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Document And Entity Information - USD ($) $ in Millions	12 Months Ended
Document And Entity Information - USD ($) $ in Millions	Dec. 31, 2016	Feb. 21, 2017	Jun. 30, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Entity Registrant Name	ANI PHARMACEUTICALS INC
Entity Central Index Key	0001023024
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 475.9
Trading Symbol	ANIP
Class C Special Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		10,864
Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		11,589,686

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 27,365	$ 154,684
Accounts receivable, net of $31,535 and $13,586 of adjustments for chargebacks and other allowances at December 31, 2016 and 2015, respectively	45,895	21,932
Inventories, net	26,183	13,387
Prepaid income taxes	0	1,127
Prepaid expenses and other current assets	3,564	1,453
Total Current Assets	103,007	192,583
Property and equipment, net	10,998	7,131
Restricted cash	5,002	0
Deferred tax asset, net of valuation allowance	26,227	17,316
Intangible assets, net	175,792	66,397
Goodwill	1,838	1,838
Total Assets	322,864	285,265
Current Liabilities
Accounts payable	3,389	2,066
Accrued expenses and other	927	617
Accrued royalties	11,956	606
Accrued compensation and related expenses	1,631	1,188
Current income taxes payable	2,398	0
Accrued government rebates	5,891	4,631
Returned goods reserve	5,756	2,648
Total Current Liabilities	31,948	11,756
Long-term Liabilities
Long-term royalties	625	0
Convertible notes, net of discount and deferred financing costs	120,643	113,427
Total Liabilities	153,216	125,183
Commitments and Contingencies (Note 11)
Stockholders' Equity
Common Stock, $0.0001 par value, 33,333,334 shares authorized; 11,588,701 shares issued and outstanding at December 31, 2016; 11,498,228 shares issued and outstanding at December 31, 2015	1	1
Class C Special Stock, $0.0001 par value, 781,281 shares authorized; 10,864 shares issued and outstanding at December 31, 2016 and 2015, respectively	0	0
Preferred Stock, $0.0001 par value, 1,666,667 shares authorized; 0 shares issued and outstanding at December 31, 2016 and 2015, respectively	0	0
Additional paid-in capital	172,563	164,431
Accumulated deficit	(2,916)	(4,350)
Total Stockholders' Equity	169,648	160,082
Total Liabilities and Stockholders' Equity	$ 322,864	$ 285,265

Consolidated Balance Sheets [Parenthetical] - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Adjustments for chargebacks and other allowances	$ 31,535	$ 13,586
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	1,666,667	1,666,667
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock [Member]
Common Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Authorized Shares	33,333,334	33,333,334
Common Stock, Issued Shares	11,588,701	11,498,228
Common Stock, Outstanding Shares	11,588,701	11,498,228
Class C Special Stock [Member]
Common Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Authorized Shares	781,281	781,281
Common Stock, Issued Shares	10,864	10,864
Common Stock, Outstanding Shares	10,864	10,864

Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net Revenues	$ 128,622	$ 76,322	$ 55,970
Operating Expenses
Cost of sales (excluding depreciation and amortization)	48,780	12,692	11,473
Research and development	2,906	2,874	2,678
Selling, general, and administrative	27,829	21,156	17,935
Depreciation and amortization	22,343	6,900	3,878
Intangible asset impairment charge	6,685	0	0
Total Operating Expenses	108,543	43,622	35,964
Operating Income	20,079	32,700	20,006
Other Expense, net
Interest expense, net	(11,327)	(11,008)	(787)
Other (expense)/income, net	(74)	41	160
Income Before (Provision)/Benefit for Income Taxes	8,678	21,733	19,379
(Provision)/benefit for income taxes	(4,744)	(6,358)	9,368
Net Income	$ 3,934	$ 15,375	$ 28,747
Basic and Diluted Earnings Per Share:
Basic Earnings Per Share (in dollars per share)	$ 0.34	$ 1.34	$ 2.61
Diluted Earnings Per Share (in dollars per share)	$ 0.34	$ 1.32	$ 2.59
Basic Weighted-Average Shares Outstanding (in shares)	11,445	11,370	10,941
Diluted Weighted-Average Shares Outstanding (in shares)	11,573	11,557	11,053

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Class C Special Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2013	$ 40,962	$ 1	$ 0	$ 89,501	$ (68)	$ (48,472)
Balance (in shares) at Dec. 31, 2013		9,629			9
Stock-based Compensation Expense	3,423	$ 0	0	3,423	$ 0	0
Issuance of Common Stock in Equity Offering	46,680	$ 0	0	46,680	$ 0	0
Issuance of Common Stock in Equity Offering (in shares)		1,613			0
Allocation of proceeds from sale of Convertible Notes to Embedded Conversion Option	20,195	$ 0	0	20,195	$ 0	0
Cost of Bond-hedge, Net of Proceeds from Sale of Warrant	(2,575)	0	0	(2,575)	0	0
Issuance of Common Stock upon Warrant Exercise	750	$ 0	0	750	$ 0	0
Issuance of Common Stock upon Warrant Exercise (in shares)		83			0
Issuance of Common Shares upon Stock Option Exercise	819	$ 0	0	819	$ 0	0
Issuance of Common Shares upon Stock Option Exercise (in Shares)		43			0
Issuance of Restricted Stock Awards	0	$ 0	0	(68)	$ 68	0
Issuance of Restricted Stock Awards (in Shares)		20			(9)
Excess Tax Benefit from Stock-based Compensation Awards	784	$ 0	0	784	$ 0	0
Net Income	28,747	0	0	0	0	28,747
Balance at Dec. 31, 2014	139,785	$ 1	0	159,509	$ 0	(19,725)
Balance (in shares) at Dec. 31, 2014		11,388			0
Stock-based Compensation Expense	3,856	$ 0	0	3,856	$ 0	0
Issuance of Common Shares upon Stock Option Exercise	819	$ 0	0	706	$ 113	0
Issuance of Common Shares upon Stock Option Exercise (in Shares)		84			(5)
Changes in Treasury Stock Related to Stock-based Compensation Arrangements	(113)	$ 0	0	0	$ (113)	0
Changes in Treasury Stock Related to Stock-based Compensation Arrangements (in shares)		0			7
Issuance of Restricted Stock Awards	0	$ 0	0	0	$ 0	0
Issuance of Restricted Stock Awards (in Shares)		26			(2)
Excess Tax Benefit from Stock-based Compensation Awards	360	$ 0	0	360	$ 0	0
Net Income	15,375	0	0	0	0	15,375
Balance at Dec. 31, 2015	160,082	$ 1	0	164,431	$ 0	(4,350)
Balance (in shares) at Dec. 31, 2015		11,498			0
Stock-based Compensation Expense	6,067	$ 0	0	6,067	$ 0	0
Changes in Treasury Stock Related to Stock-based Compensation Arrangements	(122)	$ 0	0	0	$ (122)	0
Changes in Treasury Stock Related to Stock-based Compensation Arrangements (in shares)		0			10
Issuance of Common Shares upon Stock Option and ESPP Exercise	1,570	$ 0	0	1,448	$ 122	0
Issuance of Common Shares upon Stock Option and ESPP Exercise (in shares)		119			(10)
Repurchase of Common Stock under Stock Repurchase Program	(2,500)	$ 0	0	0	$ 0	(2,500)
Repurchase of Common Stock under Stock Repurchase Program (in shares)		(65)			0
Issuance of Restricted Stock Awards	0	$ 0	0	0	$ 0	0
Issuance of Restricted Stock Awards (in Shares)		37			0
Excess Tax Benefit from Stock-based Compensation Awards	617	$ 0	0	617	$ 0	0
Net Income	3,934	0	0	0	0	3,934
Balance at Dec. 31, 2016	$ 169,648	$ 1	$ 0	$ 172,563	$ 0	$ (2,916)
Balance (in shares) at Dec. 31, 2016		11,589			0

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities
Net income	$ 3,934	$ 15,375	$ 28,747
Adjustments to reconcile net loss to net cash and cash equivalents provided by operating activities:
Stock-based compensation	6,067	3,856	3,423
Deferred taxes	(8,911)	(1,877)	(14,459)
Depreciation and amortization	22,343	6,900	3,878
Non-cash interest relating to convertible notes and loan cost amortization	7,281	6,831	559
Intangible asset impairment charge	6,685	0	0
Changes in operating assets and liabilities:
Accounts receivable, net	(23,963)	(4,635)	(4,784)
Inventories, net	(1,938)	(5,869)	(3,468)
Prepaid expenses and other current assets	(647)	(314)	(558)
Accounts payable	1,076	(1,027)	225
Accrued royalties	6,269	(96)	702
Accrued compensation and related expenses	443	(160)	575
Current income taxes, net	3,525	(5,380)	4,233
Accrued government rebates	1,260	2,367	2,011
Returned goods reserve	3,108	1,203	709
Accrued expenses and other	940	90	240
Net Cash and Cash Equivalents Provided by Operating Activities	27,472	17,264	22,033
Cash Flows From Investing Activities
Changes in restricted cash	(5,002)	0	0
Acquisition of product rights and other related assets	(144,494)	(30,500)	(34,634)
Acquisition of property and equipment	(4,566)	(2,183)	(1,120)
Net Cash and Cash Equivalents Used in Investing Activities	(154,062)	(32,683)	(35,754)
Cash Flows From Financing Activities
Net proceeds from equity offering	0	0	46,680
Net proceeds from convertible debt offering	0	0	138,243
Purchase of call option overlay, net	0	0	(15,623)
Payment of debt issuance costs	(294)	0	0
Proceeds from stock option exercises	1,570	819	819
Proceeds from warrant exercise	0	0	750
Excess tax benefit from share-based compensation awards	617	360	784
Repurchase of common stock under the stock repurchase program	(2,500)	0	0
Treasury stock purchases for restricted stock vestings and forfeitures	(122)	(113)	0
Net Cash and Cash Equivalents (Used in)/Provided by Financing Activities	(729)	1,066	171,653
Change in Cash and Cash Equivalents	(127,319)	(14,353)	157,932
Cash and cash equivalents, beginning of period	154,684	169,037	11,105
Cash and cash equivalents, end of period	27,365	154,684	169,037
Supplemental disclosure for cash flow information:
Cash paid for interest, net of amounts capitalized	4,078	4,149	0
Cash paid for income taxes, net	9,537	13,255	147
Supplemental non-cash investing and financing activities:
Accrued royalties related to asset purchase	3,882	0	0
Property and equipment purchased and included in accounts payable	$ 247	$ 439	$ 0

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2016

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Business

ANI Pharmaceuticals, Inc. and its consolidated subsidiaries (together, “ANI,” the “Company,” “we,” “us,” or “our”) is an integrated specialty pharmaceutical company focused on delivering value to our customers by developing, manufacturing, and marketing high quality branded and generic prescription pharmaceuticals. ANI was organized as a Delaware corporation in April 2001. At our two facilities located in Baudette, Minnesota, we manufacture oral solid dose products, as well as liquids and topicals, controlled substances, and potent products that must be manufactured in a fully-contained environment. We also perform contract manufacturing for other pharmaceutical companies.

On June 19, 2013, BioSante Pharmaceuticals, Inc. (“BioSante”) acquired ANIP Acquisition Company (“ANIP”) in an all-stock, tax-free reorganization (the “Merger”), in which ANIP became a wholly-owned subsidiary of BioSante. BioSante was renamed ANI Pharmaceuticals, Inc. The Merger was accounted for as a reverse acquisition pursuant to which ANIP was considered the acquiring entity for accounting purposes. As such, ANIP's historical results of operations replace BioSante's historical results of operations for all periods prior to the Merger. The results of operations of both companies are included in our consolidated financial statements for all periods after completion of the Merger.

Our operations are subject to certain risks and uncertainties including, among others, current and potential competitors with greater resources, dependence on significant customers, lack of operating history and uncertainty of future profitability, and possible fluctuations in financial results. The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the ordinary course of business. The propriety of using the going-concern basis is dependent upon, among other things, the achievement of future profitable operations, the ability to generate sufficient cash from operations, and potential other funding sources, including cash on hand, to meet our obligations as they become due. We believe the going-concern basis is appropriate for the accompanying consolidated financial statements based on our current operating plan and business strategy for the 12 months following the issuance of this report.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain prior period information has been reclassified to conform to the current period presentation.

Principles of Consolidation

The consolidated financial statements include the accounts of ANI Pharmaceuticals, Inc. and its subsidiaries. All intercompany accounts and transactions are eliminated in consolidation.

Foreign Currency

The company has subsidiaries located outside of the U.S. All existing subsidiaries currently conduct substantially all their transactions in U.S. dollars, or are otherwise dependent upon the U.S. parent for funding. Accordingly, these subsidiaries use the U.S. dollar as their functional currency. Unless otherwise noted, all references to “$” or “dollar” refer to the U.S. dollar.

Foreign currency transaction gains and losses are included in the determination of net income.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. In the accompanying consolidated financial statements, estimates are used for, but not limited to, stock-based compensation, allowance for doubtful accounts, accruals for chargebacks, administrative fees and rebates, government rebates, returns and other allowances, allowance for inventory obsolescence, valuation of financial instruments and intangible assets, accruals for contingent liabilities, fair value of long-lived assets, deferred taxes and valuation allowance, purchase price allocations, and the depreciable lives of long-lived assets. Because of the uncertainties inherent in such estimates, actual results could differ from those estimates.

Comprehensive Income

We have no components of other comprehensive income and accordingly, no statement of comprehensive income is included in the accompanying consolidated financial statements.

Credit Concentration

Our customers are primarily wholesale distributors, chain drug stores, group purchasing organizations, and other pharmaceutical companies.

During the year ended December 31, 2016, three customers represented approximately 28%, 22%, and 18% of net revenues, respectively. As of December 31, 2016, accounts receivable from these customers totaled 83% of net accounts receivable. During the year ended December 31, 2015, three customers represented approximately 26%, 20%, and 18% of net revenues, respectively. During the year ended December 31, 2014, three customers represented approximately 30%, 25%, and 14% of net revenues, respectively.

Vendor Concentration

We source the raw materials for products, including active pharmaceutical ingredients (“API”), from both domestic and international suppliers. Generally, only a single source of API is qualified for use in each product due to the costs and time required to validate a second source of supply. As a result, we are dependent upon our current vendors to supply reliably the API required for ongoing product manufacturing. During the year ended December 31, 2016, we purchased approximately 25% of our inventory from one supplier. As of December 31, 2016, amounts payable to this supplier were immaterial. During the year ended December 31, 2015, we purchased approximately 33% of our inventory from two suppliers. During the year ended December 31, 2014, we purchased approximately 42% of our inventory from two suppliers.

Revenue Recognition

Revenue is recognized for product sales and contract manufacturing product sales upon passing of risk and title to the customer, when estimates of the selling price and discounts, rebates, promotional adjustments, price adjustments, returns, chargebacks, and other potential adjustments are reasonably determinable, collection is reasonably assured, and we have no further performance obligations. Contract manufacturing arrangements are typically less than two weeks in duration, and therefore the revenue is recognized upon completion of the aforementioned factors rather than using a proportional performance method of revenue recognition. The estimates for discounts, rebates, promotional adjustments, price adjustments, returns, chargebacks, and other potential adjustments reduce gross revenues to net revenues in the accompanying consolidated statements of earnings, and are presented as current liabilities or reductions in accounts receivable in the accompanying consolidated balance sheets (see “Accruals for Chargebacks, Rebates, Returns, and Other Allowances”). Historically, we have not entered into revenue arrangements with multiple elements.

We record revenue related to marketing and distribution agreements with third parties in which we sell products under Abbreviated New Drug Applications (“ANDAs”) or New Drug Applications (“NDAs”) owned or licensed by these third parties. We have assessed and determined that we are the principal for sales under each of these marketing and distribution agreements and recognize the revenue on a gross basis when risk and title are passed to the customer, when estimates of the selling price and discounts, rebates, promotional adjustments, price adjustments, returns, chargebacks, and other potential adjustments are reasonably determinable, collection is reasonably assured, and we have no further performance obligations. Under these agreements, we pay these third parties a specified percentage of the gross profit earned on sales of the products. These profit-sharing percentages are recognized in cost of sales in our consolidated statements of earnings and are accrued in accrued royalties in our consolidated balance sheets until payment has occurred.

Occasionally, we engage in contract services, which include product development services, laboratory services, and royalties on net sales of certain contract manufactured products. For these services, revenue is recognized according to the terms of the agreement with the customer, which sometimes include substantive, measurable risk-based milestones, and when we have a contractual right to receive such payment, the contract price is fixed or determinable, the collection of the resulting receivable is reasonably assured, and we have no further performance obligations under the agreement.

Cash and Cash Equivalents

We consider all highly liquid instruments with maturities of three months or less when purchased to be cash equivalents. All interest bearing and non-interest bearing accounts are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250 thousand. The majority of our cash balances are in excess of FDIC coverage. We consider this to be a normal business risk.

Accounts Receivable

We extend credit to customers on an unsecured basis. We use the allowance method to provide for doubtful accounts based on our evaluation of the collectability of accounts receivable, whereby we provide an allowance for doubtful accounts equal to the estimated uncollectible amounts. Our estimate is based on historical collection experience and a review of the current status of trade accounts receivable. We determine trade receivables to be delinquent when greater than 30 days past due. Receivables are written off when it is determined that amounts are uncollectible. We determined that no allowance for doubtful accounts was necessary as of December 31, 2016 and 2015.

Accruals for Chargebacks, Rebates, Returns, and Other Allowances

Our generic and branded product revenues are typically subject to agreements with customers allowing chargebacks, government rebates, product returns, administrative fees and other rebates, and prompt payment discounts. We accrue for these items at the time of sale based on the estimates and methodologies described below. In the aggregate, these accruals exceed 50% of generic and branded gross product sales, reduce gross revenues to net revenues in the accompanying consolidated statements of earnings, and are presented as current liabilities or reductions in accounts receivable in the accompanying consolidated balance sheets. Due to our substantial increase in sales from 2015 to 2016, our accruals for chargebacks, government rebates, product returns, administrative fees and other rebates, and prompt payment discounts increased significantly in the year ended December 31, 2016. We anticipate that these accruals will continue to increase in 2017 as we recognize a full year of sales of products launched in 2016, as well as additional products we expect to launch in 2017.

We continually monitor and re-evaluate the accruals as additional information becomes available, which includes, among other things, trade inventory levels, customer product mix, products returned by customers, and trends in government rebates experience. We adjust the accruals at the end of each reporting period, to reflect any such updates to the relevant facts and circumstances. Accruals are relieved upon receipt of payment from or upon issuance of credit to the customer.

Chargebacks

Chargebacks, primarily from wholesalers, result from arrangements we have with indirect customers establishing prices for products which the indirect customer purchases through a wholesaler. Alternatively, we may pre-authorize wholesalers to offer specified contract pricing to other indirect customers. Under either arrangement, we provide a chargeback credit to the wholesaler for any difference between the contracted price with the indirect customer and the wholesaler's invoice price, typically Wholesale Acquisition Cost ("WAC").

