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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2013	Feb. 17, 2014	Jun. 28, 2013
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Trading Symbol	MNKD
Entity Registrant Name	MANNKIND CORP
Entity Central Index Key	0000899460
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		377,208,424
Entity Public Float			$ 1,153,987,371

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 70,790	$ 61,840
State research and development credit exchange receivable - current		450
Prepaid expenses and other current assets	5,485	4,520
Total current assets	76,275	66,810
Property and equipment - net	176,557	183,961
State research and development credit exchange receivable - net of current portion	298	313
Other assets	5,516	230
Total	258,646	251,314
Current liabilities:
Accounts payable	3,860	4,555
Accrued expenses and other current liabilities	21,634	25,777
Facility financing obligation	102,300
Senior convertible notes		114,443
Total current liabilities	127,794	144,775
Senior convertible notes	98,439	97,583
Note payable to principal stockholder	49,521	119,635
Other liabilities	13,605
Total liabilities	289,359	361,993
Commitments and contingencies
Stockholders' deficit:
Undesignated preferred stock, $0.01 par value - 10,000,000 shares authorized; no shares issued or outstanding at December 31, 2012 and 2013
Common stock, $0.01 par value - 550,000,000 shares authorized at December 31, 2012 and 2013, respectively; 286,035,082 and 369,391,972 shares issued and outstanding at December 31, 2012 and 2013, respectively	3,697	2,860
Additional paid-in capital	2,261,996	1,991,379
Accumulated other comprehensive income (loss)	(4)	(6)
Deficit accumulated during the development stage	(2,296,402)	(2,104,912)
Total stockholders' deficit	(30,713)	(110,679)
Total	$ 258,646	$ 251,314

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2013	Dec. 31, 2012
Undesignated preferred stock, par value	$ 0.01	$ 0.01
Undesignated preferred stock, shares authorized	10,000,000	10,000,000
Undesignated preferred stock, shares issued
Undesignated preferred stock, shares outstanding
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	550,000,000	550,000,000
Common stock, shares issued	369,391,972	286,035,082
Common stock, shares outstanding	369,391,972	286,035,082

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended			275 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013
Revenue		$ 35	$ 50	$ 3,166
Operating expenses:
Research and development	$ 109,719	101,522	99,959	1,577,292
General and administrative	59,682	45,473	40,630	485,386
In-process research and development costs				19,726
Goodwill impairment				151,428
Total operating expenses	169,401	146,995	140,589	2,233,832
Loss from operations	(169,401)	(146,960)	(140,539)	(2,230,666)
Other income (expense)	(635)	(1,191)	1,541	(2,902)
Interest expense on note payable to principal stockholder	(6,309)	(10,491)	(10,883)	(45,134)
Interest expense on notes	(15,153)	(11,139)	(10,941)	(55,086)
Interest income	8	7	18	37,004
Loss before benefit for income taxes	(191,490)	(169,774)	(160,804)	(2,296,784)
Income tax benefit		408		382
Net loss	(191,490)	(169,366)	(160,804)	(2,296,402)
Deemed dividend related to beneficial conversion feature of convertible preferred stock				(22,260)
Accretion on redeemable preferred stock				(952)
Net loss applicable to common stockholders	$ (191,490)	$ (169,366)	$ (160,804)	$ (2,319,614)
Net loss per share applicable to common stockholders - basic and diluted	$ (0.64)	$ (0.94)	$ (1.32)
Shares used to compute basic and diluted net loss per share applicable to common stockholders	299,591	180,855	121,817

Consolidated Statements Of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended			275 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013
Net loss	$ (191,490)	$ (169,366)	$ (160,804)	$ (2,296,402)
Other comprehensive loss:
Cumulative translation (loss) gain	2	(2)	(3)	(4)
Unrealized gain (loss) on investments:
Unrealized holding gain (loss) during the period			(27)	48
Less: reclassification adjustment for gains (losses) included in net loss		(48)		(48)
Net unrealized gain (loss) on investments		(48)	(27)
Other comprehensive loss	2	(50)	(30)	(4)
Comprehensive loss	$ (191,488)	$ (169,416)	$ (160,834)	$ (2,296,406)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Series B Convertible Preferred Stock	Series C Convertible Preferred Stock	Series C Convertible Preferred Stock Issuable	Series C Convertible Preferred Stock Subscriptions Receivable	Common Stock	Additional Paid-in Capital	Notes Receivable from Stockholders	Notes Receivable from Officers	Other Comprehensive Income (Loss)	Deficit Accumulated During the Development Stage
Beginning Balance at Feb. 29, 1992	$ (11)					$ 10	$ 890				$ (911)
Capital contribution	20						20
Issuance of common stock (in shares)						73,000
Issuance of common stock	888					$ 1	887
Net loss	(1,175)										(1,175)
Ending Balance (in shares) at Feb. 28, 1993						1,071,000
Ending Balance at Feb. 28, 1993	$ (278)					$ 11	$ 1,797				$ (2,086)
Issuance of stock for notes receivable (in shares)
Issuance of stock for notes receivable						$ 8	$ 400	$ (400)
Issuance of common stock (in shares)						11,000
Issuance of common stock	$ 526						526
Net loss	(1,156)										$ (1,156)
Ending Balance (in shares) at Feb. 28, 1994						1,090,000
Ending Balance at Feb. 28, 1994	(908)					$ 11	2,723	(400)			(3,242)
Collection of stock subscription	400							400
Issuance of common stock (in shares)						36,000
Issuance of common stock	1,805						1,805
Net loss	(2,004)										(2,004)
Ending Balance (in shares) at Dec. 31, 1994						1,126,000
Ending Balance at Dec. 31, 1994	(707)					$ 11	4,528				(5,246)
Issuance of common stock for services	8						8
Exercise of stock options (in shares)						1,000
Exercise of stock options	22						22
Stock-based compensation	384						384
Net loss	(2,815)										(2,815)
Ending Balance (in shares) at Dec. 31, 1995						1,127,000
Ending Balance at Dec. 31, 1995	(3,108)					$ 11	4,942				(8,061)
Exercise of stock options (in shares)						3,000
Exercise of stock options	12						12
Issuance of common stock (in shares)						1,000
Issuance of common stock	59						59
Stock-based compensation	126						126
Net loss	(2,570)										(2,570)
Ending Balance (in shares) at Dec. 31, 1996						1,131,000
Ending Balance at Dec. 31, 1996	(5,481)					$ 11	5,139				(10,631)
Conversion of notes payable (in shares)						12,000
Conversion of notes payable	60						60
Exercise of stock options (in shares)						27,000
Exercise of stock options	135						135
Issuance of common stock (in shares)						548,000
Issuance of common stock	196					$ 6	190
Stock-based compensation	2						2
Net loss	(2,280)										(2,280)
Ending Balance (in shares) at Dec. 31, 1997						1,718,000
Ending Balance at Dec. 31, 1997	(7,368)					$ 17	5,526				(12,911)
Conversion of notes payable (in shares)						215,000
Conversion of notes payable	1,202					$ 2	1,200
Exercise of stock options (in shares)						68,000
Exercise of stock options	25					$ 1	24
Issuance of common stock (in shares)						2,253,000
Issuance of common stock	12,726					$ 23	12,703
Stock-based compensation	150						150
Net loss	(3,331)										(3,331)
Ending Balance (in shares) at Dec. 31, 1998						4,254,000
Ending Balance at Dec. 31, 1998	3,404					$ 43	19,603				(16,242)
Conversion of notes payable (in shares)						80,000
Conversion of notes payable	995					$ 1	994
Issuance of common stock (in shares)						162,000
Issuance of common stock	534					$ 2	532
Net loss	(5,679)										(5,679)
Ending Balance (in shares) at Dec. 31, 1999						4,496,000
Ending Balance at Dec. 31, 1999	(746)					$ 46	21,129				(21,921)
Conversion of notes payable (in shares)						63,000
Conversion of notes payable	1,074					$ 1	1,073
Issuance of Series B preferred stock for cash (in shares)		193,000
Issuance of Series B preferred stock for cash	15,000	$ 15,000
Discount on notes below market rate	241							241
Issuance of common stock (in shares)						4,690,000
Issuance of common stock	31,633					$ 46	33,945	(2,358)
Amount in excess of redemption obligation	999						999
Accrued interest on notes	(117)							(117)
Beneficial conversion feature of Series A/B convertible preferred stock	(993)						(993)
Accretion to redemption value on Series A redeemable convertible preferred stock	(149)						(149)
Stock-based compensation	9,609						9,609
Net loss	(24,661)										(24,661)
Ending Balance (in shares) at Dec. 31, 2000		193,000				9,249,000
Ending Balance at Dec. 31, 2000	31,890	$ 15,000				$ 93	65,613	(2,234)			(46,582)
Issuance of common stock for services (in shares)						3,000
Issuance of common stock for services	60						60
Exercise of stock options (in shares)						1,000
Exercise of stock options	13						13
Cash received for common stock issuable	3,900						3,900
Issuance of common stock (in shares)						3,052,000
Issuance of common stock	78,030					$ 30	78,000
Issuance of put option by stockholder	(2,949)						(2,949)
Payments on notes receivable	28							28
Record merger of entities	171,154						171,154
Accrued interest on notes	(189)							(189)
Accretion to redemption value on Series A redeemable convertible preferred stock	(239)						(239)
Stock-based compensation	1,565						1,565
Net loss	(48,245)										(48,245)
Ending Balance (in shares) at Dec. 31, 2001		193,000				12,305,000
Ending Balance at Dec. 31, 2001	235,018	$ 15,000				$ 123	317,117	(2,395)			(94,827)
Issuance of common stock for cash already received (in shares)						234,000
Issuance of common stock for cash already received						$ 2	(2)
Cash received for common stock issuable	98						98
Issuance of common stock (in shares)						3,922,000
Issuance of common stock	58,815					$ 40	58,775
Issuance of stock award to employee/consultants (in shares)						3,000
Issuance of stock award to employee/consultants	84						84
Payments on notes receivable	1,314						1,314
Put option redemption by stockholder	1,921						1,921
Accrued interest on notes	(229)							(229)
Deemed dividends related to beneficial conversion feature of Series B and Series C convertible preferred stock	(1,421)						(1,421)
Beneficial conversion feature of Series A/B convertible preferred stock	1,421						1,421
Accretion to redemption value on Series A redeemable convertible preferred stock	(251)						(251)
Stock-based compensation	268						268
Net loss	(206,265)										(206,265)
Ending Balance (in shares) at Dec. 31, 2002		193,000				16,464,000
Ending Balance at Dec. 31, 2002	90,773	$ 15,000				$ 165	378,010	(1,310)			(301,092)
Conversion of notes payable				$ 50,000	$ (50,000)
Issuance of common stock for cash already received (in shares)						17,000
Non-cash compensation expense of officer resulting from stockholder contribution	70						70
Issuance of common stock for cash already received	31,847				31,847
Notes receivable by stockholder issued to officers							225		$ (225)
Issuance of common stock (in shares)						3,494,000
Issuance of common stock	50,000					$ 35	49,965
Put shares sold to majority stockholder	623						623
Accrued interest on notes	(105)							(102)	(3)
Deemed dividends related to beneficial conversion feature of Series B and Series C convertible preferred stock	(1,017)						(1,017)
Beneficial conversion feature of Series A/B convertible preferred stock	1,017						1,017
Accretion to redemption value on Series A redeemable convertible preferred stock	(253)						(253)
Stock-based compensation	4,501						4,501
Net loss	(65,879)										(65,879)
Ending Balance (in shares) at Dec. 31, 2003		193,000				19,975,000
Ending Balance at Dec. 31, 2003	111,577	$ 15,000		50,000	(18,153)	$ 200	433,141	(1,412)	(228)		(366,971)
Conversion of notes payable (in shares)			356,000
Conversion of notes payable	18,153		$ 18,153	(18,153)	$ 18,153
Issuance of common stock for cash already received (in shares)			624,000
Issuance of common stock for cash already received			$ 31,847	$ (31,847)
Exercise of stock options (in shares)						86,000
Exercise of stock options	1,079						1,079
Exercise of warrants (in shares)						4,000
Exercise of warrants	46						46
Repayment of notes receivable by stockholder issued to officers	3						(225)		$ 228
Repayment of stock note receivable (in shares)						(90,000)
Repayment of stock note receivable						$ (1)	(1,518)	1,519
Conversion of Series A convertible preferred stock to common stock (in shares)						891,000
Conversion of Series A convertible preferred stock to common stock	5,248					$ 9	5,239
Conversion of Series B convertible preferred stock to common stock (in shares)		(193,000)				811,000
Conversion of Series B convertible preferred stock to common stock		$ (15,000)				$ 8	14,992
Conversion of Series C convertible preferred stock to common stock (in shares)			(980,000)			4,464,000
Conversion of Series C convertible preferred stock to common stock			$ (50,000)			$ 45	49,955
Issuance of common shares in exchange for warrants (in shares)						22,000
Accrued interest on notes	(107)							$ (107)
Issuance of common shares pursuant to underwritten public offerings (in shares)						6,557,000
Issuance of common shares pursuant to underwritten public offerings	83,176					$ 66	83,110
Issuance of common shares under Employee Stock Purchase Plan (in shares)						36,000
Issuance of common shares under Employee Stock Purchase Plan	430						430
Deemed dividends related to beneficial conversion feature of Series B and Series C convertible preferred stock	(19,822)						(19,822)
Beneficial conversion feature of Series A/B convertible preferred stock	19,822						19,822
Accretion to redemption value on Series A redeemable convertible preferred stock	(60)						(60)
Stock-based compensation	6,810						6,810
Net loss	(75,992)										(75,992)
Ending Balance (in shares) at Dec. 31, 2004						32,756,000
Ending Balance at Dec. 31, 2004	150,363					$ 327	592,999				(442,963)
Issuance of common shares in exchange for warrants	245						245
Exercise of stock options (in shares)						304,000
Exercise of stock options	1,951					$ 3	1,948
Issuance of common stock (in shares)						17,132,000
Issuance of common stock	170,234					$ 171	170,063
Issuance of stock award to employee/consultants (in shares)						40,000
Issuance of stock award to employee/consultants	(145)					$ 1	(146)
Issuance of common shares in exchange for warrants (in shares)						24,000
Issuance of common shares under Employee Stock Purchase Plan (in shares)						58,000
Issuance of common shares under Employee Stock Purchase Plan	495					$ 1	494
Stock-based compensation	(1,828)						(1,828)
Net loss	(114,338)										(114,338)
Ending Balance (in shares) at Dec. 31, 2005						50,314,000
Ending Balance at Dec. 31, 2005	206,977					$ 503	763,775				(557,301)
Issuance of common shares from the release of restricted stock units (in shares)						102,000
Issuance of common shares from the release of restricted stock units	(340)					$ 1	(341)
Exercise of stock options (in shares)						263,000
Exercise of stock options	2,312					$ 3	2,309
Exercise of warrants (in shares)						339,000
Cancellation of common shares for stock notes receivable (in shares)						(844,000)
Exercise of warrants	2,694					$ 3	2,691
Cancellation of common shares for stock notes receivable						$ (8)	8
Issuance of common stock (in shares)						23,000,000
Issuance of common stock	384,670					$ 230	384,440
Issuance of common shares pursuant to research agreement (in shares)						100,000
Issuance of common shares pursuant to research agreement	2,074					$ 1	2,073
Issuance of common shares under Employee Stock Purchase Plan (in shares)						86,000
Issuance of common shares under Employee Stock Purchase Plan	981					$ 1	980
Stock-based compensation	14,667						14,667
Net loss	(230,548)										(230,548)
Ending Balance (in shares) at Dec. 31, 2006						73,360,000
Ending Balance at Dec. 31, 2006	383,487					$ 734	1,170,602				(787,849)
Issuance of common shares from the release of restricted stock units (in shares)						146,000
Issuance of common shares from the release of restricted stock units	(524)					$ 2	(526)
Exercise of stock options (in shares)						607,000
Exercise of stock options	4,923					$ 6	4,917
Issuance of common stock (in shares)						27,014,000
Issuance of common stock	249,750					$ 270	249,480
Issuance of stock award to employee/consultants (in shares)						30,000
Issuance of stock award to employee/consultants	123						123
Issuance of common shares pursuant to research agreement (in shares)						100,000
Issuance of common shares pursuant to research agreement	944					$ 1	943
Issuance of common shares under Employee Stock Purchase Plan (in shares)						124,000
Issuance of common shares under Employee Stock Purchase Plan	1,065					$ 1	1,064
Stock-based compensation	17,522						17,522
Net loss	(293,190)										(293,190)
Ending Balance (in shares) at Dec. 31, 2007						101,381,000
Ending Balance at Dec. 31, 2007	364,100					$ 1,014	1,444,125				(1,081,039)
Issuance of common shares from the release of restricted stock units (in shares)						248,000
Issuance of common shares from the release of restricted stock units	(315)					$ 2	(317)
Issuance of stock award to employee/consultants (in shares)						30,000
Issuance of stock award to employee/consultants	(18)						(18)
Unrealized gain/(loss) on available-for-sale securities	295									$ 295
Issuance of common shares under Employee Stock Purchase Plan (in shares)						349,000
Issuance of common shares under Employee Stock Purchase Plan	900					$ 4	896
Stock-based compensation	24,811						24,811
Net loss	(303,039)										(303,039)
Ending Balance (in shares) at Dec. 31, 2008						102,008,000
Ending Balance at Dec. 31, 2008	86,734					$ 1,020	1,469,497			295	(1,384,078)
Issuance of common shares from the release of restricted stock units (in shares)						2,240,000
Issuance of common shares from the release of restricted stock units	(7,001)					$ 22	(7,023)
Exercise of stock options (in shares)						94,000
Exercise of stock options	383					$ 1	382
Issuance of common stock (in shares)						8,360,000
Issuance of common stock	59,724					$ 84	59,640
Unrealized gain/(loss) on available-for-sale securities	(581)									(581)
Unrealized gain/(loss) on foreign currency translation	5									5
Issuance of common shares under Employee Stock Purchase Plan (in shares)						323,000
Issuance of common shares under Employee Stock Purchase Plan	1,400					$ 3	1,397
Stock-based compensation	20,219						20,219
Net loss	(220,104)										(220,104)
Ending Balance (in shares) at Dec. 31, 2009						113,025,000
Ending Balance at Dec. 31, 2009	(59,221)					$ 1,130	1,544,112			(281)	(1,604,182)
Conversion of notes payable (in shares)						2,100,000
Conversion of notes payable	16,681					$ 21	16,660
Issuance of common shares from the release of restricted stock units (in shares)						962,000
Issuance of common shares from the release of restricted stock units	(3,392)					$ 10	(3,402)
Exercise of stock options (in shares)						318,000
Exercise of stock options	924					$ 3	921
Issuance of stock under share lending agreement (in shares)						9,000,000
Issuance of stock under share lending agreement	161					$ 90	71
Issuance of common stock (in shares)						2,100,000
Issuance of common stock	14,335					$ 21	14,314
Unrealized gain/(loss) on available-for-sale securities	361									361
Unrealized gain/(loss) on foreign currency translation	(6)									(6)
Issuance of common shares under Employee Stock Purchase Plan (in shares)						288,000
Issuance of common shares under Employee Stock Purchase Plan	1,605					$ 3	1,602
Stock-based compensation	13,580						13,580
Net loss	(170,560)										(170,560)
Ending Balance (in shares) at Dec. 31, 2010						127,793,000
Ending Balance at Dec. 31, 2010	(185,532)					$ 1,278	1,587,858			74	(1,774,742)
Beginning Balance at Dec. 31, 2009	(59,221)					$ 1,130	1,544,112			(281)	(1,604,182)
Ending Balance (in shares) at Dec. 31, 2011						131,523,000
Ending Balance at Dec. 31, 2011	(313,652)					$ 1,315	1,620,535			44	(1,935,546)
Beginning Balance at Dec. 31, 2010	(185,532)					$ 1,278	1,587,858			74	(1,774,742)
Conversion of notes payable (in shares)						1,400,000
Conversion of notes payable	11,116					$ 14	11,102
Issuance of common shares from the release of restricted stock units (in shares)						433,000
Issuance of common shares from the release of restricted stock units	(543)					$ 4	(547)
Exercise of stock options (in shares)						214,000
Exercise of stock options	628					$ 2	626
Issuance of common stock (in shares)						1,400,000
Issuance of common stock	9,540					$ 14	9,526
Unrealized gain/(loss) on available-for-sale securities	(27)									(27)
Unrealized gain/(loss) on foreign currency translation	$ (3)									(3)
Issuance of common shares under Employee Stock Purchase Plan (in shares)	282,816					283,000
Issuance of common shares under Employee Stock Purchase Plan	$ 769					$ 3	766
Stock-based compensation	11,204						11,204
Net loss	(160,804)										(160,804)
Ending Balance (in shares) at Dec. 31, 2011						131,523,000
Ending Balance at Dec. 31, 2011	(313,652)					$ 1,315	1,620,535			44	(1,935,546)
Conversion of notes payable (in shares)						71,250,000
Conversion of notes payable	184,537					$ 713	183,824
Issuance of common shares from the release of restricted stock units (in shares)						886,000
Issuance of common shares from the release of restricted stock units	(906)					$ 9	(915)
Exercise of stock options (in shares)						3,000
Exercise of stock options	9						9
Fair value of forward purchase contracts	1,237						1,237
Commitment to deliver common shares pursuant to litigation settlement to additional paid-in capital	6,056						6,056
Issuance of common shares pursuant to litigation settlement (in shares)						225,000
Issuance of common shares pursuant to litigation settlement	438					$ 2	436
Reclassification adjustment for gains (losses) included in net loss	(48)									(48)
Issuance of common shares pursuant to underwritten public offerings (in shares)						81,938,000
Issuance of common shares pursuant to underwritten public offerings	166,864					$ 819	166,045
Unrealized gain/(loss) on foreign currency translation	$ (2)									(2)
Issuance of common shares under Employee Stock Purchase Plan (in shares)	422,260					211,000
Issuance of common shares under Employee Stock Purchase Plan	$ 862					$ 2	860
Stock-based compensation	13,292						13,292
Net loss	(169,366)										(169,366)
Ending Balance (in shares) at Dec. 31, 2012						286,035,000
Ending Balance at Dec. 31, 2012	(110,679)					$ 2,860	1,991,379			(6)	(2,104,912)
Issuance of common shares from the release of restricted stock units (in shares)						1,870,000
Issuance of common shares from the release of restricted stock units	$ (4,801)					$ 20	(4,821)
Issuance of common shares pursuant to warrant exercises (in shares)						66,353,000
Exercise of stock options (in shares)	881,139					880,000
Exercise of stock options	$ 2,270					$ 9	2,261
Issuance of common shares pursuant to warrant exercises	172,149					$ 664	171,485
Issuance of common shares pursuant to debt conversions by Deerfield (in Shares)						1,095,000
Issuance of common shares pursuant to debt conversions by Deerfield	5,501					$ 12	5,489
Issuance of common stock (in shares)						9,824,000
Issuance of common stock	48,888					$ 99	48,789
Issuance of common shares pursuant to litigation settlement (in shares)						2,778,000
Issuance of common shares pursuant to litigation settlement						$ 28	(28)
Unrealized gain/(loss) on foreign currency translation	$ 2									2
Issuance of common shares under Employee Stock Purchase Plan (in shares)	463,290					557,000
Issuance of common shares under Employee Stock Purchase Plan	$ 1,263					$ 5	1,258
Beneficial conversion feature of Series A/B convertible preferred stock	998						998
Stock-based compensation	45,186						45,186
Net loss	(191,490)										(191,490)
Ending Balance (in shares) at Dec. 31, 2013						369,392,000
Ending Balance at Dec. 31, 2013	$ (30,713)					$ 3,697	$ 2,261,996			$ (4)	$ (2,296,402)

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended			275 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (191,490)	$ (169,366)	$ (160,804)	$ (2,296,402)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and accretion	14,057	14,402	15,912	140,834
Stock-based compensation expense	45,186	13,292	11,204	183,104
Stock expense for shares issued pursuant to research agreement				3,018
Loss (gain) on sale, abandonment/disposal or impairment of property and equipment	817	682	(4)	25,070
Accrued interest on investments, net of amortization of premiums (discounts)				(191)
In-process research and development				19,726
Goodwill impairment				151,428
Loss on available-for-sale securities		117		990
Fair value of forward purchase contract		1,237		1,237
Common shares issued pursuant to litigation settlement		438		438
Commitment to deliver common shares pursuant to litigation settlement		6,056		6,056
Other, net	2	(2)	(3)	1,101
Changes in assets and liabilities:
State research and development credit exchange receivable	466	(290)	830	(297)
Prepaid expenses and other current assets	(965)	(1,545)	224	(3,535)
Other assets			87	(230)
Accounts payable	(1,071)	44	2,672	3,347
Accrued expenses and other current liabilities	3,675	15,075	6,045	38,724
Other liabilities	591			589
Net cash used in operating activities	(128,732)	(119,860)	(123,837)	(1,724,993)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of marketable securities				(796,779)
Sales and maturities of marketable securities			3,828	796,393
Purchase of property and equipment	(7,987)	(637)	(6,858)	(335,733)
Proceeds from sale of property and equipment		77	93	454
Net cash used in investing activities	(7,987)	(560)	(2,937)	(335,665)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock and warrants, net of issuance costs	52,421	167,735	10,941	1,450,177
Collection of Series C convertible preferred stock subscriptions receivable				50,000
Issuance of Series B convertible preferred stock for cash				15,000
Cash received for common stock to be issued				3,900
Repurchase of common stock				(1,028)
Put shares sold to majority stockholder				623
Exercise of warrants for common stock	94,147			94,147
Borrowings under lines of credit				4,220
Payment of 2013 notes	(115,000)			(115,000)
Proceeds from issuance of facility financing obligation & milestone rights	119,500			119,500
Facility financing obligation & milestone rights issuance costs	(598)			(598)
Proceeds from notes receivables				1,742
Borrowings on notes payable to related party		12,750	53,000	387,750
Principal payments on notes payable to our principal stockholder				(70,000)
Borrowings on notes payable				3,460
Principal payments on notes payable to our principal stockholder				(1,667)
Proceeds from senior convertible notes				207,050
Payment of employment taxes related to vested restricted stock units	(4,801)	(906)	(547)	(17,828)
Net cash provided by financing activities	145,669	179,579	63,394	2,131,448
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	8,950	59,159	(63,380)	70,790
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	61,840	2,681	66,061
CASH AND CASH EQUIVALENTS, END OF PERIOD	70,790	61,840	2,681	70,790
SUPPLEMENTAL CASH FLOWS DISCLOSURES:
Cash paid for income taxes				26
Interest paid in cash, net of amounts capitalized to Construction in progress	13,452	9,755	17,248	72,604
Accretion on redeemable convertible preferred stock				(952)
Issuance of common stock upon conversion of notes payable				3,331
Increase in additional paid-in capital resulting from merger				171,154
Issuance of common stock for notes receivable				2,758
Issuance of common stock pursuant to debt conversion by Deerfield	6,500			6,500
Issuance of put option by stockholder				(2,949)
Put option redemption by stockholder				1,921
Issuance of Series C convertible preferred stock subscriptions				50,000
Issuance of Series A redeemable convertible preferred stock				4,296
Conversion of Series A redeemable convertible preferred stock				(5,248)
Non-cash construction in progress and property and equipment	856	4,072	250	856
Capitalization of interest on note payable to related party	7,886	14,219		22,105
Reduction of principal on note payable to related party upon issuance of common stock and exercise of warrants	$ 78,000	184,537	$ 11,116	290,334
Forward purchase contracts contribution to additional paid-in capital		29,317		29,317
Reclassification of forward purchase contracts to additional paid-in capital		$ 28,080		$ 28,080

Consolidated Statements Of Cash Flows (Parenthetical) - shares shares in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Series B Preferred Stock
Conversion of convertible preferred stock amount converted	15
Series C Preferred Stock
Conversion of convertible preferred stock amount converted		50

Description of business and basis of presentation

12 Months Ended

Dec. 31, 2013

Description of business and basis of presentation

1. Description of business and basis of presentation

Business — MannKind Corporation and subsidiaries (the “Company”) is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutic products for diseases such as diabetes. The Company’s lead product candidate, AFREZZA, (insulin human [rDNA origin]) inhalation powder, is an ultra rapid-acting insulin therapy that is in late-stage clinical investigation for the treatment of adults with type 1 or type 2 diabetes for the control of hyperglycemia.

