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Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of Sucampo Pharmaceuticals, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingencies at the date of the financial statements as well as the reported amounts of revenues and expense during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company maintains cash balances with financial institutions in excess of insured limits. The Company does not anticipate any losses with such cash balances. Cash equivalents include highly liquid investments with a maturity of

days or less at the time of purchase.

Non-Current Investments

Non-current investments consist primarily of non-marketable equity securities of companies whose securities are not publicly traded and where fair value is not readily available. These investments are measured at fair value on a recurring basis and are monitored by the Company to evaluate whether any decline in their value has occurred that would be other-than temporary, based on the implied value of recent company financings, public market prices of comparable companies and general market conditions.

Accounts Receivable

Accounts receivable primarily represents amounts due under the North America Takeda Agreement and Japan Mylan Agreement. The Company recorded an immaterial allowance for doubtful accounts at

December

31,

2016

and

2015.

Accounts receivable of

zero,

zero

and

$779,000

were charged off against the allowance for doubtful accounts during the years ended

December

31,

2016,

2015

and

2014.

Inventories

Inventories are valued under a weighted average costing method and are stated at the lower of cost or net realizable value. Inventories consist of raw material, work-in-process and finished goods. The Company’s inventories include the direct purchase cost of materials and supplies and manufacturing overhead costs.

Restricted Cash

Restricted cash at

December

31,

2016

consisted of a certificate of deposit pledged to support an operating lease for the Company’s former office facility in Bethesda, Maryland. Restricted cash at

December

31,

2015

consisted primarily of

$25.0

million related to the Credit Facility that required the Company to maintain

$25.0

million in a restricted cash account until at least

$35

million of the Term Loans have been repaid or prepaid (see note

17).

The Term Loans were paid in full in

December

2016

and the restricted cash was subsequently released. Further, as part of the R-Tech acquisition,

$17.7

million was held in a restricted cash account for payment of the Ueno and Kuno Trust Notes, which were settled on

February

2016

(see note

17),

and

$8.2

million was held in restricted cash related to the squeeze out of non-

tendering

R-Tech shareholders, which was settled in

January

2016.

Property and Equipment

Property and equipment are recorded at cost and consist of computer and office equipment, furniture and fixtures, leasehold improvements, buildings, machinery and equipment and construction in progress. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs are charged to earnings as incurred. When assets are sold or retired, the related cost and accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in earnings.

Certain Risks, Concentrations and Uncertainties

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and cash equivalents, restricted cash, and receivables. The Company places its cash, cash equivalents and restricted cash with highly rated financial institutions. As of

December

31,

2016

and

2015,

approximately

$1.2

million, or less than

1.0%,

and

$5.9

million, or

3.6%,

respectively, of the Company’s cash, cash equivalents and restricted cash were issued or insured by the U.S. government or other government agencies. The Company has not experienced any losses on these accounts related to amounts in excess of insured limits.

Revenues from Takeda, an unrelated party, accounted for

63.9%,

63.3%

and

71.3%

of the Company’s total revenues for the years ended

December

31,

2016,

2015

and

2014,

respectively. Accounts receivable and product royalties receivable from Takeda accounted for

69.6%

and

78.1%

of the Company’s total accounts receivable and product royalties receivable at

December

31,

2016

and

2015.

Revenues from another unrelated party, Mylan, accounted for

31.6%,

35.2%

and

27.8%

of the Company’s total revenues for the years ended

December

31,

2016,

2015

and

2014

. Accounts receivable from Mylan accounted for

30.1%

and

21.9%

of the Company’s total accounts receivable and product royalties receivable at

December

31,

2016

and

2015.

The Company depends significantly upon collaborations with Takeda and Mylan, and its activities

may

be impacted if these relationships are disrupted (see note

19).

Fair Value of Financial Instruments

The carrying values of the Company’s financial instruments approximate their fair values due to their short maturities, independent valuations or internal assessments. The Company’s financial instruments include cash and cash equivalents, restricted cash, receivables, accounts payable and other accrued liabilities. The Company’s investment in CPP is measured at fair value on a recurring basis, and the Company estimates the fair value of its long term debt based on similar types of borrowings.

Variable Interest Entities

The Company performs initial and on-going evaluations of the entities with which it has variable interests, such as equity ownership, in order to identify entities (i) that do not have sufficient equity investment at risk to permit the entity to finance its activities without additional subordinated financial support or (ii) in which the equity investors lack an essential characteristic of a controlling financial interest. Such entities are classified as variable interest entities (VIEs). If an entity is identified as a VIE, the Company performs an assessment to determine whether the Company has both (i) the power to direct activities that most significantly impact the VIE’s economic performance and (ii) have the obligation to absorb losses from or the right to receive benefits of the VIE that could potentially be significant to the VIE. If both of these criteria are satisfied, the Company is identified as the primary beneficiary of the VIE. As of

December

31,

2016,

Cancer Prevention Pharmaceuticals, Inc. (“CPP”), in which the Company held a variable interest, was determined to be a VIE. See note

for additional information.

Revenue Recognition

The Company’s revenues are derived primarily from product royalties, product sales, development milestone payments, clinical development activities, and contract and collaboration activities.

Multiple-Element Arrangements

The Company evaluated the multiple deliverables within the AMITIZA agreements in accordance with the guidance of multiple deliverables under ASC

605

“

Revenue Recognition — Multiple-Element Arrangements”

to determine whether the deliverables can be separated for revenue recognition purposes. The separation criteria include whether the deliverables have standalone value and whether objective reliable evidence of fair value exists. 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. The appropriate recognition of revenue is then applied to each separate unit of accounting. The Company’s deliverables under AMITIZA agreements are more fully described in note

below.

Where agreements include contingent milestones, the Company evaluates whether each milestone is substantive. Milestones are considered substantive if all of the following conditions are met:

(1)

it is commensurate with either our performance to meet the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the our performance to achieve the milestone,

(2)

it relates solely to past performance, and

(3)

the value of the milestone is reasonable relative to all the deliverables and payment terms (including other potential milestone consideration) within the arrangement. Where milestones are not considered substantive their treatment is based on either a time-based or proportional performance model.

Research and Development Revenue

The Company applied a time-based model of revenue recognition for cash flows associated with research and development deliverables agreed upon prior to

January

2011

under the North America Takeda Agreement. Under this model, cash flow streams related to each unit of accounting are recognized as revenue over the estimated performance period. Upon receipt of cash payments, such as development milestones, revenue is recognized to the extent the accumulated service time has occurred. The remainder is deferred and recognized as revenue ratably over the remaining estimated performance period.

For research and development deliverables agreed upon subsequent to

January

2011

under the North America Takeda agreement, which are reimbursable by Takeda at contractually predetermined percentages, the Company recognizes revenue when the underlying research and development expenses are incurred, assuming all other revenue recognition criteria are met.

Product Royalty Revenue

Product royalty revenue represents royalty revenue earned on Takeda’s net sales of AMITIZA under the North America Takeda Agreement, and is recorded when earned in accordance with the contractual terms, collectability is reasonably assured and all other revenue recognition criteria are met.

Product Sales Revenue

Product sales revenue consists of AMITIZA sales under the Japan Mylan Agreement, the North America Takeda Agreement, Global Takeda Agreement, and prior to the Global Takeda Agreement, by the Company in Europe, and RESCULA sales to Santen in Japan and by the Company in the U.S. Revenue from product sales is recognized when persuasive evidence of an arrangement exists, delivery has occurred, title to product and associated risk of loss have passed to the customer, the price is fixed or determinable, and collection from the customer is reasonably assured. The Company did not record sales deductions and returns for product sales due to the absence of discounts and rebates and the lack of right of return.

Co-promotion Revenue

Takeda reimbursements of co-promotion costs under the North America Takeda Agreement, including costs associated with the Company’s specialty sales force and miscellaneous marketing activities, are recognized as co-promotion revenue as the related costs are incurred and Takeda becomes contractually obligated to pay the amounts. The Company has determined that it is acting as a principal under this agreement, and as such, records reimbursements of these amounts on a gross basis as co-promotion revenue. In

December

2014,

the Company ceased co-promoting AMITIZA as a result of the amendment to the North America Takeda Agreement.

Contract and Collaboration Revenue

Contract and Collaboration revenue relates to development and consulting activities and includes the recognition of the

$14.0

million upfront payment received from Takeda in

2014

under the Global Takeda Agreement, of which the Company was obligated to reimburse Takeda for the

first

$6.0

million in developmental expenses incurred by Takeda. Of the

$14.0

million upfront payment, the Company recognized

$5.6

million in

2016,

$400,000

2015,

and

$8.0

million in

2014.

The Company considers its participation in joint committees under the Japan Mylan Agreement and North America Takeda Agreement as separate deliverables under the contracts and recognizes the best estimate of selling price of such participation as collaboration revenue over the period of the participation per the terms of the contracts.

Deferred Revenue

Deferred revenue represents payments received for licensing fees, option fees, consulting, research and development contracts and related cost sharing and supply agreements, mainly with Takeda and Mylan, which are deferred until revenue can be recognized under the Company’s revenue recognition policy. At

December

31,

2016

and

2015,

total deferred revenue was approximately

$2.1

million and

$1.8

million, respectively.

Total deferred revenue consisted of the following as of:

	December 31,
(In thousands)	2016		2015
Deferred revenue, current	$	1,315	$	676
Deferred revenue, non-current		805		1,088
Total deferred revenue	$	2,120	$	1,764

Stock-Based Compensation

The Company estimates the fair value of option awards on the date of the grant using an option-pricing model. The Company estimates the fair value of restricted stock units on the date of the grant using the market price of the Company’s common stock. Stock-based compensation expense is recognized over the required service periods.

For recording the stock-based compensation expense for service based and market condition options, the Company has chosen to use:

the straight-line method of allocating compensation cost for service based options and graded vesting for market condition options;

the Black-Scholes-Merton option pricing formula for time based options and the Monte Carlo simulation model for the market condition options as the Company’s chosen option-pricing models;

the simplified method to calculate the expected term for options as discussed under the SEC’s guidance for share-based payments for service based options;

an estimate of expected volatility based on the historical volatility of the Company’s share price; and

an estimate for expected forfeitures.

The

three

factors which most affect stock-based compensation are the fair value of the common stock underlying the stock options, the vesting term of the options, and the volatility of such fair value of the underlying common stock. If the Company’s estimates are too high or too low, the Company

may

overstate or understate its stock-based compensation expense.

Mergers and Acquisitions

In a business combination, the acquisition method of accounting requires that the assets acquired and liabilities assumed be recorded as of the date of the merger or acquisition at their respective fair values. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Accordingly, the Company

may

be required to value assets at fair value measures that do not reflect our intended use of those assets. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired business are reflected in our consolidated financial statements after the date of the merger or acquisition. If the Company determines the assets acquired do not meet the definition of a business under the acquisition method of accounting, the transaction will be accounted for as an acquisition of assets rather than a business combination and, therefore, no goodwill will be recorded. The fair values of intangible assets, including acquired in-process research and development (“IPR&D”) are determined utilizing information available near the merger or acquisition date based on expectations and assumptions of a market participant that are deemed reasonable by management. Given the considerable judgment involved in determining fair values, the Company typically obtains assistance from

third

-party valuation specialists for significant items. Amounts allocated to acquire IPR&D are capitalized and accounted for as indefinite-lived intangible assets. Upon successful completion of each project, the Company will make a separate determination as to the then useful life of the asset and begin amortization. The judgments made in determining estimated fair values assigned to assets acquired and liabilities assumed in a business combination, as well as asset lives, can materially affect the Company's results of operations.

The fair values of identifiable intangible assets related to currently marketed products and product rights are primarily determined by using an "income approach" through which fair value is estimated based on each asset's discounted projected net cash flows. Our estimates of market participant net cash flows consider historical and projected pricing, margins and expense levels; the performance of competing products where applicable; relevant industry growth drivers and factors; current and expected trends in technology and product life cycles; the time and investment that will be required to develop products and technologies; the ability to obtain marketing and regulatory approvals; the ability to manufacture and commercialize the products; the extent and timing of potential new product introductions by the Company's competitors; and the life of each asset's underlying patent, if any. The net cash flows are then probability-adjusted where appropriate to consider the uncertainties associated with the underlying assumptions, as well as the risk profile of the net cash flows utilized in the valuation. The probability-adjusted future net cash flows of each product are then discounted to present value utilizing an appropriate discount rate.

The fair values of identifiable intangible assets related to IPR&D are determined using an income or cost approach. Under the income approach fair value is estimated based on each asset's probability-adjusted future net cash flows, which reflect the different stages of development of each product and the associated probability of successful completion. The net cash flows are then discounted to present value using appropriate discounts. Under the replacement cost approach, historical research and development spending is analyzed to derive the costs incurred to date related to the asset. An expected return of

20%

was applied to the cumulative mid-year pre-tax research and development costs incurred to date, as this estimates the required rate of a return a prudent investor would require on a similarly situated asset. An adjustment was not made for economic obsolescence as the costs considered are historical and the method applied is considering the estimate of fair value to buy the asset in the market at its current stage of development. No tax amortization benefit has been applied given the asset is valued under the replacement cost approach, which is representative of buying the asset in the market at fair value.

Goodwill

The Company assesses the carrying value of goodwill on an annual basis, or whenever events or changes in circumstances indicate the carrying value of goodwill

may

not be recoverable to determine whether any impairment in this asset

may

exist and, if so, the extent of such impairment. The provisions of the relevant accounting guidance require that the Company perform a

two

-step impairment test. In the

first

step, the Company compares the fair value of its reporting unit to the carrying value. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the

second

step of the impairment test is performed in order to determine the implied fair value of the reporting unit's goodwill. If the carrying value of the reporting unit's goodwill exceeds its implied fair value, an impairment loss equal to the difference is recognized. The Company calculates the fair value of the reporting unit utilizing the income approach. The income approach utilizes a discounted cash flow model, using a discount rate based on the Company's estimated weighted average cost of capital. The Company also evaluates goodwill using the qualitative assessment method, which permits companies to qualitatively assess whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. The Company considers developments in its operations, the industry in which it operates and overall macroeconomic factors that could have affected the fair value of the reporting unit since the date of the most recent quantitative analysis of a reporting unit's fair value. As described in note

to these consolidated financial statements, the Company operates as

one

operating segment which is considered our only reporting unit.

The determination of the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. The estimates and assumptions used in calculating fair value include identifying future cash flows, which requires that the Company makes a number of critical legal, economic, market and business assumptions that reflect best estimates as of the testing date. The Company's assumptions and estimates

may

differ significantly from actual results, or circumstances could change that would cause the Company to conclude that an impairment now exists or that it previously understated the extent of impairment. The Company selected

October

as its annual impairment test date.

Research and Development Expenses

Research and development costs are expensed in the period in which they are incurred and include the expenses from

third

parties who conduct research and development activities pursuant to development and consulting agreements on behalf of the Company. Costs related to the acquisition of intellectual property are expensed as incurred in research and development expenses since the underlying technology associated with such acquisitions is unproven, has not received regulatory approval at its early stage of development and does not have alternative future uses. Milestone payments due under agreements with

third

party contract research organizations (CROs) are accrued when it is considered probable that the milestone event will be achieved.

Accrued Research and Development Expenses

As part of the process of preparing Consolidated Financial Statements, the Company is required to estimate accruals for research and development expenses. This process involves reviewing and identifying services which have been performed by

third

parties on the Company’s behalf and determining the value of these services. In addition, the Company makes estimates of costs incurred to date but not yet invoiced, in relation to external CROs and clinical site costs. The Company analyzes the progress of clinical trials, including levels of patient enrollment; invoices received and contracted costs, when evaluating the adequacy of the accrued liabilities for research and development. The Company makes significant judgments and estimates in determining the accrued balance in any accounting period. No material adjustments have been required for this accrual during the years ended

December

31,

2016,

2015

and

2014.

Income Taxes

The Company accounts for income taxes under the asset and liability method in accordance with the relevant accounting guidance for income taxes. Under the asset and liability method, the current income tax provision or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carry-forwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax rate changes are reflected in the income tax provision during the period such changes are enacted. Changes in ownership

may

limit the amount of net operating loss (NOL) carry-forwards that can be utilized in the future to offset taxable income. The Company’s discussion of income tax is described more fully under note

found below.

September

2011,

the Company internally transferred certain intellectual property and licenses from the Company’s subsidiaries, including the U.S. based subsidiary, to SAG. Since the transfer of these assets was to a related party, the recognition of a deferred tax asset by SAG is prohibited and the net tax effect of the transaction is deferred in consolidation. The tax liability generated from this transaction is offset by a deferred charge that is being amortized over

ten

years. As of

December

31,

2016,

2015

and

2014,

the total deferred charge is

$0.1

million,

$1.7

million and

$2.0

million, respectively, after a net current year amortization and impairment expense of

$1.6

million,

$0.3

million and

$3.2

million, respectively. Impairment expense in

2016

was primarily a result of the cessation of commercialization activities for the use of cobiprostone for Oral Mucositis. Impairment expense included in the

$3.2

million for

2014

totaled

$1.8

million and resulted from the cessation of direct commercialization activities for RESCULA in

2014.

For all significant intercompany transactions, the Company’s management has evaluated the terms of the transactions using significant estimates and judgments to ensure that each significant transaction would be on similar terms if the Company completed the transaction with an unrelated party. Although the Company believes there will be no material tax liabilities to the Company as a result of multi-jurisdictional transactions, there can be no assurance that taxing authorities will not assert that transactions were entered into at monetary values other than fair values. If such assertions were made, the Company’s intention would be to vigorously defend its positions; however, there can be no assurance that additional liabilities

may

not occur as a result of any such assertions.

The Company considers certain undistributed earnings of foreign subsidiaries to be indefinitely reinvested outside of the U.S. and, accordingly, no U.S. deferred taxes have been recorded under the applicable accounting standard with respect to such earnings. Should the earnings be remitted to the U.S., the Company

may

be subject to additional U.S. taxes, net of allowable foreign tax credits. It is not practicable to estimate the amount of any additional taxes which

may

be payable on the undistributed earnings.

Uncertain Tax Positions

The Company applies the accounting guidance for uncertain tax positions that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, the Company recognizes a tax benefit measured at the largest amount of the tax benefit that, in its judgment, is more than

50%

likely to be realized upon settlement.

The Company has recorded an income tax liability of approximately

$4.1

million and

$2.9

million, including interest, for uncertain tax positions as of

December

31,

2016

and

2015,

respectively.

As of

December

31,

2016

and

2015,

the entire balance was reflected as other liabilities in the accompanying Consolidated Balance Sheets. These amounts represent the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s Consolidated Financial Statements.

The Company recognizes interest and penalties related to uncertain tax positions as a component of the income tax provision. It is reasonably possible that the

$1.6

million of the liability for unrecognized tax benefits will decrease within the next

months. In addition, future changes in the unrecognized tax benefits would have an effect on the effective tax rate when recognized.

Currently, tax years

2012

2015

remain open and subject to examination in the major tax jurisdictions in which tax returns are filed.

Foreign Currency

The functional currency for most of the Company’s non-U.S. subsidiaries is the U.S. Dollar. For those non-U.S. subsidiaries that transact in a functional currency other than the U.S. dollar, assets and liabilities are translated at current exchange rates as of the balance sheet date, and income and expense items are translated at average exchange rates for the period. Adjustments resulting from the translation of the financial statements of our foreign operations into U.S. dollars are excluded from the determination of net income and are recorded in accumulated other comprehensive income, a separate component of equity. For subsidiaries where the functional currency is the U.S. dollar, non-monetary assets and liabilities are translated at the exchange rates in effect on the date the non-monetary assets and liabilities were acquired, while monetary assets and liabilities are translated at current exchange rates as of the balance sheet date. Income and expense items are translated at the average exchange rates for the period. Translation adjustments of these subsidiaries are included in net income.

For the year ended

December

31,

2016,

the Company recorded a foreign currency exchange loss of

$11.3

million, which is included in other income (expense), net on the Consolidated Statements of Operations and Comprehensive Income.

Realized and unrealized foreign currency gains or losses on assets and liabilities denominated in a currency other than the functional currency are included in net income.

Other Comprehensive Income

Comprehensive income consists of net income plus certain other items that are recorded directly to stockholders’ equity. The Company has reported comprehensive income in the Consolidated Statements of Operations and Comprehensive Income.

The Company has outstanding intercompany loans and investments between its subsidiaries which are eliminated for purposes of the Consolidated Financial Statements. These intercompany loans are not expected to be repaid or settled in the foreseeable future. Accordingly, the currency transaction gains or losses on these intercompany loans are recorded as part of other comprehensive income in the Consolidated Financial Statements. In addition, the actuarial gains and losses of the Swiss Pension plan are recorded in comprehensive income.

Recent Accounting Pronouncements

May

2014,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2014

09,

“Revenue from Contracts with Customers”, which will replace numerous requirements in U.S. GAAP, including industry-specific requirements. This guidance provides a

five

-step model to be applied to all contracts with customers, with an underlying principle that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. ASU No.

2014

requires extensive quantitative and qualitative disclosures covering the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including disclosures on significant judgments made when applying the guidance. This guidance is effective for annual reporting periods beginning after

December

15,

2017

and interim periods therein. Early adoption is permitted for reporting periods and interim periods therein, beginning after

December

15,

2016.

An entity can elect to apply the guidance under

one

of the following

two

methods: (i) retrospectively to each prior reporting period presented – referred to as the full retrospective method or (ii) retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earning – referred to as the modified retrospective method.

While the Company has not yet completed its final review of the impact of the new standard, the adoption of ASU

2014

could potentially have the following impacts to our contracts:

(i)

Variable consideration including milestone payments, escalating royalty payments based on volume, and product sales price adjustments

may

be recognized at an earlier point in time under the new guidance, when it is probable that the variable consideration will be achieved without a significant future reversal of cumulative revenue expected.

(ii)

Expense reimbursement revenue of certain R&D projects

may

result in a change in presentation.

The Company has not yet completed its final review of the impact of this guidance and continues to evaluate the impact of adoption and the implementation approach to be used. The Company plans to adopt the new standard effective

January

2018,

and will continue to monitor additional changes, modifications, clarifications or interpretations by the FASB, which

may

impact the Company’s current conclusions.

