Inventory

6 Months Ended

Jun. 30, 2012

Inventory [Abstract]

Inventory

5. Inventory

Inventories, stated at the lower of cost or market, consisted of the following (in thousands):

	June 30, 2012		December 31, 2011
Inventory:
Raw material	$	95	$	96
Finished goods		4,233		1,292
Total	$	4,328	$	1,388

In February 2012, the Company announced a voluntary recall of a single lot of OFIRMEV that was manufactured at Baxter Healthcare Corporation’s (“Baxter”) facility due to the presence of an unidentified visible particle in that lot during routine stability testing. The Company also placed certain finished product inventory of OFIRMEV manufactured by Baxter on indefinite hold pending the outcome of its investigation into unidentified particulate matter observed during routine product stability testing. As a result, the Company recorded charges of $5,574,000 for the fourth quarter of 2011 and $224,000 for the first quarter of 2012 to fully write-down the value of the inventory placed on hold due to uncertainty as to the amount of time that would be required to complete the investigation and whether the product would have sufficient remaining shelf life or otherwise be saleable after the investigation is completed. Further, in July 2012, the Company announced a second voluntary recall of product manufactured at Baxter’s facility due to the presence of unidentified visible particles in a limited number of vials from one lot of the product, which were detected during routine stability testing. As a result, the Company decided to destroy the product that was previously placed on hold. See “Supply Agreements” in Note 11 below for further information.