AFREZZA consists of the Company’s proprietary Technosphere particles onto which insulin molecules are loaded. These loaded particles are then aerosolized and inhaled deep into the lung using the Company’s AFREZZA inhaler.

Basis of Presentation — The Company is considered to be in the development stage as its primary activities since incorporation have been establishing its facilities, recruiting personnel, conducting research and development, business development, business and financial planning, and raising capital. It is costly to develop therapeutic products and conduct clinical studies for these products. From its inception through December 31, 2013, the Company has reported accumulated net losses of $2.3 billion, which include a goodwill impairment charge of $151.4 million and cumulative negative cash flow from operations of $1.7 billion. At December 31, 2013, the Company’s capital resources consisted of cash and cash equivalents of $70.8 million. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

As of December 31, 2013, the Company had $30.1 million principal amount of available borrowings under the loan arrangement with The Mann Group, or the Loan Arrangement, although the Company anticipates using a portion of these available borrowings to capitalize accrued interest into principal as it becomes due and payable under the Loan Arrangement, upon mutual agreement of the parties (see Note 6). As described in Note 16, the Facility Agreement contains a financial covenant that requires the Company’s cash and cash equivalents, which include available borrowings under this Loan Arrangement, on the last day of each fiscal quarter to not be less than $25 million (see Note 16). Based on our current expectations, the Company believes that its existing capital resources will enable it to continue planned operations at least into the third quarter of 2014. However, the Company cannot provide assurances that its plans will not change or that changed circumstances will not result in the depletion of its capital resources more rapidly than it currently anticipates. The Company will need to raise additional capital, whether through a sale of equity or debt securities, a strategic business collaboration with a pharmaceutical company, the establishment of other funding facilities, licensing arrangements, asset sales or other means, in order to continue the development and commercialization of AFREZZA and other product candidates and to support its other ongoing activities. However, the Company cannot provide assurances that such additional capital will be available whether through the sale of equity or debt securities, a strategic business collaboration with a pharmaceutical company, the establishment of other funding facilities, licensing arrangements, asset sales or other means.

Capital resources potentially available to the Company include proceeds from the exercise of warrants issued in its February 2012 public offering, the Company’s at-the-market issuance sales agreements (see Note 18) and issuance of additional 2019 notes and/or tranche B notes (see Note 18) to Deerfield, as more fully described below:

In February 2012, the Company sold in an underwritten public offering 35,937,500 units at an aggregate price to the public of $86.3 million, with each unit consisting of one share of common stock and a warrant to purchase 0.6 of a share of common stock. As of December 31, 2013, there were 32,843,733 warrants outstanding that, if exercised, would result in proceeds of $47.3 million.

On March 18, 2013, the Company entered into at-the-market issuance sales agreements with two sales agents, under which the Company was permitted to issue and sell shares of its common stock having an aggregate offering price of up to $50.0 million under each agreement (provided that in no event was the Company permitted to issue and sell more than $50.0 million of shares of its common stock under both agreements in the aggregate) from time to time through either of the sales agents. As of December 31, 2013 the Company had sold $48.9 million in common stock through these agreements, net of fees, and no further sales through these agreements are permitted.

On July 1, 2013, the Company entered into the Facility Agreement, providing for the sale of up to $160.0 million of 2019 notes to Deerfield in four equal tranches of $40.0 million principal amount. In connection with the Facility Agreement, on July 1, 2013 the Company also entered into a Milestone Rights Purchase Agreement with Deerfield Private Design Fund and Horizon Santé FLML SÁRL (“HS” and together with Deerfield Private Design Fund, the “Milestone Purchasers”), pursuant to which, the Company sold the Milestone Purchasers certain rights to receive payments of up to $90.0 million upon the occurrence of specified strategic and sales milestones including the first commercial sale of an AFREZZA product and the achievement of specified net sales figures (see Note 16).

On July 1, 2013, Deerfield purchased the first tranche of 2019 notes and the Milestone Rights for an aggregate of $40.0 million. The closing of the second tranche of 2019 notes, which was subject to achievement and reporting of certain results from the Company’s two Phase 3 clinical studies of AFREZZA, occurred on September 5, 2013. The closing of the third tranche of 2019 notes occurred in conjunction with the payment, at maturity, of the 2013 notes on December 9, 2013. There can be no assurance that the conditions required for the purchase of the fourth tranche of the 2019 notes will be met or met in a timeframe necessary to support the Company’s liquidity needs (see Note 18).

On December 12, 2001, the stockholders of AlleCure Corp. (“AlleCure”) and CTL ImmunoTherapies Corp. (“CTL”) voted to exchange their shares for shares of Pharmaceutical Discovery Corporation (“PDC”). Upon approval of the merger, PDC then changed its name to MannKind Corporation. PDC was incorporated in the State of Delaware on February 14, 1991. The stockholders of PDC did not vote on the merger. At the date of the merger, Mr. Alfred Mann owned 76% of PDC, 59% of AlleCure and 69% of CTL. Accordingly, only the minority interest of AlleCure and CTL was stepped up to fair value using the purchase method of accounting. As a result of this purchase accounting, in-process research and development of $19.7 million and goodwill of $151.4 million were recorded at the entity level. The historical basis of PDC and the historical basis relating to the ownership interests of Mr. Mann in AlleCure and CTL have been reflected in the financial statements. For periods prior to December 12, 2001, the results of operations have been presented on a combined basis. All references in the accompanying financial statements and notes to the financial statements to number of shares, sales price and per share amounts of the Company’s capital stock have been retroactively restated to reflect the share exchange ratios for each of the entities that participated in the merger.

For periods subsequent to December 12, 2001, the accompanying financial statements have been presented on a consolidated basis and include the wholly-owned subsidiaries, AlleCure and CTL. On December 31, 2002, AlleCure and CTL merged with and into the Company and ceased to be separate entities.

Principles of Consolidation — The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated.

Segment Information — In accordance with Accounting Standards Codification (“ASC”) 280-10-50 Segment Reporting, operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed its operations and manages its business as one segment operating in the United States of America.

- Definition

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

+ References

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+ Details

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2013

Summary of significant accounting policies

2. Summary of significant accounting policies

Financial Statement Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. Management must apply significant judgment in this process. The more significant estimates reflected in these accompanying financial statements involve assessing long-lived assets for impairment, accrued expenses, including clinical trial expenses, valuation of forward purchase contracts, valuation of Milestone Rights, valuation of the Commitment Asset, valuation of stock-based compensation and the determination of the provision for income taxes and corresponding deferred tax assets and liabilities and any valuation allowance recorded against net deferred tax assets.

Cash and Cash Equivalents — The Company considers all highly liquid investments with original or remaining maturities of 90 days or less at the time of purchase, that are readily convertible into cash to be cash equivalents. As of December 31, 2012 and 2013, cash equivalents were comprised of cash and money market accounts with maturities less than 90 days from the date of purchase.

Concentration of Credit Risk — Financial instruments which potentially subject the Company to concentration of credit risk consist of cash and cash equivalents. Cash and cash equivalents consist of interest-bearing accounts, which are regularly monitored by management and held in high credit quality institutions.

State Research and Development Credit Exchange Receivable — The State of Connecticut provides certain companies with the opportunity to exchange certain research and development income tax credit carryforwards for cash in exchange for foregoing the carryforward of the research and development credits. The program provides for an exchange of research and development income tax credits for cash equal to 65% of the value of corporation tax credit available for exchange. Estimated amounts receivable under the program are recorded as a reduction of research and development expenses.

Milestone Rights — On July 1 2013, in conjunction with the execution of the Facility Agreement, the Company issued Milestone Rights to Deerfield whereby the Company agreed to provide Deerfield with pre-specified Milestone Payments upon the achievement of 13 specific Milestone Events related to the commercial release and future cumulative net sales of AFREZZA^®. The Company analyzed the Milestone Rights under the provisions of ASC 815 and determined that the agreement does not meet the definition of a freestanding derivative. Since the Company has not elected to apply the fair value option to the Milestone Rights Purchase Agreement, the Company recorded the Milestone Rights at their estimated fair value and accounted for the Milestone Rights as a liability by applying the indexed debt guidance contained in paragraphs ASC 470-10-25-3 and 35-4.

The Milestone Rights liability will be remeasured as the specified milestone events are achieved. Specifically, as each milestone event is achieved, the portion of the initially recorded Milestone Rights liability that pertains to the milestone event being achieved, will be remeasured to the amount of the specified related milestone payment. The resulting change in the balance of the Milestone Rights liability due to remeasurement will be recorded in our Statement of Operations as interest expense. Furthermore, the Milestone Rights liability will be reduced upon the settlement of each milestone payment. As a result, each milestone payment would be effectively allocated between a reduction of the recorded Milestone Rights liability and an expense representing a return on a portion of the Milestone Rights liability paid to the investor for the achievement of the related milestone event (see Note 16).

Commitment Asset — In connection with issuance of the first tranche of 2019 notes and the Milestone Rights, the Company recorded the Commitment Asset on July 1, 2013. The Commitment Asset represents the right to receive additional funding under future tranches of 2019 notes pursuant to the Facility Agreement. The initial value of the Commitment Asset was calculated using the income approach by estimating the fair value of the future tranches using a market debt rate commensurate with the risk of the future tranches and the fair value of the cash expected to be received by us and assessing the probability of the commitments being funded in the future based on the operational hurdles required for funding being met. The Commitment Asset attributable to each future tranche of 2019 notes under the Facility Agreement is derecognized and recorded as a debt discount on the 2019 notes when issued. The debt discount is amortized using the effective interest rate method over the life of the 2019 notes. Prior to derecognition occurring, the Company monitors the Commitment Asset on an ongoing basis to determine whether an impairment indicator is present that would result in a full or partial write down of the Commitment Asset as a result of events that may lead to the subsequent tranches of 2019 notes not being issued. Based on the monitoring procedures performed through December 31, 2013, the Company did not identify any indicators of impairment.

Fair Value of Financial Instruments — The Company utilizes fair value measurement guidance prescribed by GAAP to value its financial instruments. The guidance includes a definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value and expands disclosures about the use of fair value measurements. The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy:

Level 1 – Quoted prices for identical instruments in active markets.

Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 – Significant inputs to the valuation model are unobservable.

The carrying amounts reflected in the consolidated balance sheets for cash equivalents, other current assets, accounts payable, and accrued expenses and other, approximate fair value due to their relatively short maturities.

Goodwill and Identifiable Intangibles — As a result of the merger with AlleCure and CTL on December 12, 2001, as described in Note 1, goodwill of $151.4 million was recorded at the entity level in 2001. Upon adoption of ASC 350-10 Intangibles- Goodwill and Other, the Company adopted a policy of testing goodwill and intangible assets with indefinite lives for impairment at least annually, as of December 31, with any related impairment losses being recognized in earnings when identified. In December 2002 the Company concluded that the major AlleCure product development program should be terminated and that the clinical trials of the CTL product should be halted and returned to the research stage. As a result of this determination, the Company closed the CTL facility and reduced headcount for AlleCure and CTL by approximately 50%. In connection with the annual test for impairment of goodwill as of December 31, 2002, the Company determined that on the basis of the internal study, the goodwill recorded for the AlleCure and CTL units was potentially impaired. The Company performed the second step of the annual impairment test as of December 31, 2002 for each of the potentially impaired reporting units and estimated the fair value of the AlleCure and CTL programs using the expected present value of future cash flows which were expected to be negligible. Accordingly, the goodwill balance of $151.4 million was determined to be fully impaired and an impairment loss was recorded in 2002. Subsequent to December 31, 2002, the Company had no goodwill or intangibles with indefinite lives included on its balance sheets.

Property and Equipment — Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the term of the lease or the service lives of the improvements, whichever is shorter. Maintenance and repairs are expensed as incurred. Assets under construction are not depreciated until placed into service.

Impairment of Long-Lived Assets — The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable in accordance with ASC 360-10-35Property Plant and Equipment. Assets are considered to be impaired if the carrying value may not be recoverable based upon management’s assessment of the following events or changes in circumstances:

•

significant changes in the Company’s strategic business objectives and utilization of the assets;

•

a determination that the carrying value of such assets cannot be recovered through undiscounted cash flows;

•

loss of legal ownership or title to the assets;

•

a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; or

•

the impact of significant negative industry or economic trends.

If the Company believes an asset to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets. Any write-downs would be treated as permanent reductions in the carrying amount of the asset and an operating loss would be recognized. No asset impairment was recognized during the years ended December 31, 2011, 2012 and 2013, respectively.

Income Taxes — The provisions for federal, foreign, state, and local income taxes are calculated on pre-tax income based on current tax law and include the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be recovered or settled. A valuation allowance is recorded to reduce net deferred income tax assets to amounts that are more likely than not to be realized.

Income tax positions are considered for uncertainty in accordance with ASC 740-10-25 Income Taxes, The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. Therefore, no liabilities for uncertain income tax positions have been recorded. If a tax position does not meet the minimum statutory threshold to avoid payment of penalties, the Company recognizes an expense for the amount of the penalty in the period the tax position is claimed in the tax return of the Company. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense, if any. Penalties, if probable and reasonably estimable, are recognized as a component of income tax expense.

Significant management judgment is involved in determining the provision for income taxes, deferred tax assets, deferred tax liabilities, and any valuation allowance recorded against net deferred tax assets. Due to uncertainties related to the realization of the Company’s deferred tax assets as a result of its history of operating losses, a valuation allowance has been established against the gross deferred tax asset balance. The valuation allowance is based on management’s estimates of taxable income by jurisdiction in which the Company operates and the period over which deferred tax assets will be recoverable. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, a change in the valuation allowance may be needed, which could materially impact the Company’s financial position and results of operations.

Contingencies — Contingencies are recorded in accordance with ASC 450 Contingencies. Accordingly, the Company records a loss contingency for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These accruals represent management’s best estimate of probable loss. Disclosure also is provided when it is reasonably possible that a loss will be incurred or when it is reasonably possible that the amount of a loss will exceed the recorded provision. On a quarterly basis, the Company reviews the status of each significant matter and assesses its potential financial exposure. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to pending claims and litigation and may revise our estimates. These revisions in the estimates of the potential liabilities could have a material impact on our consolidated results of operations and financial position.

Stock-Based Compensation — As of December 31, 2013, the Company had three active stock-based compensation plans, which are described more fully in Note 12. The Company accounts for all share-based payments to employees, including grants of stock awards and the compensatory elements of the employee stock purchase plan in accordance with ASC 718. ASC 718 Compensation — Stock Compensation (“ASC 718”) requires all share-based payments to employees, including grants of stock options, restricted stock units, performance-based awards and the compensatory elements of employee stock purchase plans, to be recognized in the income statement based upon the fair value of the awards at the grant date. The Company uses the Black-Scholes option valuation model to estimate the grant date fair value of employee stock options and the compensatory elements of employee stock purchase plans. Restricted stock units are valued based on the market price on the grant date. The Company evaluates stock awards with performance conditions as to the probability that the performance conditions will be met and estimates the date at which the performance conditions will be met in order to properly recognize stock-based compensation expense over the requisite service period.

Warrants — The Company has issued warrants to purchase shares of its common stock. Warrants have been accounted for within equity in accordance with the provisions of ASC 815-40, Contracts in an Entity’s Own Stock, previously EITF Issue No. 00-19: Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock.

Forward Contracts — The Company has entered into agreements with The Mann Group whereby the Company agreed to sell and The Mann Group agreed to purchase common stock and/or warrants. These agreements have been accounted for as forward contracts, having met the definition of derivative instruments in accordance with the provisions of ASC 815 Derivatives and Hedging. The Company determines the fair value of the forward contract upon its issuance, records fair value adjustments of the forward contract to Other income (expense) during the reporting period and through the settlement of the forward contract, and reclassifies the forward contract to equity upon settlement of the forward contract.

Comprehensive Loss — Other comprehensive loss is recorded in accordance with ASC 220-10-45 Comprehensive Income, which requires that all components of comprehensive loss be reported in the financial statements in the period in which they are recognized. Other comprehensive loss includes certain changes in stockholders’ equity that are excluded from net income. Specifically, the Company includes unrealized gains and losses on its available-for-sale securities and cumulative translation gains and losses in other comprehensive loss.

Research and Development Expenses — Research and development expenses consist of costs associated with the clinical trials of the Company’s product candidates, manufacturing supplies and other development materials, including raw material purchases of insulin, compensation and other expenses for research and development personnel, costs for consultants and related contract research, facility costs, and depreciation. Research and development costs, which are net of any tax credit exchange recognized for the Connecticut state research and development credit exchange program, are expensed as incurred consistent with ASC 730-10 Research and Development.

Clinical Trial Expenses — Clinical trial expenses, which are reflected in research and development expenses in the accompanying statements of operations, result from obligations under contracts with vendors, consultants, and clinical site agreements in connection with conducting clinical trials. The financial terms of these contracts are subject to negotiations which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company under such contracts. The appropriate level of trial expenses are reflected in the Company’s financial statements by matching period expenses with period services and efforts expended. These expenses are recorded according to the progress of the trial as measured by patient progression and the timing of various aspects of the trial. Clinical trial accrual estimates are determined through discussions with internal clinical personnel and outside service providers as to the progress or state of completion of trials, or the services completed. Service provider status is then compared to the contractually obligated fee to be paid for such services. During the course of a clinical trial, the Company may adjust the rate of clinical expense recognized if actual results differ from management’s estimates.

Interest Expense — Interest costs are expensed as incurred, except to the extent such interest is related to construction in progress, in which case interest is capitalized. Interest expense, net of interest capitalized, for the years ended December 31, 2011, 2012 and 2013 was $21.8 million, $21.6 million and $21.5 million, respectively. Interest costs capitalized for the years ended December 31, 2011, 2012, and 2013 were $0.4 million, $0.3 million, and $0.4 million, respectively.

Net Loss Per Share of Common Stock — Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period, excluding the dilutive effects of converting redeemable preferred stock, warrants to purchase redeemable convertible preferred stock and options. Diluted net loss per common share is computed by dividing the net loss by the sum of the weighted-average number of common shares outstanding during the period plus the potential dilutive effects of redeemable convertible preferred stock and warrants to purchase redeemable convertible preferred stock, and options outstanding during the period calculated in accordance with the treasury stock method, but are excluded if their effect is anti-dilutive. Because the impact of these items is anti-dilutive during periods of net loss, there was no difference between basic and diluted loss per common share for the year ended December 31, 2011, 2012 and 2013.

Restructuring Charges— The Company made estimates and judgments regarding the amount and timing of our restructuring expense and liability, including current and future period termination benefits, lease termination costs, and other exit costs to be incurred when related actions take place. We have also assessed the recoverability of certain long-lived assets employed in the business and, in certain instances shortened the expected useful life of the assets based on changes in their expected use. When we determine that the useful lives of assets are shorter than we had originally estimated, we record additional depreciation to reflect the assets’ new shorter useful lives. Severance and other related costs and asset-related charges are reflected within our consolidated statement of operations as a component of total restructuring charges incurred. Actual results may differ from these estimates.

Recently Issued Accounting Standards — From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.

In February 2013, the FASB issued Accounting Standards Update (ASU) 2013-02, Comprehensive Income (Topic 220) — Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. These amendments do not change the current requirements for reporting net income or other comprehensive income in the financial statements. These amendments provide for additional disclosure requirements for amounts reclassified out of accumulated other comprehensive income. These amendments are effective prospectively for interim and annual periods beginning after December 15, 2012. Early adoption is permitted. Effective January 1, 2013, the Company adopted the new requirements as set forth in ASU 2013-02 in the disclosure of comprehensive income on the Company’s consolidated financial statements. The adoption of the new requirements did not have a significant impact on the Company’s consolidated financial statements.

In July 2013, the FASB ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). The amendments in this ASU provide guidance on the financial statements presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions, in which case such an unrecognized tax benefit should be presented in the financial statements as a liability. The amendments in this ASU do not require new recurring disclosures. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of ASU 2013-11 will have an impact on the Company’s consolidated financial statements.

State research and development credit exchange receivable

12 Months Ended

Dec. 31, 2013

State research and development credit exchange receivable

3. State research and development credit exchange receivable

The State of Connecticut provides certain companies with the opportunity to exchange certain research and development income tax credit carryforwards for cash in exchange for forgoing the carryforward of the research and development income tax credits. The program provides for an exchange of research and development income tax credits for cash equal to 65% of the value of corporation tax credit available for exchange. Estimated amounts receivable under the program are recorded as a reduction of research and development expenses. During the years ended December 31, 2011, 2012 and 2013, research and development expenses were offset by $609,000, $289,000 and $282,000, respectively.

Property and equipment

12 Months Ended

Dec. 31, 2013

Property and equipment

4. Property and equipment

Property and equipment consist of the following (dollar amounts in thousands):


	Estimated Useful Life (Years)		December 31,
	Estimated Useful Life (Years)		2012			2013
Land		—	$	5,273		$	5,273
Buildings		39-40		54,948			54,948
Building improvements		5-40		114,245			114,099
Machinery and equipment		3-15		81,382			82,189
Furniture, fixtures and office equipment		5-10		5,239			5,046
Computer equipment and software		3		11,840			11,289
Leasehold improvements		4		17			17
Construction in progress				12,266			14,756

				285,210			287,617
Less accumulated depreciation and amortization				(101,249	)		(111,060	)

Total property and equipment, net			$	183,961		$	176,557

Leasehold improvements are amortized over four years which is the shorter of the term of the lease or the service lives of the improvements. Depreciation and amortization expense related to property and equipment for the years ended December 31, 2011, 2012 and 2013, and the cumulative period from February 14, 1991 (date of inception) to December 31, 2013 was $14.6 million, $13.0 million, $11.5 million and $133.3 million, respectively.

No asset impairment was recognized during the years ended December 31, 2011, 2012 and 2013.

In December 2009, the Company recognized a loss on disposal of approximately $12.8 million in research and development expense related to the abandonment of first-generation inhaler specific assets which would no longer be used as the Company pursued the commercialization of the next-generation device.

Accrued expenses and other current liabilities

12 Months Ended

Dec. 31, 2013

Accrued expenses and other current liabilities

5. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities are comprised of the following (in thousands):


	December 31,
	2012		2013
Salary and related expenses	$	10,074	$	12,193
Research and clinical trial costs		5,995		1,311
Accrued interest		4,533		2,082
Construction in progress		3,878		342
Other		1,297		5,706

Accrued expenses and other current liabilities	$	25,777	$	21,634

Related-party arrangements

12 Months Ended

Dec. 31, 2013

Related-party arrangements

6. Related-party arrangements

In October 2007, the Company entered into a $350.0 million loan arrangement (the “Loan Arrangement”) with its principal stockholder. The Loan Arrangement has been amended from time to time. In February 2009, the promissory note underlying the Loan Arrangement was revised as a result of the principal stockholder being licensed as a finance lender under the California Finance Lenders Law. Accordingly, the lender was revised to The Mann Group. Until January 1, 2013, interest on outstanding principal amounts accrued at a fixed rate equal to the one-year LIBOR rate as reported by the Wall Street Journal on the date of such advance plus 3% per annum. Based on the amended terms of the agreement, the rate was fixed at 5.84% going forward. On October 31, 2013, the promissory note was further amended to, among other things, extend the maturity date of the loan to January 5, 2020, extend the date through which the Company can borrow under the Loan Arrangement to December 31, 2019, increase the aggregate borrowing amount under the Loan Arrangement from $350.0 million to $370.0 million, provide that repayments or cancellations of principal under the Loan Arrangement will not be available for reborrowing, and to cancel $78.0 million of principal indebtedness under the Loan Arrangement as payment for the aggregate exercise price of warrants, in accordance with the Common Stock and Warrant Purchase Agreement entered into with The Mann Group on October 18, 2012 (the “Mann Group Warrants”). The note payable to our principal stockholder is excluded from current liabilities due to the amendment on October 31, 2013 and presented as a non-current liability as of December 31, 2013. In addition, the Company and The Mann Group agreed to capitalize into principal $7.9 million of accrued interest that became due and payable upon cancellation of the $78.0 million of principal indebtedness.

