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Prepaid expenses and other assets
12 Months Ended
Dec. 31, 2012
Prepaid expenses and other assets  
Prepaid expenses and other assets

Note 4. Prepaid expenses and other assets

        Prepaid expenses and other assets consist of (in thousands):

 
  Balance as of  
 
  December 31,
2012
  December 31,
2011
 

Interest receivable

  $ 743   $ 725  

Prepaid insurance

    6,979     672  

Prepaid sales and marketing expenses

    5,735      

Manufacturing capacity commitment fees

    2,300      

Prepaid medical affairs expenses

    1,782      

Other prepaid expenses and assets

    1,907     396  
           

Total

  $ 19,446   $ 1,793  
           

        The amounts included in prepaid expenses and other assets consist of interest receivable, deposits and prepayments for future services, primarily related to prepaid product commercialization costs for services relating to future periods in support of the commercial launch of Qsymia in the U.S., prepayments related to medical affairs activities for Qsymia and STENDRA, and manufacturing capacity commitment fees, and prepaid insurance. These amounts represent probable future economic benefits obtained or controlled by the Company as a result of past transactions or events, which meet the definition of an asset under FASB Concept Statement 6. As such, these costs have been deferred as prepaid expenses and other assets on the consolidated balance sheet and will be either (i) charged to expense accordingly when the related prepaid services are rendered to the Company, or (ii) converted to cash when the receivables are collected by the Company.