BALANCE SHEET ACCOUNT DETAIL

The composition of selected financial statement captions that comprise the accompanying Condensed Consolidated Balance Sheets are summarized below:

(a) Cash and Cash Equivalents and Marketable Securities

As of June 30, 2016 and December 31, 2015, our holdings included within “cash and cash equivalents” and “marketable securities” were at major financial institutions.

Our investment policy requires that investments in marketable securities be in only highly-rated instruments, which are primarily U.S. treasury bills or U.S. treasury-backed securities, and limited investments in securities of any single issuer. We maintain cash balances in excess of federally insured limits with reputable financial institutions. To a limited degree, the Federal Deposit Insurance Corporation ("FDIC") and other third parties insure these investments. However, these investments are not insured against the possibility of a complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. We manage such risks on our portfolio by investing in highly liquid, highly rated instruments, and limit investing in long-term maturity instruments.

The carrying amount of our equity securities, money market funds, bank certificate of deposits ("Bank CDs"), and mutual funds approximates their fair value (utilizing Level 1 or Level 2 inputs – see Note 2(xiii)) because of our ability to immediately convert these instruments into cash with minimal expected change in value.

The following is a summary of our “cash and cash equivalents” and “marketable securities”:



											Marketable Securities
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents			Current		Long Term
June 30, 2016
Bank deposits	$	75,582	$	—	$	—	$	75,582	$	75,582		$	—	$	—
Money market funds	80,177		—		—		80,177		80,177			—		—
Bank certificates of deposits	247		—		—		247		—			247		—
Total cash and equivalents and marketable securities	$	156,006	$	—	$	—	$	156,006	$	155,759		$	247	$	—
December 31, 2015
Bank deposits	$	59,625	$	—	$	—	$	59,625	$	59,625		$	—	$	—
Money market funds	80,116		—		—		80,116		80,116			—		—
Bank certificates of deposits	245		—		—		245		—			245		—
Total cash and equivalents and marketable securities	$	139,986	$	—	$	—	$	139,986	$	139,741		$	245	$	—

As of June 30, 2016, none of these securities had been in a continuous unrealized loss position longer than one year.

(b) Property and Equipment, Net of Accumulated Depreciation

“Property and equipment, net of accumulated depreciation” consist of the following:



	June 30, 2016			December 31, 2015
Computer hardware and software	$	3,823		$	3,785
Laboratory equipment	622			608
Office furniture	355			355
Leasehold improvements	2,880			2,872
Property and equipment, at cost	7,680			7,620
(Less): Accumulated depreciation	(7,037		)	(6,702		)
Property and equipment, net of accumulated depreciation	$	643		$	918

Depreciation expense (included within “total operating costs and expenses” in the accompanying Condensed Consolidated Statements of Operations) for the six months ended June 30, 2016 and 2015, was $0.3 million and $0.4 million, respectively.

“Inventories” consist of the following:



	June 30, 2016			December 31, 2015
Raw materials	$	2,199		$	1,606
Work-in-process*	7,020			4,228
Finished goods	2,792			1,498
(Less:) Non-current portion of inventories included within "other assets" **	(5,606		)	(3,156		)
Inventories	$	6,405		$	4,176

* In January 2016, we received $3.4 million of ZEVALIN antibody materials for its future manufacture (representing strategic long-term supply).

** The "non-current" portion of inventories is presented within "other assets" in the accompanying Condensed Consolidated Balance Sheet at June 30, 2016. This value of $5.6 million represents product that we expect to sell beyond June 30, 2017.

(d) Prepaid expenses and other assets

“Prepaid expenses and other assets” consist of the following:



	June 30, 2016		December 31, 2015
Prepaid operating expenses	$	2,954	$	3,507
Current portion of debt issuance costs*	—		—
Prepaid expenses and other assets	$	2,954	$	3,507

* Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14) within our accompanying Consolidated Balance Sheets, in accordance with the FASB-issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). These amounts were $1.8 million and $2.2 million (including current and non-current portions) as of June 30, 2016 and December 31, 2015, respectively.

(e) Other receivables

“Other receivables” consist of the following:



	June 30, 2016		December 31, 2015
Income tax receivable	$	1,209	$	1,301
Insurance receivable	350		7,100
Mundipharma promissory note	—		2,215
CASI note - short term*	1,500		—
Eagle receivable for services and support costs (Note 13)	1,939		—
Research and development expenses - reimbursements due	1,699		1,699
Other miscellaneous receivables	271		257
Other receivables	$	6,968	$	12,572

* This full balance was prospectively reclassified beginning March 31, 2016 to "other receivables" (presented within current assets on the accompanying Condensed Consolidated Balance Sheets) from "other assets" (presented within non-current assets) due to this note's maturity date of March 17, 2017 (i.e., within 12 months of June 30, 2016) - see Note 10.

