IMPAX LABORATORIES INC, 10-K filed on 2/26/2013
Annual Report
Document And Entity Information (USD $)
12 Months Ended
Dec. 31, 2012
Feb. 15, 2013
Jun. 30, 2012
Document and Entity Information [Abstract]
 
 
 
Entity Registrant Name
IMPAX LABORATORIES INC 
 
 
Document Type
10-K 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Common Stock, Shares Outstanding
 
68,460,371 
 
Entity Public Float
 
 
$ 1,287,132,000 
Amendment Flag
false 
 
 
Entity Central Index Key
0001003642 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Document Period End Date
Dec. 31, 2012 
 
 
Document Fiscal Year Focus
2012 
 
 
Document Fiscal Period Focus
FY 
 
 
Consolidated Balance Sheets (USD $)
Dec. 31, 2012
Dec. 31, 2011
Current assets:
 
 
Cash and cash equivalents
$ 142,162,000 
$ 104,419,000 
Short-term investments
156,756,000 
241,995,000 
Accounts receivable, net
92,249,000 
153,773,000 
Inventory, net
89,764,000 
54,177,000 
Deferred income taxes
42,529,000 
37,853,000 
Prepaid expenses and other current assets
22,083,000 
7,718,000 
Total current assets
545,543,000 
599,935,000 
Property, plant and equipment, net
180,758,000 
118,158,000 
Other assets
42,751,000 
45,914,000 
Deferred income taxes
19,394,000 
28,000 
Intangible assets, net
47,950,000 
2,250,000 
Goodwill
27,574,000 
27,574,000 
Total assets
863,970,000 
793,859,000 
Current liabilities
 
 
Accounts payable
41,340,000 
22,955,000 
Accrued expenses
92,742,000 
70,116,000 
Accrued profit sharing and royalty expenses
4,936,000 
40,766,000 
Deferred revenue
6,277,000 
23,024,000 
Total current liabilities
145,295,000 
156,861,000 
Deferred revenue
6,362,000 
17,131,000 
Other liabilities
21,210,000 
16,926,000 
Total liabilities
172,867,000 
190,918,000 
Commitments and contingencies (Notes 18 and 19)
   
   
Stockholders’ equity:
 
 
Preferred Stock, $0.01 par value, 2,000,000 shares authorized, no shares outstanding at December 31, 2012 and 2011
   
   
Common stock, $0.01 par value, 90,000,000 shares authorized and 68,516,251 and 66,748,336 shares issued at December 31, 2012 and 2011, respectively
685,000 
667,000 
Additional paid-in capital
314,717,000 
285,966,000 
Treasury stock - 243,729 shares
(2,157,000)
(2,157,000)
Accumulated other comprehensive income
5,244,000 
1,724,000 
Retained earnings
372,614,000 
316,741,000 
Total stockholders’ equity
691,103,000 
602,941,000 
Total liabilities and stockholders’ equity
$ 863,970,000 
$ 793,859,000 
Consolidated Balance Sheets (Parentheticals) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Preferred stock, par value (in Dollars per share)
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
2,000,000 
2,000,000 
Preferred stock, shares outstanding
0 
0 
Common stock, par value (in Dollars per share)
$ 0.01 
$ 0.01 
Common stock, shares authorized
90,000,000 
90,000,000 
Common stock, shares issued
68,516,251 
66,748,336 
Treasury stock, shares
243,729 
243,729 
Consolidated Statements of Operations (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Revenues:
 
 
 
Total revenues
$ 581,692,000 
$ 512,919,000 
$ 879,509,000 
Cost of revenues
299,138,000 
254,624,000 
340,246,000 
Gross profit
282,554,000 
258,295,000 
539,263,000 
Operating expenses:
 
 
 
Research and development
81,320,000 
82,701,000 
86,223,000 
Patent litigation
9,772,000 
7,506,000 
6,384,000 
Selling, general and administrative
108,470,000 
68,477,000 
53,332,000 
Total operating expenses
199,562,000 
158,684,000 
145,939,000 
Income from operations
82,992,000 
99,611,000 
393,324,000 
Other (expense) income, net
(138,000)
(2,492,000)
(255,000)
Interest income
1,089,000 
1,149,000 
1,037,000 
Interest expense
(632,000)
(157,000)
(167,000)
Income before income taxes
83,311,000 
98,111,000 
393,939,000 
Provision for income taxes
27,438,000 
32,616,000 
143,521,000 
Net income
55,873,000 
65,495,000 
250,418,000 
Net Income per share:
 
 
 
Basic (in Dollars per share)
$ 0.85 
$ 1.02 
$ 4.04 
Diluted (in Dollars per share)
$ 0.82 
$ 0.97 
$ 3.82 
Weighted average common shares outstanding:
 
 
 
Basic (in Shares)
65,660,271 
64,126,855 
62,037,908 
Diluted (in Shares)
68,404,551 
67,319,989 
65,565,132 
Global Division Sales [Member]
 
 
 
Revenues:
 
 
 
Revenue, product sales
448,682,000 
491,710,000 
864,667,000 
Impax Division Sales [Member]
 
 
 
Revenues:
 
 
 
Revenue, product sales
$ 133,010,000 
$ 21,209,000 
$ 14,842,000 
Consolidated Statements of Comprehensive Income (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Net income
$ 55,873,000 
$ 65,495,000 
$ 250,418,000 
Currency translation adjustments
3,520,000 
(1,087,000)
3,335,000 
Comprehensive income
$ 59,393,000 
$ 64,408,000 
$ 253,753,000 
Consolidated Statements of Changes in Stockholders' Equity (USD $)
Common Stock [Member]
Additional Paid-in Capital [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total
Balance at Dec. 31, 2009
$ 622,000 
$ 223,239,000 
$ (2,157,000)
$ 828,000 
$ (524,000)
$ 222,008,000 
Balance (in Shares) at Dec. 31, 2009
61,966,000 
 
 
 
 
 
Exercise of stock options issuance of restricted stock and sale of common stock under ESPP
25,000 
15,004,000 
 
 
 
15,029,000 
Exercise of stock options issuance of restricted stock and sale of common stock under ESPP (in Shares)
2,495,000 
 
 
 
 
 
Share-based compensation expense
 
10,693,000 
 
 
 
10,693,000 
Issuance of common stock in settlement of royalty obligation
 
332,000 
 
 
 
332,000 
Issuance of common stock in settlement of royalty obligation (in Shares)
16,000 
 
 
 
 
 
Tax benefit related to exercise of stock options and restricted stock
 
6,172,000 
 
 
 
6,172,000 
Currency translation adjustments
 
 
 
 
3,335,000 
3,335,000 
Net income
 
 
 
250,418,000 
 
250,418,000 
Balance at Dec. 31, 2010
647,000 
255,440,000 
(2,157,000)
251,246,000 
2,811,000 
507,987,000 
Balance (in Shares) at Dec. 31, 2010
64,477,000 
 
 
 
 
 
Exercise of stock options issuance of restricted stock and sale of common stock under ESPP
20,000 
11,306,000 
 
 
 
11,326,000 
Exercise of stock options issuance of restricted stock and sale of common stock under ESPP (in Shares)
2,027,000 
 
 
 
 
 
Share-based compensation expense
 
12,685,000 
 
 
 
12,685,000 
Tax benefit related to exercise of stock options and restricted stock
 
6,535,000 
 
 
 
6,535,000 
Currency translation adjustments
 
 
 
 
(1,087,000)
(1,087,000)
Net income
 
 
 
65,495,000 
 
65,495,000 
Balance at Dec. 31, 2011
667,000 
285,966,000 
(2,157,000)
316,741,000 
1,724,000 
602,941,000 
Balance (in Shares) at Dec. 31, 2011
66,504,000 
 
 
 
 
 
Exercise of stock options issuance of restricted stock and sale of common stock under ESPP
18,000 
7,746,000 
 
 
 
7,764,000 
Exercise of stock options issuance of restricted stock and sale of common stock under ESPP (in Shares)
1,768,000 
 
 
 
 
 
Share-based compensation expense
 
16,303,000 
 
 
 
16,303,000 
Tax benefit related to exercise of stock options and restricted stock
 
4,702,000 
 
 
 
4,702,000 
Currency translation adjustments
 
 
 
 
3,520,000 
3,520,000 
Net income
 
 
 
55,873,000 
 
55,873,000 
Balance at Dec. 31, 2012
$ 685,000 
$ 314,717,000 
$ (2,157,000)
$ 372,614,000 
$ 5,244,000 
$ 691,103,000 
Balance (in Shares) at Dec. 31, 2012
68,272,000 
 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:
 
 
 
Net income
$ 55,873 
$ 65,495 
$ 250,418 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
77,934 
15,710 
12,674 
In-process research and development charge
1,550 
 
 
Accretion of interest income on short-term investments
(639)
(870)
(638)
Deferred income taxes (benefits)
(18,861)
13,641 
42,942 
Tax benefit related to the exercise of employee stock options
(4,702)
(6,535)
(6,172)
Deferred revenue
2,278 
2,568 
35,704 
Deferred product manufacturing costs
(2,823)
(1,721)
(10,640)
Recognition of deferred revenue
(29,099)
(25,579)
(230,951)
Amortization of deferred product manufacturing costs
11,669 
3,111 
108,648 
Accrued profit sharing and royalty expense
72,106 
107,760 
101,247 
Payments of profit sharing and royalty expense
(107,935)
(81,145)
(140,794)
Share-based compensation expense
16,303 
12,685 
10,714 
Bad debt expense
 
163 
277 
Payments on accrued litigation settlements
 
 
(5,865)
Changes in certain assets and liabilities:
 
 
 
Accounts receivable
61,524 
(71,882)
103,523 
Inventory
(35,587)
(9,628)
4,581 
Prepaid expenses and other assets
(20,753)
(17,627)
(12,092)
Accounts payable and accrued expenses
24,117 
(2,042)
(17,896)
Other liabilities
3,254 
2,254 
4,081 
Net cash provided by operating activities
106,209 
6,358 
249,761 
Cash flows from investing activities:
 
 
 
Purchase of short-term investments
(210,688)
(359,646)
(403,086)
Maturities of short-term investments
296,566 
375,126 
205,718 
Purchases of property, plant and equipment
(66,900)
(30,524)
(16,267)
Payments for product licensing rights, net
(104,760)
 
 
Net cash used in investing activities
(85,782)
(15,044)
(213,635)
Cash flows from financing activities:
 
 
 
Proceeds from exercise of stock options and ESPP
12,614 
14,774 
17,728 
Tax benefit related to the exercise of employee stock options and restricted stock
4,702 
6,535 
6,172 
Net cash provided by financing activities
17,316 
21,309 
23,900 
Net increase in cash and cash equivalents
37,743 
12,623 
60,026 
Cash and cash equivalents, beginning of year
104,419 
91,796 
31,770 
Cash and cash equivalents, end of year
142,162 
104,419 
91,796 
Cash paid for interest
546 
166 
167 
Cash paid for income taxes
$ 55,356 
$ 24,421 
$ 129,763 
Consolidated Statements of Cash Flows (Parentheticals) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Accrued vendor invoices excluded from the purchase of property, plant, and equipment and the change in accounts payable and accrued expenses
$ 10,017,000 
$ 795,000 
$ 3,119,000 
Note 1 - The Company
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
1. THE COMPANY

Impax Laboratories, Inc. (“Impax” or “Company”) is a technology-based, specialty pharmaceutical company. The Company has two reportable segments, referred to as the “Global Pharmaceuticals Division”, (“Global Division”) and the “Impax Pharmaceuticals Division”, (“Impax Division”).

The Global Division develops, manufactures, sells, and distributes generic pharmaceutical products primarily through four sales channels: the “Global products” sales channel, for generic pharmaceutical prescription products the Company sells directly to wholesalers, large retail drug chains, and others; the “Private Label” sales channel, for generic pharmaceutical over-the-counter (“OTC”) and prescription products the Company sells to unrelated third-party customers who in-turn sell the product under their own label; the “Rx Partner” sales channel, for generic prescription products sold through unrelated third-party pharmaceutical entities under their own label pursuant to alliance and collaboration agreements; and the “OTC Partner” sales channel, for generic pharmaceutical OTC products sold through unrelated third-party pharmaceutical entities under their own label pursuant to alliance and collaboration agreements.  Revenues from the “Global Products” sales channel and the “Private Label” sales channel are reported under the caption “Global Product sales, net” in “Note 21 –Supplementary Financial Information.”  The Company also generates revenue from research and development services provided under a joint development agreement with an unrelated third party pharmaceutical company, and reports such revenue under the caption “Research Partner” revenue in “Note 21 –Supplementary Financial Information.”  The Company provides these services through the research and development group in the Global Division.

The Impax Division is engaged in the development of proprietary brand pharmaceutical products through improvements to already-approved pharmaceutical products to address central nervous system (“CNS”) disorders. The Impax Division currently has one internally developed late stage branded pharmaceutical product candidate, RYTARY™ (IPX066), an extended release capsule formulation of carbidopa-levodopa for the symptomatic treatment of Parkinson’s disease, for which the New Drug Application (“NDA”) was accepted for filing by the U.S. Food and Drug Administration (“FDA”) in February 2012 and which the Company received a Complete Response Letter from the FDA in January 2013. The Company is currently working with the FDA on the appropriate next steps for the RYTARY™ NDA. In addition to RYTARY™, the Impax Division has a number of other product candidates that are in varying stages of development.  The Impax Division is also engaged in product sales and promotion through a direct sales force focused on promoting to physicians, primarily in the CNS community, pharmaceutical products developed by an unrelated third-party pharmaceutical company. Additionally, the Company generates revenue in the Impax Division from research and development services provided under a development and license agreement with another unrelated third-party pharmaceutical company.  Finally, the Company generates revenue in the Impax Division under a License, Development and Commercialization Agreement with another unrelated third-party pharmaceutical company.

In California, the Company utilizes a combination of owned and leased facilities mainly located in Hayward. The Company’s primary properties in California consist of a leased office building used as the Company’s corporate headquarters, in addition to five properties it owns, including a research and development center facility and a manufacturing facility.  Additionally, the Company leases two facilities in Hayward, utilized for additional research and development, administrative services, and equipment storage. In Pennsylvania, the Company owns a packaging, warehousing, and distribution center located in Philadelphia and leases a facility in New Britain used for sales and marketing, finance, and administrative personnel, as well as providing additional warehouse space. Outside the United States, in Taiwan, R.O.C., the Company owns a manufacturing facility.

Note 2 - Summary of Significant Accounting Policies
Significant Accounting Policies [Text Block]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the U.S. Securities & Exchange Commission (SEC) requires the use of estimates and assumptions, based on complex judgments considered reasonable, and affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  The most significant judgments are employed in estimates used in determining values of tangible and intangible assets, legal contingencies, tax assets and tax liabilities,  fair value of share-based compensation related to equity incentive awards issued to employees and directors, and estimates used in applying the Company’s revenue recognition policy including those related to accrued chargebacks, rebates, product returns, Medicare, Medicaid, and other government rebate programs, shelf-stock adjustments, and the timing and amount of deferred and recognized revenue and deferred and amortized product manufacturing costs related to alliance and collaboration agreements.  Actual results may differ from estimated results.  Certain prior year amounts have been reclassified to conform to the presentation for the year ended December 31, 2012.

Principles of Consolidation

The consolidated financial statements of the Company include the accounts of the operating parent company, Impax Laboratories, Inc., its wholly owned subsidiaries, including Impax Laboratories (Taiwan) Inc., and an equity investment in Prohealth Biotech, Inc. (“Prohealth”), in which the Company held a 57.54% majority ownership interest at December 31, 2012. As of December 31, 2012, Prohealth was in the process of being liquidated.  All significant intercompany accounts and transactions have been eliminated.

Cash and Cash Equivalents

The Company considers all short-term investments with maturity of three months or less at the date of purchase to be cash equivalents.  Cash and cash equivalents are stated at cost, which, for cash equivalents, approximates fair value due to their short-term maturity.  The Company is potentially subject to financial instrument concentration of credit risk through its cash and cash equivalents.  The Company maintains cash and cash equivalents with several major financial institutions.  Such amounts frequently exceed Federal Deposit Insurance Corporation (“FDIC”) limits.

Short-Term Investments

Short-term investments represent investments in fixed rate financial instruments with maturities of greater than three months but less than 12 months at the time of purchase. The Company’s short-term investments are held in U.S. Treasury securities, corporate bonds, and high grade commercial paper, which are not insured by the FDIC.  They are stated at amortized cost, which approximates fair value due to their short-term maturity, generally based upon observable market values of similar securities.

Fair Value of Financial Instruments

The Company’s deferred compensation liability is carried at the value of the amount owed to participants, and is derived from observable market data by reference to hypothetical investments.  The carrying values of other financial assets and liabilities such as accounts receivable, accounts payable and accrued expenses approximate their fair values due to their short-term nature.

Contingencies

In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, covering a wide range of matters, including, among others, patent litigation, shareholder lawsuits, and product and clinical trial liability.  In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”) Topic 450, "Contingencies", the Company records accruals for such loss contingencies when it is probable a liability will been incurred and the amount of loss can be reasonably estimated. The Company, in accordance with FASB ASC Topic 450, does not recognize gain contingencies until realized.  The Company records an accrual for legal costs in the period incurred.  A discussion of contingencies is included in the “Commitments and Contingencies,” and “Legal and Regulatory Matters” footnotes below.

Allowance for Doubtful Accounts

The Company maintains allowances for doubtful accounts for estimated losses resulting from amounts deemed to be uncollectible from its customers; these allowances are for specific amounts on certain accounts based on facts and circumstances determined on a case-by-case basis.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash, cash equivalents, short-term investments, and accounts receivable.  The Company limits its credit risk associated with cash, cash equivalents and short-term investments by placing its investments with high quality money market funds, corporate debt, and short-term commercial paper and in securities backed by the U.S. Government.  The Company limits its credit risk with respect to accounts receivable by performing credit evaluations when deemed necessary.  The Company does not require collateral to secure amounts owed to it by its customers.

The following tables present the percentage of total accounts receivable and gross revenues represented by the Company’s five largest customers as of and for the years ended December 31, 2012, 2011 and 2010:

Percent of Total Accounts Receivable
 
2012
   
2011
   
2010
 
                   
Customer #1
    31.9 %     30.4 %     15.0 %
Customer #2
    23.3 %     12.9 %     18.4 %
Customer #3
    18.4 %     25.7 %     28.3 %
Customer #4
    -- %     8.6 %     13.5 %
Customer #5
    -- %     -- %     2.9 %
Customer #6
    3.7 %     2.5 %     -- %
Customer #7
    3.1 %     -- %     -- %
Total Five largest customers
    80.4 %     80.1 %     78.1 %

Percent of Gross Revenues
 
2012
   
2011
   
2010
 
                   
Customer #1
    25.2 %     19.6 %     14.1 %
Customer #2
    21.8 %     15.9 %     19.9 %
Customer #3
    15.1 %     19.4 %     14.2 %
Customer #4
    9.2 %     12.4 %     6.5 %
Customer #5
    2.9 %     2.4 %     3.4 %
Total Five largest customers
    74.2 %     69.7 %     58.1 %

During the years ended December 31, 2012, 2011 and 2010, the Company’s top ten generic products accounted for 70%, 76% and 83%, respectively, of Global Product sales, net.  In our Impax Division, revenue from sales of Zomig® products pursuant to our Distribution, License, Development and Supply Agreement with AstraZeneca accounted for 100% of our Impax Product sales, net. Refer to “Note 21 –Supplemental Financial Information” for more information.

Inventory

Inventory is stated at the lower of cost or market. Cost is determined using a standard cost method, and the cost flow assumption is first in, first out (“FIFO”) flow of goods.  Standard costs are revised annually, and significant variances between actual costs and standard costs are apportioned to inventory and cost of goods sold based upon inventory turnover.  Costs include materials, labor, quality control, and production overhead. Inventory is adjusted for short-dated, unmarketable inventory equal to the difference between the cost of inventory and the estimated value based upon assumptions about future demand and market conditions.  If actual market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required.  Consistent with industry practice, the Company may build pre-launch inventories of certain products which are pending required approval from the FDA and/or resolution of patent infringement litigation, when, in the Company’s assessment, such action is appropriate to increase the commercial opportunity and FDA approval is expected in the near term and/or the litigation will be resolved in the Company’s favor.  The Company accounts for all costs of idle facilities, excess freight and handling costs, and wasted materials (spoilage) as a current period charge in accordance with GAAP.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost.  Maintenance and repairs are charged to expense as incurred and costs of improvements and renewals are capitalized.  Costs incurred in connection with the construction or major renovation of facilities, including interest directly related to such projects, are capitalized as construction in progress. Depreciation is recognized using the straight-line method based on the estimated useful lives of the related assets, which are 40 years for buildings, 15 years for building improvements, seven to 10 years for equipment, and three to seven years for office furniture and equipment.  Land and construction-in-progress are not depreciated.

Goodwill

In accordance with FASB ASC Topic 350, "Goodwill and Other Intangibles", rather than recording periodic amortization, goodwill is subject to an annual assessment for impairment by applying a fair value based test.  Under FASB ASC Topic 350, if the fair value of the reporting unit exceeds the reporting unit’s carrying value, including goodwill, then goodwill is considered not impaired, making further analysis not required.  The Company considers the Global Division and the Impax Division operating segments to each be a reporting unit.  The Company attributes the entire carrying amount of goodwill to the Global Division.

The Company concluded the carrying value of goodwill was not impaired as of December 31, 2012 and 2011 as the fair value of the Global Division exceeded its carrying value at each date.  The Company performs its annual goodwill impairment test in the fourth quarter of each year.  The Company estimated the fair value of the Global Division using a discounted cash flow model for both the reporting unit and the enterprise.  In addition, on a quarterly basis, the Company performs a review of its business operations to determine whether events or changes in circumstances have occurred which could have a material adverse effect on the estimated fair value of the reporting unit, and thus indicate a potential impairment of the goodwill carrying value.  If such events or changes in circumstances were deemed to have occurred, the Company would perform an interim impairment analysis, which may include the preparation of a discounted cash flow model, or consultation with one or more valuation specialists, to determine the impact, if any, on the Company’s assessment of the reporting unit’s fair value.  The Company has not to date deemed there to have been any significant adverse changes in the legal, regulatory, or general economic environment in which the Company conducts its business operations.

Revenue Recognition

The Company recognizes revenue when the earnings process is complete, which under SEC Staff Accounting Bulletin No. 104, Topic No. 13, “Revenue Recognition” (“SAB 104”), is when revenue is realized or realizable and earned, there is persuasive evidence a revenue arrangement exists, delivery of goods or services has occurred, the sales price is fixed or determinable, and collectability is reasonably assured.

The Company accounts for material revenue arrangements which contain multiple deliverables in accordance with FASB ASC Topic 605-25, revenue recognition for arrangements with multiple elements, which addresses the determination of whether an arrangement involving multiple deliverables contains more than one unit of accounting. A delivered item within an arrangement is considered a separate unit of accounting only if both of the following criteria are met:

 
·
the delivered item has value to the customer on a stand-alone basis; and

 
·
if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor.

Under FASB ASC Topic 605-25, if both of the criteria above are not met, then separate accounting for the individual deliverables is not appropriate. Revenue recognition for arrangements with multiple deliverables constituting a single unit of accounting is recognized generally over the greater of the term of the arrangement or the expected period of performance, either on a straight-line basis or on a modified proportional performance method.

The Company accounts for milestones related to research and development activities in accordance with FASB ASC Topic 605-28, milestone method of revenue recognition.  FASB ASC Topic 605-28 allows for the recognition of consideration, which is contingent on the achievement of a substantive milestone, in its entirety in the period the milestone is achieved.  A milestone is considered to be substantive if all of the following criteria are met: the milestone is commensurate with either: (1) the performance required to achieve the milestone, or (2) the enhancement of the value of the delivered items resulting from the performance required to achieve the milestone; the milestone relates solely to past performance; and, the milestone payment is reasonable relative to all of the deliverables and payment terms within the agreement.

Global Product sales, net, and Impax Product sales, net:

The Global Product sales, net and Impax Product sales, net include revenue recognized related to shipments of generic and branded pharmaceutical products to the Company’s customers, primarily drug wholesalers and retail chains. Gross sales revenue is recognized at the time title and risk of loss passes to the customer, which is generally when product is received by the customer. Global and Impax Product revenue, net may include deductions from the gross sales price related to estimates for chargebacks, rebates, distribution service fees, returns, shelf-stock, and other pricing adjustments. The Company records an estimate for these deductions in the same period when revenue is recognized.  A summary of each of these deductions is as follows:

Chargebacks

The Company has agreements establishing contract prices for certain products with certain indirect customers, such as managed care organizations, hospitals and government agencies who purchase products from drug wholesalers. The contract prices are lower than the prices the customer would otherwise pay to the wholesaler, and the price difference is referred to as a chargeback, which generally takes the form of a credit memo issued by the Company to reduce the invoiced gross selling price charged to the wholesaler. An estimated accrued provision for chargeback deductions is recognized at the time of product shipment. The primary factors considered when estimating the provision for chargebacks are the average historical chargeback credits given, the mix of products shipped, and the amount of inventory on hand at the major drug wholesalers with whom the Company does business.  The Company also monitors actual chargebacks granted and compares them to the estimated provision for chargebacks to assess the reasonableness of the chargeback reserve at each quarterly balance sheet date.

Rebates

The Company maintains various rebate programs with its customers in an effort to maintain a competitive position in the marketplace and to promote sales and customer loyalty. The rebates generally take the form of a credit memo to reduce the invoiced gross selling price charged to a customer for products shipped. An estimated accrued provision for rebate deductions is recognized at the time of product shipment. The primary factors the Company considers when estimating the provision for rebates are the average historical experience of aggregate credits issued, the mix of products shipped and the historical relationship of rebates as a percentage of total gross product sales, the contract terms and conditions of the various rebate programs in effect at the time of shipment, and the amount of inventory on hand at the major drug wholesalers with whom the Company does business.  The Company also monitors actual rebates granted and compares them to the estimated provision for rebates to assess the reasonableness of the rebate reserve at each quarterly balance sheet date.

Distribution Service Fees

The Company pays distribution service fees to several of its wholesaler customers related to sales of its Impax Products.  The wholesalers are generally obligated to provide the Company with periodic outbound sales information as well as inventory levels of the Company’s Impax Products held in their warehouses.  Additionally, the wholesalers have agreed to manage the variability of their purchases and inventory levels within specified days on hand limits.  An accrued provision for distribution service fees is recognized at the time products are shipped to wholesalers.

Returns

The Company allows its customers to return product if approved by authorized personnel in writing or by telephone with the lot number and expiration date accompanying any request and if such products are returned within six months prior to or until twelve months following, the products’ expiration date.  The Company estimates and recognizes an accrued provision for product returns as a percentage of gross sales based upon historical experience.  The product return reserve is estimated using a historical lag period, which is the time between when the product is sold and when it is ultimately returned, and estimated return rates which may be adjusted based on various assumptions including changes to internal policies and procedures, changes in business practices, and commercial terms with customers, competitive position of each product, amount of inventory in the wholesaler supply chain, the introduction of new products, and changes in market sales information.  The Company also considers other factors, including significant market changes which may impact future expected returns, and actual product returns.  The Company monitors actual returns on a quarterly basis and may record specific provisions for returns it believes are not covered by historical percentages.

Shelf-Stock Adjustments

Based upon competitive market conditions, the Company may reduce the selling price of certain Global Division products. The Company may issue a credit against the sales amount to a customer based upon their remaining inventory of the product in question, provided the customer agrees to continue to make future purchases of product from the Company. This type of customer credit is referred to as a shelf-stock adjustment, which is the difference between the sales price and the revised lower sales price, multiplied by an estimate of the number of product units on hand at a given date. Decreases in selling prices are discretionary decisions made by the Company in response to market conditions, including estimated launch dates of competing products and declines in market price.  The Company records an estimate for shelf-stock adjustments in the period it agrees to grant such a credit memo to a customer.

Medicaid and Other Government Pricing Programs

As required by law, the Company provides a rebate on drugs dispensed under the Medicaid program, Medicare Part D, TRICARE, and other U.S. government pricing programs. The Company determines its estimated government rebate accrual primarily based on historical experience of claims submitted by the various states and other jurisdictions and any new information regarding changes in the various programs which may impact the Company’s estimate of government rebates. In determining the appropriate accrual amount, the Company considers historical payment rates and processing lag for outstanding claims and payments. The Company records estimates for government rebates as a deduction from gross sales, with a corresponding adjustment to accrued liabilities.

Cash Discounts

The Company offers cash discounts to its customers, generally 2% of the gross selling price, as an incentive for paying within invoice terms, which generally range from 30 to 90 days. An estimate of cash discounts is recorded in the same period when revenue is recognized.

Rx Partner and OTC Partner:

The Rx Partner and OTC Partner contracts include revenue recognized under alliance and collaboration agreements between the Company and unrelated third-party pharmaceutical companies. The Company has entered into these alliance agreements to develop marketing and/or distribution relationships with its partners to fully leverage its technology platform.

The Rx Partners and OTC Partners alliance agreements obligate the Company to deliver multiple goods and/or services over extended periods. Such deliverables include manufactured pharmaceutical products, exclusive and semi-exclusive marketing rights, distribution licenses, and research and development services.  In exchange for these deliverables the Company receives payments from its agreement partners for product shipments and research and development services, and may also receive other payments including royalty, profit sharing, upfront, and periodic milestone payments.  Revenue received from the alliance agreement partners for product shipments under these agreements is not subject to deductions for chargebacks, rebates, product returns, and other pricing adjustments.  Royalty and profit sharing amounts the Company receives under these agreements are calculated by the respective agreement partner, with such royalty and profit share amounts generally based upon estimates of net product sales or gross profit which include estimates of deductions for chargebacks, rebates, product returns, and other adjustments the alliance agreement partners may negotiate with their respective customers.  The Company records the agreement partner's adjustments to such estimated amounts in the period the agreement partner reports the amounts to the Company.

The Company applies the updated guidance of ASC 605-25 “Multiple Element Arrangements” to the Strategic Alliance Agreement with Teva Pharmaceuticals Curacao N.V., a subsidiary of Teva Pharmaceutical Industries Limited (“Teva Agreement”).  The Company looks to the underlying delivery of goods and/or services which give rise to the payment of consideration under the Teva Agreement to determine the appropriate revenue recognition.  The Company initially defers consideration received as a result of research and development-related activities performed under the Teva Agreement.  The Company recognizes deferred revenue on a straight-line basis over the expected period of performance for such services.  Consideration received as a result of the manufacture and delivery of products under the Teva Agreement is recognized at the time title and risk of loss passes to the customer which is generally when product is received by Teva.  The Company recognizes profit share revenue in the period earned.

