Quarterly Information

12 Months Ended

Dec. 31, 2011

Quarterly Information [Abstract]

Quarterly Information

11. Quarterly Information (Unaudited)

     Certain unaudited quarterly financial information, including license and other revenue, operating loss, loss before income taxes, net loss, net loss per share and deferred revenue have been restated for the second and third quarters of 2011 from the amounts previously reported in our original Quarterly Reports on Form 10 Q for the periods ended June 30, 2011 and September 30, 2011, which were amended to reflect the restated amounts. The restatements were related to the inclusion in the allocable arrangement consideration of the development cost differential contingent payment for the Mundipharma Collaboration Agreement and other items. For the three months ended June 30, 2011 and the three months ended September 30, 2011, we overstated license and other revenue by $4.7 million and $0.1 million, respectively, as a result of our overstatement of the allocable arrangement consideration under the Mundipharma arrangement. Accordingly, the adjustments for the nine months ended September 30, 2011 was to reduce license and other revenue and increase deferred revenue and other liabilities by $4.8 million. The restatement had no effect on total net cash flows from operating, investing or financing activities in any periodThe results of operations on a quarterly basis for the years ended December 31, 2011 and 2010 were as follows:

		March 31,			June 30,			Sept. 30			Dec. 31,			March 31,			June 30,			Sept. 30			Dec. 31,
		2011			2011			2011	(2)		2011	(3)		2010			2010			2010			2010	(4)
					(restated)			(restated)
Net product sales	$	10,864		$	10,972		$	13,215		$	15,435		$	7,407		$	7,885		$	8,230		$	11,705
License and other revenue (1)		-			23,454			840			1,269			-			-			-			-
Total revenue		10,864			34,426			14,055			16,704			7,407			7,885			8,230			11,705
Operating costs and expenses:
Cost of sales, excluding
amortization expense		943			1,044			1,230			1,293			689			752			889			1,317
Cost of license and other revenue		-			10,571			437			690			-			-			-			-
Research and development		7,497			5,074			4,996			4,622			9,285			6,522			7,249			8,303
Selling, general and administrative		17,552			20,158			18,688			11,419			17,932			20,517			18,702			21,631
Amortization of intangible asset		113			114			113			114			113			114			113			114
Total operating costs and expenses.		26,105			36,961			25,464			18,138			28,019			27,905			26,953			31,365
Operating loss		(15,241	)		(2,535	)		(11,409	)		(1,434	)		(20,612	)		(20,020	)		(18,723	)		(19,660	)
Interest and other income, net		38			22			14			11			65			66			(129	)		1,518
Loss before income taxes		(15,203	)		(2,513	)		(11,395	)		(1,423	)		(20,547	)		(19,954	)		(18,852	)		(18,142	)
Income tax benefit		-			-			7			-			-			-			78			-
Net loss	$	(15,203	)	$	(2,513	)	$	(11,388	)	$	(1,423	)	$	(20,547	)	$	(19,954	)	$	(18,774	)	$	(18,142	)
Net loss per share: basic and diluted	$	(0.14	)	$	(0.02	)	$	(0.11	)	$	(0.01	)	$	(0.20	)	$	(0.19	)	$	(0.18	)	$	(0.17	)
Weighted average shares: basic and diluted		105,527,387			105,606,587			105,677,687			106,029,341			104,602,134			105,187,206			105,320,554			105,373,147

(1) In May 2011, we entered into a strategic collaboration agreement to co-develop FOLOTYN with Mundipharma. See Note 5 for further information.

(2) Net product sales for the third quarter 2011 includes $3.0 million related to the sale of FOLOTYN for use in a clinical trial being conducted by an unrelated party.

(3) Net product sales for the fourth quarter 2011 includes an increase of approximately $4.4 million related to (i) $3.2 million in the fourth quarter of 2011 relating to an increase in our distributors' year-end 2011 inventory levels as compared to average inventory levels for 2011, and (ii) $1.2 million in the fourth quarter of 2011 relating to the reversal of certain gross-to-net sales allowances. See Note 2 for further information.

As a result of the termination of the Merger Agreement with AMAG Pharmaceuticals, Inc. on October 21, 2011, AMAG paid Allos approximately $1.8 million for reimbursement of expenses, which was recorded in the fourth quarter as an offset to selling, general and administrative expense.

(4) Net product sales for the fourth quarter 2010 includes a one-time increase of approximately $1.1 million related to a change in revenue recognition methodology. Prior to the fourth quarter, we recognized revenue on the basis of demand sales. During the fourth quarter, we began recognizing revenue on the basis of factory sales as we established a sufficient history in order to reasonably estimate returns in accordance with GAAP. The $1.1 million one-time increase in net product sales represents the cumulative difference between factory sales and demand sales at the end of the third quarter, or deferred revenue, less applicable gross to net sales adjustments.

In October 2010, we received the Therapeutic Discovery Tax Credit, which we elected to receive in the form of a cash payment, or grant totaling approximately $1.5 million and which was recorded in Interest and other income, net in the fourth quarter.