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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	JAZZ
Entity Registrant Name	Jazz Pharmaceuticals plc
Entity Central Index Key	0001232524
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		59,950,496

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 252,615	$ 365,963
Investments	200,000	60,000
Accounts receivable, net of allowances	258,616	234,244
Inventories	41,344	34,051
Prepaid expenses	29,249	24,501
Other current assets	49,120	29,310
Total current assets	830,944	748,069
Property and equipment, net	159,386	107,490
Intangible assets, net	3,019,035	3,012,001
Goodwill	941,428	893,810
Deferred tax assets, net, non-current	23,662	15,060
Deferred financing costs	8,149	9,737
Other non-current assets	16,420	14,060
Total assets	4,999,024	4,800,227
Current liabilities:
Accounts payable	29,972	22,415
Accrued liabilities	179,890	193,268
Current portion of long-term debt	36,094	36,094
Income taxes payable	13,603	4,506
Deferred revenue	8,618	1,123
Total current liabilities	268,177	257,406
Deferred revenue, non-current	18,270	2,601
Long-term debt, less current portion	1,543,819	1,993,531
Deferred tax liability, net, non-current	540,964	556,733
Other non-current liabilities	158,497	112,617
Commitments and contingencies
Shareholders’ equity:
Ordinary shares	6	6
Non-voting euro deferred shares	55	55
Capital redemption reserve	472	472
Additional paid-in capital	1,899,628	1,665,232
Accumulated other comprehensive loss	(158,987)	(317,333)
Retained earnings	728,123	528,907
Total shareholders’ equity	2,469,297	1,877,339
Total liabilities and shareholders’ equity	$ 4,999,024	$ 4,800,227

Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Product sales, net	$ 407,971	$ 371,621	$ 1,171,304	$ 1,084,647
Royalties and contract revenues	3,884	2,560	10,990	6,705
Total revenues	411,855	374,181	1,182,294	1,091,352
Operating expenses:
Cost of product sales (excluding amortization of intangible assets)	31,203	24,311	84,940	71,730
Selling, general and administrative	124,523	124,368	401,106	375,751
Research and development	47,362	47,796	132,447	118,139
Acquired in-process research and development	75,000	15,000	77,000	23,750
Intangible asset amortization	47,313	26,453	99,164	75,832
Total operating expenses	325,401	237,928	794,657	665,202
Income from operations	86,454	136,253	387,637	426,150
Interest expense, net	(19,192)	(18,498)	(56,330)	(42,811)
Foreign exchange loss	(2,224)	(749)	(9,115)	(1,568)
Loss on extinguishment and modification of debt	0	(638)	0	(638)
Income before income tax provision and equity in loss of investees	65,038	116,368	322,192	381,133
Income tax provision	1,239	26,437	65,914	100,888
Equity in loss of investees	273	103	637	103
Net income	$ 63,526	$ 89,828	$ 255,641	$ 280,142
Net income per ordinary share:
Basic (in dollars per share)	$ 1.06	$ 1.49	$ 4.26	$ 4.62
Diluted (in dollars per share)	$ 1.03	$ 1.45	$ 4.17	$ 4.51
Weighted-average ordinary shares used in per share calculations - basic (in shares)	60,108	60,437	60,030	60,692
Weighted-average ordinary shares used in per share calculations - diluted (in shares)	61,436	61,795	61,360	62,150

Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 63,526	$ 89,828	$ 255,641	$ 280,142
Other comprehensive income (loss):
Foreign currency translation adjustments	50,870	14,612	159,302	32,096
Unrealized loss on hedging activities, net of tax benefit (expense) of $(56), $0, $137 and $0, respectively	392	0	(956)	0
Other comprehensive income	51,262	14,612	158,346	32,096
Total comprehensive income	$ 114,788	$ 104,440	$ 413,987	$ 312,238

Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Tax benefit (expense) on hedging activities	$ (56)	$ 0	$ 137	$ 0

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities
Net income	$ 255,641	$ 280,142
Adjustments to reconcile net income to net cash provided by operating activities:
Intangible asset amortization	99,164	75,832
Share-based compensation	79,579	74,490
Depreciation	9,288	8,165
Acquired in-process research and development	77,000	23,750
Loss on disposal of property and equipment	360	3
Deferred income taxes	(53,359)	(29,273)
Provision for losses on accounts receivable and inventory	1,825	1,764
Loss on extinguishment and modification of debt	0	638
Amortization of debt discount and deferred financing costs	19,234	16,418
Other non-cash transactions	14,480	1,460
Changes in assets and liabilities:
Accounts receivable	(22,273)	(28,274)
Inventories	(7,132)	(14,117)
Prepaid expenses and other current assets	(10,590)	(8,512)
Other long-term assets	(1,825)	297
Accounts payable	6,130	(4,288)
Accrued liabilities	(23,583)	(7,792)
Income taxes payable	8,495	3,323
Deferred revenue	23,163	(682)
Other non-current liabilities	12,931	18,352
Net cash provided by operating activities	488,528	411,696
Investing activities
Purchases of property and equipment	(20,072)	(8,410)
Acquisitions, net of cash acquired	0	(1,502,443)
Acquired in-process research and development	(77,000)	(23,750)
Acquisition of investments	(290,000)	(75,904)
Proceeds from maturity of investments	150,000	11,211
Acquisition of intangible assets	0	(150,000)
Net cash used in investing activities	(237,072)	(1,749,296)
Financing activities
Net proceeds from issuance of debt	559,484	994,777
Proceeds from employee equity incentive and purchase plans	22,793	17,951
Repayments of long-term debt	(27,070)	(19,282)
Payment of employee withholding taxes related to share-based awards	(17,909)	(20,595)
Share repurchases	(56,425)	(259,819)
Repayments under revolving credit facility	(850,000)	0
Net cash provided by (used in) financing activities	(369,127)	713,032
Effect of exchange rates on cash and cash equivalents	4,323	2,350
Net decrease in cash and cash equivalents	(113,348)	(622,218)
Cash and cash equivalents, at beginning of period	365,963	988,785
Cash and cash equivalents, at end of period	$ 252,615	$ 366,567

The Company and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

The Company and Summary of Significant Accounting Policies

Jazz Pharmaceuticals plc is an international biopharmaceutical company focused on improving patients’ lives by identifying, developing and commercializing meaningful products that address unmet medical needs.

We have a diverse portfolio of products and product candidates, with a focus in the areas of sleep and hematology/oncology. Our lead marketed products are:


•	Xyrem^® (sodium oxybate) oral solution, the only product approved by the U.S. Food and Drug Administration, or FDA, and marketed in the U.S. for the treatment of both cataplexy and excessive daytime sleepiness, or EDS, in patients with narcolepsy;


•	Erwinaze^® (asparaginase Erwinia chrysanthemi), a treatment approved in the U.S. and in certain markets in Europe (where it is marketed as Erwinase^®) for patients with acute lymphoblastic leukemia, or ALL, who have developed hypersensitivity to E. coli-derived asparaginase;

•

Defitelio^®(defibrotide sodium), a product approved in the U.S. for the treatment of adult and pediatric patients with hepatic veno-occlusive disease, or VOD, also known as sinusoidal obstruction syndrome, or SOS, with renal or pulmonary dysfunction following hematopoietic stem cell transplantation, or HSCT, and in Europe (where it is marketed as Defitelio^®(defibrotide)) for the treatment of severe VOD in adults and children undergoing HSCT therapy; and


•	Vyxeos^TM(daunorubicin and cytarabine) liposome for injection, a product approved in the U.S. for the treatment of adults with newly-diagnosed therapy-related acute myeloid leukemia, or AML, or AML with myelodysplasia-related changes.

Our strategy is to create shareholder value by:


•	Growing sales of the existing products in our portfolio, including by identifying and investing in growth opportunities such as new treatment indications and new geographic markets;


•	Acquiring or licensing rights to clinically meaningful and differentiated products that are on the market or product candidates that are in late-stage development; and


•	Pursuing targeted development of post-discovery differentiated product candidates.

We apply a disciplined approach to allocating our resources between investments in our current commercial and development portfolio and acquisitions or in-licensing of new assets.

Throughout this report, unless otherwise indicated or the context otherwise requires, all references to “Jazz Pharmaceuticals,” “the registrant,” “we,” “us,” and “our” refer to Jazz Pharmaceuticals plc and its consolidated subsidiaries. Throughout this report, all references to “ordinary shares” refer to Jazz Pharmaceuticals plc’s ordinary shares.

Basis of Presentation

These unaudited condensed consolidated financial statements have been prepared following the requirements of the U.S. 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 U.S. GAAP, can be condensed or omitted. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our annual consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2016.

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 nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017, for any other interim period or for any future period.

These condensed consolidated financial statements include the accounts of Jazz Pharmaceuticals plc and our subsidiaries, and intercompany transactions and balances have been eliminated.

Significant Risks and Uncertainties

Our financial results remain significantly influenced by sales of Xyrem. In the three and nine months ended September 30, 2017, net product sales of Xyrem were $303.9 million and $874.2 million, respectively, which represented 74% and 75% of total net product sales, respectively. Our ability to maintain or increase product sales of Xyrem is subject to risks and uncertainties, including the potential U.S. introduction of a generic version of Xyrem before the entry dates specified in our settlements with certain companies that had filed abbreviated new drug applications, or ANDAs, with the FDA seeking approval to market a generic version of Xyrem or on terms that are different from those contemplated by the settlements; the potential U.S. introduction of an alternative product to Xyrem for treating cataplexy and/or EDS in narcolepsy; changes to, increases in or uncertainties around regulatory restrictions, including, among other things, changes to our Xyrem risk evaluation and mitigation strategy, or REMS, particularly in light of the FDA’s waiver of the single shared REMS requirement for sodium oxybate and approval of a separate generic sodium oxybate REMS; any increase in pricing pressure from, or restrictions on reimbursement imposed by, third party payors; changes in healthcare laws and policy, including changes in requirements for patient assistance programs, rebates, reimbursement and coverage by federal healthcare programs, and changes resulting from increased scrutiny on pharmaceutical pricing and REMS programs by government entities; operational disruptions at the Xyrem central pharmacy or any failure to comply with our REMS obligations to the satisfaction of the FDA; any supply or manufacturing problems, including any problems with our sole source provider of the active pharmaceutical ingredient for Xyrem; continued acceptance of Xyrem by physicians and patients, even in the face of negative publicity that surfaces from time to time; changes to our label, including new safety warnings or changes to our boxed warning, that further restrict how we market and sell Xyrem; and our U.S.-based sodium oxybate and Xyrem suppliers’ ability to obtain sufficient quotas from the U.S. Drug Enforcement Administration, or DEA, to satisfy our needs for Xyrem.

Although Xyrem is protected by patents covering its manufacture, formulation, distribution system and method of use, eight companies have filed ANDAs with the FDA seeking approval to market a generic version of Xyrem. We filed patent lawsuits against each of the ANDA filers in the U.S. District Court for the District of New Jersey, or the District Court, and an additional lawsuit against the most recent ANDA filer, Ascent Pharmaceuticals, Inc., or Ascent, in the U.S. District Court for the Eastern District of New York, or EDNY, where Ascent is incorporated. On April 5, 2017, we settled all lawsuits against the first ANDA filer, West-Ward Pharmaceuticals Corp. (a wholly owned subsidiary of Hikma Pharmaceuticals PLC), which acquired Roxane Laboratories, Inc., or West-Ward, granting West-Ward the right to sell an authorized generic version of Xyrem, or the West-Ward AG Product, commencing on January 1, 2023, or earlier under certain circumstances, and granting West-Ward a license to launch its generic sodium oxybate product as early as six months thereafter. In the second quarter of 2016, we had settled lawsuits with two of the other ANDA filers, granting those filers a license to manufacture, market and sell their generic versions of Xyrem on or after December 31, 2025, or earlier depending on the occurrence of certain events. In addition, on August 22, 2017, we settled all lawsuits with Ascent, granting Ascent a license to manufacture, market and sell its generic version of Xyrem on or after December 31, 2025, or earlier depending on the occurrence of certain events. For a description of our settlements with West-Ward and three of the other ANDA filers, see “Overview—Challenges, Risks and Trends Related to Our Lead Marketed Products” in Part I, Item 2 of this Quarterly Report on Form 10-Q. Lawsuits with the remaining non-settling ANDA filers have been consolidated as one case and remain pending in the District Court. Although no trial date has been set, discovery is scheduled to conclude in the second quarter of 2018, and the trial in this consolidated case could occur as early as mid-2018. For a description of these legal proceedings, see “Legal Proceedings” in Part II, Item 1 of this Quarterly Report on Form 10-Q. We cannot predict the timing or outcome of the ANDA litigation proceedings against the remaining non-settling ANDA filers.

In July 2016, the Patent Trial and Appeal Board, or PTAB, of the U.S. Patent and Trademark Office issued final decisions that the claims of six patents listed in the FDA’s publication, “Approved Drug Products with Therapeutic Equivalence Evaluations,” or Orange Book, as covering the Xyrem REMS are unpatentable. We filed a notice of appeal of these decisions on February 22, 2017. If the United States Court of Appeals for the Federal Circuit upholds those decisions on appeal, these claims will be canceled, and we will not be able to enforce these patents. In March 2016, the PTAB partially instituted an inter partes review, or IPR, on three claims of a seventh REMS patent, declining to review 25 of 28 claims. The PTAB issued a final decision in March 2017 that the three claims they reviewed are unpatentable. We filed a notice of appeal of that decision on May 18, 2017, and the Court of Appeals for the Federal Circuit has consolidated the appeal of the March 2017 decision with the pending appeals of the July 2016 decisions. For a description of these legal proceedings, see “Legal Proceedings” in Part II, Item 1 of this Quarterly Report on Form 10-Q. We cannot predict whether additional post-grant patent review challenges will be filed by any of the ANDA filers or any other entity, the outcome of any proceeding, including any appeal, or the impact any IPR or other proceeding might have on ongoing ANDA litigation proceedings or other aspects of our Xyrem business.

On January 17, 2017, the FDA announced approval of the West-Ward ANDA, and on January 19, 2017, the FDA tentatively approved two additional ANDAs for generic versions of Xyrem, one for Amneal Pharmaceuticals, LLC, or Amneal, and one for Ohm Laboratories Inc., formerly known as Ranbaxy, Inc., or Ohm. West-Ward’s ANDA approval includes a waiver that permits West-Ward to use a separate REMS program from the Xyrem REMS, or the generic sodium oxybate REMS, on the condition that the generic sodium oxybate REMS be open to all future sponsors of ANDAs or new drug applications, or NDAs, for sodium oxybate products. We were not involved in the development of the generic sodium oxybate REMS. We continue to evaluate potential challenges based on the FDA’s waiver of the requirement for a single, shared system REMS in connection with the approvals of the ANDAs, including whether the FDA’s waiver decision meets the conditions for such a waiver under applicable law. We cannot predict whether or when we may pursue any such challenges or whether any such challenges would be successful.

