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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 31, 2017
Document and Entity Information
Entity Registrant Name	COLLEGIUM PHARMACEUTICAL, INC
Entity Central Index Key	0001267565
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		32,562,277
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 107,611	$ 153,225
Accounts receivable	5,823	2,129
Inventory	1,401	1,316
Prepaid expenses and other current assets	4,061	1,905
Total current assets	118,896	158,575
Property and equipment, net	1,632	1,038
Intangible assets, net	1,877	2,103
Restricted cash	97	97
Other long-term assets	171	204
Total assets	122,673	162,017
Current liabilities:
Accounts payable	4,982	9,106
Accrued expenses	19,268	8,879
Deferred revenue		4,944
Current portion of term loan payable	2,146	2,667
Total current liabilities	26,396	25,596
Lease incentive obligation	8	34
Term loan payable, long-term		1,479
Total liabilities	26,404	27,109
Commitments and contingencies (see Note 10)
Shareholders' equity:
Preferred stock, $0.001 par value; authorized shares - 5,000,000 at September 30, 2017 and December 31, 2016; issued and outstanding shares - none at September 30, 2017 and December 31, 2016
Common stock, $0.001 par value; authorized shares - 100,000,000 at September 30, 2017 and December 31, 2016; issued and outstanding shares - 30,765,100 at September 30, 2017 and 29,364,100 at December 31, 2016	31	29
Additional paid-in capital	376,884	358,063
Accumulated deficit	(280,646)	(223,184)
Total shareholders' equity	96,269	134,908
Total liabilities and shareholders' equity	$ 122,673	$ 162,017

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
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	30,765,100	29,364,100
Common stock, outstanding shares	30,765,100	29,364,100

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Product revenues, net	$ 11,950	$ 408	$ 17,682	$ 408
Costs and expenses
Cost of product revenues	553	29	1,501	29
Research and development	2,069	3,254	6,378	11,617
Selling, general and administrative	22,758	23,567	67,667	55,266
Total costs and expenses	25,380	26,850	75,546	66,912
Loss from operations	(13,430)	(26,442)	(57,864)	(66,504)
Other expense (income):
Interest income (expense), net	167	(2)	402	(113)
Net loss	$ (13,263)	$ (26,444)	$ (57,462)	$ (66,617)
Loss per share - basic and diluted	$ (0.45)	$ (1.13)	$ (1.95)	$ (2.85)
Weighted-average shares - basic and diluted	29,753,043	23,460,340	29,517,396	23,334,558

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities
Net loss	$ (57,462)	$ (66,617)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	464	360
Lease incentive	(26)	(25)
Stock-based compensation expense	5,867	4,137
Changes in operating assets and liabilities:
Accounts receivable	(3,694)	(1,679)
Inventories	(85)	(1,576)
Prepaid expenses and other assets	(33)	(114)
Accounts payable	(4,124)	5,401
Accrued expenses	10,315	4,409
Deferred revenue	(4,944)	3,938
Net cash used in operating activities	(53,722)	(51,766)
Investing activities
Purchase of intangible assets		(2,500)
Purchases of property and equipment	(818)	(136)
Net cash used in investing activities	(818)	(2,636)
Financing activities
Proceeds from issuances of common stock from public offerings, net of issuance costs of $507 and $526	9,425	51,619
Proceeds from issuances of common stock from employee stock purchase plans	1,141
Repayment of term note	(2,000)	(2,000)
Proceeds from the exercise of stock options	428	114
Payments made for employee restricted stock tax withholdings	(68)
Net cash provided by financing activities	8,926	49,733
Net (decrease) increase in cash and cash equivalents	(45,614)	(4,669)
Cash and cash equivalents at beginning of period	153,225	95,697
Cash and cash equivalents at end of period	107,611	91,028
Supplemental disclosure of cash flow information
Cash paid for offering costs	447	512
Cash paid for interest	121	$ 226
Supplemental disclosure of non-cash activities
Offering costs in accrued expenses	60
Receivable from issuance of common stock from at-the-market offering in other current assets	2,090
Acquisition of property and equipment in accrued expenses	$ 97

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CONSOLIDATED STATEMENTS OF CASH FLOWS
Issuance costs	$ 507	$ 526