Chargeback credits are calculated as follows:

Prior period chargebacks claimed by wholesalers are analyzed to determine the actual average selling price ("ASP") for each product. This calculation is performed by product by wholesaler. ASPs can be affected by several factors such as:

	·	A change in customer mix
	·	A change in negotiated terms with customers
	·	A change in the volume of off-contract purchases
	·	Changes in WAC

As necessary, we adjust ASPs based on anticipated changes in the factors above.

The difference between ASP and WAC is recorded as a reduction in both gross revenues in the consolidated statements of earnings and accounts receivable in the consolidated balance sheets, at the time we recognize revenue from the product sale.

To evaluate the adequacy of our chargeback accruals, we obtain on-hand inventory counts from the wholesalers. This inventory is multiplied by the chargeback amount, the difference between ASP and WAC, to arrive at total expected future chargebacks, which is then compared to the chargeback accruals. We continually monitor chargeback activity and adjust ASPs when we believe that actual selling prices will differ from current ASPs.

Government Rebates

Our government rebates reserve consists of estimated payments due to governmental agencies for purchases made by third parties under various governmental programs. The two largest government programs that impact our net revenue and our government rebates reserve are federal and state Medicaid rebate programs and Medicare.

We participate in certain qualifying federal and state Medicaid rebate programs whereby discounts and rebates are provided to participating programs after the final dispensing of the product by a pharmacy to a Medicaid plan participant. Medicaid rebates are typically billed up to 120 days after the product is shipped. Medicaid rebate amounts per product unit are established by law, based on the Average Manufacturer Price (“AMP”), which is reported on a monthly and quarterly basis, and, in the case of branded products, best price, which is reported on a quarterly basis. Our Medicaid reserves are based on expected claims from state Medicaid programs. Estimates for expected claims are driven by patient usage, sales mix, calculated AMP or best price, as well as inventory in the distribution channel that will be subject to a Medicaid rebate. As a result of the delay between selling the products and rebate billing, our Medicaid rebate reserve includes both an estimate of outstanding claims for end-customer sales that have occurred but for which the related claim has not been billed, as well as an estimate for future claims that will be made when inventory in the distribution channel is sold through to plan participants.

Many of our products are also covered under Medicare. We, like all pharmaceutical companies, must provide a discount for any products sold under NDAs to Medicare Part D participants. This applies to all products sold under NDAs, regardless of whether the products are marketed as branded or generic. Our estimates for these discounts are based on historical experience with Medicare rebates for our products. While such experience has allowed for reasonable estimations in the past, history may not always be an accurate indicator of future rebates. Medicare rebates are typically billed up to 120 days after the product is shipped. As a result of the delay between selling the products and rebate billing, our Medicare rebate reserve includes both an estimate of outstanding claims for end-customer sales that have occurred but for which the related claim has not been billed, as well as an estimate for future claims that will be made when inventory in the distribution channel is sold through to Medicare Part D participants.

To evaluate the adequacy of our government rebate reserves, we review the reserves on a quarterly basis against actual claims data to ensure the liability is fairly stated. We continually monitor our government rebate reserve and adjust our estimates if we believe that actual government rebates may differ from our established accruals. Accruals for government rebates are recorded as a reduction to gross revenues in the consolidated statements of earnings and as an increase to accrued government rebates in the consolidated balance sheets.

Returns

We maintain a return policy that allows customers to return product within a specified period prior to and subsequent to the expiration date. Generally, product may be returned for a period beginning six months prior to its expiration date to up to one year after its expiration date. Our product returns are settled through the issuance of a credit to the customer. Our estimate for returns is based upon historical experience with actual returns. While such experience has allowed for reasonable estimation in the past, history may not always be an accurate indicator of future returns. We continually monitor our estimates for returns and make adjustments when we believe that actual product returns may differ from the established accruals. Accruals for returns are recorded as a reduction to gross revenues in the consolidated statements of earnings and as an increase to the return goods reserve in the consolidated balance sheets.

Administrative Fees and Other Rebates

Administrative fees or rebates are offered to wholesalers, group purchasing organizations and indirect customers. We accrue for fees and rebates, by product by wholesaler, at the time of sale based on contracted rates and ASPs.

To evaluate the adequacy of our administrative fee accruals, we obtain on-hand inventory counts from the wholesalers. This inventory is multiplied by the ASPs to arrive at total expected future sales, which is then multiplied by contracted rates. The result is then compared to the administrative fee accruals. We continually monitor administrative fee activity and adjust our accruals when we believe that actual administrative fees will differ from the accruals. Accruals for administrative fees and other rebates are recorded as a reduction in both gross revenues in the consolidated statements of earnings and accounts receivable in the consolidated balance sheets.

Prompt Payment Discounts

We often grant sales discounts for prompt payment. The reserve for prompt payment discounts is based on invoices outstanding. We assume, based on past experience, that all available discounts will be taken. Accruals for prompt payment discounts are recorded as a reduction in both gross revenues in the consolidated statements of earnings and accounts receivable in the consolidated balance sheets.

The following table summarizes activity in the consolidated balance sheets for accruals and allowances for the years ended December 31, 2016, 2015, and 2014:

(in thousands)	Accruals for Chargebacks, Returns, and Other Allowances
							Administrative		Prompt
			Government				Fees and Other		Payment
	Chargebacks		Rebates		Returns		Rebates		Discounts
Balance at December 31, 2013	$	4,076	$	253	$	736	$	735	$	332
Accruals/Adjustments		35,740		2,692		1,493		5,212		1,820
Credits Taken Against Reserve		(32,951)		(681)		(784)		(4,460)		(1,681)
Balance at December 31, 2014	$	6,865	$	2,264	$	1,445	$	1,487	$	471
Accruals/Adjustments		51,933		6,719		2,808		6,136		2,744
Credits Taken Against Reserve		(47,417)		(4,352)		(1,605)		(5,970)		(2,541)
Balance at December 31, 2015	$	11,381	$	4,631	$	2,648	$	1,653	$	674
Accruals/Adjustments		114,433		9,671		10,271		12,747		5,517
Credits Taken Against Reserve		(99,029)		(8,411)		(7,163)		(10,850)		(4,637)
Balance at December 31, 2016	$	26,785	$	5,891	$	5,756	$	3,550	$	1,554

Inventories

Inventories consist of raw materials, packaging materials, work-in-progress, and finished goods. Inventories are stated at the lower of standard cost or net realizable value. We periodically review and adjust standard costs, which generally approximate weighted average cost.

Property and Equipment

Property and equipment are recorded at cost. Expenditures for repairs and maintenance are charged to expense as incurred. Depreciation is recorded on a straight-line basis over estimated useful lives as follows:

Buildings and improvements		20 - 40 years
Machinery, furniture, and equipment		3 - 10 years

Construction in progress consists of multiple projects, primarily related to new equipment to expand our manufacturing capability as our product lines continue to grow. Construction in progress includes the cost of construction and other direct costs attributable to the construction, along with capitalized interest. Depreciation is not recorded on construction in progress until such time as the assets are placed in service.

We review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the long-lived asset is measured by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. No impairment loss related to property and equipment was recognized during the years ended December 31, 2016, 2015, and 2014. Assets held for disposal are reportable at the lower of the carrying amount or fair value, less costs to sell. No assets were held for disposal as of December 31, 2016 and 2015.

Intangible Assets

Intangible assets were acquired as part of the Merger and several asset purchase transactions. These assets include ANDAs for a total of 54 previously marketed generic products we acquired in 2014 and 2015, NDAs and product rights for our branded products Lithobid, Vancocin, Inderal LA, and Corticotropin, an NDA for male testosterone gel, acquired marketing and distribution rights, a non-compete agreement, and fully amortized product rights for Reglan and a generic product. These intangible assets were originally recorded at fair value for business combinations and at relative fair value based on the purchase price for asset acquisitions and are stated net of accumulated amortization.

The ANDAs, NDAs and product rights, marketing and distribution rights, and non-compete agreement are amortized over their remaining estimated useful lives, ranging from two to 10 years, based on the straight-line method. Management reviews definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, in a manner similar to that for property and equipment. We recognized an impairment charge of $6.7 million in relation to our testosterone gel NDA asset during the year ended December 31, 2016 (Note 5). The testosterone gel NDA asset was classified as held for sale as of December 31, 2016. No impairment losses related to intangible assets were recognized in the years ended December 31, 2015 and 2014.

Goodwill

Goodwill relates to the Merger and represents the excess of the total purchase consideration over the fair value of acquired assets and assumed liabilities, using the purchase method of accounting. Goodwill is not amortized, but is subject to periodic review for impairment. Goodwill is reviewed annually, as of October 31, and whenever events or changes in circumstances indicate that the carrying amount of the goodwill might not be recoverable. We perform our review of goodwill on our one reporting unit.

Before employing detailed impairment testing methodologies, we first evaluate the likelihood of impairment by considering qualitative factors relevant to our reporting unit. When performing the qualitative assessment, we evaluate events and circumstances that would affect the significant inputs used to determine the fair value of the goodwill. Events and circumstances evaluated include: macroeconomic conditions that could affect us, industry and market considerations for the generic pharmaceutical industry that could affect us, cost factors that could affect our performance, our financial performance (including share price), and consideration of any company-specific events that could negatively affect us, our business, or the fair value of our business. If we determine that it is more likely than not that goodwill is impaired, we will then apply detailed testing methodologies. Otherwise, we will conclude that no impairment has occurred.

Detailed impairment testing involves comparing the fair value of our one reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of ANI. If the fair value exceeds carrying value, then it is concluded that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, a second step is required to measure possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of our one reporting unit as if it had been acquired in a business combination. Then, the implied fair value of our one reporting unit's goodwill is compared to the carrying value of that goodwill. If the carrying value of our one reporting unit's goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. No impairment loss related to goodwill was recognized in the years ended December 31, 2016, 2015, and 2014.

Collaborative Arrangements

At times, we have entered into arrangements with various commercial partners to further business opportunities. In collaborative arrangements such as these, when we are actively involved and exposed to the risks and rewards of the activities and are determined to be the principal participant in the collaboration, we classify third party costs incurred and revenues in the consolidated statements of earnings on a gross basis. Otherwise, third party revenues and costs generated by collaborative arrangements are presented on a net basis. Payments between us and the other participants are recorded and classified based on the nature of the payments.

Royalties

We have entered profit-sharing arrangements with third parties in which we sell products under ANDAs or NDAs owned or licensed by these third parties. Under these agreements, we pay these third parties a specified percentage of the gross profit earned on sales of the products. These profit-sharing percentages are recorded in cost of sales in our consolidated statements of earnings when the associated revenue is recognized and are recorded in accrued royalties in our consolidated balance sheets when the associated revenue is recognized and until payment has occurred.

Research and Development Expenses

Research and development costs are expensed as incurred and primarily consist of expenses relating to product development. Research and development costs totaled $2.9 million, $2.9 million, and $2.7 million for the years ended December 31, 2016, 2015, and 2014, respectively.

Stock-Based Compensation

We have a stock-based compensation plan that includes stock options and restricted stock, which are awarded in exchange for employee and non-employee director services. Stock-based compensation cost for stock options is determined at the grant date using an option pricing model and stock-based compensation cost for restricted stock is based on the closing market price of the stock at the grant date. The value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the employee's requisite service period. In addition, in July 2016, we commenced administration of our Employee Stock Purchase Plan (“ESPP”). We recognize the estimated fair value of stock-based compensation awards and classify the expense where the underlying salaries are classified. We incurred $6.1 million, $3.9 million, and $3.4 million of non-cash, stock-based compensation cost for the years ended December 31, 2016, 2015, and 2014, respectively, of which $25 thousand of the 2016 expense related to the ESPP.

Valuation of stock awards requires us to make assumptions and to apply judgment to determine the fair value of the awards. These assumptions and judgments include estimating the future volatility of our stock price, dividend yields, and future employee stock option exercise behaviors. Changes in these assumptions can affect the fair value estimate.

Income Taxes

We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The measurement of a deferred tax asset is reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. We calculate income tax benefits related to stock-based compensation arrangements using the with and without method.

We use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. We have not identified any uncertain income tax positions that could have a material impact to the consolidated financial statements. We are subject to taxation in various jurisdictions in the U.S. and remain subject to examination by taxing jurisdictions for the years 1998 and all subsequent periods due to the availability of net operating loss carryforwards.

We recognize interest and penalties accrued on any unrecognized tax exposures as a component of income tax expense. We did not have any such amounts accrued as of December 31, 2016, 2015, and 2014.

We consider potential tax effects resulting from discontinued operations and record intra-period tax allocations, when those effects are deemed material.

Earnings per Share

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period.

For periods of net income, and when the effects are not anti-dilutive, we calculate diluted earnings per share by dividing net income available to common shareholders by the weighted-average number of shares outstanding plus the impact of all potential dilutive common shares, consisting primarily of common stock options, shares to be purchased under our ESPP, unvested restricted stock awards, stock purchase warrants, and any conversion gain on the Notes, using the treasury stock method. For periods of net loss, diluted loss per share is calculated similarly to basic loss per share.

Our unvested restricted shares and certain of our outstanding warrants contain non-forfeitable rights to dividends, and therefore are considered to be participating securities; in periods of net income, the calculation of basic and diluted earnings per share excludes from the numerator net income (but not net loss) attributable to the unvested restricted shares and to the participating warrants, and excludes the impact of those shares from the denominator.

For purposes of determining diluted earnings per share, we have elected a policy to assume that the principal portion of our 3.0% Convertible Senior Notes due December 1, 2019 (the “Notes,” Note 2) is settled in cash. As such, the principal portion of the Notes has no effect on either the numerator or denominator when determining diluted earnings per share. Any conversion gain is assumed to be settled in shares and is incorporated in diluted earnings per share using the treasury method. The warrants issued in conjunction with the issuance of the Notes are considered to be dilutive when they are in-the-money relative to our average stock price during the period; the bond hedge purchased in conjunction with the issuance of the Notes is always considered to be anti-dilutive.

The numerator for earnings per share for the years ended December 31, 2016, 2015, and 2014 are calculated for basic and diluted earnings per share as follows:

	Basic						Diluted
(in thousands, except per share amounts)	Year Ended December 31,						Year Ended December 31,
	2016		2015		2014		2016		2015		2014
Net income	$	3,934	$	15,375	$	28,747	$	3,934	$	15,375	$	28,747
Net income allocated to restricted stock		(21)		(85)		(159)		(21)		(84)		(158)
Net income allocated to common shares	$	3,913	$	15,290	$	28,588	$	3,913	$	15,291	$	28,589

Basic Weighted-Average Shares Outstanding		11,445		11,370		10,941		11,445		11,370		10,941
Dilutive effect of stock options and ESPP								128		187		71
Dilutive effect of warrants								-		-		41
Diluted Weighted-Average Shares Outstanding								11,573		11,557		11,053

Earnings per share	$	0.34	$	1.34	$	2.61	$	0.34	$	1.32	$	2.59

The number of anti-dilutive shares, which have been excluded from the computation of diluted earnings per share, including the shares underlying the Notes, were 4.5 million, 4.5 million, and 4.7 million for the years ended December 31, 2016, 2015, and 2014, respectively. Anti-dilutive shares consist of out-of-the-money Class C Special stock, out-of-the-money common stock options, common stock options that are anti-dilutive when calculating the impact of the potential dilutive common shares using the treasury stock method, underlying shares related to out-of-the-money bonds issued as convertible debt, and out-of –the-money warrants exercisable for common stock.

Fair Value of Financial Instruments

Our consolidated balance sheets include various financial instruments (primarily cash and cash equivalents, prepaid expenses, accounts receivable, accounts payable, accrued expenses, and other current liabilities) that are carried at cost and that approximate fair value. The fair value of our long-term indebtedness is estimated based on the quoted prices for the same or similar issues, or on the current rates we have been offered for debt of the same remaining maturities. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. These tiers include:

	⋅	Level 1—Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

	⋅	Level 2—Observable market-based inputs other than quoted prices in active markets for identical assets or liabilities.

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

See Note 6 for additional information regarding fair value.

Segment Information

We currently operate in a single reportable segment.

Recent Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance to simplify the measurement of goodwill. The guidance eliminates Step 2 from the goodwill impairment test. Instead, under the amendments in this guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The guidance also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted for interim or annual goodwill impairment tests performed for testing dates after January 1, 2017. The guidance must be adopted on a prospective basis. We are currently evaluating the impact, if any, that the adoption of this guidance will have on our consolidated financial statements.

In January 2017, the FASB issued guidance clarifying the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The guidance provides a screen to determine when an integrated set of assets and activities is not a business, provides a framework to assist entities in evaluating whether both an input and substantive process are present, and narrows the definition of the term output. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The guidance must be adopted on a prospective basis. We are currently evaluating the impact, if any, that the adoption of this guidance will have on our consolidated financial statements.

In November 2016, the FASB issued guidance to reduce diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The revised guidance requires that amounts generally described as restricted cash and restricted cash equivalents be included in with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The guidance is effective for the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity adopts the guidance in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The guidance must be adopted on a retrospective basis. We will adopt this guidance as of January 1, 2017, on a retrospective basis, and all periods will be presented under this guidance. The adoption of this new guidance will result in the inclusion of our $5.0 million of restricted cash in the cash and cash equivalents balance in our consolidated statement of cash flows for all reporting periods presented in 2017 and onward.

In August 2016, the FASB issued guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including those related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance, and distributions received from equity method investees. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity adopts the guidance in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The guidance must be adopted on a retrospective basis and must be applied to all periods presented, but may be applied prospectively if retrospective application would be impracticable. We are currently evaluating the impact, if any, that the adoption of this guidance will have on our consolidated statements of cash flows.

In June 2016, the FASB issued guidance with respect to measuring credit losses on financial instruments, including trade receivables. The guidance eliminates the probable initial recognition threshold that was previously required prior to recognizing a credit loss on financial instruments. The credit loss estimate can now reflect an entity's current estimate of all future expected credit losses. Under the previous guidance, an entity only considered past events and current conditions. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of certain amendments of this guidance must be applied on a modified retrospective basis and the adoption of the remaining amendments must be applied on a prospective basis. We currently expect that the adoption of this guidance will likely change the way we assess the collectability of our receivables and recoverability of other financial instruments. We have not yet begun to evaluate the specific impacts of this guidance nor have we determined the manner in which we will adopt this guidance.

