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Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2020	Jul. 31, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-35518
Entity Registrant Name	SUPERNUS PHARMACEUTICALS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-2590184
Entity Address, Address Line One	9715 Key West Avenue
Entity Address, City or Town	Rockville
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20850
City Area Code	301
Local Phone Number	838-2500
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.001 par value per share
Entity Common Stock, Shares Outstanding		52,664,084
Trading Symbol	SUPN
Security Exchange Name	NASDAQ
Entity Central Index Key	0001356576
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 210,975	$ 181,381
Marketable securities	163,839	165,692
Accounts receivable, net	126,559	87,332
Inventories, net	35,338	26,628
Prepaid expenses and other current assets	20,442	11,611
Total current assets	557,153	472,644
Long term marketable securities	358,673	591,773
Property and equipment, net	17,941	17,068
Operating lease assets	21,289	21,279
Finance lease asset	22,479	0
Intangible assets, net	408,272	24,840
Goodwill	88,095	0
Deferred income tax assets	0	32,063
Other assets	17,118	615
Total assets	1,491,020	1,160,282
Current liabilities
Accounts payable	5,515	10,141
Accrued product returns and rebates	144,105	107,629
Accrued expenses and other current liabilities	58,818	34,305
Contingent consideration, current portion	23,500	0
Income taxes payable	25,052	2,443
Operating lease liabilities, current portion	3,560	2,825
Finance lease liability, current portion	4,201	0
Nonrecourse liability related to sale of future royalties, current portion	4,525	3,244
Total current liabilities	269,276	160,587
Convertible notes, net	353,349	345,170
Contingent consideration, long term	92,200	0
Nonrecourse liability related to sale of future royalties, long term	16,455	19,248
Operating lease liabilities, long term	30,108	30,440
Finance lease liability, long term	18,382	0
Deferred income tax liabilities	35,716	0
Other liabilities	9,560	9,409
Total liabilities	825,046	564,854
Stockholders’ equity
Common stock, $0.001 par value; 130,000,000 shares authorized; 52,624,084 and 52,533,348 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	53	53
Additional paid-in capital	398,829	388,410
Accumulated other comprehensive earnings, net of tax	11,359	7,417
Retained earnings	255,733	199,548
Total stockholders’ equity	665,974	595,428
Total liabilities and stockholders’ equity	$ 1,491,020	$ 1,160,282

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized (in shares)	130,000,000	130,000,000
Common stock shares issued (in shares)	52,624,084	52,533,348
Common stock shares outstanding (in shares)	52,624,084	52,533,348

Condensed Consolidated Statements of Earnings - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2020

Jun. 30, 2019

Jun. 30, 2020

Jun. 30, 2019

Revenues

Total revenues

$ 126,729

$ 104,695

$ 221,705

$ 190,169

Costs and expenses

Cost of goods sold

^[1]

8,386

4,044

12,538

7,728

Research and development

22,247

16,970

41,184

32,364

Selling, general and administrative

48,103

39,777

89,717

79,439

Amortization of intangible assets

2,445

1,306

3,706

2,612

Total costs and expenses

81,181

62,097

147,145

122,143

Operating earnings

45,548

42,598

74,560

68,026

Other income (expense)

Interest income

4,151

5,448

9,726

10,137

Interest expense

(5,815)

(5,389)

(11,570)

(11,268)

Other income, net

3,326

3,528

Total other income (expense)

1,662

148

1,684

(1,041)

Earnings before income taxes

47,210

42,746

76,244

66,985

Income tax expense

12,543

10,019

20,059

15,918

Net earnings

$ 34,667

$ 32,727

$ 56,185

$ 51,067

Earnings per share

Basic (in dollars per share)

$ 0.66

$ 0.62

$ 1.07

$ 0.98

Diluted (in dollars per share)

$ 0.65

$ 0.61

$ 1.05

$ 0.95

Weighted-average shares outstanding

Basic (in shares)

52,557,035

52,385,590

52,545,910

52,361,149

Diluted (in shares)

53,645,828

53,912,977

53,611,418

53,947,834

Net product sales

Revenues

Total revenues

$ 123,984

$ 102,358

$ 216,474

$ 185,457

Royalty revenues

Revenues

Total revenues

$ 2,745

$ 2,337

$ 5,231

$ 4,712

[1]	Excludes amortization of acquired intangible assets

Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net earnings	$ 34,667	$ 32,727	$ 56,185	$ 51,067
Other comprehensive earnings
Unrealized gain on marketable securities, net of tax	11,525	4,497	3,942	9,082
Other comprehensive earnings	11,525	4,497	3,942	9,082
Comprehensive earnings	$ 46,192	$ 37,224	$ 60,127	$ 60,149

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Changes in Stockholder's Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Earnings (Loss)	Retained Earnings
Balance (in shares) at Dec. 31, 2018		52,316,583
Balance at Dec. 31, 2018	$ 453,023	$ 52	$ 369,637	$ (3,158)	$ 86,492
Increase (Decrease) in Stockholders' Equity
Share-based compensation	3,287		3,287
Exercise of stock options (in shares)		57,665
Exercise of stock options	783		783
Net earnings	18,340				18,340
Unrealized gain on marketable securities, net of tax	4,585			4,585
Balance (in shares) at Mar. 31, 2019		52,374,248
Balance at Mar. 31, 2019	480,018	$ 52	373,707	1,427	104,832
Balance (in shares) at Dec. 31, 2018		52,316,583
Balance at Dec. 31, 2018	453,023	$ 52	369,637	(3,158)	86,492
Increase (Decrease) in Stockholders' Equity
Net earnings	51,067
Unrealized gain on marketable securities, net of tax	9,082
Balance (in shares) at Jun. 30, 2019		52,449,036
Balance at Jun. 30, 2019	522,904	$ 52	379,369	5,924	137,559
Balance (in shares) at Mar. 31, 2019		52,374,248
Balance at Mar. 31, 2019	480,018	$ 52	373,707	1,427	104,832
Increase (Decrease) in Stockholders' Equity
Share-based compensation	4,022		4,022
Issuance of ESPP shares (in shares)		48,950
Issuance of ESPP shares	1,377		1,377
Exercise of stock options (in shares)		25,838
Exercise of stock options	263		263
Net earnings	32,727				32,727
Unrealized gain on marketable securities, net of tax	4,497			4,497
Balance (in shares) at Jun. 30, 2019		52,449,036
Balance at Jun. 30, 2019	522,904	$ 52	379,369	5,924	137,559
Balance (in shares) at Dec. 31, 2019		52,533,348
Balance at Dec. 31, 2019	595,428	$ 53	388,410	7,417	199,548
Increase (Decrease) in Stockholders' Equity
Share-based compensation	3,988		3,988
Exercise of stock options (in shares)		3,811
Exercise of stock options	32		32
Net earnings	21,518				21,518
Unrealized gain on marketable securities, net of tax	(7,583)			(7,583)
Balance (in shares) at Mar. 31, 2020		52,537,159
Balance at Mar. 31, 2020	613,383	$ 53	392,430	(166)	221,066
Balance (in shares) at Dec. 31, 2019		52,533,348
Balance at Dec. 31, 2019	595,428	$ 53	388,410	7,417	199,548
Increase (Decrease) in Stockholders' Equity
Net earnings	56,185
Unrealized gain on marketable securities, net of tax	3,942
Balance (in shares) at Jun. 30, 2020		52,624,084
Balance at Jun. 30, 2020	665,974	$ 53	398,829	11,359	255,733
Balance (in shares) at Mar. 31, 2020		52,537,159
Balance at Mar. 31, 2020	613,383	$ 53	392,430	(166)	221,066
Increase (Decrease) in Stockholders' Equity
Share-based compensation	4,962		4,962
Issuance of ESPP shares (in shares)		48,650
Issuance of ESPP shares	981		981
Exercise of stock options (in shares)		38,275
Exercise of stock options	456		456
Net earnings	34,667				34,667
Unrealized gain on marketable securities, net of tax	11,525			11,525
Balance (in shares) at Jun. 30, 2020		52,624,084
Balance at Jun. 30, 2020	$ 665,974	$ 53	$ 398,829	$ 11,359	$ 255,733

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net earnings	$ 56,185	$ 51,067
Adjustments to reconcile net earnings to net cash provided by operating activities:
Share-based compensation expense	8,950	7,309
Depreciation and amortization	5,044	3,355
Amortization of premium/discount on marketable securities	984	(1,625)
Amortization of deferred financing costs and debt discount	8,179	7,748
Realized gains from sales of marketable securities	(3,316)	(93)
Noncash interest expense	2,870	2,851
Noncash royalty revenue	(3,918)	(3,368)
Noncash operating lease cost	1,842	1,230
Deferred income tax benefit	(3,062)	861
Changes in operating assets and liabilities:
Accounts receivable	(20,431)	18,439
Inventories	1,689	(365)
Prepaid expenses and other current assets	(4,767)	(3,581)
Other noncurrent assets	(1,176)	(140)
Accounts payable	(7,199)	886
Accrued product returns and rebates	28,298	(11,129)
Accrued expenses and other current liabilities	10,913	(1,307)
Income taxes payable	22,513	(9,703)
Other liabilities	(2,731)	(755)
Net cash provided by operating activities	100,867	61,680
Cash flows from investing activities
Acquisition of USWM, net of cash acquired	(297,200)	0
Investment in Navitor Pharmaceuticals, Inc.	(15,000)	0
Purchases of marketable securities	(15,382)	(264,926)
Sales and maturities of marketable securities	257,936	96,165
Purchases of property and equipment	(3,072)	(245)
Deferred legal fees	(24)	(1)
Net cash used in investing activities	(72,742)	(169,007)
Cash flows from financing activities
Proceeds from issuance of common stock	1,469	2,423
Net cash provided by financing activities	1,469	2,423
Net change in cash and cash equivalents	29,594	(104,904)
Cash and cash equivalents at beginning of year	181,381	192,248
Cash and cash equivalents at end of period	210,975	87,344
Supplemental cash flow information
Cash paid for interest on convertible notes	1,258	1,258
Income taxes paid	607	24,795
Noncash investing and financing activities
Contingent consideration liability accrued in USWM Acquisition	115,700	0
Deferred legal fees and fixed assets included in accounts payable and accrued expenses	365	280
Property and equipment additions from utilization of tenant improvement allowance	0	431
Lease assets and tenant receivable obtained for new leases	$ 24,738	$ 31,727

Organization and Business	6 Months Ended
Organization and Business	Jun. 30, 2020
Organization and Nature of Operations
Organization and Business	Organization and Business Supernus Pharmaceuticals, Inc. (the Company) was incorporated in Delaware, commencing operations in 2005. The Company is a pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases, marketing five products: Oxtellar XR for the treatment of epilepsy; Trokendi XR for the prophylaxis of migraine headache and the treatment of epilepsy; APOKYN and XADAGO for the treatment of Parkinson's disease and MYOBLOC for the treatment of cervical dystonia and sialorrhea. The Company is also developing multiple proprietary CNS product candidates to address significant unmet medical needs and market opportunities. The Company launched Oxtellar XR and Trokendi XR for the treatment of epilepsy in 2013, followed by the launch of Trokendi XR for the prophylaxis of migraine headache in adolescents and adults in 2017. The Company launched Oxtellar XR with an expanded indication to include monotherapy for partial seizures in January 2019. On June 9, 2020, the Company completed the previously announced acquisition of the CNS portfolio of US WorldMeds Partners, LLC (USWM Acquisition). With the acquisition, the Company acquired the right to further develop and commercialize three marketed products and a product candidate in late-stage development. Refer to Note 3 for further discussion on the USWM Acquisition. COVID-19 Impact The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business operations, and has assessed the impact of the COVID-19 pandemic on its condensed consolidated financial statements as of June 30, 2020. Through the first six months of 2020, the impact of the pandemic has had limited effect on the Company's business operations, and no material impact on its condensed consolidated financial statements. Since the situation surrounding the COVID-19 pandemic remains fluid and the duration is uncertain, the long-term nature and extent of the impacts of the pandemic on the Company's business operations and financial position cannot be reasonably estimated at this time.

