Restructuring charges

6 Months Ended

Jun. 30, 2011

Restructuring charges [Abstract]

Restructuring charges

7. Restructuring charges

On February 10, 2011, the Company announced that following receipt of the Complete Response letter from the United States Food and Drug Administration (“FDA”) regarding the new drug application (“NDA”) for AFREZZA, it implemented a restructuring to streamline operations, reduce operating expenses, extend the cash runway and focus its resources on securing the FDA’s approval of the NDA for AFREZZA. In connection with the restructuring, the Company reduced its total workforce by approximately 41% to 257 employees. The Company recorded charges of approximately $6.7 million for employee severance and other related termination benefits and recognized a liability of $6.7 million in February, which approximated fair value.

	Workforce
	Reduction
Restructuring Balance, February 11, 2011	$	6,659
Cash payments		(5,482	)
Adjustment		(287	)
Restructuring Balance, June 30, 2011	$	890

During the quarter ended June 30, 2011, the Company adjusted the restructuring balance based on the election of certain termination benefits by a portion of the terminated employees.

The remaining restructuring balance as of June 30, 2011 primarily consists of health benefits which are paid out over six months subsequent to termination.

The net $6.4 million of costs associated with the restructuring are included in “Research and development” and “General and administrative” operating expenses in the condensed consolidated statements of operations as $4.8 million and $1.6 million, respectively, for the six months ended June 30, 2011.