FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2013

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

	September 30, 2013
	Fair Value Measurements Using
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents: (1)
Money market funds	$	146,595	$	—	$	—	$	146,595
U.S. Treasury securities	59,999		—		—		59,999
Corporate and municipal notes	—		170,217		—		170,217
Short-term and long-term investments: (2)
Bank deposits	—		20,000		—		20,000
U.S. Treasury securities	75,039		—		—		75,039
Corporate and municipal notes	—		352,130		—		352,130
Total assets	$	281,633	$	542,347	$	—	$	823,980
Liabilities
Contingent consideration	$	—	$	—	$	161,372	$	161,372
Total liabilities	$	—	$	—	$	161,372	$	161,372

(1)   Excludes $161.7 million of cash as of September 30, 2013.

(2)   Excludes certificates of deposit of $12.2 million recorded at cost as of September 30, 2013.

Quantitative information associated with fair value measurement of the Company's contingent consideration Level 3 inputs

	Contingent Consideration
	Trius	Adolor	Calixa
Fair value as of September 30, 2013 (in thousands)	$4,879	$80,401	$76,092
Valuation technique	Probability-adjusted discounted cash flow	Probability-adjusted discounted cash flow	Probability-adjusted discounted cash flow
Unobservable input
Probabilities of success - range (weighted average)	4% - 7% (6%)	29% - 54% (43%)	29% - 63% (48%)
Periods in which milestones are expected to be achieved	2016	2016 - 2020	2014 - 2018
Discount rate	8.0%	5.3% / 16%	5.3%

Roll-forward of fair values of contingent consideration that are Level 3 measurements

	Contingent Consideration
	(in thousands)
Beginning balance as of December 31, 2012	$	189,213
Contingent consideration liability recorded upon acquisition of Trius	4,879
Contingent consideration expense	7,280
Contingent consideration milestone payment	(40,000		)
Ending balance as of September 30, 2013	$	161,372