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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 102,396	$ 44,794
Restricted cash		400
Accounts receivable, net of allowances of $293 and $482 at June 30, 2011 and December 31, 2010, respectively	24,999	22,081
Inventories	4,736	5,046
Prepaid expenses	3,575	1,858
Other current assets	382	279
Total current assets	136,088	74,458
Property and equipment, net	647	690
Intangible assets, net	18,309	22,033
Goodwill	38,213	38,213
Other long-term assets	152	335
Total assets	193,409	135,729
LIABILITIES AND STOCKHOLDERS' EQUITY
Revolving credit facility	4,000	7,350
Accounts payable	4,665	3,049
Accrued liabilities	26,713	23,572
Current portion of long-term debt	32,693	16,064
Purchased product rights liability	4,750	4,500
Liability under government settlement	7,130	4,128
Deferred revenue	1,366	1,273
Total current liabilities	81,317	59,936
Deferred rent	12	82
Deferred revenue, non-current	8,484	9,053
Purchased product rights liability, non-current	2,000	4,500
Liability under government settlement, non-current		6,978
Long-term debt, less current portion		24,629
Commitments and contingencies (Note 10)
Stockholders' equity:
Common stock	4	4
Additional paid-in capital	521,429	505,413
Accumulated deficit	(419,837)	(474,866)
Total stockholders' equity	101,596	30,551
Total liabilities and stockholders' equity	$ 193,409	$ 135,729

Condensed Consolidated Statements Of Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2010	Jun. 30, 2010
Condensed Consolidated Statements Of Income
Interest expense pertaining to a related party	$ 255	$ 570
Loss on extinguishment of debt pertaining to a related party	$ 701	$ 701

Summary Of Significant Accounting Policies

6 Months Ended

Jun. 30, 2011

Summary Of Significant Accounting Policies

Summary Of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Basis of Presentation

These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission, or SEC, for interim reporting. As permitted under those rules, certain footnotes and other financial information that are normally required by U.S. generally accepted accounting principles, or GAAP, can be condensed or omitted. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2010. In the opinion of management, these condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments, considered necessary for the fair presentation of our financial position and operating results. The results for the three and six months ended June 30, 2011 are not necessarily indicative of the results to be expected for the year ending December 31, 2011 or for any other interim period or for any future period. The consolidated financial statements include the accounts of Jazz Pharmaceuticals, Inc. and our wholly-owned subsidiaries, Orphan Medical, LLC and JPI Commercial, LLC after elimination of intercompany transactions and balances.

Significant Risks and Uncertainties

Most of our revenues are derived from sales of one product, Xyrem. Xyrem and its active pharmaceutical ingredient, sodium oxybate, are highly regulated by the U.S. Food and Drug Administration, or FDA, and the U.S. Drug Enforcement Agency, or DEA, and actions by either or both of these agencies could adversely affect sales of Xyrem. Xyrem has a boxed warning, which is the strongest safety warning required by the FDA, and in recent years there has been increasing focus on the safety of pharmaceutical products. During 2010, an abbreviated new drug application, or ANDA, was filed with the FDA by a third party seeking to market a generic form of Xyrem. We have sued that third party for infringement of our patents, and the litigation is ongoing. We cannot predict the timing or outcome of this litigation. If an ANDA for Xyrem is approved and a generic version of Xyrem is introduced, our sales of Xyrem would be adversely affected.

We are subject to risks common to companies in the pharmaceutical industry with development and commercial operations including, but not limited to, risks and uncertainties related to commercial success and acceptance of our products by patients, physicians and payors, competition from branded and generic products, regulatory approvals, regulatory requirements, dependence on key customers and sole source suppliers and protection of intellectual property rights.

Concentrations of Risk

Financial instruments that potentially subject us to concentrations of credit risk consist of cash equivalents and restricted cash. Our investment policy limits investments to certain types of debt securities issued by the U.S. government, its agencies and institutions with investment-grade credit ratings and places restrictions on maturities and concentration by type and issuer. We are exposed to credit risk in the event of a default by the financial institutions holding our cash and cash equivalents and issuers of investments to the extent recorded on the balance sheet.