August

2014,

the FASB issued ASU No.

2014

15,

“Presentation of Financial Statements—Going Concern,” to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about our ability to continue as a going concern within

one

year from the date the financial statements are issued. This guidance is effective for the annual period ending after

December

15,

2016,

and for annual periods and interim periods thereafter. Early application is permitted. The Company has adopted ASU No.

2014

15,

and the adoption had no impact on our consolidated financial statements.

February

2015,

the FASB issued ASU No.

2015

02,

“Amendments to the Consolidation Analysis,” which affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. The amendments place more emphasis in the consolidation evaluation on variable interests other than fee arrangements such as principal investment risk (including debt or equity interests), guarantees of the value of the assets or liabilities of the variable interest entity (“VIE”), written put options on the assets of the VIE, or similar obligations. Additionally, the amendments reduce the extent to which related party arrangements cause an entity to be considered a primary beneficiary. This guidance is to be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The amendments are effective for fiscal years beginning after

December

15,

2015,

and interim periods therein. The Company has adopted ASU No.

2015

and the adoption had no impact on our consolidated financial statements.

February

2016,

the FASB issued ASU No.

2016

02,

“Leases,” that requires lessees to recognize assets and liabilities on the balance sheet for most leases including operating leases. Lessees now classify leases as either finance or operating leases and lessors classify all leases as sales-type, direct financing or operating leases. The statement of operations presentation and expense recognition for lessees for finance leases is similar to that of capital leases under Accounting Standards Codification (“ASC”)

840

with separate interest and amortization expense with higher periodic expense in the earlier periods of a lease. For operating leases, the statement of operations presentation and expense recognition is similar to that of operating leases under ASC

840

with single lease cost recognized on a straight-line basis. This guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements and is effective for annual periods beginning after

December

15,

2018

and interim periods therein. Early adoption is permitted. The Company is currently analyzing the impact of ASU No.

2016

02,

and is currently unable to determine the impact of the new standard, if any, on the Company’s consolidated financial statements.

March

2016,

the FASB issued ASU No.

2016

09,

“Improvements to Employee Share-Based Payment Accounting,” which changes the accounting for certain aspects of share-based payments to employees. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the statement of operations when the awards vest or are settled. In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. The standard also clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on the statement of cash flows, and provides an accounting policy election to account for forfeitures as they occur. The new standard is effective for the Company’s calendar year beginning

January

2017.

The Company is currently analyzing the impact of ASU No.

2016

09,

and is currently unable to determine the impact of the new standard, if any, on the Company’s consolidated financial statements.

August

2016,

the FASB issued ASU No.

2016

15,

“Classification of Certain Cash Receipts and Cash Payments,” which clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows to eliminate diversity in practice. ASU

2015

provides that cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities. The new standard is effective for fiscal years beginning after

December

15,

2017

and interim periods therein. Early adoption is permitted. The Company elected to early adopt ASU No.

2017

for the annual period ending

December

31,

2016.

The adoption required the Company to classify debt extinguishment costs as financing as opposed to operating in the consolidated statement of cash flows.

October

2016,

the FASB issued ASU No.

2016

16,

“Intra-Entity Transfers of Assets Other Than Inventory,” which requires companies to account for the income tax effects of intercompany sales and transfers of assets other than inventory in the period in which the transfer occurs. The new standard is effective for public business entities for annual periods beginning after

December

15,

2017.

Early adoption is permitted for all entities as of the beginning of an annual period. The guidance is to be applied using a modified retrospective approach with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. The Company is currently analyzing the impact of ASU No.

2016

on its consolidated financial statements.

November

2016,

the FASB issued ASU No.

2016

18,

“Restricted Cash,” which requires entities to show the changes in total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than

one

line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions on the balance sheet. The reconciliation can either be presented either on the face of the statement of cash flows or in the notes to the financial statements. The new standard is effective for public business entities for fiscal years beginning after

December

15,

2017

and interim periods therein and is to be applied retrospectively. Early adoption is permitted. The Company is currently analyzing the impact of ASU No.

2016

on its consolidated financial statements.

January

2017,

the FASB issued ASU No.

2017

01,

“Business Combinations,” which requires entities to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. The new standard is to be applied prospectively to any transactions occurring within the period of adoption and is effective for public business entities for fiscal years beginning after

December

15,

2017.

Early adoption is permitted, including annual periods in which the financial statements have not been issued. The Company elected to early adopt ASU No.

2017

for the annual period ending

December

31,

2016.

The adoption had no impact on the Company’s consolidated financial statements.

Note 3 - Net Income Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Text Block]

Net Income per Share

Basic net income per share is computed by dividing net income by the weighted average common shares outstanding. Diluted net income per share is computed by dividing net income by the sum of the weighted average common shares and potential dilutive common shares outstanding. The treasury-stock method is used to determine the dilutive effect of the Company’s stock option grants, and the if-converted method is used to determine the dilutive effect of the Company’s Convertible Notes.

The computation of net income per share for the years ended

December

31,

2016,

2015

and

2014

is shown below:

	Year Ended December 31,
(In thousands, except per share data)	2016		2015		2014
Basic net income per share:
Net income	$	18,487	$	33,371	$	13,128
Weighted-average number of common shares-basic		42,791		44,150		43,691

Basic net income per share	$	0.43	$	0.76	$	0.30

Diluted net income per share:
Net income	$	18,487	$	33,371	$	13,128
Interest expense applicable to convertible debt, net of tax		64		-		-
Amortization of debt issuance costs, net of tax		12		-		-
Net income for calculation of diluted net income per share		18,563		33,371		13,128

Weighted-average number of common shares-basic		42,791		44,150		43,691
Assumed exercise of stock options under the treasury-stock method		711		1,530		815
Assumed shares under if-converted method		247		-		-
Weighted-average number of common shares-diluted		43,749		45,680		44,506

Diluted net income per share	$	0.42	$	0.73	$	0.29

The potentially dilutive securities used in the calculations of diluted net income per share at

December

31,

2016,

2015

and

2014

were as follows:

	December 31,
(In thousands)	2016		2015		2014
Employee stock options		2,400		3,290		1,124
Non-employee stock options		-		-		255

The following securities were excluded from the computation of diluted net income per share as their effect would be anti-dilutive during the years ended

December

31,

2016,

2015

and

2014:

	December 31,
(In thousands)	2016		2015		2014
Employee stock options		2,387		1,188		3,012

Note 4 - Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting Disclosure [Text Block]

Segment Information

In the

first

quarter of

2015,

the Company made several strategic and operational changes to its business, including re-evaluating and accelerating its pipeline to focus on clinical programs that it believes hold the most promise for patients, the highest likelihood for regulatory approval, and the strongest potential for commercial return. Because of such changes, the Company combined its reportable geographic segments of Asia, the Americas and Europe into

one

operating segment: the development and commercialization of pharmaceutical products. This change reflects the manner in which information is now being presented internally and used by the Company’s chief operating decision maker, the Company’s Chief Executive Officer, to allocate resources and assess performance.

Summarized product category and geographic information is shown in the tables below.

Product Category Information

Revenues for product categories are attributed based on the following categories.

Product royalty revenue represents royalty revenue earned on the net sales of AMITIZA in North America. Product sales revenue represents drug product net sales of AMITIZA in North America, Japan and Europe and drug product net sales of RESCULA in Japan. Research and development revenue represents funded development work primarily related to AMITIZA. Contract and collaboration revenue represents the amortization of up-front payments under the North America Takeda Agreement and release of the collaboration obligation under the Global Takeda agreement. Co-promotion revenue represents reimbursements by Takeda of a portion of the Company’s co-promotion costs for its specialty sales force.

Company revenues by product category for the years ended

December

31,

2016,

2015

and

2014

were as follows:

	Years Ended December 31,
(In thousands)	2016		2015		2014
Product royalty revenue	$	82,480	$	74,138	$	62,775
Product sales revenue		128,796		66,276		33,252
Research and development revenue		12,839		10,199		7,246
Contract and collaboration revenue		5,941		2,567		8,817
Co-promotion revenue		-		-		3,360
Total	$	230,056	$	153,180	$	115,450

Geographical Information

Revenues are attributable to countries based on the location of the customer. The Company operates a manufacturing facility in Japan that supplies products to customers as well as the Company’s subsidiaries in other countries. The sales from the manufacturing operations to other countries are included in the net sales of the country in which the manufacturing location is based. The intersegment portions of such sales are excluded to derive consolidated revenues. The Company’s country of domicile is the United States.

Company revenues by geographic location for the years ended

December

31,

2016,

2015

and

2014

were as follows:

	Years Ended December 31,
(In thousands)	2016		2015		2014
United States	$	140,240	$	95,769	$	74,688
Japan		83,130		55,371		32,128
Rest of the world		6,686		2,040		8,634
Total	$	230,056	$	153,180	$	115,450

The Company’s long-lived assets by geographic location where located on

December

31,

2016,

2015

and

2014

were as follows:

	December 31,
(In thousands)	2016		2015		2014
United States	$	3,065	$	3,105	$	566
Japan		3,119		3,232		114
Rest of the world		32		56		83
Total	$	6,216	$	6,393	$	763

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 280
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-Paragraph 35
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Note 5 - Acquisition of R-Tech

12 Months Ended

Dec. 31, 2016

Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block]

Acquisition of R-Tech

August

2015,

the Company entered into a share purchase agreement with Drs. Ryuji Ueno and Sachiko Kuno and S&R Technology Holdings, LLC, to acquire

44%

of outstanding R-Tech shares. The total purchase price for these shares was

1,400

Japanese Yen (“JPY”) per share, or

billion JPY in the aggregate, or approximately

$100.0

million.

August

2015,

the Company launched, through its wholly-owned Japanese subsidiary (the “Offeror”), an all-cash

tender

offer in Japan to acquire the remaining

56%

of the outstanding shares and stock acquisition rights of R-Tech for

1,900

JPY per share, resulting in a total consideration of up to

billion JPY, or approximately

$175.0

million. The price offered in the

tender

offer reflected that R-Tech held approximately

$62.1

million in cash and

2.5

million shares of the Company’s common stock as of the commencement of the

tender

offer.

October

20,

2015,

the transactions contemplated by the share purchase agreement were completed, and the

tender

offer was concluded. As a result of these transactions, the Company acquired approximately

98%

of R-Tech’s outstanding shares. The Company acquired the remaining

of outstanding shares of R-Tech through a squeeze-out process under Japanese law on

December

2015

for total consideration of

926

JPY million, or approximately

$7.7

million. This acquisition diversified the product portfolio, expanded the Company’s development pipeline and integrated the manufacturing of the Company’s main product, AMITIZA.

This transaction was accounted for under the acquisition method of accounting, with the Company as the acquirer. Under the acquisition method of accounting, the assets and liabilities of R-Tech were recorded as of the acquisition date at their respective fair values, and combined with those of the Company.

The final allocation of the purchase price based upon estimated fair value of assets acquired and liabilities assumed on

October

20,

2015

is as follows:

(In thousands)
Cash	$	62,097
Accounts receivable		8,299
Inventory (i)		37,563
Prepaid expenses		3,792
Property, plant and equipment		2,796
Other long term assets		449
Accounts payable and accrued liabilities		(11,598	)
Income tax payable		(5,025	)
Other liabilities, current		(3,282	)
Deferred tax liability, net		(63,365	)
Other liabilities, long termW		(9,347	)
R-Tech shares of Sucampo stock (treasury stock)		43,956
Total fair value of tangible assets acquired and liabilities assumed		66,335
Acquired in-process research and development		6,200
Acquired intangible assets		134,600
Goodwill		61,618
Total purchase price	$	268,753

Total purchase price	$	268,753
Settlement of net receivable from pre-existing relationship		6,364
Total consideration	$	275,117

Acquisition, net of acquired cash	$	161,187
Acquired cash		62,097
Purchase of treasury stock		43,956
Squeeze out liability for non-tendering R-Tech shareholders		7,668
Other		209
Total consideration	$	275,117

(i) Acquired inventory includes a

$20.1

million adjustment to record inventory at fair value, referred to as a step-up adjustment. The

$20.1

million step-up adjustment was recognized through costs of goods sold in alignment with inventory turnover. The recognition of the inventory step-up adjustment increased costs of goods sold during those periods. For the years ended

December

31,

2016

and

2015,

the Company recognized

$15.2

million and

$5.8

million, respectively, in additional costs of goods sold related to the recognition of the inventory step-up adjustment.

The estimated fair value of intangible assets acquired and related estimated amortization periods in years is as follows:

(In thousands)	As of October 20, 2015		Amortization period in years

Acquired in-process research and development	$	6,200		Indefinite
Acquired intangible assets:
AMITIZA - manufacturing know-how		120,200		14
RESCULA - manufacturing know-how		14,400		10
	$	134,600

IPR&D acquired from R-Tech is related to

two

product candidates, RTU-

009

and RTU-

1096.

Management estimated the fair value of IPR&D at the acquisition date to be

$6.2

million. The estimated fair value was determined using the replacement cost approach. Under the replacement cost approach, historical research and development spending is analyzed to derive the costs incurred to date related to the asset. An expected return of

20%

The Company estimated the fair values of the AMITIZA manufacturing know-how intangible asset and RESCULA manufacturing know-how intangible asset using the income approach with a present value discount rate of

18%,

which is based on the estimated weighted-average cost of capital for companies with profiles substantially similar to that of R-Tech and the Company. This is comparable to the estimated internal rate of return for the acquisition and presents the rate that market participants would use to value these intangible assets. The projected cash flows from the AMITIZA manufacturing know-how intangible asset and RESCULA manufacturing know-how intangible asset were based on key assumptions including estimates of revenues, operating profits, the life of the potential commercialized product, associated risks, and the risks related to the viability of and potential alternative use in any future markets.

The weighted average amortization period of the intangible assets from the R-Tech acquisition is

months which is reflective of expected cash flows. The manufacturing know-how intangible assets are based on the manufacturing rights related to the Company’s AMITIZA and RESCULA agreements. Under these agreements, the maximum contractual cash flow periods for RESCULA and AMITIZA were up to

years and

years, respectively. The agreement with the largest projected cash flows had a period of

five

years, which reduced the weighted average amortization period to

months. For the years ended

December

31,

2016

and

2015,

the Company recorded amortization expense of

$25.7

million and

$3.7

million, respectively, all of which has been recorded in costs of goods sold in the Consolidated Statements of Operations and Comprehensive Income.

The Company recorded approximately

$61.6

million in goodwill related to the acquisition of R-Tech, representing the purchase price paid in the acquisition that was in excess of the fair value of the tangible and intangible assets acquired. None of the goodwill generated from R-Tech acquisition is expected to be deductible for tax purposes.

The Company incurred transaction costs related to the R-Tech acquisition of

$5.2

million for the year ended

December

31,

2015,

all of which was recorded in general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income.

For the year ended

December

31,

2015,

R-Tech contributed revenues and net loss to the Company’s consolidated results of

$11.8

million and

$4.7

million, respectively.

Note 6 - Restructuring

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities Disclosure [Text Block]

Restructuring

December

2015,

the Company adopted a plan to restructure certain of its operations and to consolidate certain functions in the Company’s corporate headquarters located in Rockville, Maryland and in the Company’s Japanese subsidiaries. The restructuring plan primarily included headcount reductions due to the ongoing integration of R-Tech (see note

5).

In connection with these restructuring activities, the Company recorded restructuring charges of

$2.4

million and

$953,000

for the years ended

December

31,

2016

and

2015,

respectively. These costs are reflected within operating expenses and are detailed below:

	Years ended December 31,
(In thousands)	2016		2015
Termination benefits	$	1,802	$	953
Asset impairments		183		-
Contract and other costs		365		-
Total	$	2,350	$	953

December

31,

2016

and

2015,

a restructuring accrual of

$163,000

and

$851,000,

respectively, was included in accrued liabilities. The following table summarizes the accrued restructuring costs at

December

31,

2016

and

2015:

(In thousands)	Accrued Restructuring
Balance at December 31, 2014	$	-
Expenses incurred		953
Amounts paid		(102	)
Balance at December 31, 2015	$	851
Expenses incurred	$	2,167
Amounts paid		(2,869	)
Foreign currency translation adjustment		14
Balance at December 31, 2016	$	163

Note 7 - Non-current Investment	12 Months Ended
Note 7 - Non-current Investment	Dec. 31, 2016
Notes to Financial Statements
Investment [Text Block]	7. Non-Current Investments Investment in CPP On January 9, 2016, the Company entered into a Securities Purchase Agreement (“CPP Securities Agreement”) and an Option and Collaboration Agreement (“CPP Agreement”) with CPP for the development and commercialization of CPP- 1X/sulindac combination. Under the terms of the CPP Securities Agreement, the Company provided $5.0 million to CPP in exchange for a convertible note. The convertible note bears interest at the rate of 5% per annum and matures on January 31, 2019 unless earlier converted or prepaid. The convertible note is automatically convertible into securities of CPP, subject to certain limitations, in the event CPP consummates a future financing with aggregate proceeds of at least $10.0 million, exclusive of any investment by the Company, whether through a public offering or a private offering (a “Qualified Financing”). Depending on the timing of the Qualified Financing, the convertible note will automatically convert into the same securities issued in the Qualified Financing at a 10% to 20% discount to the lowest issuance price of the securities in the Qualified Financing. The Company has also agreed to purchase up to $5.0 million of CPP’s securities in any such Qualified Financing. Under the terms of the CPP Agreement, CPP granted the Company the sole option to acquire an exclusive license to commercialize CPP- 1X/Sulindac combination product in North America. This product is currently in a Phase 3 clinical trial for the treatment of familial adenomatous polyposis (FAP). Target enrollment in the study was achieved in April 2016 and the trial is expected to conclude in 2018. The Company will pay CPP an option fee of $7.5 million, payable in two tranches. The first tranche of $3.0 million was paid in January 2016 and was recorded as research and development expense. The second tranche of $4.5 million is due upon achievement of certain results of the ongoing feasibility study. CPP will complete the ongoing Phase 3 trial under the oversight of a joint steering committee between CPP and the Company. Upon exercise of its exclusive option, the Company would negotiate an exclusive license to develop and commercialize the product in North America for all indications. In connection with the exercise of the option right, the subsequent execution of a license agreement and the development and commercialization of the product, the Company would be obligated to pay CPP up to an aggregate of $190.0 million of specified clinical development and sales milestones. Under the terms of the license, the Company and CPP would share equally in net profits from the sale of licensed products. CPP is considered to be a VIE with respect to the Company. It has been determined that the power to direct the activities that most significantly impact CPP’s economic performance is held by the board of directors of CPP. The Company does not have a representative on CPP’s board and does not have the right to appoint or elect such a representative. Therefore, the Company is not the primary beneficiary of CPP, and the entity is not consolidated with the financial statements of the Company. The Company’s maximum exposure to loss as a result of its involvement with CPP is $5.2 million as of December 31, 2016, which, is the investment in the convertible note of $5.2 million. As of September 30, 2016, CPP had total assets of $4.7 million and total liabilities of $20.6 million. The Company has elected the fair value option on the convertible note received from CPP due to the nature of the financial characteristics of the investment. As of December 31, 2016, the fair value of the convertible note is $5.2 million.

Note 8 - Fair Value Measurements	12 Months Ended
Note 8 - Fair Value Measurements	Dec. 31, 2016
Notes to Financial Statements
Fair Value, Measurement Inputs, Disclosure [Text Block]	8. Fair Value Measurements The Company performs fair value measurements in accordance with the FASB’s guidance for fair value measurements and disclosures, which defines fair value as the exchange price that would be received for selling 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. A fair value hierarchy is established which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company classifies its investments into the following categories based on the three levels of inputs used to measure fair value: Level 1 : Observable inputs, such as quoted prices in active markets for identical assets or liabilities; Level 2 : Inputs, other than the quoted price in active markets, that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities 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; or Level 3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying values of cash and cash equivalents, restricted cash, accounts receivable, product royalties receivable, accounts payable and other accrued liabilities, approximate their fair values due to their short maturities. The Company has elected the fair value option on its investment in CPP (see note 7); as such, it is measured at fair value on a recurring basis. At December 31, 2016, the fair value of the investment in CPP was $5.2 million. For the year ended December 31, 2016, the Company recorded $0.2 million in other income due to the increase in fair value of the investment in CPP. The estimated fair value of long term debt at December 31, 2016 was $319.5 million, as disclosed in note 18 and was based on similar types of borrowings. The estimated fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future. As of December 31, 2016, there were no financial instruments measured at fair value on a non-recurring basis. The measurement of impairment attributed to RTU 1096 and RTU 009 IPR&D was a non-recurring fair value measurement that utilized level 3 inputs. These level 3 inputs consisted of future cash flows for development, the probabilities of successful clinical outcomes and discount rate. As of December 31, 2015, there were no financial instruments measured at fair value on a non-recurring basis. The acquired assets and assumed liabilities of R-Tech were measured at fair value on a non-recurring basis (see note 5) in connection with the application of purchase accounting. There were no transfers between levels during the years ended December 31, 2016 and 2015.

Note 9 - Inventories

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Text Block]

Inventories

Inventories are valued under a weighted average costing method and are stated at the lower of cost or net realizable value. Inventories consist of raw materials, work-in-process and finished goods. The Company’s inventories include the direct purchase cost of materials and supplies and manufacturing overhead costs. In connection with the acquisition of R-Tech, all inventory held by R-Tech was stepped-up in value to

$37.6

million as of the acquisition date. As of

December

31,

2016

and

2015,

the remaining balance of inventory step-up was

zero

and

$14.3

million, respectively.

Inventories consisted of the following as of

December

31,

2016

and

2015:

	December 31,
(In thousands)	2016		2015
Raw materials	$	1,414	$	5,554
Work in process		18,045		26,926
Finished goods		4,009		641
Total	$	23,468	$	33,121

Note 10 - Property and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment Disclosure [Text Block]

10.

Property and Equipment

Property and equipment consisted of the following at

December

31,

2016

and

2015:

	December 31,
(In thousands)	2016			2015
Computer and office equipment	$	2,346		$	2,647
Furniture and fixtures		1,068			1,023
Leasehold improvements		3,346			3,066
Buildings		888			1,022
Machinery and equipment		2,176			2,074
Construction in progress		119			140
Total cost		9,943			9,972
Less: accumulated depreciation		(3,727	)		(3,579	)
Total	$	6,216		$	6,393

Depreciation expense for the years ended

December

31,

2016,

2015

and

2014

was

$904,000,

$637,000

and

$422,000,

respectively.

