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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2016	Jul. 30, 2016
Document and Entity Information
Entity Registrant Name	COLLEGIUM PHARMACEUTICAL, INC
Entity Central Index Key	0001267565
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		23,528,440
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 110,747	$ 95,697
Accounts receivable, net	2,952
Inventory	1,214
Prepaid expenses and other current assets	1,537	1,186
Total current assets	116,450	96,883
Property and equipment, net	676	738
Intangible assets, net	2,500
Restricted cash	97	97
Total assets	119,723	97,718
Current liabilities:
Accounts payable	6,074	3,537
Accrued expenses	5,536	2,228
Deferred revenue	3,926
Current portion of term loan payable	2,667	2,667
Total current liabilities	18,203	8,432
Lease incentive obligation	51	68
Term loan payable, long-term	2,813	4,146
Total liabilities	21,067	12,646
Commitments and contingencies (see note 11)
Shareholders’ equity (deficit):
Preferred stock, $0.001 par value; authorized shares 5,000,000 at June 30, 2016 and December 31, 2015; issued and outstanding shares - none at June 30, 2016 and December 31, 2015
Common stock, $0.001 par value; authorized shares - 100,000,000 at June 30, 2016 and December 31, 2015; issued and outstanding shares - 23,528,119 at June 30, 2016 and 20,739,351 at December 31, 2015	24	21
Additional paid-in capital	267,815	214,062
Accumulated deficit	(169,180)	(129,008)
Treasury stock	(3)	(3)
Total shareholders’ equity	98,656	85,072
Total liabilities and shareholders’ equity	$ 119,723	$ 97,718

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	23,528,119	20,739,351
Common stock, outstanding shares	23,528,119	20,739,351

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Operating expenses:
Research and development	$ 4,301	$ 1,641	$ 8,363	$ 3,086
Selling, general and administrative	20,173	2,934	31,698	5,120
Total operating expenses	24,474	4,575	40,061	8,206
Loss from operations	(24,474)	(4,575)	(40,061)	(8,206)
Other expense (income):
Interest expense, net	46	99	111	254
Gain on extinguishment of debt				(91)
Total other expense, net	46	99	111	163
Net loss	$ (24,520)	$ (4,674)	$ (40,172)	$ (8,369)
Earnings (loss) per share - basic and diluted	$ (1.05)	$ (0.45)	$ (1.73)	$ (0.18)
Weighted-average shares - basic and diluted	23,417,378	11,791,546	23,273,765	6,426,431

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net loss	$ (40,172)	$ (8,369)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	87	92
Lease incentive	(17)	(16)
Stock-based compensation expense	2,496	714
Non cash interest expense		7
Changes in operating assets and liabilities:
Accounts receivable	(2,952)
Inventories	(1,214)
Prepaid expenses and other current assets	(351)	(692)
Refundable PDUFA fee		2,335
Accounts payable	2,537	32
Deferred revenue	3,926
Accrued expenses	3,308	(195)
Net cash used in operating activities	(32,352)	(6,092)
Investing activities
Purchase of intangible assets	(2,500)
Purchases of property and equipment	(25)	(23)
Net cash used in investing activities	(2,525)	(23)
Financing activities
Repayment of term note	(1,333)	(368)
Repayment of lease note payable		(29)
Restricted cash		(16)
Proceeds from the exercise of stock options	86	471
Net cash provided by financing activities	49,927	116,894
Net increase in cash and cash equivalents	15,050	110,779
Cash and cash equivalents at beginning of period	95,697	1,634
Cash and cash equivalents at end of period	110,747	112,413
Supplemental disclosure of cash flow information
Cash paid for offering costs	512	1,598
Cash paid for interest	159	202
Supplemental disclosure of non-cash activities
Accruals of offering costs		105
Accruals of dividends and accretion to redemption value		24,572
Common stock
Financing activities
Proceeds from issuance of stock, net of issuance costs	$ 51,174	72,029
Series D convertible redeemable preferred stock
Financing activities
Proceeds from issuance of stock, net of issuance costs		$ 44,807

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Class of Stock [Line Items]
Stock issuance costs	$ 526
Common stock
Class of Stock [Line Items]
Stock issuance costs	$ 526	$ 2,408
Series D convertible redeemable preferred stock
Class of Stock [Line Items]
Stock issuance costs		$ 193

Nature of Business	6 Months Ended
Nature of Business	Jun. 30, 2016
Nature of Business
Nature of Business	1. Nature of Business Collegium Pharmaceutical, Inc. (the ‘‘Company’’) was incorporated in Delaware in April 2002 and then reincorporated in Virginia in July 2014. The Company has its principal operations in Canton, Massachusetts. The Company is a specialty pharmaceutical company developing and beginning to commercialize next-generation abuse-deterrent products that incorporate the Company’s patented DETERx® technology platform for the treatment of chronic pain and other diseases. The Company’s first product, Xtampza ER®, or Xtampza, is an abuse-deterrent, extended-release, oral formulation of oxycodone, a widely prescribed opioid medication. On April 26, 2016, the U.S. Food and Drug Administration (‘‘FDA’’) approved the Company’s new drug application (‘‘NDA’’) filing for Xtampza for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment and for which alternative treatment options are inadequate. On June 20, 2016, the Company announced the commercial launch of Xtampza. The Company’s operations are subject to certain risks and uncertainties. The principal risks include inability to successfully commercialize products, negative outcome of clinical trials, inability or delay in completing clinical trials or obtaining regulatory approvals, changing market conditions for products and product candidates (including development of competing products), the need to retain key personnel and protect intellectual property, patent infringement litigation and the availability of additional capital financing on terms acceptable to the Company. The Company has an accumulated deficit of $169,180 at June 30, 2016. The Company has financed its operations primarily through private placements of its preferred stock, proceeds from borrowings, an initial public offering completed in 2015 and a follow-on offering completed in 2016. The Company anticipates that it will continue to incur losses for the next several years, and it expects the losses to increase as it continues the development of, and seeks regulatory approvals for its product candidates, and begins to commercialize Xtampza. The Company believes that its cash, cash equivalents and marketable securities at June 30, 2016, together with expected cash inflows from the commercialization of Xtampza, will enable the Company to fund its operating expenses, debt service and capital expenditure requirements for at least twelve months from the filing date of this Quarterly Report on Form 10-Q.

