Discontinued Operations

3 Months Ended

Mar. 31, 2018

Discontinued Operations And Disposal Groups [Abstract]

8. Discontinued Operations

On April 3, 2017, the Company completed the sale of the Commercial Business. As of March 31, 2017, the Commercial Business met all the conditions to be classified as a discontinued operation since the disposal of the Commercial Business represented a strategic shift that had a major effect on the Company’s operations and financial results.

The condensed consolidated financial statements for the three months ended March 31, 2017 reflect the operations of the Commercial Business as a discontinued operation. Discontinued operations for the three months ended March 31, 2017 includes the following:

(in thousands)	Three Months Ended March 31,
	2017
Revenues:
Product revenues, net	$	16,135
License and collaboration revenues		7,797
Other revenues		1,973
Total revenues		25,905
Costs and expenses:
Cost of revenues		3,890
Research and development expenses		3,730
Selling, general and administrative expenses		8,733
Restructuring expenses		5,265
Total costs and expenses		21,618
Other income and expenses:
Interest expense		(5,234	)
Loss from discontinued operations	$	(947	)

On January 8, 2017, the Company announced a reduction in headcount by approximately 30% in connection with the sale of the Commercial Business and the completion of its strategic pipeline review.

Under this corporate restructuring, for the three months ended March 31, 2017, the Company recognized total restructuring expenses of $5.3 million related to contractual termination benefits for employees with pre-existing severance arrangements. These one-time employee termination benefits are comprised of severance, benefits and related costs, all of which resulted in cash expenditures. The expense of $5.3 million was included in discontinued operations, as the costs are directly associated with the sale of the Commercial Business. For the three months ended March 31, 2018, there were no discontinued operations.