Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Assets and Liabilities Measured at Fair Value on Recurring Basis

Except for the Company’s Level 2 liabilities which are discussed in Note 9, “Convertible Senior Notes,” the following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017, by level, within the fair value hierarchy:



	As of September 30, 2018								As of December 31, 2017
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, 2018		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, 2017
	(in thousands)
Assets:
Cash equivalents	$	12,237	$	—	$	—	$	12,237	$	12,100	$	—	$	—	$	12,100
Short-term investment	13,089		—		—		13,089		—		—		—		—
Total assets at fair value	$	25,326	$	—	$	—	$	25,326	$	12,100	$	—	$	—	$	12,100
Liabilities:
Contingent purchase price	$	—	$	—	$	18,822	$	18,822	$	—	$	—	$	19,650	$	19,650
Total liabilities at fair value	$	—	$	—	$	18,822	$	18,822	$	—	$	—	$	19,650	$	19,650

Fair Value Inputs, Quantitative Information

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



	Fair Value as of September 30, 2018		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(in thousands)
Rempex:
Contingent purchase price: Event-based milestones	$	18,822	Probability-adjusted discounted cash flow	Probabilities of successes	18% - 75% (46%)
				Period in which milestones are expected to be achieved	2018 - 2024
				Discount rate	5.0% - 7.3%



	Fair Value as of December 31, 2017		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(in thousands)
Rempex:
Contingent purchase price: Event-based milestones	$	19,650	Probability-adjusted discounted cash flow	Probabilities of successes	18% - 90% (71%)
				Period in which milestones are expected to be achieved	2018 - 2024
				Discount rate	4.8% - 7.5%

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, 2018 and 2017 were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(in thousands)						(in thousands)
Balance at beginning of period	$	18,825		$	20,300		$	19,650		$	31,832
Payments	(3		)	—			(570		)	—
Fair value adjustments to contingent purchase prices included in net loss	—			(1,600		)	(258		)	(13,132		)
Balance at end of period	$	18,822		$	18,700		$	18,822		$	18,700