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

6 Months Ended

Jun. 30, 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 June 30, 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
June 30, 2017	Cost		Gains		Losses		Fair Value
Cash and cash equivalents:
Cash	$	91,971	$	—	$	—	$	91,971
Money market funds		63		—		—		63
Commercial paper		21,191		—		—		21,191
Total cash and cash equivalents	$	113,225	$	—	$	—	$	113,225
Short-term investments
Corporate debt securities and commercial paper with maturities less than 1 year	$	3,576	$	—	$	(2)	$	3,574
Total short-term investments	$	3,576	$	—	$	(2)	$	3,574
Total	$	116,801	$	—	$	(2)	$	116,799

			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	$	—	$	(17)	$	59,711
Total	$	177,439	$	—	$	(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 June 30, 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	$	1,178	$	(2)	$	—	$	—	$	1,178	$	(2)

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 June 30, 2017 and December 31, 2016 (in thousands):

June 30, 2017	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	63	$	—	$	—	$	63
Commercial paper		—		23,587		—		23,587
Corporate debt securities		—		1,178		—		1,178
Total	$	63	$	24,765	$	—	$	24,828
Liabilities:
Contingent consideration—Zipsor	$	—	$	—	$	579	$	579
Contingent consideration—Lazanda		—		—		5,857		5,857
Contingent consideration—CAMBIA		—		—		920		920
	$	—	$	—	$	7,356	$	7,356

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Fair value, beginning of the period	$	8,611	$	14,864	$	14,825	$	14,971
Changes in fair value recorded in interest expense		265		600		796		1,194
Changes in fair value recorded in selling, general and administrative expenses		(1,128)		(110)		(6,128)		(287)
Royalties and milestone paid		(392)		(456)		(2,137)		(980)
Total		7,356		14,898		7,356		14,898