Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2019	Jul. 31, 2019
Document and Entity Information
Entity Registrant Name	VIVUS INC
Entity Central Index Key	0000881524
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		10,642,713
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 25,022	$ 30,411
Available-for-sale securities	69,344	80,838
Accounts receivable, net	24,568	25,608
Inventories	30,111	23,132
Prepaid expenses and other current assets	6,970	7,538
Total current assets	156,015	167,527
Fixed Assets, net	306	341
Right-of-use assets	1,323
Intangible and other non-current assets	127,003	134,279
Total assets	284,647	302,147
Current liabilities:
Accounts payable	3,800	8,921
Accrued and other liabilities	34,384	33,044
Deferred revenue	1,205	1,235
Current portion of lease liability	710
Current portion of long-term debt	185,384
Total current liabilities	225,483	43,200
Long-term debt	107,007	294,446
Deferred revenue, net of current portion	3,738	4,290
Lease liability, net of current portion	894
Non-current accrued and other liabilities		234
Total liabilities	337,122	342,170
Commitments and contingencies
Stockholders' deficit
Preferred stock; $.001 par value; 5,000 shares authorized; no shares issued and outstanding at June 30, 2019 and December 31, 2018	0	0
Common stock; $.001 par value; 200,000 shares authorized; 10,643 and 10,636 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively	11	11
Additional paid-in capital	841,702	840,751
Accumulated other comprehensive income (loss)	201	(270)
Accumulated deficit	(894,389)	(880,515)
Total stockholders' deficit	(52,475)	(40,023)
Total liabilities and stockholders' deficit	$ 284,647	$ 302,147

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2019	Dec. 31, 2018
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	10,643	10,636
Common stock, shares outstanding	10,643	10,636

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue:
Total revenue	$ 18,390	$ 14,960	$ 34,536	$ 26,860
Operating expenses:
Cost of goods sold (excluding amortization)	4,377	3,286	8,685	5,916
Amortization of Intangible Assets	3,638	1,273	7,276	1,364
Sales and Marketing	4,607	3,521	9,141	7,800
General and Administrative	5,463	8,190	10,747	13,979
Research and development	2,352	2,042	4,821	3,445
Total operating expenses	20,437	18,312	40,670	32,504
Loss from operations	(2,047)	(3,352)	(6,134)	(5,644)
Interest expense and other expense, net	3,880	9,218	7,750	17,567
Loss before income taxes	(5,927)	(12,570)	(13,884)	(23,211)
Provision for income taxes	8	4	0	16
Net loss	$ (5,935)	$ (12,574)	$ (13,884)	$ (23,227)
Basic and diluted net loss per share:
Basic and diluted net loss per share (in dollars per share)	$ (0.56)	$ (1.18)	$ (1.31)	$ (2.19)
Shares used in per share computation:
Basic and diluted (in shares)	10,640	10,612	10,639	10,607
Net Product Revenue
Revenue:
Total revenue	$ 15,104	$ 13,250	$ 28,601	$ 22,882
Supply Revenue
Revenue:
Total revenue	1,780	1,042	3,384	2,725
Royalty Revenue
Revenue:
Total revenue	$ 1,506	$ 668	$ 2,551	$ 1,253

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (5,935)	$ (12,574)	$ (13,884)	$ (23,227)
Other comprehensive loss:
Unrealized gain on securities, net of taxes	222	577	471	100
Translation adjustment		1		1
Comprehensive loss	$ (5,713)	$ (11,996)	$ (13,413)	$ (23,126)

- Definition

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

+ References + Details

Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Balances at Dec. 31, 2017	$ 11	$ 834,824	$ (608)	$ (843,565)	$ (9,338)
Balances (in shares) at Dec. 31, 2017	10,603
Sale of common stock through employee stock purchase plan		24			24
Sale of common stock through employee stock purchase plan (in shares)	5
Exercise of common stock options for cash		60			60
Exercise of common stock options for cash (in shares)	8
Vesting of restricted stock units (in shares)	8
Share-based compensation expense		1,974			1,974
Warrants issued for acquisition of PANCREAZE		828			828
Warrants issued in association with the issuance of debt		1,695			1,695
Net unrealized (loss) gain on securities			100		100
Net income (loss)				(23,227)	(23,227)
Balances at Jun. 30, 2018	$ 11	839,405	(508)	(866,792)	(27,884)
Balances (in shares) at Jun. 30, 2018	10,624
Balances at Mar. 31, 2018	$ 11	835,749	(1,085)	(854,218)	(19,543)
Balances (in shares) at Mar. 31, 2018	10,610
Sale of common stock through employee stock purchase plan		24			24
Sale of common stock through employee stock purchase plan (in shares)	5
Exercise of common stock options for cash		60			60
Exercise of common stock options for cash (in shares)	8
Vesting of restricted stock units (in shares)	1
Share-based compensation expense		1,049			1,049
Warrants issued for acquisition of PANCREAZE		828			828
Warrants issued in association with the issuance of debt		1,695			1,695
Net unrealized (loss) gain on securities			577		577
Net income (loss)				(12,574)	(12,574)
Balances at Jun. 30, 2018	$ 11	839,405	(508)	(866,792)	(27,884)
Balances (in shares) at Jun. 30, 2018	10,624
Balances at Dec. 31, 2018	$ 11	840,751	(270)	(880,515)	$ (40,023)
Balances (in shares) at Dec. 31, 2018	10,636				10,636
Sale of common stock through employee stock purchase plan		16			$ 16
Sale of common stock through employee stock purchase plan (in shares)	6
Vesting of restricted stock units (in shares)	1
Share-based compensation expense		935			935
Net unrealized (loss) gain on securities			471		471
Cumulative effect of accounting change				10	10
Net income (loss)				(13,884)	(13,884)
Balances at Jun. 30, 2019	$ 11	841,702	201	(894,389)	$ (52,475)
Balances (in shares) at Jun. 30, 2019	10,643				10,643
Balances at Mar. 31, 2019	$ 11	841,219	(21)	(888,454)	$ (47,245)
Balances (in shares) at Mar. 31, 2019	10,637
Sale of common stock through employee stock purchase plan		16			16
Sale of common stock through employee stock purchase plan (in shares)	6
Share-based compensation expense		467			467
Net unrealized (loss) gain on securities			222		222
Net income (loss)				(5,935)	(5,935)
Balances at Jun. 30, 2019	$ 11	$ 841,702	$ 201	$ (894,389)	$ (52,475)
Balances (in shares) at Jun. 30, 2019	10,643				10,643

Consolidated Statements Of Cash Flow - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net loss	$ (13,884)	$ (23,227)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	7,350	1,495
Amortization of discount or premium on available-for-sale securities	(208)	616
Amortization of debt issuance costs and discounts	(2,055)	10,706
Share-based compensation expense	935	1,974
Changes in assets and liabilities:
Accounts receivable	1,040	1,116
Inventories	(7,254)	(2,785)
Prepaid expenses and other assets	775	779
Accounts payable	(5,121)	(5,727)
Accrued and other liabilities	1,563	(2,469)
Deferred revenue	(582)	(609)
Net cash used for operating activities	(17,441)	(18,131)
Cash flows from investing activities:
Fixed asset purchases	(39)	(34)
Acquisition of PANCREAZE license		(135,000)
Purchases of available-for-sale securities	(16,879)	(7,604)
Proceeds from maturity of available-for-sale securities	28,235	40,411
Proceeds from sales of available-for-sale securities	817	60,259
Net cash provided for (used for) provided by investing activities	12,134	(41,968)
Cash flows from financing activities:
Net proceeds from debt issuance		107,991
Repayments of notes payable		(57,187)
Principal payments of financing leases	(98)
Net proceeds from exercise of common stock options		60
Sale of common stock through employee stock purchase plan	16	24
Net cash (used for) provided by financing activities	(82)	50,888
Net decrease in cash and cash equivalents	(5,389)	(9,211)
Cash and cash equivalents:
Beginning of period	30,411	66,392
End of period	$ 25,022	$ 57,181

Business and Significant Accounting Policies	6 Months Ended
Business and Significant Accounting Policies	Jun. 30, 2019
BASIS OF PRESENTATION
Business and Significant Accounting Policies	1. BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES VIVUS is a specialty pharmaceutical company with three approved therapies (Qsymia®, PANCREAZE® and STENDRA®/SPEDRA™) and one product candidate in clinical development (VI-0106). Qsymia (phentermine and topiramate extended release) is approved by the U.S. Food and Drug Administration (“FDA”) for chronic weight management. In June 2018, the Company acquired the U.S. and Canadian commercial rights for PANCREAZE (pancrelipase), which is indicated for the treatment of exocrine pancreatic insufficiency due to cystic fibrosis or other conditions. STENDRA (avanafil) is approved by FDA for erectile dysfunction (“ED”), and by the European Commission (“EC”) under the trade name SPEDRA, for the treatment of ED. The Company commercializes Qsymia and PANCREAZE in the U.S. through a specialty sales force supported by an internal commercial team. The Company licenses the commercial rights to STENDRA/SPEDRA in the U.S., EU and other countries and to PANCREAZE in Canada on a transitional basis until the Company begins commercializing it on its own, which it expects to do in the third quarter of 2019. VI-0106 (tacrolimus) is in clinical development and is being studied in patients with pulmonary arterial hypertension (“PAH”). When reference is made to the “Company” or “VIVUS” in these footnotes, it refers to the Delaware corporation, or VIVUS, Inc., and, unless the context otherwise requires, its California predecessor, as well as all of its consolidated subsidiaries. Liquidity and Ability to Continue as a Going Concern At June 30, 2019, the Company’s accumulated deficit was approximately $894.4 million and its cash, cash equivalents and available-for-sale securities were $94.4 million. As of June 30, 2019, the Company had a total of $292.4 million in debt, $181.4 million of which is due May 2020. In addition, at June 30, 2019, the Company was not in compliance with a covenant in the indenture covering its secured debt due 2024 (the “2024 Notes”) related to PANCREAZE net revenues. The Company subsequently received a waiver from the holders of the 2024 Notes (the “consenting noteholders”) with respect to any potential event of default or default that may have resulted from such covenant non-compliance. In connection with the waiver, the Company agreed with the consenting noteholders to use good faith efforts to make certain amendments to the 2024 Notes indenture at a future date (collectively, the “noteholder conditions”), including transferring $60.0 million from the existing 2024 Notes trustee controlled account into a new controlled account that can only be accessed upon prior written consent of the 2024 Notes trustee at the direction of the noteholders. If the Company does not satisfy the noteholder conditions, the consenting noteholders may revoke the waiver, which could result in an event of default. See Note 14 for additional information regarding the Company’s debt. The Company does not currently have sufficient cash and/or credit facilities in place to address the debt due May 2020 and is actively pursuing funding, which may come through public or private debt or equity financings, collaborations or other available financing sources. Such funding may not be available on acceptable terms, or at all. If additional funds are raised by issuing equity securities, substantial dilution to existing stockholders may result. If adequate funds are not available, the Company will not be able to continue its operations at its current level and may be required to relinquish rights to certain of its technologies, product candidates or products that it would otherwise seek to develop on its own. It might also be required to delay, reduce the scope of or eliminate one or more of its commercialization or development programs or obtain funds through collaborations with others that are on unfavorable terms. Even if adequate funds become available, the Company may need to raise additional funds in the near future to finance operations and pursue development and commercial opportunities. The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company’s coming debt maturities as well as its negative cash flow from operations and accumulated deficit raise substantial doubt about its ability to continue as a going concern. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. Management has evaluated all events and transactions that occurred after June 30, 2019 through the date these unaudited condensed consolidated financial statements were filed. There were no events or transactions during this period that require recognition or disclosure in these unaudited condensed consolidated financial statements. The condensed consolidated balance sheet data as of December 31, 2018 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 as filed on February 26, 2019 with the Securities and Exchange Commission (“SEC”). Certain amounts have been reclassified to conform to current year presentation. The unaudited condensed consolidated financial statements include the accounts of VIVUS, Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Reverse Stock Split On September 10, 2018, the Company effected a one-for-10 reverse stock split of its common stock. As a result of the reverse stock split, every 10 shares of the Company’s pre-reverse split common stock issued and outstanding was combined and converted into one issued and outstanding share of post-reverse split common stock without any change in the par value of the shares. Accordingly, an amount equal to the par value of the decreased shares resulting from the reverse stock split was reclassified from “Common stock” to “Additional paid-in capital.” No fractional shares were issued as a result of the reverse stock split; any fractional shares that would have resulted were rounded up to the nearest whole share. Proportionate voting rights and other rights of stockholders were not affected by the reverse stock split, other than as a result of the rounding up of potential fractional shares. All stock options, warrants and restricted stock units outstanding and common stock reserved for issuance under the Company’s equity incentive plans immediately prior to the reverse stock split were adjusted by dividing the number of affected shares of common stock by 10 and, where applicable, multiplying the exercise price by 10. All share and per share amounts related to common stock, stock options, warrants and restricted stock units have been restated for all periods to give retroactive effect to the reverse stock split. Use of Estimates The preparation of these unaudited condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including critical accounting policies or estimates related to available-for-sale securities, debt instruments, research and development expenses, income taxes, inventories, revenues, contingencies and litigation and share-based compensation. The Company bases its estimates on historical experience, information received from third parties and on various market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ significantly from those estimates under different assumptions or conditions. Significant Accounting Policies There have been no changes to the Company’s significant accounting policies since the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 with the exception of accounting for leases. See Note 12. Recent Accounting Pronouncement Adopted In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842), which modifies the accounting by lessees for all leases with a term greater than 12 months. This standard requires lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The Company adopted this standard on January 1, 2019 using the modified retrospective transition method, and as a result did not adjust comparative periods. The Company has one large operating lease for its corporate headquarters and several smaller leases, including financing leases for its automobile fleet and copiers. See Note 12. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update 2016-13, Measurement of Credit Losses on Financial Instruments, which requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model, referred to as the current expected credit loss (CECL) model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument. This standard is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company is evaluating the potential impact of this standard, but does not expect it to have a material impact on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which adds disclosure requirements to Topic 820 for the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This standard is effective for fiscal years beginning after December 31, 2019 and early adoption is permitted. The Company is evaluating the provisions of this guidance, but currently does not expect it to have a material impact on its consolidated financial statements.