NATURE OF BUSINESS	9 Months Ended
NATURE OF BUSINESS	Sep. 30, 2017
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 commercializing 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. In April 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. In June 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, changing market conditions for products and product candidates (including development of competing products), changing regulatory environment and reimbursement landscape, negative outcome of clinical trials, inability or delay in completing clinical trials or obtaining regulatory approvals, 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 experienced net losses and negative cash flows from operating activities since its inception, and, as of September 30, 2017 had an accumulated deficit of $280,646. The Company expects to continue to incur net losses in the foreseeable future. A successful transition to profitable operations is dependent upon achieving a level of revenues adequate to support the Company’s cost structure. The Company believes that its cash and cash equivalents at September 30, 2017, together with expected cash inflows from the commercialization of Xtampza, as well as proceeds from its ATM offering through October 2017 (see note 2), will enable the Company to fund its operating expenses, debt service and capital expenditure requirements into mid-2019. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional cash. Management intends to fund future operations through additional private or public debt or equity offerings, and may seek additional capital through arrangements with strategic partners or from other sources. If the Company is unable to obtain financing or increase profitability, the related lack of liquidity will have a material adverse effect on the Company’s operations and future prospects.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2017
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 September 30, 2017, the results of operations for three and nine months ended September 30, 2017 and 2016, and cash flows for the nine months ended September 30, 2017 and 2016. The results of operations for the three and nine months ended September 30, 2017 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 impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to revenue recognition, including the estimates of product returns, units prescribed, discounts and allowances related to commercial sales of Xtampza, estimates utilized in the valuation of inventory, estimates of useful lives with respect to intangible assets, accounting for stock-based compensation, contingencies, intangible assets, tax valuation reserves and accrued expenses. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis. The Company’s actual results may differ from these estimates under different assumptions or conditions. 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 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. The Company received net proceeds from this public offering of approximately $51,174, after deduction of underwriting discounts and commissions and expenses payable by the Company. In October 2016, the Company issued and sold in a public offering an aggregate of 5,750,000 shares of its common stock at $16.00 per share. The Company received net proceeds from this public offering of approximately $86,166, after deduction of underwriting discounts and commissions and expenses payable by the Company. Controlled Equity Offering Sales Agreement In March 2017, the Company entered into a Controlled Equity Offering Sales Agreement (the “ATM Sales Agreement”), with Cantor Fitzgerald & Co., as sales agent (“Cantor Fitzgerald”), pursuant to which the Company may issue and sell, from time to time, through Cantor Fitzgerald, shares of the Company’s common stock, up to an aggregate offering price of $60,000 (the “ATM Shares”). Under the ATM Sales Agreement, Cantor Fitzgerald may sell the ATM Shares by methods deemed to be an “at-the-market” offering as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the “Securities Act”), including sales made directly on The NASDAQ Global Select Market, on any other existing trading market for the ATM Shares or to or through a market maker. In addition, under the ATM Sales Agreement, Cantor Fitzgerald may sell the ATM Shares by any other method permitted by law, including in privately negotiated transactions. The Company is not obligated to make any sales of the ATM Shares under the ATM Sales Agreement. The Company or Cantor Fitzgerald may suspend or terminate the offering of ATM Shares upon notice to the other party and subject to other conditions. The Company will pay Cantor Fitzgerald a commission of up to 3.0% of the gross proceeds from the sale of the ATM Shares pursuant to the ATM Sales Agreement and has agreed to provide Cantor Fitzgerald with customary indemnification and contribution rights. As of September 30, 2017, the Company had sold an aggregate of 1,148,466 ATM Shares under the ATM Sales Agreement at an average gross sales price of $10.42 per share generating net proceeds of $11,455, after deduction of underwriting discounts and commissions and expenses payable by the Company, all of which were sold during the three months ended September 30, 2017. 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, which generally occurs upon delivery, and 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 allowances, distribution service fees, as well as estimated product returns. Beginning in the third quarter of 2017, the Company has determined that it has sufficient experience with sales of Xtampza to estimate its returns at time of shipment. The Company sells its products primarily to distributors and retailers (“customers”), which in turn sell the product to pharmacies for the treatment of patients. The Company provides the right of return to its customers for a limited time before and after its expiration date. As a result of its experience to date with Xtampza sales, the Company determined that it can reasonably estimate the amount of future product returns. The effect on income from operations and on net income is that the Company is able to recognize revenue earlier on the sell-in method, net of a provision for estimated returns, because the Company can record revenue once sold to the customer rather than waiting until the product is sold to the end user on a sell-through method. The Company recorded a one-time $4,377 increase to revenues during the three months ended September 30, 2017 as a result of the Company’s change to the sell-in method in the third quarter of 2017. Subsequent Events The Company considers 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. In October 2017, the Company sold an additional 1,793,290 ATM Shares under the ATM Sales Agreement at an average gross sales price of $11.29 per share generating net proceeds of $19,646, after deduction of underwriting discounts and commissions and expenses payable by the Company. Significant Accounting Policies The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Advertising and Product Promotion Costs Advertising and product promotion costs are included in selling, general and administrative expenses and were $2,489 and $3,486 in the three months ended September 30, 2017 and 2016 respectively. Advertising and product promotion costs were $8,916 and $10,492 in the nine months ended September 30, 2017 and 2016 respectively. 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, the FASB, issued Accounting Standards 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. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers, which defers the effective date of ASU 2014-09 for all entities by one year. ASU 2014-09, which has been codified with the Accounting Standards Codification as Topic 606, is now effective for public companies for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In addition, ASC 606 provides guidance on accounting for certain revenue-related costs including, but not limited to, when to capitalize costs associated with obtaining and fulfilling a contract. ASC 606 provides companies with two implementation methods. Companies can choose to apply the standard retrospectively to each prior reporting period presented (full retrospective application) or retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application (modified retrospective application). Since ASU 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. The Company will adopt the standard in the first quarter of 2018 using the modified retrospective method. The new standard differs from the current accounting standard in many respects, including the accounting for variable consideration. Under the Company’s current accounting policy, the Company recognizes product revenues and cost of product revenues at time of delivery to customers. The Company is still evaluating its contracts with customers and assessing the potential impacts of the new standard on existing arrangements. However, the Company does not expect the implementation of this guidance will have a material impact on its consolidated financial statements as the timing of revenue recognition for product sales is not expected to change significantly. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 most significantly impacts lessee accounting and disclosures. First, this guidance requires lessees to identify arrangements that should be accounted for as leases. Under ASU 2016-02, for lease arrangements exceeding a 12-month term, a right-of-use asset and lease obligation is recorded by the lessee for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. 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 August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, and in November 2016, the FASB issued ASU 2016-18, Restricted Cash. The amendments in these updates are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will adopt these standards in the first quarter of 2018 using the retrospective transition method as required with respect to each period presented. The Company expects the adoption of these standards will result in an increase in net cash provided by investing activities of $16 for the year ended December 31, 2015. The Company does not expect the adoption of these standards to have a material impact on its consolidated financial statements for the years ended December 31, 2016 or December 31, 2017.