OTC Partner revenue is related to an agreement with Pfizer Inc. (formerly Wyeth) with respect to the supply of over-the-counter pharmaceutical products.  The OTC Partner sales channel is no longer a core area of the business, and the over-the-counter pharmaceutical products the Company sells through this sales channel are older products which are only sold to Pfizer, and which are currently sold at a loss.  Finally, the manufacturing of the over-the-counter pharmaceutical products is the Company’s only continuing obligation under this agreement with Pfizer.  In order to avoid deferring the losses incurred upon shipment of these products to Pfizer, Inc., the Company recognizes revenue, and the associated manufacturing costs, at the time title and risk of loss passes to Pfizer which is generally when the product is shipped.  The Company recognizes profit share revenue in the period earned.

Research Partner:

The Research Partner contract includes revenue recognized under development agreements with unrelated third-party pharmaceutical companies.  The development agreements generally obligate the Company to provide research and development services over multiple periods. In exchange for this service, the Company received upfront payments upon signing of each development agreement and is eligible to receive contingent milestone payments, based upon the achievement of contractually specified events.  Additionally, the Company may also receive royalty payments from the sale, if any, of a successfully developed and commercialized product under one of these development agreements.  The Company recognizes revenue received from the provision of research and development services, including the upfront payment and the milestone payments received before January 1, 2011 on a straight line basis over the expected period of performance of the research and development services.  Revenue received from the achievement of contingent research and development milestones after January 1, 2011 will be recognized currently in the period such payment is earned.  Royalty fee income, if any, will be recognized as current period revenue when earned.

Promotional Partner:

The Promotional Partner contract includes revenue recognized under a promotional services agreement with an unrelated third-party pharmaceutical company.  The promotional services agreement obligated the Company to provide physician detailing sales calls services to promote certain of the unrelated third-party company’s branded drug products.  The Company received service fee revenue in exchange for providing this service.  The Company recognized revenue from providing physician detailing sales calls services as the services were provided. The Company’s obligation to provide physician detailing sales calls under the promotional services agreement ended on June 30, 2012.

Shipping and Handling Fees and Costs

Shipping and handling fees related to sales transactions are recorded as selling expense.  Shipping costs were $1,425,000, $1,341,000 and $1,741,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

Research and Development

Research and development activities are expensed as incurred and consist of self-funded research and development costs and costs associated with work performed by other participants under collaborative research and development agreements.

Derivatives

The Company does not engage in hedging transactions for trading or speculative purposes or to hedge exposure to currency or interest rate fluctuations. From time to time, the Company may engage in transactions that result in embedded derivatives (e.g. convertible debt securities).  In accordance with FASB ASC Topic 815, derivatives and hedging, the Company records the embedded derivative at fair value on the balance sheet and records any related gains or losses in current earnings in the statement of operations.

Share-Based Compensation

The Company accounts for stock-based employee compensation arrangements in accordance with provisions of FASB ASC Topic 718, stock compensation.  Under FASB ASC Topic 718, the Company recognizes the grant date fair value of stock-based employee compensation as expense on a straight-line basis over the vesting period of the grant.  The Company uses the Black Scholes option pricing model to determine the grant date fair value of employee stock options; the fair value of restricted stock awards is equal to the closing price of the Company’s stock on the date such award was granted.

Income Taxes

The Company provides for income taxes using the asset and liability method as required by FASB ASC Topic 740, income taxes.  This approach recognizes the amount of federal, state, local taxes, and foreign taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for the future tax consequences of events recognized in the consolidated financial statements and income tax returns.  Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates in the period during which they are signed into law.  Under FASB ASC Topic 740, a valuation allowance is required when it is more likely than not all or some portion of the deferred tax assets will not be realized through generating sufficient future taxable income.

FASB ASC Topic 740, Sub-topic 10, tax positions, defines the criterion an individual tax position must meet for any part of the benefit of the tax position to be recognized in financial statements prepared in conformity with generally accepted accounting principles. Under FASB ASC Topic 740, Sub-topic 10, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the tax position. The tax benefits recognized in the financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Additionally, FASB ASC Topic 740, Sub-topic 10 provides guidance on measurement, de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.  In accordance with the disclosure requirements of FASB ASC Topic 740, Sub-topic 10, the Company’s policy on income statement classification of interest and penalties related to income tax obligations is to include such items as part of total interest expense and other expense, respectively.

Earnings per Share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period.  Diluted earnings per share is computed by dividing net income by the weighted average number of common shares adjusted for the dilutive effect of common stock equivalents outstanding during the period.

Other Comprehensive Income

The Company follows the provisions of FASB ASC Topic 220, comprehensive income, which establishes standards for the reporting and display of comprehensive income and its components.  Comprehensive income is defined to include all changes in equity during a period except those resulting from investments by owners and distributions to owners.  The Company recorded foreign currency translation gains and losses, which are reported as comprehensive income.  Foreign currency translation gains (losses) for the years ended December 31, 2012, 2011 and 2010 were $3,520,000, $(1,087,000) and $3,335,000, respectively.

Deferred Financing Costs

The Company capitalizes direct costs incurred with obtaining debt financing, which are included in other assets on the consolidated balance sheet. Deferred financing costs, including costs incurred in obtaining debt financing, are amortized to interest expense over the term of the underlying debt on a straight-line basis, which approximates the effective interest method.  The Company recognized amortization of $30,000, $28,000 and $25,000, in the years ended December 31, 2012, 2011, and 2010, respectively.

Foreign Currency Translation

The Company translates the assets and liabilities of the Taiwan dollar functional currency of its majority-owned affiliate Prohealth Biotechnology, Inc. and its wholly-owned subsidiary Impax Laboratories (Taiwan), Inc. into the U.S. dollar reporting currency using exchange rates in effect at the end of each reporting period.  The revenue and expense of these entities are translated using an average of the rates in effect during the reporting period.  Gains and losses from these translations are recorded as currency translation adjustments included in the consolidated statements of comprehensive income and the consolidated statements of changes in shareholders’ equity.

Note 3 - Recent Accounting Pronouncements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
3. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2011, the FASB amended its guidance about fair value measurement and disclosure. The new guidance was issued in conjunction with a new International Financial Reporting Standards ("IFRS") fair value measurement standard aimed at updating IFRS to conform to U.S. GAAP. The new FASB guidance resulted in some additional disclosure requirements; however, it did not result in significant modifications to existing FASB guidance with respect to fair value measurement and disclosure. The Company was required to adopt this guidance on January 1, 2012 and it did not have a material effect on the Company’s consolidated financial statements upon adoption.

In December 2011, the FASB issued its updated guidance on balance sheet offsetting. This new standard provides guidance to determine when offsetting in the balance sheet is appropriate. The guidance is designed to enhance disclosures by requiring improved information about financial instruments and derivative instruments.  The goal is to provide users of the financial statements the ability to evaluate the effect or potential effect of netting arrangements on an entity's statement of financial position. This guidance will only impact the disclosures within an entity's financial statements and notes to the financial statements and does not result in a change to the accounting treatment of financial instruments and derivative instruments. The Company is required to adopt this guidance on January 1, 2013 and does not expect the adoption to have a material effect on its consolidated financial statements.

Note 4 - Investments
Investment [Text Block]
4. INVESTMENTS

Investments consist of commercial paper, corporate bonds, medium-term notes, government sponsored enterprise obligations and certificates of deposit.  The Company’s policy is to invest in only high quality “AAA-rated” or investment-grade securities.  Investments in debt securities are accounted for as ‘held-to-maturity’ and are recorded at amortized cost, which approximates fair value, generally based upon observable market values of similar securities.  The Company has historically held all investments in debt securities until maturity, and has the ability and intent to continue to do so.  All of the Company’s investments have remaining contractual maturities of less than 12 months and are classified as short-term.  Upon maturity the Company uses a specific identification method.

A summary of short-term investments as of December 31, 2012 and December 31, 2011 follows:

(in $000’s)
 
Amortized
   
Gross
Unrecognized
   
Gross
Unrecognized
   
Fair
 
December 31, 2012
 
Cost
   
Gains
   
Losses
   
Value
 
Commercial paper
  $ 70,140     $ 28     $ --     $ 70,168  
Government sponsored enterprise obligations
    9,994       4       --       9,998  
Corporate bonds
    76,622       23       (12 )     76,633  
Total short-term investments
  $ 156,756     $ 55     $ (12 )   $ 156,799  

(in $000’s)
 
Amortized
   
Gross
Unrecognized
   
Gross
Unrecognized
   
Fair
 
December 31, 2011
 
Cost
   
Gains
   
Losses
   
Value
 
Commercial paper
  $ 69,341     $ 17     $ (5 )   $ 69,353  
Government sponsored enterprise obligations
    100,928       32       (13 )     100,947  
Corporate bonds
    58,219       5       (33 )     58,191  
Certificates of deposit
    13,507       1       (1 )     13,507  
Total short-term investments
  $ 241,995     $ 55     $ (52 )   $ 241,998  

Note 5 - Accounts Receivable
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
5. ACCOUNTS RECEIVABLE

The composition of accounts receivable, net is as follows:

   
December 31,
   
December 31,
 
(in $000’s)
 
2012
   
2011
 
Gross accounts receivable
  $ 167,696     $ 210,557  
Less:  Rebate reserve
    (46,011 )     (29,164 )
Less:  Chargeback reserve
    (18,410 )     (22,161 )
Less:  Other deductions
    (11,026 )     (5,459 )
Accounts receivable, net
  $ 92,249     $ 153,773  

A roll forward of the chargeback and rebate reserves activity for the years ended December 31, 2012, 2011 and 2010 is as follows:

(in $000’s)
 
December 31,
   
December 31,
   
December 31,
 
Rebate reserve
 
2012
   
2011
   
2010
 
                   
Beginning balance
  $ 29,164     $ 23,547     $ 40,443  
Provision recorded during the period
    111,099       79,697       103,052  
Credits issued during the period
    (94,252 )     (74,080 )     (119,948 )
Ending balance
  $ 46,011     $ 29,164     $ 23,547  

(in $000’s)
 
December 31,
   
December 31,
   
December 31,
 
Chargeback reserve
 
2012
   
2011
   
2010
 
                   
Beginning balance
  $ 22,161     $ 14,918     $ 21,448  
Provision recorded during the period
    209,452       166,504       181,566  
Credits issued during the period
    (213,203 )     (159,261 )     (188,096 )
Ending balance
  $ 18,410     $ 22,161     $ 14,918  

Other deductions include allowance for uncollectible amounts and cash discounts.  The Company maintains an allowance for doubtful accounts for estimated losses resulting from amounts deemed to be uncollectible from its customers, with such allowances for specific amounts on certain accounts.  The Company recorded an allowance for uncollectible amounts of $553,000 and $612,000 at December 31, 2012 and 2011, respectively.

Note 6 - Inventory
Inventory Disclosure [Text Block]
6. INVENTORY

Inventory, net of carrying value reserves at December 31, 2012 and 2011 consisted of the following:

(in $000’s)
 
December 31,
2012
   
December 31,
2011
 
Raw materials
  $ 31,884     $ 32,454  
Work in process
    4,005       5,046  
Finished goods
    60,956       24,947  
Total inventory
    96,845       62,447  
                 
Less: Non-current inventory
    7,081       8,270  
Total inventory-current
  $ 89,764     $ 54,177  

Inventory carrying value reserves were $5,231,000 and $5,533,000 at December 31, 2012 and 2011, respectively.

To the extent inventory is not scheduled to be utilized in the manufacturing process and/or sold within twelve months of the balance sheet date, it is included as a component of other non-current assets. Amounts classified as non-current inventory consist of raw materials, net of valuation reserves.  Raw materials generally have a shelf life of approximately three to five years, while finished goods generally have a shelf life of approximately two years.

The Company recognizes pre-launch inventories at the lower of its cost or the expected net selling price. Cost is determined using a standard cost method, which approximates actual cost, and assumes a FIFO flow of goods. Costs of unapproved products are the same as approved products and include materials, labor, quality control, and production overhead.  The carrying value of unapproved inventory less reserves, was $12,106,000 and $3,726,000 at December 31, 2012 and 2011, respectively.  When the Company concludes FDA approval is expected within approximately six months, the Company will generally begin to schedule manufacturing process validation studies as required by the FDA to demonstrate the production process can be scaled up to manufacture commercial batches. Consistent with industry practice, the Company may build quantities of pre-launch inventories of certain products pending required final FDA approval and/or resolution of patent infringement litigation, when, in the Company’s assessment, such action is appropriate to increase the commercial opportunity, FDA approval is expected in the near term, and/or the litigation will be resolved in the Company’s favor.  The capitalization of unapproved pre-launch inventory involves risks, including, among other items, FDA approval of product may not occur; approvals may require additional or different testing and/or specifications than used for unapproved inventory, and, in cases where the unapproved inventory is for a product subject to litigation, the litigation may not be resolved or settled in favor of the Company. If any of these risks were to materialize and the launch of the unapproved product delayed or prevented, then the net carrying value of unapproved inventory may be partially or fully reserved. Generally, the selling price of a generic pharmaceutical product is at discount from the corresponding brand product selling price. Typically, a generic drug is easily substituted for the corresponding brand product, and once a generic product is approved, the pre-launch inventory is typically sold within the next three months. If the market prices become lower than the product inventory carrying costs, then the pre-launch inventory value is reduced to such lower market value. If the inventory produced exceeds the estimated market acceptance of the generic product and becomes short-dated, a carrying value reserve will be recorded. In all cases, the carrying value of the Company's pre-launch product inventory is lower than the respective estimated net selling prices.

Note 7 - Property, Plant and Equipment
Property, Plant and Equipment Disclosure [Text Block]
7. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, net consisted of the following:

(in $000’s)
 
December 31,
2012
   
December 31,
2011
 
Land
  $ 5,773     $ 5,773  
Buildings and improvements
    130,995       86,084  
Equipment
    110,353       75,589  
Office furniture and equipment
    10,558       8,910  
Construction-in-progress
    9,843       16,602  
Property, plant and equipment, gross
  $ 267,522     $ 192,958  
                 
Less: Accumulated depreciation
    (86,764 )     (74,800 )
Property, plant and equipment, net
  $ 180,758     $ 118,158  

Depreciation expense was $15,982,000, $14,911,000 and $12,649,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

Note 8 - Goodwill and Intangible Assets
Goodwill and Intangible Assets Disclosure [Text Block]
8. GOODWILL AND INTANGIBLE ASSETS

Goodwill was $27,574,000 at December 31, 2012 and 2011, and the Company attributes the entire carrying amount of goodwill to the Global Division.  Goodwill is tested at least annually for impairment or whenever events or changes in circumstances have occurred which could have a material adverse effect on the estimated fair value of the reporting unit, and thus indicate a potential impairment of the goodwill carrying value.  The Company concluded the carrying value of goodwill was not impaired as of December 31, 2012 and 2011.

Intangible assets consisted of the following:

(in $000’s)
 
Initial
   
Accumulated
   
Carrying
 
December 31, 2012
 
Cost
   
Amortization
   
Value
 
Amortized intangible assets:
                 
Zomig® product rights
  $ 45,096     $ (17,987 )   $ 27,109  
Tolmar product rights
    19,450       (859 )     18,591  
Other product rights
    2,250       ---       2,250  
Total intangible assets
  $ 66,796     $ (18,846 )   $ 47,950  

(in $000’s)
 
Initial
   
Accumulated
   
Carrying
 
December 31, 2011
 
Cost
   
Amortization
   
Value
 
Amortized intangible assets:
                 
Zomig® product rights
  $ ---     $ ---     $ ---  
Tolmar product rights
    ---       ---       ---  
Other product rights
    2,250       ---       2,250  
Total intangible assets
  $ 2,250     $ ---     $ 2,250  

The Company paid $83,760,000, net to AstraZeneca, comprised of an aggregate of $130,000,000 in quarterly payments made to AstraZeneca less an aggregate of $43,564,000 in transition payments received from AstraZeneca during 2012, for the rights related to the Zomig products® under the AZ Agreement. Accrued liabilities as of December 31, 2012 included a liability of $2,676,000 to AstraZeneca related to this transaction. The $86,436,000 net amount to AstraZeneca was recorded as an intangible asset of $45,096,000, and a prepaid royalty of $41,340,000.  The Zomig® product rights are being amortized on a straight-line basis over a period of 14 months starting in April 2012 and ending upon the expiration of the underlying patent for the tablet, over a period of 11 months starting in July 2012 and ending upon the expiration of the underlying patent for the orally disintegrating tablet, and over a period of 72 months starting in July 2012 for the nasal spray.  Information concerning the AZ Agreement can be found in “Note 12 –Alliance and Collaboration Agreements.”

In June 2012, the Company entered into a Development, Supply and Distribution Agreement (the “Tolmar Agreement”) with TOLMAR, Inc. (“Tolmar”).  Under the terms of the Tolmar Agreement, Tolmar granted to the Company an exclusive license to commercialize up to 11 generic topical prescription drug products, including nine currently approved products and two products pending approval at the FDA, in the United States and its territories.  Under the terms of the Tolmar Agreement, Tolmar is responsible for developing and manufacturing the products, and the Company is responsible for the marketing and sale of the products. The Company paid $21,000,000 to Tolmar for the rights to the 11 generic topical prescription drug products and allocated $19,450,000 to an intangible asset, and the remaining $1,550,000 to acquired in-process research and development costs which was immediately charged to expense.  The Tolmar product rights are being amortized over the remaining estimated useful lives of the underlying products, ranging from five to 12 years, starting upon commencement of commercialization activities by the Company during the twelve months ended December 31, 2012.  Information concerning the Tolmar Agreement can be found in “Note 12 –Alliance and Collaboration Agreements.”  Other product rights consist of Abbreviated New Drug Applications (“ANDAs”) which have been filed with the FDA.  The Company will either commence amortization of the cost of these product rights over their estimated useful life upon FDA approval and commercialization, or will expense the related costs immediately upon failure to obtain FDA approval.  Amortization expense is included as a component of cost of revenues on the consolidated statement of operations and was $18,846,000 for the year ended December 31, 2012, respectively.

The following schedule shows the expected amortization of the Zomig® and Tolmar product rights for the next five years and thereafter:

(in $000s)
 
Amortization
Expense
 
2013
  $ 14,733  
2014
    4,851  
2015
    4,851  
2016
    4,851  
2017
    4,776  
Thereafter
    11,638  
Totals
  $ 45,700  

Note 9 - Accrued Expenses
Accrued Liabilities Disclosure [Text Block]
9. ACCRUED EXPENSES

The following table sets forth the Company’s accrued expenses:

(in $000’s)
 
December 31,
2012
   
December 31,
2011
 
Payroll-related expenses
  $ 22,553     $ 16,975  
Product returns
    23,440       24,101  
Government rebates
    33,794       17,479  
Legal and professional fees
    3,993       5,071  
Clinical trial costs
    1,610       974  
Income taxes payable
    1,541       1,126  
Physician detailing sales force fees
    1,471       1,655  
Other
    4,340       2,735  
Total accrued expenses
  $ 92,742     $ 70,116  

Product Returns

The Company maintains a return policy to allow customers to return product within specified guidelines.  The Company estimates a provision for product returns as a percentage of gross sales based upon historical experience for sales made through its Global Products and Impax Products sales channels.  Sales of product under the Private Label, Rx Partner and OTC Partner alliance and collaboration agreements are not subject to returns.  A roll forward of the return reserve activity for the years ended December 31, 2012, 2011 and 2010 is as follows:

(in $000's)
 
December 31,
   
December 31,
   
December 31,
 
Returns Reserve
 
2012
   
2011
   
2010
 
                   
Beginning balance
  $ 24,101     $ 33,755     $ 22,114  
Provision related to sales recorded in the period
    3,003       688       15,821  
Credits issued during the period
    (3,664 )     (10,342 )     (4,180 )
Ending balance
  $ 23,440     $ 24,101     $ 33,755  

Note 10 - Income Taxes
Income Tax Disclosure [Text Block]
10. INCOME TAXES

The Company is subject to federal, state and local income taxes in the United States, and income taxes in Taiwan, R.O.C.  The provision for income taxes is comprised of the following:

   
For the Years Ended December 31,
 
(in $000’s)
 
2012
   
2011
   
2010
 
Current:
                 
Federal taxes
  $ 49,636     $ 23,500     $ 96,560  
State taxes
    1,721       1,034       10,471  
Foreign taxes
    453       1,154       0  
Total current tax expense
    51,810       25,688       107,031  
                         
Deferred:
                       
Federal taxes
  $ (21,650 )   $ 5,646     $ 27,138  
State taxes
    (2,537 )     592       9,140  
Foreign taxes
    (185 )     690       212  
Total deferred tax (benefit) expense
    (24,372 )     6,928       36,490  
                         
Provision for income taxes
  $ 27,438     $ 32,616     $ 143,521  

A reconciliation of the difference between the tax provision at the federal statutory rate and actual income taxes on income before income taxes, which includes federal, state, and other income taxes, is as follows:

   
For the Years Ended December 31,
 
(in $000’s)
 
2012
   
2011
   
2010
 
Income before income taxes
  $ 83,311           $ 98,111           $ 393,939        
Tax provision at the federal statutory rate
    29,159       35.0 %     34,339       35.0 %     137,879       35.0 %
                                                 
Increase (decrease) in tax rate resulting from:
                                               
Tax rate differential and permanent items on foreign income
    (1,259 )     (1.5 )%     185       0.2 %     937       0.2 %
State income taxes, net of federal benefit
    346       0.4 %     2,113       2.1 %     13,780       3.5 %
Federal research and development credits
    ---       - %     (2,100 )     (2.2 )%     (2,700 )     (0.7 )%
Share-based compensation
    326       0.4 %     92       0.1 %     979       0.3 %
Executive compensation
    825       1.0 %     586       0.6 %     560       0.1 %
Domestic manufacturing deduction
    (2,010 )     (2.4 )%     (2,187 )     (2.2 )%     (6,563 )     (1.7 )%
Other permanent book/tax differences
    (185 )     (0.2 )%     (119 )     (0.1 )%     (407 )     (0.1 )%
Provision for uncertain tax positions
    801       0.9 %     178       0.2 %     280       0.1 %
Revision of prior years’ estimates
    (392 )     (0.5 )%     (309 )     (0.3 )%     (1,203 )     (0.3 )%
Other, net
    (173 )     (0.2 )%     (162 )     (0.2 )%     (21 )     -- %
Provision for income taxes
  $ 27,438       32.9 %   $ 32,616       33.2 %   $ 143,521       36.4 %

Deferred income taxes result from temporary differences between the financial statement carrying values and the tax bases of the Company’s assets and liabilities.  Deferred tax assets principally result from deferred revenue related to certain of the Company’s alliance and collaboration agreements (see “Note 12 – Alliance and Collaboration Agreements” below for a discussion of the Company's alliance and collaboration agreements), certain accruals and reserves currently not deductible for tax purposes, acquired product rights and intangibles, capitalized legal and share based compensation expense.  Deferred tax liabilities principally result from the use of accelerated depreciation methods for income tax purposes.  The components of the Company’s deferred tax assets and liabilities are as follows:

   
December 31,
 
(in $000’s)
 
2012
   
2011
 
Deferred tax assets:
           
Deferred revenues
  $ 4,545     $ 13,225  
Accrued expenses
    38,839       27,382  
Inventory reserves
    2,630       2,439  
Net operating loss carryforwards
    149       372  
Depreciation and amortization
    428       340  
Acquired product rights and intangibles
    7,284       --  
Capitalized legal fees
    6,981       --  
R&D credit carryforwards
    2,062       --  
Share based compensation expense
    3,446       1,964  
Other
    850       959  
Deferred tax assets
  $ 67,214     $ 46,681  
                 
Deferred tax liabilities:
               
Tax depreciation and amortization in excess of book amounts
  $ 3,544     $ 4,697  
Deferred manufacturing costs
    80       3,872  
Other
    1,810       700  
Deferred tax liabilities
  $ 5,434     $ 9,269  
                 
Deferred tax assets, net
  $ 61,780     $ 37,412  

The breakdown between current and long-term deferred tax assets and tax liabilities is as follows:

   
December 31,
 
(in $000’s)
 
2012
   
2011
 
Current deferred tax assets
  $ 44,196     $ 39,104  
Current deferred tax liabilities
    (1,810 )     (1,251 )
Current deferred tax assets, net
    42,386       37,853  
                 
Non-current deferred tax assets
    23,018       7,577  
Non-current deferred tax liabilities
    (3,624 )     (8,018 )
Non-current deferred tax assets (liabilities), net
    19,394       (441 )
                 
Deferred tax assets, net
  $ 61,780     $ 37,412  

Certain current and non-current deferred tax assets and liabilities are included in Other assets, Accounts Payable and Other liabilities on the consolidated balance sheet.

There were state net operating loss (NOL) carryforwards of $2,288,000 and $5,228,000 as of December 31, 2012 and 2011, respectively, with a twenty year carryforward period as of December 31, 2012, and utilization expiration dates occurring in 2023, summarized as follows:

(in $000’s)
     
Year
 
Amount
 
       
2023
  $ 2,288  

FASB ASC 740 provides for a single comprehensive model to address uncertain tax positions by establishing the minimum recognition threshold and a measurement attribute for the financial statement impact of tax positions taken or expected to be taken on an entity's income tax returns.  A reconciliation of the accrued reserve for uncertain tax positions is as follows:

(in $000’s)
     
Balance at January 1, 2011
  $ 1,580  
Increase based on prior year tax positions
    24  
Increase based on current year tax positions
    154  
Interest expense
    84  
Balance at December 31, 2011
  $ 1,842  
Increase based on prior year tax positions
    937  
Increase based on current year tax positions
    216  
Settlements
    (882 )
Interest expense
    534  
Balance at December 31, 2012
  $ 2,647  

The Company has recognized a tax provision for uncertain tax positions related to federal and state research and development tax credits, inter-company transfer pricing, state taxes on Federal RAR adjustments and state nexus issues.  The Company recognizes interest and penalties related to income tax matters as a part of total interest expense and other expense, respectively.  At December 31, 2012, the Company had $303,000 of accrued interest expense related to its accrued reserve for uncertain tax positions. The Company did not accrue penalties as of December 31, 2012 as it has taken the appropriate steps to mitigate exposure to penalties related to its uncertain tax positions.  The Company settled its 2008 and 2009 audit by the United States Internal Revenue Service during 2012 and is currently not under audit for its federal income tax. The Company is currently under audit by the State of California Franchise Tax Board for the tax years ended December 31, 2009, 2008, 2007. The years 2006 and 2005 were settled with the State of California Franchise Tax Board during 2012. An inter-company transfer pricing issue of $935,000 is projected to be settled within the next 12 months as the Taiwan tax authorities have recently contacted the Company.

No provision has been made for U.S. federal deferred income taxes on accumulated earnings on foreign subsidiaries since it is the intention of management to indefinitely reinvest the undistributed earnings in the foreign subsidiary.

Note 11 - Revolving Line of Credit
Line Of Credit Facilities [Text Block]
11. REVOLVING LINE OF CREDIT

The Company has a Credit Agreement, as amended (the “Credit Agreement”) with Wells Fargo Bank, N. A., as a lender and as administrative agent (the “Administrative Agent”).  The Credit Agreement provides the Company with a revolving line of credit in the aggregate principal amount of up to $50,000,000 (the “Revolving Credit Facility”).  Under the Revolving Credit Facility, up to $10,000,000 is available for letters of credit, the outstanding face amounts of which reduce availability under the Revolving Credit Facility on a dollar for dollar basis.  Proceeds under the Credit Agreement may be used for working capital, general corporate and other lawful purposes.  The Company has not yet borrowed any amounts under the Revolving Credit Facility.

 
·
The Company’s borrowings under the Credit Agreement are secured by substantially all of the personal property assets of the Company pursuant to a Security Agreement (the “Security Agreement”) entered into by the Company and the Administrative Agent.  As further security, the Company also pledged to the Administrative Agent, 65% of the Company’s equity interest in Impax Laboratories (Taiwan), Inc., all of the Company’s equity interests in the Company’s wholly owned domestic subsidiaries and must similarly pledge all or a portion of the Company’s equity interest in future subsidiaries.  Under the Credit Agreement, among other things:  The outstanding principal amount of all revolving credit loans, together with accrued and unpaid interest thereon, will be due and payable on the maturity date, which will occur four years following the February 11, 2011 closing date.

 
·
Borrowings under the Revolving Credit Facility will bear interest, at the Company’s option, at either an Alternate Base Rate (as defined in the Credit Agreement) plus the applicable margin in effect from time to time ranging from 0.5% to 1.5%, or a LIBOR Rate (as defined in the Credit Agreement) plus the applicable margin in effect from time to time ranging from 1.5% to 2.5%.  The Company is also required to pay an unused commitment fee ranging from 0.25% to 0.45% per annum based on the daily average undrawn portion of the Revolving Credit Facility.  The applicable margin described above and the unused commitment fee in effect at any given time will be determined based on the Company’s Total Net Leverage Ratio (as defined in the Credit Agreement), which is based upon the Company’s consolidated total debt, net of unrestricted cash in excess of $100 million, compared to Consolidated EBITDA (as defined in the Credit Agreement) for the immediately preceding four quarters.

 
·
The Company may prepay any outstanding loan under the Revolving Credit Facility without premium or penalty.

 
·
The Company is required under the Credit Agreement and the Security Agreement to comply with a number of affirmative, negative and financial covenants.  Among other things, these covenants (i) require the Company to provide periodic reports, notices of material events and information regarding collateral, (ii) restrict the Company’s ability, subject to certain exceptions and baskets, to incur additional indebtedness, grant liens on assets, undergo fundamental changes, change the nature of its business, make investments, undertake acquisitions, sell assets, make restricted payments (including the ability to pay dividends and repurchase stock) or engage in affiliate transactions, and (iii) require the Company to maintain a Total Net Leverage Ratio (which is, generally, our total funded debt, net of unrestricted cash in excess of $100 million, over our EBITDA for the preceding four quarters) of less than 3.75 to 1.00, a Senior Secured Leverage Ratio (which is, generally, our total senior secured debt over our EBITDA for the preceding four quarters) of less than 2.50 to 1.00 and a Fixed Charge Coverage Ratio (which is, generally, our EBITDA for the preceding four quarters over the sum of cash interest expense, cash tax payments, scheduled funded debt payments and capital expenditures during such four quarter period, subject to certain specified exceptions) of at least 2.00 to 1.00 (with each such ratio as more particularly defined as set forth in the Credit Agreement).  As of December 31, 2012, the Company was in compliance with the various covenants contained in the Credit Agreement and the Security Agreement.