Note 11 - Intangible Assets, In-process Research and Development and Goodwill

12 Months Ended

Dec. 31, 2016

Intangible Assets Disclosure [Text Block]

11.

Intangible Assets, In-Process Research and Development and Goodwill

Intangible assets by major class as of

December

31,

2016

and

2015

were as follows:

	December 31, 2016					December 31, 2015
(In thousands)	Weighted average life (in months)		Carrying amount			Weighted average life (in months)		Carrying amount
Amortized intangible assets
Patent and license rights		60	$	10,513			72	$	10,513
Manufacturing know how		65		134,600			76		134,600
Accumulated amortization				(34,142	)				(8,463	)
Impairment losses				(5,651	)				(5,651	)
Foreign currency translation adjustments				22,814					(684	)
Total amortized intangible assets			$	128,134				$	130,315

Unamortized intangible assets
In-process research and development			$	-				$	6,171
Goodwill				73,022					60,937
Total unamortized intangible assets			$	73,022				$	67,108

Total intangible assets			$	201,156				$	197,423

The changes in intangible assets for the years ended

December

31,

2016

and

2015

were as follows:

(In thousands)	Intangibles			Goodwill			In-process research & development
Balance at December 31, 2014	$	151		$	-		$	-
Additions		134,600			61,228			6,200
Amortization		(3,752	)		-			-
Foreign currency translation adjustment		(684	)		(291	)		(29	)
Balance at December 31, 2015	$	130,315		$	60,937		$	6,171
Additions		-			462			-
Amortization		(25,679	)		-			-
Foreign currency translation adjustment		23,498			11,623			1,115
Impairment of in-process research & development		-			-			(7,286	)
Balance at December 31, 2016	$	128,134		$	73,022		$	-

Amortization expense on intangible assets totaled

$25.7

million,

$3.7

million and

$636,000,

for the years ended

December

31,

2016,

2015

and

2014,

respectively. The manufacturing know-how intangible assets are based on the manufacturing rights related to AMITIZA and RESCULA agreements. Under these agreements, the maximum contractual cash flow periods for RESCULA and AMITIZA were up to

years and

years, respectively. The agreement with the largest projected cash flows had a period of

five

years, which reduced the weighted average amortization period to

and

months as of

December

2016

and

December

31,

2015,

respectively.

2016,

the Company discontinued its VAP-

Inhibitor RTU-

1096

development program and its VAP-

Inhibitor RTU-

009

program. The Company considered the discontinuance as a potential indicator of impairment of the related IPR&D asset. Accordingly, the Company performed an interim assessment, and as a result, recorded an impairment charge of

$7.3

million during the year ended

December

31,

2016,

which represented the entire carrying value of the IPR&D asset.

Amortization of intangibles for the next

five

years is expected to be as follows:

(In thousands)	Amortization
Years ended December 31,
2017	$	26,990
2018		26,990
2019		26,990
2020		26,990
2021		4,009

Note 12 - Accrued Expenses

12 Months Ended

Dec. 31, 2016

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

12.

Accrued Expenses

Accrued expenses consisted of the following at

December

31,

2016

and

2015:

	December 31,
(In thousands)	2016		2015
Research and development costs	$	3,030	$	3,843
Employee compensation		7,513		4,860
Restructuring		163		851
Selling and marketing costs		40		1
Legal and accounting fees		622		428
Other accrued expenses		1,021		903
Total	$	12,389	$	10,886

Note 13 - Collaboration Obligation	12 Months Ended
Note 13 - Collaboration Obligation	Dec. 31, 2016
Notes to Financial Statements
Collaborative Arrangement Disclosure [Text Block]	13. Collaboration Obligation Under the Global Takeda Agreement (see note 19), the Company received an upfront payment from Takeda of $14.0 million in 2014, of which the Company was obligated to reimburse Takeda for the first $6.0 million in developmental expenses incurred by Takeda. At December 31, 2016 and 2015, the collaboration obligation was $0 and $5.6 million, respectively.

Note 14 - Other Current Liabilities

12 Months Ended

Dec. 31, 2016

Other Liabilities Disclosure [Text Block]

15.

Other Liabilities

Other liabilities consisted of the following at

December

31,

2016

and

2015:

	December 31,
(In thousands)	2016		2015
Deferred grants	$	750	$	9,604
Unrecognized tax benefits		4,060		3,061
Deferred leasehold incentive		1,582		1,715
Defined benefit obligation		818		949
Other liabilities		1,581		414
Total	$	8,791	$	15,743

December

31,

2016,

deferred grants consisted of government grants from Montgomery County, Maryland and the state of Maryland related to the move of the Company’s headquarters. At

December

31,

2015,

deferred grants consisted of a

$9.3

million grant from the Japan Agency for Medical Research & Development (“AMED”), for use in developing unoprostone-related medicine for Retinitis Pigmentosa (see below), and a

$300,000

government grant from Montgomery County, Maryland related to the move of the Company’s headquarters. Both grants

may

have to be repaid if certain conditions are not met.

Under its arrangement with AMED, R-Tech received

¥1.05

billion to support the development of unoprostone. This grant would be repayable in full if R-Tech terminated the development of unoprostone for commercial or other reasons, but only in part if such termination was due to scientific failure of the compound. R-Tech discontinued the development of unoprostone in early

2016.

At the time of the Company’s acquisition of R-Tech, AMED’s position, on which we relied when accounting for this liability at the time of the R-Tech acquisition, was that the full amount of the grant would be repayable by R-Tech because such termination was for convenience, rather than due to a scientific failure of the compound. In

September

2016,

however, AMED agreed to waive the repayment of all but approximately

¥105

million (approximately

$1.0

million) of the grant, representing

10%

of the funds received by R-Tech from AMED through the end of

March

2014.

The Company recognized approximately

$9.3

million in other income for the year ended

December

31,

2016

because of this forgiveness of the Company’s repayment obligation.

Defined benefit obligation relates to defined benefit pension plans for employees in the Company’s subsidiary in Switzerland (Swiss Plan). The Swiss Plan is a government-mandated retirement fund that provides employees with a minimum investment return. The minimum investment return is determined annually by the Swiss government and was

1.25%

2016

and 1.75% in

2015.

Under the Swiss Plan, the Company and certain of its employees with annual earnings in excess of government determined amounts are required to make contributions into a fund managed by an independent investment fiduciary. Employer contributions must be in an amount at least equal to the employee’s contribution. Minimum employee contributions are based on the respective employee’s age, salary, and gender. As of

December

31,

2016

and

2015,

the Swiss Plan had an unfunded net pension obligation of

$818,000

and

$949,000,

respectively, plan assets of

$1.7

million and

$1.6

million, respectively, and projected benefit obligation of

$2.6

million and

$2.5

million, respectively. The entire liability is listed as non-current because plan assets are more than enough to pay expected benefit payments over the next year. The Company recognized pension expense of

$260,000,

$226,000

and

$221,000

for the years ended

December

31,

2016,

2015

and

2014,

respectively, related to the Swiss Plan.

While the Swiss Plan originated in

2011,

the Company only accounted for the Swiss Plan in accordance with ASC

715

Defined Benefit Plans - Pensions

starting in

2014.

The Company evaluated the impact of not recording the net pension obligation in the Consolidated Balance Sheet and corresponding charges in Net income and Total comprehensive income in the Statement of Operations and Comprehensive Income, and the omission of the required pension disclosures in prior years, and concluded that the effect was immaterial. The Company corrected the immaterial error in

2014

by recording an out of period adjustment to the net pension obligation liability of

$366,000,

with an offsetting amount in Net Income of

$11,000

and total comprehensive income of

$355,000.

Other Current Liabilities [Member]

Other Liabilities Disclosure [Text Block]

14.

Other Current Liabilities

Other current liabilities consisted of the following at

December

31,

2016

and

2015:

	December 31,
(In thousands)	2016		2015
Indirect taxes payable	$	1,756	$	5,963
Squeeze out liability for non-tendering R-Tech shareholders		155		7,668
Other current liabilities		393		508
Total	$	2,304	$	14,139

Note 15 - Other Liabilities

12 Months Ended

Dec. 31, 2016

Other Liabilities Disclosure [Text Block]

15.

Other Liabilities

Other liabilities consisted of the following at

December

31,

2016

and

2015:

	December 31,
(In thousands)	2016		2015
Deferred grants	$	750	$	9,604
Unrecognized tax benefits		4,060		3,061
Deferred leasehold incentive		1,582		1,715
Defined benefit obligation		818		949
Other liabilities		1,581		414
Total	$	8,791	$	15,743

December

31,

2016,

deferred grants consisted of government grants from Montgomery County, Maryland and the state of Maryland related to the move of the Company’s headquarters. At

December

31,

2015,

deferred grants consisted of a

$9.3

million grant from the Japan Agency for Medical Research & Development (“AMED”), for use in developing unoprostone-related medicine for Retinitis Pigmentosa (see below), and a

$300,000

government grant from Montgomery County, Maryland related to the move of the Company’s headquarters. Both grants

may

have to be repaid if certain conditions are not met.

Under its arrangement with AMED, R-Tech received

¥1.05

2016.

September

2016,

however, AMED agreed to waive the repayment of all but approximately

¥105

million (approximately

$1.0

million) of the grant, representing

10%

of the funds received by R-Tech from AMED through the end of

March

2014.

The Company recognized approximately

$9.3

million in other income for the year ended

December

31,

2016

because of this forgiveness of the Company’s repayment obligation.

1.25%

2016

and 1.75% in

2015.

December

31,

2016

and

2015,

the Swiss Plan had an unfunded net pension obligation of

$818,000

and

$949,000,

respectively, plan assets of

$1.7

million and

$1.6

million, respectively, and projected benefit obligation of

$2.6

million and

$2.5

$260,000,

$226,000

and

$221,000

for the years ended

December

31,

2016,

2015

and

2014,

respectively, related to the Swiss Plan.

While the Swiss Plan originated in

2011,

the Company only accounted for the Swiss Plan in accordance with ASC

715

Defined Benefit Plans - Pensions

starting in

2014.

2014

by recording an out of period adjustment to the net pension obligation liability of

$366,000,

with an offsetting amount in Net Income of

$11,000

and total comprehensive income of

$355,000.

Note 16 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Text Block]

16.

Commitments and Contingencies

Operating Leases

The Company leases office space in the U.S., Switzerland and Japan. In Japan, the Company also leases a research and development facility and the land for its manufacturing facility. At

December

31,

2016,

total future minimum non-cancelable lease payments under operating leases are as follows:

(In thousands)
2017	$	1,980
2018		1,727
2019		1,491
2020		1,096
2021		995
Total minimum lease payments	$	7,289

Rent expense for all operating leases was

$2.4

million,

$1.8

million and

$1.4

million for the years ended

December

31,

2016,

2015

and

2014,

respectively.

Numab Commitment

July

2016,

Numab repaid all outstanding amounts under its loan from Zurcher Kantonalbank, which was guaranteed by the Company under the Numab Agreement (see note

17).

As a result, the Company’s liability associated with the Numab Agreement guarantee has been released

CPP

Under the terms of the CPP Securities Agreement (see note

7),

the Company provided

$5.0

million to CPP in exchange for a convertible note. The convertible note is automatically convertible into securities of CPP, subject to certain limitations, in the event CPP consummates a future financing with aggregate proceeds of at least

$10.0

million, exclusive of any investment by the Company, whether through a public offering or a private offering (a “Qualified Financing”). Depending on the timing of the Qualified Financing, the convertible note will automatically convert into the same securities issued in the Qualified Financing at a

10%

20%

discount to the lowest issuance price of the securities in the Qualified Financing. The Company has also agreed to purchase up to

$5.0

million of CPP’s securities in any such Qualified Financing.

Research and Development Costs

The Company routinely enters into agreements with

third

-party CROs to oversee clinical research and development studies provided on an outsourced basis and assist in other research and development activities. The Company generally is not contractually obligated to pay the

third

party if the service or reports are not provided.

Note 17 - Related Party Transactions

12 Months Ended

Dec. 31, 2016

17.

Related Party Transactions

R-Tech

Before the R-Tech acquisition, R-Tech was considered a related party. Drs. Ryuji Ueno and Sachiko Kuno were married to each other during such time, and they controlled, directly or indirectly, the majority of the stock of R-Tech. At such time, Drs. Ueno and Kuno also controlled, directly or indirectly, approximately

47%

of the Company’s common stock. Dr. Ueno was the Company’s Chief Executive Officer and Chairman of the Company’s Board of Directors through

March

2014

and was our Chief Scientific Officer through

March

18,

2014.

Prior to the R-Tech acquisition on

October

20,

2015

(see note

5),

the Company did not own manufacturing facilities. Instead, the Company contracted with R-Tech as the sole manufacturer of the Company’s products to produce AMITIZA and RESCULA. The Company had entered into multiple exclusive supply arrangements with R-Tech and had granted to R-Tech the exclusive right to manufacture and supply AMITIZA and other products and compounds to the Company to meet its commercial and clinical requirements. Since

2003,

the Company had received upfront, development and milestone payments under these agreements totaling

$9.0

million through

October

20,

2015.

The Company recorded the following expenses under all of its agreements with R-Tech for the period

January

2015

through

October

20,

2015,

and for the year ended

December

31,

2014:

(In thousands)	January 1 through October 20, 2015		Year Ended December 31, 2014
Clinical supplies	$	155	$	396
Other research and development services		347		171
Commercial supplies		21,415		15,776
	$	21,917	$	16,343

Numab AG

September

2011,

the Company entered into a loan guarantee and development agreement (the Numab Agreement) with Numab. Numab is a related party of the Company as a result of the Company hiring as an executive officer an individual who holds an ownership interest in Numab. Under the terms of the Numab Agreement, the Company provided Numab with up to CHF

5.0

million as collateral and served as guarantor for a loan to Numab from a

third

party, Zurcher Kantonalbank. Following the payment of the

first

success fee during the

first

quarter of

2013,

this amount was reduced to CHF

2.2

million, or approximately

$2.2

million, as of

December

31,

2015.

As of

December

31,

2015,

collateral of CHF

2.2

million had been deposited by the Company and Numab had utilized CHF

1.5

million of its loan facility, or approximately

$1.5

million. At

December

31,

2015,

the Company had recorded a guarantee liability of

$202,000

in collateral callable to meet a potential loan default by Numab.

July

2016,

Numab repaid all outstanding amounts under its loan from Zurcher Kantonalbank, which was guaranteed by the Company under the Numab Agreement. As a result, the Company’s liability associated with the Numab Agreement guarantee has been released, and all deposited collateral returned.

Subordinated Unsecured Promissory Notes

In connection with the SAG acquisition in

2010,

the Company issued a subordinated unsecured promissory note (Notes) to the Ueno Trust and Kuno Trust, former shareholders of SAG. The Ueno Trust and Kuno Trust are considered related parties. Each of the Notes was issued with an initial principal balance of approximately

$25.9

million, or approximately

$51.9

million in the aggregate. The interest rate for the Notes was the sum of the London Interbank Offered Rate, or LIBOR, plus

4.0%,

and was reset on

December

1st

and

June

1st

each year. The interest rate beginning

December

2015

was

4.7%.

February

2016,

these Notes were paid in full.

Note 18 - Credit Facility and Convertible Notes Payable

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Text Block]

18.

Credit Facility and Convertible Notes Payable

Credit Facility

October

16,

2015,

the Company entered into a Credit Agreement (the “Credit Facility”) with Jefferies Financing LLC. Term Loans under the Credit Facility bore interest, at the Company’s option, at the Adjusted Eurodollar Rate plus

7.25%

or the Adjustable Base Rate plus

6.25%.

Prior to the repayment in full, the average interest rate on the Term Loans for the period ended

December

27,

2016

was

8.54%.

The Company was in compliance with all covenants under the Credit Facility in

2016.

December

27,

2016,

concurrent with the Company issuing

$300.0

million aggregate principal amount of its

3.25%

Convertible Senior Notes due

2021

(see below), this Credit Facility was paid in full, including all accrued but unpaid interest and a prepayment premium of

$2.3

million.

Convertible Notes

December

27,

2016,

the Company issued

$300.0

million aggregate principal amount of its

3.25%

Convertible Senior Notes due

2021

(the “Convertible Notes”) to Leerink Partners LLC (the “Initial Purchaser”), who subsequently resold the Convertible Notes to qualified institutional buyers (the “Note Offering”) in reliance on the exemption from registration provided by Rule

144A

under the Securities Act of

1933,

as amended (the “Securities Act”). The Company received net proceeds of approximately

$290.5

million from the sale of the Convertible Notes, after deducting fees and expenses of approximately

$9.5

million. Concurrent with the closing of the Note Offering, the Company used the net proceeds from the Note Offering to repay in full approximately

$238.2

million due under the Company’s Credit Facility (see above), including all accrued but unpaid interest and a prepayment premium of

$2.3

million. The Company plans to use the remaining net proceeds for general corporate purposes.

The Convertible Notes were issued pursuant to an Indenture, dated as of

December

27,

2016

(the “Indenture”), between the Company and U.S. Bank National Association, as trustee. Interest on the Convertible Notes is payable semi-annually in cash in arrears on

June

and

December

of each year, beginning on

June

15,

2017,

at a rate of

3.25%

per year. The Convertible Notes mature on

December

15,

2021

unless earlier converted or repurchased, are not redeemable prior to the maturity date and no sinking fund is provided for the Convertible Notes.

The Convertible Notes are convertible at an initial conversion rate of

60.2637

shares of the Company’s Class A common stock (the “Common Stock”) per

$1,000

principal amount of the Convertible Notes, subject to adjustment under the Indenture, which is equal to an initial conversion price of approximately

$16.59

per share of Common Stock. Upon conversion, the Convertible Notes will be settled in shares of the Company’s Common Stock, together with a cash payment in lieu of delivering any fractional share. The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate for a holder who elects to convert its Convertible Notes in connection with such a corporate event in certain circumstances.

If the Company undergoes a “fundamental change” (as defined in the Indenture), holders

may

require the Company to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to

100%

of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

The Indenture includes customary terms and covenants, including certain events of default after which the Convertible Notes

may

be due and payable immediately. The following events are considered “events of default,” which

may

result in acceleration of the maturity of the Convertible Notes:

	·	default in any payment of interest on any Convertible Notes when due and payable and the default continues for a period of 30 days;
	·	default in the payment of principal of any Convertible Notes when due and payable at its stated maturity, upon any required repurchase, upon declaration of acceleration or otherwise;
	·	the Company’s failure to comply with its obligation to convert the Convertible Notes in accordance with the Indenture upon exercise of a holder’s conversion right and such failure continues for a period of five business days;
	·	the Company’s failure to give a fundamental change notice when due;
	·	the Company’s failure to comply with its obligations under the Indenture in connection with a consolidation, merger or sale of assets;
	·	the Company’s failure for 60 days after written notice from the trustee or the holders of at least 25% in principal amount of the Convertible Notes then outstanding has been received to comply with any of the Company’s other agreements contained in the Convertible Notes or the Indenture
	·	default by the Company or any of its significant subsidiaries (as defined in the Indenture) with respect to any mortgage, agreement or other instrument under which there may be outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed in excess of $10.0 million (or its foreign currency equivalent) in the aggregate of the Company and/or any such subsidiary, whether such indebtedness now exists or shall hereafter be created (i) resulting in such indebtedness becoming or being declared due and payable prior to its maturity date, or (ii) constituting a failure to pay the principal or interest of any such debt when due and payable at its stated maturity, upon required repurchase, upon declaration of acceleration or otherwise, and, in the cases of clauses (i) and (ii), such acceleration shall not have been rescinded or annulled or such failure to pay or default shall not have been cured or waived, or such indebtedness is not paid or discharged, as the case may be, within 30 days after written notice to us by the trustee or to us and the trustee by holders of at least 25% in aggregate principal amount of Convertible Notes then outstanding in accordance with the Indenture
	·	certain events of bankruptcy, insolvency, or reorganization of the Company or any of the Company’s significant subsidiaries; or
	·	a final judgment or judgments for the payment of $10.0 million (or its foreign currency equivalent) or more (excluding any amounts covered by insurance) in the aggregate rendered against the Company or any of its subsidiaries, which judgment is not discharged, bonded, paid, waived or stayed within 60 days after (i) the date on which the right to appeal thereof has expired if no such appeal has commenced, or (ii) the date on which all rights to appeal have been extinguished.

As of

December

31,

2016,

the Company was compliant with all covenants and conditions under the Convertible Notes.

The Company analyzed the terms of the Convertible Notes and determined that under current accounting guidance the Convertible Notes would be entirely accounted for as debt and none of the terms of the Convertible Notes require separate accounting. As part of the issuance of the Convertible Notes, the Company incurred

$9.5

million of transaction costs, which are capitalized in the accompanying Consolidated Balance Sheet as deferred financing costs and will be amortized to interest expense ratably over the term of the Convertible Notes.

The Company’s debt is subject to the fair value disclosure requirements as discussed in note

and is classified as a Level

instrument. The estimated fair value of the notes payable at

December

31,

2016

was

$319.5

million.

Notes payable consisted of the following as of

December

31,

2016

and

2015:

	December 31,
(In thousands)	2016		2015
Credit facility notes payable	$	-	$	252,360
Convertible notes payable		290,516		-
	$	290,516	$	252,360

Notes payable, current	$	-	$	39,083
Notes payable, non-current		290,516		213,277
	$	290,516	$	252,360

Note 19 - Collaboration and License Agreements

12 Months Ended

Dec. 31, 2016

Collaborative and License Arrangement Disclosure [Text Block]

19.

Collaboration and License Agreements

North America Takeda Agreement

October

2004,

the Company entered into an agreement with Takeda to supply, develop and commercialize AMITIZA for gastrointestinal indications in the U.S. and Canada. The original agreement was amended on

February

2006

through a supplemental agreement, and in

October

2014

the Company and Takeda and certain Takeda affiliates executed amendments to the agreement. Collectively, these are referred to as the North America Takeda Agreement. Payments to the Company under these agreements include a non-refundable upfront payment, non-refundable development and commercial milestone payments, reimbursement of certain development and co-promotion costs, and product royalties.