LOSS PER COMMON SHARE

9 Months Ended

Sep. 30, 2017

LOSS PER COMMON SHARE

LOSS PER COMMON SHARE

3. Loss per Common Share

The following table presents the computations of basic and dilutive net loss per share:



	Three months ended September 30,				Nine months ended September 30,
		2017		2016		2017		2016
Loss attributable to common shareholders — basic and diluted	$	(13,263)	$	(26,444)	$	(57,462)	$	(66,617)
Weighted-average number of common shares used in net loss per share - basic and diluted		29,753,043		23,460,340		29,517,396		23,334,558
Loss per share - basic and diluted	$	(0.45)	$	(1.13)	$	(1.95)	$	(2.85)

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 September 30,		Nine months ended September 30,
	2017	2016	2017	2016
Outstanding stock options	3,056,954	2,258,775	3,056,954	2,258,775
Warrants	2,445	2,445	2,445	2,445
Unvested restricted stock(1)	44,586	95,159	44,586	95,159
Restricted stock units	218,872	41,739	218,872	41,739

(1) - Includes shares of unvested restricted stock remaining from the early exercise of stock options.

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2017

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

4. Fair Value of Financial Instruments

Disclosures of fair value information about financial instruments are required, whether or not recognized in the balance sheet, for financial instruments with respect to which it is practicable to estimate that value. Fair value measurements and disclosures describe the fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, as follows:


Level 1 inputs:	Quoted prices in (unadjusted) 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 September 30, 2017 and December 31, 2016.


						Significant
				Quoted Prices		other		Significant
				in active		observable		unobservable
				markets		inputs		inputs
Description		Total		(Level 1)		(Level 2)		(Level 3)
September 30, 2017
Money market funds, included in cash equivalents	$	81,026	$	81,026	$	—	$	—

December 31, 2016
Money market funds, included in cash equivalents	$	125,515	$	125,515	$	—	$	—

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 September 30, 2017 and December 31, 2016 the carrying amounts of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable, accrued expenses, deferred revenue and loan payable 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

9 Months Ended

Sep. 30, 2017

INVENTORY

INVENTORY

5. Inventory

Inventory consisted of the following:


	As of September 30,		As of December 31,
	2017		2016
Raw materials	$	599	$	294
Work in process		168		67
Finished goods		634		955
Total inventory	$	1,401	$	1,316

The aggregate charges related to excess inventory for both the nine months ended September 30, 2017 and 2016 were immaterial. These expenses were recorded as a component of cost of product revenues.

INTANGIBLE ASSETS	9 Months Ended
INTANGIBLE ASSETS	Sep. 30, 2017
INTANGIBLE ASSETS
INTANGIBLE ASSETS	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), or Onsolis, 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 in mid-2018. In addition, during the term of the License Agreement, milestone payments in the aggregate amount of $21,000 may become payable by the Company subject to the satisfaction of certain commercialization, intellectual property, and net sales milestones, including $4,000 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. As of September 30, 2017, the Company has not satisfied the criteria for triggering payment of milestones or royalties under the License Agreement and has not recognized any liabilities for such milestones or royalties in its consolidated financial statements. The Company made an upfront payment of $2,500 and is contractually committed to reimburse BDSI up to a maximum of $2,000 for its out-of-pocket expenses incurred in connection with the manufacturing transfer. The Company recorded the upfront payment as an intangible asset on the Condensed Consolidated Balance Sheet and will amortize it on a straight-line basis over the remaining patent life. As of September 30, 2017, the Company has reimbursed BDSI approximately $1,391 for its out-of-pocket expenses incurred in connection with the manufacturing transfer. As a result of U.S. Patent No. 9,597,288 being issued in March 2017, the patent protection for Onsolis was extended through July 2027, a period of approximately 11.2 years from the date of original acquisition. As such, the Company revised the useful life of its intangible asset during the three months ended March 31, 2017 from 3.7 years to 11.2 years. During the three months ended September 30, 2017, the Company recognized amortization expense of $48 compared to $227 for the three months ended September 30, 2016. For the nine months ended September 30, 2017 the Company recognized amortization expense of $225 compared to $227 for the nine months ended September 30, 2016. As of September 30, 2017, the remaining amortization period is approximately 9.8 years and estimated remaining amortization for 2017, 2018, 2019, 2020, 2021 and thereafter is expected to be $47, $191, $191 $191, $191 and $1,066, respectively.

