Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2015	Jul. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Trading Symbol	SPPI
Entity Registrant Name	SPECTRUM PHARMACEUTICALS INC
Entity Central Index Key	0000831547
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		67,311,366

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 142,271	$ 129,942
Marketable securities	3,308	3,306
Accounts receivable, net of allowance for doubtful accounts of $120 and $120, respectively	41,684	70,758
Other receivables	8,245	5,489
Inventories	8,794	9,200
Prepaid expenses	2,688	3,774
Deferred tax assets	172	0
Total current assets	207,162	222,469
Property and equipment, net of accumulated depreciation	1,265	1,405
Intangible assets, net of accumulated amortization	207,955	230,100
Goodwill	17,995	18,195
Other assets	19,952	17,864
Total assets	454,329	490,033
Current liabilities:
Accounts payable and other accrued liabilities	71,823	84,994
Accrued payroll and benefits	5,777	8,444
Deferred revenue	7,087	9,959
Drug development liability	573	1,141
Acquisition-related contingent obligations	5,243	4,901
Total current liabilities	90,503	109,439
Drug development liability, less current portion	13,916	14,644
Deferred revenue, less current portion	414	0
Acquisition-related contingent obligations, less current portion	2,745	2,441
Deferred tax liability	6,753	6,569
Other long-term liabilities	6,994	6,088
Convertible senior notes	98,866	96,298
Total liabilities	220,191	235,479
Commitments and contingencies
Stockholders’ equity:
Preferred stock
Common stock, $0.001 par value; 175,000,000 shares authorized; 67,245,602 and 65,969,699 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively	66	66
Additional paid-in capital	545,359	538,553
Accumulated other comprehensive loss	(165)	(850)
Accumulated deficit	(311,245)	(283,338)
Total stockholders’ equity	234,138	254,554
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	454,329	490,033
Series B junior participating preferred stock [Member]
Stockholders’ equity:
Preferred stock	0	0
Series E Convertible Voting Preferred Stock [Member]
Stockholders’ equity:
Preferred stock	$ 123	$ 123

Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2015	Dec. 31, 2014
Allowance for doubtful accounts receivable	$ 120	$ 120
Preferred stock, par value ($ per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value ($ per share)	$ 0.001	$ 0.001
Common stock, shares authorized	175,000,000	175,000,000
Common stock, shares issued	67,245,602	65,969,699
Common stock, shares outstanding	67,245,602	65,969,699
Series B junior participating preferred stock [Member]
Preferred stock, par value ($ per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,500,000	1,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series E Convertible Voting Preferred Stock [Member]
Preferred stock, par value ($ per share)	$ 0.001	$ 0.001
Preferred stock, stated value ($ per share)	$ 10,000	$ 10,000
Preferred stock, shares authorized	2,000	2,000
Preferred stock, shares issued	20	20
Preferred stock, shares outstanding	20	20
Convertible preferred shares	40,000	40,000
Preferred stock, liquidation value	$ 240	$ 240

Condensed Consolidated Statements of Operations (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Product sales, net	$ 35,144	$ 46,855	$ 73,557	$ 86,951
License fees and service revenue	9,838	0	10,042	28
Total revenues	44,982	46,855	83,599	86,979
Operating costs and expenses:
Cost of product sales (excludes amortization of intangible assets)	5,990	6,156	13,061	12,434
Selling, general and administrative	22,552	25,399	45,886	48,802
Research and development	9,558	11,335	25,409	40,832
Amortization and impairment of intangible assets	6,916	5,361	20,938	10,721
Total operating costs and expenses	45,016	48,251	105,294	112,789
Loss from operations	(34)	(1,396)	(21,695)	(25,810)
Other expenses:
Interest expense, net	(2,258)	(1,976)	(4,486)	(4,043)
Change in fair value of contingent consideration related to acquisitions	(146)	(1,005)	(646)	(1,729)
Other income (expense), net	69	(487)	(966)	(845)
Total other expenses	(2,335)	(3,468)	(6,098)	(6,617)
Loss before income taxes	(2,369)	(4,864)	(27,793)	(32,427)
Benefit (provision) for income taxes	23	1,301	(115)	1,223
Net loss	$ (2,346)	$ (3,563)	$ (27,908)	$ (31,204)
Net loss per share:
Basic and diluted ($ per share)	$ (0.04)	$ (0.06)	$ (0.43)	$ (0.49)
Weighted average shares outstanding:
Basic and diluted (shares)	65,466,004	64,609,197	65,167,162	64,119,441

Condensed Consolidated Statements of Comprehensive Loss (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (2,346)	$ (3,563)	$ (27,908)	$ (31,204)
Other comprehensive (loss) income, net of income tax:
Unrealized gain on available-for-sale securities	1,806	741	2,585	1,055
Adjustment for realized loss on available-for-sale securities, and included in net income	0	(279)	0	(398)
Foreign currency translation adjustments	106	95	(1,900)	183
Other comprehensive income	1,912	557	685	840
Total comprehensive loss	$ (434)	$ (3,006)	$ (27,223)	$ (30,364)

Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows From Operating Activities:
Net loss	$ (27,908)	$ (31,204)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	14,129	12,179
Stock-based compensation	5,990	5,525
Accretion of debt discount to interest expense on 2018 Convertible Notes (Note 11)	2,569	2,332
Amortization of deferred financing costs to interest expense on 2018 Convertible Notes (Note 11)	327	308
Bad debt (recovery) expense	0	(28)
Impairment of intangible assets (Note 3(f))	7,160	0
Unrealized foreign currency exchange loss	3,992	606
Research and development expense for the value of stock issued to TopoTarget in connection with milestone achievement	0	7,790
Change in fair value of contingent consideration related to acquisitions (Note 9)	646	1,729
Changes in operating assets and liabilities:
Accounts receivable, net	28,966	(7,231)
Other receivables	(2,757)	(4,263)
Inventories	398	2,638
Prepaid expenses	1,139	(197)
Deferred tax assets	(237)	72
Other assets	(2,991)	(1,873)
Accounts payable and other accrued obligations	(13,052)	(10,659)
Accrued payroll and benefits	(2,645)	(1,723)
Drug development liability	(1,296)	(554)
Deferred revenue	(2,531)	(123)
Deferred tax liability	184	602
Other long-term liabilities	905	(256)
Net cash provided by (used in) operating activities	12,988	(24,330)
Cash Flows From Investing Activities:
Redemption of certificate of deposit	0	165
Purchases of property and equipment	(212)	(605)
Net cash used in investing activities	(212)	(440)
Cash Flows From Financing Activities:
Proceeds from exercise of stock options	996	1,339
Proceeds from sale of stock under employee stock purchase plan	335	348
Purchase and retirement of restricted stock to satisfy employee tax liability at vesting	(515)	(590)
Net cash provided by financing activities	816	1,097
Effect of exchange rates on cash and equivalents	(1,263)	(228)
Net increase (decrease) in cash and cash equivalents	12,329	(23,901)
Cash and cash equivalents—beginning of period	129,942	156,306
Cash and cash equivalents—end of period	142,271	132,405
Supplemental disclosure of cash flow information:
Cash paid for income taxes	332	329
Cash paid for interest	$ 1,650	$ 1,588

Description of Business, Basis of Presentation, and Operating Segment

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Description of Business, Basis of Presentation, and Operating Segment

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, AND OPERATING SEGMENT

(a) Description of Business

Spectrum Pharmaceuticals, Inc. (“Spectrum”, the “Company”, “we”, “our”, or “us”) is a biotechnology company, with a primary focus on oncology and hematology. Our strategy is comprised of the (i) commercialization of cancer therapeutics through our U.S. direct sales force and international licensees and distributors, (ii) completion of clinical studies for new indications of our marketed products, and (iii) acquisition, development, and marketing of a broad and diverse pipeline of late-stage clinical and commercial drug compounds.

We currently market five drugs for the treatment of cancer:


•	FUSILEV® injection for patients with advanced metastatic colorectal cancer and to counteract certain effects of methotrexate therapy;


•	ZEVALIN® injection for patients with follicular non-Hodgkin’s lymphoma;


•	FOLOTYN® injection for patients with relapsed or refractory peripheral T-cell lymphoma;


•	MARQIBO® injection for patients with Philadelphia chromosome–negative acute lymphoblastic leukemia; and


•	BELEODAQ® injection for patients with relapsed or refractory peripheral T-cell lymphoma

We also have ongoing indication expansion clinical studies with some of our marketed products, and have a diversified pipeline of product candidates in Phase 2 and Phase 3 clinical studies.

(b) Basis of Presentation

Interim Financial Statements

The interim financial data as of June 30, 2015 and 2014 is unaudited and is not necessarily indicative of our results for a full year. In the opinion of our management, the interim data includes normal and recurring adjustments necessary for a fair presentation of our financial results for the three and six months ended June 30, 2015 and 2014. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations relating to interim financial statements. The December 31, 2014 balances reported herein are derived from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2014. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the SEC on March 13, 2015.

Principles of Consolidation

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and under the rules and regulations of the SEC. These financial statements include the financial position, results of operations, and cash flows of Spectrum and its subsidiaries, all of which are wholly-owned (except for SPC, as discussed below). All inter-company accounts and transactions among these legal entities have been eliminated in consolidation.

Variable Interest Entity

We own fifty-percent of Spectrum Pharma Canada (“SPC”), a legal entity organized in Quebec, Canada in January 2008. Certain of our drug clinical studies are conducted through this “variable interest entity” (as defined under applicable GAAP) and we fund all of SPC’s operating costs. Since we carry the full risks and rewards of SPC, we meet the applicable GAAP criteria as being its “primary beneficiary.” Accordingly, SPC’s balance sheets and statements of operations are included in our Condensed Consolidated Financial Statements as if it were a wholly-owned subsidiary for all periods presented.

