View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2012	Aug. 03, 2012
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Trading Symbol	SCMP
Entity Registrant Name	SUCAMPO PHARMACEUTICALS, INC.
Entity Central Index Key	0001365216
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Class A common stock
Entity Common Stock, Shares Outstanding		15,714,314
Class B common stock
Entity Common Stock, Shares Outstanding		26,191,050

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 61,691	$ 50,662
Investments, current	9,685	24,452
Product royalties receivable	11,703	10,795
Unbilled accounts receivable	751	2,036
Accounts receivable, net	606	4,616
Prepaid and income taxes receivable	3,292	2,845
Deferred tax assets, current	34	163
Deferred charge, current	673	3,057
Restricted cash, current	15,113	15,113
Prepaid expenses and other current assets	1,563	1,177
Total current assets	105,111	114,916
Investments, non-current		998
Property and equipment, net	1,653	1,669
Intangibles assets, net	7,903	8,364
Deferred tax assets, non-current	1,653	2,089
Deferred charge, non-current	5,549	26,751
Restricted cash, non-current	2,096	2,129
Other assets	973	653
Total assets	124,938	157,569
Current liabilities:
Accounts payable	5,345	6,978
Accrued expenses	9,228	13,648
Deferred revenue, current	3,793	3,888
Deferred tax liability, current	18	2,167
Notes payable, current	20,100	20,400
Total current liabilities	38,484	47,081
Notes payable, non-current	40,328	39,227
Deferred revenue, non-current	6,722	7,045
Deferred tax liability, non-current	1,768	23,019
Other liabilities	2,007	2,603
Total liabilities	89,309	118,975
Commitments and contengencies (Notes 7 and 10)
Stockholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized at June 30, 2012 and December 31, 2011; no shares issued and outstanding at June 30, 2012 and December 31, 2011
Additional paid-in capital	61,336	59,957
Accumulated other comprehensive income	16,257	17,854
Treasury stock, at cost; 186,987 shares	(700)	(700)
Accumulated deficit	(41,683)	(38,936)
Total stockholders' equity	35,629	38,594
Total liabilities and stockholders' equity	124,938	157,569
Class A common stock
Stockholders' equity:
Common stock	157	157
Class B common stock
Stockholders' equity:
Common stock	$ 262	$ 262

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2012	Dec. 31, 2011
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury stock, shares	186,987	186,987
Class A common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	270,000,000	270,000,000
Common stock, shares issued	15,709,887	15,690,780
Common stock, shares outstanding	15,709,887	15,690,780
Class B common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	26,191,050	26,191,050
Common stock, shares outstanding	26,191,050	26,191,050

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues:
Research and development revenue	$ 3,096	$ 1,742	$ 5,681	$ 3,706
Product royalty revenue	11,703	11,043	22,631	20,161
Co-promotion revenue	1,757	1,061	2,523	1,999
Contract and collaboration revenue	127	154	294	308
Total revenues	16,683	14,000	31,129	26,174
Operating expenses:
Research and development	5,235	7,893	8,587	17,113
General and administrative	8,015	11,694	15,342	21,391
Selling and marketing	6,107	2,028	10,196	4,446
Total operating expenses	19,357	21,615	34,125	42,950
Income (loss) from operations	(2,674)	(7,615)	(2,996)	(16,776)
Non-operating income (expense):
Interest income	30	55	50	125
Interest expense	(592)	(614)	(1,184)	(1,225)
Other income (expense), net	(555)	(3,122)	719	(3,257)
Total non-operating income (expense), net	(1,117)	(3,681)	(415)	(4,357)
Loss before income taxes	(3,791)	(11,296)	(3,411)	(21,133)
Income tax benefit	2,972	2,277	664	5,205
Net income (loss)	$ (819)	$ (9,019)	$ (2,747)	$ (15,928)
Net loss per share:
Basic net loss per share	$ (0.02)	$ (0.22)	$ (0.07)	$ (0.38)
Diluted net loss per share	$ (0.02)	$ (0.22)	$ (0.07)	$ (0.38)
Weighted average common shares outstanding - basic	41,710	41,864	41,706	41,858
Weighted average common shares outstanding - diluted	41,710	41,864	41,706	41,858
Comprehensive loss:
Net income (loss)	$ (819)	$ (9,019)	$ (2,747)	$ (15,928)
Other comprehensive income (loss):
Unrealized gain (loss) on investments, net of tax effect	(2)	(3)	(5)	8
Foreign currency translation		2,845	(1,592)	3,282
Comprehensive loss	$ (821)	$ (6,177)	$ (4,344)	$ (12,638)

Condensed Consolidated Statement of Changes in Stockholders' Equity - 6 months ended Jun. 30, 2012 - USD ($) $ in Thousands	Total	Class A common stock	Class B common stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Accumulated Deficit
Beginning Balance (in shares) at Dec. 31, 2011		15,690,780	26,191,050			186,987
Beginning Balance at Dec. 31, 2011	$ 38,594	$ 157	$ 262	$ 59,957	$ 17,854	$ (700)	$ (38,936)
Employee stock option expense	1,301			1,301
Stock issued upon exercise of stock options (in shares)		17,484
Stock issued upon exercise of stock options	67			67
Stock issued under employee stock purchase plan (in shares)		1,623
Stock issued under employee stock purchase plan	11			11
Foreign currency translation	(1,592)				(1,592)
Unrealized gain (loss) on investments, net of tax effect	(5)				(5)
Net loss	(2,747)						(2,747)
Ending Balance (in shares) at Jun. 30, 2012		15,709,887	26,191,050			186,987
Ending Balance at Jun. 30, 2012	$ 35,629	$ 157	$ 262	$ 61,336	$ 16,257	$ (700)	$ (41,683)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net loss	$ (2,747)	$ (15,928)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	731	650
Deferred tax provision	(22,888)	(1,179)
Deferred charge	23,586
Stock-based compensation	1,301	519
Amortization of premiums on investments	49	502
Notes payable paid-in-kind interest	1,101	1,144
Interest expense		82
Changes in operating assets and liabilities:
Accounts receivable	4,010	(2)
Unbilled accounts receivable	1,285	46
Product royalties receivable	(907)	(527)
Inventory	87
Prepaid and income taxes receivable and payable, net	(443)	(4,231)
Accounts payable	(1,619)	(50)
Accrued expenses	(1,413)	5,053
Deferred revenue	(396)	(1,095)
Other assets and liabilities, net	(969)	630
Net cash provided by (used in) operating activities	768	(14,386)
Cash flows from investing activities:
Purchases of investments	(2,430)	(12,782)
Proceeds from sales of investments	750	3,293
Maturities of investments	17,390	26,395
Purchases of property and equipment	(265)	(180)
Purchases of intangible assets	(3,000)	(3,000)
Purchase of other investing activities	(432)
Net cash provided by investing activities	12,013	13,726
Cash flows from financing activities:
Proceeds from exercise of stock options	67	98
Proceeds from employee stock purchase plan	11	6
Net cash provided by financing activities	78	104
Effect of exchange rates on cash and cash equivalents	(1,830)	3,592
Net increase in cash and cash equivalents	11,029	3,036
Cash and cash equivalents at beginning of period	50,662	49,243
Cash and cash equivalents at end of period	61,691	52,279
Supplemental disclosure of non-cash investing and financing activities:
Purchase of intangible assets included in accrued expenses		$ 3,000
Purchase of other investing activities included in accounts payable	$ 2

Business Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2012

Business Organization and Basis of Presentation

Business Organization and Basis of Presentation

Description of the Business

Sucampo Pharmaceuticals, Inc., or the Company, is a global pharmaceutical company focused on the discovery, development and commercialization of proprietary drugs based on prostones and other novel drug technologies. Prostones are a class of fatty acid compounds that occur naturally in the human body as a result of the enzymatic catalysis by 15-Prostaglandin Dehydrogenase (15-PGDH) of eicosanoids, and other docosanoid molecules specifically synthesized with 15 position keto groups.

The therapeutic potential of prostones was first identified by one of the Company’s founders, Dr. Ryuji Ueno. The Company’s lead compounds primarily act on ClC-2 chloride and BK potassium ion channels. ClC-2 channel activators restore and repair tight junctions, maintain chloride homeostasis and increase fluid transmission across membranes and tissue barriers. BK channel activators are neuroprotective via hyperpolarization of excitable membranes, counteract endothelin-1 induced vasoconstriction, relax vascular smooth muscle cells, increase microvascular circulation, stabilize the mitochondrial membrane and decrease stress induced cell death. Prostones also have anti-inflammatory properties. Prostones offer a wide-ranging therapeutic potential, particularly for age-related diseases. The Company is focused on developing prostones to treat gastrointestinal, ophthalmologic, central nervous system or CNS, vascular and respiratory diseases as well as considering other potential therapeutic applications.

The Company generates revenue mainly from product royalties, development milestone payments, and clinical development activities. The Company expects to continue to incur significant expenses for the next several years as the Company continues its research and development activities and as the Company seeks regulatory approvals for additional indications for AMITIZA^® (lubiprostone), RESCULA^® (unoprostone isopropyl) and other compounds on an international basis.

To date, two prostone products have received marketing approval, AMITIZA^® and RESCULA®. A third prostone, cobiprostone, has been studied in phase II trials in humans. The Company’s orphan drug application for cobiprostone for oral mucositis with the U.S. Food and Drug Administration, or FDA, is under review with the FDA requesting additional information to support the application. Two additional prostones, SPI 017 and SPI 3608, have also been developed for human testing.

AMITIZA is being marketed and developed in the U.S. for two gastrointestinal indications under the October 2004 collaboration and license agreement with Takeda Pharmaceutical Company Limited, or Takeda Agreement. These indications are chronic idiopathic constipation or CIC in adults and irritable bowel syndrome with constipation or IBS-C in adult women. Takeda also holds marketing rights to AMITIZA in Canada, but has not yet commercialized it there. The Company is primarily responsible for clinical development activities under the Takeda Agreement while Takeda is responsible for commercialization of AMITIZA in the U.S. and Canada. The Company and Takeda initiated commercial sales of AMITIZA in the U.S. for the treatment of CIC, in April 2006 and for the treatment of IBS-C in May 2008. In July 2012, the Company filed a supplemental new drug application, or sNDA, with the FDA seeking priority review of a new indication for the use of AMITIZA in the treatment of opioid-induced constipation, or OIC.

The Company received notification from the International Court of Arbitration, International Chamber of Commerce, or ICC, on its claims in the dispute with its U.S. partner, Takeda Pharmaceutical Company Limited, in July 2012. The ICC did not agree with the Company’s claims and did not award any attorneys’ fees or costs to either party. The Collaboration Agreement and all of its terms, rights and conditions for AMITIZA remain in force until expiring in December 2020. The Company is not pursuing post-arbitration award relief.

In Japan, lubiprostone is being developed and marketed under a license, commercialization and supply agreement, or the Abbott Agreement, with Abbott Japan Co. Ltd., or Abbott, for the treatment of CIC in Japan. The Company received approval of its new drug application, or NDA, for AMITIZA for the treatment of chronic constipation, or CC, from the Japanese Pharmaceuticals and Medical Devices Agency, or PMDA, in July 2012. The Company is currently engaged in pricing negotiations with the Ministry of Health, Labor and Welfare, or MHLW, and expects those negotiations to conclude in the fourth quarter of 2012. In that event, the Company anticipates a launch by Abbott in the fourth quarter of 2012. Because the approval includes CIC and other indications such as OIC, the Company is evaluating options for the commercialization of the additional indications. Abbott has the right of exclusive negotiations for the additional indications other than OIC and IBS-C for 120 days after approval and if no agreement is reached, the Company has the right to negotiate with third parties. The Company has the right to negotiate with third parties for the OIC and IBS-C indications or market those indications itself. Abbott has 45 days to meet the terms and conditions of any third party bona fide offer.