As of December 31, 2013, the total principal amount outstanding under the Loan Arrangement was $49.5 million, and the amount available for future borrowings was $30.1 million. Interest is due and payable quarterly in arrears on the first day of each calendar quarter for the preceding quarter, or at such other time as the Company and The Mann Group mutually agree. All or any portion of accrued and unpaid interest that becomes due and payable may be paid-in-kind and capitalized as additional borrowings at any time and would be classified as non-current upon mutual agreement of both parties. The Mann Group can require us to prepay up to $200.0 million in advances that have been outstanding for at least 12 months (less approximately $105.0 million aggregate principal amount that has been cancelled in connection with two common stock purchase agreements — a Common Stock Purchase Agreement between us and The Mann Group dated August 2010 and The Mann Group Common Stock Purchase Agreement). If The Mann Group exercises this right, the Company will have 90 days after The Mann Group provides written notice (or the number of days to maturity of the note if less than 90 days) to prepay such advances. Subject to the foregoing, in the event of a default under our loan arrangement with The Mann Group, all unpaid principal and interest either becomes immediately due and payable or may be accelerated at The Mann Group’s option, and the interest rate will increase to the one-year LIBOR rate calculated on the date of the initial advance or in effect on the date of default, whichever is greater, plus 5% per annum. All borrowings under the Loan Arrangement are unsecured. The Loan Arrangement contains no financial covenants. There are no warrants associated with the Loan Arrangement.

In August 2010, the Company entered into a letter agreement confirming a previous commitment by The Mann Group to not require the Company to prepay amounts outstanding under the amended and restated promissory note, if the prepayment would require the Company to use its working capital resources. In addition, The Mann Group entered into a subordination agreement with Deerfield pursuant to which The Mann Group agreed with Deerfield not to demand or accept any payment under the Loan Arrangement until the Company’s payment obligations to Deerfield under the Facility Agreement have been satisfied in full.

On August 10, 2010, the Company entered into a common stock purchase agreement with The Mann Group. Under this common stock purchase agreement, the Company was required to issue and sell, and The Mann Group was obligated to purchase, the same number of shares of the Company’s common stock that Seaside 88, LP (“Seaside”) purchased on each closing date under its agreement with the Company. The price of the shares that the Company sold to The Mann Group under the agreement was equal to the greater of $7.15 per share (the closing bid price of the Company’s common stock on August 10, 2010) and the closing bid price of the Company’s common stock on the trading day immediately preceding the applicable closing date. The aggregate purchase price for the shares of common stock the Company issued and sold to The Mann Group was paid by cancelling an equal amount of the outstanding principal under the $350.0 million loan arrangement provided by The Mann Group. An August 2010 amendment and restatement of the Company’s promissory note issued to The Mann Group in connection with the Loan Arrangement also provided for the cancellation of indebtedness under the note as described above and the elimination of the Company’s ability to reborrow under the note the amount of any indebtedness that was cancelled. The common stock purchase agreement with The Mann Group terminated upon termination of the Seaside agreement in the quarter ended September 30, 2011.

In the fourth quarter of 2010, the Company issued and sold a total of 2,100,000 shares of common stock to Seaside for net proceeds of $14.1 million in accordance with the Company’s common stock purchase agreement with Seaside. During the quarter ended March 31, 2011, the Company issued and sold a total of 1,400,000 shares of common stock to Seaside for net proceeds of $9.7 million. No additional shares of common stock were sold to Seaside under this agreement subsequent to the quarter ended March 31, 2011. As of December 31, 2011, the Company had issued and sold a total of 3,500,000 shares of common stock to Seaside for net proceeds of $23.8 million in accordance with the agreement. The agreement with Seaside terminated during the quarter ended September 30, 2011. Concurrently, with the sales to Seaside, the Company issued and sold a total of 2,100,000 and 1,400,000 shares of common stock to The Mann Group, an entity controlled by the Company’s principal stockholder, in 2010 and 2011, respectively, for a total purchase price of $16.7 million and $11.1 million, respectively, which was paid by the cancellation of outstanding principal under the Company’s amended and restated promissory note with The Mann Group.

On February 8, 2012, the Company sold $86.3 million worth of units in an underwritten public offering, with each unit consisting of one share of common stock and a warrant to purchase 0.6 of a share of common stock. Concurrent with this public offering, The Mann Group agreed to purchase $77.2 million worth of restricted shares of common stock to be paid, at the discretion of the Company, by cash or by cancellation of principal indebtedness under the amended loan arrangement, subject to stockholder approval to increase the number of authorized shares. In May 2012, the Company’s stockholders approved an increase in the authorized shares of common stock from 250,000,000 to 350,000,000. On June 27, 2012, the Company completed the closing of the sale of 31,250,000 share of its common stock through the cancellation of outstanding indebtedness under the loan agreement (see Note 10).

In October 2012, the Company sold $92.0 million worth of units in an underwritten public offering, with each unit to purchase one share of common stock and a warrant to purchase at 0.75 of a share of common stock. Concurrent with the underwritten public offering, the Company entered into a Common Stock and Warrant Purchase Agreement on October 18, 2012, in which the Company was required to issue and sell and The Mann Group was obligated to purchase 40,000,000 restricted shares of the Company’s common stock at a purchase price of $2.59 per share (the consolidated closing bid price of the Company’s common stock on October 17, 2012), and 40,000,000 warrants to purchase up to an aggregate of 30,000,000 restricted shares of the Company’s common stock at a purchase price of $0.125 for each share of the Company’s common stock underlying the warrants, in exchange for cancellation of outstanding principal under the amended and restated promissory note with The Mann Group.

The restricted shares sold to The Mann Group may not be sold, pledged, assigned or transferred unless (i) the shares have been registered with the Securities and Exchange Commission or (ii) the restricted shares are exempt from SEC registration requirements and the Company has obtained an opinion from the Company’s counsel that the shares may be sold lawfully without registration.

As a result of the special meeting of the Company’s stockholders held on December 20, 2012 in which the Company’s stockholders approved an amendment to its Amended and Restated Certificate of Incorporation to increase the authorized shares of its common stock from 350,000,000 shares to 550,000,000 shares, the Company completed the closing of the Common Stock and Warrant Purchase Agreement. The aggregate purchase price for the shares and warrants that the Company issued to The Mann Group was approximately $107.4 million and was paid for by cancelling principal indebtedness owed to The Mann Group under the amended and restated promissory note. The cancelled principal amount became available for reborrowing until the October 31, 2013 amendment discussed above. Additionally, in accordance with the terms of the note, the Company elected to capitalize the accrued and unpaid interest on the cancelled principal amount that became due upon the closing (see Note 10).

The principal amount outstanding under the Loan Arrangement as of December 31, 2012 and 2013, respectively, subsequent to the completion of the common stock purchase agreements was as follows (in thousands):


Principal amount outstanding at December 31, 2012	$	119,635
Capitalization of accrued and unpaid interest due and payable as of October 31, 2013		7,886
Reduction of principal indebtedness related to the issuance of common stock pursuant to The Mann Group Warrants completed on October 31, 2013		(78,000	)

Principal amount outstanding at December 31, 2013	$	49,521

As of December 31, 2012 and December 31, 2013, the Company had accrued and unpaid interest of $2.2 million and $0.6 million, recorded in accrued expenses and other current liabilities and other liabilities, respectively, which related to the amount outstanding and had $125.4 million and $30.1 million, respectively, of available borrowings. Interest expense on the Company’s note payable to our principal stockholder for the years ended December 31, 2011, 2012 and 2013 was $10.9 million, $10.5 million and $6.3 million, respectively.

In connection with certain meetings of the Company’s board of directors and on other occasions when the Company’s business necessitated air travel for the Company’s principal stockholder and other Company employees, the Company utilized the principal stockholder’s private aircraft, and the Company paid the charter company that manages the aircraft on behalf of the Company’s majority shareholder approximately $111,000, $200,000 and $82,000, respectively, for the years ended December 31, 2011, 2012 and 2013 on the basis of the corresponding cost of commercial airfare.

The Company has entered into indemnification agreements with each of its directors and executive officers, in addition to the indemnification provided for in its amended and restated certificate of incorporation and amended and restated bylaws (see Note 13).

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Senior convertible notes

12 Months Ended

Dec. 31, 2013

Senior convertible notes

7. Senior convertible notes

Senior convertible notes consist of the following (in thousands):


	December 31,
	2012			2013
2013 notes
Principal amount	$	115,000		$	—
Unaccreted debt issuance cost		(557	)		—

Net carrying amount		114,443			—

2015 notes
Principal amount	$	100,000		$	100,000
Unaccreted debt issuance cost		(2,417	)		(1,561	)

Net carrying amount		97,583			98,439

Senior convertible notes	$	212,026		$	98,439

On August 18, 2010, the Company completed a Rule 144A offering of $100.0 million aggregate principal amount of 5.75% Senior Convertible Notes due 2015 (the “2015 notes”). The 2015 notes are governed by the terms of an indenture dated as of August 24, 2010 (the “2015 Note Indenture”). The 2015 notes bear interest at the rate of 5.75% per year on the principal amount, payable in cash semi-annually in arrears on February 15 and August 15 of each year, beginning February 15, 2011. The Company had accrued interest of $2.2 million and $2.4 million as of December 31, 2012 and 2013, respectively, related to the 2015 notes. The 2015 notes are general, unsecured, senior obligations of the Company and effectively rank junior in right of payment to all of the Company’s secured debt, to the extent of the value of the assets securing such debt, and to the debt and all other liabilities of the Company’s subsidiaries. The maturity date of the 2015 notes is August 15, 2015 and payment is due in full on that date for unconverted securities. Holders of the 2015 notes may convert, at any time prior to the close of business on the business day immediately preceding the stated maturity date, any outstanding principal into shares of the Company’s common stock at an initial conversion rate of 147.0859 shares per $1,000 principal amount, which is equal to a conversion price of approximately $6.80 per share, subject to adjustment. Except in certain circumstances, if the Company undergoes a fundamental change: (1) the Company will pay a make-whole premium on the 2015 notes converted in connection with a fundamental change by increasing the conversion rate on such Notes, which amount, if any, will be based on the Company’s common stock price and the effective date of the fundamental change, and (2) each holder of 2015 notes will have the option to require the Company to repurchase all or any portion of such holder’s notes at a repurchase price of 100% of the principal amount of the notes to be repurchased plus accrued and unpaid interest, if any. The Company may elect to redeem some or all of the 2015 notes if the closing stock price has equaled 150% of the conversion price for at least 20 of the 30 consecutive trading days ending on the trading day before the Company’s redemption notice. The redemption price will equal 100% of the principal amount of the 2015 notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, plus a make-whole payment equal to the sum of the present values of the remaining scheduled interest payments through and including August 15, 2015 (other than interest accrued up to, but excluding, the redemption date). The Company will be obligated to make the make-whole payment on all the 2015 notes called for redemption and converted during the period from the date the Company mailed the notice of redemption to and including the redemption date. The Company may elect to make the make-whole payment in cash or shares of its common stock, subject to certain limitations. Under the terms of the 2015 Note Indenture, the conversion option can be net-share settled and the maximum number of shares that could be required to be delivered under the contract, including the make-whole shares, is fixed and less than the number of authorized and unissued shares less the maximum number of shares that could be required to be delivered during the contract period under existing commitments. Applying the Company’s sequencing policy, the Company performed an analysis at the time of the offering of the 2015 notes and each reporting date since and concluded that the number of available authorized shares at the time of the offering and each subsequent reporting date was sufficient to deliver the number of shares that could be required to be delivered during the contract period under existing commitments.

The Company incurred approximately $4.2 million in issuance costs which are recorded as an offset to the 2015 notes in the accompanying condensed consolidated balance sheets. These costs are being charged to interest expense using the effective interest method over the term of the 2015 notes.

The 2015 notes contain provisions that upon an acceleration of certain indebtedness, which would include the 2019 notes described in Note 16, that the holders may elect to accelerate the Company’s repayment obligations under the notes if such acceleration is not cured, waived, rescinded or annulled. There can be no assurance that the holders would not choose to exercise these rights in the event such events were to occur.

On December 12, 2006, the Company completed an offering of $115.0 million aggregate principal amount of 3.75% 2013 notes, including $15.0 million aggregate principal amount of the 2013 notes sold pursuant to the underwriters’ over-allotment option that was exercised in full. The 2013 notes are governed by the terms of an indenture dated as of November 1, 2006 and a First Supplemental Indenture, dated as of December 12, 2006 (the “2013 Note Indenture”). The 2013 notes bear interest at the rate of 3.75% per year on the principal amount, payable in cash semi-annually in arrears on June 15 and December 15 of each year, beginning June 15, 2007. The Company had accrued interest of $192,000 and $0 as of December 31, 2012 and December 31, 2013, respectively. The 2013 notes are general, unsecured, senior obligations of the Company and effectively rank junior in right of payment to all of the Company’s secured debt, to the extent of the value of the assets securing such debt, and to the debt and all other liabilities of the Company. Holders may convert, at any time prior to the close of business on the business day immediately preceding the stated maturity date, any outstanding 2013 notes into shares of the Company’s common stock at an initial conversion rate of 44.5002 shares per $1,000 principal amount of 2013 notes, which is equal to a conversion price of approximately $22.47 per share, subject to adjustment. Except in certain circumstances, if the Company undergoes a fundamental change: (1) the Company will pay a make-whole premium on the 2013 notes converted in connection with a fundamental change by increasing the conversion rate on such 2013 notes, which amount, if any, will be based on the Company’s common stock price and the effective date of the fundamental change, and (2) each holder of the 2013 notes will have the option to require the Company to repurchase all or any portion of such holder’s 2013 notes at a repurchase price of 100% of the principal amount of the 2013 notes to be repurchased plus accrued and unpaid interest, if any. Under the terms of the 2013 Note Indenture, the conversion option can be net-share settled and the maximum number of shares that could be required to be delivered under the contract, including the make-whole shares, is fixed and less than the number of authorized and unissued shares less the maximum number of shares that could be required to be delivered during the contract period under existing commitments. Applying the Company’s sequencing policy, the Company performed an analysis at the time of the offering of the 2013 notes and each reporting date since and concluded that the number of available authorized shares at the time of the offering and each subsequent reporting date was sufficient to deliver the number of shares that could be required to be delivered during the contract period under existing commitments. On December 15, 2013, per the agreement, the Company paid $115.0 million on the notes, thus settling the debt.

The Company incurred approximately $3.7 million in debt issuance costs which were recorded as an offset to the debt in the accompanying balance sheet. These costs were fully accreted as of December 31, 2013.

Accretion of debt issuance expense in connection with the notes offerings during the years ended December 31, 2011, 2012, and 2013 were $1.3 million, $1.4 million, and $1.4 million, respectively.

Restructuring charges

12 Months Ended

Dec. 31, 2013

Restructuring charges

8. Restructuring charges

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


	Workforce Reduction
Restructuring Balance, February 10, 2011	$	6,659
Cash payments		(6,189	)
Adjustment		(403	)

Restructuring Balance, December 31, 2011	$	67
Adjustment		(67	)

Restructuring Balance, December 31, 2012	$	—

During the year ended December 31, 2011, the Company adjusted the restructuring balance based on the election of certain termination benefits by a portion of the terminated employees.

The remaining restructuring balance as of December 31, 2011 consists of severance and related termination benefits for employees still to be terminated.

The net $6.3 million of costs associated with the restructuring are included in “Research and development” and “General and administrative” operating expenses in the consolidated statements of operations as $4.7 million and $1.6 million, respectively, for the year ended December 31, 2011.

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2013

Fair Value of Financial Instruments

9. Fair Value of Financial Instruments

The carrying amounts of financial instruments, which include cash equivalents and accounts payable, approximate their fair values due to their relatively short maturities. The fair value of the note payable to our principal stockholder cannot be reasonably estimated as the Company would not be able to obtain a similar credit arrangement in the current economic environment.

Cash equivalents consist of highly liquid investments with original or remaining maturities of 90 days or less at the time of purchase that are readily convertible into cash. As of December 31, 2012 and 2013, the Company held $61.8 million and $70.8 million, respectively of cash and cash equivalents, consisting of money market funds of $60.8 million and $67.7 million, respectively, and the remaining funds in non-interest bearing checking accounts. The fair value of these money market funds was determined by using quoted prices for identical investments in an active market (Level 1 in the fair value hierarchy).

The following is a summary of the carrying values and estimated fair values of the Company’s senior convertible notes due in 2013 and 2015 and the facility financing obligation due in 2019 (in millions).


	December 31, 2012				December 31, 2013
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
2013 notes	$	114.4	$	81.9	$	—	$	—
2015 notes	$	97.6	$	63.2	$	98.4	$	102.2
2019 notes	$	—	$	—	$	102.3	$	107.0

Senior convertible notes

The senior convertible notes due 2013 were paid in full in December, consequently, they had a balance of $0. The estimated fair value of the 2013 notes was calculated based on quoted prices in an active market (Level 1 in the fair value hierarchy). The estimated fair value of the senior convertible notes due 2015 was calculated based on model derived valuations whose inputs were observable, such as the Company’s stock price, and non-observable, such as the Company’s long-term historical volatility, which was estimated to be 65% (Level 3 in the fair value hierarchy). As there is no current observable market for the senior convertible notes due 2015, the Company determined the estimated fair value using a convertible bond valuation model within a lattice framework. The convertible bond valuation model combined expected cash outflows with market-based assumptions regarding risk-adjusted yields, stock price volatility and recent price quotes and trading information regarding Company issued debt instruments and shares of common stock into which the notes are convertible.

Facility financing agreement

As discussed in Note 16 — Facility financing agreement, in connection with the Facility Agreement, the Company issued 2019 notes and Milestone Rights and recorded the Commitment Asset on July 1, 2013. As there is no current observable market for the 2019 notes, the Company determined the estimated fair value using a bond valuation model based on a discounted cash flow methodology. The bond valuation model combined expected cash flows associated with principal repayment and interest based on the contractual terms of the debt agreement discounted to present value using a selected market discount rate of 12.4% (Level 3 in the fair value hierarchy). On December 31, 2013, the market discount rate was 12.7%. The estimated fair value of the Milestone Rights was calculated using the income approach in which the cash flows associated with the specified contractual payments were adjusted for both the expected timing and the probability of achieving the milestones discounted to present value using a selected market discount rate (Level 3 in the fair value hierarchy). The expected timing and probability of achieving the milestones, starting in 2014, was developed with consideration given to both internal data, such as progress made to date and assessment of criteria required for achievement, and external data, such as market research studies. The discount rate (17.5%) was selected based on an estimation of required rate of returns for similar investment opportunities using available market data. The fair value of the Commitment Asset was estimated using the income approach by estimating the fair value of the future tranches using a market debt rate (12%) commensurate with the risk of the future tranches and the fair value of the cash expected to be received by the Company and assessing the probability of the commitments being funded in the future based on the operational hurdles required for funding being met (Level 3 in the fair value hierarchy). At December 31, 2013, the carrying value of the Milestone Rights and Commitment Asset approximates their respective estimated fair values.

Derivatives

Four embedded features that required bifurcation and separate accounting were identified in the facility financing obligation and the Company determined should be bundled together as a single, compound embedded derivative, bifurcated from the host contract, and accounted for at fair value, with changes in fair value being recorded in the Statement of Operations. The four embedded derivatives contained in the facility financing obligation were the Conversion Option, Major Transaction Put Option, Acceleration upon a Legal Judgment Against the Company in Excess of $100,000, and Tax Gross-Up. The four embedded features were evaluated together as a single compound derivative to determine the fair value of the derivative. The estimated fair value of the embedded derivative was calculated using Level 3 inputs and by applying a cumulative probability percentage to the values derived from a Black-Karasinski lattice model for the major transaction put option (0.8%), the conversion option feature (0.0%), and the acceleration upon a legal judgment against the Company in excess of $100,000 feature (0.1%). The Tax Gross-Up feature was evaluated using a Level 2 analysis based on the withholding requirements (i.e., the tax laws) on interest payments between the US and the British Virgin Islands and was determined to be de-minimus. As of December 9, 2013 and December 31, 2013, management determined the impact of the valuation of the embedded derivative was immaterial (see Note 16).

The fair value of foreign exchange hedging contracts equals the carrying value at each balance sheet date. The fair value of these contracts was determined using methodologies based on market observable inputs (Level 2 in the fair value hierarchy), including foreign currency spot rates. The Company used derivative financial instruments to manage its exposure to foreign currency exchange risks related to quarterly purchases on insulin. The Company does not use derivative financial instruments for trading or speculative purposes, nor does it use leveraged financial instruments. Credit risk related to derivative financial instruments was considered minimal and was managed by requiring high credit standards for counterparties and through periodic settlements of positions.

The Company entered into foreign exchange hedging contracts with notional amounts totaling $25.5 million and zero at December 31, 2010 and 2011, respectively. The Company recorded an unrealized loss on the foreign exchange hedging contracts of $0.2 million at December 31, 2010. The Company recorded a realized loss of $1.6 million and a realized gain of $1.3 million for the years ended December 31, 2010 and 2011, respectively, on the execution of quarterly foreign exchange hedging contracts. The Company terminated these contracts during the quarter ended March 31, 2011.

The Company’s derivative financial instruments are not designated as hedging instruments, and gains or losses resulting from changes in the fair value are reported in other income (expense), in the consolidated statements of operations. Derivative financial instruments are recognized as other assets or other current liabilities in the financial statements and measured at fair value.

The estimated fair values in connection with the February 2012 The Mann Group Common Stock Purchase Agreement (“The February 2012 Forward Purchase Contract”) and the October 2012 The Mann Group Common Stock and Warrant Purchase Agreement (“The October 2012 Forward Purchase Contract”) was based on forward purchase contract valuations (Level 3 in the fair value hierarchy) (see Note 10).

The following roll-forward provides a summary of the changes in fair value of the Company’s Level 3 forward purchase contracts during the year ended December 31, 2012 (in thousands) :


	The February 2012 Forward Purchase Contract			The October 2012 Forward Purchase Contract			Total
Beginning Balance	$	—		$	—		$	—
Issuance		1,080			28,237			29,317
Adjustments to fair value included in other income (expense)		12,011			(13,248	)		(1,237	)
Transfers to additional paid-in-capital		(13,091	)		(14,989	)		(28,080	)

Ending Balance	$	—		$	—		$	—

- 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

Common and preferred stock

12 Months Ended

Dec. 31, 2013

Common and preferred stock

10. Common and preferred stock

Private Placements — On August 5, 2005, the Company closed a $175.0 million private placement of common stock and the concurrent issuance of warrants for the purchase of additional shares of common stock to accredited investors including the Company’s principal stockholder who purchased $87.3 million of the private placement. The Company sold 17,132,000 shares of common stock in the private placement, together with warrants to purchase up to 3,426,000 shares of common stock at an exercise price of $12.228 per share which became exercisable on February 1, 2006 and expired on August 5, 2010. In connection with this private placement, the Company paid $4.5 million in commissions to the placement agents and incurred $300,000 in other offering expenses which resulted in net proceeds of approximately $170.2 million.

Public Equity Offerings — On August 5, 2009, the Company sold 8,360,000 shares of its common stock, including 960,000 shares sold pursuant to the full exercise of an over-allotment option granted to the underwriters of the offering, at a public offering price of $7.35 per share. The Company’s principal stockholder purchased 1,000,000 of these shares from the underwriters at a price per share of $8.11. The sale of common stock resulted in aggregate net proceeds to the Company of approximately $59.7 million after deducting offering expenses.

Included in the common stock outstanding as of December 31, 2011, 2012 and 2013 are 9,000,000 shares of common stock loaned to Bank of America under a share lending agreement in connection with the offering of the $100.0 million aggregate principal amount of 2015 notes (see Note 7). Bank of America is obligated to return the borrowed shares (or, in certain circumstances, the cash value thereof) to the Company on or about the 45^th business day following the date as of which the entire principal amount of the notes ceases to be outstanding, subject to extension or acceleration in certain circumstances or early termination at Bank of America’s option. The Company did not receive any proceeds from the sale of the borrowed shares by Bank of America, but the Company did receive a nominal lending fee of $0.01 per share from Bank of America for the use of borrowed shares.

On August 10, 2010, the Company entered into an agreement with Seaside for the sale of up to 18,200,000 shares of common stock in increments of 700,000 shares on a bi-weekly basis with the first closing date scheduled for September 22, 2010 provided that certain conditions are met, including for a particular closing to take place, the ten-day volume weighted average trading price for the Company’s common stock immediately prior to such closing must be at least $6.50 per share. If the ten-day volume weighted average trading price for a particular closing was below $6.50 per share, then that closing did not occur and the aggregate number of shares to be purchased was reduced by 700,000 shares. The purchase price per share at each closing was equal to 92% of that 10-day volume weighted average price. During the years ended December 31, 2010 and 2011, the Company issued and sold a total of 2,100,000 and 1,400,000 shares of common stock, respectively, to Seaside for net proceeds of $14.1 million and $9.7 million, respectively, in accordance with the agreement. The agreement with Seaside terminated during the quarter ended September 30, 2011. During the agreement, the Company issued and sold a total of 3,500,000 shares of common stock to Seaside for net proceeds of $23.8 million. In conjunction with the Seaside agreement, on August 10, 2010, the Company entered into a common stock purchase agreement with The Mann Group. Under this common stock purchase agreement, the Company was required to issue and sell, and The Mann Group was obligated to purchase at a price equal to the greater of $7.15 per share (the closing bid price of the Company’s common stock on August 10, 2010) and the closing bid price of common stock on the trading day immediately preceding the applicable closing date, the same number of shares of the Company’s common stock that Seaside purchased on each closing date under its agreement with the Company (see Note 6). Concurrently with the Seaside closing, the Company issued and sold 2,100,000 and 1,400,000 shares to The Mann Group as of December 31, 2010 and 2011, respectively, for a total purchase price of $16.7 million and $11.1 million, respectively, which was paid by the cancellation of outstanding principal under the Company’s loan agreement with The Mann Group. The agreement with The Mann Group terminated during the quarter ended September 30, 2011. During the agreement, the Company issued and sold a total of 3,500,000 shares of common stock to The Mann Group that had resulted in total reduction in the note payable to The Mann Group of $27.8 million.