The actual timing of any commercial launch of an authorized generic or generic version of Xyrem is uncertain. We do not believe a launch by an ANDA filer is likely to occur prior to either a date agreed in a settlement agreement between us and such ANDA filer or a decision by the District Court, or an appellate court, if applicable, in our ongoing patent litigation. However, notwithstanding our patents, and settlement agreements licensing those patents as of future dates, it is possible that West-Ward, Amneal, Ohm or any other company that receives FDA approval of an ANDA for a generic version of Xyrem or an NDA for another sodium oxybate product could introduce a generic version of Xyrem or other sodium oxybate product before the entry dates specified in our settlement agreements or before our patents expire, including if it is determined that the introduction of the competing product does not infringe our patents, if it is determined that our patents are invalid or unenforceable, or if a non-settling ANDA filer that has received approval for its product decides, before applicable ongoing patent litigation is concluded, to launch a sodium oxybate product at risk of being held liable for damages for patent infringement. In addition, even if we prevail in our ongoing litigation at trial or on appeal, we cannot guarantee that the court will grant an injunction that prevents the ANDA filers from marketing their generic versions of Xyrem. Instead the court may order an ANDA filer that is found to infringe to pay damages in the form of lost profits or a reasonable royalty, which could be significant. We expect that the launch of any generic version of Xyrem, including the West-Ward AG Product or other authorized generic version of Xyrem, or the approval and launch of other products that compete with Xyrem, could have a material adverse effect on our sales of Xyrem and on our business, financial condition, results of operations and growth prospects. For further discussion regarding the risks associated with the West-Ward settlement agreement, the tentative approval of the Amneal and Ohm ANDAs, potential approval or tentative approval of additional ANDAs, the potential launch of a generic version of Xyrem, or the approval and launch of other sodium oxybate or other products that compete with Xyrem, see the risk factors under the headings “Risks Related to Xyrem and the Significant Impact of Xyrem Sales,” “We face substantial competition from other companies, including companies with greater resources, including larger sales organizations and more experience working with large and diverse product portfolios, than we have,” and “Risks Related to Our Intellectual Property” in Part II, Item 1A of this Quarterly Report on Form 10-Q.

In August 2015, we implemented the current Xyrem REMS, and we have submitted and expect to continue to submit ongoing assessments as set forth in the FDA’s Xyrem REMS approval letter. However, we cannot guarantee that our implementation and ongoing assessments will be satisfactory to the FDA or that the Xyrem REMS will satisfy the FDA’s expectations in its evaluation of the Xyrem REMS on an ongoing basis. Any failure to comply with the REMS obligations could result in enforcement action by the FDA; lead to changes in our Xyrem REMS obligations; negatively affect sales of Xyrem; result in additional costs and expenses for us; and/or take a significant amount of time, any of which could materially and adversely affect our business, financial condition, results of operations and growth prospects. Further, we cannot predict whether the FDA will request, seek to require or ultimately require modifications to, or impose additional requirements on, the Xyrem REMS in connection with the anticipated distribution of the West-Ward AG Product, the approval of the generic sodium oxybate REMS or otherwise, or the potential timing, terms or propriety thereof. Any such modifications or additional requirements could make it more difficult or expensive for us to distribute Xyrem, make distribution easier for sodium oxybate competitors, impair the safety profile of Xyrem and/or negatively affect sales of Xyrem.

We may face pressure to modify the Xyrem REMS, or license or share intellectual property pertinent to the Xyrem REMS, including proprietary data required for the safe distribution of sodium oxybate, in connection with the FDA’s approval of the generic sodium oxybate REMS. We cannot predict the outcome or impact on our business of any future action that we may take with respect to the approval of the generic sodium oxybate REMS, or licensing or sharing intellectual property pertinent to the Xyrem REMS or elements of the Xyrem REMS. For more information, see the risk factors under the headings “The launch of a generic version of Xyrem or other sodium oxybate products that compete with Xyrem would adversely affect sales of Xyrem” and “We have incurred and expect to continue to incur substantial costs as a result of litigation or other proceedings relating to patents, other intellectual property rights and related matters, and we may be unable to protect our rights to, or commercialize, our products” in Part II, Item 1A of this Quarterly Report on Form 10-Q.

In September 2016, Jazz Pharmaceuticals, Inc., our wholly owned subsidiary, submitted a Citizen Petition to the FDA requesting that, for safety reasons, the FDA refuse to approve any sodium oxybate ANDA with a proposed package insert or REMS that omits the portions of the Xyrem package insert and the Xyrem REMS that instruct prescribers on adjusting the dose of the product when it is co-administered with divalproex sodium (also known as valproate or valproic acid). On January 17, 2017, the FDA granted the Citizen Petition with respect to the Xyrem package insert. The FDA concluded that it will not approve any sodium oxybate ANDA referencing Xyrem that does not include in its package insert the portions of the currently approved Xyrem package insert related to the drug-drug interaction, or DDI, with divalproex sodium. The FDA stated that it did not need to reach the question of whether the DDI information could have been excluded from the generic sodium oxybate REMS materials because it was approving a REMS in connection with a sodium oxybate ANDA including that information. Our Xyrem patents include three method of administration patents relating to a DDI, or DDI patents, covering these instructions on the Xyrem package insert and Xyrem REMS. We cannot predict whether or when one or more of the ANDA filers may pursue a challenge to the FDA’s response to the Citizen Petition or whether any such challenges would be successful. Likewise, we cannot predict whether we will be able to maintain the validity of, or will otherwise obtain a judicial determination that the generic sodium oxybate package insert or the generic sodium oxybate REMS will infringe, any of our patents or, if we prevail in proving infringement, whether a court will grant an injunction that prevents any non-settling ANDA filer or other company introducing a different sodium oxybate product from marketing its product. For a further discussion of risks and uncertainties related to our REMS, our REMS patents and our DDI patents, see the risk factors under the headings “Risks Related to Xyrem and the Significant Impact of Xyrem Sales” and “Risks Related to Our Intellectual Property” in Part II, Item 1A of this Quarterly Report on Form 10-Q.

We may also face competition from companies with other sodium oxybate products. For example, we are aware of a third party that has stated that it intends to file an NDA to market a once nightly formulation of sodium oxybate for treatment of cataplexy and/or EDS in narcolepsy under Section 505(b)(2) of the Federal Food, Drug and Cosmetic Act, which allows companies to seek approval of a product that is similar, but not identical, to a previously-approved brand-name product. We are also aware of a product to treat adult patients with narcolepsy with or without cataplexy that received marketing approval in Europe in 2016. While this product is currently not approved by the FDA for marketing in the U.S., the company that has exclusive U.S. commercialization rights to this product recently announced that it expects to establish an expanded access program for the product in early 2018 and submit an NDA to the FDA for the treatment of narcolepsy in adult patients during the first half of 2018. See the risk factor under the heading “We face substantial competition from other companies, including companies with greater resources, including larger sales organizations and more experience working with large and diverse product portfolios, than we have” in Part II, Item 1A of this Quarterly Report on Form 10-Q.

Obtaining and maintaining appropriate reimbursement for Xyrem in the U.S. is increasingly challenging due to, among other things, the attention being paid to healthcare cost containment and prescription drug pricing, pricing pressure from third party payors and increasingly restrictive reimbursement conditions being imposed by third party payors. In this regard, we have experienced and expect to continue to experience increasing pressure from third party payors to agree to discounts, rebates or other pricing terms for Xyrem. Any such restrictive pricing terms or additional reimbursement conditions could have a material adverse effect on our Xyrem revenues. In addition, drug pricing by pharmaceutical companies has recently come under close scrutiny, particularly with respect to companies that have increased the price of products after acquiring those products from other companies. We expect that healthcare policies and reforms intended to curb healthcare costs will continue to be proposed, which could limit the prices that we charge for our products, including Xyrem, limit our commercial opportunity and/or negatively impact revenues from sales of our products. Also, price increases on Xyrem and our other products, and negative publicity regarding pricing and price increases generally, whether with respect to our products or products distributed by other pharmaceutical companies, could negatively affect market acceptance of Xyrem and our other products.

In the three and nine months ended September 30, 2017, net product sales of our second largest product, Erwinaze/Erwinase (which we refer to in this report as Erwinaze unless otherwise indicated or the context otherwise requires), were $49.2 million and $149.6 million, respectively, which represented 12% and 13% of total net product sales, respectively. We seek to increase sales of Erwinaze, as well as to make Erwinaze more widely available, through ongoing sales and marketing activities.

Erwinaze is licensed from and manufactured by a single source, Porton Biopharma Limited, or PBL, which is wholly owned by the U.K. Secretary of State for Health. Our agreement with PBL, including our license, expires in December 2020, subject to five-year extensions unless terminated by either party in writing by December 2018. We cannot predict whether the term of the agreement will be extended or, if extended, the terms of any such extension.

Erwinaze was approved by the FDA under a biologics license application, or BLA, and was launched in the U.S. in November 2011. The FDA’s approval of the BLA for Erwinaze includes a number of post-marketing commitments related to the manufacture of Erwinaze by PBL. We cannot predict if or when PBL will comply with its manufacturing-related post-marketing commitments that are part of the BLA approval. In January 2017, the FDA issued a warning letter to PBL indicating that it was not satisfied with PBL’s response to the FDA Form 483 issued to PBL in March 2016, citing significant violations of current Good Manufacturing Practices, or cGMP, for finished pharmaceuticals and significant deviations from cGMP for active pharmaceutical ingredients, or APIs. In March 2017, PBL filed a response to the warning letter with the FDA. We attended a meeting with PBL and the FDA in the third quarter of 2017 to discuss the warning letter, and PBL continues to address the issues identified by the FDA in the warning letter. We cannot predict if or when PBL will correct the violations and deviations to the satisfaction of the FDA or whether the FDA will be satisfied with PBL’s response to the warning letter. Any failure to do so could result in the FDA refusing admission of Erwinaze into the U.S., as well as additional enforcement actions by the FDA and other regulatory entities.

In addition, a significant challenge to our ability to maintain current sales levels and to increase sales is our need to avoid supply disruptions of Erwinaze due to capacity constraints, production delays, quality or regulatory challenges or other manufacturing difficulties. The current manufacturing capacity for Erwinaze is completely absorbed by demand for the product. We are working with PBL to evaluate potential expansion of its production capacity to increase the supply of Erwinaze over the longer term and to address the production delays and quality challenges, and related regulatory scrutiny. As a consequence of constrained manufacturing capacity, we have had an extremely limited or no ability to build product inventory levels that can be used to absorb disruptions to supply resulting from quality, regulatory or other issues. We have experienced product quality, manufacturing and inventory challenges that have resulted, and may continue to result from time to time through the remainder of 2017 and into 2018, in disruptions in our ability to supply certain markets and have caused, and may in the future cause, us to implement batch-specific, modified product use instructions. Most recently, we experienced supply disruptions in the third quarter of 2017 in the U.S. and certain other countries. As capacity constraints and supply disruptions continue, whether as a result of continued quality or other manufacturing issues, regulatory issues or otherwise, we will be unable to build a desired excess level of product inventory, our ability to supply the market may continue to be compromised and physicians’ decisions to use Erwinaze have been, and in the future may continue to be, negatively impacted. Additional Erwinaze supply disruptions and/or our inability to expand production capacity could materially adversely affect our sales of and revenues from Erwinaze and our potential future maintenance and growth of the market for this product.

Our ability to successfully and sustainably grow sales of Erwinaze is subject to a number of other risks and uncertainties, including the limited population of patients with ALL and the incidence of hypersensitivity reactions to E. coli-derived asparaginase within that population, our need to apply for and receive marketing authorizations, through the European Union’s, or EU’s, mutual recognition procedure or otherwise, in certain additional countries if we decide to launch promotional efforts in those countries, as well as those other risks and uncertainties discussed in “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q.

In the three and nine months ended September 30, 2017, net product sales of Defitelio/defibrotide represented 8% of total net product sales for both periods. We acquired this product in January 2014 in connection with our acquisition of Gentium S.r.l., or Gentium, which we refer to as the Gentium Acquisition, and secured worldwide rights to the product by acquiring rights to defibrotide in the Americas in August 2014. We began to commercialize Defitelio in certain European countries in 2014. The process of maintaining pricing and reimbursement approvals is complex and varies from country to country. Many European countries periodically review their reimbursement classes, which could have an adverse impact on the reimbursement status of Defitelio. We cannot predict the outcome of periodic pricing and reimbursement reviews across Europe. If we are unable to maintain favorable pricing and reimbursement approvals in countries that represent significant markets, especially where a country’s reimbursed price influences other countries, our anticipated revenue from and growth prospects for Defitelio in the EU could be negatively affected.

In March 2016, the FDA approved our NDA for Defitelio for the treatment of adult and pediatric patients with VOD with renal or pulmonary dysfunction following HSCT. We launched Defitelio in the U.S. shortly after FDA approval, and our U.S. commercial launch is still at an early stage. Our ability to realize the anticipated benefits from our investment in Defitelio is subject to risks and uncertainties, including the continued acceptance of Defitelio in the U.S. by hospital pharmacy and therapeutics committees and the continued availability of adequate coverage and reimbursement by government programs and third party payors; the limited experience of U.S. physicians in diagnosing and treating VOD, particularly in adults, and the possibility that physicians may not initiate or may delay initiation of treatment while waiting for VOD symptoms to improve, or terminate treatment before the end of the recommended dosing schedule; our ability to successfully maintain or grow sales of Defitelio in Europe and other non-U.S. countries; delays or problems in the supply or manufacture of the product; the limited size of the population of VOD patients who are indicated for treatment with Defitelio (particularly if changes in HSCT treatment protocols reduce the incidence of VOD diagnosis); our ability to meet the post-marketing commitments and requirements imposed by the FDA in connection with its approval of our NDA for Defitelio; and our ability to obtain marketing approval in other countries and to develop the product for additional indications, as well as those other risks and uncertainties discussed in “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q. If sales of Defitelio do not reach the levels we expect, our anticipated revenue from the product will be negatively affected, which could have a material adverse effect on our business, financial condition, results of operations and growth prospects.

In addition, we made a significant investment in Vyxeos through the acquisition of Celator Pharmaceuticals Inc., or Celator, in July 2016, or the Celator Acquisition. On August 3, 2017, the FDA approved our NDA for Vyxeos for the treatment of adults with newly-diagnosed therapy-related AML or AML with myelodysplasia-related changes. We launched and began shipping Vyxeos in the U.S. in August 2017, and the launch is at an early stage. We submitted a marketing authorization application for Vyxeos to the European Medicines Agency in the fourth quarter of 2017. Our ability to realize the anticipated benefits from our investment in Vyxeos is subject to additional risks and uncertainties, including our ability to differentiate Vyxeos from other liposomal chemotherapies and generically available chemotherapy combinations with which physicians and treatment centers are more familiar; delays or problems in the supply or manufacture of the product, including the ability of the third parties upon which we rely to manufacture Vyxeos and its APIs to manufacture sufficient quantities in accordance with applicable specifications; the need to establish pricing and reimbursement support for Vyxeos in the U.S. and in other countries; the acceptance of Vyxeos in the U.S. and other countries by hospital pharmacy and therapeutics committees and the availability of adequate coverage and reimbursement by government programs and third party payors; the approval and use of new and novel compounds in AML that are only approved for use in combination with other agents and that have not been tested in combination with Vyxeos; and the limited size of the population of high-risk AML patients who may potentially be indicated for treatment with Vyxeos, particularly given the ongoing clinical trials by other companies with the same patient population, as well as those other risks and uncertainties discussed in “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10‑Q. If sales of Vyxeos do not reach the levels we expect, or we are unable to obtain regulatory approval for Vyxeos in Europe in a timely manner, or at all, our anticipated revenue from Vyxeos would be negatively affected, which could have a material adverse effect on our business, financial condition, results of operations and growth prospects.