In Europe, the Company started to market AMITIZA, on a limited basis, in Switzerland in February 2012 while the Company continues discussions with the Swiss Federal Office of Public Health for pricing approval. In the U.K., the Company is awaiting a final regulatory decision in the third quarter of 2012 by the Medicines and Healthcare products Regulatory Agency, or MHRA, for the use of AMITIZA to treat CIC for four weeks. In the meantime AMITIZA is being made available through a Named Patient Program throughout the E.U., Iceland and Norway. The Company continues to evaluate the opportunities in the E.U. The Company plans to file for the OIC indication in Switzerland and the U.K. before end of year.

The Company holds license agreements for RESCULA in the United States and Canada and the rest of the world, with the exception of Japan, Korea, Taiwan and the People’s Republic of China. In the U.S., RESCULA is approved for the treatment of the lowering of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The Company’s discussions with the FDA under the sNDA have resulted in a FDA complete response letter that made improvements to the label. These improvements include removal of second line therapy language to enable first line use, removal of the prostaglandin description, and additions to the mechanism of action section. However, the Company continues discussions with the FDA through a reconsideration process instead of the administrative appeal process to seek further revisions to the label to more fully and accurately reflect current scientific understanding. The Company anticipates agreement on the final RESCULA label during the third quarter of this year. The Company plans to launch RESCULA in the U.S. during the fourth quarter for its approved indication after the resolution of the label process. The Company is also evaluating the opportunities to obtain an appropriate label in the E.U. and other European countries as well as obtaining reauthorization in those countries to commercialize unoprostone isopropyl.

In other areas of development, the Company entered into agreements in 2011 with CuroNZ of New Zealand, which will augment the Company’s ophthalmic development opportunities, and Numab AG, or Numab of Switzerland, to obtain access to their proprietary technology for the discovery of high-affinity antibodies against certain selected targets.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP, and the rules and regulations of the Securities and Exchange Commission, or SEC, for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s Consolidated Financial Statements as of and for the year ended December 31, 2011 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on March 15, 2012. The financial information as of June 30, 2012 and for the three and six months ended June 30, 2012 and 2011 is unaudited. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments or accruals, considered necessary for a fair statement of the results of these interim periods have been included. The results of the Company’s operations for any interim period are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year.

The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company balances and transactions have been eliminated.

The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2134480

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2209116

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2122150

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6228881-111685

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 272
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 720
-SubTopic 15
-URI http://asc.fasb.org/subtopic&trid=2122524

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7668296&loc=d3e288-107754

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 915
-SubTopic 235
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6472506&loc=d3e38932-110933

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph 8, C1, C7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Cash and Cash Equivalents

For the purpose of the Condensed Consolidated Balance Sheets and Statements of Cash Flows, cash equivalents include all highly liquid investments with a maturity of 90 days or less at the time of purchase.

Restricted Cash

Restricted cash consists of approximately $17.2 million at June 30, 2012 and December 31, 2011, respectively. Restricted cash represents cash required to be deposited with certain financial institutions in connection with the Sucampo Pharma, Ltd., or SPL, loan agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd., Numab’s loan agreement with Zurcher Kantonalbank and operating leases.

Current and Non-current Investments

Current and non-current investments consist primarily of U.S. government agencies securities, corporate bonds, mutual funds and variable rate demand notes. The Company classifies its investments into current and non-current based on their maturities and management’s reasonable expectation to realize these investments in cash. The Company classifies all of its investments as available for sale securities and reports unrealized gains or losses, net of related tax effects, in other comprehensive income.

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, current and non-current investments, receivables, accounts payable and accrued expenses, approximate their fair values based on their short maturities, independent valuations or internal assessments. The carrying amount of the short and long-term debt at June 30, 2012 and December 31, 2011 approximated its fair value due to the fact that the interest rates are determined based by reference to interbank rates. The Company’s debt is subject to the fair value disclosure requirements as discussed in Note 4 below, is considered a Level 2 security.

Accounts Receivable and Unbilled Accounts Receivable

Accounts receivable represent mainly amounts due under the Takeda and the Abbott Agreements. Unbilled accounts receivable represent the research and development expenses that are reimbursable by Takeda but have not been billed to Takeda as of the balance sheet date. The Company recorded an allowance for doubtful accounts at June 30, 2012 of approximately $193,000 related to certain disputed Takeda invoices. No allowance was recorded in 2011.

Product Royalties Receivable

Product royalties receivable represent amounts due from Takeda for the Company’s royalties on sales of AMITIZA, which are based on reports obtained directly from Takeda.

Revenue Recognition

The Company’s revenues are derived primarily from collaboration and license agreements and include upfront payments, development milestone payments, reimbursements of development and co-promotion costs and product royalties.

The Company evaluated the multiple deliverables within the collaboration and license agreements in accordance with the guidance of multiple deliverables to determine whether the delivered elements that are the obligation of the Company have value to other parties to the agreement on a stand-alone basis and whether objective reliable evidence of fair value of the undelivered items 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.

Royalty revenues are based on net sales of licensed products and are recorded on the accrual basis when earned in accordance with contractual terms when third-party results are reliably measurable, collectability is reasonably assured and all other revenue recognition criteria are met.

Collaboration revenues relate to reimbursements of co-promotion costs based upon a rate per detail and reimbursements of the costs of miscellaneous marketing activities.

The Company considers its participation in the joint committees under the collaboration and license agreements as separate deliverables under the contracts and recognizes the fair value of such participation as collaboration revenue over the period of the participation per the terms of the contracts.

The Company has determined that it is acting as a principal under both the Takeda Agreement and Abbott Agreement and, as such, records revenue on a gross basis in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Contract Revenue

Contract revenue relates to development and consulting activities and is accounted for under the time-based model.

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, investments and receivables. The Company places its cash, cash equivalents and restricted cash with highly rated financial institutions and invests its excess cash in highly rated investments. As of June 30, 2012 and December 31, 2011, approximately $10.1 million, or 11.4%, and $15.6 million, or 16.7%, respectively, of the Company’s cash, cash equivalents, restricted cash and investments were issued or insured by the federal government or government agencies.The Company has not experienced any losses on these accounts related to amounts in excess of insured limits.

The Company’s products and product candidates under development require approval from the FDA or other international regulatory agencies prior to commercial sales. For those product candidates or indications that have not yet been approved by the FDA or international regulatory agencies, there can be no assurance the products will receive the necessary approval. If the Company is denied approval or approval is delayed, it may have a material adverse impact on the Company.

The Company’s products, AMITIZA and RESCULA, compete in a rapidly changing, highly competitive market, which is characterized by advances in scientific discovery, changes in customer requirements, evolving regulatory requirements and developing industry standards. Any failure by the Company to anticipate or to respond adequately or timely to scientific developments in its industry, changes in customer requirements or changes in regulatory requirements or industry standards, or any significant delays in the development or introduction of products could have a material adverse effect on the Company’s business, operating results and future cash flows.

The Company’s expected activities may necessitate significant uses of working capital. The Company’s working capital requirements will depend on many factors, including the successful sales of AMITIZA and RESCULA, research and development efforts to develop new products or indications, payments received under contractual agreements with other parties, the status of competitive products and market acceptance of the Company’s new products by physicians and patients. The Company plans to continue financing operations with its existing cash and investments as well as with product royalty revenue and cash received from milestones and other revenue related to its joint collaboration, license and supply agreements.

Revenues from one unrelated party, Takeda, accounted for 97.2% and 97.1%, of the Company’s total revenues for the three months ended June 30, 2012 and 2011, respectively, and 97.7% and 96.0% for the six months ended June 30, 2012 and 2011, respectively. Accounts receivable, unbilled accounts receivable and product royalties receivable from Takeda accounted for 100.0% of the Company’s total accounts receivable, unbilled accounts receivable and product royalties receivable at June 30, 2012 and December 31, 2011, respectively. Revenues from another unrelated party, Abbott, accounted for 2.2% and 2.2% of the Company’s total revenues for the three months ended June 30, 2012 and 2011, respectively, and 1.6% and 3.2% for the six months ended June 30, 2012 and 2011, respectively. The Company depends significantly upon the collaborations with Takeda and Abbott and its activities may be impacted if these relationships are disrupted.

The Company has an exclusive supply arrangement with R-Tech Ueno Ltd, or R-Tech, to provide it with commercial and clinical supplies of its product and product candidates. R-Tech also provides certain preclinical and other research and development services. Any difficulties or delays in performing the services under these arrangements may cause the Company to lose revenues, delay research and development activities or otherwise disrupt the Company’s operations.

Earnings per Share

6 Months Ended

Jun. 30, 2012

Earnings per Share

Earnings per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the sum of the weighted average class A and B common shares outstanding. Diluted net income per share is computed by dividing net income by the weighted average common shares and potential dilutive common shares outstanding. Diluted net loss per share, when applicable, is computed by dividing net loss by the weighted average common shares outstanding without the impact of potential dilutive common shares outstanding because they would have an anti-dilutive impact on diluted net loss per share.

The computation of net income (loss) per share for the three and six months ended June 30, 2012 and 2011 is shown below:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands of U.S. dollars, except per share data)	2012			2011			2012			2011
Basic net loss per share:
Net loss	$	(819	)	$	(9,019	)	$	(2,747	)	$	(15,928	)

Weighted average class A and B common shares outstanding		41,710			41,864			41,706			41,858

Basic net loss per share	$	(0.02	)	$	(0.22	)	$	(0.07	)	$	(0.38	)

Diluted net loss per share:
Net loss	$	(819	)	$	(9,019	)	$	(2,747	)	$	(15,928	)

Weighted average class A and B common shares outstanding for diluted net income per share		41,710			41,864			41,706			41,858

Diluted net loss per share	$	(0.02	)	$	(0.22	)	$	(0.07	)	$	(0.38	)

For the periods listed above, there were no potentially diluted securities to be used in the calculations of diluted historical net loss per share as of June 30, 2012 and 2011.