ACCRUED EXPENSES

9 Months Ended

Sep. 30, 2017

ACCRUED EXPENSES

ACCRUED EXPENSES

7. Accrued Expenses

Accrued expenses consisted of the following:


	As of September 30,		As of December 31,
	2017		2016
Accrued rebates, returns and discounts	$	10,345	$	—
Accrued bonuses		2,089		2,210
Accrued payroll and related benefits		1,762		1,217
Accrued incentive compensation		1,671		1,160
Accrued development costs		1,120		2,485
Accrued sales and marketing		1,076		801
Accrued other operating costs		792		572
Accrued audit and legal		404		416
Accrued interest		9		18
Total accrued expenses	$	19,268	$	8,879

EQUITY

9 Months Ended

Sep. 30, 2017

EQUITY

EQUITY

8. Equity

The changes in shareholders’ equity for the nine months ended September 30, 2017 were as follows:


				Additional				Total
	Common Stock			Paid- In		Accumulated		Shareholders’
	Shares		Amount	Capital		Deficit		Equity (Deficit)
Balance, December 31, 2016	29,364,100	$	29	$	358,063	$	(223,184)	$	134,908
Exercise of common stock options	131,755		1		427		—		428
Issuance for employee stock purchase plan	110,841		—		1,141		—		1,141
Vesting of restricted stock units	14,757		—		—		—		—
Shares withheld for employee taxes upon vesting of restricted stock units	(4,819)		—		(68)		—		(68)
Issuance of common stock resulting from at-the-market transactions, net of issuance costs of $507	1,148,466		1		11,454		—		11,455
Stock-based compensation	—		—		5,867		—		5,867
Net loss	—		—		—		(57,462)		(57,462)
Balance, September 30, 2017	30,765,100	$	31	$	376,884	$	(280,646)	$	96,269

STOCK BASED COMPENSATION

9 Months Ended

Sep. 30, 2017

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION

9. Stock-based Compensation

A summary of the Company’s stock-based compensation expense included in the Condensed Consolidated Statements of Operations are as follows:



	Three months ended				Nine months ended
	September 30,				September 30,
	2017		2016		2017		2016
Research and development expenses	$	222	$	171	$	673	$	474
Selling, general and administrative expenses		1,878		1,470		5,194		3,663
Total stock-based compensation expense	$	2,100	$	1,641	$	5,867	$	4,137

At September 30, 2017, there was approximately $18,889 of unrecognized compensation expense related to unvested options, restricted stock units and restricted stock awards, which is expected to be recognized as expense over a weighted average period of approximately 2.7 years.

Restricted Stock Awards, Restricted Stock Units 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 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 September 30, 2017, there were 1,142,277 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.

A summary of the Company’s restricted stock award activity for the nine months ended September 30, 2017 and related information is as follows:


		Weighted-Average
		Purchase Price
	Shares	per Share
Unvested at December 31, 2016	43,265	$	5.73
Granted	—		—
Vested	(24,336)		5.73
Unvested at September 30, 2017 (1)	18,929	$	5.73

(1)Excludes 25,657 shares of unvested restricted stock remaining from the early exercise of stock options as of September 30, 2017.

A summary of the Company’s restricted stock units activity for the nine months ended September 30, 2017 and related information is as follows:


		Weighted-Average
	Shares	Grant Date Fair Value
Outstanding at December 31, 2016	41,741	$	16.15
Granted	211,018		12.45
Settled	(14,757)		16.15
Forfeited	(19,130)		15.52
Outstanding at September 30, 2017	218,872	$	12.64

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 (in years)		Value
Outstanding at December 31, 2016	2,326,801	$	13.07	8.7	$	7,927
Granted	1,261,373		12.06
Exercised	(131,755)		3.25
Cancelled	(399,465)		13.62
Outstanding at September 30, 2017	3,056,954	$	13.00	8.6	$	3,604
Exercisable at September 30, 2017	940,101	$	12.80	7.8	$	1,727
Vested and expected to vest at September 30, 2017	2,909,114	$	13.08	8.5	$	3,571

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


	Nine months ended September 30,
	2017		2016
Risk-free interest rate	2.0	%	1.5	%
Volatility	71	%	77	%
Expected term (years)	6.01		6.02
Expected dividend yield	—	%	—	%

Employee Stock Purchase Plan

The Company’s 2015 Employee Stock Purchase Plan allows employees as designated by the Company’s Board of Directors to purchase shares of the Company’s common stock. The purchase price is equal to 85% of the lower of the closing price of our common stock on (1) the first day of the purchase period or (2) the last day of the purchase period. During the nine months ended September 30, 2017, 110,841 shares of common stock were purchased for total proceeds of $1,141. The expense for the three months ended September 30, 2017 and 2016 was $74 and $143, respectively. The expense for the nine months ended September 30, 2017 and 2016 was $288 and $311, respectively.