We operate in one reportable operating segment that is focused exclusively on developing and commercializing oncology and hematology drug products. For the three and six months ended June 30, 2015 and 2014, all of our revenue and related expenses were solely attributable to these activities. Substantially all of our assets (excluding certain bank accounts and intangible asset rights held by our wholly-owned foreign subsidiaries) are located in the U.S.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References+ Details

Use of Estimates and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Use of Estimates and Summary of Significant Accounting Policies

USE OF ESTIMATES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The preparation of financial statements in conformity with GAAP requires our management to make informed estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. However, actual values may materially differ, since estimates are inherently uncertain. On an on-going basis, our management evaluates its estimates and assumptions, including those related to (i) gross-to-net revenue adjustments; (ii) the timing of revenue recognition; (iii) the collectability of customer accounts; (iv) whether the cost of inventories can be recovered; (v) the fair value of goodwill and intangible assets; (vi) the realization of tax assets and estimates of tax liabilities; (vii) the likelihood of payment and value of contingent liabilities; (viii) the fair value of investments; (ix) the valuation of stock options and the periodic expense recognition of stock-based compensation; and (x) the potential outcome of ongoing or threatened litigation.

The estimates and assumptions that most significantly impact the presented amounts within these accompanying Condensed Consolidated Financial Statements are further described below:

(i) Revenue Recognition

(a) Product Sales: We sell our products to wholesalers/distributors (i.e., our customers), except for our U.S. sales of ZEVALIN in which case the end-user (i.e. clinic or hospital) is our customer. Our wholesalers/distributors in turn sell our products directly to clinics, hospitals, and private oncology-based practices. Revenue from our product sales is recognized when title and risk of loss have transferred to our customer, and the following additional criteria are met:


(1)	appropriate evidence of a binding arrangement exists with our customer;


(2)	price is substantially fixed and determinable;


(3)	collection from our customer is reasonably assured;


(4)	our customer’s obligation to pay us is not contingent on resale of the product;


(5)	we do not have significant continued performance obligations to our customer; and


(6)	we have a reasonable basis to estimate returns.

Our gross revenue is reduced by our gross-to-net (“GTN”) estimates each period, resulting in our reported “product sales, net” in the accompanying Condensed Consolidated Statements of Operations. We defer revenue recognition in full if these estimates are not reasonably determinable at the time of sale. These estimates are based upon information received from external sources (such as written and oral information obtained from our customers with respect to their period-end inventory levels, and their sales to end-users during the period), in combination with management’s informed judgments. Due to the inherent uncertainty of estimates, the actual amount we incur may be materially different than our GTN estimates, and require prospective revenue adjustments in periods after the initial sale was recorded.

Our GTN estimates are comprised of the following categories:

Product Returns Allowances: Our FUSILEV, MARQIBO, and BELEODAQ customers are permitted to return purchased product beginning at its expiration date, and within six months thereafter. Returned product is generally not resold. Returns for expiry of ZEVALIN and FOLOTYN are not contractually, or customarily, allowed. We estimate expected returns based on our historical return rates.

Government Chargebacks: Our products are subject to pricing limits under certain federal government programs (e.g., Medicare and 340B Drug Pricing Program). Qualifying entities (i.e., end-users) purchase product from our customers at their qualifying discounted price. The chargeback amount we incur represents the difference between our contractual sales price to our customer, and the end-user’s applicable discounted purchase price under the government program. There may be significant lag time between our reported net product sales and our receipt of corresponding government chargeback claims from our customers.

Prompt Pay Discounts: Discounts for prompt payment are estimated at the time of sale, based on our eligible customers’ prompt payment history and the contractual discount percentage.

Commercial Rebates: Commercial rebates are based on (i) our estimates of end-user purchases through a group purchasing organization ("GPO"), (ii) the corresponding contractual rebate percentage tier we expect each GPO to achieve, and (iii) our estimates of the impact of any prospective rebate program changes made by us.

Medicaid Rebates: Our products are subject to state government-managed Medicaid programs, whereby rebates are issued to participating state governments. These rebates arise when a patient treated with our product is covered under Medicaid, resulting in a discounted price for our product under the applicable Medicaid program. Our Medicaid rebate accrual calculations require us to project the magnitude of our sales, by state, that will be subject to these rebates. There is a significant time lag in us receiving rebate notices from each state (generally several months or longer after our sale is recognized). Our estimates are based on our historical claim levels by state, as supplemented by management’s judgment.