For the periods listed above, the following securities were excluded from the computation of diluted net loss per share as their effect would be anti-dilutive as of June 30, 2012 and 2011 are shown below:

	June 30,
(In thousands of U.S. dollars)	2012		2011
Employee stock options		3,873		3,293
Non-employee stock options		450		450

Current and Non-Current Investments

6 Months Ended

Jun. 30, 2012

Current and Non-Current Investments

Current and Non-Current Investments

At June 30, 2012 and December 31, 2011, current and non-current available-for-sale investments consisted of the following securities:

	June 30, 2012
			Unrealized		Unrealized
(In thousands of U.S. dollars)	Cost		Gains		Losses		Fair Value
Current:
Municipal securities	$	9,685	$	-	$	-	$	9,685
Total	$	9,685	$	-	$	-	$	9,685

	December 31, 2011
			Unrealized		Unrealized
(In thousands of U.S. dollars)	Cost		Gains		Losses			Fair Value
Current:
U.S. commercial paper	$	1,997	$	3	$	-		$	2,000
U.S. government securities		3,250		-		-			3,250
Corporate bonds		7,002		8		(3	)		7,007
Variable rate demand notes		12,195		-		-			12,195
Total	$	24,444	$	11	$	(3	)	$	24,452

Non-current:
U.S. government securities	$	1,000	$	-	$	(2	)	$	998
Total	$	1,000	$	-	$	(2	)	$	998

The Company performs fair value measurements in accordance with the relevant 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 an entity 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: quoted prices in active markets for identical assets or liabilities;

Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices 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 that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s assets measured at fair value on a recurring basis, which are subject to the fair value disclosure requirements, as of June 30, 2012 and December 31, 2011 are as follows:

	Fair Value Measurements at Reporting Date Using

June 30, 2012	Quoted Prices in Active Markets for identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands of U.S. dollars)	(Level 1)		(Level 2)		(Level 3)		Total
U.S. commercial paper	$	-	$	5,997	$	-	$	5,997
Municipal securities		-		9,685		-		9,685
Money market funds		15,695		-		-		15,695
Total assets measured at fair value	$	15,695	$	15,682	$	-	$	31,377

	Fair Value Measurements at Reporting Date Using

December 31, 2011	Quoted Prices in Active Markets for identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands of U.S. dollars)	(Level 1)		(Level 2)		(Level 3)		Total
U.S. government securities	$	-	$	4,248	$	-	$	4,248
U.S. commercial paper		-		2,000		-		2,000
Corporate bonds		-		7,007		-		7,007
Money market funds		12,885		-		-		12,885
Variable rate demand notes		-		12,195		-		12,195
Total assets measured at fair value	$	12,885	$	25,450	$	-	$	38,335

If quoted prices in active markets for identical assets and liabilities are not available to determine fair value, then the Company uses quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. This pricing methodology applies to the Company’s Level 2 investments.

Intangible Assets

6 Months Ended

Jun. 30, 2012

Intangible Assets

Intangible Assets

In April 2009, the Company entered into an agreement with R-Tech, or the 2009 R-Tech Agreement, to acquire all patents and other intellectual property rights related to RESCULA for its FDA approved indication and any new indications for unoprostone isopropyl in the U.S. and Canada. Although RESCULA eye drops have been approved by the FDA since 2000, RESCULA is not currently marketed in the U.S. or Canada. In the fourth quarter 2012, the Company plans to launch RESCULA in the U.S. for its approved indication after the resolution of label process.

Under the terms of the 2009 R-Tech Agreement, the Company made an upfront payment of $3.0 million and may be required to pay up to $5.5 million in additional milestone payments to R-Tech based on the achievement of specified development and commercialization goals. The first milestone payment of $500,000 is payable upon the launch of RESCULA for the treatment of is approved for the treatment of the lowering of intraocular pressure in patients with open-angle glaucoma or ocular hypertension which is considered as being probable; therefore, this amount is recorded as part of the initial cost of the acquired assets. The Company allocated the acquisition cost between an intangible asset of $3.4 million and a non-current prepaid inventory of $85,000 as of December 31, 2011, both of which are reflected in other non-current assets in the accompanying Condensed Consolidated Balance Sheets. The cost is amortized over the 10-year life of the 2009 R-Tech Agreement, which the Company believes approximates the useful life of the underlying rights and data. Amortization expense was approximately $85,000 for the three months ended June 30, 2012 and 2011, respectively, and approximately $171,000 for the six months ended June 30, 2012 and 2011, respectively. The annual amortization expense will be approximately $341,000 through April 2019.

On March 22, 2011, the Company entered into a license agreement with R-Tech for unoprostone isopropyl, or the 2011 R-Tech Agreement, expanding the Company’s development and commercialization rights as well as its territories beyond their previously agreed territory of the United States and Canada to the rest of the world, with the exception of Japan, Korea, Taiwan and the People’s Republic of China. We are now evaluating the opportunities to obtain an appropriate label in the E.U. and other European countries as well as obtaining reauthorization in those countries to commercialize unoprostone isopropyl. The Company plans to launch unoprostone isopropyl in these territories subsequent to these events.

The Company has made payments to R-Tech of $6.0 million, which is reflected in other non-current assets in the accompanying Condensed Consolidated Balance Sheets, and may be required to pay up to $100.0 million in additional milestone payments to R-Tech based on the achievement of specified development and commercialization goals. Sucampo AG, or SAG, will be responsible for all development, regulatory, and commercialization activities. The Company is amortizing the $6.0 million over the 10-year life of the license agreement, which the Company believes approximates the useful life of the underlying rights and data. Amortization expense was approximately $153,000 for the three months ended June 30, 2012 and approximately $307,000 and $150,000 for the six months ended June 30, 2012 and 2011, respectively. The annual amortization expense will be approximately $613,000 through March 2021.

Accrued Expenses

6 Months Ended

Jun. 30, 2012

Accrued Expenses

Accrued Expenses

Accrued expenses consist of the following as of:

	June 30,		December 31,
(In thousands of U.S. dollars)	2012		2010
Research and development costs	$	3,414	$	5,622
Employee compensation		1,938		1,607
Selling and marketing costs		952		76
Legal service fees		1,805		1,955
RESCULA milestone		500		3,500
Other accrued expenses		619		888
Total	$	9,228	$	13,648

Commitments

6 Months Ended

Jun. 30, 2012

Commitments

Commitments

Operating Leases

The Company leases office space in the U.S., Switzerland, Japan and U.K., under operating leases through 2017. Total future minimum, non-cancelable lease payments under operating leases, are as follows as of June 30, 2012:

(In thousands of U.S. dollars)
2012 (July - December)	$	833
2013		1,102
2014		1,024
2015		1,051
2016		1,084
2017 and thereafter		139
Total minimum lease payments	$	5,233

Rent expense for all operating leases was approximately $378,000 and $378,000 for the three months ended June 30, 2012 and 2011, respectively, and $779,000 and $743,000 for the six months ended June 30, 2012 and 2011, respectively.

Research and Development Costs

The Company routinely enters into agreements with third-party contract research organization 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. Total future estimated costs through 2012 under these agreements as of June 30, 2012 were approximately $4.7 million.

Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions

Related Party Transactions

R-Tech Ueno, Ltd.

In addition to the unoprostone isopropyl agreements described in Note 5 above, the Company is a party to other development and exclusive supply agreements with R-Tech covering various compounds and territories. The Company’s founders, Drs. Ryuji Ueno and Sachiko Kuno, directly or indirectly, own a majority of the stock of R-Tech.

The Company recorded the following expenses under its agreements with R-Tech for the three and six months ended June 30, 2012 and 2011:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands of U.S. dollars)	2012		2011		2012		2011
Clinical supplies	$	1,271	$	-	$	1,287	$	-
Other research and development services		1		3		304		7
Commercial supplies		11		-		145		123
	$	1,283	$	3	$	1,736	$	130

The following table summarizes the amounts included in deferred revenue resulting from the deferral of upfront payments relating to the exclusive supply agreements with R-Tech as of June 30, 2012 and December 31, 2011:

	June 30,		December 31,
(In thousands of U.S. dollars)	2012		2011
Deferred revenue, current	$	433	$	433
Deferred revenue, non-current		4,858		5,063
	$	5,291	$	5,496

The Company recognized approximately $105,000 of revenue relating to its agreements with R-Tech for each of the three months ended June 30, 2012 and 2011, and approximately $210,000 for the six months ended June 30, 2012 and 2011, respectively, which was recorded as contract and collaboration revenue in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Numab AG

In September 2011, the Company entered into a Loan Guarantee and Development Agreement, or Numab Agreement, with Numab. Numab is considered a related party as a result of an ownership interest by one of the Company’s executive officers. Under the terms of the Numab Agreement, the Company will provide Numab with up to CHF 5.0 million, approximately $5.2 million as of the closing date, as collateral and will serve as guarantor for a loan to Numab from a third party. The Company may name up to four targets against which Numab will use their proprietary technology to discover high-affinity antibodies and to develop these to an investigational new drug ready stage. Numab is eligible for full time equivalent based payments and discovery success dependent fees. Any success dependent fees will result in a corresponding reduction in the amount of the available guarantee. Should Numab default its loan obligations, the collateral may be called upon to meet Numab’s obligation under its loan agreement. If a biologic is successfully developed, Numab and the Company may enter into a license arrangement in which Numab will be entitled to clinical development milestone payments and increasing tiered royalties on net sales. The Company will be responsible for clinical development and will retain all commercial rights to any resulting biologic product.

In February 2012, the Company entered into a Master Lease Agreement, or Lease Agreement, with Numab whereby the maximum collateral of CHF 5.0 million is reduced by the purchase cost of any equipment leased to Numab. As of June 30, 2012, equipment with a purchase cost of CHF 544,000, approximately $570,000 as of the closing date, was leased to Numab thus reducing the maximum collateral and loan guarantee to CHF 4.5 million. Monthly rental payments are received under the terms of the lease.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph b
-Article 3A

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
-Article 4

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Notes Payable

6 Months Ended

Jun. 30, 2012

Notes Payable

Notes Payable

In November 2010, SPL entered into a ¥1,000,000,000, approximating $12.6 million as of the closing date, secured term loan agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd, or the Bank. The loan agreement provides for the extension of credit for the period of one year that can be renewed annually upon the agreement of the Company, SPL and the Bank. The loan was renewed in November 2011. Borrowings may be used to finance research and development activities, for working capital needs and for the general corporate purposes of SPL. The loan bears annual interest based on the three-month Tokyo Interbank Offer Rate, plus 1% and is reset quarterly. The interest rate at June 30, 2012 was 1.33%. The outstanding loan balances included in the accompanying Condensed Consolidated Balance Sheets were $12.6 million and $12.9 million as of June 30, 2012 and December 31, 2011. In connection with the loan agreement, the Company and the Bank executed a guarantee agreement which provides a full guarantee by the Company on behalf of SPL’s obligation to the Bank. The loan agreement includes representations, covenants, and events of default customary for financing transactions of this type. Additionally, the Company agreed to maintain an amount of collateral that would not fall below 90.0% of the initial balance throughout the term of the loan. The Company deposited $14.9 million with the Bank and the deposit bears annual interest of 0.4%, which is recorded as restricted cash, current in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011.

Subordinated Unsecured Promissory Notes

In connection with the acquisition of SAG and its wholly owned subsidiary SAG-J in December 2010, Ambrent Investments S.à r.l., or Ambrent, issued a subordinated unsecured promissory note, or notes, to each of the Ueno Trust and Kuno Trust, each a related party. 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 is equal to the per annum rate of interest determined on the basis of the sum of London Interbank Offered Rate, plus 4.0%, and is reset every six months on December 1st and June 1st of each year. The interest rate beginning June 1, 2012 is 4.7%.

The notes provide for a semi-annual payment schedule of interest and principal over a seven-year period on each June 1st and December 1st, provided that, until December 1, 2012 all accrued and unpaid interest will not be paid in cash but instead added to the principal balance of the notes. Ambrent made one principal payment on December 1, 2011 and is scheduled to make the next principal payment on December 1, 2012. For the six months ended June 30, 2012, approximately $1.1 million of interest expense was added to the principal balance of the notes as paid-in-kind.

The notes can be prepaid at any time without penalty. In addition, the notes provide for a mandatory prepayment (i) in full in the event of an acquisition by an unaffiliated third party in an all-cash acquisition of all of the issued and outstanding shares of capital stock of the Company or (ii) either in full or in part in certain change of control transactions involving the Company where an unaffiliated third party acquires a majority of the Company’s voting stock.