In May and October 2016 and in February 2017, we received subpoenas from the U.S. Attorney’s Office for the District of Massachusetts requesting documents related to our support of 501(c)(3) organizations that provide financial assistance to Medicare patients and documents concerning the provision of financial assistance to Medicare patients taking drugs sold by us. We are cooperating with the investigation, and the outcome of this investigation could include an enforcement action or a settlement with the federal government. The Office of the Inspector General has established guidelines that permit pharmaceutical manufacturers to make donations to charitable organizations who provide co-pay assistance to Medicare patients, provided that such organizations, among other things, are bona fide charities, are entirely independent of and not controlled by the manufacturer, provide aid to applicants on a first-come basis according to consistent financial criteria, and do not link aid to use of a donor’s product. If we or our vendors or donation recipients are deemed to fail to comply with relevant laws, regulations or evolving government guidance in the operation of these programs, such facts could be used as the basis for an enforcement action by the federal government. If the federal government were to file an enforcement action against us as a result of the investigation and could establish the elements of a violation of relevant laws, we could be subject to damages, fines and penalties, which could be substantial, along with other criminal, civil or administrative sanctions. Any settlement with the federal government could result in substantial payments and entry into a corporate integrity agreement, which would impose costs and burdens on the operation of our business. For more information, see the risk factors under the headings “Changes in healthcare law and implementing regulations, including those based on recently enacted legislation, as well as changes in healthcare policy, may impact our business in ways that we cannot currently predict, and these changes could have a material adverse effect on our business and financial condition” and “We are subject to significant ongoing regulatory obligations and oversight, which may result in significant additional expense and limit our ability to commercialize our products” in Part II, Item 1A of this Quarterly Report on Form 10-Q.

Other key challenges and risks that we face include risks and uncertainties related to:


•	the challenges of protecting and enhancing our intellectual property rights;


•	the challenges of achieving and maintaining commercial success of our products;

•

delays or problems in the supply or manufacture of our products and product candidates, particularly with respect to certain products as to which we maintain limited inventories, our dependence on single source suppliers for most of our products, product candidates and APIs, and the requirement that we and our product suppliers be qualified by the FDA to manufacture product and comply with applicable manufacturing regulations;

•

the need to obtain and maintain appropriate pricing and reimbursement for our products in an increasingly challenging environment due to, among other things, the attention being paid to healthcare cost containment and pharmaceutical pricing in the U.S. and worldwide, including the need to obtain and maintain reimbursement for Xyrem in the U.S. in an environment in which we are subject to increasingly restrictive conditions for reimbursement required by government programs and third party payors;


•	our ability to identify and acquire, in-license or develop additional products or product candidates to grow our business;


•	the challenges of compliance with the requirements of the FDA, the DEA, and comparable non-U.S. regulatory agencies, including with respect to product labeling, requirements for distribution, obtaining sufficient DEA quotas where needed, marketing and promotional activities, patient assistance programs, adverse event reporting and product recalls or withdrawals;


•	the difficulty and uncertainty of pharmaceutical product development, including the timing thereof, and the uncertainty of clinical success, such as the risk that results from preclinical studies and/or early clinical trials may not be predictive of results obtained in later and larger clinical trials planned or anticipated to be conducted for our product candidates;


•	the inherent uncertainty associated with the regulatory approval process, especially as we continue to increase investment in our product pipeline development projects and undertake multiple planned regulatory submissions for our product candidates;

•

the risks associated with business combination or product or product candidate acquisition transactions, such as the challenges inherent in the integration of acquired businesses with our historical business, the increase in geographic dispersion among our centers of operation and the risks that we may acquire unanticipated liabilities along with acquired businesses or otherwise fail to realize the anticipated benefits (commercial or otherwise) from such transactions; and


•	possible restrictions on our ability and flexibility to pursue certain future opportunities as a result of our substantial outstanding debt obligations.

Any of these risks and uncertainties could have a material adverse effect on our business, financial condition, results of operations and growth prospects. All of these risks are discussed in greater detail, along with other risks, in “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q.

Derivative Instruments and Hedging Activities

We record the fair value of derivative instruments as either assets or liabilities on the consolidated balance sheets. Changes in the fair value of derivative instruments are recorded each period in current earnings or other comprehensive income (loss), depending on whether a derivative instrument is designated as part of a hedging transaction and, if it is, the type of hedging transaction. For a derivative to qualify as a hedge at inception and throughout the hedged period, we formally document the nature and relationships between the hedging instruments and hedged item. We assess, both at inception and on an on-going basis, whether the derivative instruments that are used in cash flow hedging transactions are highly effective in offsetting the changes in cash flows of hedged items. We assess hedge ineffectiveness on a quarterly basis and record the gain or loss related to the ineffective portion of derivative instruments, if any, to current earnings. If we determine that a forecasted transaction is no longer probable of occurring, we discontinue hedge accounting and any related unrealized gain or loss on the derivative instrument is recognized in current earnings. Derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings.

Concentrations of Risk

Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, investments and derivative contracts. Our investment policy permits investments in U.S. federal government and federal agency securities, corporate bonds or commercial paper issued by U.S. corporations, money market instruments, certain qualifying money market mutual funds, certain repurchase agreements, and tax-exempt obligations of U.S. states, agencies and municipalities and places restrictions on credit ratings, 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, cash equivalents and investments to the extent recorded on the balance sheet.

We manage our foreign currency transaction risk and interest rate risk within specified guidelines through the use of derivatives. All of our derivative instruments are utilized for risk management purposes, and we do not use derivatives for speculative trading purposes. As of September 30, 2017, we had foreign exchange forward contracts with notional amounts totaling $330.6 million. As of September 30, 2017, the asset fair value of outstanding foreign exchange forward contracts was $11.8 million. As of September 30, 2017, we had interest rate swap contracts with notional amounts totaling $300.0 million. These outstanding interest rate swap contracts had a net liability fair value of $1.1 million as of September 30, 2017. The counterparties to these contracts are large multinational commercial banks, and we believe the risk of nonperformance is not material.

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 specialty pharmaceutical distribution companies, primarily in the U.S., and to other international distributors and hospitals. Customer creditworthiness is monitored and collateral is not required. We monitor deteriorating economic conditions in certain European countries which may result in variability of the timing of cash receipts and an increase in the average length of time that it takes to collect accounts receivable outstanding. Historically, we have not experienced significant credit losses on our accounts receivable, and we do not expect to have write-offs or adjustments to accounts receivable which would have a material adverse effect on our financial position, liquidity or results of operations. As of September 30, 2017, five customers accounted for 91% of gross accounts receivable, including Express Scripts Specialty Distribution Services, Inc. and its affiliates, or Express Scripts, which accounted for 72% of gross accounts receivable, and McKesson Corporation and affiliates, or McKesson, which accounted for 17% of gross accounts receivable. As of December 31, 2016, five customers accounted for 90% of gross accounts receivable, including Express Scripts, which accounted for 73% of gross accounts receivable, and McKesson, which accounted for 13% of gross accounts receivable.

We depend on single source suppliers for most of our products, product candidates and their APIs. We commenced manufacturing of Xyrem in our facility in Athlone, Ireland in the third quarter of 2016.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the condensed consolidated financial statements and accompanying notes. 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 per Ordinary Share

Basic net income per ordinary share is based on the weighted-average number of ordinary shares outstanding. Diluted net income per ordinary share is based on the weighted-average number of ordinary shares outstanding and potentially dilutive ordinary shares outstanding.

Basic and diluted net income per ordinary share were computed as follows (in thousands, except per share amounts):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Numerator:
Net income	$	63,526	$	89,828	$	255,641	$	280,142
Denominator:
Weighted-average ordinary shares used in per share calculation - basic	60,108		60,437		60,030		60,692
Dilutive effect of employee equity incentive and purchase plans	1,328		1,358		1,330		1,458
Weighted-average ordinary shares used in per share calculation - diluted	61,436		61,795		61,360		62,150

Net income per ordinary share:
Basic	$	1.06	$	1.49	$	4.26	$	4.62
Diluted	$	1.03	$	1.45	$	4.17	$	4.51

Potentially dilutive ordinary shares from our employee equity incentive and purchase plans, our 1.875% exchangeable senior notes due 2021, or the 2021 Notes, and our 1.50% exchangeable senior notes due 2024, or the 2024 Notes, are determined by applying the treasury stock method to the assumed exercise of share options, the assumed vesting of outstanding restricted stock units, or RSUs, the assumed issuance of ordinary shares under our employee stock purchase plan, or ESPP, and the assumed issuance of ordinary shares upon exchange of the 2021 Notes and the 2024 Notes, which we refer to together as the Exchangeable Senior Notes. The potential issue of ordinary shares issuable upon exchange of the Exchangeable Senior Notes had no effect on diluted net income per ordinary share because the average price of our ordinary shares for the three and nine months ended September 30, 2017 and 2016 did not exceed the effective exchange prices per ordinary share of the Exchangeable Senior Notes.

The following table represents the weighted-average ordinary shares that were excluded from the calculation of diluted net income per ordinary share for the periods presented because including them would have an anti-dilutive effect (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2017	2016	2017	2016
Exchangeable Senior Notes	3,958	2,878	3,238	2,878
Options to purchase ordinary shares and RSUs	2,998	2,851	3,175	2,688
Ordinary shares under ESPP	16	45	9	72

Recent Accounting Pronouncements

In August 2017, the Financial Accounting Standards Board, or FASB, issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”. ASU No. 2017-12 amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in their financial statements. ASU No. 2017-12 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently assessing the impact of adoption of ASU No. 2017-12 on our consolidated financial statements and our approach to adoption.

In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” which simplifies the accounting for goodwill impairment by eliminating Step 2 of the current goodwill impairment test. Goodwill impairment will now be the amount by which the reporting unit’s carrying value exceeds its fair value, limited to the carrying value of the goodwill. The standard is effective for us beginning January 1, 2020. Early adoption is permitted for any impairment tests performed after January 1, 2017. The new guidance is not expected to have a material impact on our results of operations and financial position.

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” which provides clarification on the definition of a business and adds guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for us beginning January 1, 2018. Early adoption is permitted. The future impact of ASU No. 2017-01 will be dependent upon the nature of our future acquisition or disposition transactions, if any.

In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” which requires an entity to recognize the income tax consequences of an intra-entity asset transfer, other than an intra-entity asset transfer of inventory, when the transfer occurs. The standard is effective for us beginning January 1, 2018. Early adoption is permitted. We plan to adopt ASU No. 2016-16 at its effective date and do not expect adoption to have a material impact on our results of operations and financial position.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. ASU 2016-15 addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard is effective for us beginning January 1, 2018. Early adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize a right-of-use asset, which represents the lessee’s right to use, or control the use of, a specified asset for the lease term, and a corresponding lease liability, which represents the lessee’s obligation to make lease payments under a lease, measured on a discounted basis. ASU No. 2016-02 is effective beginning January 1, 2019 and early adoption is permitted. ASU No. 2016-02 must be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The adoption of ASU No. 2016-02 will result in a significant increase in our consolidated balance sheet for right-of-use assets and lease liabilities. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for the lease agreements we entered into in January 2015 and September 2017 to lease office space located in Palo Alto, California in buildings constructed or to be constructed by the landlord, which are accounted for as build-to-suit arrangements under existing accounting standards, and the lease agreement we entered into in August 2016 for office space in Dublin, Ireland.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”. The standard states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity will need to identify the contract with a customer; identify the separate performance obligations in the contract; determine the transaction price; allocate the transaction price to the separate performance obligations in the contract; and recognize revenue when (or as) the entity satisfies each performance obligation. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date”, which deferred the effective date of ASU No. 2014-09. ASU No. 2014-09 will now be effective for us beginning January 1, 2018 and can be adopted on a full retrospective basis or on a modified retrospective basis. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations”, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. We plan to adopt ASU No. 2014-09 at its effective date on a modified retrospective basis. We have substantially completed our review of existing revenue contracts and currently do not anticipate that the implementation of ASU No. 2014-09 will have a material impact on our results of operations and financial position. We are continuing to review the impact that the new standard will have on our financial statement disclosures and to identify any changes required to our accounting policies, business processes and internal controls to support the new accounting and disclosure requirements.

Collaboration and Option Agreement	9 Months Ended
Collaboration and Option Agreement	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaboration and Option Agreement	Collaboration and Option Agreement In August 2017, we entered into a collaboration and option agreement with ImmunoGen, Inc., or ImmunoGen, granting us rights to opt into exclusive, worldwide licenses to develop and commercialize two early-stage, hematology-related antibody-drug conjugate, or ADC, programs, as well as an additional program to be designated during the term of the agreement. The programs covered under the agreement include IMGN779, a CD33-targeted ADC for the treatment of AML in Phase 1 testing, and IMGN632, a CD123-targeted ADC for hematological malignancies expected to enter clinical testing before the end of 2017. Under the terms of the agreement, ImmunoGen will be responsible for the development of the three ADC programs prior to any potential opt-in by us. Following any opt-in, we would be responsible for any further development as well as for potential regulatory submissions and commercialization. As part of the agreement, we paid ImmunoGen a non-refundable upfront payment of $75.0 million, which was charged to acquired in-process research and development, or IPR&D, expense upon closing of the transaction. Additionally, we will pay ImmunoGen up to $100 million in development funding over 7 years to support the three ADC programs. For each program, we may exercise our opt-in right at any time prior to a pivotal study or any time prior to a BLA upon payment of an option exercise fee. The option exercise fee depends on the timing of exercise and certain other conditions. For each program to which we elect to opt-in, ImmunoGen would be eligible to receive milestone payments based on receiving regulatory approval of the applicable product, plus tiered royalties as a percentage of commercial sales. After opt-in, we will share with ImmunoGen the costs associated with developing and obtaining regulatory approvals of the applicable product in the U.S. and the EU. ImmunoGen has the right to co-commercialize one product (or two products, under certain limited circumstances) with us in the U.S. with U.S. profit-sharing in lieu of our payment of applicable U.S. milestone and royalties to ImmunoGen.

Cash and Available-for-Sale Securities

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Cash and Available-for-Sale Securities

Cash, cash equivalents and investments consisted of the following (in thousands):



	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Investments
Cash	$	122,154	$	—	$	—	$	122,154	$	122,154	$	—
Time deposits	220,000		—		—		220,000		20,000		200,000
Money market funds	110,461		—		—		110,461		110,461		—
Totals	$	452,615	$	—	$	—	$	452,615	$	252,615	$	200,000

	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Investments
Cash	$	215,963	$	—	$	—	$	215,963	$	215,963	$	—
Time deposits	210,000		—		—		210,000		150,000		60,000
Totals	$	425,963	$	—	$	—	$	425,963	$	365,963	$	60,000

Cash equivalents and investments are considered available-for-sale securities. We use the specific-identification method for calculating realized gains and losses on securities sold and include them in interest expense, net in the condensed consolidated statements of income. Our investments balance represents time deposits with original maturities of greater than three months.

Fair Value Measurement

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurement

The following table summarizes, by major security type, our available-for-sale securities and derivative contracts as of September 30, 2017 and December 31, 2016 that were measured at fair value on a recurring basis and were categorized using the fair value hierarchy (in thousands):



	September 30, 2017						December 31, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total Estimated Fair Value		Significant Other Observable Inputs (Level 2)		Total Estimated Fair Value
Assets:
Available-for-sale securities:
Time deposits	$	—	$	220,000	$	220,000	$	210,000	$	210,000
Money market funds	110,461		—		110,461		—		—
Interest rate contracts	—		201		201		—		—
Foreign exchange forward contracts	—		12,124		12,124		—		—
Totals	$	110,461	$	232,325	$	342,786	$	210,000	$	210,000
Liabilities:
Interest rate contracts	$	—	$	1,322	$	1,322	$	—	$	—
Foreign exchange forward contracts	—		291		291		—		—
Totals	$	—	$	1,613	$	1,613	$	—	$	—

As of September 30, 2017, our available-for-sale securities included time deposits and money market funds and their carrying values were approximately equal to their fair values. Time deposits were measured at fair value using Level 2 inputs and money market funds were measured using quoted prices in active markets, which represent Level 1 inputs. Level 2 inputs, obtained from various third party data providers, represent quoted prices for similar assets in active markets, or these inputs were derived from observable market data, or if not directly observable, were derived from or corroborated by other observable market data.