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (SEC) for interim financial information. As permitted under Generally Accepted Accounting Principles in the United States (U.S. GAAP), certain notes and other information have been omitted from the interim unaudited condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the Company’s most recent Annual Report on Form 10-K, for the year ended December 31, 2019, filed with the SEC. In management’s opinion, the condensed consolidated financial statements include all normal and recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows. The results of operations for any interim period are not necessarily indicative of the Company’s future quarterly or annual results. The Company, which is primarily located in the United States (U.S.), operates in one operating segment. Reclassifications Certain prior year amounts on the condensed consolidated statements of earnings have been reclassified to conform to the current year presentation, including a reclassification made to separately present amortization of intangible assets, previously included in Selling, general and administrative expenses, to the Amortization of intangible assets on the condensed consolidated statements of earnings. These reclassifications had no effect on operating earnings or our other condensed consolidated financial statements for the three and six months ended June 30, 2020 and 2019. Consolidation The Company’s condensed consolidated financial statements include the accounts of: Supernus Pharmaceuticals, Inc.; Supernus Europe Ltd.; Biscayne Neurotherapeutics, Inc.; Biscayne Neurotherapeutics Australia Pty Ltd; MDD US Enterprises, LLC (formerly USWM Enterprises, LLC) and MDD US Enterprises, LLC's wholly owned subsidiaries. These are collectively referred to herein as “Supernus” or “the Company.” All significant intercompany transactions and balances have been eliminated in consolidation. The condensed consolidated financial statements reflect the consolidation of entities in which the Company has a controlling financial interest. In determining whether there is a controlling financial interest, the Company considers if it has a majority of the voting interests of the entity, or if the entity is a variable interest entity (VIE) and whether the Company is the primary beneficiary. In determining the primary beneficiary of a VIE, the Company evaluates whether it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to that VIE. The Company's judgment with respect to its level of influence or control of an entity involves the consideration of various factors including the form of ownership interest, representation in the entity’s governance, the size of the investment, estimates of future cash flows, the ability to participate in policy making decisions and the rights of the other investors to participate in the decision making process and to liquidate the entity, if applicable. If the Company is not the primary beneficiary and an ownership interest is held in the entity, the interest is accounted for under the equity or cost methods of accounting, as appropriate. The Company continuously assesses whether it is the primary beneficiary of a VIE as changes to existing relationships or future transactions may result in changing conclusions. Use of Estimates The Company bases its estimates on: historical experience; forecasts; information received from its service providers; information from other sources; and other assumptions that the Company believes are reasonable under the circumstances. Actual results could differ materially from the Company’s estimates. The Company evaluates the methodologies employed in making its estimates on an ongoing basis. Business Combinations and Contingent Considerations To determine whether acquisitions should be accounted for as a business combination or as an asset acquisition, the Company makes certain judgments as to determine whether the acquired set of activities and assets meets the definition of a business. Significant judgment is required in making the assessment as to whether the acquired processes or activities along with their inputs would be substantive so as to constitute a business, as defined by U.S. GAAP. If the acquired set of activities and assets meets the definition of a business, the Company applies the acquisition method of accounting to that transaction. Otherwise, the transaction is recorded as an asset acquisition and not a business combination. In an asset acquisition, any acquired in-process research and development (IPR&D) that does not have an alternative future use is charged to expense at the acquisition date, and no goodwill is recorded. Under the acquisition method of accounting, assets acquired and liabilities assumed are required to be recorded at their respective fair values as of the acquisition date. The excess of the purchase price over the fair value of the acquired net assets, where applicable, is recorded as goodwill. The operating results of the acquired business is included in the Company’s condensed consolidated statement of earnings beginning on the effective acquisition date. Acquisition-related expenses are recognized separately from the business combination, and are expensed as incurred. Significant judgment is involved in determining the fair values assigned to assets acquired and liabilities assumed in a business combination, as well as the estimated asset lives. These can materially affect our consolidated results of operations. The fair values of intangible assets, including acquired IPR&D, are determined using information available near the acquisition date, based on estimates and assumptions that are deemed reasonable by management. Significant estimates and assumptions include, but are not limited to, probability of technical success, revenue growth and discount rate. Depending on the facts and circumstances, the Company may deem it necessary to engage an independent valuation expert to assist in valuing significant assets and liabilities. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and re-evaluate these estimates and assumptions on a quarterly basis. The Company records any adjustments to the Company’s preliminary estimates to goodwill, provided these adjustments are within the one year measurement period from the acquisition date. Upon the conclusion of the measurement period or subsequent to the final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our condensed consolidated statements of earnings in the period that these adjustments are identified. Contingent Considerations Certain of the Company’s business combinations involve the potential for future payment of consideration that is contingent upon the achievement of certain milestones related to the development and sale of its products; for example, product development milestones and royalty payments on future product sales. The fair value of contingent consideration liabilities is determined at the acquisition date using unobservable inputs. These inputs include the estimated amount and timing of projected cash flows, volatility, the probability of milestone achievement (i.e., achievement of the contingent event) and the estimated discount rates and risk-free rate used to present value the probability-weighted cash flows. Subsequent to the acquisition date, at each reporting period until the contingency is resolved, the contingent consideration liability is remeasured at current fair value, with changes recorded in earnings in the period of remeasurement. Similarly, the determination of initial and subsequent fair value of the contingent consideration liability requires significant judgment by management. Changes in any of the inputs may result in a significantly different fair value adjustment and can impact the results of operations. Additional information regarding the Company's recent business combination and contingent consideration arrangement is included in Note 3, USWM Acquisition. Revenue from Product Sales The Company’s customers are primarily pharmaceutical wholesalers, specialty pharmacies, and distributors. Customers purchase product to fulfill orders from retail pharmacy chains and independent pharmacies of varying size and purchasing power. The Company recognizes gross revenue when its products are physically received by its customers, upon shipment from a third party fulfillment center. The Company's customers take control of its products, including title and ownership, upon physical receipt of its products at their facilities. Customer orders are generally fulfilled within a few days of receipt, resulting in minimal order backlog. The Company does not adjust revenue for any financing effects, for those transactions where the Company expects the period between the transfer of the goods or services and collection to be less than one year. There are no minimum product purchase requirements with our customers. The Company recognizes revenue from product sales in an amount that reflects the consideration the Company expects to receive in exchange for those goods. Product sales are recorded net of various forms of variable consideration, including: provision for estimated rebates; provision for estimated future product returns; and an estimated allowance for discounts. These are collectively considered "sales deductions." As described below, variability in the net transaction price for the Company’s products arises primarily from the aforementioned sales deductions. Significant judgment is required in estimating certain sales deductions. In making these estimates, the Company considers: historical experience; product price increases; current contractual arrangements under applicable payor programs; unbilled claims; processing time lags; inventory levels in the wholesale, specialty pharmacy, and retail distribution channel and product life cycle. The Company adjusts its estimates of revenue either when the most likely amount of consideration it expects to receive changes, or when the consideration becomes fixed. Variable consideration on product sales is only recognized when it is probable that a significant reversal will not occur. If actual results in the future vary from our estimates, the Company adjusts its estimates in that calendar period. These adjustments could materially affect net product sales and earnings in the period that such adjustments are recorded. Sales Deductions The Company records product sales net of the following sales deductions: •Rebates: Rebates are discounts which the Company pays under either public sector or private sector health care programs. Public sector rebate programs encompass: various Medicaid drug rebate programs; Medicare gap coverage programs; programs covering public health service institutions; and programs covering government entities. All federal employees and agencies purchase drugs under the Federal Supply Schedule. Private sector rebate programs include: contractual agreements with managed care providers, under which the Company pays fees to gain access to that provider’s patient drug formulary; and Company sponsored programs, under which the Company defrays or eliminates patient co-payment charges that the patient would otherwise be obligated to pay to their managed care provider in order to fill their prescription. Rebates paid under public sector programs are generally mandated under law, whereas private sector rebates are generally contractually negotiated by the Company with managed care providers. Both types of rebates vary over time. Rebates are owed upon dispensing our product to a patient; i.e., filling a prescription. The accrual balance for rebates consists of the following three components. First, because rebates are generally invoiced and paid quarterly in arrears, the accrual balance consists of an estimate of the amount expected to be incurred for prescriptions dispensed in the current quarter. Second, the accrual balance also includes an estimate for known or estimated prior quarters’ unpaid rebates, covering those prescriptions dispensed in past quarters but for which no invoice has yet been received. Third, the accrual balance includes an estimate for rebates that will be prospectively owed, for prescriptions filled in future quarters. This estimate pertains to product that has been sold by the Company to wholesalers or distributors, and which resides either as wholesaler/distributor inventory or as inventory held at pharmacies. As of the end of the reporting period, this product has not been dispensed to a patient. The Company’s estimates of expected rebate claims vary by program and by type of customer, because the period from the date at which the prescription is filled and the date at which the Company receives and pays the invoice varies substantially. For each of its products, the Company bases its estimates of expected rebate claims on multiple factors, including: historical levels of deductions; contractual terms with managed care providers; actual and anticipated changes in product price; prospective changes in managed care fee for service contracts; prospective changes in co-pay assistance programs; and anticipated changes in program utilization rates; i.e., patient participation rates under each specific program. The Company records an estimated liability for rebates at the time the customer takes title to the product (i.e., at the time of sale to wholesalers/distributors), and records this liability as a reduction to gross product sales. This liability is recorded as an increase in Accrued product returns and rebates, and is reflected in current liabilities on our condensed consolidated balance sheets. The sensitivity of the Company’s estimates varies by program and by type of customer. If actual rebates vary from estimated amounts, the Company will adjust the balances of such accrued rebates to reflect actual experience. These adjustments could materially affect the estimated liability balance, net product sales and earnings in the period in which the adjustment(s) is made. •Returns: Sales of the Company’s products are not subject to a general right of return. Product that has been used to fill patient prescriptions is no longer subject to any right of return. However, the Company will accept return of product that is damaged or defective when shipped from its third party fulfillment center. The Company will accept return of expired product six months prior to and up to 12 months subsequent to the product’s expiry date. Expired or defective returned product cannot be re-sold and is therefore destroyed. The Company records an estimated liability for product returns at the time the customer takes title to the product (i.e., at time of sale). The liability is reflected as a reduction to gross product sales. This liability is recorded as an increase in Accrued product returns and rebates, in current liabilities on our condensed consolidated balance sheets. The Company estimates the liability for returns based primarily on the actual returns experience for its five commercial products. Because the Company’s products have a shelf life up to 60 months from date of manufacture, and because the Company accepts return of product up to 12 months post expiry, there is a significant time lag of several years between the time when the product is sold and the time when the Company issues credit on expired product. The Company’s returns policy generally permits product returns to be processed at current wholesaler price rather than at historical acquisition price. Hence, the Company’s estimated liability for product returns is affected by price increases taken subsequent to the date of sale. When the Company adjusts its estimates for product returns, the adjustment affects the estimated liability, product sales and earnings in the period of adjustment. Those adjustments may be material to our financial results. •Sales discounts: Distributors and wholesalers of the Company's pharmaceutical products are generally offered various forms of consideration, including allowances, service fees and prompt payment discounts, for distributing our products. Distributor and wholesaler allowances and service fees arise from contractual agreements, and are estimated as a percentage of the price at which the Company sells product to them. In addition, distributors and wholesalers are offered a prompt pay discount for payment within a specified period. The Company accounts for these discounts at the time of sale, as a reduction to gross product sales, recording these discounts as a valuation allowance against Accounts receivable on the condensed consolidated balance sheets. Royalty Revenues The Company recognizes noncash royalty revenue for amounts earned pursuant to its royalty agreement with United Therapeutics Corporation (United Therapeutics), based on estimated product sales by United Therapeutics (see Note 4). This agreement includes the right to use the Company’s intellectual property as a functional license. In 2014, the Company sold certain of these royalty rights to Healthcare Royalty Partners III, L.P. (HC Royalty) (see Note 19). Sales of Orenitram by United Therapeutics result in payments made by United Therapeutics to HC Royalty, in accordance with these agreements. Consequent to this agreement, the Company recorded a nonrecourse liability related to this transaction, and amortizes this liability as noncash royalty revenue. The Company also recognizes noncash interest expense related to this liability, and accrues interest expense at an effective interest rate (see Note 18). This interest rate is determined based on projections of HC Royalty’s rate of return. Royalty revenue also includes cash royalty amounts received from other collaboration partners, including from Shire Plc (Shire, a subsidiary of Takeda Pharmaceutical Company Ltd), based on net product sales of Shire's product, Mydayis, in the current period. Royalty revenue is only recognized when the underlying product sale by Shire occurs. The Shire arrangement also includes Shire's right to use the Company’s intellectual property as a functional license. There are no guaranteed minimum amounts owed to the Company related to any of these royalty revenue agreements. Research and Development Expenses and Related Accrued Research and Development Expenses Research and development expenditures are expensed as incurred. These expenses include: employee salaries, benefits and share-based compensation; cost of contract research and development services provided by third parties; costs for conducting preclinical and clinical studies; cost of acquiring or manufacturing clinical trial materials; regulatory costs; facilities costs; depreciation expense and allocated expenses; and license fees and milestone payments related to in-licensed products and technologies. Assets acquired that are used for research and development and that have no future alternative use are expensed as in-process research and development as incurred. The Company estimates preclinical and clinical trial expenses based on services performed pursuant to contracts with research institutions, clinical investigators, clinical research organizations (CROs) and other service providers that provide services on the Company’s behalf. In recording service fees, the Company estimates the cost of those services which have been performed on behalf of the Company during the current period, and compares those costs with the cumulative expenses recorded and cumulative payments made for such services. As appropriate, the Company accrues additional service fees for services that have been delivered, or defers nonrefundable advance payments until the related services are performed. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company adjusts its accrued expenses or its deferred advance payments, accordingly. If the Company subsequently determines that it no longer expects the services associated with a nonrefundable advance payment to be rendered, the remaining portion of that advance payment is charged to expense in the period in which such a determination is made. Marketable Securities Marketable securities consist of investments in: U.S. Treasury bills and notes; bank certificates of deposit; various U.S. governmental agency debt securities; corporate and municipal bonds; and other fixed income securities. The Company places all investments with governmental, industrial or financial institutions whose debt is rated as investment grade. The Company's investments are classified as available-for-sale and are carried at fair value. The Company classifies all available-for-sale marketable securities with maturities greater than one year from the balance sheet date as non-current assets. Any unrealized holding gains or losses on debt securities are reported, net of any tax effects, as a component of other comprehensive earnings (loss) in the condensed consolidated statement of comprehensive earnings. Realized gains and losses, included in Other income (expense), net in the condensed consolidated statement of earnings, are determined using the specific identification method for determining the cost of securities sold. The Company adopted Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) on January 1, 2020, using the allowance approach. Declines in fair value below amortized cost related to credit losses (i.e., impairment due to credit losses), if any, are included in the condensed consolidated statement of earnings, with a corresponding allowance established. If the estimate of expected credit losses decreases in subsequent periods, the Company will reverse the credit losses through current period earnings, and accordingly adjust the allowance (see Recently Issued Accounting Pronouncements). Inventories Inventories, which are recorded at the lower of cost or net realizable value, include materials, labor, direct costs and indirect costs. These are valued using the first-in, first-out method. The Company writes down inventory that has become obsolete, or has a cost basis in excess of its expected net realizable value. Expired inventory is disposed of, and the related costs are recognized as Cost of goods sold in the condensed consolidated statement of earnings. Inventories Produced in Preparation of Product Launches The Company capitalizes inventories produced in preparation for product launches when future commercialization of a product is probable and when future economic benefit is expected to be realized. The determination to capitalize is based on the particular facts and circumstances relating to the product. Capitalization of such inventory begins when the Company determines that (i) positive results have been obtained for the clinical trials that are necessary to support regulatory approval; (ii) uncertainties regarding regulatory approval have been significantly reduced; and (iii) it is probable that these capitalized costs will provide future economic benefit in excess of capitalized costs. In evaluating whether these conditions are met, the Company considers the following factors: the product candidate’s current status in the regulatory approval process; results from the related pivotal clinical trials; results from meetings with relevant regulatory agencies prior to the filing of regulatory applications; compilation of the regulatory applications; consequent acceptance by the regulatory body; potential impediments to the approval process, such as product safety or efficacy concerns, potential labeling restrictions, and other impediments; historical experience with manufacturing and commercializing similar products as well as the relevant product candidate; and the resilience of the Company’s manufacturing environment, including its supply chain, in determining logistical constraints that could hamper approval or commercialization. In assessing the economic benefit that the Company is likely to realize, the Company considers: the shelf life of the product in relation to the expected timeline for approval; patent related or contract issues that may prevent or delay commercialization; product stability data of all pre-approval production to determine whether there is adequate expected shelf life; viability of commercialization, taking into account competitive dynamics in the marketplace and market acceptance; anticipated future sales; and anticipated reimbursement strategies that may prevail with respect to the product, if approved. In applying the lower of cost or net realizable value to pre-launch inventory, the Company estimates a range of likely commercial prices based on comparable commercial products and pre-launch discussions with managed care providers. The Company could be required to write down previously capitalized costs related to pre-launch inventories upon a change in such judgment(s), due to, among other potential factors, a denial or significant delay of approval by regulatory bodies, a delay in commercialization, or other adverse factors. Intangible Assets Intangible assets consist of definite-lived intangible assets, including: acquired developed technology and product rights intangible, and patent defense costs. They also consist of indefinite-lived intangible assets, such as acquired IPR&D and goodwill. Patent defense costs are deferred legal fees that have been incurred in connection with legal proceedings related to the defense of patents for Oxtellar XR and Trokendi XR. Patent defense costs are charged to expense in the event of an unsuccessful outcome of the litigation. Definite-lived intangible assets are carried at cost less accumulated amortization, with amortization calculated on a straight line basis over the estimated useful lives. The Company evaluates the estimated remaining useful lives of its intangible assets annually or when events or changes in circumstances warrant a revision to the remaining periods of amortization. Indefinite-lived intangible assets are not amortized but tested for impairment annually. Acquired IPR&D in a business combination is considered to be indefinite-lived until the completion or abandonment of the associated research and development efforts. Upon successful completion of the project, the Company will make a determination as to the then-useful life of the intangible asset, generally determined by the period in which the substantial majority of the cash flows are expected to be generated. The capitalized amount is then amortized over its estimated useful life. If a project is abandoned, all remaining capitalized amounts are written off immediately. During the period prior to completion or abandonment, the IPR&D asset will not be amortized but will be tested for impairment on an annual basis. Goodwill Impairment Assessment The Company evaluates goodwill for possible impairment at least annually during the fourth quarter of each fiscal year, or more often, if and when circumstances indicate that goodwill may be impaired. This includes but is not limited to significant adverse changes in the business climate, market conditions, or other events that indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value. In performing its annual goodwill assessment, the Company first performs a qualitative test. If necessary, the Company then performs a quantitative test. To conduct the quantitative impairment test of goodwill, the Company compares the fair value of a reporting unit to its carrying value. Evaluating for impairment requires judgment, including estimating future cashflows. The Company estimates the fair values of its reporting unit using discounted cash flow models or other valuation models, such as comparative transactions and market multiples. If the reporting unit’s carrying value exceeds its fair value, the Company records an impairment loss to the extent that the carrying value of goodwill exceeds its implied fair value. Impairment of Long Lived Assets Long-lived assets consist primarily of property and equipment, operating lease assets and intangible assets. The carrying value of intangible assets is assessed for impairment annually during the fourth quarter of each year, or more frequently if impairment indicators exist. Impairment indicators include but are not limited to adverse changes in circumstances or other events that indicate the carrying amount of an asset may not be recoverable. Evaluating for impairment requires judgment, including estimating future cash flows, future growth rates and profitability, and the expected life over which cash flows will occur. For IPR&D assets, the Company also considers various factors and risks for potential impairment, including the current legal and regulatory environment and the competitive landscape. Adverse clinical trial results, significant delays, or inability to obtain governmental approval, inability to commercialize the product candidate, and the introduction or advancement of competitor products and product candidates could result in partial or full impairment of the related intangible asset. Consequently, the eventual realized value of the IPR&D asset may vary from its fair value at the date of acquisition, and impairment charges may occur in future periods. Changes in the Company's business strategy or adverse changes in market conditions could adversely affect impairment analyses. If indications of impairment exist, projected future undiscounted cash flows associated with the asset are compared to the carrying value of the asset, to determine whether the asset's value is recoverable. If impairment is determined, the Company writes down the asset to its estimated fair value; i.e., the Company recognizes an impairment charge equal to the excess of the carrying value of the long-lived asset over its estimated fair value at the time at which a determination is made. Share-Based Compensation Stock Options The Company recognizes share-based compensation expense over the service period, using the straight-line method. Employee share-based compensation for stock options is measured based on estimated fair value as of the grant date, using the Black-Scholes option-pricing model, to compute the fair value of option grants as of the grant date. Forfeitures are accounted for as they occur. The Company uses the following assumptions for estimating the fair value of option grants: Fair Value of Common Stock—The fair value of common stock underlying the option grants is determined based on observable market prices of the Company’s common stock. Expected Volatility—Volatility is a measure of the amount by which the Company’s share price has historically fluctuated and is expected to fluctuate (i.e., expected volatility) in the future. Dividend Yield—The Company has never declared or paid dividends, and has no plans to do so in the foreseeable future. Dividend yield is therefore zero. Expected Term—This is the period of time during which options are expected to remain unexercised. Options have a maximum contractual term of ten years. Risk-Free Interest Rate—This is the observed U.S. Treasury Note rate, as of the week each option grant is issued, with a term that most closely resembles the expected term of the option. Restricted Stock Units (RSUs) Compensation expense is recorded based on amortizing the fair market value as of the date of the grant over the implied service period. RSUs generally vest one year from the date of the grant and are subject to continued service requirements. Performance Stock Units (PSUs) Performance-Based Awards Compensation expense for performance-based awards is recognized based on amortizing the fair market value as of the grant date over the periods during which the achievement of the performance is probable. Performance-based PSU awards require certain performance targets to be achieved in order for these awards to vest. Each award vests on the date of achievement of the performance target. Market-Based Awards Compensation expense for market-based awards is recognized on a straight-line basis over the requisite service period, regardless of whether the market condition is satisfied. Market-based PSU awards subject to market-based performance targets require achievement of the performance target in order for these units to vest. The Company estimates the fair value of these awards as of the grant date using a Monte Carlo simulation that incorporates option-pricing inputs. This simulation covers the period from the grant date through the end of the derived requisite service period. The expected volatility as of the grant date is estimated based on historical daily volatility of the Company's common stock over the expected term of the award. The risk-free interest rate is based on the U.S. Treasury Note rate, as of the week the award is issued, with a term that most closely resembles the expected term of the award. Advertising Expense Advertising expense includes the cost of promotional materials and activities, such as printed and digital marketing materials, marketing programs and speaker programs. The cost of the Company's advertising efforts are expensed as incurred. The Company incurred approximately $10.9 million and $22.5 million in advertising costs for the three and six months ended June 30, 2020, respectively, and approximately $11.2 million and $21.2 million in advertising costs for the three and six months ended June 30, 2019, respectively. These expenses are recorded as a component of Selling, general and administrative expenses in the condensed consolidated statements of earnings. Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases for assets and liabilities. These differences are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. When appropriate, valuation allowances are established to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for uncertain tax positions in its consolidated financial statements when it is more-likely-than-not that the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be estimated as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authorities, based on full knowledge of the position and relevant facts. The Company's policy is to recognize any interest and penalties related to income taxes as income tax expense in the relevant period. Recently Issued Accounting Pronouncements Accounting Pronouncements Adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) - The new standard, issued in July 2016, requires credit losses on financial assets to be measured as the net amount expected to be collected, rather than based on incurred losses. For available-for-sale debt securities, the new standard did not revise the definition of impairment; i.e., the investment is impaired if the fair value of the investment is less than its cost. It also did not revise the requirement under ASC 320 for an entity to recognize, in net income, only the impairment amount related to credit risk, and to recognize, in other comprehensive income, the noncredit impairment amount. The new standard made certain targeted changes to the impairment of available-for-sale debt securities, to eliminate the concept of "other than temporary" from the impairment model. Targeted changes to the impairment model included recognition of credit losses on available-for-sale debt securities using the allowance method, and limiting the allowance to the amount by which fair value is below amortized cost. The new standard also requires enhanced disclosure of credit risk associated with respective assets. The Company adopted the new standard effective January 1, 2020 using the modified retrospective approach. The adoption of the standard did not have a material impact on its condensed consolidated financial statements. ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract - The new standard, issued in August 2018, aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or to obtain internal-use software. This includes hosting arrangements that include an internal-use software license. This ASU also requires that the implementation costs of a hosting arrangement that is a service contract are expensed over the term of the hosting arrangement, which includes reasonably certain renewals. The Company adopted the new standard effective January 1, 2020 using the prospective transition approach. The adoption of the standard did not have a material impact on its condensed consolidated financial statements. ASU 2018-18, Clarifying the Interaction Between Topic 808 and Topic 606 - The new standard, issued in November 2018, clarifies when transactions between participants in a collaborative arrangement are within the scope of Topic 606. The Company adopted the new standard effective January 1, 2020. The adoption of the standard did not have a material impact on its condensed consolidated financial statements. ASU 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820) - The new standard, issued in August 2018, improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies and adds certain disclosure requirements. The Company adopted the new standard effective January 1, 2020. The adoption of the standard did not have a material impact on its condensed consolidated financial statements. New Accounting Pronouncements Not Yet Adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes - The new standard, issued in December 2019, simplifies the accounting for income taxes. This guidance will be effective on January 1, 2021 on a prospective basis, with early adoption permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. It will adopt the new standard effective January 1, 2021. ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity - The new standard, issued in August 2020, simplifies the accounting and disclosures for convertible instruments and contracts in an entity's own equity. This guidance will be effective on January 1, 2022 on a prospective basis, with early adoption permitted but no earlier than January 1, 2021. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. It will adopt the new standard effective January 1, 2022.

