Restructurings

12 Months Ended

Dec. 31, 2011

Restructuring and Related Activities Disclosure [Text Block]

(13) Restructurings

          The Company incurred the following charges in connection with its restructuring programs during the years ended December 31, 2011, 2010 and 2009 (in thousands):

	Year Ended December 31,
	2011			2010		2009
Employee separation benefits:
Fourth-quarter 2011	$	1,485		$	—	$	—
Third-quarter 2011		2,835			—		—
Second-quarter 2011		734			—		—
Fourth-quarter 2010		(72	)		2,974		—
First-quarter 2010		(60	)		9,736		—
First-quarter 2009		—			—		693
		4,922			12,710		693
Other restructuring costs:		1,103			1,316		—
Total restructuring charges	$	6,025		$	14,026	$	693

Employee Separation Benefits

          During the fourth quarter of 2011, the Company recorded total restructuring charges in the amount of $1.4 million, of which $1.1 million related to the departure of the Company’s Chief Operating Officer for severance payments and benefits that are payable under the terms of the Amended and Restated Severance Agreement. Additionally, there were several research and development positions identified for elimination resulting in a charge of approximately $0.3 million for separation benefits. As of December 31, 2011, there was approximately $1.2 million remaining to be paid in accrued expenses under current liabilities.

          During the third quarter of 2011, the Company announced a plan to reduce its workforce and operating costs to more closely align its resources and capital with the Company’s research and development activities. The reduction in force will reduce the number of employees by approximately 48 percent, to a total of approximately 47, by June 2012. Separation payments will be made for up to a year following the respective separations. In connection with this restructuring, the Company recorded in the third quarter of 2011 a charge of approximately $2.9 million for separation benefits. As of December 31, 2011, there was approximately $2.6 million remaining to be paid, of which approximately $2.0 is in accrued expenses under current liabilities.

          During the second quarter of 2011, the Company recorded a restructuring charge in the amount of $0.7 million related to the departure of the Company’s Executive Vice President, Human Resources & Administration for severance payments and benefits that are payable under the terms of the Severance and Release Agreement. As of December 31, 2011, there was approximately $0.3 million remaining to be paid in accrued expenses under current liabilities.

          There were two restructurings initiated during 2010, both of which reflected the transition of the Company from a fully integrated biopharmaceutical company with research, manufacturing and marketing operations to a biotechnology company focused primarily on research and development. The fourth-quarter 2010 restructuring program was part of the Company’s continued efforts to streamline corporate administrative operations and affected approximately 33 positions. Affected employees were notified in December 2010 and the majority of the terminations occurred during the first quarter of 2011. Separation payments will be made for up to a year following the respective separations. In connection with this restructuring, the Company recorded in the fourth quarter of 2010 a charge of approximately $3.0 million for separation benefits. As of December 31, 2011, there was approximately $0.4 million remaining to be paid in accrued expenses under current liabilities.

          During the first quarter of 2010, the Company recorded restructuring charges of $9.7 million, of which $6.1 million was for separation benefits resulting from a workforce reduction involving 64 employees. These actions related primarily to the sale of the specialty pharmaceutical business, including several employees who were previously engaged in activities related to the divested business but who did not transfer to the employment of the purchaser. These employees were provided with separation benefits after certain transition periods during which they assisted with an orderly transfer of activities and information to the purchaser. The Company also reassessed its staffing requirements subsequent to the sale of the specialty pharmaceutical business in light of the lessened demands on many of its general and administrative functions. Additionally, the Company’s former President and Chief Executive Officer resigned from the Company effective February 22, 2010, resulting in $3.6 million of expenses for severance payments and benefits that were payable per the terms of the individual’s employment agreement. Payments due pursuant to the termination agreement were made during the third quarter of 2010.

          The following table reflects the 2011 and 2010 restructuring accrual activity for separation benefits and the resulting liabilities as of December 31, 2011 and 2010 (in thousands):

	Employee Separation Benefits
	4Q-11		3Q-11		2Q-11		4Q-10			1Q-10			Total
Balance at December 31, 2009	$	—	$	—	$	—	$	—		$	—		$	—
2010 restructuring accruals		—		—		—		2,974			9,889			12,863
2010 payments made		—		—		—		—			(8,837	)		(8,837	)
2010 adjustments		—		—		—		—			(153	)		(153	)
Balance at December 31, 2010	$	—	$	—	$	—	$	2,974		$	899		$	3,873
2011 payments made		—		—		—		(2,544	)		(839	)		(3,383	)
2011 adjustments		—		—		—		(72	)		(60	)		(132	)
2011 restructuring accruals		1,485		2,872		662		—			—			5,019
2011 payments made		(301)		(205)		(350)		—			—			(856)
2011 adjustments		—		(37)		—		—			—			(37)
Balance at December 31, 2011	$	1,184	$	2,630	$	312	$	358		$	—		$	4,484

Other Restructuring Costs

          During the third quarter of 2011, the Company recorded a restructuring charge in the amount of $0.7 million to terminate an operating lease related to the third and first floors of the its former Bridgewater, New Jersey headquarters facility, of which $0.2 million is reflected in accrued expenses under current liabilities as of December 31, 2011. Termination payments will be completed during the first quarter of 2012 (see Note 20, Leases).

          During the first quarter of 2011, the Company recorded a restructuring charge in the amount of $0.4 million related to the excess of committed lease costs over potential sublease income for office space in Bridgewater, New Jersey that was vacated during the quarter when the Company relocated its corporate headquarters to Piscataway, New Jersey.

          During the third quarter of 2010, the Company entered into a sublease for the second floor of its former Bridgewater, New Jersey headquarters facility. This space became unused as a result of the reductions in workforce stemming from earlier restructuring efforts related to the sale of the specialty pharmaceutical business. The $0.4 million charge represents the excess of the Company’s contractual lease commitment over the amount of cash to be received from the subtenant over the life of the sublease arrangement.

          During the second quarter of 2010, the Company recorded a restructuring charge in the amount of $0.9 million to write off certain leasehold improvements and furnishings located at its former Bridgewater, New Jersey headquarters facility that were determined to be excess and without future value as a result of the termination and relocation of several employees.