On February 8, 2012, the Company sold 35,937,500 units in an underwritten public offering, including 4,687,500 units sold pursuant to the full exercise of an over-allotment option granted to the underwriters, with each unit consisting of one share of common stock and a warrant to purchase 0.6 of a share of common stock. All of the securities were offered by the Company at a combined price to the public of $2.40 per unit and the underwriters purchased the units at a price of $2.256 per unit. Net proceeds from this offering were approximately $80.6 million, excluding any warrant exercises. The 21,562,500 shares of common stock underlying the warrants are exercisable at $2.40 per share and expire four years from the date of the issuance. The shares of common stock and warrants are immediately separable and were issued separately. Concurrent with the February 2012 underwritten public offering, the Company entered into a common stock purchase agreement with The Mann Group, pursuant to which the Company agreed to sell and The Mann Group agreed to purchase 31,250,000 shares of the Company’s restricted common stock at a price of $2.47 per share, the closing of which was subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR Clearance”), and the Company’s receipt of stockholder approval to increase the authorized number of shares of our common stock. In June 2012, following HSR Clearance and the Company’s receipt of such stockholder approval, The Mann Group purchased $77.2 million worth of restricted shares of common stock which were paid through the cancellation of principal indebtedness under the amended loan arrangement with The Mann Group (see Note 6). For the twelve months ended December 31, 2013, the Company received $4.5 million in proceeds from the exercise of the February 2012 public offering warrants, with $47.3 million remaining unexercised.

The Company concluded that The Mann Group common stock purchase agreement represented a contingent forward purchase contract that met the definition of a derivative instrument in accordance with ASC 815. Of the 31,250,000 shares issuable pursuant to the common stock purchase agreement, the portion of the derivative instrument representing 14.7 million shares were recorded as equity (“Equity Portion”) as they met the criteria for equity classification under ASC 815-40 Derivatives and Hedging, Contracts in an Entity’s Own Stock. The remaining 16.5 million shares (“Non-Equity Portion”) required classification outside of equity as the Company did not have sufficient available shares at the time of issuance. The Company revalued the Non-Equity Portion of the forward purchase contract at each reporting date and recorded a fair value adjustment within “Other income (expense)”. At the time of issuance, the fair value of the forward purchase contract was $2.0 million. The Equity Portion of $0.9 million was classified as equity, and the Non-Equity Portion of $1.1 million was initially recorded to “Prepaid expenses and other current assets.”

On May 17, 2012, the Company’s stockholders approved an increase in its authorized shares of common stock from 250,000,000 to 350,000,000. Accordingly, the shares of common stock needed to consummate The Mann Group common stock purchase agreement dated February 2, 2012 became available. As of May 17, 2012, the fair value of the Non-Equity Portion was $13.1 million. As of result of receiving stockholder approval of the increase in authorized shares, the Non-Equity Portion met the criteria for equity classification. Consequently, the Company reclassified the $13.1 million from “Prepaid expenses and other current assets” to “Additional paid-in capital.”

The fair value of the forward purchase contract is highly sensitive to the discount applied for lack of marketability and the stock price, and changes in this discount and/or the stock price caused the value of the forward purchase contract to change significantly. As of and for the year ended December 31, 2012, the Company recognized the change in fair value of $12.0 million in “Other income (expense).” The Company revalued the Non-Equity Portion using a forward contract valuation formula, in which the forward contract was estimated to be equal to the valuation date stock price of $2.40 at issuance and $1.69 at May 17, 2012 minus the strike price discounted to the valuation date using a risk-free rate of 0.08% at issuance and 0.18% at May 17, 2012. As the shares which would be received upon settlement were unregistered, the Company applied a discount for lack of marketability of 2.57% at issuance and 0.42% at May 17, 2012 based on quantitative put models, adjusted to take into account qualitative factors, including the fact that the Company’s stock was publicly traded and the fact that there was no contractual restriction on the unregistered shares being registered.

In October 2012, pursuant to a previously filed Shelf Registration, which was declared effective by the SEC on September 24, 2012, the Company sold in an underwritten public offering 40,000,000 shares of its common stock, together with warrants to purchase up to 30,000,000 shares of the Company’s common stock. In addition, the Company sold pursuant to the full exercise of an over-allotment option granted to the underwriters, an additional 6,000,000 shares of common stock, together with warrants to purchase up to an aggregate of 4,500,000 shares of common stock. All of the securities were sold together with a warrant for a combined purchase price of $2.00 per unit. The shares of common stock and warrants are immediately separable and were issued separately. Net proceeds from this offering were approximately $86.3 million (after deducting discounts and commissions to the underwriters and offering expenses), excluding any future proceeds from the exercise of the warrants. Each warrant entitles the holder to purchase 0.75 of a share of common stock. The warrants are exercisable at $2.60 per share and expired in October 2013. The Company received $89.7 million in proceeds from the exercise of such warrants prior to their expiration. The Company performed an analysis of the warrants to determine their appropriate classification and concluded that the warrants should be classified within equity.

Concurrently with the underwritten public offering, the Company entered into a Common Stock and Warrant Purchase agreement, in which the Company was required to issue and sell and The Mann Group was obligated to purchase 40,000,000 restricted shares of the Company’s common stock and 40,000,000 warrants to purchase up to an aggregate of 30,000,000 restricted shares of the Company’s common stock in a separate private placement. The restricted shares were sold to The Mann Group at $2.59 per share (the consolidated closing bid price of the Company’s common stock on October 17, 2012), and the warrants were sold to The Mann Group at a purchase price of $0.125 for each share of the Company’s common stock underlying the warrants, in exchange for cancellation of outstanding principal under the $350.0 million amended and restated promissory note with The Mann Group. The restricted shares and warrants were sold to The Mann Group for an aggregate purchase price of $107.4 million. Following receipt of stockholder approval, in December 2012, to increase the Company’s authorized shares of common stock from 350,000,000 to 550,000,000, the Common Stock and Warrant Purchase agreement was consummated, and the shares of common stock and warrants were issued to The Mann Group.

On the date the Common Stock and Warrant Purchase agreement was entered into with The Mann Group, the Company did not have a sufficient number of authorized, unissued and available common shares to satisfy their commitments under this agreement. The Company characterized the Common Stock and Warrant Purchase agreement as a forward contract, in accordance with ASC 815-40, to deliver a single unit comprising 40,000,000 shares of restricted common stock and 40,000,000 warrants to purchase 30,000,000 shares of restricted common stock that should be classified as assets or liabilities accounted for at fair value.

At the time of issuance, the Company determined the fair value of the forward contract to be $28.2 million and recorded a current asset. On December 20, 2012, the date at which a sufficient number of authorized and unissued common shares became available following approval by the stockholders to increase its authorized shares of common stock, the Company re-valued the forward contract and recorded a fair value adjustment to “Other income (expense)” of $13.2 million expense. Therefore, having met the criteria for equity classification, the Company reclassified the remaining balance of the forward contract of $15.0 million to additional paid in capital. In addition, the Company performed an analysis of the warrants to determine their appropriate classification once the forward contract settled and concluded that the warrants should be classified within equity.

The fair value of the forward purchase contract is highly sensitive to the discount applied for lack of marketability and the stock price, and changes in this discount and/or the stock price caused the value of the Forward Contract to change significantly. The value of the derivative instrument was calculated using a forward contract valuation formula in which the forward contract is estimated to be equal to the valuation date stock price minus the strike price discounted to the valuation date using a risk-free rate of 0.11% at issuance on October 18, 2012 and 0.00% at closing on December 20, 2012. As the shares which would be received upon settlement are currently unregistered, the Company applied a discount for lack of marketability of 2.3% at October 18, 2012 and 1.5% at December 20, 2012 to reflect this lack of marketability based on quantitative put models, adjusted to take into account qualitative factors, including the fact that the Company’s stock is publicly traded and the fact that there is no contractual restriction on the unregistered shares being registered.

The Company then determined that upon the settlement of the forward contracts, the common stock and warrants represent freestanding financial instruments and should be initially recorded at their relative fair values based on the total consideration received. The total consideration received equaled the $107.4 million principal amount of indebtedness cancelled less the recorded value of the forward contracts on December 20, 2012, the date immediately before settlement.

On October 31, 2013, under the Amended and Restated Promissory Note, the Company issued 30,000,000 shares of common stock to The Mann Group upon the exercise of warrants. In exchange, the Company and The Mann Group agreed to cancel $78.0 million of outstanding principal indebtedness and to capitalize into principal the approximately $7.9 million of accrued interest that became due and payable upon cancellation of such principal indebtedness.

On July 1, 2013, the Company entered into the Facility Agreement (see Note 16) pursuant to which the Company had sold $120.0 million aggregate principal amount of notes to Deerfield in three tranches occurring on July 1, 2013, September 5, 2013 and December 9, 2013. Subject to certain conditions, as of December 31, 2013, Deerfield was permitted to convert a portion of the 2019 notes into shares of the Company’s common stock as described under “Conversion Option” in Note 16 below. As of December 31, 2013, Deerfield converted $6.5 million of principal from the 2019 notes, resulting in an issuance of 1,293,224 shares of common stock. The outstanding principal amount as of December 31, 2013 was $113.5 million (see Note 18).

The Company is authorized to issue 550,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of undesignated preferred stock, par value $0.01 per share, issuable in one or more series designated by the Company’s board of directors. No other class of capital stock is authorized. As of December 31, 2012 and 2013, 286,035,082 and 369,391,972 shares of common stock, respectively, were issued and outstanding and no shares of preferred stock were outstanding.

Net loss per common share

12 Months Ended

Dec. 31, 2013

Net loss per common share

11. Net loss per common share

Basic net loss per share excludes dilution for potentially dilutive securities and is computed by dividing loss applicable to common stockholders by the weighted average number of common shares outstanding during the period excluding the shares loaned under the share lending arrangement (see Note 10). As of December 31, 2011, 2012 and 2013, 9,000,000 shares of the Company’s common stock, which were loaned to a share borrower pursuant to the terms of a share lending agreement, as described in Note 10, were issued and are outstanding, and holders of the borrowed shares have all the rights of a holder of the Company’s common stock. However, because the share borrower must return all borrowed shares to the Company (or, in certain circumstances, the cash value thereof), the borrowed shares are not considered outstanding for the purpose of computing and reporting basic or diluted earnings (loss) per share. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Potentially dilutive securities are excluded from the computation of diluted net loss per share for all of the periods presented in the accompanying statements of operations because the reported net loss in each of these periods results in their inclusion being antidilutive. Antidilutive securities, which consist of stock options, restricted stock units, warrants, and shares that could be issued upon conversion of the 2015 senior convertible notes and the 2019 notes, that are not included in the diluted net loss per share calculation exclude the 9,000,000 shares of the Company’s common stock loaned under the share lending arrangement as of December 31, 2012 and 2013.

Potentially dilutive securities outstanding are summarized as follows:


	December 31,
	2011		2012		2013
Exercise of common stock options		10,082,351		18,674,539		24,237,940
Conversion of senior convertible notes into common stock		19,826,113		19,826,113		25,415,366
Exercise of common stock warrants		—		86,062,440		19,706,240
Vesting of restricted stock units		4,140,388		3,761,031		9,115,821

		34,048,852		128,324,123		78,475,367

Stock award plans

12 Months Ended

Dec. 31, 2013

Stock award plans

12. Stock award plans

On May 23, 2013, the Company adopted the 2013 Equity Incentive Plan (the “2013 Plan”) as the successor to and continuation of the 2004 Equity Incentive Plan (the “2004 Plan”). The 2013 Plan consists of 21.5 million newly requested shares and the number of unallocated shares remaining available for grant for new awards under the 2004 Plan. The 2013 Plan provides for the granting of stock awards including stock options and restricted stock units, to employees, directors and consultants. The Plan also provides for the automatic, non-discretionary grant of options to the Company’s non-employee directors. No additional awards will be granted under the 2004 Plan or under the 2004 Non-Employee Directors’ Stock Option Plan (the “NED Plan”) as all future awards will be made out of the 2013 Plan.

As of December 31, 2013, the Company has two active stock-based compensation plans — the 2013 Plan and the 2004 Employee Stock Purchase Plan (the “ESPP”). The following table summarizes information about the Company’s stock-based award plans as of December 31, 2013:


	Outstanding Options		Outstanding Restricted Stock Units		Shares Available for Future Issuance
2004 Equity Incentive Plan		16,792,784		6,949,202		—
2013 Equity Incentive Plan		6,754,325		2,166,619		13,590,564
2004 Non-Employee Directors’ Stock Option Plan		690,831		—		—

Total		24,237,940		9,115,821		13,590,564

The Company’s board of directors determines eligibility, vesting schedules and exercise prices for stock awards granted under the 2013 Plan. The 2013 Plan provides for automatic, non-discretionary grant of options to the Company’s non-employee directors. Options and other stock awards under the 2013 Plan expire not more than ten years from the date of the grant and are exercisable upon vesting. Stock options generally vest over four years. Current stock option grants vest and become exercisable at the rate of 25% after one year and ratably on a monthly basis over a period of 36 months thereafter. Restricted stock units generally vest at a rate of 25% per year over four years with consideration satisfied by service to the Company. Performance-based awards vest upon achieving pre-determined performance milestones, which are expected to occur over periods ranging from 11 months to 96 months from the date of grant. All but one of the milestones is considered probable as of December 31, 2013. The 2013 Plan provides for full acceleration of vesting if an employee is terminated within three months of a change in control, as defined in the 2013 Plan.

On May 23, 2013, the Compensation Committee also approved a management proposal designed to encourage employee retention. The proposal involved the grant of 5,598,100 performance-based stock options and 1,687,900 performance-based restricted stock units to employees, including executive officers of the Company. These grants have vesting terms subject to the achievement of specified regulatory and business development milestones related to AFREZZA. The performance-based options and performance-based restricted stock units had a grant date per share fair value of $3.05 and $6.85, respectively.

On March 7, 2013, the Compensation Committee approved a management proposal designed to encourage employee retention. The proposal involved the grant of performance-based restricted stock units to employees, including executive officers of the Company. A total of 5,846,000 restricted stock units were granted with vesting terms subject to the achievement of specified regulatory and business development milestones related to AFREZZA. The performance-based restricted stock units had a grant date fair value of $2.81.

On May 17, 2012, the Compensation Committee also approved a management proposal designed to encourage employee retention. The proposal involved the grant of stock options and restricted stock units to employees, including executive officers of the Company. A total of 3,942,500 options were granted with vesting terms subject to MannKind Corporation’s achievement of specified regulatory and business development milestones related to AFREZZA. A total of 3,892,500 options were granted with time-based vesting terms of 25% every 6 months beginning November 1, 2012, to be fully vested on May 1, 2014. The performance-based options and time-based stock options had a grant date fair value of $0.60 and $1.12, respectively.

On March 3, 2011, the Compensation Committee approved a management proposal designed to encourage employee retention. The proposal involved the issuance of restricted stock units and stock options to the majority of employees and executive officers of the Company. A total of 1,177,300 restricted stock units and 1,467,500 stock options were granted under the 2004 Plan. These units vested 50% annually for two years and became fully vested on March 3, 2013. Stock compensation expense associated with these grants was recorded on a straight line basis from March 3, 2011 through March 3, 2013 and was approximately $8.2 million.

On July 9, 2008, the Company announced an Offer to Exchange Outstanding Options to Purchase Common Stock (the “Offer”) under which the Company offered eligible employees the opportunity to exchange out-of-the money stock options covering up to an aggregate of 5,417,840 shares on a grant by grant basis for a reduced number of restricted stock units. The Offer expired on August 6, 2008. Pursuant to the Offer, the Company accepted for exchange options to purchase an aggregate of 4,493,509 shares of the Company’s common stock and issued restricted stock units covering an aggregate of 2,246,781 shares of the Company’s common stock. For the restricted stock units issued pursuant to the offer, both the remaining estimated unamortized stock compensation expense related to the exchanged options of approximately $13.9 million and the estimated incremental stock compensation expense resulting from the exchange of approximately $3.7 million was amortized over the vesting period ending on August 1, 2010.

In March 2004, the Company’s board of directors approved the ESPP, which became effective upon the closing of the Company’s initial public offering. Initially, the aggregate number of shares that could be sold under the 2004 Plan was 2,000,000 shares of common stock. On January 1 of each year, for a period of ten years beginning January 1, 2005, the share reserve automatically increases by the lesser of: 700,000 shares, 1% of the total number of shares of common stock outstanding on that date, or an amount as may be determined by the board of directors. However, under no event can the annual increase cause the total number of shares reserved under the ESPP to exceed 10% of the total number of shares of capital stock outstanding on December 31 of the prior year. On January 1, 2011, 2012 and 2013 the ESPP share reserve was increased by 700,000, 700,000 and 700,000 shares, respectively. As of December 31, 2013, 2,679,007 shares were available for issuance under the ESPP. For the years ended December 31, 2011, 2012 and 2013 the Company sold 282,816, 422,260 and 463,290 shares, respectively, of its common stock to employees participating in the ESPP. The ESPP purchase for the period ending December 31, 2013 was initiated prior to year end but did not settle until January 6, 2014. As a result, the shares sold are reflected in the ESPP share reserves but is excluded from common stock outstanding as of December 31, 2013.

In accordance with ASC 718, share-based payment transactions are recognized as compensation cost based on the fair value of the instrument on the date of grant. The Company accounts for non-employee stock-based compensation expense based on the estimated fair value of the options, which is determined using the Black-Scholes option valuation model and amortizes such expense on a straight-line basis over the service period for time-based awards and over the expected dates of achievement for performance-based awards. These awards are subject to re-measurement until service is complete. As of December 31, 2013, there were options to purchase 203,700 shares of common stock outstanding to consultants.

During the years ended December 31, 2011, 2012 and 2013 the Company recorded stock-based compensation expense related to its stock award plans and the ESPP of $11.2 million, $13.3 million, and $45.2 million, respectively.

Total stock-based compensation expense recognized in the accompanying statements of operations is as follows (in thousands):


	Year Ended December 31,
	2011		2012		2013
Employee-related	$	11,202	$	13,224	$	45,181
Consultant-related		2		68		5

Total	$	11,204	$	13,292	$	45,186

Total stock-based compensation expense recognized in the accompanying statements of operations is included in the following categories (in thousands):


	Year Ended December 31,
	2011		2012		2013
Research and development	$	5,366	$	6,167	$	20,409
General and administrative		5,838		7,125		24,777

Total	$	11,204	$	13,292	$	45,186

The Company uses the Black-Scholes option valuation model to estimate the grant date fair value of employee stock options. The expected term of an option granted is based on combining historical exercise data with expected weighted time outstanding. Expected weighted time outstanding is calculated by assuming the settlement of outstanding awards is at the midpoint between the remaining weighted average vesting date and the expiration date.

The Company estimates volatility using the historical volatility of its stock. The Company has selected risk-free interest rates based on U.S. Treasury securities with an equivalent expected term in effect on the date the options were granted. Additionally, the Company uses historical data and management judgment to estimate stock option exercise behavior and employee turnover rates to estimate the number of stock option awards that will eventually vest. The Company calculated the fair value of employee stock options granted during the years ended December 31, 2011, 2012 and 2013 using the following assumptions:


	Year Ended December 31,
	2011		2012		2013
Risk-free interest rate		0.10% — 2.43%		0.32% — 1.16%		0.94% — 1.82%
Expected lives		1.1 — 6.1 years		1.4 — 6.1 years		2.64 — 5.77 years
Volatility		76% — 83%		70% — 84%		75.83% — 86.26%
Dividends		—		—		—

The following table summarizes information about stock options outstanding:


	Number of Shares			Weighted Average Exercise Price per Share		Aggregate Intrinsic Value ($000)
Outstanding at January 1, 2013		18,674,539			3.46	$	4,867
Granted		6,919,900			6.63
Exercised		(881,139	)		2.60
Forfeit		(287,374	)		2.93
Expired		(187,986	)		10.65

Outstanding at December 31, 2013		24,237,940			4.35	$	40,972

Vested and expected to vest at December 31, 2013		23,533,436			4.35	$	40,972
Exercisable at December 31, 2013		12,358,495			4.36	$	22,126

The weighted average grant date fair value of the stock options granted during the years ended December 31, 2011, 2012 and 2013 was $2.04, $0.99 and $3.26 per option, respectively. The total intrinsic value of options exercised during the years ended December 31, 2011, 2012 and 2013 was $443,000, $1,000 and $3.1 million, respectively. Intrinsic value is measured using the fair market value at the date of exercise (for options exercised) or at December 31 (for outstanding options), less the applicable exercise price.

Cash received from the exercise of options during the years ended December 31, 2011, 2012 and 2013 was approximately $625,000, $9,200 and $2.3 million, respectively. The weighted-average remaining contractual terms for options outstanding, vested and expected to vest, and exercisable at December 31, 2013 was 7.80 years, 7.77 years and 6.84 years, respectively.

A summary of restricted stock unit activity for the year ended December 31, 2013 is presented below:


	Number of Shares			Weighted Average Grant Date Fair Value per Share
Outstanding at January 1, 2013		3,761,031		$	3.73
Granted		8,481,459		$	3.93
Vested		(2,861,059	)	$	3.82
Forfeited		(265,610	)	$	3.36

Outstanding at December 31, 2013		9,115,821		$	3.90

The total restricted stock units expected to vest as of December 31, 2013 was 8,761,363 with a weighted average grant date fair value of $3.40. The total intrinsic value of restricted stock units expected to vest as of December 31, 2013 was $45.6 million. Intrinsic value of restricted stock units expected to vest is measured using the closing share price at December 31, 2013.

Total intrinsic value of restricted stock units vested during the years ended December 31, 2011, 2012 and 2013 was $1.7 million, $2.9 million and $13.9 million, respectively. Intrinsic value of restricted stock units vested is measured using the closing share price on the day prior to the vest date. The total fair value of restricted stock units vested during the years ended December 31, 2011, 2012 and 2013 was $1.6 million, $3.0 million and $14.9 million, respectively.

As of December 31, 2013, there was $15.2 million and $23.2 million of unrecognized compensation expense related to options and restricted stock units, respectively, which is expected to be recognized over the weighted average vesting period of 1.6 years. The Company evaluates stock awards with performance conditions as to the probability that the performance conditions will be met and estimates the date at which the performance conditions will be met in order to properly recognize stock-based compensation expense over the requisite service period. As of December 31, 2013, there was $107,000 and $3.7 million of unrecognized expenses related to performance-based options and restricted stock units, respectively, for milestones not considered probable of achievement.

Commitments and contingencies

12 Months Ended

Dec. 31, 2013

Commitments and contingencies

13. Commitments and contingencies

Operating Leases — The Company leases certain facilities and equipment under various operating leases, which expire at various dates through 2014 and beyond. Future payments are deemed insignificant.

Rent expense under all operating leases, including office space and equipment, for the years ended December 31, 2011, 2012, and 2013 was approximately $766,000, $675,000, and $645,000 respectively.

Capital Leases — The Company’s capital leases were not material for the years ended December 31, 2011, 2012 and 2013.

Supply Agreement — In November 2007, the Company entered into a long-term supply agreement with N.V. Organon (“Organon”), now a subsidiary of Merck & Co., Inc. (the “Supply Agreement”), pursuant to which Organon manufactured and supplied specified quantities of recombinant human insulin to the Company. In June 2011, the Company entered into a letter agreement (the “Letter Agreement”) with Organon to settle a dispute that arose between the Company and Organon in connection with the termination by the Company of the Supply Agreement. Under the terms of the Letter Agreement, the Company paid Organon an aggregate of $16.0 million in two installments, each of which was paid after the Company received certain quantities of recombinant human insulin manufactured and supplied by Organon. The Letter Agreement is in full and final settlement of, and the Company and Organon agreed to release each other from, any and all actions and claims that the Company and Organon had or may have against each other in connection with the dispute regarding the Supply Agreement and related matters. The Company has concluded that the Letter Agreement represents a multiple element arrangement consisting of two elements representing the purchase of insulin and a contract cancellation fee. The Company has allocated the $16.0 million settlement in the following manner: first to the fair value of the insulin received, which was recorded as expense of $8.4 million and the remaining $7.6 million to the contract cancellation fee. These charges were recorded to “Research and development” operating expenses in the consolidated statements of operations of 2011.

Guarantees and Indemnifications — In the ordinary course of its business, the Company makes certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. The Company, as permitted under Delaware law and in accordance with its Bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum amount of potential future indemnification is unlimited; however, the Company has a director and officer insurance policy that may enable it to recover a portion of any future amounts paid. The Company believes the fair value of these indemnification agreements is minimal. The Company has not recorded any liability for these indemnities in the accompanying consolidated balance sheets. However, the Company accrues for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is probable. No such losses have been recorded to date.

Litigation — The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. As of December 31, 2013, the Company believes that the final disposition of such matters will not have a material adverse effect on the financial position, results of operations or cash flows of the Company. The Company maintains liability insurance coverage to protect the Company’s assets from losses arising out of or involving activities associated with ongoing and normal business operations. In accordance with ASC 450 Contingencies, the Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company’s policy is to accrue for legal expenses in connection with legal proceeding and claims as they are incurred.

