STOCK TRANSACTIONS

9 Months Ended

Sep. 30, 2012

STOCK TRANSACTIONS [Abstract]

STOCK TRANSACTIONS

NOTE 3 - STOCK TRANSACTIONS

a. On February 22, 2012, the Company issued and sold 5,175,000 shares of Common Stock in an underwritten public offering at a price to the public of $5.25 per share. The net proceeds to the Company were approximately $25,388,000 (net of underwriting commissions and issuance costs of approximately $1,780,000).

b. During the nine months ended September 30, 2012, the Company issued a total of 1,156,184 shares of Common Stock in connection with the exercise of a total of 1,156,184 options by certain officers and employees of the Company. The Company received aggregate cash proceeds equal to approximately $1,137,000 in connection with such exercises.

c. Following FDA approval of taliglucerase alfa on May 1, 2012, the Company started recognizing compensation costs in relation to performance-based awards that were granted in February 2010 to certain officers and employees of the Company, which vest over a three-year period commencing upon the FDA's approval of taliglucerase alfa. During the second and third quarter of 2012, the Company recorded an expense in the amount of approximately $3,900,000 for the cumulative period from the date of grant.

d. On July 16, 2012, the Company's Board of Directors approved the grant of 1,500,000 shares of restricted Common Stock to its officers and certain other employees. Of such restricted shares, 1,100,000 of the shares were issued to the Company's named executive officers and vest in 16 equal, quarterly increments over a four-year period, commencing upon the date of grant, and are subject to a 24-month lock-up period, commencing upon the applicable vesting dates. Immediately and automatically in the event of a Change in Control, as such term is defined in the Company's 2006 Stock Incentive Plan, as amended, all of the shares of restricted Common Stock issued to the named executive officers shall vest, and the lock-up periods shall terminate, subject to certain exceptions. The remaining 400,000 shares of restricted Common Stock were issued to other employees of the Company and vest in 12 equal, quarterly increments over a three-year period, commencing upon the date of grant. The Company estimated the fair value of the restricted stock on the date of grant to be approximately $8,580,000.