USWM Acquisition

6 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

USWM Acquisition

On June 9, 2020 (the Closing Date), the Company completed its acquisition of all of the outstanding equity of USWM Enterprises, LLC (USWM Enterprises), a privately-held biopharmaceutical company, pursuant to a Sale and Purchase Agreement with US WorldMeds Partners, LLC (Seller), dated April 28, 2020 (the Agreement). Under the terms of the Agreement, the Company specifically acquired the right to further develop and commercialize APOKYN, XADAGO and the Apomorphine Infusion Pump in the U.S. and MYOBLOC worldwide (the Products). The Company paid the Seller $297.2 million in cash. For the three and six months ended June 30, 2020, the Company incurred transaction costs of $7.4 million and $8.3 million, respectively, to complete the acquisition which were included in Selling, general and administrative expense in the condensed consolidated statements of earnings.

Contingent payments of up to $230.0 million are due to the Seller upon the achievement of certain milestones related to the development and sale of the Products. In connection therewith, the Company recorded a contingent consideration liability of $115.7 million as of the date of acquisition to reflect the estimated fair value of the contingent consideration. The estimated fair value of the contingent consideration was determined using the Monte Carlo simulation for the sales-based milestones and income approach for the other milestones. The key assumptions considered include the estimated amount and timing of projected cash flows, probability of milestone achievement, volatility, estimated discount rates and risk-free interest rate. In each reporting period after the acquisition, the Company will revalue the contingent consideration liability and will record increases or decreases in the fair value of the liability in its consolidated statements of earnings. Changes in fair value will result from changes in actual and projected milestone achievement, as well as changes to forecasts. The inputs and assumptions may not be observable in the market, but reflect the assumptions the Company believes would be made by a market participant. The possible outcomes for the contingent consideration range from $0 to $230.0 million on an undiscounted basis.

The acquisition is being accounted for as a business combination under the acquisition method of accounting, in accordance with ASC 805, Business Combinations. The allocation of the purchase price to the assets acquired and liabilities assumed, including the residual amount allocated to goodwill, is based upon preliminary information. The allocation of the purchase price is subject to change within the measurement period (up to one year from the Closing Date) as additional information concerning final asset and liability valuations is obtained. During the measurement period, if the Company obtains new information about facts and circumstances that existed as of the Closing Date that, if known, would have resulted in revised estimated values of those assets or liabilities, the Company will revise the preliminary purchase price allocation. The effect of measurement period adjustments on the estimated fair value elements will be reflected as if the adjustments had been completed as of the Closing Date. Any changes to the initial estimates of the fair value of assets and liabilities will be recorded as adjustments to those assets and liabilities. Residual amounts will be allocated to goodwill. The impact of all changes that do not qualify as measurement period adjustments will be included in current period earnings.

The Company expects to finalize its purchase price allocation within one year of the Closing Date. In addition, The Company continues to analyze and assess relevant information necessary to determine, recognize and record at fair value the assets acquired and liabilities assumed in the following areas: intangible assets, lease assets and liabilities, tax assets and liabilities, and certain existing or potential reserves, including those for legal or contract-related matters. The activities the Company is currently undertaking, include but are not limited to the following: review of acquired contracts and other contract-related and legal matters; review and evaluation of the accounting policies, tax positions, and other tax-related matters. Further, the Company is in the process of obtaining input from third party valuation firms with respect to the fair value of the acquired tangible and intangible assets, and other information necessary to record and measure the assets acquired and liabilities assumed. Accordingly, the preliminary recognition and measurement of assets acquired and liabilities assumed as of Closing Date are subject to change.

The following preliminary purchase price allocation table presents the Company’s preliminary estimates of the fair value of the assets acquired and liabilities assumed at the Closing Date (dollars in thousands):


Cash and cash equivalents	$	6,994
Accounts receivable	18,474
Inventories	10,400
Prepaid expenses and other current assets	3,564
Property and equipment	454
Finance lease asset⁽¹⁾	22,747
Intangible assets	387,000
Other assets	340
Total fair value of assets acquired	449,973
Accounts payable	(2,573)
Accrued expenses and other current liabilities	(23,339)
Finance lease liability⁽¹⁾	(22,747)
Deferred income tax liabilities	(69,515)
Total fair value of liabilities assumed	(118,174)
Total identifiable net assets	$	331,799
Goodwill	88,095
Total purchase price	$	419,894

Cash consideration paid⁽²⁾	$	297,200

______________________________________________________________

⁽¹⁾ Refer to Note 10 for further discussion of the acquired finance lease asset and assumed lease liability.

⁽²⁾ Represents total purchase price, less cash and cash equivalents acquired and contingent consideration liabilities recorded at the Closing Date

The Company determined the fair value of the inventory using the comparative sales method, which estimates the expected sales price of the product, reduced by all costs expected to be incurred to complete or dispose of the inventory, with a profit on sale.

The acquired intangible assets include an intangible asset associated with the IPR&D related to an infusion pump product candidate and intangible assets associated with the acquired developed technology and product rights. The Company determined the estimated fair values for the acquired intangible assets as of the Closing Date using the income approach. This is a valuation technique that provides an estimate of fair value of the assets, based on the market participant's expectations of the cash flows that the assets are forecasted to generate. The cash flows were discounted at a rate commensurate with the level of risk associated with its projected cash flows. The projected cash flows from these intangible assets were based on various assumptions, including: estimates of revenues, expenses, and operating profits; and risks related to the viability of and potential alternative treatments for any future target markets. In addition to the aforementioned factors, the Company also considered the following factors specific to the valuation of the IPR&D: the stage of development as of the Closing Date; the time and resources needed to complete the development and regulatory approval of the product candidate; the inherent difficulties and uncertainties in developing a product candidate, such as obtaining marketing approval from the U.S. Food and Drug Administration and other regulatory agencies; the economic life of the potential commercialized product; and associated commercialization risks. The Company believes the assumptions are representative of those a market participant would use in estimating fair value.

Acquired intangible assets, excluding the acquired IPR&D, will be amortized over their estimated useful lives on a straight-line basis. IPR&D assets are considered to be indefinite-lived until the completion or abandonment of the associated research and development efforts. The following table summarizes the preliminary purchase price allocation, and the preliminary average remaining useful lives, for identifiable intangible assets acquired (dollars in thousands):


	Estimated Fair Value		Estimated Useful Lives (in years)
Acquired In-process Research & Development	$	150,000	n/a
Acquired Developed Technology and Product Rights	237,000		10.5 - 12.5
Total intangible assets	$	387,000

Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from the other assets acquired that could not be individually identified and separately recognized. Goodwill is primarily attributable to the additional growth platforms and an expanded revenue base with the addition of the commercial and late-stage CNS assets from the USWM Acquisition. The goodwill is not expected to be deductible for tax purposes.

The operations of MDD US Enterprises and its subsidiaries have been included in the Company's condensed consolidated statements of earnings for the period subsequent to the Closing Date, and through June 30, 2020. Total revenues of $10.6 million and net earnings of $1.7 million were recorded for the three and six months ended June 30, 2020.

The following table presents the unaudited pro forma combined financial information for each of the periods presented, as if the USWM Acquisition had occurred on January 1, 2019 (dollars in thousands):


	Three Months ended June 30,						Six Months ended June 30,
	2020		2019		2020		2019
	(unaudited)						(unaudited)
Pro forma total revenues	$	151,803	$	142,238	$	284,965	$	260,542
Pro forma net earnings	38,841		34,940		61,959		44,254

The unaudited pro forma combined financial information is based on historical financial information and the Company's preliminary allocation of purchase price; therefore, it is subject to subsequent adjustment upon finalization of the purchase price allocation. In order to reflect the occurrence of the acquisition on January 1, 2019, the unaudited pro forma combined financial information reflects the adoption of ASC 842, Leases; the recognition of additional amortization expense, net of removal of historical amortization charges, related to the acquired intangible assets; and the elimination of non-recurring acquisition-related transaction costs of $10.1 million incurred from the fourth quarter of 2019 through the second quarter of 2020. The unaudited pro forma combined financial information should not necessarily be considered indicative of the results that would have occurred if the acquisition had been consummated on the assumed completion date, nor are they indicative of future results.

Disaggregated Revenues

6 Months Ended

Jun. 30, 2020

Disaggregation of Revenue [Abstract]

Disaggregated Revenues

The following table summarizes the disaggregation of revenues by nature, (dollars in thousands):


	Three Months ended June 30,						Six Months ended June 30,
	2020		2019		2020		2019
	(unaudited)						(unaudited)
Net product sales
Trokendi XR	$	89,674	$	78,964	$	158,225	$	142,657
Oxtellar XR	23,680		23,394		47,619		42,800
APOKYN	8,600		—		8,600		—
XADAGO	801		—		801		—
MYOBLOC	1,229		—		1,229		—
Total net product sales	$	123,984	$	102,358	$	216,474	$	185,457
Royalty revenues	2,745		2,337		5,231		4,712
Total revenues	$	126,729	$	104,695	$	221,705	$	190,169

Trokendi XR accounted for 73% and 77% of the Company’s total net product sales for the six months ended June 30, 2020 and 2019, respectively.

The Company recognized noncash royalty revenue of $2.3 million and $3.9 million for the three and six months ended June 30, 2020, respectively. The Company recognized noncash royalty revenue of $1.8 million and $3.4 million, for the three and six months ended June 30, 2019, respectively.The Company ceased production and distribution of all commercial blister pack configurations for Trokendi XR in 2017. Subsequent to ceasing blister pack production and distribution in 2017, the observed rate of product return for all blister pack configurations of Trokendi XR steadily declined over time. This return rate trend was established over a multi-year period. However, in the first quarter of 2020, the return rate for the final blister pack lots of Trokendi XR produced in 2017 exhibited a return rate significantly higher than had been experienced with all previous lots. The lots for which a higher return rate was observed are the last lots which were produced and distributed commercially. As a result, the Company changed its estimate of the provision for product returns, based on the most recent experience. This change in estimate resulted in an increase to the provision for product returns of $8.0 million, a decrease in net product sales of $8.0 million and a decrease in net earnings of $5.9 million, or $0.11 per basic and per diluted share for the three months ended March 31, 2020.

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The fair value of an asset or liability represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

The Company reports assets and liabilities measured at fair value using a three level hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows:

•Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets. The Company has the ability to access these prices as of the measurement date.

Level 1 assets include: cash held at banks; certificates of deposit; money market funds; investment grade corporate debt securities and U.S. government agency and municipal debt securities.

•Level 2—Level 2 securities are valued using third-party pricing sources that apply relevant inputs and data in their models to estimate fair value. Inputs are quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; inputs other than quoted prices but that are observable for the asset or liability (e.g., interest rates; yield curves); and inputs that are derived principally from or corroborated by observable market data, by correlation, or by other means (i.e., market corroborated inputs).

Level 2 assets include: investment grade corporate debt securities, U.S. government agency and municipal debt securities; other fixed income securities; and SERP (Supplemental Executive Retirement Plan) assets. The fair value of the restricted marketable securities is recorded in Other assets on the condensed consolidated balance sheets.

•Level 3—Unobservable inputs that reflect the Company’s own assumptions. These are based on the best information available, including the Company’s own data.