The Securities Action. Beginning January 31, 2011, several complaints were filed in the U.S. District Court for the Central District of California against the Company and four of our officers — Alfred E. Mann, Hakan S. Edstrom, Dr. Peter C. Richardson (a former officer) and Matthew J. Pfeffer — on behalf of certain purchasers of our common stock. The complaints include claims asserted under Sections 10(b) and 20(a) of the Exchange Act and were brought as purported shareholder class actions. In general, the complaints alleged that the defendants violated federal securities laws by making materially false and misleading statements regarding our business and prospects for AFREZZA, thereby artificially inflating the price of the Company’s common stock. The U.S. District Court for the Central District of California consolidated the pending actions for all purposes. The consolidated action is referred to as the Securities Action.

On July 23, 2012, the Company, while continuing to deny all allegations of wrongdoing or liability whatsoever arising out of the Securities Action, and without in any way admitting fault or liability, entered into a stipulation of settlement to resolve the Securities Action. The current and former officers and directors named as individual defendants in the consolidated lawsuits also entered into the stipulation of settlement.

In exchange for a release of all claims by the class members, among others, and a dismissal of the consolidated lawsuits, the Company agreed (i) to cause the Company’s insurers to pay class members and their attorneys a total of $16.0 million; and (ii) to issue to class members and their attorneys 2,777,778 shares of the Company’s common stock. The Company also agreed that if the consolidated closing bid price for the Company’s common stock is below $1.00 per share on the date the U.S. District Court enters an order of final judgment, then the Company will issue into the Escrow Account an additional 1,000,000 shares of its common stock. On September 12, 2012, the U.S. District Court preliminarily approved the settlement.

On December 21, 2012, the U.S. District Court issued the Order and Final Judgment, providing final approval of the settlement for the securities action. The Order and Final Judgment consisted of requiring the Company to cause its insurers to pay $16.0 million and to issue the 2,777,778 shares of its common stock in accordance with the stipulation of settlement. The Order and Final Judgment did not include the requirement of the Company to issue the additional 1,000,000 shares of its common stock. In late September and in early October, following the preliminary approval of the settlement, the Company’s insurers remitted payment of the $16.0 million into the Escrow Account. On December 31, 2012, following final approval of the settlement, the Company initiated the transfer of the 2,777,778 shares of its common stock into the Escrow Account. The stock transfer settled on January 2, 2013. The shares were issued pursuant to an exemption from registration provided by Section 3(a)(10) of the Securities Act of 1933, as amended. As of December 31, 2012, the Securities Action was concluded.

The Derivative Actions. Beginning in February 2011, several shareholder derivative complaints were filed in the Superior Court of California for the County of Los Angeles and in the U.S. District Court for the Central District of California against all of the Company’s directors and certain of its officers. The complaints in the shareholder derivative actions allege breaches of fiduciary duties by the defendants and other violations of law. In general, the complaints allege that the defendants caused or allowed for the dissemination of materially false and misleading statements regarding its business and prospects for AFREZZA, thereby artificially inflating the price of its common stock. The Superior Court of California for the County of Los Angeles consolidated the actions pending before it. The consolidated state derivative actions are referred to as the State Derivative Action. The U.S. District Court for the Central District of California has also consolidated the derivative actions pending before it. The consolidated federal derivative actions are referred to as the Federal Derivative Action. The State Derivative Action and the Federal Derivative Action are collectively referred to as the Derivative Actions.

On August 3, 2012, the Company, while continuing to deny all allegations of wrongdoing or liability whatsoever arising out of the Derivative Actions and without in any way admitting fault or liability, entered into a stipulation of settlement to resolve the Derivative Action. Subject to preliminary and final approval of the settlement by the U.S. District Court and notice to shareholders, and in an exchange for a release of all claims by the plaintiffs, among others, and a dismissal of the Derivative Actions, the Company agreed (i) to adopt certain corporate governance measures, (ii) to cause the Company’s insurers to pay the plaintiffs’ attorneys a total of $800,000, and (iii) to issue plaintiffs’ attorneys 225,000 shares of the Company’s common stock. On September 12, 2012, the U.S. District Court preliminarily approved the settlement.

On November 19, 2012, the U.S. District Court issued the Order and Final Judgment, providing final approval of the settlement for the derivative action. The Order and Final Judgment consisted of requiring the Company to cause its insurers to pay $800,000 and to issue the 225,000 shares of its common stock in accordance with the stipulation of settlement. In late September and in early October, following the preliminary approval of the settlement, the Company’s insurers remitted payment of the $800,000 into an account established by the plaintiffs’ attorneys. In December 2012, following final approval of the settlement, the Company transferred the 225,000 shares of its common stock into an investment brokerage account established by the plaintiffs’ attorneys. The shares were issued pursuant to an exemption from registration provided by Section 3(a)(10) of the Securities Act of 1933, as amended. As of December 31, 2012, the Derivative Actions were concluded.

As a result of settlement discussions with the plaintiffs taking place in the latter part of the quarter ended June 30, 2012 and entering into the stipulation of settlement for the Securities Action on July 23, 2012 and for the Derivative Action on August 3, 2012, the Company determined that the liabilities pertaining to both the securities and derivative lawsuits were probable as of June 30, 2012. The Company’s financial statements as of and for the three months ended June 30, 2012 reflected the following accruals:

(i)

Cash consideration. The Company recorded a current liability of $16.8 million under “Accrued expense and other current liabilities” and a corresponding current asset under “Prepaid expenses and other current asset” to reflect a receivable from the Company’s insurers. The Company has determined that the collectability of the receivable from the insurers is probable. The cash obligation resulted in no charge to the Company’s Condensed Consolidated Statements of Operations for the period.

(ii)

Stock consideration. The Company recorded a charge to “General and administrative” expenses and an estimated current liability under “Accrued expense and other current liabilities” of $7.7 million representing the estimated fair value of the 3,002,778 common shares to be issued in the aggregate subject to court approval.

(iii)

Additional stock consideration. The Company concluded that the contingent obligation to issue an additional 1,000,000 shares of its common stock, as defined in the stipulation of settlement agreement for the Securities Action, met the definition of a derivative instrument in accordance with ASC 815. The Company estimated the fair value of the derivative instrument using the Monte Carlo simulation model to forecast the contingent obligation applying probabilities that the stock price will be lower than $1.00 based on the following assumptions: expected volatility of 60%, risk free interest rate of 0.16% and final judgment dates ranging from four to six months. As a result, the Company estimated the fair value of this contingent obligation to be immaterial.

As of September 30, 2012, the Company estimated the aggregate fair value of the stock consideration at $8.6 million and recognized an increase in the contingent liability of $901,000 during the quarter ended September 30, 2012. During the quarter ended September 30, 2012, the Company remeasured the additional stock consideration using the Monte Carlo simulation model to forecast the contingent obligation applying probabilities that the stock price will be lower than $1.00 based on the following assumptions: expected volatility of 54%, risk free interest rate of 0.1% and final judgment date on or before December 31, 2012. As a result, the Company estimated the fair value of this contingent obligation related to the additional stock consideration to be immaterial.

The Company considered the following in its financial statements as of and for the year ended December 31, 2012:

(i)

Cash consideration. Upon satisfying the conditions of cash payment during the fourth quarter of 2012 and receiving final approvals of settlement, the Company relieved from its balance sheet the $16.8 million of current liability and current receivable from insurers as of December 31, 2012.

(ii)

Stock consideration. As of December 31, 2012, the Company satisfied the conditions of issuing 225,000 shares of its common stock on the Derivative Action. With respect to the Securities Action, the issuance of 2,777,778 shares was initiated prior to year end and subsequently settled after year end. The Company concluded that the requirement to deliver these shares of common stock met the definition of a financial instrument representing a contingent forward contract in accordance with ASC 815 and that the forward contract met the criteria for equity classification, and further remeasurement through settlement was not required. The forward contract to issue shares settled on January 2, 2013, upon consummation of the delivery of these shares. The final fair values of the stock consideration are summarized in the following table:


	Number of Shares		Closing Price Per Share on Final Approval Date		Final Fair Value of Stock Consideration
Derivative Action		225,000	$	1.94	$	436,500
Securities Action		2,777,778	$	2.18		6,055,556

Total		3,002,778			$	6,492,056

In recognizing the fair value of the total stock consideration to equity on the date of final approval of the respective settlements, the Company released the previously recorded litigation accrual of $8.6 million, recognized the fair value of the total stock consideration of $6.5 million to equity, and recorded an adjustment to decrease legal expense by $2.1 million in the fourth quarter of 2012.

Employee benefit plans	12 Months Ended
Employee benefit plans	Dec. 31, 2013
Employee benefit plans	14. Employee benefit plans The Company administers a 401(k) Savings Retirement Plan (the “MannKind Retirement Plan”) for its employees. For the years ended December 31, 2011, 2012 and 2013, the Company contributed $777,000, $571,000 and $533,000 respectively, to the MannKind Retirement Plan.

Income taxes

12 Months Ended

Dec. 31, 2013

Income taxes

15. Income taxes

There is no provision for income taxes because the Company has incurred operating losses since inception. At December 31, 2013, the Company has concluded that it is more likely than not that the Company may not realize the benefit of its deferred tax assets due to its history of losses. Accordingly, the net deferred tax assets have been fully reserved. The provision for income taxes consists of the following (in thousands):


	Year Ended December 31,
	2011			2012			2013
Current
U.S. federal	$	—		$	—		$	—
U.S. state		—			—			—
Non-U.S.		—			—			—

Total current		—			—			—

Deferred
U.S. federal		48,643			51,540			59,379
U.S. state		8,582			9,199			7,470
Non-U.S.		—			—			—
Valuation Allowance		(57,225	)		(60,739	)		(66,849	)

Total deferred		—			—			—

Total	$	—		$	—		$	—

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. A valuation allowance is established when uncertainty exists as to whether all or a portion of the net deferred tax assets will be realized. Components of the net deferred tax asset as of December 31, 2012 and 2013 are approximately as follows (in thousands):


	December 31,
	2012			2013
Deferred tax assets:
Net operating loss carryforwards	$	609,471		$	653,896
Research and development credits		65,315			70,091
Capitalized research		31,490			30,421
Milestone Rights		—			6,608
Accrued expenses		2,922			3,578
Non-qualified stock option expense		30,928			41,219
Capitalized patent costs		6,891			7,811
Other		—			837
Depreciation		3,134			2,539

Total net deferred tax assets		750,151			817,000
Valuation allowance		(750,151	)		(817,000	)

Net deferred tax assets	$	—		$	—

The Company’s effective income tax rate differs from the statutory federal income tax rate as follows for the years ended December 31, 2011, 2012 and 2013:


	December 31,
	2011			2012			2013
Federal tax benefit rate		35.0	%		35.0	%		35.0	%
State tax benefit, net of federal benefit		—			—			—
Permanent items		—			—			—
Intercompany transfer of intellectual property		(5.0	)		(4.0	)		(4.3	)
Valuation allowance		(30.0	)		(31.0	)		(30.7	)

Effective income tax rate		0.0	%		0.0	%		0.0	%

As required by ASC 740 Income Taxes (“ASC 740”), management of the Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets. Management has concluded, in accordance with the applicable accounting standards, that it is more likely than not that the Company may not realize the benefit of its deferred tax assets due to net losses since inception. Accordingly, the net deferred tax assets have been fully reserved. Management reevaluates the positive and negative evidence on an annual basis. During the years ended December 31, 2011, 2012 and 2013, the change in the valuation allowance was $57.2 million, $60.7 million and $66.8 million, respectively, for income taxes.

At December 31, 2013, the Company had federal and state net operating loss carryforwards of approximately $1.7 billion and $1.2 billion available, respectively, to reduce future taxable income and which will expire at various dates beginning in 2018 and 2014, respectively. As a result of the Company’s initial public offering, an ownership change within the meaning of Internal Revenue Code Section 382 occurred in August 2004. As a result, federal net operating loss and credit carry forwards of approximately $216.0 million are subject to an annual use limitation of approximately $13.0 million. The annual limitation is cumulative and therefore, if not fully utilized in a year can be utilized in future years in addition to the Section 382 limitation for those years. The federal net operating losses generated subsequent to the Company’s initial public offering in August 2004 are currently not subject to any such limitation as there have been no ownership changes since August 2004 within the meaning of Internal Revenue Code Section 382. At December 31, 2013, the Company had research and development credits of $45 million and $38 million for federal and state purposes, respectively. The federal credits begin to expire in 2024, and the state credits may be carried forward indefinitely.

A portion of the net operating loss carryforwards include amounts related to stock-based payment awards. Any excess tax benefits from stock-based compensation are only recognized for financial reporting purposes when income taxes payable is reduced, with a corresponding increase to additional paid-in capital.

The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. Therefore, no liabilities for uncertain income tax positions have been recorded. Tax years since 1998 remain subject to examination by the major tax jurisdictions in which the Company is subject to tax.

Facility financing agreement

12 Months Ended

Dec. 31, 2013

Facility financing agreement

16. Facility financing agreement

The components of the Facility Agreement recorded as of December 31, 2013 consist of the following (in thousands):


	December 31, 2013
2019 notes
Principal amount	$	120,000
Principal converted to equity		(6,500	)
Debt discount-net of amortization		(10,834	)
Unaccreted debt issuance expense		(366	)

Net carrying amount of facility financing agreement	$	102,300

The Company’s Facility Agreement principal repayment schedule is comprised of payments beginning on the third anniversary of each issued tranche, totaling $28,375,000 annually, commencing on July 1, 2016 and ending on December 9, 2019, for a total amount of $113,500,000.


Milestone rights
Initial milestone rights fair value	$	16,276
Debt discount-net of amortization		(51	)
Unaccreted debt issuance expense		(61	)
Less current portion of milestone rights included in other current liabilities		(3,151	)

Net carrying amount included in other liabilities	$	13,013

Commitment Asset
Initial commitment asset fair value	$	13,393
Less Tranche 2 portion of commitment asset		(3,656	)
Less Tranche 3 portion of commitment asset		(4,580	)

Commitment asset value included in other assets	$	5,157

Accretion of debt issuance cost and debt discount in connection with the Deerfield financing during the three and twelve months ended December 31, 2013 are as follows (in thousands).


	Three months ended December 31, 2013		Twelve months ended December 31, 2013
Accretion expense- debt issuance cost	$	34	$	42
Accretion expense- debt discount	$	923	$	1,113

On July 1, 2013, the Company entered into the Facility Agreement providing for the sale of up to $160.0 million of 2019 notes to Deerfield in four equal tranches of $40.0 million principal amount. The 2019 notes accrue interest at a rate of 9.75% per annum until maturity in 2019 or their earlier repayment, repurchase, or conversion. A portion of the principal amount of the 2019 notes was converted into shares of the Company’s common stock as described under “Conversion Option” below.

Deerfield purchased the first tranche of 2019 notes (the “Tranche 1notes”) and Milestone Rights (as defined below) in the aggregate principal amount of $40.0 million on July 1, 2013. The closing of the second tranche of 2019 notes (the “Tranche 2 notes”), which was subject to achievement and reporting of certain results from the Company’s two Phase 3 clinical studies of AFREZZA, occurred on September 5, 2013. Deerfield’s purchase of the third tranche of 2019 notes occurred on December 9, 2013 (the “Tranche 3 Notes”), and was subject to the repayment of the 2013 notes with the funds made available by the purchase of these 2019 notes. Deerfield’s obligation to purchase the fourth tranche of 2019 notes is subject to receipt of marketing approval of AFREZZA by the FDA and the shares of common stock issuable upon conversion of all previously sold 2019 notes being freely tradable pursuant to an effective registration statement filed with the SEC or pursuant to Rule 144 under the Securities Act.

The Company is required to repay 25% of the original principal amount of the 2019 notes sold in each tranche on the third, fourth, fifth and sixth anniversaries of the applicable issue dates of such 2019 notes; provided that the entire outstanding principal amount of all 2019 notes will become due and payable no later than December 31, 2019. The Company is required to repay any outstanding 2019 notes in full if the Company completes certain Major Transactions (as defined in the Facility Agreement), which include, but are not limited to, certain mergers and other change of control transactions involving the Company.

The Facility Agreement includes customary representations, warranties and covenants, including, a restriction on the incurrence of additional indebtedness, and a financial covenant which requires the Company’s cash and cash equivalents, which includes available borrowings on the principal stockholder note, on the last day of each fiscal quarter to not be less than $25.0 million. As discussed in Note 1 — Basis of Presentation, the Company will need to raise additional capital to support its current operating plans. Due to the uncertainties related to maintaining sufficient resources to comply with the aforementioned covenant, the 2019 notes have been classified as current liabilities in the accompanying balance sheet as of December 31, 2013. In the event of non-compliance, there can be no assurances that the holders of the 2019 notes will not exercise remedies available to them, which may include, among other things, the issuance of a notice of acceleration.

In connection with the issuance of the Tranche 1 notes and Milestone Rights on July 1, 2013, the Company recorded $52.9 million in value received, which consisted of $39.5 million in cash from the issuance of the Tranche 1 notes plus a Commitment asset (as described further below) with a fair value equal to $13.4 million. In exchange, the Company issued to Deerfield the Tranche 1 notes and Milestone Rights with estimated fair values equal to $37.1 million and $16.3 million, respectively. The Tranche 1 notes, the Milestone Rights and the Commitment Asset were initially recorded at fair value.

The Tranche 1 notes are classified as short-term debt and are subsequently accounted for at amortized cost. The effective interest rate on the Tranche 1 notes is 12.19% and a debt discount of approximately $3.3 million recognized on the Tranche 1 notes is being amortized to interest expense over the term of the Tranche 1 notes using the effective interest method.

In accordance with the Facility Agreement, the Company reimbursed Deerfield $500,000 for a portion of documented expenses for attorneys, accountants and other professional advisors, and other out-of-pocket expenses Deerfield incurred in connection with the transaction. These costs were allocated between the 2019 notes and the Milestone Rights based upon their relative fair value resulting in $448,737 being allocated to the 2019 notes and included within the debt discount with the remainder being allocated to the Milestone Rights. In addition, the Company incurred a total of $597,529 in debt issuance costs, of which $536,266 was allocated to the 2019 notes and the remainder to the Milestone Rights using the relative fair value allocation method. A portion of the debt issuance costs, or $128,008, related to the fourth tranche of 2019 notes are included in other assets.

The Commitment Asset represents the right to receive additional funding under the second, third and fourth tranches of the Facility Agreement. The fair value of the Commitment Asset was estimated using the income approach by estimating the fair value of the future tranches using a market debt rate commensurate with the risk of the future tranches and the fair value of the cash expected to be received by the Company and assessing the probability of the commitments being funded in the future. The Commitment Asset will not be subsequently remeasured but it will be monitored for impairment until future tranches of 2019 notes are drawn. Upon the drawing of additional tranches of 2019 notes, the portion of the Commitment Asset related to such tranche will be derecognized resulting in a debt discount being recorded on the additional tranches of 2019 notes issued. If the additional funding under the fourth tranche ceases to be probable of occurring, the Commitment Asset will be impaired and will be written off as an expense in the Statement of Operations.

Upon the issuance of the Tranche 2 notes, the portion of the Commitment Asset attributed to the Tranche 2 Notes was derecognized and recorded as a debt discount to the Tranche 2 notes. Therefore, the Tranche 2 notes were recorded as short-term debt for the $40.0 million received, less a $3.7 million debt discount. The effective interest rate on the Tranche 2 notes is 12.45% and the debt discount is being amortized over the term of the Tranche 2 notes using the effective interest method.

Upon the issuance of the Tranche 3 notes, the portion of the Commitment Asset attributed to the Tranche 3 Notes was derecognized and recorded as a debt discount to the Tranche 3 notes. Therefore, the Tranche 3 notes were recorded as short-term debt for the $40.0 million received, less a $5.0 million debt discount. The effective interest rate on the Tranche 3 notes is 13.49% and the debt discount is being amortized over the term of the Tranche 3 notes using the effective interest method.

Milestone Rights

In connection with the execution of the Facility Agreement, on July 1, 2013, the Company issued Milestone Rights to the Milestone Purchasers. The Milestone Rights provide the Milestone Purchasers certain rights to receive payments of up to $90.0 million upon the occurrence of specified strategic and sales milestones, including the first commercial sale of an AFREZZA product and the achievement of specified net sales figures. The payments due under the Milestone Rights are subject to pro rata reduction in the event of certain funding failures by Deerfield under the Facility Agreement.

The Milestone Agreement includes customary representations and warranties and covenants by the Company, including restrictions on transfers of intellectual property related to AFREZZA. The Milestone Rights are subject to acceleration in the event the Company transfers its intellectual property related to AFREZZA in violation of the terms of the Milestone Agreement.

The Company analyzed the Milestone Rights under the provisions of ASC 815 Derivatives and Hedging and determined that the instruments do not meet the definition of a freestanding derivative. Since the Company has not elected to apply the fair value option to the Milestone Rights, the Company has initially recorded the Milestone Rights at their estimated fair value and accounted for the Milestone Rights as a liability by applying the indexed debt guidance contained in paragraphs ASC 470-10-25-3 and 35-4.

The initial fair value estimate of the Milestone Rights was calculated using the income approach in which the cash flows associated with the specified contractual payments were adjusted for both the expected timing and the probability of achieving the milestones discounted to present value using a selected market discount rate. The Milestone Rights were initially recorded as a short-term liability equal to $3.2 million included in Accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet and a long term liability equal to $13.1 million included in Other liabilities. In determining the fair value of the Milestone Rights, the 13 individual milestone payments were adjusted for both (i) the expected timing and (ii) the probability of achieving the milestones, and then discounted to present value using a discount rate of 17.5%. Once the initial valuation of each specified milestone payment was determined, the individual milestone payments were then aggregated to arrive at a total fair value of $16.3 million. The discount rate was based on the estimated cost of equity which was derived using the capital asset pricing model. In addition, a 5% risk premium was added to the computation of the cost of equity to adjust for non-systemic risk factors, such as the Company’s lack of product diversification and history of financial losses, which were not captured in other model inputs.

The Milestone Rights liability will be remeasured as the specified milestone events are achieved. Specifically, as each milestone event is achieved, the portion of the initially recorded Milestone Rights liability that pertains to such milestone event being achieved will be remeasured to the amount of the related milestone payment. The resulting change in the balance of the Milestone Rights liability due to such remeasurement will be recorded in the Company’s Statement of Operations as interest expense. Furthermore, the Milestone Rights liability will be reduced upon each such milestone payment being paid. As a result, each milestone payment would be effectively allocated between a reduction of the initially recorded Milestone Rights liability and an expense representing a return on a portion of the Milestone Rights liability paid to the Milestone Purchasers for the achievement of the related milestone event.

The Company identified and evaluated a number of embedded features in the Milestone Rights to determine if they represented embedded derivatives requiring bifurcation and separate accounting pursuant to ASC 815. There were no features in the Milestone Rights that required bifurcation and separate accounting

Security Agreement

In connection with the Facility Agreement, the Company and its subsidiary, MannKind LLC, entered into a Guaranty and Security Agreement (the “Security Agreement”) with Deerfield and HS (collectively, the “Purchasers”), pursuant to which the Company and MannKind LLC each granted the Purchasers a security interest in substantially all of their respective assets, including respective intellectual property, accounts, receivables, equipment, general intangibles, inventory and investment property, and all of the proceeds and products of the foregoing. The Security Agreement includes customary covenants by the Company and MannKind LLC, remedies of the Purchasers and representations and warranties by the Company and MannKind LLC. The security interests granted by us and MannKind LLC will terminate upon repayment of the 2019 notes and tranche B notes, if applicable (see Note 18), in full. Our obligations under the Facility Agreement and the Milestone Agreement are also secured by certain mortgages on the Company’s facilities in Danbury, Connecticut and Valencia, California.

Registration Rights Agreement

In connection with the Facility Agreement and the sale of the 2019 notes pursuant thereto, the Company entered into a Registration Rights Agreement with Deerfield (the “Registration Rights Agreement”), pursuant to which the Company agreed to register for sale, the shares issuable upon conversion of the 2019 notes within a specified time period following the issuance of each tranche of 2019 notes.

Pursuant to the Registration Rights Agreement, the number of aggregate shares of Common Stock included in the initial mandatory registration statement was 12.0 million shares (subject to adjustment in the event of a stock split, stock combination, reclassification, payment of stock dividends, recapitalization, or other similar transactions). (See Note 18.)

In the event the Company is unable to meet certain requirements of the Registration Rights Agreement specifically related to the filing of the registration statement within specified periods, using its best efforts to obtain effectiveness of the registration statement, or maintaining the effectiveness of the registration statement, the Company will be required to pay additional damages to Deerfield. The additional damages are calculated as 1% of Deerfield’s original principal amount of the relevant tranche of 2019 notes and shall accrue until the earlier of (i) the date on which the registration failure has been cured and (ii) the date on which the shares issuable upon conversion may be disposed of by Deerfield.

In accordance with the accounting guidance contained in ASC 825-20, the contingent obligation to make future payments, or otherwise transfer consideration, under a registration payment arrangement should be recognized and measured in accordance with ASC 450-20. ASC 450-20 requires an accrual to be recorded for a contingent payment if it is both probable of occurring and the amount of the payment can be reasonably estimated. As of December 31, 2013, the Company determined that it is not probable that it will be obligated to pay additional damages to Deerfield pursuant to the Registration Rights Agreement, and therefore no accrual for such contingent payment has been recorded.