We are also subject to credit risk from our accounts receivable related to our product sales. We monitor our exposure within accounts receivable and record a reserve against uncollectible accounts receivable as necessary. We extend credit to pharmaceutical wholesale distributors and a specialty pharmaceutical distribution company, primarily in the United States, and to international distributors. Customer creditworthiness is monitored and collateral is not usually required. Historically, we have not experienced significant credit losses on our accounts receivable. One customer, Express Scripts Specialty Distribution Services, Inc. and its affiliate CuraScript, Inc., or Express Scripts, accounted for 82% and 79% of gross accounts receivable as of June 30, 2011 and December 31, 2010, respectively.

We rely on certain sole suppliers for drug substance and certain sole manufacturing partners for each of our marketed products and product candidates.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, intangible assets, inventory reserves, accrued expenses, stock-based compensation and income taxes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates.

Net Income (Loss) Per Common Share

Basic net income (loss) per common share and diluted net income (loss) per common share are based upon the weighted-average number of shares of common stock outstanding. Diluted net income (loss) per common share is based on the weighted-average number of shares of common stock outstanding and potentially dilutive common shares outstanding. Basic and diluted net income (loss) per common share is computed as follows (in thousands, except per share amounts):


	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011		2010
Numerator:
Net income (loss)	$	33,202	$	(6,388	)	$	55,029	$	(4,924	)


Denominator:
Weighted-average common shares outstanding - basic		41,209		35,423			40,788		33,428
Dilutive effect of employee equity incentive and purchase plans		2,821		—			2,844		—
Dilutive effect of warrants		2,571		—			2,606		—

Weighted-average common shares outstanding - diluted		46,601		35,423			46,238		33,428


Net income (loss) per share:
Basic	$	0.81	$	(0.18	)	$	1.35	$	(0.15	)

Diluted	$	0.71	$	(0.18	)	$	1.19	$	(0.15	)

Potentially dilutive common shares from employee stock plans and warrants are determined by applying the treasury stock method to the assumed exercise of warrants and stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under our employee stock purchase plan. The following table represents the weighted-average shares of our common stock that were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have an anti-dilutive effect (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Options to purchase common stock		1,372		3,527		1,016		3,062
Warrants to purchase common stock		—		1,568		—		—

Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting

Segment Reporting

8. Segment Reporting

We have determined that we operate in one business segment, which is the development and commercialization of specialty pharmaceutical products. The following table presents a summary of total revenues (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Xyrem	$	56,178	$	33,723	$	98,956	$	62,468
Luvox CR		7,286		5,805		14,411		11,343

Product sales, net		63,464		39,528		113,367		73,811
Royalties		819		674		1,512		1,279
Contract revenues		284		284		569		569

Total revenues	$	64,567	$	40,486	$	115,448	$	75,659

The following table presents a summary of total revenues attributed to domestic and foreign sources (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
United States	$	62,931	$	39,546	$	112,830	$	73,608
Europe		1,314		936		2,292		2,042
All other		322		4		326		9

Totals	$	64,567	$	40,486	$	115,448	$	75,659

The following table presents a summary of total revenues from customers that represent more than 10% of our total revenues:


	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Express Scripts		86	%		83	%		85	%		82	%

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Stockholders' Equity

6 Months Ended

Jun. 30, 2011

Stockholders' Equity

Stockholders' Equity

6. Stockholders' Equity

Common Stock

The following table presents a summary of shares of our common stock issued and proceeds received (in thousands):


	Six Months Ended June 30, 2011
	Shares issued		Proceeds
Option exercises		821	$	6,497
Employee stock purchase plan		260		296
Warrant exercises		338		2,618
Cashless warrant exercises		297		—
Directors deferred compensation plan		13		—

Totals		1,729	$	9,411

Comprehensive Income (Loss)

For the three and six months ended June 30, 2011 and 2010, comprehensive income (loss) was equal to net income (loss).

