major security type consist of the following (in thousands): As of December 31, 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 $ 66,392 $ — $ — $ 66,392 U.S. Treasury securities 21,070 1 (139) 20,932 Corporate debt securities 139,481 16 (486) 139,011 Total 226,943 17 (625) 226,335 Less amounts classified as cash and cash equivalents (66,392) — — (66,392) Total available-for-sale securities $ 160,551 $ 17 $ (625) $ 159,943 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 December 31, 2017 Level 1 Level 2 Level 3 Total Cash and money market funds $ $ — $ — $ U.S. Treasury securities — — Corporate debt securities — — Total $ $ $ — $ 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 Corporate debt securities — — Total $ 109,460 $ $ — $ 269,519

Accounts Receivable (Tables)

Accounts Receivable (Tables)	12 Months Ended
	Dec. 31, 2017
ACCOUNTS RECEIVABLE
Schedule of accounts receivable	Accounts receivable consist of the following (in thousands): Balance as of December 31, December 31, 2017 2016 Qsymia $ 10,400 $ 8,982 STENDRA/SPEDRA 1,982 12,382 Qsymia allowance for cash discounts (195) (213) Net $ 12,187 $

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2017
INVENTORIES
Schedule of inventories	Inventories consist of the following (in thousands): Balance as of December 31, December 31, 2017 2016 Raw materials $ 13,663 $ 9,412 Work-in-process 2,264 2,984 Finished goods 1,785 3,110 Deferred costs — 680 Inventories $ 17,712 $ 16,186

Prepaid Expenses And Other Cu36

Prepaid Expenses And Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 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 December 31, December 31, 2017 2016 Prepaid sales and marketing expenses $ 1,538 $ 1,767 Prepaid insurance 1,124 1,182 Other prepaid expenses and assets 4,516 5,302 Total $ 7,178 $ 8,251

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Property and Equipment.
Schedule of property and equipment	Property and equipment consist of the following (in thousands): Balance as of December 31, December 31, 2017 2016 Computers and software $ 1,965 $ Furniture and fixtures 185 Manufacturing equipment 213 Leasehold improvements 513 2,876 3,186 Accumulated depreciation Property and equipment, net $ 542 $ 788

Accrued And Other Liabilities (

Accrued And Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
ACCRUED AND OTHER LIABILITIES
Schedule of accrued and other liabilities	Accrued and other liabilities consist of the following (in thousands): Balance as of December 31, December 31, 2017 2016 Accrued employee compensation and benefits $ 3,642 $ 3,014 Reserve for product returns 7,854 — Product-related accruals 5,751 Accrued interest on debt (see Note 13) 410 1,509 Accrued manufacturing costs 1,238 Accrued non-recurring charges (see Note 10) — 5 Other accrued liabilities 2,580 3,652 Total $ 21,475 $ 15,686

Non-Recurring Charges (Tables)

Non-Recurring Charges (Tables)	12 Months Ended
	Dec. 31, 2017
INVENTORY IMPAIRMENT AND OTHER NON-RECURRING CHARGES
Schedule of non-recurring charges	Inventory impairment and other non-recurring charges consist of the following (in thousands): Year Ended December 31, 2017 2016 2015 Inventory impairment (see Note 4) $ — $ — $ 29,522 Employee severance and related costs — — 2,503 Share-based compensation (see Note 15) — — 36 Total inventory impairment and other non-recurring expense $ — $ — $ 32,061
Schedule of activity for the cost reduction plan (the restructuring accrual)	The following table sets forth activity for the cost reduction plans (in thousands): Severance obligations Balance of accrued costs at December 31, 2014 $ 3,280 Charges 2,474 Payments (5,344) Balance of accrued costs at December 31, 2015 410 Charges — Reclassifications (268) Payments (137) Balance of accrued costs at December 31, 2016 5 Charges — Reclassifications — Payments (5) Balance of accrued costs at December 31, 2017 $ —

Deferred Revenue (Tables)

Deferred Revenue (Tables)	12 Months Ended
	Dec. 31, 2017
DEFERRED REVENUE
Deferred Revenue, by Arrangement, Disclosure	Deferred revenue consists of the following (in thousands): Balance as of December 31, December 31, 2017 2016 Qsymia deferred revenue - current $ — $ 17,558 STENDRA deferred revenue - current 2,075 1,616 Deferred revenue - current $ 2,075 $ 19,174 STENDRA deferred revenue - non-current $ 4,674 $ 6,449

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2017
LONG-TERM DEBT AND COMMITMENTS
Schedule of debt	The following table summarizes information on the debt (in thousands): December 31, 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 as of December 31, 2017 are as follows: 2018 $ 2019 2020 256,250 Total 285,450 Less: Interest portion Senior Secured Notes $ 256,187