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Collegium Pharmaceutical, Inc. (a Virginia corporation) as well as the accounts of Collegium Securities Corp. (a Massachusetts corporation), incorporated in December 2015, a wholly-owned subsidiary requiring consolidation. The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and as required by Regulation S-X, Rule 10-01. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to fairly present the financial position as of June 30, 2016, the results of operations for the three and six months ended June 30, 2016 and 2015, and cash flows for the six months ended June 30, 2016 and 2015. The results of operations for the three and six month periods ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year. When preparing financial statements in conformity with GAAP, the Company must make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements. Actual results could differ from those estimates. The consolidated interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report. Public Offerings of Common Stock In May 2015, the Company closed an initial public offering (“IPO”) of its common stock, which resulted in the sale of 6,670,000 shares of its common stock at a public offering price of $12.00 per share, including 870,000 shares of common stock upon the exercise by the underwriters of their option to purchase additional shares at the public offering price. The Company received proceeds from the IPO of approximately $72,029, after deducting underwriting discounts, commissions and expenses payable by the Company. In connection with preparing for the IPO, the Company’s Board of Directors and shareholders approved a one-for-6.9 reverse stock split of the Company’s common stock. The reverse stock split became effective in April 2015. All share and per share amounts in the consolidated interim financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid-in capital. In connection with the closing of the IPO, all of the Company’s outstanding convertible preferred stock automatically converted to common stock in May 2015, resulting in an additional 12,591,456 shares of common stock of the Company becoming outstanding. In January 2016, the Company issued and sold in a public offering an aggregate of 2,750,000 shares of its common stock at $20.00 per share. This public offering resulted in approximately $51,174 of net proceeds, after deduction of underwriting discounts and commissions and expenses payable by the Company. The significant increase in common stock outstanding in June 2016 is expected to impact the year-over-year comparability of the Company’s net loss per share calculations in future periods. Subsequent Events We consider events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. Significant Accounting Policies Inventory Inventories are stated at the lower of cost or market. Inventory costs consist of costs related to the manufacturing of Xtampza, which are primarily the costs of contract manufacturing. The Company determines the cost of its inventories on a specific identification basis. If the Company identifies excess, obsolete or unsalable items, inventories are written down to their realizable value in the period in which the impairment is identified. Estimates of excess inventory consider various factors, including inventory levels, the level of product in the distribution channel, the Company’s projected sales of the product, as well as the remaining shelf lives of the product. Inventories that are not expected to be used within one year are recorded as a non-current asset. The Company outsources the manufacturing of Xtampza to a sole contract manufacturer that produces the finished product. In addition, the Company currently relies on a sole supplier for the active pharmaceutical ingredient for Xtampza. Accordingly, the Company has concentration risk associated with its manufacturing for supply of Xtampza. Prior to receiving approval from the FDA in April 2016, to market Xtampza, the Company expensed all costs incurred related to the manufacturing of Xtampza as research and development costs because of the inherent risks associated with the development of a product candidate, the uncertainty about the regulatory approval process and the lack of regulatory approval history for the Company’s product candidates. The Company has capitalized $1,214 of inventory as of June 30, 2016. Certain materials used in the manufacture of Xtampza were expensed prior to FDA approval. The Company expects sales of the capitalized units to occur during the next twelve months. The Company expects the cost of product revenue to increase as the Company begins to sell inventory that was produced entirely after the FDA approval of Xtampza. Revenue Recognition Revenue for product sales is recognized when there is persuasive evidence of an arrangement, title and risk of loss have passed to the customer, when estimated provisions for chargebacks, rebates, sales incentives and allowances, distribution service fees, and returns are reasonably determinable, and when collectability is reasonably assured. Product sales are recorded net of estimated chargebacks, rebates, sales incentives and allowance, distribution service fees, as well as estimated product returns. The Company has not yet recorded any product revenue, as it has not yet concluded that it meets the revenue recognition criteria under current accounting guidance The requisite historical data on which to base estimates of returns is insufficient due to the uniqueness of the product as compared to other products in the industry. Therefore revenue is deferred until such time that an estimate can be determined, all the conditions above are met and when the product has achieved market acceptance, which is typically based on dispensed prescription data and other information obtained during the period following launch. Advertising and Product Promotion Costs Advertising and product promotion costs are included in selling, general and administrative expenses and were $4,680 and $7,006 in the three and six months ended June 30, 2016. Advertising and product promotion costs are expensed as incurred. Recent Accounting Pronouncements New accounting pronouncements are issued periodically by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as of the specified effective dates. In May 2014, FASB issued Accounting Standard Update, or ASU, 2014-09 (ASC 606), Revenue from Contracts with Customers, which affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the currently effective guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. ASU 2014-09 was initially to be effective for annual periods beginning after December 15, 2016, including interim periods within that period. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers, which delays the effective date of ASU 2014-09 by one year to annual periods beginning after December 15, 2017. The standard allows for early adoption as of the original effective date. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, or ASU 2016-08, which clarifies certain principal versus agent considerations. The Company is currently evaluating its effect on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU 2014‑12, Compensation — Stock Compensation (Topic 718): Accounting for Share‑Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period. ASU 2014‑12 applies to all reporting entities that grant their employees share‑based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2015 and interim periods within those annual periods. The Company adopted this standard in the first quarter of fiscal year 2016 and it did not have a material impact on our financial statements as of and for the quarter and six months ended June 30, 2016. The Company has stock options with a performance based vesting condition, which if achieved would result in the recognition of $193 in stock compensation expense in the period vested. In August 2014, the FASB issued ASU No. 2014‑15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014‑15 requires management to evaluate, at each annual or interim reporting period, whether there are conditions or events that exist that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014‑15 is effective for annual periods ending after December 15, 2016 and earlier application is permitted. The adoption of ASU 2014‑15 is not expected to have a material effect on the Company’s financial statements or disclosures. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, or ASU 2015-11. ASU 2015-11 applies to all inventory, except for inventory measured using the last-in, first-out method or the retail inventory method. The guidance allows an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in ASU 2015-11 are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and may be applied prospectively with earlier adoption permitted. As the Company is in the early stages of commercialization of Xtampza, the Company has adopted ASU 2015-11 upon the initial capitalization of inventory. In November 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes (Topic 740). ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax assets and liabilities into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax assets and liabilities be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2017, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating its effect on the Company’s consolidated financial statements. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). The ASU requires lessees to put most leases on their balance sheets as a liability for the obligation to make lease payments and as a right-of-use asset, but recognize expenses on the income statements in a manner similar to today’s accounting. The guidance also eliminates the current real estate-specific provisions for all entities. For calendar-year public entities, the guidance becomes effective in 2019 and interim periods within that year. Early adoption is permitted for all entities. The Company has not chosen early adoption for this ASU and is currently evaluating its effect on the Company’s consolidated financial statements In March 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU, 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, or ASU 2016-09. ASU 2016-09 intends to simplify various aspects of how share-based payments are accounted for and presented in the financial statements. The main provisions include: all tax effects related to stock awards will now be recorded through the statement of operations instead of through equity, all tax-related cash flows resulting from stock awards will be reported as operating activities on the cash flow statement, and entities can make an accounting policy election to either estimate forfeitures or account for forfeitures as they occur. The amendments in ASU 2016-09 are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and may be applied prospectively with earlier adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

Earnings (Loss) per Common Share

6 Months Ended

Jun. 30, 2016

Earnings (Loss) per Common Share

Earnings (Loss) per Common Share

3. Earnings (Loss) per Common Share

Earnings (loss) per common share is calculated using the two-class method, which is an earnings allocation formula that determines earnings (loss) per share for the holders of the Company’s common shares and participating securities. All series of preferred stock contain participation rights in any dividend paid by the Company and are deemed to be participating securities. Earnings available to common shareholders and participating convertible redeemable preferred shares is allocated first to the preferred shareholders based upon the distribution criteria in the Company’s Articles of Incorporation then the remainder to the common shareholders. The participating securities do not include a contractual obligation to share in losses of the Company and are not included in the calculation of net loss per share in the periods that have a net loss.