Distribution, Data, and GPO Administrative Fees: Distribution, data, and GPO administrative fees are paid to authorized wholesalers/distributors of our products (except for U.S. sales of ZEVALIN) for various commercial services, including: contract administration, inventory management, delivery of end-user sales data, and product returns processing. These fees are based on a contractually-determined percentage of our applicable sales.

(b) License Fees: We recognize revenue for our licensing of intellectual property to third-parties (out-licenses), based on the contractual terms of each agreement and our application of pertinent GAAP. This revenue may be associated with upfront license fees, milestone payments from our licensees’ sales or regulatory achievements, and royalties from our licensees’ sales in applicable territories.

(c) Service Revenue: We receive fees from third-parties under certain arrangements for our research and development activities, clinical trial management, and supply chain services. Payment may be triggered by the successful completion of a phase of development, results from a clinical trial, regulatory approval events, or completion of product delivery in our capacity as an agent in such arrangement. We recognize revenue when the corresponding milestone is achieved, or the revenue is otherwise earned and due to us through our on-going activities.

(d) New Revenue Recognition Standard: On April 1, 2015, the FASB voted for a one-year deferral of the effective date of the new revenue recognition standard, ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). This standard will require public entities to apply the amendments in ASU 2014-09 for annual reporting beginning after December 15, 2017. ASU 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the guidance provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation.

We continue to evaluate the impact of ASU 2014-09 to our current revenue recognition models for product sales, license fees, and service revenue, as described above.

(ii) Cash and Equivalents

Our cash and equivalents consist of bank deposits and highly liquid investments with maturities of three months or less from the purchase date.

(iii) Marketable Securities

Our marketable securities consist of our holdings in mutual funds and bank certificates of deposit. Since we classify these securities as “available-for-sale” under applicable GAAP, any unrealized gains or losses from their change in value is reflected in “unrealized gain on available-for-sale securities” on the accompanying Condensed Consolidated Statements of Comprehensive Loss. Realized gains and losses on available-for-sale securities are included in “other income (expense), net” on the accompanying Condensed Consolidated Statements of Operations.

(iv) Accounts Receivable

Our accounts receivables are derived from our product sales, license fees, and service revenue, and do not bear interest. The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses in our existing accounts receivable. Account balances are charged off against the allowance after appropriate collection efforts are exhausted.

(v) Inventories

We value our inventory at the lower of (i) the actual cost of its purchase or manufacture, or (ii) its current market value. Inventory cost is determined on the first-in, first-out method (FIFO). We regularly review our inventory quantities in process of manufacture and on hand. When appropriate, we record a provision for obsolete and excess inventory to derive its new cost basis, which takes into account our sales forecast by product and corresponding expiry dates.

Direct and indirect manufacturing costs related to the production of inventory prior to FDA approval are expensed through “research and development,” rather than being capitalized to inventory cost.

(vi) Property and Equipment

Our property and equipment is stated at historical cost, and is depreciated on a straight-line basis over an estimated useful life that corresponds with its designated asset category. We evaluate the recoverability of “long-lived assets” (which includes property and equipment) whenever events or changes in circumstances in our business indicate that the asset’s carrying amount may not be recoverable through on-going operations.

(vii) Goodwill and Intangible Assets

Our goodwill represents the excess of our business acquisition cost over the estimated fair value of the net assets acquired in the corresponding transaction. Goodwill has an indefinite accounting life and is therefore not amortized. Instead, goodwill is evaluated for impairment on an annual basis (as of each October 1st), unless we identify impairment indicators that would require earlier testing.

We evaluate the recoverability of indefinite-lived intangible assets at least annually, or whenever events or changes in our business indicate that an intangible asset’s (whether indefinite or definite-lived) carrying amount may not be recoverable. Such circumstances could include, but are not limited to the following:


(a)	a significant decrease in the market value of an asset;


(b)	a significant adverse change in the extent or manner in which an asset is used; or


(c)	an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset.

Intangible assets with finite useful lives are amortized over their estimated useful lives on a straight-line basis. We review these assets for potential impairment if/when facts or circumstances suggest that the carrying value of these assets may not be recoverable.

(viii) Stock-Based Compensation

Stock-based compensation expense for equity awards granted to our employees and members of our board of directors is recognized on a straight-line basis over each award's vesting period. Recognized compensation expense is net of an estimated forfeiture rate, representing the percentage of awards that are expected to be forfeited (by termination of employment or service) prior to vesting. We use the Black-Scholes option pricing model to determine the fair value of stock options (as of the date of grant) which carry service conditions for vesting. We use the Monte Carlo valuation model to value equity awards (as of the date of grant) which carry combined market conditions and service conditions for vesting.

The calculation of the fair value of stock options and the recognition of stock-based compensation expense requires uncertain assumptions, including (a) the pre-vesting forfeiture rate of the award, (b) the expected term of the stock option, (c) the stock price volatility over the term of the stock option, and (d) the risk-free interest rate over the term of the stock option.

