4. Business Combinations and Other Acquisitions (Tables) - Zohydro ER

12 Months Ended

Dec. 31, 2016

Schedule of Purchase Price Allocation

The following table summarizes the consideration paid to acquire Zohydro ER and amounts recognized for assets acquired and liabilities assumed as of the acquisition date as well as adjustments made during the measurement period after the acquisition date to the amounts initially recorded on the acquisition date (in thousands):

Purchase price:		As of April 24, 2015 As initially reported		Measurement Period Adjustments		As of April 24, 2015 As adjusted
Cash consideration paid to Zogenix	$	70,000	$	-	$	70,000
Escrow fund deposited at the time of closing(1)		10,000		-		10,000
Purchased product inventory(2)		927		-		927
Common stock issued(3)		11,926		-		11,926
Fair value of contingent consideration payable to Zogenix (4)		29,327		(15,134)		14,193
Total purchase price	$	122,180	$	(15,134)	$	107,046
Estimated fair value of net assets acquired:
Intangible assets(5):
Developed technologies	$	67,400	$	31,400	$	98,800
In-process research and development		54,600		(50,400)		4,200
Supplier Contract (6)		-		1,142		1,142
Assets acquired		122,000		(17,858)		104,142
Liabilities assumed (6)		-		(3,726)		(3,726)
Amount attributable to net assets acquired		122,000		(21,584)		100,416
Goodwill(7)	$	180	$	6,450	$	6,630

Pro forma financial information

Future results may vary significantly from the results in this pro forma information because of future events and transactions, as well as other factors (in thousands, except for per share data):

		December 31, 2015
		(unaudited)
Revenue	$	180,856
Net loss	$	(166,709)
Pro forma net loss per common share:
Basic	$	(31.26)
Diluted	$	(31.26)