Diluted earnings per share is computed using the more dilutive of (a) the two-class method, or (b) the if-converted method. The Company allocates earnings first to preferred shareholders based on dividend rights and then to common and preferred shareholders based on ownership interests. The weighted-average number of common shares included in the computation of diluted earnings (loss) gives effect to all potentially dilutive common equivalent shares, including outstanding stock options, warrants, convertible redeemable preferred stock and the potential issuance of stock upon the conversion of the Company’s convertible notes. Common stock equivalent shares are excluded from the computation of diluted earnings (loss) per share if their effect is antidilutive.



	Three months ended				Six months ended
	June 30,				June 30,
		2016		2015		2016		2015

Net loss	$	(24,520)	$	(4,674)	$	(40,172)	$	(8,369)
Extinguishment of preferred stock - see note 9		—		—		—		31,806
Accretion of prior preferred stock		—		—		—		(23,327)
Accretion and dividends of series D preferred stock		—		(641)		—		(1,245)
Loss attributable to common shareholders — basic and diluted	$	(24,520)	$	(5,315)	$	(40,172)	$	(1,135)

Weighted-average number of common shares used in net loss per share - basic and diluted		23,417,378		11,791,546		23,273,765		6,426,431
(Loss) earnings per share - basic	$	(1.05)	$	(0.45)	$	(1.73)	$	(0.18)

The following potentially dilutive securities, which represent all outstanding potentially dilutive securities, were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect (in common stock equivalent shares):



	Three months ended		Six months ended
	June 30,		June 30,
	2016	2015	2016	2015

Outstanding stock options	2,290,112	1,086,789	2,290,112	1,086,789
Warrants	2,445	2,445	2,445	2,445
Redeemable convertible preferred stock	—	—	—	—
Unvested restricted stock	59,494	164,539	59,494	164,539

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2016

Fair Value of Financial Instruments

Fair Value of Financial Instruments

4. Fair Value of Financial Instruments

The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. The fair value hierarchy is now established that prioritizes valuation inputs based on the observable nature of those inputs. The fair value hierarchy applies only to the valuation inputs used in determining the reported fair value of the investments and is not a measure of the investment credit quality. The hierarchy defines three levels of valuation inputs:


Level 1 inputs	Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 inputs	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
Level 3 inputs	Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability

The following tables present the Company’s financial instruments carried at fair value using the lowest level input applicable to each financial instrument at June 30, 2016 and December 31, 2015.


					Significant
			Quoted Prices		other		Significant
			in active		observable		unobservable
			markets		inputs		inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
June 30, 2016
Money market funds, included in cash equivalents	$	89,883	$	89,883	$	—	$	—

December 31, 2015
Money market funds, included in cash equivalents	$	94,912	$	94,912	$	—	$	—

The Company’s cash equivalents are comprised of money market funds that are measured on a recurring basis based on quoted market prices. As of June 30, 2016 and December 31, 2015, the carrying amounts of cash and cash equivalents, accounts payable, loan payable and accrued expenses approximated their estimated fair values because of the short-term nature of these financial instruments.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventory

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Inventory

5. Inventory

Upon approval of Xtampza by the FDA in April 2016, the Company began capitalizing inventory costs for Xtampza manufactured in preparation for the product launch. In periods prior to April 2016, the Company expensed costs associated with Xtampza, including raw materials, work in process and finished goods, as development expenses. The Company has not capitalized inventory costs related to its other drug development programs.

The following table sets forth the Company’s inventories as of June 30, 2016:


	June 30, 2016
Raw materials	$	46
Work in process		—
Finished goods		1,168
Total inventory	$	1,214

Intangible Asset	6 Months Ended
Intangible Asset	Jun. 30, 2016
Intangible Assets, Gross (Excluding Goodwill) [Abstract]
Intangible Asset	6. Intangible Asset In May 2016, the Company entered into an agreement with BioDelivery Sciences International, Inc. (BDSI) to license the rights to develop, manufacture, and commercialize ONSOLIS® (fentanyl buccal soluble film) in the United States. ONSOLIS is a Transmucosal Immediate-Release Fentanyl (TIRF) film indicated for the management of breakthrough pain in certain cancer patients. The Company expects to launch the product after the completion of the transfer of manufacturing and required submission to the FDA of a Prior Approval Supplement. Subject to FDA approval of the Prior Approval Supplement, the Company expects to launch ONSOLIS during the second half of 2017. In addition, during the term of the License Agreement, milestone payments in the aggregate amount of $21.0 million may become payable by the Company subject to the satisfaction of certain commercialization, intellectual property, and net sales milestones, including $4 million upon the first commercial sale of the product in the U.S. Finally, the Company will be required to pay royalties in the upper teens based on annual net sales of the product in the U.S The Company made an upfront payment of $2.5 million and is contractually committed to reimburse BDSI up to a maximum of $2.0 million for its out-of-pocket expenses incurred in conjunction with the manufacturing transfer. The Company recorded the upfront payment as an intangible asset on the Condensed Consolidated Balance Sheet at June 30, 2016 and will amortize it over the shorter of the remaining patent life or the estimated period of economic benefit.

Accrued Expenses

6 Months Ended

Jun. 30, 2016

Accrued Expenses

Accrued Expenses

7. Accrued Expenses

Accrued expenses consisted of the following:



	June 30, 2016		December 31, 2015
Accrued bonuses and incentive compensation	$	2,281	$	1,474
Accrued payroll and related benefits		991		93
Accrued sales & marketing		1,064		157
Accrued development costs		750		80
Accrued other operating costs		242		186
Accrued audit and legal		185		209
Accrued interest		23		29
Total accrued expenses	$	5,536	$	2,228

Convertible Bridge Note with Related Party	6 Months Ended
Convertible Bridge Note with Related Party	Jun. 30, 2016
Convertible Bridge Note with Related Party
Convertible Bridge Note with Related Party	8. Convertible Bridge Note with Related Party In November and December 2014, the Company entered into a Note Purchase Agreement (the "Bridge Notes") allowing for the issuance of $5,000 of convertible promissory notes to a group of investors (the "Holders") bearing interest at a rate per annum of 6.0%. The Holders are related parties of the Company. In connection with the Series D convertible preferred stock financing (see note 8), the Bridge Notes converted into Series D convertible preferred stock. Upon the conversion, the Company recognized a gain on extinguishment of $91.