The Company has received a total of

$160.0

million in upfront and development milestone payments through

December

31,

2016

under the North America Takeda Agreement. Subject to development and acceptance of future indications, the Company is potentially entitled to receive additional development milestone and commercial milestone payments under the North America Takeda Agreement, although there can be no assurance that the Company will receive any such payments.

Upon execution of the North America Takeda Agreement, the Company was required to complete several deliverables, which Takeda was responsible to fund. The following are the required deliverables of the Company, along with the related contractual cash flows from Takeda and the associated obligations and performance period of the Company relating to research and development revenue:

	·	Upon receipt of the $20.0 million upfront payment, the Company deferred $2.4 million to be recognized using the time-based model over the performance period of the participation in various joint committee meetings. The Company expects its participation on all committees to continue throughout the term of the North America Takeda Agreement. During each of the years ended December 31, 2016, 2015 and 2014, the Company recognized $147,000 of this deferred amount as collaboration revenue on the Consolidated Statements of Operations and Comprehensive Income.
	·	The Company granted Takeda an exclusive license for lubiprostone to co-develop, commercialize, and sell products for gastroenterology indications in the U.S. and Canada. The Company has recorded product royalty revenue of $82.3 million, $74.0 million and $62.8 million the years ended December 31, 2016, 2015 and 2014, respectively. This revenue is recorded as product royalty revenue in the Consolidated Statements of Operations and Comprehensive Income.

The Company has provided development work necessary for an NDA submission to the FDA for the treatment of CIC and IBS-C indications. Takeda funded the initial

$30.0

million of development costs, the Company was obligated to fund the

first

$20.0

million in excess of the initial

$30.0

million funded by Takeda and the

two

parties are to equally share any required development costs in excess of

$50.0

million. Although there was no defined performance period for this development work, the period to perform the work would not exceed the term of the North America Takeda Agreement. In

January

2006,

the Company received approval for its NDA for AMITIZA to treat CIC and completed and submitted the supplemental NDA for IBS-C to the FDA in

June

2007.

In conjunction with the R-Tech acquisition in

October

2015,

the Company now recognizes product sales for the supply of product under the North America Takeda Agreement. The Company recorded product sales revenue of

$45.2

million and

$10.3

million for the years ended

December

31,

2016

and

2015.

The Company initially deferred the residual amount of the

$20.0

million upfront payment totaling

$17.6

million, development milestone payments received totaling

$50.0

million, and reimbursement of the initial

$30.0

million of research and development costs for the development of AMITIZA for CIC and IBS-C indications. These deferred amounts were applied towards the unit of accounting that combines the participation in the joint development committee and the development of CIC and IBS-C and was recognized over the performance period of developing the CIC and IBS-C NDA submissions. The Company completed the development of the CIC and IBS-C in

June

2007

and filed a sNDA for IBS-C. This was the culmination of the performance period. In

June

2007,

the Company also recognized as revenue, in full,

$30.0

million from Takeda upon the filing of the sNDA for AMITIZA to treat IBS-C. The Company received a

$50.0

million development milestone payment from Takeda as a result of the FDA’s approval on

April

29,

2008

of the sNDA for IBS-C in women aged

years and older and recognized the payment as research and development revenue during the year ended

December

31,

2008.

During

2006,

the joint commercialization committee granted approval for the Company and Takeda to begin

three

new studies. The following are the

three

additional deliverables of the Company, along with the related contractual cash flows from Takeda and the associated obligations and performance period of the Company, when the

three

studies were agreed upon:

The Company is obligated to perform studies in connection with changes to labeling for CIC. Takeda is obligated to fund

70%

of the labeling studies and the Company is obligated to fund the remaining

30%.

There is no defined performance period, but the performance period will not exceed the term of the North America Takeda Agreement.

The Company is obligated to perform studies for the development of an additional indication for OIC. Takeda is obligated to fund all development work up to a maximum aggregate of

$50.0

million for each additional indication and

$20.0

million for each new formulation. If development costs exceed these amounts, Takeda and the Company shall equally share such excess costs. There is no defined performance period, but the performance period will not exceed the term of the North America Takeda Agreement. The Company decided to conduct

one

additional phase

efficacy studies in order to submit a sNDA for the OBD indication. In

February

2012,

the Company announced that lubiprostone met the primary endpoint in a phase

clinical trial for the treatment of OBD in patients with chronic, non-cancer pain, excluding those taking methadone.

The Company is obligated to perform all development work necessary for phase

studies, for which Takeda is obligated to fund all development work. There is no defined performance period, but the performance period will not exceed the term of the North America Takeda Agreement.

The Company has assessed these required deliverables to determine which deliverables are considered separate units of accounting. As a result of the Company and Takeda agreeing to perform and fund these studies simultaneously, the Company determined that there is no objective and reliable evidence to determine the fair value for each of the studies. Accordingly, the Company has combined these

three

required deliverables as a single unit of accounting. All cash payments from Takeda related to these

three

deliverables are deferred upon receipt and recognized over the estimated performance period to complete the

three

studies using the time-based model.

2011,

the Joint Commercialization Committee (JCC) granted approval to begin studies for a liquid formulation. In addition, in

2012,

the JCC granted approval for studies for a pediatric dosage. These additional deliverables are considered separate units of accounting and the Company recognizes revenue from Takeda reimbursements for these deliverables when earned.

Co-promotion costs after

May

31,

2011

were reimbursed under the Takeda Agreement through

2014.

The Company recognized

$3.4

million of revenues for the year ended

December

31,

2014,

which is recorded as co-promotion revenue in the Consolidated Statements of Operations and Comprehensive Income.

The Company has assessed these required deliverables to determine which deliverables are considered separate units of accounting. The Company determined that its sales force and miscellaneous marketing activities are treated as separate units of accounting. The Company is recognizing the cost reimbursements received for these deliverables as co-promotion revenues when services are performed and the reimbursement payments are due under the Supplemental Takeda Agreement.

Global Takeda Agreement

October

2014,

the Company and Takeda entered the Global Takeda Agreement to develop and commercialize AMITIZA. The territories excluded from the Global Takeda Agreement are Canada, the U.S., Japan and the People’s Republic of China. Canada and the U.S. are covered by the North America Takeda Agreement, and Japan is covered by the Japan Mylan Agreement. Switzerland and the U.K. have already received regulatory approval for AMITIZA to be marketed and sold. All other territories covered under the Global Takeda Agreement will need to have regulatory approval before AMITIZA can be sold.

Under the terms of the Global Takeda Agreement, the Company supplies Takeda with AMITIZA at a negotiated supply price. The Company also received a nonrefundable upfront payment of

$14.0

million from Takeda for exclusive rights to develop and commercialize AMITIZA in the global markets covered by the Global Takeda Agreement. In addition, the Company is also eligible for up to

$35.0

million in additional commercial milestone payments contingent on the achievement of certain net sales revenue targets. Takeda is responsible for all development activities and costs, except that the Company assumed responsibility for the

first

$6.0

million of those development expenses incurred by Takeda. The Company’s financial obligations under this agreement were fulfilled in

2016.

The Global Takeda Agreement is considered a multiple-element arrangement for accounting purposes. The Company identified the rights to use the Company’s license to develop and commercialize AMITIZA and the sale of AMITIZA product at a negotiated price as the deliverables. During the

fourth

quarter of

2014,

the Company received a

$14.0

million milestone payment and allocated

$8.0

million to the right to use the license and

$6.0

million to a collaboration obligation to reimburse Takeda for the

first

$6.0

million in developmental expenses incurred. The Company’s financial obligations under this agreement were fulfilled in

2016.

The Company recognized product sales to Takeda under the Global Takeda Agreement of

$792,000,

and

during

2016,

2015

and

2014,

respectively.

Japan Mylan Agreement

February

2015,

Abbott and Mylan closed Mylan’s purchase of Abbott’s non-U.S. developed markets specialty and branded generics business, which included the Company’s

February

2009

Japan Mylan Agreement to develop and commercialize lubiprostone for the treatment of CIC in Japan. The Company did not experience any significant changes in the commercialization of AMITIZA in Japan as a result of the transfer of the Japan Mylan Agreement from Abbott to Mylan.

The Japan Mylan Agreement grants Mylan the right of exclusive negotiation to any additional indications for which lubiprostone is developed in Japan under all relevant patents, know-how and trademarks. Under the terms of the Japan Mylan Agreement, payments to the Company include sales of product at a negotiated sales price, a non-refundable upfront payment and non-refundable development and commercial milestone payments based on achieving specified development, regulatory and sales goals.

The collaboration efforts under the agreement are governed by

two

committees consisting of an equal number of representatives from both parties. The joint commercialization and steering committee oversees commercialization-related activities and resolves any conflicts arising from a joint development committee, which oversees the development-related activities in Japan.

The Company is required to fund and complete all the development work including additional clinical studies required to obtain regulatory approval for the treatment of CIC in Japan. The Company completed all development activities in the

fourth

quarter of

2012.

The Company owns all the rights covered under the regulatory filings.

Mylan is required to fund and undertake all commercialization efforts including pre-launch and post-launch marketing, promotion and distribution. Mylan is required to maintain the number of sales staff and the estimated level of annual net sales based on the commercialization plan to be developed and approved by the joint commercialization and steering committee described above.

The Company recorded product sales revenue under the Japan Mylan Agreement of

$72.7

million,

$53.9

million and

$32.1

million for the years ended

December

31,

2016,

2015

and

2014,

which includes

$10.0

million,

$5.0

million and

$2.5

million in net sales milestone payments in

2016,

2015

and

2014,

respectively. As of

December

31,

2016,

the Company had received a total of

$47.5

million in up-front and development milestone payments under the Japan Mylan Agreement. Under the Japan Mylan Agreement, the Company could receive additional milestone payments based on achieving other specified development and commercialization goals although there can be no assurance that the Company will receive any such payments.

China Gloria Agreement

May

2015,

the Company entered into an exclusive license, development, commercialization and supply agreement (China Gloria Agreement), for AMITIZA in the People’s Republic of China. The China Gloria Agreement is effective until the

thirteenth

anniversary of the effective date and will automatically renew for successive

three

year periods unless terminated upon

one

year’s prior written notice by

one

of the parties. Under the terms of the China Gloria Agreement:

The Company received an upfront payment of

$1.0

million from Gloria during

May

2015

and an upfront payment of

$500,000

June

2015

after the CFDA accepted the IND application for a pivotal trial of AMITIZA in patients with CIC.

The Company is eligible to receive an additional payment in the amount of

$1.5

million upon the occurrence of a specified regulatory or commercial milestone event.

Gloria is responsible for all development activities and costs, as well as commercialization and regulatory activities, for AMITIZA in the People’s Republic of China.

The Company will be the exclusive supplier of AMITIZA to Gloria at an agreed upon supply price.

The Company has

recorded product sales revenue under the China Gloria Agreement for

2016

and

2015.

RESCULA Agreement

Japan Santen Agreement

March

2012,

R-Tech entered into an exclusive transaction agreement (“Japan Santen Agreement”) with Santen Pharmaceutical Co. Ltd (“Santen”) to commercialize RESCULA in Japan. The initial term of the Japan Santen Agreement ended on

March

31,

2016

but was automatically extended through

March

31,

2017.

Under the terms of the agreement the contract is automatically extended for successive

one

-year renewal terms unless either party gives the other party an

-month notice, which to date has not occurred. Under the terms of the Japan Santen Agreement the Company recognizes revenue from the product sales of RESCULA to Santen at a negotiated price. For the years ended

December

31,

2016

and

2015,

the Company recorded RESCULA product sales revenue under the Japan Santen Agreement of

$9.9

million and

$1.5

million, respectively.

Note 20 - Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note Disclosure [Text Block]

20.

Stockholders’ Equity

Capital Structure

The Company has

two

classes of common stock authorized: class A common stock and class B common stock. In

2012,

the company’s majority stockholder and only holder of the Company’s class B common stock converted all its outstanding shares of class B common stock into shares of the Company’s class A common stock. The Company is not authorized to issue additional shares of class B common stock except in limited circumstances. Because of the conversion, there is now only a single class of outstanding common stock, class A common stock, which is entitled to

one

vote per share.

Treasury Stock

Between

2008

and

2013,

the Company implemented a stock repurchase program under which the Company purchased a total of

524,792

shares of its class A common stock in open-market transactions. These shares were added to Treasury Stock on the Company’s consolidated balance sheet

October

20,

2015,

as part of the R-Tech acquisition, the Company acquired

2,485,150

shares of the Company’s class A common stock, which shares were added to Treasury Stock on the Company’s consolidated balance sheet. As part of the R-Tech purchase price allocation,

$44.0

million was allocated to these shares based on the

October

20,

2015

closing price of

$17.68

per share.

Employee Stock-Based Compensation

The Company accounts for stock-based compensation using the fair value method. The fair value of awards granted is estimated at the date of grant and recognized as expense on a straight-line basis over the requisite service period with the offsetting credit to additional paid-in capital. For awards with performance conditions, the Company recognizes the compensation expense if and when the Company concludes that it is probable that the performance condition will be achieved. The Company reassesses the probability of achieving the performance condition at each reporting date. The assumptions used to estimate the fair value of stock options granted for the years ended

December

31,

2016,

2015

and

2014

were as follows:

	Year Ended December 31,
	2016			2015			2014
Expected volatility	54%	-	56%	54%	-	70%	70%	-	72%
Risk-free interest rate	1.28%	-	1.57%	1.34%	-	1.93%	1.63%	-	2.01%
Expected term (in years)	6.08	-	6.25	5.28	-	6.25	5.28	-	6.25
Expected dividend yield		0%			0%			0%

Employee stock-based compensation expense for the years ended

December

31,

2016,

2015

and

2014

has been reduced for estimated forfeitures as such expense is based upon awards expected to ultimately vest. Estimated forfeiture rates used during the years ended

December

31,

2016,

2015

and

2014

ranged from

10.2%

30.9%.

Employee stock-based compensation expense recorded in the Company’s Consolidated Statements of Operations and Comprehensive Income for the years ended

December

31,

2016,

2015

and

2014

was as follows:

	Year Ended December 31,
(In thousands)	2016		2015		2014
Research and development expense	$	2,136	$	2,165	$	349
General and administrative expense		5,028		5,053		1,816
Selling and marketing expense		119		131		122
Total	$	7,283	$	7,349	$	2,287

Stock Option Plans

Amended and Restated

2001

Stock Incentive Plan

2001,

the Company adopted the

2001

Stock Incentive Plan

(“2001

Plan”) to provide common stock incentives to certain eligible employees, officers, directors, consultants and advisors of the Company. In

2003,

the Board amended the

2001

Plan (“Amended

2001

Plan”) to allow for a maximum of

8,500,000

shares of class A common stock to be issued under all awards. At

December

31,

2016,

there were no shares available for future grants under this plan.

Employee options outstanding and exercisable under the Amended

2001

Plan at

December

31,

2016

and

2015

totaled

zero

and

37,400,

respectively, with a remaining contractual life of

zero

and

0.34

years, respectively. During

2016

and

2015,

20,400

and

76,500

options were exercised, respectively, with an aggregate intrinsic value of

$90,000

and

$0.6

million, respectively. The Company received

$0.2

million and

$0.8

million upon the exercise of these options in

2016

and

2015,

respectively.

A summary of the employee stock option activity for the year ended

December

31,

2016

under the Amended

2001

Plan is presented below:

2001 Stock Incentive Plan	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Options outstanding, December 31, 2015		37,400		$	10.00
Options exercised		(20,400	)	$	10.00
Options expired		(17,000	)	$	10.00
Options outstanding, December 31, 2016		-						-
Options exercisable, December 31, 2016		-						-
Options vested and expected to vest, December 31, 2016		-						-

2006

Stock Incentive Plan

2006,

the Board approved the

2006

Stock Incentive Plan, which has been amended and restated (as amended and restated,

“2006

Plan”), and reserved

8,500,000

shares of class A common stock for issuance under the

2006

Plan. Option awards under the

2006

Plan are granted with an exercise price equal to the closing market price of the Company’s stock on the date of grant. The options generally vest over

four

years and have a

ten

-year contractual term. The

2006

Plan expired in

2016

and was succeeded by the

2016

Equity Incentive Plan (see below). At

December

31,

2016,

there were

shares available for future grants under this plan.

The

2006

Plan included an “evergreen” provision by which the number of shares of the Company’s class A common stock available for issuance increased automatically on the

first

day of each calendar year by

5.0%

of the aggregate number of shares of the Company’s class A common stock outstanding on such date, or such lesser number as the Board

may

determine. The Board determined that the amount of the increase in the shares available for issuance under the

2006

Plan as of

January

2016,

and

2015

pursuant to the “evergreen” provision was

2,275,458

and

zero,

respectively.

A summary of the employee stock option activity for the year ended

December

31,

2016

under the

2006

Plan is presented below:

2006 Stock Incentive Plan	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2015		4,440,608		$	9.37
Options granted		1,266,050		$	13.60
Options exercised		(862,740	)	$	6.71
Options forfeited		(134,379	)	$	13.05
Options expired		(60,990	)	$	14.49
Options outstanding, December 31, 2016		4,648,549		$	10.86		8.0	$	14,770,043
Options exercisable, December 31, 2016		1,729,000		$	8.73		7.0	$	9,017,049
Options vested and expected to vest, December 31, 2016		3,643,698		$	10.50		7.8	$	12,774,846

ime-based

stock options granted in

2016

totaled

1,266,050.

These options vest in equal annual installments over

four

years from date of grant, and expire

ten

years from date of grant.

The weighted average grant date fair value of options granted during the years ended

December

31,

2016,

2015

and

2014

were

$7.10,

$9.45

and

$4.86,

respectively. As of

December

31,

2016,

$9.8

million of total unrecognized compensation costs, net of estimated forfeitures, related to non-vested awards are expected to be recognized over a weighted average period of

2.4

years. When an option is exercised, the Company issues a new share of class A common stock. During

2016

and

2015,

862,740

options and

693,077

options were exercised, respectively, with an aggregate intrinsic value of

$7.1

million and

$8.6

million, respectively. The Company received

$5.8

million and

$4.1

million upon the exercise of these options in

2016

and

2015,

respectively.

2016

Equity Incentive Plan

2016,

the Board approved the

2016

Equity Incentive Plan

(“2016

Plan”), and reserved up to

10,740,125

shares of class A common stock for issuance under the

2016

Plan. The

2016

Plan is intended to be the successor to the

2006

Plan, which expired in

2016.

Option awards under the

2016

Plan are granted with an exercise price equal to the closing market price of the Company’s stock on the date of grant. The options generally vest over

four

years and have a

ten

-year contractual term. At

December

31,

2016,

there were

5,170,312

shares available for future grants under this plan.

A summary of the employee stock option activity for the year ended

December

31,

2016

under the

2016

Plan is presented below:

2016 Equity Incentive Plan	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2015		-
Options granted		75,814		$	12.58
Options exercised		(1,064	)	$	6.75
Options expired		-
Options outstanding, December 31, 2016		74,750		$	12.66		5.0	$	81,741
Options exercisable, December 31, 2016		36,700		$	13.97		0.1	$	0
Options vested and expected to vest, December 31, 2016		55,956		$	13.09		3.4	$	41,367

ime-based

stock options granted in

2016

totaled

75,814.

These options primarily vest ratably over

four

years from date of grant, and expire

ten

years from date of grant.

The weighted average grant date fair value of options granted during the year ended

December

31,

2016

was

$3.51.

As of

December

31,

2016,

$108,000

of total unrecognized compensation costs, net of estimated forfeitures, related to non-vested awards are expected to be recognized over a weighted average period of

3.8

years. When an option is exercised, the Company issues a new share of class A common stock. During

2016,

1,064

options were exercised. The aggregate intrinsic value and amount received by the Company upon the exercise of these options were insignificant.

A summary of restricted stock unit activity for the year ended

December

31,

2016

under the Company’s

2016

Plan is presented below:

2016 Equity Incentive Plan	Shares		Weighted Average Grant Date Fair Value
Nonvested Restricted Stock Units, December 31, 2015		-		-
Restricted Stock Units granted		63,700	$	12.29
Restricted Stock Units vested		-		-
Restricted Stock Units forfeited		-		-
Nonvested Restricted Stock Units, December 31, 2016		63,700	$	12.29

Restricted stock units awarded to members of our board of directors vest ratably over

one

three

years from date of grant.

As of

December

31,

2016,

$348,000

of total unrecognized compensation costs, net of estimated forfeitures, related to non-vested restricted stock units are expected to be recognized over a weighted average period of

1.2

years. When a restricted stock unit vests, the Company issues a new share of class A common stock. During

2016,

restricted stock units vested.

Employee Stock Purchase Plan

2006,

the Board approved the

2006

Employee Stock Purchase Plan. On

December

2016,

the Board amended and restated the

2006

Employee Stock Purchase Plan (as amended and restated, “ESPP”) and reserved

500,000

shares of class A common stock for issuance under the ESPP. The ESPP is non-compensatory and is intended to qualify as an Employee Stock Purchase Plan as defined in Section

423

of the Internal Revenue Code of

1986,

as amended. Under the ESPP, eligible employees

may

purchase common stock through payroll deductions up to

15%

of compensation during the plan period, which is generally

one

year with

four,

three

-month purchase periods. In

January

2015,

the Board approved a purchase price of

85%

of the lower of market price on the offering date or the purchase date. The following table summarizes the ESPP activity:

	Years Ended December 31,
(In thousands, except share amounts)	2016		2015		2014
Shares issued under the ESPP		22,395		9,085		5,853
Cash received under the ESPP	$	213	$	128	$	35

Tax Benefits

As of

December

31,

2016,

the balance of the Company's additional paid-in capital pool related to tax windfall benefits from the stock option exercises was

$3.8

million.

The Company applies a with-and-without approach in determining its intra-period allocation of tax expense or benefit attributable to stock based compensation deductions. Since the Company does not have any net operating loss carry-forwards in the U.S., the tax benefit reduces income taxes payable in the current year and is therefore recorded to additional paid-in-capital.