Financial Assets

The Company’s financial assets that are required to be measured at fair value on a recurring basis are as follows (dollars in thousands):


			Fair Value Measurements at June 30, 2020 (unaudited)
	Total Fair Value at June 30, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents
Cash	$	183,703	$	183,703	$	—
Money market funds	27,272		27,272		—
Marketable securities
Corporate debt securities	163,839		—		163,839
Municipal debt securities	—		—		—
Long term marketable securities
Corporate debt securities	353,659		259		353,400
U.S. government agency debt securities	5,014		—		5,014
Other noncurrent assets
Marketable securities - restricted (SERP)	431		1		430
Total assets at fair value	$	733,918	$	211,235	$	522,683


			Fair Value Measurements at December 31, 2019
	Total Fair Value at December 31, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents
Cash	$	78,912	$	78,912	$	—
Money market funds	102,469		102,469		—
Marketable securities
Corporate debt securities	165,527		—		165,527
Municipal debt securities	165		—		165
Long term marketable securities
Corporate debt securities	571,828		254		571,574
U.S. government agency and municipal debt securities	19,945		—		19,945
Other noncurrent assets
Marketable securities - restricted (SERP)	418		3		415
Total assets at fair value	$	939,264	$	181,638	$	757,626

There were no level 3 assets as of June 30, 2020 or December 31, 2019.

The carrying amounts of other financial instruments, including accounts receivable, accounts payable and accrued expenses approximate fair value due to their short-term maturities.

Unrestricted available-for-sale marketable securities held by the Company are as follows, (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
Corporate and U.S. government agency and municipal debt securities
Amortized cost	$	507,375	$	747,598
Gross unrealized gains	15,525		10,031
Gross unrealized losses	(388)		(164)
Total fair value	$	522,512	$	757,465

The contractual maturities of the unrestricted available-for-sale marketable securities held by the Company are as follows, (dollars in thousands):


	June 30, 2020
	(unaudited)
Less than 1 year	$	163,839
1 year to 2 years	143,987
2 years to 3 years	149,688
3 years to 4 years	64,998
Greater than 4 years	—
Total	$	522,512

As of June 30, 2020, there was no impairment due to credit loss on any available-for-sale marketable securities.

Financial Liabilities

As of June 30, 2020, the Company had Level 3 liabilities related to contingent consideration from the USWM Acquisition. The contingent consideration liabilities are required to be measured at fair value on a recurring basis. Refer to Note 3 for further discussion of significant inputs and assumptions used for the valuation of the contingent consideration at acquisition date. The fair value of the contingent consideration at June 30, 2020 was $115.7 million.

The following table sets forth the Company’s financial liabilities that are not carried at fair value, (dollars in thousands):


	June 30, 2020						December 31, 2019
	(unaudited)
	Carrying Value		Fair Value (Level 2)		Carrying Value		Fair Value (Level 2)
Convertible notes, net	$	353,349	$	356,213	$	345,170	$	366,023

The fair value is estimated based on actual trading information, as well as quoted prices provided by bond traders.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Convertible Senior Notes Due 2023

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Convertible Senior Notes Due 2023

The 0.625% Convertible Senior Notes Due 2023 (2023 Notes), which were issued in March 2018, bear interest at an annual rate of 0.625%, payable semi-annually in arrears on April 1 and October 1 of each year. The 2023 Notes will mature on April 1, 2023, unless earlier converted or repurchased by the Company. The Notes are being amortized to interest expense at an effective interest rate of 5.41% over the contractual term of the 2023 Notes. The Company may not redeem the 2023 Notes at its option before maturity. The total principal amount of 2023 Notes is $402.5 million.

The 2023 Notes were issued pursuant to an Indenture between the Company and Wilmington Trust, National Association, as trustee. The Indenture includes customary terms and covenants, including certain events of default upon which the 2023 Notes may be due and payable immediately. The Indenture does not contain any financial or operating covenants or restrictions on the payment of dividends, the issuance of other indebtedness or the issuance or repurchase of securities by the Company.

The Company will settle conversions by paying or delivering, as applicable, cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at its election, based on the applicable conversion rate. The initial conversion rate is 16.8545 shares per $1,000 principal amount of the 2023 Notes, which represents an initial conversion price of approximately $59.33 per share, and is subject to adjustment as specified in the Indenture. In the event of

conversion, if converted in cash, the holders would forgo all future interest payments, any unpaid accrued interest and the possibility of further stock price appreciation.

If a “make-whole fundamental change,” as defined in the Indenture, occurs, then the Company will in certain circumstances increase the conversion rate for a specified period of time. If a “fundamental change,” as defined in the Indenture occurs, then noteholders may require the Company to repurchase their 2023 Notes at a cash repurchase price equal to the principal amount of the 2023 Notes to be repurchased, plus accrued and unpaid interest, if any.

Contemporaneous with the issuance of the 2023 Notes, the Company also entered into separate privately negotiated convertible note hedge transactions (collectively, the Convertible Note Hedge Transactions) with each of the call spread counterparties. The Company issued 402,500 convertible note hedge options. In the event that shares or cash are deliverable to holders of the 2023 Notes upon conversion at limits defined in the Indenture, counterparties to the convertible note hedges will be required to deliver up to approximately 6.8 million shares of the Company’s common stock, or to pay cash to the Company in a similar amount as the value that the Company delivers to the holders of the 2023 Notes, based on a conversion price of $59.33 per share.

Concurrently with entering into the Convertible Note Hedge Transactions, the Company also entered into separate privately negotiated warrant transactions (collectively, the Warrant Transactions) with each of the call spread counterparties. The Company issued a total of 6,783,939 warrants. The warrants entitle the holder to one share per warrant. The strike price of the Warrant Transactions will initially be $80.9063 per share of the Company’s common stock, and is subject to adjustment.

The Convertible Note Hedge Transactions are expected to reduce the potential dilution of the Company’s common stock upon conversion of the 2023 Notes, and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted 2023 Notes, as the case may be. The Warrant Transactions are intended to partially offset the cost to the Company of the purchased Convertible Note Hedge Transactions; however, the Warrant Transactions could have a dilutive effect with respect to the Company’s common stock to the extent that the market price per share of the Company’s common stock, as measured under the terms of the Warrant Transactions, exceeds the strike price of the warrants.

The liability component of the 2023 Notes consists of the following, (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
2023 Notes	$	402,500	$	402,500
Unamortized debt discount and deferred financing costs	(49,151)		(57,330)
Total carrying value	$	353,349	$	345,170

No 2023 Notes were converted as of June 30, 2020 or December 31, 2019.

Share-Based Payments

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Share-Based Payments

Share-based compensation expense is as follows (dollars in thousands):


	Three Months ended June 30,						Six Months ended June 30,
	2020		2019		2020		2019
	(unaudited)						(unaudited)
Research and development	$	818	$	700	$	1,499	$	1,274
Selling, general and administrative	4,144		3,322		7,451		6,035
Total	$	4,962	$	4,022	$	8,950	$	7,309

Stock Option and Stock Appreciation Rights

The following table summarizes stock option and stock appreciation rights (SAR) activities:


	Number of Options	Weighted- Average Exercise Price (per share)		Weighted- Average Remaining Contractual Term (in years)
Outstanding, December 31, 2019	4,606,559	$	23.05	6.66
Granted	1,126,525	$	23.98
Exercised	(42,086)	$	11.58
Forfeited	(41,800)	$	26.66
Outstanding, June 30, 2020 (unaudited)	5,649,198	$	23.30	6.86

As of December 31, 2019:
Vested and expected to vest	4,606,559	$	23.05	6.66
Exercisable	2,598,112	$	15.68	5.48

As of June 30, 2020:
Vested and expected to vest	5,649,198	$	23.30	6.86
Exercisable	3,354,282	$	18.85	5.53

Restricted Stock Units

During the six months ended June 30, 2020, the Company granted 26,055 RSUs with a weighted average grant date fair value per share of $23.99, which generally vest one year from the date of grant.

Performance Stock Units

Performance-Based Awards

During the six months ended June 30, 2020, the Company granted 31,250 performance-based awards, with a weighted average grant date fair value per share of $21.35, which require certain performance targets to be achieved in order for these awards to vest. Vesting is subject to continued service requirements through the date that the achievement of the performance target is certified.

Market-Based Awards

During the six months ended June 30, 2020, the Company granted 15,625 market-based awards, with a weighted average grant date fair value per share of $23.41, which are subject to market-based performance targets in order for these awards to vest.

Earnings per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Earnings per Share

Basic earnings per share (EPS) is calculated using the weighted-average number of common shares outstanding. Diluted EPS is calculated using the weighted-average number of common shares outstanding, including the dilutive effect of the Company’s stock option grants, SARs, RSUs, warrants, employee stock purchase plan (ESPP) awards and the 2023 Notes, as determined per the treasury stock method.

Effect of Convertible Notes and Related Convertible Note Hedges and Warrants

In connection with the issuance of the 2023 Notes, the Company entered into Convertible Note Hedge and Warrant Transactions as described further in Note 6, Convertible Senior Notes Due 2023. The expected collective impact of the Convertible Note Hedge and Warrant Transactions is to reduce the potential dilution that may occur between the conversion price of $59.33 per share and the strike price of the warrants of $80.9063 per share.

The 2023 Notes and related Convertible Note Hedge and Warrant Transactions are excluded in the calculation of diluted EPS because inclusion would be anti-dilutive. Specifically, the denominator of the diluted EPS calculation excludes the additional shares related to the 2023 Notes and warrants because the average price of the Company's common stock was less than the conversion price of the 2023 Notes of $59.33 per share, as well as less than the strike price of the warrants of $80.9063 per share. Prior to actual conversion, the Convertible Note Hedge Transactions are not considered in calculating diluted earnings per share, as their impact would be anti-dilutive.

In addition to the above described effect of the 2023 Notes and the related Convertible Note Hedge and Warrant Transactions, the Company also excluded the common stock equivalents of the following outstanding stock-based awards in the calculation of diluted EPS, because their inclusion would be anti-dilutive:


	Three Months ended June 30,			Six Months ended June 30,
	2020	2019	2020	2019
	(unaudited)			(unaudited)



Stock options, RSUs, PSUs	2,999,885	1,030,370	3,022,165	300,342

The following table sets forth the computation of basic and diluted net earnings per share for the three and six months ended June 30, 2020 and 2019 (dollars in thousands, except share and per share amounts):


	Three Months ended June 30,						Six Months ended June 30,
	2020		2019		2020		2019
	(unaudited)						(unaudited)
Numerator, dollars in thousands:
Net earnings	$	34,667	$	32,727	$	56,185	$	51,067

Denominator:
Weighted average shares outstanding, basic	52,557,035		52,385,590		52,545,910		52,361,149

Effect of dilutive securities:
Stock options, RSU and SAR	1,088,793		1,527,387		1,065,508		1,586,685
Weighted average shares outstanding, diluted	53,645,828		53,912,977		53,611,418		53,947,834

Earnings per share, basic	$	0.66	$	0.62	$	1.07	$	0.98
Earnings per share, diluted	$	0.65	$	0.61	$	1.05	$	0.95

Income Tax Expense

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Tax Expense

The following table provides information regarding the Company’s income tax expense for the three and six months ended June 30, 2020 and 2019, (dollars in thousands):


	Three Months ended June 30,									Six Months ended June 30,
	2020			2019			2020			2019
	(unaudited)									(unaudited)
Income tax expense	$	12,543		$	10,019		$	20,059		$	15,918
Effective tax rate	26.6		%	23.4		%	26.3		%	23.8		%

The increase in income tax expense and in the effective tax rate for the three and six months ended June 30, 2020, as compared to the same period in the prior year, was primarily attributable to higher income before taxes, an increase in the number of states in which the Company owes taxes, and an increase in non-deductible expenses as a result of the USWM Acquisition.

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The CARES Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the U.S. economy and fund a nationwide effort to curtail the effect of the COVID-19 pandemic. While the CARES Act provides sweeping tax changes in response to the COVID-19 pandemic, some of the more significant provisions which are expected to impact the

Company’s financial statements include removal of certain limitations on utilization of net operating losses and increasing the ability to deduct interest expense, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act.

As of June 30, 2020, the Company expects that these provisions will not have a material impact as the Company does not have net operating losses that would fall under these provisions and does not expect interest expense to be limited. The ultimate impact of the CARES Act may differ from this estimate due to changes in interpretations and assumptions, guidance that may be issued and actions the Company may take in response to the CARES Act. The CARES Act is highly technical and complex and the Company will continue to assess the impact that various provisions will have on its business.

Leases	6 Months Ended
Leases	Jun. 30, 2020
Leases [Abstract]
Leases	Leases The Company has entered into operating leases for its new headquarters office at 9715 Key West Ave, Rockville, MD, and for its fleet vehicles. With respect to the fleet vehicle leases, given the volume of individual leases involved in the overall arrangement, the Company applies a portfolio approach to effectively account for the operating lease assets and liabilities. Contemporaneous with the USWM Acquisition, USWM Enterprises adopted ASC 842, Leases. USWM Enterprises had an existing contract manufacturing agreement with Merz Pharma GmbH & Co. KGaA (Merz), for the manufacture and supply of MYOBLOC (Merz Agreement). Pursuant to the Merz Agreement, Merz agreed to provide a dedicated manufacturing facility that included a stand-alone building, dedicated clean room suites, manufacturing and purification equipment, and production lines (collectively, the manufacturing facility) to manufacture MYOBLOC. The Merz Agreement will expire in July 2027, unless the Company and Merz mutually agree to extend the terms. The Merz Agreement may not be terminated for convenience. The Company concluded that the Merz Agreement contains an embedded lease, because the Company controls the use of the dedicated manufacturing facility. Under the terms of the agreement, the Company is required to purchase a minimum quantity of MYOBLOC on an annual basis, which represents the in-substance fixed contract consideration associated with the dedicated manufacturing facility. The in-substance fixed contract consideration was allocated to the lease component, since the Company has elected not to separate lease and non-lease components. At Closing Date, the finance right of use (ROU) lease asset and corresponding lease liability relating to the dedicated manufacturing facility was $22.7 million. The finance ROU lease asset and lease liability were calculated as the present value of estimated future payments; i.e. the minimum purchase obligations as of the Closing Date, applying an incremental borrowing rate of 2.5%. The embedded lease is preliminarily classified as a finance lease. The Company recognized $0.3 million of fixed lease cost for the three and six months ended June 30, 2020. Purchases of MYOBLOC in excess of the annual minimum purchase obligations will be recorded as variable lease cost. Refer to Note 3 for further discussion of the USWM Acquisition.
Leases	Leases The Company has entered into operating leases for its new headquarters office at 9715 Key West Ave, Rockville, MD, and for its fleet vehicles. With respect to the fleet vehicle leases, given the volume of individual leases involved in the overall arrangement, the Company applies a portfolio approach to effectively account for the operating lease assets and liabilities. Contemporaneous with the USWM Acquisition, USWM Enterprises adopted ASC 842, Leases. USWM Enterprises had an existing contract manufacturing agreement with Merz Pharma GmbH & Co. KGaA (Merz), for the manufacture and supply of MYOBLOC (Merz Agreement). Pursuant to the Merz Agreement, Merz agreed to provide a dedicated manufacturing facility that included a stand-alone building, dedicated clean room suites, manufacturing and purification equipment, and production lines (collectively, the manufacturing facility) to manufacture MYOBLOC. The Merz Agreement will expire in July 2027, unless the Company and Merz mutually agree to extend the terms. The Merz Agreement may not be terminated for convenience. The Company concluded that the Merz Agreement contains an embedded lease, because the Company controls the use of the dedicated manufacturing facility. Under the terms of the agreement, the Company is required to purchase a minimum quantity of MYOBLOC on an annual basis, which represents the in-substance fixed contract consideration associated with the dedicated manufacturing facility. The in-substance fixed contract consideration was allocated to the lease component, since the Company has elected not to separate lease and non-lease components. At Closing Date, the finance right of use (ROU) lease asset and corresponding lease liability relating to the dedicated manufacturing facility was $22.7 million. The finance ROU lease asset and lease liability were calculated as the present value of estimated future payments; i.e. the minimum purchase obligations as of the Closing Date, applying an incremental borrowing rate of 2.5%. The embedded lease is preliminarily classified as a finance lease. The Company recognized $0.3 million of fixed lease cost for the three and six months ended June 30, 2020. Purchases of MYOBLOC in excess of the annual minimum purchase obligations will be recorded as variable lease cost. Refer to Note 3 for further discussion of the USWM Acquisition.

Accounts Receivable	6 Months Ended
Accounts Receivable	Jun. 30, 2020
Receivables [Abstract]
Accounts Receivable	Accounts ReceivableAs of June 30, 2020 and December 31, 2019, the Company recorded allowances of approximately $12.4 million and $11.0 million, respectively, for prompt pay discounts and contractual service fees paid to the Company’s customers.