Revenue

6 Months Ended

Jun. 30, 2019

REVENUE INFORMATION

Revenue

2. REVENUES

For all revenue transactions, the Company evaluates its contracts with its customers to determine revenue recognition using the following five-step model:

1)The Company identifies the contract(s) with a customer

2)The Company identifies the performance obligations in the contract

3)The Company determines the transaction price

4)The Company allocates the transaction price to the identified performance obligations

5)The Company recognizes revenue when (or as) it satisfies a performance obligation

Product Revenue

Product revenue is recognized at the time of shipment at which time the Company has satisfied its performance obligation. Product revenue is recognized net of consideration paid to the Company’s customers, wholesalers and certified pharmacies. Such consideration is for services rendered by the wholesalers and pharmacies in accordance with the wholesalers and certified pharmacy services network agreements, and includes a fixed rate per prescription shipped and monthly program management and data fees. These services are not deemed sufficiently separable from the customers’ purchase of the product; therefore, they are recorded as a reduction of revenue at the time of revenue recognition.

Other product revenue allowances include a reserve for estimated product returns, certain prompt pay discounts and allowances offered to the Company’s customers, program rebates and chargebacks. These product revenue allowances are recognized as a reduction of revenue at the date at which the related revenue is recognized. The Company also offers discount programs to patients. Calculating certain of these items involves estimates and judgments based on sales or invoice data, contractual terms, utilization rates, new information regarding changes in these programs’ regulations and guidelines that would impact the amount of the actual rebates or chargebacks. The Company reviews the adequacy of product revenue allowances on a quarterly basis. Amounts accrued for product revenue allowances are adjusted when trends or significant events indicate that adjustment is appropriate and to reflect actual experience. See Note 9 for product reserve balances.

Supply Revenue

The Company produces STENDRA/SPEDRA through a contract manufacturing partner and then sells it to the Company’s commercialization partners. The Company is the primary responsible party in the commercial supply arrangements and bears significant risk in the fulfillment of the obligations, including risks associated with manufacturing, regulatory compliance and quality assurance, as well as inventory, financial and credit loss. As such, the Company recognizes supply revenue on a gross basis as the principal party in the arrangements. The Company recognizes supply revenue at the time of shipment and, in the unusual case where the product does not meet contractually-specified product dating criteria at the time of shipment to the partner, the Company records a reserve for estimated product returns. There are no such reserves as of June 30, 2019.

License and Milestone Revenue

License and milestone revenues related to arrangements, usually license and/or supply agreements, entered into by the Company are recognized by following the five-step process outlined above. The allocation and timing of recognition of such revenue will be determined by that process and the amounts recognized and the timing of that recognition may not exactly follow the wording of the agreement as the amount allocated following the accounting analysis of the agreement may differ and the timing of recognition of a significant performance obligation may predate the contractual date.

Royalty Revenue

The Company relies on data provided by its collaboration partner in determining its contractually-based royalty revenue. Such data includes accounting estimates and reports for various discounts and allowances, including product returns. The Company records royalty revenues based on the best data available and makes any adjustments to such revenues as such information becomes available.

Revenue by Source and Geography

Revenue disaggregated by revenue source and by geographic region was as follows (in thousands):


	Three Months Ended June 30,
	2019							2018
	U.S.		ROW			Total		U.S.		ROW			Total
Qsymia—Net product revenue	$	9,994	$	—		$	9,994	$	11,134	$	—		$	11,134
PANCREAZE - Net product revenue		5,110		—			5,110		2,116		—			2,116
PANCREAZE - Royalty revenue		—		987			987		—		74			74
STENDRA/SPEDRA—Supply revenue		—		1,780			1,780		525		517			1,042
STENDRA/SPEDRA—Royalty revenue		—		519			519		—		594			594
Total revenue	$	15,104	$	3,286	(1)	$	18,390	$	13,775	$	1,185	(2)	$	14,960

	Six Months Ended June 30,
	2019							2018
	U.S.		ROW			Total		U.S.		ROW			Total
Qsymia—Net product revenue	$	18,417	$	—		$	18,417	$	20,766	$	—		$	20,766
PANCREAZE - Net product revenue		10,184		—			10,184		2,116		—			2,116
PANCREAZE - Royalty revenue		—		1,557			1,557		—		74			74
STENDRA/SPEDRA—Supply revenue		—		3,384			3,384		1,071		1,654			2,725
STENDRA/SPEDRA—Royalty revenue		—		994			994		—		1,179			1,179
Total revenue	$	28,601	$	5,935	(3)	$	34,536	$	23,953	$	2,907	(4)	$	26,860

(1)

$2.3 million of which was attributable to Germany and $1.0 million of which was attributable to Canada.

(2)

$1.1 million of which was attributable to Germany.

(3)

$4.3 million of which was attributable to Germany and $1.6 million of which was attributable to Canada.

(4)

$2.8 million of which was attributable to Germany.

Revenue and cost of goods sold by source was as follows (in thousands):


	Three Months Ended June 30,
	2019								2018
	Qsymia		PANCREAZE		STENDRA/ SPEDRA		Total		Qsymia		PANCREAZE		STENDRA/ SPEDRA		Total
Net product revenue	$	9,994	$	5,110	$	—	$	15,104	$	11,134	$	2,116	$	—	$	13,250
Supply revenue		—		—		1,780		1,780		—		—		1,042		1,042
Royalty revenue		—		987		519		1,506		—		74		594		668
Total revenue	$	9,994	$	6,097	$	2,299	$	18,390	$	11,134	$	2,190	$	1,636	$	14,960

Cost of goods sold (excluding amortization)	$	942	$	1,770	$	1,665	$	4,377	$	1,652	$	567	$	1,067	$	3,286
Amortization of intangible assets	$	91	$	3,547	$	—	$	3,638	$	90		1,183	$	—	$	1,273

	Six Months Ended June 30,
	2019								2018
	Qsymia		PANCREAZE		STENDRA/ SPEDRA		Total		Qsymia		PANCREAZE		STENDRA/ SPEDRA		Total
Net product revenue	$	18,417	$	10,184	$	—	$	28,601	$	20,766	$	2,116	$	—	$	22,882
Supply revenue		—		—		3,384		3,384		—		—		2,725		2,725
Royalty revenue		—		1,557		994		2,551		—		74		1,179		1,253
Total revenue	$	18,417	$	11,741	$	4,378	$	34,536	$	20,766	$	2,190	$	3,904	$	26,860

Cost of goods sold (excluding amortization)	$	2,324	$	3,231	$	3,130	$	8,685	$	2,695	$	568	$	2,653	$	5,916
Amortization of intangible assets	$	182	$	7,094	$	—	$	7,276	$	181		1,183	$	—	$	1,364

Share-Based Compensation

6 Months Ended

Jun. 30, 2019

SHARE-BASED COMPENSATION.

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

3. SHARE-BASED COMPENSATION

Total share-based compensation expense for all of the Company’s share-based awards was as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Cost of goods sold	$	13	$	18	$	27	$	30
Selling and marketing		70		87		140		174
General and administrative		335		868		664		1,613
Research and development		49		76		104		157
Total share-based compensation expense	$	467	$	1,049	$	935	$	1,974

Share-based compensation expense capitalized as part of the cost of inventory	$	14	$	-	$	14	$	1

Cash, Cash Equivalents, And Available-For-Sale Securities

6 Months Ended

Jun. 30, 2019

CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES

CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES

4. CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES

The fair value and the amortized cost of cash, cash equivalents, and available-for-sale securities by major security type are presented in the tables that follow (in thousands).


	As of June 30, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
Cash and cash equivalents and available-for-sale securities	Cost		Gains		Losses		Fair Value
Cash and money market funds	$	25,022	$	—	$	—	$	25,022
U.S. Treasury securities		27,862		75		(19)		27,918
Corporate debt securities		41,282		163		(19)		41,426
Total		94,166		238		(38)		94,366
Less amounts classified as cash and cash equivalents		(25,022)		—		—		(25,022)
Total available-for-sale securities	$	69,144	$	238	$	(38)	$	69,344


	As of December 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
Cash and cash equivalents and available-for-sale securities	Cost		Gains		Losses		Fair Value
Cash and money market funds	$	30,411	$	—	$	—	$	30,411
U.S. Treasury securities		42,261		34		(111)		42,184
Corporate debt securities		38,848		9		(203)		38,654
Total		111,520		43		(314)		111,249
Less amounts classified as cash and cash equivalents		(30,411)		—		—		(30,411)
Total available-for-sale securities	$	81,109	$	43	$	(314)	$	80,838

As of June 30, 2019, the Company’s available-for-sale securities had original contractual maturities up to 57 months. However, the Company may sell these securities prior to their stated maturities in response to changes in the availability of and the yield on alternative investments as well as liquidity requirements. As these securities are readily marketable and are viewed by the Company as available to support current operations, securities with maturities beyond 12 months are classified as current assets. Due to their short-term maturities, the Company believes that the fair value of its bank deposits, accounts payable and accrued expenses approximate their carrying value.

Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value. The three levels are:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table represents the fair value hierarchy for our cash, cash equivalents and available-for-sale securities by major security type (in thousands):


	As of June 30, 2019
	Level 1		Level 2		Level 3		Total
Cash and money market funds	$	25,022	$	—	$	—	$	25,022
U.S. Treasury securities		27,918		—		—		27,918
Corporate debt securities		—		41,426		—		41,426
Total	$	52,940	$	41,426	$	—	$	94,366


	As of December 31, 2018
	Level 1		Level 2		Level 3		Total
Cash and money market funds	$	30,411	$	—	$	—	$	30,411
U.S. Treasury securities		42,184		—		—		42,184
Corporate debt securities		—		38,654		—		38,654
Total	$	72,595	$	38,654	$	—	$	111,249

Accounts Receivable

6 Months Ended

Jun. 30, 2019

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

5. ACCOUNTS RECEIVABLE

Accounts receivable consist of the following (in thousands):


	Balance as of
	June 30,		December 31,
	2019		2018
Qsymia	$	15,408	$	13,987
PANCREAZE		6,703		10,213
STENDRA/SPEDRA		2,728		1,560
		24,839		25,760
Allowance for cash discounts		(271)		(152)
Net	$	24,568	$	25,608

Inventories

6 Months Ended

Jun. 30, 2019

INVENTORIES

INVENTORIES

6. INVENTORIES

Inventories consist of the following (in thousands):


	Balance as of
	June 30,		December 31,
	2019		2018
Raw materials	$	24,089	$	17,813
Work-in-process		323		1,719
Finished goods		5,699		3,600
Inventories, net	$	30,111	$	23,132

Raw materials inventories consist primarily of the active pharmaceutical ingredients (“API”) for Qsymia and STENDRA/SPEDRA. Work-in-process and finished goods inventory consist of Qsymia, STENDRA/SPEDRA and PANCREAZE inventory. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first in, first out method for all inventories, which are valued using a weighted-average cost method calculated for each production batch. The Company periodically evaluates the carrying value of inventory on hand for potential excess amounts over demand using the same lower of cost or net realizable value approach as that used to value the inventory.

Prepaid Expenses And Other Current Assets

6 Months Ended

Jun. 30, 2019

OTHER CURRENT ASSETS

PREPAID EXPENSES AND OTHER ASSETS

7. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following (in thousands):


	Balance as of
	June 30,		December 31,
	2019		2018
Prepaid sales and marketing expenses	$	1,942	$	1,525
Prepaid insurance		567		1,451
Taxes receivable		2,302		779
Other prepaid expenses and assets		2,159		3,783
Total	$	6,970	$	7,538

These costs have been deferred as prepaid expenses and other current assets on the condensed consolidated balance sheets and will be either (i) charged to expense accordingly when the related prepaid services are rendered to the Company, or (ii) converted to cash when the receivable is collected by the Company. The amounts included in other prepaid expenses and assets consist primarily of prepayments for future services, prepaid interest and interest income receivable.

Intangible and Other Non-Current Assets

6 Months Ended

Jun. 30, 2019

NON-CURRENT ASSETS

NON-CURRENT ASSETS

8. INTANGIBLE AND OTHER NON-CURRENT ASSETS

Intangible and other non-current assets consist of the following (in thousands):


	June 30, 2019						December 31, 2018
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
PANCREAZE license (1)	$	141,895	$	(15,372)	$	126,523	$	141,895	$	(8,277)	$	133,618
Janssen patents (2)		3,050		(2,778)		272		3,050		(2,597)		453
Other non-current assets		208		—		208		208		—		208
Total	$	145,153	$	(18,150)	$	127,003	$	145,153	$	(10,874)	$	134,279

_________________

(1)

In June 2018, the Company acquired the rights to license PANCREAZE in the U.S. and Canada, as described further in Note 13. The rights are being amortized over their estimated useful life of 10 years using the straight-line method.

(2)

In September 2014, the Company acquired certain patents relating to Qsymia from Janssen Pharmaceuticals, approximately $3.1 million of which was recorded as an intangible asset. The patents are being amortized over their estimated useful life of 5.5 years using the straight-line method.

Other non-current assets primarily consist of real estate deposits. Amortization of intangible assets was $3.6 million and $1.3 million for the three months ended June 30, 2019 and 2018, respectively, and $7.3 million and $1.4 million for the six months ended June 30, 2019 and 2018, respectively. Future expected amortization expenses for intangible assets as of June 30, 2019 are as follows (in thousands):


2019 (rest of year)	$	7,276
2020		14,280
2021		14,190
2022		14,189
2023		14,190
Thereafter		62,670
Total	$	126,795

Accrued And Other Liabilities

6 Months Ended

Jun. 30, 2019

ACCRUED AND OTHER LIABILITIES

ACCRUED AND OTHER LIABILITIES

9. ACCRUED AND OTHER LIABILITIES

Accrued and other liabilities consist of the following (in thousands):


	Balance as of
	June 30,		December 31,
	2019		2018
Reserve for product returns (see Note 2)	$	15,150	$	14,878
Product-related accruals (see Note 2)		7,360		8,272
Accrued manufacturing costs		5,268		4,313
Accrued interest on debt (see Note 14)		638		—
Accrued employee compensation and benefits		2,135		2,591
Other accrued liabilities		3,833		2,990
Total	$	34,384	$	33,044

The amounts included in other accrued liabilities consist of obligations primarily related to sales, marketing, research, clinical development, corporate activities, the STENDRA license and royalties.

Leases

6 Months Ended

Jun. 30, 2019

Lessee Disclosure [Abstract]

Lease Disclosure

12. LEASES

The Company adopted Accounting Standards Update 2016-02, Leases (Topic 842) on January 1, 2019 using the modified retrospective transition method, and as a result did not adjust comparative periods. The Company has a large operating lease for its corporate headquarters and several smaller leases, including financing leases for its automobile fleet and copiers. At the time of adoption, the Company recorded the following amounts (in thousands):


	Right-of-Use Asset		Current Portion of Lease Liability		Lease Liability, Net of Current Portion		Current Portion of Deferred Rent		Deferred Rent, Net of Current Portion		Accumulated Deficit
Operating leases	$	1,201	$	512	$	1,017	$	(94)	$	(234)	$	—
Financing leases		329		131		188		—		—		10
Total	$	1,530	$	643	$	1,205	$	(94)	$	(234)	$	10

The Company’s leases have remaining lease terms of from less than 1 year up to 2.3 years, some of which include options to extend the leases for up to 2 years.

The components of lease expense were as follows (in thousands):


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2019		2019
Operating lease cost	$	130	$	261

Finance lease cost:
Amortization of right-of-use assets	$	51	$	104
Interest on lease liabilities		2		5
Total finance lease cost	$	53	$	109

Supplemental balance sheet information related to leases was as follows:


	Balance as of
	June 30,
	2019
Right-of-use assets:
Operating leases	$	996
Financing leases		327
Total right-of-use assets	$	1,323

Current portion of lease liability:
Operating leases	$	543
Financing leases		167
Total current portion of lease liability	$	710

Lease liability, net of current portion
Operating leases	$	738
Financing leases		156
Total lease liability, net of current portion	$	894

The weighted average remaining lease term as of June 30, 2019 was 2.2 years for operating leases and 1.9 years for financing leases. The weighted average discount rate as of June 30, 2019 was 7.8% for operating leases and 2.8% for financing leases.

Future payments of lease liabilities are as follows:


	Operating Leases		Finance Leases
2019 (rest of year)	$	310	$	92
2020		610		172
2021		482		72
Total lease payments		1,402		336
Less imputed interest		(121)		(13)
Total	$	1,281	$	323