In March 2016, the FASB issued guidance simplifying the accounting for and financial statement disclosure of stock-based compensation awards, consisting of changes in the accounting for excess tax benefits and tax deficiencies, and changes in the accounting for forfeitures associated with share-based awards, among other things. We will adopt this guidance as of January 1, 2017. Pursuant to the adoption requirements for excess tax benefits and tax deficiencies, we will no longer recognize excess tax benefits or tax deficiencies in APIC; rather, we will recognize them prospectively as a component of our current period income tax expense. We will not reverse our current APIC pool, which was $3.1 million as of December 31, 2016, and we will present the impact of classifying excess tax benefits as an operating activity in the Statement of Cash Flows on a prospective basis. Pursuant to the adoption requirements for forfeitures, we will account for forfeitures as they occur rather than using an estimated forfeiture rate; we estimate that this change in accounting will result in a $14 thousand cumulative-effect adjustment increasing our accumulated deficit as of January 1, 2017. The adoption of the remaining amendments is not expected to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued guidance for accounting for leases. The guidance requires lessees to recognize assets and liabilities related to long-term leases on the balance sheet and expands disclosure requirements regarding leasing arrangements. The guidance is effective for reporting periods beginning after December 15, 2018 and early adoption is permitted. The guidance must be adopted on a modified retrospective basis and provides for certain practical expedients. We are currently evaluating the impact that the adoption of this guidance will have on our consolidated financial statements. We currently expect that the adoption of this guidance will likely change the way we account for our operating leases and will likely result in recording the future benefits of those leases and the related minimum lease payments on our consolidated balance sheets. We have not yet begun to evaluate the specific impacts of this guidance.

In May 2014, the FASB issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue arising from contracts with customers. In August 2015, the FASB issued guidance approving a one-year deferral, making the standard effective for reporting periods beginning after December 15, 2017, with early adoption permitted only for reporting periods beginning after December 15, 2016. In March 2016, the FASB issued guidance to clarify the implementation guidance on principal versus agent considerations for reporting revenue gross rather than net, with the same deferred effective date. In April 2016, the FASB issued guidance to clarify the implementation guidance on identifying performance obligations and the accounting for licenses of intellectual property, with the same deferred effective date. In May 2016, the FASB issued guidance rescinding SEC paragraphs related to revenue recognition, pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force meeting. In May 2016, the FASB also issued guidance to clarify the implementation guidance on assessing collectability, presentation of sales tax, noncash consideration, and contracts and contract modifications at transition, with the same effective date. We do not intend to adopt the guidance early. We expect that the adoption of this guidance will likely change the way we recognize revenue generated under customer contracts. However, we are currently reviewing our contracts with customers to determine if the accounting for these contracts will be impacted by the adoption of this guidance and, if so, if that impact will be material to our consolidated financial statements. We have not yet determined the manner in which we will adopt this guidance.

Recently Adopted Accounting Pronouncements

In March 2016, the FASB issued guidance to clarify the requirements for assessing whether contingent call or put options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The amendments of this guidance were effective for reporting periods beginning after December 15, 2016, and early adoption was permitted. Entities were required to apply the guidance to existing debt instruments using a modified retrospective transition method as of the beginning of the fiscal year of adoption. We adopted this guidance in the first quarter of 2016, effective as of January 1, 2016, on a modified retrospective basis. The adoption of this new guidance did not have a material impact on our consolidated financial statements.

In July 2015, the FASB issued guidance for inventory. Under the guidance, an entity should measure inventory within the scope of this guidance at the lower of cost and net realizable value, except when inventory is measured using the last in first out (“LIFO”) method or the retail inventory method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. In addition, the FASB has amended some of the other inventory guidance to more clearly articulate the requirements for the measurement and disclosure of inventory. The guidance was effective for reporting periods beginning after December 15, 2016. The guidance was required to be applied prospectively, with earlier application permitted. We adopted this guidance in the first quarter of 2016, effective as of January 1, 2016, on a prospective basis. The adoption of this new guidance did not have a material impact on our consolidated financial statements.

In April 2015, the FASB issued guidance as to whether a cloud computing arrangement (e.g., software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements) includes a software license and, based on that determination, how to account for such arrangements. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance was effective for reporting periods beginning after December 15, 2015, and could be adopted on either a prospective or retrospective basis. We adopted this guidance in the first quarter of 2016, effective as of January 1, 2016, on a prospective basis. The adoption of this new guidance did not have a material impact on our consolidated financial statements.

In August 2014, the FASB issued guidance requiring management to evaluate on a regular basis whether any conditions or events have arisen that could raise substantial doubt about the entity’s ability to continue as a going concern. The guidance 1) provides a definition for the term “substantial doubt,” 2) requires an evaluation every reporting period, interim periods included, 3) provides principles for considering the mitigating effect of management’s plans to alleviate the substantial doubt, 4) requires certain disclosures if the substantial doubt is alleviated as a result of management’s plans, 5) requires an express statement, as well as other disclosures, if the substantial doubt is not alleviated, and 6) requires an assessment period of one year from the date the financial statements are issued. The guidance was effective for reporting periods ending after December 15, 2016, and early adoption was permitted. We adopted this guidance effective January 1, 2016. The adoption of this guidance did not have a material impact on our consolidated financial statements.

We have evaluated all other issued and unadopted Accounting Standards Updates and believe the adoption of these standards will not have a material impact on our consolidated statements of earnings, balance sheets, or cash flows.

INDEBTEDNESS

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

INDEBTEDNESS

2. INDEBTEDNESS

Convertible Senior Notes

In December 2014, we issued $143.8 million of our Notes in a registered public offering. After deducting the underwriting discounts and commissions and other expenses (including the net cost of the bond hedge and warrant, discussed below), the net proceeds from the offering were approximately $122.6 million. The Notes pay 3.0% interest semi-annually in arrears on June 1 and December 1 of each year, starting on June 1, 2015, and are due December 1, 2019. The Notes are convertible into 2,068,792 shares of common stock, based on an initial conversion price of $69.48 per share.

The Notes are convertible at the option of the holder (i) during any calendar quarter beginning after March 31, 2015, if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day, (ii) during the five business days after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day of such period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; and (iii) on or after June 1, 2019 until the second scheduled trading day immediately preceding the maturity date.

Upon conversion by the holders, we may elect to settle such conversion in shares of our common stock, cash, or a combination thereof. As a result of our cash conversion option, we separately accounted for the value of the embedded conversion option as a debt discount (with an offset to (Additional Paid in Capital) “APIC”) of $33.6 million. The value of the embedded conversion option was determined based on the estimated fair value of the debt without the conversion feature, which was determined using market comparables to estimate the fair value of similar non-convertible debt (Note 6); the debt discount is being amortized as additional non-cash interest expense using the effective interest method over the term of the Notes.

Offering costs of $5.5 million were allocated to the debt and equity components in proportion to the allocation of proceeds to the components, as deferred financing costs and equity issuance costs, respectively. The deferred financing costs of $4.2 million are being amortized as additional non-cash interest expense using the straight-line method over the term of the debt, since this method was not significantly different from the effective interest method. Pursuant to guidance issued by the FASB in April 2015, we have classified the deferred financing costs as a direct deduction to the net carrying value of our Convertible Debt. The $1.3 million portion allocated to equity issuance costs was charged to APIC.

A portion of the offering proceeds was used to simultaneously enter into “bond hedge” (or purchased call) and “warrant” (or written call) transactions with an affiliate of one of the offering underwriters (collectively, the “Call Option Overlay”). We entered into the Call Option Overlay to synthetically raise the initial conversion price of the Notes to $96.21 per share and reduce the potential common stock dilution that may arise from the conversion of the Notes. The exercise price of the bond hedge is $69.48 per share, with an underlying 2,068,792 common shares; the exercise price of the warrant is $96.21 per share of our common stock, also with an underlying 2,068,792 common shares. Because the bond hedge and warrant are both indexed to our common stock and otherwise would be classified as equity, we recorded both elements as equity, resulting in a net reduction to APIC of $15.6 million.

The carrying value of the Notes is as follows as of December 31:

(in thousands)	2016		2015
Principal amount	$	143,750	$	143,750
Unamortized debt discount		(20,644)		(27,016)
Deferred financing costs		(2,463)		(3,307)
Net Carrying value	$	120,643	$	113,427

The following table sets forth the components of total interest expense related to the Notes recognized in the accompanying consolidated statements of earnings for the year ended December 31:

(in thousands)	2016		2015
Contractual coupon	$	4,312	$	4,312
Amortization of debt discount		6,372		6,043
Amortization of finance fees		844		844
Capitalized interest		(234)		(56)
	$	11,294	$	11,143

The effective interest rate on the Notes as of December 31, 2016 and 2015 was 7.9% and 7.8%, respectively, on an annualized basis.

Line of Credit

In May 2016, we entered into a credit arrangement (the “Line of Credit”) with Citizens Bank Capital, a division of Citizens Asset Finance, Inc. (the “Citizens Agreement”). The Citizens Agreement provides for a $30.0 million asset-based revolving credit loan facility, with availability subject to a borrowing base consisting of eligible accounts receivable and inventory and the satisfaction of conditions precedent specified in the Citizens Agreement. The Citizens Agreement provides for an accordion feature, whereby we may increase the revolving commitment up to an additional $10.0 million subject to certain terms and conditions. The Citizens Agreement matures on May 12, 2019, at which time all amounts outstanding will be due and payable. Borrowings under the Citizens Agreement may be used for general corporate purposes, including financing possible future acquisitions and funding working capital. Amounts drawn bear an interest rate equal to, at our option, either a LIBOR rate plus 1.25%, 1.50%, or 1.75% per annum, depending upon availability under the Citizens Agreement, or an alternative base rate plus either 0.25%, 0.50%, or 0.75% per annum, depending upon availability under the Citizens Agreement. We incur a commitment fee on undrawn amounts equal to 0.25% per annum.

The Citizens Agreement is secured by a lien on substantially all of ANI Pharmaceutical Inc.’s and its principal domestic subsidiary’s assets and any future domestic subsidiary guarantors’ assets. The Citizens Agreement includes covenants, subject to certain exceptions, including covenants that restrict our ability to incur additional indebtedness, acquire or dispose of assets, and make and incur capital expenditures. The Citizens Agreement also imposes a financial covenant requiring compliance with a minimum fixed charge coverage ratio of 1.10 to 1.00 during certain covenant testing that is triggered if availability under the Citizens Agreement is below the greater of 12.5% of the revolving commitment and $3.75 million for three consecutive business days.

As of December 31, 2016, we had no outstanding balance on the Line of Credit. In February 2017, we drew down $30.0 million on the Line of Credit (Note 13). As part of this draw down, we implemented the accordion feature and increased the Line of Credit to $40.0 million.

In the second quarter of 2016, we deferred $0.3 million of debt issuance costs related to the Line of Credit, which will be amortized over the three year life of the Line of Credit. The $0.3 million of deferred debt issuance costs are included in prepaid expenses and other current assets in the accompanying consolidated balance sheet at December 31, 2016. During the period from when we entered into the Line of Credit through December 31, 2016, we recorded $65 thousand of interest expense related to the Line of Credit.

INVENTORIES

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

INVENTORIES

3. INVENTORIES

Inventories consist of the following as of December 31:

(in thousands)	2016		2015
Raw materials	$	14,138	$	10,192
Packaging materials		930		998
Work-in-progress		477		456
Finished goods		10,812		1,897
		26,357		13,543
Reserve for excess/obsolete inventories		(174)		(156)
Inventories, net	$	26,183	$	13,387

PROPERTY, PLANT, AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT, AND EQUIPMENT

4. PROPERTY, PLANT, AND EQUIPMENT

Property, Plant, and Equipment consist of the following as of December 31:

(in thousands)	2016		2015
Land	$	160	$	87
Buildings		3,756		3,682
Machinery, furniture, and equipment		8,176		5,623
Construction in progress		4,293		2,189
		16,385		11,581
Less: accumulated depreciation		(5,387)		(4,450)
Property, Plant, and Equipment, net	$	10,998	$	7,131

Depreciation expense for the years ended December 31, 2016, 2015, and 2014 totaled $0.9 million, $0.7 million, and $0.6 million, respectively. During the years ended December 31, 2016 and 2015, there was $0.2 million and $56 thousand of interest capitalized into construction in progress. During the year ended December 31, 2014, there was no material interest capitalized into construction in progress.

INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2016

GOODWILL AND INTANGIBLE ASSETS

INTANGIBLE ASSETS

5. INTANGIBLE ASSETS

Goodwill

As a result of the Merger we recorded goodwill of $1.8 million in our one reporting unit. We assess the recoverability of the carrying value of goodwill on an annual basis as of October 31 of each year, and whenever events occur or circumstances changes that would, more likely than not, reduce the fair value of our reporting unit below its carrying value.

For the goodwill impairment analyses performed at October 31, 2016, 2015, and 2014, we performed qualitative assessments to determine whether it was more likely than not that our goodwill asset was impaired in order to determine the necessity of performing a quantitative impairment test, under which management would calculate the asset’s fair value. When performing the qualitative assessments, we evaluated events and circumstances that would affect the significant inputs used to determine the fair value of the goodwill. Events and circumstances evaluated include: macroeconomic conditions that could affect us, industry and market considerations for the generic pharmaceutical industry that could affect us, cost factors that could affect our performance, our financial performance (including share price), and consideration of any company-specific events that could negatively affect us, our business, or our fair value. Based on our assessments of the aforementioned factors, it was determined that it was more likely than not that the fair value of our one reporting unit is greater than its carrying amount as of October 31, 2016, 2015, and 2014, and therefore no quantitative testing for impairment was required.

In addition to the qualitative impairment analysis performed at October 31, 2016, there were no events or changes in circumstances that could have reduced the fair value of our reporting unit below its carrying value from October 31, 2016 to December 31, 2016. No impairment loss was recognized during the years ended December 31, 2016, 2015, and 2014, and the balance of goodwill was $1.8 million as of both December 31, 2016 and 2015.

Definite-lived Intangible Assets

Acquisition of Abbreviated New Drug Applications

In July 2015, we purchased ANDAs for 22 previously marketed generic drug products from Teva Pharmaceuticals (“Teva”) for $25.0 million in cash and a percentage of future gross profits from product sales. We accounted for this transaction as an asset purchase. The ANDAs are being amortized in full over their estimated useful lives of 10 years.

In March 2015 we purchased an ANDA from Teva for Flecainide, for $4.5 million in cash and a percentage of future gross profits from product sales. We accounted for this transaction as an asset purchase. The ANDA is being amortized in full over its estimated useful life of 10 years.

On December 26, 2013, we entered into an agreement to purchase ANDAs to produce 31 previously marketed generic drug products from Teva for $12.5 million in cash and a percentage of future gross profits from product sales. On January 2, 2014, we paid the first installment of $8.5 million to Teva and we paid the $4.0 million balance on March 6, 2014. The ANDAs are being amortized in full over their estimated useful lives of 10 years.

Acquisition of New Drug Applications and Product Rights

In September 2015, we entered into an agreement to purchase the NDAs for Corticotropin and Corticotropin-Zinc from Merck Sharp & Dohme B.V. for $75.0 million in cash and a percentage of future net sales. The transaction closed in January 2016, and we made the $75.0 million cash payment using cash on hand. In addition, we capitalized $0.3 million of costs directly related to the transaction. We accounted for this transaction as an asset purchase. The $75.3 million NDA assets are being amortized in full over their estimated useful lives of 10 years.

In conjunction with our 2013 merger with BioSante (the “Merger”), we acquired a testosterone gel product that was licensed to Teva (the “Testosterone Gel NDA”) and this product was assigned an intangible asset value of $10.9 million in accounting for the Merger. In May 2015, Teva transferred the rights of the product back to ANI. In exchange, we will pay Teva a royalty of up to $5.0 million, at a rate of 5% of the consideration we receive as a result of commercial sale of the product. We assessed the value of the Testosterone Gel NDA under the new arrangement and determined that the net asset value was recoverable as of the May 2015 transfer date and subsequent balance sheet dates. We began the commercialization process for the product during the second half of 2015 and it continued throughout 2016. In late 2016, we determined that the development and manufacturing costs required to commercialize the product had increased and would pose a significant barrier to commercializing the product ourselves. Generic competition in the testosterone replacement market had increased substantially by the end of 2016, leading to significant decreases in pricing for the product. In the fourth quarter, management began putting forth efforts to sell the Testosterone Gel NDA rather than commercialize it ourselves. As a result of all these factors, in the fourth quarter of 2016, we determined that the facts and circumstances indicated that the asset could be impaired. We performed an impairment assessment, which indicated that the fair value of the asset was lower than the carrying value. We determined the fair value of the Testosterone Gel NDA by using a discounted cash flows model. As a result of this assessment, we recorded an intangible asset impairment of $6.7 million in the year ended December 31, 2016. We also determined in the fourth quarter of 2016 that the asset met the criteria for being held for sale. The Testosterone Gel NDA is now recorded as a short-term asset held for sale in the prepaid expenses and other assets caption in the accompanying consolidated balance sheets at $0.9 million, which is the fair value of the asset less estimated costs to sell. We are no longer amortizing the Testosterone Gel NDA.

In August 2014, we entered into an agreement to purchase (the “Vancocin Purchase Agreement”) the product rights to Vancocin from Shire ViroPharma Incorporated (“Shire”) for $11.0 million in cash. Pursuant to the terms of the Vancocin Purchase Agreement, we acquired the U.S. intellectual property rights and NDA associated with Vancocin, two related ANDAs, and certain equipment and inventory. We accounted for this transaction as an asset purchase. The $10.5 million product rights intangible asset is being amortized in full over its estimated useful life of 10 years.

In July 2014, we entered into an agreement to purchase (the “Lithobid Purchase Agreement”) the product rights to Lithobid from Noven Therapeutics, LLC (“Noven”) for $11.0 million in cash at closing, and $1.0 million in cash if certain approvals were received from the Food and Drug Administration (“FDA”) on or before June 30, 2015. This $1.0 million contingent payment was paid in January 2015. Pursuant to the terms of the Lithobid Purchase Agreement, we acquired the intellectual property rights and NDA associated with Lithobid, as well as a small amount of raw material inventory. We accounted for this transaction as an asset purchase. The $12.0 million product rights intangible asset is being amortized in full over its estimated useful life of 10 years.

Marketing and Distribution Rights

In August 2015, we entered into a distribution agreement with IDT Australia Limited (“IDT”) to market several products in the U.S. The products, all of which are approved ANDAs, require various FDA filings and approvals prior to commercialization. In general, IDT will be responsible for regulatory submissions to the FDA and the manufacturing of certain products. We made an upfront payment to IDT of $1.0 million and will make additional milestone payments upon FDA approval for commercialization of certain products. Upon approval, IDT will manufacture some of the products and we will manufacture the other products. We will market and distribute all the products under our label in the United States, remitting a percentage of profits from sales of the drugs to IDT. We accounted for this transaction as an asset purchase. The $1.0 million upfront payment was recorded as a marketing and distribution rights intangible asset and is being amortized in full over its estimated useful life of seven years.

The components of net definite-lived intangible assets are as follows:

(in thousands)	December 31, 2016				December 31, 2015				Weighted Average
	Gross Carrying		Accumulated		Gross Carrying		Accumulated		Amortization
	Amount		Amortization		Amount		Amortization		Period
Acquired ANDA intangible assets	$	42,076	$	(8,390)	$	42,076	$	(4,287)	10.0 years
NDAs and product rights		150,250		(17,081)		33,422		(5,754)	10.0 years
Marketing and distribution rights		11,042		(2,662)		1,000		(60)	4.7 years
Non-compete agreement		624		(67)		-		-	7.0 years
	$	203,992	$	(28,200)	$	76,498	$	(10,101)

Definite-lived intangible assets are stated at cost, net of accumulated amortization using the straight line method over the expected useful lives of the intangible assets. Amortization expense was $21.4 million, $6.2 million, and $3.3 million for the years ended December 31, 2016, 2015, and 2014, respectively.