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of restricted stock unit award activity	A summary of restricted stock unit award activity under the 2010 Plan is as follows: Weighted Number of Average Restricted Grant Date Stock Units Fair Value Restricted stock units outstanding January 1, 2015 333,500 $ 8.17 Granted 1,954,000 1.85 Vested (248,688) 2.73 Forfeited (628,937) 7.99 Restricted stock units outstanding, December 31, 2015 1,409,875 Granted 562,500 Vested (1,359,829) Forfeited (70,789) Restricted stock units outstanding December 31, 2016 541,757 1.91 Granted 450,000 1.17 Vested 1.48 Forfeited 1.50 Restricted stock units outstanding, December 31, 2017 291,540 $ 1.78
Summary of stock option award activity	A summary of stock option award activity under these plans is as follows: Years Ended December 31, 2017 2016 2015 Weighted- Weighted- Weighted- Average Average Average Number of Exercise Number of Exercise Number of Exercise Shares Price Shares Price Shares Price Options outstanding at beginning of year 9,568,143 $ 4.62 $ 7.97 $ 12.09 Granted 5,184,800 $ 1.06 $ 1.06 $ 2.46 Exercised — $ — — $ — — $ — Cancelled (506,201) $ 2.17 $ 5.89 $ 9.38 Options outstanding at end of year 14,246,742 $ 3.41 $ 4.62 $ 7.97 Options exercisable at end of year 6,479,390 $ 6.10 $ 9.62 $ 11.48 Weighted average grant-date fair value of options granted during the year $ 0.50 $ 0.55 $ 1.44
Schedule of stock options outstanding and exercisable, by range of exercise prices	At December 31, 2017, stock options were outstanding and exercisable as follows: Options Outstanding Options Exercisable Weighted- Number Average Weighted- Number Weighted- Outstanding at Remaining Average Exercisable Average December 31, Contractual Exercise December 31, Exercise Range of Exercise Prices 2017 Life Price 2017 Price $ 0.70 — $ 1.00 763,000 years $ 125,000 $ $ 1.06 — $ 1.06 4,495,050 years $ 2,171,851 $ $ 1.12 — $ 1.12 4,117,100 years $ — $ — $ 1.15 — $ 25.74 4,871,592 years $ 4,182,539 $ $ 1.06 — $ 25.74 14,246,742 years $ 6,479,390 $
Schedule of share-based compensation expense	Total estimated share‑based compensation expense, related to all of the Company’s share‑based awards, was comprised as follows (in thousands): 2017 2016 2015 Cost of goods sold $ $ $ Selling, general and administrative Research and development Non-recurring charges — — Total share-based compensation expense $ $ $
Schedule of share-based compensation, net of estimated forfeitures associated with each type of award	The following table summarizes share‑based compensation, net of estimated forfeitures associated with each type of award (in thousands): 2017 2016 2015 Restricted stock units $ $ $ Stock options Employee stock purchase plan $ 2,942 $ 2,284 $ 3,590
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of weighted average assumptions used in estimating the fair value of stock options	The fair value of each option is estimated on the date of grant using the Black‑Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions: 2017 2016 2015 Expected life (in years) 4.69 Volatility % % % Risk-free interest rate % % 1.28 % Dividend yield — — —
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of weighted average assumptions used in estimating the fair value of stock options	The fair value of shares issued under the ESPP is estimated using the Black‑Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions: 2017 2016 2015 Expected life (in years) Volatility % % % Risk-free interest rate % % % Dividend yield — — —

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments
Schedule of future minimum lease payments under operating leases	Future minimum lease payments under operating lease at December 31, 2017, were as follows (in thousands): 2018 $ 2019 2020 2021 $

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
INCOME TAXES
Schedule of significant components of deferred income tax assets	Significant components of the Company’s deferred income tax assets as of December 31, 2017 and 2016, are as follows (in thousands): 2017 2016 Deferred tax assets: Net operating loss carry forwards $ 152,947 $ 220,053 Research and development credit carry forwards 17,426 16,550 Share-based compensation 5,248 7,579 Accruals and other 13,741 21,833 Depreciation (36) 75 Deferred revenue 1,486 3,123 190,812 269,213 Valuation allowance (190,812) (269,213) Total $ — $ —
Schedule of (loss)/income from continuing operations before (benefit)/provision for income taxes	The provision (benefit) for income taxes is based upon the loss from continuing operations before income taxes as follows (in thousands): 2017 2016 2015 Income (loss) before income taxes: Domestic $ (30,371) $ 23,592 $ (92,967) International (138) (220) (137) Income (loss) before taxes $ (30,509) $ 23,372 $ (93,104)
Schedule of components of (benefit)/provision for income taxes	The provision (benefit) for income taxes consists of the following (in thousands): 2017 2016 2015 Current: Federal $ — $ — $ — State 2 70 3 Foreign — — — Total current provision (benefit) for income taxes $ 2 $ 70 $ 3 Deferred: Federal $ — $ — $ — State — — — Foreign — — — Total deferred provision for income taxes $ — $ — $ — Total provision (benefit) for income taxes from continuing operations $ 2 $ 70 $ 3
Schedule of reconciliation between the U.S. federal statutory tax rate and effective tax rate from continuing operations	2017 2016 2015 Tax at U.S. federal statutory rate (35) % 35 % (35) % State income taxes, net of federal tax effect (1) 4 (2) Change in valuation allowance (310) (67) 31 Permanent items 24 28 6 Tax credits (1) — — Tax Cuts and Jobs Act impact 323 — — Effective tax rate — % — % — %
Schedule of reconciliation of unrecognized tax benefits	The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2017 2016 2015 Unrecognized tax benefits as of January 1 $ 65 $ 38 $ — Gross increase/(decrease) for tax positions of prior years — 2 — Gross increase/(decrease) for tax positions of current year 45 25 38 Unrecognized tax benefits balance at December 31 $ 110 $ 65 $ 38
Schedule of unrecognized tax benefits recorded on consolidated balance sheets	The remaining balance of unrecognized tax benefits recorded on the Company’s consolidated balance sheets is as follows (in thousands): 2017 2016 Total unrecognized tax benefits $ 110 $ 65 Amounts netted against deferred tax assets (110) (65) Unrecognized tax benefits recorded on consolidated balance sheets $ — $ —

Segment Information and Conce45

Segment Information and Concentration of Customers and Suppliers (Tables)	12 Months Ended
	Dec. 31, 2017
Concentration of Customers
Schedule of net product revenue by geographic region	Product revenue by geographic region is as follows (in thousands): Years Ended December 31, 2017 2016 U.S. ROW Total U.S. ROW Total Qsymia—Net product revenue $ $ — $ 44,983 $ $ — $ 48,501 Qsymia—License revenue 5,000 2,500 7,500 — — — STENDRA/SPEDRA—License revenue — — — 69,400 — 69,400 STENDRA/SPEDRA—Supply revenue 10,407 2,291 STENDRA/SPEDRA —Royalty revenue — 2,483 4,066 Total revenue $ 55,892 $ 9,481 (1) $ 65,373 $ 120,315 $ 3,943 (2) $ 124,258 2015 U.S. ROW Total Qsymia—Net product revenue $ $ — $ 54,622 STENDRA/SPEDRA—License and milestone revenue — 11,574 STENDRA/SPEDRA—Supply revenue 26,674 STENDRA/SPEDRA —Royalty revenue 2,560 Total revenue $ 71,642 $ 23,788 (3) $ 95,430 (1) $7.0 million of which is attributable to Germany. (2) $3.9 million of which is attributable to Germany. (3) $23.7 million of which is attributable to Germany.
Total revenues
Concentration of Customers
Schedule of significant customers concentration	Revenues from significant customers as a percentage of Qsymia product revenues is as follows: 2017 2016 2015 McKesson 37 % 34 % 37 % Amerisource Bergen 32 % 35 % 31 % Cardinal Health, Inc. 29 % 29 % 30 %
Gross accounts receivable | Customer concentration
Concentration of Customers
Schedule of significant customers concentration	Accounts receivable by significant customer as a percentage of the total gross accounts receivable balance are as follows: 2017 2016 Amerisource Bergen 42 % 40 % McKesson 28 % 30 % Cardinal Health, Inc. 28 % 21 %