Our derivative assets and liabilities include interest rate and foreign exchange derivatives that are measured at fair value using observable market inputs such as forward rates, interest rates, our own credit risk as well as an evaluation of our counterparties’ credit risks. Based on these inputs, the derivative assets and liabilities are classified within Level 2 of the fair value hierarchy.

There were no transfers between the different levels of the fair value hierarchy in 2017 or in 2016.

As of September 30, 2017, the estimated fair values of our 2021 Notes and 2024 Notes were approximately $607 million and $565 million, respectively. The fair values of our 2021 Notes and 2024 Notes were estimated using quoted market prices obtained from brokers (Level 2). The estimated fair value of our borrowing under our term loan was approximately equal to its book value based on the borrowing rates currently available for variable rate loans (Level 2).

- 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

Derivative and Hedging Activities

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative and Hedging Activities

We are exposed to certain risks arising from operating internationally, including fluctuations in interest rates on our outstanding term loan borrowings and fluctuations in foreign exchange rates primarily related to the translation of euro-denominated net monetary liabilities, including intercompany balances, held by subsidiaries with a U.S. dollar functional currency. We manage these exposures within specified guidelines through the use of derivatives. All of our derivative instruments are utilized for risk management purposes, and we do not use derivatives for speculative trading purposes.

To achieve a desired mix of floating and fixed interest rates on our variable rate debt, we entered into interest rate swap agreements in March 2017 which are effective from March 3, 2017 until July 12, 2021. These agreements hedge contractual term loan interest rates. As of September 30, 2017, the interest rate swap agreements had a notional amount of $300.0 million. As a result of these agreements, the interest rate on a portion of our term loan borrowings was fixed at 1.895%, plus the borrowing spread, until July 12, 2021.

The effective portion of changes in the fair value of derivatives designated as and that qualify as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value is recognized directly in earnings. The impact on accumulated other comprehensive loss and earnings from derivative instruments that qualified as cash flow hedges for the three and nine months ended September 30, 2017 was as follows (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
Interest Rate Contracts:	2017			2016		2017			2016
Loss recognized in accumulated other comprehensive loss, net of tax	$	(59	)	$	—	$	(2,234	)	$	—
Loss reclassified from accumulated other comprehensive loss to interest expense, net of tax	$	451		$	—	$	1,278		$	—

Assuming no change in LIBOR-based interest rates from market rates as of September 30, 2017, $1.2 million of losses recognized in accumulated other comprehensive loss will be reclassified to earnings over the next 12 months. The gains related to the ineffective portion of derivative instruments that qualified as cash flow hedges for the three and nine months ended September 30, 2017 were minimal.

We enter into foreign exchange forward contracts, with durations of up to 365 days, designed to limit the exposure to fluctuations in foreign exchange rates related to the translation of certain non-U.S. dollar denominated liabilities, including intercompany balances. Hedge accounting is not applied to these derivative instruments as gains and losses on these hedge transactions are designed to offset gains and losses on underlying balance sheet exposures. As of September 30, 2017, the notional amount of foreign exchange contracts where hedge accounting is not applied was $330.6 million. The foreign exchange loss in our condensed consolidated statements of income included gains of $2.8 million and $11.8 million associated with foreign exchange contracts not designated as hedging instruments for the three and nine months ended September 30, 2017, respectively.

The cash flow effects of our derivative contracts for the nine months ended September 30, 2017 are included within net cash provided by operating activities in the condensed consolidated statements of cash flows.

The following table summarizes the fair value of outstanding derivatives as of September 30, 2017 (in thousands):



	September 30, 2017
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate contracts	Other non-current assets	$	201	Accrued liabilities	$	1,322
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other current assets	12,124		Accrued liabilities	291
Total fair value of derivative instruments		$	12,325		$	1,613

Although we do not offset derivative assets and liabilities within our condensed consolidated balance sheets, our International Swap and Derivatives Association agreements provide for net settlement of transactions that are due to or from the same counterparty upon early termination of the agreement due to an event of default or other termination event. The following table summarizes the potential effect on our condensed consolidated balance sheets of offsetting our interest rate contracts and foreign exchange forward contracts subject to such provisions (in thousands):



	September 30, 2017
	Gross Amounts of Recognized Assets/Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets/Liabilities Presented in the Consolidated Balance Sheet			Gross Amounts Not Offset in the Consolidated Balance Sheet
Description	Gross Amounts of Recognized Assets/Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet					Derivative Financial Instruments			Cash Collateral Received (Pledged)		Net Amount
Derivative assets	$	1,938		$	—	$	1,938		$	(560	)	$	—	$	1,378
Derivative liabilities	$	(560	)	$	—	$	(560	)	$	560		$	—	$	—

There were no outstanding derivatives as of December 31, 2016.

Inventories

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following (in thousands):



	September 30, 2017		December 31, 2016
Raw materials	$	2,681	$	1,547
Work in process	19,965		18,689
Finished goods	18,698		13,815
Total inventories	$	41,344	$	34,051

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

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



Balance at December 31, 2016	$	893,810
Foreign exchange	47,618
Balance at September 30, 2017	$	941,428

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



	September 30, 2017								December 31, 2016
	Remaining Weighted- Average Useful Life (In years)	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Acquired developed technologies	15.1	$	3,376,895	$	(505,369	)	$	2,871,526	$	1,477,618	$	(410,523	)	$	1,067,095
Manufacturing contracts	0.6	12,647		(11,670		)	977		11,278		(8,292		)	2,986
Trademarks	—	2,905		(2,905		)	—		2,872		(2,872		)	—
Total finite-lived intangible assets		3,392,447		(519,944		)	2,872,503		1,491,768		(421,687		)	1,070,081
Acquired in-process research and development assets		146,532		—			146,532		1,941,920		—			1,941,920
Total intangible assets		$	3,538,979	$	(519,944	)	$	3,019,035	$	3,433,688	$	(421,687	)	$	3,012,001

The increase in the gross carrying amount of intangible assets as of September 30, 2017 compared to December 31, 2016 reflected the positive impact of foreign currency translation adjustments, which was due to the strengthening of the euro against the U.S. dollar. Additionally, after receiving FDA approval of our NDA for Vyxeos in August 2017, we reclassified $1.8 billion of acquired IPR&D from an indefinite-lived intangible asset to an acquired developed technology finite-lived intangible asset. This acquired developed technology asset is being amortized over its estimated useful life of 18 years.

The assumptions and estimates used to determine future cash flows and remaining useful lives of our intangible and other long-lived assets are complex and subjective. They can be affected by various factors, including external factors, such as industry and economic trends, and internal factors such as changes in our business strategy and our forecasts for specific product lines.

Based on finite-lived intangible assets recorded as of September 30, 2017, and assuming the underlying assets will not be impaired and that we will not change the expected lives of the assets, future amortization expenses were estimated as follows (in thousands):



Year Ending December 31,	Estimated Amortization Expense
2017 (remainder)	$	52,966
2018	208,830
2019	208,595
2020	205,644
2021	204,609
Thereafter	1,991,859
Total	$	2,872,503

- 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

Certain Balance Sheet Items

9 Months Ended

Sep. 30, 2017

Certain Balance Sheet Items [Abstract]

Certain Balance Sheet Items

Property and equipment consisted of the following (in thousands):



	September 30, 2017			December 31, 2016
Construction-in-progress	$	82,802		$	33,427
Land and buildings	46,616			46,033
Manufacturing equipment and machinery	22,903			19,596
Computer software	19,281			17,832
Leasehold improvements	12,953			9,328
Computer equipment	11,912			10,980
Furniture and fixtures	3,373			2,436
Subtotal	199,840			139,632
Less accumulated depreciation and amortization	(40,454		)	(32,142		)
Property and equipment, net	$	159,386		$	107,490

Accrued liabilities consisted of the following (in thousands):



	September 30, 2017		December 31, 2016
Rebates and other sales deductions	$	76,930	$	72,344
Employee compensation and benefits	46,672		43,363
Royalties	11,309		11,643
Accrued construction-in-progress	5,488		1,597
Inventory-related accruals	3,843		3,350
Sales returns reserve	3,470		4,366
Professional fees	3,244		4,596
Clinical trial accruals	2,657		10,139
Selling and marketing accruals	2,384		3,924
Accrued interest	2,347		5,179
Accrued contract termination fees	—		11,612
Other	21,546		21,155
Total accrued liabilities	$	179,890	$	193,268

Debt

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt

The following table summarizes the carrying amount of our indebtedness (in thousands):



	September 30, 2017			December 31, 2016
2021 Notes	$	575,000		$	575,000
Unamortized discount and debt issuance costs on 2021 Notes	(86,663		)	(101,094		)
2021 Notes, net	488,337			473,906

2024 Notes	575,000			—
Unamortized discount and debt issuance costs on 2024 Notes	(163,363		)	—
2024 Notes, net	411,637			—

Term loan	679,939			705,719
Borrowings under revolving credit facility	—			850,000
Total debt	1,579,913			2,029,625
Less current portion	36,094			36,094
Total long-term debt	$	1,543,819		$	1,993,531

Exchangeable Senior Notes Due 2024

In the third quarter of 2017, we completed a private placement of $575.0 million principal amount of 2024 Notes. We used the net proceeds from this offering to repay $500.0 million in outstanding loans under the revolving credit facility and to pay related fees and expenses. We used the remainder of the net proceeds for general corporate purposes. Interest on the 2024 Notes is payable semi-annually in cash in arrears on February 15 and August 15 of each year, beginning on February 15, 2018, at a rate of 1.50% per year. In certain circumstances, we may be required to pay additional amounts as a result of any applicable tax withholding or deductions required in respect of payments on the 2024 Notes. The 2024 Notes mature on August 15, 2024, unless earlier exchanged, repurchased or redeemed.

The holders of the 2024 Notes have the ability to require us to repurchase all or a portion of their 2024 Notes for cash in the event we undergo certain fundamental changes, such as specified change of control transactions, our liquidation or dissolution or the delisting of our ordinary shares from The NASDAQ Global Select Market. Prior to August 15, 2024, we may redeem the 2024 Notes, in whole but not in part, subject to compliance with certain conditions, if we have, or on the next interest payment date would, become obligated to pay to the holder of any 2024 Notes additional amounts as a result of certain tax-related events. We also may redeem the 2024 Notes on or after August 20, 2021, in whole or in part, if the last reported sale price per ordinary share has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide the notice of redemption.

The 2024 Notes are exchangeable at an initial exchange rate of 4.5659 ordinary shares per $1,000 principal amount of 2024 Notes, which is equivalent to an initial exchange price of approximately $219.02 per ordinary share. Upon exchange, the 2024 Notes may be settled in cash, ordinary shares or a combination of cash and ordinary shares, at our election. Our intent and policy is to settle the principal amount of the 2024 Notes in cash upon exchange. The exchange rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain make-whole fundamental changes occurring prior to the maturity date of the 2024 Notes or upon our issuance of a notice of redemption, we will in certain circumstances increase the exchange rate for holders of the 2024 Notes who elect to exchange their 2024 Notes in connection with that make-whole fundamental change or during the related redemption period. Prior to May 15, 2024, the 2024 Notes will be exchangeable only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

In accounting for the issuance of the 2024 Notes, we separated the 2024 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the estimated fair value of a similar liability that does not have an associated exchange feature. The carrying amount of the equity component representing the exchange option was determined by deducting the fair value of the liability component from the face value of the 2024 Notes as a whole. The excess of the principal amount of the liability component over its carrying amount will be amortized to interest expense over the expected life of the 2024 Notes using the effective interest method with an effective interest rate of 6.8% per annum. We have determined the expected life of the 2024 Notes to be equal to the original seven-year term. The equity component is not remeasured as long as it continues to meet the conditions for equity classification.

We allocated the total issuance costs incurred of $15.5 million to the liability and equity components based on their relative values. Issuance costs attributable to the liability component will be amortized to expense over the term of the 2024 Notes, and issuance costs attributable to the equity component were included with the equity component in our shareholders’ equity.

As of September 30, 2017, the carrying value of the equity component of the 2024 Notes, net of equity issuance costs, was $149.8 million.

The 2021 Notes and the 2024 Notes were issued by Jazz Investments I Limited, or the Issuer, a 100%-owned finance subsidiary of Jazz Pharmaceuticals plc. The 2021 Notes and the 2024 Notes are senior unsecured obligations of the Issuer and are fully and unconditionally guaranteed on a senior unsecured basis by Jazz Pharmaceuticals plc. No subsidiary of Jazz Pharmaceuticals plc guaranteed the 2021 or the 2024 Notes. Subject to certain local law restrictions on payment of dividends, among other things, and potential negative tax consequences, we are not aware of any significant restrictions on the ability of Jazz Pharmaceuticals plc to obtain funds from the Issuer or Jazz Pharmaceuticals plc’s other subsidiaries by dividend or loan, or any legal or economic restrictions on the ability of the Issuer or Jazz Pharmaceuticals plc’s other subsidiaries to transfer funds to Jazz Pharmaceuticals plc in the form of cash dividends, loans or advances. There is no assurance that in the future such restrictions will not be adopted.

Maturities

Scheduled maturities with respect to our long-term debt principal balances outstanding as of September 30, 2017 were as follows (in thousands):



Year Ending December 31,	Scheduled Long-Term Debt Maturities
2017 (remainder)	$	9,023
2018	40,606
2019	58,652
2020	76,699
2021	1,075,801
Thereafter	575,000
Total	$	1,835,781

Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

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 executive 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 and 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 did not recognize any liabilities relating to these obligations as of September 30, 2017 and December 31, 2016. 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.

Lease and Other Commitments

We have noncancelable operating leases for our office buildings and we are obligated to make payments under noncancelable operating leases for automobiles used by our sales force. Future minimum lease payments under our noncancelable operating and facility leases as of September 30, 2017 were as follows (in thousands):



Year Ending December 31,	Lease Payments
2017 (remainder)	$	6,615
2018	15,811
2019	16,885
2020	19,127
2021	19,166
Thereafter	165,797
Total	$	243,401

In January 2015, we entered into an agreement to lease office space located in Palo Alto, California in a building subsequently constructed by the landlord. We began to occupy this office space in October 2017. In September 2017, we entered into an agreement to lease office space located in Palo Alto, California in a second building to be constructed by the same landlord. We expect to occupy this office space by the end of 2019. In connection with these leases, the landlord is providing a tenant improvement allowance for the costs associated with the design, development and construction of tenant improvements for the leased facilities. We are obligated to fund all costs incurred in excess of the tenant improvement allowance. The scope of the planned tenant improvements do not qualify as “normal tenant improvements” under the lease accounting guidance. Accordingly, for accounting purposes, we have concluded we are the deemed owner of the buildings during the construction period. As of September 30, 2017, we recorded project construction costs of $60.9 million incurred by the landlord as construction-in-progress in property and equipment, net and a corresponding financing obligation in other non-current liabilities in our condensed consolidated balance sheets. We will increase the asset and financing obligation as additional building costs are incurred by the landlord during the construction period. We recorded rent expense associated with the ground leases of $0.5 million and $1.4 million in the three and nine months ended September 30, 2017, respectively, in our condensed consolidated statements of income.

