Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2019	Oct. 31, 2019
Entity Information [Line Items]
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Registrant Name	PDL BIOPHARMA, INC.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		114,184,610
Amendment Flag	false
Entity Central Index Key	0000882104
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Interest revenue	$ 0	$ 754	$ 0	$ 2,254
Revenues	44,165	67,898	60,552	152,991
Operating expenses
Cost of Revenue	15,033	11,926	40,191	37,016
Amortization of Intangible Assets	1,575	1,577	4,745	14,254
General and administrative	12,092	13,211	33,037	39,401
Selling and Marketing Expense	1,712	3,469	6,515	14,367
Research and Development Expense	4,310	672	6,065	2,149
Impairment of Intangible Assets, Finite-lived	0	0	0	152,330
Change in fair value of contingent consideration	0	302	0	(22,433)
Total operating expenses	34,722	31,157	90,553	237,084
Operating income (loss)	9,443	36,741	(30,001)	(84,093)
Non-operating expense, net
Interest and other income, net	1,460	1,581	4,984	4,871
Interest expense	(3,011)	(2,866)	(8,950)	(9,262)
Unrealized Gain (Loss) on Investments	(27,378)	0	18,109	0
Gain (Loss) on Investments	3,476	0	3,476	0
Gain (Loss) on Extinguishment of Debt	(3,900)	0	(3,900)	0
Total non-operating (expense) income, net	(29,353)	(1,285)	13,719	(4,391)
(Loss) income before income taxes	(19,910)	35,456	(16,282)	(88,484)
Income tax (benefit) expense	(1,944)	9,900	(419)	(3,346)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(17,966)	25,556	(15,863)	(85,138)
Net Income (Loss) Attributable to Noncontrolling Interest	(182)	0	(340)	0
Net (loss) income	$ (17,784)	$ 25,556	$ (15,523)	$ (85,138)
Net income per share
Basic (in Dollars per Share)	$ (0.16)	$ 0.18	$ (0.13)	$ (0.58)
Net income per diluted share (in Dollars per Share)	$ (0.16)	$ 0.18	$ (0.13)	$ (0.58)
Weighted average shares outstanding
Basic (in Shares)	112,986	143,171	119,966	147,159
Diluted (in Shares)	112,986	144,224	119,966	147,159
Queen et al. patents [Member]
Revenues
Revenues	$ 0	$ 533	$ 9	$ 4,534
Acquired rights [Member]
Revenues
Revenues	23,865	42,184	(4,277)	66,117
Product Revenue [Member]
Revenues
Revenue from Contract with Customer, Including Assessed Tax	20,345	24,387	64,868	79,472
License and other [Member]
Revenues
Revenues	$ (45)	$ 40	$ (48)	$ 614

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

$ (17,966)

$ 25,556

$ (15,863)

$ (85,138)

Other comprehensive income (loss), net of tax

Change in fair value of investments in available-for-sale securities, net of tax

(578)

Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax

603

Total change in unrealized gains (losses) on investments in available-for-sale securities, net of tax

^[1]

(1,181)

Total other comprehensive income (loss), net of tax

(1,181)

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

(17,966)

25,556

(15,863)

(86,319)

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest

(182)

(340)

Comprehensive income

$ (17,784)

$ 25,556

$ (15,523)

$ (86,319)

[1]	Net of tax of

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=84234705&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109223946&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=84234705&loc=SL4591552-111686

+ Details

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Other Noncontrolling Interests

$ 16

$ 0

Current assets:

Cash and cash equivalents

294,270

^[1],[2]

394,590

^[3]

Accounts receivable, net

12,581

^[1]

21,648

^[3]

Notes receivable

63,317

^[1]

63,042

^[3]

Prepaid and other current assets

15,779

^[1]

18,995

^[3]

Total current assets

406,889

^[1]

517,217

^[3]

Property and equipment, net

6,576

^[1]

7,387

^[3]

Inventory, Net

^[1]

20,942

18,942

Royalty rights

313,943

^[1]

376,510

^[3]

Investments

67,200

Notes receivable, long-term

691

^[1]

771

^[3]

Intangible Assets, Net (Excluding Goodwill)

^[1]

47,349

51,319

Other assets

22,497

^[1]

10,532

^[3]

Total assets

865,145

^[1]

963,736

^[3]

Current liabilities:

Accounts payable

13,256

^[1]

13,142

^[3]

Accrued liabilities

27,653

^[1]

39,312

^[3]

Accrued Income Taxes, Current

^[1]

^[3]

Total current liabilities

40,926

^[1]

52,470

^[3]

Convertible notes payable

132,484

^[1]

124,644

^[3]

Other long-term liabilities

1,082

465

Total liabilities

227,711

^[1]

233,957

^[3]

Liabilities, Other than Long-term Debt, Noncurrent

54,301

^[1]

56,843

^[3]

Commitments and contingencies (Note 12)

^[1]

^[3]

Stockholders' deficit:

Preferred stock, par value $0.01 per share, 10,000 shares authorized; no shares issued and outstanding

^[1]

^[3]

Common stock, par value $0.01 per share, 350,000 shares authorized; 114,185 and 136,513 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively

1,142

^[1]

1,365

^[3]

Additional paid-in capital

(100,419)

^[1]

(98,030)

^[3]

Treasury Stock, Value

2,103

Retained earnings

736,695

^[1]

828,547

^[3]

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest

637,434

729,779

Total liabilities and stockholders’ equity

865,145

^[1]

963,736

^[3]

Total PDL’s stockholders’ equity

$ 637,418

^[1]

$ 729,779

^[3]

[1]	unaudited
[2]	unaudited
[3]	Note 1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares
shares in Thousands

Sep. 30, 2019

^[1]

Dec. 31, 2018

^[2]

Preferred stock par value (in Dollars per Share)

$ 0.01

Preferred stock, shares authorized (in Shares)

10,000

Preferred stock, shares issued (in Shares)

Preferred stock, shares outstanding (in Shares)

Common stock par value (in Dollars per Share)

$ 0.01

Common stock, shares authorized (in Shares)

350,000

Common stock, shares issued (in Shares)

114,185

136,513

Common stock, shares outstanding (in Shares)

114,185

136,513

[1]	unaudited
[2]	Note 1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Exchange of debt

$ 86,053

Purchased call options cost

$ 0

Payments of Debt Issuance Costs

7,451

Purchased call options net payments

3,694

Payments to Acquire Interest in Subsidiaries and Affiliates

(60,000)

Payment for Contingent Consideration Liability, Financing Activities

1,071

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

(15,863)

(85,138)

Assets held for sale reclassified from other assets to intangibles

1,811

Payments to Acquire Intangible Assets

1,700

Gain (Loss) on Investments

3,476

Adjustments to reconcile net income to net cash provided by operating activities:

Amortization of convertible notes conversion option and debt issuance costs

5,776

5,745

Accretion Expense

Amortization of Intangible Assets

4,745

14,254

Amortization Of Right of Use Assets

662

Impairment of Intangible Assets, Finite-lived

152,330

Change in fair value of acquired royalty rights

4,277

(66,117)

Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount

(16,574)

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss)

(1,487)

(114)

Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability

(22,433)

Depreciation, Amortization and Accretion, Net

2,295

3,061

Gain (Loss) on Extinguishment of Debt

3,900

Gain (Loss) on Sale of Investments

(764)

Gain (Loss) on Disposition of Property Plant Equipment

Provision for Doubtful Accounts

(23)

Stock-based compensation expense

5,403

4,814

Deferred income taxes

(3,272)

(3,285)

Changes in assets and liabilities:

Receivables from licensees and other

8,815

15,752

Prepaid and other current assets

3,215

(4,557)

Accrued interest on notes receivable

(230)

Increase (Decrease) in Inventories

(2,787)

(3,471)

Other assets

358

(1,805)

Accounts payable

113

(10,774)

Accrued liabilities

(9,949)

(8,687)

Increase (Decrease) in Income Taxes Payable

(1,286)

Other long-term liabilities

493

1,280

Net cash used in operating activities

(13,299)

(11,359)

Cash flows from investing activities

Proceeds from Sale of Available-for-sale Securities, Equity

4,116

Payments for (Proceeds from) Productive Assets

58,290

57,049

Purchase of royalty rights

20,000

Proceeds from Collection of Notes Receivable

5,000

Payments to Acquire Property, Plant, and Equipment

504

4,641

Net cash provided by investing activities

1,086

36,524

Cash flows from financing activities

Repayments of Secured Debt

126,447

Payments for Repurchase of Common Stock

(75,891)

(25,000)

Net cash used in financing activities

(88,107)

(151,447)

Net decrease in cash and cash equivalents

(100,320)

(126,282)

Cash and cash equivalents at beginning of the period

^[1]

394,590

527,266

Cash and cash equivalents at end of period

^[3]

294,270

^[2]

400,984

Supplemental cash flow information

Cash (refunded) paid for income taxes

(2,685)

4,019

Interest Paid, Excluding Capitalized Interest, Operating Activities

$ 2,063

4,591

Assets held for sale reclassified from notes receivable to other assets

$ 0

[1]	Note 1
[2]	unaudited
[3]	unaudited

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Statement - USD ($)
$ in Thousands

Total

Common Stock [Member]

Treasury Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

AOCI Attributable to Parent [Member]

Noncontrolling Interest [Member]

Shares, Issued at Dec. 31, 2017

153,774,756

Stockholders' Equity Attributable to Parent at Dec. 31, 2017

$ 845,890

$ 1,538

$ 0

$ (102,443)

$ 945,614

$ 1,181

Other Noncontrolling Interests at Dec. 31, 2017

$ 0

Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures

37,500

Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition

$ 957

Stock Repurchased During Period, Shares

(1,000,000)

Treasury Stock, Retired, Par Value Method, Amount

$ (10)

Treasury Stock, Value, Acquired, Cost Method

1,188

Treasury Stock, Retired, Cost Method, Amount

(2,961)

Stock Repurchased and Retired During Period, Value

(4,159)

Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax

(1,181)

Comprehensive Income (Loss), Net of Tax, Attributable to Parent

421

Net Income (Loss) Attributable to Parent

$ 1,602

1,602

Shares, Issued at Mar. 31, 2018

152,812,256

Other Noncontrolling Interests at Mar. 31, 2018

$ 0

Stockholders' Equity Attributable to Parent at Mar. 31, 2018

$ 843,109

1,528

(1,188)

(101,486)

944,255

Shares, Issued at Dec. 31, 2017

153,774,756

Stockholders' Equity Attributable to Parent at Dec. 31, 2017

$ 845,890

1,538

(102,443)

945,614

1,181

Other Noncontrolling Interests at Dec. 31, 2017

2024 Note Equity impact

Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax

^[1]

(1,181)

Comprehensive Income (Loss), Net of Tax, Attributable to Parent

(86,319)

Net Income (Loss) Attributable to Parent

(85,138)

Net Income (Loss) Attributable to Noncontrolling Interest

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

(85,138)

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

$ (86,319)

Shares, Issued at Sep. 30, 2018

145,976,212

Other Noncontrolling Interests at Sep. 30, 2018

$ 0

Stockholders' Equity Attributable to Parent at Sep. 30, 2018

$ 739,387

1,460

(97,640)

835,567

Shares, Issued at Mar. 31, 2018

152,812,256

Stockholders' Equity Attributable to Parent at Mar. 31, 2018

$ 843,109

1,528

(1,188)

(101,486)

944,255

Other Noncontrolling Interests at Mar. 31, 2018

$ 0

Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures

324,591

Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures

$ (4)

(4)

(3)

Restricted Stock Award, Forfeitures, Dividends

Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition

$ 1,260

Stock Repurchased During Period, Shares

(7,165,415)

Treasury Stock, Retired, Par Value Method, Amount

$ (72)

Reduction in Treasury stock held

1,188

Treasury Stock, Retired, Cost Method, Amount

(20,565)

Stock Repurchased and Retired During Period, Value

(19,449)

Comprehensive Income (Loss), Net of Tax, Attributable to Parent

(112,296)

Net Income (Loss) Attributable to Parent

$ (112,296)

(112,296)

Shares, Issued at Jun. 30, 2018

145,971,432

Other Noncontrolling Interests at Jun. 30, 2018

$ 0

Stockholders' Equity Attributable to Parent at Jun. 30, 2018

$ 712,628

1,460

(100,229)

811,397

Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures

575,831

Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures

(6)

Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition

$ 2,595

Stock Repurchased During Period, Shares

(571,051)

Treasury Stock, Retired, Par Value Method, Amount

$ (6)

Treasury Stock, Retired, Cost Method, Amount

(1,386)

2024 Note Equity impact

Stock Repurchased and Retired During Period, Value

(1,392)

Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax

^[1]

Comprehensive Income (Loss), Net of Tax, Attributable to Parent

25,556

Net Income (Loss) Attributable to Parent

25,556

Net Income (Loss) Attributable to Noncontrolling Interest

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

25,556

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

$ 25,556

Shares, Issued at Sep. 30, 2018

145,976,212

Other Noncontrolling Interests at Sep. 30, 2018

$ 0

Stockholders' Equity Attributable to Parent at Sep. 30, 2018

$ 739,387

1,460

(97,640)

835,567

$ 0

Shares, Issued at Dec. 31, 2018

136,512,522

Stockholders' Equity Attributable to Parent at Dec. 31, 2018

$ 729,779

^[2]

1,365

(2,103)

(98,030)

828,547

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2018

729,779

Other Noncontrolling Interests at Dec. 31, 2018

$ 0

Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures

764,785

Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures

(8)

Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition

$ 1,169

Stock Repurchased During Period, Shares

(13,460,164)

Treasury Stock, Retired, Par Value Method, Amount

$ (135)

Reduction in Treasury stock held

613

Treasury Stock, Retired, Cost Method, Amount

(44,831)

Stock Repurchased and Retired During Period, Value

(44,353)

Noncontrolling Interest, Increase from Subsidiary Equity Issuance

572

Net Income (Loss) Attributable to Parent

6,680

Net Income (Loss) Attributable to Noncontrolling Interest

(63)

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

6,617

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

$ 6,617

Shares, Issued at Mar. 31, 2019

123,817,143

Other Noncontrolling Interests at Mar. 31, 2019

$ 509

Stockholders' Equity Attributable to Parent at Mar. 31, 2019

1,238

(1,490)

(96,869)

790,396

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2019

$ 693,784

Shares, Issued at Dec. 31, 2018

136,512,522

Stockholders' Equity Attributable to Parent at Dec. 31, 2018

$ 729,779

^[2]

1,365

(2,103)

(98,030)

828,547

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2018

729,779

Other Noncontrolling Interests at Dec. 31, 2018

2024 Note Equity impact

8,013

Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax

^[1]

Comprehensive Income (Loss), Net of Tax, Attributable to Parent

(15,523)

Net Income (Loss) Attributable to Parent

(15,523)

Net Income (Loss) Attributable to Noncontrolling Interest

(340)

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

(15,863)

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

$ (15,863)

Shares, Issued at Sep. 30, 2019

114,184,610

Other Noncontrolling Interests at Sep. 30, 2019

$ 16

Stockholders' Equity Attributable to Parent at Sep. 30, 2019

637,418

^[3]

1,142

(100,419)

736,695

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Sep. 30, 2019

$ 637,434

Shares, Issued at Mar. 31, 2019

123,817,143

Stockholders' Equity Attributable to Parent at Mar. 31, 2019

1,238

(1,490)

(96,869)

790,396

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2019

$ 693,784

Other Noncontrolling Interests at Mar. 31, 2019

$ 509

Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures

37,996

Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition

$ 2,175

Stock Repurchased During Period, Shares

(8,185,970)

Treasury Stock, Retired, Par Value Method, Amount

$ (81)

Reduction in Treasury stock held

944

Treasury Stock, Retired, Cost Method, Amount

(26,897)

Adjustments to Additional Paid in Capital, Other

$ 229

Noncontrolling Interest, Period Increase (Decrease)

(216)

Stock Repurchased and Retired During Period, Value

(26,034)

Noncontrolling Interest, Increase from Subsidiary Equity Issuance

Net Income (Loss) Attributable to Parent

(4,419)

Net Income (Loss) Attributable to Noncontrolling Interest

(95)

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

(4,514)

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

$ (4,514)

Shares, Issued at Jun. 30, 2019

115,669,169

Other Noncontrolling Interests at Jun. 30, 2019

$ 198

Stockholders' Equity Attributable to Parent at Jun. 30, 2019

1,157

(546)

(94,465)

759,080

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2019

$ 665,424

Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures

(18,061)

Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures

$ (8)

Restricted Stock Award, Forfeitures, Dividends

Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition

$ 2,059

Stock Repurchased During Period, Shares

(1,466,498)

Treasury Stock, Retired, Par Value Method, Amount

$ (15)

Reduction in Treasury stock held

546

Treasury Stock, Retired, Cost Method, Amount

(4,609)

2024 Note Equity impact

(8,013)

Stock Repurchased and Retired During Period, Value

4,078

Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax

^[1]

Comprehensive Income (Loss), Net of Tax, Attributable to Parent

(17,784)

Net Income (Loss) Attributable to Parent

(17,784)

Net Income (Loss) Attributable to Noncontrolling Interest

(182)

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

(17,966)

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest

$ (17,966)

Shares, Issued at Sep. 30, 2019

114,184,610

Other Noncontrolling Interests at Sep. 30, 2019

$ 16

Stockholders' Equity Attributable to Parent at Sep. 30, 2019

637,418

^[3]

$ 1,142

$ 0

$ (100,419)

$ 736,695

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Sep. 30, 2019

$ 637,434

[1]	Net of tax of
[2]	Note 1
[3]	unaudited

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of PDL Biopharma, Inc. and its subsidiaries (collectively, the “Company” or “PDL”) have been prepared in accordance with Generally Accepted Accounting Principles (United States) (“GAAP”) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments), that management of the Company believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year.

The accompanying unaudited Condensed Consolidated Financial Statements and related financial information should be read in conjunction with the Company’s audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2018, included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the Securities and Exchange Commission (“SEC”) on March 15, 2019. The Condensed Consolidated Balance Sheet at December 31, 2018, included herein, has been derived from the audited Consolidated Financial Statements at that date, but does not include all disclosures required by GAAP.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying Notes to the Condensed Consolidated Financial Statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include the valuation of royalty rights - at fair value, product revenue recognition and allowance for customer rebates and allowances, the valuation of notes receivable and inventory, the assessment of recoverability of intangible assets and their estimated useful lives, the valuation and recognition of stock-based compensation, the recognition and measurement of current and deferred income tax assets and liabilities, and the valuation of warrants to acquire shares of common stock. Actual results could differ from those estimates.

The Condensed Consolidated Financial Statements included herein include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Based on the nature of the Company’s existing investments and how they are managed, the Company structured its operations in four segments designated as Medical Devices, Strategic Positions, Pharmaceutical and Income Generating Assets. During the second quarter of 2019 the Company made an investment in Evofem Biosciences, Inc. (“Evofem”) (NASDAQ: EVFM) and added a new segment designated as Strategic Positions. This had no impact on its prior segment reporting structure.


•	The Company’s Medical Devices segment consists of revenue derived from the LENSAR^® Laser System sales made by the Company’s subsidiary, LENSAR, Inc. (“LENSAR”), which may include equipment, Patient Interface Devices (“PIDs” or “consumables”), procedure licenses, training, installation, warranty and maintenance agreements.

•

The Company’s Strategic Positions segment consists of an investment in Evofem. The Company’s investment includes shares of common stock and warrants to purchase additional shares of common stock. Evofem is a publicly-traded clinical-stage biopharmaceutical company committed to developing and commercializing innovative products to address unmet needs in women's sexual and reproductive health. Evofem is leveraging its proprietary Multipurpose Vaginal pH Regulator (MVP-R™) platform to develop Amphora® (L-lactic acid, citric acid and potassium bitartrate) for hormone-free birth control.

•

The Company’s Pharmaceutical segment consists of revenue derived from branded prescription medicine products sold under the name Tekturna^® and Tekturna HCT^® in the United States and Rasilez^® and Rasilez HCT^® in the rest of the world and an authorized generic form of Tekturna sold in the United States (collectively, the “Noden Products”). The branded prescription Noden Products were acquired from Novartis in July 2016 (the “Noden Transaction”) by the Company’s wholly-owned subsidiary, Noden Pharma DAC (“Noden DAC”). The Company, through its wholly-owned subsidiary, Noden Pharma USA Inc. (“Noden USA”) launched its authorized generic form of Tekturna in the United States in March 2019.


•	The Company’s Income Generating Assets segment consists of revenue derived from (i) royalty rights - at fair value, (ii) notes and other long-term receivables, (iii) equity investments and (iv) royalties from issued patents in the United States and elsewhere covering the humanization of antibodies (“Queen et al. patents”).

Significant Accounting Policies

The Company’s significant accounting policies are described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Summarized below and in Note 2, Investment in Evofem Biosciences, Inc., are the accounting pronouncements and policies adopted subsequent to December 31, 2018.

Adopted Accounting Pronouncements

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases, that supersedes Accounting Standards Codification (“ASC”) 840, Leases. Subsequently, the FASB issued several updates to ASU No. 2016-02, codified in ASC Topic 842 (“ASC 842”). The Company adopted ASC 842, Leases, on January 1, 2019 using the modified retrospective method for all leases not substantially completed as of the date of adoption. The reported results for the three and nine month periods ended September 30, 2019 reflect the application of ASC 842 guidance while the reported results for the three and nine month periods ended September 30, 2018 were prepared under the guidance of ASC 840, which is also referred to herein as “legacy GAAP” or the “previous guidance”. The cumulative impact of the adoption of ASC 842 was not material, therefore, the Company did not record any adjustments to retained earnings. As a result of adopting ASC 842, the Company recorded operating lease right-of-use (“ROU”) assets of $2.1 million and operating lease liabilities of $2.1 million, primarily related to corporate office leases, based on the present value of the future lease payments on the date of adoption. Changes to lessor accounting focused on conforming with certain changes made to lessee accounting and the recently adopted revenue recognition guidance. The adoption of ASC 842 did not materially change how the Company accounts for lessor arrangements.

Policy Elections and Practical Expedients Taken

For leases that commenced before the effective date of ASC 842, the Company elected the practical expedients to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases.

The Company adopted a policy of expensing short-term leases, defined as 12 months or less, as incurred.

The Company has a policy to exclude from the consideration in a lessor contract all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific lease revenue-producing transaction and collected by the Company from a lessee.