- Definition

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

+ References + Details

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	10. Commitments and Contingencies From time to time, the Company may face legal claims or actions in the normal course of business. 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 could issue a final regulatory approval for Xtampza, unless the stay was 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. In October 2015, the Delaware case was transferred to Massachusetts. After the Company filed a partial motion for judgment on the pleadings relating to the Orange Book-listed patents, the District Court of Massachusetts ordered judgment in favor of the Company on those three patents, 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. As a result, the Company obtained final approval of its Xtampza ER products and has launched the products commercially. In November 2015, Purdue filed a follow-on suit asserting infringement of another patent, Patent No. 9,073,933, which was late-listed in the Orange Book and therefore could not trigger any stay of FDA approval. In June 2016, Purdue filed another follow-on suit asserting infringement of another non-Orange Book listed patent, Patent No. 9,155,717. These suits were consolidated by the District of Massachusetts into the original action where Purdue’s infringement claim relating to the ’497 patent remains pending. Purdue continues to assert infringement of these three patents against the Company, none of which is associated with any stay of FDA approval. Purdue has made a demand for monetary relief but has not quantified their alleged damages. Purdue has also requested a judgment of infringement and an injunction on the sale of the Company’s products accused of infringement. The Company has denied all claims and seeks a judgment that the patents are invalid and/or not infringed by the Company, and seeks a judgment that the case is exceptional, with an award to the Company of its fees for defending the case. In April 2017, Purdue filed another suit asserting infringement of U.S. Patent No. 9,522,919, related to the previously asserted ’933 patent, which recently issued and was late-listed in the Orange Book and therefore could not trigger any stay of FDA approval. Purdue has similarly made a demand for monetary relief and has requested judgment of infringement and an injunction on the sale of the Company’s accused products. The Company will oppose this action. In September 2017, Purdue filed another suit in the United States District Court, District of Massachusetts, asserting infringement of U.S. Patent No. 9,693,961 (the “’961” patent). The ʼ961 patent is not Orange Book-listed and is unrelated to the patents asserted in the lead case. Because the ʼ961 patent is not Orange Book-listed, it cannot trigger any stay of FDA approval. Purdue has similarly made a demand for monetary relief and has requested judgment of infringement and an injunction on the sale of the Company’s accused products. The Company has not yet filed an answer or otherwise responded to this Complaint. In October 2017, and in response to the filing of the Company’s supplemental New Drug Application (“NDA”), Purdue filed another suit in the United States District Court, District of Massachusetts, asserting infringement of the ʼ933 and ʼ919 patent. At this time, it is unclear if the suit will trigger an additional stay of FDA approval of the Company’s label change proposed by its supplemental NDA. The Company has not yet filed an answer or otherwise responded to this Complaint. Purdue continues to assert infringement of four remaining patents by the Company in the lead case, which are the ʼ919 patent, the ʼ933 patent, U.S. Patent No. 8,652,497, U.S. and U.S. Patent No. 9,155,717. The parties are in the early stages of fact discovery. Written discovery has commenced with depositions expected to commence in the fourth quarter of 2017. The parties are also in the claims construction stage of the patent litigation. The parties have briefed their proposed construction. The Company has also filed a motion for summary judgment that the asserted claims of the ’933, ’497, and ’717 patents are invalid and not infringed. The Court heard argument on the claims construction issues and on the Company’s summary judgment motion on June 1, 2017. The Company is not able to predict with certainty when the Court will decide claim construction or the Company’s motion. No trial date has been scheduled. The Company is, and plans to continue, defending this case vigorously. At this stage, we are unable to evaluate the likelihood of an unfavorable outcome or estimate the amount or range of potential loss, if any. At this time the Company is unable to provide meaningful quantification of how this potential litigation may impact its future financial condition, results of operations, or cash flows.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2017
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 September 30, 2017, the results of operations for three and nine months ended September 30, 2017 and 2016, and cash flows for the nine months ended September 30, 2017 and 2016. The results of operations for the three and nine months ended September 30, 2017 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 impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to revenue recognition, including the estimates of product returns, units prescribed, discounts and allowances related to commercial sales of Xtampza, estimates utilized in the valuation of inventory, estimates of useful lives with respect to intangible assets, accounting for stock-based compensation, contingencies, intangible assets, tax valuation reserves and accrued expenses. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis. The Company’s actual results may differ from these estimates under different assumptions or conditions. 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.
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, which generally occurs upon delivery, and 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 allowances, distribution service fees, as well as estimated product returns. Beginning in the third quarter of 2017, the Company has determined that it has sufficient experience with sales of Xtampza to estimate its returns at time of shipment. The Company sells its products primarily to distributors and retailers (“customers”), which in turn sell the product to pharmacies for the treatment of patients. The Company provides the right of return to its customers for a limited time before and after its expiration date. As a result of its experience to date with Xtampza sales, the Company determined that it can reasonably estimate the amount of future product returns. The effect on income from operations and on net income is that the Company is able to recognize revenue earlier on the sell-in method, net of a provision for estimated returns, because the Company can record revenue once sold to the customer rather than waiting until the product is sold to the end user on a sell-through method. The Company recorded a one-time $4,377 increase to revenues during the three months ended September 30, 2017 as a result of the Company’s change to the sell-in method in the third quarter of 2017.
Subsequent Events	Subsequent Events The Company considers 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.
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 $2,489 and $3,486 in the three months ended September 30, 2017 and 2016 respectively. Advertising and product promotion costs were $8,916 and $10,492 in the nine months ended September 30, 2017 and 2016 respectively. Advertising and product promotion costs are expensed as incurred.
Recent 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, the FASB, issued Accounting Standards 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. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers, which defers the effective date of ASU 2014-09 for all entities by one year. ASU 2014-09, which has been codified with the Accounting Standards Codification as Topic 606, is now effective for public companies for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In addition, ASC 606 provides guidance on accounting for certain revenue-related costs including, but not limited to, when to capitalize costs associated with obtaining and fulfilling a contract. ASC 606 provides companies with two implementation methods. Companies can choose to apply the standard retrospectively to each prior reporting period presented (full retrospective application) or retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application (modified retrospective application). Since ASU 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. The Company will adopt the standard in the first quarter of 2018 using the modified retrospective method. The new standard differs from the current accounting standard in many respects, including the accounting for variable consideration. Under the Company’s current accounting policy, the Company recognizes product revenues and cost of product revenues at time of delivery to customers. The Company is still evaluating its contracts with customers and assessing the potential impacts of the new standard on existing arrangements. However, the Company does not expect the implementation of this guidance will have a material impact on its consolidated financial statements as the timing of revenue recognition for product sales is not expected to change significantly. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 most significantly impacts lessee accounting and disclosures. First, this guidance requires lessees to identify arrangements that should be accounted for as leases. Under ASU 2016-02, for lease arrangements exceeding a 12-month term, a right-of-use asset and lease obligation is recorded by the lessee for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. 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 August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, and in November 2016, the FASB issued ASU 2016-18, Restricted Cash. The amendments in these updates are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will adopt these standards in the first quarter of 2018 using the retrospective transition method as required with respect to each period presented. The Company expects the adoption of these standards will result in an increase in net cash provided by investing activities of $16 for the year ended December 31, 2015. The Company does not expect the adoption of these standards to have a material impact on its consolidated financial statements for the years ended December 31, 2016 or December 31, 2017