Inventories

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Inventories

Inventories consist of the following (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
Raw materials	$	7,262	$	4,582
Work in process	10,658		11,428
Finished goods	17,418		10,618
Total	$	35,338	$	26,628

As of June 30, 2020, the Company capitalized $3.3 million of pre-launch inventory costs. As of December 31, 2019, the Company had not capitalized any pre-launch inventory costs. Inventories include acquired inventory from the USWM Acquisition. Refer to Note 3 for further discussion of the USWM Acquisition.

Investments in Unconsolidated VIEs	6 Months Ended
Investments in Unconsolidated VIEs	Jun. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]
Investments in Unconsolidated VIEs	Investments in Unconsolidated VIEs In April 2020, the Company entered into a Development and Option Agreement (Development Agreement) with Navitor Pharmaceuticals, Inc. (Navitor). The Company can terminate the Development Agreement upon 30 days’ notice. Under the terms of the Development Agreement, the Company and Navitor will jointly conduct a Phase II clinical program for NV-5138 (SPN-820) for treatment-resistant depression. The Company will bear all development costs incurred by either party up to a maximum of $50 million for Phase I and Phase II development, in addition to the costs that the Company will incur for other research and development support activities. There are certain additional payment amounts which could be incurred by the Company that are contingent upon Navitor achieving defined development milestones. The Company has an option to acquire or license NV-5138 (SPN-820), for which additional payments would be required. The Company paid Navitor a one time, nonrefundable, and non-creditable fee of $10 million for this option to acquire or license NV-5138 (SPN-820). This cost is included in Research and development expense in the condensed consolidated statement of earnings for the three and six months ended June 30, 2020. In addition to entering into the Development Agreement, the Company acquired Series D Preferred Shares of Navitor for $15 million, representing approximately a 13% ownership position in Navitor. The Company has determined that Navitor is a VIE. The Company has not consolidated this VIE because the Company lacks the power to direct the activities that most significantly impact Navitor’s economic performance and, therefore, have accounted for the investment under the cost method of accounting and included in Other assets in the condensed consolidated balance sheets. As of June 30, 2020, the carrying value of our investment in Navitor was approximately $15 million. The maximum exposure to losses related to Navitor is limited to the $15 million carrying value of the investment, a maximum of approximately $50 million for Phase I and Phase II development of NV-5138 (SPN-820), and the cost of other development and formulation activities provided by the Company until the date of termination of the Development Agreement. We have provided no financing to Navitor other than amounts required under the Development Agreement.

Property and Equipment

6 Months Ended

Jun. 30, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consists of the following (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
Lab equipment and furniture	$	12,252	$	11,053
Leasehold improvements	15,183		14,217
Software	2,225		2,225
Computer equipment	2,065		1,839
Construction-in-progress	15		433
	31,740		29,767
Less accumulated depreciation and amortization	(13,799)		(12,699)
Total	$	17,941	$	17,068

Depreciation and amortization expense on property and equipment was approximately $0.6 million and $1.1 million for the three and six months ended June 30, 2020, respectively, and approximately $0.4 million and $0.7 million for the three and six months ended June 30, 2019.

As of June 30, 2020, there were no identified indicators of impairment.

Goodwill and Intangible Assets, net

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, net

Goodwill represents the excess of the USWM Acquisition purchase price over the fair value of the tangible and identifiable intangible net assets acquired. Refer to Note 3 for further discussion on the USWM Acquisition.

Intangible assets also includes: patent defense costs, which are deferred legal fees incurred in conjunction with defending patents for Oxtellar XR and Trokendi XR; an acquired IPR&D asset; and acquired developed technology and product rights. For

intangible assets, excluding the acquired IPR&D asset, the Company amortizes these costs over the useful life of the respective intangible assets.

The following table sets forth the gross carrying amount and related accumulated amortization of goodwill and intangible assets (dollars in thousands):


	Weighted- Average Life (Years)	June 30, 2020		December 31, 2019
	(unaudited)
Goodwill		$	88,095	$	—
Acquired In-process Research & Development		150,000		—
Intangible assets subject to amortization:
Acquired Developed Technology and Product Rights	10.50 - 12.50	$	237,000	$	—
Capitalized patent defense costs	2.50 - 6.80	43,514		43,375
Less accumulated amortization		(22,242)		(18,535)
Total intangible assets, net		$	408,272	$	24,840

U.S. patents covering Oxtellar XR and Trokendi XR will expire no earlier than 2027. As regards Trokendi XR, the Company entered into settlement agreements that allow third parties to enter the market by January 1, 2023, or earlier under certain circumstances.

Amortization expense on intangible assets was approximately $2.4 million and $3.7 million for the three and six month periods ended June 30, 2020, respectively, and approximately $1.3 million and $2.6 million for the three and six month periods ended June 30, 2019.

As of June 30, 2020, there were no identified indicators of impairment.

Accrued Expenses and Other Current Liabilities

6 Months Ended

Jun. 30, 2020

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
Accrued clinical trial costs⁽¹⁾	$	10,735	$	13,285
Accrued compensation	11,995		11,223
Accrued professional fees	10,090		3,936
Accrued royalties	12,957		—
Other accrued expenses	13,041		5,861
Total	$	58,818	$	34,305

_____________________________________________________________________

⁽¹⁾ Includes preclinical and all clinical trial-related costs.

Accrued Product Returns and Rebates

6 Months Ended

Jun. 30, 2020

Accrued Product Returns and Rebates

Accrued Product Returns and Rebates

Accrued product returns and rebates consist of the following (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
Accrued product rebates	$	118,335	$	88,811
Accrued product returns	25,770		18,818
Total	$	144,105	$	107,629

Interest Expense

6 Months Ended

Jun. 30, 2020

Other Income and Expenses [Abstract]

Interest Expense

Interest expense consists of the following (dollars in thousands):


	Three Months ended June 30,						Six Months ended June 30,
	2020		2019		2020		2019
	(unaudited)						(unaudited)
Interest expense	$	(4,792)	$	(4,253)	$	(9,485)	$	(8,972)
Interest expense on nonrecourse liability related to sale of future royalties	(1,023)		(1,136)		(2,085)		(2,296)
Total	$	(5,815)	$	(5,389)	$	(11,570)	$	(11,268)

Interest expense includes noncash interest expense related to amortization of deferred financing costs and amortization of the debt discount on the 2023 Notes of $4.2 million and $8.2 million for the three and six months ended June 30, 2020, respectively, and $3.9 million and $7.7 million for the three and six months ended June 30, 2019, respectively.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Product Licenses The Company has obtained exclusive licenses from third parties for proprietary rights to support the product candidates in the Company’s neurology and psychiatry portfolio. Under these license agreements, the Company may be required to pay certain amounts upon the achievement of defined milestones. If these products are ultimately commercialized, the Company is also obligated to pay royalties to third parties, as percentage of net product sales, for each respective product under a license agreement. Through the USWM Acquisition, the Company acquired licensing agreements with other pharmaceutical companies for APOKYN, XADAGO and MYOBLOC. The Company is obligated to pay to royalties to third party parties, as a percentage of net product sales, for each of the products under the respective license agreement. Royalties expense incurred are recognized as Cost of goods sold in the condensed consolidated statement of earnings. Royalty Agreement In the third quarter of 2014, the Company received $30.0 million pursuant to a Royalty Interest Acquisition Agreement related to the purchase by HC Royalty of certain of the Company’s rights under the Company’s agreement with United Therapeutics, related to the commercialization of Orenitram (treprostinil) Extended-Release Tablets. Per the terms of the agreement full ownership of the royalty rights will revert to the Company if and when a certain cumulative payment threshold is reached (see Note 2, Note 4 and Note 18). USWM Enterprise Commitments Assumed As part of the USWM acquisition, the Company assumed the remaining commitments of USWM Enterprises and its subsidiaries, which are discussed below. In addition to the annual minimum purchase quantity requirements, amounting to an estimated €3.0 million annually, under the contract manufacturing agreement with Merz for the manufacture and supply of MYOBLOC, USWM Enterprises had an existing license and distribution agreement for XADAGO, which included an annual minimum promotional spend to support the marketing of XADAGO for the first five years of the agreement. As of June 30, 2020, the remaining contractual commitments was $4.5 million, of which $2.5 million is for the period July 2020 to June 2021. (See Note 3 for further discussion on the USWM Acquisition and Note 10 for further discussion on the Merz Agreement).