We estimate forfeiture rates based on our employees’ overall forfeiture history, which we believe will be representative of future results. We estimate the expected term of stock options granted based on our employees’ historical exercise patterns, which we believe will be representative of their future behavior. We estimate the volatility of our common stock on the date of grant based on historical volatility of our common stock for a look-back period that corresponds with the expected term. We estimate the risk-free interest rate based upon the U.S. Treasury yields in effect at award grant, for a period equaling the stock options’ expected term.

(ix) Foreign Currency Transactions and Translation

We translate the assets and liabilities of our foreign subsidiaries that are stated in their functional currencies (i.e., local operating currencies), to U.S. dollars at the rates of exchange in effect at the reported balance sheet date. Revenues and expenses are translated using the monthly average exchange rates during the reported period. Unrealized gains and losses from the translation of our subsidiaries’ financial statements (that are initially denominated in the corresponding functional currency) are included as a separate component of “accumulated other comprehensive loss” in the Condensed Consolidated Balance Sheets.

We record foreign currency transactions, when initially denominated in a currency other than the respective functional currency of our subsidiary, at the prevailing exchange rate on the date of the transaction. Resulting unrealized foreign exchange gains and losses from transactions with third parties are included in “accumulated other comprehensive loss” in the Condensed Consolidated Balance Sheets.

Beginning April 1, 2015, all unrealized foreign exchange gains and losses associated with our intercompany loans were included in "accumulated other comprehensive loss" in the Condensed Consolidated Balance Sheets, as these loans with our foreign subsidiaries are no longer expected to be settled in the "foreseeable future." For the period January 1, 2015 through March 31, 2015, unrealized foreign exchange gains and losses associated with our intercompany loans were included in "accumulated other comprehensive loss" in the Condensed Consolidated Balance Sheets and in "other income (expense), net" in the Condensed Consolidated Statements of Operations. In periods prior to January 1, 2015, all unrealized foreign exchange gains and losses associated with intercompany loans were included in “other income (expense), net” in the Condensed Consolidated Statements of Operations.

(x) Basic and Diluted Net (Loss) Income per Share

We calculate basic and diluted net (loss) income per share using the weighted average number of common shares outstanding during the periods presented. In periods of a net loss, basic and diluted loss per share are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include only dilutive stock options, warrants, and other common stock equivalents outstanding during the period.

(xi) Income Taxes

Deferred tax assets and liabilities are recorded based on the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the financial statements, as well as operating losses and tax credit carry forwards using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain.

We have recorded a valuation allowance to reduce our deferred tax assets, because we believe that, based upon a weighting of positive and negative factors, it is more likely than not that these deferred tax assets will not be realized. If/when we determine that our deferred tax assets are realizable, an adjustment to the corresponding valuation allowance would increase our net income in the period that such determination was made.

In the event that we are assessed interest and/or penalties from taxing authorities that have not been previously accrued, such amounts would be included in “benefit (provision) for income taxes” within the Condensed Consolidated Statements of Operations in the period the notice was received.

(xii) Research and Development Costs

Our research and development costs are expensed as incurred, or as certain milestone payments become due, generally triggered by clinical or regulatory events.

(xiii) Fair Value Measurements

We determine measurement-date fair value based on the proceeds that would be received through the sale of the asset, or that we would pay to settle or transfer the liability, in an orderly transaction between market participants. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include the following:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are publicly accessible at the measurement date.

Level 2: Observable prices that are based on inputs not quoted on active markets, but that are corroborated by market data. These inputs may include quoted prices for similar assets or liabilities or quoted market prices in markets that are not active to the general public.

Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

“Cash and cash equivalents” within our accompanying Condensed Consolidated Balance Sheets include certificates of deposit and money market funds that are valued utilizing Level 2 inputs. “Marketable securities” consist of mutual funds that are also valued utilizing Level 2 inputs.

The fair value of our “drug development liability” within our accompanying Condensed Consolidated Balance Sheets was estimated using the discounted income approach model. The unobservable inputs (i.e., Level 3 inputs) in this valuation model that have the most significant effect on these liabilities include (i) estimates of research and development personnel costs needed to perform the research and development services, (ii) estimates of expected cash outflows to third parties for services and supplies over the expected period that the services will be performed, and (iii) an appropriate discount rate for these expenditures. These inputs are reviewed for reasonableness by management on at least a quarterly basis.

“Acquisition-related contingent obligations” within our accompanying Condensed Consolidated Balance Sheets represent future amounts we may be required to pay in conjunction with our business combinations. See Note 9(a) for a discussion of contingent value rights granted as part of our acquisition of Talon, and Note 9(b) for the fair value of the liability associated with FDA approval of EVOMELA. These liabilities are valued using Level 3 inputs and include probabilities and assumptions related to the timing and likelihood of achievement of regulatory and sales milestones.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

Balance Sheet Account Detail

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Account Detail

BALANCE SHEET ACCOUNT DETAIL

The composition of selected financial statement captions that comprise the accompanying Condensed Consolidated Balance Sheets are summarized below:

(a) Cash and Cash Equivalents and Marketable Securities

As of June 30, 2015 and December 31, 2014, our holdings included within “cash and cash equivalents” and “marketable securities” were at major financial institutions.