Selected Financial Information

Selected Financial Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2017
Selected Financial Data (Unaudited)
Schedule of selected quarterly financial data	Selected Quarterly Financial Data (in thousands except per share data): Quarter Ended, March 31 June 30 September 30 December 31 2017 Total revenue $ 27,012 $ 11,227 $ 15,193 $ 11,941 Total gross profit 20,845 7,657 11,679 8,005 Operating expenses 19,778 16,214 12,767 13,821 Net (loss) income Basic and diluted net (loss) income per share $ $ $ $ 2016 Total revenue $ $ $ $ Total gross profit Operating expenses Net (loss) income Basic net (loss) income per share Diluted net (loss) income per share $ $ $ $

Basis Of Presentation, Narrativ

Basis Of Presentation, Narratives (Details) shares in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Sep. 30, 2012	Mar. 31, 2017	Dec. 31, 2017USD ($)itemshares	Dec. 31, 2016USD ($)shares	Dec. 31, 2015USD ($)shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Approved Federal Drug Administration Therapies | item			2
Number of product candidate in active clinical development | item			1
Retained Earnings (Accumulated Deficit)			$ (843,565,000)	$ (813,054,000)
Minimum maturity period for available-for-sale securities			12 months
Minimum maturity period for available-for-sale securities to support current operations securities to classify as current assets			12 months
Cash discount (as a percent)			2.00%
Accounts receivable and allowance for doubtful accounts			$ 0	0
Inventory Write-down			0	$ 0	$ 29,522,000
Impairment of Intangible Assets, Finite-lived			$ 0
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares			13,499	10,122	7,167
Doubtful Account
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable and allowance for doubtful accounts			$ 0	$ 0
Reserve for cash discount
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable and allowance for doubtful accounts			195,000	213,000
Qsymia API member
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Inventory Write-down					$ 29,500,000
Qsymia
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Advertising and sales promotion expenses incurred			$ 3,200,000	$ 3,900,000	$ 12,600,000
Months of Returns Experience	0 months	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, Reclassf

Basis Of Presentation, Reclassfications (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Change in Accounting Estimate [Line Items]
Sales Revenue, Goods, Gross				$ 17,900
Sales Returns, Goods				5,700
Sales Allowances, Goods				$ 4,900
Net Income (Loss) Attributable to Parent					$ (30,511)	$ 23,302	$ (93,107)
Earnings Per Share, Basic and Diluted	$ (0.10)	$ (0.06)	$ (0.13)	$ (0.01)
Cost of Goods Sold.					$ 17,187	$ 10,602	$ 34,157
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
Cost of Goods Sold.				$ 600
Marketing Expense				$ 700

Basis Of Presentation, PP&E (De

Basis Of Presentation, PP&E (Details)	12 Months Ended
	Dec. 31, 2017
Computers and software | Minimum
Property and equipment
Estimated useful lives for computers, software, furniture and fixtures, manufacturing equipment	2 years
Computers and software | Maximum
Property and equipment
Estimated useful lives for computers, software, furniture and fixtures, manufacturing equipment	7 years
Furniture and fixtures | Minimum
Property and equipment
Estimated useful lives for computers, software, furniture and fixtures, manufacturing equipment	2 years
Furniture and fixtures | Maximum
Property and equipment
Estimated useful lives for computers, software, furniture and fixtures, manufacturing equipment	7 years
Manufacturing equipment | Minimum
Property and equipment
Estimated useful lives for computers, software, furniture and fixtures, manufacturing equipment	2 years
Manufacturing equipment | Maximum
Property and equipment
Estimated useful lives for computers, software, furniture and fixtures, manufacturing equipment	7 years

Basis Of Presentation, Net Inco

Basis Of Presentation, Net Income Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Anti-dilutive Securities
Debt Conversion, Converted Instrument, Shares Issued					0
Net income (loss)					$ (30,511)	$ 23,302	$ (93,107)
Weighted-average shares outstanding					105,741,000	104,385,000	103,926,000
Basic net (loss) income per share	$ 0.54	$ (0.09)	$ (0.11)	$ (0.12)	$ (0.29)	$ 0.22	$ (0.90)
Dilutive potential shares						584,000
Weighted Average Shares Outstanding used in diluted calculation					105,741,000	104,969,000	103,926,000
Diluted net (loss) income per share	$ 0.54	$ (0.09)	$ (0.11)	$ (0.12)	$ (0.29)	$ 0.22	$ (0.90)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount					13,499,000	10,122,000	7,167,000
Minimum
Anti-dilutive Securities
Debt Instrument, Convertible, Stock Price Trigger					$ 20

