Contrave Acquisition (Table)

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Estimated Fair Value of Total Consideration

The estimated fair value of the total consideration at the date of acquisition (August 1, 2016) is as follows (in thousands):

Prepaid purchase price payment to Takeda in March 2016	$	60,000
Fair value of contingent consideration due to Takeda		18,800
Payment due to Takeda for Contrave inventory		7,762
Estimated payment due to Takeda for charge-backs and rebates		823
Cash received from Takeda for estimated returns as of August 1, 2016		(1,667	)
Total Purchase Price	$	85,718

Summary of Purchase Price Allocation

The allocation as of the date of the acquisition is as follows (in thousands):

Developed technology intangible	$	74,967
Tradename		4,400
Inventory		14,261
Assumption of accrued expenses (savings card program)		(5,687	)
Assumption of accrued expenses (returns reserve)		(2,223	)
Total Fair Value of Assets Acquired and Liabilities Assumed	$	85,718

Remaining Estimated Amortization Expense Related to Intangible Assets

The remaining estimated amortization expense related to the intangible assets recorded in connection with the Contrave acquisition for 2017 through 2021 and thereafter is as follows (in thousands):

2017	$	1,983
2018		7,938
2019		7,938
2020		7,938
2021		7,938
Thereafter		36,373
	$	70,108

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information presents results as if the acquisition of Contrave had occurred on January 1, 2016 (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Revenues	$	18,903		$	10,965		$	61,404		$	42,677
Net loss		(20,829	)		(36,040	)		(120,434	)		(147,504	)
Net loss per share - basic and diluted		(1.35	)		(2.47	)		(7.94	)		(10.12	)