Embedded Derivatives

The Company identified and evaluated a number of embedded features in the notes issued under the Facility Agreement to determine if they represented embedded derivatives requiring bifurcation and separate accounting pursuant to ASC 815. In the Tranche 1 notes, we determined that the Contingent Prepayment Option and Tax Gross-Up features were embedded derivatives requiring bifurcation from the Tranche 1 notes. These features were evaluated by the Company and deemed to have a de-minimus value. Based on our analysis of the Tranche 2 notes, only one feature (the Tax Gross-Up) was required to be bifurcated. Similar to the conclusions reached in our analysis of the embedded features contained in the Tranche 1 notes, the Tax Gross-Up feature was deemed to have a de-minimus value. In analyzing the Tranche 3 notes, we identified four embedded features that required bifurcation and separate accounting and the Company determined that they should be bundled together as a single, compound embedded derivative, bifurcated from the host contract, and accounted for at fair value, with changes in fair value being recorded in the Statement of Operations. The four embedded derivatives contained in the Tranche 3 notes were the Conversion Option, Major Transaction Put Option, Acceleration upon a Legal Judgment Against the Company in Excess of $100,000, and Tax Gross-Up. The four embedded features, discussed in detail below, were evaluated together as a single compound derivative to determine the fair value of the derivative with the exception of the Tax Gross-Up feature which was deemed to have a de-minimus value. At the time of the issuance of Tranche 3, management determined that the value of these embedded derivatives at December 9, 2013, and at December 31, 2013 was immaterial.

Conversion Option

As of December 31, 2013, a portion of the 2019 notes was convertible into fully paid shares of the Company’s common stock from and after the 11^th trading day following the public release, by the Company, of the Phase III data for the Product and until the second business day immediately prior to the final payment date, at a conversion price equal to the volume weighted average price (“VWAP”) per share of the stock during the 20 trading days immediately preceding the Purchaser’s election to convert. The number of Conversion Shares issuable upon a conversion shall be determined by dividing the Conversion Amount by the Conversion Price.

The number of shares issuable upon conversion of the 2019 notes was limited to the extent that Deerfield would otherwise acquire shares, that would cause the beneficial ownership of Deerfield and their affiliates to exceed 9.985% of the total number of shares of Common Stock then issued and outstanding.

The 2019 notes provided that Deerfield may exercise this conversion right for (i) up to 12.0 million shares of stock if the Conversion Price is $3.33 per share or less, (ii) up to 6.0 million shares of stock if the Conversion Price is $6.67 per share or more, and (iii) up to $40.0 million of principal if the Conversion Price is between $3.33 and $6.67 per share (collectively, the “Applicable Limits”).

As of December 31, 2013, Deerfield had converted $6.5 million principal amount of the 2019 notes to equity, resulting in an issuance of 1,293,224 shares of the Company’s common stock. Upon the conversion, the principal balance of the notes were recorded in equity and the loss was recognized in the Statement of Operations for the difference between the principal amount of the notes converted and their carrying amount (which included unamortized discount and debt issuance costs).

Major Transaction Put Option

The Facility Agreement requires that the Company give Deerfield notice of a Major Transaction at least 20 days prior to the anticipated effective date for such transaction, or if the Company has outstanding any class of publicly traded securities, not later than 2 business days following the public announcement thereof. Upon receiving such notice, if the successor entity does not meet the Qualification Criteria, then the Purchasers may exercise the put option, in their sole discretion, requiring the Company to repay the notes in full at an amount equal to the sum of the outstanding principal amount of the notes plus all interest accrued and unpaid on such date. Furthermore, in the event that the Purchaser exercises their rights under the Major Transaction Put Option, the obligations under the Milestone Agreement shall not terminate.

Acceleration upon a Legal Judgment Against the Company in Excess of $100,000

The Facility Agreement contains various events of default, including an event of default triggered in the event that a legal judgment is made against the Company in excess of $100,000, and the judgment remains unstayed on the appeal, undischarged, unbounded or undismissed for a period of 90 days from the date of judgment. Upon the occurrence and during the continuance of an event of default, the note holders have the option to cause the outstanding principal amount of the 2019 notes plus all accrued and unpaid interest to become immediately due and payable.

Tax Gross-Up

The Facility Agreement requires that if the Company is required by law to deduct any tax from any amount payable under the Agreement or any other Transaction Document, then the sum payable shall be increased by as much as necessary to compensate for such deduction. In addition, the Company will reimburse Deerfield for any future stamp or documentary taxes, or similar other charges or levies, incurred by Deerfield. The tax gross-up obligations do not apply to any payments under the Milestone Agreement.

Selected quarterly financial data (unaudited)

12 Months Ended

Dec. 31, 2013

Selected quarterly financial data (unaudited)

17. Selected quarterly financial data (unaudited)

The following unaudited selected quarterly financial data has been prepared on the same basis as the audited information and includes all adjustments necessary to present fairly the information set forth in the Company’s consolidated financial statements and notes herein. As a development stage enterprise, the Company has experienced fluctuations in its quarterly results related to the development of its lead product candidate, AFREZZA, and in its expansion of the product candidate portfolio. The Company expects these fluctuations to continue in the future. Due to these and other factors, the quarterly operating results are not indicative of the Company’s future performance.


	March 31			June 30			September 30			December 31
	(In thousands, except per share data)
2012
Net loss	$	(38,173	)	$	(36,578	)	$	(42,834	)	$	(51,781	)

Net loss applicable to common stockholders	$	(38,173	)	$	(36,578	)	$	(42,834	)	$	(51,781	)

Net loss per share applicable to common stockholders — basic and diluted	$	(0.27	)	$	(0.23	)	$	(0.22	)	$	(0.23	)

Weighted average common shares used to compute basic and diluted net loss per share applicable to common stockholders		143,154			159,859			190,534			229,234


	March 31			June 30			September 30			December 31
	(In thousands, except per share data)
2013
Net loss	$	(40,965	)	$	(46,124	)	$	(50,818	)	$	(53,582	)

Net loss applicable to common stockholders	$	(40,965	)	$	(46,124	)	$	(50,818	)	$	(53,582	)

Net loss per share applicable to common stockholders — basic and diluted	$	(0.15	)	$	(0.16	)	$	(0.17	)	$	(0.16	)

Weighted average common shares used to compute basic and diluted net loss per share applicable to common stockholders		280,058			284,044			296,386			337,284

Subsequent Event

12 Months Ended

Dec. 31, 2013

Subsequent Event

18. Subsequent Event

In January 2014, Deerfield elected to convert an aggregate of $33.5 million of principal amount of the Tranche 2 Notes, pursuant to which the Company issued Deerfield 6,559,251 shares of the Company’s common stock. As a result of this election, Deerfield has fully exercised the conversion option under the 2019 notes by converting all of the Tranche 2 Notes, or $40.0 million of principal, into 7,852,475 shares of the Company’s common stock in the aggregate.

On February 28, 2014, the Company entered into a First Amendment to Facility Agreement and Registration Rights Agreement with Deerfield to provide for the issuance of tranche B notes to Deerfield in a maximum principal amount equal to (x) if the FDA approves the NDA for AFFREZZA and Deerfield purchased the fourth tranche of 2019 notes, 150% of the aggregate principal amount of the 2019 notes that Deerfield has converted into the Company’s common stock on and after the effective date of the amendment, up to $90.0 million, and (y) otherwise, 33.33% of the aggregate principal amount of the 2019 notes that Deerfield has converted into the Company’s common stock on and after the effective date of the amendment, up to $20.0 million, in each case subject to the satisfaction of certain other conditions. Any tranche B notes, if and when issued, would bear interest at the rate of 9.75% per year, subject to reduction to 8.75% if the Company enters into a collaboration with a third party to commercialize AFFREZZA, on the outstanding principal amount, payable in cash quarterly in arrears on the last business day of December, March, June and September of each year. The Company is required to repay 25% of the original principal amount of any tranche B notes on the third, fourth, fifth and sixth anniversaries of the applicable issue dates of such notes, provided that the entire outstanding principal amount of all tranche B notes will become due and payable no later than December 31, 2019. The tranche B notes will be prepayable without penalty or premium commencing two years after issuance thereof.

In addition, pursuant to the amendment, the outstanding 2019 notes held by Deerfield were amended and restated such that Deerfield may, subject to certain limitations, convert up to an additional $60.0 million principal amount under such 2019 notes into common stock after the effective date of the amendment. Pursuant to the amendment, the Company also amended its Registration Rights Agreement with Deerfield dated July 1, 2013 and agreed to register for resale up to 12,000,000 shares of common stock issuable upon conversion of the outstanding 2019 notes, as amended and restated, as of the date of the amendment, with a minimum conversion price of $5.00 per share unless the Company otherwise consents. The conversion price will be determined by the average of the volume weighted average prices per share during the three trading days immediately preceding the election to convert.

On March 3, 2014, the Company entered into two At-The-Market Issuance Sales Agreements (the “ATM Agreements”), one with MLV & Co. LLC (“MLV”), and one with Meyers Associates, L.P. (doing business as Brinson Patrick, a division of Meyers Associates, L.P.) (“Brinson Patrick”), pursuant to which the Company may issue and sell its common stock having aggregate sales proceeds of up to $50.0 million from time to time through MLV or Brinson Patrick, acting as the Company’s sales agents. The Company currently anticipates that all or substantially all sales of common stock under the ATM Agreements will be made in “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended. The Company has not yet sold or issued any shares of its common stock under the ATM Agreements.

Description of business and basis of presentation (Policies)

12 Months Ended

Dec. 31, 2013

Business

Basis of Presentation

Principles of Consolidation

Segment Information

Financial Statement Estimates

Cash and Cash Equivalents

Concentration of Credit Risk

State Research and Development Credit Exchange Receivable

Milestone Rights

Milestone Rights — On July 1 2013, in conjunction with the execution of the Facility Agreement, the Company issued Milestone Rights to Deerfield whereby the Company agreed to provide Deerfield with pre-specified Milestone Payments upon the achievement of 13 specific Milestone Events related to the commercial release and future cumulative net sales of AFREZZA^®. The Company analyzed the Milestone Rights under the provisions of ASC 815 and determined that the agreement does not meet the definition of a freestanding derivative. Since the Company have not elected to apply the fair value option to the Milestone Rights Purchase Agreement, the Company recorded the Milestone Rights at their estimated fair value and accounted for the Milestone Rights as a liability by applying the indexed debt guidance contained in paragraphs ASC 470-10-25-3 and 35-4.

Commitment Asset

Fair Value of Financial Instruments

Level 1 – Quoted prices for identical instruments in active markets.

Level 3 – Significant inputs to the valuation model are unobservable.

Goodwill and Identifiable Intangibles

Property and Equipment

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets — The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable in accordance with ASC 360-10-35 Property Plant and Equipment. Assets are considered to be impaired if the carrying value may not be recoverable based upon management’s assessment of the following events or changes in circumstances:

•

significant changes in the Company’s strategic business objectives and utilization of the assets;

•

a determination that the carrying value of such assets cannot be recovered through undiscounted cash flows;

•

loss of legal ownership or title to the assets;

•

a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; or

•

the impact of significant negative industry or economic trends.

Income Taxes

Contingencies

Stock-Based Compensation

Warrants

Forward Contracts

Comprehensive Loss

Research and Development Expenses

Clinical Trial Expenses

Interest Expense

Net Loss Per Share of Common Stock

Restructuring Charges

Recently Issued Accounting Standards

Property and equipment (Tables)

12 Months Ended

Dec. 31, 2013

Property and Equipment

Property and equipment consist of the following (dollar amounts in thousands):


	Estimated Useful Life (Years)		December 31,
	Estimated Useful Life (Years)		2012			2013
Land		—	$	5,273		$	5,273
Buildings		39-40		54,948			54,948
Building improvements		5-40		114,245			114,099
Machinery and equipment		3-15		81,382			82,189
Furniture, fixtures and office equipment		5-10		5,239			5,046
Computer equipment and software		3		11,840			11,289
Leasehold improvements		4		17			17
Construction in progress				12,266			14,756

				285,210			287,617
Less accumulated depreciation and amortization				(101,249	)		(111,060	)

Total property and equipment, net			$	183,961		$	176,557

Accrued expenses and other current liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities are comprised of the following (in thousands):


	December 31,
	2012		2013
Salary and related expenses	$	10,074	$	12,193
Research and clinical trial costs		5,995		1,311
Accrued interest		4,533		2,082
Construction in progress		3,878		342
Other		1,297		5,706

Accrued expenses and other current liabilities	$	25,777	$	21,634

Related-party arrangements (Tables)

12 Months Ended

Dec. 31, 2013

Principal Amount Outstanding under Loan Arrangement


Principal amount outstanding at December 31, 2012	$	119,635
Capitalization of accrued and unpaid interest due and payable as of October 31, 2013		7,886
Reduction of principal indebtedness related to the issuance of common stock pursuant to The Mann Group Warrants completed on October 31, 2013		(78,000	)

Principal amount outstanding at December 31, 2013	$	49,521

Senior convertible notes (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Senior Convertible Notes

Senior convertible notes consist of the following (in thousands):


	December 31,
	2012			2013
2013 notes
Principal amount	$	115,000		$	—
Unaccreted debt issuance cost		(557	)		—

Net carrying amount		114,443			—

2015 notes
Principal amount	$	100,000		$	100,000
Unaccreted debt issuance cost		(2,417	)		(1,561	)

Net carrying amount		97,583			98,439

Senior convertible notes	$	212,026		$	98,439

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Restructuring charges (Tables)

12 Months Ended

Dec. 31, 2013

Restructuring Charges


	Workforce Reduction
Restructuring Balance, February 10, 2011	$	6,659
Cash payments		(6,189	)
Adjustment		(403	)

Restructuring Balance, December 31, 2011	$	67
Adjustment		(67	)

Restructuring Balance, December 31, 2012	$	—

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Carrying Values and Estimated Fair Values of Senior Convertible Notes


	December 31, 2012				December 31, 2013
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
2013 notes	$	114.4	$	81.9	$	—	$	—
2015 notes	$	97.6	$	63.2	$	98.4	$	102.2
2019 notes	$	—	$	—	$	102.3	$	107.0

Summary of Changes in Fair Value of Company's Level Three Forward Purchase Contracts

The following roll-forward provides a summary of the changes in fair value of the Company’s Level 3 forward purchase contracts during the year ended December 31, 2012 (in thousands) :


	The February 2012 Forward Purchase Contract			The October 2012 Forward Purchase Contract			Total
Beginning Balance	$	—		$	—		$	—
Issuance		1,080			28,237			29,317
Adjustments to fair value included in other income (expense)		12,011			(13,248	)		(1,237	)
Transfers to additional paid-in-capital		(13,091	)		(14,989	)		(28,080	)

Ending Balance	$	—		$	—		$	—

Net loss per common share (Tables)

12 Months Ended

Dec. 31, 2013

Potential Dilutive Securities Outstanding

Potentially dilutive securities outstanding are summarized as follows:


	December 31,
	2011		2012		2013
Exercise of common stock options		10,082,351		18,674,539		24,237,940
Conversion of senior convertible notes into common stock		19,826,113		19,826,113		25,415,366
Exercise of common stock warrants		—		86,062,440		19,706,240
Vesting of restricted stock units		4,140,388		3,761,031		9,115,821

		34,048,852		128,324,123		78,475,367

Stock award plans (Tables)

12 Months Ended

Dec. 31, 2013

Stock Based Award Plans

The following table summarizes information about the Company’s stock-based award plans as of December 31, 2013:


	Outstanding Options		Outstanding Restricted Stock Units		Shares Available for Future Issuance
2004 Equity Incentive Plan		16,792,784		6,949,202		—
2013 Equity Incentive Plan		6,754,325		2,166,619		13,590,564
2004 Non-Employee Directors’ Stock Option Plan		690,831		—		—

Total		24,237,940		9,115,821		13,590,564

Stock Based Compensation Expense Recognized in Accompanying Statements of Operations

Total stock-based compensation expense recognized in the accompanying statements of operations is as follows (in thousands):


	Year Ended December 31,
	2011		2012		2013
Employee-related	$	11,202	$	13,224	$	45,181
Consultant-related		2		68		5

Total	$	11,204	$	13,292	$	45,186

Stock Based Compensation Expense Recognized in Accompanying Statements of Operations by Category

Total stock-based compensation expense recognized in the accompanying statements of operations is included in the following categories (in thousands):


	Year Ended December 31,
	2011		2012		2013
Research and development	$	5,366	$	6,167	$	20,409
General and administrative		5,838		7,125		24,777

Total	$	11,204	$	13,292	$	45,186

Assumptions Used to Calculate Fair Value of Employee Stock Options

to estimate the number of stock option awards that will eventually vest. The Company calculated the fair value of employee stock options granted during the years ended December 31, 2011, 2012 and 2013 using the following assumptions:


	Year Ended December 31,
	2011		2012		2013
Risk-free interest rate		0.10% — 2.43%		0.32% — 1.16%		0.94% — 1.82%
Expected lives		1.1 — 6.1 years		1.4 — 6.1 years		2.64 — 5.77 years
Volatility		76% — 83%		70% — 84%		75.83% — 86.26%
Dividends		—		—		—

Summary of Stock Options Outstanding

The following table summarizes information about stock options outstanding:


	Number of Shares			Weighted Average Exercise Price per Share		Aggregate Intrinsic Value ($000)
Outstanding at January 1, 2013		18,674,539			3.46	$	4,867
Granted		6,919,900			6.63
Exercised		(881,139	)		2.60
Forfeit		(287,374	)		2.93
Expired		(187,986	)		10.65

Outstanding at December 31, 2013		24,237,940			4.35	$	40,972

Vested and expected to vest at December 31, 2013		23,533,436			4.35	$	40,972
Exercisable at December 31, 2013		12,358,495			4.36	$	22,126

Summary of Restricted Stock Unit Activity

A summary of restricted stock unit activity for the year ended December 31, 2013 is presented below:


	Number of Shares			Weighted Average Grant Date Fair Value per Share
Outstanding at January 1, 2013		3,761,031		$	3.73
Granted		8,481,459		$	3.93
Vested		(2,861,059	)	$	3.82
Forfeited		(265,610	)	$	3.36

Outstanding at December 31, 2013		9,115,821		$	3.90

Commitments and contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value of Stock Consideration

(ii)


	Number of Shares		Closing Price Per Share on Final Approval Date		Final Fair Value of Stock Consideration
Derivative Action		225,000	$	1.94	$	436,500
Securities Action		2,777,778	$	2.18		6,055,556

Total		3,002,778			$	6,492,056

- Definition

Tabular disclosure of the loss contingencies that were reported in the period or disclosed as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14472-108349

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12021-110248

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14453-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12053-110248

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14394-108349

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14435-108349

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14326-108349

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14557-108349

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14615-108349

+ Details

Income taxes (Tables)

12 Months Ended

Dec. 31, 2013

Provision for Income Taxes

The provision for income taxes consists of the following (in thousands):


	Year Ended December 31,
	2011			2012			2013
Current
U.S. federal	$	—		$	—		$	—
U.S. state		—			—			—
Non-U.S.		—			—			—

Total current		—			—			—

Deferred
U.S. federal		48,643			51,540			59,379
U.S. state		8,582			9,199			7,470
Non-U.S.		—			—			—
Valuation Allowance		(57,225	)		(60,739	)		(66,849	)

Total deferred		—			—			—

Total	$	—		$	—		$	—

Components of Net Deferred Tax Asset

Components of the net deferred tax asset as of December 31, 2012 and 2013 are approximately as follows (in thousands):


	December 31,
	2012			2013
Deferred tax assets:
Net operating loss carryforwards	$	609,471		$	653,896
Research and development credits		65,315			70,091
Capitalized research		31,490			30,421
Milestone Rights		—			6,608
Accrued expenses		2,922			3,578
Non-qualified stock option expense		30,928			41,219
Capitalized patent costs		6,891			7,811
Other		—			837
Depreciation		3,134			2,539

Total net deferred tax assets		750,151			817,000
Valuation allowance		(750,151	)		(817,000	)

Net deferred tax assets	$	—		$	—

Effective Income Tax Rate

The Company’s effective income tax rate differs from the statutory federal income tax rate as follows for the years ended December 31, 2011, 2012 and 2013:


	December 31,
	2011			2012			2013
Federal tax benefit rate		35.0	%		35.0	%		35.0	%
State tax benefit, net of federal benefit		—			—			—
Permanent items		—			—			—
Intercompany transfer of intellectual property		(5.0	)		(4.0	)		(4.3	)
Valuation allowance		(30.0	)		(31.0	)		(30.7	)

Effective income tax rate		0.0	%		0.0	%		0.0	%

Facility financing agreement (Tables)

12 Months Ended

Dec. 31, 2013

Components of Facility Agreement

The components of the Facility Agreement recorded as of December 31, 2013 consist of the following (in thousands):


	December 31, 2013
2019 notes
Principal amount	$	120,000
Principal converted to equity		(6,500	)
Debt discount-net of amortization		(10,834	)
Unaccreted debt issuance expense		(366	)

Net carrying amount of facility financing agreement	$	102,300


Milestone rights
Initial milestone rights fair value	$	16,276
Debt discount-net of amortization		(51	)
Unaccreted debt issuance expense		(61	)
Less current portion of milestone rights included in other current liabilities		(3,151	)

Net carrying amount included in other liabilities	$	13,013

Commitment Asset
Initial commitment asset fair value	$	13,393
Less Tranche 2 portion of commitment asset		(3,656	)
Less Tranche 3 portion of commitment asset		(4,580	)

Commitment asset value included in other assets	$	5,157

Accretion of Debt Issuance Cost and Debt Discount

Accretion of debt issuance cost and debt discount in connection with the Deerfield financing during the three and twelve months ended December 31, 2013 are as follows (in thousands).


	Three months ended December 31, 2013		Twelve months ended December 31, 2013
Accretion expense- debt issuance cost	$	34	$	42
Accretion expense- debt discount	$	923	$	1,113

Selected quarterly financial data (unaudited) (Tables)

12 Months Ended

Dec. 31, 2013

Selected Quarterly Financial Data


	March 31			June 30			September 30			December 31
	(In thousands, except per share data)
2012
Net loss	$	(38,173	)	$	(36,578	)	$	(42,834	)	$	(51,781	)

Net loss applicable to common stockholders	$	(38,173	)	$	(36,578	)	$	(42,834	)	$	(51,781	)

Net loss per share applicable to common stockholders — basic and diluted	$	(0.27	)	$	(0.23	)	$	(0.22	)	$	(0.23	)

Weighted average common shares used to compute basic and diluted net loss per share applicable to common stockholders		143,154			159,859			190,534			229,234


	March 31			June 30			September 30			December 31
	(In thousands, except per share data)
2013
Net loss	$	(40,965	)	$	(46,124	)	$	(50,818	)	$	(53,582	)

Net loss applicable to common stockholders	$	(40,965	)	$	(46,124	)	$	(50,818	)	$	(53,582	)

Net loss per share applicable to common stockholders — basic and diluted	$	(0.15	)	$	(0.16	)	$	(0.17	)	$	(0.16	)

Weighted average common shares used to compute basic and diluted net loss per share applicable to common stockholders		280,058			284,044			296,386			337,284

Description of Business and Basis of Presentation - Additional Information (Detail) $ in Thousands			1 Months Ended	12 Months Ended				275 Months Ended
	Jul. 01, 2013 USD ($) Tranche	Dec. 12, 2001 USD ($)	Oct. 31, 2013 USD ($)	Dec. 31, 2013 USD ($) shares	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2002 USD ($)	Dec. 31, 2013 USD ($) shares	Mar. 18, 2013 USD ($)	Feb. 08, 2012 USD ($) $ / Right shares	Dec. 31, 2010 USD ($)
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Deficit accumulated during the development stage				$ 2,296,402	$ 2,104,912			$ 2,296,402
Goodwill impairment							$ 151,400	151,428
Cash flow from operation since inception				(128,732)	(119,860)	$ (123,837)		(1,724,993)
Cash and cash equivalents				70,790	$ 61,840	$ 2,681		70,790			$ 66,061
Available borrowings under loan agreement				$ 30,100				$ 30,100
Number of Unit Sold in an Underwritten public offering \| shares										35,937,500
Underwritten public offering										$ 86,300
Warrant to purchase of a share of common stock \| $ / Right										0.6
Warrants outstanding \| shares				32,843,733				32,843,733
Proceeds from warrant exercises			$ 89,700	$ 94,147				$ 94,147
Sales of common stock under the ATM Agreements								3,900
In-process research and development costs		$ 19,700						19,726
Goodwill		$ 151,400
At-the-Market Issuance Sales Agreement
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Sales of common stock under the ATM Agreements				48,900
Maximum \| At-the-Market Issuance Sales Agreement
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Aggregate offering price of common stock under agreement									$ 50,000
Scenario, Forecast
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Proceeds from warrant exercises				47,300
Facility Agreement \| Maximum
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Maximum available amount of credit facility under covenant restrictions	$ 25,000			25,000				25,000
PDC
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Percentage of ownership		76.00%
AlleCure
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Percentage of ownership		59.00%
CTL
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Percentage of ownership		69.00%
Senior convertible notes due December 31 2019
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Debt facility principal amount				$ 120,000				$ 120,000
Senior convertible notes due December 31 2019 \| Deerfield \| Notes Issued in Four Equal Tranches
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Debt facility principal amount	$ 160,000
Number of equal tranches \| Tranche	4
Debt facility periodic principal amount	$ 40,000
Senior convertible notes due December 31 2019 \| Deerfield \| Tranche One
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Debt facility principal amount	40,000
Debt facility initial amount	40,000
Senior convertible notes due December 31 2019 \| Deerfield \| Maximum \| Notes Issued in Four Equal Tranches
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Proceeds from sale of financial instrument	$ 90,000

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended				275 Months Ended
	Dec. 31, 2002	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2002	Dec. 31, 2013	Dec. 12, 2001
Summary Of Significant Accounting Policies [Line Items]
Maturity period of cash equivalents		90 days or less at the time of purchase
Percentage of credit exchange receivable		65.00%
Reduction in headcount for AlleCure and CTL	50.00%
Goodwill							$ 151,400
Goodwill impairment					$ 151,400	$ 151,428
Interest expense, net of interest capitalized		$ 21,500	$ 21,600	$ 21,800
Interest cost capitalized		$ 400	$ 300	$ 400

State Research and Development Credit Exchange Receivable - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accounts and Other Receivables [Line Items]
Estimated amounts receivable under program	$ 282,000	$ 289,000	$ 609,000
Percentage of credit exchange receivable	65.00%