Cash, Cash Equivalents, And A51

Cash, Cash Equivalents, And Available-For-Sale Securities (Fair Value of Cash, Cash Equivalents, and Available-For-Sale Securities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash and cash equivalents and available-for-sale securities, Amortized Cost
Cash and Cash Equivalents, at Carrying Value	$ 66,392	$ 84,783	$ 95,395	$ 83,174
Available-for-sale securities including cash and cash equivalents, Amortized Cost Total	226,943	270,134
Less amounts classified as cash equivalents, Amortized Cost	(66,392)	(84,783)	$ (95,395)	$ (83,174)
Available-for-sale Debt Securities, Amortized Cost Basis, Total	160,551	185,351
Available-for-sale securities, Gross Unrealized Gains	17	59
Available-for-sale securities, Gross Unrealized Losses	(625)	(674)
Available-for-sale Securities, Debt Securities, Current	159,943	184,736
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Cash and Cash Equivalents, Fair Value Disclosure	66,392	84,783
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	226,335	269,519
Less amounts classified as cash equivalents, Estimated Fair Value	(66,392)	(84,783)
Available-for-sale Securities, Debt Securities, Current	$ 159,943	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	$ 21,070	24,780
Available-for-sale securities, Gross Unrealized Gains	1	7
Available-for-sale securities, Gross Unrealized Losses	(139)	(110)
Available-for-sale Securities, Debt Securities, Current	20,932	24,677
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Available-for-sale Securities, Debt Securities, Current	20,932	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	139,481	160,571
Available-for-sale securities, Gross Unrealized Gains	16	52
Available-for-sale securities, Gross Unrealized Losses	(486)	(564)
Available-for-sale Securities, Debt Securities, Current	139,011	160,059
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Available-for-sale Securities, Debt Securities, Current	139,011	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	66,392	84,783
Less amounts classified as cash equivalents, Amortized Cost	(66,392)	(84,783)
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Cash and Cash Equivalents, Fair Value Disclosure	66,392	84,783
Less amounts classified as cash equivalents, Estimated Fair Value	$ (66,392)	$ (84,783)

Cash, Cash Equivalents, And A52

Cash, Cash Equivalents, And Available-For-Sale Securities (Fair Value Hierarchy for Cash Equivalents and Available-For-Sale Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair value measurements
Cash and Cash Equivalents, Fair Value Disclosure	$ 66,392	$ 84,783
Available-for-sale Securities, Debt Securities, Current	159,943	184,736
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	226,335	269,519
U.S. Treasury securities
Fair value measurements
Available-for-sale Securities, Debt Securities, Current	20,932	24,677
Available For Sale Securities Fair Value Disclosure	20,932	24,677
Corporate Debt Securities [Member]
Fair value measurements
Available-for-sale Securities, Debt Securities, Current	139,011	160,059
Available For Sale Securities Fair Value Disclosure	139,011	160,059
Level 1
Fair value measurements
Cash and Cash Equivalents, Fair Value Disclosure	66,392	84,783
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	87,324	109,460
Level 1 | U.S. Treasury securities
Fair value measurements
Available For Sale Securities Fair Value Disclosure	20,932	24,677
Level 2
Fair value measurements
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	139,011	160,059
Level 2 | U.S. Treasury securities
Fair value measurements
Available For Sale Securities Fair Value Disclosure		0
Level 2 | Corporate Debt Securities [Member]
Fair value measurements
Available For Sale Securities Fair Value Disclosure	$ 139,011	160,059
Level 3 | U.S. Treasury securities
Fair value measurements
Available For Sale Securities Fair Value Disclosure		$ 0

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts Receivable, Gross, Current	$ 12,382	$ 9,691
Accounts receivable, net	12,187	9,478
Reserve for cash discount
Qsymia allowance for cash discouts	(1,344)	(1,679)	$ (1,933)
Qsymia
Accounts Receivable, Gross, Current	10,400	8,982
Qsymia allowance for cash discounts	(195)	(213)
STENDRA/SPEDRA
Accounts Receivable, Gross, Current	$ 1,982	$ 709

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Inventory balances
Raw materials	$ 13,663	$ 9,412
Work in process	2,264	2,984
Finished goods	1,785	3,110
Deferred costs		680
Total	$ 17,712	$ 16,186

Prepaid Expenses And Other Cu55

Prepaid Expenses And Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid sales and marketing expenses	$ 1,538	$ 1,767
Prepaid insurance	1,124	1,182
Other prepaid expenses and assets	4,516	5,302
Total	$ 7,178	$ 8,251

Property And Equipment (Details

Property And Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Property and Equipment
Property and equipment, gross	$ 2,876	$ 3,186
Accumulated depreciation	(2,334)	(2,398)
Property and equipment, net	542	788
Computers and software
Property and Equipment
Property and equipment, gross	1,965	1,965
Furniture and fixtures
Property and Equipment
Property and equipment, gross	185	516
Manufacturing equipment
Property and Equipment
Property and equipment, gross	213	213
Leasehold improvements
Property and Equipment
Property and equipment, gross	$ 513	$ 492

Accrued And Other Liabilities57

Accrued And Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ACCRUED AND OTHER LIABILITIES
Accrued employee compensation and benefits	$ 3,642	$ 3,014
Reserve for product returns	7,854
Product-related accruals	5,751	671
Accrued interest on debt (see Note 13)	410	1,509
Accrued manufacturing costs	1,238	6,835
Accrued non-recurring charges (see Note 10)		5
Other accrued liabilities	2,580	3,652
Total	$ 21,475	$ 15,686

Non-Current Accrued And Other58

Non-Current Accrued And Other Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Non-current accrued and other liabilities
Restructuring charges
Non-current accrued and other liabilities	$ 0.3	$ 0.3

Inventory Impairment and Other

Inventory Impairment and Other Non-Recurring Charges Components (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)employee	Dec. 31, 2014employee
Non-Recurring Charges
Inventory impairment (see Note 4)	$ 0	$ 0	$ 29,522
Employee severance and related costs	0	0	2,503
Share-based compensation (see Note 15)	0	0	36
Total inventory impairment and other non-recurring expense	$ 0	$ 0	$ 32,061
July 2015 Restructuring Plan member
Non-Recurring Charges
Number of employees reduced | employee			60
2013 Cost Reduction Plan Member
Non-Recurring Charges
Number of employees reduced | employee				20
Qsymia API member
Non-Recurring Charges
Inventory impairment (see Note 4)			$ 29,500

Non-Recurring Charges, Cost Red

Non-Recurring Charges, Cost Reduction Plans Activity (Details) - Employee severance costs - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Unusual or Infrequent Item, or Both [Line Items]
Balance of accrued costs at the beginning of the period	$ 5	$ 410	$ 3,280
Charges	0	0	2,474
Reclassifications	0	(268)
Payments	(5)	(137)	(5,344)
Balance of accrued costs at the end of the period	$ 0	$ 5	$ 410

Deferred Revenue (Details)

Deferred Revenue (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
DEFERRED REVENUE
Current deferred revenue	$ 2,075	$ 19,174
Non-Current deferred revenue	4,674	6,449
Qsymia
DEFERRED REVENUE
Current deferred revenue		17,558
STENDRA/SPEDRA
DEFERRED REVENUE
Current deferred revenue	2,075	1,616
Non-Current deferred revenue	$ 4,674	$ 6,449

