CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2017

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

Summary of securities included in cash and cash equivalents and short-term investments

Securities classified as cash and cash equivalents and short-term investments as of March 31, 2017 and December 31, 2016 are summarized below (in thousands). Estimated fair value is based on quoted market prices for these investments.

			Gross		Gross
	Amortized		Unrealized		Unrealized
March 31, 2017	Cost		Gains		Losses		Fair Value
Cash and cash equivalents:
Cash	$	169,730	$	—	$	—	$	169,730
Money market funds		85		—		—		85
Commercial paper		17,995		—		—		17,995
Total cash and cash equivalents	$	187,810	$	—	$	—	$	187,810
Short-term investments
Corporate debt securities with maturities less than 1 year	$	6,706	$	—	$	(4)	$	6,702
Total short-term investments	$	6,706	$	—	$	(4)	$	6,702
Total	$	194,516	$	—	$	(4)	$	194,512

			Gross		Gross
	Amortized		Unrealized		Unrealized
December 31, 2016	Cost		Gains		Losses		Fair Value
Cash and cash equivalents:
Cash	$	87,845	$	—	$	—	$	87,845
Money market funds		532		—		—		532
Corporate debt securities and commercial paper		29,334		—		(2)		29,332
Total cash and cash equivalents	$	117,711	$	—	$	(2)	$	117,709
Short-term investments
Corporate debt securities and commercial paper with maturities less than 1 year	$	59,728	$	—	$	(17)	$	59,711
Total short-term investments	$	59,728	$	0	$	(17)	$	59,711
Total	$	177,439	$	0	$	(19)	$	177,420

Schedule of the gross unrealized losses and fair value of investments

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2017 (in thousands):

	Less than 12 months				12 months or greater				Total
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Corporate debt securities and commercial paper	$	11,201	$	(4)	$	—	$	—	$	11,201	$	(4)

Schedule of fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis

The following tables represent the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (in thousands):

March 31, 2017	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	85	$	—	$	—	$	85
Commercial paper		—		17,995		—		17,995
Corporate debt securities		—		6,702		—		6,702
Total	$	85	$	24,697	$	—	$	24,782
Liabilities:
Contingent consideration—Zipsor	$	—	$	—	$	797	$	797
Contingent consideration—Lazanda		—		—		7,058		7,058
Contingent consideration—CAMBIA		—		—		756		756
	$	—	$	—	$	8,611	$	8,611

December 31, 2016	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	532	$	—	$	—	$	532
Commercial paper		—		52,192		—		52,192
Corporate debt securities		—		36,850		—		36,850
Total	$	532	$	89,042	$	—	$	89,574
Liabilities:
Contingent consideration—Zipsor	$	—	$	—	$	1,489	$	1,489
Contingent consideration—Lazanda		—		—		11,742		11,742
Contingent consideration—CAMBIA		—		—		1,594		1,594
	$	—	$	—	$	14,825	$	14,825

Summary of the changes in fair value of all financial liabilities measured at fair value on a recurring basis using significant unobservable inputs

					Changes in
					fair value
			Changes in		recorded in
			fair value		selling,			Royalties
	Balance at		recorded in		general and			and	Balance at
	December 31,		interest		administrative		milestone		March 31,
	2016		expense		expense		paid		2017
Liabilities:
Contingent consideration obligations—Zipsor	$	1,489	$	32	$	(724)	$	—	$	797
Contingent consideration obligations—Lazanda		11,742		438		(3,377)		(1,745)		7,058
Contingent consideration obligations—CAMBIA		1,594		61		(899)		—		756
Total	$	14,825	$	531	$	(5,000)	$	(1,745)	$	8,611