Our investment policy requires that investments in marketable securities be in only highly-rated instruments, which are primarily U.S. treasury bills or U.S. treasury-backed securities, and limited investments in securities of any single issuer. We maintain cash balances in excess of federally insured limits with reputable financial institutions. To a limited degree, the Federal Deposit Insurance Corporation (FDIC) and other third parties insure these investments. However, these investments are not insured against the possibility of a complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. We manage such risks on our portfolio by investing in highly liquid, highly rated instruments, and limit investing in long-term maturity instruments.

The carrying amount of our equity securities, money market funds, bank certificate of deposits (“Bank CDs”), and mutual funds approximates their fair value (utilizing Level 1 or Level 2 inputs – see Note 2(xiii)) because of our ability to immediately convert these instruments into cash with minimal expected change in value.

The following is a summary of our “cash and cash equivalents” and “marketable securities”:



											Marketable Securities
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated fair Value		Cash and cash equivalents			Current		Long Term
June 30, 2015
Bank deposits	$	65,277	$	—	$	—	$	65,277	$	65,277		$	—	$	—
Money market funds	76,994		—		—		76,994		76,994			—		—
Bank CDs	245		—		—		245		—			245		—
Mutual funds	3,063		—		—		3,063		—			3,063		—
Total cash and equivalents and marketable securities	$	145,579	$	—	$	—	$	145,579	$	142,271		$	3,308	$	—
December 31, 2014
Bank deposits	$	62,997	$	—	$	—	$	62,997	$	62,997		$	—	$	—
Money market funds	66,945		—		—		66,945		66,945			—		—
Bank CDs	244		—		—		244		—			244		—
Mutual funds	3,062		—		—		3,062		—			3,062		—
Total cash and equivalents and marketable securities	$	133,248	$	—	$	—	$	133,248	$	129,942		$	3,306	$	—

As of June 30, 2015, none of these securities had been in a continuous unrealized loss position longer than one year.

(b) Property and Equipment

“Property and equipment, net of accumulated depreciation” consist of the following:



	June 30, 2015			December 31, 2014
Computer hardware and software	$	3,824		$	3,616
Laboratory equipment	609			643
Office furniture	348			344
Leasehold improvements	2,872			2,847
Property and equipment, at cost	7,653			7,450
(Less): Accumulated depreciation	(6,388		)	(6,045		)
Property and equipment, net of accumulated depreciation	$	1,265		$	1,405

Depreciation expense (included within “total operating costs and expenses” in the accompanying Condensed Consolidated Statements of Operations) for the six months ended June 30, 2015 and 2014, was $0.4 million and $0.7 million in each period.

“Inventories” consist of the following:



	June 30, 2015		December 31, 2014
Raw materials	$	1,061	$	1,507
Work-in-process*	5,216		3,979
Finished goods	2,517		3,714
Inventories	$	8,794	$	9,200

*We have contractual commitments to receive $6.4 million of raw materials for the future manufacture of ZEVALIN (representing strategic long-term supply), with expected delivery in the fourth quarter of 2015. Inventories at June 30, 2015 include $0.8 million of ZEVALIN work-in-process (representing packaged, but unlabeled vials) with expiry in December 2017. We expect to sell our existing and committed ZEVALIN inventory over the next few years. However, if our forecasted ZEVALIN sales or production strategy changes, it could result in a charge in that period to “cost of product sales (excludes amortization of intangible assets)” within the Condensed Consolidated Statements of Operations.

(d) Prepaid expenses

“Prepaid expenses” consist of the following:



	June 30, 2015		December 31, 2014
Prepaid operating expenses	$	2,008	$	3,112
Short term debt issuance costs	680		662
Prepaid expenses	$	2,688	$	3,774

(e) Other receivables

“Other receivables” consist of the (i) amounts we expect to be refunded from taxing authorities, primarily relating to fiscal year 2012 income taxes paid, (ii) amounts we expect to receive related to the CASI promissory note, (iii) amounts we will be reimbursed from our directors and officers insurance carrier, and (iv) amounts we expect to be reimbursed from certain third-parties for incurred research and development expenses.