License, Commercialization An62

License, Commercialization And Supply Agreements (Details) $ in Thousands	1 Months Ended			3 Months Ended	12 Months Ended
	Sep. 30, 2016USD ($)	Nov. 30, 2013	Jul. 31, 2013country	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
License, Commercialization, and Development Agreements with Third Parties
License and Services Revenue					$ 7,500	$ 69,400	$ 11,574
Menarini Group
License, Commercialization, and Development Agreements with Third Parties
Number of European countries covered under the license agreement | country			40
Alvogen
License, Commercialization, and Development Agreements with Third Parties
License and Services Revenue				$ 2,500
STENDRA/SPEDRA
License, Commercialization, and Development Agreements with Third Parties
License and Services Revenue						$ 69,400	$ 11,574
Supply agreement | Metuchen
License, Commercialization, and Development Agreements with Third Parties
Termination notice of license and supply agreement					2 years
Proceeds from payments for manufacturing milestone	$ 70,000
Initial term					5 years
Additional period of auto-renewal					2 years
Supply agreement | Avanafil Tablets Member | Sanofi Winthrop | Minimum
License, Commercialization, and Development Agreements with Third Parties
Long-term Purchase Commitment, Period		5 years

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details)	May 29, 2013USD ($)$ / shares	Apr. 09, 2013USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	May 21, 2013USD ($)
Convertible Senior Notes Due 2020
Long-term debt
Offering amount						$ 250,000,000
Interest rate (as a percent)						4.50%
Conversion price per share (in dollars per share) | $ / shares	$ 14.86
Net proceeds from offering	$ 241,800,000
Total interest expense recognized			$ 32,600,000	$ 29,800,000	$ 27,200,000
Amortization of debt discount			19,300,000	17,500,000	16,000,000
Amortization of deferred financing costs			1,023,000	929,000	848,000
Senior Secured Notes Due 2018
Long-term debt
Total interest expense recognized			3,200,000	4,600,000	6,300,000
Amortization of deferred financing costs			$ 153,000	$ 235,000	$ 393,000
Scheduled quarterly payment amount as a percentage of net sales			25.00%
Make-whole premium ratio			1.03
Senior Secured Notes Due 2018 | Purchase of a debt-like instrument from BioPharma | Initial closing
Long-term debt
Amount received		$ 50,000,000
Amount received in funding and facility payments		$ 500,000

Long-Term Debt (Schedule of Deb

Long-Term Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Long-term debt
Senior Secured Notes	$ 256,187
Less: Debt issuance costs	(1,040)
Less: Discount on convertible senior notes	(19,464)
Net carrying value	235,683
Less: Current Portion	(5,147)	$ (8,708)
Long-term debt, net of current portion	230,536	$ 232,610
2,018	17,950
2,019	11,250
2,020	256,250
Total	285,450
Less: Interest portion	(29,263)
Convertible Senior Notes Due 2020
Long-term debt
Senior Secured Notes	250,000
Senior Secured Notes Due 2018
Long-term debt
Senior Secured Notes	$ 6,187

Stockholders' Equity (Details)

Stockholders' Equity (Details)	Nov. 09, 2016$ / sharesshares	Mar. 26, 2007item	Dec. 31, 2017item$ / shares$ / itemshares	Dec. 31, 2016$ / sharesshares
Capital stock
Common stock, shares authorized			200,000,000	200,000,000
Common stock, shares issued			105,977,000	104,874,000
Common stock, shares outstanding			105,977,000	104,874,000
Preferred stock, shares authorized			5,000,000	5,000,000
Preferred stock, par value (in dollars per share) | $ / shares			$ 1	$ 1
Preferred stock, shares issued			0	0
Preferred stock, shares outstanding			0	0
Number of rights per common stock share issued as dividend | item		1
Exercise price of preferred stock for each right (in dollars per share) | $ / shares			$ 26
Minimum percentage of common stock to be acquired for rights to become exercisable			15.00%
Redemption price per right (in dollars per right) | $ / item			0.001
Multiplier of the exercise price that the right holder has right to receive in value of acquiring company's common stock | item			2
Common stock, par value (in dollars per share) | $ / shares			$ 0.001	$ 0.001
Beneficial Ownership Percentage Without Board Approval	4.90%
Threshold Percentage of Outstanding Common Stock for Acquiring Person	4.90%
Acquiring Person Additional Percentage of Outstanding Shares of Common Stock	1.00%
Series A Participating Preferred Stock
Capital stock
Class of Right Number of Rights Series A Participating Preferred Stock Shares Purchase	0.001
Class of Right Series A Participating Preferred Stock Par Value Per Share | $ / shares	$ 0.001
Shares Issued, Price Per Share | $ / shares	$ 5.30

Stock Option and Purchase Pla66

Stock Option and Purchase Plans Narratives (Details) - USD ($)	1 Months Ended			12 Months Ended
	Oct. 31, 2017	Nov. 30, 2016	Sep. 30, 2014	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2011	Dec. 31, 2003	Jun. 25, 2010	Dec. 31, 2002
Inventory
Stock Option and Purchase Plans
Total share-based compensation cost capitalized as part of cost of inventory				$ 9,000	$ 33,000	$ 23,000
Stock options
Stock Option and Purchase Plans
Term of the option				10 years
Aggregate intrinsic value of outstanding options				$ 0
Shares available for grant				11,043,868
Unrecognized estimated compensation expense				$ 3,900,000
Weighted average remaining requisite service period				2 years 4 months 24 days
Employee Stock Purchase Plan
Stock Option and Purchase Plans
Shares reserved for issuance to employees										800,000
Increase in the number of authorized shares							2,000,000	1,400,000
Shares available for grant				216,386
Maximum payroll deductions for ESPP				10.00%
Percentage of purchase price of common stock at fair market value				85.00%
Cumulative number of shares issued under the plan to employees				1,783,614
Weighted average fair value of share issued (in dollars per share)				$ 0.23	$ 0.33	$ 0.69
Unrecognized estimated compensation expense				$ 8,000
Employee Stock Purchase Plan | Maximum
Stock Option and Purchase Plans
Weighted average remaining requisite service period				6 months
Equity incentive plan, 2010
Stock Option and Purchase Plans
Options vesting period				4 years
Shares reserved for issuance to employees				26,350,000					8,400,000
Number of shares reserved but not issued pursuant to awards under 2001 Stock Option Plan									99,975
Number of shares subject to termination									8,111,273
Increase in the number of authorized shares	7,000,000	5,000,000	5,950,000

