Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Summary of investments classified as available for sale, and carried at fair value

A summary of our investments as of September 30, 2013, classified as available for sale, and carried at fair value is as follows:

	As of September 30, 2013
(In thousands)	Amortized Cost		Gross unrealized gains in Accumulated OCI		Gross unrealized losses in Accumulated OCI			Gain/(Loss) in Accumulated Deficit		Fair value
Common stock investments, available for sale	$	1,376	$	1,417	$	—		$	—	$	2,793
BZNE Note and conversion feature	1,700		53		—			287		2,040
Neovasc common stock options	925		714		(202		)	181		1,618
U.S. Treasury securities	25,004		—		—			—		25,004
Total assets	$	29,005	$	2,184	$	(202	)	$	468	$	31,455

A summary of our investments as of December 31, 2012, classified as available for sale, and carried at fair value is as follows:

	As of December 31, 2012
(In thousands)	Amortized Cost		Gross unrealized gains in Accumulated OCI		Gross unrealized losses in Accumulated OCI		Gain/(Loss) in Accumulated Deficit			Fair value
Common stock investments, available for sale	$	2,051	$	6,185	$	—	$	—		$	8,236
BZNE Note and conversion feature	1,700		53		—		287			2,040
Neovasc common stock options	925		293		—		176			1,394
Neovasc common stock warrants	659		194		—		(375		)	478
Total assets	$	5,335	$	6,725	$	—	$	88		$	12,148

Financial assets and liabilities measured at fair value on a recurring basis

Our financial assets and liabilities measured at fair value on a recurring basis are as follows:

	Fair value measurements as of September 30, 2013
(In thousands)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)		Total
Assets:
Money market funds	$	116,477	$	—		$	—	$	116,477
U.S. Treasury securities	—		25,004			—		25,004
Certificates of deposit	—		827			—		827
Pharmsynthez Note Receivable and Purchase Option	—		6,755			—		6,755
Common stock investments, available for sale	2,793		—			—		2,793
BZNE Note and conversation feature	—		—			2,040		2,040
Neovasc common stock options	—		1,618			—		1,618
Total assets	$	119,270	$	34,204		$	2,040	$	155,514
Liabilities:
Forward contracts	$	—	$	(25	)	$	—	$	(25	)
Embedded conversion option	—		—			99,823		99,823
Deferred acquisition payments, net of discount	—		—			5,335		5,335
Contingent consideration:
CURNA	—		—			549		549
OPKO Diagnostics	—		—			12,976		12,976
FineTech	—		—			2,862		2,862
Cytochroma	—		—			51,447		51,447
Farmadiet	—		—			1,375		1,375
Total liabilities	$	—	$	(25	)	$	174,367	$	174,342

	Fair value measurements as of December 31, 2012
(In thousands)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Money market funds	$	18,716	$	—	$	—	$	18,716
Certificates of deposit	—		820		—		820
Common stock investments, available for sale	8,236		—		—		8,236
BZNE Note and conversation feature	—		—		2,040		2,040
Neovasc common stock options	—		1,394		—		1,394
Neovasc common stock warrants	—		478		—		478
Total assets	$	26,952	$	2,692	$	2,040	$	31,684
Liabilities:
Forward contracts	$	—	$	10	$	—	$	10
Deferred acquisition payments, net of discount	—		—		10,103		10,103
Contingent consideration:
CURNA	—		—		510		510
OPKO Diagnostics	—		—		12,974		12,974
FineTech	—		—		5,262		5,262
Farmadiet	—		—		1,310		1,310
Total liabilities	$	—	$	10	$	30,159	$	30,169

The carrying amount and estimated fair value of our long-term debt

. The fair value of the Notes is determined using a binomial lattice approach in order to estimate the fair value of the embedded derivative in the Notes. Refer to Note 6.

	September 30, 2013
(In thousands)	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3
Notes	$	109,094	$	110,282	$	—	$	—	$	110,282

Reconcile the beginning and ending balances of Level 3 assets and liabilities

The following tables reconcile the beginning and ending balances of our Level 3 assets and liabilities as of September 30, 2013 and December 31, 2012:

	September 30, 2013
(In thousands)	BZNE Note and conversion feature		Contingent consideration			Deferred acquisition payments, net of discount			Embedded conversion option
Balance at December 31, 2012	$	2,040	$	20,056		$	10,103		$	—
Additions	—		47,710			—			59,204
Total losses (gains) for the period:
Included in results of operations	—		4,204			597			41,818
Conversion of the Notes	—		—			—			(1,199		)
Payments	—		(2,761		)	(5,365		)	—
Balance at September 30, 2013	$	2,040	$	69,209		$	5,335		$	99,823

	December 31, 2012
(In thousands)	BZNE Note and conversion feature			Contingent consideration		Deferred acquisition payments, net of discount
Balance at December 31, 2011	$	—		$	18,002	$	—
Additions	1,700			1,234		9,673
Total losses (gains) for the period:
Included in results of operations	1,563			820		430
Included in Other comprehensive loss	53			—		—
Transfer out to equity method investment	(1,276		)	—		—
Balance at December 31, 2012	$	2,040		$	20,056	$	10,103