As of September 30, 2017, we had $43.2 million of noncancelable purchase commitments due within one year, primarily related to agreements with third party manufacturers.

Legal Proceedings

We are involved in legal proceedings, including the following matters:

Xyrem ANDA Matters. On December 10, 2012, we received a notice of Paragraph IV Patent Certification, or Paragraph IV Certification, from Amneal that it had submitted an ANDA to the FDA requesting approval to market a generic version of Xyrem. On January 18, 2013, we filed a lawsuit against Amneal in the District Court alleging that our patents covering Xyrem are infringed or will be infringed by Amneal’s ANDA and seeking a permanent injunction to prevent Amneal from introducing a generic version of Xyrem that would infringe these patents. On November 21, 2013, we received a notice of Paragraph IV Certification from Par Pharmaceutical, Inc., or Par, that it had submitted an ANDA to the FDA requesting approval to market a generic version of Xyrem. On December 27, 2013, we filed a lawsuit against Par in the District Court alleging that our patents covering Xyrem are infringed or will be infringed by Par’s ANDA and seeking a permanent injunction to prevent Par from introducing a generic version of Xyrem that would infringe these patents.

In April 2014, Amneal asked the District Court to consolidate its case with the Par case, stating that both cases would proceed on the schedule for the Par case. The District Court granted this request in May 2014. The order consolidating the cases extended Amneal’s 30-month stay period to coincide with the date of Par’s 30-month stay period. The stay expired on May 20, 2016.

Additional patents covering Xyrem have been issued since April 2014 and have been listed in the Orange Book for Xyrem. Amneal and Par have given us additional notices of Paragraph IV Certifications regarding such patents, and we have filed additional lawsuits against Amneal and Par in the District Court alleging that our patents covering Xyrem are infringed or will be infringed by Amneal’s and Par’s ANDAs and seeking a permanent injunction to prevent Amneal and Par from introducing a generic version of Xyrem that would infringe our patents. In March 2016, Par moved to dismiss claims involving our patents covering a part of the Xyrem label that instructs prescribers on adjusting the dose of Xyrem when it is being co-administered with divalproex sodium (also known as valproate or valproic acid), or our DDI patents. In August 2016, we and Par stipulated to dismiss claims relating to our patents covering the formulation of Xyrem on the grounds that Par had notified FDA that it had converted its Paragraph IV Certifications to Paragraph III Certifications. In September 2017, we and Amneal stipulated to dismiss claims relating to certain of our patents covering the formulation of Xyrem on the grounds that Amneal had notified FDA that it had converted its Paragraph IV Certifications as to these patents to Paragraph III Certifications.

On October 30, 2014, we received a notice of Paragraph IV Certification from Teva Pharmaceutical Industries Ltd., formerly known as Watson Laboratories, Inc., or Teva, that it had submitted an ANDA to the FDA requesting approval to market a generic version of Xyrem. On December 11, 2014, we filed a lawsuit against Teva in the District Court alleging that our patents covering Xyrem are or will be infringed by Teva’s ANDA and seeking a permanent injunction to prevent Teva from introducing a generic version of Xyrem that would infringe these patents. In March 2015, Teva moved to dismiss the portion of the case based on our Orange Book-listed REMS patents on the grounds that these patents do not cover patentable subject matter. In November 2015, the District Court administratively terminated this motion to dismiss (without prejudice) pending the outcome of IPR proceedings before the PTAB relating to the patents that were the subject of Teva’s motion. Since March 2015, we have received an additional notice of Paragraph IV Certification from Teva regarding newly issued patents for Xyrem listed in the Orange Book, and we have filed an additional lawsuit against Teva in the District Court alleging that our patents covering Xyrem are or will be infringed by Teva’s ANDA and seeking a permanent injunction to prevent Teva from introducing a generic version of Xyrem that would infringe these patents.

In April 2015, the District Court issued an order that consolidated all then-pending lawsuits against Amneal, Par and Teva into one case.

On July 23, 2015, we received a notice of Paragraph IV Certification from Lupin Inc., or Lupin, that it had submitted an ANDA to the FDA requesting approval to market a generic version of Xyrem. On September 2, 2015, we filed a lawsuit in the District Court alleging that our patents covering Xyrem are or will be infringed by Lupin’s ANDA and seeking a permanent injunction to prevent Lupin from introducing a generic version of Xyrem that would infringe our patents.

In January, April and June 2016, the District Court issued orders consolidating all of the cases then pending against Amneal, Par, Teva and Lupin into a single case for all purposes. Although no trial date has been set, discovery is scheduled to conclude in the second quarter of 2018, and the trial in this consolidated case could occur as early as mid-2018.

Additional patents covering Xyrem have been issued since June 2016 and have been listed in the Orange Book for Xyrem. We have received additional Paragraph IV Certification notices from Amneal regarding such patents and have filed new lawsuits in the District Court, alleging that our additional patents covering Xyrem are or will be infringed by Amneal’s ANDA and seeking a permanent injunction to prevent Amneal from introducing a generic version of Xyrem that would infringe our patents.

On June 14, 2017, we received a notice of Paragraph IV Certification from Ascent that it had submitted an ANDA to the FDA requesting approval to market a generic version of Xyrem. On July 27, 2017, we filed lawsuits against Ascent in the District Court as well as in the EDNY, where Ascent is incorporated, alleging that our patents covering Xyrem are infringed or will be infringed by Ascent’s ANDA and seeking a permanent injunction to prevent Ascent from introducing a generic version of Xyrem that would infringe our patents. On August 22, 2017, we settled all lawsuits with Ascent, granting Ascent a license to manufacture, market and sell its generic version of Xyrem on or after December 31, 2025, or earlier depending on the occurrence of certain events.

We had previously settled lawsuits with three other ANDA filers, and the specific terms of the settlement agreements are confidential. The settlements do not resolve the consolidated case against Amneal, Par, Teva and Lupin, which remains pending. We cannot predict the specific timing or outcome of events with respect to the remaining defendants or the impact of developments involving any specific parties or patents on other ongoing proceedings with any ANDA filer.

Xyrem Post-Grant Patent Review Matters. In January 2015, certain of the ANDA filers filed petitions for IPR with respect to the validity of the six REMS patents. In July 2016, the PTAB issued final decisions that the claims of these six patents are unpatentable; as a result, if the United States Court of Appeals for the Federal Circuit upholds those decisions on appeal, these claims will be canceled. We have filed notices of appeal with respect to these IPR decisions to the United States Court of Appeals for the Federal Circuit. In September 2015, certain of the ANDA filers filed a petition for IPR with respect to the validity of an additional REMS patent. In March 2016, the PTAB partially instituted an IPR on three claims of a seventh REMS patent, declining to review 25 of 28 claims. In March 2017, the PTAB issued a final decision that the three claims that were reviewed by the PTAB are unpatentable. We have filed a notice of appeal of that decision on May 18, 2017, and the Court of Appeals for the Federal Circuit has consolidated the appeal of the March 2017 decision with the pending appeals of the July 2016 decisions.

We cannot predict whether additional post-grant patent review challenges will be filed by any of the ANDA filers or any other entity, the outcome of any pending IPR or other proceeding, the outcome of any appeal of the July 2016 and March 2017 IPR decisions with respect to the REMS patents or the impact any IPR or other proceeding might have on ongoing ANDA litigation proceedings or other aspects of our Xyrem business.

Shareholder Litigation Matters Relating to Celator Acquisition. On June 21, 2016, a putative class-action lawsuit challenging our Celator Acquisition, captioned Dunbar v. Celator Pharmaceuticals, Inc., or the Dunbar action, was filed in the Superior Court of New Jersey. We refer to our acquisition of Celator in this report as the Celator Acquisition. The complaint was filed against Celator, each member of the Celator board of directors, Jazz Pharmaceuticals plc and our wholly owned subsidiary Plex Merger Sub, Inc., or Plex. The complaint generally alleges that the Celator directors breached their fiduciary duties in connection with the Celator Acquisition, and that Jazz Pharmaceuticals plc and Plex aided and abetted these alleged breaches of fiduciary duty. The complaint also generally asserts that the Celator directors breached their fiduciary duties to Celator’s public stockholders by, among other things, (i) agreeing to sell Celator to us at an inadequate price, (ii) implementing an unfair process, (iii) agreeing to certain provisions of the merger agreement for the Celator Acquisition that allegedly favored us and deterred alternative bids, and (iv) failing to disclose purportedly material information in Celator’s Schedule 14D-9 filing with the U.S. Securities and Exchange Commission, or SEC. The plaintiff sought, among other things, an injunction against the consummation of the Celator Acquisition and an award of costs and expenses, including a reasonable allowance for attorneys’ and experts’ fees.

Between June 27, 2016 and June 29, 2016, two putative class-action lawsuits challenging the Celator Acquisition, captioned Palmisciano v. Celator Pharmaceuticals, Inc., or the Palmisciano action, and Barreto v. Celator Pharmaceuticals, Inc., or the Barreto action, were filed in the District Court. The complaints were filed against Celator and each member of the Celator board of directors. The complaints assert causes of action under sections 14 and 20 of the Securities Exchange Act of 1934, as amended, predicated on Celator’s and the Celator directors’ alleged failure to disclose purportedly material information in Celator’s Schedule 14D-9 filing with the SEC. The plaintiffs sought, among other things, an injunction against the consummation of the Celator Acquisition and an award of costs and expenses, including a reasonable allowance for attorneys’ and experts’ fees. Neither Jazz Pharmaceuticals plc nor Plex were named defendants in these actions.

On July 6, 2016, the defendants to the Dunbar action, the Palmisciano action and the Barreto action entered into a memorandum of understanding, or MOU, regarding settlement of these actions with the plaintiffs. The MOU outlines the terms of the parties’ agreement in principle to settle and release all claims which were or could have been asserted in these actions. In consideration for such settlement and release, the parties to these actions agreed, among other things, that Celator would amend its Schedule 14D-9 to include certain supplemental disclosures. The Schedule 14D-9 was amended by Celator on July 6, 2016, and the Celator Acquisition was completed on July 12, 2016. In June 2017, the parties to the MOU agreed to terminate the MOU, and the plaintiffs agreed to voluntarily dismiss the remaining actions. Thereafter, the parties negotiated and ultimately agreed, in October 2017, on a mootness fee paid to plaintiffs’ counsel. The Dunbar, Palmisciano and Barreto actions have each been dismissed with prejudice.

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.

Other Contingencies

In May 2016, we received a subpoena from the U.S. Attorney’s Office for the District of Massachusetts requesting documents related to our support of 501(c)(3) organizations that provide financial assistance to Medicare patients, and, for Xyrem, documents concerning the provision of financial assistance to Medicare patients. In October 2016, we received a second subpoena updating and further specifying document requests regarding support to 501(c)(3) organizations that provide financial assistance to Medicare patients and the provision of financial assistance for Medicare patients taking drugs sold by us. In February 2017, we received a third subpoena requesting documents regarding our support to a specific 501(c)(3) organization that established a fund for narcolepsy patients in January 2017. Other companies have disclosed similar subpoenas and continuing inquiries. We are cooperating with this investigation. We are unable to predict how long this investigation will continue, whether we will receive additional subpoenas in connection with this investigation, or its outcome, but we expect that we will continue to incur significant costs in connection with the investigation, regardless of the outcome. If the federal government were to file an enforcement action against us as a result of the investigation and could establish the elements of a violation of relevant laws, we could be subject to damages, fines and penalties, which could be substantial, along with other criminal, civil or administrative sanctions. Any settlement with the federal government could result in substantial payments and entry into a corporate integrity agreement, which would impose costs and burdens on the operation of our business. For more information, see the risk factor under the heading “We are subject to significant ongoing regulatory obligations and oversight, which may result in significant additional expense and limit our ability to commercialize our products” in Part II, Item 1A of this Quarterly Report on Form 10-Q.

Shareholders' Equity

9 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

The following tables present a reconciliation of our beginning and ending balances in shareholders’ equity for the nine months ended September 30, 2017 and 2016 (in thousands):



	Total Shareholders' Equity
Shareholders' equity at January 1, 2017	$	1,877,339
Issuance of 2024 Notes	149,767
Issuance of ordinary shares in conjunction with employee equity incentive and purchase plans	22,793
Employee withholding taxes related to share-based awards	(17,909		)
Share-based compensation	79,745
Shares repurchased	(56,425		)
Other comprehensive income	158,346
Net income	255,641
Shareholders' equity at September 30, 2017	$	2,469,297



	Total Shareholders' Equity
Shareholders' equity at January 1, 2016	$	1,706,333
Issuance of ordinary shares in conjunction with employee equity incentive and purchase plans	17,951
Employee withholding taxes related to share-based awards	(20,595		)
Share-based compensation	75,176
Shares repurchased	(259,819		)
Other comprehensive income	32,096
Net income	280,142
Shareholders' equity at September 30, 2016	$	1,831,284

Share Repurchase Program

In November 2016, our board of directors authorized a new share repurchase program pursuant to which we are authorized to repurchase a number of ordinary shares having an aggregate purchase price of up to $300.0 million, exclusive of any brokerage commissions. In the nine months ended September 30, 2017, we spent a total of $56.4 million to purchase 0.4 million of our ordinary shares under the share repurchase program at an average total purchase price, including commissions, of $141.73 per share. As of September 30, 2017, the remaining amount authorized under the share repurchase program was $225.1 million.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss as of September 30, 2017 and December 31, 2016 were as follows (in thousands):



	Net Unrealized Losses From Hedging Activities			Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Loss
Balance at December 31, 2016	$	—		$	(317,333	)	$	(317,333	)
Other comprehensive income (loss) before reclassifications	(2,234		)	159,302			157,068
Amounts reclassified from accumulated other comprehensive loss	1,278			—			1,278
Net other comprehensive income (loss)	(956		)	159,302			158,346
Balance at September 30, 2017	$	(956	)	$	(158,031	)	$	(158,987	)

During the nine months ended September 30, 2017, other comprehensive income (loss) reflects foreign currency translation adjustments, primarily due to the strengthening of the euro against the U.S. dollar, and the net unrealized losses on derivatives that qualify as cash flow hedges.