(f) Intangible Assets and Goodwill

“Intangible assets, net of accumulated amortization and impairment charges” consist of the following:



			June 30, 2016
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount		Full Amortization Period (months)	Remaining Amortization Period (months)
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600	n/a	n/a
EVOMELA distribution rights (1)	7,700		(148		)	—			—			7,552		156	153
BELEODAQ distribution rights	25,000		(3,750		)	—			—			21,250		160	136
MARQIBO distribution rights	26,900		(10,703		)	—			—			16,197		81	45
FOLOTYN distribution rights (2)	118,400		(34,498		)	—			—			83,902		152	77
ZEVALIN distribution rights – U.S.	41,900		(32,346		)	—			—			9,554		123	33
ZEVALIN distribution rights – Ex-U.S.	23,490		(13,634		)	(4,006		)	—			5,850		96	45
FUSILEV distribution rights (3)	16,778		(9,618		)	—			(7,160		)	—		56	0
FOLOTYN out-license (4)	27,900		(10,470		)	—			(1,023		)	16,407		110	73
Total intangible assets	$	305,668	$	(115,167	)	$	(4,006	)	$	(8,183	)	$	178,312

(1)

The FDA approval of EVOMELA in March 2016 triggered a $6 million payment due to CyDex Pharmaceuticals, Inc. (a wholly-owned subsidiary of Ligand Pharmaceuticals Incorporated). This event also resulted in a reclassification of our $7.7 million "EVOMELA IPR&D" to "EVOMELA distribution rights" due to our ability to begin its commercialization with this FDA approval. Amortization commenced on April 1, 2016, in accordance with our capitalization policy for intangible assets.


(2)	Beginning June 2016, we adjusted the amortization period of our FOLOTYN distribution rights to November 2022 from March 2025, representing the period through which we expect to have patent protection from generic competition (see Note 16(g)).

(3)

On February 20, 2015, the U.S. District Court for the District of Nevada found the patent covering FUSILEV to be invalid, which was upheld on appeal. On April 24, 2015, Sandoz began to commercialize a generic version of FUSILEV. This represented a “triggering event” under applicable GAAP in evaluating the value of our FUSILEV distribution rights as of March 31, 2015, resulting in a $7.2 million impairment charge (non-cash) in the first quarter of 2015. We accelerated amortization expense recognition in 2015 for the remaining net book value of FUSILEV distribution rights.

(4)

On May 29, 2013, we amended our FOLOTYN collaboration agreement with Mundipharma. As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and their royalty rates and milestone payments to us were modified. This constituted a change under which we originally valued the FOLOTYN out-license as part of business combination accounting, resulting in an impairment charge (non-cash) of $1.0 million in the second quarter of 2013.



			December 31, 2015
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600
EVOMELA IPR&D	7,700		—			—			—			7,700
BELEODAQ distribution rights	25,000		(2,812		)	—			—			22,188
MARQIBO distribution rights	26,900		(8,544		)	—			—			18,356
FOLOTYN distribution rights	118,400		(29,474		)	—			—			88,926
ZEVALIN distribution rights – U.S.	41,900		(30,608		)	—			—			11,292
ZEVALIN distribution rights – Ex-U.S.	23,490		(12,632		)	(4,353		)	—			6,505
FUSILEV distribution rights	16,778		(9,618		)	—			(7,160		)	—
FOLOTYN out-license	27,900		(9,109		)	—			(1,023		)	17,768
Total intangible assets	$	305,668	$	(102,797	)	$	(4,353	)	$	(8,183	)	$	190,335

Intangible asset amortization expense recognized during the six months ended June 30, 2016 was $12.1 million, as compared to $20.9 million of amortization and impairment expense recognized in the prior year period (of which $7.2 million relates to the impairment of the FUSILEV distribution rights, and the remaining $13.7 million relates to scheduled amortization expense).

