Investments

3 Months Ended

Jun. 30, 2011

Investments [Abstract]

INVESTMENTS

3. INVESTMENTS

     Investments consist of the following:

			Gross Unrealized
					Losses
	Amortized				Less than			Greater than			Estimated
	Cost		Gains		One Year			One Year			Fair Value
					(In thousands)
June 30, 2011
Short-term investments:
Available-for-sale securities:
U.S. government and agency debt securities	$	158,567	$	128	$	—		$	—		$	158,695
Corporate debt securities		26,045		49		—			(1	)		26,093
International government agency debt securities		25,657		149		—			—			25,806
		210,269		326		—			(1	)		210,594
Money market funds		1,202		—		—			—			1,202
Total short-term investments		211,471		326		—			(1	)		211,796
Long-term investments:
Available-for-sale securities:
U.S. government and agency debt securities		17,300		—		(132	)		—			17,168
Corporate debt securities		8,012		—		—			(306	)		7,706
International government agency debt securities		6,121		—		(8	)		—			6,113
Strategic investments		644		149		—			—			793
		32,077		149		(140	)		(306	)		31,780
Held-to-maturity securities:
Certificates of deposit		5,440		—		—			—			5,440
U.S. government obligations		417		—		—			—			417
		5,857		—		—			—			5,857
Total long-term investments		37,934		149		(140	)		(306	)		37,637
Total investments	$	249,405	$	475	$	(140	)	$	(307	)	$	249,433
March 31, 2011
Short-term investments:
Available-for-sale securities:
U.S. government and agency debt securities	$	117,298	$	129	$	(1	)	$	—		$	117,426
Corporate debt securities		20,973		48		—			(4	)		21,017
International government agency debt securities		23,048		236		—			—			23,284
		161,319		413		(1	)		(4	)		161,727
Money market funds		1,201		—		—			—			1,201
Total short-term investments		162,520		413		(1	)		(4	)		162,928
Long-term investments:
Available-for-sale securities:
U.S. government and agency debt securities		57,709		—		(804	)		—			56,905
International government agency debt securities		15,281		—		(93	)		—			15,188
Corporate debt securities		15,140		—		(29	)		(328	)		14,783
Strategic investments		644		31		—			—			675
		88,774		31		(926	)		(328	)		87,551
Held-to-maturity securities:
Certificates of deposit		5,440		—		—			—			5,440
U.S. government obligations		417		—		—			—			417
		5,857		—		—			—			5,857
Total long-term investments		94,631		31		(926	)		(328	)		93,408
Total investments	$	257,151	$	444	$	(927	)	$	(332	)	$	256,336

     The Company’s strategic investments include common stock in public companies with which the Company has or had a collaborative arrangement with.

     The proceeds from the sales and maturities of marketable securities, excluding strategic equity investments, which were primarily reinvested and resulted in realized gains and losses, were as follows:

	Three Months Ended June 30,
(In thousands)	2011		2010
Proceeds from the sales and maturities of marketable securities	$	75,240	$	135,917
Realized gains	$	13	$	37
Realized losses	$	1	$	18

     The Company’s available-for-sale and held-to-maturity securities at June 30, 2011 have contractual maturities in the following periods:

	Available-for-sale				Held-to-maturity
	Amortized		Estimated		Amortized		Estimated
(In thousands)	Cost		Fair Value		Cost		Fair Value
Within 1 year	$	146,480	$	146,703	$	5,857	$	5,857
After 1 year through 5 years		89,429		89,153		—		—
After 5 years through 10 years		5,793		5,725		—		—
Total	$	241,702	$	241,581	$	5,857	$	5,857

     At June 30, 2011, the Company believes that the unrealized losses on its available-for-sale investments are temporary. The investments with unrealized losses consist primarily of U.S. government and agency debt securities and corporate debt securities. In making the determination that the decline in fair value of these securities was temporary, the Company considered various factors, including but not limited to: the length of time each security was in an unrealized loss position; the extent to which fair value was less than cost; financial condition and near term prospects of the issuers; and the Company’s intent not to sell these securities and the assessment that it is more likely than not that the Company would not be required to sell these securities before the recovery of their amortized cost basis.

     The Company has an $8.5 million investment in a collaborative partner, Acceleron Pharma, Inc. (“Acceleron”), which is recorded within “Other assets” in the accompanying condensed consolidated balance sheets at June 30, 2011 and March 31, 2011. The Company accounts for its investment in Acceleron under the cost method as Acceleron is a privately-held company over which the Company does not exercise significant influence. The Company will continue to monitor this investment to evaluate whether any decline in its value has occurred that would be other-than-temporary, based on the implied value from any recent rounds of financing completed by Acceleron, market prices of comparable public companies and general market conditions.

     The Company’s investment in Civitas Therapeutics, Inc. (“Civitas”) was $1.2 million and $1.3 million at June 30, 2011 and March 31, 2011, respectively, which is recorded within “Other assets” in the accompanying condensed consolidated balance sheets. The Company accounts for its investment in Civitas under the equity method as the Company has an approximate 11% ownership position in Civitas, has a seat on the board of directors and believes it may be able to exercise significant influence over the operating and financial policies of Civitas. During the three months ended June 30, 2011, the Company reduced its investment in Civitas by $0.1 million, which represented the Company’s proportionate share of Civitas’ net loss for this period.