Vericel (VCEL) 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 31, 2014
Document and Entity Information	'	'
Entity Registrant Name	'AASTROM BIOSCIENCES INC	'
Entity Central Index Key	'0000887359	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	8,001,340
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash	$7,263	$8,059
Accounts receivable	4,317	8
Inventory	1,922	'
Other current assets	610	409
Total current assets	14,112	8,476
Property and equipment, net	2,387	739
Intangible assets	3,337	'
Total assets	19,836	9,215
Current liabilities:	'	'
Accounts payable and accrued expenses	9,845	2,676
Accrued employee benefits	1,732	620
Short-term debt	2,500	6
Warrant liabilities	2,974	2,019
Total current liabilities	17,051	5,321
COMMITMENTS AND CONTINGENCIES (Note 16)	'	'
Shareholders' equity:	'	'
Common stock, no par value; shares authorized - 75,000 and 15,000; shares issued and outstanding - 7,019 and 4,723, respectively	262,789	253,270
Other comprehensive income	5	'
Accumulated deficit	-298,398	-287,765
Total shareholders' equity	2,785	3,894
Total liabilities and shareholders' equity	19,836	9,215
Series B-2 voting convertible preferred stock	'	'
Shareholders' equity:	'	'
Total convertible preferred stock	$38,389	$38,389

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Par value of common stock (in dollars per share)	'	'
Common Stock, shares authorized	75,000	15,000
Common Stock, shares issued	7,019	4,723
Common Stock, shares outstanding	7,019	4,723
Series B-2 voting convertible preferred stock	'	'
Par value of convertible preferred stock (in dollars per share)	'	'
Convertible preferred stock, shares authorized	39	39
Convertible preferred stock, shares reserved	39	39
Convertible preferred stock, shares issued	12	12
Convertible preferred stock, shares outstanding	12	12

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues:	'	'	'	'
Product sales	$4,432	$3	$4,432	$11
Total revenues	4,432	3	4,432	11
Costs and expenses:	'	'	'	'
Cost of product sales	5,009	1	5,009	3
Gross profit (loss)	-577	2	-577	8
Research and development	4,364	3,676	7,635	9,214
Selling, general and administrative	3,581	1,560	4,954	3,193
Total operating expenses	7,945	5,236	12,589	12,407
Loss from operations	-8,522	-5,234	-13,166	-12,399
Other income (expense):	'	'	'	'
(Increase) decrease in fair value of warrants	248	345	-1,104	1,964
Bargain purchase gain	3,634	'	3,634	'
Interest income	4	3	6	8
Interest expense	-2	-3	-3	-6
Total other income (expense)	3,884	345	2,533	1,966
Net loss	($4,638)	($4,889)	($10,633)	($10,433)
Net loss per share attributable to common shareholders (Basic and Diluted) (see note 12) (in dollars per share)	($0.94)	($2.72)	($2.18)	($5.75)
Weighted average number of common shares outstanding (Basic and Diluted)	6,518	2,283	6,195	2,263

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS	'	'	'	'
Net loss	($4,638)	($4,889)	($10,633)	($10,433)
Other comprehensive income	'	'	'	'
Foreign currency translation	5	'	5	'
Comprehensive loss	($4,633)	($4,889)	($10,628)	($10,433)

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Operating activities:	'	'
Net loss	($10,633)	($10,433)
Adjustments to reconcile net loss to net cash used for operating activities:	'	'
Depreciation and amortization	246	275
Stock compensation expense	451	383
Change in fair value of warrants	1,104	-1,964
Bargain purchase gain	-3,634	'
Unrealized currency translation gain	5	'
Changes in operating assets and liabilities:	'	'
Inventories	278	'
Accounts receivable	-4,256	24
Other current assets	-10	92
Accounts payable and accrued expenses	4,594	87
Accrued employee benefits	1,112	75
Net cash used for operating activities	-10,743	-11,461
Investing activities:	'	'
Acquisition of CTRM business, net of cash acquired	1,050	'
Property and equipment purchases	-14	-40
Net cash provided by (used for) investing activities	1,036	-40
Financing activities:	'	'
Net proceeds from issuance of common stock and warrants	8,917	2,378
Principal payments under long-term debt obligations	-6	-21
Net cash provided by financing activities	8,911	2,357
Net decrease in cash	-796	-9,144
Cash at beginning of period	8,059	13,638
Cash at end of period	7,263	4,494
Supplemental cash flow information (non-cash):	'	'
Accretion of convertible preferred stock	2,891	2,577
Acquisition of business through issuance of promissory note	2,500	'
Warrants exchanged for common stock	$149	'

ORGANIZATION

ORGANIZATION:	6 Months Ended
	Jun. 30, 2014
ORGANIZATION:	'
ORGANIZATION:	'
	NOTE 1— ORGANIZATION:
	Aastrom Biosciences, Inc. (the Company or Aastrom) was incorporated in March 1989 and began employee-based operations in 1991. On May 30, 2014, Aastrom completed its acquisition of certain assets of Sanofi, a French société anonyme (Sanofi), including all of the outstanding equity interests of Genzyme Biosurgery ApS (Genzyme Denmark), a wholly-owned subsidiary of Sanofi, and over 250 patents and patent applications and assumed certain liabilities for purposes of acquiring the portions of the cell therapy and regenerative medicine business (the CTRM Business). The CTRM Business researches, develops, manufactures, markets and sells the Carticel®, MACITM and Epicel®  products. As a result, the Company has exited the development stage, and is now a fully integrated, commercial-stage biopharmaceutical company dedicated to the identification, development and commercialization of innovative therapies that enable the body to repair and regenerate damaged tissues and organs to restore normal structure and function.  Aastrom has marketed products as well as developmental stage product candidates and the Company’s goal is to become the leader in cell therapy and regenerative medicine by developing, manufacturing and marketing best-in-class therapies for patients with significant unmet medical needs.
	The Company operates its business in one reportable segment — the research, product development, manufacture and distribution of patient-specific, expanded cellular therapies for use in the treatment of specific diseases.
	Successful future operations are subject to several technical hurdles and risk factors, including satisfactory product development, timely initiation and completion of clinical trials, regulatory approval and market acceptance of the Company’s products, successful integration and profitability of the CTRM Business and the Company’s continued ability to obtain future funding.