Convertible Preferred Stock and Equity

6 Months Ended

Jun. 30, 2016

Convertible Preferred Stock and Equity

Convertible Preferred Stock and Equity

9. Convertible Preferred Stock and Equity

In March 2015, the Company issued and sold an aggregate of 41,666,667 shares of Series D convertible preferred stock for aggregate consideration of $50,000, comprised of $45,000 in cash and conversion of $5,000 in Bridge Notes. The accrued interest on the convertible notes was waived.

Concurrently with the issuance of the Series D convertible preferred stock, the Company amended and restated its Articles of Incorporation (the “Amended Articles”). The Company made certain amendments to the terms of the Series A, Series B, and Series C Preferred Stock (together, the “Prior Preferred Stock”). Prior to the adoption of the Amended Articles, the Series A, Series B, and Series C Preferred Stock accrued dividends at a rate of 4.5%, 8.0% and 8.0% per annum, respectively, per share. All accrued and unpaid dividends on the Prior Preferred Stock were automatically cancelled and forfeited and the Prior Preferred Stock no longer accrued dividends. Prior to the cancellation and forfeiture of accrued dividends, the Prior Preferred Stock had accrued dividends of $622 during 2015. The holders of outstanding shares of Prior Preferred Stock were entitled to receive dividends, when, as and if declared by the Board of Directors. The mandatory conversion for all series of Prior Preferred Stock was modified so as to occur upon an initial public offering with gross proceeds in excess of $50,000. The amendments to the Prior Preferred Stock were treated as an extinguishment which resulted in a gain on extinguishment of $31,806. The gain on extinguishment was added to net loss to arrive at income available to common shareholders in the calculation of earnings per share.

In connection with the closing of the IPO, all of the Company’s outstanding convertible preferred stock automatically converted to common stock in May 2015, resulting in an additional 12,591,456 shares of common stock of the Company becoming outstanding.

The changes in shareholders’ equity for the six-month period ended June 30, 2016 were as follows:


				Additional		Treasury		Other		Accumulated		Total
	Common Stock			Paid- In		Stock,		Comprehensive		Deficit		Shareholders’
	Shares		Amount	Capital		at cost		Income				Equity (Deficit)
Balance, January 1, 2016	20,739,351	$	21	$	214,062	$	(3)	$	—	$	(129,008)	$	85,072
Public offering of common stock, net of issuance costs of $526	2,750,000		3		51,171		—		—		—		51,174
Stock-based compensation	-		—		2,496		—		—		—		2,496
Exercise of common stock options	38,768		—		86		—		—		—		86
Net loss	—		—		—		—		—		(40,172)		(40,172)
Balance, June 30, 2016	23,528,119	$	24	$	267,815	$	(3)	$	—	$	(169,180)	$	98,656

Stock-based Compensation

6 Months Ended

Jun. 30, 2016

Stock-based Compensation

Stock-based Compensation

10. Stock-based Compensation

Restricted Stock Awards and Stock Options

In May 2015, the Company adopted the Amended and Restated 2014 Stock Incentive Plan (the “Plan”), under which an aggregate of 2,700,000 shares of common stock are authorized for issuance to employees, officers, directors, consultants and advisors of the Company, plus an annual increase to be added on the first day of each fiscal year until the expiration of the Plan equal to 4% of the total number of outstanding shares of common stock on December 31st of the immediately preceding calendar year (or a lower amount as otherwise determined by the board of directors prior to January 1st). As of June 30, 2016, there were 1,358,694 shares of common stock available for issuance pursuant to the Plan. The Plan provides for granting of both Internal Revenue Service qualified incentive stock options (“ISOs”) and non-qualified options (“NQs”), restricted stock awards (“RSAs”) and restricted stock units (“RSUs”). Stock options generally vest over a four year period of service; however, certain options are also subject to performance conditions. The options generally have a ten year contractual life and, upon termination, vested options are generally exercisable between one and three months following the termination date, while unvested options are forfeited immediately.

Restricted common stock

A summary of the Company’s restricted stock award (RSAs) activity for the six months ended June 30, 2016 and related information is as follows:


		Weighted average
		purchase price
	Shares	per share
Unvested at December 31, 2015	75,718	$	5.73
Granted	—		—
Vested	(16,224)		5.73
Unvested at June 30, 2016 (1)	59,494	$	5.73

(1)Excludes 48,307 shares of unvested restricted stock remaining from the early exercise of stock options as of June 30, 2016.

A summary of the Company’s restricted stock units (RSUs) activity for the six months ended June 30, 2016 and related information is as follows:



	Shares	Average grant date fair value
Outstanding at December 31, 2015	—	$	—
Granted	41,739		16.15
Settled	—		—
Forfeited	—		—
Outstanding at June 30, 2016	41,739	$	16.15

Stock options

A summary of the Company’s stock option activity and related information follows:


				Weighted-
			Weighted-	average
			average	remaining		Aggregate
			exercise price	contractual		Intrinsic
	Shares		per share	term (years)		Value
Outstanding at December 31, 2015	1,452,149	$	10.37	10.4	$	24,887
Granted	924,981		16.60
Exercised	(38,768)		2.22
Cancelled	(48,250)		16.07
Outstanding at June 30, 2016	2,290,112	$	12.90	9.1	$	5,208
Exercisable at June 30, 2016	383,239	$	7.54	8.2	$	2,135
Vested and expected to vest at June 30, 2016	2,262,479	$	12.96	9.1	$	5,339

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


	Six months ended
	2016		2015
Risk-free interest rate	1.5	%	1.7	%
Volatility	77	%	77	%
Expected term (years)	6.02		6.25
Expected dividend yield	-		-

A summary of the Company’s compensation expense from stock-based payment awards follows:



	Three months ended				Six months ended
	June 30,				June 30,
	2016		2015		2016		2015

Research and development expenses	$	165	$	55	$	303	$	76
Selling, general and administrative expenses		1,230		546		2,193		638
Total stock-based compensation expense	$	1,395	$	601	$	2,496	$	714