License, Commercialization And Supply Agreements	6 Months Ended
License, Commercialization And Supply Agreements	Jun. 30, 2019
LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS
LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS	13. LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS MTPC In January 2001, the Company entered into an exclusive development, license and clinical trial and commercial supply agreement with Tanabe Seiyaku Co., Ltd., now Mitsubishi Tanabe Pharma Corporation (“MTPC”), for the development and commercialization of avanafil. Under the terms of the agreement, MTPC agreed to grant an exclusive license to the Company for products containing avanafil outside of Japan, North Korea, South Korea, China, Taiwan, Singapore, Indonesia, Malaysia, Thailand, Vietnam and the Philippines. The Company agreed to grant MTPC an exclusive, royalty free license within those countries for oral products that we develop containing avanafil. The MTPC agreement contains a number of milestone payments to be made by us based on various triggering events. The term of the MTPC agreement is based on a country by country and on a product by product basis. In August 2012, the Company entered into an amendment to the agreement with MTPC that permitted the Company to manufacture the API and tablets for STENDRA/SPEDRA by itself or through third parties. In 2015, the Company transferred the manufacturing of the API and tablets for STENDRA/SPEDRA to Sanofi. The Company maintains royalty obligations to MTPC which have been passed through to our commercialization partners. Menarini In July 2013, the Company entered into a license and commercialization agreement (the “Menarini License Agreement”) and a supply agreement (the “Menarini Supply Agreement”) with the Menarini Group through its subsidiary Berlin Chemie AG (“Menarini”). Under the terms of the Menarini License Agreement, Menarini received an exclusive license to commercialize and promote SPEDRA for the treatment of ED in over 40 countries, including the EU Member States, plus Australia and New Zealand. Additionally, the Company transferred to Menarini ownership of the marketing authorization for SPEDRA in the EU for the treatment of ED, which was granted by the EC in June 2013. Under the Menarini License Agreement, the Company has and is entitled to receive milestone payments based on certain net sales targets, plus royalties on SPEDRA sales. Under the terms of the Menarini Supply Agreement, the Company supplied Menarini with SPEDRA drug product until December 31, 2018. Menarini also has the right to manufacture SPEDRA independently, provided that it continues to satisfy certain minimum purchase obligations to the Company. Following the expiration of the Menarini Supply Agreement, Menarini would be responsible for its own supply of SPEDRA. Either party may terminate the Menarini Supply Agreement for the other party’s uncured material breach or bankruptcy, or upon the termination of the Menarini License Agreement. In May 2019, the Company entered into Amendment No. 1 to the License and Commercialization Agreement and Commercial Supply Agreement with Menarini effective as of January 1, 2019, pursuant to which certain amendments were made to the Menarini License Agreement and the Menarini Supply Agreement, which include: (i) under the Menarini License Agreement, Menarini’s exclusive license to commercialize and promote the Company’s drug avanafil for the treatment of erectile dysfunction will be limited to over 40 European countries and will no longer include Australia and New Zealand; (ii) under the Menarini License Agreement, the timing requirements of the product launches by Menarini have been adjusted; (iii) under the Menarini License Agreement, the milestone payments have been adjusted to reflect the removal of Australia and New Zealand and will continue to be non-refundable and non-creditable, with one exception added for certain costs and expenses incurred by Menarini for development work related to an avanafil development opportunity in the Menarini territory (“Menarini Development”); (iv) under the Menarini License Agreement, the royalties on avanafil sales payable by Menarini to the Company will be adjusted to allow Menarini to recoup certain Menarini Development costs and expenses but only as to sales of the Menarini Development product unless the Menarini Development product is commercialized by the Company or its sublicensees outside the Menarini territory; (v) under the Menarini Supply Agreement, the minimum purchase obligations for Menarini will be modified and extended, including the ability of Menarini to satisfy its minimum purchase obligations with the purchase of avanafil active pharmaceutical ingredient (“API”) and the addition of minimum purchase obligations for the calendar years for the extended term; and (vi) under the Menarini Supply Agreement, the term will be extended to December 31, 2023, unless otherwise agreed by the parties in writing. The Company and Menarini intend to enter into standalone agreements relating to Australia and New Zealand, including a license with royalties and milestone payments and a supply agreement. Sanofi In December 2013, the Company entered into a license and commercialization agreement (the “Sanofi License Agreement”) with Sanofi. Under the terms of the Sanofi License Agreement, Sanofi received an exclusive license to commercialize and promote avanafil for therapeutic use in humans in Africa, the Middle East—Turkey and Commonwealth of Independent States, including Russia (the “Sanofi Territory”). On March 23, 2017, the Company and Sanofi entered into the Termination, Rights Reversion and Transition Services Agreement (the “Transition Agreement”) effective February 28, 2017. Under the Transition Agreement, effective upon the thirtieth (30th) day following February 28, 2017, the Sanofi License Agreement terminated for all countries in the Sanofi Territory. In addition, under the Transition Agreement, Sanofi provides the Company with certain transition services in support of ongoing regulatory approval efforts while the Company seeks to obtain a new commercial partner or partners for the Sanofi Territory. The Company pays certain transition service fees to Sanofi as part of the Transition Agreement. In July 2013, the Company entered into a Commercial Supply Agreement with Sanofi Chimie to manufacture and supply the API for avanafil on an exclusive basis in the United States and other territories and on a semi-exclusive basis in Europe, including the EU Member States, Latin America and other territories. In December 2018, the Company entered into an amendment to the Commercial Supply Agreement with Sanofi Chimie, pursuant to which certain amendments were made to the Commercial Supply Agreement, which include: (i) beginning January 1, 2019, Sanofi Chimie will manufacture and supply API for avanafil on an exclusive basis in all countries where the Company has the right to sell avanafil; (ii) beginning January 1, 2019, the yearly minimum quantities of API that the Company must purchase from Sanofi Chimie will be adjusted, as well as adjustments to the associated pricing and payment terms; and (iii) with the initial five year term of the Commercial Supply Agreement expiring on December 31, 2018, the Company and Sanofi Chimie have agreed to extend the term of the Commercial Supply Agreement until December 31, 2023 unless either party makes a timely election to terminate the agreement and that thereafter the Commercial Supply Agreement will auto-renew for successive one year terms unless either party makes a timely election not to renew. In November 2013, the Company entered into a Manufacturing and Supply Agreement with Sanofi Winthrop Industrie to manufacture and supply the avanafil tablets on an exclusive basis in the United States and other territories and on a semi exclusive basis in Europe, including the EU Member States, Latin America and other territories. The Company has minimum annual purchase commitments under these agreements for at least the initial five-year term. In May 2019, the Company entered into Amendment N°1 to the Manufacturing and Supply Agreement with Sanofi Winthrop Industrie effective as of March 18, 2019, pursuant to which certain amendments were made to the Manufacturing and Supply Agreement, which include: (i) Sanofi Winthrop Industrie will manufacture and supply the tablets for the Company’s drug avanafil on an exclusive basis in all countries where the Company or its sublicensees and/or Menarini have the right to sell avanafil; (ii) the yearly minimum quantities of tablets that the Company must purchase from Sanofi Winthrop Industrie and the price of such tablets will be adjusted; and (iii) with the initial term of the Manufacturing and Supply Agreement expiring on January 16, 2021, the Company and Sanofi Winthrop Industrie have agreed to extend the term of the Manufacturing and Supply Agreement until December 31, 2023 unless either party makes a timely election to terminate the agreement and that thereafter the Manufacturing and Supply Agreement will auto-renew for successive one year terms unless either party makes a timely election not to renew. Metuchen In September 2016, the Company entered into a license and commercialization agreement (the “Metuchen License Agreement”) and a commercial supply agreement (the “Metuchen Supply Agreement”) with Metuchen Pharmaceuticals LLC (“Metuchen”). Under the terms of the Metuchen License Agreement, Metuchen received an exclusive license to develop, commercialize and promote STENDRA in the United States, Canada, South America and India (the “Metuchen Territory”) effective October 1, 2016. The Company and Metuchen have agreed not to develop, commercialize, or in-license any other product that operates as a PDE-5 inhibitor in the Metuchen Territory for a limited time period, subject to certain exceptions. The Metuchen License Agreement will terminate upon the expiration of the last-to-expire payment obligations under the Metuchen License Agreement; upon expiration of the term of the Metuchen License Agreement, the exclusive license granted under the Metuchen License Agreement shall become fully paid-up, royalty-free, perpetual and irrevocable as to the Company but not certain trademark royalties due to MTPC. Metuchen will obtain STENDRA exclusively from the Company for a mutually agreed term pursuant to the Metuchen Supply Agreement. Metuchen may elect to transfer the control of the supply chain for STENDRA for the Metuchen Territory to itself or its designee by assigning to Metuchen the Company’s agreements with the contract manufacturer. For 2016 and each subsequent calendar year during the term of the Metuchen Supply Agreement, if Metuchen fails to purchase an agreed minimum purchase amount of STENDRA from the Company, it will reimburse the Company for the shortfall as it relates to the Company’s out of pocket costs to acquire the API needed to manufacture the agreed upon minimum purchase amount of STENDRA. Upon the termination of the Metuchen Supply Agreement (other than by Metuchen for the Company’s uncured material breach or upon completion of the transfer of the control of the supply chain), Metuchen’s agreed minimum purchase amount of STENDRA from the Company shall accelerate for the entire then current initial term or renewal term, as applicable. The initial term under the Metuchen Supply Agreement will be for a period of five years, with automatic renewal for successive two-year periods unless either party provides a termination notice to the other party at least two years in advance of the expiration of the then current term. Alvogen In September 2017, the Company entered into a license and commercialization agreement (the “Alvogen License Agreement”) and a commercial supply agreement (the “Alvogen Supply Agreement”) with Alvogen Malta Operations (ROW) Ltd (“Alvogen”). Under the terms of the Alvogen License Agreement, Alvogen will be solely responsible for obtaining and maintaining regulatory approvals for all sales and marketing activities for Qsymia in South Korea. The Company received an upfront payment of $2.5 million in September 2017, which was recorded in license and milestone revenue in the third quarter of 2017, and is eligible to receive additional payments upon Alvogen achieving marketing authorization, commercial launch and reaching a sales milestone. Additionally, the Company will receive a royalty on Alvogen’s Qsymia net sales in South Korea. Under the Alvogen Supply Agreement, the Company will supply product to Alvogen on an exclusive basis. PANCREAZE In June 2018, the Company closed on an Asset Purchase Agreement (the “PANCREAZE Purchase Agreement”) with Janssen Pharmaceuticals, Inc. (“Janssen”) pursuant to which the Company acquired the rights to PANCREAZE and PANCREASE MT in the U.S. and Canada and certain existing inventory for a purchase price of $135.0 million in cash. The Company also acquired all of the outstanding shares of Willow Biopharma Inc. (“Willow”). Willow had no significant assets at the time of acquisition. The Company issued fully-exercisable warrants to the former owners of Willow, including John Amos, M. Scott Oehrlein and Kenneth Suh, the Company’s current Chief Executive Officer, Chief Operations Officer and President, respectively, for the purchase of 357,000 shares of the Company’s common stock at an exercise price of $3.70 per share and agreed to assume certain of Willow’s liabilities. The amounts paid to the former owners were accounted for as a fee for the acquisition of PANCREAZE. As all the PANCREAZE assets acquired were a part of one product line, the PANCREAZE Purchase Agreement was accounted for as an asset acquisition, with an intangible asset of $141.9 million for the PANCREAZE license recorded on the consolidated balance sheet, which was comprised of the purchase price of $135.0 million, the fair value of the warrants issued of $0.8 million, the value of liabilities assumed of $0.4 million, the value of the Willow liabilities assumed of $1.5 million and accruals for estimated destruction of future unsalable inventory of $6.3 million, less the net value of PANCREAZE inventory acquired of $2.1 million. The fair value of the warrants issued was recorded in additional paid-in capital and was estimated using the Black-Scholes option pricing model, using a term of 7.0 years, an estimated volatility of 61.6%, a risk-free interest rate of 2.91% and an expected dividend yield of 0%. The intangible asset is being amortized over an expected useful life of 10 years, which corresponds with the expiration of certain significant patent rights related to PANCREAZE. In connection with the PANCREAZE Purchase Agreement, the Company and Janssen also entered into transition services agreements pursuant to which Janssen and a Canadian affiliate of Janssen will provide certain transition services to the Company in the U.S. and Canada as the Company transitions to full control over the PANCREAZE supply chain. The Company and Johnson & Johnson Health Care Systems Inc., a New Jersey corporation and an affiliate of Janssen, also entered into a Long-Term Collaboration Agreement pursuant to which they will cooperate in the reporting and certification of pricing and sales data and the payment of rebates and discounts under certain governmental programs. In conjunction with the PANCREAZE Purchase Agreement, Janssen assigned to the Company the Amended and Restated Know-How License and Supply Agreement (the “Nordmark Supply Agreement”) effective as of November 7, 2017 by and between Nordmark Arzneimittel GmbH & Co. KG (“Nordmark”) and Janssen. In order to extend the term of the Nordmark Supply Agreement and ensure a stable and predictable price of the Product, the Company entered into the First Amendment to the Supply Agreement on June 26, 2019 (the “Amended Nordmark Supply Agreement”). Under the Amended Nordmark Supply Agreement: (i) the Company shall purchase certain minimum order quantities at the applicable supply prices for the calendar years under the Amended Nordmark Supply Agreement; (ii) in exchange for Nordmark’s obligations under the Amended Nordmark Supply Agreement, the Company shall pay an annual fee to Nordmark; (iii) Nordmark and the Company have agreed to undertake joint efforts to develop new formulations of PANCREAZE; (iv) the term of the Amended Nordmark Supply Agreement begins on June 26, 2019 and will continue through December 31, 2029, unless earlier terminated and may be renewed for additional five year periods unless earlier terminated; and (v) Nordmark shall have the option to terminate the Amended Nordmark Supply Agreement upon certain circumstances related to the launch date in the United States if the Company assigns any or all of its rights under the Amended Nordmark Supply Agreement to certain parties and/or enters into a transaction or series of transactions resulting in a Change of Control, as defined in the Amended Nordmark Supply Agreement.

Long-Term Debt and Commitments

6 Months Ended

Jun. 30, 2019

LONG-TERM DEBT AND COMMITMENTS

LONG-TERM DEBT AND COMMITMENTS

14. LONG-TERM DEBT AND COMMITMENTS

The Company’s indebtedness consists of the following (in thousands):


	Balance as of
	June 30,		December 31,
	2019		2018
Convertible senior notes due 2020	$	181,426	$	181,426
Unamortized discount and debt issuance costs		3,958		6,358
Convertible senior notes due 2020, net		185,384		187,784

Senior secured notes due 2024		110,000		110,000
Unamortized premium and debt issuance costs, net		(2,993)		(3,338)
Senior secured notes due 2024, net		107,007		106,662

Total debt		292,391		294,446
Less current portion		185,384		—
Total long-term debt	$	107,007	$	294,446

Convertible Senior Notes Due 2020

In May 2013, the Company closed offerings of $250.0 million in 4.5% Convertible Senior Notes due May 2020 (the “Convertible Notes”). The Convertible Notes are governed by an indenture, dated May 2013 between the Company and Deutsche Bank National Trust Company, as trustee. Total net proceeds from the Convertible Notes were approximately $241.8 million. The Convertible Notes are convertible at a conversion rate of $148.58 per share at the option of the holders under certain conditions at any time prior to the close of business on the business day immediately preceding November 1, 2019. On or after November 1, 2019, holders may convert all or any portion of their Convertible Notes at any time at their option at the conversion rate then in effect, regardless of these conditions. Subject to certain limitations, the Company will settle conversions of the Convertible Notes by paying or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of our common stock, at the Company’s election. Interest payments are made quarterly. In June 2018, the Company repurchased $60.0 million of face value of the Convertible Notes for $51.0 million in cash plus accrued but unpaid interest using funds received from the issuance of the Company’s Senior Secured Notes Due 2024. The gain was accounted for as a debt modification with the gain applied to the modified debt. In October 2018, the Company repurchased $8.6 million of face value of the Convertible Notes for $7.1 million in cash plus accrued but unpaid interest. The gain on this repurchase of $1.4 million was accounted for as an extinguishment of debt and recorded on the statement of operations as a gain on extinguishment of debt.

Senior Secured Notes Due 2024

In June 2018, the Company entered into an indenture (the “Indenture”) with U.S. Bank National Association as trustee and collateral agent regarding the purchase agreement entered into with affiliates of Athyrium Capital Management (collectively, the “Purchasers”) for the issuance and sale of (i) $110.0 million of 10.375% senior secured notes due 2024 (the “2024 Notes”), (ii) up to an additional $10.0 million of 10.375% senior secured notes due 2024 to be issued subsequently at the Company’s option within 12 months of the issue date of the 2024 Notes, subject to certain conditions, and (iii) a warrant for 330,000 shares issued concurrently with the issuance of the 2024 Notes. The 2024 Notes were issued at a purchase price equal to 99% of the principal amount and contain customary representations, warranties, covenants, conditions and indemnities.