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

7. Stock-Based Compensation

Stock-based compensation expense related to stock options, restricted stock units, shares of common stock credited to the directors' phantom stock accounts and grants under our employee stock purchase plan was classified as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Selling, general and administrative	$	2,418	$	1,344	$	4,830	$	2,665
Research and development		848		545		1,504		1,010
Cost of product sales		149		71		229		117

Totals	$	3,415	$	1,960	$	6,563	$	3,792

Stock Options

The table below shows (i) the number of shares (in thousands) underlying options to purchase shares of our common stock granted to employees, (ii) the weighted-average grant date fair value per share of those stock options and (iii) certain information about the assumptions used in the Black-Scholes option pricing model which was used to estimate the grant date fair value per share:


	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Shares		81			93			1,251			1,351
Weighted-average grant date fair value	$	19.00		$	6.64		$	17.67		$	8.17
Black-Scholes option pricing model assumption information:
Weighted-average volatility		71	%		88	%		74	%		84	%
Weighted-average expected term (years)		5.6			5.9			5.6			6.1
Range of risk-free rates		1.9-2.6	%		2.3-3.1	%		1.9-2.7	%		2.3-3.1	%
Expected dividend yield		0.0	%		0.0	%		0.0	%		0.0	%

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

+ Details

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2011	Jul. 25, 2011
Document And Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Entity Registrant Name	JAZZ PHARMACEUTICALS INC
Entity Central Index Key	0001232524
Trading Symbol	jazz
Entity Filer Category	Accelerated Filer
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		41,739,279

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
Condensed Consolidated Balance Sheets
Accounts receivable, allowances	$ 293	$ 482

Condensed Consolidated Statements Of Cash Flows (Parenthetical) $ in Thousands	6 Months Ended
	Jun. 30, 2010 USD ($)
Condensed Consolidated Statements Of Cash Flows
Repayment of senior secured notes paid to a related party	$ 6,816
Debt extinguishment costs paid to a related party	$ 484

Commitments And Contingencies

6 Months Ended

Jun. 30, 2011

Commitments And Contingencies

Commitments And Contingencies

10. Commitments and Contingencies

Indemnification

In the normal course of business, we enter into agreements that contain a variety of representations and warranties and provide for general indemnification, including indemnification associated with product liability or infringement of intellectual property rights. Our exposure under these agreements is unknown because it involves future claims that may be made but have not yet been made against us. To date, we have not paid any claims or been required to defend any action related to these indemnification obligations.

We have agreed to indemnify our officers, directors and certain other employees for losses and costs incurred in connection with certain events or occurrences, including advancing money to cover certain costs, subject to certain limitations. The maximum potential amount of future payments we could be required to make under the indemnification obligations is unlimited; however, we maintain insurance policies that may limit our exposure and may enable us to recover a portion of any future amounts paid. Assuming the applicability of coverage, the willingness of the insurer to assume coverage, and subject to certain retention, loss limits and other policy provisions, we believe the fair value of these indemnification obligations is not significant. Accordingly, we have not recognized any liabilities relating to these obligations as of June 30, 2011 and December 31, 2010. No assurances can be given that the covering insurers will not attempt to dispute the validity, applicability, or amount of coverage without expensive litigation against these insurers, in which case we may incur substantial liabilities as a result of these indemnification obligations.

Legal Proceedings

On October 18, 2010, we received a Paragraph IV Patent Certification notice, or Paragraph IV Certification, from Roxane Laboratories, Inc., or Roxane, that it filed an ANDA with the FDA requesting approval to market a generic version of Xyrem. Roxane's Paragraph IV Certification alleges that all five patents listed for Xyrem in the FDA's approved drug products with therapeutic equivalence evaluation documents, or Orange Book, on the date of the Paragraph IV Certification are invalid, unenforceable or not infringed by Roxane's proposed generic product. On November 22, 2010, we filed a lawsuit against Roxane in response to Roxane's Paragraph IV Certification in the United States District Court for the District of New Jersey. We are seeking a permanent injunction to prevent Roxane from introducing a generic version of Xyrem. In accordance with the Hatch-Waxman Act, as a result of having filed a timely lawsuit against Roxane, FDA approval of Roxane's ANDA will be stayed until the earlier of (i) 30 months from our October 18, 2010 receipt of Roxane's Paragraph IV certification notice or (ii) a District Court decision finding that the identified patents are invalid, unenforceable or not infringed. An additional method of use patent covering the distribution system for Xyrem issued in December 2010 and is listed in the Orange Book, and we amended our lawsuit against Roxane on February 4, 2011 to include the additional patent in the litigation in response to Roxane's Paragraph IV Certification against this patent. An additional method of use patent covering the distribution system for Xyrem issued in February 2011 and is listed in the Orange Book, and we amended our lawsuit on May 2, 2011 to include this additional patent in response to Roxane's Paragraph IV Certification against it. We cannot predict the outcome of this litigation.