We test for impairment of definite-lived intangible assets when events or circumstances indicate that the carrying value of the assets may not be recoverable. We recorded an intangible asset impairment of $6.7 million in the year ended December 31, 2016 in relation to the Testosterone Gel NDA. The testosterone gel NDA asset was classified as held for sale as of December 31, 2016. No events or circumstances arose in 2016, 2015, or 2014 that indicated that the carrying value of any of our other definite-lived intangible assets may not be recoverable. No impairment losses related to intangible assets were recognized in the years ended December 31, 2015 and 2014.

Expected future amortization expense is as follows for the years ending December 31:

(in thousands)
2017	$	21,731
2018		21,376
2019		21,376
2020		20,894
2021		19,448
2022 and thereafter		70,967
Total	$	175,792

- 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

FAIR VALUE DISCLOSURES

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE DISCLOSURES

6. FAIR VALUE DISCLOSURES

Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The inputs used in measuring the fair value of cash and cash equivalents are considered to be Level 1 in accordance with the three-tier fair value hierarchy. The fair market values are based on period-end statements supplied by the various banks and brokers that held the majority of our funds. The fair value of short-term financial instruments (primarily accounts receivable, prepaid expenses, accounts payable, accrued expenses, and other current liabilities) approximate their carrying values because of their short-term nature. While our Notes are recorded on our consolidated balance sheets at their net carrying value of $120.6 million as of December 31, 2016, the Notes are being traded on the bond market and their full fair value is $166.4 million, based on their closing price on December 31, 2016, a Level 1 input.

Our contingent value rights (“CVRs”), which were granted coincident with our merger with BioSante and expire in June 2023, are considered to be contingent consideration and are classified as liabilities. As such, the CVRs were recorded as purchase consideration at their estimated fair value, using Level 3 inputs, and are marked to market each reporting period until settlement. The fair value of CVRs is estimated using the present value of management’s projection of the expected payments pursuant to the terms of the CVR agreement, which is the primary unobservable input. If our projection or expected payments were to increase substantially, the value of the CVRs could increase as a result. The present value of the liability was calculated using a discount rate of 15%. We determined that the fair value of the CVRs was immaterial as of December 31, 2016 and 2015. We also determined that the changes in such fair value were immaterial for the years ended December 31, 2016, 2015, and 2014.

The following table presents our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016 and 2015, by level within the fair value hierarchy:

(in thousands)

Fair Value at

Description

December 31, 2016

Level 1

Level 2

Level 3

Liabilities

CVRs

Fair Value at

Description

December 31, 2015

Level 1

Level 2

Level 3

Liabilities

CVRs

Financial Liabilities Measured at Fair Value on a Non-Recurring Basis

In December 2014, we issued $143.8M of Notes (Note 2). Because we have the option to cash settle the potential conversion of the Notes in cash, we separated the embedded conversion option feature from the debt feature and account for each component separately, based on the fair value of the debt component assuming no conversion option. The calculation of the fair value of the debt component required the use of Level 3 inputs, and was determined by calculating the fair value of similar non-convertible debt, using a theoretical interest rate of 9%. The theoretical interest rate was determined from market comparables to estimate what the interest rate would have been if there was no conversion option embedded in the Notes. The fair value of the embedded conversion option was calculated using the residual value method and is classified as equity.

A portion of the offering proceeds was used to simultaneously enter into “bond hedge” (or purchased call) and “warrant” (or written call) transactions with an affiliate of one of the offering underwriters (Note 2). The exercise price of the bond hedge is $69.48 per share, with an underlying 2,068,792 common shares; the exercise price of the warrant is $96.21 per share of our common stock, also with an underlying 2,068,792 common shares. We calculated the fair value of the bond hedge based on the price we paid to purchase the call. We calculated the fair value of the warrant based on the price at which the affiliate purchased the warrants from us. Because the bond hedge and warrant are both indexed to our common stock and otherwise would be classified as equity, we recorded both elements as equity, resulting in a net reduction to APIC of $15.6 million.

Non-Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

We have no non-financial assets and liabilities that are measured at fair value on a recurring basis.

Non-Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

We measure our long-lived assets, including property, plant and equipment, intangible assets and goodwill, at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. No such fair value impairment was recognized in the years ended December 31, 2015 and 2014.

In the fourth quarter of 2016, the facts and circumstances surrounding our testosterone gel NDA indicated that the asset could be impaired. Our testosterone gel NDA intangible asset was initially acquired as part of the Merger, when we acquired a testosterone gel product that was licensed to Teva. This product was assigned an intangible asset value of $10.9 million in accounting for the Merger. In May 2015, Teva transferred the rights of the product back to ANI. In exchange, we will pay Teva a royalty of up to $5.0 million, at a rate of 5% of the consideration we receive as a result of commercial sale of the product. We assessed the value of the Testosterone Gel NDA under the new arrangement and determined that the net asset value was recoverable as of the May 2015 transfer date and subsequent balance sheet dates. We began the commercialization process for the product during the second half of 2015 and it continued throughout 2016. In late 2016, we determined that the development and manufacturing costs required to commercialize the product had increased and would pose a significant barrier to commercializing the product ourselves. Generic competition in the testosterone replacement market had increased substantially by the end of 2016, leading to significant decreases in pricing for the product. In the fourth quarter, management began putting forth efforts to sell the Testosterone Gel NDA rather than commercialize it ourselves. As a result of all these factors, in the fourth quarter of 2016, we determined that the facts and circumstances indicated that the asset could be impaired. We performed an impairment assessment, which indicated that the fair value of the asset was lower than the carrying value. We determined the fair value of the Testosterone Gel NDA by using a discounted cash flows model. Due to the uncertainty and risk regarding the potential commercialization of the testosterone gel NDA, we used a discount rate of 30% in our valuation. As a result of this assessment, we recorded an intangible asset impairment of $6.7 million in the year ended December 31, 2016. We also determined in the fourth quarter of 2016 that the asset met the criteria for being held for sale. The Testosterone Gel NDA is now recorded as a short-term asset held for sale in the prepaid expenses and other assets caption in the accompanying consolidated balance sheets at $0.9 million, which is the fair value of the asset less estimated costs to sell. We are no longer amortizing the Testosterone Gel NDA. No events or circumstances arose in 2016 that indicated that the carrying value of any of our other definite-lived intangible assets may not be recoverable.

Acquired Non-Financial Assets Measured at Fair Value

In April 2016, we purchased the rights, title, and interest in the NDA for Inderal LA, as well as certain documentation, trademark rights, and finished goods from Cranford Pharmaceuticals, LLC for $60.0 million in cash and milestone payments based on future gross profits from sales of products under the NDA (Note 5). In addition, at closing, we transferred $5.0 million to an escrow account as security for future milestone payments. This escrow account balance is not expected to be released in less than one year and is included in restricted cash in our accompanying consolidated balance sheet as of December 31, 2016. We made the $60.0 million upfront cash payment using cash on hand, capitalized $0.3 million of costs directly related to the transaction, and recognized $3.9 million of minimum milestone payments for a total purchase price of $64.2 million. We accounted for this transaction as an asset purchase. These assets were recorded at their relative fair values, which were determined based on Level 3 unobservable inputs. In order to determine the fair value of the NDA, we used the present value of the estimated cash flows related to the product rights, using a discount rate of 12%. The $52.4 million NDA will be amortized in full over its 10 year useful life, and will be tested for impairment when events or circumstances indicate that the carrying value of the asset may not be recoverable. No such triggering events were identified during the period from the date of acquisition to December 31, 2016 and therefore no impairment loss was recognized for the year ended December 31, 2016. We recorded $10.9 million of finished goods. The fair value of the finished goods was determined based on the estimated sales to be generated from the finished goods, less costs to sell, including a reasonable margin. We recorded the $3.9 million of minimum milestone payments as accrued royalties. We recorded $0.6 million for the non-compete agreement associated with the transaction. In order to determine the fair value of the non-compete agreement, we used the probability-weighted lost cash flows method, using a discount rate of 10%. The non-compete agreement will be amortized in full over its seven year useful life, and will be tested for impairment when events or circumstances indicate that the carrying value of the asset may not be recoverable. No such triggering events were identified during the period from the date of acquisition to December 31, 2016 and therefore no impairment loss was recognized for the year ended December 31, 2016. We also recorded a $0.3 million prepaid balance related to a partially paid purchase order for inventory.

In January 2016, we purchased from Merck Sharp & Dohme B.V. the NDAs for two previously marketed generic drug products for $75.0 million in cash and a percentage of future net sales from product sales (Note 5). In addition, we capitalized $0.3 million in legal costs directly related to the transaction. We accounted for this transaction as an asset purchase. These assets were recorded at their relative fair values, which were determined based on Level 3 unobservable inputs. In order to determine the fair value of the NDAs, we used the present value of the estimated cash flows related to the product rights, using a discount rate of 10%. The NDAs will be amortized in full over their 10 year useful lives, and will be tested for impairment when events or circumstances indicate that the carrying value of the assets may not be recoverable. No such triggering events were identified during the period from the date of acquisition to December 31, 2016 and therefore no impairment loss was recognized for the year ended December 31, 2016.

In January 2016, we purchased from H2-Pharma, LLC the rights to market, sell, and distribute the authorized generic of Lipofen® and a generic hydrocortisone rectal cream product, along with the rights to an early-stage development project, for total consideration of $10.0 million (Note 5). The consideration consisted of a cash payment of $8.8 million and the assumption of $1.2 million in existing royalties owed on the acquired rights. In addition, we capitalized $42 thousand of costs directly related to the transaction. We accounted for this transaction as an asset purchase. These assets were recorded at their relative fair values, which were determined based on Level 3 unobservable inputs. In order to determine the fair value of the rights for purposes of purchase price allocation, we used the present value of the estimate cash flows related to the product rights, using a discount rate of 10%. No value was ascribed to the early-stage development project because the development is still at the preliminary stage, with no expenses incurred or research performed to date. The marketing and distribution rights will be amortized in full over their average estimated useful lives of approximately four years, and will be tested for impairment when events or circumstances indicate that the carrying value of the assets may not be recoverable. No such triggering events were identified from the date of acquisition to December 31, 2016 and therefore no impairment loss was recognized for the year ended December 31, 2016.

In July 2015, we purchased from Teva the ANDAs for 22 previously marketed generic drug products for $25.0 million in cash and a percentage of future gross profits from product sales (Note 5). The value of the ANDAs was based on the total purchase price of $25.0 million. We accounted for this transaction as an asset purchase. These assets were recorded at their relative fair values, which were determined based on Level 3 unobservable inputs. In order to determine the fair value of the ANDAs, we used the present value of the estimated cash flows related to the product rights, using a discount rate of 10%. The $25.0 million of ANDAs will be amortized over their 10 year useful lives, and will be tested for impairment when events or circumstances indicate that the carrying value of the assets may not be recoverable. No such triggering events were identified during the period from the date of acquisition to December 31, 2016 and therefore no impairment loss was recognized in the years ended December 31, 2015 and 2016.

In March 2015, we purchased from Teva the ANDA for Flecainide for $4.5 million in cash and a percentage of future gross profits from product sales (Note 5). The value of the ANDA was based on the purchase price of $4.5 million. We accounted for this transaction as an asset purchase. This asset was recorded at fair value, which was determined based on Level 3 unobservable inputs. In order to determine the fair value of the ANDA, we used the present value of the estimated cash flows related to the product rights, using a discount rate of 10%. The $4.5 million ANDA will be amortized over its 10 year useful life, and will be tested for impairment when events or circumstances indicate that the carrying value of the asset may not be recoverable. No such triggering events were identified during the period from the date of acquisition to December 31, 2016 and therefore no impairment loss was recognized in the years ended December 31, 2015 and 2016.

In August 2014, we acquired from Shire the U.S. product rights associated with Vancocin, certain equipment, and inventory, for total consideration of $11.0 million (Note 5). In addition, we capitalized $0.1 million of legal costs directly related to the transaction. We accounted for this transaction as an asset purchase. These assets were recorded at their relative fair values, which were determined based on Level 3 unobservable inputs. In order to determine the fair value of the product rights, we used the present value of the estimated cash flows related to the product rights, using a discount rate of 10%. The $10.5 million of value assigned to the product rights will be amortized over their 10 year useful life, and will be tested for impairment when events or circumstances indicate that the carrying value of the assets may not be recoverable. No such triggering events were identified during the period from the date of acquisition to December 31, 2016 and therefore no impairment loss was recognized in the years ended December 31, 2014, 2015, and 2016. The $0.2 million of value assigned to the equipment was determined based on the amount for which we believe we would be able to sell the equipment. The equipment will be depreciated over its estimated 10 year useful life, and would be re-valued at fair value if deemed to be other-than-temporarily impaired. We recorded $0.4 million of inventory. The value of the raw material inventory was determined based on the most recent purchase price of the material. The value of the finished goods inventory was determined based on the estimated sales to be generated from the finished goods, less costs to sell, including a reasonable margin.

In July 2014, we acquired from Noven the product rights associated with Lithobid, as well as a small amount of raw material inventory, for total consideration of $12.0 million (Note 5). In addition, we capitalized $45 thousand of legal costs directly related to the transaction. We accounted for this transaction as an asset purchase. These assets were recorded at their relative fair values, which were determined based on Level 3 unobservable inputs. In order to determine the fair value of the product rights, we used the present value of the estimated cash flows related to the product rights, using a discount rate of 10%. The $12.0 million of ANDAs will be amortized over their 10 year useful life, and will be tested for impairment when events or circumstances indicate that the carrying value of the assets may not be recoverable. No such triggering events were identified during the period from the date of acquisition to December 31, 2016 and therefore no impairment loss was recognized in the years ended December 31, 2014, 2015, and 2016. We recorded $86 thousand of inventory. The value of the raw material inventory was determined based on the most recent purchase price of the material.

In the first quarter of 2014, we purchased from Teva the ANDAs for 31 previously marketed generic drug products for $12.5 million in cash and a percentage of future gross profits from product sales (Note 5). The value of the ANDAs was based on the total purchase price of $12.5 million. We accounted for this transaction as an asset purchase. These assets were recorded at their relative fair values, which were determined based on Level 3 unobservable inputs. In order to determine the fair value of the ANDAs, we used the present value of the estimated cash flows related to the product rights, using a discount rate of 10%. The $12.5 million of ANDAs will be amortized over their 10 year useful lives, and will be tested for impairment when events or circumstances indicate that the carrying value of the assets may not be recoverable. No such triggering events were identified during the period from the date of acquisition to December 31, 2016 and therefore no impairment loss was recognized in the years ended December 31, 2014, 2015, and 2016.

- 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

STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2016

Stockholders Equity Note [Abstract]

SHAREHOLDER'S EQUITY

7. STOCKHOLDERS’ EQUITY

Authorized shares

We are authorized to issue up to 33.3 million shares of common stock with a par value of $0.0001 per share, 0.8 million shares of class C special stock with a par value of $0.0001 per share, and 1.7 million shares of undesignated preferred stock with a par value of $0.0001 per share at December 31, 2016.

There were 11.6 million and 11.5 million shares of common stock issued and outstanding as of December 31, 2016 and 2015, respectively.

There were 11 thousand shares of class C special stock issued and outstanding as of December 31, 2016 and 2015. Each share of class C special stock entitles its holder to one vote per share. Each share of class C special stock is exchangeable, at the option of the holder, for one share of our common stock, at an exchange price of $90.00 per share, subject to adjustment upon certain capitalization events. Holders of class C special stock are not entitled to receive dividends or to participate in the distribution of our assets if we were to liquidate, dissolve, or wind-up the company. The holders of class C special stock have no cumulative voting, preemptive, subscription, redemption, or sinking fund rights.

There were no shares of undesignated preferred stock outstanding as of December 31, 2016 and 2015.

Equity Offering

On March 10, 2014, we completed a follow-on public offering of 1.6 million shares of our common stock at a public offering price of $31.00 per share (the “March 2014 Offering”). We received gross proceeds of $50.0 million, or net proceeds of $46.7 million after deducting costs of $3.3 million, including the underwriters’ fees and commissions, as well as expenses directly related to the March 2014 Offering. The number of shares sold in the March 2014 Offering includes the exercise in full by the underwriters of their option to purchase an additional 0.2 million shares of common stock.

Stock Repurchase Program

In October 2015, our Board of Directors authorized a program to repurchase up to $25.0 million of our outstanding common stock through December 31, 2016. The authorization allows for repurchases to be conducted through open market or privately negotiated transactions. Shares acquired under the stock repurchase program are returned to the status of authorized but unissued shares of common stock. The stock repurchase program could be suspended, modified, or discontinued at any time at our discretion.

In January 2016, we purchased 65 thousand shares under the stock repurchase program for $2.5 million. This program terminated on December 31, 2016.

Warrants

Warrants to purchase an aggregate of 2.1 million shares of our common stock were outstanding and exercisable as of December 31, 2016:

	Number of
	Underlying Shares
	of Common Stock		Per Share
Issue Date	(in thousands)		Exercise Price		Expiration Date
December 4, 2014		1,799	$	96.21	March 1, 2020
December 5, 2014		270	$	96.21	March 1, 2020

All outstanding warrants are classified as equity. No warrants were granted, exercised, or expired unexercised during the year ended December 31, 2016.

No warrants were issued or exercised during the year ended December 31, 2015. Warrants to purchase 405 thousand shares of common stock expired during the year ended December 31, 2015.

In December 2014, we issued 2.1 million warrants in conjunction with the issuance of the Notes (Note 2). In January 2014, warrants to purchase an aggregate of 20 thousand shares of common stock were exercised at $9.00 per share. In December 2014, warrants to purchase an aggregate of 63 thousand shares of common stock were exercised at $9.00 per share. Warrants to purchase an aggregate of 198 thousand shares of common stock expired unexercised during the year ended December 31, 2014.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2016

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

STOCK-BASED COMPENSATION

8. STOCK-BASED COMPENSATION

In July 2016, we commenced administration of the ANI Pharmaceuticals, Inc. 2016 Employee Stock Purchase Plan, which was approved by shareholders in our May 25, 2016 annual shareholder meeting. The Board of Directors and shareholders approved a maximum of 0.2 million shares of common stock, which were reserved and made available for issuance under the ESPP. Under the ESPP, participants can purchase shares of our stock at a 15% discount. We issued one thousand shares in 2016. In the year ended December 31, 2016, we recognized $2 thousand and $23 thousand of stock-based compensation expense related to the ESPP in cost of sales and sales, general, and administrative expense in our consolidated statements of earnings, respectively.

All equity-based service awards are granted under the ANI Pharmaceuticals, Inc. Amended and Restated 2008 Stock Incentive Plan (the “2008 Plan”). As of December 31, 2016, 0.2 million shares of our common stock remained available for issuance under the 2008 Plan.

We measure the cost of equity-based service awards based on the grant-date fair value of the award. The cost is recognized over the period during which an employee is required to provide service in exchange for the award or the requisite service period. We recognize stock-based compensation expense ratably over the vesting periods of the awards, adjusted for estimated forfeitures.