At June 30, 2016, there was approximately $17,483 of unrecognized compensation expense related to unvested options, restricted stock units and restricted stock awards under the Plan, which is expected to be recognized as expense over a weighted average period of approximately 3.2 years.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2016
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies From time to time, the Company may be subject to various claims and legal proceedings. If the potential loss from any claim, asserted or unasserted, or legal proceeding is considered probable and the amount is reasonably estimated, the Company will accrue a liability for the estimated loss. Except as disclosed below, the Company is not currently a party to any litigation and, accordingly, does not have any amounts recorded for any litigation related matters. The Company’s NDA filing for Xtampza is a 505(b)(2) application, which allows the Company to reference data from an approved drug listed in the FDA’s Approved Drug Products with Therapeutic Equivalence Evaluations (commonly known as the ‘‘Orange Book’’), in this case OxyContin OP. In connection with the 505(b)(2) process, the Company certified to the FDA and notified Purdue Pharma, L.P. (‘‘Purdue’’), as the holder of the NDA and any other Orange Book-listed patent owners, that the Company does not infringe any of the patents listed for OxyContin OP in the Orange Book. Under the Hatch-Waxman Act of 1984 (the ‘‘Hatch-Waxman Act’’), Purdue had the option to sue the Company for infringement and receive a stay of up to 30 months before the FDA can issue a final regulatory approval for Xtampza, unless the stay is earlier terminated. Purdue exercised its option and elected to sue the Company for infringement in the District of Delaware in March 2015 asserting infringement of three of Purdue’s Orange Book‑listed patents and one non-Orange Book-listed patent. Purdue filed another case in Massachusetts asserting the same four patents as in the Delaware case. In October 2015, the Delaware case was transferred to Massachusetts. In November 2015, Purdue filed suit asserting infringement of another non-Orange Book-listed patent. On November 9, 2015, the Company filed a motion for partial judgment on the pleadings in relation to three Orange Book-listed patents asserted against the Company, which had been previously invalidated by the court in the Southern District of New York in Purdue’s suit against another company. On February 1, 2016, the Court of Appeals for the Federal Circuit affirmed the New York judgment of invalidity. On May 4, 2016, the Court of Appeals for the Federal Circuit denied Purdue’s request for rehearing and rehearing en banc review was denied. On February 9, 2016, the District Court of Massachusetts ordered judgment in favor of the Company on the three Orange Book-listed patents that were the basis of the 30-month stay, Patent Nos. 7,674,799, 7,674,800, and 7,683,072 and dismissed the claims asserting infringement of those patents with prejudice. Upon dismissal of those claims, the 30-month stay of FDA approval was lifted. Purdue continues to assert infringement of two patents against the Company, neither of which is associated with any stay of FDA approval. At this time the Company is unable to provide meaningful quantification of how this litigation may impact its future financial condition, results of operations, or cash flows.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2016
Summary of Significant Accounting Policies
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Collegium Pharmaceutical, Inc. (a Virginia corporation) as well as the accounts of Collegium Securities Corp. (a Massachusetts corporation), incorporated in December 2015, a wholly-owned subsidiary requiring consolidation. The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and as required by Regulation S-X, Rule 10-01. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to fairly present the financial position as of June 30, 2016, the results of operations for the three and six months ended June 30, 2016 and 2015, and cash flows for the six months ended June 30, 2016 and 2015. The results of operations for the three and six month periods ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year. When preparing financial statements in conformity with GAAP, the Company must make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements. Actual results could differ from those estimates. The consolidated interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report.
Public Offerings of Common Stock	Public Offerings of Common Stock In May 2015, the Company closed an initial public offering (“IPO”) of its common stock, which resulted in the sale of 6,670,000 shares of its common stock at a public offering price of $12.00 per share, including 870,000 shares of common stock upon the exercise by the underwriters of their option to purchase additional shares at the public offering price. The Company received proceeds from the IPO of approximately $72,029, after deducting underwriting discounts, commissions and expenses payable by the Company. In connection with preparing for the IPO, the Company’s Board of Directors and shareholders approved a one-for-6.9 reverse stock split of the Company’s common stock. The reverse stock split became effective in April 2015. All share and per share amounts in the consolidated interim financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid-in capital. In connection with the closing of the IPO, all of the Company’s outstanding convertible preferred stock automatically converted to common stock in May 2015, resulting in an additional 12,591,456 shares of common stock of the Company becoming outstanding. In January 2016, the Company issued and sold in a public offering an aggregate of 2,750,000 shares of its common stock at $20.00 per share. This public offering resulted in approximately $51,174 of net proceeds, after deduction of underwriting discounts and commissions and expenses payable by the Company. The significant increase in common stock outstanding in June 2016 is expected to impact the year-over-year comparability of the Company’s net loss per share calculations in future periods.
Subsequent Events	Subsequent Events We consider events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements.
Inventory	Inventory Inventories are stated at the lower of cost or market. Inventory costs consist of costs related to the manufacturing of Xtampza, which are primarily the costs of contract manufacturing. The Company determines the cost of its inventories on a specific identification basis. If the Company identifies excess, obsolete or unsalable items, inventories are written down to their realizable value in the period in which the impairment is identified. Estimates of excess inventory consider various factors, including inventory levels, the level of product in the distribution channel, the Company’s projected sales of the product, as well as the remaining shelf lives of the product. Inventories that are not expected to be used within one year are recorded as a non-current asset. The Company outsources the manufacturing of Xtampza to a sole contract manufacturer that produces the finished product. In addition, the Company currently relies on a sole supplier for the active pharmaceutical ingredient for Xtampza. Accordingly, the Company has concentration risk associated with its manufacturing for supply of Xtampza. Prior to receiving approval from the FDA in April 2016, to market Xtampza, the Company expensed all costs incurred related to the manufacturing of Xtampza as research and development costs because of the inherent risks associated with the development of a product candidate, the uncertainty about the regulatory approval process and the lack of regulatory approval history for the Company’s product candidates. The Company has capitalized $1,214 of inventory as of June 30, 2016. Certain materials used in the manufacture of Xtampza were expensed prior to FDA approval. The Company expects sales of the capitalized units to occur during the next twelve months. The Company expects the cost of product revenue to increase as the Company begins to sell inventory that was produced entirely after the FDA approval of Xtampza.
Revenue Recognition	Revenue Recognition Revenue for product sales is recognized when there is persuasive evidence of an arrangement, title and risk of loss have passed to the customer, when estimated provisions for chargebacks, rebates, sales incentives and allowances, distribution service fees, and returns are reasonably determinable, and when collectability is reasonably assured. Product sales are recorded net of estimated chargebacks, rebates, sales incentives and allowance, distribution service fees, as well as estimated product returns. The Company has not yet recorded any product revenue, as it has not yet concluded that it meets the revenue recognition criteria under current accounting guidance The requisite historical data on which to base estimates of returns is insufficient due to the uniqueness of the product as compared to other products in the industry. Therefore revenue is deferred until such time that an estimate can be determined, all the conditions above are met and when the product has achieved market acceptance, which is typically based on dispensed prescription data and other information obtained during the period following launch.
Advertising and Product Promotion Costs	Advertising and Product Promotion Costs Advertising and product promotion costs are included in selling, general and administrative expenses and were $4,680 and $7,006 in the three and six months ended June 30, 2016. Advertising and product promotion costs are expensed as incurred.
Recently Issued Accounting Pronouncements	Recent Accounting Pronouncements New accounting pronouncements are issued periodically by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as of the specified effective dates. In May 2014, FASB issued Accounting Standard Update, or ASU, 2014-09 (ASC 606), Revenue from Contracts with Customers, which affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the currently effective guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. ASU 2014-09 was initially to be effective for annual periods beginning after December 15, 2016, including interim periods within that period. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers, which delays the effective date of ASU 2014-09 by one year to annual periods beginning after December 15, 2017. The standard allows for early adoption as of the original effective date. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, or ASU 2016-08, which clarifies certain principal versus agent considerations. The Company is currently evaluating its effect on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU 2014‑12, Compensation — Stock Compensation (Topic 718): Accounting for Share‑Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period. ASU 2014‑12 applies to all reporting entities that grant their employees share‑based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2015 and interim periods within those annual periods. The Company adopted this standard in the first quarter of fiscal year 2016 and it did not have a material impact on our financial statements as of and for the quarter and six months ended June 30, 2016. The Company has stock options with a performance based vesting condition, which if achieved would result in the recognition of $193 in stock compensation expense in the period vested. In August 2014, the FASB issued ASU No. 2014‑15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014‑15 requires management to evaluate, at each annual or interim reporting period, whether there are conditions or events that exist that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014‑15 is effective for annual periods ending after December 15, 2016 and earlier application is permitted. The adoption of ASU 2014‑15 is not expected to have a material effect on the Company’s financial statements or disclosures. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, or ASU 2015-11. ASU 2015-11 applies to all inventory, except for inventory measured using the last-in, first-out method or the retail inventory method. The guidance allows an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in ASU 2015-11 are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and may be applied prospectively with earlier adoption permitted. As the Company is in the early stages of commercialization of Xtampza, the Company has adopted ASU 2015-11 upon the initial capitalization of inventory. In November 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes (Topic 740). ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax assets and liabilities into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax assets and liabilities be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2017, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating its effect on the Company’s consolidated financial statements. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). The ASU requires lessees to put most leases on their balance sheets as a liability for the obligation to make lease payments and as a right-of-use asset, but recognize expenses on the income statements in a manner similar to today’s accounting. The guidance also eliminates the current real estate-specific provisions for all entities. For calendar-year public entities, the guidance becomes effective in 2019 and interim periods within that year. Early adoption is permitted for all entities. The Company has not chosen early adoption for this ASU and is currently evaluating its effect on the Company’s consolidated financial statements In March 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU, 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, or ASU 2016-09. ASU 2016-09 intends to simplify various aspects of how share-based payments are accounted for and presented in the financial statements. The main provisions include: all tax effects related to stock awards will now be recorded through the statement of operations instead of through equity, all tax-related cash flows resulting from stock awards will be reported as operating activities on the cash flow statement, and entities can make an accounting policy election to either estimate forfeitures or account for forfeitures as they occur. The amendments in ASU 2016-09 are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and may be applied prospectively with earlier adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