Accumulated Other Comprehensive Income (Loss)

The following table details the accumulated other comprehensive income (loss) activity for the years ended

December

31,

2016,

2015,

and

2014:

(In thousands)	Foreign currency translation adjustments			Unrealized income (loss) on investments, net of tax effect			Unrealized income (loss) on pension benefit obligation			Accumulated other comprehensive income (loss)
Balance at December 31, 2013	$	15,559		$	42		$	-		$	15,601
Other comprehensive loss before reclassifications		(351	)		(7	)		(978	)		(1,336	)
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-			-
Balance at December 31, 2014	$	15,208		$	35		$	(978	)	$	14,265
Other comprehensive income (loss) before reclassifications		(965	)		7			105			(853	)
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-			-
Balance at December 31, 2015	$	14,243		$	42		$	(873	)	$	13,412
Other comprehensive income before reclassifications		40,876			-			239			41,115
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-			-
Balance at December 31, 2016	$	55,119		$	42		$	(634	)	$	54,527

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

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-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

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-Publisher FASB
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-Topic 210
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Publisher FASB
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-Topic 505
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
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-Subparagraph (SX 210.4-08(d))
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-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

+ Details

Note 21 - Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Text Block]

21.

Income Taxes

Income before income taxes for the years ended

December

31,

2016,

2015

and

2014

was as follows:

	Year Ending December 31,
(In thousands)	2016		2015		2014
U.S.	$	1,153	$	14,685	$	18,005
Foreign		13,222		28,990		9,128
Total income before income taxes	$	14,375	$	43,675	$	27,133

The provision for income taxes consisted of the following for the years ended

December

31,

2016,

2015

and

2014:

	Year Ended December 31,
(In thousands)	2016			2015			2014
Current tax provision
U.S. Federal	$	9,749		$	15,678		$	11,319
U.S. State		334			1,810			1,351
Foreign		21,123			2,709			793
Total current tax provision		31,206			20,197			13,463

Deferred provision (benefit):
U.S. Federal		(5,062	)		(6,375	)		(172	)
U.S. State		(340	)		(899	)		(16	)
Foreign		(29,916	)		(2,619	)		730
Total deferred provision (benefit)		(35,318	)		(9,893	)		542

Total income tax provision (benefit)	$	(4,112	)	$	10,304		$	14,005

Deferred tax assets (liabilities), net, consisted of the following as of

December

31,

2016

and

2015:

	December 31,
	2016			2015
(In thousands)
Deferred tax assets:
Foreign net operating loss carry-forwards	$	309		$	716
State net operating loss carry-forwards		279			2
Tax credit carry-forwards		4,694			976
Deferred revenue		370			446
Accrued expenses		2,517			1,450
Tax benefits on stock options		3,870			3,288
Research and development credits		469			1,759
Deductible state taxes		1,351			-
Other		601			3,775
Gross deferred tax assets		14,460			12,412

Deferred tax liabilities:
Property and equipment		(1,000	)		(654	)
Inventory		-			(3,990	)
Investments		-			(13,963	)
Intangibles		(34,046	)		(44,025	)
Gross deferred tax liabilities		(35,046	)		(62,632	)

Less: valuation allowance		(704	)		(2,277	)
Net deferred tax assets (liabilities)	$	(21,290	)	$	(52,497	)

The provision for income taxes varied from the income taxes provided based on the federal statutory rate as follows for the years ended

December

31,

2016,

2015

and

2014:

	Year Ended December 31,
(In thousands)	2016			2015			2014
Federal tax at statutory rates		35.0	%		35.0	%		35.0	%
State taxes, net of federal tax benefit		-0.4	%		0.9	%		2.1	%
Foreign tax rate differential		-83.2	%		-16.8	%		-3.7	%
Changes in valuation allowance		-0.4	%		0.5	%		1.4	%
Nondeductible expenses		0.0	%		2.3	%		1.7	%
Stock based compensation		2.3	%		0.6	%		-0.1	%
Impact of intangible transfer		11.2	%		0.7	%		5.8	%
Impact of uncertain tax positions		3.0	%		1.8	%		-0.2	%
Adjustment to deferred tax asset		3.1	%		-1.6	%		0.5	%
Exchange gain/(loss)		-13.5	%		0.0	%		0.0	%
Subpart F income, net of FTC		11.5	%		2.3	%		9.1	%
Loan forgiveness		0.0	%		-2.3	%		0.0	%
Japanese R&D credit		-4.6	%		-1.6	%		0.0	%
Impact of subsidiary wind up		-11.2	%		0.0	%		0.0	%
Deductible and withholding taxes		3.2	%		0.0	%		0.0	%
Nondeductible interest		13.4	%		0.0	%		0.0	%
Changes in other tax matters		2.0	%		1.8	%		0.0	%
Effective tax rate		-28.6	%		23.6	%		51.6	%

The significant decrease in the net deferred tax liability shown above was primarily a result of the amortization of intangibles and the repurchase of intercompany treasury stock.

December

31,

2016

and

2015,

the Company had foreign net operating loss carry-forwards of

$1.8

million and

$2.8

million, respectively. The foreign NOLs in existence at

December

31,

2016

do not expire. As of

December

31,

2016

and

2015,

the Company had

material NOLs in the U.S. At

December

31,

2016

and

2015,

the Company had tax credit carry-forwards of

$4.7

million and

$1.0

million, respectively. These credit carry-forwards are scheduled to expire in

2025

and

2026.

As of

December

31,

2016

and

2015,

the Company had a valuation allowance on its deferred tax assets of

$0.7

million and

$2.3

million, respectively. The change in the valuation allowance was primarily due to adjustments to tax attributes in the U.S. and enacted statutory tax rate changes in the United Kingdom.

The remaining valuation allowance at

December

31,

2016

and

2015

relates to deferred tax assets in the foreign jurisdictions. The Company will continue to evaluate its valuation allowance position in each jurisdiction on a regular basis. To the extent the Company determines that all or a portion of its valuation allowance is no longer necessary, the Company will recognize an income tax benefit in the period such determination is made for the reversal of the valuation allowance. Once the valuation allowance is eliminated in whole or in part, it will not be available to offset the Company’s future tax provision.

The Company has recorded a total income tax liability for uncertain tax positions (including interest) of approximately

$4.1

million and

$3.1

million, as of

December

31,

2016

and

2015,

respectively. The Company presently does not expect to settle any of this amount within the next

twelve

months in cash and as such, has reflected the entire balance as other liabilities in the accompanying Consolidated Balance Sheets. The amount represents the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s Consolidated Financial Statements. The liability for uncertain tax positions as of

December

31,

2016

and

2015

mainly pertains to the Company’s interpretation of nexus in certain states related to revenue sourcing for state income tax purposes, as well as uncertain tax positions related to accrued expense items in the U.S. and related party interest in foreign jurisdictions.

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, for the years ended

December

31,

2016,

2015

and

2014

is as follows:

	Year Ended December 31,
(In thousands)	2016		2015			2014
Balance at January 1	$	2,992	$	712		$	550
Increases for tax positions taken during prior periods		38		452			(91	)
Decreases in unrecognized tax benefits related to taxing authority correspondence		-		(280	)		-
Increases for tax positions taken during current period		195		2,108			253
Balance at December 31	$	3,225	$	2,992		$	712

The Company recognizes interest and penalties related to uncertain tax positions as a component of the income tax provision. During

2016,

the Company recorded

$0.5

million of interest and penalties related to uncertain tax positions. During

2015

and

2014,

the Company recorded an immaterial amount of interest and penalties related to uncertain tax positions. Of the unrecognized tax benefits noted above, approximately

$1.7

million would impact the effective tax rate if a future change were to occur. It is reasonably possible that the

$1.6

million of the liability for unrecognized tax benefits will decrease within the next

months.

Currently tax years

2012

2015

remain open and subject to examination in the major tax jurisdictions in which tax returns are filed. The tax years

2009

2011

were examined by the U.S. tax authorities and resulted in no tax adjustments.

Note 22 - Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Text Block]

22.

Quarterly Financial Data (unaudited)

	2016 Quarters Ended
(In thousands, except per share data)	December 31		September 30		June 30			March 31
Total revenues	$	73,024	$	57,873	$	51,951		$	47,208
Income (loss) from operations		33,493		13,268		7,618			(503	)
Net income (loss)		15,283		8,092		(832	)		(4,057	)
Net income (loss) per share:
Basic	$	0.36	$	0.19	$	(0.02	)	$	(0.10	)
Diluted		0.34		0.19		(0.02	)		(0.10	)

		2015 Quarters Ended
(In thousands, except per share data)		December 31		September 30		June 30		March 31
Total revenues	$	55,368	$	33,448	$	34,884	$	29,480
Income from operations		11,568		11,657		11,580		9,654
Net income		10,151		7,236		9,576		6,408
Net income per share:
Basic	$	0.24	$	0.16	$	0.21	$	0.14
Diluted		0.23		0.16		0.21		0.14

Net income per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly net income per share information

may

not equal annual net income per share.

Note 23 - Subsequent Events	12 Months Ended
Note 23 - Subsequent Events	Dec. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	23. Subsequent Event On March 2, 2017, the Company received a Paragraph IV certification notice letter (Notice Letter) regarding an Abbreviated New Drug Application (ANDA) submitted to the FDA by Amneal Pharmaceuticals (Amneal) requesting approval to market, sell and use a generic version of the 8 mcg and 24 mcg AMITIZA® (lubiprostone) soft gelatin capsule products. The Company is currently reviewing the Notice Letter. By statute, if the Company initiates a patent infringement lawsuit against Amneal within 45 days of the notice date, the FDA would automatically stay approval of the Amneal ANDA until the earlier of 30 months from the notice date or entry of a district court decision finding the patents invalid or not infringed. AMITIZA is currently protected by 15 issued patents that are listed in the FDA’s Orange Book, with the latest expiring in 2027.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2016

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

Schedule II – Valuation and Qualifying Accounts

			Additions
	Balance at		Charged to
	Beginning		Costs and						Balance at
(In thousands)	of Year		Expenses			Deductions			End of Year
Allowance for doubtful accounts:
2014	$	440	$	364	(a)	$	(779	)(b)	$	25
2015		25		29			-			54
2016		54		-			(54	)		-
Valuation allowance for deferred tax assets:
2014	$	1,751	$	381	(d)	$	-		$	2,132
2015		2,132		1,177	(e)		(1,032	)(c)		2,277
2016		2,277		-			(1,573	)(f)		704

(a)

2014,

the increase in allowance for doubtful accounts is associated with certain disputed Takeda invoices.

(b)

2014

the deduction from allowance for doubtful accounts resulted from a charge-off of certain disputed Takeda invoices.

(c)

2015,

the net decrease in valuation n allowance for deferred tax assets of

$1.0

million was due primarily to the release of the valuation allowance in certain jurisdictions that management believes the deferred tax assets are more likely than not to be utilized

(d)

The net increase of

$381,000

was primarily due to the additional NOL’s in foreign jurisdictions where management believes it is more likely than not a portion of the NOL balance will expire prior to utilization.

(e)

2015,

the net increase in the valuation allowance of

$1.2

million was a result of the accrual of tax credit carryforwards that are expected to expire prior to utilization.

(f)

2016,

the net decrease is primarily a result of the ability to utilize more of the U.S. tax credit carryforwards and changes in the enacted statutory tax rates in the United Kingdom.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The consolidated financial statements include the accounts of Sucampo Pharmaceuticals, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

days or less at the time of purchase.

Investment, Policy [Policy Text Block]

Non-Current Investments

Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]

Accounts Receivable

Accounts receivable primarily represents amounts due under the North America Takeda Agreement and Japan Mylan Agreement. The Company recorded an immaterial allowance for doubtful accounts at

December

31,

2016

and

2015.

Accounts receivable of

zero,

zero

and

$779,000

were charged off against the allowance for doubtful accounts during the years ended

December

31,

2016,

2015

and

2014.

Inventory, Policy [Policy Text Block]

Inventories

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Restricted Cash

Restricted cash at

December

31,

2016

consisted of a certificate of deposit pledged to support an operating lease for the Company’s former office facility in Bethesda, Maryland. Restricted cash at

December

31,

2015

consisted primarily of

$25.0

million related to the Credit Facility that required the Company to maintain

$25.0

million in a restricted cash account until at least

$35

million of the Term Loans have been repaid or prepaid (see note

17).

The Term Loans were paid in full in

December

2016

and the restricted cash was subsequently released. Further, as part of the R-Tech acquisition,

$17.7

million was held in a restricted cash account for payment of the Ueno and Kuno Trust Notes, which were settled on

February

2016

(see note

17),

and

$8.2

million was held in restricted cash related to the squeeze out of non-

tendering

R-Tech shareholders, which was settled in

January

2016.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Certain Risks, Concentrations and Uncertainties

December

31,

2016

and

2015,

approximately

$1.2

million, or less than

1.0%,

and

$5.9

million, or

3.6%,

Revenues from Takeda, an unrelated party, accounted for

63.9%,

63.3%

and

71.3%

of the Company’s total revenues for the years ended

December

31,

2016,

2015

and

2014,

respectively. Accounts receivable and product royalties receivable from Takeda accounted for

69.6%

and

78.1%

of the Company’s total accounts receivable and product royalties receivable at

December

31,

2016

and

2015.

Revenues from another unrelated party, Mylan, accounted for

31.6%,

35.2%

and

27.8%

of the Company’s total revenues for the years ended

December

31,

2016,

2015

and

2014

. Accounts receivable from Mylan accounted for

30.1%

and

21.9%

of the Company’s total accounts receivable and product royalties receivable at

December

31,

2016

and

2015.

The Company depends significantly upon collaborations with Takeda and Mylan, and its activities

may

be impacted if these relationships are disrupted (see note

19).

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

Variable Interest Entities

December

31,

2016,

Cancer Prevention Pharmaceuticals, Inc. (“CPP”), in which the Company held a variable interest, was determined to be a VIE. See note

for additional information.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The Company’s revenues are derived primarily from product royalties, product sales, development milestone payments, clinical development activities, and contract and collaboration activities.

Multiple-Element Arrangements

The Company evaluated the multiple deliverables within the AMITIZA agreements in accordance with the guidance of multiple deliverables under ASC

605

“

Revenue Recognition — Multiple-Element Arrangements”

below.

Where agreements include contingent milestones, the Company evaluates whether each milestone is substantive. Milestones are considered substantive if all of the following conditions are met:

(1)

(2)

it relates solely to past performance, and

(3)

Research and Development Revenue

The Company applied a time-based model of revenue recognition for cash flows associated with research and development deliverables agreed upon prior to

January

2011

For research and development deliverables agreed upon subsequent to

January

2011

Product Royalty Revenue

Product Sales Revenue

Co-promotion Revenue

December

2014,

the Company ceased co-promoting AMITIZA as a result of the amendment to the North America Takeda Agreement.

Contract and Collaboration Revenue

Contract and Collaboration revenue relates to development and consulting activities and includes the recognition of the

$14.0

million upfront payment received from Takeda in

2014

under the Global Takeda Agreement, of which the Company was obligated to reimburse Takeda for the

first

$6.0

million in developmental expenses incurred by Takeda. Of the

$14.0

million upfront payment, the Company recognized

$5.6

million in

2016,

$400,000

2015,

and

$8.0

million in

2014.

Deferred Revenue

December

31,

2016

and

2015,

total deferred revenue was approximately

$2.1

million and

$1.8

million, respectively.

Total deferred revenue consisted of the following as of:

	December 31,
(In thousands)	2016		2015
Deferred revenue, current	$	1,315	$	676
Deferred revenue, non-current		805		1,088
Total deferred revenue	$	2,120	$	1,764

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

For recording the stock-based compensation expense for service based and market condition options, the Company has chosen to use:

the straight-line method of allocating compensation cost for service based options and graded vesting for market condition options;

the Black-Scholes-Merton option pricing formula for time based options and the Monte Carlo simulation model for the market condition options as the Company’s chosen option-pricing models;

the simplified method to calculate the expected term for options as discussed under the SEC’s guidance for share-based payments for service based options;

an estimate of expected volatility based on the historical volatility of the Company’s share price; and

an estimate for expected forfeitures.

The

three

may

overstate or understate its stock-based compensation expense.

Business Combinations Policy [Policy Text Block]

Mergers and Acquisitions

may

third

20%

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

The Company assesses the carrying value of goodwill on an annual basis, or whenever events or changes in circumstances indicate the carrying value of goodwill

may

not be recoverable to determine whether any impairment in this asset

may

exist and, if so, the extent of such impairment. The provisions of the relevant accounting guidance require that the Company perform a

two

-step impairment test. In the

first

step, the Company compares the fair value of its reporting unit to the carrying value. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the

second

to these consolidated financial statements, the Company operates as

one

operating segment which is considered our only reporting unit.

may

October

as its annual impairment test date.

Research and Development Expense, Policy [Policy Text Block]

Research and Development Expenses

Research and development costs are expensed in the period in which they are incurred and include the expenses from

third

party contract research organizations (CROs) are accrued when it is considered probable that the milestone event will be achieved.

Accrued Research and Development Expenses [Policy Text Block]

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Accrued Research and Development Expenses</div></div></div> <div style=" font-size: 10pt; text-align: justify; text-indent: 18.7pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; text-indent: 18.7pt; margin: 0pt 0">As part of the process of preparing Consolidated Financial Statements, the Company is required to estimate accruals for research and development expenses. This process involves reviewing and identifying services which have been performed by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> parties on the Company’s behalf and determining the value of these services. In addition, the Company makes estimates of costs incurred to date but not yet invoiced, in relation to external CROs and clinical site costs. The Company analyzes the progress of clinical trials, including levels of patient enrollment; invoices received and contracted costs, when evaluating the adequacy of the accrued liabilities for research and development. The Company makes significant judgments and estimates in determining the accrued balance in any accounting period. No material adjustments have been required for this accrual during the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014.</div></div></div></div></div></div></div></div></div></div></div>

Income Tax, Policy [Policy Text Block]

Income Taxes

may

limit the amount of net operating loss (NOL) carry-forwards that can be utilized in the future to offset taxable income. The Company’s discussion of income tax is described more fully under note

found below.

September

2011,

ten

years. As of

December

31,

2016,

2015

and

2014,

the total deferred charge is

$0.1

million,

$1.7

million and

$2.0

million, respectively, after a net current year amortization and impairment expense of

$1.6

million,

$0.3

million and

$3.2

million, respectively. Impairment expense in

2016

was primarily a result of the cessation of commercialization activities for the use of cobiprostone for Oral Mucositis. Impairment expense included in the

$3.2

million for

2014

totaled

$1.8

million and resulted from the cessation of direct commercialization activities for RESCULA in

2014.

may

not occur as a result of any such assertions.

may

be subject to additional U.S. taxes, net of allowable foreign tax credits. It is not practicable to estimate the amount of any additional taxes which

may

be payable on the undistributed earnings.

Income Tax Uncertainties, Policy [Policy Text Block]

Uncertain Tax Positions

50%

likely to be realized upon settlement.

The Company has recorded an income tax liability of approximately

$4.1

million and

$2.9

million, including interest, for uncertain tax positions as of

December

31,

2016

and

2015,

respectively.

As of

December

31,

2016

and

2015,

The Company recognizes interest and penalties related to uncertain tax positions as a component of the income tax provision. It is reasonably possible that the

$1.6

million of the liability for unrecognized tax benefits will decrease within the next

months. In addition, future changes in the unrecognized tax benefits would have an effect on the effective tax rate when recognized.

Currently, tax years

2012

2015

remain open and subject to examination in the major tax jurisdictions in which tax returns are filed.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency

For the year ended

December

31,

2016,

the Company recorded a foreign currency exchange loss of

$11.3

million, which is included in other income (expense), net on the Consolidated Statements of Operations and Comprehensive Income.

Realized and unrealized foreign currency gains or losses on assets and liabilities denominated in a currency other than the functional currency are included in net income.

Comprehensive Income, Policy [Policy Text Block]

Other Comprehensive Income

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

May

2014,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2014

09,

“Revenue from Contracts with Customers”, which will replace numerous requirements in U.S. GAAP, including industry-specific requirements. This guidance provides a

five

2014

December

15,

2017

and interim periods therein. Early adoption is permitted for reporting periods and interim periods therein, beginning after

December

15,

2016.

An entity can elect to apply the guidance under

one

of the following

two

While the Company has not yet completed its final review of the impact of the new standard, the adoption of ASU

2014

could potentially have the following impacts to our contracts:

(i)

Variable consideration including milestone payments, escalating royalty payments based on volume, and product sales price adjustments

may

(ii)

Expense reimbursement revenue of certain R&D projects

may

result in a change in presentation.

January

2018,

and will continue to monitor additional changes, modifications, clarifications or interpretations by the FASB, which

may

impact the Company’s current conclusions.

August

2014,

the FASB issued ASU No.

2014

15,

one

year from the date the financial statements are issued. This guidance is effective for the annual period ending after

December

15,

2016,

and for annual periods and interim periods thereafter. Early application is permitted. The Company has adopted ASU No.

2014

15,

and the adoption had no impact on our consolidated financial statements.

February

2015,

the FASB issued ASU No.

2015

02,

December

15,

2015,

and interim periods therein. The Company has adopted ASU No.

2015

and the adoption had no impact on our consolidated financial statements.

February

2016,

the FASB issued ASU No.

2016

02,

840

December

15,

2018

and interim periods therein. Early adoption is permitted. The Company is currently analyzing the impact of ASU No.

2016

02,

and is currently unable to determine the impact of the new standard, if any, on the Company’s consolidated financial statements.

March

2016,

the FASB issued ASU No.

2016

09,

January

2017.

The Company is currently analyzing the impact of ASU No.

2016

09,

and is currently unable to determine the impact of the new standard, if any, on the Company’s consolidated financial statements.

August

2016,

the FASB issued ASU No.

2016

15,

2015

December

15,

2017

and interim periods therein. Early adoption is permitted. The Company elected to early adopt ASU No.

2017

for the annual period ending

December

31,

2016.

The adoption required the Company to classify debt extinguishment costs as financing as opposed to operating in the consolidated statement of cash flows.

October

2016,

the FASB issued ASU No.

2016

16,

December

15,

2017.

2016

on its consolidated financial statements.

November

2016,

the FASB issued ASU No.