The Company used the net proceeds from the issuance of the 2024 Notes to pay (i) certain fees, costs and expenses relating to the issuance and sale of the 2024 Notes, (ii) to finance a portion of the acquisition of PANCREAZE and (iii) to repurchase $60.0 million of the Company’s outstanding Convertible Notes from the Purchasers or their affiliates for a purchase price of $51.0 million (plus accrued but unpaid interest to the repurchase date). The fair value of the warrant issued was estimated using the Black-Scholes option pricing model, using a term of 6.0 years, an estimated volatility of 62.7%, a risk-free interest rate of 2.83% and an expected dividend yield of 0%. The Indenture has an effective interest rate of 11.3% and includes customary covenants and events of default, including covenants that, among other things, restrict the incurrence of future indebtedness, the granting of liens, the making of investments, distributions or dividends, and the Company’s ability to merge, consolidate or sell assets, in each case subject to certain exceptions. In addition, the Indenture includes certain financial maintenance covenants related to minimum cash balances and minimum quarterly net revenues related to PANCREAZE.

As of June 30, 2019, the Company was not in compliance with a covenant in the indenture governing its 2024 Notes related to PANCREAZE net revenues. The Company subsequently received a waiver from the consenting noteholders with respect to any potential event of default or default that may have resulted from such covenant non-compliance. In connection with the waiver, the Company agreed to the noteholder conditions, including transferring $60.0 million from the existing 2024 Notes trustee controlled account into a new controlled account that can only be accessed upon prior written consent of the 2024 Notes trustee at the direction of the noteholders. If the Company does not satisfy the noteholder conditions, the consenting noteholders may revoke the waiver, which could result in an event of default.

Future estimated payments, including interest, on all of the Company’s indebtedness as of June 30, 2019 are as follows (in thousands):


2019 (rest of year)	$	9,788
2020		197,374
2021		36,131
2022		41,299
2023		37,789
Thereafter		17,611
	$	339,992

Cardiovascular Outcomes Trial

As a condition of FDA granting approval to commercialize Qsymia in the U.S., the Company agreed to complete certain post-marketing requirements. One requirement was to perform a cardiovascular outcomes trial (“CVOT”) on Qsymia. The cost of a CVOT is estimated to be between $180 million and $220 million incurred over a period of approximately five years. The Company is in dialogue with FDA to determine a pathway to provide FDA with information to support the safety of Qsymia in a more cost-effective manner. To date, the Company has not incurred expenses related to the CVOT.

Net Loss Per Share	6 Months Ended
Net Loss Per Share	Jun. 30, 2019
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE	15. NET LOSS PER SHARE The Company computes basic net loss per share applicable to common stockholders based on the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is based on the weighted average number of common and common equivalent shares, which represent shares that may be issued in the future upon the exercise of outstanding stock options or upon a net share settlement of the Company’s Convertible Notes. Common share equivalents are excluded from the computation in periods in which they have an anti-dilutive effect. Stock options for which the price exceeds the average market price over the period have an anti-dilutive effect on net income per share and, accordingly, are excluded from the calculation. The triggering conversion conditions that allow holders of the Convertible Notes to convert have not been met. If such conditions are met and the note holders opt to convert, the Company may choose to pay in cash, common stock, or a combination thereof; however, if this occurs, the Company has the intent and ability to net share settle this debt security; thus the Company uses the treasury stock method for earnings per share purposes. Due to the effect of the capped call instrument purchased in relation to the Convertible Notes, there would be no net shares issued until the market value of the Company’s stock exceeds $200 per share, and thus no impact on diluted net income per share. Further, when there is a net loss, potentially dilutive common equivalent shares are not included in the calculation of net loss per share since their inclusion would be anti-dilutive. As the Company recognized a net loss for each of the three- and six-month periods ended June 30, 2019 and 2018, all potential common equivalent shares were excluded for these periods as they were anti-dilutive. Awards and options which were not included in the computation of diluted net loss per share because the effect would be anti-dilutive were 2,900,000 and 1,490,000, respectively, for the three months ended June 30, 2019 and 2018 and 2,844,000 and 1,926,000, respectively, for the six months ended June 30, 2019 and 2018.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2019
INCOME TAXES
INCOME TAXES	16. INCOME TAXES For the three and six months ended June 30, 2019, the Company recorded a provision for income taxes of $8,000 and $0, respectively. For the three and six months ended June 30, 2018, the Company recorded a provision for income taxes of $4,000 and $16,000, respectively. The provision for income taxes for each of the periods was primarily comprised of state taxes during the period. The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on the Company’s ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. The Company weighed both positive and negative evidence and determined that there is a continued need for a full valuation allowance on its deferred tax assets in the United States as of June 30, 2019. Should the Company determine that it would be able to realize its remaining deferred tax assets in the foreseeable future, an adjustment to its remaining deferred tax assets would cause a material increase to income in the period such determination is made. As of June 30, 2019, the Company’s unrecognized tax benefits were related to federal and California research and development credits which result in an unrecognized tax benefit balance of $98,000. The Company does not expect to have any other significant changes to unrecognized tax benefits through the end of the fiscal year. Because of the Company’s history of tax losses, certain tax years remain open to tax audit. The Company’s policy is to recognize interest and penalties related to uncertain tax positions (if any) as a component of the income tax provision. On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. Among other changes is an interest expense deduction limitation effective January 1, 2018. For the periods ending June 30, 2019 and 2018, the Company estimated $8.3 million and $7.0 million, respectively, of non-deductible accrued interest expense in the forecasted taxable income calculation. On January 1, 2019, the Company adopted Accounting Standards Update 2016-02, Leases (Topic 842). See Note 12. The Company has evaluated the income tax effect from the adoption of this standard and has determined that there is no material impact to the tax provision. The Tax Cuts and Jobs Act also establishes new tax provisions including, but not limited to, (1) creating a new provision designed to tax global intangible low-tax income (“GILTI”); (2) generally eliminating U.S. federal taxes on dividends from foreign subsidiaries; (3) eliminating the corporate alternative minimum tax; (4) creating the base erosion anti-abuse tax; (5) establishing a deduction for foreign derived intangible income; (6) repealing domestic production activity deduction; and (7) establishing new limitations on deductible interest expense and certain executive compensation. The Tax Cuts and Jobs Act has not resulted in a significant impact on the Company’s financial statements. For the periods ending June 30, 2019 and 2018, the Company estimated $500 and $0, respectively, of GILTI inclusion in the taxable income calculation. Due to the Company's limited foreign activity at this time, this did not have a material impact to the tax provision.

Business And Significant Policies (Policies)	6 Months Ended
Business And Significant Policies (Policies)	Jun. 30, 2019
BASIS OF PRESENTATION
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. Management has evaluated all events and transactions that occurred after June 30, 2019 through the date these unaudited condensed consolidated financial statements were filed. There were no events or transactions during this period that require recognition or disclosure in these unaudited condensed consolidated financial statements. The condensed consolidated balance sheet data as of December 31, 2018 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 as filed on February 26, 2019 with the Securities and Exchange Commission (“SEC”). Certain amounts have been reclassified to conform to current year presentation. The unaudited condensed consolidated financial statements include the accounts of VIVUS, Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of these unaudited condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including critical accounting policies or estimates related to available-for-sale securities, debt instruments, research and development expenses, income taxes, inventories, revenues, contingencies and litigation and share-based compensation. The Company bases its estimates on historical experience, information received from third parties and on various market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ significantly from those estimates under different assumptions or conditions.
Inventories	Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first in, first out method for all inventories, which are valued using a weighted-average cost method calculated for each production batch. The Company periodically evaluates the carrying value of inventory on hand for potential excess amounts over demand using the same lower of cost or net realizable value approach as that used to value the inventory
Revenue Recognition	For all revenue transactions, the Company evaluates its contracts with its customers to determine revenue recognition using the following five-step model: 1)The Company identifies the contract(s) with a customer 2)The Company identifies the performance obligations in the contract 3)The Company determines the transaction price 4)The Company allocates the transaction price to the identified performance obligations 5)The Company recognizes revenue when (or as) it satisfies a performance obligation Product Revenue Product revenue is recognized at the time of shipment at which time the Company has satisfied its performance obligation. Product revenue is recognized net of consideration paid to the Company’s customers, wholesalers and certified pharmacies. Such consideration is for services rendered by the wholesalers and pharmacies in accordance with the wholesalers and certified pharmacy services network agreements, and includes a fixed rate per prescription shipped and monthly program management and data fees. These services are not deemed sufficiently separable from the customers’ purchase of the product; therefore, they are recorded as a reduction of revenue at the time of revenue recognition. Other product revenue allowances include a reserve for estimated product returns, certain prompt pay discounts and allowances offered to the Company’s customers, program rebates and chargebacks. These product revenue allowances are recognized as a reduction of revenue at the date at which the related revenue is recognized. The Company also offers discount programs to patients. Calculating certain of these items involves estimates and judgments based on sales or invoice data, contractual terms, utilization rates, new information regarding changes in these programs’ regulations and guidelines that would impact the amount of the actual rebates or chargebacks. The Company reviews the adequacy of product revenue allowances on a quarterly basis. Amounts accrued for product revenue allowances are adjusted when trends or significant events indicate that adjustment is appropriate and to reflect actual experience. See Note 9 for product reserve balances. Supply Revenue The Company produces STENDRA/SPEDRA through a contract manufacturing partner and then sells it to the Company’s commercialization partners. The Company is the primary responsible party in the commercial supply arrangements and bears significant risk in the fulfillment of the obligations, including risks associated with manufacturing, regulatory compliance and quality assurance, as well as inventory, financial and credit loss. As such, the Company recognizes supply revenue on a gross basis as the principal party in the arrangements. The Company recognizes supply revenue at the time of shipment and, in the unusual case where the product does not meet contractually-specified product dating criteria at the time of shipment to the partner, the Company records a reserve for estimated product returns. There are no such reserves as of June 30, 2019. License and Milestone Revenue License and milestone revenues related to arrangements, usually license and/or supply agreements, entered into by the Company are recognized by following the five-step process outlined above. The allocation and timing of recognition of such revenue will be determined by that process and the amounts recognized and the timing of that recognition may not exactly follow the wording of the agreement as the amount allocated following the accounting analysis of the agreement may differ and the timing of recognition of a significant performance obligation may predate the contractual date. Royalty Revenue The Company relies on data provided by its collaboration partner in determining its contractually-based royalty revenue. Such data includes accounting estimates and reports for various discounts and allowances, including product returns. The Company records royalty revenues based on the best data available and makes any adjustments to such revenues as such information becomes available.
Income Taxes	The Company’s policy is to recognize interest and penalties related to uncertain tax positions (if any) as a component of the income tax provision.
Recent Accounting Pronouncements Adopted	Recent Accounting Pronouncement Adopted In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842), which modifies the accounting by lessees for all leases with a term greater than 12 months. This standard requires lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The Company adopted this standard on January 1, 2019 using the modified retrospective transition method, and as a result did not adjust comparative periods. The Company has one large operating lease for its corporate headquarters and several smaller leases, including financing leases for its automobile fleet and copiers. See Note 12. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update 2016-13, Measurement of Credit Losses on Financial Instruments, which requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model, referred to as the current expected credit loss (CECL) model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument. This standard is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company is evaluating the potential impact of this standard, but does not expect it to have a material impact on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which adds disclosure requirements to Topic 820 for the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This standard is effective for fiscal years beginning after December 31, 2019 and early adoption is permitted. The Company is evaluating the provisions of this guidance, but currently does not expect it to have a material impact on its consolidated financial statements.
Cash, Cash Equivalents and Available-for-Sale Securities	As of June 30, 2019, the Company’s available-for-sale securities had original contractual maturities up to 57 months. However, the Company may sell these securities prior to their stated maturities in response to changes in the availability of and the yield on alternative investments as well as liquidity requirements. As these securities are readily marketable and are viewed by the Company as available to support current operations, securities with maturities beyond 12 months are classified as current assets. Due to their short-term maturities, the Company believes that the fair value of its bank deposits, accounts payable and accrued expenses approximate their carrying value.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References

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+ Details

Revenue (Tables)

6 Months Ended

Jun. 30, 2019

REVENUE INFORMATION

Schedule of net product revenue by geographic region

Revenue by Source and Geography

Revenue disaggregated by revenue source and by geographic region was as follows (in thousands):


	Three Months Ended June 30,
	2019							2018
	U.S.		ROW			Total		U.S.		ROW			Total
Qsymia—Net product revenue	$	9,994	$	—		$	9,994	$	11,134	$	—		$	11,134
PANCREAZE - Net product revenue		5,110		—			5,110		2,116		—			2,116
PANCREAZE - Royalty revenue		—		987			987		—		74			74
STENDRA/SPEDRA—Supply revenue		—		1,780			1,780		525		517			1,042
STENDRA/SPEDRA—Royalty revenue		—		519			519		—		594			594
Total revenue	$	15,104	$	3,286	(1)	$	18,390	$	13,775	$	1,185	(2)	$	14,960

	Six Months Ended June 30,
	2019							2018
	U.S.		ROW			Total		U.S.		ROW			Total
Qsymia—Net product revenue	$	18,417	$	—		$	18,417	$	20,766	$	—		$	20,766
PANCREAZE - Net product revenue		10,184		—			10,184		2,116		—			2,116
PANCREAZE - Royalty revenue		—		1,557			1,557		—		74			74
STENDRA/SPEDRA—Supply revenue		—		3,384			3,384		1,071		1,654			2,725
STENDRA/SPEDRA—Royalty revenue		—		994			994		—		1,179			1,179
Total revenue	$	28,601	$	5,935	(3)	$	34,536	$	23,953	$	2,907	(4)	$	26,860

(1)

$2.3 million of which was attributable to Germany and $1.0 million of which was attributable to Canada.