The following table summarizes stock-based compensation expense incurred under the 2008 Plan and included in our consolidated statements of earnings:

(in thousands)	Years Ended December 31,
	2016		2015		2014
Cost of sales	$	60	$	82	$	104
Research and development	$	112	$	109	$	69
Selling, general, and administrative	$	5,870	$	3,665	$	3,250

We recognized income tax benefits of $1.0 million, $0.4 million, and $0.6 million for stock-based compensation-related tax deductions in our 2016, 2015, and 2014 consolidated statements of earnings, respectively.

Separation Agreement

On April 26, 2016, we entered into a Separation Agreement and Release (the “Separation Agreement”) with our former Chief Financial Officer (the “Former Officer”), who resigned effective May 6, 2016. Under the Separation Agreement, 25,167 stock options previously granted to the Former Officer vested on May 6, 2016. In addition, 4,050 restricted stock awards and 2,000 stock options previously granted to the Former Officer will vest on March 15, 2017, subject to certain conditions. These actions were accounted for as a modification of the underlying awards and the full expense for the modified awards was recorded in the second quarter 2016. In the second quarter of 2016, we recorded $0.9 million of stock-based compensation expense, net of forfeitures, in relation to the Separation Agreement. In the second quarter 2016, we recognized $0.4 million of additional expense related to the Separation Agreement and transition that was not related to stock-based compensation. All expenses related to the Separation Agreement and transition were recognized in the second quarter 2016.

Stock Options

Outstanding stock options granted to employees generally vest over a period of four years and have 10-year contractual terms. Outstanding stock options granted to non-employee directors generally vest over a period of one to three years and have 10-year contractual terms. Upon exercise of an option, we issue new shares of our common stock or issue shares from treasury stock.

For 2016, 2015, and 2014, the fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model, using the following weighted average assumptions:

	Years Ended December 31,
	2016	2015	2014
Expected option life (years)	5.50 - 6.25	5.50 - 6.25	5.39 - 6.25
Risk-free interest rate	1.14% - 1.55%	1.31% - 1.82%	1.55% - 2.03%
Expected stock price volatility	49.4% - 51.7%	47.9% - 50.5%	50.6% - 55.1%
Dividend yield	—	—	—

We use the simplified method to estimate the life of options. In 2014, 0.3 million options granted by the board of directors but requiring shareholder approval were approved at the May 22, 2014 shareholder’s meeting. As a result, the fair values of these options were calculated using the simplified method less the time between the grant date and the date of the approval, or 5.39 years. The risk-free interest rate used is the yield on a U.S. Treasury note as of the grant date with a maturity equal to the estimated life of the option. We calculated an estimated volatility rate based on the closing prices of several competitors that manufacture similar products. We have not issued a cash dividend in the past nor do we have any current plans to do so in the future; therefore, an expected dividend yield of zero was used.

On April 7, 2016, the Board of Directors approved grants of options to purchase 63 thousand shares of common stock to our officers and options to purchase 13 thousand shares of common stock to non-employee directors.

On April 16, 2015, the Board of Directors approved grants of options to purchase 47 thousand shares of common stock to our officers and options to purchase 9 thousand shares of common stock to non-employee directors. On October 12, 2015, the Board of Directors approved a grant of options to purchase 3 thousand shares of common stock to a new non-employee director.

On April 1, 2014, the Board of Directors approved grants of options to purchase 59 thousand shares of common stock to our officers and options to purchase 16 thousand shares of common stock to non-employee directors. On August 20, 2014, the Board of Directors approved a grant of options to purchase 25 thousand shares of common stock to one of our officers.

A summary of stock option activity under the Plan during the years ended December 31, 2016, 2015, and 2014 is presented below:

							Weighted
					Weighted		Average
			Weighted		Average		Remaining
(in thousands, except per share and	Option		Average		Grant-date		Term		Aggregate
remaining term data)	Shares		Exercise Price		Fair Value		(years)		Intrinsic Value
Outstanding December 31, 2013		120	$	50.35				2.4	$	81
Granted		120		31.59	$	16.84
Options previously granted, approved by shareholders		325		6.39
Exercised		(43)		19.45						638
Forfeited		(4)		6.36
Expired		(60)		73.96
Outstanding December 31, 2014		458	$	14.44				8.7	$	19,472
Granted		138		62.07	$	30.08
Exercised		(89)		9.24						3,937
Forfeited		(33)		11.81
Expired		-		-
Outstanding December 31, 2015		474	$	29.40				8.2	$	10,136
Granted		265		45.60	$	22.45
Exercised		(127)		11.79						5,837
Forfeited		(32)		47.84
Expired		(2)		139.32
Outstanding December 31, 2016		578	$	39.28				8.2	$	12,928
Exercisable at December 31, 2016		128	$	30.87				7.1	$	4,033
Vested or expected to vest at December 31, 2016		567	$	39.11				8.2	$	12,776

As of December 31, 2016, there was $7.6 million of total unrecognized compensation cost related to non-vested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.7 years. During the year ended December 31, 2016, we received $1.6 million in cash from the exercise of stock options and recorded a $0.7 million tax benefit related to these exercises. During the year ended December 31, 2015, we received $0.8 million in cash from the exercise of stock options and recorded a $0.3 million tax benefit related to these exercises. During the year ended December 31, 2014, we received $0.8 million in cash from the exercise of stock options and recorded a $0.1 million tax benefit related to these exercises.

Restricted Stock Awards

Restricted stock awards (“RSAs”) granted to employees generally vest over a period of four years. RSAs granted to non-officer directors generally vest over a period of one to three years.

On April 7, 2016, the Board of Directors approved grants of 31 thousand RSAs to employees and 6 thousand to non-officer directors.

On April 16, 2015, the Board of Directors approved grants of 24 thousand RSAs to employees and four thousand to non-officer directors.

On April 1, 2014, the Board of Directors approved grants of 30 thousand RSAs to our officers. The restricted stock was granted subject to shareholder approval of an increase in the total restricted stock available for grant under the 2008 Plan. The increase in total restricted stock available for grant under the 2008 Plan was approved by shareholders at the May 22, 2014 annual meeting and the restricted stock was granted as of May 22, 2014.

Shares of our common stock delivered to employees and directors will be unrestricted upon vesting. During the vesting period, the recipient of the restricted stock has full voting rights as a stockholder and would receive dividends, if declared, even though the restricted stock remains subject to transfer restrictions and will generally be forfeited upon termination of the officer prior to vesting. The fair value of each RSA is based on the market value of our stock on the date of grant.

A summary of RSA activity under the Plan during the years ended December 31, 2016, 2015, and 2014 is presented below:

			Weighted
			Average Grant		Weighted Average
(in thousands, except per share and			Date Fair		Remaining Term
remaining term data)	Shares		Value		(years)
Unvested at December 31, 2013		50	$	10.20		2.8
Granted		30		29.61
Vested		(17)		10.20
Forfeited		-		-
Unvested at December 31, 2014		63	$	19.34		2.6
Granted		28		67.26
Vested		(23)		15.82
Forfeited		(5)		19.41
Unvested at December 31, 2015		63	$	42.72		2.2
Granted		38		40.59
Vested		(30)		33.89
Forfeited		(8)		46.05
Unvested at December 31, 2016		63	$	45.72		2.2

As of December 31, 2016, there was $2.0 million of total unrecognized compensation cost related to non-vested RSAs granted under the Plan, which is expected to be recognized over a weighted-average period of 2.2 years.

- Definition

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

+ References + Details

INCOME TAXES

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

9. INCOME TAXES

Our total provision/(benefit) from income taxes consists of the following for the years ended December 31, 2016, 2015, and 2014:

(in thousands)	2016		2015		2014

Current income tax provision:
Federal	$	11,717	$	7,264	$	4,034
State		1,321		611		273
Total		13,038		7,875		4,307

Deferred income tax (benefit)/provision:
Federal		(8,387)		(1,468)		2,113
State		(658)		(409)		154
Total		(9,045)		(1,877)		2,267

Change in valuation allowance		134		-		(16,726)
Excess tax benefit from stock-based compensation awards		617		360		784

Total provision/(benefit) for income taxes	$	4,744	$	6,358	$	(9,368)

The difference between our expected income tax provision/(benefit) from applying federal statutory tax rates to the pre-tax income/(loss) and actual income tax provision/(benefit) relates primarily to the effect of the following:

	As of December 31,
	2016			2015			2014

US Federal statutory rate		35.0	%		35.0	%		35.0	%
State taxes, net of Federal benefit		2.1	%		2.1	%		1.0	%
International tax structure impacts		23.3	%		-	%		-	%
Domestic production activities deduction		(14.4)	%		(5.3)	%		-	%
Change in valuation allowance		1.6	%		-	%		(86.5)	%
Stock-based compensation – no windfall tax benefit		5.7	%		1.1	%		4.7	%
Stock-based compensation – windfall tax benefits		-	%		(0.1)	%		(1.2)	%
Change in tax rates and other		1.4	%		(3.5)	%		(1.4)	%
Total income tax provision/(benefit)		54.7	%		29.3	%		(48.4)	%

Deferred income taxes reflect the net tax effects of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Our deferred income tax assets and liabilities consisted of the following:

(in thousands)	As of December 31,
	2016		2015
Deferred tax assets:
Accruals and advances	$	3,002	$	2,153
Bond hedge		10,921		12,243
Accruals for chargebacks and returns		7,137		2,945
Inventory		1,255		1,271
Intangible asset		6,302		3,631
Net operating loss carryforward		5,095		7,938
Other		1,680		1,149
Total deferred tax assets	$	35,392	$	31,330

Deferred tax liabilities:
Depreciation	$	(857)	$	(700)
Debt discount		(7,664)		(10,029)
Intangible assets		(353)		(3,127)
Other		(16)		(16)
Total deferred tax liabilities	$	(8,890)	$	(13,872)
Valuation allowance		(275)		(142)
Total deferred tax asset, net	$	26,227	$	17,316

As of December 31, 2016, we had Federal net operating loss carryforwards of approximately $13.7 million, which expire beginning in 2018, and which arose as a result of the Merger. The utilization of the net operating loss carryforwards are limited in future years as prescribed by Section 382 of the U.S. Internal Revenue Code; our current annual limitation of the Federal net operating loss is approximately $0.8 million per year.

We are required to establish a valuation allowance for deferred tax assets if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the projected future taxable income and tax planning strategies in making this assessment. As of December 31, 2016 and 2015, we have provided a valuation allowance against certain state net operating loss carryforwards of $0.3 million and $0.1 million, respectively.

We are subject to income taxes in numerous jurisdictions in the U.S. Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. We establish liabilities for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These liabilities are established when we believe that certain positions might be challenged despite our belief that our tax return positions are fully supportable. We adjust these liabilities in light of changing facts and circumstances, such as the outcome of a tax audit. The provision for income taxes includes the impact of changes to the liability that is considered appropriate. We identified no material uncertain tax positions as of December 31, 2016 and 2015.

We are subject to income tax audits in all jurisdictions for which we file tax returns. Tax audits by their nature are often complex and can require several years to complete. Neither ANI Pharmaceuticals, Inc. nor any of its subsidiaries is currently under audit in any jurisdiction. All of our income tax returns remain subject to examination by tax authorities due to the availability of net operating loss carryforwards.

COLLABORATIVE ARRANGEMENTS

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

COLLABORATIVE ARRANGEMENTS

10. COLLABORATIVE ARRANGEMENTS

RiconPharma LLC

In July 2011, we entered into a collaborative arrangement with RiconPharma LLC (“RiconPharma”). Under the parties' master product development and collaboration agreement (the “RiconPharma Agreement”), we and RiconPharma agreed to collaborate in a cost, asset and profit sharing arrangement for the development, manufacturing, regulatory approval, and marketing of pharmaceutical products in the United States. In July 2016, we launched our Nilutamide product under the agreement.

In general, RiconPharma is responsible for developing the products and we are responsible for manufacturing, sales, marketing, and distribution of the products. The parties are jointly responsible for directing any bioequivalence studies. We are responsible for obtaining and maintaining all necessary regulatory approvals, including the preparation of all ANDAs.

Under the RiconPharma Agreement and unless otherwise specified in an amendment, the parties will own equally all the rights, title, and interest in the products. To the extent permitted by applicable law, we will be identified on the product packaging as the manufacturer and distributor of the product. During the term, both parties are prohibited from developing, manufacturing, selling, or distributing any products that are identical or bioequivalent to products covered under the agreement. The agreement may be terminated or amended under certain specified circumstances. In August 2016, we and Ricon agreed to a partial termination of the agreement, with only the Nilutamide product remaining under the agreement.

We recognize the costs incurred with respect to this agreement as expense and classify the expenses based on the nature of the costs. In the year ended December 31, 2016, we incurred $2.0 million in costs of sales related to the RiconPharma Agreement. In the years ended December 31, 2016, 2015, and 2014, we incurred $23 thousand, $31 thousand, and $0.4 million in research and development expenses related to the RiconPharma Agreement, respectively.

Sofgen Pharmaceuticals

August 2013 Sofgen Agreement

In August 2013, we entered into an agreement with Sofgen Pharmaceuticals (“Sofgen”) to develop Nimodipine (the “August 2013 Sofgen Agreement”). In general, Sofgen was responsible for the development, manufacturing, and regulatory submission of the product, and we made payments based on the completion of certain milestones. In December 2015, we launched Nimodipine under our label. Sofgen manufactures the drug and we market and distribute the product under our label in the United States, remitting a percentage of profits from sales of the drug to Sofgen.

Under the August 2013 Sofgen Agreement, Sofgen owns all the rights, title, and interest in Nimodipine. During the term, both parties are prohibited from developing, manufacturing, selling, or distributing any product in the United States that is identical or bioequivalent to the product covered under the agreement. The agreement may be terminated or amended under certain specified circumstances.

We recognize the costs incurred with respect to the August 2013 Sofgen Agreement as expense and classify the expenses based on the nature of the costs. In the year ended December 31, 2016, we incurred $0.6 million in cost of sales related to the August 2013 Sofgen Agreement. In the year ended December 31, 2015, we incurred an immaterial amount of cost of sales related to the August 2013 Sofgen Agreement. In the year ended December 31, 2016, we incurred an immaterial amount of research and development expense related to the August 2013 Sofgen Agreement. In the years ended December 31, 2015 and 2014, we incurred $0.4 million and $0.2 million in research and development expenses related to the August 2013 Sofgen Agreement, respectively.

April 2014 Sofgen Agreement

In April 2014, we entered into a second collaboration agreement with Sofgen to develop an oral soft gel prescription product (the “April 2014 Sofgen Agreement”). The product will be subject to an ANDA filing once developed. In general, Sofgen will be responsible for the development, manufacturing, and regulatory submission of the product, including preparation of the ANDA, and we will make payments based on the completion of certain milestones. Upon approval, Sofgen will manufacture the drug and we will market and distribute the product under our label in the United States, remitting a percentage of profits from sales of the drug to Sofgen.

Under the April 2014 Sofgen Agreement, Sofgen will own all the rights, title, and interest in the product. During the term, both parties are prohibited from developing, selling, or distributing any product in the United States that is identical or bioequivalent to the product covered under the agreement. The agreement can be terminated or amended under certain specified circumstances. The agreement’s initial term is ten years from the launch of the product, which term will automatically renew for two year terms until either party terminates the agreement.

We recognize the costs incurred with respect to the April 2014 Sofgen Agreement as expense and classify the expenses based on the nature of the costs. In the year ended December 31, 2016, we did not incur any research and development expenses related to this agreement. In the years ended December 31, 2015 and 2014, we incurred $37 thousand and $0.1 million in research and development expenses related to the agreement, respectively. No revenue has yet been recognized.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

11. COMMITMENTS AND CONTINGENCIES

Operating Leases

We lease equipment under operating leases that expire in September 2018 and February 2021. We also lease office space under operating leases that expire in September 2018 and April 2021.

For the annual periods after December 31, 2016, approximate minimum annual rental payments under non-cancelable leases are presented below:

(in thousands)
	Minimum
	Annual Rental
Year	Payments
2017	$	99
2018		97
2019		66
2020		68
2021		19
Thereafter		-
Total	$	349

Rent expense for the years ended December 31, 2016, 2015, and 2014 totaled $81 thousand, $74 thousand, and $70 thousand, respectively.

Vendor Purchase Minimums

We have supply agreements with four vendors that include purchase minimums. Pursuant to these agreements, we will be required to purchase a total of $9.0 million of API from these four vendors during the year ended December 31, 2017.

Government Regulation

Our products and facilities are subject to regulation by a number of federal and state governmental agencies. The FDA, in particular, maintains oversight of the formulation, manufacture, distribution, packaging, and labeling of all of our products. The Drug Enforcement Administration ("DEA") maintains oversight over our products that are considered controlled substances.

Unapproved Products

Two of our products, Esterified Estrogen with Methyltestosterone (“EEMT”) and Opium Tincture, are marketed without approved NDAs or ANDAs. During the years ended December 31, 2016, 2015, and 2014, net revenues for these products totaled $34.3 million, $44.3 million, and $29.8 million, respectively.

The FDA's policy with respect to the continued marketing of unapproved products is stated in the FDA's September 2011 Compliance Policy Guide Sec. 440.100 titled “Marketed New Drugs without Approved NDAs or ANDAs.” Under this policy, the FDA has stated that it will follow a risk-based approach with regard to enforcement against such unapproved products. The FDA evaluates whether to initiate enforcement action on a case-by-case basis, but gives higher priority to enforcement action against products in certain categories, such as those marketed as unapproved drugs with potential safety risks or that lack evidence of effectiveness. We believe that, so long as we comply with applicable manufacturing standards, the FDA will not take action against us under the current enforcement policy. There can be no assurance, however, that the FDA will continue this policy or not take a contrary position with any individual product or group of products. If the FDA were to take a contrary position, we may be required to seek FDA approval for these products or withdraw such products from the market. If we decide to withdraw the products from the market, our net revenues for generic pharmaceutical products would decline materially, and if we decide to seek FDA approval, we would face increased expenses and might need to suspend sales of the products until such approval was obtained, and there are no assurances that we would receive such approval.

In addition, one group of products that we manufacture on behalf of a contract customer is marketed by that customer without an approved NDA. If the FDA took enforcement action against such customer, the customer may be required to seek FDA approval for the group of products or withdraw them from the market. Our contract manufacturing revenues for the group of unapproved products for the years ended December 31, 2016, 2015, and 2014 were $1.5 million, $1.6 million, and $1.2 million, respectively.

We received royalties on the net sales of a group of contract-manufactured products, which are marketed by the contract customer without an approved NDA. If the FDA took enforcement action against such customer, the customer may be required to seek FDA approval for the group of products or withdraw them from the market. Our royalties on the net sales of these unapproved products were less than 1% of total revenues for the three years ended December 31, 2016, 2015, and 2014.

