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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2015	Nov. 02, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	DISCOVERY LABORATORIES INC /DE/
Entity Central Index Key	0000946486
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		112,064,773
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 46,308	$ 44,711
Inventory, net	0	27
Prepaid interest, current portion	1,986	0
Prepaid expenses and other current assets	433	821
Total current assets	48,727	45,559
Property and equipment, net	1,186	1,637
Restricted cash	225	225
Prepaid interest, non-current portion	2,594	0
Other assets	0	78
Total assets	52,732	47,499
Current Liabilities:
Accounts payable	2,457	350
Accrued expenses	6,832	6,116
Deferred revenue	0	43
Common stock warrant liability	497	1,258
Equipment loans, current portion	0	62
Total current liabilities	9,786	7,829
Long-term Debt:
Long term debt, gross	25,000	30,000
Discount on long-term debt	0	(9,698)
Long-term debt, net of discount	25,000	20,302
Other liabilities	56	169
Total liabilities	34,842	28,300
Stockholders' Equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.001 par value; 250,000,000 shares authorized; 112,085,665 and 85,607,806 shares issued at September 30, 2015 and December 31, 2014, respectively; 112,064,773 and 85,586,914 shares outstanding at September 30, 2015 and December 31, 2014, respectively	112	86
Additional paid-in capital	589,901	546,175
Accumulated deficit	(569,069)	(524,008)
Treasury stock (at cost); 20,892 shares	(3,054)	(3,054)
Total stockholders' equity	17,890	19,199
Total liabilities & stockholders' equity	$ 52,732	$ 47,499

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Stockholders' Equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	112,085,665	85,607,806
Common stock, shares outstanding (in shares)	112,064,773	85,586,914
Treasury stock (at cost) (in shares)	20,892	20,892

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Product sales	$ 0	$ 106	$ 7	$ 176
Grant revenue	66	421	325	1,475
Total revenues	66	527	332	1,651
Expenses:
Cost of product sales	0	257	929	1,769
Research and development	6,452	6,471	20,663	18,919
Selling, general and administrative	2,057	4,126	8,793	12,995
Total expenses	8,509	10,854	30,385	33,683
Operating loss	(8,443)	(10,327)	(30,053)	(32,032)
Change in fair value of common stock warrant liability	139	173	577	1,999
Other income / (expense):
Loss on debt extinguishment	(11,758)	0	(11,758)	0
Interest and other income	1	2	235	6
Interest and other expense	(1,495)	(1,172)	(4,062)	(3,396)
Other income / (expense), net	(13,252)	(1,170)	(15,585)	(3,390)
Net loss	$ (21,556)	$ (11,324)	$ (45,061)	$ (33,423)
Net loss per common share
Basic (in dollars per share)	$ (0.20)	$ (0.13)	$ (0.49)	$ (0.39)
Diluted (in dollars per share)	$ (0.20)	$ (0.13)	$ (0.49)	$ (0.41)
Weighted-average number of common shares outstanding
Basic (in shares)	105,696	85,209	92,420	85,001
Diluted (in shares)	105,696	85,209	92,420	86,121

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flow from operating activities:
Net loss	$ (45,061)	$ (33,423)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	626	577
Change in provision for excess inventory	(174)	1,596
Stock-based compensation and 401(k) Plan employer match	1,750	3,053
Fair value adjustment of common stock warrants	(577)	(1,999)
Amortization of discount on long-term debt	1,287	1,414
Loss on debt extinguishment	11,758	0
Debt discount write-off	707	0
Loss on sale of equipment	84	0
Changes in:
Inventory	201	(2,319)
Accounts receivable	0	45
Prepaid interest, current portion	420	0
Prepaid expenses and other current assets	388	420
Accounts payable	2,107	(30)
Accrued expenses	716	19
Deferred revenue	(43)	(44)
Other assets	66	0
Other liabilities	(113)	(396)
Net cash used in operating activities	(25,858)	(31,087)
Cash flows from investing activities:
Purchase of property and equipment	(508)	(679)
Proceeds from sale of property and equipment	260	0
Net cash used in investing activities	(248)	(679)
Cash flows from financing activities:
Proceeds from issuance of securities, net of expenses	32,629	0
Proceeds from exercise of common stock options	0	31
Proceeds from exercise of common stock warrants	136	426
Principal payments on long-term debt	(5,000)	0
Repayment of equipment loans	(62)	(59)
Net cash provided by financing activities	27,703	398
Net increase (decrease) in cash and cash equivalents	1,597	(31,368)
Cash and cash equivalents - beginning of period	44,711	86,283
Cash and cash equivalents - end of period	46,308	54,915
Supplementary disclosure of cash flows information:
Interest paid	$ 1,453	$ 1,968