General

The Company determines if an arrangement is a lease or contains an embedded lease at inception. The Company has lease arrangements with lease and non-lease components, which are accounted for separately.

Lessee arrangements

Lessee operating leases are included in Other assets, Accrued liabilities, and Other long-term liabilities in the Company’s Condensed Consolidated Balance Sheet. The Company does not have lessee financing leases.

Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses the implicit rate when readily determinable at lease inception. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s remaining lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis as operating expense in the Condensed Consolidated Statements of Operations over the lease term.

Lessor arrangements

The Company leases medical device equipment to customers in both operating lease and sales-type lease arrangements generated from its Medical Devices segment.

For sales-type leases, the Company derecognizes the carrying amount of the underlying asset and capitalizes the net investment in the lease, which consists of the total minimum lease payments receivable from the lessee, at lease inception. The Company does not estimate an unguaranteed residual value of the equipment at lease termination because the equipment transfers to the lessee upon completion of the lease. Selling profit or loss is recognized at lease inception. Initial direct costs are recognized as an expense, unless there is no selling profit or loss. If there is no selling profit or loss, initial direct costs are deferred and recognized over the lease term. The Company recognizes interest income from the lease receivable over the lease term in Interest and other income, net in the Condensed Consolidated Statements of Operations.

For operating leases, rental income is recognized on a straight-line basis over the lease term. The cost of customer-leased equipment is recorded within Property and equipment, net in the accompanying Condensed Consolidated Balance Sheets and depreciated over the equipment’s estimated useful life. Depreciation expense associated with the leased equipment under operating lease arrangements is reflected in Cost of product revenue in the accompanying Condensed Consolidated Statements of Operations. Some of the Company’s operating leases include a purchase option for the customer to purchase the leased asset at the end of the lease arrangement. The Company manages its risk on its investment in the equipment through pricing and the term of the leases. Lessees do not provide residual value guarantees on leased equipment. Equipment returned to the Company may be leased or sold to other customers. Initial direct costs are deferred and recognized over the lease term.

Leases are generally not cancellable until after an initial term and may or may not require the customer to purchase a minimum number of procedures and consumables throughout the contract term.

For lease arrangements with lease and non-lease components where the Company is the lessor, the Company allocates the contract’s transaction price to the lease and non-lease components on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. Allocation of the transaction price is determined at the inception of the lease arrangement. The Company’s leases primarily consist of leases with fixed lease payments. For those leases with variable lease payments, the variable lease payment is typically based upon use of the leased equipment or the purchase of procedure licenses and consumables used with the leased equipment. Non-lease components are accounted for under ASC 606, Revenue from Contracts with Customers. For additional information regarding ASC 606, see Note 15, Revenue from Contracts with Customers.

Intangibles-Goodwill and Other

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, to simplify the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under the amendments, an entity will recognize an impairment charge for the amount by which the carrying value exceeds the fair value. The amendments are effective for fiscal years and interim periods within those years beginning after December 15, 2019 on a prospective basis and early adoption is permitted. The Company adopted the requirements of ASU No. 2017-04 on January 1, 2019. The adoption did not have an effect on the Company’s Consolidated Financial Statements on the adoption date.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The new guidance amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses. ASU No. 2016-13 has an effective date of the fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement. The new guidance modifies disclosure requirements related to fair value measurement. The amendments in ASU No. 2018-13 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of ASU No. 2018-13 while delaying adoption of the additional disclosures until their effective date. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statement disclosures.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software. The new guidance reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). For public companies, the amendments in ASU No. 2018-15 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Implementation should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements.

Net Income per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Net Income per Share

. Net (Loss) Income per Share



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
Net (Loss) Income per Basic and Diluted Share	2019			2018		2019			2018
(in thousands, except per share amounts)
Numerator
(Loss) income attributable to PDL’s shareholders used to compute net (loss) income per basic and diluted share	$	(17,784	)	$	25,556	$	(15,523	)	$	(85,138	)

Denominator
Total weighted-average shares used to compute net (loss) income attributable to PDL’s shareholders, per basic share	112,986			143,171		119,966			147,159
Restricted stock	—			1,053		—			—
Shares used to compute net (loss) income attributable to PDL’s shareholders, per diluted share	112,986			144,224		119,966			147,159

Net (loss) income attributable to PDL’s shareholders per share - basic	$	(0.16	)	$	0.18	$	(0.13	)	$	(0.58	)
Net (loss) income attributable to PDL’s shareholders per share - diluted	$	(0.16	)	$	0.18	$	(0.13	)	$	(0.58	)

The Company computes net (loss) income per diluted share using the sum of the weighted-average number of common and common equivalent shares outstanding. Common equivalent shares used in the computation of net (loss) income per diluted share include shares that may be issued pursuant to outstanding stock options and restricted stock awards in each case, on a weighted-average basis for the period they were outstanding, including, if applicable, the underlying shares using the treasury stock method.

The February 2018 Notes that were repaid on February 1, 2018, the December 2021 Notes and the December 2024 Notes allow, or previously allowed, for the settlement entirely or partially in cash, and are accounted for under the treasury stock method. Under the treasury stock method, the shares issuable upon conversion of the notes are not included in the calculation of diluted earnings per share except to the extent that the conversion value of the notes exceeds their principal amount. The effect of which, for diluted earnings per share purposes, is that only the number of shares of common stock that would be necessary to settle such excess, if we elected to settle such excess in shares, are included in the computation.

December 2021 Notes and December 2024 Notes Capped Call Potential Dilution

In November 2016, the Company issued $150.0 million in aggregate principal of the December 2021 Notes. The Company entered into an Exchange Transaction in September 2019 through which it exchanged a portion of the December 2021 Notes for the December 2024 Notes with a later maturity of December 2024. Both the notes that mature in December 2021 and those that mature in December 2024 provide in certain situations for the conversion of the outstanding principal amount into shares of the Company’s common stock at a predefined conversion rate. In conjunction with the issuance of the December 2021 Notes and the issuance of the December 2024 Notes pursuant to the Exchange Transaction, the Company entered into capped call transactions with a hedge counterparty. The capped call transactions are expected generally to reduce the potential dilution, and/or offset, to an extent, the cash payments the Company may choose to make in excess of the principal amount, upon conversion of the December 2021 Notes or the December 2024 Notes. The Company has excluded the capped call transaction from the net (loss) income per diluted share computation as such securities would have an anti-dilutive effect and those securities should be considered separately rather than in the aggregate in determining whether their effect on net (loss) income per diluted share would be dilutive or anti-dilutive. For additional information regarding the conversion rates and the capped call transaction related to the Company’s December 2021 Notes and December 2024 Notes, see Note 10, Convertible Senior Notes.

Anti-Dilutive Effect of Restricted Stock Awards and Stock Options

For the three months ended September 30, 2019 and 2018, the Company excluded approximately 1.0 million and 1.3 million shares underlying restricted stock awards, respectively, and for the nine months ended September 30, 2019 and 2018, the Company excluded approximately 0.8 million and 2.3 million shares underlying restricted stock awards, respectively, in each case calculated on a weighted-average basis, from its net (loss) income per diluted share calculations because their effect was anti-dilutive.

For the three months ended September 30, 2019 and 2018, the Company excluded approximately 12.6 million and 7.6 million shares underlying outstanding stock options, respectively, and for the nine months ended September 30, 2019 and 2018, the Company excluded approximately 10.7 million and 7.6 million shares underlying outstanding stock options, respectively, in each case calculated on a weighted-average basis, from its net (loss) income per diluted share calculations because their effect was anti-dilutive.

Fair Value Measurements

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

The fair value of the Company’s financial instruments are estimates of the amounts that would be received if the Company were to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The assets and liabilities are categorized and disclosed in one of the following three categories:

Level 1 – based on quoted market prices in active markets for identical assets and liabilities;

Level 2 – based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3 – based on unobservable inputs using management’s best estimate and assumptions when inputs are unavailable.

Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following table presents the fair value of the Company’s financial instruments measured at fair value on a recurring basis by level within the valuation hierarchy:



	September 30, 2019								December 31, 2018
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

Financial assets:
Money market funds	$	230,231	$	—	$	—	$	230,231	$	226,719	$	—	$	—	$	226,719
Corporate securities⁽¹⁾	67,200		—		—		67,200		—		—		—		—
Warrants⁽²⁾	—		10,923		—		10,923		—		62		—		62
Royalty rights - at fair value	—		—		313,943		313,943		—		—		376,510		376,510
Total	$	297,431	$	10,923	$	313,943	$	622,297	$	226,719	$	62	$	376,510	$	603,291

Financial liabilities:
Contingent consideration, current⁽³⁾	$	—	$	—	$	—	$	—	$	—	$	—	$	1,071	$	1,071
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	1,071	$	1,071

___________________


⁽¹⁾	Corporate securities are classified as “Investment in equity affiliate” on the Condensed Consolidated Balance Sheet.


⁽²⁾	Warrants are included in “Other assets” on the Condensed Consolidated Balance Sheets.


⁽³⁾	Contingent consideration, current is classified as “Accrued liabilities” on the Condensed Consolidated Balance Sheet.

There have been no transfers between levels during the periods presented in the table above. The Company recognizes transfers between levels on the date of the event or change in circumstances that caused the transfer.

Money Market Funds - The fair values of cash equivalents approximate their carrying values due to the short-term nature of such financial instruments.

Corporate Securities - Corporate securities consists of common stock shares of Evofem, a clinical-stage biopharmaceutical company listed on Nasdaq. For additional information on the Evofem investment, see Note 2, Investment in Evofem.

Warrants - Warrants consist of rights to purchase shares of common stock in Evofem and CareView Communications, Inc. (“CareView”), see Note 2, Investment in Evofem, and Note 6, Notes and Other Long-Term Receivables. The fair value of the warrants is estimated using recently quoted market prices of the underlying equity security and the Black-Scholes option pricing model.

Royalty Rights - At Fair Value

Assertio (Depomed) Royalty Agreement

On October 18, 2013, the Company entered into the Royalty Purchase and Sale Agreement (the “Assertio Royalty Agreement”) with Assertio Therapeutics, Inc. (formerly known as Depomed, Inc.), and Depo DR Sub, LLC (together, “Assertio”), whereby the Company acquired the rights to receive royalties and milestones payable on sales of five Type 2 diabetes products licensed by Assertio in exchange for a $240.5 million cash payment. Total consideration was $241.3 million, which was comprised of the $240.5 million cash payment to Assertio and $0.8 million in transaction costs.

The rights acquired include Assertio’s royalty and milestone payments accruing from and after October 1, 2013: (a) from Santarus, Inc. (“Santarus”), which was subsequently acquired by Salix Pharmaceuticals, Inc. (“Salix”), which itself was acquired by Valeant Pharmaceuticals International, Inc. (“Valeant”), which, in July 2018, changed its name to Bausch Health Companies Inc. (“Bausch Health”) with respect to sales of Glumetza (metformin HCL extended-release tablets) in the United States; (b) from Merck & Co., Inc. with respect to sales of Janumet^® XR (sitagliptin and metformin HCL extended-release tablets); (c) from Janssen Pharmaceutica N.V. with respect to potential future development milestones and sales of its approved fixed-dose combination of Invokana^® (canagliflozin, a sodium glucose cotransporter 2 (SGLT2) inhibitor) and extended-release metformin tablets, marketed as Invokamet XR^®; (d) from Boehringer Ingelheim and Eli Lilly and Company with respect to potential future development milestones and sales of the investigational fixed-dose combinations of drugs and extended-release metformin subject to Assertio’s license agreement with Boehringer Ingelheim, including its approved products, Jentadueto XR^® and Synjardy XR^®; and (e) from LG Life Sciences and Bausch Health for sales of extended-release metformin tablets in Korea and Canada, respectively.

In February 2013, a generic equivalent to Glumetza was approved by the U.S. Food and Drug Administration (“FDA”) and in August 2016, two additional generic equivalents to Glumetza were approved by the FDA. In February 2016, Lupin Pharmaceuticals, Inc., in August 2017, Teva Pharmaceutical Industries Ltd., and in July 2018, Sun Pharmaceutical, Inc. (“Sun”) each launched a generic equivalent approved product. In May 2017, the Company received notification that a subsidiary of Valeant had launched an authorized generic equivalent product in February 2017, and the Company received royalties on such authorized generic equivalent product under the same terms as the branded Glumetza product, retroactive to February 2017. The Company continues to monitor whether the generic competition further affects sales of Glumetza and thus royalties on such sales paid to the Company, and the impact of the launched authorized generic equivalent. Due to the uncertainty around Bausch Health’s marketing and pricing strategy, as well as Sun’s recently launched generic product and limited historical demand data after generic market entrance, the Company may need to further evaluate future cash flows in the event of more rapid reduction or increase in market share of Glumetza and its authorized generic equivalent product and/or a further erosion in net pricing.

The Company determined that its royalty purchase interest in Depo DR Sub, LLC represented a variable interest in a variable interest entity. However, the Company did not have the power to direct the activities of Depo DR Sub, LLC that most significantly impact Depo DR Sub, LLC’s economic performance and was not the primary beneficiary of Depo DR Sub, LLC; therefore, Depo DR Sub, LLC was not subject to consolidation by the Company.

On August 2, 2018, PDL Investment Holding, LLC (“PDLIH”), a wholly-owned subsidiary of the Company and assignee from the Company under the Assertio Royalty Agreement, entered into an amendment to the Assertio Royalty Agreement with Assertio. Pursuant to the amendment, PDLIH purchased all of Assertio’s remaining interests in royalty and milestone payments payable on sales of Type 2 diabetes products licensed by Assertio for $20.0 million. Prior to the amendment, the Assertio Royalty Agreement provided that the Company would have received all royalty and milestone payments due under license agreements between Assertio and its licensees until the Company received payments equal to two times the cash payment it made to Assertio, or approximately $481.0 million, after which all net payments received by Assertio would have been shared equally between the Company and Assertio. Following the amendment, the Assertio Royalty Agreement provides that the Company will receive all royalty and milestone payments due under the license agreements between Assertio and its licensees. The Company has elected to continue to follow the fair value option and carry the financial asset at fair value.

The Assertio Royalty Agreement terminates on the third anniversary following the date upon which the later of the following occurs: (a) October 25, 2021, or (b) at such time as no royalty payments remain payable under any license agreement and each of the license agreements has expired by its terms.

As of December 31, 2018, in conjunction with the amendment described above, the Company was provided the power to direct the activities of Depo DR Sub, LLC and is the primary beneficiary of Depo DR Sub, LLC; therefore, Depo DR Sub, LLC is subject to consolidation by the Company. As of September 30, 2019, Depo DR Sub, LLC did not have any assets or liabilities of value for consolidation with the Company.

In October 2018, PDL submitted notice of its intent to exercise its audit right under the Assertio Royalty Agreement with respect to Glumetza royalties for the period beginning January 1, 2016 and ending December 31, 2018. No material adjustments were identified in connection with this audit.

The financial asset acquired represents a single unit of accounting. This financial asset is classified as a Level 3 asset within the fair value hierarchy, as the Company’s valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future commercialization for products not yet approved by regulatory agencies outside of the United States. The estimated fair value of the financial asset acquired was determined by using a discounted cash flow analysis related to the expected future cash flows to be generated by each licensed product. The discounted cash flows are based upon expected royalties from sales of licensed products over approximately an eight-year period. The estimated fair value of the asset is subject to variation should those cash flows vary significantly from the Company’s estimates. The Company periodically assesses the expected future cash flows and to the extent such payments are greater or less than its initial estimates, or the timing of such payments is materially different than the original estimates, the Company will adjust the estimated fair value of the asset. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase or decrease by $6.6 million, respectively. Significant judgment is required in selecting appropriate discount rates. The discount rates utilized range from 10% to 24%. Should these discount rates increase or decrease by 2.5%, the fair value of the asset could decrease by $21.9 million or increase by $25.8 million, respectively.

As of September 30, 2019, the Company’s discounted cash flow analysis reflects its expectations as to the amount and timing of future cash flows up to the valuation date for the above described royalty streams.

As of September 30, 2019, the fair value of the asset acquired as reported in the Company’s Condensed Consolidated Balance Sheet was $265.0 million and the maximum loss exposure was $265.0 million.

Viscogliosi Brothers Royalty Agreement

On June 26, 2014, the Company entered into a Royalty Purchase and Sale Agreement (the “VB Royalty Agreement”) with Viscogliosi Brothers, LLC (“VB”), whereby VB conveyed to the Company the right to receive royalties payable on sales of a spinal implant that has received pre-market approval from the FDA held by VB and commercialized by Paradigm Spine, LLC (“Paradigm Spine”), in exchange for a $15.5 million cash payment, less fees. Paradigm Spine was acquired in March 2019 by RTI Surgical Holdings, Inc.

The royalty rights acquired include royalties accruing from and after April 1, 2014. Under the terms of the VB Royalty Agreement, the Company receives all royalty payments due to VB pursuant to certain technology transfer agreements between VB and Paradigm Spine until the Company has received payments equal to 2.3 times the cash payment made to VB, after which all rights to receive royalties will be returned to VB. VB’s ability to repurchase the royalty right for a specified amount expired on June 26, 2018.

The estimated fair value of the royalty rights at September 30, 2019, was determined by using a discounted cash flow analysis related to the expected future cash flows to be received. This asset is classified as a Level 3 asset, as the Company’s valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the licensed product. The discounted cash flow was based upon expected royalties from sales of licensed product over approximately a nine-year period. The estimated fair value of the asset is subject to variation should those cash flows vary significantly from the Company’s estimates. The Company periodically assesses the expected future cash flows and to the extent such payments are greater or less than its initial estimates, or the timing of such payments is materially different than the original estimates, the Company will adjust the estimated fair value of the asset. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase or decrease by $0.4 million, respectively. Significant judgment is required in selecting the appropriate discount rate. The discount rate utilized was 15.0%. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.3 million or increase by $1.5 million, respectively.

As of September 30, 2019, the Company’s discounted cash flow analysis reflects its expectations as to the amount and timing of future cash flows up to the valuation date.

As of September 30, 2019, the fair value of the asset acquired as reported in the Company’s Condensed Consolidated Balance Sheet was $14.5 million and the maximum loss exposure was $14.5 million.

University of Michigan Royalty Agreement

On November 6, 2014, the Company acquired a portion of all royalty payments of the Regents of the University of Michigan’s (“U-M”) worldwide royalty interest in Cerdelga^® (eliglustat) for $65.6 million pursuant to the Royalty Purchase and Sale Agreement with U-M (the “U-M Royalty Agreement”). Under the terms of the U-M Royalty Agreement, the Company receives 75% of all royalty payments due under U-M’s license agreement with Genzyme Corporation, a Sanofi company (“Genzyme”) until expiration of the licensed patents, excluding any patent term extension. Cerdelga, an oral therapy for adult patients with Gaucher disease type 1, was developed by Genzyme. Cerdelga was approved in the United States in August 2014, in the European Union in January 2015, and in Japan in March 2015. In addition, marketing applications for Cerdelga are under review by other regulatory authorities. While marketing applications have been approved in the United States, the European Union and Japan, national pricing and reimbursement decisions are delayed in some countries.

The estimated fair value of the royalty right at September 30, 2019 was determined by using a discounted cash flow analysis related to the expected future cash flows to be received. This asset is classified as a Level 3 asset, as the Company’s valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the licensed product. The discounted cash flow was based upon expected royalties from sales of licensed product over approximately a three-year period. Based on the results of the Company’s analysis, which considered input from a third-party expert and the variance between the Company’s forecast model and actual results, the Company wrote down the fair value of the royalty asset by $3.1 million in the third quarter ended September 30, 2019. The estimated fair value of the asset is subject to variation should those cash flows vary significantly from the Company’s estimates. An evaluation of those estimates, discount rate utilized and general market conditions affecting fair market value is performed in each reporting period. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase or decrease by $0.5 million, respectively. Significant judgment is required in selecting the appropriate discount rate. The discount rate utilized was approximately 12.8%. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease or increase by $0.7 million, respectively.

As of September 30, 2019, the Company’s discounted cash flow analysis reflects its expectations as to the amount and timing of future cash flows.

As of September 30, 2019, the fair value of the asset acquired as reported in the Company’s Condensed Consolidated Balance Sheet was $21.2 million and the maximum loss exposure was $21.2 million.

AcelRx Royalty Agreement

On September 18, 2015, the Company entered into a royalty interest assignment agreement (the “AcelRx Royalty Agreement”) with ARPI LLC, a wholly-owned subsidiary of AcelRx Pharmaceuticals, Inc. (“AcelRx”), whereby the Company acquired the rights to receive a portion of the royalties and certain milestone payments on sales of Zalviso^® (sufentanil sublingual tablet system) in the European Union, Switzerland and Australia by AcelRx’s commercial partner, Grünenthal, in exchange for a $65.0 million cash payment. Under the terms of the AcelRx Royalty Agreement, the Company receives 75% of all royalty payments and 80% of the first four commercial milestone payments due under AcelRx’s license agreement with Grünenthal until the earlier to occur of (i) receipt by the Company of payments equal to three times the cash payments made to AcelRx and (ii) the expiration of the licensed patents. Zalviso received marketing approval by the European Commission in September 2015. Grünenthal launched Zalviso in the second quarter of 2016 and the Company started to receive royalties in the third quarter of 2016.

As of September 30, 2019, and December 31, 2018, the Company determined that its royalty rights under the AcelRx Royalty Agreement represented a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities of ARPI LLC that most significantly impact ARPI LLC’s economic performance and is not the primary beneficiary of ARPI LLC; therefore, ARPI LLC is not subject to consolidation by the Company.

Due to the slower than expected adoption of the product since its initial launch relative to the Company’s estimates and the increased variance noted between the Company’s forecast model and actual results in the three months ended June 30, 2019, the Company utilized a third-party expert in the second quarter of 2019 to reassess the market and expectations for the Zalviso product. Key findings from the third-party study included: the post-surgical PCA (Patient-Controlled Analgesia) market being smaller than previously forecasted; the higher price of the product relative to alternative therapies, the product not being used as a replacement for systemic opioids and the design of the delivery device, which is pre-filled for up to three days of treatment, which restricts its use for shorter recovery time procedures. Based on this analysis and the impact to the projected sales-based royalties and milestones, the Company wrote down the fair value of the royalty asset by $60.0 million in the second quarter of 2019.