 
·
The Credit Agreement contains customary events of default (subject to customary grace periods, cure rights and materiality thresholds), including, among others, failure to pay principal, interest or fees, violation of covenants, material inaccuracy of representations and warranties, cross-default and cross-acceleration of material indebtedness and other obligations, certain bankruptcy and insolvency events, certain judgments, certain events related to the Employee Retirement Income Security Act of 1974, as amended, and a change of control.

 
·
Following an event of default under the Credit Agreement, the Administrative Agent would be entitled to take various actions, including the acceleration of amounts due under the Credit Agreement and seek other remedies that may be taken by secured creditors.

During the years ended December 31, 2012, 2011 and 2010, unused line fees incurred under the Credit Agreement and our former credit agreement, which we terminated in February 2011, were $95,000, $144,000 and $177,000, respectively.

Note 12 - Alliance and Collaborative Agreements
Collaborative Arrangement Disclosure [Text Block]
12. ALLIANCE AND COLLABORATION AGREEMENTS

The Company has entered into several alliance, collaboration, license and distribution agreements, and similar agreements with respect to certain of its products and services, with unrelated third-party pharmaceutical companies.  The  statement of operations includes revenue recognized under agreements the Company has entered into to develop marketing and/or distribution relationships with its partners to fully leverage its technology platform, revenue recognized under development agreements which generally obligate the Company to provide research and development services over multiple periods, and revenue recognized under a promotional services agreement which obligates the Company to provide physician detailing sales calls services to promote its promotional partner’s branded drug products over multiple periods.

The Company’s alliance and collaboration agreements often include milestones and provide for milestone payments upon achievement of these milestones. Generally, the milestone events contained in the Company’s alliance and collaboration agreements coincide with the progression of the Company’s products and technologies from pre-commercialization to commercialization.

The Company groups pre-commercialization milestones in its alliance and collaboration agreements into clinical and regulatory categories, each of which may include the following types of events:

Clinical Milestone Events:

 
·
Designation of a development candidate.  Following the designation of a development candidate, generally, IND-enabling animal studies for a new development candidate take 12 to 18 months to complete.

 
·
Initiation of a Phase I clinical trial.  Generally, Phase I clinical trials take one to two years to complete.

 
·
Initiation or completion of a Phase II clinical trial.  Generally, Phase II clinical trials take one to three years to complete.

 
·
Initiation or completion of a Phase III clinical trial.  Generally, Phase III clinical trials take two to four years to complete.

 
·
Completion of a bioequivalence study.  Generally, bioequivalence studies take three months to one year to complete.

Regulatory Milestone Events:

 
·
Filing or acceptance of regulatory applications for marketing approval such as a New Drug Application in the United States or Marketing Authorization Application in Europe.  Generally, it takes six to twelve months to prepare and submit regulatory filings and approximately two months for a regulatory filing to be accepted for substantive review.

 
·
Marketing approval in a major market, such as the United States or Europe. Generally it takes one to three years after an application is submitted to obtain approval from the applicable regulatory agency.

 
·
Marketing approval in a major market, such as the United States or Europe for a new indication of an already-approved product.  Generally it takes one to three years after an application for a new indication is submitted to obtain approval from the applicable regulatory agency.

Commercialization milestones in the Company’s alliance and collaboration agreements may include the following types of events:

 
·
First commercial sale in a particular market, such as in the United States or Europe.

 
·
Product sales in excess of a pre-specified threshold, such as annual sales exceeding $100 million.  The amount of time to achieve this type of milestone depends on several factors including but not limited to the dollar amount of the threshold, the pricing of the product and the pace at which customers begin using the product.

License and Distribution Agreement with Shire

In January 2006, the Company entered into a License and Distribution Agreement with an affiliate of Shire Laboratories, Inc., which was subsequently amended (“Prior Shire Agreement”), under which the Company received a non-exclusive license to market and sell an authorized generic of Shire’s Adderall XR® product (“AG Product”) subject to certain conditions, but in any event by no later than January 1, 2010.  The Company commenced sales of the AG Product in October 2009. On February 7, 2013, the Company entered into an Amended and Restated License and Distribution Agreement with Shire (the “Amended and Restated Shire Agreement”), which amended and restated the Prior Shire Agreement.  The Amended and Restated Shire Agreement was entered into by the parties in connection with the settlement of the Company’s pending litigation with Shire relating to Shire’s supply of the AG Product to the Company under the Prior Shire Agreement.  For more information about the litigation with Shire, see “Note 19 –Legal and Regulatory Matters.”  The Amended and Restated Shire Agreement provides for Shire to supply the AG Product and for the Company to market and sell the AG Product subject to the terms and conditions thereof until the earlier of (i) the first commercial sale of the Company’s generic equivalent product to Adderall XR® and (ii) September 30, 2014 (the “Supply Term”), subject to certain continuing obligations of the parties upon expiration or early termination of the Supply Term, including Shire’s obligation to deliver AG Products still owed to the Company as of the end of the Supply Term.  The Company is required to pay a profit share to Shire on sales of the AG Product, of which the Company owed a profit share payable to Shire of $107,303,000, $107,145,000 and $100,611,000 on sales of the AG Product during the years ended December 31, 2012, 2011 and 2010, respectively, with a corresponding charge included in the cost of revenues line in the consolidated statement of operations. At the end of the Supply Term, the Company will be permitted to sell any AG Products in our inventory or owed to the Company by Shire under the Amended and Restated Shire Agreement until all such products are sold and the Company will continue to pay a profit share to Shire on such sales.

Development, Supply and Distribution Agreement with TOLMAR, Inc.

In June 2012, the Company entered into the Tolmar Agreement with Tolmar.  Under the terms of the Tolmar Agreement, Tolmar granted to the Company an exclusive license to commercialize up to 11 generic topical prescription drug products, including nine currently approved products and two products pending approval at the FDA, in the United States and its territories.  Under the terms of the Tolmar Agreement, Tolmar is responsible for developing and manufacturing the products, and the Company is responsible for marketing and sale of the products.  The Company is required to pay a profit share to Tolmar on sales of each product commercialized pursuant to the terms of the Tolmar Agreement. The Company paid Tolmar a $21,000,000 upfront payment upon signing of the agreement and a $1,000,000 milestone payment in the year ended December 31, 2012.  The Company has the potential to pay up to $24,000,000 in additional contingent milestone payments if certain commercialization and regulatory events occur.  The upfront payment for the Tolmar product rights has been allocated to the underlying topical products based upon the relative fair value of each product and will be amortized over the remaining estimated useful life of each underlying product, ranging from five to 12 years, starting upon commencement of commercialization activities by the Company during the second half of 2012.  The amortization of the Tolmar product rights has been included as a component of cost of revenues on the consolidated statement of operations.  The Company initially allocated $1,550,000 of the upfront payment to two products which are still in development and has recorded such amount as in-process research and development expense in its results of operations for the year ended December 31, 2012. The Company similarly recorded the $1,000,000 milestone paid in the year ended December 31, 2012 as a research and development expense. Contingent milestone payments will be initially recognized in the period the triggering event occurs.  Milestone payments which are contingent upon commercialization events will be accounted for as an additional cost of acquiring the product license rights.  Milestone payments which are contingent upon regulatory approval events will be capitalized and amortized over the remaining estimated useful life of the approved product.

Strategic Alliance Agreement with Teva

The Company entered into a Strategic Alliance Agreement with Teva Pharmaceuticals Curacao N.V., a subsidiary of Teva Pharmaceutical Industries Limited, in June 2001 (“Teva Agreement”). The Teva Agreement commits the Company to develop and manufacture, and Teva to distribute, a specified number controlled release generic pharmaceutical products (“generic products”), each for a 10-year period.  The Company is required to develop the products, obtain FDA approval to market the products, and manufacture the products for Teva. The revenue the Company earns from the sale of product under the Teva Agreement consists of Teva’s reimbursement of the Company’s manufacturing costs plus a profit share on Teva’s sales of the product to its customers.  The Company invoices Teva for the manufacturing costs it ships product to Teva and payment is due within 30 days.  Teva has the right to determine all terms and conditions of the product sales to its customers.  Within 30 days of the end of each calendar quarter, Teva is required to provide the Company with a report of its net sales and profits during the quarter and to pay the Company its share of the profits resulting from those sales. Net sales are Teva’s gross sales less discounts, rebates, chargebacks, returns, and other adjustments, all of which are based upon fixed percentages, except chargebacks, which are estimated by Teva and subject to a true-up reconciliation. The Company identified the following deliverables under the Teva Agreement: (i) the manufacture and delivery of generic products; (ii) the provision of research and development activities (including regulatory services) related to each product; and (iii) market exclusivity associated with the products.

In July 2010, the Teva Agreement was amended to terminate the provisions of the Teva Agreement with respect to the Omeprazole (generic to Prilosec®) 10mg, 20mg and 40mg products.  Additionally, in exchange for the return of product rights, the Company agreed to pay to Teva a profit share on future sales of the fexofenadine HCI/psuedoephedrine (generic to Allegra-D®) products, if any, but in no event will such profit share payments exceed an aggregate amount of $3,000,000.  As the July 2010 amendment materially modified the Teva Agreement, the Company elected to apply the updated guidance of FASB ASC 605-25 Multiple Element Arrangements (“ASC 605-25”) to the amended Teva Agreement beginning in the three months ended September 30, 2010.  The Company evaluated the deliverables of the amended Teva Agreement under the updated guidance of ASC 605-25 and determined there are two units of accounting, including: a combined unit consisting of research and development activities plus market exclusivity, and the manufacture and delivery of 10 products (i.e. contract manufacturing).  The market exclusivity deliverable does not meet the criteria for separation as it does not have standalone value to Teva.  As the products contemplated by the Teva Agreement were to be developed by the Company, the market exclusivity has no value to Teva without the research and development services needed to complete the products.  The contract manufacturing deliverable has standalone value to Teva as it is able to resell the delivered items (i.e. finished product) to third-parties.

The consideration received by the Company from Teva under the Teva Agreement is contingent upon future performance, as such the Company was unable to allocate any of the consideration received to delivered items, and therefore the Company looked to the underlying services which give rise to the payment of consideration by Teva to determine the appropriate recognition of revenue as follows:

 
-
Research and development related activities (the Combined Unit) – Consideration received as a result of research and development related activities performed under the Teva Agreement is initially deferred and recognized on the straight-line method over the Company’s expected period of performance of the research and development related services, estimated to be from July 2001 to October 2014 (with FDA approval of the ANDA for the final product under the Teva Agreement).

 
-
Manufacture and delivery of the products – Consideration received as a result of the manufacture and delivery of the products under the Teva Agreement is recognized under the Company’s revenue recognition policy applicable to its Global products.

 
-
Profit share – The Company recognizes profit share, if any, as current period revenue when earned.

The Company applied the updated guidance of ASC 605-25 to the Teva Agreement on a prospective basis beginning in the quarter ended September 30, 2010.  In the year ended December 31, 2010, the application of the updated guidance of ASC 605-25 had the effect of increasing Rx Partner revenue by $196,440,000, and increasing cost of revenues by $95,426,000, and correspondingly, basic earnings per share increased by approximately $1.03.  The increase in Rx Partner revenue as a result of applying the updated guidance of ASC 605-25 in the year ended December 31, 2010, represents the recognition of previously deferred revenue which would otherwise have been recognized, under the previous accounting standards, over the remaining life of the Teva Agreement, using a modified proportional performance method.  Under the previous accounting standards, Rx Partner revenue would have been $22,255,000, cost of revenues would have been $244,964,000, and basic earnings per share would have been $2.97 in the year ended December 31, 2010, please refer to "Note 21 –Supplementary Financial Information" for a summary of this information on a quarterly basis.

The following tables show the additions to and deductions from the deferred revenue and deferred product manufacturing costs under the Teva Agreement:

   
For the Years Ended December 31,
   
Inception
 
(in $000’s)
                   
Through
 
Deferred revenue
 
2012
   
2011
   
2010
   
Dec 31, 2009
 
Beginning balance
  $ 3,705     $ 4,410     $ 202,032     $ ---  
                                 
Additions
    ---       551       10,096       379,196  
                                 
Less:
                               
Amounts recognized
    (1,309 )     (1,256 )     (11,278 )     (177,164 )
Accounting adjustment
    ---       ---       (196,440 )     ---  
Ending deferred revenue
  $ 2,396     $ 3,705     $ 4,410     $ 202,032  

(in $000’s)
 
For the Years Ended December 31,
   
Inception
Through
 
Deferred product manufacturing costs
 
2012
   
2011
   
2010
   
Dec 31, 2009
 
Beginning balance
  $ ---     $ ---     $ 94,040     $ ---  
                                 
Additions
    ---       ---       7,416       175,565  
                                 
Less:
                               
Amount recognized
    ---       ---       (6,030 )     (81,525 )
Accounting adjustment
    ---       ---       (95,426 )     ---  
Ending deferred product manufacturing costs
  $ ---     $ ---     $ ---     $ 94,040  

The following schedule shows the expected recognition of deferred revenue, for transactions recorded through December 31, 2012, for the next five years and thereafter under the Teva Agreement:

(in $000s)
 
Deferred Revenue
Recognition
 
2013
  $ 1,309  
2014
    1,087  
2015
    ---  
2016
    ---  
2017
    ---  
Thereafter
    ---  
Totals
  $ 2,396  

OTC Partner Alliance Agreement

In June 2002, the Company entered into a Development, License and Supply Agreement with Pfizer Inc. (formerly Wyeth), for a term of approximately 15 years, relating to the Company’s Loratadine and Pseudoephedrine Sulfate 5 mg/120 mg 12-hour Extended Release Tablets and Loratadine and Pseudoephedrine Sulfate 10 mg/240 mg 24-hour Extended Release Tablets for the OTC market. The Company previously developed the products, and is currently only responsible for manufacturing the products, and Pfizer is responsible for marketing and sale.  The agreement included payments to the Company upon achievement of development milestones, as well as royalties paid to the Company by Pfizer on its sales of the product.  Pfizer launched this product in May 2003 as Alavert® D-12 Hour. In February 2005, the agreement was partially cancelled with respect to the 24-hour Extended Release Product due to lower than planned sales volume.  The agreement with Pfizer is no longer a core area of the Company’s business, and the over-the-counter pharmaceutical products the Company sells to Pfizer under the Development, License and Supply Agreement are older products which are only sold to Pfizer, and which are sold at a loss.  As noted above, the manufacturing of the products is the Company’s only continuing obligation under this agreement with Pfizer.  In order to avoid deferring the losses incurred upon shipment of these products to Pfizer, Inc., the Company recognizes revenue, and the associated manufacturing costs, at the time title and risk of loss passes to Pfizer which is generally when the product is shipped.  The Company recognizes profit share revenue in the period earned.

The following table shows the additions to and deductions from deferred revenue and deferred product manufacturing costs under the OTC Agreements:

(in $000’s)
 
For the Years Ended December 31,
   
Inception
Through
 
Deferred revenue
 
2012
   
2011
   
2010
   
Dec 31, 2009
 
Beginning balance
  $ 9,683     $ 11,382     $ 16,162     $ ---  
                                 
Additions
    1,528       2,018       4,108       93,904  
Less amounts recognized
    (11,211 )     (3,717 )     (8,888 )     (77,742 )
Ending deferred revenue
  $ ---     $ 9,683     $ 11,382     $ 16,162  

(in $000’s)
 
For the Years Ended December 31,
   
Inception
Through
 
Deferred product manufacturing costs
 
2012
   
2011
   
2010
   
Dec 31, 2009
 
Beginning balance
  $ 8,846     $ 10,235     $ 14,203     $ ---  
                                 
Additions
    2,638       1,721       3,223       77,870  
Less: amount recognized
    (11,484 )     (3,110 )     (7,191 )     (63,667 )
Ending deferred product manufacturing costs
  $ ---     $ 8,846     $ 10,235     $ 14,203  

Agreements with Valeant Pharmaceuticals International, Inc.

In November 2008, the Company and Valeant Pharmaceuticals International, Inc., formerly Medicis Pharmaceutical Corporation (“Valeant”), entered into a Joint Development Agreement and a License and Settlement Agreement (“Joint Development Agreement”).

Joint Development Agreement

The Joint Development Agreement provides for the Company and Valeant to collaborate in the development of a total of five dermatology products, including four of the Company’s generic products and one branded advanced form of Valeant’s SOLODYN® product.  Under the provisions of the Joint Development Agreement the Company received a $40,000,000 upfront payment, paid by Valeant in December 2008.  The Company has also received an aggregate of $15,000,000 in milestone payments composed of two $5,000,000 milestone payments, paid by Valeant in March 2009 and September 2009, a $2,000,000 milestone payment paid by Valeant in December 2009, and a $3,000,000 milestone payment paid by Valeant in March 2011.  The Company has the potential to receive up to an additional $8,000,000 of contingent regulatory milestone payments each of which the Company believes to be substantive, as well as the potential to receive royalty payments from sales, if any, by Valeant of its advanced form SOLODYN® brand product.  Finally, to the extent the Company commercializes any of its four generic dermatology products covered by the Joint Development Agreement, the Company will pay to Valeant a gross profit share on sales of such products.  The Company began selling one of the four generic dermatology products during the year ended December 31, 2011.

The Joint Development Agreement results in three items of revenue for the Company, as follows:

1.           Research & Development Services

Revenue received from the provision of research and development services including the $40,000,000 upfront payment and the $12,000,000 of milestone payments received prior to January 1, 2011, have been deferred and are being recognized on a straight-line basis over the expected period of performance of the research and development services.  During the year ended December 31, 2012, the Company extended the revenue recognition period for the Joint Development Agreement from the previous recognition period ending in November 2012 to November 2013, due to changes in the estimated timing of completion of certain research and development activities. This change was made on a prospective basis, and resulted in a reduced periodic amount of revenue recognized in current and future periods. Revenue from the remaining $8,000,000 of contingent milestone payments, including the $3,000,000 received from Valeant in March 2011, will be recognized using the Milestone Method of accounting.  Deferred revenue is recorded as a liability captioned “Deferred revenue.”  Revenue recognized under the Joint Development Agreement is included in “Note 21 –Supplementary Financial Information,” in the line item captioned "Research Partner", net. The Company determined the straight-line method better aligns revenue recognition with performance as the level of research and development services delivered under the Joint Development Agreement are expected to be provided on a relatively constant basis over the period of performance.

2.           Royalty Fees Earned — Valeant’s Sale of Advanced Form SOLODYN® (Brand) Product

Under the Joint Development Agreement, the Company granted Valeant a license for the advanced form of the SOLODYN® product, with the Company receiving royalty fee income under such license for a period ending eight years after the first commercial sale of the advanced form SOLODYN® product. Commercial sales of the new SOLODYN® product, if any, are expected to commence upon FDA approval of Valeant’s NDA.  The royalty fee income, if any, from the new SOLODYN® product, will be recognized by the Company as current period revenue when earned.

3.           Accounting for Sales of the Company’s Four Generic Dermatology Products

Upon FDA approval of the Company’s ANDA for each of the four generic products covered by the Joint Development Agreement, the Company will have the right (but not the obligation) to begin manufacture and sale of its four generic dermatology products. The Company sells its manufactured generic products to all Global Division customers in the ordinary course of business through its Global Product sales channel. The Company accounts for the sale, if any, of the generic products covered by the Joint Development Agreement as current period revenue according to the Company’s revenue recognition policy applicable to its Global products. To the extent the Company sells any of the four generic dermatology products covered by the Joint Development Agreement, the Company pays Valeant a gross profit share, with such profit share payments accounted for as a current period cost of goods sold.

The following table shows the additions to and deductions from deferred revenue under the Joint Development Agreement with Valeant:

(in $000’s)
 
Years Ended December 31,
   
Inception
Through
 
Deferred revenue
 
2012
   
2011
   
2010
   
Dec 31, 2009
 
Beginning balance
  $ 12,410     $ 25,948     $ 39,487     $ ---  
                                 
Additions
    ---       ---       ---       52,000  
Less amount recognized
    (8,760 )     (13,538 )     (13,539 )     (12,513 )
Ending deferred revenue
  $ 3,650     $ 12,410     $ 25,948     $ 39,487  

The following schedule shows the expected recognition of deferred revenue, for transactions recorded through December 31, 2012, for the next five years and thereafter under the Joint Development Agreement with Valeant:

(in $000s)
 
Deferred
Revenue
Recognition
 
2013
  $ 3,650  
2014
    ---  
2015
    ---  
2016
    ---  
2017
    ---  
Thereafter
    ---  
Total
  $ 3,650  

Development and Co-Promotion Agreement with Endo Pharmaceuticals Inc.

In June 2010, the Company and Endo Pharmaceuticals, Inc. ("Endo") entered into a Development and Co-Promotion Agreement (“Endo Agreement”) under which the Company and Endo have agreed to collaborate in the development and commercialization of a next-generation advanced form of the Company’s lead branded product candidate ("Endo Agreement Product").  Under the provisions of the Endo Agreement, in June 2010, Endo paid to the Company a $10,000,000 upfront payment.  The Company has the potential to receive up to an additional $30,000,000 of contingent milestone payments which includes $15,000,000 contingent upon the achievement of clinical events, $5,000,000 contingent upon the achievement of regulatory events, and $10,000,000 upon the achievement of commercialization events.  The Company believes all milestones under the Endo Agreement are substantive.  Upon commercialization of the Endo Agreement Product in the United States, Endo will have the right to co-promote such product to non-neurologists, which will require the Company to pay Endo a co-promotion service fee of up to 100% of the gross profits attributable to prescriptions for the Endo Agreement Product which are written by the non-neurologists.

The Company is recognizing the $10,000,000 upfront payment as revenue on a straight-line basis over a period of 91 months, which is the estimated expected period of performance of research and development activities under the Endo Agreement, commencing with the June 2010 effective date of the Endo Agreement and ending in December 2017, the estimated date of FDA approval of the Company's NDA.  The FDA approval of the Endo Agreement Product NDA represents the end of the Company’s expected period of performance, as the Company will have no further contractual obligation to perform research and development activities under the Endo Agreement, and therefore the earnings process will be completed. Deferred revenue is recorded as a liability captioned “Deferred revenue” on the consolidated balance sheet and deferred revenue under the Endo Agreement was $6,593,000 as of December 31, 2012.  Revenue recognized under the Endo Agreement is reported on the consolidated statement of operations, in the line item captioned Research Partner. The Company determined the straight-line method aligns revenue recognition with performance as the level of research and development activities performed under the Endo Agreement are expected to be performed on a ratable basis over the Company’s estimated expected period of performance.  Upon FDA approval of the Company’s Endo Agreement Product NDA, the Company will have the right (but not the obligation) to begin manufacture and sale of such product. The Company will sell its manufactured branded product to customers in the ordinary course of business through its Impax Pharmaceuticals Division. The Company will account for any sale of the product covered by the Endo Agreement as current period revenue. The co-promotion service fee paid to Endo, as described above, if any, will be accounted for as a current period selling expense as incurred.

The Company and Endo also entered into a Settlement and License Agreement in June 2010 (the “Endo Settlement Agreement”) pursuant to which Endo agreed to make a payment to the Company should Prescription Sales of Opana® ER (as defined in the Endo Settlement Agreement) fall below a predetermined contractual threshold in the quarter immediately prior to the Company launching a generic version of Opana® ER.

License, Development and Commercialization Agreement with Glaxo Group Limited

In December 2010, the Company entered into a License, Development and Commercialization Agreement with Glaxo Group Limited (“GSK”).  Under the terms of the agreement with GSK, GSK received an exclusive license to develop and commercialize IPX066 (brand name RYTARY™ in the United States) throughout the world, except in the U.S. and Taiwan, and certain follow-on products at the option of GSK.  GSK paid an $11,500,000 upfront payment in December 2010, and the Company has the potential to receive up to $169,000,000 of contingent milestone payments which includes $10,000,000 contingent upon the achievement of clinical events, $29,000,000 contingent upon the achievement of regulatory events, and $130,000,000 contingent upon the achievement of commercialization events.  The Company believes all milestones under the agreement with GSK are substantive. The upfront payment has been deferred and was recognized as revenue on a straight-line basis over the Company’s expected period of performance to provide research and development services which ended on December 31, 2012. The Company will also receive royalty payments on any sales of IPX066 by GSK. The Company and GSK will generally each bear its own development costs associated with its activities under the License, Development and Commercialization Agreement, except that certain development costs, including with respect to follow on products, will be shared, as set forth in the agreement.  The agreement with GSK also gives GSK the option to obtain development and commercialization rights to a future product for a one-time payment to the Company of $10,000,000. The License, Development and Commercialization Agreement will continue until GSK no longer has any royalty payment obligations to the Company, or if the agreement is terminated earlier in accordance with its terms. The License, Development and Commercialization Agreement may be terminated by GSK for convenience upon 90 days prior written notice, and may also be terminated under certain other circumstances, including material breach, as set forth in the agreement.

Distribution, License, Development and Supply Agreement with AstraZeneca UK Limited

In January 2012, the Company entered into the AZ Agreement with AstraZeneca.  Under the terms of the AZ Agreement, AstraZeneca granted to the Company an exclusive license to commercialize the tablet, orally disintegrating tablet and nasal spray formulations of Zomig® (zolmitriptan) products for the treatment of migraine headaches in the United States and in certain U.S. territories, except during an initial transition period when AstraZeneca fulfilled all orders of Zomig® products on the Company’s behalf and AstraZeneca paid to the Company the gross profit on such Zomig® products. The Company is obligated to fulfill certain minimum requirements with respect to the promotion of currently approved Zomig® products as well as other dosage strengths of such products approved by the FDA in the future.  The Company may, but has no obligation to, develop and commercialize additional products containing zolmitriptan and additional indications for Zomig®, subject to certain restrictions as set forth in the AZ Agreement. The Company will be responsible for conducting clinical studies and preparing regulatory filings related to the development of any such additional products and would bear all related costs.  During the term of the AZ Agreement, AstraZeneca will continue to be the holder of the NDA for existing Zomig® products, as well as any future dosage strengths thereof approved by the FDA, and will be responsible for certain regulatory and quality-related activities for such Zomig® products. AstraZeneca will manufacture and supply Zomig® products to the Company and the Company will purchase its requirements of Zomig® products from AstraZeneca until a date determined in the AZ Agreement. Thereafter, AstraZeneca may terminate its supply obligations upon certain advance notice to the Company, in which case the Company would have the right to manufacture or have manufactured its own requirements for the applicable Zomig® product.

Under the terms of the AZ Agreement, AstraZeneca was required to make payments to the Company representing 100% of the gross profit on sales of AstraZeneca-labeled Zomig® products during the specified transition period.  The Company received transition payments from AstraZeneca aggregating $43,564,000 during 2012, and accounted for these payments as a reduction of the $130,000,000 in quarterly payments made to AstraZeneca during 2012.  The Company allocated $45,096,000 of the $86,436,000 net payments made to AstraZeneca to an intangible asset, and the remaining $41,340,000 to prepaid royalty expense related to sales of Impax-labeled Zomig® products during 2012, with such royalty expense included in cost of revenues on the consolidated statement of operations.  Beginning in January 2013, the Company is obligated to pay AstraZeneca tiered royalties on net sales of Zomig® products, depending on brand exclusivity and subject to customary reductions and other terms and conditions set forth in the AZ Agreement.  The Company is also obligated to pay AstraZeneca royalties after a certain specified date based on gross profit from sales of authorized generic versions of the Zomig products subject to certain terms and conditions set forth in the AZ Agreement.

Co-Promotion Agreement with Pfizer

In March 2010, the Company and Pfizer, Inc. (“Pfizer”) entered into the First Amendment to the Co-Promotion Agreement (originally entered into with Wyeth, now a wholly owned subsidiary of Pfizer) (“Pfizer Co-Promotion Agreement”).  The Company’s obligation to provide physician detailing sales calls under the Pfizer Co-Promotion Agreement ended on June 30, 2012.  Prior to such time, the Company had received a fixed fee, effective January 1, 2010, for providing such physician detailing sales calls within a contractually defined range of an aggregate number of physician detailing sales calls rendered, determined on a quarterly basis.  The Company recognized the physician detailing sales force fee revenue as the related services were performed and the performance obligations were met.  The Company recognized $7,070,000, $14,140,000 and $14,073,000 in the years ended December 31, 2012, 2011 and 2010, respectively, with such amounts included in the line item “Promotional Partner” in “Note 21 –Supplementary Financial Information.”

Note 13 - Employee Benefit Plans
Compensation and Employee Benefit Plans [Text Block]
13. EMPLOYEE BENEFIT PLANS

401(k) Defined Contribution Plan

The Company sponsors a 401(k) defined contribution plan covering all employees. Participants are permitted to contribute up to 25% of their eligible annual pre-tax compensation up to established federal limits on aggregate participant contributions. The Company matches 50% of the employee contributions up to a maximum of 3% of employee compensation. Discretionary profit-sharing contributions made by the Company, if any, are determined annually by the Board of Directors. Participants are 100% vested in discretionary profit-sharing and matching contributions made by the Company after three years of service, and are 25% and 50% vested after one and two years of service, respectively. There were $1,428,000, $1,254,000 and $1,162,000 in matching contributions and no discretionary profit-sharing contributions made under this plan for the years ended December 31, 2012, 2011 and 2010, respectively.

Employee Stock Purchase Plan

In February 2001, the Board of Directors of the Company approved the 2001 Non-Qualified Employee Stock Purchase Plan (“ESPP”), with a 500,000 share reservation.  The purpose of the ESPP is to enhance employee interest in the success and progress of the Company by encouraging employee ownership of common stock of the Company.  The ESPP provides the opportunity to purchase the Company’s common stock at a 15% discount to the market price through payroll deductions or lump sum cash investments.  Under the ESPP plan, for the years ended December 31, 2012, 2011 and 2010, the Company sold shares of its common stock to its employees in the amount of 44,731, 47,128 and 79,560, respectively, for net proceeds of $829,000, $887,000 and $1,082,000, respectively.

Deferred Compensation Plan

In February 2002, the Board of Directors of the Company approved the Executive Non-Qualified Deferred Compensation Plan (“ENQDCP”) effective August 15, 2002 covering executive level employees of the Company as designated by the Board of Directors. Participants can defer up to 75% of their base salary and quarterly sales bonus and up to 100% of their annual performance based bonus. The Company matches 50% of employee deferrals up to 10% of base salary and bonus compensation. The maximum total match by the company cannot exceed 5% of total base and bonus compensation. Participants are vested in the employer match contribution at 20% each year, with 100% vesting after five years of employment.  Participants can earn a return on their deferred compensation based on hypothetical investments in investment funds. Changes in the market value of the participant deferrals and earnings thereon are reflected as an adjustment to the liability for deferred compensation with an offset to compensation expense. There were $717,000, $589,000 and $525,000 in matching contributions under the ENQDCP for the years ended December 31, 2012, 2011 and 2010, respectively.

