Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table sets forth the Company's assets and liabilities that were measured at fair value on a recurring basis at September 30, 2015 and December 31, 2014 by level within the fair value hierarchy. As required by ASC 820, assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability:

	As of September 30, 2015								As of December 31, 2014
Assets and Liabilities	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs  (Level 3)		Balance as of September 30, 2015		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs  (Level 3)		Balance as of December 31, 2014
	(in thousands)
Assets:
Money market	$	6,032	$	—	$	—	$	6,032	$	6,030	$	—	$	—	$	6,030
Total assets at fair value	$	6,032	$	—	$	—	$	6,032	$	6,030	$	—	$	—	$	6,030
Liabilities:
Contingent purchase price	$	—	$	—	$	204,307	$	204,307	$	—	$	—	$	351,134	$	351,134
Total liabilities at fair value	$	—	$	—	$	204,307	$	204,307	$	—	$	—	$	351,134	$	351,134

Fair Value Inputs, Quantitative Information

The following table provides quantitative information associated with the fair value measurement of the Company’s Level 3 inputs:

	Fair Value as of
	September 30, 2015		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(in thousands)
Targanta:
Contingent purchase price	$	5,707	Probability-adjusted discounted cash flow	Probability of success	20%
				Period in which milestone is expected to be achieved	2020
				Discount rate	11%
Incline:
Contingent purchase price	$	78,000	Probability-adjusted discounted cash flow	Probabilities of success	64% -100% (86%)
				Periods in which milestones are expected to be achieved	2015 - 2018
				Discount Rate	18%
ProFibrix:
Contingent purchase price	$	2,400	Probability-adjusted discounted cash flow	Probabilities of success	5% - 15% (14%)
				Periods in which milestones are expected to be achieved	2019
				Discount rate	27% - 29%
Rempex:
Contingent purchase price: commercial milestone	$	65,200	Probability-adjusted discounted cash flow	Probabilities of success	11% - 95% (57%)
				Periods in which milestones are expected to be achieved	2015 - 2020
				Discount rate	2.6% - 5.6%
Contingent purchase price: sales milestone	$	11,300	Risk-adjusted revenue simulation	Probabilities of success	11% - 63% (30%)
				Periods in which milestone is expected to be achieved	2017 - 2022
				Discount rate	4.6% - 6.4%
Tenaxis:
Contingent purchase price	$	25,700	Probability-adjusted discounted cash flow	Probabilities of success	5% - 100% (89%)
				Periods in which milestones are expected to be achieved	2019 - 2029

				Discount rate	4.2% - 26%
Annovation:
Contingent purchase price	$	16,000	Probability-adjusted discounted cash flow	Probabilities of success	8% - 50% (31%)
				Periods in which milestones are expected to be achieved	2016 - 2030
				Discount rate	3.3% - 8.0%

	Fair Value as of
	December 31, 2014		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(in thousands)
Targanta:
Contingent purchase price	$	6,334	Probability-adjusted discounted cash flow	Probability of success	20%
				Period in which milestone is expected to be achieved	2019
				Discount rate	11%
Incline:
Contingent purchase price	$	123,800	Probability-adjusted discounted cash flow	Probabilities of success	64% -100% (83%)
				Periods in which milestones are expected to be achieved	2015 - 2018
				Discount Rate	18%
ProFibrix:
Contingent purchase price	$	88,600	Probability-adjusted discounted cash flow	Probabilities of success	5% - 95% (92%)
				Periods in which milestones are expected to be achieved	2015 - 2017
				Discount rate	2.5% - 24.1%
Rempex:
Contingent purchase price: commercial milestone	$	80,800	Probability-adjusted discounted cash flow	Probabilities of success	11% - 95% (63%)
				Periods in which milestones are expected to be achieved	2015 - 2019
				Discount rate	1.5% - 3.7%
Contingent purchase price: sales milestone	$	10,900	Risk-adjusted revenue simulation	Probabilities of success	9% - 49% (17%)
				Periods in which milestones are expected to be achieved	2016 - 2022
				Discount rate	1.5% - 4.5%
Tenaxis:
Contingent purchase price	$	40,700	Probability-adjusted discounted cash flow	Probabilities of success	5% - 100% (84%)
				Periods in which milestones are expected to be achieved	2015 - 2026
				Discount rate	1% - 20%

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The changes in fair value of the Company's Level 3 contingent purchase price during the three and nine months ended September 30, 2015 and 2014 were as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015			2014
	(in thousands)
Balance at beginning of period	207,160			360,780		351,134			302,363
Fair value of contingent purchase price with respect to Tenaxis as of May 1, 2014	—			—		—			37,900
Fair value of contingent purchase price with respect to Annovation as of February 2, 2015	—			—		18,000			—
Settlements	(3,600		)	—		(179,250		)	—
Fair value adjustment to contingent purchase prices included in net loss	747			8,214		14,423			28,731
Balance at end of period	$	204,307		$	368,994	$	204,307		$	368,994