SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2011

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

3. SHARE-BASED COMPENSATION

The Company accounts for share-based compensation arrangements in accordance with SFAS 123R, Share-Based Payment, as codified in FASB ASC topic 718, Compensation—Stock Compensation, or ASC 718.

Total estimated share-based compensation expense, related to all of the Company’s share-based awards, recognized for the three and nine months ended September 30, 2011 and 2010 was comprised as follows (in thousands, except per share data)(unaudited):

	Three Months Ended September 30				Nine Months Ended September 30
	2011		2010		2011		2010
Research and development	$	438	$	301	$	1,506	$	862
General and administrative	1,282		1,372		4,319		3,965
Share-based compensation expense before taxes	1,720		1,673		5,825		4,827
Related income tax benefits	—		—		—		—
Share-based compensation expense, net of taxes	$	1,720	$	1,673	$	5,825	$	4,827
Basic and diluted per common share	$	0.02	$	0.02	$	0.07	$	0.06