LIQUIDITY

LIQUIDITY:	6 Months Ended
	Jun. 30, 2014
LIQUIDITY:	'
LIQUIDITY:	'
	NOTE 2— LIQUIDITY:
	The Company is subject to certain risks related to the operation of its business and development of its products and product candidates.  As of June 30, 2014, the Company had $7.3 million of cash.  This is not sufficient to sustain operations for one year.  In light of its financial position, the Company is evaluating strategic financial opportunities in the short-term in order maintain adequate liquidity through December 31, 2014 and beyond.  The Company could sell an additional net $9.3 million worth of common shares through an At the Market Sales Agreement (ATM) or direct Lincoln Park Capital Fund, LLC (Lincoln Park) to purchase up to $11.8 million worth of shares of common shares under the Purchase Agreement between the Company and Lincoln Park in order to raise additional capital, though there are certain factors, such as volume of trading in the stock, the stock price and the ability to terminate the agreement with notice, which could limit the amount the Company could raise in a short period of time.  See Note 14, “Shareholders’ Equity” for additional information. On a longer-term basis, the Company will need to raise additional funds in order to complete product development programs and complete clinical trials needed to market and commercialize its products.  The Company cannot be certain that such funding will be available on favorable terms, if at all.  Some of the factors that will impact the Company’s ability to raise additional capital and our overall success include: the degree of success achieved in integrating and the revenue produced by the newly acquired CTRM Business, the rate and degree of progress for product development, the Company’s ability to maintain its facility as a U.S. Food and Drug Administration (FDA) compliant and validated product manufacturing facility, the rate of regulatory approval to proceed with clinical trial programs, the level of success achieved in clinical trials, the requirements for marketing authorization from regulatory bodies in the United States and other countries, the liquidity and market volatility of the Company’s equity securities, regulatory and manufacturing requirements and uncertainties, technological developments by competitors, and other factors.  If the Company cannot raise such funds, the Company will not be able to develop or enhance its products, take advantage of future opportunities, or respond to competitive pressures or unanticipated requirements, which would have a material adverse impact on the business, financial condition and results of operations.  As a result of the need to raise additional capital, there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate the business effectively over at least the next twelve months, which raises substantial doubt as to the ability to continue as a going concern.  The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION:	6 Months Ended
	Jun. 30, 2014
BASIS OF PRESENTATION:	'
BASIS OF PRESENTATION:	'
	NOTE 3 — BASIS OF PRESENTATION:
	The condensed consolidated financial statements included herein have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC).  The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) requires management to make estimates, judgments, and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. The financial statements reflect, in the opinion of management, all adjustments (consisting only of normal, recurring adjustments) necessary to state fairly the financial position and results of operations as of and for the periods indicated.  The results of operations for the six months ended June 30, 2014, are not necessarily indicative of the results to be expected for the full year or for any other period.  The December 31, 2013 condensed consolidated balance sheet data was derived from the Company’s audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP.
	These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the period ended December 31, 2013, as filed with the SEC on March 13, 2014 (Annual Report).
	The consolidated financial statements include the accounts of Aastrom and its wholly-owned subsidiaries, Aastrom Biosciences GmbH, located in Berlin, Germany, Marrow Donation, LLC, located in San Diego, California, and Aastrom Biosciences DK ApS, in Kastrup, Demark (collectively, the Company).  All inter-company transactions and accounts have been eliminated in consolidation.  Aastrom Biosciences GmbH has ceased operations.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEWLY ISSUED ACCOUNTING STANDARDS:	6 Months Ended
	Jun. 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEWLY ISSUED ACCOUNTING STANDARDS:	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEWLY ISSUED ACCOUNTING STANDARDS:	'
	NOTE 4 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEWLY ISSUED ACCOUNTING STANDARDS:
	During the six months ended June 30, 2014, the Company added certain policies and procedures as a result of its acquisition of the commercialized CTRM Business.  There were no other changes to the significant accounting policies described in the Company’s audited financial statements as of and for the year ended December 31, 2013, and the notes thereto, which are included in the Annual Report.
	Inventories
	Inventories are measured at the lower of cost or market value. Cost is calculated using the first-in, first-out method.  Utilization reserves are established for estimated obsolescence or un-marketable inventory in an amount equal to the cost of inventory.
	Accounts Receivable
	Accounts receivable is initially recorded at the contractual amount owed by the customer.  Allowances for doubtful accounts are established when the facts and circumstances dictate that the asset has been impaired.
	Property, Plant and Equipment
	Property, plant and equipment are initially measured and recognized at acquisition cost, including any directly attributable cost of preparing the asset for its intended use or, in the case of assets acquired in a business combination, at fair value as at the date of the combination.
	After initial measurement, property, plant and equipment are carried at cost less accumulated depreciation and impairment.
	Repair and maintenance costs of property, plant and equipment are expensed as incurred.
	The depreciable value of property, plant and equipment, net of any residual value, is depreciated on a straight line basis over the useful life of the asset. The useful life of an asset is usually equivalent to its economic life.
	The useful lives of property, plant and equipment are as follows:
	·       Equipment and computers:  3 to 5 years
	·       Furniture and fixtures:  5 years
	·       Building improvements and leasehold improvements:  Shorter of the remaining life of the lease or 15 years
	Useful lives and residual values of property, plant and equipment are reviewed at each reporting date. The effect of any adjustment to useful lives or residual values is recognized prospectively as a change of accounting estimate.
	Intangible Assets
	Intangible assets are initially measured at acquisition cost, including any directly attributable costs of preparing the asset for its intended use or, in the case of assets acquired in a business combination at fair value as at the date of the combination.  Identifiable intangible assets related to product rights are amortized on a straight-line basis over their expected useful lives.
	The useful lives of intangible assets are reviewed at each reporting date.  The effect of any adjustment to useful lives is recognized prospectively as a change of accounting estimate.
	Amortization of intangible assets is recognized in these financial statements under Costs of Product Sales.
	Intangible assets are carried at cost less accumulated amortization and impairment.
	Impairment of Intangible Assets and Other Long-Lived Assets
	Intangible assets and long-lived assets are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss would be recognized when an asset’s fair value, determined based on undiscounted cash flows expected to be generated by the asset, is less than its carrying amount. The impairment loss would be measured as the amount by which the asset’s carrying value exceeds its fair value and recognized in these financial statements.
	Foreign Currency Translation
	Assets and liabilities of Genzyme Denmark are translated from Danish Krone into U.S. dollars using the applicable exchange rates in effect at the period end.  Expenses of the operations in Denmark are translated from the applicable currencies into U.S. dollars using average exchange rates for the reported period.
	Revenue Recognition
	Revenue arising from the sale of products is presented in these financial statements in Total revenues. Total revenues were comprised of revenue from sales of Carticel, Epicel, bone marrow, and surgical kits.  Revenue is recognized from product sales when persuasive evidence of an arrangement exists, the goods are shipped or delivered, depending on shipping terms, title and risk of loss pass to the customer and collectability is reasonably assured.
	Revenue is recorded net of a provision, made at the time of sale, for rebates, chargebacks and cash discounts. These revenue reductions are established by the Company at the time of sale, based on historical experience adjusted to reflect known changes in the factors that impact such reserves.  Distributors are entitled to chargeback incentives for services that are provided for based on the selling price to the end customer, under specific contractual arrangements. Cash discounts may also be granted for prompt payment.
	Because Epicel is a humanitarian use device, Aastrom does not sell Epicel for a profit.  The amount charged does not exceed the costs of the research, development, fabrication and distribution of the product.
	Research and Development Expense
	Research and development activities represent a significant part of the Company’s business.  These expenditures relate to the development of new products, improvement of existing products, technical support of products and compliance with governmental regulations for the protection of consumers and patients.  Research and development expenses are expensed as incurred.
	Newly issued Accounting Standards
	In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 merges revenue recognition standards of the FASB and International Accounting Standards Board (IASB). The FASB and IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS) that would: (1) remove inconsistencies and weaknesses in revenue requirements; (2) provide a more robust framework for addressing revenue issues; (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) provide more useful information to users of financial statements through improved disclosure requirements; and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the potential impact of this new guidance on its consolidated financial statements.

ACQUISITIONS

ACQUISITIONS:	6 Months Ended
	Jun. 30, 2014
ACQUISITIONS	'
ACQUISITIONS	'
	NOTE 5—ACQUISITIONS:
	CTRM Business acquisition
	On May 30, 2014, Aastrom completed its acquisition of certain assets of Sanofi, including all of the outstanding equity interests of Genzyme Denmark, a wholly-owned subsidiary of Sanofi, and over 250 patents and patent applications and assumed certain liabilities for purposes of acquiring portions of the CTRM Business. Aastrom is a leading developer of patient-specific, expanded multicellular therapies for the treatment of severe, chronic cardiovascular diseases.  The acquired CTRM business, also a leading developer of patient-specific expanded cellular therapies, expands the Company’s portfolio of cellular therapies to include products which treat severe burns and as well as cartilage defects.  The acquired business also transforms the company into a fully integrated commercial business, and brings with it manufacturing, marketing and sales capabilities. This transaction provides a platform to generate operating income to support the development of pipeline products and possible additional strategic transactions. Pursuant to the terms of the asset purchase agreement, in consideration for the sale of the CTRM Business, the Company paid a total purchase price of $6.5 million, including $4.0 million in cash and a $2.5 million promissory note with interest accruing at the short term applicable federal rate in effect on the May 30, 2014, prepayable without prepayment penalty, and due upon the earliest to occur of (i) July 30, 2014, (ii) a liquidation, dissolution or winding up of the Company, or (iii) a sale of the Company.
	The total purchase price consideration is as follows:
	Acquisition consideration (in 000’s):	Fair Value
	Cash payment	$	4,000
	Promissory note	2,500
	Total acquisition consideration	$	6,500
	The Company recognized tangible and intangible assets and liabilities acquired based upon their respective estimated fair values as of the acquisition date. The table below shows the preliminary fair values assigned to the assets acquired and liabilities assumed. Based on this analysis, the transaction resulted in a bargain purchase gain. We may make additional adjustments to the fair values, and these valuations could change significantly from those used to determine certain adjustments in the pro forma condensed combined financial statements.
	The preliminary purchase price allocation is as follows:
	Purchase price allocation (in 000’s):	Fair Value
	Cash	$	5,050
	Accounts receivable	53
	Inventory	2,200
	Other current assets	192
	Accounts payable and accrued expenses	(2,539		)
	Property and equipment	1,818
	Intangible assets	3,360
	Bargain purchase gain	(3,634		)
	Total consideration	$	6,500
	As part of the acquisition, $5.0 million in cash was received from Sanofi in order to fund the restructuring of the Denmark operations and close the facility.  To date we have recorded restructuring charges of $3.0 million and expect to incur additional costs in the second half of 2014.  See Note 6 “Restructuring” below for additional information.i
	The intangible assets acquired represent commercial use rights for certain products acquired in the transaction. This estimated fair value was determined using the income approach based on projected cash flows attributed to the commercial rights. The calculated value of the commercial rights intangible assets are amortized using the straight-line method over an estimated useful life of twelve years.
	The identifiable intangible assets acquired and their estimated useful lives are summarized as follows:
	(in 000’s)	Fair Value			Useful Life
	Commercial rights	$	3,360		12 years
	The following unaudited pro forma condensed combined information for the three month period ending June 30, 2014, and 2013, respectively and the six month period ending June 30, 2014, and 2013, respectively are presented as if the acquisition of the CTRM Business had occurred on January 1, 2013.
	These unaudited pro forma condensed combined statements should be read in connection with the Company’s historical combined financial statements and notes thereto filed with the SEC. In management’s opinion, all adjustments necessary to reflect the significant effects of this transactions have been made. These statements are based on assumptions and estimates considered appropriate by our management; however, they are unaudited and are not necessarily, and should not be assumed to be, an indication of our financial position or results of operations that would have been achieved had the acquisitions been completed as of the dates indicated or that may be achieved in the future.
		Three Months Ended						Six Months Ended
	(in 000’s)	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
	Pro forma revenue	$	10,096		$	10,610		$	20,542		$	20,948
	Pro forma net loss	(9,032		)	(11,255		)	(20,460		)	(25,251		)
	Pro forma net loss per share — basic and diluted	$	(1.61	)	$	(5.50	)	$	(3.77	)	$	(12.30	)
	Revenue and net loss included in the condensed consolidated financial statements include one month of operations related to the CTRM Business since the May 30, 2014 acquisition and are $4.4 million and $(2.7 million), respectively. The net loss related to the CTRM business includes the restructuring costs described below as well as $231 thousand of expenses from the Genzyme Denmark subsidiary that the Company is in the process of shutting down.