2016

18,

one

December

15,

2017

and interim periods therein and is to be applied retrospectively. Early adoption is permitted. The Company is currently analyzing the impact of ASU No.

2016

on its consolidated financial statements.

January

2017,

the FASB issued ASU No.

2017

01,

December

15,

2017.

Early adoption is permitted, including annual periods in which the financial statements have not been issued. The Company elected to early adopt ASU No.

2017

for the annual period ending

December

31,

2016.

The adoption had no impact on the Company’s consolidated financial statements.

Note 2 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Deferred Revenue, by Arrangement, Disclosure [Table Text Block]

	December 31,
(In thousands)	2016		2015
Deferred revenue, current	$	1,315	$	676
Deferred revenue, non-current		805		1,088
Total deferred revenue	$	2,120	$	1,764

Note 3 - Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Year Ended December 31,
(In thousands, except per share data)	2016		2015		2014
Basic net income per share:
Net income	$	18,487	$	33,371	$	13,128
Weighted-average number of common shares-basic		42,791		44,150		43,691

Basic net income per share	$	0.43	$	0.76	$	0.30

Diluted net income per share:
Net income	$	18,487	$	33,371	$	13,128
Interest expense applicable to convertible debt, net of tax		64		-		-
Amortization of debt issuance costs, net of tax		12		-		-
Net income for calculation of diluted net income per share		18,563		33,371		13,128

Weighted-average number of common shares-basic		42,791		44,150		43,691
Assumed exercise of stock options under the treasury-stock method		711		1,530		815
Assumed shares under if-converted method		247		-		-
Weighted-average number of common shares-diluted		43,749		45,680		44,506

Diluted net income per share	$	0.42	$	0.73	$	0.29

Schedule of Potentially Dilutive Securities [Table Text Block]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	December 31,
(In thousands)	2016		2015		2014
Employee stock options		2,387		1,188		3,012

Note 4 - Segment Information (Tables)

12 Months Ended

Dec. 31, 2016

Revenue from External Customers by Products and Services [Table Text Block]

	Years Ended December 31,
(In thousands)	2016		2015		2014
Product royalty revenue	$	82,480	$	74,138	$	62,775
Product sales revenue		128,796		66,276		33,252
Research and development revenue		12,839		10,199		7,246
Contract and collaboration revenue		5,941		2,567		8,817
Co-promotion revenue		-		-		3,360
Total	$	230,056	$	153,180	$	115,450

Revenue from External Customers by Geographic Areas [Table Text Block]

	Years Ended December 31,
(In thousands)	2016		2015		2014
United States	$	140,240	$	95,769	$	74,688
Japan		83,130		55,371		32,128
Rest of the world		6,686		2,040		8,634
Total	$	230,056	$	153,180	$	115,450

Long-lived Assets by Geographic Areas [Table Text Block]

	December 31,
(In thousands)	2016		2015		2014
United States	$	3,065	$	3,105	$	566
Japan		3,119		3,232		114
Rest of the world		32		56		83
Total	$	6,216	$	6,393	$	763

Note 5 - Acquisition of R-Tech (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

(In thousands)
Cash	$	62,097
Accounts receivable		8,299
Inventory (i)		37,563
Prepaid expenses		3,792
Property, plant and equipment		2,796
Other long term assets		449
Accounts payable and accrued liabilities		(11,598	)
Income tax payable		(5,025	)
Other liabilities, current		(3,282	)
Deferred tax liability, net		(63,365	)
Other liabilities, long termW		(9,347	)
R-Tech shares of Sucampo stock (treasury stock)		43,956
Total fair value of tangible assets acquired and liabilities assumed		66,335
Acquired in-process research and development		6,200
Acquired intangible assets		134,600
Goodwill		61,618
Total purchase price	$	268,753

Total purchase price	$	268,753
Settlement of net receivable from pre-existing relationship		6,364
Total consideration	$	275,117

Acquisition, net of acquired cash	$	161,187
Acquired cash		62,097
Purchase of treasury stock		43,956
Squeeze out liability for non-tendering R-Tech shareholders		7,668
Other		209
Total consideration	$	275,117

Business Acquisition, Pro Forma Information [Table Text Block]

(In thousands)	As of October 20, 2015		Amortization period in years

Acquired in-process research and development	$	6,200		Indefinite
Acquired intangible assets:
AMITIZA - manufacturing know-how		120,200		14
RESCULA - manufacturing know-how		14,400		10
	$	134,600

Note 6 - Restructuring (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring and Related Costs [Table Text Block]

	Years ended December 31,
(In thousands)	2016		2015
Termination benefits	$	1,802	$	953
Asset impairments		183		-
Contract and other costs		365		-
Total	$	2,350	$	953

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

(In thousands)	Accrued Restructuring
Balance at December 31, 2014	$	-
Expenses incurred		953
Amounts paid		(102	)
Balance at December 31, 2015	$	851
Expenses incurred	$	2,167
Amounts paid		(2,869	)
Foreign currency translation adjustment		14
Balance at December 31, 2016	$	163

Note 9 - Inventories (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Inventory, Current [Table Text Block]

	December 31,
(In thousands)	2016		2015
Raw materials	$	1,414	$	5,554
Work in process		18,045		26,926
Finished goods		4,009		641
Total	$	23,468	$	33,121

Note 10 - Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Table Text Block]

	December 31,
(In thousands)	2016			2015
Computer and office equipment	$	2,346		$	2,647
Furniture and fixtures		1,068			1,023
Leasehold improvements		3,346			3,066
Buildings		888			1,022
Machinery and equipment		2,176			2,074
Construction in progress		119			140
Total cost		9,943			9,972
Less: accumulated depreciation		(3,727	)		(3,579	)
Total	$	6,216		$	6,393

Note 11 - Intangible Assets, In-process Research and Development and Goodwill (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Intangible Assets and Goodwill [Table Text Block]

	December 31, 2016					December 31, 2015
(In thousands)	Weighted average life (in months)		Carrying amount			Weighted average life (in months)		Carrying amount
Amortized intangible assets
Patent and license rights		60	$	10,513			72	$	10,513
Manufacturing know how		65		134,600			76		134,600
Accumulated amortization				(34,142	)				(8,463	)
Impairment losses				(5,651	)				(5,651	)
Foreign currency translation adjustments				22,814					(684	)
Total amortized intangible assets			$	128,134				$	130,315

Unamortized intangible assets
In-process research and development			$	-				$	6,171
Goodwill				73,022					60,937
Total unamortized intangible assets			$	73,022				$	67,108

Total intangible assets			$	201,156				$	197,423

Schedule of Changes in Intangible Assets and Goodwill [Table Text Block]

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; margin-left: 0.25in;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">(In thousands)</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid">Intangibles</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid">Goodwill</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1.1pt"> </td> <td nowrap="nowrap" colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.1pt solid">In-process <br /> research & <br /> development</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 58%; font-size: 10pt">Balance at December 31, 2014</td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">151</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 2%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-left: 10pt">Additions</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">134,600</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">61,228</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,200</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-left: 10pt">Amortization</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(3,752</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1.1pt; padding-left: 10pt">Foreign currency translation adjustment</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(684</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(291</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(29</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Balance at December 31, 2015</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">130,315</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60,937</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,171</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-left: 10pt">Additions</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">462</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-left: 10pt">Amortization</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(25,679</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Foreign currency translation adjustment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,498</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,623</div></td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,115</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1.1pt; padding-left: 10pt">Impairment of in-process research & development</td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1.1pt"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(7,286</div></td> <td style="border-bottom: Black 1.1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Balance at December 31, 2016</td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">128,134</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">73,022</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"> </td> </tr> </table></div>

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

(In thousands)	Amortization
Years ended December 31,
2017	$	26,990
2018		26,990
2019		26,990
2020		26,990
2021		4,009

Note 12 - Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Accrued Liabilities [Table Text Block]

	December 31,
(In thousands)	2016		2015
Research and development costs	$	3,030	$	3,843
Employee compensation		7,513		4,860
Restructuring		163		851
Selling and marketing costs		40		1
Legal and accounting fees		622		428
Other accrued expenses		1,021		903
Total	$	12,389	$	10,886

Note 14 - Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Other Current Liabilities [Table Text Block]

	December 31,
(In thousands)	2016		2015
Indirect taxes payable	$	1,756	$	5,963
Squeeze out liability for non-tendering R-Tech shareholders		155		7,668
Other current liabilities		393		508
Total	$	2,304	$	14,139

Note 15 - Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Other Noncurrent Liabilities [Table Text Block]

	December 31,
(In thousands)	2016		2015
Deferred grants	$	750	$	9,604
Unrecognized tax benefits		4,060		3,061
Deferred leasehold incentive		1,582		1,715
Defined benefit obligation		818		949
Other liabilities		1,581		414
Total	$	8,791	$	15,743

Note 16 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

(In thousands)
2017	$	1,980
2018		1,727
2019		1,491
2020		1,096
2021		995
Total minimum lease payments	$	7,289

Note 17 - Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2016

(In thousands)	January 1 through October 20, 2015		Year Ended December 31, 2014
Clinical supplies	$	155	$	396
Other research and development services		347		171
Commercial supplies		21,415		15,776
	$	21,917	$	16,343

Note 18 - Credit Facility and Convertible Notes Payable (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Debt [Table Text Block]

	December 31,
(In thousands)	2016		2015
Credit facility notes payable	$	-	$	252,360
Convertible notes payable		290,516		-
	$	290,516	$	252,360

Notes payable, current	$	-	$	39,083
Notes payable, non-current		290,516		213,277
	$	290,516	$	252,360

Note 20 - Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Year Ended December 31,
	2016			2015			2014
Expected volatility	54%	-	56%	54%	-	70%	70%	-	72%
Risk-free interest rate	1.28%	-	1.57%	1.34%	-	1.93%	1.63%	-	2.01%
Expected term (in years)	6.08	-	6.25	5.28	-	6.25	5.28	-	6.25
Expected dividend yield		0%			0%			0%

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

	Year Ended December 31,
(In thousands)	2016		2015		2014
Research and development expense	$	2,136	$	2,165	$	349
General and administrative expense		5,028		5,053		1,816
Selling and marketing expense		119		131		122
Total	$	7,283	$	7,349	$	2,287

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

2001 Stock Incentive Plan	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Options outstanding, December 31, 2015		37,400		$	10.00
Options exercised		(20,400	)	$	10.00
Options expired		(17,000	)	$	10.00
Options outstanding, December 31, 2016		-						-
Options exercisable, December 31, 2016		-						-
Options vested and expected to vest, December 31, 2016		-						-

2006 Stock Incentive Plan	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2015		4,440,608		$	9.37
Options granted		1,266,050		$	13.60
Options exercised		(862,740	)	$	6.71
Options forfeited		(134,379	)	$	13.05
Options expired		(60,990	)	$	14.49
Options outstanding, December 31, 2016		4,648,549		$	10.86		8.0	$	14,770,043
Options exercisable, December 31, 2016		1,729,000		$	8.73		7.0	$	9,017,049
Options vested and expected to vest, December 31, 2016		3,643,698		$	10.50		7.8	$	12,774,846

2016 Equity Incentive Plan	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2015		-
Options granted		75,814		$	12.58
Options exercised		(1,064	)	$	6.75
Options expired		-
Options outstanding, December 31, 2016		74,750		$	12.66		5.0	$	81,741
Options exercisable, December 31, 2016		36,700		$	13.97		0.1	$	0
Options vested and expected to vest, December 31, 2016		55,956		$	13.09		3.4	$	41,367

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

2016 Equity Incentive Plan	Shares		Weighted Average Grant Date Fair Value
Nonvested Restricted Stock Units, December 31, 2015		-		-
Restricted Stock Units granted		63,700	$	12.29
Restricted Stock Units vested		-		-
Restricted Stock Units forfeited		-		-
Nonvested Restricted Stock Units, December 31, 2016		63,700	$	12.29

Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block]

	Years Ended December 31,
(In thousands, except share amounts)	2016		2015		2014
Shares issued under the ESPP		22,395		9,085		5,853
Cash received under the ESPP	$	213	$	128	$	35

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

(In thousands)	Foreign currency translation adjustments			Unrealized income (loss) on investments, net of tax effect			Unrealized income (loss) on pension benefit obligation			Accumulated other comprehensive income (loss)
Balance at December 31, 2013	$	15,559		$	42		$	-		$	15,601
Other comprehensive loss before reclassifications		(351	)		(7	)		(978	)		(1,336	)
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-			-
Balance at December 31, 2014	$	15,208		$	35		$	(978	)	$	14,265
Other comprehensive income (loss) before reclassifications		(965	)		7			105			(853	)
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-			-
Balance at December 31, 2015	$	14,243		$	42		$	(873	)	$	13,412
Other comprehensive income before reclassifications		40,876			-			239			41,115
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-			-
Balance at December 31, 2016	$	55,119		$	42		$	(634	)	$	54,527

Note 21 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	Year Ending December 31,
(In thousands)	2016		2015		2014
U.S.	$	1,153	$	14,685	$	18,005
Foreign		13,222		28,990		9,128
Total income before income taxes	$	14,375	$	43,675	$	27,133

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended December 31,
(In thousands)	2016			2015			2014
Current tax provision
U.S. Federal	$	9,749		$	15,678		$	11,319
U.S. State		334			1,810			1,351
Foreign		21,123			2,709			793
Total current tax provision		31,206			20,197			13,463

Deferred provision (benefit):
U.S. Federal		(5,062	)		(6,375	)		(172	)
U.S. State		(340	)		(899	)		(16	)
Foreign		(29,916	)		(2,619	)		730
Total deferred provision (benefit)		(35,318	)		(9,893	)		542

Total income tax provision (benefit)	$	(4,112	)	$	10,304		$	14,005

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
	2016			2015
(In thousands)
Deferred tax assets:
Foreign net operating loss carry-forwards	$	309		$	716
State net operating loss carry-forwards		279			2
Tax credit carry-forwards		4,694			976
Deferred revenue		370			446
Accrued expenses		2,517			1,450
Tax benefits on stock options		3,870			3,288
Research and development credits		469			1,759
Deductible state taxes		1,351			-
Other		601			3,775
Gross deferred tax assets		14,460			12,412

Deferred tax liabilities:
Property and equipment		(1,000	)		(654	)
Inventory		-			(3,990	)
Investments		-			(13,963	)
Intangibles		(34,046	)		(44,025	)
Gross deferred tax liabilities		(35,046	)		(62,632	)

Less: valuation allowance		(704	)		(2,277	)
Net deferred tax assets (liabilities)	$	(21,290	)	$	(52,497	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended December 31,
(In thousands)	2016			2015			2014
Federal tax at statutory rates		35.0	%		35.0	%		35.0	%
State taxes, net of federal tax benefit		-0.4	%		0.9	%		2.1	%
Foreign tax rate differential		-83.2	%		-16.8	%		-3.7	%
Changes in valuation allowance		-0.4	%		0.5	%		1.4	%
Nondeductible expenses		0.0	%		2.3	%		1.7	%
Stock based compensation		2.3	%		0.6	%		-0.1	%
Impact of intangible transfer		11.2	%		0.7	%		5.8	%
Impact of uncertain tax positions		3.0	%		1.8	%		-0.2	%
Adjustment to deferred tax asset		3.1	%		-1.6	%		0.5	%
Exchange gain/(loss)		-13.5	%		0.0	%		0.0	%
Subpart F income, net of FTC		11.5	%		2.3	%		9.1	%
Loan forgiveness		0.0	%		-2.3	%		0.0	%
Japanese R&D credit		-4.6	%		-1.6	%		0.0	%
Impact of subsidiary wind up		-11.2	%		0.0	%		0.0	%
Deductible and withholding taxes		3.2	%		0.0	%		0.0	%
Nondeductible interest		13.4	%		0.0	%		0.0	%
Changes in other tax matters		2.0	%		1.8	%		0.0	%
Effective tax rate		-28.6	%		23.6	%		51.6	%

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	Year Ended December 31,
(In thousands)	2016		2015			2014
Balance at January 1	$	2,992	$	712		$	550
Increases for tax positions taken during prior periods		38		452			(91	)
Decreases in unrecognized tax benefits related to taxing authority correspondence		-		(280	)		-
Increases for tax positions taken during current period		195		2,108			253
Balance at December 31	$	3,225	$	2,992		$	712

Note 22 - Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Table Text Block]

	2016 Quarters Ended
(In thousands, except per share data)	December 31		September 30		June 30			March 31
Total revenues	$	73,024	$	57,873	$	51,951		$	47,208
Income (loss) from operations		33,493		13,268		7,618			(503	)
Net income (loss)		15,283		8,092		(832	)		(4,057	)
Net income (loss) per share:
Basic	$	0.36	$	0.19	$	(0.02	)	$	(0.10	)
Diluted		0.34		0.19		(0.02	)		(0.10	)

		2015 Quarters Ended
(In thousands, except per share data)		December 31		September 30		June 30		March 31
Total revenues	$	55,368	$	33,448	$	34,884	$	29,480
Income from operations		11,568		11,657		11,580		9,654
Net income		10,151		7,236		9,576		6,408
Net income per share:
Basic	$	0.24	$	0.16	$	0.21	$	0.14
Diluted		0.23		0.16		0.21		0.14

Schedule II - Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Valuation Allowance [Table Text Block]

			Additions
	Balance at		Charged to
	Beginning		Costs and						Balance at
(In thousands)	of Year		Expenses			Deductions			End of Year
Allowance for doubtful accounts:
2014	$	440	$	364	(a)	$	(779	)(b)	$	25
2015		25		29			-			54
2016		54		-			(54	)		-
Valuation allowance for deferred tax assets:
2014	$	1,751	$	381	(d)	$	-		$	2,132
2015		2,132		1,177	(e)		(1,032	)(c)		2,277
2016		2,277		-			(1,573	)(f)		704

Note 1 - Business Organization and Basis of Presentation (Details Textual) - USD ($)	1 Months Ended		2 Months Ended	12 Months Ended
	Jun. 30, 2015	May 31, 2015	Jun. 30, 2015	Dec. 31, 2016
Takeda [Member] \| Lubiprostone Alternate Formulation [Member]
Additional Reformulation Costs Funded, Percentage				100.00%
Takeda [Member] \| Lubiprostone for Pediatric Functional Constipation [Member]
Additional Reformulation Costs Funded, Percentage				70.00%
Gloria [Member] \| China Gloria Agreement [Member]
Collaboration Revenue from Upfront Payment			$ 1,500,000	$ 1,500,000
Gloria [Member] \| First Tranche [Member] \| China Gloria Agreement [Member]
Collaboration Revenue from Upfront Payment		$ 1,000,000
Gloria [Member] \| Second Tranche [Member] \| China Gloria Agreement [Member]
Collaboration Revenue from Upfront Payment	$ 500,000

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Oct. 31, 2014	Oct. 31, 2004
Allowance for Doubtful Accounts Receivable, Write-offs		$ 0	$ 0	$ 779,000
Cash, FDIC Insured Amount		$ 1,200,000	$ 5,900,000
Percentage of Deposit within Federally Insured Limits		1.00%	3.60%
Deferred Revenue		$ 2,120,000	$ 1,764,000
Number of Reporting Units		1
Deferred Costs	$ 2,000,000	$ 100,000	1,700,000	2,000,000
Amortization and Impairment of Deferred Charges		1,600,000	300,000	3,200,000
Liability for Uncertainty in Income Taxes, Noncurrent		4,060,000	3,061,000
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit		$ 1,600,000
Number of Operating Segments		1
Other Income (Expense) [Member]
Foreign Currency Transaction Gain (Loss), Realized		$ 11,300,000
Earliest Tax Year [Member]
Open Tax Year		2012
Latest Tax Year [Member]
Open Tax Year		2015
Other Liabilities [Member]
Liability for Uncertainty in Income Taxes, Noncurrent		$ 4,100,000	2,900,000
RESCULA [Member]
Amortization and Impairment of Deferred Charges				1,800,000
In Process Research and Development [Member]
Fair Value Assumptions, Intangible Assets, Expected Return on Costs Incurred		20.00%
Up-front Payment Arrangement [Member] \| Takeda [Member]
Deferred Revenue			2,400,000			$ 17,600,000
Global License Agreement [Member] \| Takeda [Member]
Development Expenses to Be Assumed	6,000,000			6,000,000	$ 6,000,000
Licenses Revenue	8,000,000	$ 5,600,000	$ 400,000	8,000,000
Global License Agreement [Member] \| Up-front Payment Arrangement [Member] \| Takeda [Member]
Deferred Revenue	$ 14,000,000	$ 14,000,000		$ 14,000,000
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member] \| Takeda [Member]
Concentration Risk, Percentage		63.90%	63.30%	71.30%
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member] \| Mylan [Member]
Concentration Risk, Percentage		31.60%	35.20%	27.80%
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Takeda [Member]
Concentration Risk, Percentage		69.60%	78.10%
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Mylan [Member]
Concentration Risk, Percentage		30.10%	21.90%
R-Tech [Member] \| Non-tendering R-tech Shareholders [Member]
Debt Instrument, Covenant, Restricted Cash Account, Balance			$ 8,200,000
Subordinated Unsecured Promissory Notes [Member] \| R-Tech [Member] \| Kuno and Ueno Trust [Member]
Debt Instrument, Covenant, Restricted Cash Account, Balance			17,700,000
Credit Facility [Member] \| Term Loans [Member]
Debt Instrument, Covenant, Restricted Cash Account, Balance			25,000,000
Debt Instrument, Covenant, Restricted Cash Account, Balance, Loan Repaid or Prepaid, Amount			$ 35,000,000

Note 2 - Summary of Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred revenue, current	$ 1,315	$ 676
Deferred revenue, non-current	805	1,088
Total deferred revenue	$ 2,120	$ 1,764

The carrying amount of consideration received or receivable as of the balance sheet date on potential earnings that were not recognized as revenue in conformity with GAAP, and which are expected to be recognized as such within one year or the normal operating cycle, if longer, including sales, license fees, and royalties, but excluding interest income.