Estimated intangible asset amortization expense for the remainder of 2016 and the five succeeding fiscal years and thereafter is as follows:



Years Ending December 31,
Remainder of 2016	$	13,810
2017	27,620
2018	27,620
2019	25,014
2020	19,736
2021	18,266
2022 and thereafter	28,646
	$	160,712

“Goodwill” is comprised of the following:



	June 30, 2016			December 31, 2015
Acquisition of Talon (MARQIBO rights)	$	10,526		$	10,526
Acquisition of ZEVALIN Ex-U.S. distribution rights	2,525			2,525
Acquisition of Allos (FOLOTYN rights)	5,346			5,346
Foreign currency exchange translation effects	(400		)	(437		)
Goodwill	$	17,997		$	17,960

(g) Other assets

“Other assets” are comprised of the following:



	June 30, 2016		December 31, 2015
Equity securities and secured promissory note - CASI (see Note 10)*	$	8,300	$	6,689
Supplies and deposits	171		185
2018 Convertible Notes issuance costs (excluding current portion)**	—		—
Executive officer life insurance – cash surrender value	11,478		9,181
Inventories - non-current portion	5,606		3,156
Other miscellaneous assets	45		—
Other assets	$	25,600	$	19,211

* These equity securities were excluded from “marketable securities” (see Note 3(a)) due to our intent to hold these securities for at least one year beyond June 30, 2016, as discussed in Note 10. Unrealized gains from these equity securities were recognized through “unrealized gain on available-for-sale securities" within the Condensed Consolidated Statements of Comprehensive Loss, and were $2.5 million for the six months ended June 30, 2016.

** Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14) within our accompanying Consolidated Balance Sheets, in accordance with ASU 2015-03. These amounts were $1.8 million and $2.2 million (including current and non-current portions) as of June 30, 2016 and December 31, 2015, respectively.

(h) Accounts payable and other accrued liabilities

“Accounts payable and other accrued liabilities” are comprised of the following:



	June 30, 2016		December 31, 2015
Trade accounts payable and other accrued liabilities	$	29,912	$	26,684
Accrued rebates	7,757		18,166
Accrued product royalty	4,372		4,908
Allowance for returns	1,734		1,394
Accrued data and distribution fees	1,983		1,830
Accrued GPO administrative fees	537		1,058
Accrued inventory management fee	412		498
Allowance for chargebacks	1,501		2,001
Accounts payable and other accrued liabilities	$	48,208	$	56,539

Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets specifically for gross-to-net ("GTN") estimates (see Note 2(i)) are as follows:



	Rebates and Chargebacks			Data and Distribution, GPO Fees, and Inventory Management Fees			Returns
Balance as of December 31, 2014	$	45,822		$	8,284		$	1,135
Add: provisions	75,498			15,928			1,486
(Less): credits or actual allowances	(101,153		)	(20,826		)	(1,227		)
Balance as of December 31, 2015	20,167			3,386			1,394
Add: provisions	41,222			6,001			1,018
(Less): credits or actual allowances	(52,131		)	(6,455		)	(678		)
Balance as of June 30, 2016	$	9,258		$	2,932		$	1,734

(i) Deferred revenue

Deferred revenue (current and non-current) is comprised of the following:



	June 30, 2016		December 31, 2015
Mundipharma deferred revenue (see Note 11)	$	2,175	$	—
EVOMELA deferred revenue*	1,622		—
FUSILEV deferred revenue**	—		6,083
Dr. Reddy's out-license (see Note 16(b)(iii))	414		430
Deferred revenue	$	4,211	$	6,513

*We commercialized EVOMELA beginning in April 2016, and have deferred revenue recognition (see Note 2(i)(a)) for any product shipped to our distributors, but not ordered and received by end-users as of June 30, 2016.

**In the third quarter 2015, we deferred revenue recognition related to certain FUSILEV product shipments that did not meet our revenue recognition criteria (see Note 2(i)(a)), aggregating $9.9 million. Specifically, this deferral resulted from our inability to concurrently estimate future rebate values (with requisite precision) offered to our customers in order to compete with generic products. During the fourth quarter of 2015, we recognized $3.8 million for these third quarter shipments, and $6.1 million remained deferred as of December 31, 2015. In the first quarter 2016, this $6.1 million of deferred revenue was recognized in full.

(j) Other long-term liabilities

Other long-term liabilities are comprised of the following:



	June 30, 2016		December 31, 2015
Accrued executive deferred compensation	$	7,672	$	6,458
Deferred rent (non-current portion)	219		248
Clinical study holdback costs, non-current	32		—
Other tax liabilities	738		738
Other long-term liabilities	$	8,661	$	7,444