Segment and Other Information

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment and Other Information

Our operating segment is reported in a manner consistent with the internal reporting provided to the chief operating decision maker, or CODM. Our CODM has been identified as our chief executive officer. We have determined that we operate in one business segment, which is the identification, development and commercialization of meaningful pharmaceutical products that address unmet medical needs. The following table presents a summary of total revenues (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Xyrem	$	303,870	$	285,907	$	874,222	$	816,412
Erwinaze/Erwinase	49,173		42,986		149,585		143,907
Defitelio/defibrotide	31,213		28,137		97,351		79,280
Vyxeos	9,719		—		9,719		—
Prialt^® (ziconotide) intrathecal infusion	7,930		8,783		21,303		23,065
Other	6,066		5,808		19,124		21,983
Product sales, net	407,971		371,621		1,171,304		1,084,647
Royalties and contract revenues	3,884		2,560		10,990		6,705
Total revenues	$	411,855	$	374,181	$	1,182,294	$	1,091,352

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
United States	$	372,846	$	339,825	$	1,068,716	$	991,557
Europe	24,937		25,788		83,667		79,557
All other	14,072		8,568		29,911		20,238
Total revenues	$	411,855	$	374,181	$	1,182,294	$	1,091,352

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Express Scripts	74	%	76	%	74	%	75	%
McKesson	14	%	13	%	14	%	14	%

The following table presents total long-lived assets, consisting of property and equipment, by location (in thousands):



	September 30, 2017		December 31, 2016
United States	$	84,764	$	35,791
Ireland	64,947		62,453
Italy	7,917		7,000
Other	1,758		2,246
Total long-lived assets	$	159,386	$	107,490

Share-Based Compensation

9 Months Ended

Sep. 30, 2017

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

Share-Based Compensation

Share-based compensation expense related to share options, RSUs and grants under our ESPP was as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Selling, general and administrative	$	20,903		$	19,511		$	61,582		$	60,664
Research and development	4,650			4,056			13,651			10,867
Cost of product sales	1,573			1,307			4,346			2,959
Total share-based compensation expense, pre-tax	27,126			24,874			79,579			74,490
Income tax benefit from share-based compensation expense	(6,354		)	(8,486		)	(23,816		)	(24,341		)
Total share-based compensation expense, net of tax	$	20,772		$	16,388		$	55,763		$	50,149

Share Options

The table below shows the number of shares underlying options granted to purchase our ordinary shares, the weighted-average assumptions used in the Black-Scholes option pricing model and the resulting weighted-average grant date fair value of share options granted:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Shares underlying options granted (in thousands)	87			147			1,343			1,247
Grant date fair value	$	45.87		$	42.89		$	42.69		$	40.85
Black-Scholes option pricing model assumption information:
Volatility	35		%	37		%	35		%	39		%
Expected term (years)	4.3			4.2			4.3			4.2
Range of risk-free rates	1.6-1.8%			0.8-1.0%			1.6-1.8%			0.8-1.5%
Expected dividend yield	—		%	—		%	—		%	—		%

Restricted Stock Units

The table below shows the number of RSUs granted covering an equal number of our ordinary shares and the weighted-average grant date fair value of RSUs granted:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
RSUs granted (in thousands)	35		59		537		495
Grant date fair value	$	148.60	$	138.55	$	137.23	$	126.80

The fair value of RSUs is determined on the date of grant based on the market price of our ordinary shares on that date. The fair value of RSUs is expensed ratably over the vesting period, generally over four years.

As of September 30, 2017, compensation cost not yet recognized related to unvested share options and RSUs was $83.2 million and $100.5 million, respectively, which is expected to be recognized over a weighted-average period of 2.7 years and 2.6 years, respectively.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our income tax provision was $1.2 million and $65.9 million in the three and nine months ended September 30, 2017, respectively, compared to $26.4 million and $100.9 million for the same periods in 2016. The effective tax rates were 1.9% and 20.5% in the three and nine months ended September 30, 2017, respectively, compared to 22.7% and 26.5% for the same periods in 2016. The decrease in the effective tax rates for the three and nine months ended September 30, 2017 compared to the same periods in 2016 was primarily due to the release of a valuation allowance held against certain foreign net operating losses and the release of reserves related to unrecognized tax benefits upon the expiration of a statute of limitation. The effective tax rate for the three months ended September 30, 2017 was lower than the Irish statutory rate of 12.5% primarily due to the release of a valuation allowance held against certain foreign net operating losses and the release of reserves related to unrecognized tax benefits upon the expiration of a statute of limitation. The effective tax rate for the nine months ended September 30, 2017 was higher than the Irish statutory rate of 12.5% primarily due to income taxable at a rate higher than the Irish statutory rate, unrecognized tax benefits, and various expenses not deductible for tax purposes, partially offset by originating tax credits and deductions available in relation to subsidiary equity. We do not provide for Irish income taxes on undistributed earnings of our foreign operations that are intended to be indefinitely reinvested in our foreign subsidiaries. Our net deferred tax liability primarily arose due to the Celator Acquisition. The balance is net of deferred tax assets which are comprised primarily of U.S. federal and state net operating loss carryforwards, foreign net operating loss carryforwards and other temporary differences. We maintain a valuation allowance against certain foreign and U.S. federal and state deferred tax assets. Each reporting period, we evaluate the need for a valuation allowance on our deferred tax assets by jurisdiction and adjust our estimates as more information becomes available. We are required to recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. As a result, we have established a liability for certain tax benefits which we judge may not be sustained upon examination. Our most significant tax jurisdictions are Ireland, the U.S. (both at the federal level and in various state jurisdictions), Italy and France. Because of our net operating loss carryforwards and tax credit carryforwards, substantially all of our tax years remain open to federal, state, and foreign tax examination. Certain of our subsidiaries are currently under examination by the French tax authorities for the years ended December 31, 2012 and 2013. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes. In December 2015, we received proposed tax assessment notices from the French tax authorities for 2012 and 2013 relating to certain transfer pricing adjustments. The notices propose additional French tax of approximately $45.2 million, including interest and penalties through the date of the assessment, translated at the foreign exchange rate at September 30, 2017. We disagree with the proposed assessment and intend to contest it vigorously.

The Company and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

These condensed consolidated financial statements include the accounts of Jazz Pharmaceuticals plc and our subsidiaries, and intercompany transactions and balances have been eliminated.

Significant Risks and Uncertainties

Other key challenges and risks that we face include risks and uncertainties related to:


•	the challenges of protecting and enhancing our intellectual property rights;


•	the challenges of achieving and maintaining commercial success of our products;

•


•	our ability to identify and acquire, in-license or develop additional products or product candidates to grow our business;


•	the challenges of compliance with the requirements of the FDA, the DEA, and comparable non-U.S. regulatory agencies, including with respect to product labeling, requirements for distribution, obtaining sufficient DEA quotas where needed, marketing and promotional activities, patient assistance programs, adverse event reporting and product recalls or withdrawals;


•	the difficulty and uncertainty of pharmaceutical product development, including the timing thereof, and the uncertainty of clinical success, such as the risk that results from preclinical studies and/or early clinical trials may not be predictive of results obtained in later and larger clinical trials planned or anticipated to be conducted for our product candidates;


•	the inherent uncertainty associated with the regulatory approval process, especially as we continue to increase investment in our product pipeline development projects and undertake multiple planned regulatory submissions for our product candidates;

•


•	possible restrictions on our ability and flexibility to pursue certain future opportunities as a result of our substantial outstanding debt obligations.

Any of these risks and uncertainties could have a material adverse effect on our business, financial condition, results of operations and growth prospects.

Derivative Instruments and Hedging Activities

Concentrations of Risk

Use of Estimates

Net Income per Ordinary Share

Basic and diluted net income per ordinary share were computed as follows (in thousands, except per share amounts):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Numerator:
Net income	$	63,526	$	89,828	$	255,641	$	280,142
Denominator:
Weighted-average ordinary shares used in per share calculation - basic	60,108		60,437		60,030		60,692
Dilutive effect of employee equity incentive and purchase plans	1,328		1,358		1,330		1,458
Weighted-average ordinary shares used in per share calculation - diluted	61,436		61,795		61,360		62,150

Net income per ordinary share:
Basic	$	1.06	$	1.49	$	4.26	$	4.62
Diluted	$	1.03	$	1.45	$	4.17	$	4.51

Recent Accounting Pronouncements

The Company and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basic and Diluted Net Income per Ordinary Share Computation

Basic and diluted net income per ordinary share were computed as follows (in thousands, except per share amounts):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Numerator:
Net income	$	63,526	$	89,828	$	255,641	$	280,142
Denominator:
Weighted-average ordinary shares used in per share calculation - basic	60,108		60,437		60,030		60,692
Dilutive effect of employee equity incentive and purchase plans	1,328		1,358		1,330		1,458
Weighted-average ordinary shares used in per share calculation - diluted	61,436		61,795		61,360		62,150

Net income per ordinary share:
Basic	$	1.06	$	1.49	$	4.26	$	4.62
Diluted	$	1.03	$	1.45	$	4.17	$	4.51

Weighted-Average Ordinary Shares Excluded from Computation of Diluted Net Income per Share



	Three Months Ended September 30,		Nine Months Ended September 30,
	2017	2016	2017	2016
Exchangeable Senior Notes	3,958	2,878	3,238	2,878
Options to purchase ordinary shares and RSUs	2,998	2,851	3,175	2,688
Ordinary shares under ESPP	16	45	9	72

Cash and Available-for-Sale Securities (Tables)

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Cash and Cash Equivalents and Investments

Cash, cash equivalents and investments consisted of the following (in thousands):



	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Investments
Cash	$	122,154	$	—	$	—	$	122,154	$	122,154	$	—
Time deposits	220,000		—		—		220,000		20,000		200,000
Money market funds	110,461		—		—		110,461		110,461		—
Totals	$	452,615	$	—	$	—	$	452,615	$	252,615	$	200,000

	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Investments
Cash	$	215,963	$	—	$	—	$	215,963	$	215,963	$	—
Time deposits	210,000		—		—		210,000		150,000		60,000
Totals	$	425,963	$	—	$	—	$	425,963	$	365,963	$	60,000

Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis



	September 30, 2017						December 31, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total Estimated Fair Value		Significant Other Observable Inputs (Level 2)		Total Estimated Fair Value
Assets:
Available-for-sale securities:
Time deposits	$	—	$	220,000	$	220,000	$	210,000	$	210,000
Money market funds	110,461		—		110,461		—		—
Interest rate contracts	—		201		201		—		—
Foreign exchange forward contracts	—		12,124		12,124		—		—
Totals	$	110,461	$	232,325	$	342,786	$	210,000	$	210,000
Liabilities:
Interest rate contracts	$	—	$	1,322	$	1,322	$	—	$	—
Foreign exchange forward contracts	—		291		291		—		—
Totals	$	—	$	1,613	$	1,613	$	—	$	—

Derivative and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of gains (losses) on derivative instruments

The impact on accumulated other comprehensive loss and earnings from derivative instruments that qualified as cash flow hedges for the three and nine months ended September 30, 2017 was as follows (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
Interest Rate Contracts:	2017			2016		2017			2016
Loss recognized in accumulated other comprehensive loss, net of tax	$	(59	)	$	—	$	(2,234	)	$	—
Loss reclassified from accumulated other comprehensive loss to interest expense, net of tax	$	451		$	—	$	1,278		$	—

Schedule of the fair value of outstanding derivatives

The following table summarizes the fair value of outstanding derivatives as of September 30, 2017 (in thousands):



	September 30, 2017
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate contracts	Other non-current assets	$	201	Accrued liabilities	$	1,322
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other current assets	12,124		Accrued liabilities	291
Total fair value of derivative instruments		$	12,325		$	1,613

Schedule of offsetting assets

The following table summarizes the potential effect on our condensed consolidated balance sheets of offsetting our interest rate contracts and foreign exchange forward contracts subject to such provisions (in thousands):



	September 30, 2017
	Gross Amounts of Recognized Assets/Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets/Liabilities Presented in the Consolidated Balance Sheet			Gross Amounts Not Offset in the Consolidated Balance Sheet
Description	Gross Amounts of Recognized Assets/Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet					Derivative Financial Instruments			Cash Collateral Received (Pledged)		Net Amount
Derivative assets	$	1,938		$	—	$	1,938		$	(560	)	$	—	$	1,378
Derivative liabilities	$	(560	)	$	—	$	(560	)	$	560		$	—	$	—

Schedule of offsetting liabilities



	September 30, 2017
	Gross Amounts of Recognized Assets/Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets/Liabilities Presented in the Consolidated Balance Sheet			Gross Amounts Not Offset in the Consolidated Balance Sheet
Description	Gross Amounts of Recognized Assets/Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet					Derivative Financial Instruments			Cash Collateral Received (Pledged)		Net Amount
Derivative assets	$	1,938		$	—	$	1,938		$	(560	)	$	—	$	1,378
Derivative liabilities	$	(560	)	$	—	$	(560	)	$	560		$	—	$	—

Inventories (Tables)

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Components of Inventories

Inventories consisted of the following (in thousands):



	September 30, 2017		December 31, 2016
Raw materials	$	2,681	$	1,547
Work in process	19,965		18,689
Finished goods	18,698		13,815
Total inventories	$	41,344	$	34,051

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Gross Carrying Amount of Goodwill

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



Balance at December 31, 2016	$	893,810
Foreign exchange	47,618
Balance at September 30, 2017	$	941,428

Gross Carrying Amounts and Net Book Values of Intangible Assets

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



	September 30, 2017								December 31, 2016
	Remaining Weighted- Average Useful Life (In years)	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Acquired developed technologies	15.1	$	3,376,895	$	(505,369	)	$	2,871,526	$	1,477,618	$	(410,523	)	$	1,067,095
Manufacturing contracts	0.6	12,647		(11,670		)	977		11,278		(8,292		)	2,986
Trademarks	—	2,905		(2,905		)	—		2,872		(2,872		)	—
Total finite-lived intangible assets		3,392,447		(519,944		)	2,872,503		1,491,768		(421,687		)	1,070,081
Acquired in-process research and development assets		146,532		—			146,532		1,941,920		—			1,941,920
Total intangible assets		$	3,538,979	$	(519,944	)	$	3,019,035	$	3,433,688	$	(421,687	)	$	3,012,001

Estimated Future Amortization Costs



Year Ending December 31,	Estimated Amortization Expense
2017 (remainder)	$	52,966
2018	208,830
2019	208,595
2020	205,644
2021	204,609
Thereafter	1,991,859
Total	$	2,872,503

Certain Balance Sheet Items (Tables)

9 Months Ended

Sep. 30, 2017

Certain Balance Sheet Items [Abstract]

Property and Equipment

Property and equipment consisted of the following (in thousands):



	September 30, 2017			December 31, 2016
Construction-in-progress	$	82,802		$	33,427
Land and buildings	46,616			46,033
Manufacturing equipment and machinery	22,903			19,596
Computer software	19,281			17,832
Leasehold improvements	12,953			9,328
Computer equipment	11,912			10,980
Furniture and fixtures	3,373			2,436
Subtotal	199,840			139,632
Less accumulated depreciation and amortization	(40,454		)	(32,142		)
Property and equipment, net	$	159,386		$	107,490

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):



	September 30, 2017		December 31, 2016
Rebates and other sales deductions	$	76,930	$	72,344
Employee compensation and benefits	46,672		43,363
Royalties	11,309		11,643
Accrued construction-in-progress	5,488		1,597
Inventory-related accruals	3,843		3,350
Sales returns reserve	3,470		4,366
Professional fees	3,244		4,596
Clinical trial accruals	2,657		10,139
Selling and marketing accruals	2,384		3,924
Accrued interest	2,347		5,179
Accrued contract termination fees	—		11,612
Other	21,546		21,155
Total accrued liabilities	$	179,890	$	193,268

Debt (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Long-term Debt

The following table summarizes the carrying amount of our indebtedness (in thousands):



	September 30, 2017			December 31, 2016
2021 Notes	$	575,000		$	575,000
Unamortized discount and debt issuance costs on 2021 Notes	(86,663		)	(101,094		)
2021 Notes, net	488,337			473,906

2024 Notes	575,000			—
Unamortized discount and debt issuance costs on 2024 Notes	(163,363		)	—
2024 Notes, net	411,637			—

Term loan	679,939			705,719
Borrowings under revolving credit facility	—			850,000
Total debt	1,579,913			2,029,625
Less current portion	36,094			36,094
Total long-term debt	$	1,543,819		$	1,993,531

Schedule of Maturities of Long-Term Debt

Scheduled maturities with respect to our long-term debt principal balances outstanding as of September 30, 2017 were as follows (in thousands):



Year Ending December 31,	Scheduled Long-Term Debt Maturities
2017 (remainder)	$	9,023
2018	40,606
2019	58,652
2020	76,699
2021	1,075,801
Thereafter	575,000
Total	$	1,835,781

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

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

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Lease Payments under Noncancelable Operating Leases