- Definition

Disclosure of accounting policy for major classes of inventories, bases of stating inventories (for example, lower of cost or market), methods by which amounts are added and removed from inventory classes (for example, FIFO, LIFO, or average cost), loss recognition on impairment of inventories, and situations in which inventories are stated above cost. If inventory is carried at cost, this disclosure includes the nature of the cost elements included in inventory.

+ References + Details

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Earnings (Loss) per Common Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings (Loss) per Common Share

Schedule of computations of basic and diluted net loss per share



	Three months ended				Six months ended
	June 30,				June 30,
		2016		2015		2016		2015

Net loss	$	(24,520)	$	(4,674)	$	(40,172)	$	(8,369)
Extinguishment of preferred stock - see note 9		—		—		—		31,806
Accretion of prior preferred stock		—		—		—		(23,327)
Accretion and dividends of series D preferred stock		—		(641)		—		(1,245)
Loss attributable to common shareholders — basic and diluted	$	(24,520)	$	(5,315)	$	(40,172)	$	(1,135)

Weighted-average number of common shares used in net loss per share - basic and diluted		23,417,378		11,791,546		23,273,765		6,426,431
(Loss) earnings per share - basic	$	(1.05)	$	(0.45)	$	(1.73)	$	(0.18)

Schedule of potentially dilutive securities excluded from computations of diluted weighted-average shares outstanding



	Three months ended		Six months ended
	June 30,		June 30,
	2016	2015	2016	2015

Outstanding stock options	2,290,112	1,086,789	2,290,112	1,086,789
Warrants	2,445	2,445	2,445	2,445
Redeemable convertible preferred stock	—	—	—	—
Unvested restricted stock	59,494	164,539	59,494	164,539

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value of Financial Instruments

Schedule of financial instruments measured at fair value by level within fair value hierarchy


					Significant
			Quoted Prices		other		Significant
			in active		observable		unobservable
			markets		inputs		inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
June 30, 2016
Money market funds, included in cash equivalents	$	89,883	$	89,883	$	—	$	—

December 31, 2015
Money market funds, included in cash equivalents	$	94,912	$	94,912	$	—	$	—

Inventory (Tables)

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Schedule of Inventory


	June 30, 2016
Raw materials	$	46
Work in process		—
Finished goods		1,168
Total inventory	$	1,214

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2016

Accrued Expenses

Schedule of components of accrued expenses



	June 30, 2016		December 31, 2015
Accrued bonuses and incentive compensation	$	2,281	$	1,474
Accrued payroll and related benefits		991		93
Accrued sales & marketing		1,064		157
Accrued development costs		750		80
Accrued other operating costs		242		186
Accrued audit and legal		185		209
Accrued interest		23		29
Total accrued expenses	$	5,536	$	2,228

Convertible Preferred Stock and Equity (Tables)

6 Months Ended

Jun. 30, 2016

Convertible Preferred Stock and Equity

Summary of Changes in Shareholders' Equity


				Additional		Treasury		Other		Accumulated		Total
	Common Stock			Paid- In		Stock,		Comprehensive		Deficit		Shareholders’
	Shares		Amount	Capital		at cost		Income				Equity (Deficit)
Balance, January 1, 2016	20,739,351	$	21	$	214,062	$	(3)	$	—	$	(129,008)	$	85,072
Public offering of common stock, net of issuance costs of $526	2,750,000		3		51,171		—		—		—		51,174
Stock-based compensation	-		—		2,496		—		—		—		2,496
Exercise of common stock options	38,768		—		86		—		—		—		86
Net loss	—		—		—		—		—		(40,172)		(40,172)
Balance, June 30, 2016	23,528,119	$	24	$	267,815	$	(3)	$	—	$	(169,180)	$	98,656

Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2016

Stock-based Compensation

Summary of restricted stock awards

A summary of the Company’s restricted stock award (RSAs) activity for the six months ended June 30, 2016 and related information is as follows:


		Weighted average
		purchase price
	Shares	per share
Unvested at December 31, 2015	75,718	$	5.73
Granted	—		—
Vested	(16,224)		5.73
Unvested at June 30, 2016 (1)	59,494	$	5.73

(1)Excludes 48,307 shares of unvested restricted stock remaining from the early exercise of stock options as of June 30, 2016.