The estimated fair value of the royalty right at September 30, 2019 was determined by using a discounted cash flow analysis related to the expected future cash flows to be received. This asset is classified as a Level 3 asset, as the Company’s valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the licensed product. The discounted cash flow was based upon expected royalties from sales of licensed product over approximately a thirteen-year period. The estimated fair value of the asset is subject to variation should those cash flows vary significantly from the Company’s estimates. An evaluation of those estimates, discount rate utilized and general market conditions affecting fair market valuation is performed for each reporting period. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase or decrease by $0.3 million, respectively. Significant judgment is required in selecting the appropriate discount rate. The discount rate utilized was approximately 13.4%. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease by $1.2 million or increase by $1.5 million, respectively.

As of September 30, 2019, the Company’s discounted cash flow analysis reflects its expectations as to the amount and timing of future cash flows up to the valuation date.

As of September 30, 2019, the fair value of the asset acquired as reported in the Company’s Condensed Consolidated Balance Sheet was $12.7 million and the maximum loss exposure was $12.7 million.

Kybella Royalty Agreement

On July 8, 2016, the Company entered into a royalty purchase and sales agreement with an individual, whereby the Company acquired that individual’s rights to receive certain royalties on sales of KYBELLA^® by Allergan plc in exchange for a $9.5 million cash payment and up to $1.0 million in future milestone payments based upon product sales targets. The Company started to receive royalty payments during the third quarter of 2016.

The estimated fair value of the royalty right at September 30, 2019, was determined by using a discounted cash flow analysis related to the expected future cash flows to be received. This asset is classified as a Level 3 asset, as the Company’s valuation utilized significant unobservable inputs, including estimates as to the probability and timing of future sales of the licensed product. The discounted cash flow was based upon expected royalties from sales of a licensed product over approximately a six-year period. The estimated fair value of the asset is subject to variation should those cash flows vary significantly from the Company’s estimates. An evaluation of those estimates, discount rate utilized and general market conditions affecting fair market value is performed in each reporting period. A third-party expert is engaged to assist management with the development of its estimate of the expected future cash flows, when deemed necessary. Should the expected royalties increase or decrease by 2.5%, the fair value of the asset could increase or decrease by less than $0.1 million, respectively. Significant judgment is required in selecting the appropriate discount rate. The discount rate utilized was approximately 14.4%. Should this discount rate increase or decrease by 2.5%, the fair value of this asset could decrease or increase by less than $0.1 million, respectively.

As of September 30, 2019, the Company’s discounted cash flow analysis reflects its expectations as to the amount and timing of future cash flows up to the valuation date.

As of September 30, 2019, the fair value of the asset acquired as reported in the Company’s Condensed Consolidated Balance Sheet was $0.6 million and the maximum loss exposure was $0.6 million.

The following tables summarize the changes in Level 3 Royalty Right Assets and the gains and losses included in earnings for the nine months ended September 30, 2019:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Rights Assets

(in thousands)			Royalty Rights - At Fair Value
Fair value as of December 31, 2018						$	376,510

	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value	$	(4,277	)
		Proceeds from royalty rights - at fair value	$	(58,290	)
		Total net change in fair value for the period				(62,567		)

Fair value as of September 30, 2019						$	313,943



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Rights Assets

	Fair Value as of		Royalty Rights -			Fair Value as of
(in thousands)	December 31, 2018		Change in Fair Value			September 30, 2019

Assertio (Depomed)	$	264,371	$	599		$	264,970
VB	14,108		354			14,462
U-M	25,595		(4,379		)	21,216
AcelRx	70,380		(57,650		)	12,730
KYBELLA	2,056		(1,491		)	565
	$	376,510	$	(62,567	)	$	313,943

The following table summarizes the changes in Level 3 Liabilities and the gains and losses included in earnings for the nine months ended September 30, 2019:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Liabilities

(in thousands)		Contingent Consideration
Fair value as of December 31, 2018		$	(1,071	)

	Financial instruments purchased	—
	Settlement of financial instrument⁽¹⁾	1,071

Fair value as of September 30, 2019		$	—

______________


⁽¹⁾	Represents the final conversion consideration and earn out liability for the LENSAR acquisition of assets from Precision Eye Services.

Gains and losses from changes in Level 3 assets included in earnings for each period are presented in “Royalty rights - change in fair value” and gains and losses from changes in Level 3 liabilities included in earnings for each period are presented in “Change in fair value of anniversary payment and contingent consideration” as follows:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(in thousands)	2019		2018			2019			2018

Total change in fair value for the period included in earnings for royalty right assets held at the end of the reporting period	$	23,865	$	42,184		$	(4,277	)	$	66,117

Total change in fair value for the period included in earnings for liabilities held at the end of the reporting period	$	—	$	(302	)	$	—		$	22,433

Assets/Liabilities Measured and Recorded at Fair Value on a Nonrecurring Basis

The Company remeasures the fair value of certain assets and liabilities upon the occurrence of certain events. Such assets consist of long-lived assets, including property and equipment and intangible assets and the shares of Alphaeon Class A common stock, received in connection with loans made to LENSAR by the Company prior to its acquisition of LENSAR. During the three months ended June 30, 2018, the Company recorded an impairment charge of $152.3 million for the Noden intangible assets related to the increased probability of a generic form of aliskiren being launched in the United States. As a result of this impairment charge, which was based on the estimated fair value of the assets, the remaining carrying value of these intangible assets was determined to be $40.1 million. The fair value calculation included level 3 inputs. The Company’s carrying value of the 1.7 million shares of Alphaeon common stock as of both September 30, 2019 and December 31, 2018 is $6.6 million based on an estimated per share value of $3.84, which was established by a valuation performed when the shares were acquired. The value of the Company’s investment in Alphaeon is not readily determinable as Alphaeon’s shares are not publicly traded. The Company evaluates the fair value of this investment by performing a qualitative assessment each reporting period. If the results of this qualitative assessment indicate that the fair value is less than the carrying value, the investment is written down to its fair value. There have been no such write downs since the Company acquired these shares. This investment is included in Other long-term assets. For additional information on the Alphaeon investment, see Note 6, Notes and Other Long-Term Receivables.

Assets/Liabilities Not Subject to Fair Value Recognition

The following tables present the fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy:



	September 30, 2019						December 31, 2018
(in thousands)	Carrying Value		Fair Value Level 2		Fair Value Level 3		Carrying Value		Fair Value Level 2		Fair Value Level 3

Assets:
Wellstat Diagnostics note receivable	$	50,191	$	—	$	52,690	$	50,191	$	—	$	57,322
Hyperion note receivable	1,200		—		1,200		1,200		—		1,200
CareView note receivable	11,458		—		11,458		11,458		—		11,458
Total	$	62,849	$	—	$	65,348	$	62,849	$	—	$	69,980

Liabilities:
December 2021 Notes	$	55,652	$	61,984	$	—	$	124,644	$	151,356	$	—
December 2024 Notes	76,832		81,034		—		—		—		—
Total	$	132,484	$	143,018	$	—	$	124,644	$	151,356	$	—

During the year ended December 31, 2018 the Company recorded an impairment loss of $8.2 million for the note receivable with CareView Communications, Inc. (“CareView”). There were no impairment losses on notes receivable in the three and nine month periods ended September 30, 2019.

As of September 30, 2019 and December 31, 2018, the estimated fair value of the CareView note receivable was determined using discounted cash flow models, incorporating expected principal and interest payments and also considered the recoverability of the note receivable balance utilizing third-party revenue multiples for small cap healthcare technology companies. As of September 30, 2019 and December 31, 2018, the estimated fair value of the Wellstat Diagnostics and Hyperion Catalysis International, Inc. (“Hyperion”) notes receivable were determined by using an asset approach and discounted cash flow model related to the underlying collateral and adjusted to consider estimated costs to sell the assets.

The Company determined its notes receivable assets are Level 3 assets as the Company’s valuations utilized significant unobservable inputs, including estimates of future revenues, discount rates, expectations about settlement, terminal values, required yield and the value of underlying collateral. The Company engages third-party valuation experts when deemed necessary to assist in evaluating its investments and the related inputs needed to estimate the fair value of certain investments.

The CareView note receivable is secured by substantially all assets of, and equity interests in CareView. The Wellstat Diagnostics note receivable is secured by substantially all assets of Wellstat Diagnostics and is supported by a guaranty from the Wellstat Diagnostics Guarantors (as defined in Note 6, Notes and Other Long-Term Receivables).

On September 30, 2019, the carrying value of one of the Company’s notes receivable assets differed from its estimated fair value. This is the result of inputs used in estimating the fair value of the collateral, including appraisals, projected cash flows of collateral assets and discount rates used when performing a discounted cash flow analysis.

The fair values of the Company’s convertible senior notes were determined using quoted market pricing.

The following table represents significant unobservable inputs used in determining the estimated fair value of impaired notes receivable investments:



Asset	Valuation Technique	Unobservable Input	September 30, 2019	December 31, 2018

Wellstat Diagnostics
Wellstat Guarantors intellectual property	Income Approach
		Discount rate	12%	12%
		Royalty amount	$21 million	$21 million
Settlement Amount	Income Approach
		Discount rate	15%	15%
		Settlement amount	$28 million	$34 million

Real Estate Property	Market Approach
		Annual appreciation rate	4%	4%
		Estimated realtor fee	6%	6%
		Estimated disposal date	3/31/2020	9/30/2019

CareView
Note receivable cash flows	Income Approach
		Discount rate	30%	30%

- 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

Cash Equivalents and Investments

9 Months Ended

Sep. 30, 2019

Cash and Cash Equivalents [Abstract]

Cash Equivalents and Investments

3. Cash and Cash Equivalents

As of September 30, 2019 and December 31, 2018, the Company had invested its excess cash balances primarily in money market funds. The fair values of cash equivalents approximate their carrying values due to the short-term nature of such financial instruments.

The following table summarizes the Company’s cash and cash equivalents by significant investment category as of September 30, 2019 and December 31, 2018:



(in thousands)	September 30, 2019		December 31, 2018

Cash	$	64,039	$	167,871
Money market funds	230,231		226,719
Total	$	294,270	$	394,590

The Company recognized zero and $0.8 million of gains on sales of available-for-sale securities in the three and nine months ended September 30, 2018, respectively. As of September 30, 2019 and December 31, 2018 the Company had no available-for-sale securities.

Notes Receivable and Other Long-term Receivables	9 Months Ended
Notes Receivable and Other Long-term Receivables	Sep. 30, 2019
Receivables [Abstract]
Notes and Other Long-term Receivables	. Notes and Other Long-Term Receivables Notes and other long-term receivables included the following significant agreements: Wellstat Diagnostics Note Receivable and Credit Agreement and Related Litigation On November 2, 2012, the Company and Wellstat Diagnostics entered into a $40.0 million credit agreement pursuant to which the Company was to accrue quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). In addition, the Company was to receive quarterly royalty payments based on a low double-digit royalty rate of Wellstat Diagnostics’ net revenues, generated by the sale, distribution or other use of Wellstat Diagnostics’ products, if any, commencing upon the commercialization of its products. A portion of the proceeds of the $40.0 million credit agreement were used to repay certain notes receivable which Wellstat Diagnostics entered into in March 2012. In January 2013, the Company was informed that, as of December 31, 2012, Wellstat Diagnostics had used funds contrary to the terms of the credit agreement and breached Sections 2.1.2 and 7 of the credit agreement. The Company sent Wellstat Diagnostics a notice of default on January 22, 2013, and accelerated the amounts owed under the credit agreement. In connection with the notice of default, the Company exercised one of its available remedies and transferred approximately $8.1 million of available cash from a bank account of Wellstat Diagnostics to the Company and applied the funds to amounts due under the credit agreement. On February 28, 2013, the parties entered into a forbearance agreement whereby the Company agreed to refrain from exercising additional remedies for 120 days. During such forbearance period, the Company provided approximately $1.3 million to Wellstat Diagnostics to fund ongoing operations of the business. During the year ended December 31, 2013, approximately $8.7 million was advanced pursuant to the forbearance agreement. On August 15, 2013, the Company entered into an amended and restated credit agreement with Wellstat Diagnostics. The Company determined that the new agreement should be accounted for as a modification of the existing agreement. Except as otherwise described herein, the material terms of the amended and restated credit agreement are substantially the same as those of the original credit agreement, including quarterly interest payments at the rate of 5% per annum (payable in cash or in kind). In addition, the Company was to continue to receive quarterly royalty payments based on a low double-digit royalty rate of Wellstat Diagnostics’ net revenues. However, pursuant to the amended and restated credit agreement: (i) the principal amount was reset to approximately $44.1 million, which was comprised of approximately $33.7 million original loan principal and interest, $1.3 million term loan principal and interest and $9.1 million forbearance principal and interest; (ii) the specified internal rates of return increased; (iii) the default interest rate was increased; (iv) Wellstat Diagnostics’ obligation to provide certain financial information increased in frequency to monthly; (v) internal financial controls were strengthened by requiring Wellstat Diagnostics to maintain an independent, third-party financial professional with control over fund disbursements; (vi) the Company waived the existing events of default; and (vii) the owners and affiliates of Wellstat Diagnostics were required to contribute additional capital to Wellstat Diagnostics upon the sale of an affiliate entity. The amended and restated credit agreement had an ultimate maturity date of December 31, 2021 (but has subsequently been accelerated as described below). In June 2014, the Company received information from Wellstat Diagnostics showing that it was generally unable to pay its debts as they became due, constituting an event of default under the amended and restated credit agreement. On August 5, 2014, the Company delivered a notice of default (the “Wellstat Diagnostics Borrower Notice”) to Wellstat Diagnostics, which accelerated all obligations under the amended and restated credit agreement and demanded immediate payment in full in an amount equal to approximately $53.9 million, (which amount, in accordance with the terms of the amended and restated credit agreement, included an amount that, together with interest and royalty payments already made to the Company, would generate a specified internal rate of return to the Company), plus accruing fees, costs and interest, and demanded that Wellstat Diagnostics protect and preserve all collateral securing its obligations. On August 7, 2014, the Company delivered a notice (the “Wellstat Diagnostics Guarantor Notice”) to each of the guarantors of Wellstat Diagnostics’ obligations to the Company (collectively, the “Wellstat Diagnostics Guarantors”) under the credit agreement, which included a demand that the guarantors remit payment to the Company in the amount of the outstanding obligations. The guarantors include certain affiliates and related companies of Wellstat Diagnostics, including Wellstat Therapeutics and Wellstat Diagnostics’ stockholders. On September 24, 2014, the Company filed an ex-parte petition for appointment of receiver with the Circuit Court of Montgomery County, Maryland (the “Wellstat Diagnostics Petition”), which was granted on the same day. Wellstat Diagnostics remained in operation during the period of the receivership with incremental additional funding from the Company. On May 24, 2017, Wellstat Diagnostics transferred substantially all of its assets to the Company pursuant to a credit bid. The credit bid reduced the outstanding balance of the loan by an immaterial amount. On September 4, 2015, the Company filed in the Supreme Court of New York a motion for summary judgment in lieu of complaint which requested that the court enter judgment against certain of the Wellstat Diagnostics Guarantors for the total amount due on the Wellstat Diagnostics debt, plus all costs and expenses including lawyers’ fees incurred by the Company in enforcement of the related guarantees. On September 23, 2015, the Company filed in the same court an ex parte application for a temporary restraining order and order of attachment of the Wellstat Diagnostics Guarantor defendants’ assets. Although the court denied the Company’s request for a temporary restraining order at a hearing on September 24, 2015, it ordered that assets of the Wellstat Diagnostics Guarantor defendants should be held in status quo ante and only used in the normal course of business. On July 29, 2016, the Supreme Court of New York granted the Company’s motion for summary judgment and held that the Wellstat Diagnostics Guarantor defendants are liable for all “Obligations” owed by Wellstat Diagnostics to the Company. After appeal by the Wellstat Diagnostics Guarantor defendants on February 14, 2017, the Appellate Division of the Supreme Court of New York reversed on procedural grounds a portion of the Memorandum of Decision granting the Company summary judgment in lieu of complaint, but affirmed the portion of the Memorandum of Decision denying the Wellstat Diagnostics Guarantor defendants’ motion for summary judgment in which they sought a determination that the guarantees had been released. As a result, the litigation has been remanded to the Supreme Court of New York to proceed on the Company’s claims as a plenary action. On June 21, 2017, the Supreme Court of New York ordered the Company to file a Complaint, which was filed by the Company on July 20, 2017. The Wellstat Diagnostics Guarantors filed their answer on August 9, 2017, including counterclaims against the Company alleging breach of contract, breach of fiduciary duty, and tortious interference with prospective economic advantage. On October 14, 2016, the Company sent a notice of default and reference to foreclosure proceedings to certain of the Wellstat Diagnostics Guarantors which are not defendants in the New York action, but which are owners of real estate assets over which a deed of trust in favor of the Company securing the guarantee of the loan to Wellstat Diagnostics had been executed. On March 2, 2017, the Company sent a second notice to foreclose on the real estate assets, and noticed the sale for March 29, 2017. The sale was taken off the calendar by the trustee under the deed of trust and has not been re-scheduled yet. On March 6, 2017, the Company sent a letter to the Wellstat Diagnostics Guarantors seeking information in preparation for a UCC Article 9 sale of some or all of the intellectual property-related collateral of the Wellstat Diagnostics Guarantors. The Wellstat Diagnostics Guarantors did not respond to the Company’s letter, but on March 17, 2017, filed an order to show cause with the Supreme Court of New York to enjoin the Company’s sale of the real estate or enforcing its security interests in the Wellstat Diagnostics Guarantors’ intellectual property during the pendency of any action involving the guarantees at issue. On February 6, 2018, the Supreme Court of New York issued an order from the bench which enjoins the Wellstat Diagnostics Guarantors from selling, encumbering, removing, transferring or altering the collateral pending the outcome of the proceedings before it. The Supreme Court of New York also issued an order precluding the Company from foreclosing on certain of the Wellstat Diagnostics Guarantors’ collateral pending the outcome of the proceedings before it. In September of 2018, discovery in the New York action was completed. Summary judgment motions were filed by Wellstat Diagnostics and the Company in 2018 and a hearing was held on May 22, 2019. On September 11, 2019, the Supreme Court of New York granted the Company’s summary judgment motion, the court holding that the guarantees executed by the Wellstat Diagnostics Guarantors are valid and enforceable, and that the Wellstat Diagnostics Guarantors are liable for the amount owed under the loan agreement. The court ordered a damages inquest before a special referee to calculate the amount owed under the loan agreement between Wellstat Diagnostics and the Company. On September 12, 2019, the Wellstat Diagnostics Guarantors filed a notice of appeal in relation to the court’s decision. On September 17, 2019, the Wellstat Diagnostics Guarantors requested a stay of the enforcement of the New York Supreme Court’s decision pending their appeal of the decision. The court is in the process of scheduling the hearing dates for the damages inquest. In an unrelated litigation, Wellstat Therapeutics filed a lawsuit against BTG International, Inc. for breach of contract (the “BTG Litigation”). In September 2017, the Delaware Chancery Court found in favor of Wellstat Therapeutics and awarded a judgment of $55.8 million in damages, plus interest. In October 2017, the Company filed a motion with the Supreme Court of New York requesting a pre-judgement attachment of the award. In June 2018, the Delaware Supreme Court largely affirmed the September 2017 decision of the Delaware Chancery Court, including the $55.8 million awarded in judgment. In August of 2018, in a letter to the Company’s counsel, Wellstat Guarantors’ counsel confirmed that the Wellstat Guarantors are preserving the BTG Litigation judgment award proceeds consistent with the New York Court’s prior directions. On October 22, 2015, certain of the Wellstat Diagnostics Guarantors filed a separate complaint against the Company in the Supreme Court of New York seeking a declaratory judgment that certain contractual arrangements entered into between the parties subsequent to Wellstat Diagnostics’ default, and which relate to a split of proceeds in the event that the Wellstat Diagnostics Guarantors voluntarily monetize any assets that are the Company’s collateral, is of no force or effect. This case has been joined for all purposes, including discovery and trial, and consolidated with the pending case filed by the Company. The Wellstat Diagnostic Guarantors filed a summary judgment motion with regard to this case, which was also heard by the court at the hearing on May 22, 2019. The court, in its September 11, 2019 decision, denied in its entirety the Wellstat Diagnostics Guarantors’ motion for summary judgment. Effective April 1, 2014, and as a result of the event of default, the Company determined the loan to be impaired and it ceased to accrue interest revenue. At that time and as of September 30, 2019, it has been determined that an allowance on the carrying value of the note was not necessary, as the Company believes the value of the collateral securing Wellstat Diagnostics’ obligations exceeds the carrying value of the asset and is sufficient to enable the Company to recover the current carrying value of $50.2 million. The Company continues to closely monitor the timing and expected recovery of amounts due, including litigation and other matters related to Wellstat Diagnostics Guarantors’ assets. There can be no assurance that an allowance on the carrying value of the notes receivable investment will not be necessary in a future period depending on future developments. Hyperion Agreement On January 27, 2012, the Company and Hyperion (which is also a Wellstat Diagnostics Guarantor) entered into an agreement whereby Hyperion sold to the Company the royalty streams accruing from January 1, 2012 through December 31, 2013 due from Showa Denko K.K. (“SDK”) related to a certain patent license agreement between Hyperion and SDK dated December 31, 2008. In exchange for the lump sum payment to Hyperion of $2.3 million, in addition to any royalties from SDK, the Company was to receive two equal payments of $1.2 million on March 5, 2013 and March 5, 2014. The first payment of $1.2 million was paid on March 5, 2013, but the second payment that was due on March 5, 2014 has not been made by Hyperion. Effective as of such date and as a result of the event of default, the Company ceased to accrue interest revenue. As of September 30, 2019, the estimated fair value of the collateral was determined to be in excess of the carrying value. There can be no assurance of realizing value from such collateral in the event of the Company’s foreclosure on the collateral. Avinger Credit and Royalty Agreement On April 18, 2013, the Company entered into a credit agreement with Avinger, Inc. (the “Avinger Credit and Royalty Agreement”). Under the terms of the Avinger Credit and Royalty Agreement, the Company received a low, single-digit royalty on Avinger’s net revenues until April 2018. Commencing in October 2015, after Avinger repaid $21.4 million pursuant to its note payable to the Company prior to its maturity date, the royalty on Avinger’s net revenues was reduced by 50%, subject to certain minimum payments from the prepayment date until April 18, 2018. The Company accounted for the royalty rights in accordance with the fair value option. As of April 18, 2018, there were no further obligations owed to the Company. CareView Credit Agreement On June 26, 2015, the Company entered into a credit agreement with CareView, under which the Company made available to CareView up to $40.0 million in loans comprised of two tranches of $20.0 million each, subject to CareView’s attainment of specified milestones relating to the placement of CareView Systems. On October 7, 2015, the Company and CareView entered into an amendment of the credit agreement to modify certain definitions related to the first and second tranche milestones and the Company funded the first tranche of $20.0 million, net of fees, based on CareView’s attainment of the first milestone, as amended. The second $20.0 million tranche was not funded due to CareView’s failure to achieve the related funding milestones and there is no additional funding obligation due from the Company. Outstanding borrowings under the credit agreement bear interest at the rate of 13.5% per annum and are payable quarterly in arrears. As part of the original credit agreement, the Company received a warrant to purchase approximately 4.4 million shares of common stock of CareView at an exercise price of $0.45 per share. The Company has accounted for the warrant as a derivative asset with an offsetting credit as debt discount. At each reporting period the warrant is marked to market for changes in fair value. In connection with the October 2015 amendment of the credit agreement, the Company and CareView also agreed to amend the warrant to purchase common stock agreement by reducing the warrant’s exercise price from $0.45 to $0.40 per share. In February 2018, the Company entered into a modification agreement with CareView (the “February 2018 Modification Agreement”) whereby the Company agreed, effective December 28, 2017, to modify the credit agreement before remedies could otherwise have become available to the Company under the credit agreement in relation to certain obligations of CareView that would potentially not be met, including the requirement to make principal payments. Under the February 2018 Modification Agreement, the Company agreed that (i) a lower liquidity covenant would be applicable and (ii) principal repayment would be delayed until December 31, 2018. In exchange for agreeing to these modifications, among other things, the exercise price of the Company’s warrant to purchase 4.4 million shares of common stock of CareView was repriced from $0.40 to $0.03 per share and, subject to the occurrence of certain events, CareView agreed to grant the Company additional equity interests. As a result of the February 2018 Modification Agreement, the Company determined the loan to be impaired and it ceased to accrue interest revenue effective October 1, 2017. In September 2018, the Company entered into an amendment to the February 2018 Modification Agreement with CareView whereby the Company agreed, effective as of September 28, 2018, that a lower liquidity covenant would be applicable. In December 2018, the Company further modified the loan by agreeing that (i) a lower liquidity covenant would be applicable, (ii) the first principal payment would be deferred until January 31, 2019, and (iii) the scheduled interest payment due December 31, 2018 would be deferred until January 31, 2019. In December 2018, and in consideration of the further modification to the credit agreement, the Company completed an impairment analysis and determined that the note was impaired and recorded an impairment loss of $8.2 million. For additional information see Note 5, Fair Value Measurements. As of March 31, 2019, the principal repayment and interest payments were deferred until April 30, 2019. The principal repayment and interest payment were subsequently deferred until May 15, 2019. In May 2019, and in consideration of additional capital raised by CareView, the Company further modified the loan by agreeing that (i) the first principal and interest payments would be deferred until September 30, 2019 and (ii) the remaining liquidity covenant would be removed. In September 2019, the Company further modified the loan by agreeing that the first principal and interest payments would be deferred until November 30, 2019. As of September 30, 2019, the Company performed an analysis and determined that no additional impairment was required and estimated the fair value of the warrant to be less than $0.1 million.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Accrued Liabilities