The deferred compensation liability is a non-current liability recorded at the value of the amount owed to the ENQDCP participants, with changes in the value of such amounts recognized as a compensation expense in the consolidated statement of operations. The calculation of the deferred compensation obligation is derived from observable market data by reference to hypothetical investments selected by the participants.  The Company invests in corporate owned life insurance (“COLI”) policies, of which the cash surrender value is included in the line item captioned “Other assets” on the consolidated balance sheet. As of December 31, 2012 and 2011, the Company had a cash surrender value asset of $19,017,000 and $14,547,000, respectively, and a deferred compensation liability of $18,617,000 and $14,535,000, respectively, included in the line item captioned “Other liabilities” on the consolidated balance sheet.

Note 14 - Share-Based Compensation
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
14. SHARE-BASED COMPENSATION

The Company recognizes the grant date fair value of each option and restricted share over its vesting period.  Options and restricted shares granted under the Company’s Amended and Restated 2002 Equity Incentive Plan (“2002 Plan”) generally vest over a three or four year period and options have a term of ten years.

Impax Laboratories, Inc. 1999 Equity Incentive Plan

In October 2000, the Company’s stockholders approved an increase in the aggregate number of shares of common stock to be issued pursuant to the Company’s 1999 Equity Incentive Plan from 2,400,000 to 5,000,000 shares. Under the 1999 Equity Incentive Plan, 115,785, 379,872, and 664,947 stock options were outstanding at December 31, 2012, 2011 and 2010, respectively.

Impax Laboratories, Inc. Amended and Restated 2002 Equity Incentive Plan

Under the Company’s 2002 Plan, the aggregate number of shares of common stock for issuance pursuant to stock option grants and restricted stock awards was increased by the Company’s Board of Directors from 9,800,000 to 11,800,000 during 2010 and was approved by the Company’s stockholders.  Under the 2002 Plan, stock options outstanding were 4,061,436, 4,693,225 and 5,849,729 at December 31, 2012, 2011 and 2010, respectively, and unvested restricted stock awards outstanding were 1,954,570, 1,663,911 and 1,434,759 at December 31, 2012, 2011 and 2010, respectively.

The stock option activity for all of the Company’s equity compensation plans noted above is summarized as follows:

Stock Options
 
Number of Shares
Under Option
   
Weighted-
Average
Exercise
Price
per Share
 
Outstanding at December 31, 2009
    8,229,818     $ 9.87  
Options granted
    405,600       20.22  
Options exercised
    (1,900,549 )     8.62  
Options forfeited
    (220,193 )     11.03  
Outstanding at December 31, 2010
    6,514,676       10.84  
Options granted
    424,000       24.78  
Options exercised
    (1,605,043 )     11.02  
Options forfeited
    (260,536 )     9.73  
Outstanding at December 31, 2011
    5,073,097       11.76  
Options granted
    278,500       20.90  
Options exercised
    (1,060,746 )     11.16  
Options forfeited
    (113,630 )     16.69  
Outstanding at December 31, 2012
    4,177,221       12.72  
                 
Options exercisable at December 31, 2012
    3,143,431     $ 11.30  

As of December 31, 2012, stock options outstanding and exercisable had average remaining contractual lives of 5.86 years and 4.82 years, respectively.  Also, as of December 31, 2012, stock options outstanding and exercisable each had aggregate intrinsic values of $35,370,000 and $30,067,000, respectively.  As of December 31, 2012, the Company estimated 3,698,064 stock options and 1,730,367 restricted shares granted to employees which were vested or expected to vest.

The Company grants restricted stock to certain eligible employees as a component of its long-term incentive compensation program. The restricted stock award grants are made in accordance with the Company’s 2002 Plan. A summary of the non-vested restricted stock awards is as follows:

Restricted Stock Awards
 
Non-Vested
Restricted
Stock
Awards
   
Weighted-
Average
Grant Date
Fair Value
 
Non-vested at December 31, 2009
    1,152,923     $ 7.72  
Granted
    727,556       18.87  
Vested
    (368,825 )     8.61  
Forfeited
    (76,895 )     10.17  
Non-vested at December 31, 2010
    1,434,759       12.93  
Granted
    868,549       20.73  
Vested
    (452,861 )     11.81  
Forfeited
    (186,536 )     13.71  
Non-vested at December 31, 2011
    1,663,911       17.20  
Granted
    1,015,937       23.41  
Vested
    (585,392 )     14.72  
Forfeited
    (139,886 )     19.08  
Non-vested at December 31, 2012
    1,954,570     $ 20.97  

As of December 31, 2012, the Company had 1,161,084 shares available for issuance of either stock options or restricted stock awards, including 875,663 shares from the 2002 Plan, and 285,421 shares from the 1999 Plan.

As of December 31, 2012, the Company had total unrecognized share-based compensation expense, net of estimated forfeitures, of $42,547,000 related to all of its share-based awards, which will be recognized over a weighted average period of 2.30 years.  The intrinsic value of options exercised during the years ended December 31, 2012, 2011 and 2010 was $12,380,000, $19,192,000 and $19,038,000, respectively. The total fair value of restricted shares which vested during the years ended December 31, 2012, 2011 and 2010 was $8,614,000, $5,347,000 and $3,175,000, respectively.

The Company estimated the fair value of each stock option award on the grant date using the Black-Scholes option pricing model with the following assumptions:

   
For the Years Ended December 31,
   
2012
 
2011
 
2010
Volatility (range)
  48.5% - 49.3%   50.7% - 52.7%   55.1% - 56.4%
Volatility (weighted average)
    49.1%       52.3%       55.9%  
Risk-free interest rate (range)
  0.9% - 1.0%   1.5% - 2.3%   1.5% - 3.1%
Risk-free interest rate (weighted average)
    1.0%       2.1%       2.3%  
Dividend yield
    0%       0%       0%  
Expected life (years)
    6.19       6.20       6.21  
Weighted average grant date fair value
    $9.93       $12.85       $11.08  

The Company estimated the fair value of each stock option award on the grant date using the Black-Scholes option pricing model, wherein: expected volatility is based on historical volatility of the Company’s common stock, and of a peer group for the period of time the Company’s common stock was deregistered as described below, over the period commensurate with the expected term of the stock options.  The expected term calculation is based on the “simplified” method described in SAB No. 107, Share-Based Payment and SAB No. 110, Share-Based Payment, as the result of the simplified method provides a reasonable estimate in comparison to actual experience.  The risk-free interest rate is based on the U.S. Treasury yield at the date of grant for an instrument with a maturity that is commensurate with the expected term of the stock options.  The dividend yield of zero is based on the fact that the Company has never paid cash dividends on its common stock, and has no present intention to pay cash dividends.  Options granted under each of the above plans generally vest from three to four years and have a term of ten years.  With limited exceptions, the Company’s shares of common stock traded on the “Pink Sheets” beginning in August 2005 through May 2008.  Subsequent to the Company’s May 2008 deregistration, and before its stock was re-listed in March 2009, the Company granted stock options and restricted stock awards.  As there were no quoted market prices during the period when the Company’s shares of common stock was not publicly traded, the Company engaged a valuation firm to assist with its determination of the fair value of the shares of common stock at the stock option and restricted stock award grant dates.  In this regard, the methods used to arrive at the fair value of the underlying stock price included a regression analysis, along with market multiples and discounted net cash flow analyses.  The resulting fair value on each respective grant date was used to establish the stock option exercise price and the fair value of the restricted stock.

The amount of share-based compensation expense recognized by the Company is as follows:

   
For the Years Ended December 31,
 
(in $000’s)
 
2012
   
2011
   
2010
 
Cost of revenues
  $ 2,405     $ 1,917     $ 2,377  
Research and development
    4,658       4,119       3,466  
Selling, general and administrative
    9,240       6,649       4,871  
Total
  $ 16,303     $ 12,685     $ 10,714  

The after tax impact of recognizing the share-based compensation expense related to FASB ASC Topic 718 on basic earnings per common share was $0.18, $0.15 and $0.14 for the years ended December 31, 2012, 2011 and 2010, respectively and diluted earnings per common share was $0.17, $0.14 and $0.14 for the years ended December 31, 2012, 2011 and 2010, respectively.  The Company recognized a deferred tax benefit of $4,335,000, $3,078,000 and $1,719,000 in 2012, 2011 and 2010, respectively; related to share-based compensation expense recorded for non-qualified employee stock options and restricted stock awards.

The Company’s policy is to issue new shares to satisfy stock option exercises and to grant restricted share awards.  There were no modifications to any stock options during the years ended December 31, 2012, 2011 or 2010.

Note 15 - Stockholders' Equity
Stockholders' Equity Note Disclosure [Text Block]
15. STOCKHOLDERS’ EQUITY

Preferred Stock

Pursuant to its certificate of incorporation, the Company is authorized to issue 2,000,000 shares, $0.01 par value per share, “blank check” preferred stock, which enables the Board of Directors of the Company, from time to time, to create one or more new series of preferred stock. Each series of preferred stock issued can have the rights, preferences, privileges and restrictions designated by the Company’s Board of Directors. The issuance of any new series of preferred stock could affect, among other things, the dividend, voting, and liquidation rights of the Company’s common stock. During the years ended December 31, 2012, 2011 and 2010, the Company did not issue any preferred stock.

Common Stock

The Company’s Certificate of Incorporation, as amended, authorizes the Company to issue 90,000,000 shares of common stock with $0.01 par value.

Shareholders Rights Plan

On January 20, 2009, the Board of Directors approved the adoption of a shareholder rights plan and declared a dividend of one preferred share purchase right for each outstanding share of common stock of the Company. Under certain circumstances, if a person or group acquires, or announces its intention to acquire, beneficial ownership of 20% or more of the Company’s outstanding common stock, each holder of such right (other than the third party triggering such exercise), would be able to purchase, upon exercise of the right at a $15 exercise price, subject to adjustment, the number of shares of the Company’s common stock having a market value of two times the exercise price of the right. Subject to certain exceptions, if the Company is consolidated with, or merged into, another entity and the Company is not the surviving entity in such transaction or shares of the Company’s outstanding common stock are exchanged for securities of any other person, cash or any other property, or more than 50% of the Company’s assets or earning power is sold or transferred, then each holder of the rights would be able to purchase, upon the exercise of the right at a $15 exercise price, subject to adjustment, the number of shares of common stock of the third party acquirer having a market value of two times the exercise price of the right.

In connection with the shareholder rights plan, the Board of Directors designated 100,000 shares of series A junior participating preferred stock.  The rights expired on January 20, 2012.

Note 16 - Earnings Per Share
Earnings Per Share [Text Block]
16. EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net earnings by the weighted average common shares outstanding for the period. Diluted earnings per common share is computed by dividing net income (loss) by the weighted average common shares outstanding adjusted for the dilutive effect of stock options, restricted stock awards, stock purchase warrants and convertible debt, excluding anti-dilutive shares.

A reconciliation of basic and diluted earnings per share is as follows:

   
For the Years Ended December 31,
 
(in $000’s, except share and per share amounts)
 
2012
   
2011
   
2010
 
Numerator:
                 
Net income
  $ 55,873     $ 65,495     $ 250,418  
                         
Denominator:
                       
Weighted average common shares outstanding
    65,660,271       64,126,855       62,037,908  
Effect of dilutive stock options and restricted stock
    2,744,280       3,193,134       3,527,224  
Diluted weighted average common shares outstanding
    68,404,551       67,319,989       65,565,132  
                         
Basic net income per share
  $ 0.85     $ 1.02     $ 4.04  
Diluted net income per share
  $ 0.82     $ 0.97     $ 3.82  

For the years ended December 31, 2012, 2011 and 2010, the Company excluded 905,899, 1,244,493 and 1,024,466, respectively, of stock options from the computation of diluted net income per common share as the effect of these options would have been anti-dilutive.

Note 17 - Segment Information
Segment Reporting Disclosure [Text Block]
17. SEGMENT INFORMATION

The Company has two reportable segments, the Global Division and the Impax Division.   The Global Division develops, manufactures, sells, and distributes generic pharmaceutical products, primarily through the following sales channels: the Global Products sales channel for sales of generic prescription products directly to wholesalers, large retail drug chains, and others; and the Private Label Product sales channel for generic over-the-counter and prescription products sold to unrelated third-party customers who, in-turn, sell the products under their own label; the Rx Partner sales channel for generic prescription products sold through unrelated third-party pharmaceutical entities under their own label pursuant to alliance agreements; and the OTC Partner sales channel for over-the-counter products sold through unrelated third-party pharmaceutical entities under their own label pursuant to alliance agreements.  The Company also generates revenue in its Global Division from research and development services provided under a joint development agreement with another unrelated third-party pharmaceutical company, and refers to such revenue as “Research Partner” revenue.

The Impax Division is engaged in the development of proprietary branded pharmaceutical products through improvements to already-approved pharmaceutical products to address central nervous system (CNS) disorders. The Impax Division currently has one internally developed late stage branded pharmaceutical product candidate, RYTARY™ for the symptomatic treatment of Parkinson’s disease, for which the NDA was accepted for filing by the FDA in February 2012 and which the Company is currently working with the FDA on appropriate next steps on the NDA in response to a Complete Response Letter the Company received from the FDA in January 2013.  The Impax Division also has other product candidates in varying stages of development.  In addition, the Impax Division is engaged in product sales and promotion through a direct sales force focused on promoting pharmaceutical products developed by an unrelated third-party pharmaceutical company pursuant to a Distribution, License, Development and Supply Agreement.  Additionally, the Company generates revenue in its Impax Division from research and development services provided under a development and license agreement with another unrelated third-party pharmaceutical company, and refers to such revenue as “Research Partner” revenue; and the Company generates revenue in its Impax Division under a  License, Development and Commercialization Agreement with another unrelated third-party pharmaceutical company, and refers to such revenue as “Rx Partner” revenue.

The Company’s chief operating decision maker evaluates the financial performance of the Company’s segments based upon segment income (loss) before income taxes.  Items below income (loss) from operations are not reported by segment, except litigation settlements, since they are excluded from the measure of segment profitability reviewed by the Company’s chief operating decision maker.  Additionally, general and administrative expenses, certain selling expenses, certain litigation settlements, and non-operating income and expenses are included in “Corporate and Other.”  The Company does not report balance sheet information by segment since it is not reviewed by the Company’s chief operating decision maker. The accounting policies for the Company’s segments are the same as those described above in “Note 2 –Summary of Significant Accounting Policies – Revenue Recognition.”  The Company has no inter-segment revenue.

The tables below present segment information reconciled to total Company financial results, with segment operating income or loss including gross profit less direct research and development expenses, and direct selling expenses as well as any litigation settlements, to the extent specifically identified by segment:

(in $000’s)
 
Global
   
Impax
   
Corporate
   
Total
 
Year Ended December 31, 2012
 
Division
   
Division
   
and Other
   
Company
 
Revenues, net
  $ 448,682     $ 133,010     $ --     $ 581,692  
Cost of revenues
    229,355       69,783       --       299,138  
Research and development
    48,540       32,780       --       81,320  
Patent litigation
    9,772       --       --       9,772  
Selling, general and administrative
    15,377       37,896       55,197       108,470  
Income (loss) before income taxes
  $ 145,638     $ (7,449 )   $ (54,878 )   $ 83,311  

Year Ended December 31, 2011
 
Global
Division
   
Impax
Division
   
Corporate
and Other
   
Total
Company
 
Revenues, net
  $ 491,710     $ 21,209     $ --     $ 512,919  
Cost of revenues
    242,713       11,911       --       254,624  
Research and development
    46,169       36,532       --       82,701  
Patent litigation
    7,506       --       --       7,506  
Selling, general and administrative
    11,313       7,435       49,729       68,477  
Income (loss) before income taxes
  $ 184,009     $ (34,669 )   $ (51,229 )   $ 98,111  

Year Ended December 31, 2010
 
Global
Division
   
Impax
Division
   
Corporate
and Other
   
Total
Company
 
Revenues, net
  $ 864,667     $ 14,842     $ --     $ 879,509  
Cost of revenues
    328,163       12,083       --       340,246  
Research and development
    44,325       41,898       --       86,223  
Patent litigation
    6,384       --       --       6,384  
Selling, general and administrative
    14,625       3,510       35,197       53,332  
Income (loss) before income taxes
  $ 471,170     $ (42,649 )   $ (34,582 )   $ 393,939  

Foreign Operations

The Company’s wholly-owned subsidiary, Impax Laboratories (Taiwan) Inc., has constructed a facility in Taiwan which is utilized for manufacturing, research and development, warehouse, and administrative functions, with approximately $126,684,000, and $56,827,000 of net carrying value of assets, composed principally of a building and equipment, included in the Company's consolidated balance sheet at December 31, 2012 and 2011, respectively.

Note 18 - Commitments and Contingencies
Commitments and Contingencies Disclosure [Text Block]
18. COMMITMENTS AND CONTINGENCIES

Leases

The Company leases land, office, warehouse and laboratory facilities under non-cancelable operating leases expiring between March 2014 and December 2026.  Rent expense for the years ended December 31, 2012, 2011 and 2010 was $1,719,000, $1,691,000 and $1,715,000, respectively.  The Company recognizes rent expense on a straight-line basis over the lease period.  The Company also leases certain equipment under various non-cancelable operating leases with various expiration dates between May 2013 and May 2016.  Future minimum lease payments under the non-cancelable operating leases are as follows:

(in $000s)
 
Years Ended
December 31,
 
2013
  $ 2,020  
2014
    1,747  
2015
    933  
2016
    404  
2017
    316  
Thereafter
    2,657  
Total minimum lease payments
  $ 8,077  

Purchase Order Commitments

As of December 31, 2012, the Company had approximately $47,811,000 of open purchase order commitments, primarily for raw materials.  The terms of these purchase order commitments are generally less than one year in duration.

Taiwan Facility

The Company has entered into several contracts related to ongoing expansion activities at its Taiwan facility.  As of December 31, 2012, the Company had remaining obligations under these contracts of approximately $9,423,000.

Note 19 - Legal and Regulatory Matters
Legal Matters and Contingencies [Text Block]
19. LEGAL AND REGULATORY MATTERS

Patent Litigation
 

There is substantial litigation in the pharmaceutical, biological, and biotechnology industries with respect to the manufacture, use, and sale of new products which are the subject of conflicting patent and intellectual property claims. One or more patents typically cover most of the brand name controlled release products for which the Company is developing generic versions.

Under federal law, when a drug developer files an ANDA for a generic drug seeking approval before expiration of a patent, which has been listed with the FDA as covering the brand name product, the developer must certify its product will not infringe the listed patent(s) and/or the listed patent is invalid or unenforceable (commonly referred to as a “Paragraph IV” certification). Notices of such certification must be provided to the patent holder, who may file a suit for patent infringement within 45 days of the patent holder’s receipt of such notice. If the patent holder files suit within the 45 day period, the FDA can review and approve the ANDA, but is prevented from granting final marketing approval of the product until a final judgment in the action has been rendered in favor of the generic drug developer, or 30 months from the date the notice was received, whichever is sooner. Lawsuits have been filed against the Company in connection with the Company’s Paragraph IV certifications seeking an order delaying the approval of the Company’s ANDA until expiration of the patent(s) at issue in the litigation.

Should a patent holder commence a lawsuit with respect to an alleged patent infringement by the Company, the uncertainties inherent in patent litigation make the outcome of such litigation difficult to predict. The delay in obtaining FDA approval to market the Company’s product candidates as a result of litigation, as well as the expense of such litigation, whether or not the Company is ultimately successful, could have a material adverse effect on the Company’s results of operations and financial position. In addition, there can be no assurance that any patent litigation will be resolved prior to the end of the 30-month period. As a result, even if the FDA were to approve a product upon expiration of the 30-month period, the Company may elect to not commence marketing the product if patent litigation is still pending.

The Company is generally responsible for all of the patent litigation fees and costs associated with current and future products not covered by its alliance and collaboration agreements. The Company has agreed to share legal expenses with respect to third-party and Company products under the terms of certain of the alliance and collaboration agreements.  For instance, under the Teva Agreement, the Company and Teva have agreed to share in fees and costs related to patent infringement litigation associated with the products covered by the Teva Agreement and the Company is currently sharing litigation costs with respect to three products under the terms of two other separate agreements.  The Company records the costs of patent litigation as expense in the period when incurred for products it has developed, as well as for products which are the subject of an alliance or collaboration agreement with a third-party.

Although the outcome and costs of the asserted and unasserted claims is difficult to predict, the Company does not expect the ultimate liability, if any, for such matters to have a material adverse effect on its financial condition, results of operations, or cash flows.

Patent Infringement Litigation

Eurand, Inc., et al. v. Impax Laboratories, Inc. (Cyclobenzaprine)

In January 2009, Eurand, Inc., Cephalon, Inc., and Anesta AG (collectively, “Cephalon”) filed suit against the Company in the U.S. District Court for the District of Delaware (“District Court”), alleging patent infringement for the filing of the Company’s ANDA relating to Cyclobenzaprine Hydrochloride Extended Release Capsules, 15 mg and 30 mg, generic to Amrix®. This matter was settled and dismissed on October 11, 2010.

On November 8, 2011, the District Court expressly named the Company in an order enjoining it from engaging in the commercial use, offer for sale, or sale within the United States of any generic Amrix®. On November 22, 2011, the Company filed a motion to reargue and modify the injunction. Plaintiffs responded on December 9, 2011, with a motion for declaratory judgment, seeking a declaration that the Company does not have the right to sell generic Amrix®. The Company responded on December 20, 2011, and moved to enforce the terms of a settlement agreement entered into with plaintiffs that it claims grants the Company the right to sell generic Amrix®. On March 15, 2012, the District Court denied the Company’s motion and refused to modify the injunction. The Company appealed the order.  The United States Court of Appeals for the Federal Circuit affirmed the district court’s decision to enjoin the Company on February 1, 2013. The Company has thirty (30) days from the date of the appellate court decision to file a motion for rehearing.

The Research Foundation of State University of New York et al. v. Impax Laboratories, Inc.; Galderma Laboratories Inc., et al. v. Impax Laboratories, Inc. (Doxycycline Monohydrate)

In September 2009, The Research Foundation of State University of New York; New York University; Galderma Laboratories Inc.; and Galderma Laboratories, L.P. (collectively, “Galderma”) filed suit against the Company in the U.S. District Court for the District of Delaware alleging patent infringement for the filing of the Company’s ANDA relating to Doxycycline Monohydrate Delayed-Release Capsules, 40 mg, generic to Oracea®. In May 2011, Galderma Laboratories Inc., Galderma Laboratories, L.P. and Supernus Pharmaceuticals, Inc. filed a second lawsuit in Delaware alleging infringement of an additional patent related to Oracea®. The Company filed an answer and counterclaims in both matters. In October 2009 for the first lawsuit and in July 2011 for the second lawsuit, the parties agreed to be bound by the final judgment concerning infringement, validity and enforceability of the patents at issue in an earlier-filed case brought by Galderma and Supernus against another generic drug manufacturer. Proceedings in the lawsuits involving the Company were stayed pending resolution of the related matter. In July 2011, a four-day trial was held in the case involving the other generic manufacturer in the U.S. District Court for the District of Delaware on the issues of patent infringement and validity. In August 2011, the Court issued its decision finding four of the five patents invalid and/or not infringed, and the fifth patent, which expires in December 2027, infringed and not invalid. After proceedings related to the remedy, on June 8, 2012, the Court entered final judgment with respect to that litigation. On June 22, 2012, the Court entered its final judgment with respect to the Company. All parties filed notices of appeal and/or cross-appeal in July 2012. The briefing at the United States Court of Appeals for the Federal Circuit was completed for all parties on January 28, 2013.  The decision of the District Court will be binding on the Company unless reversed or modified on appeal or in subsequent litigation.

Schering Corporation, et al. v. Impax Laboratories, Inc. (Ezetimibe/Simvastatin)

In August 2010, Schering Corporation and MSP Singapore Company LLC (together, “Schering”) filed suit against the Company in the U.S. District Court for the District of New Jersey (“District Court”) alleging patent infringement for the filing of the Company’s ANDA relating to Ezetimibe/Simvastatin Tablets, 10/80 mg, generic to Vytorin®. The Company filed an answer and counterclaim. In December 2010, the parties agreed to be bound by the final judgment concerning validity and enforceability of the patents at issue in cases brought by Schering against other generic drug manufacturers that have filed ANDAs relating to this product, and proceedings in the Company’s case were stayed. In April 2012, the District Court issued a decision, finding that the latest-expiring patent (U.S. Patent No. RE 42,461) to be valid and enforceable. The District Court's decision was subsequently affirmed by the Federal Circuit on appeal on February 7, 2013. The decision of validity and enforceability will be binding on the Company unless reversed or modified in subsequent litigation.

Shire LLC, et al. v. Impax Laboratories, Inc., et al. (Guanfacine)

In December 2010, Shire LLC, Supernus Pharmaceuticals, Inc., Amy F.T. Arnsten, Ph.D., Pasko Rakic, M.D., and Robert D. Hunt, M.D. (together, “Shire”) filed suit against the Company in the U.S. District Court for the Northern District of California alleging patent infringement for the filing of the Company’s ANDA relating to Guanfacine Hydrochloride Tablets, 4 mg, generic to Intuniv®. In January, 2011 Shire amended its complaint to add the 1 mg, 2 mg, and 3 mg strengths, based on the Company amending its ANDA to include those additional strengths. The Company filed its answer and counterclaims. The Court issued a claim construction ruling on June 1, 2012.    Trial is scheduled for February 10, 2014.

Takeda Pharmaceutical Co., Ltd, et al. v. Impax Laboratories, Inc. (Dexlansoprazole)

In April 2011, Takeda Pharmaceutical Co., Ltd., Takeda Pharmaceuticals North America, Inc., Takeda Pharmaceuticals LLC, and Takeda Pharmaceuticals America, Inc. (collectively, “Takeda”) filed suit against the Company in the U.S. District Court for the Northern District of California alleging patent infringement based on the filing of the Company’s ANDA relating to Dexlansoprazole Delayed Release Capsules, 30 and 60 mg, generic to Dexilant®. The Company filed an answer and counterclaims. The trial court issued a claim construction ruling on April 11, 2012. The parties have completed discovery.  In November 2012, the Company and Takeda filed cross motions for summary judgment regarding infringement and validity of the patents at issue. The motions are currently pending with the court.  Trial is scheduled for June 3, 2013.

Purdue Pharma L.P., The P.F. Laboratories, Inc., Purdue Pharmaceuticals L.P., Rhodes Technologies, Board of Regents of the University of Texas System, and Grunenthal GmbH v. Impax Laboratories, Inc. (Oxycodone)

In April 2011, Purdue Pharma L.P., The P.F. Laboratories, Inc., Purdue Pharmaceuticals L.P., Rhodes Technologies, Board of Regents of the University of Texas System, and Grunenthal GmbH (collectively “Purdue”) filed suit against the Company in the U.S. District Court for the Southern District of New York alleging patent infringement based on the filing of the Company’s ANDA relating to Oxycodone Hydrochloride, Controlled Release tablets, 10, 15, 20, 30, 40, 60 and 80 mg, generic to Oxycontin®. The Company filed an answer and counterclaims. Discovery is proceeding.  No trial date has been scheduled.

In February 2013, Purdue Pharma L.P. and Grunenthal GmbH filed a separate lawsuit against the Company involving the same product and ANDA, asserting infringement of two recently issued patents.  The Company filed an answer and counterclaims in February 2013.

Avanir Pharmaceuticals, Inc. et al. v. Impax Laboratories, Inc. (Dextromethorphan/Quinidine)

In August 2011, Avanir Pharmaceuticals, Inc., Avanir Holding Co., and Center for Neurological Study filed suit against the Company in the U.S. District Court for the District of Delaware alleging patent infringement based on the filing of the Company’s ANDA relating to Dextromethorphan/Quinidine Capsules, 20 mg/10 mg, generic of Nuedexta®. The Company filed an answer and counterclaims. On October 8, 2012, Avanir Pharmaceuticals, Inc. filed suit against the Company in the U.S. District Court for the District of Delaware alleging patent infringement of a new patent, US Patent 8,227,484, issued July 24, 2012, also based on the filing of the Company’s ANDA relating to Dextromethorphan/Quinidine Capsules, 20 mg/10 mg, generic of Nuedexta. The Company filed an answer and counterclaims on October 10, 2012. A claim construction hearing was conducted on October 5, 2012. Discovery is proceeding, and trial is scheduled for September 2013.

GlaxoSmithKline LLC, et al. v. Impax Laboratories, Inc., et al. (Dutasteride/Tamsulosin)

In September 2011, GlaxoSmithKline LLC and SmithKline Beecham Corp. filed suit against the Company in the U.S. District Court for the District of Delaware alleging patent infringement based on the filing of the Company’s ANDA relating to Dutasteride/Tamsulosin Capsules, 0.5 mg/0.4 mg, generic of Jalyn®. The Company filed an answer and counterclaim. The trial court issued a claim construction ruling on November 15, 2012.  A bench trial was conducted starting on January 28, 2013, and a decision is pending.

Cephalon, Inc. et al. v. Impax Laboratories, Inc. (Fentanyl Citrate)

In November 2011, Cephalon, Inc. and CIMA Labs, Inc. (together “Cephalon”) filed suit against the Company in the U.S. District Court for the District of Delaware, alleging patent infringement of U.S. Patent Nos. 6,200,604, 6,974,590, 7,862,832, and 7,862,833, based on the filing of the Company’s ANDA relating to Fentanyl Citrate Buccal Tablets, 100, 200, 400, 600, and 800 mcg, generic to Fentora®. The Company filed an answer and counterclaims, as well as declaratory judgment counterclaims to include three other patents (U.S. Patent Nos. 6,264,981; 8,092,832; and 8,119,158). In response, Cephalon alleged infringement of those three patents against the Company. The claims for infringement of U.S. Patent Nos. 6,200,604 and 6,974,590 were subsequently dismissed based on a judgment of invalidity in another case, which is currently on appeal.  Discovery is ongoing, and trial is scheduled for June 24, 2013.

Depomed, Inc. v. Impax Laboratories, Inc. (Gabapentin)

In April 2012, Depomed, Inc. filed suit against the Company in the U.S. District Court for the District of New Jersey, alleging patent infringement for the filing of the Company’s ANDA related to Gabapentin Extended-Release Tablets, 300 and 600 mg, generic to Gralise®.  The Company filed an answer and counterclaim.  On October 24, 2012, the parties submitted a stipulation of dismissal based on the withdrawal of the Company’s ANDA.