	June 30, 2015		December 31, 2014
Income tax receivable	$	1,651	$	1,387
CASI secured promissory note (see Note 10)	1,500		—
Insurance receivable	365		—
Research and development expenses - reimbursements due	4,729		4,102
Other receivables	$	8,245	$	5,489

(f) Intangible Assets and Goodwill

“Intangible assets, net of accumulated amortization” consist of the following:



			June 30, 2015
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount		Full Amortization Period (months)	Remaining Amortization Period (months)
MARQIBO IPR&D (NHL indication)	$	17,600	$	—		$	—		$	—		$	17,600	n/a	n/a
EVOMELA IPR&D	7,700		—			—			—			7,700		n/a	n/a
BELEODAQ distribution rights	25,000		(1,875		)	—			—			23,125		160	148
MARQIBO distribution rights	26,900		(6,384		)	—			—			20,516		81	57
FOLOTYN distribution rights	118,400		(24,752		)	—			—			93,648		152	119
ZEVALIN distribution rights – U.S.	41,900		(28,871		)	—			—			13,029		123	45
ZEVALIN distribution rights – Ex-U.S.	23,490		(7,966		)	(4,023		)	—			11,501		96	57
FUSILEV distribution rights*	16,778		(7,912		)	—			(7,160		)	1,706		56	6
FOLOTYN out-license**	27,900		(7,747		)	—			(1,023		)	19,130		110	85
Total intangible assets	$	305,668	$	(85,507	)	$	(4,023	)	$	(8,183	)	$	207,955

* On February 20, 2015, the U.S. District Court for the District of Nevada found the patent covering FUSILEV to be invalid, and on February 27, 2015, we filed a Notice of Appeal of that decision. On March 6, 2015, the Court of Appeals for the Federal Circuit temporarily enjoined Sandoz International from launching its proposed generic levo-leucovorin products. On April 24, 2015, it was announced that Sandoz has commercialized a generic levo-leucovorin product. These events represented a “triggering event” under applicable GAAP for purposes of evaluating our FUSILEV distribution rights' recoverability as of March 31, 2015. Our impairment evaluation resulted in a $7.2 million impairment charge (non-cash) in the first quarter of 2015, and accelerated amortization expense recognition over the remainder of 2015 for the remaining $2.6 million net book value of FUSILEV distribution rights.

** On May 29, 2013, we amended our collaboration agreement with Mundipharma in order to modify the scope of their licensed territories and the respective development obligations. As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and royalty and milestone rates were modified. The modification of our associated royalty and milestone rights constituted a change in the contractual provisions under which we measured our original acquired intangible asset (i.e., FOLOTYN rights). We determined that an impairment charge (non-cash) of the FOLOTYN out-license rights to Mundipharma of $1.0 million resulted from this amendment.



			December 31, 2014
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount
MARQIBO IPR&D (NHL indication)	$	17,600	$	—		$	—		$	—		$	17,600
EVOMELA IPR&D	7,700		—			—			—			7,700
BELEODAQ distribution rights	25,000		(937		)	—			—			24,063
MARQIBO distribution rights	26,900		(4,225		)	—			—			22,675
FOLOTYN distribution rights	118,400		(20,030		)	—			—			98,370
ZEVALIN distribution rights – U.S.	41,900		(27,134		)	—			—			14,766
ZEVALIN distribution rights – Ex-U.S.	23,490		(7,402		)	(2,162		)	—			13,926
FUSILEV distribution rights	16,778		(6,270		)	—			—			10,508
FOLOTYN out-license	27,900		(6,385		)	—			(1,023		)	20,492
Total intangible assets	$	305,668	$	(72,383	)	$	(2,162	)	$	(1,023	)	$	230,100

Intangible asset amortization and impairment expense recognized during the six months ended June 30, 2015 and 2014 was $20.9 million, of which $13.7 million relates to current period amortization expense and $7.2 million relates to the impairment of the FUSILEV distribution rights, compared to $11.4 million of amortization expense, respectively.

Estimated intangible asset amortization expense (excluding incremental amortization from the reclassification of IPR&D to developed technology) for the remainder of 2015 and the five succeeding fiscal years and thereafter is as follows:



Years Ending December 31,
Remainder of 2015	$	13,835
2016	24,256
2017	24,256
2018	24,257
2019	21,651
2020	15,727
2021 and thereafter	58,673
	$	182,655

“Goodwill” is comprised of the following:



	June 30, 2015			December 31, 2014
Acquisition of Talon	$	10,526		$	10,526
Acquisition of ZEVALIN Ex-U.S. distribution rights	2,525			2,525
Acquisition of Allos	5,346			5,346
Foreign currency exchange translation effects	(402		)	(202		)
Goodwill	$	17,995		$	18,195

(g) Other assets

“Other assets” are comprised of the following:



	June 30, 2015		December 31, 2014
Equity securities (see Note 10)*	$	9,676	$	8,501
Supplies	241		234
2018 Convertible Notes issuance costs**	1,826		2,171
Executive officer life insurance – cash surrender value	8,209		6,958
Other assets	$	19,952	$	17,864

* These equity securities were excluded from “marketable securities” (see Note 3(a)) due to our intent to hold these securities for at least one year beyond June 30, 2015, as discussed in Note 10. Unrealized gains from these equity securities were recognized through “unrealized gain on available-for-sale securities" within the Condensed Consolidated Statements of Comprehensive Loss, and were $2.6 million for the six months ended June 30, 2015.