LOSS PER COMMON SHARE (Tables)

9 Months Ended

Sep. 30, 2017

LOSS PER COMMON SHARE

Schedule of computations of basic and diluted net loss per share



	Three months ended September 30,				Nine months ended September 30,
		2017		2016		2017		2016
Loss attributable to common shareholders — basic and diluted	$	(13,263)	$	(26,444)	$	(57,462)	$	(66,617)
Weighted-average number of common shares used in net loss per share - basic and diluted		29,753,043		23,460,340		29,517,396		23,334,558
Loss per share - basic and diluted	$	(0.45)	$	(1.13)	$	(1.95)	$	(2.85)

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


	Three months ended September 30,		Nine months ended September 30,
	2017	2016	2017	2016
Outstanding stock options	3,056,954	2,258,775	3,056,954	2,258,775
Warrants	2,445	2,445	2,445	2,445
Unvested restricted stock(1)	44,586	95,159	44,586	95,159
Restricted stock units	218,872	41,739	218,872	41,739

(1) - Includes shares of unvested restricted stock remaining from the early exercise of stock options.

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2017

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)
September 30, 2017
Money market funds, included in cash equivalents	$	81,026	$	81,026	$	—	$	—

December 31, 2016
Money market funds, included in cash equivalents	$	125,515	$	125,515	$	—	$	—

INVENTORY (Tables)

9 Months Ended

Sep. 30, 2017

INVENTORY

Schedule of Inventory


	As of September 30,		As of December 31,
	2017		2016
Raw materials	$	599	$	294
Work in process		168		67
Finished goods		634		955
Total inventory	$	1,401	$	1,316

ACCRUED EXPENSES (Tables)

9 Months Ended

Sep. 30, 2017

ACCRUED EXPENSES

Schedule of components of accrued expenses


	As of September 30,		As of December 31,
	2017		2016
Accrued rebates, returns and discounts	$	10,345	$	—
Accrued bonuses		2,089		2,210
Accrued payroll and related benefits		1,762		1,217
Accrued incentive compensation		1,671		1,160
Accrued development costs		1,120		2,485
Accrued sales and marketing		1,076		801
Accrued other operating costs		792		572
Accrued audit and legal		404		416
Accrued interest		9		18
Total accrued expenses	$	19,268	$	8,879

EQUITY (Tables)

9 Months Ended

Sep. 30, 2017

EQUITY

Summary of Changes in Shareholders' Equity


				Additional				Total
	Common Stock			Paid- In		Accumulated		Shareholders’
	Shares		Amount	Capital		Deficit		Equity (Deficit)
Balance, December 31, 2016	29,364,100	$	29	$	358,063	$	(223,184)	$	134,908
Exercise of common stock options	131,755		1		427		—		428
Issuance for employee stock purchase plan	110,841		—		1,141		—		1,141
Vesting of restricted stock units	14,757		—		—		—		—
Shares withheld for employee taxes upon vesting of restricted stock units	(4,819)		—		(68)		—		(68)
Issuance of common stock resulting from at-the-market transactions, net of issuance costs of $507	1,148,466		1		11,454		—		11,455
Stock-based compensation	—		—		5,867		—		5,867
Net loss	—		—		—		(57,462)		(57,462)
Balance, September 30, 2017	30,765,100	$	31	$	376,884	$	(280,646)	$	96,269

STOCK BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2017

STOCK BASED COMPENSATION

Summary of stock-based compensation included in statement of operations



	Three months ended				Nine months ended
	September 30,				September 30,
	2017		2016		2017		2016
Research and development expenses	$	222	$	171	$	673	$	474
Selling, general and administrative expenses		1,878		1,470		5,194		3,663
Total stock-based compensation expense	$	2,100	$	1,641	$	5,867	$	4,137

Summary of restricted stock awards activity


		Weighted-Average
		Purchase Price
	Shares	per Share
Unvested at December 31, 2016	43,265	$	5.73
Granted	—		—
Vested	(24,336)		5.73
Unvested at September 30, 2017 (1)	18,929	$	5.73

(1)Excludes 25,657 shares of unvested restricted stock remaining from the early exercise of stock options as of September 30, 2017.