RESTRUCTURING

RESTRUCTURING:	6 Months Ended
	Jun. 30, 2014
RESTRUCTURING:	'
RESTRUCTURING:	'
	NOTE 6—RESTRUCTURING:
	On June 16, 2014, the Company announced a strategic plan to maximize the profitability and growth potential of the CTRM Business (the Plan).  Under the Plan, the Company intends to discontinue manufacturing MACI® in Denmark, temporarily cease sales of MACI ® in Europe, and significantly reduce research and development expenses associated with MACI®.  Furthermore, the Company has eliminated approximately 80 full time employee positions, which represented approximately 30% of the Company’s current total workforce.  Employees terminated as part the Plan are being provided with severance payments and outplacement assistance.
	As a result of the Plan, the Company recorded a restructuring charge of $3.0 million in the three months ended June 30, 2014 related to the operations in the United States and Denmark, primarily representing cash payments for severance and other personnel-related expenses.  Of the total restructuring charge, $2.4 million was recorded in cost of product sales, and $0.6 million was recorded in selling, general and administrative expenses. The restructuring reserve decreased to $2.6 million as of June 30, 2014 as a result of cash payments made for severance and other personnel-related expenses. In addition to restructuring charges recorded in the second quarter, the Company may incur the following costs in the future: lease termination costs of approximately $0.6 million, and stay-on bonuses of $0.2 million.  These costs will be recognized when appropriate.  The Company currently expects to complete the Plan by the end of the fourth quarter of 2014.  The Company acquired an asset retirement obligation of $1.6 million related to the obligation to restore the Denmark facility to its original state. The Company is currently attempting to sell the leasehold improvement and transfer the lease obligation in order to avoid incurring the restoration costs.

STOCKBASED_COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2014
STOCK-BASED COMPENSATION	'
STOCK-BASED COMPENSATION	'
	NOTE 7 — STOCK—BASED COMPENSATION
	The Company issues nonqualified and incentive stock options as well as other equity awards pursuant to its 2009 Omnibus Incentive Plan, as amended (Option Plan).  Such awards pursuant to the Option Plan may be granted by the Company’s Board of Directors to certain of the Company’s employees, directors and consultants.
	During the three and six months ended June 30, 2014, the Company granted 128,000 and 242,025, respectively, service-based options to purchase common stock.  These options were granted with exercise prices equal to the fair market value of the Company’s stock at the grant date, generally vest over four years and expire after ten years.  The weighted average grant-date fair value of service-based options granted under the Option Plan during the three month period ended June 30, 2014 and 2013 was $3.11 and $6.78, respectively.  The weighted average grant-date fair value of service-based options granted under the Option Plan during the six month period ended June 30, 2014 and 2013 was $2.85 and $15.00, respectively.
	The net compensation expense recorded for the service-based stock options related to employees and directors was $0.2 million and $0.5 million for the three and six months ended June 30, 2014, respectively, compared to $426 thousand and $383 thousand for the three and six month periods ended June 30, 2013, respectively.  The compensation cost includes forfeiture adjustments.
	The fair value of each service-based stock option grant for the reported periods is estimated on the date of the grant using the Black-Scholes option-pricing model using the weighted average assumptions noted in the following table.
		Six Months Ended June 30,
	Service-Based Stock Options	2014		2013
	Expected dividend rate	0	%	0	%
	Expected stock price volatility	82.4 – 88.2	%	74.0-80.7	%
	Risk-free interest rate	1.66 – 2.2	%	0.1- 1.4	%
	Expected life (years)	5.5 – 6.25		5.0 - 6.3
	The following table summarizes the activity for service-based stock options for the indicated periods:
	Service-Based Stock Options	Options		Weighted		Weighted Average	Aggregate
				Average		Remaining	Intrinsic Value
				Exercise Price		Contractual Term
						(Years)
	Outstanding at December 31, 2013	297,860		$	39.53	7.9	$	—
	Granted	242,025		$	3.91
	Exercised	—		$	—		$	—
	Expired	(9,676	)	$	47.58
	Forfeited	(23,240	)	$	32.44
	Outstanding at June 30, 2014	506,969		$	22.69	8.3	$	57,599
	Exercisable at June 30, 2014	191,888		$	40.24	6.62	$	—
	As of June 30, 2014 there was approximately $0.9 million of total unrecognized compensation cost related to non-vested service-based stock options granted under the Option Plan.  That cost is expected to be recognized over a weighted-average period of 3.19 years.
	The total fair value of options vested during the six months ended June 30, 2014 and 2013 was $1.0 million and $1.4 million, respectively.

BALANCE_SHEET_COMPONENTS

BALANCE SHEET COMPONENTS:	6 Months Ended
	Jun. 30, 2014
BALANCE SHEET COMPONENTS:	'
BALANCE SHEET COMPONENTS:	'
	NOTE 8—BALANCE SHEET COMPONENTS:
	Inventories:
	(in 000’s)	June 30, 2014
	Raw materials	$	867
	Work-in-process	582
	Finished goods	473
	Inventories	$	1,922
		June 30, 2014			December 31, 2013
	Property and equipment, net:(in 000’s)
	Equipment and computers	$	3,949		$	3,024
	Furniture and fixtures	722			706
	Buildings, building improvements and leasehold improvements	1,656			1,018
	Construction in progress	368			77
	Total property and equipment, gross	6,695			4,825
	Less: Accumulated depreciation	(4,308		)	(4,086		)
		$	2,387		$	739
		As of June 30, 2014
	Intangible assets, net (in 000’s)	Gross			Accumulated			Net
		Amount			Amortization			Amount
	Commercial rights	$	3,360		$	(23	)	$	3,337
	Amortization expenses were $0.02 million and $0 for the three and six month periods ended June 30, 2014 and 2013, respectively. The increase in intangible assets, net from December 31, 2013 to June 30, 2014 is due to the acquisition of the CTRM Business.
	Estimated future amortization expense, which includes the preliminary estimates of amortization for the assets acquired through the initial closing of the CTRM Business acquisition, is as follows:
	Calendar Years Ending December 31, (in 000’s)
	2014	$	163
	2015	280
	2016	280
	2017	280
	2018	280
	Thereafter	2,077
	Total	$	3,360
	(in 000’s)	June 30, 2014			December 31, 2013
	Accounts payable and accrued expenses:
	Accounts payable to vendors	$	2,909		$	2,355
	Accrued accounts payable	2,505			294
	Restructuring reserve	2,605			—
	Asset retirement obligation	1,600			—
	Other	226			27
	Total accounts payable and accrued expenses	$	9,845		$	2,676
	Accumulated other comprehensive income
	The components of accumulated other comprehensive income, net of taxes were as follows:
		30-Jun-14
		Foreign Currency translation
		adjustment, net of taxes
	Beginning balance	$	—
	Foreign currency translation	5
	Net loss reclassified into earnings	—
	Total	$	5

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS:	6 Months Ended
	Jun. 30, 2014
FAIR VALUE MEASUREMENTS:	'
FAIR VALUE MEASUREMENTS:	'
	NOTE 9—FAIR VALUE MEASUREMENTS:
	The Company’s fair value measurements are classified and disclosed in one of the following three categories:
	Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
	Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability;
	Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
	The following table summarizes the valuation of the Company’s investments and financial instruments that are measured at fair value on a recurring basis:
		June 30, 2014									December 31, 2013
					Fair value measurement category								Fair value measurement category
	(In 000’s)	Total			Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	Liabilities:
	Warrant liabilities	$	2,974		$		$	2,766	$	208	$	2,019	$	—	$	1,934	$	85
	The Company has historically issued warrants to purchase shares of the Company’s common stock in connection with certain of its common stock offerings.
	The following table summarizes the change in the estimated fair value of the Company’s warrant liabilities:
	Warrant Liabilities (in 000’s)
	Balance at December 31, 2013	$	2,019
	Warrant exercise	(149		)
	Increase in fair value	1,104
	Balance at June 30, 2014	$	2,974
	A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows:
	Warrants:
		Three Months Ended			Six Months Ended
	(in 000’s)	June 30, 2014			June 30, 2014
	Beginning balance	$	196		$	85
	Increase in fair value	12			123
	Ending balance	$	208		$	208