** In April 2015, the FASB issued Accounting Standards Update ("ASU") 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. However, ASU 2015-03 does not impact the recognition and measurement guidance for debt issuance costs. ASU 2015-03 is effective for our annual and interim reporting periods beginning January 1, 2016. Accordingly, we will record a reclassification of our 2018 Convertible Notes issuance costs, from “other assets” to “convertible senior notes” within our Consolidated Balance Sheets, beginning January 1, 2016.

(h) Accounts payable and other accrued liabilities

“Accounts payable and other accrued liabilities” are comprised of the following:



	June 30, 2015		December 31, 2014
Trade accounts payable and other accrueds	$	18,180	$	24,571
Accrued rebates	39,502		41,782
Accrued product royalty	3,009		5,182
Allowance for returns	1,586		1,135
Accrued data and distribution fees	2,729		3,952
Accrued GPO administrative fees	2,843		3,222
Inventory management fee	660		1,110
Allowance for chargebacks	3,314		4,040
Accounts payable and other accrueds	$	71,823	$	84,994

Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets specifically for GTN estimates (see Note 2(i)) are as follows:



Description	Rebates and Chargebacks			Data and Distribution, GPO Fees, and Inventory Management Fees			Returns
Balance as of December 31, 2013	$	33,967		$	5,373		$	2,900
Add: provisions (recovery)	76,636			21,330			(78		)
(Less): credits or actual allowances	(64,781		)	(18,419		)	(1,687		)
Balance as of December 31, 2014	45,822			8,284			1,135
Add: provisions	38,632			9,636			899
(Less): credits or actual allowances	(41,638		)	(11,688		)	(448		)
Balance as of June 30, 2015	$	42,816		$	6,232		$	1,586

(i) Deferred revenue

Deferred revenue (including current and long-term) is comprised of the following:



	June 30, 2015		December 31, 2014
CASI out-license (see Note 10)	$	—	$	9,959
FUSILEV deferred revenue*	7,039		—
Dr. Reddy's out-license (see Note 13(b)(iii))	462		—
Deferred revenue	$	7,501	$	9,959

* In the first quarter 2015, we deferred revenue recognition for $7.0 million related to certain FUSILEV product shipments that did not meet our revenue recognition criteria (see Note 2(i)(a)). The deferral resulted from our inability to estimate the rebate value (with requisite precision) that we expect to offer to our customers later in 2015, in order to compete with the generic levo-leucovorin products.

(j) Other long-term liabilities

Other long-term liabilities are comprised of the following:



	June 30, 2015		December 31, 2014
Accrued executive deferred compensation	$	5,989	$	4,694
Deferred rent (non-current portion)	275		364
Business acquisition liability	—		300
Other tax liabilities	730		730
Other long-term liabilities	$	6,994	$	6,088

Net Product Sales by Geographic Region and Product Line

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Net Product Sales by Geographic Region and Product Line

NET PRODUCT SALES BY GEOGRAPHIC REGION AND PRODUCT LINE

The below table presents our net product sales by geography for the three and six months ended June 30, 2015 and 2014:



	Three Months Ended June 30,								Six Months Ended June 30,
	2015				2014				2015				2014
United States	$	33,676	95.8	%	$	44,541	95.1	%	$	70,284	95.6	%	$	81,998	94.3	%
International:
Europe (ZEVALIN only)	514		1.5	%	796		1.7	%	1,097		1.5	%	1,836		2.1	%
Asia Pacific (ZEVALIN only)	954		2.7	%	1,518		3.2	%	2,176		3.0	%	3,117		3.6	%
Total international	1,468		4.2	%	2,314		4.9	%	3,273		4.4	%	4,953		5.7	%
Product sales, net	$	35,144	100.0	%	$	46,855	100.0	%	$	73,557	100.0	%	$	86,951	100.0	%

The below table presents our net product sales by product line for the three and six months ended June 30, 2015 and 2014:



	Three Months Ended June 30,								Six Months Ended June 30,
	2015				2014				2015				2014
FUSILEV	$	14,329	40.8	%	$	26,554	56.7	%	$	34,496	46.9	%	$	48,747	56.1	%
FOLOTYN	12,222		34.8	%	12,597		26.9	%	21,538		29.3	%	22,655		26.1	%
ZEVALIN	4,802		13.7	%	6,336		13.5	%	9,023		12.3	%	12,636		14.5	%
MARQIBO	2,080		5.9	%	1,368		2.9	%	3,974		5.4	%	2,913		3.4	%
BELEODAQ	1,711		4.9	%	—