Summary of restricted stock units activity


		Weighted-Average
	Shares	Grant Date Fair Value
Outstanding at December 31, 2016	41,741	$	16.15
Granted	211,018		12.45
Settled	(14,757)		16.15
Forfeited	(19,130)		15.52
Outstanding at September 30, 2017	218,872	$	12.64

Summary of stock option activity


				Weighted-
			Weighted-	Average
			Average	Remaining		Aggregate
			Exercise Price	Contractual		Intrinsic
	Shares		per Share	Term (in years)		Value
Outstanding at December 31, 2016	2,326,801	$	13.07	8.7	$	7,927
Granted	1,261,373		12.06
Exercised	(131,755)		3.25
Cancelled	(399,465)		13.62
Outstanding at September 30, 2017	3,056,954	$	13.00	8.6	$	3,604
Exercisable at September 30, 2017	940,101	$	12.80	7.8	$	1,727
Vested and expected to vest at September 30, 2017	2,909,114	$	13.08	8.5	$	3,571

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


	Nine months ended September 30,
	2017		2016
Risk-free interest rate	2.0	%	1.5	%
Volatility	71	%	77	%
Expected term (years)	6.01		6.02
Expected dividend yield	—	%	—	%

NATURE OF BUSINESS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
NATURE OF BUSINESS
Accumulated deficit	$ 280,646	$ 223,184

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)	1 Months Ended				3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 31, 2017	Mar. 31, 2017	Oct. 31, 2016	Jan. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2015
Stock Issued During Period, Shares, New Issues			5,750,000	2,750,000			1,148,466
Shares Issued, Price Per Share			$ 16.00	$ 20.00	$ 10.42		$ 10.42
Sale of Stock, Consideration Received on Transaction			$ 86,166,000	$ 51,174,000			$ 11,455,000
Sale of Stock, Consideration Received if Additional Shares are Issued		$ 60,000,000
Commission fee percentage on gross proceeds from sale of ATM shares		3.00%
Increase in revenue due to change in selling method					$ 4,377,000
Marketing and Advertising Expense					$ 2,489,000	$ 3,486,000	8,916,000	$ 10,492,000
Net cash used in investing activities							$ (818,000)	$ (2,636,000)
Accounting Standards Update 2016-18 And 2016-15 [Member]
Net cash used in investing activities									$ 16,000
Subsequent Event [Member]
Shares Issued, Price Per Share	$ 11.29
Sale of Stock, Consideration Received on Transaction	$ 19,646,000
Sale of Stock, Consideration Received if Additional Shares are Issued	$ 1,793,290

LOSS PER COMMON SHARE - Computation of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
LOSS PER COMMON SHARE
Net loss	$ (13,263)	$ (26,444)	$ (57,462)	$ (66,617)
Loss attributable to common shareholders — basic and diluted	$ (13,263)	$ (26,444)	$ (57,462)	$ (66,617)
Weighted-average number of common shares used in net loss per share - basic and diluted	29,753,043	23,460,340	29,517,396	23,334,558
Loss per share - basic and diluted	$ (0.45)	$ (1.13)	$ (1.95)	$ (2.85)

LOSS PER COMMON SHARE - Summary of Potentially Dilutive Securities (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock options
Anti-dilutive securities
Potentially dilutive securities excluded from the computations of diluted weighted-average shares outstanding	3,056,954	2,258,775	3,056,954	2,258,775
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
Unvested restricted stock
Anti-dilutive securities
Potentially dilutive securities excluded from the computations of diluted weighted-average shares outstanding	44,586	95,159	44,586	95,159
Restricted stock units
Anti-dilutive securities
Potentially dilutive securities excluded from the computations of diluted weighted-average shares outstanding	218,872	41,739	218,872	41,739

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Estimate of fair value - Recurring - Money market funds - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Cash equivalents	$ 81,026	$ 125,515
Quoted Prices in active markets (Level 1)
Cash equivalents	$ 81,026	$ 125,515

INVENTORY (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
INVENTORY
Raw materials	$ 599	$ 294
Work in process	168	67
Finished goods	634	955
Total inventory	$ 1,401	$ 1,316

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended			9 Months Ended
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	May 31, 2016	Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
INTANGIBLE ASSETS
Milestone payments payable contingent on the satisfaction of certain commercialization, intellectual property, and net sales milestones		$ 21,000
Milestone payment contingent on the first commercial sale of the product in the U.S.		4,000
Upfront payment classified as an intangible asset		2,500
Maximum reimbursement amount for out-of-pocket expenses		$ 2,000
Out-Of-Pocket Expenses Reimbursed						$ 1,391
Remaining amortization period	11 years 2 months 12 days			3 years 8 months 12 days		9 years 9 months 18 days
Amortization expense			$ 48		$ 227	$ 225	$ 227
Estimated amortization for 2017			47			47
Estimated amortization for 2018			191			191
Estimated amortization for 2019			191			191
Estimated amortization for 2020			191			191
Estimated amortization for 2021			191			191
Estimated amortization thereafter			$ 1,066			$ 1,066

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ACCRUED EXPENSES
Accrued rebates, returns and discounts	$ 10,345
Accrued bonuses	2,089	$ 2,210
Accrued payroll and related benefits	1,762	1,217
Accrued incentive compensation	1,671	1,160
Accrued development costs	1,120	2,485
Accrued sales and marketing	1,076	801
Accrued other operating costs	792	572
Accrued audit and legal	404	416
Accrued interest	9	18
Total accrued expenses	$ 19,268	$ 8,879