Stock Option and Purchase Plan

Stock Option and Purchase Plan - Activity Roll Forward (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock options
Number of Shares
Balance at beginning of year (in shares)	9,568,143	5,722,105	5,956,459
Granted (in shares)	5,184,800	4,980,835	3,499,200
Cancelled (in shares)	(506,201)	(1,134,797)	(3,733,554)
Balance at end of year (in shares)	14,246,742	9,568,143	5,722,105
Exercisable at end of year (in shares)	6,479,390	3,740,459	3,042,888
Weighted-Average Exercise Price
Balance at beginning of year (in dollars per share)	$ 4.62	$ 7.97	$ 12.09
Granted (in dollars per share)	1.06	1.06	2.46
Cancelled (in dollars per share)	2.17	5.89	9.38
Balance at end of year (in dollars per share)	3.41	4.62	7.97
Exercisable at end of year (in dollars per share)	6.10	9.62	11.48
Weighted average grant-date fair value of options granted during the year (in dollars per share)	$ 0.50	$ 0.55	$ 1.44
Restricted stock units
Number of Restricted Stock Units
Restricted stock units outstanding at the beginning of the period (in shares)	541,757	1,409,875	333,500
Granted (in shares)	450,000	562,500	1,954,000
Vested (in shares)	(621,851)	(1,359,829)	(248,688)
Forfeited (in shares)	(78,366)	(70,789)	(628,937)
Restricted stock units outstanding at the end of the period (in shares)	291,540	541,757	1,409,875
Weighted Average Grant Date Fair Value
Restricted stock units outstanding at the beginning of the period (in dollars per shares)	$ 1.91	$ 1.87	$ 8.17
Granted (in dollars per share)	1.17	1.43	1.85
Vested (in dollars per share)	1.48	1.68	2.73
Forfeited (in dollars per share)	1.50	1.95	7.99
Restricted stock units outstanding at the end of the period (in dollars per shares)	$ 1.78	$ 1.91	$ 1.87

Stock Option and Purchase Pla68

Stock Option and Purchase Plans by Exercise Prices (Details)	12 Months Ended
	Dec. 31, 2017$ / sharesshares
Exercise Prices Range One $0.70 - $1.00
Summary of Stock Options
Exercise price, low end of the range (in dollars per share)	$ 0.70
Exercise price, high end of the range (in dollars per share)	$ 1
Options Outstanding
Number Outstanding at end of the period (in shares) | shares	763,000
Weighted-Average Remaining Contractual Life	6 years 9 months 22 days
Weighted-Average Exercise Price (in dollars per share)	$ 0.71
Options Exercisable
Number Exercisable at the end of the period (in shares) | shares	125,000
Weighted Average Exercise Price (in dollars per share)	$ 0.70
Exercise Prices Range Two $1.06 - $1.06
Summary of Stock Options
Exercise price, low end of the range (in dollars per share)	1.06
Exercise price, high end of the range (in dollars per share)	$ 1.06
Options Outstanding
Number Outstanding at end of the period (in shares) | shares	4,495,050
Weighted-Average Remaining Contractual Life	5 years 26 days
Weighted-Average Exercise Price (in dollars per share)	$ 1.06
Options Exercisable
Number Exercisable at the end of the period (in shares) | shares	2,171,851
Weighted Average Exercise Price (in dollars per share)	$ 1.06
Exercise Prices Range Three $1.12 - $1.12
Summary of Stock Options
Exercise price, low end of the range (in dollars per share)	1.12
Exercise price, high end of the range (in dollars per share)	$ 1.12
Options Outstanding
Number Outstanding at end of the period (in shares) | shares	4,117,100
Weighted-Average Remaining Contractual Life	6 years 26 days
Weighted-Average Exercise Price (in dollars per share)	$ 1.12
Exercise Prices Range Four $1.15 - $25.74
Summary of Stock Options
Exercise price, low end of the range (in dollars per share)	1.15
Exercise price, high end of the range (in dollars per share)	$ 25.74
Options Outstanding
Number Outstanding at end of the period (in shares) | shares	4,871,592
Weighted-Average Remaining Contractual Life	3 years 8 months 19 days
Weighted-Average Exercise Price (in dollars per share)	$ 7.94
Options Exercisable
Number Exercisable at the end of the period (in shares) | shares	4,182,539
Weighted Average Exercise Price (in dollars per share)	$ 8.88
Exercise Prices Range Total $1.06 - $25.74
Summary of Stock Options
Exercise price, low end of the range (in dollars per share)	1.06
Exercise price, high end of the range (in dollars per share)	$ 25.74
Options Outstanding
Number Outstanding at end of the period (in shares) | shares	14,246,742
Weighted-Average Remaining Contractual Life	4 years 11 months 27 days
Weighted-Average Exercise Price (in dollars per share)	$ 3.41
Options Exercisable
Number Exercisable at the end of the period (in shares) | shares	6,479,390
Weighted Average Exercise Price (in dollars per share)	$ 6.10

Stock Options and Purchase Plan

Stock Options and Purchase Plans Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	4 years 3 months 7 days	4 years 3 months 29 days	4 years 8 months 9 days
Volatility (as a percent)	57.00%	65.80%	70.80%
Risk-free interest rate (as a percent)	1.80%	1.36%	1.28%
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	6 months	6 months	6 months
Volatility (as a percent)	47.40%	50.00%	63.40%
Risk-free interest rate (as a percent)	1.20%	0.50%	0.20%
Dividend yield (as a percent)	0.00%	0.00%	0.00%

