Accrued Liabilities

9 Months Ended

Sep. 30, 2011

6. Accrued Liabilities

Accrued liabilities are comprised of the following:

	September 30,	December 31,
	2011	2010
Accrued royalties, government rebates, chargebacks, returns and distribution fees	$ 4,972	$ 3,849
Accrued personnel costs	4,460	6,103
Accrued sales and marketing expenses	3,442	3,536
Accrued legal costs	2,671	325
Accrued research and development expenses	1,634	2,762
Accrued expenses - other	1,868	1,052
	$ 19,047	$ 17,627

In January 2011, we implemented a strategic reduction of our workforce by approximately 13%, or 25 employees. Personnel reductions were primarily focused in research and development and general and administrative functions. The restructuring was a result of our decision to prioritize our resources on the development and commercialization of FOLOTYN for the treatment of PTCL, cutaneous T-cell lymphoma and other hematologic malignancies, and to manage our operating costs and expenses. During the first quarter of 2011, we incurred total restructuring charges of approximately $570,000, of which $304,000 and $266,000 were recorded in research and development and sales, general and administrative expenses, respectively, in connection with the restructuring, all in the form of one-time termination benefits. As of September 30, 2011, all accrued termination benefits related to this restructuring have been paid.

Accrued legal costs as of September 30, 2011 primarily relate to costs associated with the terminated Agreement and Plan of Merger and Reorganization, as amended, with AMAG Pharmaceuticals, Inc., or AMAG, discussed further in Note 13.