Acura Pharmaceuticals, Inc. v. Impax Laboratories, Inc. (Oxycodone HCl)

In October 2012, Acura Pharmaceuticals, Inc., filed suit against the Company in the U.S. District Court for the District of Delaware alleging patent infringement for the filing of the Company’s ANDA relating to Oxycodone Hydrochloride Tablets, 5 mg and 7.5 mg, generic to Oxecta®.  In November 2012, the Company filed its answer and counterclaims.  No trial date has been scheduled.

Endo Pharmaceuticals Inc. and Grunenthal GmbH v. Impax Laboratories, Inc. and ThoRx Laboratories, Inc. (Oxymorphone hydrochloride); Endo Pharmaceuticals Inc. and Grunenthal GmbH v. Impax Laboratories, Inc. (Oxymorphone hydrochloride)

In November 2012, Endo Pharmaceuticals, Inc. and Grunenthal GmbH (collectively, “Endo”) filed suit against ThoRx Laboratories, Inc., a wholly owned subsidiary of the Company (“ThoRx”), and the Company in the U.S. District Court for the Southern District of New York alleging patent infringement based on the filing of ThoRx’s ANDA relating to Oxymorphone Hydrochloride, Extended Release tablets, 5, 7.5, 10, 15, 20, 30 and 40 mg, generic to Opana ER®.  In January 2013, Endo filed a separate suit against the Company in the U.S. District Court for the Southern District of New York alleging patent infringement based on the filing of the Company’s ANDA relating to the same products.  ThoRx and the Company filed an answer and counterclaims to the November 2012 suit and the Company filed an answer and counterclaims with respect to the January 2013 suit. No trial dates have been set.

Purdue Pharma L.P., The P.F. Laboratories, Inc., Purdue Pharmaceuticals L.P. and Rhodes Technologies v. Impax Laboratories, Inc. (Oxycodone HCl)

In January 2013, Purdue Pharma L.P., The P.F. Laboratories, Inc., Purdue Pharmaceuticals L.P. and Rhodes Technologies (collectively “Purdue”) filed suit against the Company in the U.S. District Court for the Southern District of New York alleging patent infringement based on the filing of the Company’s two ANDAs relating to Oxycodone Hydrochloride, extended-release tablets: one for 10, 15, 20, 30 and 40 mg, and one for 60 and 80 mg.  The dosage forms are generic to OxyContin® (related to NDA 020553). The Company filed an answer and counterclaims in February 2013.  No trial date has been set.

           Other Litigation Related to the Company’s Business

Impax Laboratories, Inc. v. Shire LLC and Shire Laboratories, Inc. (generic Adderall XR®)

On November 1, 2010, the Company filed suit against Shire LLC and Shire Laboratories, Inc. (collectively “Shire”) in the Supreme Court of the State of New York, alleging breach of contract and other related claims due to Shire’s failure to fill the Company’s orders for the generic Adderall XR® product as required by the parties’ Settlement Agreement and License and Distribution Agreement, each signed in January 2006. In November 2010, the case was removed to the U.S. District Court for the Southern District of New York by Shire based on diversity jurisdiction. The parties entered into a settlement agreement and the case was dismissed on February 14, 2013.

Civil Investigative Demand from the FTC

On May 2, 2012, the Company received a Civil Investigative Demand (“CID”) from the United States Federal Trade Commission (“FTC”) concerning its investigation into the drug SOLODYN® and its generic equivalents. According to the FTC, the investigation is to determine whether Medicis Pharmaceutical Corporation (now a wholly owned subsidiary of Valeant Pharmaceuticals International, Inc.), the Company, and six other companies have engaged or are engaged in unfair methods of competition in or affecting commerce by (i) entering into agreements regarding SOLODYN® or its generic equivalents and/or (ii) engaging in other conduct regarding the sale or marketing of SOLODYN® or its generic equivalents. The Company is cooperating with the FTC in producing documents and information in response to the CID. To the knowledge of the Company no proceedings have been initiated against the Company to date, however no assurance can be given as to the timing or outcome of this investigation.

Endo Pharmaceuticals, Inc. v. Hamburg, et al.

On November 30, 2012, Endo Pharmaceuticals, Inc. (“Endo") filed an action against the FDA in the United States District Court for the District of Columbia seeking an injunction from the District Court to force the FDA to make a determination regarding Endo’s Citizen Petition on Opana® ER and/or to suspend the Company’s approval of its ANDA for a generic version of the original Opana® ER pending the FDA decision. In its Citizen Petition, Endo sought a ruling from the FDA that Endo’s original formulation of Opana® ER was withdrawn from marketing for reasons relating to safety, that no generic versions of Opana® ER should be approved, and that for any approved generic versions of Opana® ER, including the Company’s product, that approval be suspended.  The Company intervened in the District Court case on December 4, 2012. The Court held a hearing on Endo’s motion for a preliminary injunction and the FDA’s and the Company’s cross-motions to dismiss on December 19, 2012. On December 19, 2012, the Court denied Endo’s motion for a preliminary injunction and granted the FDA’s and the Company’s cross-motions to dismiss.

Note 20 - Subsequent Events
Subsequent Events [Text Block]
20. SUBSEQUENT EVENTS

Amended and Restated Shire License and Distribution Agreement

On February 7, 2013, the Company entered into an Amended and Restated License and Distribution Agreement with Shire (the “Amended and Restated Shire Agreement”), which amended and restated the License and Distribution Agreement between the parties dated as of January 2006, as amended (the “Prior Shire Agreement”).  The Amended and Restated Shire Agreement was entered into by the parties in connection with the settlement of the Company’s pending litigation with Shire relating to Shire’s supply of the AG Product to the Company under the Prior Shire Agreement.  The Amended and Restated Shire Agreement provides for Shire to supply the AG Product and for the Company to market and sell the AG Product subject to the terms and conditions thereof until the earlier of (i) the first commercial sale of the Company’s generic equivalent product to Adderall XR® and (ii) September 30, 2014 (the “Supply Term”), subject to certain continuing obligations of the parties upon expiration or early termination of the Supply Term, including Shire’s obligation to deliver AG Products still owed to the Company as of the end of the Supply Term. The Company is required to pay a profit share to Shire on sales of the AG Product.

Note 21 - Supplementary Financial Information (unaudited)
Quarterly Financial Information [Text Block]
21. SUPPLEMENTARY FINANCIAL INFORMATION (unaudited)

Selected financial information for the quarterly periods noted is as follows:

    2012 Quarters Ended:  
(in $000’s except shares and per share amounts)
 
March 31
   
June 30
   
September 30
   
December 31
 
Revenue:
                       
Global Product sales, gross
  $ 185,671     $ 223,449     $ 178,628     $ 177,830  
Less:
                               
Chargebacks
    39,155       50,670       47,366       59,460  
Rebates
    20,589       26,847       24,285       22,995  
Product Returns
    (329 )     948       304       (1,730 )
Other credits
    10,045       18,552       7,212       17,334  
Global Product sales, net
    116,211       126,432       99,461       79,771  
                                 
Rx Partner
    2,978       2,466       (792 )     1,793  
Research Partner
    3,385       3,384       996       995  
OTC Partner
    691       783       763       9,365  
Global Division revenues, net
    123,265       133,065       100,428       91,924  
                                 
Impax Product sales, gross
    --       40,818       63,909       65,141  
Less:
                               
Chargebacks
    --       4,449       8,308       44  
Rebates
    --       3,714       5,113       7,556  
Product Returns
    --       878       1,374       1,558  
Other credits
    --       3,683       5,785       9,285  
Impax Product sales, net
    --       28,094       43,329       46,698  
 
                               
Rx Partner
    1,438       1,437       1,500       2,125  
Research Partner
    330       329       330       330  
Promotional Partner
    3,535       3,535       --       --  
Impax Division revenues, net
    5,303       33,395       45,159       49,153  
                                 
Total revenues
    128,568       166,460       145,587       141,077  
                                 
Gross profit
    62,553       77,823       78,027       64,151  
                                 
Net income
  $ 12,365     $ 18,672     $ 20,037     $ 4,799  
                                 
Net income per share (basic)
  $ 0.19     $ 0.29     $ 0.30     $ 0.07  
Net income per share (diluted)
  $ 0.18     $ 0.27     $ 0.29     $ 0.07  
                                 
Weighted Average: common shares outstanding:
                               
Basic
    65,122,240       65,482,700       65,797,722       66,217,421  
Diluted
    67,907,263       67,954,573       68,366,849       68,419,888  

Quarterly computations of net income per share amounts are made independently for each quarterly reporting period, and the sum of the per share amounts for the quarterly reporting periods may not equal the per share amounts for the year-to-date reporting period.

Selected financial information for the quarterly periods noted is as follows:

   
2011 Quarters Ended:
 
(in $000’s except shares and per share amounts)
 
March 31
   
June 30
   
September 30
   
December 31
 
Revenue:
                       
Global Product sales, gross
  $ 151,832     $ 181,972     $ 169,519     $ 225,122  
Less:
                               
Chargebacks
    35,216       39,395       39,690       52,203  
Rebates
    12,709       17,392       18,014       21,058  
Product Returns
    2,706       1,799       552       (4,369 )
Other credits
    8,863       12,261       13,602       13,536  
Global Product sales, net
    92,338       111,125       97,661       142,694  
                                 
Rx Partner
    2,682       4,866       12,621       6,164  
Research Partner
    6,385       3,384       3,385       3,384  
OTC Partner
    1,943       1,184       879       1,015  
Global Division revenues, net
    103,348       120,559       114,546       153,257  
                                 
Rx Partner
    1,438       1,437       1,438       1,437  
Research Partner
    330       329       330       330  
Promotional Partner
    3,535       3,535       3,535       3,535  
Impax Division revenues, net
    5,303       5,301       5,303       5,302  
                                 
Total revenues
    108,651       125,860       119,849       158,559  
                                 
Gross profit
    58,537       59,702       62,654       77,402  
                                 
Net income
  $ 13,863     $ 12,550     $ 17,220     $ 21,862  
                                 
Net income per share (basic)
  $ 0.22     $ 0.20     $ 0.27     $ 0.34  
Net income per share (diluted)
  $ 0.21     $ 0.19     $ 0.26     $ 0.33  
                                 
Weighted Average: common shares outstanding:
                               
Basic
    63,390,527       64,024,483       64,387,413       64,687,753  
Diluted
    67,044,266       67,654,047       66,986,758       67,029,407  

Quarterly computations of net income per share amounts are made independently for each quarterly reporting period, and the sum of the per share amounts for the quarterly reporting periods may not equal the per share amounts for the year-to-date reporting period.

The Company recorded a reduction to its reserve for product returns of $5.7 million in the fourth quarter of 2011 based upon actual prescription data related to its generic Adderall XR® products. Additionally, the Company recorded a reduction to its reserve for product returns of $2.0 million in the fourth quarter of 2011 related to all Global Products other than its generic Adderall XR® products as a result of continued improvement in the Company’s historical experience of actual return credits processed.

The table below presents a comparison of certain consolidated statement of operations financial reporting captions under the pre-amendment and post-amendment accounting principles of ASC 605-25 for each of the three months ended March 31, 2010, June 30, 2010, September 30, 2010, and December 31, 2010 and for the year ended December 31, 2010, as follows:

   
Three Months Ended:
   
Twelve
Months Ended
 
(in $000’s except per share amounts)
 
March 31,
2010
   
June 30,
2010
   
September 30,
2010
   
December 31,
2010
   
December 31,
2010
 
                               
RX Partner revenue
                             
Pre-amendment principles
  $ 4,903     $ 5,802     $ 5,922     $ 5,628     $ 22,255  
Change
    (802 )     407       437       (1,855 )     (1,813 )
Post-amendment principles
  $ 4,101     $ 6,209     $ 6,359     $ 3,773     $ 20,442  
                                         
Cost of revenues
                                       
Pre-amendment principles
  $ 79,576     $ 68,892     $ 47,998     $ 48,498     $ 244,964  
Change
    282       1,104       (302 )     159       1,243  
Post-amendment principles
  $ 79,858     $ 69,996     $ 47,696     $ 48,657     $ 246,207  
                                         
Income before income taxes
                                       
Pre-amendment principles
  $ 210,997     $ 49,438     $ 21,882     $ 11,823     $ 294,140  
Change
    (1,084 )     (697 )     739       (2,014 )     (3,056 )
Post-amendment principles
  $ 209,913     $ 48,741     $ 22,621     $ 9,809     $ 291,084  
                                         
Net income
                                       
Pre-amendment principles
  $ 131,485     $ 31,348     $ 13,908     $ 7,515     $ 184,256  
Change
    (689 )     (443 )     470       (1,280 )     (1,942 )
Post-amendment principles
  $ 130,796     $ 30,905     $ 14,378     $ 6,235     $ 182,314  
                                         
Earnings per share-basic
                                       
Pre-amendment principles
  $ 2.16     $ 0.51     $ 0.22     $ 0.12     $ 2.97  
Change
    (0.02 )     (0.01 )     0.01       (0.02 )     (0.03 )
Post-amendment principles
  $ 2.14     $ 0.50     $ 0.23     $ 0.10     $ 2.94  

Refer to “Note 12 –Alliance and Collaboration Agreements” for more information regarding the accounting for the Teva Agreement.

Schedule II - Valuation and Qualifying Accounts
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]
SCHEDULE II, VALUATION AND QUALIFYING ACCOUNTS

For the Year Ended December 31, 2010

(in $000’s)

Column A
 
Column B
   
Column C
   
Column D
   
Column E
 
 
Description
 
Balance at
Beginning of
Period
   
Charge to
Costs and
Expenses
   
Charge to
Other
Accounts
   
Deductions
   
Balance at
End of
Period
 
                                         
Reserve for bad debts
    372       277       —       (110 )      539  

For the Year Ended December 31, 2011
(in $000’s)

Column A
 
Column B
   
Column C
   
Column D
   
Column E
 
Description
 
Balance at
Beginning of
Period
   
Charge to
Costs and
Expenses
   
Charge to
Other
Accounts
   
Deductions
   
Balance at
End of
Period
 
                                         
Reserve for bad debts
    539       163       —       (90 )      612  

For the Year Ended December 31, 2012

(in $000’s)

Column A
 
Column B
   
Column C
   
Column D
   
Column E
 
 
Description
 
Balance at
Beginning of
Period
   
Charge to
Costs and
Expenses
   
Charge to
Other
Accounts
   
Deductions
   
Balance at
End of
Period
 
                                         
Reserve for bad debts
    612       —       —       (59 )      553  

Accounting Policies, by Policy (Policies)
Use of Estimates, Policy [Policy Text Block] 
Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the U.S. Securities & Exchange Commission (SEC) requires the use of estimates and assumptions, based on complex judgments considered reasonable, and affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  The most significant judgments are employed in estimates used in determining values of tangible and intangible assets, legal contingencies, tax assets and tax liabilities,  fair value of share-based compensation related to equity incentive awards issued to employees and directors, and estimates used in applying the Company’s revenue recognition policy including those related to accrued chargebacks, rebates, product returns, Medicare, Medicaid, and other government rebate programs, shelf-stock adjustments, and the timing and amount of deferred and recognized revenue and deferred and amortized product manufacturing costs related to alliance and collaboration agreements.  Actual results may differ from estimated results.  Certain prior year amounts have been reclassified to conform to the presentation for the year ended December 31, 2012.
Consolidation, Policy [Policy Text Block] 
Principles of Consolidation

The consolidated financial statements of the Company include the accounts of the operating parent company, Impax Laboratories, Inc., its wholly owned subsidiaries, including Impax Laboratories (Taiwan) Inc., and an equity investment in Prohealth Biotech, Inc. (“Prohealth”), in which the Company held a 57.54% majority ownership interest at December 31, 2012. As of December 31, 2012, Prohealth was in the process of being liquidated.  All significant intercompany accounts and transactions have been eliminated.
Cash and Cash Equivalents, Policy [Policy Text Block] 
Cash and Cash Equivalents

The Company considers all short-term investments with maturity of three months or less at the date of purchase to be cash equivalents.  Cash and cash equivalents are stated at cost, which, for cash equivalents, approximates fair value due to their short-term maturity.  The Company is potentially subject to financial instrument concentration of credit risk through its cash and cash equivalents.  The Company maintains cash and cash equivalents with several major financial institutions.  Such amounts frequently exceed Federal Deposit Insurance Corporation (“FDIC”) limits.
Investment, Policy [Policy Text Block] 
Short-Term Investments

Short-term investments represent investments in fixed rate financial instruments with maturities of greater than three months but less than 12 months at the time of purchase. The Company’s short-term investments are held in U.S. Treasury securities, corporate bonds, and high grade commercial paper, which are not insured by the FDIC.  They are stated at amortized cost, which approximates fair value due to their short-term maturity, generally based upon observable market values of similar securities.
Fair Value of Financial Instruments, Policy [Policy Text Block] 
Fair Value of Financial Instruments

The Company’s deferred compensation liability is carried at the value of the amount owed to participants, and is derived from observable market data by reference to hypothetical investments.  The carrying values of other financial assets and liabilities such as accounts receivable, accounts payable and accrued expenses approximate their fair values due to their short-term nature.
Commitments and Contingencies, Policy [Policy Text Block] 
Contingencies

In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, covering a wide range of matters, including, among others, patent litigation, shareholder lawsuits, and product and clinical trial liability.  In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”) Topic 450, "Contingencies", the Company records accruals for such loss contingencies when it is probable a liability will been incurred and the amount of loss can be reasonably estimated. The Company, in accordance with FASB ASC Topic 450, does not recognize gain contingencies until realized.  The Company records an accrual for legal costs in the period incurred.  A discussion of contingencies is included in the “Commitments and Contingencies,” and “Legal and Regulatory Matters” footnotes below.
Allowance for Doubtful Accounts [Policy Text Block] 
Allowance for Doubtful Accounts

The Company maintains allowances for doubtful accounts for estimated losses resulting from amounts deemed to be uncollectible from its customers; these allowances are for specific amounts on certain accounts based on facts and circumstances determined on a case-by-case basis.
Concentration Risk, Credit Risk, Policy [Policy Text Block] 
Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash, cash equivalents, short-term investments, and accounts receivable.  The Company limits its credit risk associated with cash, cash equivalents and short-term investments by placing its investments with high quality money market funds, corporate debt, and short-term commercial paper and in securities backed by the U.S. Government.  The Company limits its credit risk with respect to accounts receivable by performing credit evaluations when deemed necessary.  The Company does not require collateral to secure amounts owed to it by its customers.

The following tables present the percentage of total accounts receivable and gross revenues represented by the Company’s five largest customers as of and for the years ended December 31, 2012, 2011 and 2010:

Percent of Total Accounts Receivable
 
2012
   
2011
   
2010
 
                   
Customer #1
    31.9 %     30.4 %     15.0 %
Customer #2
    23.3 %     12.9 %     18.4 %
Customer #3
    18.4 %     25.7 %     28.3 %
Customer #4
    -- %     8.6 %     13.5 %
Customer #5
    -- %     -- %     2.9 %
Customer #6
    3.7 %     2.5 %     -- %
Customer #7
    3.1 %     -- %     -- %
Total Five largest customers
    80.4 %     80.1 %     78.1 %

Percent of Gross Revenues
 
2012
   
2011
   
2010
 
                   
Customer #1
    25.2 %     19.6 %     14.1 %
Customer #2
    21.8 %     15.9 %     19.9 %
Customer #3
    15.1 %     19.4 %     14.2 %
Customer #4
    9.2 %     12.4 %     6.5 %
Customer #5
    2.9 %     2.4 %     3.4 %
Total Five largest customers
    74.2 %     69.7 %     58.1 %

During the years ended December 31, 2012, 2011 and 2010, the Company’s top ten generic products accounted for 70%, 76% and 83%, respectively, of Global Product sales, net.  In our Impax Division, revenue from sales of Zomig® products pursuant to our Distribution, License, Development and Supply Agreement with AstraZeneca accounted for 100% of our Impax Product sales, net. Refer to “Note 21 –Supplemental Financial Information” for more information.
Inventory, Policy [Policy Text Block] 
Inventory

Inventory is stated at the lower of cost or market. Cost is determined using a standard cost method, and the cost flow assumption is first in, first out (“FIFO”) flow of goods.  Standard costs are revised annually, and significant variances between actual costs and standard costs are apportioned to inventory and cost of goods sold based upon inventory turnover.  Costs include materials, labor, quality control, and production overhead. Inventory is adjusted for short-dated, unmarketable inventory equal to the difference between the cost of inventory and the estimated value based upon assumptions about future demand and market conditions.  If actual market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required.  Consistent with industry practice, the Company may build pre-launch inventories of certain products which are pending required approval from the FDA and/or resolution of patent infringement litigation, when, in the Company’s assessment, such action is appropriate to increase the commercial opportunity and FDA approval is expected in the near term and/or the litigation will be resolved in the Company’s favor.  The Company accounts for all costs of idle facilities, excess freight and handling costs, and wasted materials (spoilage) as a current period charge in accordance with GAAP.
Property, Plant and Equipment, Policy [Policy Text Block] 
Property, Plant and Equipment

Property, plant and equipment are recorded at cost.  Maintenance and repairs are charged to expense as incurred and costs of improvements and renewals are capitalized.  Costs incurred in connection with the construction or major renovation of facilities, including interest directly related to such projects, are capitalized as construction in progress. Depreciation is recognized using the straight-line method based on the estimated useful lives of the related assets, which are 40 years for buildings, 15 years for building improvements, seven to 10 years for equipment, and three to seven years for office furniture and equipment.  Land and construction-in-progress are not depreciated.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] 
Goodwill

In accordance with FASB ASC Topic 350, "Goodwill and Other Intangibles", rather than recording periodic amortization, goodwill is subject to an annual assessment for impairment by applying a fair value based test.  Under FASB ASC Topic 350, if the fair value of the reporting unit exceeds the reporting unit’s carrying value, including goodwill, then goodwill is considered not impaired, making further analysis not required.  The Company considers the Global Division and the Impax Division operating segments to each be a reporting unit.  The Company attributes the entire carrying amount of goodwill to the Global Division.

The Company concluded the carrying value of goodwill was not impaired as of December 31, 2012 and 2011 as the fair value of the Global Division exceeded its carrying value at each date.  The Company performs its annual goodwill impairment test in the fourth quarter of each year.  The Company estimated the fair value of the Global Division using a discounted cash flow model for both the reporting unit and the enterprise.  In addition, on a quarterly basis, the Company performs a review of its business operations to determine whether events or changes in circumstances have occurred which could have a material adverse effect on the estimated fair value of the reporting unit, and thus indicate a potential impairment of the goodwill carrying value.  If such events or changes in circumstances were deemed to have occurred, the Company would perform an interim impairment analysis, which may include the preparation of a discounted cash flow model, or consultation with one or more valuation specialists, to determine the impact, if any, on the Company’s assessment of the reporting unit’s fair value.  The Company has not to date deemed there to have been any significant adverse changes in the legal, regulatory, or general economic environment in which the Company conducts its business operations.
Revenue Recognition, Policy [Policy Text Block] 
Revenue Recognition

The Company recognizes revenue when the earnings process is complete, which under SEC Staff Accounting Bulletin No. 104, Topic No. 13, “Revenue Recognition” (“SAB 104”), is when revenue is realized or realizable and earned, there is persuasive evidence a revenue arrangement exists, delivery of goods or services has occurred, the sales price is fixed or determinable, and collectability is reasonably assured.

The Company accounts for material revenue arrangements which contain multiple deliverables in accordance with FASB ASC Topic 605-25, revenue recognition for arrangements with multiple elements, which addresses the determination of whether an arrangement involving multiple deliverables contains more than one unit of accounting. A delivered item within an arrangement is considered a separate unit of accounting only if both of the following criteria are met:

 
·
the delivered item has value to the customer on a stand-alone basis; and

 
·
if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor.

Under FASB ASC Topic 605-25, if both of the criteria above are not met, then separate accounting for the individual deliverables is not appropriate. Revenue recognition for arrangements with multiple deliverables constituting a single unit of accounting is recognized generally over the greater of the term of the arrangement or the expected period of performance, either on a straight-line basis or on a modified proportional performance method.

The Company accounts for milestones related to research and development activities in accordance with FASB ASC Topic 605-28, milestone method of revenue recognition.  FASB ASC Topic 605-28 allows for the recognition of consideration, which is contingent on the achievement of a substantive milestone, in its entirety in the period the milestone is achieved.  A milestone is considered to be substantive if all of the following criteria are met: the milestone is commensurate with either: (1) the performance required to achieve the milestone, or (2) the enhancement of the value of the delivered items resulting from the performance required to achieve the milestone; the milestone relates solely to past performance; and, the milestone payment is reasonable relative to all of the deliverables and payment terms within the agreement.

Global Product sales, net, and Impax Product sales, net:

The Global Product sales, net and Impax Product sales, net include revenue recognized related to shipments of generic and branded pharmaceutical products to the Company’s customers, primarily drug wholesalers and retail chains. Gross sales revenue is recognized at the time title and risk of loss passes to the customer, which is generally when product is received by the customer. Global and Impax Product revenue, net may include deductions from the gross sales price related to estimates for chargebacks, rebates, distribution service fees, returns, shelf-stock, and other pricing adjustments. The Company records an estimate for these deductions in the same period when revenue is recognized.  A summary of each of these deductions is as follows:

Chargebacks

The Company has agreements establishing contract prices for certain products with certain indirect customers, such as managed care organizations, hospitals and government agencies who purchase products from drug wholesalers. The contract prices are lower than the prices the customer would otherwise pay to the wholesaler, and the price difference is referred to as a chargeback, which generally takes the form of a credit memo issued by the Company to reduce the invoiced gross selling price charged to the wholesaler. An estimated accrued provision for chargeback deductions is recognized at the time of product shipment. The primary factors considered when estimating the provision for chargebacks are the average historical chargeback credits given, the mix of products shipped, and the amount of inventory on hand at the major drug wholesalers with whom the Company does business.  The Company also monitors actual chargebacks granted and compares them to the estimated provision for chargebacks to assess the reasonableness of the chargeback reserve at each quarterly balance sheet date.

Rebates

The Company maintains various rebate programs with its customers in an effort to maintain a competitive position in the marketplace and to promote sales and customer loyalty. The rebates generally take the form of a credit memo to reduce the invoiced gross selling price charged to a customer for products shipped. An estimated accrued provision for rebate deductions is recognized at the time of product shipment. The primary factors the Company considers when estimating the provision for rebates are the average historical experience of aggregate credits issued, the mix of products shipped and the historical relationship of rebates as a percentage of total gross product sales, the contract terms and conditions of the various rebate programs in effect at the time of shipment, and the amount of inventory on hand at the major drug wholesalers with whom the Company does business.  The Company also monitors actual rebates granted and compares them to the estimated provision for rebates to assess the reasonableness of the rebate reserve at each quarterly balance sheet date.

Distribution Service Fees

The Company pays distribution service fees to several of its wholesaler customers related to sales of its Impax Products.  The wholesalers are generally obligated to provide the Company with periodic outbound sales information as well as inventory levels of the Company’s Impax Products held in their warehouses.  Additionally, the wholesalers have agreed to manage the variability of their purchases and inventory levels within specified days on hand limits.  An accrued provision for distribution service fees is recognized at the time products are shipped to wholesalers.

Returns

The Company allows its customers to return product if approved by authorized personnel in writing or by telephone with the lot number and expiration date accompanying any request and if such products are returned within six months prior to or until twelve months following, the products’ expiration date.  The Company estimates and recognizes an accrued provision for product returns as a percentage of gross sales based upon historical experience.  The product return reserve is estimated using a historical lag period, which is the time between when the product is sold and when it is ultimately returned, and estimated return rates which may be adjusted based on various assumptions including changes to internal policies and procedures, changes in business practices, and commercial terms with customers, competitive position of each product, amount of inventory in the wholesaler supply chain, the introduction of new products, and changes in market sales information.  The Company also considers other factors, including significant market changes which may impact future expected returns, and actual product returns.  The Company monitors actual returns on a quarterly basis and may record specific provisions for returns it believes are not covered by historical percentages.

Shelf-Stock Adjustments

Based upon competitive market conditions, the Company may reduce the selling price of certain Global Division products. The Company may issue a credit against the sales amount to a customer based upon their remaining inventory of the product in question, provided the customer agrees to continue to make future purchases of product from the Company. This type of customer credit is referred to as a shelf-stock adjustment, which is the difference between the sales price and the revised lower sales price, multiplied by an estimate of the number of product units on hand at a given date. Decreases in selling prices are discretionary decisions made by the Company in response to market conditions, including estimated launch dates of competing products and declines in market price.  The Company records an estimate for shelf-stock adjustments in the period it agrees to grant such a credit memo to a customer.

Medicaid and Other Government Pricing Programs

As required by law, the Company provides a rebate on drugs dispensed under the Medicaid program, Medicare Part D, TRICARE, and other U.S. government pricing programs. The Company determines its estimated government rebate accrual primarily based on historical experience of claims submitted by the various states and other jurisdictions and any new information regarding changes in the various programs which may impact the Company’s estimate of government rebates. In determining the appropriate accrual amount, the Company considers historical payment rates and processing lag for outstanding claims and payments. The Company records estimates for government rebates as a deduction from gross sales, with a corresponding adjustment to accrued liabilities.

Cash Discounts

The Company offers cash discounts to its customers, generally 2% of the gross selling price, as an incentive for paying within invoice terms, which generally range from 30 to 90 days. An estimate of cash discounts is recorded in the same period when revenue is recognized.

Rx Partner and OTC Partner:

The Rx Partner and OTC Partner contracts include revenue recognized under alliance and collaboration agreements between the Company and unrelated third-party pharmaceutical companies. The Company has entered into these alliance agreements to develop marketing and/or distribution relationships with its partners to fully leverage its technology platform.

The Rx Partners and OTC Partners alliance agreements obligate the Company to deliver multiple goods and/or services over extended periods. Such deliverables include manufactured pharmaceutical products, exclusive and semi-exclusive marketing rights, distribution licenses, and research and development services.  In exchange for these deliverables the Company receives payments from its agreement partners for product shipments and research and development services, and may also receive other payments including royalty, profit sharing, upfront, and periodic milestone payments.  Revenue received from the alliance agreement partners for product shipments under these agreements is not subject to deductions for chargebacks, rebates, product returns, and other pricing adjustments.  Royalty and profit sharing amounts the Company receives under these agreements are calculated by the respective agreement partner, with such royalty and profit share amounts generally based upon estimates of net product sales or gross profit which include estimates of deductions for chargebacks, rebates, product returns, and other adjustments the alliance agreement partners may negotiate with their respective customers.  The Company records the agreement partner's adjustments to such estimated amounts in the period the agreement partner reports the amounts to the Company.