Notes payable consist of the following as of June 30, 2012 and December 30, 2011:

	June 30,		December 31,
(In thousands of U.S. dollars)	2012		2011
Loan agreement, The Bank of Tokyo-Mitsubishi UFJ, Ltd	$	12,600	$	12,900
Promissory notes, Sellers of SAG		47,828		46,727
	$	60,428	$	59,627

Notes payable, current	$	20,100	$	20,400
Notes payable, non-current		40,328		39,227
	$	60,428	$	59,627

The aggregated scheduled maturities of notes payable were as follows as of June 30, 2012:

	June 30,
(In thousands)	2012
Due in one year	$	20,100
Due in two years		8,650
Due in three years		8,788
Due in four years		8,932
Due in five years		9,083
Thereafter		4,875
	$	60,428

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Collaboration and License Agreements

6 Months Ended

Jun. 30, 2012

Collaboration and License Agreements

10.

Collaboration and License Agreements

Abbott Agreement

In February 2009, the Company entered into the Abbott Agreement to develop and commercialize lubiprostone for the treatment of CIC in Japan. Additionally, the Abbott Agreement grants Abbott the right to a limited period of time 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 Abbott Agreement, payments to the Company include a non-refundable upfront payment and non-refundable development and commercial milestone payments based on achieving specified development, regulatory and sales goals.

To date, the Company has received a total of $22.5 million in upfront and development milestone payments under this agreement, including a $5.0 million development milestone payment, received in October 2010, for the submission of a marketing application to the PMDAfor lubiprostone at a dosage strength of 24 micrograms for the indication of CIC in Japanese adults, as well as $10.0 million and $7.5 million in upfront and development milestone payments, respectively, in 2009. Under the Abbott Agreement the Company could receive additional milestone payments based on achieving other specified development and commercialization goals, including $15.0 million due on the first commercial sale in Japan, although there can be no assurance that the Company will receive any such payments.

The following table summarizes the cash streams and related revenue recognized or deferred under the Abbott Agreement for the three and six months ended June 30, 2012:

	Amount Deferred at December 31,		Cash Received for the Six Months Ended June 30,		Revenue Recognized for the Six Months Ended June 30,		Foreign Currency Effects for the Six Months Ended June 30,			Amount Deferred at June 30,
(In thousands of U.S. dollars)	2011		2012		2012		2012			2012
Collaboration revenue:
Up-front payment associated with the Company's obligation to participate in joint committees	$	860	$	-	$	26	$	(20	)	$	814

Research and development revenue:
Up-front payment	$	203	$	-	$	199	$	(4	)	$	-
Development milestone payment	$	273		-		267		(6	)	$	-
Total	$	476	$	-	$	466	$	(10	)	$	-

Takeda commercialization and license agreement

The Company has received a total of $150.0 million in upfront and development milestone payments through June 30, 2012 under the Takeda Agreement. Subject to future development and commercial milestones, the Company is potentially entitled to receive additional development milestone and commercial milestone payments under the Takeda Agreement, although there can be no assurance that the Company will receive any such payments.

The following table summarizes the cash streams and related revenue recognized or deferred under the Takeda Agreements for the three and six months ended June 30, 2012:

	Amount Deferred at December 31,		Cash Received for the Six Months Ended June 30,		Revenue Recognized for the Six Months Ended June 30,		Change in Accounts Receivable for the Six Months Ended June 30,			Amount Deferred at June 30,
(In thousands of U.S. dollars)	2011		2012		2012		2012*			2012
Collaboration revenue:
Up-front payment associated with the Company's obligation to participate in joint committees	$	1,323	$	-	$	74	$	-		$	1,249

Research and development revenue:
Reimbursement of research and development expenses	$	2,778	$	8,715	$	5,213	$	(3,119	)	$	3,161

Product royalty revenue	$	-	$	21,724	$	22,631	$	907		$	-

Co-promotion revenue	$	-	$	2,642	$	2,523	$	(119	)	$	-

* Includes billed and unbilled accounts receivable.

Stock Option Plans

6 Months Ended

Jun. 30, 2012

Stock Option Plans

11.

Stock Option Plans

The following table summarizes the employee stock option activity for the three and six months ended June 30, 2012 under the Company’s 2001 Incentive Plan:

	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2011		190,400		$	10.00
Options expired		(34,000	)		10.00
Options outstanding, June 30, 2012		156,400			10.00		3.84	$	-
Options exercisable, June 30, 2012		156,400			10.00		3.84	$	-

The following table summarizes the employee stock option activity for the three and six months ended June 30, 2012 under the Company’s Amended and Restated 2006 Stock Incentive Plan:

	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2011		3,402,380		$	4.75
Options granted		345,900			7.10
Options exercised		(17,484	)		3.86
Options forfeited		(2,952	)		4.41
Options expired		(11,000	)		11.31
Options outstanding, June 30, 2012		3,716,844			4.96		5.31	$	8,894
Options exercisable, June 30, 2012		822,748			6.02		7.19	$	1,905

The weighted average grant date fair value of options awarded during the six months ended June 30, 2012 and the year ended December 31, 2011 was $7.10 and $1.81, respectively. As of June 30, 2012, approximately $3.4 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 2.41 years.

The Company granted 510,000 stock options with an exercise price of $5.85 per share to non-employees in August 2005 under the Company’s 2001 Incentive Plan. As of June 30, 2012 and December 31, 2011, 450,000 of these options were outstanding and exercisable. These non-employee stock options vested immediately and have a weighted average exercise price per share of $5.85 and $5.85, respectively, and remaining contractual life of 2.84 and 3.33 years, respectively, as of June 30, 2012 and December 31, 2011. As of June 30, 2012, these non-employee stock options have an aggregate intrinsic value of approximately $531,000 and $720,000 for options outstanding and exercisable, respectively.

Employee Stock Purchase Plan

Under the Company’s 2006 Employee Stock Purchase Plan, or ESPP, a total of 1,623 and 1,397 shares of class A common stock were purchased during the six months ended June 30, 2012 and 2011, respectively. 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, and in accordance with GAAP guidance that requires estimates in the fair value of share-based payment awards on the date of the grant using an option-pricing model and recognizing the expense over the required service periods in the accompanying Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). The Company received $11,213 and $5,514 upon purchase of shares under the ESPP for the six months ended June 30, 2012 and 2011, respectively.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes

12.

Income Taxes

The Company has estimated its annual effective tax rate for the full fiscal year 2012 and 2011 and applied that rate to its income before income taxes in determining its income tax provision for the interim periods. Non-recurring and discrete items that impact tax expense are recorded in the period incurred.

For the three months ended June 30, 2012 and 2011, the Company recorded a tax benefit of $3.0 million and $2.3 million, respectively. For the six months ended June 30, 2012 and 2011, the Company recorded a tax benefit of $664,000 and $5.2 million, respectively. The tax benefit for the three months ended June 30, 2012 primarily pertained to pre-tax profits and losses generated by the Company’s U.S., Japanese and Swiss subsidiaries and a net discrete benefit of $1.6 million. The tax benefit for the six months ended June 30, 2012 primarily pertained a tax expense on pre-tax profits and losses generated by the Company’s U.S. and Japanese and Swiss subsidiaries, offset by a net discrete benefit of $709,000.

In September 2011, the Company internally transferred certain intellectual property and licenses subject to certain consents, including the Takeda Agreement, from the Company’s subsidiaries including the U.S. based subsidiary to SAG. Following the ICC Arbitration decision on the Takeda Agreements, the Company has determined that the internal transfer of the intellectual property is partially complete, resulting in a reassessment of the deferred charge, deferred tax liability and the mix of profits and losses earned in each jurisdiction. As a result of this reassessment, the Company recorded a discrete benefit of $1.5 million and $778,000 for the three and six months ended June 30, 2012, respectively. In addition, the Company reduced the deferred charge and deferred tax liability by approximately $23.8 million and $24.1 million, respectively. Management is actively working to complete the internal transfer of the remaining intellectual property, which could occur in 2012. An additional deferred charge will be recorded in the period in which the transfer is completed. Other discrete items recorded in the three months and six months ended were primarily related to (i) a benefit of $365,000 related to a settlement of a tax audit with Japanese tax authorities (see further discussion below) and (ii) an expense of $168,000 and $336,000, respectively, related to the amortization of the deferred charge.

Uncertain Tax Positions

The Company applies the relevant guidance for uncertainty in income taxes that requires the application of a more likely than not threshold to the recognition and derecognition of uncertain tax positions.

The Company had an outstanding non-current income tax liability of approximately $958,000, including interest, for uncertain tax positions as of June 30, 2012. The amount represented the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s Condensed Consolidated Financial Statements, and is reflected in other liabilities in the accompanying Condensed Consolidated Balance Sheets. The liability for uncertain tax positions as of June 30, 2012 mainly pertained to the Company’s interpretation of nexus in certain states related to revenue sourcing for state income tax purposes. During the six months ended June 2012, the liability for income taxes has decreased approximately $521,000. This decrease in the liability is primarily related to the settlement of a tax audit in Japan. As a result of this settlement, a discrete benefit of $365,000 was recorded in the three months and six months ended June 30, 2012.

The Company recognizes accrued interest and penalties related to uncertain tax positions as a component of the income tax provision. The Company has identified no uncertain tax position for which it is reasonably possible that the total amount of liability for unrecognized tax benefits will significantly increase or decrease within 12 months, except for recurring accruals on existing uncertain tax positions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting

13.

Segment Reporting

The Company has determined that it has three reportable segments based on the Company’s method of internal reporting, which disaggregates business by geographic location. These segments are the Americas, Europe and Asia. The Company evaluates the performance of these segments based on income (loss) from operations, as well as other factors, that depend on the development status of these geographies. Such measures include the progress of its research and development activities, collaboration and licensing efforts, commercialization activities and other factors. The reportable segments have historically derived their revenue from joint collaboration and strategic alliance agreements. Transactions between the segments consist primarily of loans and the provision of research and development services. Following is a summary of financial information by reportable geographic segment:

(In thousands of U.S. dollars)	Americas			Europe			Asia			Consolidated
Three Months Ended June 30, 2012
Research and development revenue	$	2,734		$	(1	)	$	363		$	3,096
Product royalty revenue		11,703			-			-			11,703
Co-promotion revenue		1,757			-			-			1,757
Contract and collaboration revenue		142			(28	)		13			127
Total revenues		16,336			(29	)		376			16,683
Research and development expenses		3,189			1,345			701			5,235
Depreciation and amortization		124			247			10			381
Other operating expenses		12,745			699			297			13,741
Income (loss) from operations		278			(2,320	)		(632	)		(2,674	)
Interest income		22			7			1			30
Interest expense		-			(550	)		(42	)		(592	)
Other non-operating expense		(42	)		(273	)		(240	)		(555	)
Loss before income taxes	$	258		$	(3,136	)	$	(913	)	$	(3,791	)
Capital expenditures	$	212		$	11		$	-		$	223

Three Months Ended June 30, 2011
Research and development revenue	$	1,449		$	-		$	293		$	1,742
Product royalty revenue		11,043			-			-			11,043
Co-promotion revenue		1,061			-			-			1,061
Contract and collaboration revenue		142			-			12			154
Total revenues		13,695			-			305			14,000
Research and development expenses		5,587			860			1,446			7,893
Depreciation and amortization		55			1			22			78
Other operating expenses		13,114			252			278			13,644
Loss from operations		(5,061	)		(1,113	)		(1,441	)		(7,615	)
Interest income		54			-			1			55
Interest expense		-			(573	)		(41	)		(614	)
Other non-operating income (expense), net		(7	)		(3,043	)		(72	)		(3,122	)
Loss before income taxes	$	(5,014	)	$	(4,729	)	$	(1,553	)	$	(11,296	)
Capital expenditures	$	36		$	-		$	11		$	47