9 Months Ended

Sep. 30, 2019

Payables and Accruals [Abstract]

Accrued Liabilities

. Accrued Liabilities

Accrued liabilities consist of the following:



(in thousands)	September 30, 2019		December 31, 2018

Accrued rebates, chargebacks and other revenue reserves	$	10,265	$	20,133
Deferred revenue	4,782		8,811
Compensation	5,750		4,468
Interest	1,375		344
Legal	740		623
Other	4,741		4,933
Total	$	27,653	$	39,312

The following table provides a summary of activity with respect to the Company’s sales allowances and accruals for the nine months ended September 30, 2019:



(in thousands)	Discount and Distribution Fees			Government Rebates and Chargebacks			Assistance and Other Discounts			Product Returns			Total

Balance at December 31, 2018	$	3,094		$	8,901		$	3,457		$	4,681		$	20,133
Allowances for current period sales	4,122			10,020			4,194			1,317			19,653
Allowances for prior period sales	50			1,841			120			33			2,044
Credits/payments for current period sales	(1,944		)	(7,401		)	(3,105		)	(263		)	(12,713		)
Credits/payments for prior period sales	(3,075		)	(10,228		)	(3,329		)	(2,220		)	(18,852		)
Balance at September 30, 2019	$	2,247		$	3,133		$	1,337		$	3,548		$	10,265

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies Lease Guarantee In connection with the spin-off (the “Spin-Off”) by the Company of Facet Biotech Corporation (“Facet”), the Company entered into amendments to the leases for the Company’s former facilities in Redwood City, California, under which Facet was added as a co-tenant, and a Co-Tenancy Agreement, under which Facet agreed to indemnify the Company for all matters related to the leases attributable to the period after the Spin-Off date. In April 2010, Abbott Laboratories acquired Facet and later renamed the entity AbbVie Biotherapeutics, Inc. (“AbbVie”). If AbbVie were to default under its lease obligations, the Company could be held liable by the landlord as a co-tenant and, thus, the Company has in substance guaranteed the payments under the lease agreements for the Redwood City facilities. As of September 30, 2019, the total lease payments for the duration of the guarantee, which runs through December 2021, are approximately $25.4 million. The Company prepared a discounted, probability weighted cash flow analysis to calculate the estimated fair value of the lease guarantee as of the Spin-Off. The Company was required to make assumptions regarding the probability of Facet’s default on the lease payment, the likelihood of a sublease being executed and the times at which these events could occur. These assumptions are based on information that the Company received from real estate brokers and the then-current economic conditions, as well as expectations of future economic conditions. The fair value of this lease guarantee was charged to Additional paid-in capital upon the Spin-Off and any future adjustments to the carrying value of the obligation will also be recorded in Additional paid-in capital. The Company has recorded a liability of $10.7 million on its Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018, related to this guarantee. In future periods, the Company may adjust this liability for any changes in the ultimate outcome of this matter that are both probable and estimable. Purchase Obligations Noden DAC and Novartis entered into a supply agreement pursuant to which Novartis will manufacture and supply to Noden DAC a bulk tableted form of the Noden Products and active pharmaceutical ingredient (“API”). In May 2019, Noden DAC and Novartis entered into an amended supply agreement pursuant to which Novartis will supply to Noden DAC a bulk tableted form of the Noden Products through 2020 and API through June 2021. The supply agreement may be terminated by either party for material breach that remains uncured for a specified time period. Under the terms of the amended supply agreement, Noden DAC is committed to purchase certain quantities of bulk product and API that would amount to approximately $82.7 million through June 2021, of which $54.3 million is committed over the next twelve months, which are guaranteed by the Company. While the supply agreement provides that the parties will agree to reasonable accommodations with respect to changes in firm orders, the Company expects that Noden DAC will meet the requirements of the supply agreement, unless otherwise negotiated. LENSAR entered into various supply agreements for the manufacture and supply of certain components. The supply agreements commit LENSAR to a minimum purchase obligation of approximately $6.1 million over the next twelve months. LENSAR expects to meet these requirements. Escrow Receivable On April 1, 2014, the Company entered into a note purchase agreement with Accel 300, LLC (“Accel 300”), a wholly-owned subsidiary of kaléo, Inc. (“kaléo”), pursuant to which the Company acquired $150.0 million of secured notes due 2029 (the “kaléo Note”). The kaléo Note was issued pursuant to an indenture between Accel 300 and U.S. Bank, National Association, as trustee, and was secured by 20% of net sales of its first approved product, Auvi-Q^® (epinephrine auto-injection, USP) (known as Allerject^® in Canada) and 10% of net sales of kaléo’s second proprietary auto-injector based product, EVZIO (naloxone hydrochloride injection) (the “kaléo Revenue Interests”), and a pledge of kaléo’s equity ownership in Accel 300. On September 21, 2017, the Company entered into an agreement (the “kaléo Note Sale Agreement”) with MAMKangaroo Lender, LLC, a Delaware limited liability company (the kaléo Purchaser”), pursuant to which the Company sold its entire interest in the kaléo Note for an aggregate cash purchase price of $141.7 million. Pursuant to the terms of the kaléo Note Sale Agreement, $1.4 million of the aggregate purchase price was deposited into an escrow account as a potential payment against certain contingencies. The escrow period ended on March 20, 2019 and the escrow agent released the entire $1.4 million to the Company.

Convertible Notes

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Convertible and Non-Recourse Notes

. Convertible Senior Notes



		Principal Balance Outstanding		Carrying Value
		September 30,		September 30,		December 31,
Description	Maturity Date	2019		2019		2018
(in thousands)
Convertible Senior Notes
December 2021 Notes	December 1, 2021	$	63,947	$	55,652	$	124,644
December 2024 Notes	December 1, 2024	86,053		$	76,832	—
Total		$	150,000	$	132,484	$	124,644

February 2018 Notes

On February 12, 2014, the Company issued $300.0 million in aggregate principal amount, at par, of the 4.0% Convertible Senior Notes due February 1, 2018 (the “February 2018 Notes”) in an underwritten public offering, for net proceeds of $290.2 million. The February 2018 Notes were due February 1, 2018. In November 2015, $53.6 million in aggregate principal amount of the February 2018 Notes were repurchased and in November 2016 an additional $120.0 million in aggregate principal amount of the February 2018 Notes were repurchased in open market transactions. In connection with these repurchases, the Company unwound a corresponding portion of the purchased call options and warrants related to the notes.

On February 1, 2018, upon maturity of the February 2018 Notes, the Company repaid a total cash amount of $129.0 million to the custodian, The Bank of New York Mellon Trust Company, N.A., which was comprised of $126.4 million in principal amount and $2.6 million in accrued interest, to retire the February 2018 Notes.

Interest expense for the February 2018 Notes on the Company’s Condensed Consolidated Statements of Operations was as follows:



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
(in thousands)	2018		2018

Contractual coupon interest	$	—	$	421
Amortization of debt issuance costs	—		88
Amortization of debt discount	—		293
Total	$	—	$	802

December 2021 Notes

On November 22, 2016, the Company issued $150.0 million in aggregate principal amount, at par, of 2.75% Convertible Senior Notes due December 1, 2021 (the “December 2021 Notes”) in an underwritten public offering, for net proceeds of $145.7 million. The December 2021 Notes are due December 1, 2021, and the Company pays interest at 2.75% on the December 2021 Notes semiannually in arrears on June 1 and December 1 of each year, beginning June 1, 2017. A portion of the proceeds from the December 2021 Notes, net of amounts used for the capped call transaction described below, was used to extinguish $120.0 million of the February 2018 Notes.

In September 2019, the Company entered into privately negotiated exchange agreements with certain holders of approximately $86.1 million aggregate principal amount of outstanding December 2021 Notes. The Company exchanged $86.1 million aggregate principal of December 2021 Notes for an identical principal amount of 2.75% Convertible Senior Notes due December 1, 2024 (the “December 2024 Notes”), plus a cash payment of $70.00 for each $1,000 principal amount tendered (“Exchange Transaction”). See “December 2024 Notes” below. The terms of the remaining December 2021 Notes remained unchanged.

The Exchange Transaction qualified as a debt extinguishment and the Company recognized a loss on exchange of the convertible notes of $3.9 million, which is included in Non-operating (expense) income, net in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2019.

Upon the occurrence of a fundamental change, as defined in the indenture entered into in connection with the December 2021 Notes (the “December 2021 Notes Indenture”), holders have the option to require the Company to repurchase their December 2021 Notes at a purchase price equal to 100% of the principal, plus accrued interest.

The December 2021 Notes are convertible under any of the following circumstances at any time prior to the close of business on the business day immediately preceding June 1, 2021 (or at any time beginning on June 1, 2021 until the close of business on the second scheduled trading day immediately preceding the stated maturity):

•

During any fiscal quarter (and only during such fiscal quarter) commencing after the fiscal quarter ended June 30, 2017, if the last reported sale price of Company common stock for at least 20 trading days (whether or not consecutive), in the period of 30 consecutive trading days, ending on, and including, the last trading day of the immediately preceding fiscal quarter, exceeds 130% of the conversion price for the notes on each applicable trading day;

•

During the five business-day period immediately after any five consecutive trading-day period, which the Company refers to as the measurement period, in which the trading price per $1,000 principal amount of notes for each trading day of that measurement period was less than 98% of the product of the last reported sale price of Company common stock and the conversion rate for the notes for each such trading day; or


•	Upon the occurrence of specified corporate events as described in the December 2021 Notes Indenture.

The initial conversion rate for the December 2021 Notes is 262.2951 shares of the Company’s common stock per $1,000 principal amount of December 2021 Notes, which is equivalent to an initial conversion price of approximately $3.81 per share of common stock, subject to adjustments upon the occurrence of certain specified events as set forth in the December 2021 Notes Indenture.

In accordance with the accounting guidance for convertible debt instruments that may be settled in cash or other assets on conversion, the Company was required to separately account for the liability component of the instrument in a manner that reflects the market interest rate for a similar nonconvertible instrument at the date of issuance. As a result, the Company separated the principal balance of the December 2021 Notes between the fair value of the debt component with the remainder of the consideration being allocated to the equity component. Using an assumed borrowing rate of 9.5%, which represented the estimated market interest rate for a similar nonconvertible instrument available to the Company on the date of issuance, the Company recorded a debt discount of $4.3 million, allocated $23.8 million to additional paid-in capital for the conversion feature and allocated $12.8 million to deferred tax liability. The debt discount, including the conversion feature and issuance costs allocated to debt, which remained after amortization and the effect of the Exchange Transaction, is being amortized to interest expense over the term of the December 2021 Notes and increases interest expense during the term of the December 2021 Notes from the 2.75% cash coupon interest rate to an effective interest rate of 9.7%. As of September 30, 2019, the remaining discount amortization period is 2.2 years.

The carrying value and unamortized discount of the December 2021 Notes were as follows:



(in thousands)	September 30, 2019			December 31, 2018

Principal amount of the December 2021 Notes	$	63,947		$	150,000
Unamortized discount of liability component	(8,295		)	(25,356		)
Net carrying value of the December 2021 Notes	$	55,652		$	124,644

Interest expense for the December 2021 Notes included in the Company’s Condensed Consolidated Statements of Operations was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2019		2018		2019		2018

Contractual coupon interest	$	939	$	1,031	$	3,002	$	3,095
Amortization of debt issuance costs	17		19		57		57
Amortization of debt discount	130		136		406		405
Amortization of conversion feature	1,692		1,680		5,252		4,903
Total	$	2,778	$	2,866	$	8,717	$	8,460

As of September 30, 2019, the December 2021 Notes are not convertible.

Capped Call Transaction

In connection with the offering of the December 2021 Notes, the Company entered into a privately-negotiated capped call transaction with an affiliate of the underwriter of such issuance. The aggregate cost of the capped call transaction was $14.4 million. The capped call transaction is generally expected to reduce the potential dilution upon conversion of the December 2021 Notes and/or partially offset any cash payments the Company is required to make in excess of the principal amount of converted December 2021 Notes in the event that the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction. This initially corresponds to the approximate $3.81 per share conversion price of the December 2021 Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the December 2021 Notes. The cap price of the capped call transaction was initially $4.88 per share and is subject to certain adjustments under the terms of the capped call transaction. The Company will not be required to make any cash payments to the option counterparty upon the exercise of the options that are a part of the capped call transaction, but the Company will be entitled to receive from it an aggregate amount of cash and/or number of shares of the Company’s common stock, based on the settlement method election chosen for the related convertible senior notes, with a value equal to the amount by which the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction during the relevant valuation period under the capped call transaction, with such number of shares of the Company’s common stock and/or amount of cash subject to the cap price.

The Company evaluated the capped call transaction under authoritative accounting guidance and determined that it should be accounted for as separate transaction and classified as a net reduction to additional paid-in capital within stockholders’ equity with no recurring fair value measurement recorded.

In connection with the September 2019 Exchange Transaction, the Company unwound a portion of the capped call entered into when the December 2021 Notes were issued, as discussed below. The $0.9 million proceeds from the unwind of the capped call, which reflected the value of the options outstanding at the time of the Exchange Transaction and the average share price of the Company’s common stock were included as an increase to Additional paid-in capital within stockholders’ equity.

December 2024 Notes

On September 17, 2019, the Company exchanged $86.1 million aggregate principal of December 2021 Notes for an identical aggregate original principal amount of December 2024 Notes, plus a cash payment of $70.00 for each $1,000 principal amount exchanged, totaling approximately $6.0 million. The December 2024 Notes are due December 1, 2024, and the Company pays interest at 2.75% on the December 2024 Notes semiannually in arrears on June 1 and December 1 of each year, beginning December 1, 2019. The original principal of the December 2024 Notes will accrete at a rate of 2.375% per year (“Accretion Interest”) commencing September 17, 2019 through the maturity of the December 2024 Notes. The accreted principal amount of the December 2024 Notes is payable in cash upon maturity.

Upon the occurrence of a fundamental change, as defined in the indenture entered into in connection with the December 2024 Notes (the “December 2024 Notes Indenture”), holders have the option to require the Company to repurchase their December 2024 Notes at a purchase price equal to 100% of the accreted principal amount of such December 2024 Notes, plus accrued interest on the original principal amount thereon.

The December 2024 Notes are convertible under any of the following circumstances at any time prior to the close of business on the business day immediately preceding June 1, 2024 (or at any time beginning on June 1, 2024 until the close of business on the second scheduled trading day immediately preceding the stated maturity):

•

During any fiscal quarter (and only during such fiscal quarter) commencing after the fiscal quarter ended December 31, 2019, if the last reported sale price of Company common stock for at least 20 trading days (whether or not consecutive), in the period of 30 consecutive trading days, ending on, and including, the last trading day of the immediately preceding fiscal quarter, exceeds 130% of the conversion price for the notes on each applicable trading day;

•

During the five business-day period immediately after any five consecutive trading-day period, which the Company refers to as the measurement period, in which the trading price per $1,000 original principal amount of notes for each trading day of that measurement period was less than 98% of the product of the last reported sale price of Company common stock and the conversion rate for the notes for each such trading day;


•	Upon the occurrence of specified corporate events or upon a redemption of the notes, in each case as described in the December 2024 Notes Indenture; or


•	On or after June 1, 2024, at the option of the holder prior to the second scheduled trading day preceding December 1, 2024.

In accordance with the terms of the December 2024 Notes Indenture, the Company has the right, but not the obligation, to redeem all or any portion of the December 2024 Notes that is equal to $1,000 original principal amount or an integral multiple of $1,000 prior to their scheduled maturity on a redemption date beginning on or after December 1, 2021 and on or before the 60th scheduled trading day before December 1, 2024, for a cash purchase price equal to the redemption price, but only if the last reported sale price of Company common stock exceeds 128% of the conversion price for the December 2024 Notes on (i) each of at least 20 trading Days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the trading day immediately before the redemption notice date for such redemption; and (ii) the trading day immediately before such redemption notice date. The redemption price for the December 2024 Notes called for redemption is equal to the then accreted principal amount of such December 2024 Notes plus accrued but unpaid interest on the original principal amount thereon. The calling of any December 2024 Notes for redemption will constitute a make-whole fundamental change with respect to such notes, entitling the holders who convert such December 2024 Notes called for redemption prior to the applicable redemption date to receive an increase in the applicable conversion rate, as described in the December 2024 Notes Indenture.

The initial conversion rate for the December 2024 Notes is 262.2951 shares of the Company’s common stock per $1,000 original principal amount of December 2024 Notes, which is equivalent to an initial conversion price of approximately $3.81 per share of common stock, subject to adjustments upon the occurrence of certain specified events as set forth in the December 2024 Notes Indenture.

In accordance with the accounting guidance for an extinguishment of convertible debt instruments with a cash conversion feature, the Company was required to allocate the fair value of the consideration transferred between the liability component and the equity component. To calculate the fair value of the debt immediately prior to derecognition, the carrying value was recalculated in a manner that reflected the estimated market interest rate for a similar nonconvertible instrument at the date of issuance. Using an assumed borrowing rate of 7.05% the Company calculated the fair value of the debt representing the amount allocated to the liability component of the December 2024 Notes with the remainder of the consideration allocated to the equity conversion feature, to reflect the reacquisition of the embedded conversion option. The conversion feature together with the fees allocated to the debt are accounted for as a debt discount. As a result of the Exchange Transaction, the Company recorded a total debt discount of $9.4 million, which included the cash conversion feature of $8.1 million and the debt issuance fees of $1.3 million, charged $5.5 million to Additional paid-in capital and recorded $1.2 million to deferred tax liability. The amount charged to Additional paid-in capital represents the difference between the consideration paid for the Exchange Transaction and the fair value of the debt prior to the extinguishment.

The Accretion Interest and debt discount, including the conversion feature and issuance costs allocated to debt, are being amortized to interest expense over the term of the December 2024 Notes which increases interest expense during the term of the December 2024 Notes from the 2.75% cash coupon interest rate to an effective interest rate of 7.5%. As of September 30, 2019, the remaining discount amortization period is 5.2 years.

The carrying value, accretion and unamortized discount of the December 2024 Notes were as follows:



(in thousands)	September 30, 2019			December 31, 2018

Principal amount of the December 2024 Notes	$	86,053		$	—
Unamortized discount of liability component	(9,300		)	—
Accretion Interest on outstanding principal	79			—
Net carrying value of the December 2024 Notes	$	76,832		$	—

Interest expense for the December 2024 Notes included in the Company’s Condensed Consolidated Statements of Operations was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2019		2018		2019		2018

Contractual coupon interest	$	92	$	—	$	92	$	—
Accretion Interest on outstanding principal	79		—		79		—
Amortization of debt issuance costs	8		—		8		—
Amortization of conversion feature	54		—		54		—
Total	$	233	$	—	$	233	$	—

Capped Call Transaction

In connection with the offering of the December 2024 Notes, the Company entered into a privately-negotiated capped call transaction with an affiliate of the underwriter of such issuance. The aggregate cost of the capped call transaction was $4.5 million. The capped call transaction is generally expected to reduce the potential dilution upon conversion of the December 2024 Notes and/or partially offset any cash payments the Company is required to make in excess of the principal amount of converted December 2024 Notes in the event that the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction. This initially corresponds to the approximate $3.81 per share conversion price of the December 2024 Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the December 2024 Notes. The cap price of the capped call transaction was initially $4.88 per share and is subject to certain adjustments under the terms of the capped call transaction. The Company will not be required to make any cash payments to the option counterparty upon the exercise of the options that are a part of the capped call transaction, but the Company will be entitled to receive from it an aggregate amount of cash and/or number of shares of the Company’s common stock, based on the settlement method election chosen for the related convertible senior notes, with a value equal to the amount by which the market price per share of the Company’s common stock, as measured under the terms of the capped call transaction, is greater than the strike price of the capped call transaction during the relevant valuation period under the capped call transaction, with such number of shares of the Company’s common stock and/or amount of cash subject to the cap price.