Property and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 287,617	$ 285,210
Less accumulated depreciation and amortization	(111,060)	(101,249)
Total property and equipment, net	176,557	183,961
Land
Property, Plant and Equipment [Line Items]
Property and equipment - gross	5,273	5,273
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 54,948	54,948
Buildings \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	39 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	40 years
Building Improvements
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 114,099	114,245
Building Improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Building Improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	40 years
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 82,189	81,382
Machinery and Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	3 years
Machinery and Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	15 years
Furniture, fixtures and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 5,046	5,239
Furniture, fixtures and office equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Furniture, fixtures and office equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	10 years
Computer Equipment and Software
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	3 years
Property and equipment - gross	$ 11,289	11,840
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	4 years
Property and equipment - gross	$ 17	17
Construction in Progress
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 14,756	$ 12,266

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	12 Months Ended			275 Months Ended
	Dec. 31, 2009	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013
Depreciation and Other Amortization Expenses [Line Items]
Amortization period of lease hold improvements		4 years
Depreciation and amortization expense		$ 11.5	$ 13.0	$ 14.6	$ 133.3
Loss on disposal of asset	$ (12.8)

Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Accrued Expenses and Other Current Liabilities [Line Items]
Salary and related expenses	$ 12,193	$ 10,074
Research and clinical trial costs	1,311	5,995
Accrued interest	2,082	4,533
Construction in progress	342	3,878
Other	5,706	1,297
Accrued expenses and other current liabilities	$ 21,634	$ 25,777

Related-Party Arrangements - Additional Information (Detail)					1 Months Ended						3 Months Ended		12 Months Ended					24 Months Ended	275 Months Ended
	Dec. 20, 2012 USD ($) shares	May 17, 2012 shares	Aug. 10, 2010 USD ($) $ / shares	Aug. 05, 2005 shares	Oct. 31, 2013 USD ($)	Dec. 31, 2012 USD ($) shares	Oct. 31, 2012 USD ($) $ / shares shares	May 31, 2012 shares	Feb. 28, 2009	Oct. 31, 2007 USD ($)	Mar. 31, 2011 USD ($) shares	Dec. 31, 2010 USD ($) shares	Dec. 31, 2013 USD ($) shares	Dec. 31, 2012 USD ($) shares	Dec. 31, 2011 USD ($) shares	Mar. 31, 2011 USD ($) shares	Dec. 31, 2010 USD ($) shares	Dec. 31, 2011 USD ($) shares	Dec. 31, 2013 USD ($) shares	Jun. 30, 2012 USD ($)	Jun. 27, 2012 shares	Feb. 08, 2012 USD ($) $ / Right shares
Related Party Transaction [Line Items]
Amount available for future borrowings													$ 30,100,000						$ 30,100,000
Cancellation of principal on note payable to related party													$ 78,000,000	$ 184,537,000	$ 11,116,000				290,334,000
Net proceeds from issuance of common stock																			$ 3,900,000
Underwritten public offering																						$ 86,300,000
Unit sold composition description																						Each unit consisting of one share of common stock and a warrant to purchase 0.6 of a share of common stock
Common stock warrant to purchase of share \| $ / Right																						0.6
Restricted Stock Agreed to be Purchased by Lender																				$ 77,200,000		$ 77,200,000
Authorized shares under common stock purchase agreement \| shares	350,000,000	250,000,000				350,000,000		250,000,000
Common stock, shares authorized \| shares	550,000,000	350,000,000				550,000,000		350,000,000					550,000,000	550,000,000					550,000,000
Common stock, shares outstanding \| shares						286,035,082							369,391,972	286,035,082					369,391,972		31,250,000
Net proceeds from public offering							$ 92,000,000
Number of shares in each units issued \| shares							1
Warrants holder exercisable ratio per common stock							0.75
Underwritten public offering \| shares							40,000,000
Accrued interest of related party debt						$ 2,200,000							$ 600,000	$ 2,200,000					$ 600,000
Available borrowings under loan agreement						$ 125,400,000							30,100,000	125,400,000					30,100,000
Interest expense on note payable principal stockholder													6,309,000	10,491,000	10,883,000				45,134,000
Expenses related to charter service on behalf of principal shareholder													$ 82,000	$ 200,000	$ 111,000
Private Placement
Related Party Transaction [Line Items]
Common stock issued and sold \| shares				17,132,000
Restricted Stock \| Private Placement
Related Party Transaction [Line Items]
Underwritten public offering \| shares							40,000,000
Warrant Liability \| Private Placement
Related Party Transaction [Line Items]
Underwritten public offering \| shares							40,000,000
Principal stockholder
Related Party Transaction [Line Items]
Loan agreement with related party					$ 370,000,000					$ 350,000,000
Principal stockholder \| Loan Arrangement
Related Party Transaction [Line Items]
Interest rate (LIBOR)									3.00%
Description of variable rate interest									One-year LIBOR
Fixed borrowing rate													5.84%
Principal amount outstanding under credit facility													$ 49,500,000						49,500,000
Amount available for future borrowings													$ 30,100,000						$ 30,100,000
Related party transaction prepayment period													90 days
Aggregate principal amount cancelled													$ 105,000,000
Principal stockholder \| Loan Arrangement \| Maximum
Related Party Transaction [Line Items]
Amount prepaid for cancellation of indebtedness													$ 200,000,000
Principal stockholder \| Loan Arrangement \| Minimum
Related Party Transaction [Line Items]
Number of months advances outstanding													12 months
Principal stockholder \| Amended Agreement
Related Party Transaction [Line Items]
Promissory note maturity date					Jan. 05, 2020
Principal indebtedness cancelled under the loan arrangement as payment for the aggregate exercise price of The Mann Group Warrants					$ 78,000,000
Accrued interest that became due and payable upon cancellation of the of principal indebtedness, to be capitalized					$ 7,900,000
Related Party Debt \| Letter Agreement
Related Party Transaction [Line Items]
Description of variable rate interest													The interest rate will increase to the one-year LIBOR rate calculated on the date of the initial advance or in effect on the date of default, whichever is greater, plus 5% per annum.
Related Party Debt \| Letter Agreement \| LIBOR
Related Party Transaction [Line Items]
Interest rate (LIBOR)													5.00%
Mann Group
Related Party Transaction [Line Items]
Closing bid price of common stock \| $ / shares			$ 7.15
Cancellation of principal on note payable to related party			$ 350,000,000													$ 27,800,000
Common stock issued and sold \| shares															1,400,000	1,400,000	2,100,000	3,500,000
Net proceeds from issuance of common stock															$ 11,100,000		$ 16,700,000	$ 11,100,000
Restricted Stock Agreed to be Purchased by Lender	$ 107,400,000						$ 107,400,000
Common stock, shares outstanding \| shares																						31,250,000
Selling price of restricted shares \| $ / shares							$ 2.59
Mann Group \| Warrant Liability
Related Party Transaction [Line Items]
Restricted warrants sale price \| $ / shares							$ 0.125
Mann Group \| Warrant Liability \| Private Placement
Related Party Transaction [Line Items]
Number of shares represented by purchased warrants \| shares							30,000,000
Seaside Eight Eight Limited Partnership
Related Party Transaction [Line Items]
Common stock issued and sold \| shares											1,400,000	2,100,000			3,500,000	1,400,000	2,100,000	3,500,000
Net proceeds from issuance of common stock											$ 9,700,000	$ 14,100,000			$ 23,800,000	$ 9,700,000	$ 14,100,000	$ 23,800,000

Principal Amount Outstanding under Loan Arrangement (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Related Party Transaction [Line Items]
Capitalization of accrued and unpaid interest due and payable	$ 400	$ 300	$ 400
Mann Group
Related Party Transaction [Line Items]
Principal amount outstanding at December 31, 2012	119,635
Capitalization of accrued and unpaid interest due and payable	7,886
Reduction of principal indebtedness related to the issuance of common stock pursuant to The Mann Group Warrants completed on October 31, 2013	(78,000)
Principal amount outstanding at December 31, 2013	$ 49,521	$ 119,635

Summary of Senior Convertible Notes (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Aug. 18, 2010	Dec. 12, 2006
Debt Instrument [Line Items]
Senior convertible notes	$ 98,439	$ 212,026
Senior convertible notes due December 15, 2013
Debt Instrument [Line Items]
Principal amount		115,000		$ 115,000
Unaccreted debt issuance cost		(557)
Net carrying amount		114,443
Senior convertible notes	0
Senior convertible notes due August 15 2015
Debt Instrument [Line Items]
Principal amount	100,000	100,000	$ 100,000
Unaccreted debt issuance cost	(1,561)	(2,417)
Net carrying amount	$ 98,439	$ 97,583

Senior Convertible Notes - Additional Information (Detail)				12 Months Ended			275 Months Ended
	Dec. 15, 2013 USD ($)	Aug. 18, 2010 USD ($) d $ / shares	Dec. 12, 2006 USD ($) $ / shares	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2013 USD ($)
Debt Instrument [Line Items]
Debt instrument settlement amount	$ 115,000,000			$ 115,000,000			$ 115,000,000
Accretion of debt issuance costs				1,400,000	$ 1,400,000	$ 1,300,000
Senior convertible notes due August 15 2015
Debt Instrument [Line Items]
Principal amount		$ 100,000,000		100,000,000	100,000,000		100,000,000
Senior notes, effective interest rate		5.75%
Accrued interest				2,400,000	2,200,000		2,400,000
No of convertible shares		147.0859
Principal amount per share \| $ / shares		$ 1,000
Conversion price of shares \| $ / shares		$ 6.80
Percentage of repurchase price		100.00%
Percentage of conversion price equaling stock price		150.00%
Trading days \| d		20
Consecutive trading days		30 days
Issuance cost		$ 4,200,000
Senior convertible notes due December 15, 2013
Debt Instrument [Line Items]
Principal amount			$ 115,000,000		115,000,000
Senior notes, effective interest rate			3.75%
Accrued interest				$ 0	$ 192,000		$ 0
No of convertible shares			44.5002
Principal amount per share \| $ / shares			$ 1,000
Conversion price of shares \| $ / shares			$ 22.47
Percentage of repurchase price			100.00%
Issuance cost			$ 3,700,000
Senior convertible notes due December 15, 2013 \| Underwriters Overallotment Option
Debt Instrument [Line Items]
Principal amount			$ 15,000,000

Restructuring Charges - Additional Information (Detail) $ in Thousands		12 Months Ended
	Feb. 10, 2011 USD ($) Employee	Dec. 31, 2011 USD ($)
Restructuring Cost and Reserve [Line Items]
Percentage of workforce reduction	41.00%
Number of employees eliminated \| Employee	257
Restructuring charges	$ 6,700
Restructuring charges, net of tax		$ 6,300
Workforce Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring liability	$ 6,659	67
Research And Development
Restructuring Cost and Reserve [Line Items]
Restructuring charges, net of tax		4,700
General and Administrative
Restructuring Cost and Reserve [Line Items]
Restructuring charges, net of tax		$ 1,600

Restructuring Charges (Detail) - Workforce Reduction - USD ($) $ in Thousands	11 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2012
Restructuring Cost and Reserve [Line Items]
Restructuring Beginning Balance	$ 6,659	$ 67
Cash payments	(6,189)
Adjustment	(403)	$ (67)
Restructuring Ending Balance	$ 67

Fair Value of Financial Instruments - Additional Information (Detail)				12 Months Ended
	Jul. 01, 2013	Dec. 20, 2012	Oct. 18, 2012	Dec. 31, 2013 USD ($) Derivative	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2012 USD ($)
Fair Value of Financial Instruments [Line Items]
Cash equivalents				$ 70,800,000			$ 61,800,000
Senior convertible notes, balance outstanding				$ 98,439,000			212,026,000
Market discount rate		1.50%	2.30%
Number of embedded derivatives contained in facility financing obligation \| Derivative				4
Unrealized loss on foreign exchange hedging						$ 200,000
Gain on foreign exchange hedging contract					$ 1,300,000	(1,600,000)
Senior convertible notes due December 15, 2013
Fair Value of Financial Instruments [Line Items]
Senior convertible notes, balance outstanding				$ 0
Senior convertible notes due August 15 2015
Fair Value of Financial Instruments [Line Items]
Long-term historical volatility rate				65.00%
Deerfield
Fair Value of Financial Instruments [Line Items]
Facility arrangement amount to be paid in excess of legal judgment				$ 100,000
Income Approach Valuation Technique \| Milestone Rights Liability
Fair Value of Financial Instruments [Line Items]
Market discount rate	12.40%			12.70%
Income Approach Valuation Technique \| Commitment Asset
Fair Value of Financial Instruments [Line Items]
Market discount rate	12.00%
Income Approach Valuation Technique \| Scenario, Forecast \| Milestone Rights Liability
Fair Value of Financial Instruments [Line Items]
Market discount rate	17.50%
Foreign Exchange Contract
Fair Value of Financial Instruments [Line Items]
Foreign exchange hedging contracts notional amount					$ 0	$ 25,500,000
Major Transaction Put Option
Fair Value of Financial Instruments [Line Items]
Estimated fair value of the embedded derivative , cumulative probability percentage				0.80%
Conversion option feature
Fair Value of Financial Instruments [Line Items]
Estimated fair value of the embedded derivative , cumulative probability percentage				0.00%
Acceleration upon a Legal Judgment Against the Company in Excess of $100,000
Fair Value of Financial Instruments [Line Items]
Estimated fair value of the embedded derivative , cumulative probability percentage				0.10%
Money market funds
Fair Value of Financial Instruments [Line Items]
Cash equivalents				$ 67,700,000			$ 60,800,000

Summary of Carrying Values and Estimated Fair Values of Senior Convertible Notes (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Senior convertible notes due December 15, 2013
Convertible Debt [Line Items]
Carrying value		$ 114,443
Estimated fair value		81,900
Senior convertible notes due August 15 2015
Convertible Debt [Line Items]
Carrying value	$ 98,439	97,583
Estimated fair value	102,200	$ 63,200
Senior convertible notes due December 31 2019
Convertible Debt [Line Items]
Carrying value	102,300
Estimated fair value	$ 107,000

Changes in Fair Value of Level 3 Forward Purchase Contract (Detail) - Fair Value, Inputs, Level 3	12 Months Ended
	Dec. 31, 2012 USD ($)
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance
Issuance	29,317
Adjustments to fair value included in other income (expense)	(1,237)
Transfers to additional paid-in-capital	(28,080)
Ending Balance
The February 2012 Forward Purchase Contract
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance
Issuance	1,080
Adjustments to fair value included in other income (expense)	12,011
Transfers to additional paid-in-capital	(13,091)
Ending Balance
The October 2012 Forward Purchase Contract
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance
Issuance	28,237
Adjustments to fair value included in other income (expense)	(13,248)
Transfers to additional paid-in-capital	(14,989)
Ending Balance

Common and Preferred Stock - Additional Information (Detail)								1 Months Ended				3 Months Ended		10 Months Ended	12 Months Ended																			13 Months Ended	24 Months Ended	275 Months Ended
	Dec. 20, 2012 USD ($) shares	Oct. 18, 2012	May 17, 2012 USD ($) $ / shares shares	Feb. 08, 2012 USD ($) $ / shares $ / Right shares	Aug. 10, 2010 USD ($) $ / shares shares	Aug. 05, 2009 USD ($) $ / shares shares	Aug. 05, 2005 USD ($) $ / Right shares	Oct. 31, 2013 USD ($) shares	Dec. 31, 2012 USD ($) $ / shares shares	Oct. 31, 2012 USD ($) $ / shares $ / Right shares	May 31, 2012 shares	Mar. 31, 2011 USD ($) shares	Dec. 31, 2010 USD ($) shares	Dec. 31, 1994 USD ($)	Dec. 31, 2013 USD ($) $ / shares shares	Dec. 31, 2012 USD ($) $ / shares shares	Dec. 31, 2011 USD ($) shares	Mar. 31, 2011 USD ($) shares	Dec. 31, 2010 USD ($) shares	Dec. 31, 2009 USD ($)	Dec. 31, 2007 USD ($)	Dec. 31, 2006 USD ($)	Dec. 31, 2005 USD ($)	Dec. 31, 2003 USD ($)	Dec. 31, 2002 USD ($)	Dec. 31, 2001 USD ($)	Dec. 31, 2000 USD ($)	Dec. 31, 1999 USD ($)	Dec. 31, 1998 USD ($)	Dec. 31, 1997 USD ($)	Dec. 31, 1996 USD ($)	Feb. 28, 1994 USD ($)	Feb. 28, 1993 USD ($)	Feb. 29, 1992 USD ($)	Dec. 31, 2011 USD ($) shares	Dec. 31, 2013 USD ($) $ / shares shares	Jul. 01, 2013 USD ($)	Sep. 30, 2012	Jun. 30, 2012 USD ($)	Jun. 27, 2012 shares	Aug. 18, 2010 USD ($)
Class of Stock [Line Items]
Common stock sold														$ 1,805,000	$ 48,888,000		$ 9,540,000		$ 14,335,000	$ 59,724,000	$ 249,750,000	$ 384,670,000	$ 170,234,000	$ 50,000,000	$ 58,815,000	$ 78,030,000	$ 31,633,000	$ 534,000	$ 12,726,000	$ 196,000	$ 59,000	$ 526,000	$ 888,000	$ 900,000
Rate at which warrants are exercisable \| $ / Right										2.60
Net proceeds from issuance of common stock																																				$ 3,900,000
Common stock loaned under share lending agreement, shares \| shares									9,000,000						9,000,000	9,000,000	9,000,000																		9,000,000	9,000,000
Nominal lending fee \| $ / shares																$ 0.01
Reduction of principal on note payable to related party upon issuance of common stock															$ 78,000,000	$ 184,537,000	$ 11,116,000																			$ 290,334,000
Number of Unit Sold in an Underwritten public offering \| shares				35,937,500
Units sold composition description				Each unit consisting of one share of common stock and a warrant to purchase 0.6 of a share of common stock
Warrant to purchase of a share of common stock \| $ / Right				0.6
Net proceeds from offering				$ 80,600,000
Common stock, shares outstanding \| shares									286,035,082						369,391,972	286,035,082																				369,391,972				31,250,000
Restricted Stock Agreed to be Purchased by Lender				$ 77,200,000																																			$ 77,200,000
Proceeds from exercise warrants								$ 89,700,000							$ 94,147,000																					$ 94,147,000
Number of Shares that recorded the portion of the derivative instrument representing outside of equity \| shares															16,500,000																					16,500,000
Authorized shares under common stock purchase agreement \| shares	350,000,000		250,000,000						350,000,000		250,000,000
Common stock, shares authorized \| shares	550,000,000		350,000,000						550,000,000		350,000,000				550,000,000	550,000,000																				550,000,000
Change in fair value recognized in other income									$ 12,000,000							$ 12,000,000
Valuation of non-equity portion of forward contract \| $ / shares			$ 1.69						$ 2.40							$ 2.40
Risk Free Interest Rate																																						0.10%
Discount for lack of marketability			0.42%
Underwritten public offering \| shares										40,000,000
Common Stock Purchase \| shares										30,000,000
Additional common stock shares issued \| shares										6,000,000
Additional Purchase Of Common Stock \| shares										4,500,000
Net proceeds from public offering										$ 86,300,000
Warrant entitles the holder to purchase a share of common stock										0.75
Warrant expiration date										2013-10
Fair value assumption risk free rate	0.00%	0.11%
Fair value input discount rate	1.50%	2.30%
Amount of common shares issued upon conversion																																				$ 3,331,000
Facility financing obligation															$ 102,300,000																					$ 102,300,000
Common stock, par value \| $ / shares									$ 0.01						$ 0.01	$ 0.01																				$ 0.01
Undesignated preferred stock, shares authorized \| shares									10,000,000						10,000,000	10,000,000																				10,000,000
Undesignated preferred stock, par value \| $ / shares									$ 0.01						$ 0.01	$ 0.01																				$ 0.01
Common stock, shares issued \| shares									286,035,082						369,391,972	286,035,082																				369,391,972
Current Asset
Class of Stock [Line Items]
Fair value of forward contract															$ 28,200,000																					$ 28,200,000
Additional Paid-in Capital
Class of Stock [Line Items]
Common stock sold														$ 1,805,000	48,789,000		$ 9,526,000		$ 14,314,000	$ 59,640,000	$ 249,480,000	$ 384,440,000	$ 170,063,000	$ 49,965,000	$ 58,775,000	$ 78,000,000	$ 33,945,000	$ 532,000	$ 12,703,000	$ 190,000	$ 59,000	$ 526,000	$ 887,000	$ 890,000
Fair value of forward contract															15,000,000																					15,000,000
Other income (expense)
Class of Stock [Line Items]
Fair value of forward contract															13,200,000																					13,200,000
Warrant Liability
Class of Stock [Line Items]
Purchased Price of the units by underwriters \| $ / Right										2.00
Other Than Equity
Class of Stock [Line Items]
Fair value of Non-Equity Portion			$ 13,100,000
Risk Free Interest Rate			0.18%
Warrant Liability
Class of Stock [Line Items]
Rate at which warrants are exercisable \| $ / Right				2.40
Number of warrants are exercisable \| shares				21,562,500
Duration for Expiration of warrants				4 years
Underwriters
Class of Stock [Line Items]
Number of Unit Sold in an Underwritten public offering \| shares				4,687,500
Purchased Price of the units by underwriters \| $ / Right				2.256
Public
Class of Stock [Line Items]
Purchased Price of the units by underwriters \| $ / Right				2.40
Senior convertible notes due August 15 2015
Class of Stock [Line Items]
Debt facility principal amount									$ 100,000,000						100,000,000	$ 100,000,000																				100,000,000					$ 100,000,000
Accrued interest that became due and payable upon cancellation of the of principal indebtedness, to be capitalized									$ 2,200,000						2,400,000	$ 2,200,000																				2,400,000
Senior convertible notes due December 31 2019
Class of Stock [Line Items]
Debt facility principal amount															120,000,000																					120,000,000
Facility financing obligation															102,300,000																					102,300,000
Senior convertible notes due December 31 2019 \| Deerfield
Class of Stock [Line Items]
Amount of common shares issued upon conversion															$ 6,500,000
Common shares issued upon conversion \| shares															1,293,224
Notes Issued in Three Equal Tranches \| Senior convertible notes due December 31 2019 \| Deerfield
Class of Stock [Line Items]
Debt facility principal amount																																					$ 120,000,000
Amount of common shares issued upon conversion															$ 6,500,000
Common shares issued upon conversion \| shares															1,293,224
Facility financing obligation															$ 113,500,000																					113,500,000
Amended Agreement \| Principal stockholder
Class of Stock [Line Items]
Issuance of common shares pursuant to warrant exercises \| shares								30,000,000
Principal indebtedness cancelled under the loan arrangement as payment for the aggregate exercise price of The Mann Group Warrants								$ 78,000,000
Accrued interest that became due and payable upon cancellation of the of principal indebtedness, to be capitalized								$ 7,900,000
Public Offering
Class of Stock [Line Items]
Common stock issued and sold \| shares						8,360,000
Net proceeds from issuance of common stock						$ 59,700,000
Proceeds from exercise warrants															4,500,000
Warrants remained unexercised															47,300,000																					47,300,000
Public Offering \| Principal stockholder
Class of Stock [Line Items]
Common stock issued and sold \| shares						1,000,000
Common stock sold price per share \| $ / shares						$ 8.11
Public Offering \| Underwriters Overallotment Option
Class of Stock [Line Items]
Common stock issued and sold \| shares						960,000
Common stock sold price per share \| $ / shares						$ 7.35
Private Placement
Class of Stock [Line Items]
Common stock sold							$ 175,000,000
Common stock issued and sold \| shares							17,132,000
Common stock issuable up on exercise of warrants \| shares							3,426,000
Rate at which warrants are exercisable \| $ / Right							12.228
Commissions paid to the placement agents							$ 4,500,000
Other offering cost							300,000
Net Proceeds from private placement of common stock							170,200,000
Private Placement \| Warrant Liability
Class of Stock [Line Items]
Underwritten public offering \| shares										40,000,000
Private Placement \| Restricted Stock
Class of Stock [Line Items]
Underwritten public offering \| shares										40,000,000
Private Placement \| Principal stockholder
Class of Stock [Line Items]
Common stock sold							$ 87,300,000
Seaside Eight Eight Limited Partnership
Class of Stock [Line Items]
Common stock issued and sold \| shares												1,400,000	2,100,000				3,500,000	1,400,000	2,100,000																3,500,000
Net proceeds from issuance of common stock												$ 9,700,000	$ 14,100,000				$ 23,800,000	$ 9,700,000	$ 14,100,000																$ 23,800,000
Common stock sold in increments \| shares					18,200,000
Increments of shares \| shares					700,000
Trading period volume					10 days
Percentage of purchase price					92.00%
Seaside Eight Eight Limited Partnership \| Minimum
Class of Stock [Line Items]
Weighted average trading price \| $ / shares					$ 6.50
Mann Group
Class of Stock [Line Items]
Common stock issued and sold \| shares																	1,400,000	1,400,000	2,100,000																3,500,000
Net proceeds from issuance of common stock																	$ 11,100,000		$ 16,700,000																$ 11,100,000
Closing bid price of common stock \| $ / shares					$ 7.15
Reduction of principal on note payable to related party upon issuance of common stock					$ 350,000,000													$ 27,800,000
Common stock, shares outstanding \| shares				31,250,000
Restricted common stock price per share \| $ / shares				$ 2.47
Restricted Stock Agreed to be Purchased by Lender	$ 107,400,000									$ 107,400,000
Selling price of restricted shares \| $ / shares										$ 2.59
Amended and restated promissory note outstanding principal amount										$ 350,000,000
Mann Group \| Warrant Liability
Class of Stock [Line Items]
Restricted warrants sale price \| $ / shares										$ 0.125
Mann Group \| Forward Purchase Contracts
Class of Stock [Line Items]
Fair value of the forward purchase contract															2,000,000																					2,000,000
Discount for lack of marketability			2.57%
Mann Group \| Forward Purchase Contracts \| Other Than Equity
Class of Stock [Line Items]
Fair value of the forward purchase contract															$ 1,100,000																					$ 1,100,000
Risk Free Interest Rate			0.08%
Mann Group \| Forward Purchase Contracts \| Equity Component
Class of Stock [Line Items]
Number of Shares that recorded the portion of the derivative instrument representing equity \| shares															14,700,000																					14,700,000
Fair value of the forward purchase contract															$ 900,000																					$ 900,000
Mann Group \| Private Placement \| Warrant Liability
Class of Stock [Line Items]
Number of warrants are exercisable \| shares										30,000,000
Related Party
Class of Stock [Line Items]
Units sold composition description				Each unit consisting of one share of common stock and a warrant to purchase 0.6 of a share of common stock

