Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

Stock-Based Compensation

Stock-Based Compensation

(10)  Stock-Based Compensation

At June 30, 2012, the 2008 Stock Option and Incentive Plan allowed for a maximum of 7,400,000 shares of common stock to be issued for grants of Stock Options and other Awards made prior to March 7, 2018 and grants of Incentive Stock Options made prior to October 20, 2017.

A summary of stock option activity for the six months ended June 30, 2012 is as follows:

	Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (In Years)
Options Outstanding at December 31, 2011	4,459,034		$	6.08	6.9
Granted	31,000		$	3.99
Exercised	—		—
Canceled	(185,137	)	$	8.50
Options Outstanding at June 30, 2012	4,304,897		$	5.96	6.7
Options Vested and Expected to Vest at June 30, 2012	4,271,786		$	5.99	6.7
Options Exercisable at June 30, 2012	2,923,338		$	7.04	5.8
Shares Available for Grant under the 2008 Plan	4,449,646

The weighted average grant-date fair value of stock options granted during the six months ended June 30, 2012 was $2.49.

A summary of restricted stock activity under the 2008 Plan for the six months ended June 30, 2012 is as follows:

	Shares		Weighted Average Grant Date Fair Value (per share)
Outstanding and unvested at December 31, 2011	6,000		$	3.24
Granted	12,000		4.50
Vested	(6,000	)	3.24
Canceled	—		—
Outstanding and unvested at June 30, 2012	12,000		$	4.50

Stock-based compensation expense for the three and six months ended June 30, 2012 and 2011 was recorded as follows:

	Three months ended June 30,				Six months ended June 30,
	2012		2011		2012		2011
	(In thousands)
Research and development	$	284	$	344	$	679	$	705
General and administrative	164		209		409		428
Total stock-based compensation expense	$	448	$	553	$	1,088	$	1,133

The fair values of employee stock options granted during the three and six months ended June 30, 2012 and 2011 were valued using the Black-Scholes option-pricing model with the following assumptions:

	Three months ended June 30,				Six months ended June 30,
	2012		2011		2012		2011
Expected stock price volatility	71	%	68	%	70 - 71	%	68	%
Expected option term	6.0 years		6.0 years		6.0 years		6.0 years
Risk-free interest rate	0.9 – 1.3	%	2.5	%	0.9 – 1.4	%	2.5 – 2.9	%
Expected dividend yield	None		None		None		None