STOCK_PURCHASE_WARRANTS

STOCK PURCHASE WARRANTS:	6 Months Ended
	Jun. 30, 2014
STOCK PURCHASE WARRANTS:	'
STOCK PURCHASE WARRANTS:	'
	NOTE 10—STOCK PURCHASE WARRANTS:
	The Company has historically issued warrants to purchase shares of the Company’s common stock in connection with certain of its common stock offerings.  The following warrants were outstanding at June 30, 2014, and include provisions that could require cash settlement of the warrants or have anti-dilution price protection provisions requiring each to be recorded as liabilities of the Company at the estimated fair value at the date of issuance, with changes in estimated fair value recorded as non-cash income or expense in the Company’s statement of operations in each subsequent period:
		January 2010 Class			December 2010			August 2013
		A Warrants			Warrants			Warrants
	Exercise price	$	18.09		$	3.3		$	4.8
	Expiration date	July 21, 2015			December 15, 2015			August 16, 2018
	Total shares issuable on exercise	226,299			15,405			1,087,450
	The fair value of the Class A warrants and the December 2010 warrants are measured using the Monte Carlo valuation model.  The methodology is based, in part, upon inputs for which there is little or no observable market data, requiring the Company to develop its own assumptions. The assumptions used in calculating the estimated fair value of the warrants represent the Company’s best estimates, however; these estimates involve inherent uncertainties and the application of management judgment.  As a result, if factors change and different assumptions are used, the warrant liabilities and the change in estimated fair value of the warrants could be materially different.
	Inherent in the Monte Carlo valuation model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield.  The Company estimates the volatility of its common stock based on historical volatility that matches the expected remaining life of the warrants.  The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants.  The expected life of the warrants is assumed to be equivalent to their remaining contractual term.  The dividend rate is based on the historical rate, which the Company anticipates to remain at zero.
	The Monte Carlo model is used for the Class A warrants and the December 2010 warrants to value the potential future exercise price adjustments triggered by the anti-dilution provisions as well as the value of the put feature of the December 2010 warrants.  These require Level 3 inputs which are based on the Company’s estimates of the probability and timing of potential future financings and fundamental transactions.  The other assumptions used by the Company are summarized in the following tables:
	January 2010 Class A Warrants	June 30, 2014			December 31, 2013
	Closing stock price	$	4.1		$	3.23
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	130.4		%	84.6		%
	Risk-free interest rate	0.2		%	0.3		%
	Expected life (years)	1			1.5
	December 2010 Warrants	June 30, 2014			December 31, 2013
	Closing stock price	$	4.1		$	3.23
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	123.4		%	80.4		%
	Risk-free interest rate	0.3		%	0.4		%
	Expected life (years)	1.46			1.96
	August 2013 Warrants	June 30, 2014		December 31, 2013
	Closing stock price	4.1		$	3.23
	Expected dividend rate	0	%	0		%
	Expected stock price volatility	89.9	%	77.5		%
	Risk-free interest rate	1.4	%	1.6		%
	Expected life (years)	4.13		4.63

SERIES_B_CONVERTIBLE_PREFERRED

SERIES B CONVERTIBLE PREFERRED STOCK:	6 Months Ended
	Jun. 30, 2014
SERIES B CONVERTIBLE PREFERRED STOCK:	'
SERIES B CONVERTIBLE PREFERRED STOCK:	'
	NOTE 11—SERIES B CONVERTIBLE PREFERRED STOCK:
	On March 9, 2012, the Company completed the sale of 12,308 shares of Series B-1 Non-Voting Convertible Preferred Stock (Series B-1 preferred stock) at an offering price of $3,250 per share.  In addition to the Series B-1 preferred stock, which was issued at the closing, the Company also authorized Series B-2 Voting Convertible Preferred Stock (Series B-2 preferred stock).  The Series B-1 preferred stock and Series B-2 preferred stock collectively are referred to as the Series B preferred stock.  The Series B preferred stock is convertible, at the option of the holder thereof at any time after the five year anniversary of the closing of the offering, (the Conversion date) into shares of common stock at a conversion price of $3.25 per share of common stock.  At any time after the Conversion date, the Company may elect to convert any or all outstanding shares of Series B preferred stock into shares of common stock, subject to certain limitations.  Dividends on the Series B preferred stock will be cumulative and compound daily, at a rate of 11.5% per annum, payable upon conversion, liquidation, redemption or other similar events, and payable in cash or Series B-1 preferred stock until the Conversion date.  As of June 30, 2014, there are approximately 187,181 accumulated but undeclared Series B-1 dividends.  Unless prohibited by Michigan law governing distributions to shareholders, the Series B-1 preferred stock shall be redeemable at the option of holder of the Series B-1 preferred stock commencing at any time after the Conversion date, liquidation, winding up, dissolution or other similar events, subject to certain terms and limitations.
	The Series B preferred stock does not, in its entirety, require liability classification and was evaluated for embedded features to determine if those features require bifurcation and separate classification as derivative liabilities.  The Series B preferred stock host contract was evaluated for equity or mezzanine classification based upon the nature of the redemption and conversion features.  Generally, any feature that could require cash redemption for matters not within the Company’s control, irrespective of probability of the event occurring, requires classification outside of shareholders’ equity.  The Series B preferred stock was initially recorded as mezzanine in the Condensed Consolidated Balance Sheets and was accreted to its redemption value through charges to accumulated deficit using the effective interest method.
	On August 12, 2013, the Company amended the Series B preferred stock agreement to remove the cash redemption provision, modify the liquidation preferences for the Series B-2 preferred stock and to increase the redemption price for the Series B-1 preferred stock.  The redemption price, prior to the five year anniversary, is now equal to $7,430 multiplied by the number of Series B-1 preferred shares redeemed minus the Company’s closing stock price multiplied by the number of common shares into which the outstanding Series B-2 preferred stock are convertible.  The redemption price, after the five year anniversary, is the amount equal to the greater of the Series B offering price plus accrued dividends or the conversion value in common stock.  As a result of the amendment to the agreement, the total amount of $38,389,000 Series B preferred stock was reclassified from mezzanine into shareholders’ equity.

Net_Loss_Per_Common_Share

Net Loss Per Common Share:	6 Months Ended
	Jun. 30, 2014
Net Loss Per Common Share:	'
Net Loss Per Common Share:	'
	NOTE 12—Net Loss Per Common Share:
	Basic earnings (loss) per share is calculated using the two-class method, which is an earnings allocation formula that determines earnings (loss) per share for the holders of the Company’s common shares and holders of the Series B preferred stock.  The Series B preferred stock shares contain participation rights in undistributed earnings, but do not share in the losses of the Company.  The dividends on the Series B preferred stock are treated as a reduction of earnings attributable to common shareholders.
	The following reflects the net loss attributable to common shareholders and share data used in the basic and diluted earnings per share computations using the two class method:
		Three Months Ended June 30,						Six Months Ended June 30,
	(Amounts in 000’s except per share amounts)	2014			2013			2014			2013
	Numerator:
	Net loss	$	4,638		$	4,889		$	10,633		$	10,433
	Less: dividends accumulated on convertible preferred stock	1,474			1,314			2,892			2,577
	Numerator of basic and diluted EPS	$	6,112		$	6,203		$	13,525		$	13,010
	Denominator:
	Denominator for basic and diluted EPS:
	Weighted-average common shares outstanding	6,518			2,283			6,195			2,263
	Net loss per share attributable to common shareholders (basic and diluted)	$	(0.94	)	$	(2.72	)	$	(2.18	)	$	(5.75	)
	Common equivalent shares are not included in the diluted per share calculation where the effect of their inclusion would be anti-dilutive.  The aggregate number of common equivalent shares (related to options, warrants and preferred stock) that have been excluded from the computations of diluted net loss per common share at June 30, 2014 and 2013 were 2,639,000 and 1,320,000, respectively.

BORROWINGS

BORROWINGS:	6 Months Ended
	Jun. 30, 2014
BORROWINGS:	'
BORROWINGS:	'
	NOTE 13—BORROWINGS:
	Promissory note
	The Company has a short term promissory note associated with the purchase of the CTRM Business. The interest rate for the principle amount is at the short term applicable federal rate in effect on May 30, 2014. The promissory note is prepayable without prepayment penalty and due upon the earliest to occur of (i) July 30, 2014, (ii) a liquidation, dissolution or winding up of the Company, or a (iii) sale of the Company. The balance outstanding on the promissory note as of June 30, 2014 was $2.5 million.  The promissory note approximates the fair value of the obligation.
	On July 30, 2014, the Company repaid the promissory note due to Sanofi in connection with the acquisition of the CTRM Business in the amount of $2.5 million plus interest of $1.4 thousand.

SHAREHOLDERS_EQUITY

SHAREHOLDERS' EQUITY:	6 Months Ended
	Jun. 30, 2014
SHAREHOLDERS' EQUITY:	'
SHAREHOLDERS' EQUITY:	'
	NOTE 14—SHAREHOLDERS’ EQUITY:
	On January 21, 2014, the Company entered into a purchase agreement (Purchase Agreement), together with a registration rights agreement, for the sale of up to $15.0 million (with a remaining balance of $11.8 million) of shares of its common stock to Lincoln Park, subject to certain limitations, from time to time over a 30-month period, which began on April 3, 2014 and ends on October 3, 2016.
	The Company may direct Lincoln Park, at its sole discretion, to purchase up to 50,000 shares of common stock in regular purchases, increasing to amounts of up to 100,000 shares depending upon the closing sale price of the common stock.  In addition, the Company may direct Lincoln Park to purchase additional amounts as accelerated purchases if on the date of a regular purchase the closing sale price of the common stock equals or exceeds $3.00 per share.  The purchase price of shares of common stock related to the future funding will be based on the prevailing market prices of such shares at the time of sales (or over a period of up to 10 business days leading up to such time), but in no event will shares be sold to Lincoln Park on a day the common stock closing price is less than the floor price of $2.50, subject to adjustment.  The Company controls the timing and amount of any sales of common stock to Lincoln Park. The Company’s sales of shares of common stock to Lincoln Park under the Purchase Agreement are limited to no more than the number of shares that would result in the beneficial ownership by Lincoln Park and its affiliates, at any single point in time, of more than 9.99% of the then outstanding shares of the common stock.
	In connection with the Purchase Agreement, in the six months ended June 30, 2014, the Company issued to Lincoln Park 772,361 shares of common stock and raised $3.2 million.  Additionally, during the six months ended June 30, 2014, the Company raised net proceeds of $5.3 million utilizing the ATM. At June 30, 2014 there was approximately $9.3 million of net capacity remaining on the ATM.