From time to time we are involved in legal proceedings arising in the ordinary course of business. We believe there is no other litigation pending that could have, individually or in the aggregate, a material adverse effect on our results of operations or financial condition.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.5-02.25)
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Topic 825
-SubTopic 20
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Income Tax Expense

6 Months Ended

Jun. 30, 2011

Income Tax Expense

Income Tax Expense

9. Income Tax Expense

During the three and six months ended June 30, 2011, our effective income tax rate was 0%. This rate was lower than the federal statutory rate of 35% due to our application of federal net operating loss carryforwards to offset both regular taxable income and alternative minimum taxable income and reflects our utilization of deferred state tax benefits.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues:
Product sales, net	$ 63,464	$ 39,528	$ 113,367	$ 73,811
Royalties	819	674	1,512	1,279
Contract revenues	284	284	569	569
Total revenues	64,567	40,486	115,448	75,659
Operating expenses:
Cost of product sales (excluding amortization of acquired developed technology)	3,370	2,802	6,179	5,684
Selling, general and administrative	22,094	17,096	42,005	33,886
Research and development	3,382	7,962	7,077	14,177
Intangible asset amortization	1,862	2,044	3,724	4,101
Total operating expenses	30,708	29,904	58,985	57,848
Income from operations	33,859	10,582	56,463	17,811
Interest income and other, net	2	4	2	6
Interest expense (including $255 and $570 for the three and six months ended June 30, 2010, respectively, pertaining to a related party)	(659)	(4,687)	(1,436)	(10,454)
Loss on extinguishment of debt (including $701 pertaining to a related party)		(12,287)		(12,287)
Net income (loss)	$ 33,202	$ (6,388)	$ 55,029	$ (4,924)
Net income (loss) per share:
Basic	$ 0.81	$ (0.18)	$ 1.35	$ (0.15)
Diluted	$ 0.71	$ (0.18)	$ 1.19	$ (0.15)
Weighted-average common shares used in computing net income (loss) per share:
Basic	41,209	35,423	40,788	33,428
Diluted	46,601	35,423	46,238	33,428

Inventories

6 Months Ended

Jun. 30, 2011

Inventories

Inventories

2. Inventories

The components of inventories were as follows (in thousands):


	June 30, 2011		December 31, 2010
Raw materials	$	2,262	$	2,986
Work in process		958		705
Finished goods		1,516		1,355

Totals	$	4,736	$	5,046

Goodwill And Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill And Intangible Assets

Goodwill And Intangible Assets

4. Goodwill and Intangible Assets

The gross carrying amount of goodwill was as follows (in thousands):


	June 30, 2011		December 31, 2010
Goodwill	$	38,213	$	38,213

The gross carrying amounts and net book values of our intangible assets were as follows (in thousands):


	June 30, 2011						December 31, 2010
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Developed technology - Xyrem	$	39,700	$	25,100	$	14,600	$	39,700	$	23,014	$	16,686
Developed technology - Luvox CR		9,700		6,947		2,753		9,700		5,446		4,254
Trademarks		2,600		1,644		956		2,600		1,507		1,093

Totals	$	52,000	$	33,691	$	18,309	$	52,000	$	29,967	$	22,033

Based on intangible assets recorded as of June 30, 2011, and assuming the underlying assets will not be impaired in the future and that we will not change the expected lives of the assets, future amortization costs were estimated as follows (in thousands):