+ References + Details

Charged to Costs and Expenses

The noncurrent portion of deferred revenue amount as of balance sheet date. Deferred revenue is a liability related to a revenue producing activity for which revenue has not yet been recognized, and is not expected to be recognized in the next twelve months. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

+ References + Details

Note 3 - Net Income Per Share - Computation of Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Basic net income per share:
Net income	$ 15,283	$ 8,092	$ (832)	$ (4,057)	$ 10,151	$ 7,236	$ 9,576	$ 6,408	$ 18,487	$ 33,371	$ 13,128
Weighted-average number of common shares-basic (in shares)									42,791	44,150	43,691
Basic net income per share (in dollars per share)	$ 0.36	$ 0.19	$ (0.02)	$ (0.10)	$ 0.24	$ 0.16	$ 0.21	$ 0.14	$ 0.43	$ 0.76	$ 0.30
Diluted net income per share:
Net income	$ 15,283	$ 8,092	$ (832)	$ (4,057)	$ 10,151	$ 7,236	$ 9,576	$ 6,408	$ 18,487	$ 33,371	$ 13,128
Interest expense applicable to convertible debt, net of tax									64
Amortization of debt issuance costs, net of tax									12
Net income for calculation of diluted net income per share									$ 18,563	$ 33,371	$ 13,128
Weighted-average number of common shares-basic (in shares)									42,791	44,150	43,691
Assumed exercise of stock options under the treasury-stock method (in shares)									711	1,530	815
Assumed shares under if-converted method (in shares)									247
Weighted-average number of common shares-diluted (in shares)									43,749	45,680	44,506
Diluted net income per share (in dollars per share)	$ 0.34	$ 0.19	$ (0.02)	$ (0.10)	$ 0.23	$ 0.16	$ 0.21	$ 0.14	$ 0.42	$ 0.73	$ 0.29

Note 3 - Net Income Per Share - Potentially Dilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Potentially dilutive securities (in shares)	711	1,530	815
Employee Stock Option [Member]
Potentially dilutive securities (in shares)	2,400	3,290	1,124
Non-Employee Stock Options [Member]
Potentially dilutive securities (in shares)			255

Note 3 - Net Income Per Share - Antidilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Stock Option [Member]
Antidilutive securities (in shares)	2,387	1,188	3,012

Note 4 - Segment Information (Details Textual)	12 Months Ended
Note 4 - Segment Information (Details Textual)	Dec. 31, 2016
Number of Operating Segments	1

Note 4 - Segment Information - Revenues by Product Category (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Product royalty revenue									$ 82,480	$ 74,138	$ 62,775
Product sales revenue									128,796	66,276	33,252
Research and development revenue									12,839	10,199	7,246
Contract and collaboration revenue									5,941	2,567	8,817
Co-promotion revenue											3,360
Total	$ 73,024	$ 57,873	$ 51,951	$ 47,208	$ 55,368	$ 33,448	$ 34,884	$ 29,480	$ 230,056	$ 153,180	$ 115,450

Note 4 - Segment Information - Revenues by Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues	$ 73,024	$ 57,873	$ 51,951	$ 47,208	$ 55,368	$ 33,448	$ 34,884	$ 29,480	$ 230,056	$ 153,180	$ 115,450
UNITED STATES
Revenues									140,240	95,769	74,688
JAPAN
Revenues									83,130	55,371	32,128
Rest of the World [Member]
Revenues									$ 6,686	$ 2,040	$ 8,634

Note 4 - Segment Information - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Long-lived assets	$ 6,216	$ 6,393	$ 763
UNITED STATES
Long-lived assets	3,065	3,105	566
JAPAN
Long-lived assets	3,119	3,232	114
Rest of the World [Member]
Long-lived assets	$ 32	$ 56	$ 83

Note 5 - Acquisition of R-Tech (Details Textual) ¥ / shares in Units, ¥ in Millions, shares in Millions						1 Months Ended		12 Months Ended
	Dec. 08, 2015 USD ($)	Dec. 08, 2015 JPY (¥)	Oct. 20, 2015 USD ($)	Aug. 15, 2015 USD ($)	Aug. 15, 2015 JPY (¥) ¥ / shares	Aug. 31, 2015 USD ($) shares	Aug. 31, 2015 JPY (¥)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Aug. 31, 2015 ¥ / shares
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, In-process Research and Development			$ 6,200,000
Finite-Lived Intangible Asset, Useful Life								5 years 150 days	6 years 120 days
Amortization of Intangible Assets								$ 25,679,000	$ 3,752,000	$ 636,000
Goodwill								73,022,000	60,937,000
Cost of Sales [Member]
Amortization of Intangible Assets								$ 25,700,000	$ 3,700,000
RESCULA [Member]
Finite-Lived Intangible Asset, Useful Life								10 years
AMITIZA [Member]
Finite-Lived Intangible Asset, Useful Life								14 years
Patent and License Rights [Member]
Finite-Lived Intangible Asset, Useful Life								5 years	6 years
R-Tech [Member]
Business Acquisition, Percentage of Voting Interests Acquired	2.00%	2.00%	98.00%		44.00%	56.00%
Business Acquisition, Share Price \| ¥ / shares					¥ 1,400						¥ 1,900
Business Combination, Consideration Transferred	$ 7,700,000	¥ 926	$ 275,117,000	$ 100,000,000	¥ 12,000	$ 175,000,000	¥ 21,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents			62,097,000			$ 62,100,000
Business Combination, Shares of the Acquirer Held by the Acquiree \| shares						2.5
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory, Fair Value Adjustment			20,100,000
Business Acquisition, Additional Cost of Goods Sold Related to Amortization of Set-up Adjustment								$ 15,200,000	$ 5,800,000
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, In-process Research and Development			$ 6,200,000
Replacement Cost Approach, Expected Return, Rate			20.00%
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life								6 years 180 days
Goodwill			$ 61,618,000					$ 61,600,000
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual									11,800,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual									4,700,000
R-Tech [Member] \| General and Administrative Expense [Member]
Business Acquisition, Transaction Costs									$ 5,200,000
R-Tech [Member] \| AMITIZA and RESCULA [Member]
Fair Value Inputs, Discount Rate								18.00%
R-Tech [Member] \| RESCULA [Member]
Finite-Lived Intangible Asset, Useful Life								10 years
R-Tech [Member] \| AMITIZA [Member]
Finite-Lived Intangible Asset, Useful Life								14 years
R-Tech [Member] \| Patent and License Rights [Member]
Finite-Lived Intangible Asset, Useful Life								5 years

Note 5 - Acquisition of R-Tech - Allocation of the Purchase Price of Assets Acquired and Liabilities Assumed (Details) $ in Thousands, ¥ in Millions						1 Months Ended		12 Months Ended
	Dec. 08, 2015 USD ($)	Dec. 08, 2015 JPY (¥)	Oct. 20, 2015 USD ($)	Aug. 15, 2015 USD ($)	Aug. 15, 2015 JPY (¥)	Aug. 31, 2015 USD ($)	Aug. 31, 2015 JPY (¥)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, In-process Research and Development			$ 6,200
Acquired intangible assets			134,600
Goodwill								$ 73,022	$ 60,937
Acquisition, net of acquired cash									161,187
Squeeze out liability for non-tendering R-Tech shareholders								155	$ 7,668
R-Tech [Member]
Cash			62,097			$ 62,100
Accounts receivable			8,299
Inventory			37,563
Prepaid expenses			3,792
Property, plant and equipment			2,796
Other long term assets			449
Accounts payable and accrued liabilities			(11,598)
Income tax payable			(5,025)
Other liabilities, current			(3,282)
Deferred tax liability, net			(63,365)
Other liabilities, long termW			(9,347)
R-Tech shares of Sucampo stock (treasury stock)			43,956
Total fair value of tangible assets acquired and liabilities assumed			66,335
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, In-process Research and Development			6,200
Acquired intangible assets			134,600
Goodwill			61,618					$ 61,600
Total purchase price			268,753
Settlement of net receivable from pre-existing relationship			6,364
Total consideration	$ 7,700	¥ 926	275,117	$ 100,000	¥ 12,000	$ 175,000	¥ 21,000
Acquisition, net of acquired cash			161,187
Acquired cash			62,097
Squeeze out liability for non-tendering R-Tech shareholders			7,668
Other			$ 209

Note 5 - Acquisition of R-Tech - Acquisition Pro Forma Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Oct. 20, 2015
Acquired in-process research and development			$ 6.2
Acquired intangible assets			134.6
Amortization period in years (Year)	5 years 150 days	6 years 120 days
AMITIZA [Member]
Acquired intangible assets			120.2
Amortization period in years (Year)	14 years
RESCULA [Member]
Acquired intangible assets			$ 14.4
Amortization period in years (Year)	10 years

Note 6 - Restructuring (Details Textual) - USD ($)	12 Months Ended
Note 6 - Restructuring (Details Textual) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Restructuring Charges	$ 2,350,000	$ 953,000
Restructuring Reserve	$ 163,000	$ 851,000

Note 6 - Restructuring - Restructuring Charges (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Termination benefits	$ 1,802,000	$ 953,000
Asset impairments	183,000
Contract and other costs	365,000
Total	$ 2,350,000	$ 953,000

Note 6 - Restructuring - Cash Components of Restructuring Costs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Balance	$ 851,000
Expenses incurred	2,350,000	$ 953,000
Balance	163,000	851,000
One-time Termination Benefits [Member]
Balance	851,000	0
Expenses incurred	2,167,000	953,000
Amounts paid	(2,869,000)	(102,000)
Balance	163,000	$ 851,000
Foreign currency translation adjustment	$ 14,000

Note 7 - Non-current Investment (Details Textual) $ in Thousands		1 Months Ended	6 Months Ended	12 Months Ended
	Jan. 09, 2016 USD ($)	Jan. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
Number of Tranches			2	2
Assets			$ 520,851	$ 520,851		$ 457,181
Liabilities			353,752	353,752		$ 370,732
Convertible Debt [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.00%
CPP [Member]
Collaboration Agreement, Amount of Investment	$ 5,000
Collaboration Agreement, Minimum Aggregate Proceeds Contingent on Consummation of Future Financing	10,000
Collaboration Agreement, Amount of Equity Investment	5,000
Option Fee, Maximum	$ 7,500
Payment of Option Fee		$ 3,000	4,500
Maximum Aggregate License Fees and Milestone Payments				190,000
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount			5,200	5,200
Assets					$ 4,700
Liabilities					$ 20,600
CPP [Member] \| Fair Value, Inputs, Level 3 [Member]
Notes Receivable, Fair Value Disclosure			$ 5,200	$ 5,200
CPP [Member] \| IPO [Member] \| Minimum [Member]
Collaboration Agreement, Discount under Qualified Financing	10.00%
CPP [Member] \| IPO [Member] \| Maximum [Member]
Collaboration Agreement, Discount under Qualified Financing	20.00%

Note 8 - Fair Value Measurements (Details Textual) $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($)
CPP [Member] \| Other Income [Member]
Notes Receivable, Fair Value Disclosure, Increase (Decrease) in Fair Value	$ 0.2
Fair Value, Inputs, Level 3 [Member] \| CPP [Member]
Notes Receivable, Fair Value Disclosure	5.2
Fair Value, Inputs, Level 2 [Member]
Notes Payable, Fair Value Disclosure	$ 319.5

Note 9 - Inventories (Details Textual) - R-Tech [Member] - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Oct. 20, 2015
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory			$ 37,563,000
Remaining Portion of Step-Up Measurement [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	$ 0	$ 14,300,000

Note 9 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Raw materials	$ 1,414	$ 5,554
Work in process	18,045	26,926
Finished goods	4,009	641
Total	$ 23,468	$ 33,121

Note 10 - Property and Equipment (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Depreciation	$ 904,000	$ 637,000	$ 422,000

Note 10 - Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property and equipment, gross	$ 9,943	$ 9,972
Less: accumulated depreciation	(3,727)	(3,579)
Total	6,216	6,393
Office Equipment [Member]
Property and equipment, gross	2,346	2,647
Furniture and Fixtures [Member]
Property and equipment, gross	1,068	1,023
Leasehold Improvements [Member]
Property and equipment, gross	3,346	3,066
Building [Member]
Property and equipment, gross	888	1,022
Machinery and Equipment [Member]
Property and equipment, gross	2,176	2,074
Construction in Progress [Member]
Property and equipment, gross	$ 119	$ 140

Note 11 - Intangible Assets, In-process Research and Development and Goodwill (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Amortization of Intangible Assets	$ 25,679,000	$ 3,752,000	$ 636,000
Finite-Lived Intangible Asset, Useful Life	5 years 150 days	6 years 120 days
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	$ 7,286,000
In Process Research and Development, before Completion of Development Process [Member]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	$ 7,300,000
RESCULA [Member]
Finite-Lived Intangible Asset, Useful Life	10 years
AMITIZA [Member]
Finite-Lived Intangible Asset, Useful Life	14 years
Patent and License Rights [Member]
Finite-Lived Intangible Asset, Useful Life	5 years	6 years

Note 11 - Intangible Assets, In-process Research and Development and Goodwill - Intangible Assets by Major Class (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Amortization period in years (Year)	5 years 150 days	6 years 120 days
Accumulated amortization	$ (34,142)	$ (8,463)
Impairment losses	(5,651)	(5,651)
Foreign currency translation adjustments	22,814	(684)
Intangible assets	128,134	130,315	$ 151
In-process research & development		6,171
Goodwill	73,022	60,937
Total unamortized intangible assets	73,022	67,108
Total intangible assets	201,156	197,423
In Process Research and Development, before Completion of Development Process [Member]
In-process research & development		$ 6,171	$ 0
Patent and License Rights [Member]
Amortization period in years (Year)	5 years	6 years
Amortized intangible assets, carrying amount	$ 10,513	$ 10,513
Manufacturing Know How [Member]
Amortization period in years (Year)	5 years 150 days	6 years 120 days
Amortized intangible assets, carrying amount	$ 134,600	$ 134,600

Note 11 - Intangible Assets, In-process Research and Development and Goodwill - Changes in Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-lived intangible assets, balance	$ 130,315,000	$ 151,000
Goodwill, balance	60,937,000
Indefinite-lived intangible assets, balance	6,171,000
Finite-lived intangible assets, additions		134,600,000
Goodwill, additions	462,000	61,228,000
Finite-lived intangible assets, amortization	(25,679,000)	(3,752,000)	$ (636,000)
Finite-lived intangible assets, foreign currency translation adjustment	23,498,000	(684,000)
Goodwill, foreign currency translation adjustment	11,623,000	(291,000)
Finite-lived intangible assets, balance	128,134,000	130,315,000	151,000
Goodwill, balance	73,022,000	60,937,000
Indefinite-lived intangible assets, balance		6,171,000
Impairment of in-process research & development	(7,286,000)
In Process Research and Development, before Completion of Development Process [Member]
Indefinite-lived intangible assets, balance	6,171,000	0
Finite-lived intangible assets, additions		6,200,000
Indefinite-lived intangible assets, foreign currency translation adjustment	1,115,000	(29,000)
Indefinite-lived intangible assets, balance		$ 6,171,000	$ 0
Impairment of in-process research & development	$ (7,300,000)

Note 11 - Intangible Assets, In-process Research and Development and Goodwill - Amortization of Intangible Assets (Details) $ in Thousands	Dec. 31, 2016 USD ($)
2017	$ 26,990
2018	26,990
2019	26,990
2020	26,990
2021	$ 4,009

Note 12 - Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Research and development costs	$ 3,030,000	$ 3,843,000
Employee compensation	7,513,000	4,860,000
Restructuring	163,000	851,000
Selling and marketing costs	40,000	1,000
Legal and accounting fees	622,000	428,000
Other accrued expenses	1,021,000	903,000
Total	$ 12,389,000	$ 10,886,000

Note 13 - Collaboration Obligation (Details Textual) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Oct. 31, 2014	Oct. 31, 2004
Deferred Revenue	$ 2,120,000	$ 1,764,000
Up-front Payment Arrangement [Member] \| Takeda [Member]
Deferred Revenue		2,400,000			$ 17,600,000
Global License Agreement [Member] \| Takeda [Member]
Development Expenses to Be Assumed			$ 6,000,000	$ 6,000,000
Developmental Expense Reimbursement Obligation	0	$ 5,600,000
Global License Agreement [Member] \| Up-front Payment Arrangement [Member] \| Takeda [Member]
Deferred Revenue	$ 14,000,000		$ 14,000,000

Note 14 - Other Current Liabilities - Summary of Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Indirect taxes payable	$ 1,756	$ 5,963
Squeeze out liability for non-tendering R-Tech shareholders	155	7,668
Other current liabilities	393	508
Total	$ 2,304	$ 14,139

Note 15 - Other Liabilities (Details Textual) ¥ in Millions	12 Months Ended
Note 15 - Other Liabilities (Details Textual) ¥ in Millions	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2016 JPY (¥)	Mar. 31, 2014 JPY (¥)
Deferred Grants, Noncurrrent	$ 750,000	$ 9,604,000
Gain (Loss) on Forgiveness of Deferred Grant	$ 9,258,000
Swiss Plan [Member]
Defined Benefit Plan Minimum Investment Return	1.25%	1.75%
Defined Benefit Plan, Funded Status of Plan	$ 818,000	$ 949,000
Defined Benefit Plan, Assets for Plan Benefits	1,700,000	1,600,000
Defined Benefit Plan, Benefit Obligation	2,600,000	2,500,000
Pension Expense	$ 260,000	226,000	221,000
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease)			366,000
Swiss Plan [Member] \| Net Income [Member]
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease)			11,000
Swiss Plan [Member] \| Total Comprehensive Income [Member]
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease)			$ 355,000
AMED [Member] \| Unoprostone [Member]
Deferred Grants, Noncurrrent		9,300,000
AMED [Member] \| Unoprostone [Member] \| R-Tech [Member]
Proceeds from Grants Received \| ¥						¥ 1,050
Grant Repayment Amount				$ 1,000,000	¥ 105
Grant Repayment Amount as Percentage of Grants Received				10.00%	10.00%
Montgomery County Government [Member] \| Montgomery County, Maryland [Member]
Deferred Grants, Noncurrrent		$ 300,000

Note 15 - Other Liabilities - Summary of Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred grants	$ 750	$ 9,604
Unrecognized tax benefits	4,060	3,061
Deferred leasehold incentive	1,582	1,715
Defined benefit obligation	818	949
Other liabilities	1,581	414
Total	$ 8,791	$ 15,743

Note 16 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions		12 Months Ended
	Jan. 09, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Leases, Rent Expense		$ 2.4	$ 1.8	$ 1.4
CPP [Member]
Collaboration Agreement, Amount of Investment	$ 5.0
Collaboration Agreement, Minimum Aggregate Proceeds Contingent on Consummation of Future Financing	10.0
Collaboration Agreement, Amount of Equity Investment	$ 5.0
CPP [Member] \| IPO [Member] \| Minimum [Member]
Collaboration Agreement, Discount under Qualified Financing	10.00%
CPP [Member] \| IPO [Member] \| Maximum [Member]
Collaboration Agreement, Discount under Qualified Financing	20.00%

Note 16 - Commitments and Contingencies - Future Minimum, Non-cancelable Lease Payments (Details) $ in Thousands	Dec. 31, 2016 USD ($)
2017	$ 1,980
2018	1,727
2019	1,491
2020	1,096
2021	995
Total minimum lease payments	$ 7,289

Note 17 - Related Party Transactions (Details Textual) SFr in Millions		12 Months Ended	152 Months Ended
	Dec. 01, 2015	Dec. 31, 2010 USD ($)	Oct. 20, 2015 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2015 CHF (SFr)	Oct. 19, 2015	Sep. 30, 2011 CHF (SFr)
Related Party Transaction, Amounts of Transaction			$ 9,000,000
Drs. Ueno and Kuno [Member]
Related Party Ownership Percentage						47.00%
Numab [Member]
Long-term Debt, Gross				$ 1,500,000	SFr 1.5
Numab [Member] \| Financial Guarantee [Member]
Restricted Cash and Cash Equivalents \| SFr					2.2
Guaranty Liabilities				202,000
Numab [Member] \| Zurcher Kantonalbank [Member]
Loans Pledged as Collateral				$ 2,200,000	SFr 2.2		SFr 5.0
Ueno Trust [Member] \| SAG [Member] \| Subordinated Unsecured Promissory Notes [Member]
Debt Instrument, Face Amount		$ 25,900,000
Kuno and Ueno Trust [Member] \| SAG [Member] \| Subordinated Unsecured Promissory Notes [Member]
Debt Instrument, Face Amount		$ 51,900,000
Kuno and Ueno Trust [Member] \| SAG [Member] \| Subordinated Unsecured Promissory Notes [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	4.70%	4.00%

Note 17 - Related Party Transactions - Expenses Under Agreements With R-Tech (Details) - R-Tech [Member] - USD ($) $ in Thousands	10 Months Ended	12 Months Ended
	Oct. 20, 2015	Dec. 31, 2014
Expenses related to R-Tech	$ 21,917	$ 16,343
Clinical Supplies [Member]
Expenses related to R-Tech	155	396
Other Research and Development Services [Member]
Expenses related to R-Tech	347	171
Commercial Supplies [Member]
Expenses related to R-Tech	$ 21,415	$ 15,776