(2)

$1.1 million of which was attributable to Germany.

(3)

$4.3 million of which was attributable to Germany and $1.6 million of which was attributable to Canada.

(4)

$2.8 million of which was attributable to Germany.

Schedule of Revenue And Cost Of Goods Sold By Source

Revenue and cost of goods sold by source was as follows (in thousands):


	Three Months Ended June 30,
	2019								2018
	Qsymia		PANCREAZE		STENDRA/ SPEDRA		Total		Qsymia		PANCREAZE		STENDRA/ SPEDRA		Total
Net product revenue	$	9,994	$	5,110	$	—	$	15,104	$	11,134	$	2,116	$	—	$	13,250
Supply revenue		—		—		1,780		1,780		—		—		1,042		1,042
Royalty revenue		—		987		519		1,506		—		74		594		668
Total revenue	$	9,994	$	6,097	$	2,299	$	18,390	$	11,134	$	2,190	$	1,636	$	14,960

Cost of goods sold (excluding amortization)	$	942	$	1,770	$	1,665	$	4,377	$	1,652	$	567	$	1,067	$	3,286
Amortization of intangible assets	$	91	$	3,547	$	—	$	3,638	$	90		1,183	$	—	$	1,273

	Six Months Ended June 30,
	2019								2018
	Qsymia		PANCREAZE		STENDRA/ SPEDRA		Total		Qsymia		PANCREAZE		STENDRA/ SPEDRA		Total
Net product revenue	$	18,417	$	10,184	$	—	$	28,601	$	20,766	$	2,116	$	—	$	22,882
Supply revenue		—		—		3,384		3,384		—		—		2,725		2,725
Royalty revenue		—		1,557		994		2,551		—		74		1,179		1,253
Total revenue	$	18,417	$	11,741	$	4,378	$	34,536	$	20,766	$	2,190	$	3,904	$	26,860

Cost of goods sold (excluding amortization)	$	2,324	$	3,231	$	3,130	$	8,685	$	2,695	$	568	$	2,653	$	5,916
Amortization of intangible assets	$	182	$	7,094	$	—	$	7,276	$	181		1,183	$	—	$	1,364

Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2019

SHARE-BASED COMPENSATION.

Schedule of share-based compensation expense

Total share-based compensation expense for all of the Company’s share-based awards was as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Cost of goods sold	$	13	$	18	$	27	$	30
Selling and marketing		70		87		140		174
General and administrative		335		868		664		1,613
Research and development		49		76		104		157
Total share-based compensation expense	$	467	$	1,049	$	935	$	1,974

Share-based compensation expense capitalized as part of the cost of inventory	$	14	$	-	$	14	$	1

Cash, Cash Equivalents, And Available-For-Sale Securities (Tables)

6 Months Ended

Jun. 30, 2019

CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES

Schedule of fair value and amortized cost of cash, cash equivalents, and available-for-sale securities by major security type


	As of June 30, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
Cash and cash equivalents and available-for-sale securities	Cost		Gains		Losses		Fair Value
Cash and money market funds	$	25,022	$	—	$	—	$	25,022
U.S. Treasury securities		27,862		75		(19)		27,918
Corporate debt securities		41,282		163		(19)		41,426
Total		94,166		238		(38)		94,366
Less amounts classified as cash and cash equivalents		(25,022)		—		—		(25,022)
Total available-for-sale securities	$	69,144	$	238	$	(38)	$	69,344


	As of December 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
Cash and cash equivalents and available-for-sale securities	Cost		Gains		Losses		Fair Value
Cash and money market funds	$	30,411	$	—	$	—	$	30,411
U.S. Treasury securities		42,261		34		(111)		42,184
Corporate debt securities		38,848		9		(203)		38,654
Total		111,520		43		(314)		111,249
Less amounts classified as cash and cash equivalents		(30,411)		—		—		(30,411)
Total available-for-sale securities	$	81,109	$	43	$	(314)	$	80,838

Schedule of Fair Value of Separate Accounts by Major Category of Investment

The following table represents the fair value hierarchy for our cash, cash equivalents and available-for-sale securities by major security type (in thousands):


	As of June 30, 2019
	Level 1		Level 2		Level 3		Total
Cash and money market funds	$	25,022	$	—	$	—	$	25,022
U.S. Treasury securities		27,918		—		—		27,918
Corporate debt securities		—		41,426		—		41,426
Total	$	52,940	$	41,426	$	—	$	94,366


	As of December 31, 2018
	Level 1		Level 2		Level 3		Total
Cash and money market funds	$	30,411	$	—	$	—	$	30,411
U.S. Treasury securities		42,184		—		—		42,184
Corporate debt securities		—		38,654		—		38,654
Total	$	72,595	$	38,654	$	—	$	111,249

Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2019

ACCOUNTS RECEIVABLE

Schedule of accounts receivable

Accounts receivable consist of the following (in thousands):


	Balance as of
	June 30,		December 31,
	2019		2018
Qsymia	$	15,408	$	13,987
PANCREAZE		6,703		10,213
STENDRA/SPEDRA		2,728		1,560
		24,839		25,760
Allowance for cash discounts		(271)		(152)
Net	$	24,568	$	25,608

Inventories (Tables)

6 Months Ended

Jun. 30, 2019

INVENTORIES

Schedule of inventories

Inventories consist of the following (in thousands):


	Balance as of
	June 30,		December 31,
	2019		2018
Raw materials	$	24,089	$	17,813
Work-in-process		323		1,719
Finished goods		5,699		3,600
Inventories, net	$	30,111	$	23,132

Prepaid Expenses And Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2019

OTHER CURRENT ASSETS

Schedule of prepaid expenses and other assets

Prepaid expenses and other current assets consist of the following (in thousands):


	Balance as of
	June 30,		December 31,
	2019		2018
Prepaid sales and marketing expenses	$	1,942	$	1,525
Prepaid insurance		567		1,451
Taxes receivable		2,302		779
Other prepaid expenses and assets		2,159		3,783
Total	$	6,970	$	7,538

Intangible and Other Noncurrent Assets (Tables)

6 Months Ended

Jun. 30, 2019

NON-CURRENT ASSETS

Schedule of Finite-Lived Intangible Assets And Other Noncurrent Assets

Intangible and other non-current assets consist of the following (in thousands):


	June 30, 2019						December 31, 2018
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
PANCREAZE license (1)	$	141,895	$	(15,372)	$	126,523	$	141,895	$	(8,277)	$	133,618
Janssen patents (2)		3,050		(2,778)		272		3,050		(2,597)		453
Other non-current assets		208		—		208		208		—		208
Total	$	145,153	$	(18,150)	$	127,003	$	145,153	$	(10,874)	$	134,279

_________________

(1)

(2)

Future Expected Amortization Expenses For Intangible Assets

Future expected amortization expenses for intangible assets as of June 30, 2019 are as follows (in thousands):


2019 (rest of year)	$	7,276
2020		14,280
2021		14,190
2022		14,189
2023		14,190
Thereafter		62,670
Total	$	126,795

Accrued And Other Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

ACCRUED AND OTHER LIABILITIES

Schedule of accrued and other liabilities

Accrued and other liabilities consist of the following (in thousands):


	Balance as of
	June 30,		December 31,
	2019		2018
Reserve for product returns (see Note 2)	$	15,150	$	14,878
Product-related accruals (see Note 2)		7,360		8,272
Accrued manufacturing costs		5,268		4,313
Accrued interest on debt (see Note 14)		638		—
Accrued employee compensation and benefits		2,135		2,591
Other accrued liabilities		3,833		2,990
Total	$	34,384	$	33,044

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Components of Lease Cost

The components of lease expense were as follows (in thousands):


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2019		2019
Operating lease cost	$	130	$	261

Finance lease cost:
Amortization of right-of-use assets	$	51	$	104
Interest on lease liabilities		2		5
Total finance lease cost	$	53	$	109

Supplemental balance sheet information related to leases was as follows:


	Balance as of
	June 30,
	2019
Right-of-use assets:
Operating leases	$	996
Financing leases		327
Total right-of-use assets	$	1,323

Current portion of lease liability:
Operating leases	$	543
Financing leases		167
Total current portion of lease liability	$	710

Lease liability, net of current portion
Operating leases	$	738
Financing leases		156
Total lease liability, net of current portion	$	894

Lessee, Operating Leases And Finance Leases Liabilities Maturities

Future payments of lease liabilities are as follows:


	Operating Leases		Finance Leases
2019 (rest of year)	$	310	$	92
2020		610		172
2021		482		72
Total lease payments		1,402		336
Less imputed interest		(121)		(13)
Total	$	1,281	$	323

Accounting Standards Update 2016-02 [Member]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

At the time of adoption, the Company recorded the following amounts (in thousands):


	Right-of-Use Asset		Current Portion of Lease Liability		Lease Liability, Net of Current Portion		Current Portion of Deferred Rent		Deferred Rent, Net of Current Portion		Accumulated Deficit
Operating leases	$	1,201	$	512	$	1,017	$	(94)	$	(234)	$	—
Financing leases		329		131		188		—		—		10
Total	$	1,530	$	643	$	1,205	$	(94)	$	(234)	$	10

Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2019

LONG-TERM DEBT AND COMMITMENTS

Schedule of debt

The Company’s indebtedness consists of the following (in thousands):


	Balance as of
	June 30,		December 31,
	2019		2018
Convertible senior notes due 2020	$	181,426	$	181,426
Unamortized discount and debt issuance costs		3,958		6,358
Convertible senior notes due 2020, net		185,384		187,784

Senior secured notes due 2024		110,000		110,000
Unamortized premium and debt issuance costs, net		(2,993)		(3,338)
Senior secured notes due 2024, net		107,007		106,662

Total debt		292,391		294,446
Less current portion		185,384		—
Total long-term debt	$	107,007	$	294,446

Schedule of Maturities of Long-term Debt

Future estimated payments, including interest, on all of the Company’s indebtedness as of June 30, 2019 are as follows (in thousands):


2019 (rest of year)	$	9,788
2020		197,374
2021		36,131
2022		41,299
2023		37,789
Thereafter		17,611
	$	339,992

Business And Significant Accounting Policies, Narratives (Details) $ in Thousands		3 Months Ended
	Sep. 10, 2018 shares	Jun. 30, 2019 USD ($) item	Dec. 31, 2018 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Approved Federal Drug Administration Therapies \| item		3
Number of product candidate in active clinical development \| item		1
Retained Earnings (Accumulated Deficit)		$ (894,389)	$ (880,515)
Cash Cash Equivalents and available for sale securities fair value disclosure		94,400
Long-term Debt		292,391	294,446
one-for-10 reverse stock split of common stock	10
Shares of pre-reserve split common stock issued and outstanding \| shares	10
Shares of post-reserve split common stock issued and outstanding \| shares	1
Convertible Senior Notes Due 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Long-term Debt		185,384	187,784
Long-term Debt, Fair Value		181,426	181,426
Senior Secured Notes Due 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Long-term Debt		107,007	106,662
Long-term Debt, Fair Value		110,000	$ 110,000
New controlled account only accessed by 2024 Notes trustee holders		$ 60,000
Minimum \| Accounting Standards Update 2016-02 [Member]
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Lease Term		12 months