CONCENTRATION_OF_CREDIT_RISK

CONCENTRATION OF CREDIT RISK	6 Months Ended
	Jun. 30, 2014
CONCENTRATION OF CREDIT RISK	'
CONCENTRATION OF CREDIT RISK	'
	NOTE 15—CONCENTRATION OF CREDIT RISK
	Revenue from one third party customer in the U.S. represented 76% of total revenue during the three and six month period ended June 30, 2014.  Reported revenue reflects sales related to the acquisition of the CTRM Business from Sanofi since May 30, 2014.  No other customer represented more than 10% of net sales.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2014
COMMITMENTS AND CONTINGENCIES	'
COMMITMENTS AND CONTINGENCIES	'
	NOTE 16 — COMMITMENTS AND CONTINGENCIES
	During 2013, the Company amended its operating lease with Domino’s Farms Office Park, LLC to extend the term of the lease for an additional five years, which began on May 1, 2013.  The Company now has a right to terminate on the third anniversary of the renewal, and has two five-year market value renewal options.  The Company’s leased facility includes a Class 100,000 modular manufacturing clean room, laboratories and office space.  The lease also provides the Company a right of first refusal on certain additional space.
	In conjunction with the acquisition of the CTRM Business, the company assumed the leases for facilities in Cambridge, MA and Kastrup, Denmark.  The leases for the facilities in Cambridge and Kastrup are non-cancelable leases expiring at various dates through February 2017.
	As of June 30, 2014, future minimum payments related to operating leases are as follows:
	(in 000’s)	2014		2015		2016		2017		2018		More than 5		Total
	Leased office space	$	1,784	$	4,088	$	4,056	$	1,196	$	333	—		$	11,457
	Sales force leased auto fleet	97		194		166		57		5		—		519
	Total	$	1,881	$	4,282	$	4,222	$	1,253	$	338	$	—	$	11,976
	Rent expense for the three and six months ended June 30, 2014 was approximately $0.6 million and $0.8 million, respectively, compared to $0.3 million and $0.5 million for those same periods in 2013.
	As part of its the acquisition of Verigen AG (Verigen), Genzyme Corporation, a subsidiary of Sanofi agreed to make cash payments to Verigen upon the achievement of developmental milestones relating to regulatory and commercialization of MACI in the United States.  If the Company further develops MACI in the U.S., it will be obligated to pay Verigen up to $15.8 million in developmental milestones relating to regulatory and commercialization of MACI in the United States. No amounts have been accrued for payments of these potential milestone payments, any amounts to be paid cannot be reasonably estimated and are not probable.

SUBSEQUENT_EVENT

SUBSEQUENT EVENT	6 Months Ended
	Jun. 30, 2014
SUBSEQUENT EVENT	'
SUBSEQUENT EVENT	'
	NOTE 17—SUBSEQUENT EVENT
	On July 9, 2014, the Company entered into a Warrant Exercise Agreement with one holder of warrants issued by the Company on August 16, 2013 (the 2013 Warrants) to purchase an aggregate of 362,500 shares of the Company’s common stock, no par value.  Pursuant to the Warrant Exercise Agreement, the holder agreed to exercise the 2013 Warrants at the existing exercise price of $4.80.  The net proceeds to the Company in connection with the exercise of the 2013 Warrants, after deducting a warrant inducement payment, and expenses, were approximately $1.5 million.  As a result of this transaction, there are now 724,950 of the 2013 Warrants outstanding and the warrant liability has been reduced by approximately 33%.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEWLY ISSUED ACCOUNTING STANDARDS: (Policies)	6 Months Ended
	Jun. 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEWLY ISSUED ACCOUNTING STANDARDS:	'
Inventories	'
	Inventories
	Inventories are measured at the lower of cost or market value. Cost is calculated using the first-in, first-out method.  Utilization reserves are established for estimated obsolescence or un-marketable inventory in an amount equal to the cost of inventory.
Accounts Receivable	'
	Accounts Receivable
	Accounts receivable is initially recorded at the contractual amount owed by the customer.  Allowances for doubtful accounts are established when the facts and circumstances dictate that the asset has been impaired.
Property, Plant and Equipment	'
	Property, Plant and Equipment
	Property, plant and equipment are initially measured and recognized at acquisition cost, including any directly attributable cost of preparing the asset for its intended use or, in the case of assets acquired in a business combination, at fair value as at the date of the combination.
	After initial measurement, property, plant and equipment are carried at cost less accumulated depreciation and impairment.
	Repair and maintenance costs of property, plant and equipment are expensed as incurred.
	The depreciable value of property, plant and equipment, net of any residual value, is depreciated on a straight line basis over the useful life of the asset. The useful life of an asset is usually equivalent to its economic life.
	The useful lives of property, plant and equipment are as follows:
	·       Equipment and computers:  3 to 5 years
	·       Furniture and fixtures:  5 years
	·       Building improvements and leasehold improvements:  Shorter of the remaining life of the lease or 15 years
	Useful lives and residual values of property, plant and equipment are reviewed at each reporting date. The effect of any adjustment to useful lives or residual values is recognized prospectively as a change of accounting estimate.
Intangible Assets	'
	Intangible Assets
	Intangible assets are initially measured at acquisition cost, including any directly attributable costs of preparing the asset for its intended use or, in the case of assets acquired in a business combination at fair value as at the date of the combination.  Identifiable intangible assets related to product rights are amortized on a straight-line basis over their expected useful lives.
	The useful lives of intangible assets are reviewed at each reporting date.  The effect of any adjustment to useful lives is recognized prospectively as a change of accounting estimate.
	Amortization of intangible assets is recognized in these financial statements under Costs of Product Sales.
	Intangible assets are carried at cost less accumulated amortization and impairment.
Impairment of Intangible Assets and Other Long-Lived assets	'
	Impairment of Intangible Assets and Other Long-Lived Assets
	Intangible assets and long-lived assets are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss would be recognized when an asset’s fair value, determined based on undiscounted cash flows expected to be generated by the asset, is less than its carrying amount. The impairment loss would be measured as the amount by which the asset’s carrying value exceeds its fair value and recognized in these financial statements.
Foreign Currency Translation	'
	Foreign Currency Translation
	Assets and liabilities of Genzyme Denmark are translated from Danish Krone into U.S. dollars using the applicable exchange rates in effect at the period end.  Expenses of the operations in Denmark are translated from the applicable currencies into U.S. dollars using average exchange rates for the reported period.
Revenue Recognition	'
	Revenue Recognition
	Revenue arising from the sale of products is presented in these financial statements in Total revenues. Total revenues were comprised of revenue from sales of Carticel, Epicel, bone marrow, and surgical kits.  Revenue is recognized from product sales when persuasive evidence of an arrangement exists, the goods are shipped or delivered, depending on shipping terms, title and risk of loss pass to the customer and collectability is reasonably assured.
	Revenue is recorded net of a provision, made at the time of sale, for rebates, chargebacks and cash discounts. These revenue reductions are established by the Company at the time of sale, based on historical experience adjusted to reflect known changes in the factors that impact such reserves.  Distributors are entitled to chargeback incentives for services that are provided for based on the selling price to the end customer, under specific contractual arrangements. Cash discounts may also be granted for prompt payment.
	Because Epicel is a humanitarian use device, Aastrom does not sell Epicel for a profit.  The amount charged does not exceed the costs of the research, development, fabrication and distribution of the product.
Research and Development Expense	'
	Research and Development Expense
	Research and development activities represent a significant part of the Company’s business.  These expenditures relate to the development of new products, improvement of existing products, technical support of products and compliance with governmental regulations for the protection of consumers and patients.  Research and development expenses are expensed as incurred.
Newly issued Accounting Standards	'
	Newly issued Accounting Standards
	In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 merges revenue recognition standards of the FASB and International Accounting Standards Board (IASB). The FASB and IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS) that would: (1) remove inconsistencies and weaknesses in revenue requirements; (2) provide a more robust framework for addressing revenue issues; (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) provide more useful information to users of financial statements through improved disclosure requirements; and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the potential impact of this new guidance on its consolidated financial statements.