The Company evaluated the capped call transaction under authoritative accounting guidance and determined that it should be accounted for as separate transaction from the debt as it was entered into with a separate counterparty and does not relate to the same risk. The $4.5 million premium for the capped call was classified as a reduction to Additional paid-in capital within stockholders’ equity and will not be subject to recurring fair value measurement.

The net impact to the Company’s stockholders’ equity included in Additional paid-in capital related to the issuance of the Notes and capped call transactions was as follows:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(in thousands)	2019			2018		2019			2018

Conversion option adjustment	$	5,402		$	—	$	5,402		$	—
Net payments for capped call transactions	3,694			—		3,694			—
Deferred taxes	(1,217		)	—		(1,217		)	—
Issuance costs	134			—		134			—
Total	$	8,013		$	—	$	8,013		$	—

Stock-Based Compensation

9 Months Ended

Sep. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

14. Stock-Based Compensation

The Company grants restricted stock awards and stock options pursuant to a stockholder approved stock-based incentive plan.

The following table summarizes the Company’s stock option and restricted stock award activity during the nine months ended September 30, 2019:



	Stock Options				Restricted Stock Awards
(in thousands, except per share amounts)	Number of Shares Outstanding		Weighted Average Exercise Price		Number of Shares Outstanding		Weighted Average Grant-date Fair Value Per Share

Balance at December 31, 2018	7,869		$	2.82	883		$	2.87
Granted	5,796		$	3.17	905		$	3.58
Exercised or vested	—		$	—	(335	)	$	2.69
Forfeited or canceled	(968	)	$	3.30	(121	)	$	3.17
Balance at September 30, 2019	12,697		$	3.13	1,332		$	3.37

Cash Dividends	9 Months Ended
Cash Dividends	Sep. 30, 2019
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	13. Stockholders’ Equity Stock Repurchase Program On September 25, 2017, the Company announced that its board of directors authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $25.0 million pursuant to a share repurchase program. The repurchases under the share repurchase program were made from time to time in the open market or in privately negotiated transactions and were funded from the Company’s working capital. All shares of common stock repurchased under this share repurchase program were retired and restored to authorized but unissued shares of common stock. The Company repurchased 8.7 million shares of its common stock under the share repurchase program during the fiscal year ended December 31, 2018, for an aggregate purchase price of $25.0 million, or an average cost of $2.86 per share, including trading commissions. On September 24, 2018, the Company announced that its board of directors authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $100.0 million pursuant to a share repurchase program. The Company repurchased 22.4 million shares of its common stock under this share repurchase program during the nine months ended September 30, 2019, for an aggregate purchase price of $74.5 million, or an average cost of $3.33 per share, including trading commissions. Since the inception of this share repurchase program through September 30, 2019, the Company has repurchased 31.0 million shares for an aggregate purchase price of $100.0 million, or an average cost of $3.22 per share, including trading commissions. All shares of common stock repurchased under this share repurchase program were retired and restored to authorized but unissued shares of common stock. This program was completed in July 2019.

Customer Concentration

9 Months Ended

Sep. 30, 2019

Customer Concentration [Abstract]

Concentration Risk Disclosure [Text Block]

17. Concentration of Credit Risk

Product Line Concentration

The percentage of total revenue recognized, which individually accounted for 10% or more of the Company’s total revenues in one or more of the periods presented below, was as follows:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019⁽¹⁾	2018
LENSAR	18%	10%	19%	11%
Noden	27%	26%	36%	41%
Assertio	55%	72%	45%	43%

^{___________________}


⁽¹⁾	For the nine months ended September 30, 2019, the AcelRx royalty asset decrease in fair value of $57.7 million, is excluded from total revenue when calculating product line concentration.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	18. Income Taxes Income tax (benefit) expense for the three months ended September 30, 2019 and 2018, was $(1.9) million and $9.9 million, respectively, and for the nine months ended September 30, 2019 and 2018, was $(0.4) million and $(3.3) million, respectively, which resulted primarily from applying the federal statutory income tax rate to income before income taxes. The Company’s effective tax rate for the current period differs from the U.S. federal statutory rate of 21% due primarily to the effect of state income taxes, non-deductible executive compensation and the foreign tax rate differential associated with the Company’s Noden DAC operations in Ireland. The uncertain tax positions did not change during the three or nine months ended September 30, 2019 and 2018. The Company’s income tax returns are subject to examination by U.S. federal, foreign, state and local tax authorities for tax years 2000 forward. The Company is currently under audit by the California Franchise Tax Board (the “CFTB”) for the tax years 2009 through 2015 and the Internal Revenue Service (the “IRS”) for the tax year 2016. The timing of the resolutions to these audits and the amount to be ultimately paid, if any, is uncertain. The outcome of these audits could result in the payment of tax amounts that differ from the amounts the Company has reserved for uncertain tax positions for the periods under audit resulting in incremental expense or a reversal of the Company’s reserves in a future period. At this time, the Company does not anticipate a material change in the unrecognized tax benefits related to the CFTB or IRS audits that would affect the effective tax rate or deferred tax assets over the next 12 months.

Intangibles and Goodwill (Notes)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

. Intangible Assets

Intangible Assets, Net

On June 8, 2018, Noden DAC entered into a Settlement Agreement (the “Settlement Agreement”) with Anchen Pharmaceuticals, Inc. and its affiliates (“Anchen”) to resolve the patent litigation relating to infringement of U.S. Patent No. 8,617,595 (the “‘595 Patent”) based on their submission of an Abbreviated New Drug Application (“ANDA”) seeking authorization from the FDA to market a generic version of aliskiren, the active ingredient in the Tekturna and Tekturna HCT drug. Under the Settlement Agreement, Anchen, the sole ANDA filer of which the Company is aware, agreed to not commercialize its generic version of aliskiren prior to March 1, 2019. Per the Settlement Agreement, Anchen may commercialize their formulation of aliskiren, but is not permitted to commercialize a copy of Tekturna.

Accordingly, management evaluated the ongoing value of the Noden DAC asset group based upon the probability of Anchen’s market entry of a generic version of aliskiren in the United States and the associated cash flows and conducted a test for impairment. Due to the increased probability of a generic version of aliskiren being launched in the United States, the Company revised its estimates of future cash flows and as a result of this analysis, determined that the sum of undiscounted cash flows was not greater than the carrying value of the assets. Therefore, the Company performed a discounted cash flow analysis to estimate the fair value of the asset group in accordance with ASC Topic 360, Impairment or Disposal of Long-lived Assets. The cash flows used in this analysis are those expected to be generated by market participants, discounted to reflect an appropriate amount of risk, which was determined to be 21%. The Company concluded that the Noden DAC acquired product rights and customer relationship long-lived assets, with a carrying amount of $192.5 million, were no longer recoverable and wrote them down to their estimated fair value of $40.1 million, resulting in an impairment charge of $152.3 million in the second quarter of 2018. This write-down is included in “Impairment of intangible assets” in the Condensed Consolidated Statement of Operations and the Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2018.

On March 4, 2019, the Company announced the U.S. commercial launch of an authorized generic form of Tekturna, with the same drug formulation as Tekturna. The Company performed an impairment assessment of the Noden asset group at this time by estimating the undiscounted future cash flows with respect to the asset and comparing the sum of these cash flows to the asset’s carrying value and concluded a further impairment was not required.

On March 22, 2019, the FDA approved Anchen’s generic form of aliskiren. The Company performed an impairment assessment of the Noden asset group at this time and concluded no further impairment was required.

Future events, such as FDA approval of additional generic forms of aliskiren, or pricing or market share pressure resulting from existing generic competition, may be further indicators of impairment which may require the Company to perform additional impairment testing.

In April 2019, LENSAR acquired certain intellectual property from a third-party for $2.0 million in cash and obligations to pay a $0.3 million milestone payment and royalties upon the completion of certain events.

In September 2019, LENSAR exclusively licensed certain intellectual property from a third-party for $3.5 million in cash for use in research and development activities. The amount was immediately expensed and is included in Research and development expense in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2019.

The components of intangible assets as of September 30, 2019 and December 31, 2018 were as follows:



	September 30, 2019							December 31, 2018
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount

Finite-lived intangible assets:
Acquired products rights⁽¹⁾	$	36,143	$	(5,647	)	$	30,496	$	36,143	$	(2,258	)	$	33,885
Customer relationships^{(1) (2) (4)}	8,028		(1,420		)	6,608		8,028		(782		)	7,246
Acquired technology^{(2) (3) (5)}	11,500		(1,549		)	9,951		11,011		(1,203		)	9,808
Acquired trademarks⁽²⁾	570		(276		)	294		570		(190		)	380
	$	56,241	$	(8,892	)	$	47,349	$	55,752	$	(4,433	)	$	51,319

________________


⁽¹⁾	The Company acquired certain intangible assets as part of the Noden transaction. They are being amortized on a straight-line basis over a weighted-average period of eight years.


⁽²⁾	The Company acquired certain intangible assets as part of its acquisition of LENSAR in May 2017. They are being amortized on a straight-line basis over a weighted-average period of 15 years. The intangible assets for customer relationships are being amortized using a double-declining method of amortization as such method better represents the economic benefits to be obtained.

⁽³⁾

The Company acquired certain intangible assets as part of the foreclosure on certain of Direct Flow Medical, Inc. (“DFM”) assets. In August 2019, the Company sold the DFM intangible assets for $5.0 million in cash and a single-digit percentage of any net final award received as part of the acquirer’s monetization process using the intangible assets. Prior to the sale, these intangible assets were being amortized on a straight-line basis over a weighted-average period of 10 years.


⁽⁴⁾	LENSAR acquired certain intangible assets for customer relationships from Precision Eye Services, which are being amortized using a double-declining method over a period of 20 years.

⁽⁵⁾LENSAR acquired certain intangible assets from a third-party, which are being amortized on a straight-line basis over a period of 15 years.

For the three and nine months ended September 30, 2019, amortization expense was $1.6 million and $4.7 million, respectively, and for the three and nine months ended September 30, 2018 amortization expense was $1.6 million and $14.3 million, respectively. The decline in the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018 is primarily due to the Noden DAC impairment described above.

Based on the intangible assets recorded at September 30, 2019, and assuming no subsequent additions to or impairment of the underlying assets, the remaining amortization expense is expected to be as follows (in thousands):



Fiscal Year	Amount

2019 (Remaining three months)	$	1,560
2020	6,213
2021	6,181
2022	6,076
2023	6,014
Thereafter	21,305
Total remaining amortization expense	$	47,349

Segment Information (Notes)

9 Months Ended

Sep. 30, 2019

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

16. Segment Information

In connection with its investment in Evofem in the second quarter of 2019, the Company added a fourth reportable segment, “Strategic Positions.”

Information regarding the Company’s segments for the three and nine months ended September 30, 2019 and 2018 is as follows:



Revenues by segment	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2019		2018		2019			2018

Medical Devices	$	8,076	$	6,615	$	22,224		$	17,479
Strategic Positions	—		—		—			—
Pharmaceutical	12,269		17,772		42,644			61,993
Income Generating Assets	23,820		43,511		(4,316		)	73,519
Total revenues	$	44,165	$	67,898	$	60,552		$	152,991



(Loss) income by segment	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2019			2018			2019			2018

Medical Devices	$	(3,323	)	$	(934	)	$	(6,216	)	$	(3,425	)
Strategic Positions	(4,738		)	—			14,306			—
Pharmaceutical	(2,123		)	4,132			3,177			(108,916		)
Income Generating Assets	(7,600		)	22,358			(26,790		)	27,203
Total net (loss) income	$	(17,784	)	$	25,556		$	(15,523	)	$	(85,138	)

Information regarding the Company’s segments as of September 30, 2019 and December 31, 2018 is as follows:



Long-lived assets by segment
(in thousands)	September 30, 2019		December 31, 2018

Medical Devices	$	2,387	$	3,545
Strategic Positions	—		—
Pharmaceutical	4,051		3,682
Income Generating Assets	138		160
Total long-lived assets	$	6,576	$	7,387

The operations for the Medical Devices segment are primarily located in the United States and the operations for the Pharmaceutical segment are primarily located in Italy, Ireland and the United States.

Inventory (Notes)

9 Months Ended

Sep. 30, 2019

Inventory [Abstract]

Inventory Disclosure [Text Block]

4. Inventories

Inventories consisted of the following:



(in thousands)	September 30, 2019		December 31, 2018

Raw materials	$	6,132	$	6,214
Work in process	3,087		549
Finished goods	11,723		12,179
Total inventory	$	20,942	$	18,942

As of September 30, 2019 and December 31, 2018, the Company deferred approximately $0.1 million and $0.5 million, respectively, of costs associated with inventory transfers made under the Company’s third-party logistic provider service arrangement. These costs have been recorded as Prepaid and other current assets on the Company’s Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018. The Company will recognize the cost of product sold as inventory is transferred from its third-party logistics provider to the Company’s customers.

Stockholders' Equity (Notes)	9 Months Ended
Stockholders' Equity (Notes)	Sep. 30, 2019
Stockholders' Equity Attributable to Parent [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	13. Stockholders’ Equity Stock Repurchase Program On September 25, 2017, the Company announced that its board of directors authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $25.0 million pursuant to a share repurchase program. The repurchases under the share repurchase program were made from time to time in the open market or in privately negotiated transactions and were funded from the Company’s working capital. All shares of common stock repurchased under this share repurchase program were retired and restored to authorized but unissued shares of common stock. The Company repurchased 8.7 million shares of its common stock under the share repurchase program during the fiscal year ended December 31, 2018, for an aggregate purchase price of $25.0 million, or an average cost of $2.86 per share, including trading commissions. On September 24, 2018, the Company announced that its board of directors authorized the repurchase of issued and outstanding shares of the Company’s common stock having an aggregate value of up to $100.0 million pursuant to a share repurchase program. The Company repurchased 22.4 million shares of its common stock under this share repurchase program during the nine months ended September 30, 2019, for an aggregate purchase price of $74.5 million, or an average cost of $3.33 per share, including trading commissions. Since the inception of this share repurchase program through September 30, 2019, the Company has repurchased 31.0 million shares for an aggregate purchase price of $100.0 million, or an average cost of $3.22 per share, including trading commissions. All shares of common stock repurchased under this share repurchase program were retired and restored to authorized but unissued shares of common stock. This program was completed in July 2019.

Revenue from Contracts with Customers (Notes)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customers [Abstract]

Revenue from Contract with Customer [Text Block]

15. Revenue from Contracts with Customers

Revenue

Nature of Goods and Services

The following is a description of principal activities - separated by reportable segments - from which the Company generates its revenue. For more detailed information about reportable segments, see Note 16, Segment Information.

Medical Devices

The Medical Devices segment principally generates revenue from the sale and lease of the LENSAR^®Laser System, which may include equipment, PIDs or consumables, procedure licenses, training, installation, warranty and maintenance agreements.

For bundled packages, the Company accounts for individual products and services separately if they are distinct - i.e. if a product or service is separately identifiable from other items in the bundled package and if the customer can benefit from it on its own or with other resources that are readily available to the customer. The LENSAR^® Laser System, standard warranty training and installation services are one performance obligation. All other elements are separate performance obligations. PIDs, procedure licenses, warranty and maintenance services are also sold on a stand-alone basis.

As the Company both sells and leases the LENSAR^®Laser System, the consideration (including any discounts) is first allocated between lease and non-lease components and then allocated between the separate products and services based on their stand-alone selling prices. The stand-alone selling prices for the PIDs and procedure licenses are determined based on the prices at which the Company separately sells the PIDs and procedure licenses. The LENSAR^®Laser System and warranty stand-alone selling prices are determined using the expected cost plus a margin approach.

For LENSAR^®Laser System sales, the Company recognizes Product revenue when a customer takes possession of the system. This usually occurs after the customer signs a contract, LENSAR installs the system, and LENSAR performs the requisite training for use of the system. For LENSAR^®Laser System leases, the Company recognized Product revenue over the length of the lease in accordance with ASC Topic 840, Leases, through December 31, 2018 and recognized Product revenue in accordance with ASC Topic 842, Leases, after January 1, 2019. For additional information regarding accounting for leases, see Note 7, Leases.

The LENSAR^®Laser System requires both a consumable and a procedure license to perform each procedure. The Company recognizes Product revenue for PIDs when the customer takes possession of the PID. PIDs are sold by the case. The Company recognizes Product revenue for procedure licenses when a customer purchases a procedure license from the web portal. Typically, consideration for PIDs and procedure licenses is considered fixed consideration except for certain customer agreements that provide for tiered volume discount pricing which is considered variable consideration.

The Company offers an extended warranty that provides additional services beyond the standard warranty. The Company recognizes Product revenue from the sale of extended warranties over the warranty period. Customers have the option of renewing the warranty period, which is considered a new and separate contract.

Pharmaceutical

The Company’s Pharmaceutical segment consists of revenue derived from the Noden Products.

The agreement between Novartis and Noden DAC provides for various transition periods for development and commercialization activities relating to the Noden Products. Initially, Novartis distributed the Noden Products on behalf of Noden DAC worldwide and Noden DAC received a profit transfer on such sales. Generally, the profit transfer to Noden DAC was defined as gross revenues less product cost and a low single-digit percentage fee to Novartis. The profit transfer terminated upon the transfer of the marketing authorization from Novartis to Noden DAC in each country. In the United States, the duration of the profit transfer ran from July 1, 2016 through October 4, 2016. Outside the United States, the profit transfer ended in the first quarter of 2018.

Prior to the transfer of the marketing authorization, revenue was presented on a “net” basis; after the transfer of the marketing authorization, revenue is presented on a “gross” basis, meaning product costs are reported separately and there is no fee to Novartis. Except for the sales outside of the United States preceding the final profit transfer that occurred in the first quarter of 2018, revenues of the Noden Products for the periods herein are presented on a gross basis.

Noden USA launched an authorized generic of Tekturna in the United States in March 2019.

The Pharmaceutical segment principally generates revenue from products sold to wholesalers and distributors. Customer orders are generally fulfilled within a few days of receipt resulting in minimal order backlog. Contractual performance obligations are usually limited to transfer of the product to the customer. The transfer occurs either upon shipment or upon receipt of the product in certain countries outside the United States after considering when the customer obtains control of the product. In addition, in some countries outside of the United States, the Company sells product on a consignment basis where control is not transferred until the customer resells the product to an end user. At these points, customers are able to direct the use of and obtain substantially all of the remaining benefits of the product.

Sales to customers are initially invoiced at contractual list prices. Payment terms are typically 30 to 90 days based on customary practice in each country. Revenue is reduced from the list price at the time of recognition for expected chargebacks, discounts, rebates, sales allowances and product returns, which are collectively referred to as gross-to-net adjustments. These reductions are attributed to various commercial agreements, managed healthcare organizations and government programs such as Medicare, Medicaid, and the 340B Drug Pricing Program containing various pricing implications such as mandatory discounts, pricing protection below wholesaler list price and other discounts when Medicare Part D beneficiaries are in the coverage gap. These various reductions in the transaction price have been estimated using either a most likely amount, in the case of prompt pay discounts, or expected value method for all other variable consideration and have been reflected as liabilities and are settled through cash payments, typically within time periods ranging from a few months to one year. Significant judgment is required in estimating gross-to-net adjustments considering legal interpretations of applicable laws and regulations, historical experience, payer channel mix, current contract prices under applicable programs, unbilled claims, processing time lags and inventory levels in the distribution channel.

For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front license fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition.

Income Generating Assets

For licenses of intellectual property, if the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from non-refundable, up-front fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license.

In January 2018, DFM, LLC, a wholly-owned subsidiary of the Company, granted an exclusive license related to certain Direct Flow Medical, Inc. assets in exchange for $0.5 million in cash and up to $2.0 million in royalty payments. The $0.5 million payment was accounted for in accordance with ASC 606 under which the full cash payment was recognized as revenue in the first quarter of 2018 as DFM, LLC had fulfilled its performance obligation under the agreement. In September 2019, the remaining assets of DFM, LLC were sold for $5.0 million.

Disaggregation of Revenue

The Company disaggregates its revenue from contracts with customers by segment and geographic location as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. In the following table, revenue is disaggregated by segment and primary geographical market for the three and nine months ended September 30, 2019 and 2018:



	Three Months Ended				Three Months Ended
	September 30, 2019				September 30, 2018
(in thousands)	Medical Devices		Pharmaceutical		Medical Devices		Pharmaceutical

Primary geographical markets:
North America	$	2,779	$	6,119	$	2,315	$	10,036
Europe	699		5,496		565		5,810
Asia	3,178		654		2,158		1,926
Other	68		—		65		—
Total revenue from contracts with customers⁽¹⁾	$	6,724	$	12,269	$	5,103	$	17,772



	Nine Months Ended				Nine Months Ended
	September 30, 2019				September 30, 2018
(in thousands)	Medical Devices		Pharmaceutical		Medical Devices		Pharmaceutical

Primary geographical markets:
North America	$	7,066	$	21,295	$	4,634	$	31,743
Europe	2,421		16,532		1,859		18,172
Asia	8,540		4,817		4,915		12,078
Other	253		—		285		—
Total revenue from contracts with customers⁽¹⁾	$	18,280	$	42,644	$	11,693	$	61,993

_______________

⁽¹⁾

The tables above do not include lease revenue from the Company’s Medical Devices segment. For the three-month periods ended September 30, 2019 and 2018, revenue accounted for under Topic 842 and 840, Leases, was $1.3 million and $1.5 million, respectively and for the nine-month periods ended September 30, 2019 and 2018 was $3.9 million and $5.8 million, respectively. For additional information, see Note 7, Leases.

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:



(in thousands)	September 30, 2019		December 31, 2018

Receivables, net	$	12,581	$	20,655
Contract assets	$	3,849	$	2,595
Contract liabilities	$	4,901	$	8,938

Receivables, Net—Receivables, net, include amounts billed and due from customers. The amounts due are stated at their net estimated realizable value and are classified as current or noncurrent based on the timing of when the Company expects to receive payment. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable.