A summary of the Company’s restricted stock units (RSUs) activity for the six months ended June 30, 2016 and related information is as follows:



	Shares	Average grant date fair value
Outstanding at December 31, 2015	—	$	—
Granted	41,739		16.15
Settled	—		—
Forfeited	—		—
Outstanding at June 30, 2016	41,739	$	16.15

Summary of stock option activity


				Weighted-
			Weighted-	average
			average	remaining		Aggregate
			exercise price	contractual		Intrinsic
	Shares		per share	term (years)		Value
Outstanding at December 31, 2015	1,452,149	$	10.37	10.4	$	24,887
Granted	924,981		16.60
Exercised	(38,768)		2.22
Cancelled	(48,250)		16.07
Outstanding at June 30, 2016	2,290,112	$	12.90	9.1	$	5,208
Exercisable at June 30, 2016	383,239	$	7.54	8.2	$	2,135
Vested and expected to vest at June 30, 2016	2,262,479	$	12.96	9.1	$	5,339

Schedule of weighted-average assumptions used in Black-Scholes option-pricing model


	Six months ended
	2016		2015
Risk-free interest rate	1.5	%	1.7	%
Volatility	77	%	77	%
Expected term (years)	6.02		6.25
Expected dividend yield	-		-

Schedule of stock-based compensation for all stock options and restricted stock awards



	Three months ended				Six months ended
	June 30,				June 30,
	2016		2015		2016		2015

Research and development expenses	$	165	$	55	$	303	$	76
Selling, general and administrative expenses		1,230		546		2,193		638
Total stock-based compensation expense	$	1,395	$	601	$	2,496	$	714

Nature of Business (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accumulated deficit
Accumulated deficit	$ 169,180	$ 129,008

Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended		6 Months Ended
	Jan. 31, 2016 USD ($) $ / shares shares	May 31, 2015 USD ($) $ / shares shares	Apr. 30, 2015	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)
Common stock sold (in shares) \| shares	2,750,000
Offering price (in dollars per share) \| $ / shares	$ 20.00
Proceeds from the offering, after deducting underwriting discounts and commissions	$ 51,174
Number of shares of common stock into which convertible preferred stock was converted \| shares		12,591,456
Common stock split ratio			0.144927536
Inventory capitalized				$ 1,214		$ 1,214
Advertising and product promotion costs				4,680,000		7,006,000
Stock compensation expense with a performance based vesting condition				$ 1,395	$ 601	2,496	$ 714
Performance Shares [Member]
Stock compensation expense with a performance based vesting condition						$ 193
Conversion of redeemable convertible preferred stock into common stock \| All series of convertible redeemable preferred stock
Number of shares of common stock into which convertible preferred stock was converted \| shares		12,591,456
Initial public offering
Common stock sold (in shares) \| shares		6,670,000
Offering price (in dollars per share) \| $ / shares		$ 12.00
Proceeds from the offering, after deducting underwriting discounts and commissions		$ 72,029
Underwriters over-allotment option
Common stock sold (in shares) \| shares		870,000

Earnings (Loss) per Common Share - Computation of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net loss per common share
Net loss	$ (24,520)	$ (4,674)	$ (40,172)	$ (8,369)
Extinguishment of preferred stock				31,806
Accretion of prior preferred stock				(23,327)
Loss attributable to common shareholders — basic and diluted	$ (24,520)	$ (5,315)	$ (40,172)	$ (1,135)
Weighted-average number of common shares used in net loss per share-basic and diluted (in shares)	23,417,378	11,791,546	23,273,765	6,426,431
(Loss) earnings per share - basic	$ (1.05)	$ (0.45)	$ (1.73)	$ (0.18)
Series D convertible redeemable preferred stock
Net loss per common share
Accretion of prior preferred stock		$ (641)		$ (1,245)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

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

+ References + Details

Earnings (Loss) per Common Share - Summary of Potentially Dilutive Securities (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock options
Anti-dilutive securities
Potentially dilutive securities excluded from the computations of diluted weighted-average shares outstanding	2,290,112	1,086,789	2,290,112	1,086,789
Warrants
Anti-dilutive securities
Potentially dilutive securities excluded from the computations of diluted weighted-average shares outstanding	2,445	2,445	2,445	2,445
Restricted Stock Award
Anti-dilutive securities
Potentially dilutive securities excluded from the computations of diluted weighted-average shares outstanding	59,494	164,539	59,494	164,539

Fair Value of Financial Instruments (Details) - Estimate of fair value - Recurring - Money market funds - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Cash equivalents	$ 89,883	$ 94,912
Quoted Prices in active markets (Level 1)
Cash equivalents	$ 89,883	$ 94,912

Inventory (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Inventory Disclosure [Abstract]
Raw materials	$ 46
Finished goods	1,168
Total inventory	$ 1,214

Intangible Asset (Details) $ in Thousands	6 Months Ended
Intangible Asset (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Intangible Assets, Gross (Excluding Goodwill) [Abstract]
Upfront payment to develop, manufacture, and commercialize ONSOLIS	$ 2,500
Maximum reimbursement amout for out-of-pocket expenses	$ 2,000

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accrued Expenses
Accrued bonuses and incentive compensation	$ 2,281	$ 1,474
Accrued payroll and related benefits	991	93
Accrued marketing	1,064	157
Accrued development costs	750	80
Accrued other operating costs	242	186
Accrued audit and legal	185	209
Accrued interest	23	29
Total accrued expenses	$ 5,536	$ 2,228

Convertible Bridge Note with Related Party (Details) - USD ($) $ in Thousands	2 Months Ended	6 Months Ended
	Dec. 31, 2014	Jun. 30, 2015
Related party transactions
Gain on extinguishment		$ 91
6.0% Convertible promissory notes
Related party transactions
Gain on extinguishment		$ 91
Bridge Notes Purchase Agreement \| Investors \| 6.0% Convertible promissory notes
Related party transactions
Amount issued	$ 5,000
Stated interest rate	6.00%

Convertible Preferred Stock and Equity - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended			2 Months Ended	6 Months Ended
	Jan. 31, 2016	May 31, 2015	Mar. 31, 2015	Feb. 28, 2015	Jun. 30, 2016	Jun. 30, 2015
Preferred stock
Common stock sold (in shares)	2,750,000
Aggregate consideration					$ 51,174
Accruals of dividends and accretion to redemption value						$ 24,572
Gain on extinguishment for amendment to dividend terms						$ 31,806
Number of shares of common stock into which convertible preferred stock was converted		12,591,456
6.0% Convertible promissory notes
Preferred stock
Principal amount converted			$ 5,000
Series D convertible redeemable preferred stock
Preferred stock
Common stock sold (in shares)			41,666,667
Aggregate consideration			$ 50,000
Cash consideration from issuance of preferred stock			45,000
Series A convertible redeemable preferred stock
Preferred stock
Dividend rate (as a percent)				4.50%
Series B convertible redeemable preferred stock
Preferred stock
Dividend rate (as a percent)				8.00%
Series C convertible redeemable preferred stock
Preferred stock
Dividend rate (as a percent)				8.00%
Series A, Series B and Series C convertible redeemable preferred stock
Preferred stock
Accrued dividends				$ 622
Gain on extinguishment for amendment to dividend terms			31,806
Series A, Series B and Series C convertible redeemable preferred stock \| Mandatory conversion, initial public offering \| Minimum
Preferred stock
Gross proceeds from sale of stock			$ 50,000
All series of convertible redeemable preferred stock \| Conversion of redeemable convertible preferred stock into common stock
Preferred stock
Number of shares of common stock into which convertible preferred stock was converted		12,591,456