Stock Option and Purchase Pla70

Stock Option and Purchase Plans - Share-based compensation by COS & OPEX (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-Based Compensation Expense
Share-based compensation	$ 2,942	$ 2,284	$ 3,590
Restricted stock units
Share-Based Compensation Expense
Share-based compensation	924	1,591	1,409
Stock options
Share-Based Compensation Expense
Share-based compensation	2,002	675	2,143
Employee Stock Purchase Plan
Share-Based Compensation Expense
Share-based compensation	16	18	38
Cost of goods sold
Share-Based Compensation Expense
Share-based compensation	53	147	132
Selling, general and administrative
Share-Based Compensation Expense
Share-based compensation	2,544	1,644	2,862
Research and development
Share-Based Compensation Expense
Share-based compensation	$ 345	$ 493	398
Non-recurring charges
Share-Based Compensation Expense
Share-based compensation			$ 198

Commitments (Details)

Commitments (Details) $ in Thousands	Dec. 27, 2016item$ / item	Dec. 31, 2017USD ($)	Aug. 31, 2016ft²
Future minimum lease payments under operating leases
2,018		$ 531
2,019		548
2,020		564
2,021		435
Total		$ 2,078
Campbell Lease
Lease Commitments
Area of property (in square feet) | ft²			13,981
Base monthly rent (in dollars per square foot) | $ / item	3.10
Lease initial term	58 months
Abatement period of monthly installments of rent	4 months
Extended period of lease	2 years
Number of options to extend lease term | item	1
FDA Approval Qsymia (PMR and CVOT) Member
Lease Commitments
Contractual Obligation Term		5 years
FDA Approval Qsymia (PMR and CVOT) Member | Minimum
Lease Commitments
Contractual Obligation		$ 180,000
FDA Approval Qsymia (PMR and CVOT) Member | Maximum
Lease Commitments
Contractual Obligation		$ 220,000

Income Taxes Deferred Tax Asset

Income Taxes Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Net operating loss carry forwards	$ 152,947	$ 220,053
Research and development credit carry forwards	17,426	16,550
Share-based compensation	5,248	7,579
Accruals and other	13,741	21,833
Depreciation		75
Depreciation	(36)
Deferred revenue	1,486	3,123
Deferred tax assets, gross	190,812	269,213
Valuation allowance	(190,812)	(269,213)
Total	$ 0	$ 0

Income Taxes Narratives (Detail

Income Taxes Narratives (Details) - USD ($)	Dec. 22, 2017	Jan. 01, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating loss carryforwards
Income Tax Expense (Benefit)				$ 2,000	$ 70,000	$ 3,000
Unrecognized Tax Benefits				110,000	65,000	$ 38,000
Net increase (decrease) in valuation allowance				(78,400,000)	$ (15,200,000)
Deferred tax liabilities				$ 0
Tax at U.S. federal statutory rate	35.00%			35.00%	35.00%	35.00%
Change in ownership percentage				50.00%
Ownership Change Rolling Term				3 years
Accounting Standards Update 2016-09
Operating loss carryforwards
Cumulative Effect on Retained Earnings, Net of Tax		$ 0
Accounting Standards Update 2016-09 | Provision For Income Taxes
Operating loss carryforwards
Excess tax benefit from stock options				$ 17,400,000
US Tax Cuts Jobs Act
Operating loss carryforwards
Net increase (decrease) in valuation allowance				(98,400,000)
Revaluation of Deferred Tax Assets				98,400,000
US Tax Cuts Jobs Act | Subsequent event
Operating loss carryforwards
Tax at U.S. federal statutory rate			21.00%
Federal income tax
Operating loss carryforwards
Net operating loss carryforwards				640,400,000
Federal income tax | Research Tax Credit Carryforward [Member]
Operating loss carryforwards
Tax Credit Carryforward, Amount				13,200,000
State income tax
Operating loss carryforwards
Net operating loss carryforwards				276,200,000
State income tax | Research Tax Credit Carryforward [Member]
Operating loss carryforwards
Tax Credit Carryforward, Amount				$ 5,300,000

Income Taxes Provision (Details

Income Taxes Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Loss before income taxes:
Domestic	$ (30,371)	$ 23,592	$ (92,967)
International	(138)	(220)	(137)
(Loss) income before income taxes	(30,509)	23,372	(93,104)
Current
Federal	0	0	0
State	2	70	3
Foreign	0	0	0
Total current provision (benefit) for income taxes	2	70	3
Deferred
Foreign	0	0	0
State	0	0	0
Federal	0	0	0
Total deferred provision for income taxes	0	0	0
Total provision (benefit) for income taxes from continuing operations	$ 2	$ 70	$ 3

Income Taxes Reconcilation (Det

Income Taxes Reconcilation (Details) - USD ($) $ in Thousands	Dec. 22, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016
Reconciliation between the U.S. federal statutory tax rate and effective tax rate from continuing operations
Tax at U.S. federal statutory rate	35.00%	35.00%	35.00%	35.00%
State income taxes, net of federal tax effect		(1.00%)	4.00%	(2.00%)
Change in valuation allowance		(310.00%)	(67.00%)	31.00%
Permanent items		24.00%	28.00%	6.00%
Tax credits		(1.00%)
Tax Cuts and Jobs Act impact		323.00%
Effective tax rate (as a percent)		0.00%	0.00%	0.00%
Reconciliation of beginning and ending amount of unrecognized tax benefits
Unrecognized tax benefits at the beginning of period		$ 65	$ 38
Gross increase/(decrease) for tax positions of prior years			2
Gross increase/(decrease) for tax positions of current year		45	25	$ 38
Unrecognized tax benefits balance as the ending of period		110	65	38
Unrecognized tax benefits recorded on consolidated balance sheets
Total unrecognized tax benefits		$ 65	$ 38	$ 38	$ 110	$ 65
Amounts netted against deferred tax assets					(110)	(65)
Unrecognized tax benefits recorded on consolidated balance sheets					$ 0	$ 0