(In thousands)	Americas		Europe			Asia			Consolidated
Six Months Ended June 30, 2012
Research and development revenue	$	5,213	$	2		$	466		$	5,681
Product royalty revenue		22,631		-			-			22,631
Co-promotion revenue		2,523		-			-			2,523
Contract and collaboration revenue		283		(15	)		26			294
Total revenues		30,650		(13	)		492			31,129
Research and development expenses		4,011		2,862			1,714			8,587
Depreciation and amortization		244		467			20			731
Other operating expenses		22,798		1,415			594			24,807
Income (loss) from operations		3,597		(4,757	)		(1,836	)		(2,996	)
Interest income		40		9			1			50
Interest expense		-		(1,100	)		(84	)		(1,184	)
Other non-operating expense		33		(83	)		769			719
Loss before income taxes	$	3,670	$	(5,931	)	$	(1,150	)	$	(3,411	)
Capital expenditures	$	252	$	3,445		$	-		$	3,697

Six Months Ended June 30, 2011
Research and development revenue	$	2,897		$	-		$	809		$	3,706
Product royalty revenue		20,161			-			-			20,161
Co-promotion revenue		1,999			-			-			1,999
Contract and collaboration revenue		283			-			25			308
Total revenues		25,340			-			834			26,174
Research and development expenses		12,913			1,387			2,813			17,113
Depreciation and amortization		453			158			39			650
Other operating expenses		24,218			404			565			25,187
Loss from operations		(12,244	)		(1,949	)		(2,583	)		(16,776	)
Interest income		123			1			1			125
		-			(1,143	)		(82	)		(1,225	)
Other non-operating income (expense), net		(11	)		(3,242	)		(4	)		(3,257	)
Loss before income taxes	$	(12,132	)	$	(6,333	)	$	(2,668	)	$	(21,133	)
Capital expenditures	$	78		$	6,000		$	102		$	6,180

As of June 30, 2012
Property and equipment, net	$	1,366	$	19	$	268	$	1,653
Identifiable assets, net of intercompany loans and investments	$	85,033	$	27,964	$	11,941	$	124,938

As of December 31, 2011
Property and equipment, net	$	1,359	$	16	$	294	$	1,669
Identifiable assets, net of intercompany loans and investments	$	96,490	$	47,925	$	13,154	$	157,569

- Definition

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=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&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=6534315&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
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2012
Cash and Cash Equivalents	*Cash and Cash Equivalents* For the purpose of the Condensed Consolidated Balance Sheets and Statements of Cash Flows, cash equivalents include all highly liquid investments with a maturity of 90 days or less at the time of purchase.
Restricted Cash	*Restricted Cash* Restricted cash consists of approximately $17.2 million at June 30, 2012 and December 31, 2011, respectively. Restricted cash represents cash required to be deposited with certain financial institutions in connection with the Sucampo Pharma, Ltd., or SPL, loan agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd., Numab’s loan agreement with Zurcher Kantonalbank and operating leases.
Current and Non-current Investments	*Current and Non-current Investments* Current and non-current investments consist primarily of U.S. government agencies securities, corporate bonds, mutual funds and variable rate demand notes. The Company classifies its investments into current and non-current based on their maturities and management’s reasonable expectation to realize these investments in cash. The Company classifies all of its investments as available for sale securities and reports unrealized gains or losses, net of related tax effects, in other comprehensive income.
Fair Value of Financial Instruments	*Fair Value of Financial Instruments* The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, current and non-current investments, receivables, accounts payable and accrued expenses, approximate their fair values based on their short maturities, independent valuations or internal assessments. The carrying amount of the short and long-term debt at June 30, 2012 and December 31, 2011 approximated its fair value due to the fact that the interest rates are determined based by reference to interbank rates. The Company’s debt is subject to the fair value disclosure requirements as discussed in Note 4 below, is considered a Level 2 security.
Accounts Receivable and Unbilled Accounts Receivable	*Accounts Receivable and Unbilled Accounts Receivable* Accounts receivable represent mainly amounts due under the Takeda and the Abbott Agreements. Unbilled accounts receivable represent the research and development expenses that are reimbursable by Takeda but have not been billed to Takeda as of the balance sheet date. The Company recorded an allowance for doubtful accounts at June 30, 2012 of approximately $193,000 related to certain disputed Takeda invoices. No allowance was recorded in 2011.
Product Royalties Receivable	*Product Royalties Receivable* Product royalties receivable represent amounts due from Takeda for the Company’s royalties on sales of AMITIZA, which are based on reports obtained directly from Takeda.
Revenue Recognition	*Revenue Recognition* The Company’s revenues are derived primarily from collaboration and license agreements and include upfront payments, development milestone payments, reimbursements of development and co-promotion costs and product royalties. The Company evaluated the multiple deliverables within the collaboration and license agreements in accordance with the guidance of multiple deliverables to determine whether the delivered elements that are the obligation of the Company have value to other parties to the agreement on a stand-alone basis and whether objective reliable evidence of fair value of the undelivered items 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. Royalty revenues are based on net sales of licensed products and are recorded on the accrual basis when earned in accordance with contractual terms when third-party results are reliably measurable, collectability is reasonably assured and all other revenue recognition criteria are met. Collaboration revenues relate to reimbursements of co-promotion costs based upon a rate per detail and reimbursements of the costs of miscellaneous marketing activities. The Company considers its participation in the joint committees under the collaboration and license agreements as separate deliverables under the contracts and recognizes the fair value of such participation as collaboration revenue over the period of the participation per the terms of the contracts. The Company has determined that it is acting as a principal under both the Takeda Agreement and Abbott Agreement and, as such, records revenue on a gross basis in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). *Contract Revenue* Contract revenue relates to development and consulting activities and is accounted for under the time-based model.
Certain Risks, Concentrations and Uncertainties	*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, investments and receivables. The Company places its cash, cash equivalents and restricted cash with highly rated financial institutions and invests its excess cash in highly rated investments. As of June 30, 2012 and December 31, 2011, approximately $10.1 million, or 11.4%, and $15.6 million, or 16.7%, respectively, of the Company’s cash, cash equivalents, restricted cash and investments were issued or insured by the federal government or government agencies.The Company has not experienced any losses on these accounts related to amounts in excess of insured limits. The Company’s products and product candidates under development require approval from the FDA or other international regulatory agencies prior to commercial sales. For those product candidates or indications that have not yet been approved by the FDA or international regulatory agencies, there can be no assurance the products will receive the necessary approval. If the Company is denied approval or approval is delayed, it may have a material adverse impact on the Company. The Company’s products, AMITIZA and RESCULA, compete in a rapidly changing, highly competitive market, which is characterized by advances in scientific discovery, changes in customer requirements, evolving regulatory requirements and developing industry standards. Any failure by the Company to anticipate or to respond adequately or timely to scientific developments in its industry, changes in customer requirements or changes in regulatory requirements or industry standards, or any significant delays in the development or introduction of products could have a material adverse effect on the Company’s business, operating results and future cash flows. The Company’s expected activities may necessitate significant uses of working capital. The Company’s working capital requirements will depend on many factors, including the successful sales of AMITIZA and RESCULA, research and development efforts to develop new products or indications, payments received under contractual agreements with other parties, the status of competitive products and market acceptance of the Company’s new products by physicians and patients. The Company plans to continue financing operations with its existing cash and investments as well as with product royalty revenue and cash received from milestones and other revenue related to its joint collaboration, license and supply agreements. Revenues from one unrelated party, Takeda, accounted for 97.2% and 97.1%, of the Company’s total revenues for the three months ended June 30, 2012 and 2011, respectively, and 97.7% and 96.0% for the six months ended June 30, 2012 and 2011, respectively. Accounts receivable, unbilled accounts receivable and product royalties receivable from Takeda accounted for 100.0% of the Company’s total accounts receivable, unbilled accounts receivable and product royalties receivable at June 30, 2012 and December 31, 2011, respectively. Revenues from another unrelated party, Abbott, accounted for 2.2% and 2.2% of the Company’s total revenues for the three months ended June 30, 2012 and 2011, respectively, and 1.6% and 3.2% for the six months ended June 30, 2012 and 2011, respectively. The Company depends significantly upon the collaborations with Takeda and Abbott and its activities may be impacted if these relationships are disrupted. The Company has an exclusive supply arrangement with R-Tech Ueno Ltd, or R-Tech, to provide it with commercial and clinical supplies of its product and product candidates. R-Tech also provides certain preclinical and other research and development services. Any difficulties or delays in performing the services under these arrangements may cause the Company to lose revenues, delay research and development activities or otherwise disrupt the Company’s operations.

- Definition

Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4273-108586

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 305
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2122427

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash
-URI http://asc.fasb.org/extlink&oid=6506951

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash Equivalents
-URI http://asc.fasb.org/extlink&oid=6507016

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Financial Reporting Release (FRR)
-Number 203
-Paragraph 02-03

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 1
-Article 5

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Technical Practice Aid (TPA)
-Number 2110
-Paragraph 6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 7, 8, 9, 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Entity's cash and cash equivalents accounting policy with respect to restricted balances. Restrictions may include legally restricted deposits held as compensating balances against short-term borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits; however, time deposits and short-term certificates of deposit are not generally included in legally restricted deposits.

+ References + Details

- Definition

Disclosure of accounting policy for credit risk.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 55
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6875567&loc=d3e14489-108613

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 825
-Section 55
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6487554&loc=d3e32600-158583

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 825
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6480020&loc=d3e61082-112788

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13531-108611

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 55
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6875567&loc=d3e14537-108613

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 825
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6480020&loc=d3e61044-112788

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number SOP94-6-1
-Paragraph 7, 11
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 113
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 14
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Disclosure of accounting policy for investments in financial assets, including marketable securities (debt and equity securities with readily determinable fair values), investments accounted for under the equity method and cost method, securities borrowed and loaned, and repurchase and resale agreements. For marketable securities, the disclosure may include the entity's accounting treatment for transfers between investment categories and how the fair values for such securities are determined. Also, for all investments, an entity may describe its policy for assessing, recognizing and measuring impairment of the investment.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (a)(2)
-URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

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 210.5-02.2,12)
-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 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 325
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6872867&loc=d3e40691-111596

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 5
-Section M

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 7-18
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 2, 12
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 7-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10, 11
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2012

Computation of Net Income (Loss) per Share

The computation of net income (loss) per share for the three and six months ended June 30, 2012 and 2011 is shown below:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands of U.S. dollars, except per share data)	2012			2011			2012			2011
Basic net loss per share:
Net loss	$	(819	)	$	(9,019	)	$	(2,747	)	$	(15,928	)

Weighted average class A and B common shares outstanding		41,710			41,864			41,706			41,858

Basic net loss per share	$	(0.02	)	$	(0.22	)	$	(0.07	)	$	(0.38	)

Diluted net loss per share:
Net loss	$	(819	)	$	(9,019	)	$	(2,747	)	$	(15,928	)

Weighted average class A and B common shares outstanding for diluted net income per share		41,710			41,864			41,706			41,858

Diluted net loss per share	$	(0.02	)	$	(0.22	)	$	(0.07	)	$	(0.38	)

Securities Excluded from Computation of Diluted Net Loss per Share

	June 30,
(In thousands of U.S. dollars)	2012		2011
Employee stock options		3,873		3,293
Non-employee stock options		450		450

Current and Non-Current Investments (Tables)

6 Months Ended

Jun. 30, 2012

Current and Non-Current Available-for-Sale Investments

At June 30, 2012 and December 31, 2011, current and non-current available-for-sale investments consisted of the following securities:

	June 30, 2012
			Unrealized		Unrealized
(In thousands of U.S. dollars)	Cost		Gains		Losses		Fair Value
Current:
Municipal securities	$	9,685	$	-	$	-	$	9,685
Total	$	9,685	$	-	$	-	$	9,685

	December 31, 2011
			Unrealized		Unrealized
(In thousands of U.S. dollars)	Cost		Gains		Losses			Fair Value
Current:
U.S. commercial paper	$	1,997	$	3	$	-		$	2,000
U.S. government securities		3,250		-		-			3,250
Corporate bonds		7,002		8		(3	)		7,007
Variable rate demand notes		12,195		-		-			12,195
Total	$	24,444	$	11	$	(3	)	$	24,452

Non-current:
U.S. government securities	$	1,000	$	-	$	(2	)	$	998
Total	$	1,000	$	-	$	(2	)	$	998

Company's Assets Measured at Fair Value on Recurring Basis

The Company’s assets measured at fair value on a recurring basis, which are subject to the fair value disclosure requirements, as of June 30, 2012 and December 31, 2011 are as follows:

	Fair Value Measurements at Reporting Date Using

June 30, 2012	Quoted Prices in Active Markets for identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands of U.S. dollars)	(Level 1)		(Level 2)		(Level 3)		Total
U.S. commercial paper	$	-	$	5,997	$	-	$	5,997
Municipal securities		-		9,685		-		9,685
Money market funds		15,695		-		-		15,695
Total assets measured at fair value	$	15,695	$	15,682	$	-	$	31,377

	Fair Value Measurements at Reporting Date Using

December 31, 2011	Quoted Prices in Active Markets for identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands of U.S. dollars)	(Level 1)		(Level 2)		(Level 3)		Total
U.S. government securities	$	-	$	4,248	$	-	$	4,248
U.S. commercial paper		-		2,000		-		2,000
Corporate bonds		-		7,007		-		7,007
Money market funds		12,885		-		-		12,885
Variable rate demand notes		-		12,195		-		12,195
Total assets measured at fair value	$	12,885	$	25,450	$	-	$	38,335

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 17
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 21
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2012

Accrued Expenses

Accrued expenses consist of the following as of:

	June 30,		December 31,
(In thousands of U.S. dollars)	2012		2010
Research and development costs	$	3,414	$	5,622
Employee compensation		1,938		1,607
Selling and marketing costs		952		76
Legal service fees		1,805		1,955
RESCULA milestone		500		3,500
Other accrued expenses		619		888
Total	$	9,228	$	13,648

Commitments (Tables)

6 Months Ended

Jun. 30, 2012

Future Minimum, Non-Cancelable Lease Payments Under Operating Leases

Total future minimum, non-cancelable lease payments under operating leases, are as follows as of June 30, 2012:

(In thousands of U.S. dollars)
2012 (July - December)	$	833
2013		1,102
2014		1,024
2015		1,051
2016		1,084
2017 and thereafter		139
Total minimum lease payments	$	5,233

Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2012

Expenses Under Agreements with R-Tech

The Company recorded the following expenses under its agreements with R-Tech for the three and six months ended June 30, 2012 and 2011:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands of U.S. dollars)	2012		2011		2012		2011
Clinical supplies	$	1,271	$	-	$	1,287	$	-
Other research and development services		1		3		304		7
Commercial supplies		11		-		145		123
	$	1,283	$	3	$	1,736	$	130

Amounts Included in Deferred Revenue Resulting from Deferral of Upfront Payments Relating to Exclusive Supply Agreements with R-Tech

	June 30,		December 31,
(In thousands of U.S. dollars)	2012		2011
Deferred revenue, current	$	433	$	433
Deferred revenue, non-current		4,858		5,063
	$	5,291	$	5,496

Notes Payable (Tables)

6 Months Ended

Jun. 30, 2012

Components of Notes Payable

Notes payable consist of the following as of June 30, 2012 and December 30, 2011:

	June 30,		December 31,
(In thousands of U.S. dollars)	2012		2011
Loan agreement, The Bank of Tokyo-Mitsubishi UFJ, Ltd	$	12,600	$	12,900
Promissory notes, Sellers of SAG		47,828		46,727
	$	60,428	$	59,627

Notes payable, current	$	20,100	$	20,400
Notes payable, non-current		40,328		39,227
	$	60,428	$	59,627

Aggregated Scheduled Maturities of Notes Payable

The aggregated scheduled maturities of notes payable were as follows as of June 30, 2012:

	June 30,
(In thousands)	2012
Due in one year	$	20,100
Due in two years		8,650
Due in three years		8,788
Due in four years		8,932
Due in five years		9,083
Thereafter		4,875
	$	60,428

Collaboration and License Agreements (Tables)

6 Months Ended

Jun. 30, 2012

Abbott

Cash Streams and Related Revenue Recognized or Deferred Under Agreement

The following table summarizes the cash streams and related revenue recognized or deferred under the Abbott Agreement for the three and six months ended June 30, 2012:

	Amount Deferred at December 31,		Cash Received for the Six Months Ended June 30,		Revenue Recognized for the Six Months Ended June 30,		Foreign Currency Effects for the Six Months Ended June 30,			Amount Deferred at June 30,
(In thousands of U.S. dollars)	2011		2012		2012		2012			2012
Collaboration revenue:
Up-front payment associated with the Company's obligation to participate in joint committees	$	860	$	-	$	26	$	(20	)	$	814

Research and development revenue:
Up-front payment	$	203	$	-	$	199	$	(4	)	$	-
Development milestone payment	$	273		-		267		(6	)	$	-
Total	$	476	$	-	$	466	$	(10	)	$	-

Takeda

Cash Streams and Related Revenue Recognized or Deferred Under Agreement

The following table summarizes the cash streams and related revenue recognized or deferred under the Takeda Agreements for the three and six months ended June 30, 2012:

	Amount Deferred at December 31,		Cash Received for the Six Months Ended June 30,		Revenue Recognized for the Six Months Ended June 30,		Change in Accounts Receivable for the Six Months Ended June 30,			Amount Deferred at June 30,
(In thousands of U.S. dollars)	2011		2012		2012		2012*			2012
Collaboration revenue:
Up-front payment associated with the Company's obligation to participate in joint committees	$	1,323	$	-	$	74	$	-		$	1,249

Research and development revenue:
Reimbursement of research and development expenses	$	2,778	$	8,715	$	5,213	$	(3,119	)	$	3,161

Product royalty revenue	$	-	$	21,724	$	22,631	$	907		$	-

Co-promotion revenue	$	-	$	2,642	$	2,523	$	(119	)	$	-

* Includes billed and unbilled accounts receivable.

Stock Option Plans (Tables)

6 Months Ended

Jun. 30, 2012

Stock Plan 2001

Employee Stock Option Activity

The following table summarizes the employee stock option activity for the three and six months ended June 30, 2012 under the Company’s Amended and Restated 2006 Stock Incentive Plan:

	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2011		3,402,380		$	4.75
Options granted		345,900			7.10
Options exercised		(17,484	)		3.86
Options forfeited		(2,952	)		4.41
Options expired		(11,000	)		11.31
Options outstanding, June 30, 2012		3,716,844			4.96		5.31	$	8,894
Options exercisable, June 30, 2012		822,748			6.02		7.19	$	1,905

Stock Incentive Plan 2006

Employee Stock Option Activity

The following table summarizes the employee stock option activity for the three and six months ended June 30, 2012 under the Company’s 2001 Incentive Plan:

	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2011		190,400		$	10.00
Options expired		(34,000	)		10.00
Options outstanding, June 30, 2012		156,400			10.00		3.84	$	-
Options exercisable, June 30, 2012		156,400			10.00		3.84	$	-

Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2012

Financial Information by Reportable Geographic Segment

Following is a summary of financial information by reportable geographic segment:

(In thousands of U.S. dollars)	Americas			Europe			Asia			Consolidated
Three Months Ended June 30, 2012
Research and development revenue	$	2,734		$	(1	)	$	363		$	3,096
Product royalty revenue		11,703			-			-			11,703
Co-promotion revenue		1,757			-			-			1,757
Contract and collaboration revenue		142			(28	)		13			127
Total revenues		16,336			(29	)		376			16,683
Research and development expenses		3,189			1,345			701			5,235
Depreciation and amortization		124			247			10			381
Other operating expenses		12,745			699			297			13,741
Income (loss) from operations		278			(2,320	)		(632	)		(2,674	)
Interest income		22			7			1			30
Interest expense		-			(550	)		(42	)		(592	)
Other non-operating expense		(42	)		(273	)		(240	)		(555	)
Loss before income taxes	$	258		$	(3,136	)	$	(913	)	$	(3,791	)
Capital expenditures	$	212		$	11		$	-		$	223

Three Months Ended June 30, 2011
Research and development revenue	$	1,449		$	-		$	293		$	1,742
Product royalty revenue		11,043			-			-			11,043
Co-promotion revenue		1,061			-			-			1,061
Contract and collaboration revenue		142			-			12			154
Total revenues		13,695			-			305			14,000
Research and development expenses		5,587			860			1,446			7,893
Depreciation and amortization		55			1			22			78
Other operating expenses		13,114			252			278			13,644
Loss from operations		(5,061	)		(1,113	)		(1,441	)		(7,615	)
Interest income		54			-			1			55
Interest expense		-			(573	)		(41	)		(614	)
Other non-operating income (expense), net		(7	)		(3,043	)		(72	)		(3,122	)
Loss before income taxes	$	(5,014	)	$	(4,729	)	$	(1,553	)	$	(11,296	)
Capital expenditures	$	36		$	-		$	11		$	47

(In thousands)	Americas		Europe			Asia			Consolidated
Six Months Ended June 30, 2012
Research and development revenue	$	5,213	$	2		$	466		$	5,681
Product royalty revenue		22,631		-			-			22,631
Co-promotion revenue		2,523		-			-			2,523
Contract and collaboration revenue		283		(15	)		26			294
Total revenues		30,650		(13	)		492			31,129
Research and development expenses		4,011		2,862			1,714			8,587
Depreciation and amortization		244		467			20			731
Other operating expenses		22,798		1,415			594			24,807
Income (loss) from operations		3,597		(4,757	)		(1,836	)		(2,996	)
Interest income		40		9			1			50
Interest expense		-		(1,100	)		(84	)		(1,184	)
Other non-operating expense		33		(83	)		769			719
Loss before income taxes	$	3,670	$	(5,931	)	$	(1,150	)	$	(3,411	)
Capital expenditures	$	252	$	3,445		$	-		$	3,697

Six Months Ended June 30, 2011
Research and development revenue	$	2,897		$	-		$	809		$	3,706
Product royalty revenue		20,161			-			-			20,161
Co-promotion revenue		1,999			-			-			1,999
Contract and collaboration revenue		283			-			25			308
Total revenues		25,340			-			834			26,174
Research and development expenses		12,913			1,387			2,813			17,113
Depreciation and amortization		453			158			39			650
Other operating expenses		24,218			404			565			25,187
Loss from operations		(12,244	)		(1,949	)		(2,583	)		(16,776	)
Interest income		123			1			1			125
		-			(1,143	)		(82	)		(1,225	)
Other non-operating income (expense), net		(11	)		(3,242	)		(4	)		(3,257	)
Loss before income taxes	$	(12,132	)	$	(6,333	)	$	(2,668	)	$	(21,133	)
Capital expenditures	$	78		$	6,000		$	102		$	6,180

As of June 30, 2012
Property and equipment, net	$	1,366	$	19	$	268	$	1,653
Identifiable assets, net of intercompany loans and investments	$	85,033	$	27,964	$	11,941	$	124,938

