Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2011

Comprehensive Income (Loss) [Abstract]

COMPREHENSIVE INCOME (LOSS)

6. COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss) is the change in equity of a business enterprise from transactions and other events and circumstances from non-owner sources. Excluding net income (loss), the Company’s sources of comprehensive income (loss) were from changes in fair value of available-for-sale securities.

The following summarizes the components of comprehensive income (loss):

	Three Months ended September 30,					Nine Months ended September 30,
	2011			2010		2011			2010
				(In thousands)
				(unaudited)
Net income (loss)	$	22,331		$	596	$	135,136		$	(18,532	)
Other comprehensive income (loss), before taxes:
Unrealized net income (loss) on available-for-sale securities		(14,552	)		7,885		(19,787	)		7,131
Reclassification adjustment for other than temporary impairment of available-for-sale securities included in net income (loss)		389			1,108		1,520			1,108
Total comprehensive income (loss)	$	8,168		$	9,589	$	116,869		$	(10,293	)

The Company accounts for its holdings in NuPathe and Tengion as available-for-sale securities. The Company recorded unrealized net losses of $14.2 million and $18.3 million associated with available-for-sale securities as a separate component of equity in the three and nine months ended September 30, 2011, respectively. The Company reclassified $0.4 million and $1.5 million in unrealized losses associated with Tengion in the three and nine months ended September 30, 2011, respectively, as a result of management’s determination that the security was impaired on an other than temporary basis.

As of September 30, 2011, the Company had recorded a loss in other comprehensive income of $5.5 million associated with its holdings in NuPathe. During the quarter, NuPathe experienced a decline in its stock price below the Company’s adjusted basis. Such decline occurred after the receipt of a Complete Response Letter from the U.S. Food and Drug Administration (“FDA”) regarding the New Drug Application for its migraine patch in August 2011. NuPathe has scheduled an “end-of review” meeting with the FDA for November 2011 and has publicly stated that it believes it has or will shortly have sufficient data to answer the FDA’s questions at which time it will reestablish a timeline for launch of its migraine patch. Given the short period of time the stock price has been below the Company’s adjusted basis, and the Company’s expectations regarding NuPathe, management currently believes that the impairment associated with NuPathe is temporary.