Revenue (Revenue By Geography) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Geographic Information
Total revenue	$ 18,390	$ 14,960	$ 34,536	$ 26,860
Qsymia
Geographic Information
Total revenue	9,994	11,134	18,417	20,766
PANCREAZE
Geographic Information
Total revenue	6,097	2,190	11,741	2,190
STENDRA/SPEDRA
Geographic Information
Total revenue	2,299	1,636	4,378	3,904
U.S.
Geographic Information
Total revenue	15,104	13,775	28,601	23,953
ROW
Geographic Information
Total revenue	3,286	1,185	5,935	2,907
Germany
Geographic Information
Total revenue	2,300	1,100	4,300	2,800
Canada
Geographic Information
Total revenue	1,000		1,600
Net Product Revenue
Geographic Information
Total revenue	15,104	13,250	28,601	22,882
Net Product Revenue \| Qsymia
Geographic Information
Total revenue	9,994	11,134	18,417	20,766
Net Product Revenue \| PANCREAZE
Geographic Information
Total revenue	5,110	2,116	10,184	2,116
Net Product Revenue \| U.S. \| Qsymia
Geographic Information
Total revenue	9,994	11,134	18,417	20,766
Net Product Revenue \| U.S. \| PANCREAZE
Geographic Information
Total revenue	5,110	2,116	10,184	2,116
Royalty Revenue
Geographic Information
Total revenue	1,506	668	2,551	1,253
Royalty Revenue \| PANCREAZE
Geographic Information
Total revenue	987	74	1,557	74
Royalty Revenue \| STENDRA/SPEDRA
Geographic Information
Total revenue	519	594	994	1,179
Royalty Revenue \| ROW \| PANCREAZE
Geographic Information
Total revenue	987	74	1,557	74
Royalty Revenue \| ROW \| STENDRA/SPEDRA
Geographic Information
Total revenue	519	594	994	1,179
Supply Revenue
Geographic Information
Total revenue	1,780	1,042	3,384	2,725
Supply Revenue \| STENDRA/SPEDRA
Geographic Information
Total revenue	1,780	1,042	3,384	2,725
Supply Revenue \| U.S. \| STENDRA/SPEDRA
Geographic Information
Total revenue		525		1,071
Supply Revenue \| ROW \| STENDRA/SPEDRA
Geographic Information
Total revenue	$ 1,780	$ 517	$ 3,384	$ 1,654

Revenue (Revenue and Cost Of Goods Sold By Source) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Geographic Information
Total revenue	$ 18,390	$ 14,960	$ 34,536	$ 26,860
Cost of goods sold (excluding amortization)	4,377	3,286	8,685	5,916
Amortization of Intangible Assets	3,638	1,273	7,276	1,364
Qsymia
Geographic Information
Total revenue	9,994	11,134	18,417	20,766
Cost of goods sold (excluding amortization)	942	1,652	2,324	2,695
Amortization of Intangible Assets	91	90	182	181
PANCREAZE
Geographic Information
Total revenue	6,097	2,190	11,741	2,190
Cost of goods sold (excluding amortization)	1,770	567	3,231	568
Amortization of Intangible Assets	3,547	1,183	7,094	1,183
STENDRA/SPEDRA
Geographic Information
Total revenue	2,299	1,636	4,378	3,904
Cost of goods sold (excluding amortization)	1,665	1,067	3,130	2,653
Net Product Revenue
Geographic Information
Total revenue	15,104	13,250	28,601	22,882
Net Product Revenue \| Qsymia
Geographic Information
Total revenue	9,994	11,134	18,417	20,766
Net Product Revenue \| PANCREAZE
Geographic Information
Total revenue	5,110	2,116	10,184	2,116
Supply Revenue
Geographic Information
Total revenue	1,780	1,042	3,384	2,725
Supply Revenue \| STENDRA/SPEDRA
Geographic Information
Total revenue	1,780	1,042	3,384	2,725
Royalty Revenue
Geographic Information
Total revenue	1,506	668	2,551	1,253
Royalty Revenue \| PANCREAZE
Geographic Information
Total revenue	987	74	1,557	74
Royalty Revenue \| STENDRA/SPEDRA
Geographic Information
Total revenue	$ 519	$ 594	$ 994	$ 1,179

Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Share-Based Compensation (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
SHARE-BASED COMPENSATION
Share-based compensation	$ 467	$ 1,049	$ 935	$ 1,974
Cost of goods sold
SHARE-BASED COMPENSATION
Share-based compensation	13	18	27	30
Selling and Marketing
SHARE-BASED COMPENSATION
Share-based compensation	70	87	140	174
General and Administrative
SHARE-BASED COMPENSATION
Share-based compensation	335	868	664	1,613
Research and development
SHARE-BASED COMPENSATION
Share-based compensation	49	76	104	157
Inventory
SHARE-BASED COMPENSATION
Share-based compensation expense capitalized as part of the cost of inventory	$ 14	$ 1	$ 14	$ 1

Cash, Cash Equivalents, And Available-For-Sale Securities (Fair Value of Cash, Cash Equivalents, and Available-For-Sale Securities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Cash and cash equivalents and available-for-sale securities, Amortized Cost
Cash and Cash Equivalents, at Carrying Value	$ 25,022	$ 30,411	$ 57,181	$ 66,392
Available-for-sale securities including cash and cash equivalents, Amortized Cost Total	94,166	111,520
Less amounts classified as cash equivalents, Amortized Cost	(25,022)	(30,411)	$ (57,181)	$ (66,392)
Available-for-sale Debt Securities, Amortized Cost Basis, Total	69,144	81,109
Available-for-sale securities, Gross Unrealized Gains	238	43
Available-for-sale securities, Gross Unrealized Losses	(38)	(314)
Debt Securities, Available-for-sale, Current	69,344	80,838
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Cash and Cash Equivalents, Fair Value Disclosure	25,022	30,411
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	94,366	111,249
Less amounts classified as cash equivalents, Estimated Fair Value	(25,022)	(30,411)
Debt Securities, Available-for-sale, Current	$ 69,344	80,838
Maximum original contractual maturities of available for sale securities	57 months
U.S. Treasury securities
Cash and cash equivalents and available-for-sale securities, Amortized Cost
Available-for-sale Debt Securities, Amortized Cost Basis, Total	$ 27,862	42,261
Available-for-sale securities, Gross Unrealized Gains	75	34
Available-for-sale securities, Gross Unrealized Losses	(19)	(111)
Debt Securities, Available-for-sale, Current	27,918	42,184
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Debt Securities, Available-for-sale, Current	27,918	42,184
Corporate Debt Securities
Cash and cash equivalents and available-for-sale securities, Amortized Cost
Available-for-sale Debt Securities, Amortized Cost Basis, Total	41,282	38,848
Available-for-sale securities, Gross Unrealized Gains	163	9
Available-for-sale securities, Gross Unrealized Losses	(19)	(203)
Debt Securities, Available-for-sale, Current	41,426	38,654
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Debt Securities, Available-for-sale, Current	41,426	38,654
Cash and money market funds
Cash and cash equivalents and available-for-sale securities, Amortized Cost
Cash and Cash Equivalents, at Carrying Value	25,022	30,411
Less amounts classified as cash equivalents, Amortized Cost	(25,022)	(30,411)
Cash and cash equivalents and available-for-sale securities, Estimated Fair Value
Cash and Cash Equivalents, Fair Value Disclosure	25,022	30,411
Less amounts classified as cash equivalents, Estimated Fair Value	$ (25,022)	$ (30,411)

Cash, Cash Equivalents, And Available-For-Sale Securities (Fair Value Hierarchy for Cash Equivalents and Available-For-Sale Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair value measurements
Cash and Cash Equivalents, Fair Value Disclosure	$ 25,022	$ 30,411
Debt Securities, Available-for-sale, Current	69,344	80,838
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	94,366	111,249
U.S. Treasury securities
Fair value measurements
Debt Securities, Available-for-sale, Current	27,918	42,184
Corporate Debt Securities
Fair value measurements
Debt Securities, Available-for-sale, Current	41,426	38,654
Level 1
Fair value measurements
Cash and Cash Equivalents, Fair Value Disclosure	25,022	30,411
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	52,940	72,595
Level 1 \| U.S. Treasury securities
Fair value measurements
Debt Securities, Available-for-sale, Current	27,918	42,184
Level 2
Fair value measurements
Cash and cash equivalents and available for sale securities, Fair Value Disclosure	41,426	38,654
Level 2 \| Corporate Debt Securities
Fair value measurements
Debt Securities, Available-for-sale, Current	$ 41,426	$ 38,654

Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Accounts Receivable, before Allowance for Credit Loss, Current	$ 24,839	$ 25,760
Accounts receivable, net	24,568	25,608
Qsymia
Accounts Receivable, before Allowance for Credit Loss, Current	15,408	13,987
Qsymia allowance for cash discounts	(271)	(152)
PANCREAZE
Accounts Receivable, before Allowance for Credit Loss, Current	6,703	10,213
STENDRA/SPEDRA
Accounts Receivable, before Allowance for Credit Loss, Current	$ 2,728	$ 1,560

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventory balances
Raw materials	$ 24,089	$ 17,813
Work in process	323	1,719
Finished goods	5,699	3,600
Total	$ 30,111	$ 23,132

Prepaid Expenses And Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
OTHER CURRENT ASSETS
Prepaid sales and marketing expenses	$ 1,942	$ 1,525
Prepaid insurance	567	1,451
Taxes receivable	2,302	779
Other prepaid expenses and assets	2,159	3,783
Total	$ 6,970	$ 7,538

Intangible and Other Non Current Assets (Narratives) (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2018	Sep. 30, 2014	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Accumulated Amortization			$ (18,150)		$ (18,150)		$ (10,874)
Net intangible assets			126,795		126,795
Prepaid Expense Other, Noncurrent			208		208		208
Other Assets, Noncurrent			145,153		145,153		145,153
Other Assets, Miscellaneous, Noncurrent			127,003		127,003		134,279
Amortization of Intangible Assets			3,638	$ 1,273	7,276	$ 1,364
Patents \| Janssen
Finite-Lived Intangible Assets, Gross			3,050		3,050		3,050
Accumulated Amortization			(2,778)		(2,778)		(2,597)
Net intangible assets			272		272		453
License \| PANCREAZE
Finite-Lived Intangible Assets, Gross			141,895		141,895		141,895
Accumulated Amortization			(15,372)		(15,372)		(8,277)
Net intangible assets			$ 126,523		$ 126,523		$ 133,618
Finite-Lived Intangible Asset, Useful Life	10 years
Janssen \| Patents \| Janssen
Finite-Lived Intangible Asset, Useful Life		5 years 6 months
Finite-Lived Patents, Gross		$ 3,100

Intangible and Other Non Current Assets (Intangible Future Expected Amortization Expenses) (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Finite-Lived Intangible Assets, Net [Abstract]
2019 (rest of year)	$ 7,276
2020	14,280
2021	14,190
2022	14,189
2023	14,190
Thereafter	62,670
Net intangible assets	$ 126,795

Accrued And Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ACCRUED AND OTHER LIABILITIES
Reserve for product returns (See Note 2)	$ 15,150	$ 14,878
Product-related accruals (see Note 2)	7,360	8,272
Accrued manufacturing costs	5,268	4,313
Accrued interest on debt (see Note 14)	638
Accrued employee compensation and benefits	2,135	2,591
Other accrued liabilities	3,833	2,990
Total	$ 34,384	$ 33,044