As of December 31, 2011
Property and equipment, net	$	1,359	$	16	$	294	$	1,669
Identifiable assets, net of intercompany loans and investments	$	96,490	$	47,925	$	13,154	$	157,569

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Significant Accounting Policies [Line Items]
Restricted Cash	$ 17,200,000		$ 17,200,000		$ 17,200,000
Allowance for doubtful accounts	193,000		193,000		0
Cash insured by federal government	$ 10,100,000		$ 10,100,000		$ 15,600,000
Percentage of cash insured	11.40%		11.40%		16.70%
Non-Related Party \| Takeda
Significant Accounting Policies [Line Items]
Percentage of Company's revenues	97.20%	97.10%	97.70%	96.00%
Percentage of Company's total accounts receivable	100.00%		100.00%		100.00%
Non-Related Party \| Abbott
Significant Accounting Policies [Line Items]
Percentage of Company's revenues	2.20%	2.20%	1.60%	3.20%

Computation of Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Basic net loss per share:
Net loss	$ (819)	$ (9,019)	$ (2,747)	$ (15,928)
Weighted average class A and B common shares outstanding	41,710	41,864	41,706	41,858
Basic net loss per share	$ (0.02)	$ (0.22)	$ (0.07)	$ (0.38)
Diluted net loss per share:
Net loss	$ (819)	$ (9,019)	$ (2,747)	$ (15,928)
Weighted average class A and B common shares outstanding for diluted net income per share	41,710	41,864	41,706	41,858
Diluted net loss per share	$ (0.02)	$ (0.22)	$ (0.07)	$ (0.38)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.21)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=16381557&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1252-109256

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04.23)
-URI http://asc.fasb.org/extlink&oid=6879574&loc=d3e536633-122882

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 18
-Article 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 36, 37, 38
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 20
-Article 5

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 21
-Article 9

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

- Definition

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

+ References + Details

- Definition

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Weighted-Average Number of Common Shares Outstanding
-URI http://asc.fasb.org/extlink&oid=6528421

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Securities Excluded from Computation of Diluted Net Loss per Share (Detail) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Employee stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted net loss per share as their effect would be anti-dilutive	3,873	3,293
Non-employee stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted net loss per share as their effect would be anti-dilutive	450	450

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Current and Non-Current Available-for-Sale Investments (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Current
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 9,685	$ 24,444
Unrealized Gains		11
Unrealized Losses		(3)
Fair Value	9,685	24,452
Current \| Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Cost	9,685
Fair Value	$ 9,685
Current \| U.S. commercial paper
Schedule of Available-for-sale Securities [Line Items]
Cost		1,997
Unrealized Gains		3
Fair Value		2,000
Current \| U.S. government securities
Schedule of Available-for-sale Securities [Line Items]
Cost		3,250
Fair Value		3,250
Current \| Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Cost		7,002
Unrealized Gains		8
Unrealized Losses		(3)
Fair Value		7,007
Current \| Variable rate demand notes
Schedule of Available-for-sale Securities [Line Items]
Cost		12,195
Fair Value		12,195
Non-current
Schedule of Available-for-sale Securities [Line Items]
Cost		1,000
Unrealized Losses		(2)
Fair Value		998
Non-current \| U.S. government securities
Schedule of Available-for-sale Securities [Line Items]
Cost		1,000
Unrealized Losses		(2)
Fair Value		$ 998

Company's Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 31,377	$ 38,335
U.S. commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	5,997	2,000
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	9,685
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	15,695	12,885
U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		4,248
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		7,007
Variable rate demand notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		12,195
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	15,695	12,885
Fair Value, Inputs, Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	15,695	12,885
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	15,682	25,450
Fair Value, Inputs, Level 2 \| U.S. commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	5,997	2,000
Fair Value, Inputs, Level 2 \| Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 9,685
Fair Value, Inputs, Level 2 \| U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		4,248
Fair Value, Inputs, Level 2 \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		7,007
Fair Value, Inputs, Level 2 \| Variable rate demand notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		$ 12,195

Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Indefinite-lived Intangible Assets [Line Items]
Upfront payment made			$ 3,000,000	$ 3,000,000
Milestone payment maximum amount	$ 5,500,000		5,500,000
First milestone payment			500,000
Intangible assets	3,400,000		3,400,000
Non-current prepaid inventory	85,000		$ 85,000
Useful life of the underlying rights and data			10 years
Amortization Expense	85,000	$ 85,000	$ 171,000	171,000
Annual amortization expense			341,000
SAG
Indefinite-lived Intangible Assets [Line Items]
Upfront payment made			6,000,000
Milestone payment maximum amount	100,000,000		100,000,000
Intangible assets	6,000,000		$ 6,000,000
Useful life of the underlying rights and data			10 years
Amortization Expense	$ 153,000		$ 307,000	$ 150,000
Annual amortization expense			$ 613,000

Accrued Expenses (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule of Accrued Liabilities [Line Items]
Research and development costs	$ 3,414		$ 5,622
Employee compensation	1,938		1,607
Selling and marketing costs	952		76
Legal service fees	1,805		1,955
RESCULA milestone	500		3,500
Other accrued expenses	619		888
Total	$ 9,228	$ 13,648	$ 13,648

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for professional fees, such as for legal and accounting services received. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable arising from transactions not otherwise specified in the taxonomy. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

Future Minimum, Non-Cancelable Lease Payments Under Operating Leases (Detail) $ in Thousands	Jun. 30, 2012 USD ($)
Operating Leased Assets [Line Items]
2012 (July - December)	$ 833
2013	1,102
2014	1,024
2015	1,051
2016	1,084
2017 and thereafter	139
Total minimum lease payments	$ 5,233

Commitments - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
Commitments - Additional Information (Detail) - USD ($)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Operating Leased Assets [Line Items]
Rent expense for all operating leases	$ 378,000	$ 378,000	$ 779,000	$ 743,000
Research and development future estimated costs			$ 4,700,000

Expenses Under Agreements with R-Tech (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Related Party Transaction [Line Items]
Expenses related to R-Tech	$ 1,283	$ 3	$ 1,736	$ 130
Clinical supplies
Related Party Transaction [Line Items]
Expenses related to R-Tech	1,271		1,287
Other research and development services
Related Party Transaction [Line Items]
Expenses related to R-Tech	1	$ 3	304	7
Commercial supplies
Related Party Transaction [Line Items]
Expenses related to R-Tech	$ 11		$ 145	$ 123

Amounts Included in Deferred Revenue Resulting from Deferral of Upfront Payments Relating to Exclusive Supply Agreements with R-Tech (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Deferred Revenue Arrangement [Line Items]
Deferred revenue, current	$ 3,793	$ 3,888
Deferred revenue, non-current	6,722	7,045
R-Tech
Deferred Revenue Arrangement [Line Items]
Deferred revenue, current	433	433
Deferred revenue, non-current	4,858	5,063
Deferred Revenue, Total	$ 5,291	$ 5,496

- Definition

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

Related Party Transactions - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2012 USD ($)	Jun. 30, 2012 CHF (SFr)	Jun. 30, 2011 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2011 CHF (SFr)
Related Party Transaction [Line Items]
Equipment purchased on lease by Numab			$ 570,000	SFr 544,000
Remaining collateral balance \| SFr				SFr 4,500,000
Maximum
Related Party Transaction [Line Items]
Collateral security for loan to Numab from third party						$ 5,200,000	SFr 5,000,000
R-Tech
Related Party Transaction [Line Items]
Contract And Collaboration Revenue \| $	$ 105,000	$ 105,000	$ 210,000		$ 210,000

Notes Payable - Additional Information (Detail)	1 Months Ended		6 Months Ended
Notes Payable - Additional Information (Detail)	Dec. 31, 2010 USD ($)	Nov. 30, 2010 JPY (¥)	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Dec. 31, 2011 USD ($)	Nov. 30, 2010 USD ($)
Debt Instrument [Line Items]
Notes Repayment Schedule			The notes provide for a semi-annual payment schedule of interest and principal over a seven-year period on each June 1st and December 1st, provided that, until December 1, 2012 all accrued and unpaid interest will not be paid in cash but instead added to the principal balance of the notes. Ambrent made one principal payment on December 1, 2011 and is scheduled to make the next principal payment on December 1, 2012.
Interest expense added to Principal Balance of Notes			$ 1,101,000	$ 1,144,000
Secured Debt
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		¥ 1,000,000,000.0				$ 12,600,000
Loan Agreement Extension of Credit Period		1 year
Interest description		The loan bears annual interest based on the three-month Tokyo Interbank Offer Rate, plus 1% and is reset quarterly.
Loan Agreement, interest rate			1.33%
Loan agreement outstanding balance			$ 12,600,000		$ 12,900,000
Deposits in bank			$ 14,900,000		$ 14,900,000
Percentage of annual interest deposits with banks bear			0.40%		0.40%
Secured Debt \| Minimum
Debt Instrument [Line Items]
Minimum percentage of collateral to loan			90.00%
Subordinated Unsecured Promissory Notes
Debt Instrument [Line Items]
Interest description	The interest rate for the notes is equal to the per annum rate of interest determined on the basis of the sum of London Interbank Offered Rate, plus 4.0%, and is reset every six months on December 1st and June 1st of each year.
Debt Face amount	$ 51,900,000
Effective date of interest rate	Jun. 01, 2012
Interest rate	4.70%
Subordinated Unsecured Promissory Notes \| LIBOR
Debt Instrument [Line Items]
Interest rate above variable rate	4.00%
Subordinated Unsecured Promissory Notes \| Ueno Trust
Debt Instrument [Line Items]
Debt Face amount	$ 25,900,000
Subordinated Unsecured Promissory Notes \| Kuno Trust
Debt Instrument [Line Items]
Debt Face amount	$ 25,900,000

Notes Payable (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Loan agreement, The Bank of Tokyo-Mitsubishi UFJ, Ltd	$ 12,600	$ 12,900
Promissory notes, Sellers of SAG	47,828	46,727
Notes Payable, Total	60,428	59,627
Notes payable, current	20,100	20,400
Notes payable, non-current	40,328	39,227
Notes Payable	$ 60,428	$ 59,627

Aggregated Scheduled Maturities of Notes Payable (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Due in one year	$ 20,100
Due in two years	8,650
Due in three years	8,788
Due in four years	8,932
Due in five years	9,083
Thereafter	4,875
Notes Payable, Total	$ 60,428	$ 59,627

Collaboration and License Agreements - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	6 Months Ended	12 Months Ended
	Oct. 31, 2010	Jun. 30, 2012	Dec. 31, 2009
Takeda \| Up Front Fee And Milestone Payment Arrangement
Segment Reporting Information [Line Items]
Upfront & Development Milestone payment Received		$ 150.0
Abbott
Segment Reporting Information [Line Items]
Upfront & Development expected Milestone receivables		15.0
Abbott \| Up Front Fee And Milestone Payment Arrangement
Segment Reporting Information [Line Items]
Upfront & Development Milestone payment Received		$ 22.5
Abbott \| Up-front Payment Arrangement
Segment Reporting Information [Line Items]
Upfront & Development Milestone payment Received			$ 10.0
Abbott \| Milestone Payment Arrangement
Segment Reporting Information [Line Items]
Upfront & Development Milestone payment Received	$ 5.0		$ 7.5