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (SEC) for interim financial information. As permitted under Generally Accepted Accounting Principles in the United States (U.S. GAAP), certain notes and other information have been omitted from the interim unaudited condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the Company’s most recent Annual Report on Form 10-K, for the year ended December 31, 2019, filed with the SEC. In management’s opinion, the condensed consolidated financial statements include all normal and recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows. The results of operations for any interim period are not necessarily indicative of the Company’s future quarterly or annual results. The Company, which is primarily located in the United States (U.S.), operates in one operating segment. Reclassifications Certain prior year amounts on the condensed consolidated statements of earnings have been reclassified to conform to the current year presentation, including a reclassification made to separately present amortization of intangible assets, previously included in Selling, general and administrative expenses, to the Amortization of intangible assets on the condensed consolidated statements of earnings. These reclassifications had no effect on operating earnings or our other condensed consolidated financial statements for the three and six months ended June 30, 2020 and 2019.
Reclassifications	Reclassifications Certain prior year amounts on the condensed consolidated statements of earnings have been reclassified to conform to the current year presentation, including a reclassification made to separately present amortization of intangible assets, previously included in Selling, general and administrative expenses, to the Amortization of intangible assets on the condensed consolidated statements of earnings. These reclassifications had no effect on operating earnings or our other condensed consolidated financial statements for the three and six months ended June 30, 2020 and 2019.
Consolidation	Consolidation The Company’s condensed consolidated financial statements include the accounts of: Supernus Pharmaceuticals, Inc.; Supernus Europe Ltd.; Biscayne Neurotherapeutics, Inc.; Biscayne Neurotherapeutics Australia Pty Ltd; MDD US Enterprises, LLC (formerly USWM Enterprises, LLC) and MDD US Enterprises, LLC's wholly owned subsidiaries. These are collectively referred to herein as “Supernus” or “the Company.” All significant intercompany transactions and balances have been eliminated in consolidation. The condensed consolidated financial statements reflect the consolidation of entities in which the Company has a controlling financial interest. In determining whether there is a controlling financial interest, the Company considers if it has a majority of the voting interests of the entity, or if the entity is a variable interest entity (VIE) and whether the Company is the primary beneficiary. In determining the primary beneficiary of a VIE, the Company evaluates whether it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to that VIE. The Company's judgment with respect to its level of influence or control of an entity involves the consideration of various factors including the form of ownership interest, representation in the entity’s governance, the size of the investment, estimates of future cash flows, the ability to participate in policy making decisions and the rights of the other investors to participate in the decision making process and to liquidate the entity, if applicable. If the Company is not the primary beneficiary and an ownership interest is held in the entity, the interest is accounted for under the equity or cost methods of accounting, as appropriate. The Company continuously assesses whether it is the primary beneficiary of a VIE as changes to existing relationships or future transactions may result in changing conclusions.
Use of Estimates	Use of Estimates The Company bases its estimates on: historical experience; forecasts; information received from its service providers; information from other sources; and other assumptions that the Company believes are reasonable under the circumstances. Actual results could differ materially from the Company’s estimates. The Company evaluates the methodologies employed in making its estimates on an ongoing basis.
Business Combinations and Contingent Considerations	Business Combinations and Contingent Considerations To determine whether acquisitions should be accounted for as a business combination or as an asset acquisition, the Company makes certain judgments as to determine whether the acquired set of activities and assets meets the definition of a business. Significant judgment is required in making the assessment as to whether the acquired processes or activities along with their inputs would be substantive so as to constitute a business, as defined by U.S. GAAP. If the acquired set of activities and assets meets the definition of a business, the Company applies the acquisition method of accounting to that transaction. Otherwise, the transaction is recorded as an asset acquisition and not a business combination. In an asset acquisition, any acquired in-process research and development (IPR&D) that does not have an alternative future use is charged to expense at the acquisition date, and no goodwill is recorded. Under the acquisition method of accounting, assets acquired and liabilities assumed are required to be recorded at their respective fair values as of the acquisition date. The excess of the purchase price over the fair value of the acquired net assets, where applicable, is recorded as goodwill. The operating results of the acquired business is included in the Company’s condensed consolidated statement of earnings beginning on the effective acquisition date. Acquisition-related expenses are recognized separately from the business combination, and are expensed as incurred. Significant judgment is involved in determining the fair values assigned to assets acquired and liabilities assumed in a business combination, as well as the estimated asset lives. These can materially affect our consolidated results of operations. The fair values of intangible assets, including acquired IPR&D, are determined using information available near the acquisition date, based on estimates and assumptions that are deemed reasonable by management. Significant estimates and assumptions include, but are not limited to, probability of technical success, revenue growth and discount rate. Depending on the facts and circumstances, the Company may deem it necessary to engage an independent valuation expert to assist in valuing significant assets and liabilities. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and re-evaluate these estimates and assumptions on a quarterly basis. The Company records any adjustments to the Company’s preliminary estimates to goodwill, provided these adjustments are within the one year measurement period from the acquisition date. Upon the conclusion of the measurement period or subsequent to the final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our condensed consolidated statements of earnings in the period that these adjustments are identified. Contingent Considerations Certain of the Company’s business combinations involve the potential for future payment of consideration that is contingent upon the achievement of certain milestones related to the development and sale of its products; for example, product development milestones and royalty payments on future product sales. The fair value of contingent consideration liabilities is determined at the acquisition date using unobservable inputs. These inputs include the estimated amount and timing of projected cash flows, volatility, the probability of milestone achievement (i.e., achievement of the contingent event) and the estimated discount rates and risk-free rate used to present value the probability-weighted cash flows. Subsequent to the acquisition date, at each reporting period until the contingency is resolved, the contingent consideration liability is remeasured at current fair value, with changes recorded in earnings in the period of remeasurement. Similarly, the determination of initial and subsequent fair value of the contingent consideration liability requires significant judgment by management. Changes in any of the inputs may result in a significantly different fair value adjustment and can impact the results of operations. Additional information regarding the Company's recent business combination and contingent consideration arrangement is included in Note 3, USWM Acquisition.
Revenue Recognition	Revenue from Product Sales The Company’s customers are primarily pharmaceutical wholesalers, specialty pharmacies, and distributors. Customers purchase product to fulfill orders from retail pharmacy chains and independent pharmacies of varying size and purchasing power. The Company recognizes gross revenue when its products are physically received by its customers, upon shipment from a third party fulfillment center. The Company's customers take control of its products, including title and ownership, upon physical receipt of its products at their facilities. Customer orders are generally fulfilled within a few days of receipt, resulting in minimal order backlog. The Company does not adjust revenue for any financing effects, for those transactions where the Company expects the period between the transfer of the goods or services and collection to be less than one year. There are no minimum product purchase requirements with our customers. The Company recognizes revenue from product sales in an amount that reflects the consideration the Company expects to receive in exchange for those goods. Product sales are recorded net of various forms of variable consideration, including: provision for estimated rebates; provision for estimated future product returns; and an estimated allowance for discounts. These are collectively considered "sales deductions." As described below, variability in the net transaction price for the Company’s products arises primarily from the aforementioned sales deductions. Significant judgment is required in estimating certain sales deductions. In making these estimates, the Company considers: historical experience; product price increases; current contractual arrangements under applicable payor programs; unbilled claims; processing time lags; inventory levels in the wholesale, specialty pharmacy, and retail distribution channel and product life cycle. The Company adjusts its estimates of revenue either when the most likely amount of consideration it expects to receive changes, or when the consideration becomes fixed. Variable consideration on product sales is only recognized when it is probable that a significant reversal will not occur. If actual results in the future vary from our estimates, the Company adjusts its estimates in that calendar period. These adjustments could materially affect net product sales and earnings in the period that such adjustments are recorded. Sales Deductions The Company records product sales net of the following sales deductions: •Rebates: Rebates are discounts which the Company pays under either public sector or private sector health care programs. Public sector rebate programs encompass: various Medicaid drug rebate programs; Medicare gap coverage programs; programs covering public health service institutions; and programs covering government entities. All federal employees and agencies purchase drugs under the Federal Supply Schedule. Private sector rebate programs include: contractual agreements with managed care providers, under which the Company pays fees to gain access to that provider’s patient drug formulary; and Company sponsored programs, under which the Company defrays or eliminates patient co-payment charges that the patient would otherwise be obligated to pay to their managed care provider in order to fill their prescription. Rebates paid under public sector programs are generally mandated under law, whereas private sector rebates are generally contractually negotiated by the Company with managed care providers. Both types of rebates vary over time. Rebates are owed upon dispensing our product to a patient; i.e., filling a prescription. The accrual balance for rebates consists of the following three components. First, because rebates are generally invoiced and paid quarterly in arrears, the accrual balance consists of an estimate of the amount expected to be incurred for prescriptions dispensed in the current quarter. Second, the accrual balance also includes an estimate for known or estimated prior quarters’ unpaid rebates, covering those prescriptions dispensed in past quarters but for which no invoice has yet been received. Third, the accrual balance includes an estimate for rebates that will be prospectively owed, for prescriptions filled in future quarters. This estimate pertains to product that has been sold by the Company to wholesalers or distributors, and which resides either as wholesaler/distributor inventory or as inventory held at pharmacies. As of the end of the reporting period, this product has not been dispensed to a patient. The Company’s estimates of expected rebate claims vary by program and by type of customer, because the period from the date at which the prescription is filled and the date at which the Company receives and pays the invoice varies substantially. For each of its products, the Company bases its estimates of expected rebate claims on multiple factors, including: historical levels of deductions; contractual terms with managed care providers; actual and anticipated changes in product price; prospective changes in managed care fee for service contracts; prospective changes in co-pay assistance programs; and anticipated changes in program utilization rates; i.e., patient participation rates under each specific program. The Company records an estimated liability for rebates at the time the customer takes title to the product (i.e., at the time of sale to wholesalers/distributors), and records this liability as a reduction to gross product sales. This liability is recorded as an increase in Accrued product returns and rebates, and is reflected in current liabilities on our condensed consolidated balance sheets. The sensitivity of the Company’s estimates varies by program and by type of customer. If actual rebates vary from estimated amounts, the Company will adjust the balances of such accrued rebates to reflect actual experience. These adjustments could materially affect the estimated liability balance, net product sales and earnings in the period in which the adjustment(s) is made. •Returns: Sales of the Company’s products are not subject to a general right of return. Product that has been used to fill patient prescriptions is no longer subject to any right of return. However, the Company will accept return of product that is damaged or defective when shipped from its third party fulfillment center. The Company will accept return of expired product six months prior to and up to 12 months subsequent to the product’s expiry date. Expired or defective returned product cannot be re-sold and is therefore destroyed. The Company records an estimated liability for product returns at the time the customer takes title to the product (i.e., at time of sale). The liability is reflected as a reduction to gross product sales. This liability is recorded as an increase in Accrued product returns and rebates, in current liabilities on our condensed consolidated balance sheets. The Company estimates the liability for returns based primarily on the actual returns experience for its five commercial products. Because the Company’s products have a shelf life up to 60 months from date of manufacture, and because the Company accepts return of product up to 12 months post expiry, there is a significant time lag of several years between the time when the product is sold and the time when the Company issues credit on expired product. The Company’s returns policy generally permits product returns to be processed at current wholesaler price rather than at historical acquisition price. Hence, the Company’s estimated liability for product returns is affected by price increases taken subsequent to the date of sale. When the Company adjusts its estimates for product returns, the adjustment affects the estimated liability, product sales and earnings in the period of adjustment. Those adjustments may be material to our financial results. •Sales discounts: Distributors and wholesalers of the Company's pharmaceutical products are generally offered various forms of consideration, including allowances, service fees and prompt payment discounts, for distributing our products. Distributor and wholesaler allowances and service fees arise from contractual agreements, and are estimated as a percentage of the price at which the Company sells product to them. In addition, distributors and wholesalers are offered a prompt pay discount for payment within a specified period. The Company accounts for these discounts at the time of sale, as a reduction to gross product sales, recording these discounts as a valuation allowance against Accounts receivable on the condensed consolidated balance sheets. Royalty Revenues The Company recognizes noncash royalty revenue for amounts earned pursuant to its royalty agreement with United Therapeutics Corporation (United Therapeutics), based on estimated product sales by United Therapeutics (see Note 4). This agreement includes the right to use the Company’s intellectual property as a functional license. In 2014, the Company sold certain of these royalty rights to Healthcare Royalty Partners III, L.P. (HC Royalty) (see Note 19). Sales of Orenitram by United Therapeutics result in payments made by United Therapeutics to HC Royalty, in accordance with these agreements. Consequent to this agreement, the Company recorded a nonrecourse liability related to this transaction, and amortizes this liability as noncash royalty revenue. The Company also recognizes noncash interest expense related to this liability, and accrues interest expense at an effective interest rate (see Note 18). This interest rate is determined based on projections of HC Royalty’s rate of return. Royalty revenue also includes cash royalty amounts received from other collaboration partners, including from Shire Plc (Shire, a subsidiary of Takeda Pharmaceutical Company Ltd), based on net product sales of Shire's product, Mydayis, in the current period. Royalty revenue is only recognized when the underlying product sale by Shire occurs. The Shire arrangement also includes Shire's right to use the Company’s intellectual property as a functional license. There are no guaranteed minimum amounts owed to the Company related to any of these royalty revenue agreements.
Research and Development Expense and Related Accrued Research and Development Expenses	Research and Development Expenses and Related Accrued Research and Development Expenses Research and development expenditures are expensed as incurred. These expenses include: employee salaries, benefits and share-based compensation; cost of contract research and development services provided by third parties; costs for conducting preclinical and clinical studies; cost of acquiring or manufacturing clinical trial materials; regulatory costs; facilities costs; depreciation expense and allocated expenses; and license fees and milestone payments related to in-licensed products and technologies. Assets acquired that are used for research and development and that have no future alternative use are expensed as in-process research and development as incurred. The Company estimates preclinical and clinical trial expenses based on services performed pursuant to contracts with research institutions, clinical investigators, clinical research organizations (CROs) and other service providers that provide services on the Company’s behalf. In recording service fees, the Company estimates the cost of those services which have been performed on behalf of the Company during the current period, and compares those costs with the cumulative expenses recorded and cumulative payments made for such services. As appropriate, the Company accrues additional service fees for services that have been delivered, or defers nonrefundable advance payments until the related services are performed. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company adjusts its accrued expenses or its deferred advance payments, accordingly. If the Company subsequently determines that it no longer expects the services associated with a nonrefundable advance payment to be rendered, the remaining portion of that advance payment is charged to expense in the period in which such a determination is made.
Marketable Securities	Marketable Securities Marketable securities consist of investments in: U.S. Treasury bills and notes; bank certificates of deposit; various U.S. governmental agency debt securities; corporate and municipal bonds; and other fixed income securities. The Company places all investments with governmental, industrial or financial institutions whose debt is rated as investment grade. The Company's investments are classified as available-for-sale and are carried at fair value. The Company classifies all available-for-sale marketable securities with maturities greater than one year from the balance sheet date as non-current assets. Any unrealized holding gains or losses on debt securities are reported, net of any tax effects, as a component of other comprehensive earnings (loss) in the condensed consolidated statement of comprehensive earnings. Realized gains and losses, included in Other income (expense), net in the condensed consolidated statement of earnings, are determined using the specific identification method for determining the cost of securities sold. The Company adopted Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) on January 1, 2020, using the allowance approach. Declines in fair value below amortized cost related to credit losses (i.e., impairment due to credit losses), if any, are included in the condensed consolidated statement of earnings, with a corresponding allowance established. If the estimate of expected credit losses decreases in subsequent periods, the Company will reverse the credit losses through current period earnings, and accordingly adjust the allowance (see Recently Issued Accounting Pronouncements).
Inventories	Inventories Inventories, which are recorded at the lower of cost or net realizable value, include materials, labor, direct costs and indirect costs. These are valued using the first-in, first-out method. The Company writes down inventory that has become obsolete, or has a cost basis in excess of its expected net realizable value. Expired inventory is disposed of, and the related costs are recognized as Cost of goods sold in the condensed consolidated statement of earnings. Inventories Produced in Preparation of Product Launches The Company capitalizes inventories produced in preparation for product launches when future commercialization of a product is probable and when future economic benefit is expected to be realized. The determination to capitalize is based on the particular facts and circumstances relating to the product. Capitalization of such inventory begins when the Company determines that (i) positive results have been obtained for the clinical trials that are necessary to support regulatory approval; (ii) uncertainties regarding regulatory approval have been significantly reduced; and (iii) it is probable that these capitalized costs will provide future economic benefit in excess of capitalized costs. In evaluating whether these conditions are met, the Company considers the following factors: the product candidate’s current status in the regulatory approval process; results from the related pivotal clinical trials; results from meetings with relevant regulatory agencies prior to the filing of regulatory applications; compilation of the regulatory applications; consequent acceptance by the regulatory body; potential impediments to the approval process, such as product safety or efficacy concerns, potential labeling restrictions, and other impediments; historical experience with manufacturing and commercializing similar products as well as the relevant product candidate; and the resilience of the Company’s manufacturing environment, including its supply chain, in determining logistical constraints that could hamper approval or commercialization. In assessing the economic benefit that the Company is likely to realize, the Company considers: the shelf life of the product in relation to the expected timeline for approval; patent related or contract issues that may prevent or delay commercialization; product stability data of all pre-approval production to determine whether there is adequate expected shelf life; viability of commercialization, taking into account competitive dynamics in the marketplace and market acceptance; anticipated future sales; and anticipated reimbursement strategies that may prevail with respect to the product, if approved. In applying the lower of cost or net realizable value to pre-launch inventory, the Company estimates a range of likely commercial prices based on comparable commercial products and pre-launch discussions with managed care providers. The Company could be required to write down previously capitalized costs related to pre-launch inventories upon a change in such judgment(s), due to, among other potential factors, a denial or significant delay of approval by regulatory bodies, a delay in commercialization, or other adverse factors.
Intangible Assets	Intangible Assets Intangible assets consist of definite-lived intangible assets, including: acquired developed technology and product rights intangible, and patent defense costs. They also consist of indefinite-lived intangible assets, such as acquired IPR&D and goodwill. Patent defense costs are deferred legal fees that have been incurred in connection with legal proceedings related to the defense of patents for Oxtellar XR and Trokendi XR. Patent defense costs are charged to expense in the event of an unsuccessful outcome of the litigation. Definite-lived intangible assets are carried at cost less accumulated amortization, with amortization calculated on a straight line basis over the estimated useful lives. The Company evaluates the estimated remaining useful lives of its intangible assets annually or when events or changes in circumstances warrant a revision to the remaining periods of amortization. Indefinite-lived intangible assets are not amortized but tested for impairment annually. Acquired IPR&D in a business combination is considered to be indefinite-lived until the completion or abandonment of the associated research and development efforts. Upon successful completion of the project, the Company will make a determination as to the then-useful life of the intangible asset, generally determined by the period in which the substantial majority of the cash flows are expected to be generated. The capitalized amount is then amortized over its estimated useful life. If a project is abandoned, all remaining capitalized amounts are written off immediately. During the period prior to completion or abandonment, the IPR&D asset will not be amortized but will be tested for impairment on an annual basis.
Goodwill Impairment Assessment	Goodwill Impairment Assessment The Company evaluates goodwill for possible impairment at least annually during the fourth quarter of each fiscal year, or more often, if and when circumstances indicate that goodwill may be impaired. This includes but is not limited to significant adverse changes in the business climate, market conditions, or other events that indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value. In performing its annual goodwill assessment, the Company first performs a qualitative test. If necessary, the Company then performs a quantitative test. To conduct the quantitative impairment test of goodwill, the Company compares the fair value of a reporting unit to its carrying value. Evaluating for impairment requires judgment, including estimating future cashflows. The Company estimates the fair values of its reporting unit using discounted cash flow models or other valuation models, such as comparative transactions and market multiples. If the reporting unit’s carrying value exceeds its fair value, the Company records an impairment loss to the extent that the carrying value of goodwill exceeds its implied fair value.
Impairment of Long Lived Assets	Impairment of Long Lived Assets Long-lived assets consist primarily of property and equipment, operating lease assets and intangible assets. The carrying value of intangible assets is assessed for impairment annually during the fourth quarter of each year, or more frequently if impairment indicators exist. Impairment indicators include but are not limited to adverse changes in circumstances or other events that indicate the carrying amount of an asset may not be recoverable. Evaluating for impairment requires judgment, including estimating future cash flows, future growth rates and profitability, and the expected life over which cash flows will occur. For IPR&D assets, the Company also considers various factors and risks for potential impairment, including the current legal and regulatory environment and the competitive landscape. Adverse clinical trial results, significant delays, or inability to obtain governmental approval, inability to commercialize the product candidate, and the introduction or advancement of competitor products and product candidates could result in partial or full impairment of the related intangible asset. Consequently, the eventual realized value of the IPR&D asset may vary from its fair value at the date of acquisition, and impairment charges may occur in future periods. Changes in the Company's business strategy or adverse changes in market conditions could adversely affect impairment analyses. If indications of impairment exist, projected future undiscounted cash flows associated with the asset are compared to the carrying value of the asset, to determine whether the asset's value is recoverable. If impairment is determined, the Company writes down the asset to its estimated fair value; i.e., the Company recognizes an impairment charge equal to the excess of the carrying value of the long-lived asset over its estimated fair value at the time at which a determination is made.
Share-Based Compensation	Share-Based Compensation Stock Options The Company recognizes share-based compensation expense over the service period, using the straight-line method. Employee share-based compensation for stock options is measured based on estimated fair value as of the grant date, using the Black-Scholes option-pricing model, to compute the fair value of option grants as of the grant date. Forfeitures are accounted for as they occur. The Company uses the following assumptions for estimating the fair value of option grants: Fair Value of Common Stock—The fair value of common stock underlying the option grants is determined based on observable market prices of the Company’s common stock. Expected Volatility—Volatility is a measure of the amount by which the Company’s share price has historically fluctuated and is expected to fluctuate (i.e., expected volatility) in the future. Dividend Yield—The Company has never declared or paid dividends, and has no plans to do so in the foreseeable future. Dividend yield is therefore zero. Expected Term—This is the period of time during which options are expected to remain unexercised. Options have a maximum contractual term of ten years. Risk-Free Interest Rate—This is the observed U.S. Treasury Note rate, as of the week each option grant is issued, with a term that most closely resembles the expected term of the option. Restricted Stock Units (RSUs) Compensation expense is recorded based on amortizing the fair market value as of the date of the grant over the implied service period. RSUs generally vest one year from the date of the grant and are subject to continued service requirements. Performance Stock Units (PSUs) Performance-Based Awards Compensation expense for performance-based awards is recognized based on amortizing the fair market value as of the grant date over the periods during which the achievement of the performance is probable. Performance-based PSU awards require certain performance targets to be achieved in order for these awards to vest. Each award vests on the date of achievement of the performance target. Market-Based Awards Compensation expense for market-based awards is recognized on a straight-line basis over the requisite service period, regardless of whether the market condition is satisfied. Market-based PSU awards subject to market-based performance targets require achievement of the performance target in order for these units to vest. The Company estimates the fair value of these awards as of the grant date using a Monte Carlo simulation that incorporates option-pricing inputs. This simulation covers the period from the grant date through the end of the derived requisite service period. The expected volatility as of the grant date is estimated based on historical daily volatility of the Company's common stock over the expected term of the award. The risk-free interest rate is based on the U.S. Treasury Note rate, as of the week the award is issued, with a term that most closely resembles the expected term of the award.
Advertising Expense	Advertising Expense Advertising expense includes the cost of promotional materials and activities, such as printed and digital marketing materials, marketing programs and speaker programs. The cost of the Company's advertising efforts are expensed as incurred. The Company incurred approximately $10.9 million and $22.5 million in advertising costs for the three and six months ended June 30, 2020, respectively, and approximately $11.2 million and $21.2 million in advertising costs for the three and six months ended June 30, 2019, respectively. These expenses are recorded as a component of Selling, general and administrative expenses in the condensed consolidated statements of earnings.
Income Taxes	Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases for assets and liabilities. These differences are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. When appropriate, valuation allowances are established to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for uncertain tax positions in its consolidated financial statements when it is more-likely-than-not that the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be estimated as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authorities, based on full knowledge of the position and relevant facts. The Company's policy is to recognize any interest and penalties related to income taxes as income tax expense in the relevant period.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Accounting Pronouncements Adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) - The new standard, issued in July 2016, requires credit losses on financial assets to be measured as the net amount expected to be collected, rather than based on incurred losses. For available-for-sale debt securities, the new standard did not revise the definition of impairment; i.e., the investment is impaired if the fair value of the investment is less than its cost. It also did not revise the requirement under ASC 320 for an entity to recognize, in net income, only the impairment amount related to credit risk, and to recognize, in other comprehensive income, the noncredit impairment amount. The new standard made certain targeted changes to the impairment of available-for-sale debt securities, to eliminate the concept of "other than temporary" from the impairment model. Targeted changes to the impairment model included recognition of credit losses on available-for-sale debt securities using the allowance method, and limiting the allowance to the amount by which fair value is below amortized cost. The new standard also requires enhanced disclosure of credit risk associated with respective assets. The Company adopted the new standard effective January 1, 2020 using the modified retrospective approach. The adoption of the standard did not have a material impact on its condensed consolidated financial statements. ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract - The new standard, issued in August 2018, aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or to obtain internal-use software. This includes hosting arrangements that include an internal-use software license. This ASU also requires that the implementation costs of a hosting arrangement that is a service contract are expensed over the term of the hosting arrangement, which includes reasonably certain renewals. The Company adopted the new standard effective January 1, 2020 using the prospective transition approach. The adoption of the standard did not have a material impact on its condensed consolidated financial statements. ASU 2018-18, Clarifying the Interaction Between Topic 808 and Topic 606 - The new standard, issued in November 2018, clarifies when transactions between participants in a collaborative arrangement are within the scope of Topic 606. The Company adopted the new standard effective January 1, 2020. The adoption of the standard did not have a material impact on its condensed consolidated financial statements. ASU 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820) - The new standard, issued in August 2018, improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies and adds certain disclosure requirements. The Company adopted the new standard effective January 1, 2020. The adoption of the standard did not have a material impact on its condensed consolidated financial statements. New Accounting Pronouncements Not Yet Adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes - The new standard, issued in December 2019, simplifies the accounting for income taxes. This guidance will be effective on January 1, 2021 on a prospective basis, with early adoption permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. It will adopt the new standard effective January 1, 2021. ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity - The new standard, issued in August 2020, simplifies the accounting and disclosures for convertible instruments and contracts in an entity's own equity. This guidance will be effective on January 1, 2022 on a prospective basis, with early adoption permitted but no earlier than January 1, 2021. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. It will adopt the new standard effective January 1, 2022.