Louisiana Medicaid Lawsuit

On September 11, 2013, the Attorney General of the State of Louisiana filed a lawsuit in Louisiana state court against numerous pharmaceutical companies, including us, under various state laws, alleging that each defendant caused the state’s Medicaid agency to provide reimbursement for drug products that allegedly were not approved by the FDA and therefore allegedly not reimbursable under the federal Medicaid program. The lawsuit relates to three cough and cold prescription products manufactured and sold by our former Gulfport, Mississippi operation, which was sold in September 2010. Through its lawsuit, the state seeks unspecified damages, statutory fines, penalties, attorneys’ fees, and costs. While we cannot predict the outcome of the lawsuit at this time, we could be subject to material damages, penalties, and fines. We intend to vigorously defend against all claims in the lawsuit.

Other Commitments and Contingencies

All manufacturers of the drug Reglan and its generic equivalent metoclopramide, including ANI, have faced allegations from plaintiffs in various states, including California, New Jersey, and Pennsylvania, claiming bodily injuries as a result of ingestion of metoclopramide or its brand name, Reglan, prior to the FDA's February 2009 Black Box warning requirement. In August 2012, we were dismissed with prejudice from all New Jersey cases. In August 2016, we settled the outstanding California cases. We consider our exposure to this litigation to be limited due to several factors: (1) the only generic metoclopramide that we manufactured prior to the implementation of the FDA's warning requirement was an oral solution introduced after May 28, 2008; (2) our market share for the oral solution was a very small portion of the overall metoclopramide market; and (3) once we received a request for change of labeling from the FDA, we submitted our proposed changes within 30 days, and such changes were subsequently approved by the FDA.

At the present time, we are unable to assess the likely outcome of the cases in the remaining states. Our insurance company has assumed the defense of this matter and paid all losses in settlement of the California cases. We cannot provide assurances that the outcome of these matters will not have an adverse effect on our business, financial condition, and operating results. Furthermore, like all pharmaceutical manufacturers, we may be exposed to other product liability claims in the future, which could limit our coverage under future insurance policies or cause those policies to become more expensive, which could harm our business, financial condition, and operating results.

We launched Erythromycin Ethylsuccinate (“EES”) on September 27, 2016 under a previously approved ANDA. In August, we filed with the FDA to reintroduce this product under a Changes Being Effected in 30 Days submission (a “CBE-30 submission”). Under a CBE-30 submission, certain defined changes to an ANDA can be made if the FDA does not object in writing within 30 days. The FDA’s regulations, guidance documents, and historic actions support the filing of a CBE-30 for the types of changes that we proposed for our EES ANDA. We received no formal written letter from the FDA within 30 days of the CBE-30 submission date, and as such, launched the product in accordance with FDA regulations. On December 16, 2016, and nearly four months after our CBE-30 submission, the FDA sent us a formal written notice that a Prior Approval Supplement (“PAS”) was required for this ANDA. Under a PAS, proposed changes to an ANDA cannot be implemented without prior review and approval by the FDA. Because we did not receive this notice in the timeframe prescribed by the FDA’s regulations, we believe that our supplemental ANDA is valid, and as such continue to market the product. In addition, we filed a PAS which was accepted by the FDA and has an assigned action date of June 2017. We reserve all of our legal options in this matter.

QUARTERLY FINANCIAL DATA

12 Months Ended

Dec. 31, 2016

Quarterly Financial Data [Abstract]

QUARTERLY FINANCIAL DATA

12. QUARTERLY FINANCIAL DATA (unaudited)

The following table presents unaudited quarterly consolidated operating results for each of our last eight fiscal quarters. The information below has been prepared on a basis consistent with our audited consolidated financial statements.

	2016 Quarters (unaudited)
(in thousands, except per share data)	First		Second		Third		Fourth
Net revenues	$	20,555	$	31,337	$	38,525	$	38,205
Total operating expenses		14,889		26,143		30,604		36,907
Operating income		5,666		5,194		7,921		1,298
Net income/(loss)	$	1,346	$	1,125	$	2,543	$	(1,080)
Basic and diluted earnings/(loss) per share:
Basic earnings/(loss) per share	$	0.12	$	0.10	$	0.22	$	(0.09)
Diluted earnings/(loss) per share	$	0.12	$	0.10	$	0.22	$	(0.09)

	2015 Quarters (unaudited)
(in thousands, except per share data)	First		Second		Third		Fourth
Net revenues	$	18,799	$	19,516	$	19,972	$	18,035
Total operating expenses		9,232		11,102		11,521		11,767
Operating income		9,567		8,414		8,451		6,268
Net income	$	4,369	$	3,571	$	4,559	$	2,876
Basic and diluted earnings per share:
Basic earnings per share	$	0.38	$	0.31	$	0.40	$	0.25
Diluted earnings per share	$	0.38	$	0.31	$	0.39	$	0.25

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

13. SUBSEQUENT EVENTS

In February 2017, we entered into an agreement with Cranford Pharmaceuticals, LLC to purchase a distribution license, trademark and certain finished goods inventory for Inderal® XL for $20.2 million in cash. The transaction closed in February 2017, and we made the $20.2 million cash payment using cash on hand.

In February 2017, we entered into an agreement with Holmdel Pharmaceuticals, LP to purchase the NDA, trademark and certain finished goods inventory for InnoPran XL®, including a license to an Orange Book listed patent, for $30.6 million in cash. The transaction closed in February 2017, and we made the $30.6 million cash payment using $30.0 million of funds from our Line of Credit (Note 2) and $0.6 million of cash on hand.

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2016

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Business

Organization and Business

Basis of Presentation

Basis of Presentation

Principles of consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of ANI Pharmaceuticals, Inc. and its subsidiaries. All intercompany accounts and transactions are eliminated in consolidation.

Foreign Currency

Foreign Currency

Foreign currency transaction gains and losses are included in the determination of net income.

Use of Estimates

Use of Estimates

Comprehensive Income

Comprehensive Income

We have no components of other comprehensive income and accordingly, no statement of comprehensive income is included in the accompanying consolidated financial statements.

Credit Concentration

Credit Concentration

Our customers are primarily wholesale distributors, chain drug stores, group purchasing organizations, and other pharmaceutical companies.

Vendor Concentration

Vendor Concentration

Revenue Recognition

Revenue Recognition

Cash and Cash Equivalents

Cash and Cash Equivalents

Accounts Receivable

Accounts Receivable

Accruals for Chargebacks, Rebates, Returns and Other Allowances

Accruals for Chargebacks, Rebates, Returns, and Other Allowances

Chargebacks

Chargeback credits are calculated as follows:

	·	A change in customer mix
	·	A change in negotiated terms with customers
	·	A change in the volume of off-contract purchases
	·	Changes in WAC

As necessary, we adjust ASPs based on anticipated changes in the factors above.

Government Rebates

Returns

Administrative Fees and Other Rebates

Prompt Payment Discounts

The following table summarizes activity in the consolidated balance sheets for accruals and allowances for the years ended December 31, 2016, 2015, and 2014:

(in thousands)	Accruals for Chargebacks, Returns, and Other Allowances
							Administrative		Prompt
			Government				Fees and Other		Payment
	Chargebacks		Rebates		Returns		Rebates		Discounts
Balance at December 31, 2013	$	4,076	$	253	$	736	$	735	$	332
Accruals/Adjustments		35,740		2,692		1,493		5,212		1,820
Credits Taken Against Reserve		(32,951)		(681)		(784)		(4,460)		(1,681)
Balance at December 31, 2014	$	6,865	$	2,264	$	1,445	$	1,487	$	471
Accruals/Adjustments		51,933		6,719		2,808		6,136		2,744
Credits Taken Against Reserve		(47,417)		(4,352)		(1,605)		(5,970)		(2,541)
Balance at December 31, 2015	$	11,381	$	4,631	$	2,648	$	1,653	$	674
Accruals/Adjustments		114,433		9,671		10,271		12,747		5,517
Credits Taken Against Reserve		(99,029)		(8,411)		(7,163)		(10,850)		(4,637)
Balance at December 31, 2016	$	26,785	$	5,891	$	5,756	$	3,550	$	1,554

Inventories

Inventories

Property and Equipment

Property and Equipment

Buildings and improvements		20 - 40 years
Machinery, furniture, and equipment		3 - 10 years

Intangible Assets

Intangible Assets

Goodwill

Goodwill

Collaborative Arrangements

Collaborative Arrangements

Royalties

Royalties

Research and Development Expenses

Research and Development Expenses

Stock-Based Compensation

Stock-Based Compensation

Income Taxes

Income Taxes

We recognize interest and penalties accrued on any unrecognized tax exposures as a component of income tax expense. We did not have any such amounts accrued as of December 31, 2016, 2015, and 2014.

We consider potential tax effects resulting from discontinued operations and record intra-period tax allocations, when those effects are deemed material.

Earnings per Share

Earnings per Share

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period.

The numerator for earnings per share for the years ended December 31, 2016, 2015, and 2014 are calculated for basic and diluted earnings per share as follows:

	Basic						Diluted
(in thousands, except per share amounts)	Year Ended December 31,						Year Ended December 31,
	2016		2015		2014		2016		2015		2014
Net income	$	3,934	$	15,375	$	28,747	$	3,934	$	15,375	$	28,747
Net income allocated to restricted stock		(21)		(85)		(159)		(21)		(84)		(158)
Net income allocated to common shares	$	3,913	$	15,290	$	28,588	$	3,913	$	15,291	$	28,589

Basic Weighted-Average Shares Outstanding		11,445		11,370		10,941		11,445		11,370		10,941
Dilutive effect of stock options and ESPP								128		187		71
Dilutive effect of warrants								-		-		41
Diluted Weighted-Average Shares Outstanding								11,573		11,557		11,053

Earnings per share	$	0.34	$	1.34	$	2.61	$	0.34	$	1.32	$	2.59

Fair Value of Financial Instruments

Fair Value of Financial Instruments

	⋅	Level 1—Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

	⋅	Level 2—Observable market-based inputs other than quoted prices in active markets for identical assets or liabilities.

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

See Note 6 for additional information regarding fair value.

Segment Information

Segment Information

We currently operate in a single reportable segment.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

Recently Adopted Accounting Pronouncements

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2016

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of Valuation and Qualifying Accounts Disclosure

The following table summarizes activity in the consolidated balance sheets for accruals and allowances for the years ended December 31, 2016, 2015, and 2014:

(in thousands)	Accruals for Chargebacks, Returns, and Other Allowances
							Administrative		Prompt
			Government				Fees and Other		Payment
	Chargebacks		Rebates		Returns		Rebates		Discounts
Balance at December 31, 2013	$	4,076	$	253	$	736	$	735	$	332
Accruals/Adjustments		35,740		2,692		1,493		5,212		1,820
Credits Taken Against Reserve		(32,951)		(681)		(784)		(4,460)		(1,681)
Balance at December 31, 2014	$	6,865	$	2,264	$	1,445	$	1,487	$	471
Accruals/Adjustments		51,933		6,719		2,808		6,136		2,744
Credits Taken Against Reserve		(47,417)		(4,352)		(1,605)		(5,970)		(2,541)
Balance at December 31, 2015	$	11,381	$	4,631	$	2,648	$	1,653	$	674
Accruals/Adjustments		114,433		9,671		10,271		12,747		5,517
Credits Taken Against Reserve		(99,029)		(8,411)		(7,163)		(10,850)		(4,637)
Balance at December 31, 2016	$	26,785	$	5,891	$	5,756	$	3,550	$	1,554

Schedule of Earnings Per Share, Basic and Diluted

The numerator for earnings per share for the years ended December 31, 2016, 2015, and 2014 are calculated for basic and diluted earnings per share as follows:

	Basic						Diluted
(in thousands, except per share amounts)	Year Ended December 31,						Year Ended December 31,
	2016		2015		2014		2016		2015		2014
Net income	$	3,934	$	15,375	$	28,747	$	3,934	$	15,375	$	28,747
Net income allocated to restricted stock		(21)		(85)		(159)		(21)		(84)		(158)
Net income allocated to common shares	$	3,913	$	15,290	$	28,588	$	3,913	$	15,291	$	28,589

Basic Weighted-Average Shares Outstanding		11,445		11,370		10,941		11,445		11,370		10,941
Dilutive effect of stock options and ESPP								128		187		71
Dilutive effect of warrants								-		-		41
Diluted Weighted-Average Shares Outstanding								11,573		11,557		11,053

Earnings per share	$	0.34	$	1.34	$	2.61	$	0.34	$	1.32	$	2.59

INDEBTEDNESS (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Convertible Debt

The carrying value of the Notes is as follows as of December 31:

(in thousands)	2016		2015
Principal amount	$	143,750	$	143,750
Unamortized debt discount		(20,644)		(27,016)
Deferred financing costs		(2,463)		(3,307)
Net Carrying value	$	120,643	$	113,427

Interest Income and Interest Expense Disclosure

The following table sets forth the components of total interest expense related to the Notes recognized in the accompanying consolidated statements of earnings for the year ended December 31:

(in thousands)	2016		2015
Contractual coupon	$	4,312	$	4,312
Amortization of debt discount		6,372		6,043
Amortization of finance fees		844		844
Capitalized interest		(234)		(56)
	$	11,294	$	11,143

INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

Inventories consist of the following as of December 31:

(in thousands)	2016		2015
Raw materials	$	14,138	$	10,192
Packaging materials		930		998
Work-in-progress		477		456
Finished goods		10,812		1,897
		26,357		13,543
Reserve for excess/obsolete inventories		(174)		(156)
Inventories, net	$	26,183	$	13,387

PROPERTY, PLANT, AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant, and Equipment consist of the following as of December 31:

(in thousands)	2016		2015
Land	$	160	$	87
Buildings		3,756		3,682
Machinery, furniture, and equipment		8,176		5,623
Construction in progress		4,293		2,189
		16,385		11,581
Less: accumulated depreciation		(5,387)		(4,450)
Property, Plant, and Equipment, net	$	10,998	$	7,131

INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2016

GOODWILL AND INTANGIBLE ASSETS

Schedule of Intangible Assets and Goodwill

The components of net definite-lived intangible assets are as follows:

(in thousands)	December 31, 2016				December 31, 2015				Weighted Average
	Gross Carrying		Accumulated		Gross Carrying		Accumulated		Amortization
	Amount		Amortization		Amount		Amortization		Period
Acquired ANDA intangible assets	$	42,076	$	(8,390)	$	42,076	$	(4,287)	10.0 years
NDAs and product rights		150,250		(17,081)		33,422		(5,754)	10.0 years
Marketing and distribution rights		11,042		(2,662)		1,000		(60)	4.7 years
Non-compete agreement		624		(67)		-		-	7.0 years
	$	203,992	$	(28,200)	$	76,498	$	(10,101)

Finite-lived Intangible Assets Amortization Expense

Expected future amortization expense is as follows for the years ending December 31:

(in thousands)
2017	$	21,731
2018		21,376
2019		21,376
2020		20,894
2021		19,448
2022 and thereafter		70,967
Total	$	175,792

FAIR VALUE DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

(in thousands)

Fair Value at

Description

December 31, 2016

Level 1

Level 2

Level 3

Liabilities

CVRs

Fair Value at

Description

December 31, 2015

Level 1

Level 2

Level 3

Liabilities

CVRs

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2016

Stockholders Equity Note [Abstract]

Schedule of Stockholders' Equity Note, Warrants or Rights

Warrants to purchase an aggregate of 2.1 million shares of our common stock were outstanding and exercisable as of December 31, 2016:

	Number of
	Underlying Shares
	of Common Stock		Per Share
Issue Date	(in thousands)		Exercise Price		Expiration Date
December 4, 2014		1,799	$	96.21	March 1, 2020
December 5, 2014		270	$	96.21	March 1, 2020

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2016

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

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table summarizes stock-based compensation expense incurred under the 2008 Plan and included in our consolidated statements of earnings:

(in thousands)	Years Ended December 31,
	2016		2015		2014
Cost of sales	$	60	$	82	$	104
Research and development	$	112	$	109	$	69
Selling, general, and administrative	$	5,870	$	3,665	$	3,250

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

For 2016, 2015, and 2014, the fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model, using the following weighted average assumptions:

	Years Ended December 31,
	2016	2015	2014
Expected option life (years)	5.50 - 6.25	5.50 - 6.25	5.39 - 6.25
Risk-free interest rate	1.14% - 1.55%	1.31% - 1.82%	1.55% - 2.03%
Expected stock price volatility	49.4% - 51.7%	47.9% - 50.5%	50.6% - 55.1%
Dividend yield	—	—	—

Schedule of Share-based Compansation, Stock Option And Restricted Stock, Activity

A summary of stock option activity under the Plan during the years ended December 31, 2016, 2015, and 2014 is presented below:

							Weighted
					Weighted		Average
			Weighted		Average		Remaining
(in thousands, except per share and	Option		Average		Grant-date		Term		Aggregate
remaining term data)	Shares		Exercise Price		Fair Value		(years)		Intrinsic Value
Outstanding December 31, 2013		120	$	50.35				2.4	$	81
Granted		120		31.59	$	16.84
Options previously granted, approved by shareholders		325		6.39
Exercised		(43)		19.45						638
Forfeited		(4)		6.36
Expired		(60)		73.96
Outstanding December 31, 2014		458	$	14.44				8.7	$	19,472
Granted		138		62.07	$	30.08
Exercised		(89)		9.24						3,937
Forfeited		(33)		11.81
Expired		-		-
Outstanding December 31, 2015		474	$	29.40				8.2	$	10,136
Granted		265		45.60	$	22.45
Exercised		(127)		11.79						5,837
Forfeited		(32)		47.84
Expired		(2)		139.32
Outstanding December 31, 2016		578	$	39.28				8.2	$	12,928
Exercisable at December 31, 2016		128	$	30.87				7.1	$	4,033
Vested or expected to vest at December 31, 2016		567	$	39.11				8.2	$	12,776

Nonvested Restricted Stock Shares Activity

A summary of RSA activity under the Plan during the years ended December 31, 2016, 2015, and 2014 is presented below:

			Weighted
			Average Grant		Weighted Average
(in thousands, except per share and			Date Fair		Remaining Term
remaining term data)	Shares		Value		(years)
Unvested at December 31, 2013		50	$	10.20		2.8
Granted		30		29.61
Vested		(17)		10.20
Forfeited		-		-
Unvested at December 31, 2014		63	$	19.34		2.6
Granted		28		67.26
Vested		(23)		15.82
Forfeited		(5)		19.41
Unvested at December 31, 2015		63	$	42.72		2.2
Granted		38		40.59
Vested		(30)		33.89
Forfeited		(8)		46.05
Unvested at December 31, 2016		63	$	45.72		2.2

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Our total provision/(benefit) from income taxes consists of the following for the years ended December 31, 2016, 2015, and 2014:

(in thousands)	2016		2015		2014

Current income tax provision:
Federal	$	11,717	$	7,264	$	4,034
State		1,321		611		273
Total		13,038		7,875		4,307

Deferred income tax (benefit)/provision:
Federal		(8,387)		(1,468)		2,113
State		(658)		(409)		154
Total		(9,045)		(1,877)		2,267

Change in valuation allowance		134		-		(16,726)
Excess tax benefit from stock-based compensation awards		617		360		784

Total provision/(benefit) for income taxes	$	4,744	$	6,358	$	(9,368)

Schedule of Effective Income Tax Rate Reconciliation

	As of December 31,
	2016			2015			2014

US Federal statutory rate		35.0	%		35.0	%		35.0	%
State taxes, net of Federal benefit		2.1	%		2.1	%		1.0	%
International tax structure impacts		23.3	%		-	%		-	%
Domestic production activities deduction		(14.4)	%		(5.3)	%		-	%
Change in valuation allowance		1.6	%		-	%		(86.5)	%
Stock-based compensation – no windfall tax benefit		5.7	%		1.1	%		4.7	%
Stock-based compensation – windfall tax benefits		-	%		(0.1)	%		(1.2)	%
Change in tax rates and other		1.4	%		(3.5)	%		(1.4)	%
Total income tax provision/(benefit)		54.7	%		29.3	%		(48.4)	%

Schedule of Deferred Tax Assets and Liabilities

(in thousands)	As of December 31,
	2016		2015
Deferred tax assets:
Accruals and advances	$	3,002	$	2,153
Bond hedge		10,921		12,243
Accruals for chargebacks and returns		7,137		2,945
Inventory		1,255		1,271
Intangible asset		6,302		3,631
Net operating loss carryforward		5,095		7,938
Other		1,680		1,149
Total deferred tax assets	$	35,392	$	31,330

Deferred tax liabilities:
Depreciation	$	(857)	$	(700)
Debt discount		(7,664)		(10,029)
Intangible assets		(353)		(3,127)
Other		(16)		(16)
Total deferred tax liabilities	$	(8,890)	$	(13,872)
Valuation allowance		(275)		(142)
Total deferred tax asset, net	$	26,227	$	17,316

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Operating Leases of Lessee Disclosure

For the annual periods after December 31, 2016, approximate minimum annual rental payments under non-cancelable leases are presented below:

(in thousands)
	Minimum
	Annual Rental
Year	Payments
2017	$	99
2018		97
2019		66
2020		68
2021		19
Thereafter		-
Total	$	349

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

+ References + Details

QUARTERLY FINANCIAL DATA (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

The information below has been prepared on a basis consistent with our audited consolidated financial statements.