Cash Streams and Related Revenue Recognized or Deferred Under Abbott Agreement (Detail) - Abbott $ in Thousands	6 Months Ended
	Jun. 30, 2012 USD ($)
Deferred Revenue Arrangement [Line Items]
Beginning Balance	$ 476
Revenue Recognized	466
Collaborative Arrangement \| Up-front Payment Arrangement
Deferred Revenue Arrangement [Line Items]
Beginning Balance	860
Revenue Recognized	26
Ending Balance	814
Research and Development Arrangement \| Up-front Payment Arrangement
Deferred Revenue Arrangement [Line Items]
Beginning Balance	203
Revenue Recognized	199
Research and Development Arrangement \| Milestone Payment Arrangement
Deferred Revenue Arrangement [Line Items]
Beginning Balance	273
Revenue Recognized	267
Foreign Currency Translation Adjustment Gain (Loss)
Deferred Revenue Arrangement [Line Items]
Deferred Revenue Additions	(10)
Foreign Currency Translation Adjustment Gain (Loss) \| Collaborative Arrangement \| Up-front Payment Arrangement
Deferred Revenue Arrangement [Line Items]
Deferred Revenue Additions	(20)
Foreign Currency Translation Adjustment Gain (Loss) \| Research and Development Arrangement \| Up-front Payment Arrangement
Deferred Revenue Arrangement [Line Items]
Deferred Revenue Additions	(4)
Foreign Currency Translation Adjustment Gain (Loss) \| Research and Development Arrangement \| Milestone Payment Arrangement
Deferred Revenue Arrangement [Line Items]
Deferred Revenue Additions	$ (6)

Cash Streams and Related Revenue Recognized or Deferred Under Takeda Agreements (Detail) - Takeda
$ in Thousands

6 Months Ended

Jun. 30, 2012

USD ($)

Collaborative Arrangement | Up-front Payment Arrangement

Deferred Revenue Arrangement [Line Items]

Beginning Balance

$ 1,323

Revenue Recognized

Ending Balance

1,249

Research and Development Arrangement

Deferred Revenue Arrangement [Line Items]

Beginning Balance

2,778

Revenue Recognized

5,213

Ending Balance

3,161

Research and Development Arrangement | Royalty Arrangement

Deferred Revenue Arrangement [Line Items]

Revenue Recognized

22,631

Research and Development Arrangement | Collaborative Arrangement, Co-promotion

Deferred Revenue Arrangement [Line Items]

Revenue Recognized

2,523

Cash | Research and Development Arrangement

Deferred Revenue Arrangement [Line Items]

Deferred Revenue Additions

8,715

Cash | Research and Development Arrangement | Royalty Arrangement

Deferred Revenue Arrangement [Line Items]

Deferred Revenue Additions

21,724

Cash | Research and Development Arrangement | Collaborative Arrangement, Co-promotion

Deferred Revenue Arrangement [Line Items]

Deferred Revenue Additions

2,642

Accounts Receivable | Research and Development Arrangement

Deferred Revenue Arrangement [Line Items]

Deferred Revenue Additions

(3,119)

^[1]

Accounts Receivable | Research and Development Arrangement | Royalty Arrangement

Deferred Revenue Arrangement [Line Items]

Deferred Revenue Additions

907

^[1]

Accounts Receivable | Research and Development Arrangement | Collaborative Arrangement, Co-promotion

Deferred Revenue Arrangement [Line Items]

Deferred Revenue Additions

$ (119)

^[1]

[1]	Includes billed and unbilled accounts receivable.

Employee Stock Option Activity Under Company's 2001 Incentive Plan (Detail) - Stock Plan 2001	6 Months Ended
	Jun. 30, 2012 USD ($) $ / shares shares
Shares
Options outstanding, beginning balance \| shares	190,400
Options expired \| shares	(34,000)
Options outstanding, ending balance \| shares	156,400
Options exercisable, ending balance \| shares	156,400
Weighted Average Exercise Price Per Share
Options outstanding, beginning balance \| $ / shares	$ 10.00
Options expired \| $ / shares	10.00
Options outstanding, ending balance \| $ / shares	10.00
Options exercisable, ending balance \| $ / shares	$ 10.00
Weighted Average Remaining Contractual Term (Years)
Options outstanding, ending balance	3 years 10 months 2 days
Options exercisable, ending balance	3 years 10 months 2 days
Aggregate Intrinsic Value
Options outstanding, ending balance \| $
Options exercisable, ending balance \| $

Employee Stock Option Activity Under Company's Amended and Restated 2006 Stock Incentive Plan (Detail) - Stock Incentive Plan 2006	6 Months Ended
	Jun. 30, 2012 USD ($) $ / shares shares
Shares
Options outstanding, beginning balance \| shares	3,402,380
Options granted \| shares	345,900
Options exercised \| shares	(17,484)
Options forfeited \| shares	(2,952)
Options expired \| shares	(11,000)
Options outstanding, ending balance \| shares	3,716,844
Options exercisable, ending balance \| shares	822,748
Weighted Average Exercise Price Per Share
Options outstanding, beginning balance \| $ / shares	$ 4.75
Options granted \| $ / shares	7.10
Options exercised \| $ / shares	3.86
Options forfeited \| $ / shares	4.41
Options expired \| $ / shares	11.31
Options outstanding, ending balance \| $ / shares	4.96
Options exercisable, ending balance \| $ / shares	$ 6.02
Weighted Average Remaining Contractual Term (Years)
Options outstanding, ending balance	5 years 3 months 22 days
Options exercisable, ending balance	7 years 2 months 9 days
Aggregate Intrinsic Value
Options outstanding, ending balance \| $	$ 8,894
Options exercisable, ending balance \| $	$ 1,905

Stock Option Plans - Additional Information (Detail) - USD ($)	1 Months Ended	6 Months Ended		12 Months Ended
	Aug. 31, 2005	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Options granted to employees and directors, weighted average grant date fair value		$ 7.10		$ 1.81
Options granted to employees and directors, unrecognized compensation cost		$ 3,400,000
Options granted to employees and directors related to non-vested awards, weighted average period of recognition		2 years 4 months 28 days
Class A common stock purchased		$ 11,000
Stock Plan 2001
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Options granted to non-employees, shares outstanding and exercisable		156,400
Options granted to non-employees, shares exercisable, remaining contractual life		3 years 10 months 2 days
Options granted to non-employees, shares outstanding intrinsic value
Options granted to non-employees, shares exercisable intrinsic value
Stock Plan 2001 \| Non-employee stock options
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Options granted	510,000
Options granted, exercise price	$ 5.85
Options granted to non-employees, shares outstanding and exercisable		450,000		450,000
Options granted to non-employees, shares vested, exercise price		$ 5.85		$ 5.85
Options granted to non-employees, shares exercisable, remaining contractual life		2 years 10 months 2 days		3 years 3 months 29 days
Options granted to non-employees, shares outstanding intrinsic value		$ 531,000
Options granted to non-employees, shares exercisable intrinsic value		$ 720,000
Stock Incentive Plan 2006
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Options granted		345,900
Options granted, exercise price		$ 7.10
Options granted to non-employees, shares outstanding and exercisable		822,748
Options granted to non-employees, shares exercisable, remaining contractual life		7 years 2 months 9 days
Options granted to non-employees, shares outstanding intrinsic value		$ 8,894
Options granted to non-employees, shares exercisable intrinsic value		$ 1,905
Stock Incentive Plan 2006 \| Employee Stock Purchase Plan
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Class A common stock purchased, shares		1,623	1,397
Class A common stock purchased		$ 11,213	$ 5,514

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Taxes [Line Items]
Income tax benefit	$ (2,972,000)	$ (2,277,000)	$ (664,000)	$ (5,205,000)
Net discrete benefit	1,600,000		709,000.0
Discrete tax benefit	1,500,000		778,000.0
Decrease in deferred charges			(23,800,000)
Decrease in deferred tax liability			(24,100,000)
Tax benefit on settlement of a tax audit with Japanese tax authorities	365,000		365,000
Amortization of deferred charge	168,000		336,000
Outstanding non-current income tax liability for uncertain tax positions	$ 958,000		958,000
Decrease in income tax liability			$ 521,000

Segment Reporting - Additional Information (Detail)	6 Months Ended
Segment Reporting - Additional Information (Detail)	Jun. 30, 2012 Segment
Segment Reporting Disclosure [Line Items]
Number of reportable segments	3

Financial Information by Reportable Geographic Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Segment Reporting Information [Line Items]
Research and development revenue	$ 3,096	$ 1,742	$ 5,681	$ 3,706
Product royalty revenue	11,703	11,043	22,631	20,161
Co-promotion revenue	1,757	1,061	2,523	1,999
Contract and collaboration revenue	127	154	294	308
Total revenues	16,683	14,000	31,129	26,174
Research and development expenses	5,235	7,893	8,587	17,113
Depreciation and amortization	381	78	731	650
Other operating expenses	13,741	13,644	24,807	25,187
Income (loss) from operations	(2,674)	(7,615)	(2,996)	(16,776)
Interest income	30	55	50	125
Interest expense	(592)	(614)	(1,184)	(1,225)
Other non-operating expense	(555)	(3,122)	719	(3,257)
Loss before income taxes	(3,791)	(11,296)	(3,411)	(21,133)
Capital expenditures	223	47	3,697	6,180
Property and equipment, net	1,653		1,653		$ 1,669
Identifiable assets, net of intercompany loans and investments	124,938		124,938		157,569
Americas
Segment Reporting Information [Line Items]
Research and development revenue	2,734	1,449	5,213	2,897
Product royalty revenue	11,703	11,043	22,631	20,161
Co-promotion revenue	1,757	1,061	2,523	1,999
Contract and collaboration revenue	142	142	283	283
Total revenues	16,336	13,695	30,650	25,340
Research and development expenses	3,189	5,587	4,011	12,913
Depreciation and amortization	124	55	244	453
Other operating expenses	12,745	13,114	22,798	24,218
Income (loss) from operations	278	(5,061)	3,597	(12,244)
Interest income	22	54	40	123
Other non-operating expense	(42)	(7)	33	(11)
Loss before income taxes	258	(5,014)	3,670	(12,132)
Capital expenditures	212	36	252	78
Property and equipment, net	1,366		1,366		1,359
Identifiable assets, net of intercompany loans and investments	85,033		85,033		96,490
Europe
Segment Reporting Information [Line Items]
Research and development revenue	(1)		2
Contract and collaboration revenue	(28)		(15)
Total revenues	(29)		(13)
Research and development expenses	1,345	860	2,862	1,387
Depreciation and amortization	247	1	467	158
Other operating expenses	699	252	1,415	404
Income (loss) from operations	(2,320)	(1,113)	(4,757)	(1,949)
Interest income	7		9	1
Interest expense	(550)	(573)	(1,100)	(1,143)
Other non-operating expense	(273)	(3,043)	(83)	(3,242)
Loss before income taxes	(3,136)	(4,729)	(5,931)	(6,333)
Capital expenditures	11		3,445	6,000
Property and equipment, net	19		19		16
Identifiable assets, net of intercompany loans and investments	27,964		27,964		47,925
Asia
Segment Reporting Information [Line Items]
Research and development revenue	363	293	466	809
Contract and collaboration revenue	13	12	26	25
Total revenues	376	305	492	834
Research and development expenses	701	1,446	1,714	2,813
Depreciation and amortization	10	22	20	39
Other operating expenses	297	278	594	565
Income (loss) from operations	(632)	(1,441)	(1,836)	(2,583)
Interest income	1	1	1	1
Interest expense	(42)	(41)	(84)	(82)
Other non-operating expense	(240)	(72)	769	(4)
Loss before income taxes	(913)	(1,553)	(1,150)	(2,668)
Capital expenditures		$ 11		$ 102
Property and equipment, net	268		268		294
Identifiable assets, net of intercompany loans and investments	$ 11,941		$ 11,941		$ 13,154