Future minimum lease payments under our noncancelable operating and facility leases as of September 30, 2017 were as follows (in thousands):



Year Ending December 31,	Lease Payments
2017 (remainder)	$	6,615
2018	15,811
2019	16,885
2020	19,127
2021	19,166
Thereafter	165,797
Total	$	243,401

Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Reconciliation of Shareholders' Equity

The following tables present a reconciliation of our beginning and ending balances in shareholders’ equity for the nine months ended September 30, 2017 and 2016 (in thousands):



	Total Shareholders' Equity
Shareholders' equity at January 1, 2017	$	1,877,339
Issuance of 2024 Notes	149,767
Issuance of ordinary shares in conjunction with employee equity incentive and purchase plans	22,793
Employee withholding taxes related to share-based awards	(17,909		)
Share-based compensation	79,745
Shares repurchased	(56,425		)
Other comprehensive income	158,346
Net income	255,641
Shareholders' equity at September 30, 2017	$	2,469,297



	Total Shareholders' Equity
Shareholders' equity at January 1, 2016	$	1,706,333
Issuance of ordinary shares in conjunction with employee equity incentive and purchase plans	17,951
Employee withholding taxes related to share-based awards	(20,595		)
Share-based compensation	75,176
Shares repurchased	(259,819		)
Other comprehensive income	32,096
Net income	280,142
Shareholders' equity at September 30, 2016	$	1,831,284

Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss as of September 30, 2017 and December 31, 2016 were as follows (in thousands):



	Net Unrealized Losses From Hedging Activities			Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Loss
Balance at December 31, 2016	$	—		$	(317,333	)	$	(317,333	)
Other comprehensive income (loss) before reclassifications	(2,234		)	159,302			157,068
Amounts reclassified from accumulated other comprehensive loss	1,278			—			1,278
Net other comprehensive income (loss)	(956		)	159,302			158,346
Balance at September 30, 2017	$	(956	)	$	(158,031	)	$	(158,987	)

Segment and Other Information (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Summary of Total Revenues

The following table presents a summary of total revenues (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Xyrem	$	303,870	$	285,907	$	874,222	$	816,412
Erwinaze/Erwinase	49,173		42,986		149,585		143,907
Defitelio/defibrotide	31,213		28,137		97,351		79,280
Vyxeos	9,719		—		9,719		—
Prialt^® (ziconotide) intrathecal infusion	7,930		8,783		21,303		23,065
Other	6,066		5,808		19,124		21,983
Product sales, net	407,971		371,621		1,171,304		1,084,647
Royalties and contract revenues	3,884		2,560		10,990		6,705
Total revenues	$	411,855	$	374,181	$	1,182,294	$	1,091,352

Summary of Total Revenues Attributed to Geographic Sources

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
United States	$	372,846	$	339,825	$	1,068,716	$	991,557
Europe	24,937		25,788		83,667		79,557
All other	14,072		8,568		29,911		20,238
Total revenues	$	411,855	$	374,181	$	1,182,294	$	1,091,352

Summary of Revenues from Customers Representing More Than 10% of Total Revenues

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Express Scripts	74	%	76	%	74	%	75	%
McKesson	14	%	13	%	14	%	14	%

Total Long-Lived Assets by Location

The following table presents total long-lived assets, consisting of property and equipment, by location (in thousands):



	September 30, 2017		December 31, 2016
United States	$	84,764	$	35,791
Ireland	64,947		62,453
Italy	7,917		7,000
Other	1,758		2,246
Total long-lived assets	$	159,386	$	107,490

Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2017

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

Share-Based Compensation Expense Related to Share Options, RSUs and Grants Under ESPP

Share-based compensation expense related to share options, RSUs and grants under our ESPP was as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Selling, general and administrative	$	20,903		$	19,511		$	61,582		$	60,664
Research and development	4,650			4,056			13,651			10,867
Cost of product sales	1,573			1,307			4,346			2,959
Total share-based compensation expense, pre-tax	27,126			24,874			79,579			74,490
Income tax benefit from share-based compensation expense	(6,354		)	(8,486		)	(23,816		)	(24,341		)
Total share-based compensation expense, net of tax	$	20,772		$	16,388		$	55,763		$	50,149

Weighted-Average Assumptions Used in Black-Scholes Option Pricing Model which was Used to Estimate Grant Date Fair Value per Share



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Shares underlying options granted (in thousands)	87			147			1,343			1,247
Grant date fair value	$	45.87		$	42.89		$	42.69		$	40.85
Black-Scholes option pricing model assumption information:
Volatility	35		%	37		%	35		%	39		%
Expected term (years)	4.3			4.2			4.3			4.2
Range of risk-free rates	1.6-1.8%			0.8-1.0%			1.6-1.8%			0.8-1.5%
Expected dividend yield	—		%	—		%	—		%	—		%

Schedule of Restricted Stock Unit activity

The table below shows the number of RSUs granted covering an equal number of our ordinary shares and the weighted-average grant date fair value of RSUs granted:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
RSUs granted (in thousands)	35		59		537		495
Grant date fair value	$	148.60	$	138.55	$	137.23	$	126.80

The Company and Summary of Significant Accounting Policies - Significant Risks and Uncertainties Additional Information (Details) $ in Thousands		1 Months Ended				3 Months Ended			6 Months Ended	9 Months Ended
	Apr. 05, 2017	Mar. 31, 2017 claim_under_petition	Jul. 31, 2016 patent	Mar. 31, 2016 claim_under_petition	Apr. 30, 2015 litigation_case	Sep. 30, 2017 USD ($) company	Sep. 30, 2016 USD ($)	Jun. 30, 2016 lawsuit	Jun. 30, 2016 litigation_case	Sep. 30, 2017 USD ($) lawsuit patent company	Sep. 30, 2016 USD ($)	Jan. 19, 2017 application
Concentration Risk [Line Items]
Product sales, net \| $						$ 407,971	$ 371,621			$ 1,171,304	$ 1,084,647
Xyrem ANDA Matters \| Pending Litigation
Concentration Risk [Line Items]
Number of litigation cases after consolidation \| litigation_case					1				1
Xyrem
Concentration Risk [Line Items]
Product sales, net \| $						$ 303,870	285,907			$ 874,222	816,412
Number of ANDAs filed by third parties \| company						8				8
Exclusivity grace period	6 months
Number of claims settled \| lawsuit								2		3
Number of ANDAs approved \| application												2
Number of DDI patents covered in instructions \| patent										3
Xyrem \| Pending Litigation
Concentration Risk [Line Items]
Number of patents deemed unenforceable by PTAB \| patent			6
Number of claims under IPR review				3
Number of petition claims PTAB denied				25
Number of petition claims under patent review				28
Number of petition claims under patent review deemed unpatentable		3
Xyrem \| Amneal Pharmaceuticals
Concentration Risk [Line Items]
Number of ANDAs approved \| application												1
Xyrem \| Ohm Laboratories Inc.
Concentration Risk [Line Items]
Number of ANDAs approved \| application												1
Xyrem \| Product Concentration Risk \| Sales Revenue, Product Line
Concentration Risk [Line Items]
Percentage of product sales, net (as a percent)						74.00%				75.00%
Erwinaze and Erwinase
Concentration Risk [Line Items]
Product sales, net \| $						$ 49,173	$ 42,986			$ 149,585	$ 143,907
Licensing agreement extension term										5 years
Erwinaze and Erwinase \| Product Concentration Risk \| Sales Revenue, Product Line
Concentration Risk [Line Items]
Percentage of product sales, net (as a percent)						12.00%				13.00%
Defitelio/Defibrotide \| Product Concentration Risk \| Sales Revenue, Product Line
Concentration Risk [Line Items]
Percentage of product sales, net (as a percent)						8.00%				8.00%

The Company and Summary of Significant Accounting Policies - Concentrations of Risk Additional Information (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($) Customer	Dec. 31, 2016 Customer
Concentration Risk [Line Items]
Number of customers with significant accounts receivable \| Customer	5	5
Customer concentration risk \| Gross accounts receivable
Concentration Risk [Line Items]
Percentage of gross accounts receivable (as a percent)	91.00%	90.00%
Customer concentration risk \| Gross accounts receivable \| Express Scripts
Concentration Risk [Line Items]
Percentage of gross accounts receivable (as a percent)	72.00%	73.00%
Customer concentration risk \| Gross accounts receivable \| McKesson
Concentration Risk [Line Items]
Percentage of gross accounts receivable (as a percent)	17.00%	13.00%
Foreign exchange forward contracts \| Derivatives not designated as hedging instruments
Concentration Risk [Line Items]
Notional amount	$ 330,600,000
Net fair value	11,800,000
Interest rate contracts \| Derivatives designated as hedging instruments
Concentration Risk [Line Items]
Notional amount	300,000,000
Net fair value	$ (1,100,000)

The Company and Summary of Significant Accounting Policies - Basic and Diluted Net Income (Loss) per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net income	$ 63,526	$ 89,828	$ 255,641	$ 280,142
Denominator:
Weighted-average ordinary shares used in per share calculation - basic (in shares)	60,108	60,437	60,030	60,692
Dilutive effect of employee equity incentive and purchase plans (in shares)	1,328	1,358	1,330	1,458
Weighted-average ordinary shares used in per share calculation - diluted (in shares)	61,436	61,795	61,360	62,150
Net income per ordinary share:
Basic (in dollars per share)	$ 1.06	$ 1.49	$ 4.26	$ 4.62
Diluted (in dollars per share)	$ 1.03	$ 1.45	$ 4.17	$ 4.51

The Company and Summary of Significant Accounting Policies - Net Income per Ordinary Share Additional Information (Details) - Convertible Debt	Sep. 30, 2017
2021 Notes
Debt Instrument [Line Items]
Interest rate (as a percent)	1.875%
2024 Notes
Debt Instrument [Line Items]
Interest rate (as a percent)	1.50%

The Company and Summary of Significant Accounting Policies - Weighted-Average Ordinary Shares Excluded from Computation of Diluted Net Income per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Exchangeable Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Ordinary shares (in shares)	3,958	2,878	3,238	2,878
Options to purchase ordinary shares and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Ordinary shares (in shares)	2,998	2,851	3,175	2,688
Ordinary shares under ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Ordinary shares (in shares)	16	45	9	72

Collaboration and Option Agreement - Additional Information (Details) $ in Thousands	1 Months Ended	9 Months Ended
	Aug. 31, 2017 USD ($) product program	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of programs under agreement \| program	3
Non-refundable upfront payment \| $	$ 75,000	$ 77,000	$ 23,750
Additional development funding (up to $100 million) \| $	$ 100,000
Development funding term	7 years
Number of projects subject to right to co-commercialize \| product	1
Number of projects subject to right to co-commercialize under certain limited circumstances \| product	2

Cash and Available-for-Sale Securities - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 452,615	$ 425,963
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	452,615	425,963
Cash and cash equivalents	252,615	365,963	$ 366,567	$ 988,785
Investments	200,000	60,000
Cash
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	122,154	215,963
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	122,154	215,963
Cash and cash equivalents	122,154	215,963
Investments	0	0
Time deposits
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	220,000	210,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	220,000	210,000
Cash and cash equivalents	20,000	150,000
Investments	200,000	$ 60,000
Money market funds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	110,461
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Estimated Fair Value	110,461
Cash and cash equivalents	110,461
Investments	$ 0

Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Available-for-sale securities:
Available-for-sale securities	$ 452,615	$ 425,963
Time deposits
Available-for-sale securities:
Available-for-sale securities	220,000	210,000
Money market funds
Available-for-sale securities:
Available-for-sale securities	110,461
Recurring \| Total Estimated Fair Value
Available-for-sale securities:
Totals	342,786	210,000
Liabilities:
Totals	1,613	0
Recurring \| Total Estimated Fair Value \| Interest rate contracts
Available-for-sale securities:
Derivative asset	201	0
Liabilities:
Interest rate contracts	1,322	0
Recurring \| Total Estimated Fair Value \| Foreign exchange forward contracts
Available-for-sale securities:
Derivative asset	12,124	0
Liabilities:
Interest rate contracts	291	0
Recurring \| Total Estimated Fair Value \| Time deposits
Available-for-sale securities:
Available-for-sale securities	220,000	210,000
Recurring \| Total Estimated Fair Value \| Money market funds
Available-for-sale securities:
Available-for-sale securities	110,461	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Available-for-sale securities:
Totals	110,461
Liabilities:
Totals	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Interest rate contracts
Available-for-sale securities:
Derivative asset	0
Liabilities:
Interest rate contracts	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Foreign exchange forward contracts
Available-for-sale securities:
Derivative asset	0
Liabilities:
Interest rate contracts	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Time deposits
Available-for-sale securities:
Available-for-sale securities	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Money market funds
Available-for-sale securities:
Available-for-sale securities	110,461
Recurring \| Significant Other Observable Inputs (Level 2)
Available-for-sale securities:
Totals	232,325	210,000
Liabilities:
Totals	1,613	0
Recurring \| Significant Other Observable Inputs (Level 2) \| Interest rate contracts
Available-for-sale securities:
Derivative asset	201	0
Liabilities:
Interest rate contracts	1,322	0
Recurring \| Significant Other Observable Inputs (Level 2) \| Foreign exchange forward contracts
Available-for-sale securities:
Derivative asset	12,124	0
Liabilities:
Interest rate contracts	291	0
Recurring \| Significant Other Observable Inputs (Level 2) \| Time deposits
Available-for-sale securities:
Available-for-sale securities	220,000	210,000
Recurring \| Significant Other Observable Inputs (Level 2) \| Money market funds
Available-for-sale securities:
Available-for-sale securities	$ 0	$ 0

Fair Value Measurement - Additional Information (Details) - Convertible Debt $ in Millions	Sep. 30, 2017 USD ($)
2021 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of exchangeable senior notes	$ 607
2024 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of exchangeable senior notes	$ 565

Derivative and Hedging Activities - Additional Information (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)
Derivative [Line Items]
Losses recognized in AOCI to be reclassified over the next 12 months		$ 1,200,000
Gain on cash flow hedge ineffectiveness	$ 0	0
Interest rate contracts \| Derivatives designated as hedging instruments
Derivative [Line Items]
Notional amount	$ 300,000,000	$ 300,000,000
Interest rate contracts \| Derivatives not designated as hedging instruments
Derivative [Line Items]
Fixed interest rate	1.895%	1.895%
Foreign exchange forward contracts \| Derivatives not designated as hedging instruments
Derivative [Line Items]
Notional amount	$ 330,600,000	$ 330,600,000
Contract term (up to 365 days)		365 days
Gain recognized in other income and expense	$ 2,800,000	$ 11,800,000

Derivative and Hedging Activities - Gains on Derivative Instruments (Details) - Interest rate contracts - Cash Flow Hedges - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Loss recognized in accumulated other comprehensive loss, net of tax	$ (59)	$ 0	$ (2,234)	$ 0
Loss reclassified from accumulated other comprehensive loss to interest expense, net of tax	$ 451	$ 0	$ 1,278	$ 0

Derivative and Hedging Activities - Fair Value of Outstanding Derivatives (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 12,325
Liability Derivatives	1,613
Derivatives designated as hedging instruments \| Interest rate contracts \| Other non-current assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	201
Derivatives designated as hedging instruments \| Interest rate contracts \| Accrued liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	1,322
Derivatives not designated as hedging instruments \| Foreign exchange forward contracts \| Accrued liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	291
Derivatives not designated as hedging instruments \| Foreign exchange forward contracts \| Other current assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 12,124