Contract assets—The Company’s contract assets represent revenue recognized for performance obligations completed before an unconditional right to payment exists, and therefore invoicing or associated reporting from the customer regarding the computation of the net product sales has not yet occurred. The Company classifies contract assets in Prepaid and other current assets in the Company’s Condensed Consolidated Balance Sheets based on the timing of when it expects to receive payment.



(in thousands)	Medical Devices		Pharmaceutical			Total

Contract assets at December 31, 2018	$	—	$	2,595		$	2,595
Contract assets recognized	—		(6,631		)	(6,631		)
Payments received	—		7,885			7,885
Contract assets at September 30, 2019	$	—	$	3,849		$	3,849

Contract Liabilities—The Company’s contract liabilities consist of deferred revenue for products sold to customers for which the performance obligation has not been completed by the Company. The Company classifies deferred revenue as current or noncurrent based on the timing of when it expects to recognize revenue. The noncurrent portion of deferred revenue is included in Other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets.



(in thousands)	Medical Devices			Pharmaceutical			Total

Contract liabilities at December 31, 2018	$	1,167		$	7,771		$	8,938
Contract liabilities recognized	788			2,903			3,691
Amounts recognized into revenue	(841		)	(6,887		)	(7,728		)
Contract liabilities at September 30, 2019	$	1,114		$	3,787		$	4,901

Transaction Price Allocated to Future Performance Obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.



	Three Months Ended
(in thousands)	December 31, 2019		Thereafter		Total

Medical device sales	$	1,484	$	9,444	$	10,928
Pharmaceutical product sales	$	58	$	2,326	$	2,384

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with original expected lengths of one year or less or (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for the products delivered or services performed.

Leases (Notes)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Lessee, Operating Leases [Text Block]

7. Leases

Lessee arrangements

The Company has operating leases for corporate offices and certain equipment. The Company’s operating leases have remaining lease terms ranging from one to seven years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within three years.

The components of lease expense are as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2019		2018		2019		2018

Operating lease cost	$	234	$	289	$	701	$	898
Short-term lease cost	53		13		97		37
Total lease cost	$	287	$	302	$	798	$	935

Supplemental cash flow information related to leases is as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2019		2018		2019		2018

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	235	$	289	$	685	$	898
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases	$	—	N/A		$	2,111	N/A

_______________

N/A Not applicable

The following table presents the lease balances within the Condensed Consolidated Balance Sheet, weighted-average remaining lease term, and weighted-average discount rates related to the Company’s operating leases (in thousands):



Operating Leases	Classification	September 30, 2019

Operating lease ROU assets	Other assets	$	1,439

Operating lease liabilities, current	Accrued liabilities	$	723
Operating lease liabilities, long-term	Other long-term liabilities	751
Total operating lease liabilities	Total operating lease liabilities	$	1,474

Weighted-average remaining lease term		1.75 years
Weighted-average discount rate		6		%

Maturities of operating lease liabilities as of September 30, 2019 are as follows (in thousands):



Fiscal Year	Amount

2019 (Remaining three months)	$	235
2020	833
2021	470
2022	—
2023	—
Thereafter	—
Total operating lease payments	1,538
Less: imputed interest	64
Total operating lease liabilities	$	1,474

Future minimum operating lease payments as of December 31, 2018 were as follows (in thousands):



Fiscal Year	Amount

2019	$	1,140
2020	1,003
2021	559
2022	—
2023	—
Thereafter	—
Total	$	2,702

As of September 30, 2019, the Company had no additional significant operating or finance leases that had not yet commenced.

Lessor arrangements

The Company has operating and sales-type leases for medical device equipment generated from its medical devices segment. The Company’s leases have remaining lease terms of less than one year to five years, some of which include options to extend the leases on a month-to-month basis if the customer does not notify the Company of the intention to return the equipment at the end of the lease term. The Company typically does not offer options to terminate the leases before the end of the lease term.

The components of lease income are as follows:



		Three Months Ended						Nine Months Ended
		September 30,						September 30,
(in thousands)	Classification	2019			2018			2019			2018

Sales-type lease selling price	Product revenue, net	$	217		$	417		$	217		$	568
Cost of underlying asset		(34		)	(208		)	(34		)	(266		)
Operating profit		$	183		$	209		$	183		$	302

Interest income on the lease receivable	Interest and other income, net	$	12		$	12		$	38		$	37

Initial direct costs incurred	Operating expense	$	(14	)	$	(23	)	$	(14	)	$	(31	)

Operating lease Income	Product revenue, net	$	1,351		$	1,511		$	3,943		$	5,787

Net investment in sales-type leases are as follows:



(in thousands)	Classification	September 30, 2019		December 31, 2018

Lease payment receivable, current	Accounts receivable, net and Notes receivable, current	$	468	$	533
Lease payment receivable, long-term	Notes receivable, long-term and Other assets	691		475
Total lease payment receivable		$	1,159	$	1,008

Equipment under lease is stated at cost less accumulated depreciation and is classified as “Property and equipment, net” on the Condensed Consolidated Balance Sheets. Depreciation is computed using the straight-line method over an estimated useful life of the greater of the lease term or five years to ten years. Equipment under lease is as follows:



(in thousands)	September 30, 2019			December 31, 2018

Equipment under lease	$	6,314		$	6,529
Less accumulated depreciation	(4,818		)	(3,665		)
Equipment under lease, net	$	1,496		$	2,864

Maturities of sales-type lease receivables as of September 30, 2019 are as follows (in thousands):



Fiscal Year	Amount

2019 (Remaining three months)	$	143
2020	475
2021	279
2022	230
2023	112
Thereafter	—
Total undiscounted cash flows	1,239
Present value of lease payments (recognized as lease receivables)	1,159
Difference between undiscounted and discounted cash flows	$	80

Maturities of operating lease receivables as of September 30, 2019 are as follows (in thousands):



Fiscal Year	Amount

2019 (Remaining three months)	$	697
2020	1,979
2021	895
2022	266
2023	81
Thereafter	—
Total undiscounted cash flows	$	3,918

Investment in Evofem (Notes)	9 Months Ended
Investment in Evofem (Notes)	Sep. 30, 2019
Investments, Equity Securities [Abstract]
Investment in Evofem [Text Block]	2. Investment in Evofem Biosciences, Inc. Equity Investment in Evofem Biosciences, Inc. On April 10, 2019, the Company entered into a securities purchase agreement with Evofem and two other purchasers, pursuant to which the Company purchased $60.0 million of Evofem securities in a private placement. The transaction was structured in two tranches. The first tranche closed on April 11, 2019, pursuant to which the Company invested $30.0 million to purchase 6,666,667 shares of Evofem common stock at $4.50 per share and was also issued warrants to purchase up to 1,666,667 shares of Evofem common stock exercisable for seven years beginning six months after the issuance date at an exercise price of $6.38 per share. The second tranche closed on June 10, 2019, pursuant to which the Company invested an additional $30.0 million to purchase an additional 6,666,667 shares of Evofem common stock at $4.50 per share and was also issued warrants to purchase up to an additional 1,666,667 shares of Evofem common stock with the same terms as the warrants issued in the first tranche. Following the closing of the second tranche, the Company appointed one member to Evofem’s Board of Directors and has a limited right to have one board observer participate in Evofem board meetings. The Company has registration rights on customary terms for all Evofem shares issued under the securities purchase agreement, including the shares underlying the warrants. As of September 30, 2019, the Company owned approximately 29% of Evofem’s common stock. The Company’s investment in Evofem qualifies for equity method accounting given its percentage ownership in Evofem and the ability to exercise significant influence. The Company elected the fair value method to account for its investment in Evofem as it believes it better reflects economic reality, the financial reporting of the investment and the current value of the asset. Changes in fair value of the Evofem equity investment are presented in Non-operating (expense) income, net on the Condensed Consolidated Statements of Operations. Because the mark to market valuation will occur at the end of each quarterly reporting period, changes in fair value will vary based upon the volatility of the stock price. The Evofem equity investment is presented on the Condensed Consolidated Balance Sheet as an Investment in equity affiliate and reflects the fair value of the equity investment at the end of the reporting period. For the three months ended September 30, 2019, the Company recognized an unrealized loss of $27.4 million, of which $21.4 million was related to Evofem common stock and $6.0 million was related to Evofem warrants. For the nine months ended September 30, 2019, the Company recognized an unrealized gain of $18.1 million, of which $16.6 million was related to Evofem common stock and $1.5 million was related to Evofem warrants. The latest Evofem financial statements can be found on their corporate website at www.evofem.com or filed with the SEC at www.sec.gov.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation, Policy

Basis of Presentation


•	The Company’s Medical Devices segment consists of revenue derived from the LENSAR^® Laser System sales made by the Company’s subsidiary, LENSAR, Inc. (“LENSAR”), which may include equipment, Patient Interface Devices (“PIDs” or “consumables”), procedure licenses, training, installation, warranty and maintenance agreements.

•


•	The Company’s Income Generating Assets segment consists of revenue derived from (i) royalty rights - at fair value, (ii) notes and other long-term receivables, (iii) equity investments and (iv) royalties from issued patents in the United States and elsewhere covering the humanization of antibodies (“Queen et al. patents”).

Significant Accounting Policies

New Accounting Pronouncements, Policy [Policy Text Block]

Adopted Accounting Pronouncements

Leases

Policy Elections and Practical Expedients Taken

The Company adopted a policy of expensing short-term leases, defined as 12 months or less, as incurred.

General

Lessee arrangements

Lessor arrangements

The Company leases medical device equipment to customers in both operating lease and sales-type lease arrangements generated from its Medical Devices segment.

Leases are generally not cancellable until after an initial term and may or may not require the customer to purchase a minimum number of procedures and consumables throughout the contract term.

Intangibles-Goodwill and Other

Recently Issued Accounting Pronouncements

Net Income per Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule of calculation of numerator and denominator in earnings per share



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
Net (Loss) Income per Basic and Diluted Share	2019			2018		2019			2018
(in thousands, except per share amounts)
Numerator
(Loss) income attributable to PDL’s shareholders used to compute net (loss) income per basic and diluted share	$	(17,784	)	$	25,556	$	(15,523	)	$	(85,138	)

Denominator
Total weighted-average shares used to compute net (loss) income attributable to PDL’s shareholders, per basic share	112,986			143,171		119,966			147,159
Restricted stock	—			1,053		—			—
Shares used to compute net (loss) income attributable to PDL’s shareholders, per diluted share	112,986			144,224		119,966			147,159

Net (loss) income attributable to PDL’s shareholders per share - basic	$	(0.16	)	$	0.18	$	(0.13	)	$	(0.58	)
Net (loss) income attributable to PDL’s shareholders per share - diluted	$	(0.16	)	$	0.18	$	(0.13	)	$	(0.58	)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

The following table represents significant unobservable inputs used in determining the estimated fair value of impaired notes receivable investments:



Asset	Valuation Technique	Unobservable Input	September 30, 2019	December 31, 2018

Wellstat Diagnostics
Wellstat Guarantors intellectual property	Income Approach
		Discount rate	12%	12%
		Royalty amount	$21 million	$21 million
Settlement Amount	Income Approach
		Discount rate	15%	15%
		Settlement amount	$28 million	$34 million

Real Estate Property	Market Approach
		Annual appreciation rate	4%	4%
		Estimated realtor fee	6%	6%
		Estimated disposal date	3/31/2020	9/30/2019

CareView
Note receivable cash flows	Income Approach
		Discount rate	30%	30%

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following tables summarize the changes in Level 3 Royalty Right Assets and the gains and losses included in earnings for the nine months ended September 30, 2019:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Rights Assets

(in thousands)			Royalty Rights - At Fair Value
Fair value as of December 31, 2018						$	376,510

	Total net change in fair value for the period
		Change in fair value of royalty rights - at fair value	$	(4,277	)
		Proceeds from royalty rights - at fair value	$	(58,290	)
		Total net change in fair value for the period				(62,567		)

Fair value as of September 30, 2019						$	313,943



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Royalty Rights Assets

	Fair Value as of		Royalty Rights -			Fair Value as of
(in thousands)	December 31, 2018		Change in Fair Value			September 30, 2019

Assertio (Depomed)	$	264,371	$	599		$	264,970
VB	14,108		354			14,462
U-M	25,595		(4,379		)	21,216
AcelRx	70,380		(57,650		)	12,730
KYBELLA	2,056		(1,491		)	565
	$	376,510	$	(62,567	)	$	313,943

The following table summarizes the changes in Level 3 Liabilities and the gains and losses included in earnings for the nine months ended September 30, 2019:



Fair Value Measurements Using Significant Unobservable Inputs (Level 3) - Liabilities

(in thousands)		Contingent Consideration
Fair value as of December 31, 2018		$	(1,071	)

	Financial instruments purchased	—
	Settlement of financial instrument⁽¹⁾	1,071

Fair value as of September 30, 2019		$	—

Schedule of fair value of financial instruments measured on recurring basis



	September 30, 2019								December 31, 2018
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

Financial assets:
Money market funds	$	230,231	$	—	$	—	$	230,231	$	226,719	$	—	$	—	$	226,719
Corporate securities⁽¹⁾	67,200		—		—		67,200		—		—		—		—
Warrants⁽²⁾	—		10,923		—		10,923		—		62		—		62
Royalty rights - at fair value	—		—		313,943		313,943		—		—		376,510		376,510
Total	$	297,431	$	10,923	$	313,943	$	622,297	$	226,719	$	62	$	376,510	$	603,291

Financial liabilities:
Contingent consideration, current⁽³⁾	$	—	$	—	$	—	$	—	$	—	$	—	$	1,071	$	1,071
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	1,071	$	1,071

Schedule of fair value of assets and liabilities not subject to fair value recognition by level within the valuation hierarchy

ollows:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(in thousands)	2019		2018			2019			2018

Total change in fair value for the period included in earnings for royalty right assets held at the end of the reporting period	$	23,865	$	42,184		$	(4,277	)	$	66,117

Total change in fair value for the period included in earnings for liabilities held at the end of the reporting period	$	—	$	(302	)	$	—		$	22,433

Assets/Liabilities Measured and Recorded at Fair Value on a Nonrecurring Basis

Assets/Liabilities Not Subject to Fair Value Recognition

The following tables present the fair value of assets and liabilities not subject to fair value recognition by level within the valuation h

Convertible Notes (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of carrying value and unamortized discount on December 2021 Notes [Table Text Block]

The carrying value and unamortized discount of the December 2021 Notes were as follows:



(in thousands)	September 30, 2019			December 31, 2018

Principal amount of the December 2021 Notes	$	63,947		$	150,000
Unamortized discount of liability component	(8,295		)	(25,356		)
Net carrying value of the December 2021 Notes	$	55,652		$	124,644

Schedule of convertible and non-recourse notes activity



		Principal Balance Outstanding		Carrying Value
		September 30,		September 30,		December 31,
Description	Maturity Date	2019		2019		2018
(in thousands)
Convertible Senior Notes
December 2021 Notes	December 1, 2021	$	63,947	$	55,652	$	124,644
December 2024 Notes	December 1, 2024	86,053		$	76,832	—
Total		$	150,000	$	132,484	$	124,644

Schedule of carrying value and unamortized discount on February 2018 Notes [Table Text Block]

Schedule of interest expense for February 2018 Notes [Table Text Block]

Interest expense for the February 2018 Notes on the Company’s Condensed Consolidated Statements of Operations was as follows:



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
(in thousands)	2018		2018

Contractual coupon interest	$	—	$	421
Amortization of debt issuance costs	—		88
Amortization of debt discount	—		293
Total	$	—	$	802

Schedule of interest expense for December 2021 Notes [Table Text Block]

Interest expense for the December 2021 Notes included in the Company’s Condensed Consolidated Statements of Operations was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2019		2018		2019		2018

Contractual coupon interest	$	939	$	1,031	$	3,002	$	3,095
Amortization of debt issuance costs	17		19		57		57
Amortization of debt discount	130		136		406		405
Amortization of conversion feature	1,692		1,680		5,252		4,903
Total	$	2,778	$	2,866	$	8,717	$	8,460

Customer Concentration (Tables)

9 Months Ended

Sep. 30, 2019

Customer Concentration [Abstract]

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

The percentage of total revenue recognized, which individually accounted for 10% or more of the Company’s total revenues in one or more of the periods presented below, was as follows:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019⁽¹⁾	2018
LENSAR	18%	10%	19%	11%
Noden	27%	26%	36%	41%
Assertio	55%	72%	45%	43%

^{___________________}


⁽¹⁾	For the nine months ended September 30, 2019, the AcelRx royalty asset decrease in fair value of $57.7 million, is excluded from total revenue when calculating product line concentration.

Intangibles and Goodwill (Tables)

9 Months Ended

Sep. 30, 2019

Acquired Finite-Lived Intangible Assets [Line Items]

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

The components of intangible assets as of September 30, 2019 and December 31, 2018 were as follows:



	September 30, 2019							December 31, 2018
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount

Finite-lived intangible assets:
Acquired products rights⁽¹⁾	$	36,143	$	(5,647	)	$	30,496	$	36,143	$	(2,258	)	$	33,885
Customer relationships^{(1) (2) (4)}	8,028		(1,420		)	6,608		8,028		(782		)	7,246
Acquired technology^{(2) (3) (5)}	11,500		(1,549		)	9,951		11,011		(1,203		)	9,808
Acquired trademarks⁽²⁾	570		(276		)	294		570		(190		)	380
	$	56,241	$	(8,892	)	$	47,349	$	55,752	$	(4,433	)	$	51,319

________________


⁽¹⁾	The Company acquired certain intangible assets as part of the Noden transaction. They are being amortized on a straight-line basis over a weighted-average period of eight years.


⁽²⁾	The Company acquired certain intangible assets as part of its acquisition of LENSAR in May 2017. They are being amortized on a straight-line basis over a weighted-average period of 15 years. The intangible assets for customer relationships are being amortized using a double-declining method of amortization as such method better represents the economic benefits to be obtained.

⁽³⁾

Segment Information (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Information regarding the Company’s segments for the three and nine months ended September 30, 2019 and 2018 is as follows:



Revenues by segment	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2019		2018		2019			2018

Medical Devices	$	8,076	$	6,615	$	22,224		$	17,479
Strategic Positions	—		—		—			—
Pharmaceutical	12,269		17,772		42,644			61,993
Income Generating Assets	23,820		43,511		(4,316		)	73,519
Total revenues	$	44,165	$	67,898	$	60,552		$	152,991



(Loss) income by segment	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2019			2018			2019			2018

Medical Devices	$	(3,323	)	$	(934	)	$	(6,216	)	$	(3,425	)
Strategic Positions	(4,738		)	—			14,306			—
Pharmaceutical	(2,123		)	4,132			3,177			(108,916		)
Income Generating Assets	(7,600		)	22,358			(26,790		)	27,203
Total net (loss) income	$	(17,784	)	$	25,556		$	(15,523	)	$	(85,138	)

Information regarding the Company’s segments as of September 30, 2019 and December 31, 2018 is as follows:



Long-lived assets by segment
(in thousands)	September 30, 2019		December 31, 2018

Medical Devices	$	2,387	$	3,545
Strategic Positions	—		—
Pharmaceutical	4,051		3,682
Income Generating Assets	138		160
Total long-lived assets	$	6,576	$	7,387

Inventory (Tables)

9 Months Ended

Sep. 30, 2019

Inventory [Line Items]

Schedule of Inventory, Current [Table Text Block]

Inventories consisted of the following:



(in thousands)	September 30, 2019		December 31, 2018

Raw materials	$	6,132	$	6,214
Work in process	3,087		549
Finished goods	11,723		12,179
Total inventory	$	20,942	$	18,942

Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contracts with Customers [Abstract]

Disaggregation of Revenue [Table Text Block]

disaggregates its revenue from contracts with customers by segment and geographic location as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. In the following table, revenue is disaggregated by segment and primary geographical market for the three and nine months ended September 30, 2019 and 2018:



	Three Months Ended				Three Months Ended
	September 30, 2019				September 30, 2018
(in thousands)	Medical Devices		Pharmaceutical		Medical Devices		Pharmaceutical

Primary geographical markets:
North America	$	2,779	$	6,119	$	2,315	$	10,036
Europe	699		5,496		565		5,810
Asia	3,178		654		2,158		1,926
Other	68		—		65		—
Total revenue from contracts with customers⁽¹⁾	$	6,724	$	12,269	$	5,103	$	17,772



	Nine Months Ended				Nine Months Ended
	September 30, 2019				September 30, 2018
(in thousands)	Medical Devices		Pharmaceutical		Medical Devices		Pharmaceutical

Primary geographical markets:
North America	$	7,066	$	21,295	$	4,634	$	31,743
Europe	2,421		16,532		1,859		18,172
Asia	8,540		4,817		4,915		12,078
Other	253		—		285		—
Total revenue from contracts with customers⁽¹⁾	$	18,280	$	42,644	$	11,693	$	61,993

_______________


⁽¹⁾	The tables above do not include lease revenue from the Company’s Medical Devices segment. For the three-month periods ended September 30, 2019 and 2018, revenue accounted for under Topic 842 and 840, Leases, was $1.3 million and $1.5 million, respectively and for the nine-month periods ended September 30, 2019 and 2018 was $3.9 million and $5.8 million, respectively.