Note 18 - Credit Facility and Convertible Notes Payable (Details Textual) - USD ($)			12 Months Ended
	Dec. 27, 2016	Oct. 16, 2015	Dec. 27, 2016	Dec. 31, 2016
Fair Value, Inputs, Level 2 [Member]
Notes Payable, Fair Value Disclosure				$ 319,500,000
Jeffries Financing LLC [Member]
Repayments of Lines of Credit	$ 238,200,000
The 3.25% Convertible Senior Notes [Member]
Debt Instrument, Face Amount	300,000,000		$ 300,000,000
Proceeds from Convertible Debt	290,500,000
Debt Issuance Costs, Gross	$ 9,500,000		$ 9,500,000
Debt Instrument, Interest Rate, Stated Percentage	3.25%		3.25%
Debt Instrument, Fundamental Change Repurchase Price, Percentage of Principal Amount	100.00%		100.00%
Debt Instrument, Covenant Compliance, Default Period on Interest Payable	30 days
Debt Instrument, Covenant Compliance, Period to Convert Notes	5 days
Debt Instrument, Covenant Compliance, Period After Written Notice Received to Comply With Other Agreements	60 days
Debt Instrument, Covenant Compliance, Percentage of Principal Amount Outstanding to Comply With Other Agreements	25.00%
Debt Instrument, Covenant Compliance, Minimum Amount Borrowed	$ 10,000,000
Debt Instrument, Covenant Compliance, Period After Written Notice Received if Indebtedness Not Paid	30 days
Debt Instrument, Covenant Compliance, Percentage of Principal Amount Outstanding if Indebtedness Not Paid	25.00%
Debt Instrument, Covenant Compliance, Minimum Final Judgement Payment	$ 10,000,000
Debt Instrument, Covenant Compliance, Period for Final Judgement Payment	60 days
The 3.25% Convertible Senior Notes [Member] \| Common Class A [Member]
Debt Instrument, Convertible, Conversion Ratio	60.2637
Debt Instrument, Conversion, Principal Amount Used for Conversion Price	$ 1,000		$ 1,000
Debt Instrument, Convertible, Conversion Price	$ 16.59		$ 16.59
Jeffries Financing LLC [Member] \| Term Loans [Member]
Debt Instrument, Interest Rate During Period			8.54%
Payments of Debt Extinguishment Costs	$ 2,300,000
Jeffries Financing LLC [Member] \| Term Loans [Member] \| Adjusted Eurodollar [Member]
Debt Instrument, Basis Spread on Variable Rate		7.25%
Jeffries Financing LLC [Member] \| Term Loans [Member] \| Adjustable Base Rate [Member]
Debt Instrument, Basis Spread on Variable Rate		6.25%

Note 18 - Credit Facility and Convertible Notes Payable - Schedule of Debt Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Notes payable	$ 290,516	$ 252,360
Notes payable, current		39,083
Notes payable, non-current	290,516	213,277
Notes payable	290,516	252,360
Term Loans [Member]
Notes payable		252,360
Notes payable		252,360
The 3.25% Convertible Senior Notes [Member]
Notes payable	290,516
Notes payable	$ 290,516

Note 19 - Collaboration and License Agreements (Details Textual) - USD ($)	1 Months Ended						3 Months Ended	12 Months Ended				135 Months Ended
	Jun. 30, 2015	May 31, 2015	Mar. 31, 2012	Apr. 29, 2008	Jun. 30, 2007	Oct. 31, 2004	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2006	Dec. 31, 2015	Oct. 31, 2014
Deferred Revenue								$ 2,120,000	$ 1,764,000			$ 1,764,000
Royalty Revenue								82,480,000	74,138,000	$ 62,775,000
Sales Revenue, Goods, Net								128,796,000	66,276,000	33,252,000
Deferred Revenue, Noncurrent								805,000	1,088,000			1,088,000
Co-promotion Revenue										3,360,000
Takeda [Member]
Royalty Revenue								82,300,000	74,000,000	62,800,000
Initial Funded Development Costs, Amount						$ 30,000,000
Entity Funded Development Costs						20,000,000
Collaborative Funded Development Costs, Minimum						50,000,000
Sales Revenue, Goods, Net								45,200,000	10,300,000
Contracts Revenue					$ 30,000,000
Funding Labeling Studies by Other, Percentage											70.00%
Company Funded Labeling Studies, Percentage											30.00%
Co-promotion Revenue										3,400,000
Takeda [Member] \| Global License Agreement [Member]
Revenue Recognition, Milestone Method, Revenue Recognized							$ 14,000,000
Sales Revenue, Goods, Net								792,000	0	0
Contingent Commerical Milestone Payments													$ 35,000,000
Development Expenses to Be Assumed							6,000,000			6,000,000			$ 6,000,000
Licenses Revenue							8,000,000	5,600,000	400,000	8,000,000
Contractual Obligation							6,000,000			6,000,000
Takeda [Member] \| Maximum [Member] \| For Each Additional Indication [Member]
Funded Development Costs Counterparty Obligation, Amount											$ 50,000,000
Takeda [Member] \| Maximum [Member] \| For Each New Formulation [Member]
Funded Development Costs Counterparty Obligation, Amount											$ 20,000,000
Takeda [Member] \| Research and Development Expense [Member]
Revenue Recognition, Milestone Method, Revenue Recognized				$ 50,000,000
Takeda [Member] \| Up Front Fee And Milestone Payment Arrangement [Member]
Revenue Recognition, Milestone Method, Revenue Recognized												160,000,000
Takeda [Member] \| Up-front Payment Arrangement [Member]
Revenue Recognition, Milestone Method, Revenue Recognized												20,000,000
Deferred Revenue						17,600,000			2,400,000			$ 2,400,000
Takeda [Member] \| Up-front Payment Arrangement [Member] \| Global License Agreement [Member]
Deferred Revenue							$ 14,000,000	14,000,000		14,000,000
Takeda [Member] \| Up-front Payment Arrangement [Member] \| Collaboration Revenue [Member]
Deferred Revenue, Revenue Recognized								147,000	147,000	147,000
Takeda [Member] \| Development Milestone [Member]
Deferred Revenue						50,000,000
Takeda [Member] \| Reimbursement of Research and Development Expenses [Member]
Deferred Revenue, Noncurrent						$ 30,000,000
Mylan [Member]
Sales Revenue, Goods, Net								72,700,000	53,900,000	32,100,000
Mylan [Member] \| Up-front Payment Arrangement [Member]
Revenue Recognition, Milestone Method, Revenue Recognized								47,500,000
Mylan [Member] \| Development Milestone [Member]
Revenue Recognition, Milestone Method, Revenue Recognized								10,000,000	5,000,000	$ 2,500,000
Gloria [Member] \| China Gloria Agreement [Member]
Revenue Recognition, Milestone Method, Revenue Recognized	$ 500,000	$ 1,000,000
Sales Revenue, Goods, Net								0	0
Contingent Commerical Milestone Payments		$ 1,500,000
Agreement Renewal Period		3 years
Agreement Termination Period		1 year
Santen [Member] \| Japan Santen Agreement [Member]
Sales Revenue, Goods, Net								$ 9,900,000	$ 1,500,000
Agreement Renewal Period			1 year
Agreement Termination Period			330 days

Note 20 - Stockholders' Equity (Details Textual)		12 Months Ended			36 Months Ended	72 Months Ended
Note 20 - Stockholders' Equity (Details Textual)	Oct. 20, 2015 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) shares	Dec. 31, 2013 shares	Dec. 08, 2016 shares	Aug. 31, 2015 ¥ / shares	Aug. 15, 2015 ¥ / shares	Dec. 31, 2006 shares	Dec. 31, 2003 shares
Class A Common Stock, Number of Votes per Share		1
Treasury Stock, Value, Acquired, Cost Method \| $			$ 43,956,000
Share-based Compensation Arrangement by Share-based Payment Award Fair Value Assumptions Estimated Forfeiture Rate Minimum					10.20%
Share-based Compensation Arrangement by Share-based Payment Award Fair Value Assumptions Estimated Forfeiture Rate Maximum					30.90%
Proceeds from Stock Options Exercised \| $		$ 6,001,000	$ 5,623,000	$ 3,789,000
Accumulated Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation \| $		$ 3,800,000			$ 3,800,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period
Amended 2001 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		0			0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number		0	37,400		0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term		0 years	124 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		20,400	76,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value \| $		$ 90,000	$ 600,000
Proceeds from Stock Options Exercised \| $		$ 200,000	$ 800,000
Stock Incentive Plan 2006 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number		1,729,000			1,729,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term		7 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		862,740
Share Based Compensation, Arrangement by Share Based Payment Award, Increase in Common Stock Available for Issuance as Percentage of Aggregate Number of Shares Outstanding		5.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			2,275,458	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		1,266,050
Stock Incentive Plan 2006 [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Stock Incentive Plan 2006 [Member] \| Time-based Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		862,740	693,077
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value \| $		$ 7,100,000	$ 8,600,000
Proceeds from Stock Options Exercised \| $		$ 5,800,000	$ 4,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		1,266,050
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value \| $ / shares		$ 7.10	$ 9.45	$ 4.86
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options \| $		$ 9,800,000			$ 9,800,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		2 years 146 days
Stock Incentive Plan 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number		36,700			36,700
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term		36 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		1,064
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		5,170,312			5,170,312
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		75,814
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value \| $ / shares		$ 3.51
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options \| $		$ 108,000			$ 108,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		3 years 292 days
Common Stock, Capital Shares Reserved for Future Issuance		10,740,125			10,740,125
Stock Incentive Plan 2016 [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Stock Incentive Plan 2016 [Member] \| Time-based Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		75,814
Stock Incentive Plan 2016 [Member] \| Restricted Stock Units (RSUs) [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 73 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options \| $		$ 348,000			$ 348,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period		0
Stock Incentive Plan 2016 [Member] \| Restricted Stock Units (RSUs) [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		1 year
Stock Incentive Plan 2016 [Member] \| Restricted Stock Units (RSUs) [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
2006 Employee Stock Purchase Plan [Member]
Share Based Compensation, Percentage of Compensation to Purchase Common Stock		15.00%
Share-based Compensation Arrangement, Employee Stock Purchase Plan, Plan Period		1 year
Share-based Compensation Arrangement, Employee Stock Purchase Plan, Number of Purchase Periods per Year		4
Share-based Compensation Arrangement, Employee Stock Purchase Plan, Purchase Period		90 days
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent			85.00%
R-Tech [Member]
Treasury Stock, Shares, Acquired	2,485,150
Treasury Stock, Value, Acquired, Cost Method \| $	$ 44,000,000
Business Acquisition, Share Price \| ¥ / shares								¥ 1,900	¥ 1,400
Common Class A [Member]
Treasury Stock, Shares, Acquired						524,792
Common Class A [Member] \| Amended 2001 Plan [Member] \| Non-Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized											8,500,000
Common Class A [Member] \| Stock Incentive Plan 2006 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized										8,500,000
Common Class A [Member] \| 2006 Employee Stock Purchase Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance							500,000
Common Class A [Member] \| R-Tech [Member]
Business Acquisition, Share Price \| $ / shares	$ 17.68

Note 20 - Stockholders' Equity - Option Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Expected dividend yield	0.00%	0.00%	0.00%
Minimum [Member]
Expected volatility	54.00%	54.00%	70.00%
Risk-free interest rate	1.28%	1.34%	1.63%
Expected term (in years) (Year)	6 years 29 days	5 years 102 days	5 years 102 days
Maximum [Member]
Expected volatility	56.00%	70.00%	72.00%
Risk-free interest rate	1.57%	1.93%	2.01%
Expected term (in years) (Year)	6 years 91 days	6 years 91 days	6 years 91 days

Note 20 - Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allocated share-based expense	$ 7,283	$ 7,349	$ 2,287
Research and Development Expense [Member]
Allocated share-based expense	2,136	2,165	349
General and Administrative Expense [Member]
Allocated share-based expense	5,028	5,053	1,816
Selling and Marketing Expense [Member]
Allocated share-based expense	$ 119	$ 131	$ 122

Note 20 - Stockholders' Equity - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Amended 2001 Plan [Member]
Options outstanding, shares (in shares)	37,400
Options outstanding, weighted average exercise price per share (in dollars per share)	$ 10
Options exercised, shares (in shares)	(20,400)	(76,500)
Options exercised, weighted average exercise price per share (in dollars per share)	$ 10
Options expired, shares (in shares)	(17,000)
Options expired, weighted average exercise price per share (in dollars per share)	$ 10
Options outstanding, shares (in shares)		37,400
Options outstanding, weighted average exercise price per share (in dollars per share)		$ 10
Options exercisable, shares (in shares)	0	37,400
Options exercisable, weighted average exercise price per share (in dollars per share)
Options vested and expected to vest, shares (in shares)
Options vested and expected to vest, weighted average exercise price per share (in dollars per share)
Options exercisable, weighted average remaining contractual term (Year)	0 years	124 days
Stock Incentive Plan 2006 [Member]
Options outstanding, shares (in shares)	4,440,608
Options outstanding, weighted average exercise price per share (in dollars per share)	$ 9.37
Options exercised, shares (in shares)	(862,740)
Options exercised, weighted average exercise price per share (in dollars per share)	$ 6.71
Options expired, shares (in shares)	(60,990)
Options expired, weighted average exercise price per share (in dollars per share)	$ 14.49
Options outstanding, shares (in shares)	4,648,549	4,440,608
Options outstanding, weighted average exercise price per share (in dollars per share)	$ 10.86	$ 9.37
Options exercisable, shares (in shares)	1,729,000
Options exercisable, weighted average exercise price per share (in dollars per share)	$ 8.73
Options vested and expected to vest, shares (in shares)	3,643,698
Options vested and expected to vest, weighted average exercise price per share (in dollars per share)	$ 10.50
Options granted, shares (in shares)	1,266,050
Options granted, weighted average exercise price per share (in dollars per share)	$ 13.60
Options forfeited, shares (in shares)	(134,379)
Options forfeited, weighted average exercise price per share (in dollars per share)	$ 13.05
Options outstanding, weighted average remaining contractual term (Year)	8 years
Options outstanding, aggregate intrinsic value	$ 14,770,043
Options exercisable, weighted average remaining contractual term (Year)	7 years
Options exercisable, aggregate intrinsic value	$ 9,017,049
Options vested and expected to vest, weighted average remaining contractual term (Year)	7 years 292 days
Options vested and expected to vest, aggregate intrinsic value	$ 12,774,846
Stock Incentive Plan 2016 [Member]
Options outstanding, shares (in shares)
Options outstanding, weighted average exercise price per share (in dollars per share)
Options exercised, shares (in shares)	(1,064)
Options exercised, weighted average exercise price per share (in dollars per share)	$ 6.75
Options expired, shares (in shares)
Options expired, weighted average exercise price per share (in dollars per share)
Options outstanding, shares (in shares)	74,750
Options outstanding, weighted average exercise price per share (in dollars per share)	$ 12.66
Options exercisable, shares (in shares)	36,700
Options exercisable, weighted average exercise price per share (in dollars per share)	$ 13.97
Options vested and expected to vest, shares (in shares)	55,956
Options vested and expected to vest, weighted average exercise price per share (in dollars per share)	$ 13.09
Options granted, shares (in shares)	75,814
Options granted, weighted average exercise price per share (in dollars per share)	$ 12.58
Options outstanding, weighted average remaining contractual term (Year)	5 years
Options outstanding, aggregate intrinsic value	$ 81,741
Options exercisable, weighted average remaining contractual term (Year)	36 days
Options exercisable, aggregate intrinsic value	$ 0
Options vested and expected to vest, weighted average remaining contractual term (Year)	3 years 146 days
Options vested and expected to vest, aggregate intrinsic value	$ 41,367

Note 20 - Stockholders' Equity - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Dec. 31, 2016 $ / shares shares
Nonvested restricted stock units, shares (in shares) \| shares
Nonvested restricted stock units, weighted average fair value (in dollars per share) \| $ / shares
Restricted stock units granted, shares (in shares) \| shares	63,700
Restricted stock units granted, weighted average fair value (in dollars per share) \| $ / shares	$ 12.29
Restricted stock units vested, shares (in shares) \| shares
Restricted stock units vested, weighted average fair value (in dollars per share) \| $ / shares
Restricted stock units forfeited, shares (in shares) \| shares
Restricted stock units forfeited, weighted average fair value (in dollars per share) \| $ / shares
Nonvested restricted stock units, shares (in shares) \| shares	63,700
Nonvested restricted stock units, weighted average fair value (in dollars per share) \| $ / shares	$ 12.29

Note 20 - Stockholders' Equity - Summary of Employee Stock Purchase Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash received under the ESPP	$ 213	$ 128	$ 36
2006 Employee Stock Purchase Plan [Member]
Shares issued under the ESPP (in shares)	22,395	9,085	5,853
Cash received under the ESPP	$ 213	$ 128	$ 35

Note 20 - Stockholders' Equity - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Balance	$ 13,412	$ 14,265	$ 15,601
Other comprehensive income (loss) before reclassifications	41,115	(853)	(1,336)
Balance	54,527	13,412	14,265
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	14,243	15,208	15,559
Other comprehensive income (loss) before reclassifications	40,876	(965)	(351)
Balance	55,119	14,243	15,208
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Balance	42	35	42
Other comprehensive income (loss) before reclassifications		7	(7)
Balance	42	42	35
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(873)	(978)
Other comprehensive income (loss) before reclassifications	239	105	(978)
Balance	$ (634)	$ (873)	$ (978)

Note 21 - Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Tax Credit Carryforward, Amount	$ 4,700	$ 1,000
Deferred Tax Assets, Valuation Allowance	704	2,277
Unrecognized Tax Benefits, Including Interest and Penalties	4,100	3,100
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	500
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	1,700
Decrease in Unrecognized Tax Benefits is Reasonably Possible	$ 1,600
Earliest Tax Year [Member]
Tax Credit Carryforward, Expiration Year	2025
Open Tax Year	2012
Latest Tax Year [Member]
Tax Credit Carryforward, Expiration Year	2026
Open Tax Year	2015
Foreign Tax Authority [Member]
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration	$ 1,800	2,800
Domestic Tax Authority [Member]
Operating Loss Carryforwards	$ 0	$ 0
Domestic Tax Authority [Member] \| Earliest Tax Year [Member]
Income Tax Examination, Year under Examination	2009
Domestic Tax Authority [Member] \| Latest Tax Year [Member]
Income Tax Examination, Year under Examination	2011

Note 21 - Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
U.S.	$ 1,153	$ 14,685	$ 18,005
Foreign	13,222	28,990	9,128
Total income before income taxes	$ 14,375	$ 43,675	$ 27,133

Note 21 - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current tax provision
U.S. Federal	$ 9,749	$ 15,678	$ 11,319
U.S. State	334	1,810	1,351
Foreign	21,123	2,709	793
Total current tax provision	31,206	20,197	13,463
Deferred provision (benefit):
U.S. Federal	(5,062)	(6,375)	(172)
U.S. State	(340)	(899)	(16)
Foreign	(29,916)	(2,619)	730
Total deferred provision (benefit)	(35,318)	(9,893)	542
Total income tax provision (benefit)	$ (4,112)	$ 10,304	$ 14,005

Note 21 - Income Taxes - Deferred Tax Assets (Liabilities), Net (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Foreign net operating loss carry-forwards	$ 309	$ 716
State net operating loss carry-forwards	279	2
Tax credit carry-forwards	4,694	976
Deferred revenue	370	446
Accrued expenses	2,517	1,450
Tax benefits on stock options	3,870	3,288
Research and development credits	469	1,759
Deductible state taxes	1,351
Other	601	3,775
Gross deferred tax assets	(14,460)	(12,412)
Deferred tax liabilities:
Property and equipment	(1,000)	(654)
Inventory		(3,990)
Investments		(13,963)
Intangibles	(34,046)	(44,025)
Gross deferred tax liabilities	(35,046)	(62,632)
Less: valuation allowance	(704)	(2,277)
Net deferred tax assets (liabilities)	$ (21,290)	$ (52,497)

Note 21 - Income Taxes - Income Taxes on the Federal Statutory Rate (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Federal tax at statutory rates	35.00%	35.00%	35.00%
State taxes, net of federal tax benefit	0.40%	0.90%	2.10%
Foreign tax rate differential	83.20%	16.80%	3.70%
Changes in valuation allowance	0.40%	0.50%	1.40%
Nondeductible expenses	0.00%	2.30%	1.70%
Stock based compensation	2.30%	0.60%	0.10%
Impact of intangible transfer	11.20%	0.70%	5.80%
Impact of uncertain tax positions	3.00%	1.80%	0.20%
Adjustment to deferred tax asset	3.10%	1.60%	0.50%
Exchange gain/(loss)	13.50%	0.00%	0.00%
Subpart F income, net of FTC	11.50%	2.30%	9.10%
Loan forgiveness	0.00%	2.30%	0.00%
Japanese R&D credit	4.60%	1.60%	0.00%
Impact of subsidiary wind up	11.20%	0.00%	0.00%
Deductible and withholding taxes	3.20%	0.00%	0.00%
Nondeductible interest	13.40%	0.00%	0.00%
Changes in other tax matters	2.00%	1.80%	0.00%
Effective tax rate	28.60%	23.60%	51.60%

Note 21 - Income Taxes - Unrecognized Tax Benefits Excluding Interest and Penalties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Balance	$ 2,992	$ 712	$ 550
Increases for tax positions taken during prior periods	38	452	(91)
Decreases in unrecognized tax benefits related to taxing authority correspondence		(280)
Increases for tax positions taken during current period	195	2,108	253
Balance	$ 3,225	$ 2,992	$ 712

Note 22 - Quarterly Financial Data (Unaudited) - Quarterly Financial Data Summary (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, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Total revenues	$ 73,024	$ 57,873	$ 51,951	$ 47,208	$ 55,368	$ 33,448	$ 34,884	$ 29,480	$ 230,056	$ 153,180	$ 115,450
Income (loss) from operations	33,493	13,268	7,618	(503)	11,568	11,657	11,580	9,654	53,876	44,459	27,231
Net income (loss)	$ 15,283	$ 8,092	$ (832)	$ (4,057)	$ 10,151	$ 7,236	$ 9,576	$ 6,408	$ 18,487	$ 33,371	$ 13,128
Basic (in dollars per share)	$ 0.36	$ 0.19	$ (0.02)	$ (0.10)	$ 0.24	$ 0.16	$ 0.21	$ 0.14	$ 0.43	$ 0.76	$ 0.30
Diluted (in dollars per share)	$ 0.34	$ 0.19	$ (0.02)	$ (0.10)	$ 0.23	$ 0.16	$ 0.21	$ 0.14	$ 0.42	$ 0.73	$ 0.29

Schedule II - Valuation and Qualifying Accounts (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ (1,000,000)	$ 381,000
Valuation Allowances and Reserves, Additions for Charges to Cost and Expense	$ 1,200,000

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

$ 1,200,000

Deductions

^[1]

$ (1,573)

Allowance for Doubtful Accounts [Member]

Charged to Costs and Expenses

54,000

25,000

$ 440,000

29,000

364,000

^[2]

Deductions

^[3]

(779,000)

Valuation Allowance of Deferred Tax Assets [Member]

54,000

25,000

Charged to Costs and Expenses

2,277,000

2,132,000

1,751,000

1,177,000

^[4]

381,000

^[5]

Deductions

^[6]

(1,032,000)