The Company applies the updated guidance of ASC 605-25 “Multiple Element Arrangements” to the Strategic Alliance Agreement with Teva Pharmaceuticals Curacao N.V., a subsidiary of Teva Pharmaceutical Industries Limited (“Teva Agreement”).  The Company looks to the underlying delivery of goods and/or services which give rise to the payment of consideration under the Teva Agreement to determine the appropriate revenue recognition.  The Company initially defers consideration received as a result of research and development-related activities performed under the Teva Agreement.  The Company recognizes deferred revenue on a straight-line basis over the expected period of performance for such services.  Consideration received as a result of the manufacture and delivery of products under the Teva Agreement is recognized at the time title and risk of loss passes to the customer which is generally when product is received by Teva.  The Company recognizes profit share revenue in the period earned.

OTC Partner revenue is related to an agreement with Pfizer Inc. (formerly Wyeth) with respect to the supply of over-the-counter pharmaceutical products.  The OTC Partner sales channel is no longer a core area of the business, and the over-the-counter pharmaceutical products the Company sells through this sales channel are older products which are only sold to Pfizer, and which are currently sold at a loss.  Finally, the manufacturing of the over-the-counter pharmaceutical products is the Company’s only continuing obligation under this agreement with Pfizer.  In order to avoid deferring the losses incurred upon shipment of these products to Pfizer, Inc., the Company recognizes revenue, and the associated manufacturing costs, at the time title and risk of loss passes to Pfizer which is generally when the product is shipped.  The Company recognizes profit share revenue in the period earned.

Research Partner:

The Research Partner contract includes revenue recognized under development agreements with unrelated third-party pharmaceutical companies.  The development agreements generally obligate the Company to provide research and development services over multiple periods. In exchange for this service, the Company received upfront payments upon signing of each development agreement and is eligible to receive contingent milestone payments, based upon the achievement of contractually specified events.  Additionally, the Company may also receive royalty payments from the sale, if any, of a successfully developed and commercialized product under one of these development agreements.  The Company recognizes revenue received from the provision of research and development services, including the upfront payment and the milestone payments received before January 1, 2011 on a straight line basis over the expected period of performance of the research and development services.  Revenue received from the achievement of contingent research and development milestones after January 1, 2011 will be recognized currently in the period such payment is earned.  Royalty fee income, if any, will be recognized as current period revenue when earned.

Promotional Partner:

The Promotional Partner contract includes revenue recognized under a promotional services agreement with an unrelated third-party pharmaceutical company.  The promotional services agreement obligated the Company to provide physician detailing sales calls services to promote certain of the unrelated third-party company’s branded drug products.  The Company received service fee revenue in exchange for providing this service.  The Company recognized revenue from providing physician detailing sales calls services as the services were provided. The Company’s obligation to provide physician detailing sales calls under the promotional services agreement ended on June 30, 2012.
Shipping and Handling Cost, Policy [Policy Text Block] 
Shipping and Handling Fees and Costs

Shipping and handling fees related to sales transactions are recorded as selling expense.  Shipping costs were $1,425,000, $1,341,000 and $1,741,000 for the years ended December 31, 2012, 2011 and 2010, respectively.
Research and Development Expense, Policy [Policy Text Block] 
Research and Development

Research and development activities are expensed as incurred and consist of self-funded research and development costs and costs associated with work performed by other participants under collaborative research and development agreements.
Derivatives, Policy [Policy Text Block] 
Derivatives

The Company does not engage in hedging transactions for trading or speculative purposes or to hedge exposure to currency or interest rate fluctuations. From time to time, the Company may engage in transactions that result in embedded derivatives (e.g. convertible debt securities).  In accordance with FASB ASC Topic 815, derivatives and hedging, the Company records the embedded derivative at fair value on the balance sheet and records any related gains or losses in current earnings in the statement of operations.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] 
Share-Based Compensation

The Company accounts for stock-based employee compensation arrangements in accordance with provisions of FASB ASC Topic 718, stock compensation.  Under FASB ASC Topic 718, the Company recognizes the grant date fair value of stock-based employee compensation as expense on a straight-line basis over the vesting period of the grant.  The Company uses the Black Scholes option pricing model to determine the grant date fair value of employee stock options; the fair value of restricted stock awards is equal to the closing price of the Company’s stock on the date such award was granted.
Income Tax, Policy [Policy Text Block] 
Income Taxes

The Company provides for income taxes using the asset and liability method as required by FASB ASC Topic 740, income taxes.  This approach recognizes the amount of federal, state, local taxes, and foreign taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for the future tax consequences of events recognized in the consolidated financial statements and income tax returns.  Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates in the period during which they are signed into law.  Under FASB ASC Topic 740, a valuation allowance is required when it is more likely than not all or some portion of the deferred tax assets will not be realized through generating sufficient future taxable income.

FASB ASC Topic 740, Sub-topic 10, tax positions, defines the criterion an individual tax position must meet for any part of the benefit of the tax position to be recognized in financial statements prepared in conformity with generally accepted accounting principles. Under FASB ASC Topic 740, Sub-topic 10, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the tax position. The tax benefits recognized in the financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Additionally, FASB ASC Topic 740, Sub-topic 10 provides guidance on measurement, de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.  In accordance with the disclosure requirements of FASB ASC Topic 740, Sub-topic 10, the Company’s policy on income statement classification of interest and penalties related to income tax obligations is to include such items as part of total interest expense and other expense, respectively.
Earnings Per Share, Policy [Policy Text Block] 
Earnings per Share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period.  Diluted earnings per share is computed by dividing net income by the weighted average number of common shares adjusted for the dilutive effect of common stock equivalents outstanding during the period.
Comprehensive Income, Policy [Policy Text Block] 
Other Comprehensive Income

The Company follows the provisions of FASB ASC Topic 220, comprehensive income, which establishes standards for the reporting and display of comprehensive income and its components.  Comprehensive income is defined to include all changes in equity during a period except those resulting from investments by owners and distributions to owners.  The Company recorded foreign currency translation gains and losses, which are reported as comprehensive income.  Foreign currency translation gains (losses) for the years ended December 31, 2012, 2011 and 2010 were $3,520,000, $(1,087,000) and $3,335,000, respectively.
Deferred Charges, Policy [Policy Text Block] 
Deferred Financing Costs

The Company capitalizes direct costs incurred with obtaining debt financing, which are included in other assets on the consolidated balance sheet. Deferred financing costs, including costs incurred in obtaining debt financing, are amortized to interest expense over the term of the underlying debt on a straight-line basis, which approximates the effective interest method.  The Company recognized amortization of $30,000, $28,000 and $25,000, in the years ended December 31, 2012, 2011, and 2010, respectively.
Foreign Currency Transactions and Translations Policy [Policy Text Block] 
Foreign Currency Translation

The Company translates the assets and liabilities of the Taiwan dollar functional currency of its majority-owned affiliate Prohealth Biotechnology, Inc. and its wholly-owned subsidiary Impax Laboratories (Taiwan), Inc. into the U.S. dollar reporting currency using exchange rates in effect at the end of each reporting period.  The revenue and expense of these entities are translated using an average of the rates in effect during the reporting period.  Gains and losses from these translations are recorded as currency translation adjustments included in the consolidated statements of comprehensive income and the consolidated statements of changes in shareholders’ equity.
Note 2 - Summary of Significant Accounting Policies (Tables)
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]
Percent of Total Accounts Receivable
 
2012
   
2011
   
2010
 
                   
Customer #1
    31.9 %     30.4 %     15.0 %
Customer #2
    23.3 %     12.9 %     18.4 %
Customer #3
    18.4 %     25.7 %     28.3 %
Customer #4
    -- %     8.6 %     13.5 %
Customer #5
    -- %     -- %     2.9 %
Customer #6
    3.7 %     2.5 %     -- %
Customer #7
    3.1 %     -- %     -- %
Total Five largest customers
    80.4 %     80.1 %     78.1 %
Percent of Gross Revenues
 
2012
   
2011
   
2010
 
                   
Customer #1
    25.2 %     19.6 %     14.1 %
Customer #2
    21.8 %     15.9 %     19.9 %
Customer #3
    15.1 %     19.4 %     14.2 %
Customer #4
    9.2 %     12.4 %     6.5 %
Customer #5
    2.9 %     2.4 %     3.4 %
Total Five largest customers
    74.2 %     69.7 %     58.1 %
Note 4 - Investments (Tables)
Held-to-maturity Securities [Table Text Block]
(in $000’s)
 
Amortized
   
Gross
Unrecognized
   
Gross
Unrecognized
   
Fair
 
December 31, 2012
 
Cost
   
Gains
   
Losses
   
Value
 
Commercial paper
  $ 70,140     $ 28     $ --     $ 70,168  
Government sponsored enterprise obligations
    9,994       4       --       9,998  
Corporate bonds
    76,622       23       (12 )     76,633  
Total short-term investments
  $ 156,756     $ 55     $ (12 )   $ 156,799  
(in $000’s)
 
Amortized
   
Gross
Unrecognized
   
Gross
Unrecognized
   
Fair
 
December 31, 2011
 
Cost
   
Gains
   
Losses
   
Value
 
Commercial paper
  $ 69,341     $ 17     $ (5 )   $ 69,353  
Government sponsored enterprise obligations
    100,928       32       (13 )     100,947  
Corporate bonds
    58,219       5       (33 )     58,191  
Certificates of deposit
    13,507       1       (1 )     13,507  
Total short-term investments
  $ 241,995     $ 55     $ (52 )   $ 241,998  
Note 5 - Accounts Receivable (Tables)
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] 
   
December 31,
   
December 31,
 
(in $000’s)
 
2012
   
2011
 
Gross accounts receivable
  $ 167,696     $ 210,557  
Less:  Rebate reserve
    (46,011 )     (29,164 )
Less:  Chargeback reserve
    (18,410 )     (22,161 )
Less:  Other deductions
    (11,026 )     (5,459 )
Accounts receivable, net
  $ 92,249     $ 153,773  
Allowance for Credit Losses on Financing Receivables [Table Text Block] 
(in $000’s)
 
December 31,
   
December 31,
   
December 31,
 
Rebate reserve
 
2012
   
2011
   
2010
 
                   
Beginning balance
  $ 29,164     $ 23,547     $ 40,443  
Provision recorded during the period
    111,099       79,697       103,052  
Credits issued during the period
    (94,252 )     (74,080 )     (119,948 )
Ending balance
  $ 46,011     $ 29,164     $ 23,547  
(in $000’s)
 
December 31,
   
December 31,
   
December 31,
 
Chargeback reserve
 
2012
   
2011
   
2010
 
                   
Beginning balance
  $ 22,161     $ 14,918     $ 21,448  
Provision recorded during the period
    209,452       166,504       181,566  
Credits issued during the period
    (213,203 )     (159,261 )     (188,096 )
Ending balance
  $ 18,410     $ 22,161     $ 14,918  
Note 6 - Inventory (Tables)
Schedule of Inventory, Current [Table Text Block]
(in $000’s)
 
December 31,
2012
   
December 31,
2011
 
Raw materials
  $ 31,884     $ 32,454  
Work in process
    4,005       5,046  
Finished goods
    60,956       24,947  
Total inventory
    96,845       62,447  
                 
Less: Non-current inventory
    7,081       8,270  
Total inventory-current
  $ 89,764     $ 54,177  
Note 7 - Property, Plant and Equipment (Tables)
Schedule of Property, Plant and Equipment [Table Text Block]
(in $000’s)
 
December 31,
2012
   
December 31,
2011
 
Land
  $ 5,773     $ 5,773  
Buildings and improvements
    130,995       86,084  
Equipment
    110,353       75,589  
Office furniture and equipment
    10,558       8,910  
Construction-in-progress
    9,843       16,602  
Property, plant and equipment, gross
  $ 267,522     $ 192,958  
                 
Less: Accumulated depreciation
    (86,764 )     (74,800 )
Property, plant and equipment, net
  $ 180,758     $ 118,158  
Note 8 - Goodwill and Intangible Assets (Tables)
Schedule of Finite-Lived Intangible Assets [Table Text Block] 
(in $000’s)
 
Initial
   
Accumulated
   
Carrying
 
December 31, 2012
 
Cost
   
Amortization
   
Value
 
Amortized intangible assets:
                 
Zomig® product rights
  $ 45,096     $ (17,987 )   $ 27,109  
Tolmar product rights
    19,450       (859 )     18,591  
Other product rights
    2,250       ---       2,250  
Total intangible assets
  $ 66,796     $ (18,846 )   $ 47,950  
(in $000’s)
 
Initial
   
Accumulated
   
Carrying
 
December 31, 2011
 
Cost
   
Amortization
   
Value
 
Amortized intangible assets:
                 
Zomig® product rights
  $ ---     $ ---     $ ---  
Tolmar product rights
    ---       ---       ---  
Other product rights
    2,250       ---       2,250  
Total intangible assets
  $ 2,250     $ ---     $ 2,250  
Schedule of Expected Amortization Expense [Table Text Block] 
(in $000s)
 
Amortization
Expense
 
2013
  $ 14,733  
2014
    4,851  
2015
    4,851  
2016
    4,851  
2017
    4,776  
Thereafter
    11,638  
Totals
  $ 45,700  
Note 9 - Accrued Expenses (Tables)
Schedule of Accrued Liabilities [Table Text Block] 
(in $000’s)
 
December 31,
2012
   
December 31,
2011
 
Payroll-related expenses
  $ 22,553     $ 16,975  
Product returns
    23,440       24,101  
Government rebates
    33,794       17,479  
Legal and professional fees
    3,993       5,071  
Clinical trial costs
    1,610       974  
Income taxes payable
    1,541       1,126  
Physician detailing sales force fees
    1,471       1,655  
Other
    4,340       2,735  
Total accrued expenses
  $ 92,742     $ 70,116  
Schedule of Product Warranty Liability [Table Text Block] 
(in $000's)
 
December 31,
   
December 31,
   
December 31,
 
Returns Reserve
 
2012
   
2011
   
2010
 
                   
Beginning balance
  $ 24,101     $ 33,755     $ 22,114  
Provision related to sales recorded in the period
    3,003       688       15,821  
Credits issued during the period
    (3,664 )     (10,342 )     (4,180 )
Ending balance
  $ 23,440     $ 24,101     $ 33,755  
Note 10 - Income Taxes (Tables)
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] 
   
For the Years Ended December 31,
 
(in $000’s)
 
2012
   
2011
   
2010
 
Current:
                 
Federal taxes
  $ 49,636     $ 23,500     $ 96,560  
State taxes
    1,721       1,034       10,471  
Foreign taxes
    453       1,154       0  
Total current tax expense
    51,810       25,688       107,031  
                         
Deferred:
                       
Federal taxes
  $ (21,650 )   $ 5,646     $ 27,138  
State taxes
    (2,537 )     592       9,140  
Foreign taxes
    (185 )     690       212  
Total deferred tax (benefit) expense
    (24,372 )     6,928       36,490  
                         
Provision for income taxes
  $ 27,438     $ 32,616     $ 143,521  
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] 
   
For the Years Ended December 31,
 
(in $000’s)
 
2012
   
2011
   
2010
 
Income before income taxes
  $ 83,311           $ 98,111           $ 393,939        
Tax provision at the federal statutory rate
    29,159       35.0 %     34,339       35.0 %     137,879       35.0 %
                                                 
Increase (decrease) in tax rate resulting from:
                                               
Tax rate differential and permanent items on foreign income
    (1,259 )     (1.5 )%     185       0.2 %     937       0.2 %
State income taxes, net of federal benefit
    346       0.4 %     2,113       2.1 %     13,780       3.5 %
Federal research and development credits
    ---       - %     (2,100 )     (2.2 )%     (2,700 )     (0.7 )%
Share-based compensation
    326       0.4 %     92       0.1 %     979       0.3 %
Executive compensation
    825       1.0 %     586       0.6 %     560       0.1 %
Domestic manufacturing deduction
    (2,010 )     (2.4 )%     (2,187 )     (2.2 )%     (6,563 )     (1.7 )%
Other permanent book/tax differences
    (185 )     (0.2 )%     (119 )     (0.1 )%     (407 )     (0.1 )%
Provision for uncertain tax positions
    801       0.9 %     178       0.2 %     280       0.1 %
Revision of prior years’ estimates
    (392 )     (0.5 )%     (309 )     (0.3 )%     (1,203 )     (0.3 )%
Other, net
    (173 )     (0.2 )%     (162 )     (0.2 )%     (21 )     -- %
Provision for income taxes
  $ 27,438       32.9 %   $ 32,616       33.2 %   $ 143,521       36.4 %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] 
   
December 31,
 
(in $000’s)
 
2012
   
2011
 
Deferred tax assets:
           
Deferred revenues
  $ 4,545     $ 13,225  
Accrued expenses
    38,839       27,382  
Inventory reserves
    2,630       2,439  
Net operating loss carryforwards
    149       372  
Depreciation and amortization
    428       340  
Acquired product rights and intangibles
    7,284       --  
Capitalized legal fees
    6,981       --  
R&D credit carryforwards
    2,062       --  
Share based compensation expense
    3,446       1,964  
Other
    850       959  
Deferred tax assets
  $ 67,214     $ 46,681  
                 
Deferred tax liabilities:
               
Tax depreciation and amortization in excess of book amounts
  $ 3,544     $ 4,697  
Deferred manufacturing costs
    80       3,872  
Other
    1,810       700  
Deferred tax liabilities
  $ 5,434     $ 9,269  
                 
Deferred tax assets, net
  $ 61,780     $ 37,412  
   
December 31,
 
(in $000’s)
 
2012
   
2011
 
Current deferred tax assets
  $ 44,196     $ 39,104  
Current deferred tax liabilities
    (1,810 )     (1,251 )
Current deferred tax assets, net
    42,386       37,853  
                 
Non-current deferred tax assets
    23,018       7,577  
Non-current deferred tax liabilities
    (3,624 )     (8,018 )
Non-current deferred tax assets (liabilities), net
    19,394       (441 )
                 
Deferred tax assets, net
  $ 61,780     $ 37,412  
Summary of Operating Loss Carryforwards [Table Text Block] 
(in $000’s)
     
Year
 
Amount
 
       
2023
  $ 2,288  
Summary of Income Tax Contingencies [Table Text Block] 
(in $000’s)
     
Balance at January 1, 2011
  $ 1,580  
Increase based on prior year tax positions
    24  
Increase based on current year tax positions
    154  
Interest expense
    84  
Balance at December 31, 2011
  $ 1,842  
Increase based on prior year tax positions
    937  
Increase based on current year tax positions
    216  
Settlements
    (882 )
Interest expense
    534  
Balance at December 31, 2012
  $ 2,647  
Note 12 - Alliance and Collaborative Agreements (Tables)
Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions [Table Text Block] 
(in $000s)
 
Deferred Revenue
Recognition
 
2013
  $ 1,309  
2014
    1,087  
2015
    ---  
2016
    ---  
2017
    ---  
Thereafter
    ---  
Totals
  $ 2,396  
Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions [Table Text Block] 
   
For the Years Ended December 31,
   
Inception
 
(in $000’s)
                   
Through
 
Deferred revenue
 
2012
   
2011
   
2010
   
Dec 31, 2009
 
Beginning balance
  $ 3,705     $ 4,410     $ 202,032     $ ---  
                                 
Additions
    ---       551       10,096       379,196  
                                 
Less:
                               
Amounts recognized
    (1,309 )     (1,256 )     (11,278 )     (177,164 )
Accounting adjustment
    ---       ---       (196,440 )     ---  
Ending deferred revenue
  $ 2,396     $ 3,705     $ 4,410     $ 202,032  
(in $000’s)
 
For the Years Ended December 31,
   
Inception
Through
 
Deferred product manufacturing costs
 
2012
   
2011
   
2010
   
Dec 31, 2009
 
Beginning balance
  $ ---     $ ---     $ 94,040     $ ---  
                                 
Additions
    ---       ---       7,416       175,565  
                                 
Less:
                               
Amount recognized
    ---       ---       (6,030 )     (81,525 )
Accounting adjustment
    ---       ---       (95,426 )     ---  
Ending deferred product manufacturing costs
  $ ---     $ ---     $ ---     $ 94,040  
Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions [Table Text Block] 
(in $000’s)
 
For the Years Ended December 31,
   
Inception
Through
 
Deferred revenue
 
2012
   
2011
   
2010
   
Dec 31, 2009
 
Beginning balance
  $ 9,683     $ 11,382     $ 16,162     $ ---  
                                 
Additions
    1,528       2,018       4,108       93,904  
Less amounts recognized
    (11,211 )     (3,717 )     (8,888 )     (77,742 )
Ending deferred revenue
  $ ---     $ 9,683     $ 11,382     $ 16,162  
(in $000’s)
 
For the Years Ended December 31,
   
Inception
Through
 
Deferred product manufacturing costs
 
2012
   
2011
   
2010
   
Dec 31, 2009
 
Beginning balance
  $ 8,846     $ 10,235     $ 14,203     $ ---  
                                 
Additions
    2,638       1,721       3,223       77,870  
Less: amount recognized
    (11,484 )     (3,110 )     (7,191 )     (63,667 )
Ending deferred product manufacturing costs
  $ ---     $ 8,846     $ 10,235     $ 14,203  
Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions [Table Text Block] 
(in $000s)
 
Deferred
Revenue
Recognition
 
2013
  $ 3,650  
2014
    ---  
2015
    ---  
2016
    ---  
2017
    ---  
Thereafter
    ---  
Total
  $ 3,650  
Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions [Table Text Block] 
(in $000’s)
 
Years Ended December 31,
   
Inception
Through
 
Deferred revenue
 
2012
   
2011
   
2010
   
Dec 31, 2009
 
Beginning balance
  $ 12,410     $ 25,948     $ 39,487     $ ---  
                                 
Additions
    ---       ---       ---       52,000  
Less amount recognized
    (8,760 )     (13,538 )     (13,539 )     (12,513 )
Ending deferred revenue
  $ 3,650     $ 12,410     $ 25,948     $ 39,487  
Note 14 - Share-Based Compensation (Tables)
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] 
Stock Options
 
Number of Shares
Under Option
   
Weighted-
Average
Exercise
Price
per Share
 
Outstanding at December 31, 2009
    8,229,818     $ 9.87  
Options granted
    405,600       20.22  
Options exercised
    (1,900,549 )     8.62  
Options forfeited
    (220,193 )     11.03  
Outstanding at December 31, 2010
    6,514,676       10.84  
Options granted
    424,000       24.78  
Options exercised
    (1,605,043 )     11.02  
Options forfeited
    (260,536 )     9.73  
Outstanding at December 31, 2011
    5,073,097       11.76  
Options granted
    278,500       20.90  
Options exercised
    (1,060,746 )     11.16  
Options forfeited
    (113,630 )     16.69  
Outstanding at December 31, 2012
    4,177,221       12.72  
                 
Options exercisable at December 31, 2012
    3,143,431     $ 11.30  
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] 
Restricted Stock Awards
 
Non-Vested
Restricted
Stock
Awards
   
Weighted-
Average
Grant Date
Fair Value
 
Non-vested at December 31, 2009
    1,152,923     $ 7.72  
Granted
    727,556       18.87  
Vested
    (368,825 )     8.61  
Forfeited
    (76,895 )     10.17  
Non-vested at December 31, 2010
    1,434,759       12.93  
Granted
    868,549       20.73  
Vested
    (452,861 )     11.81  
Forfeited
    (186,536 )     13.71  
Non-vested at December 31, 2011
    1,663,911       17.20  
Granted
    1,015,937       23.41  
Vested
    (585,392 )     14.72  
Forfeited
    (139,886 )     19.08  
Non-vested at December 31, 2012
    1,954,570     $ 20.97  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] 
   
For the Years Ended December 31,
   
2012
 
2011
 
2010
Volatility (range)
  48.5% - 49.3%   50.7% - 52.7%   55.1% - 56.4%
Volatility (weighted average)
    49.1%       52.3%       55.9%  
Risk-free interest rate (range)
  0.9% - 1.0%   1.5% - 2.3%   1.5% - 3.1%
Risk-free interest rate (weighted average)
    1.0%       2.1%       2.3%  
Dividend yield
    0%       0%       0%  
Expected life (years)
    6.19       6.20       6.21  
Weighted average grant date fair value
    $9.93       $12.85       $11.08  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] 
   
For the Years Ended December 31,
 
(in $000’s)
 
2012
   
2011
   
2010
 
Cost of revenues
  $ 2,405     $ 1,917     $ 2,377  
Research and development
    4,658       4,119       3,466  
Selling, general and administrative
    9,240       6,649       4,871  
Total
  $ 16,303     $ 12,685     $ 10,714  
Note 16 - Earnings Per Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
   
For the Years Ended December 31,
 
(in $000’s, except share and per share amounts)
 
2012
   
2011
   
2010
 
Numerator:
                 
Net income
  $ 55,873     $ 65,495     $ 250,418  
                         
Denominator:
                       
Weighted average common shares outstanding
    65,660,271       64,126,855       62,037,908  
Effect of dilutive stock options and restricted stock
    2,744,280       3,193,134       3,527,224  
Diluted weighted average common shares outstanding
    68,404,551       67,319,989       65,565,132  
                         
Basic net income per share
  $ 0.85     $ 1.02     $ 4.04  
Diluted net income per share
  $ 0.82     $ 0.97     $ 3.82  
Note 17 - Segment Information (Tables)
Schedule of Segment Reporting Information, by Segment [Table Text Block]
(in $000’s)
 
Global
   
Impax
   
Corporate
   
Total
 
Year Ended December 31, 2012
 
Division
   
Division
   
and Other
   
Company
 
Revenues, net
  $ 448,682     $ 133,010     $ --     $ 581,692  
Cost of revenues
    229,355       69,783       --       299,138  
Research and development
    48,540       32,780       --       81,320  
Patent litigation
    9,772       --       --       9,772  
Selling, general and administrative
    15,377       37,896       55,197       108,470  
Income (loss) before income taxes
  $ 145,638     $ (7,449 )   $ (54,878 )   $ 83,311  
Year Ended December 31, 2011
 
Global
Division
   
Impax
Division
   
Corporate
and Other
   
Total
Company
 
Revenues, net
  $ 491,710     $ 21,209     $ --     $ 512,919  
Cost of revenues
    242,713       11,911       --       254,624  
Research and development
    46,169       36,532       --       82,701  
Patent litigation
    7,506       --       --       7,506  
Selling, general and administrative
    11,313       7,435       49,729       68,477  
Income (loss) before income taxes
  $ 184,009     $ (34,669 )   $ (51,229 )   $ 98,111  
Year Ended December 31, 2010
 
Global
Division
   
Impax
Division
   
Corporate
and Other
   
Total
Company
 
Revenues, net
  $ 864,667     $ 14,842     $ --     $ 879,509  
Cost of revenues
    328,163       12,083       --       340,246  
Research and development
    44,325       41,898       --       86,223  
Patent litigation
    6,384       --       --       6,384  
Selling, general and administrative
    14,625       3,510       35,197       53,332  
Income (loss) before income taxes
  $ 471,170     $ (42,649 )   $ (34,582 )   $ 393,939  
Note 18 - Commitments and Contingencies (Tables)
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
(in $000s)
 
Years Ended
December 31,
 
2013
  $ 2,020  
2014
    1,747  
2015
    933  
2016
    404  
2017
    316  
Thereafter
    2,657  
Total minimum lease payments
  $ 8,077  
Note 21 - Supplementary Financial Information (unaudited) (Tables)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2012
Quarterly Periods in 2012 [Member]
Dec. 31, 2011
Quarterly Periods in 2011 [Member]
Schedule of Quarterly Financial Information [Table Text Block]
 
Text Block 
Text Block 
Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block]
Text Block 
 
 
Schedule of Quarterly Financial Information [Table Text Block] 
    2012 Quarters Ended:  
(in $000’s except shares and per share amounts)
 
March 31
   
June 30
   
September 30
   
December 31
 
Revenue:
                       
Global Product sales, gross
  $ 185,671     $ 223,449     $ 178,628     $ 177,830  
Less:
                               
Chargebacks
    39,155       50,670       47,366       59,460  
Rebates
    20,589       26,847       24,285       22,995  
Product Returns
    (329 )     948       304       (1,730 )
Other credits
    10,045       18,552       7,212       17,334  
Global Product sales, net
    116,211       126,432       99,461       79,771  
                                 
Rx Partner
    2,978       2,466       (792 )     1,793  
Research Partner
    3,385       3,384       996       995  
OTC Partner
    691       783       763       9,365  
Global Division revenues, net
    123,265       133,065       100,428       91,924  
                                 
Impax Product sales, gross
    --       40,818       63,909       65,141  
Less:
                               
Chargebacks
    --       4,449       8,308       44  
Rebates
    --       3,714       5,113       7,556  
Product Returns
    --       878       1,374       1,558  
Other credits
    --       3,683       5,785       9,285  
Impax Product sales, net
    --       28,094       43,329       46,698  
 
                               
Rx Partner
    1,438       1,437       1,500       2,125  
Research Partner
    330       329       330       330  
Promotional Partner
    3,535       3,535       --       --  
Impax Division revenues, net
    5,303       33,395       45,159       49,153  
                                 
Total revenues
    128,568       166,460       145,587       141,077  
                                 
Gross profit
    62,553       77,823       78,027       64,151  
                                 
Net income
  $ 12,365     $ 18,672     $ 20,037     $ 4,799  
                                 
Net income per share (basic)
  $ 0.19     $ 0.29     $ 0.30     $ 0.07  
Net income per share (diluted)
  $ 0.18     $ 0.27     $ 0.29     $ 0.07  
                                 
Weighted Average: common shares outstanding:
                               
Basic
    65,122,240       65,482,700       65,797,722       66,217,421  
Diluted
    67,907,263       67,954,573       68,366,849       68,419,888  
Schedule of Quarterly Financial Information [Table Text Block] 
   
2011 Quarters Ended:
 
(in $000’s except shares and per share amounts)
 
March 31
   
June 30
   
September 30
   
December 31
 
Revenue:
                       
Global Product sales, gross
  $ 151,832     $ 181,972     $ 169,519     $ 225,122  
Less:
                               
Chargebacks
    35,216       39,395       39,690       52,203  
Rebates
    12,709       17,392       18,014       21,058  
Product Returns
    2,706       1,799       552       (4,369 )
Other credits
    8,863       12,261       13,602       13,536  
Global Product sales, net
    92,338       111,125       97,661       142,694  
                                 