Derivative and Hedging Activities - Offsetting Assets and Liabilities (Details) - Pro Forma [Member] $ in Thousands	Sep. 30, 2017 USD ($)
Derivative assets
Gross Amounts of Recognized Assets/Liabilities	$ 1,938
Gross Amounts Offset in the Consolidated Balance Sheet	0
Net Amounts of Assets/Liabilities Presented in the Consolidated Balance Sheet	1,938
Gross Amounts Not Offset in the Consolidated Balance Sheet
Derivative Financial Instruments	(560)
Cash Collateral Received (Pledged)	0
Net Amount	1,378
Derivative liabilities
Gross Amounts of Recognized Assets/Liabilities	(560)
Gross Amounts Offset in the Consolidated Balance Sheet	0
Net Amounts of Assets/Liabilities Presented in the Consolidated Balance Sheet	(560)
Gross Amounts Not Offset in the Consolidated Balance Sheet
Derivative Financial Instruments	560
Cash Collateral Received (Pledged)	0
Net Amount	$ 0

Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 2,681	$ 1,547
Work in process	19,965	18,689
Finished goods	18,698	13,815
Total inventories	$ 41,344	$ 34,051

Goodwill and Intangible Assets - Goodwill Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning of period	$ 893,810
Foreign exchange	47,618
Goodwill, end of period	$ 941,428

Goodwill and Intangible Assets - Gross Carrying Amounts and Net Book Values of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,392,447	$ 1,491,768
Accumulated Amortization	(519,944)	(421,687)
Total	2,872,503	1,070,081
Indefinite-lived Intangible Assets [Line Items]
Gross Carrying Amount - Total Intangible Assets	3,538,979	3,433,688
Net Book Value - Total Intangible Assets	3,019,035	3,012,001
Acquired in-process research and development assets
Indefinite-lived Intangible Assets [Line Items]
In-process research and development	$ 146,532	1,941,920
Acquired developed technologies
Finite-Lived Intangible Assets [Line Items]
Remaining Weighted-Average Useful Life (in years)	15 years 1 month
Gross Carrying Amount	$ 3,376,895	1,477,618
Accumulated Amortization	(505,369)	(410,523)
Total	$ 2,871,526	1,067,095
Manufacturing contracts
Finite-Lived Intangible Assets [Line Items]
Remaining Weighted-Average Useful Life (in years)	7 months 18 days
Gross Carrying Amount	$ 12,647	11,278
Accumulated Amortization	(11,670)	(8,292)
Total	$ 977	2,986
Trademarks
Finite-Lived Intangible Assets [Line Items]
Remaining Weighted-Average Useful Life (in years)	0 years
Gross Carrying Amount	$ 2,905	2,872
Accumulated Amortization	(2,905)	(2,872)
Total	$ 0	$ 0

Goodwill and Intangible Assets - Estimated Future Amortization Costs (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Estimated Amortization Expense
2017 (remainder)	$ 52,966
2018	208,830
2019	208,595
2020	205,644
2021	204,609
Thereafter	1,991,859
Total	$ 2,872,503	$ 1,070,081

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Billions	1 Months Ended	9 Months Ended
	Aug. 31, 2017	Sep. 30, 2017
Acquired developed technologies
Finite-Lived Intangible Assets [Line Items]
Remaining Weighted-Average Useful Life (in years)		15 years 1 month
Vyxeos \| Acquired developed technologies
Finite-Lived Intangible Assets [Line Items]
Increase in finite-lived intangible assets	$ 1.8
Remaining Weighted-Average Useful Life (in years)		18 years
Vyxeos \| Acquired in-process research and development assets
Finite-Lived Intangible Assets [Line Items]
Decrease in indefinite-lived intangible assets	$ 1.8

Certain Balance Sheet Items - Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 199,840	$ 139,632
Less accumulated depreciation and amortization	(40,454)	(32,142)
Property and equipment, net	159,386	107,490
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	82,802	33,427
Land and buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	46,616	46,033
Manufacturing equipment and machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	22,903	19,596
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	19,281	17,832
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,953	9,328
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,912	10,980
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,373	$ 2,436

Certain Balance Sheet Items - Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Certain Balance Sheet Items [Abstract]
Rebates and other sales deductions	$ 76,930	$ 72,344
Employee compensation and benefits	46,672	43,363
Royalties	11,309	11,643
Accrued construction-in-progress	5,488	1,597
Inventory-related accruals	3,843	3,350
Sales returns reserve	3,470	4,366
Professional fees	3,244	4,596
Clinical trial accruals	2,657	10,139
Selling and marketing accruals	2,384	3,924
Accrued interest	2,347	5,179
Accrued contract termination fees	0	11,612
Other	21,546	21,155
Total accrued liabilities	$ 179,890	$ 193,268

Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long term debt outstanding	$ 1,835,781
Total debt	1,579,913	$ 2,029,625
Less current portion	36,094	36,094
Total long-term debt	1,543,819	1,993,531
Revolving Credit Facility
Debt Instrument [Line Items]
Total debt	0	850,000
Convertible Debt \| 2021 Notes
Debt Instrument [Line Items]
Long term debt outstanding	575,000	575,000
Unamortized discount and debt issuance costs	(86,663)	(101,094)
Total debt	488,337	473,906
Convertible Debt \| 2024 Notes
Debt Instrument [Line Items]
Long term debt outstanding	575,000	0
Unamortized discount and debt issuance costs	(163,363)	0
Total debt	411,637	0
Term Loan
Debt Instrument [Line Items]
Total debt	$ 679,939	$ 705,719

Debt - Additional Information (Details)	3 Months Ended	9 Months Ended
Debt - Additional Information (Details)	Sep. 30, 2017 USD ($) d $ / shares	Sep. 30, 2017 USD ($) $ / shares	Sep. 30, 2016 USD ($)
Debt Instrument [Line Items]
Debt repayment		$ 850,000,000	$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Debt repayment	$ 500,000,000
Convertible Debt
Debt Instrument [Line Items]
Percentage of ownership (as a percent)	100.00%	100.00%
Convertible Debt \| 2024 Notes
Debt Instrument [Line Items]
Face amount	$ 575,000,000	$ 575,000,000
Interest rate (as a percent)	1.50%	1.50%
Percentage of conversion price	130.00%
Number of trading days \| d	20
Number of consecutive days in trading period \| d	30
Conversion rate of shares	4.5659
Conversion denominator	$ 1,000
Debt conversion price (in dollars per share) \| $ / shares	$ 219.02	$ 219.02
Effective interest rate	6.80%	6.80%
Debt term	7 years
Total issuance costs incurred	$ 15,500,000	$ 15,500,000
Carrying value of the equity component	$ 149,800,000	$ 149,800,000

Debt - Schedule of Maturities (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2017 (remainder)	$ 9,023
2018	40,606
2019	58,652
2020	76,699
2021	1,075,801
Thereafter	575,000
Total debt	$ 1,835,781

Commitments and Contingencies - Future Minimum Lease Payments under Noncancelable Operating Leases (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Lease Payments
2017 (remainder)	$ 6,615
2018	15,811
2019	16,885
2020	19,127
2021	19,166
Thereafter	165,797
Total	$ 243,401

Commitments and Contingencies - Lease and Other Commitments (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Operating Leased Assets [Line Items]
Other non-current liabilities	$ 158,497	$ 158,497	$ 112,617
Noncancelable purchase commitments, due within one year	43,200	43,200
Building \| Palo Alto
Operating Leased Assets [Line Items]
Rent expense	500	1,400
Building \| Palo Alto \| Property and Equipment, Net
Operating Leased Assets [Line Items]
Construction-in-progress	60,900	60,900
Building \| Palo Alto \| Other Non-Current Liabilities
Operating Leased Assets [Line Items]
Other non-current liabilities	$ 60,900	$ 60,900

Commitments and Contingencies - Legal Proceedings and Other Contingencies (Details)		1 Months Ended						3 Months Ended	6 Months Ended	9 Months Ended
	Jun. 29, 2016 lawsuit	Mar. 31, 2017 claim_under_petition	Jul. 31, 2016 patent	Mar. 31, 2016 claim_under_petition	Apr. 30, 2015 litigation_case	Jan. 31, 2015 patent	Apr. 30, 2014	Jun. 30, 2016 lawsuit	Jun. 30, 2016 litigation_case	Sep. 30, 2017 lawsuit
Xyrem
Commitments and Contingencies Disclosure [Line Items]
Number of claims settled \| lawsuit								2		3
Celator Acquisition \| Celator Pharmaceuticals, Inc.
Commitments and Contingencies Disclosure [Line Items]
Number of claims filed during the period \| lawsuit	2
Pending Litigation \| Xyrem
Commitments and Contingencies Disclosure [Line Items]
Number of patents named in review petitions \| patent						6
Number of patents deemed unenforceable by PTAB \| patent			6
Number of petition claims under patent review awaiting decision				3
Number of petition claims PTAB denied				25
Number of petition claims under patent review				28
Number of petition claims under patent review deemed unpatentable		3
Pending Litigation \| Xyrem ANDA Matters
Commitments and Contingencies Disclosure [Line Items]
Court ordered stay period							30 months
Number of litigation cases after consolidation \| litigation_case					1				1

Shareholders' Equity - Equity Components (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ 1,877,339	$ 1,706,333
Issuance of 2024 Notes			149,767
Issuance of ordinary shares in conjunction with employee equity incentive and purchase plans			22,793	17,951
Employee withholding taxes related to share-based awards			(17,909)	(20,595)
Share-based compensation			79,745	75,176
Shares repurchased			(56,425)	(259,819)
Other comprehensive income	$ 51,262	$ 14,612	158,346	32,096
Net income	63,526	89,828	255,641	280,142
Ending balance	$ 2,469,297	$ 1,831,284	$ 2,469,297	$ 1,831,284

Shareholders' Equity - Share Repurchase Programs (Details) - USD ($) $ / shares in Units, shares in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Nov. 30, 2016
Stock Activity [Line Items]
Shares repurchased	$ 56,425,000	$ 259,819,000
Ordinary Options
Stock Activity [Line Items]
Shares repurchased	$ 56,400,000
Shares repurchased (in shares)	0.4
Average price of shares repurchased (in dollars per share)	$ 141.73
Ordinary Options \| November 2016 Share Repurchase Program
Stock Activity [Line Items]
Total amount authorized for repurchase of shares under share repurchase program			$ 300,000,000
Remaining amount authorized for repurchase of shares	$ 225,100,000

Shareholders' Equity - Component of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			$ 1,877,339	$ 1,706,333
Other comprehensive income (loss) before reclassifications			157,068
Amounts reclassified from accumulated other comprehensive loss			1,278
Other comprehensive income	$ 51,262	$ 14,612	158,346	32,096
Ending balance	2,469,297	$ 1,831,284	2,469,297	$ 1,831,284
Net Unrealized Losses From Hedging Activities
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			0
Other comprehensive income (loss) before reclassifications			(2,234)
Amounts reclassified from accumulated other comprehensive loss			1,278
Other comprehensive income			(956)
Ending balance	(956)		(956)
Foreign Currency Translation Adjustments
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(317,333)
Other comprehensive income (loss) before reclassifications			159,302
Amounts reclassified from accumulated other comprehensive loss			0
Other comprehensive income			159,302
Ending balance	(158,031)		(158,031)
Total Accumulated Other Comprehensive Loss
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(317,333)
Ending balance	$ (158,987)		$ (158,987)

Segment and Other Information - Additional Information (Details)	9 Months Ended
	Sep. 30, 2017 Segment
Segment Reporting [Abstract]
Number of operating business segment	1

Segment and Other Information - Summary of Total Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue from External Customer [Line Items]
Product sales, net	$ 407,971	$ 371,621	$ 1,171,304	$ 1,084,647
Royalties and contract revenues	3,884	2,560	10,990	6,705
Total revenues	411,855	374,181	1,182,294	1,091,352
Xyrem
Revenue from External Customer [Line Items]
Product sales, net	303,870	285,907	874,222	816,412
Erwinaze/Erwinase
Revenue from External Customer [Line Items]
Product sales, net	49,173	42,986	149,585	143,907
Defitelio/defibrotide
Revenue from External Customer [Line Items]
Product sales, net	31,213	28,137	97,351	79,280
Vyxeos
Revenue from External Customer [Line Items]
Product sales, net	9,719	0	9,719	0
Prialt® (ziconotide) intrathecal infusion
Revenue from External Customer [Line Items]
Product sales, net	7,930	8,783	21,303	23,065
Other
Revenue from External Customer [Line Items]
Product sales, net	$ 6,066	$ 5,808	$ 19,124	$ 21,983

Segment and Other Information - Summary of Total Revenues Attributed to Geographic Sources (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 411,855	$ 374,181	$ 1,182,294	$ 1,091,352
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	372,846	339,825	1,068,716	991,557
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	24,937	25,788	83,667	79,557
All other
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 14,072	$ 8,568	$ 29,911	$ 20,238

Segment and Other Information - Summary of Revenues from Customers Representing at Least 10% of Total Revenues (Details) - Sales Revenue, Goods, Net - Customer concentration risk	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Express Scripts
Revenue, Major Customer [Line Items]
Percentage of total revenues (as a percent)	74.00%	76.00%	74.00%	75.00%
McKesson
Revenue, Major Customer [Line Items]
Percentage of total revenues (as a percent)	14.00%	13.00%	14.00%	14.00%

Segment and Other Information - Total Long-Lived Assets by Location (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 159,386	$ 107,490
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	84,764	35,791
Ireland
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	64,947	62,453
Italy
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	7,917	7,000
All other
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 1,758	$ 2,246

Share-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense, pre-tax	$ 27,126	$ 24,874	$ 79,579	$ 74,490
Income tax benefit from share-based compensation expense	(6,354)	(8,486)	(23,816)	(24,341)
Total share-based compensation expense, net of tax	20,772	16,388	55,763	50,149
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense, pre-tax	20,903	19,511	61,582	60,664
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense, pre-tax	4,650	4,056	13,651	10,867
Cost of product sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation expense, pre-tax	$ 1,573	$ 1,307	$ 4,346	$ 2,959

Share-Based Compensation - Weighted-Average Assumptions and Resulting Grant Date Fair Value (Details) - Employee Stock Option - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items]
Shares underlying options granted (in shares)	87	147	1,343	1,247
Weighted-average grant date fair value (in dollars per share)	$ 45.87	$ 42.89	$ 42.69	$ 40.85
Weighted-average volatility (as a percent)	35.00%	37.00%	35.00%	39.00%
Weighted-average expected term	4 years 3 months	4 years 2 months	4 years 3 months	4 years 2 months
Range of risk-free rates, minimum (as a percent)	1.60%	0.80%	1.60%	0.80%
Range of risk-free rates, maximum (as a percent)	1.80%	1.00%	1.80%	1.50%
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%

Share-Based Compensation - Restricted Units (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (in shares)	35	59	537	495
Grant date fair value (in dollars per share)	$ 148.60	$ 138.55	$ 137.23	$ 126.80

Share-Based Compensation - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Unrecognized compensation cost related to unvested stock option and RSUs	$ 100.5
Weighted-average period expected to be recognized	2 years 7 months
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to unvested stock option and RSUs	$ 83.2
Weighted-average period expected to be recognized	2 years 8 months

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Taxes [Line Items]
Income tax provision	$ 1,239	$ 26,437	$ 65,914	$ 100,888
Effective income tax rate (as a percent)	1.90%	22.70%	20.50%	26.50%
Ireland
Income Taxes [Line Items]
Effective statutory income tax rate (as a percent)	12.50%		12.50%
France
Income Taxes [Line Items]
Proposed additional tax including interest and penalties			$ 45,200