The Company and Description of Business	9 Months Ended
The Company and Description of Business	Sep. 30, 2015
The Company and Description of Business [Abstract]
The Company and Description of Business	Note 1 – The Company and Description of Business Discovery Laboratories, Inc. (referred to as “we,” “us,” or the “Company”) is a specialty biotechnology company focused on developing aerosolized KL4 surfactant therapies for respiratory diseases. Our proprietary technology platforms include a novel synthetic peptide-containing (KL4) surfactant, that is structurally similar to pulmonary surfactant, and proprietary drug delivery technologies being developed to enable efficient delivery of aerosolized KL4surfactant. Surfactants are produced naturally in the lung and are essential for normal respiratory function and survival. We believe that our proprietary technologies may make it possible to develop a pipeline of aerosolized surfactant products to address a variety of respiratory diseases for which there are few or no approved therapies. Our development programs have been focused initially on improving the management of respiratory distress syndrome (RDS) in premature infants. RDS is a serious respiratory condition caused by insufficient surfactant production in underdeveloped lungs of premature infants. RDS is the most prevalent respiratory disease in the neonatal intensive care unit (NICU) and can result in long-term respiratory problems, developmental delay and death. Our first KL4 surfactant, SURFAXIN® (lucinactant) Intratracheal Suspension for the prevention of RDS in premature infants at high risk for RDS, was approved in 2012 by the United States Food and Drug Administration (FDA). In April 2015, we voluntarily ceased the commercialization of SURFAXIN, a liquid instillate, in order to focus our resources on the development of aerosolized KL4 surfactant for respiratory diseases, beginning with AEROSURF^® for RDS in premature infants. Premature infants with severe RDS currently are treated with surfactants that can only be administered by endotracheal intubation supported with mechanical ventilation, invasive procedures that may each result in serious respiratory conditions and other complications. To avoid such complications, many neonatologists treat premature infants with less severe RDS using less invasive means, typically nasal continuous positive airway pressure (nCPAP). Unfortunately, a significant number of premature infants will respond poorly to nCPAP (an outcome referred to as nCPAP failure) and may require delayed surfactant therapy. Since neonatologists cannot predict which infants are likely to experience nCPAP failure, neonatologists are faced with difficult choices in treating infants with less severe RDS. This is because the medical outcomes for infants who experience nCPAP failure and receive delayed surfactant therapy may be less favorable than the outcomes for infants who receive surfactant therapy in the first hours of life. AEROSURF is an investigational combination drug/device product that combines our KL4 surfactant with our proprietary capillary aerosol generator (CAG) technology. With AEROSURF, neonatologists potentially will be able to administer aerosolized KL4 surfactant to premature infants supported with nCPAP alone, without having to resort to invasive intubation and mechanical ventilation. By enabling delivery of aerosolized KL4 surfactant to premature infants supported by nCPAP alone, we believe that AEROSURF will address a serious unmet medical need and potentially enable the treatment of a significantly greater number of premature infants with RDS who could benefit from surfactant therapy but are currently not treated. In May 2015, we announced the results of our AEROSURF phase 2a clinical trial in premature infants 29 to 34 week gestational age with RDS. This clinical trial was conducted in 48 premature infants 29 to 34 week gestational age who were receiving nCPAP for RDS and was an open label, single-dose study with the primary goal of evaluating the safety and tolerability of aerosolized KL4 surfactant administered in three escalating inhaled doses (15, 30 and 45 minutes) in premature infants compared to infants receiving nCPAP alone. In addition to evaluating safety and tolerability, another key objective of this trial was to establish proof of concept for our proprietary technology platform with (1) physiological data indicating that aerosolized KL4 surfactant is being delivered into the