Convertible Preferred Stock and Equity - Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Balance at beginning of period	$ 85,072			$ 85,072
Public offering of common stock, net of issuance costs of $526				51,174
Public offering of common stock, net of issuance costs of $526, shares	2,750,000
Stock-based compensation expense				2,496
Exercise of common stock options				$ 86
Exercise of common stock options, shares				38,768
Net loss		$ (24,520)	$ (4,674)	$ (40,172)	$ (8,369)
Balance at end of period		98,656		98,656
Stock issuance costs				526
Common Stock
Balance at beginning of period	$ 21			$ 21
Balance at beginning of period, shares	20,739,351			20,739,351
Public offering of common stock, net of issuance costs of $526				$ 3
Public offering of common stock, net of issuance costs of $526, shares				2,750,000
Exercise of common stock options, shares				38,768
Balance at end of period		$ 24		$ 24
Balance at end of period, shares		23,528,119		23,528,119
Additional Paid-In Capital
Balance at beginning of period	$ 214,062			$ 214,062
Public offering of common stock, net of issuance costs of $526				51,171
Stock-based compensation expense				2,496
Exercise of common stock options				86
Balance at end of period		$ 267,815		267,815
Treasury Stock, at cost
Balance at beginning of period	(3)			(3)
Balance at end of period		(3)		(3)
Accumulated Deficit
Balance at beginning of period	$ (129,008)			(129,008)
Net loss				(40,172)
Balance at end of period		$ (169,180)		$ (169,180)

Stock-based Compensation - Summary of Restricted Stock Award Activity (Details) - shares	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Stock-based compensation
Shares of common stock authorized for issuance outstanding (in shares)	2,290,112	1,452,149
2014 Stock Incentive Plan
Stock-based compensation
Shares of common stock authorized for issuance (in shares)	2,700,000
Increase in number of authorized shares on the first day of each fiscal year, as a percentage of outstanding common stock (as a percent)	4.00%
Vesting period	4 years
Contractual life	10 years
2014 Stock Incentive Plan \| Minimum
Stock-based compensation
Period following termination date vested options are exercisable	1 month
2014 Stock Incentive Plan \| Maximum
Stock-based compensation
Period following termination date vested options are exercisable	3 months

Stock-based Compensation - Summary of Restricted Stock Units (RSUs) Activity (Details)	6 Months Ended
	Jun. 30, 2016 $ / shares shares
Restricted Stock Award
Restricted stock awards
Balance at beginning of year (in shares)	75,718
Vested (in shares)	(16,224)
Balance at end of year (in shares)	59,494
Unvested remaining from the early exercise of stock options (in shares)	48,307
Weighted-average purchase price per share
Balance at beginning of year (in dollars per share) \| $ / shares	$ 5.73
Vested (in dollars per share) \| $ / shares	5.73
Balance at end of year (in dollars per share) \| $ / shares	$ 5.73
Restricted Stock Units (RSUs)
Restricted stock awards
Balance at beginning of year (in shares)
Granted (in shares)	41,739
Vested (in shares)
Forfeited (in shares)
Balance at end of year (in shares)	41,739
Weighted-average purchase price per share
Balance at beginning of year (in dollars per share) \| $ / shares
Granted (in dollars per share) \| $ / shares	16.15
Vested (in dollars per share) \| $ / shares
Forfeited \| $ / shares
Balance at end of year (in dollars per share) \| $ / shares	$ 16.15

Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Stock option activity
Outstanding at beginning of year (in shares)	1,452,149
Granted (in shares)	924,981
Exercised (in shares)	(38,768)
Cancelled (in shares)	(48,250)
Outstanding at end of period (in shares)	2,290,112	1,452,149
Exercisable at end of period (in shares)	383,239
Vested and expected to vest at end of period (in shares)	2,262,479
Weighted average exercise price per share
Outstanding at beginning of year (in dollars per share)	$ 10.37
Granted (in dollars per share)	16.60
Exercised (in dollars per share)	2.22
Cancelled (in dollars per share)	16.07
Outstanding at end of period (in dollars per share)	12.90	$ 10.37
Exercisable at end of period (in dollars per share)	7.54
Vested and expected to vest at end of period (in dollars per share)	$ 12.96
Stock option activity, additional information
Outstanding Weighted-average remaining contractual term	9 years 1 month 6 days	10 years 4 months 24 days
Exercisable at end of period, Weighted-average remaining contractual term	8 years 2 months 12 days
Vested and expected to vest at end of period, Weighted-average remaining contractual term	9 years 1 month 6 days
Outstanding Aggregate Intrinsic Value	$ 5,208	$ 24,887
Exercisable at end of period, Aggregate Intrinsic Value	2,135
Vested and expected to vest at end of period, Aggregate Intrinsic Value	5,339
Stock options
Stock option activity, additional information
Unrecognized compensation cost related to outstanding options	$ 17,483
Period over which unrecognized compensation cost is expected to be recognized as expense	3 years 2 months 12 days

Stock-based Compensation - Summary of Valuation Assumptions Used (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the employee stock option grants
Risk-free interest rate			1.50%	1.70%
Volatility			77.00%	77.00%
Expected term (in years)			6 years 7 days	6 years 3 months
Dividend yield
Total stock-based compensation expense	$ 1,395	$ 601	$ 2,496	$ 714
Research and development
Weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the employee stock option grants
Total stock-based compensation expense	165	55	303	76
General and administrative
Weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the employee stock option grants
Total stock-based compensation expense	$ 1,230	$ 546	$ 2,193	$ 638

Commitments and Contingencies (Details)	6 Months Ended
Commitments and Contingencies (Details)	Jun. 30, 2016 patent
Purdue Pharma, L. P. patent infringement suits
Contingencies
Total number of Orange Book patents asserted to have been infringed previously invalidated in a suit against another company	3
Total number of no stay patents asserted to have been infringed	2
Purdue Pharma, L. P. patent infringement suits \| Maximum
Contingencies
Stay period before FDA can issue a final approval unless it is terminated	30 months
Purdue Pharma, L. P. patent infringement suit, District of Delaware
Contingencies
Total number of Orange Book patents asserted to have been infringed	3
Total number of non-Orange Book patents asserted to have been infringed	1
Purdue Pharma, L. P. patent infringement suit, District of Massachusetts
Contingencies
Total number of patents asserted to have been infringed	4