Rx Partner
    2,682       4,866       12,621       6,164  
Research Partner
    6,385       3,384       3,385       3,384  
OTC Partner
    1,943       1,184       879       1,015  
Global Division revenues, net
    103,348       120,559       114,546       153,257  
                                 
Rx Partner
    1,438       1,437       1,438       1,437  
Research Partner
    330       329       330       330  
Promotional Partner
    3,535       3,535       3,535       3,535  
Impax Division revenues, net
    5,303       5,301       5,303       5,302  
                                 
Total revenues
    108,651       125,860       119,849       158,559  
                                 
Gross profit
    58,537       59,702       62,654       77,402  
                                 
Net income
  $ 13,863     $ 12,550     $ 17,220     $ 21,862  
                                 
Net income per share (basic)
  $ 0.22     $ 0.20     $ 0.27     $ 0.34  
Net income per share (diluted)
  $ 0.21     $ 0.19     $ 0.26     $ 0.33  
                                 
Weighted Average: common shares outstanding:
                               
Basic
    63,390,527       64,024,483       64,387,413       64,687,753  
Diluted
    67,044,266       67,654,047       66,986,758       67,029,407  
Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block] 
   
Three Months Ended:
   
Twelve
Months Ended
 
(in $000’s except per share amounts)
 
March 31,
2010
   
June 30,
2010
   
September 30,
2010
   
December 31,
2010
   
December 31,
2010
 
                               
RX Partner revenue
                             
Pre-amendment principles
  $ 4,903     $ 5,802     $ 5,922     $ 5,628     $ 22,255  
Change
    (802 )     407       437       (1,855 )     (1,813 )
Post-amendment principles
  $ 4,101     $ 6,209     $ 6,359     $ 3,773     $ 20,442  
                                         
Cost of revenues
                                       
Pre-amendment principles
  $ 79,576     $ 68,892     $ 47,998     $ 48,498     $ 244,964  
Change
    282       1,104       (302 )     159       1,243  
Post-amendment principles
  $ 79,858     $ 69,996     $ 47,696     $ 48,657     $ 246,207  
                                         
Income before income taxes
                                       
Pre-amendment principles
  $ 210,997     $ 49,438     $ 21,882     $ 11,823     $ 294,140  
Change
    (1,084 )     (697 )     739       (2,014 )     (3,056 )
Post-amendment principles
  $ 209,913     $ 48,741     $ 22,621     $ 9,809     $ 291,084  
                                         
Net income
                                       
Pre-amendment principles
  $ 131,485     $ 31,348     $ 13,908     $ 7,515     $ 184,256  
Change
    (689 )     (443 )     470       (1,280 )     (1,942 )
Post-amendment principles
  $ 130,796     $ 30,905     $ 14,378     $ 6,235     $ 182,314  
                                         
Earnings per share-basic
                                       
Pre-amendment principles
  $ 2.16     $ 0.51     $ 0.22     $ 0.12     $ 2.97  
Change
    (0.02 )     (0.01 )     0.01       (0.02 )     (0.03 )
Post-amendment principles
  $ 2.14     $ 0.50     $ 0.23     $ 0.10     $ 2.94  
Note 1 - The Company (Detail)
12 Months Ended
Dec. 31, 2012
Number of Reportable Segments
2 
Number Of Channels
4 
Number of Internally Developed Late Stage Branded Pharmaceutical Product Candidate
1 
Number Of Properties
5 
Number Of Leased Properties
2 
Note 2 - Summary of Significant Accounting Policies (Detail) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Noncontrolling Interest, Ownership Percentage by Parent
57.54% 
 
 
Top Ten Products Percentage of Total Revenues
70.00% 
76.00% 
83.00% 
Percent of Product Sales Net
100.00% 
 
 
Cash Discount Discount Rate
2.00% 
 
 
Shipping, Handling and Transportation Costs (in Dollars)
$ 1,425,000 
$ 1,341,000 
$ 1,741,000 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax (in Dollars)
3,520,000 
(1,087,000)
3,335,000 
Amortization of Financing Costs (in Dollars)
$ 30,000 
$ 28,000 
$ 25,000 
Building [Member]
 
 
 
Property, Plant and Equipment, Useful Life
40 years 
 
 
Building Improvements [Member]
 
 
 
Property, Plant and Equipment, Useful Life
15 years 
 
 
Equipment [Member] |
Minimum [Member]
 
 
 
Property, Plant and Equipment, Useful Life
7 years 
 
 
Equipment [Member] |
Maximum [Member]
 
 
 
Property, Plant and Equipment, Useful Life
10 years 
 
 
Office Furniture and Equipment [Member] |
Minimum [Member]
 
 
 
Property, Plant and Equipment, Useful Life
3 years 
 
 
Office Furniture and Equipment [Member] |
Maximum [Member]
 
 
 
Property, Plant and Equipment, Useful Life
7 years 
 
 
Minimum [Member]
 
 
 
Cash Discount Invoice Terms
30 days 
 
 
Maximum [Member]
 
 
 
Cash Discount Invoice Terms
90 days 
 
 
Note 2 - Summary of Significant Accounting Policies (Detail) - Percentage of total accounts receivable and gross revenues
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Percent of Total Accounts Receivable
80.40% 
80.10% 
78.10% 
Percent of Gross Revenues
74.20% 
69.70% 
58.10% 
Customer 1 [Member]
 
 
 
Percent of Total Accounts Receivable
31.90% 
30.40% 
15.00% 
Percent of Gross Revenues
25.20% 
19.60% 
14.10% 
Customer 2 [Member]
 
 
 
Percent of Total Accounts Receivable
23.30% 
12.90% 
18.40% 
Percent of Gross Revenues
21.80% 
15.90% 
19.90% 
Customer 3 [Member]
 
 
 
Percent of Total Accounts Receivable
18.40% 
25.70% 
28.30% 
Percent of Gross Revenues
15.10% 
19.40% 
14.20% 
Customer 4 [Member]
 
 
 
Percent of Total Accounts Receivable
 
8.60% 
13.50% 
Percent of Gross Revenues
9.20% 
12.40% 
6.50% 
Customer 5 [Member]
 
 
 
Percent of Total Accounts Receivable
 
 
2.90% 
Percent of Gross Revenues
2.90% 
2.40% 
3.40% 
Customer 6 [Member]
 
 
 
Percent of Total Accounts Receivable
3.70% 
2.50% 
 
Customer 7 [Member]
 
 
 
Percent of Total Accounts Receivable
3.10% 
 
 
Note 4 - Investments (Detail) - A summary of short-term investments (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Amortized Cost
$ 156,756 
$ 241,995 
Gross Unrecognized Gains
55 
55 
Gross Unrecognized Losses
(12)
(52)
Fair Value
156,799 
241,998 
Commercial Paper [Member]
 
 
Amortized Cost
70,140 
69,341 
Gross Unrecognized Gains
28 
17 
Gross Unrecognized Losses
 
(5)
Fair Value
70,168 
69,353 
Government Sponsored Enterprise Obligations [Member]
 
 
Amortized Cost
9,994 
100,928 
Gross Unrecognized Gains
4 
32 
Gross Unrecognized Losses
 
(13)
Fair Value
9,998 
100,947 
Corporate Bonds [Member]
 
 
Amortized Cost
76,622 
58,219 
Gross Unrecognized Gains
23 
5 
Gross Unrecognized Losses
(12)
(33)
Fair Value
76,633 
58,191 
Certificates of Deposit [Member]
 
 
Amortized Cost
 
13,507 
Gross Unrecognized Gains
 
1 
Gross Unrecognized Losses
 
(1)
Fair Value
 
$ 13,507 
Note 5 - Accounts Receivable (Detail) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Allowance for Doubtful Accounts Receivable, Current
$ 553,000 
$ 612,000 
Note 5 - Accounts Receivable (Detail) - The composition of accounts receivable, net (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Gross accounts receivable
$ 167,696 
$ 210,557 
Less: Rebate reserve
(46,011)
(29,164)
Less: Chargeback reserve
(18,410)
(22,161)
Less: Other deductions
(11,026)
(5,459)
Accounts receivable, net
$ 92,249 
$ 153,773 
Note 5 - Accounts Receivable (Detail) - A roll forward of the rebate and chargeback reserves activity (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Ending balance
$ 18,410 
$ 22,161 
 
Ending balance
46,011 
29,164 
 
Rebate Reserve [Member]
 
 
 
Beginning balance
29,164 
23,547 
40,443 
Provision Recorded
111,099 
79,697 
103,052 
Credits Issued
(94,252)
(74,080)
(119,948)
Ending balance
46,011 
29,164 
23,547 
Chargeback Reserve [Member]
 
 
 
Provision Recorded
209,452 
166,504 
181,566 
Credits Issued
(213,203)
(159,261)
(188,096)
Ending balance
18,410 
22,161 
14,918 
Beginning balance
$ 22,161 
$ 14,918 
$ 21,448 
Note 6 - Inventory (Detail) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Raw Materials [Member]
Dec. 31, 2012
Finished Goods [Member]
Dec. 31, 2012
Unapproved Inventory [Member]
Dec. 31, 2011
Unapproved Inventory [Member]
Inventory Valuation Reserves
$ 5,231,000 
$ 5,533,000 
 
 
 
 
Inventory Turnover Period Minimum
 
 
3 years 
 
 
 
Inventory Turnover Period Maximum
 
 
5 years 
2 years 
 
 
Unapproved Product Inventory Net
 
 
 
 
$ 12,106,000 
$ 3,726,000 
Note 6 - Inventory (Detail) - Inventory, net of carrying value reserves (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Raw materials
$ 31,884 
$ 32,454 
Work in process
4,005 
5,046 
Finished goods
60,956 
24,947 
Total inventory
96,845 
62,447 
Less: Non-current inventory
7,081 
8,270 
Total inventory-current
$ 89,764 
$ 54,177 
Note 7 - Property, Plant and Equipment (Detail) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Depreciation
$ 15,982,000 
$ 14,911,000 
$ 12,649,000 
Note 7 - Property, Plant and Equipment (Detail) - Property, plant and equipment, net (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Land
$ 5,773 
$ 5,773 
Buildings and improvements
130,995 
86,084 
Equipment
110,353 
75,589 
Office furniture and equipment
10,558 
8,910 
Construction-in-progress
9,843 
16,602 
Property, plant and equipment, gross
267,522 
192,958 
Less: Accumulated depreciation
(86,764)
(74,800)
Property, plant and equipment, net
$ 180,758 
$ 118,158 
Note 8 - Goodwill and Intangible Assets (Detail) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Goodwill
$ 27,574,000 
$ 27,574,000 
 
Collaborative Arrangement Contingent Payments Received And Potentially To Be Received
 
 
12,000,000 
Other Accrued Liabilities, Current
4,340,000 
2,735,000 
 
Finite-Lived Intangible Assets, Gross
66,796,000 
2,250,000 
 
Research and Development Expense
81,320,000 
82,701,000 
86,223,000 
Amortization of Intangible Assets
18,846,000 
 
 
Zomig Product Rights Tablet [Member]
 
 
 
Finite-Lived Intangible Asset, Useful Life
14 months 
 
 
Zomig Product Rights Orally Disintegrating Tablet [Member]
 
 
 
Finite-Lived Intangible Asset, Useful Life
11 months 
 
 
Zomig Product Rights [Member]
 
 
 
Finite-Lived Intangible Assets, Gross
45,096,000 
 
 
Finite-Lived Intangible Asset, Useful Life
72 months 
 
 
Products Approved [Member] |
Tolmar Incorporated [Member]
 
 
 
Number Of Products
9 
 
 
Product Pending Approval [Member] |
Tolmar Incorporated [Member]
 
 
 
Number Of Products
2 
 
 
Minimum [Member] |
Tolmar Product Rights [Member]
 
 
 
Finite-Lived Intangible Asset, Useful Life
5 years 
 
 
Maximum [Member] |
Tolmar Product Rights [Member]
 
 
 
Finite-Lived Intangible Asset, Useful Life
12 years 
 
 
Astra Zeneca [Member]
 
 
 
Collaborative Arrangement Net Payment Made
83,760,000 
 
 
Collaborative Arrangement Quarterly Payments Made
130,000,000 
 
 
Collaborative Arrangement Contingent Payments Received And Potentially To Be Received
43,564,000 
 
 
Other Accrued Liabilities, Current
2,676,000 
 
 
Collaborative Arrangement Required Payment Net
86,436,000 
 
 
Finite-Lived Intangible Assets, Gross
45,096,000 
 
 
Prepaid Royalties
41,340,000 
 
 
Tolmar Incorporated [Member]
 
 
 
Finite-Lived Intangible Assets, Gross
19,450,000 
 
 
Number Of Products
11 
 
 
Collaborative Arrangement Up Front Payment
21,000,000 
 
 
Research and Development Expense
$ 1,550,000 
 
 
Note 8 - Goodwill and Intangible Assets (Detail) - Intangible assets (USD $)
Dec. 31, 2012
Dec. 31, 2011
Amortized intangible assets:
 
 
Initial cost
$ 66,796,000 
$ 2,250,000 
Accumulated amortization
(18,846,000)
 
Carrying value
47,950,000 
2,250,000 
Zomig Product Rights [Member]
 
 
Amortized intangible assets:
 
 
Initial cost
45,096,000 
 
Accumulated amortization
(17,987,000)
 
Carrying value
27,109,000 
 
Tolmar Product Rights [Member]
 
 
Amortized intangible assets:
 
 
Initial cost
19,450,000 
 
Accumulated amortization
(859,000)
 
Carrying value
18,591,000 
 
Other Product Rights [Member]
 
 
Amortized intangible assets:
 
 
Initial cost
2,250,000 
2,250,000 
Carrying value
$ 2,250,000 
$ 2,250,000 
Note 8 - Goodwill and Intangible Assets (Detail) - Expected amortization expense (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
2013
$ 14,733 
2014
4,851 
2015
4,851 
2016
4,851 
2017
4,776 
Thereafter
11,638 
Totals
$ 45,700 
Note 9 - Accrued Expenses (Detail) - The Company’s Accrued Expenses (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Payroll-related expenses
$ 22,553 
$ 16,975 
Product returns
23,440 
24,101 
Government rebates
33,794 
17,479 
Legal and professional fees
3,993 
5,071 
Clinical trial costs
1,610 
974 
Income taxes payable
1,541 
1,126 
Physician detailing sales force fees
1,471 
1,655 
Other
4,340 
2,735 
Total accrued expenses
$ 92,742 
$ 70,116 
Note 9 - Accrued Expenses (Detail) - A Roll Forward of the Product Returns Reserve (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Ending balance
$ 23,440 
$ 24,101 
 
Returns Reserve [Member]
 
 
 
Beginning balance
24,101 
33,755 
22,114 
Provision related to sales recorded in the period
3,003 
688 
15,821 
Credits issued during the period
(3,664)
(10,342)
(4,180)
Ending balance
$ 23,440 
$ 24,101 
$ 33,755 
Note 10 - Income Taxes (Detail) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2012
State and Local Jurisdiction [Member]
Dec. 31, 2011
State and Local Jurisdiction [Member]
Operating Loss Carryforwards
 
$ 2,288,000 
$ 5,228,000 
OperatingLossCarryforwardExpirationPeriod
 
20 years 
 
Unrecognized Tax Benefits, Interest on Income Taxes Accrued
303,000 
 
 
Tax Adjustments, Settlements, and Unusual Provisions
$ 935,000 
 
 
Note 10 - Income Taxes (Detail) - Provision for income taxes (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Current:
 
 
 
Federal taxes
$ 49,636 
$ 23,500 
$ 96,560 
State taxes
1,721 
1,034 
10,471 
Foreign taxes
453 
1,154 
0 
Total current tax expense
51,810 
25,688 
107,031 
Deferred:
 
 
 
Federal taxes
(21,650)
5,646 
27,138 
State taxes
(2,537)
592 
9,140 
Foreign taxes
(185)
690 
212 
Total deferred tax (benefit) expense
(24,372)
6,928 
36,490 
Provision for income taxes
$ 27,438 
$ 32,616 
$ 143,521 
Note 10 - Income Taxes (Detail) - Table of effective income tax rate reconciliation (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Income before income taxes
$ 83,311 
$ 98,111 
$ 393,939 
Tax provision at the federal statutory rate
29,159 
34,339 
137,879 
Tax provision at the federal statutory rate
35.00% 
35.00% 
35.00% 
Tax rate differential and permanent items on foreign income
(1,259)
185 
937 
Tax rate differential and permanent items on foreign income
(1.50%)
0.20% 
0.20% 
State income taxes, net of federal benefit
346 
2,113 
13,780 
State income taxes, net of federal benefit
0.40% 
2.10% 
3.50% 
Federal research and development credits
 
(2,100)
(2,700)
Federal research and development credits
 
(2.20%)
(0.70%)
Share-based compensation
326 
92 
979 
Share-based compensation
0.40% 
0.10% 
0.30% 
Executive compensation
825 
586 
560 
Executive compensation
1.00% 
0.60% 
0.10% 
Domestic manufacturing deduction
(2,010)
(2,187)
(6,563)
Domestic manufacturing deduction
(2.40%)
(2.20%)
(1.70%)
Other permanent book/tax differences
(185)
(119)
(407)
Other permanent book/tax differences
(0.20%)
(0.10%)
(0.10%)
Provision for uncertain tax positions
801 
178 
280 
Provision for uncertain tax positions
0.90% 
0.20% 
0.10% 
Revision of prior years’ estimates
(392)
(309)
(1,203)
Revision of prior years’ estimates
(0.50%)
(0.30%)
(0.30%)
Other, net
(173)
(162)
(21)
Other, net
(0.20%)
(0.20%)
 
Provision for income taxes
$ 27,438 
$ 32,616 
$ 143,521 
Provision for income taxes
32.90% 
33.20% 
36.40% 
Note 10 - Income Taxes (Detail) - Components of deferred tax assets and liabilities (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Deferred tax assets:
 
 
Deferred revenues
$ 4,545 
$ 13,225 
Accrued expenses
38,839 
27,382 
Inventory reserves
2,630 
2,439 
Net operating loss carryforwards
149 
372 
Depreciation and amortization
428 
340 
Acquired product rights and intangibles
7,284 
 
Capitalized legal fees
6,981 
 
R&D credit carryforwards
2,062 
 
Share based compensation expense
3,446 
1,964 
Other
850 
959 
Deferred tax assets
67,214 
46,681 
Tax depreciation and amortization in excess of book amounts
3,544 
4,697 
Deferred manufacturing costs
80 
3,872 
Other
1,810 
700 
Deferred tax liabilities
5,434 
9,269 
Deferred tax assets, net
61,780 
37,412 
Current deferred tax assets
44,196 
39,104 
Current deferred tax liabilities
(1,810)
(1,251)
Current deferred tax assets, net
42,386 
37,853 
Non-current deferred tax assets
23,018 
7,577 
Non-current deferred tax liabilities
(3,624)
(8,018)
Non-current deferred tax assets (liabilities), net
$ 19,394 
$ (441)
Note 10 - Income Taxes (Detail) - Operating loss carryforwards (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
$ 2,288 
Note 10 - Income Taxes (Detail) - Reconciliation of the accrued reserve for uncertain tax positions (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Balance
$ 2,647 
$ 1,842 
$ 1,580 
Increase based on prior year tax positions
937 
24 
 
Increase based on current year tax positions
216 
154 
 
Settlements
(882)
 
 
Interest expense
$ 534 
$ 84 
 
Note 11 - Revolving Line of Credit (Detail) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars)
$ 50,000,000 
 
 
Equity Interest Pledged As Collateral
65.00% 
 
 
Debt Instrument Maturity Period
4 years 
 
 
Minimum Unrestricted Cash as Defined in Credit Agreement (in Dollars)
100,000,000 
 
 
Leverage Ratio
3.75 
 
 
Senior Leverage Ratio
2.50 
 
 
Fixed Charge Coverage Ratio
2.00 
 
 
Debt Instrument, Unused Borrowing Capacity, Fee (in Dollars)
95,000 
144,000 
177,000 
Minimum [Member] |
Alternate Base Rate [Member]
 
 
 
Debt Instrument, Basis Spread on Variable Rate
0.50% 
 
 
Minimum [Member] |
LIBOR Rate [Member]
 
 
 
Debt Instrument, Basis Spread on Variable Rate
1.50% 
 
 
Minimum [Member]
 
 
 
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage
0.25% 
 
 
Maximum [Member] |
Alternate Base Rate [Member]
 
 
 
Debt Instrument, Basis Spread on Variable Rate
1.50% 
 
 
Maximum [Member] |
LIBOR Rate [Member]
 
 
 
Debt Instrument, Basis Spread on Variable Rate
2.50% 
 
 
Maximum [Member]
 
 
 
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage
0.45% 
 
 
Letter of Credit [Member]
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars)
$ 10,000,000 
 
 
Note 12 - Alliance and Collaborative Agreements (Detail) (USD $)
3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 25 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
Products Approved [Member]
Tolmar Incorporated [Member]
Dec. 31, 2012
Product Pending Approval [Member]
Tolmar Incorporated [Member]
Dec. 31, 2012
Products in Development [Member]
Tolmar Incorporated [Member]
Dec. 31, 2012
Generic Products [Member]
Dec. 31, 2012
Branded Advanced Form of Solodyn Product [Member]
Dec. 31, 2012
Milestone Payments [Member]
Tolmar Incorporated [Member]
Mar. 31, 2011
Milestone Payments [Member]
Valeant [Member]
Dec. 31, 2009
Milestone Payments [Member]
Valeant [Member]
Sep. 30, 2009
Milestone Payments [Member]
Valeant [Member]
Mar. 31, 2009
Milestone Payments [Member]
Valeant [Member]
Dec. 31, 2012
Milestone Payments [Member]
Valeant [Member]
Dec. 31, 2012
Milestone Payments [Member]
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2012
Milestone Payments [Member]
Glaxo Group Limited [Member]
Dec. 31, 2008
Up-front Payment Arrangement [Member]
Valeant [Member]
Jun. 30, 2010
Up-front Payment Arrangement [Member]
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2010
Up-front Payment Arrangement [Member]
Glaxo Group Limited [Member]
Mar. 31, 2011
Milestone Payment Arrangement [Member]
Valeant [Member]
Dec. 31, 2012
Clinical Milestone Events [Member]
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2012
Clinical Milestone Events [Member]
Glaxo Group Limited [Member]
Dec. 31, 2012
Regulatory Milestone Events [Member]
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2012
Regulatory Milestone Events [Member]
Glaxo Group Limited [Member]
Dec. 31, 2012
Commercialization Events [Member]
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2012
Commercialization Events [Member]
Glaxo Group Limited [Member]
Dec. 31, 2012
IND-enabling Animal Studies for New Development Candidate [Member]
Minimum [Member]
Dec. 31, 2012
IND-enabling Animal Studies for New Development Candidate [Member]
Maximum [Member]
Dec. 31, 2012
Phase 1 Trials [Member]
Minimum [Member]
Dec. 31, 2012
Phase 1 Trials [Member]
Maximum [Member]
Dec. 31, 2012
Phase 2 Trials [Member]
Minimum [Member]
Dec. 31, 2012
Phase 2 Trials [Member]
Maximum [Member]
Dec. 31, 2012
Phase 3 Trials [Member]
Minimum [Member]
Dec. 31, 2012
Phase 3 Trials [Member]
Maximum [Member]
Dec. 31, 2012
Bioequivalence Studies [Member]
Minimum [Member]
Dec. 31, 2012
Bioequivalence Studies [Member]
Maximum [Member]
Dec. 31, 2012
Preparation And Submission Of Regulatory Filings [Member]
Minimum [Member]
Dec. 31, 2012
Preparation And Submission Of Regulatory Filings [Member]
Maximum [Member]
Dec. 31, 2012
Acceptance Of Regulatory Filings For Substantive Review [Member]
Dec. 31, 2012
Potential Marketing Approval One [Member]
Minimum [Member]
Dec. 31, 2012
Potential Marketing Approval One [Member]
Maximum [Member]
Dec. 31, 2012
Potential Marketing Approval Two [Member]
Minimum [Member]
Dec. 31, 2012
Potential Marketing Approval Two [Member]
Maximum [Member]
Dec. 31, 2010
Pre-amendment Principles [Member]
Teva Pharmaceutical Industries Limited [Member]
Dec. 31, 2010
Pre-amendment Principles [Member]
Sep. 30, 2010
Pre-amendment Principles [Member]
Jun. 30, 2010
Pre-amendment Principles [Member]
Mar. 31, 2010
Pre-amendment Principles [Member]
Dec. 31, 2010
Pre-amendment Principles [Member]
Dec. 31, 2012
Minimum [Member]
Tolmar Product Rights [Member]
Dec. 31, 2012
Maximum [Member]
Tolmar Product Rights [Member]
Dec. 31, 2012
Specified Threshold [Member]
Dec. 31, 2012
Shire Laboratories Incorporated [Member]
Dec. 31, 2011
Shire Laboratories Incorporated [Member]
Dec. 31, 2010
Shire Laboratories Incorporated [Member]
Dec. 31, 2012
Tolmar Incorporated [Member]
Dec. 31, 2012
Teva Pharmaceutical Industries Limited [Member]
Jun. 30, 2002
Pfizer Incorporated [Member]
Dec. 31, 2012
Pfizer Incorporated [Member]
Dec. 31, 2011
Pfizer Incorporated [Member]
Dec. 31, 2010
Pfizer Incorporated [Member]
Dec. 31, 2012
Valeant [Member]
Dec. 31, 2012
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2012
Glaxo Group Limited [Member]
Dec. 31, 2012
Astra Zeneca [Member]
Completion Period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 months 
18 months 
1 year 
2 years 
1 year 
3 years 
2 years 
4 years 
3 months 
1 year 
6 months 
12 months 
2 months 
1 year 
3 years 
1 year 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Accrued Liabilities, Current
4,340,000 
 
 
 
2,735,000 
 
 
 
4,340,000 
2,735,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
107,303,000 
107,145,000 
100,611,000 
 
 
 
 
 
 
 
 
 
2,676,000 
Number Of Products
 
 
 
 
 
 
 
 
 
 
 
9 
2 
2 
4 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11 
 
 
 
 
 
5 
 
 
 
Collaborative Arrangement Up Front Payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21,000,000 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Required Payment Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
86,436,000 
Collaborative Arrangement Maximum Contingent Payments Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8,000,000 
30,000,000 
169,000,000 
 
 
 
 
15,000,000 
10,000,000 
5,000,000 
29,000,000 
10,000,000 
130,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24,000,000 
 
 
 
 
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
12 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research and Development Expense
 
 
 
 
 
 
 
 
81,320,000 
82,701,000 
86,223,000 
 
 
1,550,000 
 
 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,550,000 
 
 
 
 
 
 
 
 
 
Service Agreement Term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 years 
15 years 
 
 
 
 
 
 
 
Receivable Collection Period
 
 
 
 
 
 
 
 
30 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit Share Collection Period
 
 
 
 
 
 
 
 
30 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Maximum Profit Share Payments Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Revenue
 
 
 
 
 
 
 
 
 
 
196,440,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Accounting Pronouncement or Change in Accounting Principle Effect of Change on Cost of Revenue
 
 
 
 
 
 
 
 
 
 
95,426,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share (in Dollars per share)
 
 
 
 
 
 
 
 
 
 
$ 1.03 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue, Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
22,255,000 
5,628,000 
5,922,000 
5,802,000 
4,903,000 
22,255,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
244,964,000 
48,498,000 
47,998,000 
68,892,000 
79,576,000 
244,964,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Basic (in Dollars per share)
$ 0.07 
$ 0.30 
$ 0.29 
$ 0.19 
$ 0.34 
$ 0.27 
$ 0.20 
$ 0.22 
$ 0.85 
$ 1.02 
$ 4.04 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2.97 
$ 0.12 
$ 0.22 
$ 0.51 
$ 2.16 
$ 2.97 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Contingent Payments Received And Potentially To Be Received
 
 
 
 
 
 
 
 
 
 
12,000,000 
 
 
 
 
 
 
3,000,000 
2,000,000 
5,000,000 
5,000,000 
 
 
 
40,000,000 
 
 
15,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,000,000 
43,564,000 
Period After the First Commercial Sale of the Advanced Form of SOLODYN Product the Company is Receiving Royalty Fee Income
 
 
 
 
 
 
 
 
8 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Revenue, Additions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,000,000 
11,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Copromotion Service Fee Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
Deferred Revenue Estimated Period Of Recognition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
91 months 
 
 
Deferred Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,593,000 
 
 
Termination Notice Period
90 days 
 
 
 
 
 
 
 
90 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Transition Payment Percentage Of Gross Profit
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Quarterly Payments Made
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
130,000,000 
Finite-Lived Intangible Assets, Gross
66,796,000 
 
 
 
2,250,000 
 
 
 
66,796,000 
2,250,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19,450,000 
 
 
 
 
 
 
 
 
45,096,000 
Prepaid Royalties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
41,340,000 
Sales Revenue, Services, Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 7,070,000 
$ 14,140,000 
$ 14,073,000 
 
 
 
 
Note 12 - Alliance and Collaborative Agreements (Detail) - Additions to and Deductions from Deferred Revenue and Deferred Product Manufacturing Costs under the Teva Agreement (Teva Pharmaceutical Industries Limited [Member], USD $)
12 Months Ended 130 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Beginning balance
 
$ 4,410,000 
$ 202,032,000 
 
Additions
 
551,000 
10,096,000 
379,196,000 
Ending deferred revenue
2,396,000 
3,705,000 
4,410,000 
202,032,000 
Beginning balance
 
 
94,040,000 
 
Additions
 
 
7,416,000 
175,565,000 
Ending deferred product manufacturing costs
 
 
 
94,040,000 
Deferred Revenue Recognized [Member]
 
 
 
 
Deferred revenue recognized
(1,309,000)
(1,256,000)
(11,278,000)
(177,164,000)
Deferred costs recognized
 
 
(6,030,000)
(81,525,000)
Accounting Adjustment [Member]
 
 
 
 
Deferred revenue recognized
 
 
(196,440,000)
 
Deferred costs recognized
 
 
$ (95,426,000)
 
Note 12 - Alliance and Collaborative Agreements (Detail) - Expected recognition of deferred revenue and amortization of deferred product manufacturing costs (Teva Pharmaceutical Industries Limited [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Teva Pharmaceutical Industries Limited [Member]
 
2013
$ 1,309 
2014
1,087 
Totals
$ 2,396 
Note 12 - Alliance and Collaborative Agreements (Detail) - Additions to and Deductions from Deferred Revenue and Deferred Product Manufacturing Costs under OTC Agreements (OTC Partner [Member], USD $)
12 Months Ended 130 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
OTC Partner [Member]
 