Contract with Customer, Asset and Liability [Table Text Block]

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:



(in thousands)	September 30, 2019		December 31, 2018

Receivables, net	$	12,581	$	20,655
Contract assets	$	3,849	$	2,595
Contract liabilities	$	4,901	$	8,938



(in thousands)	Medical Devices		Pharmaceutical			Total

Contract assets at December 31, 2018	$	—	$	2,595		$	2,595
Contract assets recognized	—		(6,631		)	(6,631		)
Payments received	—		7,885			7,885
Contract assets at September 30, 2019	$	—	$	3,849		$	3,849



(in thousands)	Medical Devices			Pharmaceutical			Total

Contract liabilities at December 31, 2018	$	1,167		$	7,771		$	8,938
Contract liabilities recognized	788			2,903			3,691
Amounts recognized into revenue	(841		)	(6,887		)	(7,728		)
Contract liabilities at September 30, 2019	$	1,114		$	3,787		$	4,901

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]



	Three Months Ended
(in thousands)	December 31, 2019		Thereafter		Total

Medical device sales	$	1,484	$	9,444	$	10,928
Pharmaceutical product sales	$	58	$	2,326	$	2,384

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Lease, Cost [Table Text Block]

The components of lease expense are as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2019		2018		2019		2018

Operating lease cost	$	234	$	289	$	701	$	898
Short-term lease cost	53		13		97		37
Total lease cost	$	287	$	302	$	798	$	935

Supplemental cash flow information related to leases is as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2019		2018		2019		2018

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	235	$	289	$	685	$	898
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases	$	—	N/A		$	2,111	N/A

_______________

N/A Not applicable



Operating Leases	Classification	September 30, 2019

Operating lease ROU assets	Other assets	$	1,439

Operating lease liabilities, current	Accrued liabilities	$	723
Operating lease liabilities, long-term	Other long-term liabilities	751
Total operating lease liabilities	Total operating lease liabilities	$	1,474

Weighted-average remaining lease term		1.75 years
Weighted-average discount rate		6		%

Maturities of operating lease liabilities as of September 30, 2019 are as follows (in thousands):



Fiscal Year	Amount

2019 (Remaining three months)	$	235
2020	833
2021	470
2022	—
2023	—
Thereafter	—
Total operating lease payments	1,538
Less: imputed interest	64
Total operating lease liabilities	$	1,474

Future minimum operating lease payments as of December 31, 2018 were as follows (in thousands):



Fiscal Year	Amount

2019	$	1,140
2020	1,003
2021	559
2022	—
2023	—
Thereafter	—
Total	$	2,702

As of September 30, 2019, the Company had no additional significant operating or finance leases that had not yet commenced.

Summary of Significant Accounting Policies (Narrative) (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2019	Jan. 02, 2019 USD ($)
Number of Reportable Segments	4
Operating Lease, Right-of-Use Asset		$ 2.1
Operating Lease, Liability		$ 2.1
Maximum term of short-term lease expensed via exemption	12 months

Net Income per Share (Narrative) (Detail) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Mar. 31, 2018	Nov. 22, 2016	Nov. 20, 2015	Feb. 12, 2014
Restricted Stock [Member]
Debt Instrument [Line Items]
Antidilutive securities excluded from computation of earnings per share (in Shares)	1.0	1.3	0.0	2.3
Option on Securities [Member]
Debt Instrument [Line Items]
Antidilutive securities excluded from computation of earnings per share (in Shares)	12.6	7.6	0.0	7.6
February 2018 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage						4.00%
Convertible notes									$ 300,000
December 2021 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage							2.75%
Convertible notes	$ 55,652		$ 55,652		$ 124,644		$ 150,000	$ 150,000

Net Income per Share (Net Income Per Basic and Diluted Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator
Income used to compute net income per diluted share	$ (17,784)	$ 25,556	$ (15,523)	$ (85,138)
Denominator
Total weighted-average shares used to compute net income per basic share (in Shares)	112,986	143,171	119,966	147,159
Diluted (in Shares)	112,986	144,224	119,966	147,159
Basic (in Dollars per Share)	$ (0.16)	$ 0.18	$ (0.13)	$ (0.58)
Net income per diluted share (in Dollars per Share)	$ (0.16)	$ 0.18	$ (0.13)	$ (0.58)
Restricted Stock [Member]
Debt Instrument [Line Items]
Additional shares included in the calculation of diluted EPS (in Shares)	0	1,053	0	0

Fair Value Measurements (Narrative) (Detail)
$ / shares in Units, shares in Millions

3 Months Ended

9 Months Ended

12 Months Ended

Aug. 02, 2018

USD ($)

Jul. 08, 2016

USD ($)

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

Jun. 30, 2018

USD ($)

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

Dec. 31, 2018

USD ($)

Aug. 03, 2018

USD ($)

Jun. 29, 2018

USD ($)

Jul. 09, 2016

USD ($)

Dec. 31, 2015

$ / shares

Dec. 15, 2015

Sep. 18, 2015

USD ($)

Nov. 06, 2014

USD ($)

Jun. 26, 2014

USD ($)

Oct. 18, 2013

USD ($)

Intangible Assets, Net (Excluding Goodwill)

^[1]

$ 47,349,000

$ 51,319,000

Impairment of Intangible Assets, Finite-lived

$ 0

$ 152,330,000

152,300,000

Investment Owned, at Cost

$ 6,600,000

6,600,000

Goodwill and Intangible Asset Impairment

$ 152,300,000

Cash payment for purchase of royalty right

$ 65,600,000

Purchase of royalty rights

$ 20,000,000

$ 0

20,000,000

Reversionary interest period

$ 481,000,000

Sensitivity range for royalty disclosures

2.50%

Royalty rights

$ 313,943,000

^[1]

$ 313,943,000

^[1]

376,510,000

^[2]

Transfers from level 1 to level 2, amount

Transfers from level 2 to level 1, amount

Percentage of royalty acquired

75.00%

Revenues

44,165,000

$ 67,898,000

60,552,000

$ 152,991,000

Finite-Lived Intangible Assets, Gross

56,241,000

55,752,000

Asset Impairment Charges

$ 0

$ 8,200,000

Depomed [Member]

Cash payment for purchase of royalty right

$ 240,500,000

Purchase of royalty rights

241,300,000

Royalty right purchase transaction costs

$ 800,000

Cash flow model expected royalty sales term

8 years

Sensitivity - decrease in fair value from increase in discount rate

$ (21,900,000)

(21,900,000)

Sensitivity - increase in fair value from decrease in discount rate

25,800,000

Sensitivity to increase or decrease in expected royalty

6,600,000

Royalty rights

265,000,000

Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount

$ 265,000,000

Contractual cap on potential royalty asset multiple

VB [Member]

Purchase of royalty rights

$ 15,500,000

Cash flow model expected royalty sales term

9 years

Sensitivity - decrease in fair value from increase in discount rate

$ (1,300,000)

Sensitivity - increase in fair value from decrease in discount rate

1,500,000

Sensitivity to increase or decrease in expected royalty

$ 400,000

Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate

15.00%

Royalty rights

$ 14,500,000

Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount

$ 14,500,000

Contractual cap on potential royalty asset multiple

2.3

University of Michigan [Member]

Cash flow model expected royalty sales term

3 years

Sensitivity - decrease in fair value from increase in discount rate

$ (700,000)

Sensitivity - increase in fair value from decrease in discount rate

700,000

Sensitivity to increase or decrease in expected royalty

$ 500,000

Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate

12.80%

Royalty rights

$ 21,200,000

Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount

21,200,000

Revenues

$ (3,100,000)

AcelRx [Member]

Purchase of royalty rights

$ 65,000,000

Cash flow model expected royalty sales term

13 years

Sensitivity - decrease in fair value from increase in discount rate

$ (1,200,000)

(1,200,000)

Sensitivity - increase in fair value from decrease in discount rate

1,500,000

Sensitivity to increase or decrease in expected royalty

$ 300,000

Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate

13.40%

Royalty rights

$ 12,700,000

Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount

$ 12,700,000

Percentage of royalty acquired

75.00%

Percentage of first four milestone payments acquired

80.00%

Number of potential milestone royalties

Contractual cap on potential royalty asset multiple

Revenues

$ 60,000,000

Kybella [Member]

Purchase of royalty rights

$ 9,500,000

Cash flow model expected royalty sales term

6 years

Sensitivity - increase in fair value from decrease in discount rate

$ 100,000

100,000

Sensitivity to increase or decrease in expected royalty

$ 100,000

Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate

14.40%

Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount

$ 600,000

Maximum amount of additional funds, upon attainment of milestones

$ 1,000,000

Alphaeon [Member]

Investment Owned, Balance, Shares | shares

1.7

Investment estimated fair value, per share | $ / shares

$ 3.84

Noden [Member]

Intangible Assets, Net (Excluding Goodwill)

40,100,000

Finite-Lived Intangible Assets, Gross

$ 40,100,000

$ 192,500,000

Minimum [Member] | Depomed [Member]

Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate

10.00%

Maximum [Member] | Depomed [Member]

Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate

24.00%

[1]	unaudited
[2]	Note 1

Fair Value Measurements (Financial Instruments Measured at Fair Value on a Recurring Basis) (Detail) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Business Combination, Contingent Consideration, Liability, Current

$ 0

Royalty rights

313,943

^[1]

$ 376,510

^[2]

Financial assets:

Assets, Fair Value

622,297

603,291

Warrants and Rights Outstanding

10,923

Equity Securities [Member]

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Investments in and Advances to Affiliates, at Fair Value

67,200

Money Market Funds [Member]

Financial assets:

Cash and Cash Equivalents, Fair Value

230,231

226,719

Fair Value Level 1 [Member]

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Financial and Nonfinancial Liabilities, Fair Value Disclosure

Financial assets:

Assets, Fair Value

297,431

226,719

Fair Value Level 1 [Member] | Equity Securities [Member]

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Investments in and Advances to Affiliates, at Fair Value

67,200

Fair Value Level 1 [Member] | Money Market Funds [Member]

Financial assets:

Cash and Cash Equivalents, Fair Value

230,231

226,719

Fair Value Level 2 [Member]

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Financial and Nonfinancial Liabilities, Fair Value Disclosure

Financial assets:

Assets, Fair Value

10,923

Warrants and Rights Outstanding

10,923

Fair Value Level 2 [Member] | Equity Securities [Member]

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Investments in and Advances to Affiliates, at Fair Value

Fair Value Level 2 [Member] | Money Market Funds [Member]

Financial assets:

Cash and Cash Equivalents, Fair Value

Fair Value Level 3 [Member]

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Business Combination, Contingent Consideration, Liability, Current

Financial and Nonfinancial Liabilities, Fair Value Disclosure

1,071

Royalty rights

313,943

376,510

Financial assets:

Assets, Fair Value

313,943

376,510

Warrants and Rights Outstanding

Royalty right [Member]

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings

(62,567)

Contingent Consideration [Member]

Financial liabilites:

Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value

$ 1,071

VB [Member]

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Royalty rights

14,500

VB [Member] | Royalty right [Member]

Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings

$ 354

[1]	unaudited
[2]	Note 1

Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities not Subject to Fair Value Recognition) (Detail) $ in Thousands	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Assets
Notes receivable, Carrying Value	$ 62,849	$ 62,849
Liabilities:
Convertible Notes Payable, Carrying Value	132,484	124,644
December 2021 Notes [Member]
Liabilities:
Convertible Notes Payable, Carrying Value	55,652	124,644
Wellstat Note Receivable [Member]
Assets
Notes receivable, Carrying Value	50,191	50,191
Hyperion [Member]
Assets
Notes receivable, Carrying Value	1,200	1,200
CareView [Member]
Assets
Notes receivable, Carrying Value	11,458	11,458
Fair Value Level 2 [Member]
Liabilities:
Notes payable, Fair Value	143,018	151,356
Fair Value Level 2 [Member] \| December 2021 Notes [Member]
Liabilities:
Notes payable, Fair Value	61,984	151,356
Fair Value Level 2 [Member] \| Hyperion [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 2 [Member] \| CareView [Member]
Assets
Notes receivable, Fair Value	0	0
Fair Value Level 3 [Member]
Assets
Notes receivable, Fair Value	65,348	69,980
Fair Value Level 3 [Member] \| Wellstat Note Receivable [Member]
Assets
Notes receivable, Fair Value	52,690	57,322
Fair Value Level 3 [Member] \| Hyperion [Member]
Assets
Notes receivable, Fair Value	1,200	1,200
Fair Value Level 3 [Member] \| CareView [Member]
Assets
Notes receivable, Fair Value	$ 11,458	$ 11,458
Real estate appreciation [Member] \| Wellstat Diagnostics [Member]
Fair Value by Balance Sheet Grouping [Line Items]
Loans Held-for-sale, Measurement Input	0.04	0.04
Estimated realtor fee [Member] \| Wellstat Diagnostics [Member]
Fair Value by Balance Sheet Grouping [Line Items]
Loans Held-for-sale, Measurement Input	0.06	0.06
Minimum [Member] \| Measurement Input, Discount Rate [Member] \| Wellstat Diagnostics [Member]
Fair Value by Balance Sheet Grouping [Line Items]
Loans Held-for-sale, Measurement Input	0.12	0.12
Maximum [Member] \| Measurement Input, Discount Rate [Member] \| Wellstat Diagnostics [Member]
Fair Value by Balance Sheet Grouping [Line Items]
Loans Held-for-sale, Measurement Input	0.15	0.15

Fair Value Measurements Level 3 Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales			$ 0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements			1,071
Change in fair value of acquired royalty rights, Level 3 Rollforward	$ 23,865	$ 42,184	(4,277)	$ 66,117
Payments for (Proceeds from) Productive Assets			(58,290)	(57,049)
Change in fair value included in earnings for liabilities	0	$ (302)	0	$ 22,433
Contingent Consideration [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	0		0		$ (1,071)
Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance			376,510
Change in fair value of acquired royalty rights, Level 3 Rollforward			(4,277)
Ending balance	313,943		313,943
Payments for (Proceeds from) Productive Assets			(58,290)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			(62,567)
Depomed [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance			264,371
Ending balance	$ 264,970		264,970
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			$ 599
VB [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate	15.00%		15.00%
VB [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance			$ 14,108
Ending balance	$ 14,462		14,462
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			$ 354
University of Michigan [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate	12.80%		12.80%
University of Michigan [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance			$ 25,595
Ending balance	$ 21,216		21,216
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			$ (4,379)
AcelRx [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate	13.40%		13.40%
AcelRx [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance			$ 70,380
Ending balance	$ 12,730		12,730
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			$ (57,650)
Kybella [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate	14.40%		14.40%
Kybella [Member] \| Royalty right [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance			$ 2,056
Ending balance	$ 565		565
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			$ (1,491)
CareView [Member] \| Note receivable cash flows [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-Duration Contracts, Assumptions by Product and Guarantee, Discount Rate	30.00%		30.00%		30.00%
Measurement Input, Discount Rate [Member] \| Other [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance			$ 34,000
Ending balance	$ 28,000		28,000
Measurement Input, Discount Rate [Member] \| Intellectual Property [Member] \| Wellstat Diagnostics [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance			21,000
Ending balance	$ 21,000		$ 21,000

Cash Equivalents and Investments (Summary of Cash and Available-For-Sale Securities) (Detail) - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Sep. 30, 2018

^[2]

Dec. 31, 2017

^[3]

Schedule of Available-For-Sale Securities [Line Items]

Cash and cash equivalents

$ 294,270

^[1],[2]

$ 394,590

^[3]

$ 400,984

$ 527,266

Cash [Member]

Schedule of Available-For-Sale Securities [Line Items]

Cash and cash equivalents

64,039

167,871

Money Market Funds [Member]

Schedule of Available-For-Sale Securities [Line Items]

Cash and cash equivalents

$ 230,231

$ 226,719

[1]	unaudited
[2]	unaudited
[3]	Note 1

Notes Receivable and Other Long-term Receivables (Narrative) (Detail)
$ / shares in Units, $ in Thousands, shares in Millions

1 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

58 Months Ended

Jan. 08, 2018

USD ($)

Sep. 21, 2017

USD ($)

Sep. 22, 2015

USD ($)

Jun. 26, 2015

USD ($)

$ / shares

Aug. 15, 2013

USD ($)

Feb. 28, 2013

Jan. 31, 2013

USD ($)

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

Dec. 31, 2018

USD ($)

Dec. 31, 2013

USD ($)

Apr. 30, 2018

Feb. 02, 2018

$ / shares

Oct. 07, 2015

$ / shares

Sep. 30, 2014

USD ($)

Apr. 01, 2014

USD ($)

Jun. 28, 2013

USD ($)

Mar. 05, 2013

USD ($)

Nov. 02, 2012

USD ($)

Jan. 27, 2012

USD ($)

Accounts Notes And Loans Receivable [Line Items]

Revenues

$ 44,165

$ 67,898

$ 60,552

$ 152,991

Repayment of notes receivable

5,000

Accounts Receivable, Net, Noncurrent

^[1]

$ 1,400

Investment Owned, at Cost

6,600

Commitments and Contingencies

^[1]

^[2]

Financial Instruments, Owned, Other, at Fair Value

10,923

Asset Impairment Charges

$ 8,200

Wellstat Diagnostics [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing Receivable, Gross

$ 53,900

Gain Contingency, Unrecorded Amount

55,800

Financing Receivable, Net

50,200

Interest rate of note receivable (in Percent)

5.00%

Avinger [Member]

Accounts Notes And Loans Receivable [Line Items]

Repayment of notes receivable

$ 21,400

Hyperion [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing Receivable, Gross

$ 2,300

Number of payments to be received

Periodic contractual payments

$ 1,200

kaleo Note Receivable [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing Receivable, Gross

$ 150,000

Repayment of notes receivable

$ 141,700

CareView [Member]

Accounts Notes And Loans Receivable [Line Items]

Interest rate of note receivable (in Percent)

13.50%

Amount company has agreed to advance under agreement

$ 40,000

Tranche 1 of note receivable

20,000

Tranche 2 of note receivable

$ 20,000

Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares

4.4

Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares

$ 0.45

$ 0.03

$ 0.40

Financial Instruments, Owned, Other, at Fair Value

100

Credit Agreement [Member] | Wellstat Diagnostics [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing Receivable, Gross

$ 40,000

Credit agreement, stated interest rate (in Percent)

5.00%

Proceeds received under remedies available for borrower's breach of terms credit agreement

$ 8,100

Forbearance number of days under terms of credit agreement (in Duration)

120 days

Amount company has agreed to advance under agreement

$ 8,700

Financing Receivable, Modifications, Post-Modification Recorded Investment

$ 44,100

Initial Loan [Member] | Wellstat Diagnostics [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing Receivable, Modifications, Post-Modification Recorded Investment

33,700

Additional Loan [Member] | Wellstat Diagnostics [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing Receivable, Gross

$ 1,300

Royalty Agreement [Member] | Avinger [Member]

Accounts Notes And Loans Receivable [Line Items]

Reduction in royalty rate (in percent)

50.00%

Term loan and interest [Member] | Wellstat Diagnostics [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing Receivable, Modifications, Post-Modification Recorded Investment

1,300

Forbearance principal and interest [Member] | Wellstat Diagnostics [Member]

Accounts Notes And Loans Receivable [Line Items]

Financing Receivable, Modifications, Post-Modification Recorded Investment

$ 9,100

License and other [Member]

Accounts Notes And Loans Receivable [Line Items]

Revenues

$ 500

$ (45)

$ 40

$ (48)

$ 614

[1]	unaudited
[2]	Note 1

Accrued Liabilities (Narrative) (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Discount and Distribution Fees	$ 2,247	$ 3,094
Government rebates and chargebacks	3,133	8,901
Assistance and Other Discounts	1,337	3,457
Product return	3,548	4,681
Accrued liabilities, amounts received in advance of revenue recognition	10,265	$ 20,133
Allowances for current period sales	19,653
Allowances for prior period sales	2,044
Payments for current period sales	(12,713)
Payments for prior period sales	(18,852)
Discount and Distribution Fees [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Allowances for current period sales	4,122
Allowances for prior period sales	50
Payments for current period sales	(1,944)
Payments for prior period sales	(3,075)
Government Rebates and Chargebacks [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Allowances for current period sales	10,020
Allowances for prior period sales	1,841
Payments for current period sales	(7,401)
Payments for prior period sales	(10,228)
Assistance and Other Discounts [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Allowances for current period sales	4,194
Allowances for prior period sales	120
Payments for current period sales	(3,105)
Payments for prior period sales	(3,329)
Product Returns [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Allowances for current period sales	1,317
Allowances for prior period sales	33
Payments for current period sales	(263)
Payments for prior period sales	$ (2,220)

Accrued Liabilities (Accrued Liabilities) (Detail) - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Payables and Accruals [Abstract]

Compensation

$ 5,750

$ 4,468

Interest

1,375

344

Legal

740

623

Accrued liabilities, amounts received in advance of revenue recognition

10,265

20,133

Other

4,741

4,933

Total

27,653

^[1]

39,312

^[2]

Deferred Revenue, Current

$ 4,782

$ 8,811

[1]	unaudited
[2]	Note 1

Commitments and Contingencies (Narrative) (Detail) - USD ($)
$ in Thousands

9 Months Ended

Sep. 21, 2017

Sep. 30, 2019

Sep. 30, 2018

Dec. 31, 2018

Apr. 01, 2014

Guarantor Obligations [Line Items]

Proceeds from Collection of Notes Receivable

$ 5,000

$ 0

Accounts Receivable, Net, Noncurrent

^[1]

$ 1,400

Total lease payments for the duration of the guarantee

25,400

Accrued lease liability

10,700

$ 10,700

kaleo Note Receivable [Member]

Guarantor Obligations [Line Items]

Financing Receivable, Gross

$ 150,000

Proceeds from Collection of Notes Receivable

$ 141,700

Noden [Member] | Next twelve months [Member]

Guarantor Obligations [Line Items]

Purchase Obligation

54,300

Noden [Member] | Next twenty-four months [Member] [Member]

Guarantor Obligations [Line Items]

Purchase Obligation

82,700

LENSAR [Member] | Next twelve months [Member]

Guarantor Obligations [Line Items]

