Related Party Transactions

6 Months Ended

Jun. 30, 2012

RELATED PARTY TRANSACTION [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

The table below presents the transactions between the Company and Watson.

	Six Months Ended June 30,				Three Months Ended June 30,
	2012		2011		2012		2011
REVENUES
Net product revenues	$	2,163,183	$	938,340	$	1,922,782	$	511,560
Royalties	1,327,558		1,142,818		727,558		602,818
Amortization of deferred revenue	—		16,984,800		—		8,590,874
Milestone payment	—		5,000,000		—		5,000,000
Total net revenues	$	3,490,741	$	24,065,958	$	2,650,340	$	14,705,252
COST OF PRODUCT REVENUES
Cost of product revenues	1,966,333		817,488		1,747,809		429,355
Gross profit	$	1,524,408	$	23,248,470	$	902,531	$	14,275,897
Accounts receivable	$	1,862,967	$	6,540,972
Accounts payable	$	43,504	$	503,763

The Company has exceeded the cap of $7.0 million by $3.6 million for R&D spending on the PREGNANT study and related Preterm Birth NDA pursuant to the Watson Transactions and has recorded this amount as a reduction of R&D expenses. Watson has paid the Company for $3.6 million of these excess amounts. In the six months of 2012, Watson was invoiced and paid to the Company $0.4 million for reimbursable R&D expenses. There are no further expenses to be reimbursed by Watson.