USWM Acquisition (Tables)

6 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed


Cash and cash equivalents	$	6,994
Accounts receivable	18,474
Inventories	10,400
Prepaid expenses and other current assets	3,564
Property and equipment	454
Finance lease asset⁽¹⁾	22,747
Intangible assets	387,000
Other assets	340
Total fair value of assets acquired	449,973
Accounts payable	(2,573)
Accrued expenses and other current liabilities	(23,339)
Finance lease liability⁽¹⁾	(22,747)
Deferred income tax liabilities	(69,515)
Total fair value of liabilities assumed	(118,174)
Total identifiable net assets	$	331,799
Goodwill	88,095
Total purchase price	$	419,894

Cash consideration paid⁽²⁾	$	297,200

______________________________________________________________

⁽¹⁾ Refer to Note 10 for further discussion of the acquired finance lease asset and assumed lease liability.

⁽²⁾ Represents total purchase price, less cash and cash equivalents acquired and contingent consideration liabilities recorded at the Closing Date

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The following table summarizes the preliminary purchase price allocation, and the preliminary average remaining useful lives, for identifiable intangible assets acquired (dollars in thousands):


	Estimated Fair Value		Estimated Useful Lives (in years)
Acquired In-process Research & Development	$	150,000	n/a
Acquired Developed Technology and Product Rights	237,000		10.5 - 12.5
Total intangible assets	$	387,000

Business Acquisition, Pro Forma Information


	Three Months ended June 30,						Six Months ended June 30,
	2020		2019		2020		2019
	(unaudited)						(unaudited)
Pro forma total revenues	$	151,803	$	142,238	$	284,965	$	260,542
Pro forma net earnings	38,841		34,940		61,959		44,254

Disaggregated Revenues (Tables)

6 Months Ended

Jun. 30, 2020

Disaggregation of Revenue [Abstract]

Summary of disaggregation of revenues by nature

The following table summarizes the disaggregation of revenues by nature, (dollars in thousands):


	Three Months ended June 30,						Six Months ended June 30,
	2020		2019		2020		2019
	(unaudited)						(unaudited)
Net product sales
Trokendi XR	$	89,674	$	78,964	$	158,225	$	142,657
Oxtellar XR	23,680		23,394		47,619		42,800
APOKYN	8,600		—		8,600		—
XADAGO	801		—		801		—
MYOBLOC	1,229		—		1,229		—
Total net product sales	$	123,984	$	102,358	$	216,474	$	185,457
Royalty revenues	2,745		2,337		5,231		4,712
Total revenues	$	126,729	$	104,695	$	221,705	$	190,169

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of fair value of the financial assets and liabilities

The Company’s financial assets that are required to be measured at fair value on a recurring basis are as follows (dollars in thousands):


			Fair Value Measurements at June 30, 2020 (unaudited)
	Total Fair Value at June 30, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents
Cash	$	183,703	$	183,703	$	—
Money market funds	27,272		27,272		—
Marketable securities
Corporate debt securities	163,839		—		163,839
Municipal debt securities	—		—		—
Long term marketable securities
Corporate debt securities	353,659		259		353,400
U.S. government agency debt securities	5,014		—		5,014
Other noncurrent assets
Marketable securities - restricted (SERP)	431		1		430
Total assets at fair value	$	733,918	$	211,235	$	522,683


			Fair Value Measurements at December 31, 2019
	Total Fair Value at December 31, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents
Cash	$	78,912	$	78,912	$	—
Money market funds	102,469		102,469		—
Marketable securities
Corporate debt securities	165,527		—		165,527
Municipal debt securities	165		—		165
Long term marketable securities
Corporate debt securities	571,828		254		571,574
U.S. government agency and municipal debt securities	19,945		—		19,945
Other noncurrent assets
Marketable securities - restricted (SERP)	418		3		415
Total assets at fair value	$	939,264	$	181,638	$	757,626

Schedule of unrestricted available-for-sale marketable securities

Unrestricted available-for-sale marketable securities held by the Company are as follows, (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
Corporate and U.S. government agency and municipal debt securities
Amortized cost	$	507,375	$	747,598
Gross unrealized gains	15,525		10,031
Gross unrealized losses	(388)		(164)
Total fair value	$	522,512	$	757,465

Schedule of contractual maturities of the unrestricted available-for-sale marketable securities held

The contractual maturities of the unrestricted available-for-sale marketable securities held by the Company are as follows, (dollars in thousands):


	June 30, 2020
	(unaudited)
Less than 1 year	$	163,839
1 year to 2 years	143,987
2 years to 3 years	149,688
3 years to 4 years	64,998
Greater than 4 years	—
Total	$	522,512

Schedule of financial liabilities that are not carried at fair value

The following table sets forth the Company’s financial liabilities that are not carried at fair value, (dollars in thousands):


	June 30, 2020						December 31, 2019
	(unaudited)
	Carrying Value		Fair Value (Level 2)		Carrying Value		Fair Value (Level 2)
Convertible notes, net	$	353,349	$	356,213	$	345,170	$	366,023

Convertible Senior Notes Due 2023 (Tables)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Summary of liability component of 2023 Notes

The liability component of the 2023 Notes consists of the following, (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
2023 Notes	$	402,500	$	402,500
Unamortized debt discount and deferred financing costs	(49,151)		(57,330)
Total carrying value	$	353,349	$	345,170

Share-Based Payments (Tables)

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Schedule of share-based compensation expense

Share-based compensation expense is as follows (dollars in thousands):


	Three Months ended June 30,						Six Months ended June 30,
	2020		2019		2020		2019
	(unaudited)						(unaudited)
Research and development	$	818	$	700	$	1,499	$	1,274
Selling, general and administrative	4,144		3,322		7,451		6,035
Total	$	4,962	$	4,022	$	8,950	$	7,309

Summary of stock options and SAR activities

The following table summarizes stock option and stock appreciation rights (SAR) activities:


	Number of Options	Weighted- Average Exercise Price (per share)		Weighted- Average Remaining Contractual Term (in years)
Outstanding, December 31, 2019	4,606,559	$	23.05	6.66
Granted	1,126,525	$	23.98
Exercised	(42,086)	$	11.58
Forfeited	(41,800)	$	26.66
Outstanding, June 30, 2020 (unaudited)	5,649,198	$	23.30	6.86

As of December 31, 2019:
Vested and expected to vest	4,606,559	$	23.05	6.66
Exercisable	2,598,112	$	15.68	5.48

As of June 30, 2020:
Vested and expected to vest	5,649,198	$	23.30	6.86
Exercisable	3,354,282	$	18.85	5.53

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Schedule of common stock equivalents excluded in the calculation of diluted earnings per share


	Three Months ended June 30,			Six Months ended June 30,
	2020	2019	2020	2019
	(unaudited)			(unaudited)



Stock options, RSUs, PSUs	2,999,885	1,030,370	3,022,165	300,342

Schedule of computation of basic and diluted earnings per share


	Three Months ended June 30,						Six Months ended June 30,
	2020		2019		2020		2019
	(unaudited)						(unaudited)
Numerator, dollars in thousands:
Net earnings	$	34,667	$	32,727	$	56,185	$	51,067

Denominator:
Weighted average shares outstanding, basic	52,557,035		52,385,590		52,545,910		52,361,149

Effect of dilutive securities:
Stock options, RSU and SAR	1,088,793		1,527,387		1,065,508		1,586,685
Weighted average shares outstanding, diluted	53,645,828		53,912,977		53,611,418		53,947,834

Earnings per share, basic	$	0.66	$	0.62	$	1.07	$	0.98
Earnings per share, diluted	$	0.65	$	0.61	$	1.05	$	0.95

Income Tax Expense (Tables)

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of reconciliation of income tax expense at the U.S Federal statutory income tax rate to the entity's effective income tax rate

The following table provides information regarding the Company’s income tax expense for the three and six months ended June 30, 2020 and 2019, (dollars in thousands):


	Three Months ended June 30,									Six Months ended June 30,
	2020			2019			2020			2019
	(unaudited)									(unaudited)
Income tax expense	$	12,543		$	10,019		$	20,059		$	15,918
Effective tax rate	26.6		%	23.4		%	26.3		%	23.8		%

Inventories (Tables)

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories consist of the following (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
Raw materials	$	7,262	$	4,582
Work in process	10,658		11,428
Finished goods	17,418		10,618
Total	$	35,338	$	26,628

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2020

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

Property and equipment consists of the following (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
Lab equipment and furniture	$	12,252	$	11,053
Leasehold improvements	15,183		14,217
Software	2,225		2,225
Computer equipment	2,065		1,839
Construction-in-progress	15		433
	31,740		29,767
Less accumulated depreciation and amortization	(13,799)		(12,699)
Total	$	17,941	$	17,068

Goodwill and Intangible Assets, net (Tables)

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The following table sets forth the gross carrying amount and related accumulated amortization of goodwill and intangible assets (dollars in thousands):


	Weighted- Average Life (Years)	June 30, 2020		December 31, 2019
	(unaudited)
Goodwill		$	88,095	$	—
Acquired In-process Research & Development		150,000		—
Intangible assets subject to amortization:
Acquired Developed Technology and Product Rights	10.50 - 12.50	$	237,000	$	—
Capitalized patent defense costs	2.50 - 6.80	43,514		43,375
Less accumulated amortization		(22,242)		(18,535)
Total intangible assets, net		$	408,272	$	24,840

Accrued Expenses and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Payables and Accruals [Abstract]

Schedule of accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
Accrued clinical trial costs⁽¹⁾	$	10,735	$	13,285
Accrued compensation	11,995		11,223
Accrued professional fees	10,090		3,936
Accrued royalties	12,957		—
Other accrued expenses	13,041		5,861
Total	$	58,818	$	34,305

_____________________________________________________________________

⁽¹⁾ Includes preclinical and all clinical trial-related costs.

Accrued Product Returns and Rebates (Tables)

6 Months Ended

Jun. 30, 2020

Accrued Product Returns and Rebates

Schedule of accrued product returns and rebates

Accrued product returns and rebates consist of the following (dollars in thousands):


	June 30, 2020		December 31, 2019
	(unaudited)
Accrued product rebates	$	118,335	$	88,811
Accrued product returns	25,770		18,818
Total	$	144,105	$	107,629

Interest Expense (Tables)

6 Months Ended

Jun. 30, 2020

Other Income and Expenses [Abstract]

Schedule of interest expense

Interest expense consists of the following (dollars in thousands):


	Three Months ended June 30,						Six Months ended June 30,
	2020		2019		2020		2019
	(unaudited)						(unaudited)
Interest expense	$	(4,792)	$	(4,253)	$	(9,485)	$	(8,972)
Interest expense on nonrecourse liability related to sale of future royalties	(1,023)		(1,136)		(2,085)		(2,296)
Total	$	(5,815)	$	(5,389)	$	(11,570)	$	(11,268)

Organization and Business (Details)		6 Months Ended
Organization and Business (Details)	Jun. 09, 2020 numberOfMarketProducts	Jun. 30, 2020 numberOfMarketProducts	Jun. 30, 2020 product
Noncash or Part Noncash Acquisitions [Line Items]
Number of commercial products		5	5
MDD US Enterprises LLC (Formerly USWM Enterprises)
Noncash or Part Noncash Acquisitions [Line Items]
Number of established marketed products	3

Summary of Significant Accounting Policies - Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2020 segment
Accounting Policies [Abstract]
Number of operating segments	1

Summary of Significant Accounting Policies - Revenue Recognition (Details)	6 Months Ended
	Jun. 30, 2020 USD ($)	Jun. 30, 2020 USD ($) numberOfMarketProducts	Jun. 30, 2020 USD ($) product
Revenue Recognition
Sales return period prior to expiry date	6 months
Sales return period subsequent to expiry date	12 months
Number of commercial products		5	5
Maximum
Revenue Recognition
Product shelf life	60 months
Royalty revenue agreements
Revenue Recognition
Guaranteed minimum amounts	$ 0	$ 0	$ 0

Summary of Significant Accounting Policies - Share-based Compensation (Details)	6 Months Ended
	Jun. 30, 2020
Share-Based Payments
Dividend yield	0.00%
Maximum contractual term of share-based grants	10 years
RSUs
Share-Based Payments
Vesting period	1 year

Summary of Significant Accounting Policies - Advertising Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Selling, general and administrative
Advertising Expense
Advertising costs	$ 10.9	$ 11.2	$ 22.5	$ 21.2

USWM Acquisition - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Jun. 09, 2020	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019
Business Acquisition [Line Items]
Cash consideration paid			$ 297,200	$ 0
Contingent consideration liability accrued in USWM Acquisition			115,700	$ 0
Transaction costs adjustment			10,100
MDD US Enterprises LLC (Formerly USWM Enterprises)
Business Acquisition [Line Items]
Cash consideration paid	$ 297,200
Transaction costs		$ 7,400	8,300
Additional cash payments upon milestone achievements maximum	230,000
Contingent consideration liability accrued in USWM Acquisition	115,700
Additional cash payments upon milestone achievements minimum	$ 0
Operating earnings		1,700	1,700
MDD US Enterprises LLC (Formerly USWM Enterprises) \| Net product sales
Business Acquisition [Line Items]
Revenues		$ 10,600	$ 10,600

USWM Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		6 Months Ended
	Jun. 09, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Finance lease liablility	$ (22,747)
Goodwill		$ 88,095		$ 0
Cash consideration paid		$ 297,200	$ 0
MDD US Enterprises LLC (Formerly USWM Enterprises)
Business Acquisition [Line Items]
Cash and cash equivalents	6,994
Accounts receivable	18,474
Inventories	10,400
Prepaid expenses and other current assets	3,564
Property and equipment	454
Finance lease asset	22,747
Intangible assets	387,000
Other assets	340
Total fair value of assets acquired	449,973
Accounts payable	(2,573)
Accrued expenses and other current liabilities	(23,339)
Deferred income tax liabilities	(69,515)
Total fair value of liabilities assumed	(118,174)
Total identifiable net assets	331,799
Goodwill	88,095
Total purchase price	419,894
Cash consideration paid	$ 297,200