Purchase Obligation

$ 6,100

[1]

unaudited

Convertible Notes (Narrative) (Detail)				2 Months Ended	3 Months Ended		9 Months Ended
Convertible Notes (Narrative) (Detail)	Feb. 02, 2018 USD ($)	Nov. 21, 2016 USD ($)	Feb. 11, 2014 USD ($)	Nov. 18, 2019 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 17, 2019 USD ($) $ / shares	Dec. 31, 2018 USD ($)	Mar. 31, 2018	Nov. 22, 2016 USD ($) $ / shares	Nov. 20, 2015 USD ($)	Feb. 12, 2014 USD ($)
Debt Instrument [Line Items]
Exchange of debt					$ 86,100,000		$ 86,053,000
Cash paid per round lot to exchange debt									$ 70.00
Cash paid to exchange convertible note									6,000,000
Debt Instrument, Face Amount					150,000,000		150,000,000
Round lot of notes									1,000
Purchased call options cost								$ 0
Gain on conversion of convertible notes					3,900,000	$ 0	3,900,000	$ 0
February 2018 Notes [Member]
Debt Instrument [Line Items]
Convertible notes														$ 300,000,000
Debt Instrument, Interest Rate, Stated Percentage											4.00%
Net proceeds from the issuance of convertible notes			$ 290,200,000
Debt Instrument, Repurchase Amount												$ 120,000,000	$ 53,600,000
Repayments of Debt	$ 129,000,000
Debt Instrument, Periodic Payment, Principal	126,400,000
Debt Instrument, Periodic Payment, Interest	$ 2,600,000
December 2021 Notes [Member]
Debt Instrument [Line Items]
Convertible notes					55,652,000		55,652,000			$ 124,644,000		$ 150,000,000	$ 150,000,000
Debt Instrument, Interest Rate, Stated Percentage												2.75%
Unamortized discount of liability component					(8,295,000)		(8,295,000)			(25,356,000)		$ (4,300,000)
Warrant unwind									$ 900,000
Convertible note rate conversion trading days (in days)							0
Convertible Notes rate conversion consecutive trading days (in days)							$ 30
Debt discount recorded to additional paid in capital												23,800,000
Debt discount recorded to deferred tax liability												$ 12,800,000
Minimum conversion price percent for note conversion (in Percent)							130.00%
Maximum percent of common stock closing price and conversion rate to convert note (in Percent)							98.00%
Debt Instrument, Interest Rate, Effective Percentage												9.70%
Convertible notes, conversion price (in Dollars per Share) \| $ / shares												$ 3.81
Cap Price capped call \| $ / shares												$ 4.88
Estimated market interest rate for similar nonconvertible instrument												9.50%
Debt instrument, convertible, remaining amortization period (in Duration)							2 years 2 months 1 day
Net proceeds from the issuance of convertible notes		$ 145,700,000
Debt Instrument, Face Amount					$ 63,947,000		$ 63,947,000			150,000,000
Purchased call options cost		$ 14,400,000
December 2024 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage									2.75%
Debt instrument, accretion rate					2.375%
Unamortized discount of liability component					$ (9,300,000)		(9,300,000)		$ (9,400,000)	0
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature							8,100,000
Adjustments to Additional Paid in Capital, Other							$ 1,300,000
Debt discount recorded to additional paid in capital									5,500,000
Debt discount recorded to deferred tax liability									$ 1,200,000
Maximum percent of common stock closing price and conversion rate to convert note (in Percent)					98.00%
Debt Instrument, Interest Rate, Effective Percentage					7.50%		7.50%
Convertible notes, conversion price (in Dollars per Share) \| $ / shares									$ 3.81
Cap Price capped call \| $ / shares									$ 4.88
Estimated market interest rate for similar nonconvertible instrument									7.10%
Debt instrument, convertible, remaining amortization period (in Duration)							5 years 2 months 4 days
Repurchase price upon fundamental change as described in 2021 Notes indenture							100.00%
Debt Instrument, Face Amount					$ 86,053,000		$ 86,053,000			$ 0
Conversion Rate per $1,000 Principal Amount (in Ratio)		262.2951
Debt Instrument, Redeemable, Threshold Percentage of Stock Price Minimum					128.00%
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger					130.00%
Debt Instrument, Convertible, Threshold Consecutive Trading Days					20
Debt Instrument, Convertible, Threshold Trading Days					30
Purchased call options cost				$ 5,000,000

Convertible Notes (Summary of Convertible Notes) (Detail) $ / shares in Units, $ in Thousands		9 Months Ended
	Nov. 21, 2016	Sep. 30, 2019 USD ($)	Sep. 17, 2019 $ / shares	Dec. 31, 2018 USD ($)	Mar. 31, 2018	Nov. 22, 2016 $ / shares
Debt Instrument [Line Items]
Convertible Notes, Principal Balance Outstanding		$ 150,000
Convertible Notes Payable, Carrying Value		$ 132,484		$ 124,644
February 2018 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage					4.00%
December 2021 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage						2.75%
Convertible notes, conversion price (in Dollars per Share) \| $ / shares						$ 3.81
Convertible Notes, Maturity Date (Date)		Dec. 01, 2021
Convertible Notes, Principal Balance Outstanding		$ 63,947		150,000
Convertible Notes Payable, Carrying Value		55,652		124,644
December 2024 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage			2.75%
Debt Instrument, Convertible, Conversion Ratio	262.2951
Convertible notes, conversion price (in Dollars per Share) \| $ / shares			$ 3.81
Convertible Notes, Principal Balance Outstanding		86,053		0
Convertible Notes Payable, Carrying Value		$ 76,832		$ 0

Convertible Notes (Summary of Series 2012 Notes) (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Convertible Notes, Principal Balance Outstanding	$ 150,000
Convertible Notes Payable, Carrying Value	$ 132,484	$ 124,644

Convertible Notes (Summary of May 2015 Notes) (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 150,000
Convertible Notes Payable, Carrying Value	$ 132,484	$ 124,644

Convertible Notes Convertible Notes (Summary of February 2018 Notes) (Detail) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Feb. 12, 2014
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 150,000
February 2018 Notes [Member]
Debt Instrument [Line Items]
Convertible notes		$ 300,000

Convertible Notes Convertible Notes (Interest Expense for February 2018 Notes) (Detail) (Details) - February 2018 Notes [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Debt Instrument [Line Items]
Contractual coupon interest	$ 0	$ 421
Amortization of debt issuance costs	0	88
Amortization of debt discount	0	293
Total	$ 0	$ 802

Convertible Notes Convertible Notes (Summary of December 2021 Notes) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Nov. 22, 2016	Nov. 20, 2015
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 150,000
December 2021 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	63,947	$ 150,000
Debt Instrument, Unamortized Discount	(8,295)	(25,356)	$ (4,300)
Convertible notes	$ 55,652	$ 124,644	$ 150,000	$ 150,000

Convertible Notes Convertible Notes (Interest Expense for December 2021 Notes) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Debt Instrument [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 1,692	$ 1,680	$ 5,252
December 2021 Notes [Member]
Debt Instrument [Line Items]
Contractual coupon interest	939	1,031	3,002	$ 3,095
Amortization of debt issuance costs	17	19	57	57
Amortization of debt discount	130	136	406	405
Debt Instrument, Convertible, Beneficial Conversion Feature				4,903
Interest Expense, Debt	$ 2,778	$ 2,866	$ 8,717	$ 8,460

Convertible Notes Summary of December 2024 Notes (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Sep. 17, 2019

Dec. 31, 2018

Debt Instrument [Line Items]

Accretion Expense

$ 79

$ 0

Amortization of convertible notes conversion option and debt issuance costs

5,776

5,745

Debt Instrument, Face Amount

$ 150,000

150,000

Convertible notes payable

132,484

^[1]

132,484

^[1]

$ 124,644

^[2]

Debt Instrument, Convertible, Beneficial Conversion Feature

1,692

$ 1,680

5,252

December 2024 Notes [Member]

Debt Instrument [Line Items]

Contractual coupon interest

Accretion Expense

Amortization of convertible notes conversion option and debt issuance costs

Debt Instrument, Face Amount

86,053

Debt Instrument, Unamortized Discount

(9,300)

$ (9,400)

Accreted interest

Convertible notes payable

76,832

$ 0

Debt Instrument, Convertible, Beneficial Conversion Feature

Interest Expense, Debt

$ 233

$ 0

$ 233

$ 0

[1]	unaudited
[2]	Note 1

Convertible Notes Interest Expense for December 2024 Notes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Debt Instrument [Line Items]
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 1,692	$ 1,680	$ 5,252
Accretion Expense			79	$ 0
Amortization of convertible notes conversion option and debt issuance costs			5,776	5,745
December 2024 Notes [Member]
Debt Instrument [Line Items]
Interest Expense, Debt	233	0	233	0
Debt Instrument, Convertible, Beneficial Conversion Feature	54	0	54	0
Contractual coupon interest	92	0	92	0
Accretion Expense	79	0	79	0
Amortization of convertible notes conversion option and debt issuance costs	$ 8	$ 0	$ 8	$ 0

Convertible Notes 2024 Notes Equity impact (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Debt Instrument [Line Items]
2024 Note Equity impact conversion option adjustment	$ 5,402	$ 0	$ 5,402	$ 0
2024 Note Equity impact net payments for capped call	3,694	0	3,694	0
2024 Note Equity impact deferred taxes	(1,217)	0	(1,217)	0
2024 Note Equity impact issuance costs	134	0	134	0
2024 Note Equity impact	$ 8,013	$ 0	$ (8,013)	$ 0

Other Long-Term Liabilities (Other Long-Term Liabilities) (Detail) - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Schedule of Other Liabilities [Line Items]

Accrued lease liability

$ 10,700

Accrued Bonuses

125

Uncertain tax position

32,829

31,706

Deferred Tax Liabilities, Net, Noncurrent

9,598

13,847

Liabilities, Other than Long-term Debt, Noncurrent

54,301

^[1]

56,843

^[2]

Total

$ 1,082

$ 465

[1]	unaudited
[2]	Note 1

Stock-Based Compensation (Summary of Stock Option and Restricted Stock Award Activity) (Detail) - $ / shares shares in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	335
Employee Stock Option [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period	(968)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price	$ 3.30
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	12,697	7,869
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	5,796
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 3.17
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 3.13	$ 2.82
Restricted Stock [Member]
Share Based Compensation Arrangment By Share Based Payment Award [Line Items]
Restricted Stock Award, Number of Shares, Balance at beginning of period (in Shares)	883
Restricted Stock Awards, Number of Shares Granted (in Shares)	905
Restricted Stock Awards, Number of Shares, Balance at end of period (in Shares)	1,332
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at beginning of period (in Dollars per Share)	$ 2.87
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Granted (in Dollars per Share)	3.58
Restricted Stock Awards, Weighted Average Grant-date Fair Value, Balance at end of period (in Dollars per Share)	3.37
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	2.69
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 3.17
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations	(121)

Customer Concentration (Percentage of Total Revenue From Licenses Over 10% of Revenue) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Depomed [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	55.00%	72.00%	45.00%	43.00%
Noden [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	27.00%	26.00%	36.00%	41.00%
LENSAR [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	18.00%	10.00%	19.00%	11.00%
Royalty right [Member]
Revenue, Major Customer [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			$ (62,567)
AcelRx [Member] \| Royalty right [Member]
Revenue, Major Customer [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			$ (57,650)

Income Taxes (Narrative) (Detail) - USD ($)	3 Months Ended		9 Months Ended
Income Taxes (Narrative) (Detail) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Investments, Owned, Federal Income Tax Note [Line Items]
Change in Uncertain Tax Positions	$ 0	$ 0	$ 0	$ 0
Income Tax Expense	$ (1,944,000)	$ 9,900,000	$ (419,000)	$ (3,346,000)
Federal income tax rate			21.00%

Accumulated Other Comprehensive Income (Loss) (Schedule of Balances of Accumulated Other Comprehensive Income (Loss)) (Detail) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Mar. 31, 2018

Sep. 30, 2019

Sep. 30, 2018

Unrealized gains (losses) on available-for-sale securities

$ 0

^[1]

$ 0

^[1]

$ (1,181)

$ 0

^[1]

$ (1,181)

^[1]

Other Comprehensive Income (Loss), Net of Tax

$ 0

$ (1,181)

AOCI Attributable to Parent [Member]

Unrealized gains (losses) on available-for-sale securities

$ (1,181)

[1]	Net of tax of

Subsequent Events (Narrative) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	4 Months Ended	9 Months Ended	10 Months Ended
	Jul. 05, 2018	Sep. 30, 2019	Aug. 07, 2019	Sep. 21, 2018	Sep. 25, 2017
Subsequent Event [Line Items]
Treasury Stock Acquired, Average Cost Per Share	$ 2.86	$ 3.33	$ 3.22
Stock Repurchased During Period, Shares	8.7	22.4	31.0
Stock Repurchased During Period, Value	$ 25.0	$ 74.5	$ 100.0
Stock Repurchase Program, Authorized Amount				$ 100.0	$ 25.0

Business Combinations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Business Combinations (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Acquired Indefinite-lived Intangible Assets [Line Items]
Gain (Loss) on Investments	$ 3,476	$ 0	$ 3,476	$ 0

Intangibles and Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
Intangibles and Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Apr. 22, 2019	Dec. 31, 2018	Jun. 29, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill and Intangible Asset Impairment			$ 152,300
Finite-Lived Intangible Assets, Gross	$ 56,241			$ 56,241			$ 55,752
Finite-Lived Intangible Assets, Accumulated Amortization	(8,892)			(8,892)			(4,433)
Finite-Lived Intangible Assets, Net	47,349			47,349			51,319
Amortization of Intangible Assets	1,575	$ 1,577		4,745	$ 14,254
Research and Development Expense	4,310	$ 672		6,065	$ 2,149
Contractual Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	36,143			36,143			36,143
Finite-Lived Intangible Assets, Accumulated Amortization	(5,647)			(5,647)			(2,258)
Finite-Lived Intangible Assets, Net	30,496			30,496			33,885
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	8,028			8,028			8,028
Finite-Lived Intangible Assets, Accumulated Amortization	(1,420)			(1,420)			(782)
Finite-Lived Intangible Assets, Net	6,608			6,608			7,246
Patented Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	11,500			11,500			11,011
Finite-Lived Intangible Assets, Accumulated Amortization	(1,549)			(1,549)			(1,203)
Finite-Lived Intangible Assets, Net	9,951			9,951			9,808
Trademarks [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	570			570			570
Finite-Lived Intangible Assets, Accumulated Amortization	(276)			(276)			(190)
Finite-Lived Intangible Assets, Net	294			$ 294			$ 380
DirectFlow [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				10 years
Proceeds from Sale of Intangible Assets				$ 5,000
Noden [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life				8 years
Finite-Lived Intangible Assets, Gross			$ 40,100					$ 192,500
Noden [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value Inputs, Discount Rate (Deprecated 2018-01-31)			21.00%
Original acquisition [Member] \| LENSAR [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				15 years
Precision Eye Services [Member] \| LENSAR [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				20 years
third-party [Member] \| LENSAR [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				15 years
Research and Development Expense	$ 3,500
Cash paid [Member] \| third-party [Member] \| LENSAR [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross						$ 2,000
Milestone [Member] \| third-party [Member] \| LENSAR [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross						$ 300

Intangibles and Goodwill Schedule of Finite-Lived Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	$ 1,560
Finite-Lived Intangible Assets, Amortization Expense, Year Two	6,213
Finite-Lived Intangible Assets, Amortization Expense, Year Three	6,181
Finite-Lived Intangible Assets, Amortization Expense, Year Four	6,076
Finite-Lived Intangible Assets, Amortization Expense, Year Five	6,014
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	21,305
Finite-Lived Intangible Assets, Net	$ 47,349	$ 51,319

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Long-Lived Assets	$ 6,576				$ 6,576		$ 7,387
Net Income (Loss) Attributable to Parent	(17,784)	$ 25,556	$ (112,296)	$ 1,602	(15,523)	$ (85,138)
Revenues	44,165	67,898			60,552	152,991
Income generating assets [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	138				138		160
Net Income (Loss) Attributable to Parent	(7,600)	22,358			(26,790)	27,203
Revenues	23,820	43,511			(4,316)	73,519
Pharmaceutical [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	4,051				4,051		3,682
Net Income (Loss) Attributable to Parent	(2,123)	4,132			3,177	(108,916)
Revenues	12,269	17,772			42,644	61,993
Medical devices [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	2,387				2,387		3,545
Net Income (Loss) Attributable to Parent	(3,323)	(934)			(6,216)	(3,425)
Revenues	8,076	6,615			22,224	17,479
Strategic positions [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	0				0		$ 0
Net Income (Loss) Attributable to Parent	(4,738)	0			14,306	0
Revenues	$ 0	$ 0			$ 0	$ 0

- Definition

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

+ References + Details

Inventory (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Inventory [Line Items]

Inventory, Raw Materials, Gross

$ 6,132

$ 6,214

Inventory, Work in Process, Gross

3,087

549

Inventory, Finished Goods, Gross

11,723

12,179

Inventory, Net

^[1]

20,942

18,942

Deferred Costs and Other Assets

$ 100

$ 500

[1]

unaudited

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	4 Months Ended	9 Months Ended	10 Months Ended
	Jul. 05, 2018	Sep. 30, 2019	Aug. 07, 2019	Dec. 31, 2018	Sep. 21, 2018	Sep. 25, 2017
Stockholders' Equity Attributable to Parent [Abstract]
Stock Repurchase Program, Authorized Amount					$ 100,000	$ 25,000
Stock Repurchased During Period, Shares	8.7	22.4	31.0
Stock Repurchased During Period, Value	$ 25,000	$ 74,500	$ 100,000
Treasury Stock Acquired, Average Cost Per Share	$ 2.86	$ 3.33	$ 3.22
Treasury Stock, Value		$ 0		$ 2,103

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 08, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jan. 06, 2018
Disaggregation of Revenue [Line Items]
Revenues		$ 44,165	$ 67,898	$ 60,552	$ 152,991
Future potential royalty payments						$ 2,000
License and other [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 500	(45)	40	(48)	614
Medical devices [Member]
Disaggregation of Revenue [Line Items]
Revenues		8,076	6,615	22,224	17,479
Non ASC 606 revenue		1,300	1,500	3,900	5,800
Revenue from Contract with Customer, Excluding Assessed Tax		6,724	5,103	18,280	11,693
Medical devices [Member] \| North America [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax			2,315		4,634
Medical devices [Member] \| Europe [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax			565		1,859
Medical devices [Member] \| Asia [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax			2,158		4,915
Medical devices [Member] \| Non-US [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax			65		285
Pharmaceutical [Member]
Disaggregation of Revenue [Line Items]
Revenues		12,269	17,772	42,644	61,993
Revenue from Contract with Customer, Excluding Assessed Tax		$ 12,269	17,772	$ 42,644	61,993
Pharmaceutical [Member] \| North America [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax			10,036		31,743
Pharmaceutical [Member] \| Europe [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax			5,810		18,172
Pharmaceutical [Member] \| Asia [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax			1,926		12,078
Pharmaceutical [Member] \| Non-US [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax			$ 0		$ 0
Minimum [Member]
Disaggregation of Revenue [Line Items]
Term of receivable (in Duration)				30 days
Maximum [Member]
Disaggregation of Revenue [Line Items]
Term of receivable (in Duration)				90 days
DirectFlow [Member]
Disaggregation of Revenue [Line Items]
Proceeds from Sale of Intangible Assets				$ 5,000

Revenue from Contracts with Customers Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Revenue from Contracts with Customers [Abstract]
Accounts Receivable, Net	$ 12,581	$ 20,655
Disaggregation of Revenue [Line Items]
Contract with Customer, Asset, Net	3,849	2,595
Contract asset payments received	7,885
Contract assets recognized	(6,631)
Contract with Customer, Liability	4,901	8,938
Medical devices [Member]
Disaggregation of Revenue [Line Items]
Contract with Customer, Asset, Net	0	0
Contract asset payments received	0
Contract assets recognized	0
Contract with Customer, Liability	1,114
Pharmaceutical [Member]
Disaggregation of Revenue [Line Items]
Contract with Customer, Asset, Net	3,849	$ 2,595
Contract asset payments received	7,885
Contract assets recognized	(6,631)
Contract with Customer, Liability	$ 3,787

Revenue from Contracts with Customers Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Pharmaceutical [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 2,384
Medical devices [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	10,928
Medical devices [Member] \| Less than one year [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	1,484
Medical devices [Member] \| Greater than one year [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 9,444

Leases (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
Leases (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2019	Jan. 02, 2019
Lessee, Lease, Description [Line Items]
Lease termination option	3 years
Operating Lease, Right-of-Use Asset			$ 2.1
Operating Lease, Liability			$ 2.1
Lessee, Operating Lease, Renewal Term	5 years	5 years
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessor, Operating Lease, Term of Contract	1 year	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessor, Operating Lease, Term of Contract	7 years	7 years
Equipment Leased to Other Party [Member] \| Minimum [Member]
Lessee, Lease, Description [Line Items]
Property, Plant and Equipment, Useful Life		5 years
Equipment Leased to Other Party [Member] \| Maximum [Member]
Lessee, Lease, Description [Line Items]
Property, Plant and Equipment, Useful Life		10 years

Leases Lease expense (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Dec. 31, 2018

Lessee, Lease, Description [Line Items]

Property, Plant and Equipment, Net

$ 6,576

^[1]

$ 6,576

^[1]

$ 7,387

^[2]

Operating Leases, Future Minimum Payments Due, Next Twelve Months

1,140

Lease, Cost

$ 287

$ 302

$ 798

$ 935

Operating Leases, Future Minimum Payments, Due in Two Years

1,003

Operating Leases, Future Minimum Payments, Due in Three Years

559

Operating Leases, Future Minimum Payments, Due in Four Years

Operating Leases, Future Minimum Payments, Due in Five Years

Operating Leases, Future Minimum Payments, Due Thereafter

Operating Leases, Future Minimum Payments Due

$ 2,702

[1]	unaudited
[2]	Note 1

Investment in Evofem Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) $ / shares	Sep. 30, 2018 USD ($)	Jun. 10, 2019 USD ($) $ / shares shares	Apr. 11, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($)
Debt and Equity Securities, FV-NI [Line Items]
Investment Owned, at Cost	$ 6,600		$ 6,600				$ 6,600
Gain (Loss) on Investments	3,476	$ 0	3,476	$ 0
Unrealized Gain (Loss) on Investments	(27,378)	$ 0	18,109	$ 0
Evofem [Member]
Debt and Equity Securities, FV-NI [Line Items]
Investment Owned, at Cost	$ 60,000		$ 60,000
Tranche 1 of investment						$ 30,000
Investment Owned, Balance, Shares \| shares						6,666,667
Warrants acquired \| shares					1,666,667	1,666,667
Board member appointed					1
Board observer appointed					1
Warrants and Rights Outstanding, Term						7 years
Shares acquired \| shares					6,666,667
Investment Warrants, Exercise Price \| $ / shares			$ 6.38
Tranche 2 of investment					$ 30,000
Cost of tranche two investment option, per share \| $ / shares					$ 4.50	$ 4.50
Investment ownership percentage	29.00%		29.00%
Common Stock [Member] \| Evofem [Member]
Debt and Equity Securities, FV-NI [Line Items]
Unrealized Gain (Loss) on Investments	$ (21,400)		$ 16,600
Warrant [Member] \| Evofem [Member]
Debt and Equity Securities, FV-NI [Line Items]
Gain (Loss) on Investments	$ (6,000)		$ 1,500

Investment in Evofem (Tables)	9 Months Ended
Investment in Evofem (Tables)	Sep. 30, 2019
Affiliate financial statements [Line Items]
Evofem financial statements [Table Text Block]

Asset Acquisitions Asset Acquisition Details (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability, Current	$ 0