Fair value measurements

3 Months Ended

Mar. 31, 2013

Fair value measurements [Abstract]

Fair value measurements

2.  Fair value measurements

The following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis:

	At March 31, 2013
(in thousands)	Level 1			Level 2			Level 3			Total
Assets:
Investment in money market funds (1)		$	31,562		$	-		$	-		$	31,562
Total assets		$	31,562		$	-		$	-		$	31,562
	At December 31, 2012
(in thousands)	Level 1			Level 2			Level 3			Total
Assets:
Investment in money market funds (1)		$	42,720		$	-		$	-		$	42,720
Total assets		$	42,720		$	-		$	-		$	42,720

(1) Included in cash and cash equivalents in accompanying consolidated balance sheets.

As of March 31, 2013 and December 31, 2012, the Company did not have any transfers between Level 1 and Level 2 assets or liabilities.

The fair value of the contingent value right ("CVR") obligations is based on management's assessment of certain development and collaboration milestones, which are inputs that have no observable market (Level 3). The obligation is measured using a discounted cash flow model. For the three months ended March 31, 2012, the Company recorded a decrease in the CVR obligations of $3.0 million due to Pfizer ceasing development of programs related to the CVR milestones and made a $1.7 million CVR payment under the Company's agreement with Abbott. The adjustments to fair value are classified in the Company's statement of operations as research and development expense within the Company's Biosciences segment.

As of March 31, 2013 and December 31, 2012, the Company had no assets or liabilities measured at fair value using significant unobservable inputs (Level 3).

Separate disclosure is required for assets and liabilities measured at fair value on a recurring basis, as documented above, from those measured at fair value on a nonrecurring basis. For the three months ended March 31, 2013, no assets or liabilities were measured at fair value on a nonrecurring basis.  For the year ended December 31, 2012, the Company's SBI-087 in-process research and development ("IPR&D") asset, which was categorized as a level 3 fair value measurement, was the only asset or liability measured at fair value on a nonrecurring basis (see Note 4).