ACQUISITIONS_Tables

ACQUISITIONS: (Tables)	6 Months Ended
	Jun. 30, 2014
ACQUISITIONS	'
Schedule of total purchase price allocation	'
	Acquisition consideration (in 000’s):	Fair Value
	Cash payment	$	4,000
	Promissory note	2,500
	Total acquisition consideration	$	6,500
Schedule of preliminary purchase price allocation	'
	Purchase price allocation (in 000’s):	Fair Value
	Cash	$	5,050
	Accounts receivable	53
	Inventory	2,200
	Other current assets	192
	Accounts payable and accrued expenses	(2,539		)
	Property and equipment	1,818
	Intangible assets	3,360
	Bargain purchase gain	(3,634		)
	Total consideration	$	6,500
Summary of identifiable intangible assets acquired and their estimated useful lives	'
	(in 000’s)	Fair Value			Useful Life
	Commercial rights	$	3,360		12 years
Schedule of unaudited pro forma condensed combined statements	'
		Three Months Ended						Six Months Ended
	(in 000’s)	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
	Pro forma revenue	$	10,096		$	10,610		$	20,542		$	20,948
	Pro forma net loss	(9,032		)	(11,255		)	(20,460		)	(25,251		)
	Pro forma net loss per share — basic and diluted	$	(1.61	)	$	(5.50	)	$	(3.77	)	$	(12.30	)

STOCKBASED_COMPENSATION_Tables

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2014
STOCK-BASED COMPENSATION	'
Schedule of weighted average assumptions used to estimate fair value of each service-based stock option grant	'
		Six Months Ended June 30,
	Service-Based Stock Options	2014		2013
	Expected dividend rate	0	%	0	%
	Expected stock price volatility	82.4 – 88.2	%	74.0-80.7	%
	Risk-free interest rate	1.66 – 2.2	%	0.1- 1.4	%
	Expected life (years)	5.5 – 6.25		5.0 - 6.3
Summary of activity for service-based stock options	'
	Service-Based Stock Options	Options		Weighted		Weighted Average	Aggregate
				Average		Remaining	Intrinsic Value
				Exercise Price		Contractual Term
						(Years)
	Outstanding at December 31, 2013	297,860		$	39.53	7.9	$	—
	Granted	242,025		$	3.91
	Exercised	—		$	—		$	—
	Expired	(9,676	)	$	47.58
	Forfeited	(23,240	)	$	32.44
	Outstanding at June 30, 2014	506,969		$	22.69	8.3	$	57,599
	Exercisable at June 30, 2014	191,888		$	40.24	6.62	$	—

BALANCE_SHEET_COMPONENTS_Table

BALANCE SHEET COMPONENTS: (Tables)	6 Months Ended
	Jun. 30, 2014
BALANCE SHEET COMPONENTS:	'
Schedule of inventories	'
	(in 000’s)	June 30, 2014
	Raw materials	$	867
	Work-in-process	582
	Finished goods	473
	Inventories	$	1,922
Schedule of property and equipment, net	'
		June 30, 2014			December 31, 2013
	Property and equipment, net:(in 000’s)
	Equipment and computers	$	3,949		$	3,024
	Furniture and fixtures	722			706
	Buildings, building improvements and leasehold improvements	1,656			1,018
	Construction in progress	368			77
	Total property and equipment, gross	6,695			4,825
	Less: Accumulated depreciation	(4,308		)	(4,086		)
		$	2,387		$	739
Schedule of intangible assets, net	'
		As of June 30, 2014
	Intangible assets, net (in 000’s)	Gross			Accumulated			Net
		Amount			Amortization			Amount
	Commercial rights	$	3,360		$	(23	)	$	3,337
Schedule of estimated future amortization expense	'
	Calendar Years Ending December 31, (in 000’s)
	2014	$	163
	2015	280
	2016	280
	2017	280
	2018	280
	Thereafter	2,077
	Total	$	3,360
Schedule of accounts payable and accrued expenses	'
	(in 000’s)	June 30, 2014			December 31, 2013
	Accounts payable and accrued expenses:
	Accounts payable to vendors	$	2,909		$	2,355
	Accrued accounts payable	2,505			294
	Restructuring reserve	2,605			—
	Asset retirement obligation	1,600			—
	Other	226			27
	Total accounts payable and accrued expenses	$	9,845		$	2,676
Schedule of components of accumulated other comprehensive income, net of taxes	'
		30-Jun-14
		Foreign Currency translation
		adjustment, net of taxes
	Beginning balance	$	—
	Foreign currency translation	5
	Net loss reclassified into earnings	—
	Total	$	5

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS: (Tables)	6 Months Ended
	Jun. 30, 2014
FAIR VALUE MEASUREMENTS:	'
Summary of valuation of the Company's investments and financial instruments that are measured at fair value on a recurring basis	'
		June 30, 2014									December 31, 2013
					Fair value measurement category								Fair value measurement category
	(In 000’s)	Total			Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	Liabilities:
	Warrant liabilities	$	2,974		$		$	2,766	$	208	$	2,019	$	—	$	1,934	$	85
Summary of change in estimated fair value of warrant liabilities	'
	Warrant Liabilities (in 000’s)
	Balance at December 31, 2013	$	2,019
	Warrant exercise	(149		)
	Increase in fair value	1,104
	Balance at June 30, 2014	$	2,974
Schedule of reconciliation of beginning and ending balances for the Company's fair value measurements using Level 3 inputs	'
		Three Months Ended			Six Months Ended
	(in 000’s)	June 30, 2014			June 30, 2014
	Beginning balance	$	196		$	85
	Increase in fair value	12			123
	Ending balance	$	208		$	208

STOCK_PURCHASE_WARRANTS_Tables

STOCK PURCHASE WARRANTS: (Tables)	6 Months Ended
	Jun. 30, 2014
STOCK PURCHASE WARRANTS:	'
Schedule of warrants outstanding	'
		January 2010 Class			December 2010			August 2013
		A Warrants			Warrants			Warrants
	Exercise price	$	18.09		$	3.3		$	4.8
	Expiration date	July 21, 2015			December 15, 2015			August 16, 2018
	Total shares issuable on exercise	226,299			15,405			1,087,450
Schedule of assumptions used in calculating estimated fair value of warrants	'
	January 2010 Class A Warrants	June 30, 2014			December 31, 2013
	Closing stock price	$	4.1		$	3.23
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	130.4		%	84.6		%
	Risk-free interest rate	0.2		%	0.3		%
	Expected life (years)	1			1.5
	December 2010 Warrants	June 30, 2014			December 31, 2013
	Closing stock price	$	4.1		$	3.23
	Expected dividend rate	0		%	0		%
	Expected stock price volatility	123.4		%	80.4		%
	Risk-free interest rate	0.3		%	0.4		%
	Expected life (years)	1.46			1.96
	August 2013 Warrants	June 30, 2014		December 31, 2013
	Closing stock price	4.1		$	3.23
	Expected dividend rate	0	%	0		%
	Expected stock price volatility	89.9	%	77.5		%
	Risk-free interest rate	1.4	%	1.6		%
	Expected life (years)	4.13		4.63

Net_Loss_Per_Common_Share_Tabl

Net Loss Per Common Share: (Tables)	6 Months Ended
	Jun. 30, 2014
Net Loss Per Common Share:	'
Schedule of net loss attributable to common shareholders and share data used in the basic and diluted earnings per share computations using the two class method	'
		Three Months Ended June 30,						Six Months Ended June 30,
	(Amounts in 000’s except per share amounts)	2014			2013			2014			2013
	Numerator:
	Net loss	$	4,638		$	4,889		$	10,633		$	10,433
	Less: dividends accumulated on convertible preferred stock	1,474			1,314			2,892			2,577
	Numerator of basic and diluted EPS	$	6,112		$	6,203		$	13,525		$	13,010
	Denominator:
	Denominator for basic and diluted EPS:
	Weighted-average common shares outstanding	6,518			2,283			6,195			2,263
	Net loss per share attributable to common shareholders (basic and diluted)	$	(0.94	)	$	(2.72	)	$	(2.18	)	$	(5.75	)

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2014
COMMITMENTS AND CONTINGENCIES	'
Schedule of future minimum payments related to operating leases	'
	(in 000’s)	2014		2015		2016		2017		2018		More than 5		Total
	Leased office space	$	1,784	$	4,088	$	4,056	$	1,196	$	333	—		$	11,457
	Sales force leased auto fleet	97		194		166		57		5		—		519
	Total	$	1,881	$	4,282	$	4,222	$	1,253	$	338	$	—	$	11,976

ORGANIZATION_Details

ORGANIZATION: (Details)	6 Months Ended
	Jun. 30, 2014	30-May-14
	item	CTRM Business
		item
Organization	'	'
Number of patents and patents applications acquired	'	250
Number of reportable segments	1	'

LIQUIDITY_Details

LIQUIDITY: (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Organization and summary of significant accounting policies	'	'	'	'
Cash	$7,263,000	$8,059,000	$4,494,000	$13,638,000
Maximum period before cash and cash equivalents are not sufficient to sustain operations	'1 year	'	'	'
Value of additional common shares could be sold	9,300,000	'	'	'
Minimum period of uncertainty regarding the entity's ability to maintain liquidity sufficient to operate business effectively	'12 months	'	'	'
Lincoln Park | Maximum	'	'	'	'
Organization and summary of significant accounting policies	'	'	'	'
Value of shares of common stock under obligation to purchase	$11,800,000	'	'	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEWLY ISSUED ACCOUNTING STANDARDS: (Details 3)	6 Months Ended
	Jun. 30, 2014
Equipment and computers | Minimum	'
Property, Plant and Equipment	'
Useful lives	'3 years
Equipment and computers | Maximum	'
Property, Plant and Equipment	'
Useful lives	'5 years
Furniture and fixtures	'
Property, Plant and Equipment	'
Useful lives	'5 years
Building improvements and leasehold improvements	'
Property, Plant and Equipment	'
Useful lives	'15 years

