Accrued Expenses

9 Months Ended

Sep. 30, 2011

Accrued Expenses [Abstract]

ACCRUED EXPENSES

NOTE 4: ACCRUED EXPENSES

     The components of accrued expenses are as follows (in thousands):

	September 30,		December 31,
	2011		2010
Accrued product returns	$	22,190	$	15,025
Accrued rebates		2,912		3,034
Accrued price adjustments and chargebacks		11,537		21,520
Accrued compensation and benefits		3,113		2,760
Accrued royalties		2,740		3,303
Accrued expenses, other		903		957
Total accrued expenses	$	43,395	$	46,599

     During the three months ended September 30, 2011, certain wholesalers indicated that they interpreted the March 2011 FDA Announcement to cover distribution of ALLERX Dose Pack products by wholesalers and requested to return approximately $26.4 million of ALLERX Dose Pack product to the Company. In connection with the expected returns, the Company reclassified $26.4 million of deferred revenue and related accrued expenses to accrued product returns. During September 2011, the Company satisfied $16.7 million of its accrued product return liability for ALLERX Dose Pack returns by disbursing cash of $5.7 million and reducing accounts receivable by $11.0 million. Approximately $3.0 million of accounts receivable related to previously deferred sales of ALLERX Dose Packs remains recorded on the consolidated balance sheet as of September 30, 2011 and will be reversed (along with the associated accrued product return liability) when the Company receives the returned product.