Net Loss per Common Share - Additional Information (Detail) - shares	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net Income Loss Per Common Share [Line Items]
Companies common stock share outstanding	9,000,000	9,000,000	9,000,000
Shares loaned under the share lending arrangement	9,000,000	9,000,000

Potentially Dilutive Securities Outstanding (Detail) - shares	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net Income Loss Per Common Share [Line Items]
Potentially dilutive securities outstanding	78,475,367	128,324,123	34,048,852
Stock Options
Net Income Loss Per Common Share [Line Items]
Potentially dilutive securities outstanding	24,237,940	18,674,539	10,082,351
Convertible Debt Securities
Net Income Loss Per Common Share [Line Items]
Potentially dilutive securities outstanding	25,415,366	19,826,113	19,826,113
Warrant Liability
Net Income Loss Per Common Share [Line Items]
Potentially dilutive securities outstanding	19,706,240	86,062,440
Restricted Stock
Net Income Loss Per Common Share [Line Items]
Potentially dilutive securities outstanding	9,115,821	3,761,031	4,140,388

Stock Award Plans - Additional Information (Detail) - USD ($)							1 Months Ended	12 Months Ended
	May 23, 2013	Mar. 07, 2013	May 17, 2012	Mar. 03, 2011	Aug. 01, 2010	Jul. 09, 2008	Mar. 31, 2004	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option grants vest exercisable rate								25.00%
Restricted stock vesting rate								25.00%
Vesting period								4 years
Options granted								6,919,900
Restricted stock units granted								8,481,459
Weighted average grant date fair value of the stock options granted								$ 3.26	$ 0.99	$ 2.04
Weighted average grant date fair value of the restricted stock granted								$ 3.93
Stock based compensation expense related to stock award plans and the ESPP								$ 45,186,000	$ 13,292,000	$ 11,204,000
Share reserve								700,000	700,000	700,000
Share of common stock outstanding							1.00%
Shares sold to employees								463,290	422,260	282,816
Options to purchase common stock								24,237,940	18,674,539
Total intrinsic value of options exercised								$ 3,100,000	$ 1,000	$ 443,000
Cash received from the exercise of options								$ 2,300,000	$ 9,200	$ 625,000
Weighted-average remaining contractual term								6 years 10 months 2 days	7 years 9 months 7 days	7 years 9 months 18 days
Restricted stock units expected to vest								8,761,363
Weighted average grant date fair value								$ 3.40
Total intrinsic value of restricted stock units expected to vest								$ 45,600,000
Total intrinsic value of restricted stock units vested								13,900,000	$ 2,900,000	$ 1,700,000
Fair value of restricted stock units vested								$ 14,900,000	$ 3,000,000	$ 1,600,000
Weighted average vesting period for unrecognized compensation cost								1 year 7 months 6 days
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance mile stone period range								11 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance mile stone period range								96 months
Options granted expiry term								10 years
Shares reserved under ESPP							10.00%
2004 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting rate				50.00%
Restricted stock units granted				1,177,300
Stock options granted				1,467,500
Stock based compensation expense related to stock award plans and the ESPP				$ 8,200,000
Options to purchase common stock								16,792,784
Employee Stock Purchase Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance							2,000,000	2,679,007
Share reserve automatic increase each year							700,000
2013 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity incentive plan, shares	21,500,000
Options to purchase common stock								6,754,325
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period								36 months
Unrecognized compensation cost related to non vested stock options								$ 15,200,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non vested stock options								23,200,000
Performance Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	5,598,100
Weighted average grant date fair value of the stock options granted	$ 3.05
Unrecognized compensation cost related to non vested stock options								107,000
Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	1,687,900	5,846,000
Weighted average grant date fair value of the restricted stock granted	$ 6.85	$ 2.81
Unrecognized compensation cost related to non vested stock options								$ 3,700,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period								4 years
Performance based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted			3,942,500
Weighted average grant date fair value of the stock options granted			$ 0.60
Time Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted			3,892,500
Weighted average grant date fair value of the stock options granted			$ 1.12
Options vesting percentage			25.00%
Options vesting date			May 01, 2014
Stock Option And Award Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding option to purchase common stock						5,417,840
Option purchase						4,493,509
Restricted stock unit issued						2,246,781
Unamortized stock compensation expenses						$ 13,900,000
Incremental stock compensation expenses					$ 3,700,000
Consultant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase common stock								203,700

Stock Based Award Plans (Detail) - shares	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Options	24,237,940	18,674,539
Outstanding Restricted Stock Units	9,115,821	3,761,031
Shares Available for Future Issuance	13,590,564
2004 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Options	16,792,784
Outstanding Restricted Stock Units	6,949,202
2013 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Options	6,754,325
Outstanding Restricted Stock Units	2,166,619
Shares Available for Future Issuance	13,590,564
Two Thousand Four Non Employee Directors Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Options	690,831

Stock Based Compensation Expense Recognized in Accompanying Statements of Operation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation	$ 45,186	$ 13,292	$ 11,204
Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation	45,181	13,224	11,202
Consultant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation	$ 5	$ 68	$ 2

Stock Based Compensation Expense Recognized in Accompanying Statements of Operations by Category (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation	$ 45,186	$ 13,292	$ 11,204
Research And Development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation	20,409	6,167	5,366
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation	$ 24,777	$ 7,125	$ 5,838

Fair Value of Employee Stock Options Assumptions (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Dividends
Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Risk-free interest rate	0.94%	0.32%	0.10%
Expected lives	2 years 7 months 21 days	1 year 4 months 24 days	1 year 1 month 6 days
Volatility	75.83%	70.00%	76.00%
Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Risk-free interest rate	1.82%	1.16%	2.43%
Expected lives	5 years 9 months 7 days	6 years 1 month 6 days	6 years 1 month 6 days
Volatility	86.26%	84.00%	83.00%

Summary of Stock Options Outstanding (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($) $ / shares shares
Number of Shares
Outstanding at January 1, 2013 \| shares	18,674,539
Granted \| shares	6,919,900
Exercised \| shares	(881,139)
Forfeit \| shares	(287,374)
Expired \| shares	(187,986)
Outstanding at December 31, 2013 \| shares	24,237,940
Vested and expected to vest at December 31, 2013 \| shares	23,533,436
Exercisable at December 31, 2013 \| shares	12,358,495
Weighted Average Exercise Price per Share
Outstanding at January 1, 2013 \| $ / shares	$ 3.46
Granted \| $ / shares	6.63
Exercised \| $ / shares	2.60
Forfeit \| $ / shares	2.93
Expired \| $ / shares	10.65
Outstanding at December 31, 2013 \| $ / shares	4.35
Vested and expected to vest at December 31, 2013 \| $ / shares	4.35
Exercisable at December 31, 2013 \| $ / shares	$ 4.36
Aggregate Intrinsic Value
Outstanding at January 1, 2013 \| $	$ 4,867
Outstanding at December 31, 2013 \| $	40,972
Vested and expected to vest at December 31, 2013 \| $	40,972
Exercisable at December 31, 2013 \| $	$ 22,126

Summary of Restricted Stock Unit Activity (Detail)	12 Months Ended
Summary of Restricted Stock Unit Activity (Detail)	Dec. 31, 2013 $ / shares shares
Number of shares
Outstanding at January 1, 2013 \| shares	3,761,031
Granted \| shares	8,481,459
Vested \| shares	(2,861,059)
Forfeited \| shares	(265,610)
Outstanding at December 31, 2013 \| shares	9,115,821
Weighted average grant date fair value Per share
Outstanding at January 1, 2013 \| $ / shares	$ 3.73
Granted \| $ / shares	3.93
Vested \| $ / shares	3.82
Forfeited \| $ / shares	3.36
Outstanding at December 31, 2013 \| $ / shares	$ 3.90

Commitments and Contingencies - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Aug. 03, 2012
Commitments and Contingencies [Line Items]
Operating lease rent expenses		$ 645,000	$ 675,000	$ 766,000
Settlement payment		16,000,000
Loss contingency settlement agreement stock consideration	$ 8,600,000		$ 8,600,000
Loss contingency settlement agreement stock issuable	901,000		3,002,778
Stock price used to forecast future liability	$ 1.00
Fair value assumption expected volatility rate	54.00%
Fair value assumption risk free interest rate	0.10%
Equity
Commitments and Contingencies [Line Items]
Loss contingency settlement agreement stock consideration			$ 6,500,000
Adjustment to decrease legal expense
Commitments and Contingencies [Line Items]
Loss contingency settlement agreement stock consideration			2,100,000
Securities Action
Commitments and Contingencies [Line Items]
Required payment to class members and attorneys		$ 16,000,000
Number of common stock to be issued to class members and attorneys		2,777,778
Closing bid price of common stock		$ 1.00
Additional number of common stock to be issued to class members and attorneys		1,000,000
Remittance by insurers into Escrow account			$ 16,000,000
Transfer of common stock into Escrow account			2,777,778
Loss contingency settlement agreement stock issuable			2,777,778
Derivative Actions
Commitments and Contingencies [Line Items]
Required payment by insurer to plaintiff					$ 800,000
Additional number of common stock to be issued to plaintiff attorneys					225,000
Remittance by insurers into account established by plaintiffs' attorneys			$ 800,000
Transfer of common stock into investment brokerage account			225,000
Loss contingency settlement agreement stock issuable			225,000
Securities and Derivative Lawsuits
Commitments and Contingencies [Line Items]
Loss Contingency settlement agreement cash consideration			$ 16,800,000
Loss contingency settlement agreement stock consideration			$ 7,700,000
Loss contingency settlement agreement stock issuable			3,002,778
Stock price used to forecast future liability			$ 1.00
Fair value assumption expected volatility rate			60.00%
Fair value assumption risk free interest rate			0.16%
Securities and Derivative Lawsuits \| Minimum
Commitments and Contingencies [Line Items]
Range of final judgment			4 months
Securities and Derivative Lawsuits \| Maximum
Commitments and Contingencies [Line Items]
Range of final judgment			6 months
Expenses
Commitments and Contingencies [Line Items]
Settlement payment		$ 8,400,000
Cancellation fee
Commitments and Contingencies [Line Items]
Settlement payment		$ 7,600,000

Fair Value of Stock Consideration (Detail) - USD ($)	9 Months Ended	12 Months Ended
Fair Value of Stock Consideration (Detail) - USD ($)	Sep. 30, 2012	Dec. 31, 2012
Commitments and Contingencies [Line Items]
Number of Shares	901,000	3,002,778
Final Fair Value of Stock Consideration		$ 6,492,056
Derivative Actions
Commitments and Contingencies [Line Items]
Number of Shares		225,000
Closing Price Per Share on Final Approval Date		$ 1.94
Final Fair Value of Stock Consideration		$ 436,500
Securities Action
Commitments and Contingencies [Line Items]
Number of Shares		2,777,778
Closing Price Per Share on Final Approval Date		$ 2.18
Final Fair Value of Stock Consideration		$ 6,055,556

Employee Benefit Plans - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contribution savings retirement plan	$ 533,000	$ 571,000	$ 777,000

Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current
U.S. federal
U.S. state
Non-U.S.
Total current
Deferred
U.S. federal	59,379	51,540	48,643
U.S. state	7,470	9,199	8,582
Non-U.S.
Valuation Allowance	(66,849)	(60,739)	(57,225)
Total deferred
Total

Components of Net Deferred Tax Asset (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets:
Net operating loss carryforwards	$ 653,896	$ 609,471
Research and development credits	70,091	65,315
Capitalized research	30,421	31,490
Milestone Rights	6,608
Accrued expenses	3,578	2,922
Non-qualified stock option expense	41,219	30,928
Capitalized patent costs	7,811	6,891
Other	837
Depreciation	2,539	3,134
Total net deferred tax assets	817,000	750,151
Valuation allowance	(817,000)	(750,151)
Net deferred tax assets

Effective Income Tax Rate (Detail)	12 Months Ended
Effective Income Tax Rate (Detail)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule Of Income Taxes [Line Items]
Federal tax benefit rate	35.00%	35.00%	35.00%
State tax benefit, net of federal benefit
Permanent items
Intercompany transfer of intellectual property	(4.30%)	(4.00%)	(5.00%)
Valuation allowance	(30.70%)	(31.00%)	(30.00%)
Effective income tax rate	0.00%	0.00%	0.00%

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2004	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Taxes [Line Items]
Change in the valuation allowance		$ 66.8	$ 60.7	$ 57.2
Federal operating loss carryforwards		1,700.0
State operating loss carryforwards		$ 1,200.0
Net operating loss carryforwards	$ 216.0
Net operating loss and credit carryforwards, annual use limitation	$ 13.0
Federal
Income Taxes [Line Items]
Net operating loss carry-forwards, expiration year		2018
Research and development credits subject to expiration		$ 45.0
Federal research and development credits begin to expire		2024
State
Income Taxes [Line Items]
Net operating loss carry-forwards, expiration year		2014
Research and development credits not subject to expiration		$ 38.0

Components of Facility Agreement (Detail) $ in Thousands	Dec. 31, 2013 USD ($)
Securities Financing Transaction [Line Items]
Net carrying amount of facility financing agreement	$ 102,300
Initial commitment asset fair value	13,393
Commitment asset value included in other assets	5,157
Tranche Two
Securities Financing Transaction [Line Items]
Less portion of commitment asset	(3,656)
Tranche Three
Securities Financing Transaction [Line Items]
Less portion of commitment asset	(4,580)
Milestone Rights Liability
Securities Financing Transaction [Line Items]
Principal amount	16,276
Debt discount-net of amortization	(51)
Unaccreted debt issuance expense	(61)
Less current portion of milestone rights included in other current liabilities	(3,151)
Net carrying amount	13,013
Senior convertible notes due December 31 2019
Securities Financing Transaction [Line Items]
Principal amount	120,000
Principal converted to equity	(6,500)
Debt discount-net of amortization	(10,834)
Unaccreted debt issuance expense	(366)
Net carrying amount of facility financing agreement	102,300
Net carrying amount	$ 102,300

Facility Financing Agreement - Additional Information (Detail)				12 Months Ended	275 Months Ended
	Jul. 01, 2013 USD ($) shares	Dec. 20, 2012	Oct. 18, 2012	Dec. 31, 2013 USD ($) d $ / shares shares	Dec. 31, 2013 USD ($)
Debt Instrument [Line Items]
Facility Agreement, annual principal payment				$ 28,375,000
Facility Agreement, total principal payment				$ 113,500,000	$ 113,500,000
Facility Agreement, payment commencing date				Jul. 01, 2016
Facility Agreement, payment ending date				Dec. 09, 2019
Proceeds from debt issuance				$ 119,500,000	119,500,000
Payment for debt issue costs				598,000	598,000
Long term liability				102,300,000	102,300,000
Discount rate		1.50%	2.30%
Amount of common shares issued upon conversion					3,331,000
Registration Rights Agreement
Debt Instrument [Line Items]
Share registration statement shares of common stock to be registered \| shares	12,000,000
Facility Agreement \| Maximum
Debt Instrument [Line Items]
Maximum available amount of credit facility under covenant restrictions	$ 25,000,000			25,000,000	25,000,000
Senior convertible notes due December 31 2019
Debt Instrument [Line Items]
Debt facility principal amount				120,000,000	120,000,000
Estimated fair values debt issued				107,000,000	107,000,000
Long term liability				$ 102,300,000	$ 102,300,000
Deerfield
Debt Instrument [Line Items]
Payment for debt issue costs	500,000
Debt issuance costs	597,529
Number of trading days \| d				20
Notification in number of days				20 days
Number of business days \| d				2
Facility arrangement amount to be paid in excess of legal judgment				$ 100,000
Deerfield \| Deerfield Conversion price is less than $3.33
Debt Instrument [Line Items]
Common shares issued upon conversion \| shares				12,000,000
Common shares issued upon conversion per share price \| $ / shares				$ 3.33
Deerfield \| Deerfield Conversion price exceeds $6.67
Debt Instrument [Line Items]
Common shares issued upon conversion \| shares				6,000,000
Common shares issued upon conversion per share price \| $ / shares				$ 6.67
Deerfield \| Deerfield Conversion price between $3.33 and 6.67
Debt Instrument [Line Items]
Amount of common shares issued upon conversion				$ 40,000,000
Deerfield \| Fourth Tranche
Debt Instrument [Line Items]
Debt issuance costs	128,008
Deerfield \| Maximum \| Deerfield Conversion price between $3.33 and 6.67
Debt Instrument [Line Items]
Common shares issued upon conversion per share price \| $ / shares				$ 6.67
Deerfield \| Maximum \| Milestone Rights Liability
Debt Instrument [Line Items]
Contingent liability for milestone payments	$ 90,000,000
Deerfield \| Minimum
Debt Instrument [Line Items]
Percentage of beneficial ownership				9.985%	9.985%
Deerfield \| Minimum \| Deerfield Conversion price between $3.33 and 6.67
Debt Instrument [Line Items]
Common shares issued upon conversion per share price \| $ / shares				$ 3.33
Deerfield \| Senior convertible notes due December 31 2019
Debt Instrument [Line Items]
Repayment as a percentage of original principal amount	25.00%
Debt instrument maturity date	Dec. 31, 2019
Value received, from Tranche 1 Notes and Milestone Rights	$ 52,900,000
Commitment asset at fair value	13,400,000
Payment for debt issue costs	448,737
Debt issuance costs	536,266
Additional damage calculation percentage				1.00%	1.00%
Common shares issued upon conversion \| shares				1,293,224
Amount of common shares issued upon conversion				$ 6,500,000
Deerfield \| Senior convertible notes due December 31 2019 \| Tranche One
Debt Instrument [Line Items]
Debt facility principal amount	40,000,000
Proceeds from debt issuance	39,500,000
Estimated fair values debt issued	$ 37,100,000
Effective interest rate	12.19%
Debt discount	$ 3,300,000
Deerfield \| Senior convertible notes due December 31 2019 \| Tranche Two
Debt Instrument [Line Items]
Debt facility principal amount	$ 40,000,000
Effective interest rate	12.45%
Debt discount	$ 3,700,000
Deerfield \| Senior convertible notes due December 31 2019 \| Milestone Rights Liability
Debt Instrument [Line Items]
Estimated fair values debt issued	16,300,000
Short term liability	3,200,000
Long term liability	$ 13,100,000
Discount rate	17.50%
Risk premium	5.00%
Deerfield \| Senior convertible notes due December 31 2019 \| Notes Issued in Four Equal Tranches
Debt Instrument [Line Items]
Debt facility principal amount	$ 160,000,000
Debt facility periodic principal amount	$ 40,000,000
Interest rate	9.75%
Deerfield \| Senior convertible notes due December 31 2019 \| Tranche Three
Debt Instrument [Line Items]
Debt facility principal amount	$ 40,000,000
Effective interest rate	13.49%
Debt discount	$ 5,000,000

Accretion of Debt Issuance Cost and Debt Discount in Connection with Deerfield Financing (Detail) - Deerfield - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2013
Debt Instrument [Line Items]
Accretion expense- debt issuance cost	$ 34	$ 42
Accretion expense- debt discount	$ 923	$ 1,113

Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								10 Months Ended	12 Months Ended																					13 Months Ended	275 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 1994	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007	Dec. 31, 2006	Dec. 31, 2005	Dec. 31, 2004	Dec. 31, 2003	Dec. 31, 2002	Dec. 31, 2001	Dec. 31, 2000	Dec. 31, 1999	Dec. 31, 1998	Dec. 31, 1997	Dec. 31, 1996	Dec. 31, 1995	Feb. 28, 1994	Feb. 28, 1993	Feb. 29, 1992	Dec. 31, 2013
Interim Reporting [Line Items]
Net loss	$ (53,582)	$ (50,818)	$ (46,124)	$ (40,965)	$ (51,781)	$ (42,834)	$ (36,578)	$ (38,173)	$ (2,004)	$ (191,490)	$ (169,366)	$ (160,804)	$ (170,560)	$ (220,104)	$ (303,039)	$ (293,190)	$ (230,548)	$ (114,338)	$ (75,992)	$ (65,879)	$ (206,265)	$ (48,245)	$ (24,661)	$ (5,679)	$ (3,331)	$ (2,280)	$ (2,570)	$ (2,815)	$ (1,156)	$ (1,175)	$ (911)	$ (2,296,402)
Net loss applicable to common stockholders	$ (53,582)	$ (50,818)	$ (46,124)	$ (40,965)	$ (51,781)	$ (42,834)	$ (36,578)	$ (38,173)		$ (191,490)	$ (169,366)	$ (160,804)																				$ (2,319,614)
Net loss per share applicable to common stockholders - basic and diluted	$ (0.16)	$ (0.17)	$ (0.16)	$ (0.15)	$ (0.23)	$ (0.22)	$ (0.23)	$ (0.27)		$ (0.64)	$ (0.94)	$ (1.32)
Weighted average common shares used to compute basic and diluted net loss per share applicable to common stockholders	337,284	296,386	284,044	280,058	229,234	190,534	159,859	143,154		299,591	180,855	121,817

- Definition

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

+ References

+ Details

Subsequent Event - Additional Information (Detail) $ / shares in Units, $ in Thousands			1 Months Ended	12 Months Ended	275 Months Ended
	Feb. 28, 2014 USD ($) d $ / shares shares	Jul. 01, 2013 USD ($)	Jan. 31, 2014 USD ($) shares	Dec. 31, 2013 USD ($) d shares	Dec. 31, 2013 USD ($)	Mar. 03, 2014 USD ($)	Mar. 18, 2013 USD ($)
Subsequent Event [Line Items]
Amount of common shares issued upon conversion					$ 3,331
Amount of common shares issued upon conversion				$ 6,500	6,500
At-the-Market Issuance Sales Agreement \| Maximum
Subsequent Event [Line Items]
Aggregate offering price of common stock under agreement							$ 50,000
Deerfield
Subsequent Event [Line Items]
Debt facility, convertible threshold trading days \| d				20
Senior convertible notes due December 31 2019
Subsequent Event [Line Items]
Debt facility principal amount				$ 120,000	$ 120,000
Senior convertible notes due December 31 2019 \| Deerfield
Subsequent Event [Line Items]
Amount of common shares issued upon conversion				$ 6,500
Common shares issued upon conversion \| shares				1,293,224
Due date of the notes issued		Dec. 31, 2019
Repayment as a percentage of original principal amount		25.00%
Senior convertible notes due December 31 2019 \| Deerfield \| Tranche Two
Subsequent Event [Line Items]
Debt facility principal amount		$ 40,000
Senior convertible notes due December 31 2019 \| Deerfield \| Notes Issued in Four Equal Tranches
Subsequent Event [Line Items]
Debt facility principal amount		$ 160,000
Interest rate		9.75%
Subsequent Event \| At-the-Market Issuance Sales Agreement \| Maximum
Subsequent Event [Line Items]
Aggregate offering price of common stock under agreement						$ 50,000
Subsequent Event \| Senior convertible notes due December 31 2019 \| Deerfield
Subsequent Event [Line Items]
Amount of common shares issued upon conversion			$ 33,500
Common shares issued upon conversion \| shares			6,559,251
Amount of common shares issued upon conversion	$ 20,000
Principal amount Percentage conversion of debt into common stock	33.30%
Subsequent Event \| Senior convertible notes due December 31 2019 \| Deerfield \| Tranche Two
Subsequent Event [Line Items]
Common shares issued upon conversion \| shares			7,852,475
Amount of common shares issued upon conversion			$ 40,000
Subsequent Event \| Senior convertible notes due December 31 2019 \| Deerfield \| Tranche B notes
Subsequent Event [Line Items]
Amount of common shares issued upon conversion	$ 0
Due date of the notes issued	Dec. 31, 2019
Subsequent Event \| Senior convertible notes due December 31 2019 \| Deerfield \| Tranche B notes \| Maximum
Subsequent Event [Line Items]
Debt facility principal amount	$ 0
Interest rate	9.75%
Subsequent Event \| Senior convertible notes due December 31 2019 \| Deerfield \| Tranche B notes \| Minimum
Subsequent Event [Line Items]
Interest rate	8.75%
Subsequent Event \| Senior convertible notes due December 31 2019 \| Deerfield \| Fourth Tranche
Subsequent Event [Line Items]
Amount of common shares issued upon conversion	$ 90,000
Principal amount Percentage conversion of debt into common stock	150.00%
Subsequent Event \| Senior convertible notes due December 31 2019 \| Deerfield \| Notes Issued in Four Equal Tranches
Subsequent Event [Line Items]
Common shares issued upon conversion \| shares	12,000,000
Amount of common shares issued upon conversion	$ 60,000
Common shares issued upon conversion per share price \| $ / shares	$ 5.00
Debt facility, convertible threshold trading days \| d	3

Label	Element	Value
Deficit Accumulated During Development Stage [Member]
Net Income Loss	us-gaap_NetIncomeLoss	$ (911,000)
Common Stock [Member]
Stock Issued During Period Shares New Issues	us-gaap_StockIssuedDuringPeriodSharesNewIssues	998,000
Shares Outstanding	us-gaap_SharesOutstanding	998,000
Stock Issued During Period Value New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	$ 10,000

- Definition

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

+ References

+ Details