ACQUISITIONS_Details

ACQUISITIONS: (Details) (USD $)	3 Months Ended	6 Months Ended	0 Months Ended	3 Months Ended		6 Months Ended		0 Months Ended	6 Months Ended	0 Months Ended	1 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	30-May-14	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	30-May-14	Jun. 30, 2014	30-May-14	Jun. 30, 2014
			CTRM Business	CTRM Business	CTRM Business	CTRM Business	CTRM Business	CTRM Business	CTRM Business	CTRM Business	CTRM Business
			item					Sanofi	Genzyme Biosurgery ApS	Commercial rights	Commercial rights
								Denmark	Denmark
Acquisitions	'	'	'	'	'	'	'	'	'	'	'
Number of patents and patents applications acquired	'	'	250	'	'	'	'	'	'	'	'
Total purchase price consideration	'	'	'	'	'	'	'	'	'	'	'
Cash payment	'	'	$4,000,000	'	'	'	'	'	'	'	'
Promissory note	'	2,500,000	2,500,000	'	'	'	'	'	'	'	'
Total acquisition consideration	'	'	6,500,000	'	'	'	'	'	'	'	'
Total purchase price allocation	'	'	'	'	'	'	'	'	'	'	'
Cash	'	'	5,050,000	'	'	'	'	'	'	'	'
Accounts receivable	'	'	53,000	'	'	'	'	'	'	'	'
Inventory	'	'	2,200,000	'	'	'	'	'	'	'	'
Other current assets	'	'	192,000	'	'	'	'	'	'	'	'
Accounts payable and accrued expenses	'	'	-2,539,000	'	'	'	'	'	'	'	'
Property and equipment	'	'	1,818,000	'	'	'	'	'	'	'	'
Intangible assets	'	'	3,360,000	'	'	'	'	'	'	3,360,000	'
Bargain purchase gain	'	'	-3,634,000	'	'	'	'	'	'	'	'
Total consideration	'	'	6,500,000	'	'	'	'	'	'	'	'
Identifiable intangible assets acquired and their estimated useful lives	'	'	'	'	'	'	'	'	'	'	'
Useful Life	'	'	'	'	'	'	'	'	'	'12 years	'
Unaudited pro forma condensed combined statements	'	'	'	'	'	'	'	'	'	'	'
Pro forma revenue	'	'	'	10,096,000	10,610,000	20,542,000	20,948,000	'	'	'	'
Pro forma net loss	'	'	'	-9,032,000	-11,255,000	-20,460,000	-25,251,000	'	'	'	'
Pro forma net loss per share - basic and diluted (in dollars per share)	'	'	'	($1.61)	($5.50)	($3.77)	($12.30)	'	'	'	'
Revenue	'	'	'	'	'	'	'	'	'	'	4,400,000
Net loss	'	'	'	'	'	'	'	'	'	'	-2,700,000
Restructuring expenses	3,000,000	'	'	'	'	'	'	'	231,000	'	'
Cash received in order to fund the restructuring of the Denmark operations and close the facility	'	'	'	'	'	'	'	$5,000,000	'	'	'

RESTRUCTURING_Details

RESTRUCTURING: (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 16, 2014	Jun. 30, 2014	Jun. 30, 2014
		item	Cost of product sales	Selling, general and administrative expenses
RESTRUCTURING:	'	'	'	'
Number of full time employee positions eliminated	'	80	'	'
Percentage of full time employee positions eliminated	'	30.00%	'	'
Restructuring	'	'	'	'
Restructuring charge	$3,000,000	'	$2,400,000	$600,000
Restructuring reserve related to severance payments	2,600,000	'	'	'
Lease termination costs to be incurred	600,000	'	'	'
Stay-on bonus cost to be incurred	200,000	'	'	'
Asset retirement obligation acquired	$1,600,000	'	'	'

STOCKBASED_COMPENSATION_Detail

STOCK-BASED COMPENSATION (Details) (Service-based stock options, USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Stock-Based Compensation	'	'	'	'	'
Vesting period	'	'	'4 years	'	'
Expiration period	'	'	'10 years	'	'
Weighted average grant-date fair value (in dollars per share)	$3.11	$6.78	$2.85	$15	'
Net compensation expense related to employees and directors (in dollars)	$200,000	$426,000	$500,000	$383,000	'
Weighted average assumptions used to estimate fair value of each service-based stock option grant	'	'	'	'	'
Expected dividend rate (as a percent)	'	'	0.00%	0.00%	'
Options	'	'	'	'	'
Outstanding at the beginning of the period (in shares)	'	'	297,860	'	'
Granted (in shares)	128,000	'	242,025	'	'
Expired (in shares)	'	'	-9,676	'	'
Forfeited (in shares)	'	'	-23,240	'	'
Outstanding at the end of the period (in shares)	506,969	'	506,969	'	297,860
Exercisable at the end of the period (in shares)	191,888	'	191,888	'	'
Weighted Average Exercise Price	'	'	'	'	'
Outstanding at the beginning of the period (in dollars per share)	'	'	$39.53	'	'
Granted (in dollars per share)	'	'	$3.91	'	'
Expired (in dollars per share)	'	'	$47.58	'	'
Forfeited (in dollars per share)	'	'	$32.44	'	'
Outstanding at the end of the period (in dollars per share)	$22.69	'	$22.69	'	$39.53
Exercisable at the end of the period (in dollars per share)	$40.24	'	$40.24	'	'
Weighted Average Remaining Contractual Term (Years)	'	'	'	'	'
Outstanding at the beginning of the period	'	'	'8 years 3 months 18 days	'	'7 years 10 months 24 days
Outstanding at the end of the period	'	'	'8 years 3 months 18 days	'	'7 years 10 months 24 days
Exercisable at the end of the period	'	'	'6 years 7 months 13 days	'	'
Aggregate Intrinsic Value	'	'	'	'	'
Outstanding at the end of the period	57,599	'	57,599	'	'
Additional disclosures	'	'	'	'	'
Total unrecognized compensation cost (in dollars)	900,000	'	900,000	'	'
Weighted average period over which unrecognized compensation is expected to be recognized	'	'	'3 years 2 months 8 days	'	'
Total fair value of options vested (in dollars)	'	'	$1,000,000	$1,400,000	'
Minimum	'	'	'	'	'
Weighted average assumptions used to estimate fair value of each service-based stock option grant	'	'	'	'	'
Expected stock price volatility (as a percent)	'	'	82.40%	74.00%	'
Risk-free interest rate (as a percent)	'	'	1.66%	0.10%	'
Expected life	'	'	'5 years 6 months	'5 years	'
Maximum	'	'	'	'	'
Weighted average assumptions used to estimate fair value of each service-based stock option grant	'	'	'	'	'
Expected stock price volatility (as a percent)	'	'	88.20%	80.70%	'
Risk-free interest rate (as a percent)	'	'	2.20%	1.40%	'
Expected life	'	'	'6 years 3 months	'6 years 3 months 18 days	'

BALANCE_SHEET_COMPONENTS_Detai

BALANCE SHEET COMPONENTS: (Details) (USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified
Inventories	'
Raw materials	$867
Work-in-process	582
Finished goods	473
Inventories	$1,922

BALANCE_SHEET_COMPONENTS_Detai1

BALANCE SHEET COMPONENTS: (Details 2) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Property and equipment, net:	'	'
Total property and equipment, gross	$6,695	$4,825
Less: Accumulated depreciation	-4,308	-4,086
Total property and equipment, net	2,387	739
Equipment and computers	'	'
Property and equipment, net:	'	'
Total property and equipment, gross	3,949	3,024
Furniture and fixtures	'	'
Property and equipment, net:	'	'
Total property and equipment, gross	722	706
Buildings, building improvements and leasehold improvements	'	'
Property and equipment, net:	'	'
Total property and equipment, gross	1,656	1,018
Construction in progress	'	'
Property and equipment, net:	'	'
Total property and equipment, gross	$368	$77

BALANCE_SHEET_COMPONENTS_Detai2

BALANCE SHEET COMPONENTS: (Details 3) (USD $)	3 Months Ended	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014
Intangible assets, net	'	'
Net Amount	$3,360	$3,360
Amortization expenses	20	0
Estimated future amortization expense	'	'
2014	163	163
2015	280	280
2016	280	280
2017	280	280
2018	280	280
Thereafter	2,077	2,077
Net Amount	3,360	3,360
Commercial rights	'	'
Intangible assets, net	'	'
Gross Amount	3,360	3,360
Accumulated Amortization	-23	-23
Net Amount	3,337	3,337
Estimated future amortization expense	'	'
Net Amount	$3,337	$3,337

BALANCE_SHEET_COMPONENTS_Detai3

BALANCE SHEET COMPONENTS: (Details 4) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Accounts payable and accrued expenses:	'	'
Accounts payable to vendors	$2,909	$2,355
Accrued accounts payable	2,505	294
Restructuring reserve	2,605	'
Asset retirement obligation	1,600	'
Other	226	27
Total accounts payable and accrued expenses	$9,845	$2,676

BALANCE_SHEET_COMPONENTS_Detai4

BALANCE SHEET COMPONENTS: (Details 5) (USD $)	3 Months Ended	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014
Accumulated other comprehensive income, net of taxes	'	'
Foreign currency translation	$5	$5
Total	5	5
Foreign Currency translation adjustment, net of taxes	'	'
Accumulated other comprehensive income, net of taxes	'	'
Foreign currency translation	'	5
Total	$5	$5