Leases - Schedule of Lease Assets & Liabilities (Details) - USD ($) $ in Thousands		6 Months Ended
	Jan. 01, 2019	Jun. 30, 2019
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	$ 1,201	$ 996
Finance Lease, Right-of-Use Asset	329	327
Right of Use Assets	1,530	1,323
Operating Lease, Liability, Current	512	543
Finance Lease, Liability, Current	131	167
Current portion of lease liability	643	710
Operating Lease, Liability, Noncurrent	1,017	738
Finance Lease, Liability, Noncurrent	188	156
Lease liability, net of current portion	1,205	894
Current Portion of Deferred Rent	(94)
Deferred Rent, Net of Current Portion	(234)
Cumulative effect of accounting change	10	$ 10
Accounting Standards Update 2016-02 [Member]
Lessee, Lease, Description [Line Items]
Cumulative effect of accounting change	10
Building [Member]
Lessee, Lease, Description [Line Items]
Current Portion of Deferred Rent	(94)
Deferred Rent, Net of Current Portion	$ (234)

Lease - Narratives (Details)	Jan. 01, 2019	Jun. 30, 2019
Lessee, Lease, Description [Line Items]
Operating Lease, Weighted Average Remaining Lease Term		2 years 2 months 12 days
Finance Lease, Weighted Average Discount Rate, Percent		2.80%
Finance Lease, Weighted Average Remaining Lease Term		1 year 10 months 24 days
Options to Extend the Operating Leases	2 years
Options to Extend the Finance Lease	2 years
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Operating Lease, Weighted Average Discount Rate, Percent		7.80%
Maximum
Lessee, Lease, Description [Line Items]
Operating Lease, Weighted Average Remaining Lease Term	2 years 3 months 18 days
Finance Lease, Weighted Average Remaining Lease Term	2 years 3 months 18 days
Minimum
Lessee, Lease, Description [Line Items]
Operating Lease, Weighted Average Remaining Lease Term	1 year
Finance Lease, Weighted Average Remaining Lease Term	1 year

Leases - Lease Cost and Lease BS Info (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jan. 01, 2019
Lessee Lease Description [Abstract]
Operating Lease, Cost	$ 130	$ 261
Finance Lease, Right-of-Use Asset, Amortization	51	104
Finance Lease, Interest Expense	2	5
Total Finance Lease Cost	53	109
Operating Lease, Right-of-Use Asset	996	996	$ 1,201
Finance Lease, Right-of-Use Asset	327	327	329
Right of Use Assets	1,323	1,323	1,530
Operating Lease, Liability, Current	543	543	512
Finance Lease, Liability, Current	167	167	131
Current portion of lease liability	710	710	643
Operating Lease, Liability, Noncurrent	738	738	1,017
Finance Lease, Liability, Noncurrent	156	156	188
Lease liability, net of current portion	$ 894	$ 894	$ 1,205

Leases - Future Payment of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2019 (rest of year) Operating Lease	$ 310
2020 (Operating Lease)	610
2021 (Operating Lease)	482
Total lease payments - Operating Lease	1,402
Less imputed interest - Operating Lease	(121)
Operating Lease Liabilities	1,281
Finance Lease, Liability, Payment, Due [Abstract]
2019 (rest of year) Finance Lease	92
2020 (Finance Lease)	172
2021 (Finance Lease)	72
Total lease payments - Finance Lease	336
Less imputed interest - Finance Lease	(13)
Finance Lease Liability	$ 323

License, Commercialization And Supply Agreements (Details) $ / shares in Units, $ in Thousands				1 Months Ended				3 Months Ended			6 Months Ended
	Jun. 26, 2019	Dec. 07, 2018	Oct. 01, 2016	May 31, 2019 country	Jun. 30, 2018 USD ($) $ / shares shares	Nov. 30, 2013	Jul. 31, 2013 country	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($) $ / shares shares	Sep. 30, 2017 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($) $ / shares shares
License, Commercialization, and Development Agreements with Third Parties
Net revenue								$ 18,390	$ 14,960		$ 34,536	$ 26,860
Payments to Acquire Businesses, Gross												135,000
PANCREAZE \| Warrants Issued
License, Commercialization, and Development Agreements with Third Parties
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term					7 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate					61.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate					2.91%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate					0.00%
Janssen \| PANCREAZE
License, Commercialization, and Development Agreements with Third Parties
Payments to Acquire Businesses, Gross					$ 135,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other					400				400			400
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Accruals For Estimated Destruction Of Future Unsalable Inventory					6,300
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory					$ 2,100				$ 2,100			$ 2,100
Willow Biopharma Member \| PANCREAZE
License, Commercialization, and Development Agreements with Third Parties
Class of Warrant or Right, Number of Securities Called by Warrants or Rights \| shares					357,000				357,000			357,000
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares					$ 3.70				$ 3.70			$ 3.70
Finite-Lived License Agreements, Gross					$ 141,900				$ 141,900			$ 141,900
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other					1,500				$ 1,500			$ 1,500
Willow Biopharma Member \| PANCREAZE \| Warrants Issued
License, Commercialization, and Development Agreements with Third Parties
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable					$ 800
License and commercialization agreement \| SPEDRA \| Menarini Group \| Minimum
License, Commercialization, and Development Agreements with Third Parties
Number of European countries covered under the license agreement \| country							40
License and commercialization agreement \| PANCREAZE
License, Commercialization, and Development Agreements with Third Parties
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life					10 years
Amendment No. 1 License and Commercialization and Commercial Supply Agreement Member \| SPEDRA \| Menarini Group \| Minimum
License, Commercialization, and Development Agreements with Third Parties
Number of European countries covered under the license agreement \| country				40
Amendment No. 1 to Manufacturing and Supply Agreement Member \| Avanafil Tablets \| Sanofi Winthrop
License, Commercialization, and Development Agreements with Third Parties
Additional period of auto-renewal				1 year
Amended Nordmark Supply Agreement June 26, 2019 member \| Janssen \| PANCREAZE
License, Commercialization, and Development Agreements with Third Parties
Additional period of auto-renewal	5 years
Supply agreement \| Sanofi Chimie
License, Commercialization, and Development Agreements with Third Parties
Long-term Purchase Commitment, Period		5 years
Additional period of auto-renewal		1 year
Supply agreement \| Avanafil Tablets \| Sanofi Winthrop \| Minimum
License, Commercialization, and Development Agreements with Third Parties
Long-term Purchase Commitment, Period						5 years
Supply agreement \| STENDRA/SPEDRA \| Metuchen
License, Commercialization, and Development Agreements with Third Parties
Long-term Purchase Commitment, Period			5 years
Additional period of auto-renewal			2 years
Supply agreement \| STENDRA/SPEDRA \| Metuchen \| Minimum
License, Commercialization, and Development Agreements with Third Parties
Termination notice of license and supply agreement			2 years
Supply agreement \| License and Milestone Revenue \| Alvogen
License, Commercialization, and Development Agreements with Third Parties
Net revenue										$ 2,500

Long-Term Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Long-term debt
Net carrying value	$ 292,391	$ 294,446
Less current portion	185,384
Long-term debt	107,007	294,446
Convertible Senior Notes Due 2020
Long-term debt
Senior Secured Notes	181,426	181,426
Unamortized discount and debt issuance costs	3,958	6,358
Net carrying value	185,384	187,784
Senior Secured Notes Due 2024
Long-term debt
Senior Secured Notes	110,000	110,000
Unamortized discount and debt issuance costs	(2,993)	(3,338)
Net carrying value	$ 107,007	$ 106,662

Long-Term Debt (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		3 Months Ended	6 Months Ended
	May 29, 2013	Oct. 31, 2018	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018	May 31, 2013
Long-term debt
Repayments of Notes Payable						$ 57,187
Fda Approval Qsymia Pmr And Cvot Member
Long-term debt
Contractual Obligation Term				5 years
Post Marketing Expenses, CVOT					$ 0
Minimum \| Fda Approval Qsymia Pmr And Cvot Member
Long-term debt
Contractual Obligation				$ 180,000	180,000
Maximum \| Fda Approval Qsymia Pmr And Cvot Member
Long-term debt
Contractual Obligation				220,000	220,000
Convertible Senior Notes Due 2020
Long-term debt
Offering amount							$ 250,000
Debt Instrument, Interest Rate, Stated Percentage							4.50%
Net proceeds from offering	$ 241,800
Conversion price per share (in dollars per share)	$ 148.58
Repurchased Convertible Notes Face Value		$ 8,600	$ 60,000
Cash payment repurchased convertible notes		7,100	$ 51,000
Gain (Loss) on Extinguishment of Debt		$ 1,400
Senior Secured Note Athyrium Due 2024
Long-term debt
Debt Instrument, Interest Rate, Stated Percentage			10.375%			10.375%
Senior Notes			$ 110,000			$ 110,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			330,000			330,000
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed			99.00%
Long-term Debt, Weighted Average Interest Rate, at Point in Time			11.30%			11.30%
Senior Secured Note Athyrium Due 2024 \| Warrants Issued \| Athyrium Capital Management Affiliates Member
Long-term debt
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term			6 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate			62.70%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate			2.83%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate			0.00%
Additional Senior Secured Note Athyrium Due 2024
Long-term debt
Debt Instrument, Interest Rate, Stated Percentage			10.375%			10.375%
Senior Notes			$ 10,000			$ 10,000
Debt Instrument, Term			12 months
Senior Secured Notes Due 2024
Long-term debt
New controlled account only accessed by 2024 Notes trustee holders				$ 60,000	$ 60,000

Long Term Debt (Long Term Debt Future Amortization) (Details) $ in Thousands	Jun. 30, 2019 USD ($)
LONG-TERM DEBT AND COMMITMENTS
2019 (rest of year)	$ 9,788
2020	197,374
2021	36,131
2022	41,299
2023	37,789
Thereafter	17,611
Total	$ 339,992

Net Income (Loss) Per Share (Details) - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net income (loss) per share.
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,900	1,490	2,844	1,926
Convertible Senior Notes Due 2020 \| Convertible Common Stock
Net income (loss) per share.
Net shares issued	0
Minimum stock price to trigger conversion of debt (in dollars per share)	$ 200
Dilutive Securities impact on diluted net income (in dollars per share)	$ 0.00

- Definition

The amount of net income (loss) derived from continuing operations during 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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-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/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-03(13))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868656-224227

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

+ Details

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
INCOME TAXES
Income Tax Expense (Benefit)	$ 8,000	$ 4,000	$ 0	$ 16,000
Unrecognized Tax Benefits	$ 98,000		98,000
Non-deductible Accrued Interest Expense			8,300,000	7,000,000
GILTI inclusion in taxable income calculation			$ 500	$ 0

Non-Current Accrued And Other Liabilities	6 Months Ended
Non-Current Accrued And Other Liabilities	Jun. 30, 2019
NON-CURRENT ACCRUED AND OTHER LIABILITIES
NON-CURRENT ACCRUED AND OTHER LIABILITIES	10. NON-CURRENT ACCRUED AND OTHER LIABILITIES Non-current accrued and other liabilities at December 31, 2018 were comprised of deferred rent. See Note 12.

Deferred Revenue	6 Months Ended
Deferred Revenue	Jun. 30, 2019
Change in Contract with Customer, Liability [Abstract]
Deferred Revenue from Contract with Customers	11. DEFERRED REVENUE Deferred revenue relates to a prepayment for future royalties on sales of SPEDRA. In the three and six months ended June 30, 2019, the Company recorded $0.3 million and $0.6 million, respectively, of revenues which had been deferred as of December 31, 2018. In the three and six months ended June 30, 2018, the Company recorded $0.3 million and $0.6 million, respectively, of revenues which had been deferred as of December 31, 2017. These amounts were applied against the prepayment for future royalties.

Legal Matters	6 Months Ended
Legal Matters	Jun. 30, 2019
LEGAL MATTERS
LEGAL MATTERS	17. LEGAL MATTERS The Company is not aware of any asserted or unasserted claims against it where it believes that an unfavorable resolution would have an adverse material impact on the operations or financial position of the Company.

Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Deferred Revenue (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
SPEDRA \| Royalty Revenue
DEFERRED REVENUE
Contract with Customer, Liability, Revenue Recognized	$ 0.3	$ 0.3	$ 0.6	$ 0.6

Revenue, Narratives (Details) $ in Thousands	3 Months Ended
Revenue, Narratives (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Supply agreement \| STENDRA/SPEDRA
Revenue
Reserve for Estimated Product Returns	$ 0