 
 
 
Beginning balance
$ 9,683,000 
$ 11,382,000 
$ 16,162,000 
 
Additions
1,528,000 
2,018,000 
4,108,000 
93,904,000 
Less amounts recognized
(11,211,000)
(3,717,000)
(8,888,000)
(77,742,000)
Ending deferred revenue
 
9,683,000 
11,382,000 
16,162,000 
Beginning balance
8,846,000 
10,235,000 
14,203,000 
 
Additions
2,638,000 
1,721,000 
3,223,000 
77,870,000 
Less: amount recognized
(11,484,000)
(3,110,000)
(7,191,000)
(63,667,000)
Ending deferred product manufacturing costs
 
$ 8,846,000 
$ 10,235,000 
$ 14,203,000 
Note 12 - Alliance and Collaborative Agreements (Detail) - Additions to and deductions from deferred revenue under the Joint Development with Valeant (Valeant [Member], USD $)
12 Months Ended 130 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Valeant [Member]
 
 
 
 
Beginning balance
$ 12,410,000 
$ 25,948,000 
$ 39,487,000 
 
Additions
 
 
 
52,000,000 
Less amount recognized
(8,760,000)
(13,538,000)
(13,539,000)
(12,513,000)
Ending deferred revenue
$ 3,650,000 
$ 12,410,000 
$ 25,948,000 
$ 39,487,000 
Note 12 - Alliance and Collaborative Agreements (Detail) - Expected recognition of deferred revenue (Valeant [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Valeant [Member]
 
2013
$ 3,650 
Total
$ 3,650 
Note 13 - Employee Benefit Plans (Detail) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Defined Contribution Plan Employee Contributions Percentage of Eligible Compensation
25.00% 
 
 
Defined Contribution Plan Employer Contribution Percentage
50.00% 
 
 
Defined Contribution Plan Employer Contributions Percentage Match of Eligible Compensation
3.00% 
 
 
Pension and Other Postretirement Benefit Contributions (in Dollars)
$ 1,428,000 
$ 1,254,000 
$ 1,162,000 
Common Stock, Capital Shares Reserved for Future Issuance (in Shares)
500,000 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date
15.00% 
 
 
Stock Issued During Period, Value, Employee Stock Purchase Plan (in Dollars)
7,764,000 
11,326,000 
15,029,000 
Deferred Compensation Arrangement with Individual Contributions by Plan Participants Percentage of Salary Maximum
75.00% 
 
 
Deferred Compensation Arrangement with Individual Contributions by Plan Participants Percentage of Bonus Maximum
100.00% 
 
 
Deferred Compensation Arrangement with Individual Employer Contribution Percentage
50.00% 
 
 
Deferred Compensation Arrangement with Individual Employer Contribution Percentage of Eligible Salary
10.00% 
 
 
Deferred Compensation Arrangement with Individual, Employer Contribution (in Dollars)
717,000 
589,000 
525,000 
Cash Surrender Value of Life Insurance (in Dollars)
19,017,000 
14,547,000 
 
Deferred Compensation Liability, Classified, Noncurrent (in Dollars)
18,617,000 
14,535,000 
 
Annually for first 5 Years of Employment [Member]
 
 
 
Deferred Compensation Arrangement with Individual Percentage Vested
20.00% 
 
 
After 5 Years of Employment [Member]
 
 
 
Deferred Compensation Arrangement with Individual Percentage Vested
100.00% 
 
 
The ESPP Plan [Member]
 
 
 
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in Shares)
44,731 
47,128 
79,560 
Stock Issued During Period, Value, Employee Stock Purchase Plan (in Dollars)
$ 829,000 
$ 887,000 
$ 1,082,000 
Maximum [Member]
 
 
 
Deferred Compensation Arrangement with Individual Employer Contribution Percentage of Eligible Salary
5.00% 
 
 
After 3 Years of Service [Member]
 
 
 
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage
100.00% 
 
 
After 1 Year of Service [Member]
 
 
 
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage
25.00% 
 
 
After 2 Years of Service [Member]
 
 
 
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage
50.00% 
 
 
Note 14 - Share-Based Compensation (Detail) (USD $)
12 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2012
Stock Options and Restricted Stock Awards [Member]
Minimum [Member]
Dec. 31, 2012
Stock Options and Restricted Stock Awards [Member]
Maximum [Member]
Dec. 31, 2012
Stock Options and Restricted Stock Awards [Member]
Dec. 31, 2012
The 1999 Equity Incentive Plan [Member]
Dec. 31, 2011
The 1999 Equity Incentive Plan [Member]
Dec. 31, 2010
The 1999 Equity Incentive Plan [Member]
Oct. 31, 2000
The 1999 Equity Incentive Plan [Member]
Sep. 30, 2000
The 1999 Equity Incentive Plan [Member]
Dec. 31, 2012
Amended and Restated 2002 Equity Incentive Plan [Member]
Dec. 31, 2011
Amended and Restated 2002 Equity Incentive Plan [Member]
Dec. 31, 2010
Amended and Restated 2002 Equity Incentive Plan [Member]
Dec. 31, 2009
Amended and Restated 2002 Equity Incentive Plan [Member]
Dec. 31, 2012
The 2002 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period
 
 
 
 
3 years 
4 years 
 
 
 
 
 
 
 
 
 
 
 
Stock Options and Restricted Stock Awards Term
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized
 
 
 
 
 
 
 
 
 
 
5,000,000 
2,400,000 
 
 
11,800,000 
9,800,000 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number
4,177,221 
5,073,097 
6,514,676 
8,229,818 
 
 
 
115,785 
379,872 
664,947 
 
 
4,061,436 
4,693,225 
5,849,729 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number
1,954,570 
1,663,911 
1,434,759 
1,152,923 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term
5 years 313 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term
4 years 299 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars)
$ 35,370,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars)
30,067,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number
3,698,064 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested And Expected To Vest Outstanding Number
1,730,367 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant
1,161,084 
 
 
 
 
 
 
285,421 
 
 
 
 
 
 
 
 
875,663 
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized (in Dollars)
42,547,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition
2 years 109 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value (in Dollars)
12,380,000 
19,192,000 
19,038,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value (in Dollars)
8,614,000 
5,347,000 
3,175,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate
0.00% 
0.00% 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
After Tax Share-based Compensation Effect on Earnings Per Share Basic (in Dollars per share)
$ 0.18 
$ 0.15 
$ 0.14 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
After TaxShare-based Compensation Effect on Earnings Per Share Diluted (in Dollars)
0.17 
0.14 
0.14 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense (in Dollars)
$ 4,335,000 
$ 3,078,000 
$ 1,719,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 14 - Share-Based Compensation (Detail) - Summary of Stock Option Activity (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Outstanding
4,177,221 
5,073,097 
6,514,676 
8,229,818 
Outstanding (in Dollars per share)
$ 12.72 
$ 11.76 
$ 10.84 
$ 9.87 
Options granted
278,500 
424,000 
405,600 
 
Options granted (in Dollars per share)
$ 20.90 
$ 24.78 
$ 20.22 
 
Options exercised
(1,060,746)
(1,605,043)
(1,900,549)
 
Options exercised (in Dollars per share)
$ 11.16 
$ 11.02 
$ 8.62 
 
Options forfeited
(113,630)
(260,536)
(220,193)
 
Options forfeited (in Dollars per share)
$ 16.69 
$ 9.73 
$ 11.03 
 
Options exercisable at December 31, 2012
3,143,431 
 
 
 
Options exercisable at December 31, 2012 (in Dollars per share)
$ 11.30 
 
 
 
Note 14 - Share-Based Compensation (Detail) - A summary of Non-Vested Restricted Stock Awards (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Non-vested
1,954,570 
1,663,911 
1,434,759 
1,152,923 
Non-vested (in Dollars per share)
$ 20.97 
$ 17.20 
$ 12.93 
$ 7.72 
Granted
1,015,937 
868,549 
727,556 
 
Granted (in Dollars per share)
$ 23.41 
$ 20.73 
$ 18.87 
 
Vested
(585,392)
(452,861)
(368,825)
 
Vested (in Dollars per share)
$ 14.72 
$ 11.81 
$ 8.61 
 
Forfeited
(139,886)
(186,536)
(76,895)
 
Forfeited (in Dollars per share)
$ 19.08 
$ 13.71 
$ 10.17 
 
Note 14 - Share-Based Compensation (Detail) - Stock Option Valuation Assumptions
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Volatility (weighted average)
49.10% 
52.30% 
55.90% 
Risk-free interest rate (weighted average)
1.00% 
2.10% 
2.30% 
Dividend yield
0.00% 
0.00% 
0.00% 
Expected life (years)
6 years 69 days 
6 years 73 days 
6 years 76 days 
Weighted average grant date fair value (in Dollars per share)
$ 9.93 
$ 12.85 
$ 11.08 
Minimum [Member]
 
 
 
Volatility (range)
48.50% 
50.70% 
55.10% 
Risk-free interest rate (range)
0.90% 
1.50% 
1.50% 
Maximum [Member]
 
 
 
Volatility (range)
49.30% 
52.70% 
56.40% 
Risk-free interest rate (range)
1.00% 
2.30% 
3.10% 
Note 14 - Share-Based Compensation (Detail) - Share-Based Compensation Expense Recognized by the Company (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Total
$ 16,303 
$ 12,685 
$ 10,714 
Cost of Sales [Member]
 
 
 
Share-based compensation expense
2,405 
1,917 
2,377 
Research and Development Expense [Member]
 
 
 
Share-based compensation expense
4,658 
4,119 
3,466 
Selling, General and Administrative Expenses [Member]
 
 
 
Share-based compensation expense
$ 9,240 
$ 6,649 
$ 4,871 
Note 15 - Stockholders' Equity (Detail) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Jan. 20, 2009
Preferred Stock, Shares Authorized
2,000,000 
2,000,000 
 
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)
$ 0.01 
$ 0.01 
 
Common Stock, Shares Authorized
90,000,000 
90,000,000 
 
Common Stock, Par or Stated Value Per Share (in Dollars per share)
$ 0.01 
$ 0.01 
 
Class of Warrant or Right Preferred Stock Dividend for Each Outstanding Share of Common Stock
 
 
1 
Outstanding Stock Percentage That Should Be Acquired for Rights To Be Exercised at USD 15 Per Share
 
 
20.00% 
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item)
 
 
15 
Assets or Earning Power Percentage That Should Be Sold or Transferred for Rights To Be Exercised at USD 15 Per Share
 
 
50.00% 
Preferred Stock Shares Designated
 
 
100,000 
Note 16 - Earnings Per Share (Detail)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
905,899 
1,244,493 
1,024,466 
Note 16 - Earnings Per Share (Detail) - Reconciliation of basic and diluted earnings per share (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income (in Dollars)
$ 4,799 
$ 20,037 
$ 18,672 
$ 12,365 
$ 21,862 
$ 17,220 
$ 12,550 
$ 13,863 
$ 55,873 
$ 65,495 
$ 250,418 
Weighted average common shares outstanding
66,217,421 
65,797,722 
65,482,700 
65,122,240 
64,687,753 
64,387,413 
64,024,483 
63,390,527 
65,660,271 
64,126,855 
62,037,908 
Effect of dilutive stock options and restricted stock
 
 
 
 
 
 
 
 
2,744,280 
3,193,134 
3,527,224 
Diluted weighted average common shares outstanding
68,419,888 
68,366,849 
67,954,573 
67,907,263 
67,029,407 
66,986,758 
67,654,047 
67,044,266 
68,404,551 
67,319,989 
65,565,132 
Basic net income per share (in Dollars per share)
$ 0.07 
$ 0.30 
$ 0.29 
$ 0.19 
$ 0.34 
$ 0.27 
$ 0.20 
$ 0.22 
$ 0.85 
$ 1.02 
$ 4.04 
Diluted net income per share (in Dollars per share)
$ 0.07 
$ 0.29 
$ 0.27 
$ 0.18 
$ 0.33 
$ 0.26 
$ 0.19 
$ 0.21 
$ 0.82 
$ 0.97 
$ 3.82 
Note 17 - Segment Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Number of Reportable Segments
2 
 
Number of Internally Developed Late Stage Branded Pharmaceutical Product Candidate
1 
 
Assets (in Dollars)
$ 863,970,000 
$ 793,859,000 
Taiwan Facility Construction [Member]
 
 
Assets (in Dollars)
$ 126,684,000 
$ 56,827,000 
Note 17 - Segment Information (Detail) - Segment Information Reconciled to Total Company Consolidated Financial Results (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Revenues, net
$ 141,077,000 
$ 145,587,000 
$ 166,460,000 
$ 128,568,000 
$ 158,559,000 
$ 119,849,000 
$ 125,860,000 
$ 108,651,000 
$ 581,692,000 
$ 512,919,000 
$ 879,509,000 
Cost of revenues
 
 
 
 
 
 
 
 
299,138,000 
254,624,000 
340,246,000 
Research and development
 
 
 
 
 
 
 
 
81,320,000 
82,701,000 
86,223,000 
Patent litigation
 
 
 
 
 
 
 
 
9,772,000 
7,506,000 
6,384,000 
Selling, general and administrative
 
 
 
 
 
 
 
 
108,470,000 
68,477,000 
53,332,000 
Income (loss) before income taxes
 
 
 
 
 
 
 
 
83,311,000 
98,111,000 
393,939,000 
Global Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues, net
91,924,000 
100,428,000 
133,065,000 
123,265,000 
153,257,000 
114,546,000 
120,559,000 
103,348,000 
448,682,000 
491,710,000 
864,667,000 
Cost of revenues
 
 
 
 
 
 
 
 
229,355,000 
242,713,000 
328,163,000 
Research and development
 
 
 
 
 
 
 
 
48,540,000 
46,169,000 
44,325,000 
Patent litigation
 
 
 
 
 
 
 
 
9,772,000 
7,506,000 
6,384,000 
Selling, general and administrative
 
 
 
 
 
 
 
 
15,377,000 
11,313,000 
14,625,000 
Income (loss) before income taxes
 
 
 
 
 
 
 
 
145,638,000 
184,009,000 
471,170,000 
Impax Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues, net
49,153,000 
45,159,000 
33,395,000 
5,303,000 
5,302,000 
5,303,000 
5,301,000 
5,303,000 
133,010,000 
21,209,000 
14,842,000 
Cost of revenues
 
 
 
 
 
 
 
 
69,783,000 
11,911,000 
12,083,000 
Research and development
 
 
 
 
 
 
 
 
32,780,000 
36,532,000 
41,898,000 
Selling, general and administrative
 
 
 
 
 
 
 
 
37,896,000 
7,435,000 
3,510,000 
Income (loss) before income taxes
 
 
 
 
 
 
 
 
(7,449,000)
(34,669,000)
(42,649,000)
Corporate and Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
 
 
 
 
 
 
 
 
55,197,000 
49,729,000 
35,197,000 
Income (loss) before income taxes
 
 
 
 
 
 
 
 
$ (54,878,000)
$ (51,229,000)
$ (34,582,000)
Note 18 - Commitments and Contingencies (Detail) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Operating Leases, Rent Expense
$ 1,719,000 
$ 1,691,000 
$ 1,715,000 
Purchase Order Commitments
47,811,000 
 
 
Purchase Commitment Period
1 year 
 
 
Commitments and Contingencies
   
   
 
Taiwan Facility Construction [Member]
 
 
 
Commitments and Contingencies
$ 9,423,000 
 
 
Note 18 - Commitments and Contingencies (Detail) - Future minimum lease payments under the non-cancelable operating leases (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
2013
$ 2,020 
2014
1,747 
2015
933 
2016
404 
2017
316 
Thereafter
2,657 
Total minimum lease payments
$ 8,077 
Note 19 - Legal and Regulatory Matters (Detail)
12 Months Ended
Dec. 31, 2012
Loss Contingency Patent Infringement Litigation Period Within Which Patent Holder May File Suit For Patent Infringement
45 days 
Loss Contingency Patent Infringement Litigation Maximum Stay Period For Approval Of Abbreviated New Drug Application
30 months 
Number Of Agreements
2 
Product under Teva Agreement in Litigation [Member]
 
Number Of Products
3 
Note 21 - Supplementary Financial Information (unaudited) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2011
Generic Adderall XR Products [Member]
 
Reduction in Reserve for Product Returns
$ 5.7 
Global Product [Member]
 
Reduction in Reserve for Product Returns
$ 2.0 
Note 21 - Supplementary Financial Information (unaudited) (Detail) - Selected financial information for the quarterly periods noted (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Less:
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 141,077,000 
$ 145,587,000 
$ 166,460,000 
$ 128,568,000 
$ 158,559,000 
$ 119,849,000 
$ 125,860,000 
$ 108,651,000 
$ 581,692,000 
$ 512,919,000 
$ 879,509,000 
Gross profit
64,151,000 
78,027,000 
77,823,000 
62,553,000 
77,402,000 
62,654,000 
59,702,000 
58,537,000 
282,554,000 
258,295,000 
539,263,000 
Net income
4,799,000 
20,037,000 
18,672,000 
12,365,000 
21,862,000 
17,220,000 
12,550,000 
13,863,000 
55,873,000 
65,495,000 
250,418,000 
Net income per share (basic) (in Dollars per share)
$ 0.07 
$ 0.30 
$ 0.29 
$ 0.19 
$ 0.34 
$ 0.27 
$ 0.20 
$ 0.22 
$ 0.85 
$ 1.02 
$ 4.04 
Net income per share (diluted) (in Dollars per share)
$ 0.07 
$ 0.29 
$ 0.27 
$ 0.18 
$ 0.33 
$ 0.26 
$ 0.19 
$ 0.21 
$ 0.82 
$ 0.97 
$ 3.82 
Weighted Average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Basic (in Shares)
66,217,421 
65,797,722 
65,482,700 
65,122,240 
64,687,753 
64,387,413 
64,024,483 
63,390,527 
65,660,271 
64,126,855 
62,037,908 
Diluted (in Shares)
68,419,888 
68,366,849 
67,954,573 
67,907,263 
67,029,407 
66,986,758 
67,654,047 
67,044,266 
68,404,551 
67,319,989 
65,565,132 
Global Division [Member] |
Chargeback Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
59,460,000 
47,366,000 
50,670,000 
39,155,000 
52,203,000 
39,690,000 
39,395,000 
35,216,000 
 
 
 
Global Division [Member] |
Rebate Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
22,995,000 
24,285,000 
26,847,000 
20,589,000 
21,058,000 
18,014,000 
17,392,000 
12,709,000 
 
 
 
Global Division [Member] |
Other Credits [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
17,334,000 
7,212,000 
18,552,000 
10,045,000 
13,536,000 
13,602,000 
12,261,000 
8,863,000 
 
 
 
Global Division [Member] |
Rx Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue, net
1,793,000 
(792,000)
2,466,000 
2,978,000 
6,164,000 
12,621,000 
4,866,000 
2,682,000 
 
 
 
Global Division [Member] |
Research Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Weighted Average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue services, net
995,000 
996,000 
3,384,000 
3,385,000 
3,384,000 
3,385,000 
3,384,000 
6,385,000 
 
 
 
Global Division [Member] |
OTC Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue, net
9,365,000 
763,000 
783,000 
691,000 
1,015,000 
879,000 
1,184,000 
1,943,000 
 
 
 
Global Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Product sales, gross
177,830,000 
178,628,000 
223,449,000 
185,671,000 
225,122,000 
169,519,000 
181,972,000 
151,832,000 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Product Returns
(1,730,000)
304,000 
948,000 
(329,000)
(4,369,000)
552,000 
1,799,000 
2,706,000 
 
 
 
Product sales, net
79,771,000 
99,461,000 
126,432,000 
116,211,000 
142,694,000 
97,661,000 
111,125,000 
92,338,000 
 
 
 
Revenues
91,924,000 
100,428,000 
133,065,000 
123,265,000 
153,257,000 
114,546,000 
120,559,000 
103,348,000 
448,682,000 
491,710,000 
864,667,000 
Impax Division [Member] |
Chargeback Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
44,000 
8,308,000 
4,449,000 
 
 
 
 
 
 
 
 
Impax Division [Member] |
Rebate Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
7,556,000 
5,113,000 
3,714,000 
 
 
 
 
 
 
 
 
Impax Division [Member] |
Other Credits [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
9,285,000 
5,785,000 
3,683,000 
 
 
 
 
 
 
 
 
Impax Division [Member] |
Rx Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue, net
2,125,000 
1,500,000 
1,437,000 
1,438,000 
 
 
 
 
 
 
 
Impax Division [Member] |
Research Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Weighted Average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue services, net
330,000 
330,000 
329,000 
330,000 
330,000 
330,000 
329,000 
330,000 
 
 
 
Impax Division [Member] |
Promotional Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Weighted Average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue services, net
 
 
3,535,000 
3,535,000 
3,535,000 
3,535,000 
3,535,000 
3,535,000 
 
 
 
Impax Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Product sales, gross
65,141,000 
63,909,000 
40,818,000 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Product Returns
1,558,000 
1,374,000 
878,000 
 
 
 
 
 
 
 
 
Product sales, net
46,698,000 
43,329,000 
28,094,000 
 
 
 
 
 
 
 
 
Sales revenue, net
 
 
 
 
1,437,000 
1,438,000 
1,437,000 
1,438,000 
 
 
 
Revenues
$ 49,153,000 
$ 45,159,000 
$ 33,395,000 
$ 5,303,000 
$ 5,302,000 
$ 5,303,000 
$ 5,301,000 
$ 5,303,000 
$ 133,010,000 
$ 21,209,000 
$ 14,842,000 
Note 21 - Supplementary Financial Information (unaudited) (Detail) - Selected financial information for the quarterly periods noted (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Less:
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 141,077,000 
$ 145,587,000 
$ 166,460,000 
$ 128,568,000 
$ 158,559,000 
$ 119,849,000 
$ 125,860,000 
$ 108,651,000 
$ 581,692,000 
$ 512,919,000 
$ 879,509,000 
Gross profit
64,151,000 
78,027,000 
77,823,000 
62,553,000 
77,402,000 
62,654,000 
59,702,000 
58,537,000 
282,554,000 
258,295,000 
539,263,000 
Net income
4,799,000 
20,037,000 
18,672,000 
12,365,000 
21,862,000 
17,220,000 
12,550,000 
13,863,000 
55,873,000 
65,495,000 
250,418,000 
Net income per share (basic) (in Dollars per share)
$ 0.07 
$ 0.30 
$ 0.29 
$ 0.19 
$ 0.34 
$ 0.27 
$ 0.20 
$ 0.22 
$ 0.85 
$ 1.02 
$ 4.04 
Net income per share (diluted) (in Dollars per share)
$ 0.07 
$ 0.29 
$ 0.27 
$ 0.18 
$ 0.33 
$ 0.26 
$ 0.19 
$ 0.21 
$ 0.82 
$ 0.97 
$ 3.82 
Weighted Average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Basic (in Shares)
66,217,421 
65,797,722 
65,482,700 
65,122,240 
64,687,753 
64,387,413 
64,024,483 
63,390,527 
65,660,271 
64,126,855 
62,037,908 
Diluted (in Shares)
68,419,888 
68,366,849 
67,954,573 
67,907,263 
67,029,407 
66,986,758 
67,654,047 
67,044,266 
68,404,551 
67,319,989 
65,565,132 
Global Division [Member] |
Chargeback Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
59,460,000 
47,366,000 
50,670,000 
39,155,000 
52,203,000 
39,690,000 
39,395,000 
35,216,000 
 
 
 
Global Division [Member] |
Rebate Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
22,995,000 
24,285,000 
26,847,000 
20,589,000 
21,058,000 
18,014,000 
17,392,000 
12,709,000 
 
 
 
Global Division [Member] |
Other Credits [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
17,334,000 
7,212,000 
18,552,000 
10,045,000 
13,536,000 
13,602,000 
12,261,000 
8,863,000 
 
 
 
Global Division [Member] |
Rx Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue net
1,793,000 
(792,000)
2,466,000 
2,978,000 
6,164,000 
12,621,000 
4,866,000 
2,682,000 
 
 
 
Global Division [Member] |
Research Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Weighted Average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue services net
995,000 
996,000 
3,384,000 
3,385,000 
3,384,000 
3,385,000 
3,384,000 
6,385,000 
 
 
 
Global Division [Member] |
OTC Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue net
9,365,000 
763,000 
783,000 
691,000 
1,015,000 
879,000 
1,184,000 
1,943,000 
 
 
 
Global Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Global Product sales, gross
177,830,000 
178,628,000 
223,449,000 
185,671,000 
225,122,000 
169,519,000 
181,972,000 
151,832,000 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Product Returns
(1,730,000)
304,000 
948,000 
(329,000)
(4,369,000)
552,000 
1,799,000 
2,706,000 
 
 
 
Global Product sales, net
79,771,000 
99,461,000 
126,432,000 
116,211,000 
142,694,000 
97,661,000 
111,125,000 
92,338,000 
 
 
 
Revenues
91,924,000 
100,428,000 
133,065,000 
123,265,000 
153,257,000 
114,546,000 
120,559,000 
103,348,000 
448,682,000 
491,710,000 
864,667,000 
Impax Division [Member] |
Chargeback Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
44,000 
8,308,000 
4,449,000 
 
 
 
 
 
 
 
 
Impax Division [Member] |
Rebate Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
7,556,000 
5,113,000 
3,714,000 
 
 
 
 
 
 
 
 
Impax Division [Member] |
Other Credits [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
9,285,000 
5,785,000 
3,683,000 
 
 
 
 
 
 
 
 
Impax Division [Member] |
Rx Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue net
2,125,000 
1,500,000 
1,437,000 
1,438,000 
 
 
 
 
 
 
 
Impax Division [Member] |
Research Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Weighted Average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue services net
330,000 
330,000 
329,000 
330,000 
330,000 
330,000 
329,000 
330,000 
 
 
 
Impax Division [Member] |
Promotional Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Weighted Average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Sales revenue services net
 
 
3,535,000 
3,535,000 
3,535,000 
3,535,000 
3,535,000 
3,535,000 
 
 
 
Impax Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Global Product sales, gross
65,141,000 
63,909,000 
40,818,000 
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Product Returns
1,558,000 
1,374,000 
878,000 
 
 
 
 
 
 
 
 
Global Product sales, net
46,698,000 
43,329,000 
28,094,000 
 
 
 
 
 
 
 
 
Sales revenue net
 
 
 
 
1,437,000 
1,438,000 
1,437,000 
1,438,000 
 
 
 
Revenues
$ 49,153,000 
$ 45,159,000 
$ 33,395,000 
$ 5,303,000 
$ 5,302,000 
$ 5,303,000 
$ 5,301,000 
$ 5,303,000 
$ 133,010,000 
$ 21,209,000 
$ 14,842,000 
Note 21 - Supplementary Financial Information (unaudited) (Detail) - Comparison of certain consolidated statement of operations financial reporting captions (USD $)
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2010
Pre-amendment Principles [Member]
Teva Pharmaceutical Industries Limited [Member]
Dec. 31, 2010
Pre-amendment Principles [Member]
Sep. 30, 2010
Pre-amendment Principles [Member]
Jun. 30, 2010
Pre-amendment Principles [Member]
Mar. 31, 2010
Pre-amendment Principles [Member]
Dec. 31, 2010
Pre-amendment Principles [Member]
Dec. 31, 2010
Change [Member]
Sep. 30, 2010
Change [Member]
Jun. 30, 2010
Change [Member]
Mar. 31, 2010
Change [Member]
Dec. 31, 2010
Change [Member]
Dec. 31, 2010
Post-amendment Principles [Member]
Sep. 30, 2010
Post-amendment Principles [Member]
Jun. 30, 2010
Post-amendment Principles [Member]
Mar. 31, 2010
Post-amendment Principles [Member]
Dec. 31, 2010
Post-amendment Principles [Member]
Revenue
 
 
 
 
 
 
 
 
 
 
 
$ 22,255,000 
$ 5,628,000 
$ 5,922,000 
$ 5,802,000 
$ 4,903,000 
$ 22,255,000 
$ (1,855,000)
$ 437,000 
$ 407,000 
$ (802,000)
$ (1,813,000)
$ 3,773,000 
$ 6,359,000 
$ 6,209,000 
$ 4,101,000 
$ 20,442,000 
Cost of revenues
 
 
 
 
 
 
 
 
 
 
 
244,964,000 
48,498,000 
47,998,000 
68,892,000 
79,576,000 
244,964,000 
159,000 
(302,000)
1,104,000 
282,000 
1,243,000 
48,657,000 
47,696,000 
69,996,000 
79,858,000 
246,207,000 
Income before income taxes
 
 
 
 
 
 
 
 
83,311,000 
98,111,000 
393,939,000 
 
11,823,000 
21,882,000 
49,438,000 
210,997,000 
294,140,000 
(2,014,000)
739,000 
(697,000)
(1,084,000)
(3,056,000)
9,809,000 
22,621,000 
48,741,000 
209,913,000 
291,084,000 
Net income
$ 4,799,000 
$ 20,037,000 
$ 18,672,000 
$ 12,365,000 
$ 21,862,000 
$ 17,220,000 
$ 12,550,000 
$ 13,863,000 
$ 55,873,000 
$ 65,495,000 
$ 250,418,000 
 
$ 7,515,000 
$ 13,908,000 
$ 31,348,000 
$ 131,485,000 
$ 184,256,000 
$ (1,280,000)
$ 470,000 
$ (443,000)
$ (689,000)
$ (1,942,000)
$ 6,235,000 
$ 14,378,000 
$ 30,905,000 
$ 130,796,000 
$ 182,314,000 
Earnings per share, basic (in Dollars per share)
$ 0.07 
$ 0.30 
$ 0.29 
$ 0.19 
$ 0.34 
$ 0.27 
$ 0.20 
$ 0.22 
$ 0.85 
$ 1.02 
$ 4.04 
$ 2.97 
$ 0.12 
$ 0.22 
$ 0.51 
$ 2.16 
$ 2.97 
$ (0.02)
$ 0.01 
$ (0.01)
$ (0.02)
$ (0.03)
$ 0.10 
$ 0.23 
$ 0.50 
$ 2.14 
$ 2.94 
Schedule II - Valuation and Qualifying Accounts (Detail) - Summary of Valuation Allowance (Reserve for Bad Debts [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Reserve for Bad Debts [Member]
 
 
 
Balance at beginning of period
$ 612 
$ 539 
$ 372 
Charged to costs and expenses
 
163 
277 
Deductions
(59)
(90)
(110)
Balance at end of period
$ 553 
$ 612 
$ 539