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS: (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014	Dec. 31, 2013
					Recurring	Recurring	Recurring	Recurring
					Level 2	Level 2	Level 3	Level 3
Liabilities that are measured at fair value on a recurring basis	'	'	'	'	'	'	'	'
Warrant liabilities	$2,974	'	$2,974	'	$2,766	$1,934	$208	$85
Change in the estimated fair value of warrant liabilities	'	'	'	'	'	'	'	'
Balance at the beginning of the period	'	'	2,019	'	2,766	1,934	208	85
Warrant exercise	'	'	-149	'	'	'	'	'
Increase in fair value	-248	-345	1,104	-1,964	'	'	'	'
Balance at the end of the period	$2,974	'	$2,974	'	$2,766	$1,934	$208	$85

FAIR_VALUE_MEASUREMENTS_Detail1

FAIR VALUE MEASUREMENTS: (Details 2) (Warrants, USD $)	3 Months Ended	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014
Warrants	'	'
Reconciliation of beginning and ending balances for the company's fair value measurements using Level 3 inputs	'	'
Beginning balance	$196	$85
Increase in fair value	12	123
Ending balance	$208	$208

STOCK_PURCHASE_WARRANTS_Detail

STOCK PURCHASE WARRANTS: (Details) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
January 2010 Class A Warrants	'	'
Stock Purchase Warrants	'	'
Exercise price per share (in dollars per share)	$18.09	'
Total shares issuable on exercise	226,299	'
Assumptions used in calculating the estimated fair value of the warrants	'	'
Closing stock price (in dollars per share)	$4.10	$3.23
Expected dividend rate (as a percent)	0.00%	0.00%
Expected stock price volatility (as a percent)	130.40%	84.60%
Risk-free interest rate (as a percent)	0.20%	0.30%
Expected life	'1 year	'1 year 6 months
December 2010 Warrants	'	'
Stock Purchase Warrants	'	'
Exercise price per share (in dollars per share)	$3.30	'
Total shares issuable on exercise	15,405	'
Assumptions used in calculating the estimated fair value of the warrants	'	'
Closing stock price (in dollars per share)	$4.10	$3.23
Expected dividend rate (as a percent)	0.00%	0.00%
Expected stock price volatility (as a percent)	123.40%	80.40%
Risk-free interest rate (as a percent)	0.30%	0.40%
Expected life	'1 year 5 months 16 days	'1 year 11 months 16 days
August 2013 warrants	'	'
Stock Purchase Warrants	'	'
Exercise price per share (in dollars per share)	$4.80	'
Total shares issuable on exercise	1,087,450	'
Assumptions used in calculating the estimated fair value of the warrants	'	'
Closing stock price (in dollars per share)	$4.10	$3.23
Expected dividend rate (as a percent)	0.00%	0.00%
Expected stock price volatility (as a percent)	89.90%	77.50%
Risk-free interest rate (as a percent)	1.40%	1.60%
Expected life	'4 years 1 month 17 days	'4 years 7 months 17 days

SERIES_B_CONVERTIBLE_PREFERRED1

SERIES B CONVERTIBLE PREFERRED STOCK: (Details) (USD $)	0 Months Ended	6 Months Ended	0 Months Ended	1 Months Ended
	Aug. 12, 2013	Jun. 30, 2014	Mar. 09, 2012	Mar. 31, 2013	Jun. 30, 2014	Aug. 12, 2013
	Series B preferred stock	Series B preferred stock	Series B-1 preferred stock	Series B-1 preferred stock	Series B-1 preferred stock	Series B-1 preferred stock
Series B Convertible Preferred Stock	'	'	'	'	'	'
Number of shares sold	'	'	12,308	'	'	'
Offering price per share (in dollars per share)	'	'	$3,250	'	'	'
Conversion price per share (in dollars per share)	'	$3.25	'	'	'	'
Period of closing of offering after which shares are convertible	'	'5 years	'	'5 years	'	'
Percentage of cumulative dividend rate	'	11.50%	'	'	'	'
Accumulated but undeclared dividends	'	'	'	'	$187,181	'
Redemption price (in dollars per share)	'	'	'	'	'	$7,430
Reclassification of Series B preferred stock	($38,389,000)	'	'	'	'	'

Net_Loss_Per_Common_Share_Deta

Net Loss Per Common Share: (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Numerator:	'	'	'	'
Net loss	$4,638	$4,889	$10,633	$10,433
Less: dividends accumulated on convertible preferred stock	1,474	1,314	2,892	2,577
Numerator of basic and diluted EPS	$6,112	$6,203	$13,525	$13,010
Denominator:	'	'	'	'
Denominator for basic and diluted EPS: Weighted-average common shares outstanding	6,518,000	2,283,000	6,195,000	2,263,000
Net loss per share attributable to common shareholders (basic and diluted) (in dollars per share)	($0.94)	($2.72)	($2.18)	($5.75)
Aggregate number of common equivalent shares (related to options, warrants and preferred stock) that have been excluded from computations of diluted net loss per common share	'	'	2,639,000	1,320,000

BORROWINGS_Details

BORROWINGS: (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jul. 30, 2014
			Subsequent event
			Sanofi
BORROWINGS:	'	'	'
Outstanding balance on the promissory note	$2,500,000	$6,000	'
Borrowings	'	'	'
Promissory note repaid	'	'	2,500,000
Interest paid	'	'	$1,400

SHAREHOLDERS_EQUITY_Details

SHAREHOLDERS' EQUITY: (Details) (USD $)	6 Months Ended		0 Months Ended	6 Months Ended		0 Months Ended	6 Months Ended
In Millions, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Jan. 21, 2014	Jun. 30, 2014	Jan. 21, 2014	Jan. 21, 2014	Jun. 30, 2014
			Lincoln Park	Lincoln Park	Lincoln Park	Lincoln Park	Lincoln Park
					Minimum	Maximum	Maximum
Shareholders' Equity	'	'	'	'	'	'	'
Value of shares of common stock to be sold	'	'	'	'	'	$15	'
Value of remaining shares of common stock to be sold	'	'	11.8	'	'	'	'
Period over which shares of common stock to be purchased	'	'	'30 months	'	'	'	'
Number of shares of common stock to be purchased in regular purchases	'	'	'	'	'	50,000	'
Number of shares of common stock to be purchased depending upon the closing sale price of the common stock	'	'	'	'	'	100,000	'
Threshold closing sale price of the common stock on the date of a regular purchase to trigger purchase of additional amounts as accelerated purchases (in dollars per share)	'	'	'	'	$3	'	'
Period of business days over which purchase price of shares of common stock will be determined	'	'	'	'	'	'10 days	'
Floor price for sale of shares of common stock (in dollars per share)	'	'	$2.50	'	'	'	'
Threshold on percentage of outstanding shares of the common stock that can be beneficially owned by counterparty	'	'	'	'	'	'	9.99%
Number of shares of common stock sold	7,019,000	4,723,000	'	772,361,000	'	'	'
Net Proceeds raised by utilizing Equity Line	5.3	'	'	3.2	'	'	'
Amount of net capacity remaining on the ATM	$9.30	'	'	'	'	'	'

CONCENTRATION_OF_CREDIT_RISK_D

CONCENTRATION OF CREDIT RISK (Details) (Revenue, Customer concentration, One third party customer in the U.S)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014
Revenue | Customer concentration | One third party customer in the U.S	'	'
CONCENTRATION	'	'
Concentration risk (as a percent)	76.00%	76.00%

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
				item
COMMITMENTS AND CONTINGENCIES	'	'	'	'
Lease term	'	'	'	'5 years
Number of five-year market value renewals	'	'	'	2
Period of market value renewals	'	'	'	'5 years
Rating class of modular manufacturing clean room, laboratories and office space leased	'	'	'	100,000
Leased office space	'	'	'	'
2014	$1,784,000	$1,784,000	'	'
2015	4,088,000	4,088,000	'	'
2016	4,056,000	4,056,000	'	'
2017	1,196,000	1,196,000	'	'
2018	333,000	333,000	'	'
Total	11,457,000	11,457,000	'	'
Sales force leased auto fleet	'	'	'	'
2014	97,000	97,000	'	'
2015	194,000	194,000	'	'
2016	166,000	166,000	'	'
2017	57,000	57,000	'	'
2018	5,000	5,000	'	'
Total	519,000	519,000	'	'
Total	'	'	'	'
2014	1,881,000	1,881,000	'	'
2015	4,282,000	4,282,000	'	'
2016	4,222,000	4,222,000	'	'
2017	1,253,000	1,253,000	'	'
2018	338,000	338,000	'	'
Total	11,976,000	11,976,000	'	'
Rent expense	600,000	800,000	500,000	300,000
Obligations to pay developmental milestones relating to regulatory and commercialization of MACI	15,800,000	15,800,000	'	'
Amount accrued for payments of potential milestone payments	$0	$0	'	'

SUBSEQUENT_EVENT_Details

SUBSEQUENT EVENT (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014	Jul. 09, 2014	Jul. 09, 2014
In Millions, except Share data, unless otherwise specified			2013 Warrants	Subsequent event	Subsequent event
					2013 Warrants
					item
Subsequent Event	'	'	'	'	'
Number of warrant holders	'	'	'	'	1
Number of shares purchased on exercise of warrants	'	'	1,087,450	'	362,500
Common stock, par value (in dollars per share)	'	'	'	'	'
Exercise price per share (in dollars per share)	'	'	$4.80	'	$4.80
Net proceeds with the exercise of the warrants	'	'	'	'	$1.50
Warrants outstanding	'	'	'	'	724,950
Reduction of warrant liability (as a percent)	'	'	'	'	33.00%