Segment Information and Conce76

Segment Information and Concentration of Customers and Suppliers (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Geographic Information
Net product revenue									$ 44,983	$ 48,501	$ 54,622
License and milestone revenue									7,500	69,400	11,574
Supply revenue									10,407	2,291	26,674
Royalty revenue									2,483	4,066	2,560
Total revenue	$ 11,941	$ 15,193	$ 11,227	$ 27,012	$ 81,805	$ 13,353	$ 13,776	$ 15,324	$ 65,373	124,258	95,430
Number of Operating Segments | item									1
U.S.
Geographic Information
Total revenue									$ 55,892	120,315	71,642
ROW
Geographic Information
Total revenue									9,481	3,943	23,788
Qsymia
Geographic Information
Net product revenue									44,983	48,501	54,622
License and milestone revenue									7,500
Qsymia | U.S.
Geographic Information
Net product revenue									44,983	48,501	54,622
License and milestone revenue									5,000
Qsymia | ROW
Geographic Information
License and milestone revenue									2,500
STENDRA/SPEDRA
Geographic Information
License and milestone revenue										69,400	11,574
Supply revenue									10,407	2,291	26,674
Royalty revenue									2,483	4,066	2,560
STENDRA/SPEDRA | U.S.
Geographic Information
License and milestone revenue										69,400
Supply revenue									5,909	765	16,602
Royalty revenue										1,649	418
STENDRA/SPEDRA | ROW
Geographic Information
License and milestone revenue											11,574
Supply revenue									4,498	1,526	10,072
Royalty revenue									2,483	2,417	2,142
STENDRA/SPEDRA | Germany
Geographic Information
Total revenue									$ 7,000	$ 3,900	$ 23,700

Segment Information and Conce77

Segment Information and Concentration of Customers (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Total revenues | McKesson
Concentration of Customers
Concentration risk percentage	37.00%	34.00%	37.00%
Total revenues | Amerisource Bergen
Concentration of Customers
Concentration risk percentage	32.00%	35.00%	31.00%
Total revenues | Cardinal Health, Inc.
Concentration of Customers
Concentration risk percentage	29.00%	29.00%	30.00%
Gross accounts receivable | Credit concentration | McKesson
Concentration of Customers
Concentration risk percentage	28.00%	30.00%
Gross accounts receivable | Credit concentration | Amerisource Bergen
Concentration of Customers
Concentration risk percentage	42.00%	40.00%
Gross accounts receivable | Credit concentration | Cardinal Health, Inc.
Concentration of Customers
Concentration risk percentage	28.00%	21.00%
Research and development | Qsymia and STENDRA Post Approval Studies CROM Member
Concentration of Customers
Concentration risk percentage	0.00%	27.00%	11.00%

401(k) Plan (Details)

401(k) Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
401(k) Plan
401(k) Plan employer-matching contributions	$ 272,000	$ 272,000	$ 406,000

Legal Matters (Details)

Legal Matters (Details) $ in Millions	Jan. 03, 2017	Sep. 18, 2015item	Aug. 05, 2015item	Jul. 07, 2015item	Jun. 18, 2015item	Mar. 05, 2015item	Jan. 21, 2015item	Mar. 27, 2014USD ($)employee
STENDRA ANDA Litigation member | Hetero USA Inc
LEGAL MATTERS
Period prior to expiration notice of the last to expire of patents-in-suit	180 days
Securities fraud lawsuit | Federal Leave To Amend Claims Member
LEGAL MATTERS
Loss Contingency, Claims Dismissed, Number					2
Securities fraud lawsuit | California Prejudice Claims Member
LEGAL MATTERS
Loss Contingency, Claims Dismissed, Number					7
Securities fraud lawsuit | Qsymia
LEGAL MATTERS
Loss contingency, number of officers, defendants in lawsuit | employee								3
Securities fraud lawsuit | Minimum | Qsymia
LEGAL MATTERS
Amount of damages sought | $								$ 2.8
Qsymia ANDA Litigation | Third Paragraph IV Certification Notice from Actavis Member
LEGAL MATTERS
Number of additional patents infringed upon				2
Qsymia ANDA Litigation | Paragraph IV Certification Notice from Teva Pharmaceuticals Member
LEGAL MATTERS
Number of additional patents infringed upon			2			8
Qsymia ANDA Litigation | Second Paragraph IV Certification Notice from Teva Pharmacerticals Member
LEGAL MATTERS
Number of patents-in-suit		2
Number of additional patents infringed upon							2

Selected Financial Data (Unau80

Selected Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Selected Financial Data (Unaudited)
Total revenue	$ 11,941	$ 15,193	$ 11,227	$ 27,012	$ 81,805	$ 13,353	$ 13,776	$ 15,324	$ 65,373	$ 124,258	$ 95,430
Total gross profit	8,005	11,679	7,657	20,845	79,619	11,288	11,129	11,620
Operating expenses	13,821	12,767	16,214	19,778	17,082	14,201	17,435	19,855	62,580	68,573	155,707
Net (loss) income	$ (10,075)	$ (5,994)	$ (13,386)	$ (1,056)	$ 56,563	$ (9,152)	$ (11,401)	$ (12,708)	$ (30,511)	$ 23,302	$ (93,107)
Basic and diluted net (loss) per share:
Basic net (loss) income per share					$ 0.54	$ (0.09)	$ (0.11)	$ (0.12)	$ (0.29)	$ 0.22	$ (0.90)
Diluted net (loss) income per share					$ 0.54	$ (0.09)	$ (0.11)	$ (0.12)	$ (0.29)	$ 0.22	$ (0.90)
Basic and diluted net (loss) income per share (in dollars per share)	$ (0.10)	$ (0.06)	$ (0.13)	$ (0.01)

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent event - Consulting Agreement with Allan Shaw - Equity incentive plan, 2010	Mar. 09, 2018$ / sharesshares
Shares granted | shares	300,000
Granted (in dollars per share) | $ / shares	$ 0.49

Schedule II-Valuation And Qua82

Schedule II-Valuation And Qualifying Accounts (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash discount allowances related to revenue recognized
Changes in valuation and qualifying accounts reported as assets and liabilities of continuing and discontinued operations
Charged to Operations	$ 1,697,000	$ 1,474,000	$ 1,656,000
Reserve for cash discount
Changes in valuation and qualifying accounts reported as assets and liabilities of continuing and discontinued operations
Balance at Beginning of Period	213,000	164,000	150,000
Charged to Operations	1,344,000	1,679,000	1,933,000
Charges Utilized	(1,362,000)	(1,630,000)	(1,919,000)
Balance at End of Period	$ 195,000	$ 213,000	$ 164,000