	2016 Quarters (unaudited)
(in thousands, except per share data)	First		Second		Third		Fourth
Net revenues	$	20,555	$	31,337	$	38,525	$	38,205
Total operating expenses		14,889		26,143		30,604		36,907
Operating income		5,666		5,194		7,921		1,298
Net income/(loss)	$	1,346	$	1,125	$	2,543	$	(1,080)
Basic and diluted earnings/(loss) per share:
Basic earnings/(loss) per share	$	0.12	$	0.10	$	0.22	$	(0.09)
Diluted earnings/(loss) per share	$	0.12	$	0.10	$	0.22	$	(0.09)

	2015 Quarters (unaudited)
(in thousands, except per share data)	First		Second		Third		Fourth
Net revenues	$	18,799	$	19,516	$	19,972	$	18,035
Total operating expenses		9,232		11,102		11,521		11,767
Operating income		9,567		8,414		8,451		6,268
Net income	$	4,369	$	3,571	$	4,559	$	2,876
Basic and diluted earnings per share:
Basic earnings per share	$	0.38	$	0.31	$	0.40	$	0.25
Diluted earnings per share	$	0.38	$	0.31	$	0.39	$	0.25

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	$ 13,586
Ending balance	31,535	$ 13,586
Chargebacks [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	11,381	6,865	$ 4,076
Accruals/Adjustments	114,433	51,933	35,740
Credits Taken Against Reserve	(99,029)	(47,417)	(32,951)
Ending balance	26,785	11,381	6,865
Government Rebates [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	4,631	2,264	253
Accruals/Adjustments	9,671	6,719	2,692
Credits Taken Against Reserve	(8,411)	(4,352)	(681)
Ending balance	5,891	4,631	2,264
Allowance for Sales Returns [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	2,648	1,445	736
Accruals/Adjustments	10,271	2,808	1,493
Credits Taken Against Reserve	(7,163)	(1,605)	(784)
Ending balance	5,756	2,648	1,445
Administrative Fees And Other Rebates [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	1,653	1,487	735
Accruals/Adjustments	12,747	6,136	5,212
Credits Taken Against Reserve	(10,850)	(5,970)	(4,460)
Ending balance	3,550	1,653	1,487
Prompt Payment Discounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	674	471	332
Accruals/Adjustments	5,517	2,744	1,820
Credits Taken Against Reserve	(4,637)	(2,541)	(1,681)
Ending balance	$ 1,554	$ 674	$ 471

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income, Basic	$ (1,080)	$ 2,543	$ 1,125	$ 1,346	$ 2,876	$ 4,559	$ 3,571	$ 4,369	$ 3,934	$ 15,375	$ 28,747
Net income allocated to common shares, Basic									$ 3,913	$ 15,290	$ 28,588
Basic Weighted-Average Shares Outstanding									11,445	11,370	10,941
Earnings per share	$ (0.09)	$ 0.22	$ 0.10	$ 0.12	$ 0.25	$ 0.40	$ 0.31	$ 0.38	$ 0.34	$ 1.34	$ 2.61
Net income, Diluted	$ (1,080)	$ 2,543	$ 1,125	$ 1,346	$ 2,876	$ 4,559	$ 3,571	$ 4,369	$ 3,934	$ 15,375	$ 28,747
Net income allocated to common shares, Diluted									$ 3,913	$ 15,291	$ 28,589
Diluted Weighted-Average Shares Outstanding (in shares)									11,573	11,557	11,053
Earnings per share, Diluted	$ (0.09)	$ 0.22	$ 0.10	$ 0.12	$ 0.25	$ 0.39	$ 0.31	$ 0.38	$ 0.34	$ 1.32	$ 2.59
Equity Option [Member]
Dilutive effect									128	187	71
Warrant [Member]
Dilutive effect									0	0	41
Restricted Stock [Member]
Net income allocated to restricted stock, Basic									$ (21)	$ (85)	$ (159)
Net income allocated to restricted stock, Diluted									$ (21)	$ (84)	$ (158)

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 31, 2017
Fdic Guaranteed Amount	$ 250
Chargebacks And Other Accruals As Percent Of Gross Revenue	50.00%
Impairment of Intangible Assets, Finite-lived	$ 6,685	$ 0	$ 0
Research and Development Expense, Total	2,906	2,874	2,678
Allocated Share-based Compensation Expense	$ 6,100	$ 3,900	$ 3,400
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	3.00%
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4.5	4.5	4.7
Restricted Cash and Cash Equivalents, Noncurrent	$ 5,002	$ 0
Testosterone Gel NDA [Member] \| New Drug Applications [Member]
Impairment of Intangible Assets, Finite-lived	6,700
Adjustments for New Accounting Pronouncement [Member] \| Subsequent Event [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets				$ 14
Adjustments for New Accounting Pronouncement [Member] \| Additional Paid-in Capital [Member]
APIC Pool Not Tax Effected	3,100
Employee Stock Purchase Plan [Member]
Allocated Share-based Compensation Expense	$ 25
Minimum [Member] \| Finite-Lived Intangible Assets [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	2 years
Maximum [Member] \| Finite-Lived Intangible Assets [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years
Building and Building Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life	20 years
Building and Building Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life	40 years
Machinery and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Machinery and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life	10 years
Customer One [Member]
Concentration Risk, Percentage	28.00%	26.00%	30.00%
Customer Two [Member]
Concentration Risk, Percentage	22.00%	20.00%	25.00%
Customer Three [Member]
Concentration Risk, Percentage	18.00%	18.00%	14.00%
Customer One Two And Three [Member]
Concentration Risk, Percentage	83.00%
Two Suppliers 2014 [Member]
Concentration Risk, Percentage			42.00%
One Suppliers 2016 [Member]
Concentration Risk, Percentage	25.00%
Two Suppliers 2015 [Member]
Concentration Risk, Percentage		33.00%

INDEBTEDNESS (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Principal amount	$ 143,750	$ 143,750
Unamortized debt discount	(20,644)	(27,016)
Deferred financing costs	(2,463)	(3,307)
Net carrying value	$ 120,643	$ 113,427

INDEBTEDNESS (Details 1) - USD ($) $ in Thousands	12 Months Ended
INDEBTEDNESS (Details 1) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Contractual coupon	$ 4,312	$ 4,312
Amortization of debt discount	6,372	6,043
Amortization of finance fees	844	844
Capitalized interest	(234)	(56)
Interest Expense, Debt	$ 11,294	$ 11,143

INDEBTEDNESS (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Feb. 28, 2017	Jun. 30, 2016
Long-term Debt, Gross		$ 143,750	$ 143,750
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate		3.00%
Debt Instrument, Unamortized Discount		$ 20,644	$ 27,016
Debt Instrument, Interest Rate, Effective Percentage		7.90%	7.80%
Amortization of Financing Costs		$ 844	$ 844
Deferred Finance Costs, Net		2,463	3,307
Interest Income (Expense), Nonoperating, Net		(11,327)	$ (11,008)	$ (787)
Subsequent Event [Member]
Line of Credit Facility, Maximum Borrowing Capacity					$ 40,000
Long-term Line of Credit					$ 30,000
Prepaid Expenses and Other Current Assets [Member]
Deferred Costs, Current		300
Convertible Senior Notes [Member]
Long-term Debt, Gross				143,800
Proceeds from Issuance of Debt				$ 122,600
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate				3.00%
Underlying Shares Of Common Stock Convertible Debt				2,068,792
Debt Instrument, Convertible, Conversion Price				$ 69.48
Debt Instrument, Convertible, Threshold Trading Days				20
Debt Instrument Percent Of Conversion Price				130.00%
Per Note Principal				$ 1,000
Debt Instrument, Unamortized Discount				$ 33,600
Deferred Offering Costs				$ 5,500
Exercise Price Of Bond Hedge				$ 69.48
Underlying Shares Of Common Stock Bond Hedge			2,068,792	2,068,792
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 96.21	$ 96.21
Net Adjustments To Additional Paid In Capital Bond Hedge Acquired Warrant Issued Net				$ 15,600
Debt Instrument, Convertible, Threshold Consecutive Trading Days				30 days
Amortization of Financing Costs				$ 4,200
Payments of Stock Issuance Costs				$ 1,300
Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 30,000
Debt Instrument, Maturity Date	May 12, 2019
Line of Credit Facility, Commitment Fee Percentage	0.25%
Debt Instrument, Description of Variable Rate Basis	LIBOR rate plus 1.25%, 1.50%, or 1.75% per annum, depending upon availability under the Citizens Agreement, or an alternative base rate plus either 0.25%, 0.50%, or 0.75% per annum
Deferred Finance Costs, Net						$ 300
Interest Income (Expense), Nonoperating, Net		$ 65
Debt Instrument, Covenant Description	1.10 to 1.00
Required Minimum Availability Percentage To Trigger Covenants Line of Credit	12.50%
Required Minimum Availability Balance To Trigger Covenants Line of Credit	$ 3,750
Line Of Credit Facility Additional Revolving Commitment	$ 10,000

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventories
Raw materials	$ 14,138	$ 10,192
Packaging materials	930	998
Work-in-progress	477	456
Finished goods	10,812	1,897
Inventory, Gross, Total	26,357	13,543
Reserve for excess/obsolete inventories	(174)	(156)
Inventories, net	$ 26,183	$ 13,387

PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment, Gross, Total	$ 16,385	$ 11,581
Less: accumulated depreciation	(5,387)	(4,450)
Property, Plant, and Equipment, net	10,998	7,131
Land [Member]
Property, Plant and Equipment, Gross, Total	160	87
Buildings [Member]
Property, Plant and Equipment, Gross, Total	3,756	3,682
Machinery, furniture and equipment [Member]
Property, Plant and Equipment, Gross, Total	8,176	5,623
Construction in progress [Member]
Property, Plant and Equipment, Gross, Total	$ 4,293	$ 2,189

PROPERTY, PLANT, AND EQUIPMENT (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Depreciation, Total	$ 900	$ 700	$ 600
Interest Costs Capitalized	$ 200	$ 56

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended		12 Months Ended
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Aug. 31, 2015	Jul. 31, 2015	Mar. 31, 2015	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
GOODWILL AND INTANGIBLE ASSETS
Gross Carrying Amount						$ 203,992	$ 76,498
Accumulated Amortization						(28,200)	(10,101)
Acquired ANDA intangible assets
GOODWILL AND INTANGIBLE ASSETS
Gross Carrying Amount		$ 25,000	$ 4,500	$ 4,500		42,076	42,076
Accumulated Amortization						$ (8,390)	$ (4,287)
Weighted Average Amortization Period		10 years	10 years	10 years	10 years	10 years	10 years	10 years
NDAs and product rights
GOODWILL AND INTANGIBLE ASSETS
Gross Carrying Amount						$ 150,250	$ 33,422
Accumulated Amortization						$ (17,081)	(5,754)
Weighted Average Amortization Period						10 years
Marketing and distribution rights
GOODWILL AND INTANGIBLE ASSETS
Gross Carrying Amount	$ 1,000					$ 11,042	1,000
Accumulated Amortization						$ (2,662)	(60)
Weighted Average Amortization Period	7 years					4 years 8 months 12 days
Non-compete agreement
GOODWILL AND INTANGIBLE ASSETS
Gross Carrying Amount						$ 624	0
Accumulated Amortization						$ (67)	$ 0
Weighted Average Amortization Period						7 years

INTANGIBLE ASSETS (Details 1) $ in Thousands	Dec. 31, 2016 USD ($)
GOODWILL AND INTANGIBLE ASSETS
2017	$ 21,731
2018	21,376
2019	21,376
2020	20,894
2021	19,448
2022 and thereafter	70,967
Total	$ 175,792

INTANGIBLE ASSETS (Details Textual) - USD ($) $ in Thousands			1 Months Ended								3 Months Ended		12 Months Ended
	Mar. 06, 2014	Jan. 02, 2014	Apr. 30, 2016	Jan. 31, 2016	Aug. 31, 2015	Jul. 31, 2015	May 31, 2015	Mar. 31, 2015	Aug. 31, 2014	Jul. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
GOODWILL AND INTANGIBLE ASSETS
Amortization of Intangible Assets													$ 21,400	$ 6,200	$ 3,300
Payments to Acquire Intangible Assets													144,494	30,500	34,634
Goodwill													1,838	1,838
Finite-Lived Intangible Assets, Gross													203,992	76,498
Accrued Royalties Related To Asset Purchase													3,882	0	0
Impairment of Intangible Assets, Finite-lived													$ 6,685	$ 0	$ 0
Cranford Pharmaceuticals [Member] \| Non Compete Agreement [Member]
GOODWILL AND INTANGIBLE ASSETS
Finite-Lived Intangible Asset, Useful Life			7 years
Finite-Lived Intangible Assets, Gross			$ 600
Acquired ANDA Intangible Assets [Member]
GOODWILL AND INTANGIBLE ASSETS
Payments to Acquire Intangible Assets						$ 25,000		$ 4,500			$ 4,500	$ 12,500
Finite-Lived Intangible Asset, Useful Life						10 years		10 years			10 years	10 years	10 years	10 years	10 years
Finite-Lived Intangible Assets, Gross						$ 25,000		$ 4,500			$ 4,500		$ 42,076	$ 42,076
Marketing and Distribution Rights [Member]
GOODWILL AND INTANGIBLE ASSETS
Finite-Lived Intangible Asset, Useful Life					7 years								4 years 8 months 12 days
Finite-Lived Intangible Assets, Gross					$ 1,000								$ 11,042	$ 1,000
Marketing and Distribution Rights [Member] \| H2 - Pharma, LLC [Member]
GOODWILL AND INTANGIBLE ASSETS
Payments to Acquire Intangible Assets				$ 8,800
Finite-Lived Intangible Asset, Useful Life				4 years
Finite-Lived Intangible Assets, Gross				$ 10,000
Acquisition Costs Capitalized				42
Accrued Royalties Assumed in Asset Purchase				1,200
Testosterone Gel NDA [Member] \| Prepaid Expenses and Other Current Assets [Member]
GOODWILL AND INTANGIBLE ASSETS
Assets Held-for-sale, Not Part of Disposal Group, Current													900
Lithobid Purchase Agreement [Member]
GOODWILL AND INTANGIBLE ASSETS
Payments to Acquire Intangible Assets										$ 11,000
Finite-Lived Intangible Asset, Useful Life										10 years
Finite-Lived Intangible Assets, Gross										$ 12,000
Payment To Acquire Intangible Assets If Contingency Occurs										1,000
Acquisition Costs Capitalized										$ 45
Vancocin Purchase Agreement [Member]
GOODWILL AND INTANGIBLE ASSETS
Payments to Acquire Intangible Assets									$ 11,000
Finite-Lived Intangible Asset, Useful Life									10 years
Finite-Lived Intangible Assets, Gross									$ 10,500
Acquisition Costs Capitalized									$ 100
New Drug Applications [Member] \| Merck Sharp Dohme B.V [Member]
GOODWILL AND INTANGIBLE ASSETS
Payments to Acquire Intangible Assets				$ 75,000
Finite-Lived Intangible Asset, Useful Life				10 years
Finite-Lived Intangible Assets, Gross				$ 75,300
Acquisition Costs Capitalized				$ 300
New Drug Applications [Member] \| Cranford Pharmaceuticals [Member]
GOODWILL AND INTANGIBLE ASSETS
Payments to Acquire Intangible Assets			$ 60,000
Finite-Lived Intangible Asset, Useful Life			10 years
Finite-Lived Intangible Assets, Gross			$ 52,400
Acquisition Costs Capitalized			300
Accrued Royalties Related To Asset Purchase			3,900
Asset Acquisition Purchase Price			$ 64,200
New Drug Applications [Member] \| Testosterone Gel NDA [Member]
GOODWILL AND INTANGIBLE ASSETS
Maximum Royalties Potentially Payable							$ 5,000
Royalty Rate							5.00%
Finite-Lived Intangible Assets, Gross													10,900
Impairment of Intangible Assets, Finite-lived													$ 6,700
Teva Pharmaceuticals [Member]
GOODWILL AND INTANGIBLE ASSETS
Intangible Asset Purchase Agreement Payment	$ 4,000	$ 8,500

FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Liabilities
CVRs	$ 0	$ 0
Fair Value, Inputs, Level 1 [Member]
Liabilities
CVRs	0	0
Fair Value, Inputs, Level 2 [Member]
Liabilities
CVRs	0	0
Fair Value, Inputs, Level 3 [Member]
Liabilities
CVRs	$ 0	$ 0