USWM Acquisition - Components of Intangible Assets and Estimated Useful Lives (Details) - MDD US Enterprises LLC (Formerly USWM Enterprises) $ in Thousands	Jun. 09, 2020 USD ($)
Business Acquisition [Line Items]
Estimated Fair Value	$ 387,000
Acquired In-process Research & Development
Business Acquisition [Line Items]
Estimated Fair Value	150,000
Acquired Developed Technology and Product Rights
Business Acquisition [Line Items]
Estimated Fair Value	$ 237,000
Acquired Developed Technology and Product Rights \| Minimum
Business Acquisition [Line Items]
Estimated Useful Lives (in years)	10 years 6 months
Acquired Developed Technology and Product Rights \| Maximum
Business Acquisition [Line Items]
Estimated Useful Lives (in years)	12 years 6 months

USWM Acquisition - Pro Forma Information (Details) - MDD US Enterprises LLC (Formerly USWM Enterprises) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Business Acquisition [Line Items]
Pro forma total revenues	$ 151,803	$ 142,238	$ 284,965	$ 260,542
Pro forma net earnings	$ 38,841	$ 34,940	$ 61,959	$ 44,254

Disaggregated Revenues - Summary of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Total revenues	$ 126,729	$ 104,695	$ 221,705	$ 190,169
Trokendi XR
Disaggregation of Revenue [Line Items]
Total revenues	89,674	78,964	158,225	142,657
Oxtellar XR
Disaggregation of Revenue [Line Items]
Total revenues	23,680	23,394	47,619	42,800
APOKYN
Disaggregation of Revenue [Line Items]
Total revenues	8,600	0	8,600	0
XADAGO
Disaggregation of Revenue [Line Items]
Total revenues	801	0	801	0
MYOBLOC
Disaggregation of Revenue [Line Items]
Total revenues	1,229	0	1,229	0
Net product sales
Disaggregation of Revenue [Line Items]
Total revenues	123,984	102,358	216,474	185,457
Royalty revenues
Disaggregation of Revenue [Line Items]
Total revenues	$ 2,745	$ 2,337	$ 5,231	$ 4,712

Disaggregated Revenues (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue Recognition
Non-cash royalty revenue	$ 2,300		$ 1,800		$ 3,918	$ 3,368
Net product sales	(126,729)		(104,695)		(221,705)	(190,169)
Net earnings	(34,667)	$ (21,518)	(32,727)	$ (18,340)	(56,185)	(51,067)
Trokendi XR
Revenue Recognition
Net product sales	$ (89,674)		$ (78,964)		$ (158,225)	$ (142,657)
Trokendi XR \| Sales Returns
Revenue Recognition
Provision for product returns		8,000
Net product sales		8,000
Net earnings		$ 5,900
Earnings per basic and diluted share (in dollars per share)		$ 0.11
Revenues \| Customer Concentration Risk \| Trokendi XR
Revenue Recognition
Concentration risk percentage (more than)					73.00%	77.00%

Fair Value of Financial Instruments - Narrative (Details) - USD ($)		6 Months Ended
	Jun. 09, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Fair value of financial instruments
Impairment due to credit losses		$ 0
Contingent consideration liability accrued in USWM Acquisition		115,700,000	$ 0
MDD US Enterprises LLC (Formerly USWM Enterprises)
Fair value of financial instruments
Contingent consideration liability accrued in USWM Acquisition	$ 115,700,000
Fair Value (Level 3) \| MDD US Enterprises LLC (Formerly USWM Enterprises)
Fair value of financial instruments
Contingent consideration liability accrued in USWM Acquisition		115,700,000
Recurring \| Fair Value (Level 3)
Fair value of financial instruments
Total assets at fair value		$ 0		$ 0

Fair Value of Financial Instruments - Carrying Value (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Quoted Prices in Active Markets for Identical Assets (Level 1)
Other noncurrent assets
Marketable securities - restricted (SERP)	$ 1	$ 3
Total assets at fair value	211,235	181,638
Significant Other Observable Inputs (Level 2)
Other noncurrent assets
Marketable securities - restricted (SERP)	430	415
Total assets at fair value	522,683	757,626
Total Fair Value
Other noncurrent assets
Marketable securities - restricted (SERP)	431	418
Total assets at fair value	733,918	939,264
Corporate debt securities \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Marketable securities
Marketable securities	0	0
Long term marketable securities
Long term marketable securities	259	254
Corporate debt securities \| Significant Other Observable Inputs (Level 2)
Marketable securities
Marketable securities	163,839	165,527
Long term marketable securities
Long term marketable securities	353,400	571,574
Corporate debt securities \| Total Fair Value
Marketable securities
Marketable securities	163,839	165,527
Long term marketable securities
Long term marketable securities	353,659	571,828
Municipal debt securities \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Marketable securities
Marketable securities	0	0
Municipal debt securities \| Significant Other Observable Inputs (Level 2)
Marketable securities
Marketable securities	0	165
Municipal debt securities \| Total Fair Value
Marketable securities
Marketable securities	0	165
U.S. government agency and municipal debt securities \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Long term marketable securities
Long term marketable securities	0	0
U.S. government agency and municipal debt securities \| Significant Other Observable Inputs (Level 2)
Long term marketable securities
Long term marketable securities	5,014	19,945
U.S. government agency and municipal debt securities \| Total Fair Value
Long term marketable securities
Long term marketable securities	5,014	19,945
Cash \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Cash and cash equivalents	183,703	78,912
Cash \| Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents	0	0
Cash \| Total Fair Value
Assets:
Cash and cash equivalents	183,703	78,912
Money market funds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Cash and cash equivalents	27,272	102,469
Money market funds \| Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents	0	0
Money market funds \| Total Fair Value
Assets:
Cash and cash equivalents	$ 27,272	$ 102,469

Fair Value of Financial Instruments - Unrestricted Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Amortized cost	$ 507,375	$ 747,598
Gross unrealized gains	15,525	10,031
Gross unrealized losses	(388)	(164)
Total fair value	$ 522,512	$ 757,465

Fair Value of Financial Instruments Fair Value of Financial Instruments - Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Less than 1 year	$ 163,839
1 year to 2 years	143,987
2 years to 3 years	149,688
3 years to 4 years	64,998
Greater than 4 years	0
Total	$ 522,512	$ 757,465

Fair Value of Financial Instruments - Financial Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair value of financial instruments
Carrying Value	$ 353,349	$ 345,170
Convertible Notes \| Significant Other Observable Inputs (Level 2)
Fair value of financial instruments
Carrying Value	353,349	345,170
Fair Value	$ 356,213	$ 366,023

Convertible Senior Notes Due 2023 - Narrative (Details)	1 Months Ended	6 Months Ended	12 Months Ended
Convertible Senior Notes Due 2023 - Narrative (Details)	Mar. 31, 2018 USD ($) $ / shares shares	Jun. 30, 2020 USD ($) $ / shares	Dec. 31, 2019 USD ($)
Notes payable
Strike price of the warrant transactions (in dollars per share) \| $ / shares	$ 80.9063	$ 80.9063
2023 Notes
Notes payable
Interest rate	0.625%
Effective interest rate	5.41%
2023 Notes \| $	$ 402,500,000	$ 402,500,000	$ 402,500,000
Conversion rate for the notes (in shares per $1,000 principal amount)	0.0168545
Conversion price, per share of common stock (in dollars per share) \| $ / shares	$ 59.33	$ 59.33
Convertible note hedge options issued (in shares)	402,500
Common stock issued upon conversion of notes (in shares)	6,800,000
Warrants issued (in shares)	6,783,939
Number of shares per warrant entitled to holder (in shares)	1
Conversion of debt to equity \| $		$ 0	$ 0

Convertible Senior Notes Due 2023 - Summary of liability component of 2023 Notes (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Mar. 31, 2018
Debt Instrument [Line Items]
Total carrying value	$ 353,349,000	$ 345,170,000
2023 Notes
Debt Instrument [Line Items]
2023 Notes	402,500,000	402,500,000	$ 402,500,000
Unamortized debt discount and deferred financing costs	(49,151,000)	(57,330,000)
Total carrying value	$ 353,349,000	$ 345,170,000

Share-Based Payments - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based payments
Share-based compensation expense	$ 4,962	$ 4,022	$ 8,950	$ 7,309
Research and development
Share-based payments
Share-based compensation expense	818	700	1,499	1,274
Selling, general and administrative
Share-based payments
Share-based compensation expense	$ 4,144	$ 3,322	$ 7,451	$ 6,035

Share-Based Payments - Activity (Details) - Stock option and Stock Appreciation Rights - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Number of Options
Outstanding at the beginning of the period (in shares)	4,606,559
Granted (in shares)	1,126,525
Exercised (in shares)	(42,086)
Forfeited (in shares)	(41,800)
Outstanding at the end of the period (in shares)	5,649,198	4,606,559
Vested and expected to vest (in shares)	5,649,198	4,606,559
Exercisable (in shares)	3,354,282	2,598,112
Weighted- Average Exercise Price (per share)
Outstanding at the beginning of the period (in dollars per share)	$ 23.05
Granted (in dollars per share)	23.98
Exercised (in dollars per share)	11.58
Forfeited (in dollars per share)	26.66
Outstanding at the end of the period (in dollars per share)	23.30	$ 23.05
Vested and expected to vest (in dollars per share)	23.30	23.05
Exercisable (in dollars per share)	$ 18.85	$ 15.68
Weighted- Average Remaining Contractual Term (in years)
Outstanding at the end of the period	6 years 10 months 9 days	6 years 7 months 28 days
Vested and expected to vest	6 years 10 months 9 days	6 years 7 months 28 days
Exercisable	5 years 6 months 10 days	5 years 5 months 23 days

Share-Based Payments - Narrative (Details)	6 Months Ended
Share-Based Payments - Narrative (Details)	Jun. 30, 2020 $ / shares shares
RSUs
Share-Based Payments
Granted (in shares) \| shares	26,055
Weighted average fair value, grant date, (in dollars per share) \| $ / shares	$ 23.99
Performance-Based Awards
Share-Based Payments
Granted (in shares) \| shares	31,250
Weighted average fair value, grant date, (in dollars per share) \| $ / shares	$ 21.35
Market-Based Awards
Share-Based Payments
Granted options (in shares) \| shares	15,625
Weighted average fair value, grant date, options (in dollars per share) \| $ / shares	$ 23.41

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2018
Income per share
Strike price of the warrant transactions (in dollars per share)	$ 80.9063				$ 80.9063		$ 80.9063
Numerator, dollars in thousands:
Net earnings	$ 34,667	$ 21,518	$ 32,727	$ 18,340	$ 56,185	$ 51,067
Denominator:
Weighted average shares outstanding, basic (in shares)	52,557,035		52,385,590		52,545,910	52,361,149
Effect of dilutive securities:
Stock options, RSU and SAR (in shares)	1,088,793		1,527,387		1,065,508	1,586,685
Weighted average shares outstanding, diluted (in shares)	53,645,828		53,912,977		53,611,418	53,947,834
Earnings per share, basic (in dollars per share)	$ 0.66		$ 0.62		$ 1.07	$ 0.98
Earnings per share, diluted (in dollars per share)	$ 0.65		$ 0.61		$ 1.05	$ 0.95
Stock options, RSUs, PSUs
Income per share
Common stock equivalents excluded in the calculation of diluted income per share (in shares)	2,999,885		1,030,370		3,022,165	300,342
2023 Notes
Income per share
Conversion price, per share of common stock (in dollars per share)	$ 59.33				$ 59.33		$ 59.33

Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Tax Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax expense	$ 12,543	$ 10,019	$ 20,059	$ 15,918
Effective tax rate	26.60%	23.40%	26.30%	23.80%

Leases (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2020	Jun. 09, 2020	Dec. 31, 2019
Leases
Finance lease asset	$ 22,479	$ 22,479		$ 0
MDD US Enterprises LLC (Formerly USWM Enterprises)
Leases
Finance lease asset			$ 22,700
Finance lease liability			$ 22,700
Finance lease incremental borrowing rate			2.50%
Fixed lease cost	$ 300	$ 300

Accounts Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Allowance for expected sales discounts and allowances	$ 12.4	$ 11.0

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 7,262	$ 4,582
Work in process	10,658	11,428
Finished goods	17,418	10,618
Total inventories	$ 35,338	$ 26,628

Inventories - Narrative (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Inventory [Line Items]
Pre-launch inventory, net	$ 7,262,000	$ 4,582,000
Product Candidates
Inventory [Line Items]
Pre-launch inventory, net	$ 3,300,000	$ 0

Investments in Unconsolidated VIEs (Details) - Variable Interest Entity, Not Primary Beneficiary - Navitor Pharmaceuticals, Inc. - USD ($) $ in Millions	1 Months Ended
	Apr. 30, 2020	Jun. 30, 2020
Variable Interest Entity [Line Items]
Agreement termination notice period	30 days
Threshold for development costs payments	$ 50
Payment for option issue fee	10
Investments	$ 15	$ 15
VIE, qualitative or quantitative information, ownership percentage	13.00%

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Property and equipment
Property and equipment, gross	$ 31,740		$ 31,740		$ 29,767
Less accumulated depreciation and amortization	(13,799)		(13,799)		(12,699)
Property and equipment, net	17,941		17,941		17,068
Depreciation and amortization expense	600	$ 400	1,100	$ 700
Lab equipment and furniture
Property and equipment
Property and equipment, gross	12,252		12,252		11,053
Leasehold improvements
Property and equipment
Property and equipment, gross	15,183		15,183		14,217
Software
Property and equipment
Property and equipment, gross	2,225		2,225		2,225
Computer equipment
Property and equipment
Property and equipment, gross	2,065		2,065		1,839
Construction-in-progress
Property and equipment
Property and equipment, gross	$ 15		$ 15		$ 433

Goodwill and Intangible Assets, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Intangible Assets
Goodwill	$ 88,095		$ 88,095		$ 0
Less accumulated amortization	(22,242)		(22,242)		(18,535)
Total intangible assets, net	408,272		408,272		24,840
Additional disclosures
Amortization expense	2,445	$ 1,306	3,706	$ 2,612
Acquired Developed Technology and Product Rights
Intangible Assets
Intangible assets, gross	237,000		$ 237,000		0
Acquired Developed Technology and Product Rights \| Minimum
Intangible Assets
Weighted- Average Life (Years)			10 years 6 months
Acquired Developed Technology and Product Rights \| Maximum
Intangible Assets
Weighted- Average Life (Years)			12 years 6 months
Capitalized patent defense costs
Intangible Assets
Intangible assets, gross	43,514		$ 43,514		43,375
Capitalized patent defense costs \| Minimum
Intangible Assets
Weighted- Average Life (Years)			2 years 6 months
Capitalized patent defense costs \| Maximum
Intangible Assets
Weighted- Average Life (Years)			6 years 9 months 18 days
Acquired In-process Research & Development
Intangible Assets
Intangible assets, gross	$ 150,000		$ 150,000		$ 0

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Accrued clinical trial costs	$ 10,735	$ 13,285
Accrued compensation	11,995	11,223
Accrued professional fees	10,090	3,936
Accrued royalties	12,957	0
Other accrued expenses	13,041	5,861
Accrued expenses and other current liabilities	$ 58,818	$ 34,305

Accrued Product Returns and Rebates (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Accrued Product Returns and Rebates
Accrued product rebates	$ 118,335	$ 88,811
Accrued product returns	25,770	18,818
Total	$ 144,105	$ 107,629

Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Interest Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Other Income and Expenses [Abstract]
Interest expense	$ (4,792)	$ (4,253)	$ (9,485)	$ (8,972)
Interest expense on nonrecourse liability related to sale of future royalties	(1,023)	(1,136)	(2,085)	(2,296)
Total	(5,815)	(5,389)	(11,570)	(11,268)
Non-cash interest expense	$ 4,200	$ 3,900	$ 8,179	$ 7,748

Commitments and Contingencies (Details) $ in Thousands, € in Millions	6 Months Ended
	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 EUR (€)	Dec. 31, 2019 USD ($)	Sep. 30, 2014 USD ($)
Long-term Purchase Commitment [Line Items]
Nonrecourse liability related to sale of future royalties, long term	$ 16,455			$ 19,248	$ 30,000
MDD US Enterprises LLC (Formerly USWM Enterprises)
Long-term Purchase Commitment [Line Items]
Annual minimum purchase quantity requirement amount \| €			€ 3.0
Commitment period	5 years
Spend commitment amount	$ 4,500
MDD US Enterprises LLC (Formerly USWM Enterprises) \| Forecast
Long-term Purchase Commitment [Line Items]
Spend commitment amount		$ 2,500