Year Ending December 31,	Estimated Amortization Expense
2011 (remaining portion)	$	3,724
2012		5,696
2013		4,445
2014		4,444

Total	$	18,309

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Operating activities
Net income (loss)	$ 55,029	$ (4,924)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	189	525
Amortization of intangible assets	3,724	4,101
Loss on disposal of property and equipment	15
Stock-based compensation expense	6,563	3,792
Long-term debt, non-cash interest expense	394	1,923
Loss on extinguishment of debt		12,287
Changes in assets and liabilities:
Accounts receivable	(2,918)	(1,782)
Inventories	352	(982)
Prepaid expenses and other current assets	(1,820)	(512)
Other assets	121	(159)
Accounts payable	1,616	4,245
Accrued liabilities	3,141	1,608
Deferred revenue	(476)	180
Deferred rent	(70)	44
Liability under government settlement	(3,976)	(2,755)
Net cash provided by operating activities	61,884	17,591
Investing activities
Purchases of property and equipment	(161)	(302)
Purchase of product rights	(2,250)	(2,000)
Decrease in restricted cash and investments	400	2,078
Net cash used in investing activities	(2,011)	(224)
Financing activities
Repayment of senior secured notes (including $6,816 paid to a related party)		119,496
Payments of debt extinguishment costs (including $484 paid to a related party)		(8,484)
Proceeds from offerings of common stock, net of issuance costs		57,119
Proceeds from term loan, net		48,688
Repayment of term loan	(8,332)
Proceeds from employee stock purchases, exercise of stock options and warrants	9,411	834
Net repayments under revolving credit facilities	(3,350)	(2,049)
Net cash used in financing activities	(2,271)	(23,388)
Net increase (decrease) in cash and cash equivalents	57,602	(6,021)
Cash and cash equivalents, at beginning of period	44,794	15,595
Cash and cash equivalents, at end of period	$ 102,396	$ 9,574

Fair Value

6 Months Ended

Jun. 30, 2011

Fair Value

Fair Value

3. Fair Value

Available-for-sale investments consisted of the following (in thousands):


	June 30, 2011				December 31, 2010
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Money market funds	$	46	$	46	$	25,046	$	25,046


			June 30, 2011				December 31, 2010
Available-for-sale investments			$	46			$	25,046
Cash				102,350				19,748
Restricted cash				—				400

Totals			$	102,396			$	45,194


Reported as			June 30, 2011				December 31, 2010
Amounts classified as cash and cash equivalents			$	102,396			$	44,794
Amounts classified as restricted cash				—				400

Totals			$	102,396			$	45,194

The following table summarizes, by major security type, our available-for-sale investments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):


	June 30, 2011				December 31, 2010
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Total Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Total Estimated Fair Value
Money market funds	$	46	$	46	$	25,046	$	25,046

The carrying amount and the estimated fair value of our long-term debt were as follows (in thousands):


	June 30, 2011				December 31, 2010
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Long-term debt	$	32,693	$	32,800	$	40,693	$	40,864

The estimated fair value of our long-term debt was estimated using a discounted cash flow analysis based on our estimated incremental borrowing rates for similar types of borrowing arrangements.

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
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+ Details

Debt And Financing Obligations

6 Months Ended

Jun. 30, 2011

Debt And Financing Obligations

Debt And Financing Obligations

5. Debt and Financing Obligations

Term Loan and Revolving Credit Facility

On July 1, 2011, we repaid in full the $33.3 million principal amount of our term loan and a prepayment penalty of $0.3 million. As a result of the repayment, in the third quarter of 2011, we expect to record a loss on extinguishment of debt of $1.1 million, which will consist of a $0.8 million non-cash charge related to the write-off of unamortized debt issuance costs and a debt discount and the $0.3 million prepayment penalty. As of June 30, 2011, the carrying amount of the term loan was classified as a current liability.

As of June 30, 2011, $4.0 million was borrowed under our revolving credit facility which bore interest at a variable rate of 3.75%. Borrowing availability under the revolving credit facility is currently $14.4 million.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details