FAIR VALUE DISCLOSURES (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended								3 Months Ended		12 Months Ended
	Apr. 30, 2016	Jan. 31, 2016	Aug. 31, 2015	Jul. 31, 2015	May 31, 2015	Mar. 31, 2015	Aug. 31, 2014	Jul. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate											15.00%
Payments to Acquire Intangible Assets											$ 144,494	$ 30,500	$ 34,634
Long-term Debt, Gross											143,750	143,750
Long-term Debt, Total											120,643	113,427
Finite-Lived Intangible Assets, Gross											203,992	76,498
Property, Plant and Equipment, Net, Total											10,998	7,131
Inventory, Net, Total											26,183	13,387
Inventory, Finished Goods, Gross											10,812	1,897
Accrued Royalties Related To Asset Purchase											3,882	$ 0	$ 0
Cranford Pharmaceuticals [Member] \| Non Compete Agreement [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate	10.00%
Finite-Lived Intangible Assets, Gross	$ 600
Finite-Lived Intangible Asset, Useful Life	7 years
Cranford Pharmaceuticals [Member] \| Prepaid Purchase Order [Member]
Fair Value Inputs, Assets, Quantitative Information
Prepaid Expense and Other Assets, Current	$ 300
Merck Sharp Dohme B.V [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate		10.00%
Finite-Lived Intangible Assets, Gross		$ 75,000
Finite-Lived Intangible Asset, Useful Life		10 years
Acquisition Costs Capitalized		$ 300
Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information
Theoretical Interest Rate For Debt Without Embedded Conversion Option													9.00%
Fair Value, Inputs, Level 1 [Member]
Fair Value Inputs, Assets, Quantitative Information
Notes Payable, Fair Value Disclosure											166,400
Convertible Senior Notes [Member]
Fair Value Inputs, Assets, Quantitative Information
Long-term Debt, Gross													$ 143,800
Exercise Price Of Bond Hedge													$ 69.48
Underlying Shares Of Common Stock Bond Hedge												2,068,792	2,068,792
Class of Warrant or Right, Exercise Price of Warrants or Rights												$ 96.21	$ 96.21
Net Adjustments To Additional Paid In Capital Bond Hedge Acquired Warrant Issued Net													$ 15,600
Lithobid Purchase Agreement [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate								10.00%
Payments to Acquire Intangible Assets								$ 11,000
Finite-Lived Intangible Assets, Gross								$ 12,000
Finite-Lived Intangible Asset, Useful Life								10 years
Acquisition Costs Capitalized								$ 45
Inventory, Net, Total								$ 86
Vancocin Purchase Agreement [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate							10.00%
Payments to Acquire Intangible Assets							$ 11,000
Finite-Lived Intangible Assets, Gross							$ 10,500
Finite-Lived Intangible Asset, Useful Life							10 years
Acquisition Costs Capitalized							$ 100
Property, Plant and Equipment, Net, Total							$ 200
Property, Plant and Equipment, Useful Life							10 years
Inventory, Net, Total							$ 400
New Drug Applications [Member] \| Cranford Pharmaceuticals [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate	12.00%
Payments to Acquire Intangible Assets	$ 60,000
Finite-Lived Intangible Assets, Gross	$ 52,400
Finite-Lived Intangible Asset, Useful Life	10 years
Acquisition Costs Capitalized	$ 300
Inventory, Finished Goods, Gross	10,900
Funds Held In Escrow In Relation To Asset Purchase	5,000
Accrued Royalties Related To Asset Purchase	3,900
Asset Acquisition Purchase Price	$ 64,200
Acquired ANDA Intangible Assets [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate				10.00%		10.00%				10.00%
Payments to Acquire Intangible Assets				$ 25,000		$ 4,500			$ 4,500	$ 12,500
Finite-Lived Intangible Assets, Gross				$ 25,000		$ 4,500			$ 4,500		$ 42,076	$ 42,076
Finite-Lived Intangible Asset, Useful Life				10 years		10 years			10 years	10 years	10 years	10 years	10 years
Marketing and Distribution Rights [Member]
Fair Value Inputs, Assets, Quantitative Information
Finite-Lived Intangible Assets, Gross			$ 1,000								$ 11,042	$ 1,000
Finite-Lived Intangible Asset, Useful Life			7 years								4 years 8 months 12 days
Marketing and Distribution Rights [Member] \| H2 - Pharma, LLC [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate		10.00%
Payments to Acquire Intangible Assets		$ 8,800
Finite-Lived Intangible Assets, Gross		10,000
Acquisition Costs Capitalized		42
Accrued Royalties Assumed in Asset Purchase		$ 1,200
Testosterone Gel NDA [Member] \| Prepaid Expenses and Other Current Assets [Member]
Fair Value Inputs, Assets, Quantitative Information
Assets Held-for-sale, Not Part of Disposal Group, Current											$ 900
Testosterone Gel NDA [Member] \| New Drug Applications [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate											30.00%
Finite-Lived Intangible Assets, Gross											$ 10,900
Royalty Rate					5.00%
Maximum Royalties Potentially Payable					$ 5,000

STOCKHOLDERS' EQUITY (Details) shares in Thousands	Dec. 31, 2016 $ / shares shares
Class of Warrant, Issued On December 4, 2014 - Expires March 1, 2020 [Member]
Number of Underlying Shares Of Common Stock \| shares	1,799
Per Share Exercise Price \| $ / shares	$ 96.21
Class of Warrant, Issued On December 5, 2014 - Expires March 1, 2020 [Member]
Number of Underlying Shares Of Common Stock \| shares	270
Per Share Exercise Price \| $ / shares	$ 96.21

STOCKHOLDERS' EQUITY (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		12 Months Ended
	Mar. 10, 2014	Jan. 31, 2016	Jan. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Oct. 31, 2015
Proceeds from Issuance of Common Stock, Net				$ 0	$ 0	$ 46,680
Preferred Stock, Shares Authorized				1,666,667	1,666,667
Preferred Stock, Par or Stated Value Per Share				$ 0.0001	$ 0.0001
Stock Repurchase Program [Member]
Stock Repurchase Program, Authorized Amount							$ 25,000
Stock Repurchased and Retired During Period, Shares		65,000
Stock Repurchased and Retired During Period, Value		$ 2,500
Warrant [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 9.00			$ 9.00
Stock Issued During Period Due To Warrant Exercise Number			20,000			63,000
Class Of Warrant Or Right Number Of Securities Called By Warrants That Expired During Period Number					405,000	198,000
Class of Warrant or Right, Outstanding				2,100,000
Class Of Warrant Or Right Issued During Period Number						2,100,000
Common Stock [Member]
Stock Issued During Period, Shares, New Issues	1,600,000					1,613
Shares Issued, Price Per Share	$ 31.00
Proceeds from Issuance of Common Stock	$ 50,000
Proceeds from Issuance of Common Stock, Net	46,700
Payments of Stock Issuance Costs	$ 3,300
Stock Issued During Period Shares New Issues Due to Exercise of Option to Purchase Additional Shares	200,000
Common Stock, Shares Authorized				33,300,000
Common Stock, Par or Stated Value Per Share				$ 0.0001
Common Stock, Shares, Issued				11,600,000	11,500,000
Common Stock, Shares, Outstanding				11,600,000	11,500,000
Class C Special Stock [Member]
Common Stock, Shares Authorized				781,281	781,281
Common Stock, Par or Stated Value Per Share				$ 0.0001	$ 0.0001
Common Stock Conversion Price				$ 90	$ 90.00
Common Stock, Shares, Issued				10,864	10,864
Common Stock, Shares, Outstanding				10,864	10,864
Undesignated Preferred Stock [Member]
Preferred Stock, Shares Authorized				1,700,000
Preferred Stock, Par or Stated Value Per Share				$ 0.0001

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	12 Months Ended
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allocated Share-based Compensation Expense	$ 6,100	$ 3,900	$ 3,400
Cost of Sales [Member] \| 2008 Plan [Member]
Allocated Share-based Compensation Expense	60	82	104
Research and Development Expense [Member] \| 2008 Plan [Member]
Allocated Share-based Compensation Expense	112	109	69
Selling, General and Administrative Expenses [Member] \| 2008 Plan [Member]
Allocated Share-based Compensation Expense	$ 5,870	$ 3,665	$ 3,250

STOCK-BASED COMPENSATION (Details 1)	12 Months Ended
STOCK-BASED COMPENSATION (Details 1)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Dividend yield	0.00%	0.00%	0.00%
Minimum [Member]
Expected option life (years)	5 years 6 months	5 years 6 months	5 years 4 months 20 days
Risk-free interest rate	1.14%	1.31%	1.55%
Expected stock price volatility	49.40%	47.90%	50.60%
Maximum [Member]
Expected option life (years)	6 years 3 months	6 years 3 months	6 years 3 months
Risk-free interest rate	1.55%	1.82%	2.03%
Expected stock price volatility	51.70%	50.50%	55.10%

STOCK-BASED COMPENSATION (Details 2) - Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Option Shares
Outstanding at the beginning of the period (in shares)	474	458	120
Granted (in shares)	265	138	120
Options previously granted, approved by shareholders			325
Exercised (in shares)	(127)	(89)	(43)
Forfeited (in shares)	(32)	(33)	(4)
Expired (in shares)	(2)	0	(60)
Outstanding at the end of the period (in shares)	578	474	458	120
Exercisable at the end of the period (in shares)	128
Vested or expected to vest at the end of the period (in shares)	567
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 29.40	$ 14.44	$ 50.35
Granted (in dollars per share)	45.60	62.07	31.59
Options previously granted, approved by shareholders (in dollars per share)			6.39
Exercised (in dollars per share)	11.79	9.24	19.45
Forfeited (in dollars per share)	47.84	11.81	6.36
Expired (in dollars per share)	139.32	0	73.96
Outstanding at the end of the period (in dollars per share)	39.28	29.40	14.44	$ 50.35
Exercisable at the end of the period (in dollars per share)	30.87
Vested or expected to vest at the end of the period (in dollars per share)	39.11
Weighted Average Grant-date Fair Value
Granted (in dollars per share)	$ 22.45	$ 30.08	$ 16.84
Weighted Average Remaining Term (Years)
Outstanding at the end of the period weighted average remaining term	8 years 2 months 12 days	8 years 2 months 12 days	8 years 8 months 12 days	2 years 4 months 24 days
Exercisable at the end of the period weighted average remaining term	7 years 1 month 6 days
Vested or expected to vest at the end of the period weighted average remaining term	8 years 2 months 12 days
Aggregate Intrinsic Value
Outstanding at the beginning of the period intrinsic value (in dollars)	$ 10,136	$ 19,472	$ 81
Exercised at the end of the period intrinsic value (in dollars)	5,837	3,937	638
Outstanding at the end of the period intrinsic value (in dollars)	12,928	$ 10,136	$ 19,472	$ 81
Exercisable at the end of the period intrinsic value (in dollars)	4,033
Vested or expected to vest at the end of the period intrinsic value (in dollars)	$ 12,776

STOCK-BASED COMPENSATION (Details 3) - Restricted Stock Awards [Member] - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Unvested, Shares, Outstanding, Beginning of period	63	63	50
Unvested Shares, Granted	38	28	30
Unvested Shares, Vested	(30)	(23)	(17)
Unvested Shares, Forfeited	(8)	(5)	0
Unvested Shares, Outstanding, End of period	63	63	63	50
Weighted Average Grant Date Fair Value, Outstanding, Beginning of period	$ 42.72	$ 19.34	$ 10.20
Weighted Average Grant Date Fair Value, Granted	40.59	67.26	29.61
Weighted Average Grant Date Fair Value, Vested	33.89	15.82	10.20
Weighted Average Grant Date Fair Value, Forfeited	46.05	19.41	0
Weighted Average Grant Date Fair Value, Outstanding, End of period	$ 45.72	$ 42.72	$ 19.34	$ 10.20
Weighted Average Remaining Term (in years)	2 years 2 months 12 days	2 years 2 months 12 days	2 years 7 months 6 days	2 years 9 months 18 days

STOCK-BASED COMPENSATION (Details Textual) - USD ($) $ in Thousands				1 Months Ended				3 Months Ended	12 Months Ended
	May 06, 2016	Apr. 07, 2016	Oct. 12, 2015	Apr. 26, 2016	Apr. 16, 2015	Aug. 20, 2014	Apr. 01, 2014	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant									200,000
Allocated Share-based Compensation Expense									$ 6,100	$ 3,900	$ 3,400
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense									$ 1,000	$ 400	$ 600
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term									6 years 3 months	6 years 3 months	6 years 3 months
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term									5 years 6 months	5 years 6 months	5 years 4 months 20 days
Former Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Cost For Officer Transition Non Stock Based Compensation								$ 400
Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Previously Granted Approved By Share holders											300,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period									10 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options									$ 7,600
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition									2 years 8 months 12 days
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options									$ 1,600	$ 800	$ 800
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options									$ 700	$ 300	$ 100
Options [Member] \| Former Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense								$ 900
Stock Option Grants Vested During Period Due To Modification	25,167
Stock Options Modified During Period				2,000
Options [Member] \| Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		63,000			47,000	25,000	59,000
Restricted Stock [Member] \| Former Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Payment Awards Other Than Stock Options Modified During Period				4,050
Non-Employee Director Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period									10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		13,000	3,000		9,000		16,000
Options Previously Granted Approved By Shareholders [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term											5 years 4 months 20 days
Employees Restricted Stock [Member] \| Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense									$ 2
Employees Restricted Stock [Member] \| Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense									$ 23
2008 Plan [Member] \| Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition									2 years 2 months 12 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options									$ 2,000
2008 Plan [Member] \| Non-employee Director Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		6,000			4,000
2008 Plan [Member] \| Non-employee Director Restricted Stock [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period									3 years
2008 Plan [Member] \| Non-employee Director Restricted Stock [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period									1 year
2008 Plan [Member] \| Employees Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period									4 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		31,000			24,000		30,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense									$ 25
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized									200,000
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date									15.00%

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current income tax provision:
Federal	$ 11,717	$ 7,264	$ 4,034
State	1,321	611	273
Total	13,038	7,875	4,307
Deferred income tax (benefit)/provision:
Federal	(8,387)	(1,468)	2,113
State	(658)	(409)	154
Total	(9,045)	(1,877)	2,267
Change in valuation allowance	134	0	(16,726)
Excess tax benefit from stock-based compensation awards	617	360	784
Total provision/(benefit) for income taxes	$ 4,744	$ 6,358	$ (9,368)

INCOME TAXES (Details 1)	12 Months Ended
INCOME TAXES (Details 1)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
US Federal statutory rate	35.00%	35.00%	35.00%
State taxes, net of Federal benefit	2.10%	2.10%	1.00%
International tax structure impacts	23.30%	0.00%	0.00%
Domestic production activities deduction	(14.40%)	(5.30%)	0.00%
Change in valuation allowance	1.60%	0.00%	(86.50%)
Stock-based compensation - no windfall tax benefit	5.70%	1.10%	4.70%
Stock-based compensation - windfall tax benefits	0.00%	(0.10%)	(1.20%)
Change in tax rates and other	1.40%	(3.50%)	(1.40%)
Total income tax provision/(benefit)	54.70%	29.30%	(48.40%)

INCOME TAXES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Accruals and advances	$ 3,002	$ 2,153
Bond hedge	10,921	12,243
Accruals for chargebacks and returns	7,137	2,945
Inventory	1,255	1,271
Intangible asset	6,302	3,631
Net operating loss carryforward	5,095	7,938
Other	1,680	1,149
Total deferred tax assets	35,392	31,330
Deferred tax liabilities:
Depreciation	(857)	(700)
Debt discount	(7,664)	(10,029)
Intangible assets	(353)	(3,127)
Other	(16)	(16)
Total deferred tax liabilities	(8,890)	(13,872)
Valuation allowance	(275)	(142)
Total deferred tax asset, net	$ 26,227	$ 17,316

INCOME TAXES (Details Textual) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Assets, Valuation Allowance	$ 275	$ 142
Operating Loss Carryforwards	$ 13,700
Operating Loss Carryforwards, Limitations on Use	approximately $0.8 million per year.

COLLABORATIVE ARRANGEMENTS (Details Textual) - USD ($)	12 Months Ended
COLLABORATIVE ARRANGEMENTS (Details Textual) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cost of Revenue, Total	$ 48,780,000	$ 12,692,000	$ 11,473,000
Research and Development Expense, Total	2,906,000	2,874,000	2,678,000
Riconpharma LLC [Member]
Cost of Revenue, Total	2,000,000
Research and Development Expense, Total	23,000	31,000	400,000
Sofgen Pharmaceuticals [Member] \| April 2014 Sofgen Agreement [Member]
Research and Development Expense, Total		37,000	100,000
Sofgen Pharmaceuticals [Member] \| August 2013 Sofgen Agreement [Member]
Cost of Revenue, Total	$ 600,000
Research and Development Expense, Total		$ 400	$ 200,000

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Dec. 31, 2016 USD ($)
2017	$ 99
2018	97
2019	66
2020	68
2021	19
Thereafter	0
Total	$ 349

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
COMMITMENTS AND CONTINGENCIES
Operating Leases, Rent Expense		$ 81	$ 74	$ 70
Four Vendors [Member] \| Scenario, Forecast [Member]
COMMITMENTS AND CONTINGENCIES
Long-term Purchase Commitment, Amount	$ 9,000
Unapproved Products [Member]
COMMITMENTS AND CONTINGENCIES
Revenue, Net		34,300	44,300	29,800
Unapproved Products [Member] \| Contract Customer [Member]
COMMITMENTS AND CONTINGENCIES
Revenue, Net		$ 1,500	$ 1,600	$ 1,200

QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net revenues	$ 38,205	$ 38,525	$ 31,337	$ 20,555	$ 18,035	$ 19,972	$ 19,516	$ 18,799	$ 128,622	$ 76,322	$ 55,970
Total operating expenses	36,907	30,604	26,143	14,889	11,767	11,521	11,102	9,232	108,543	43,622	35,964
Operating income	1,298	7,921	5,194	5,666	6,268	8,451	8,414	9,567	20,079	32,700	20,006
Net income/(loss)	$ (1,080)	$ 2,543	$ 1,125	$ 1,346	$ 2,876	$ 4,559	$ 3,571	$ 4,369	$ 3,934	$ 15,375	$ 28,747
Basic and diluted earnings/(loss) per share:
Basic earnings/(loss) per share (in dollars per share)	$ (0.09)	$ 0.22	$ 0.10	$ 0.12	$ 0.25	$ 0.40	$ 0.31	$ 0.38	$ 0.34	$ 1.34	$ 2.61
Diluted earnings/(loss) per share (in dollars per share)	$ (0.09)	$ 0.22	$ 0.10	$ 0.12	$ 0.25	$ 0.39	$ 0.31	$ 0.38	$ 0.34	$ 1.32	$ 2.59

SUBSEQUENT EVENTS (Details Textual) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Subsequent Event [Line Items]
Payments to Acquire Intangible Assets		$ 144,494	$ 30,500	$ 34,634
Inderal XL [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Payments to Acquire Intangible Assets	$ 20,200
InnoPran XL [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Payments to Acquire Intangible Assets	30,600
InnoPran XL [Member] \| Subsequent Event [Member] \| Cash [Member]
Subsequent Event [Line Items]
Payments to Acquire Intangible Assets	600
InnoPran XL [Member] \| Subsequent Event [Member] \| Line of Credit [Member]
Subsequent Event [Line Items]
Payments to Acquire Intangible Assets	$ 30,000