EQUITY - Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
	Oct. 31, 2016	Jan. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Balance at beginning of period					$ 134,908
Exercise of common stock options					$ 428
Exercise of common stock options, shares					131,755
Issuance for employee stock purchase plan					$ 1,141
Issuance for employee stock purchase plan, shares					110,841
Shares withheld for employee taxes upon vesting of restricted stock units					$ (68)
Issuance of common stock resulting from at-the-market transactions, net of issuance costs of $507					$ 11,455
Issuance of common stock resulting from at-the-market transactions, net of issuance costs of $507 (in shares)	5,750,000	2,750,000			1,148,466
Stock-based compensation expense					$ 5,867
Net loss			$ (13,263)	$ (26,444)	(57,462)	$ (66,617)
Balance at end of period			96,269		96,269
Issuance costs					507	$ 526
Common Stock
Balance at beginning of period					$ 29
Balance at beginning of year, shares					29,364,100
Exercise of common stock options					$ 1
Exercise of common stock options, shares					131,755
Issuance for employee stock purchase plan, shares					110,841
Shares withheld for employee taxes upon vesting of restricted stock units, shares					(4,819)
Issuance of common stock resulting from at-the-market transactions, net of issuance costs of $507					$ 1
Issuance of common stock resulting from at-the-market transactions, net of issuance costs of $507 (in shares)					1,148,466
Vesting of restricted stock units, shares					14,757
Balance at end of period			$ 31		$ 31
Balance at end of year, shares			30,765,100		30,765,100
Additional Paid-In Capital
Balance at beginning of period					$ 358,063
Exercise of common stock options					427
Issuance for employee stock purchase plan					1,141
Shares withheld for employee taxes upon vesting of restricted stock units					(68)
Issuance of common stock resulting from at-the-market transactions, net of issuance costs of $507					11,454
Stock-based compensation expense					5,867
Balance at end of period			$ 376,884		376,884
Accumulated Deficit
Balance at beginning of period					(223,184)
Net loss					(57,462)
Balance at end of period			$ (280,646)		$ (280,646)

STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	May 31, 2015
Stock-based compensation
Unrecognized compensation cost related to outstanding options	$ 18,889		$ 18,889
Shares of common stock authorized for issuance outstanding (in shares)	3,056,954		3,056,954		2,326,801
Employee Stock Purchase Plan, Purchase Price Percentage			85.00%
Issuance for employee stock purchase plan, shares			110,841
Proceeds from issuances of common stock from employee stock purchase plans			$ 1,141
Employee Stock Purchase Plan, Compensation Expense	$ 74	$ 143	$ 288	$ 311
Stock options
Stock-based compensation
Period over which unrecognized compensation cost is expected to be recognized as expense			2 years 8 months 12 days
2014 Stock Incentive Plan
Stock-based compensation
Shares of common stock authorized for issuance (in shares)						2,700,000
Share of common stock remaining available for future grant	1,142,277		1,142,277
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 Stock-Based Compensation Included in Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock-based compensation
Total stock-based compensation expense	$ 2,100	$ 1,641	$ 5,867	$ 4,137
Research and development expenses
Stock-based compensation
Total stock-based compensation expense	222	171	673	474
Selling, general and administrative expenses
Stock-based compensation
Total stock-based compensation expense	$ 1,878	$ 1,470	$ 5,194	$ 3,663

STOCK BASED COMPENSATION - Summary of Restricted Stock Award Activity (Details) - Restricted Stock Awards	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Restricted stock awards
Balance	43,265
Vested/Settled	(24,336)
Balance	18,929
Unvested remaining from the early exercise of stock options (in shares)	25,657
Weighted-average purchase price per share
Balance \| $ / shares	$ 5.73
Vested/Settled \| $ / shares	5.73
Balance \| $ / shares	$ 5.73

STOCK BASED COMPENSATION - Summary of Restricted Stock Units (RSUs) Activity (Details) - Restricted stock units	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Restricted stock awards
Balance \| shares	41,741
Granted \| shares	211,018
Vested/Settled \| shares	(14,757)
Forfeited \| shares	(19,130)
Balance \| shares	218,872
Weighted-average purchase price per share
Balance \| $ / shares	$ 16.15
Granted \| $ / shares	12.45
Vested/Settled \| $ / shares	16.15
Forfeited \| $ / shares	15.52
Balance \| $ / shares	$ 12.64

STOCK BASED COMPENSATION - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Stock option activity
Outstanding	2,326,801
Granted	1,261,373
Exercised	(131,755)
Cancelled	(399,465)
Outstanding	3,056,954	2,326,801
Exercisable at end of period	940,101
Vested and expected to vest at end of period	2,909,114
Weighted average exercise price per share
Outstanding	$ 13.07
Granted	12.06
Exercised	3.25
Cancelled	13.62
Outstanding	13.00	$ 13.07
Exercisable at end of period	12.80
Vested and expected to vest at end of period	$ 13.08
Stock option activity, additional information
Outstanding Weighted-Average Remaining Contractual Term	8 years 7 months 6 days	8 years 8 months 12 days
Outstanding Aggregate Intrinsic Value	$ 3,604	$ 7,927
Exercisable at end of period, Weighted-Average Remaining Contractual Term	7 years 9 months 18 days
Exercisable at end of period, Aggregate Intrinsic Value	$ 1,727
Vested and expected to vest at end of period, Weighted-Average Remaining Contractual Term	8 years 6 months
Vested and expected to vest at end of period, Aggregate Intrinsic Value	$ 3,571

STOCK BASED COMPENSATION - Summary of Valuation Assumptions Used (Details)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
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	2.00%	1.50%
Volatility	71.00%	77.00%
Expected term (in years)	6 years 4 days	6 years 7 days
Dividend yield

COMMITMENTS AND CONTINGENCIES (Details) - patent	1 Months Ended	9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) - patent	Oct. 31, 2017	Sep. 30, 2017
Purdue Pharma, L. P. patent infringement suits
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 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 Massachusetts
Contingencies
Total number of patents asserted to have been infringed	4