lung of premature infants, and (2) acceptable performance of the novel CAG technology in the NICU. The key objectives of this trial were met. In October 2015, we announced that we have completed enrollment in an AEROSURF phase 2a clinical expansion study in 32 premature infants 29 to 34 week gestational age who are receiving nCPAP for RDS, primarily to evaluate safety and tolerability of aerosolized KL4 surfactant administered in higher (60 and 90 minutes) doses compared to nCPAP alone. We expect to release top line results of this study in mid-November. We also have begun enrollment for a phase 2a clinical study in 32 premature infants 26 to 28 week gestational age receiving nCPAP for RDS, primarily to evaluate safety and tolerability of aerosolized KL4 surfactant administered in two escalating (30 and 45 minutes) doses, with potential repeat doses, compared to nCPAP alone. We anticipate releasing top-line results of this study in the first quarter of 2016. As with the initial phase 2a study, in both follow-on studies we are assessing performance of the CAG in the NICU and available physiological data for indications that aerosolized KL4 surfactant is being delivered to the lungs. We are also preparing for an AEROSURF phase 2b clinical trial, with enrollment expected to begin in the fourth quarter of 2015 and be completed in mid-2016. The primary purpose of the phase 2b clinical trial will be to demonstrate evidence of efficacy on an acceptable endpoint, identify the dose regimen(s) to be used in the planned phase 3 clinical program, and provide an estimate of the treatment effect, or magnitude of benefit. This clinical trial is expected to enroll up to 250 premature infants 26 to 32 week gestational age (beginning with infants 29 to 32 week gestational age, followed by infants 26 to 28 week gestational age) who are receiving nCPAP for RDS and will assess aerosolized KL4 surfactant administered in two escalating doses, compared to nCPAP alone. We expect to conduct this trial with up to approximately 50 clinical sites within and outside the United States (U.S.). With the knowledge that we gain from developing AEROSURF for the treatment of RDS in premature infants, we believe that we may be able to develop our proprietary aerosolized KL4 surfactant and drug delivery technologies potentially to address serious critical care respiratory conditions affecting pediatric and adult patient populations. While we remain focused on RDS, we have explored, primarily in collaborations with research organizations and universities to assess potential application of our KL4 surfactant in studies funded in part through various U.S. Government-sponsored programs, including grants in support of our AEROSURF clinical program and biodefense-related initiatives that encourage private sector development of medical countermeasures against chemical, biological, radiological, nuclear terrorism threat agents and pandemic influenza, and provide a mechanism for federal acquisition of such countermeasures. We expect that we may have opportunities in the future to participate in similar programs. If funding is available, we would likely seek to explore potential opportunities to address such respiratory conditions as acute lung injury (ALI), including acute radiation exposure to the lung (acute pneumonitis and delayed lung injury), chemical-induced ALI, and influenza-induced ALI, where there are no currently approved therapies other than supportive respiratory care. In addition, if funding is available, we would consider opportunities to apply KL4 surfactant therapies to treat conditions such as chronic rhinosinusitis, complications of certain major surgeries, mechanical ventilator-induced lung injury (often referred to as VILI), pneumonia, and diseases involving mucociliary clearance disorders, such as chronic obstructive pulmonary disease (COPD) and cystic fibrosis. We believe that our proprietary aerosolized KL4 surfactant and drug delivery technologies potentially could support a pipeline of KL4 surfactant products that could address significant unmet medical needs and represent significant market opportunities. There can be no assurance, however, that we will be successful in securing the funding required to continue our exploratory development work, through grant awards, investigator-initiated programs or otherwise, and even if we are successful in continuing our efforts, that we will be successful with our efforts.

Liquidity Risks and Management's Plans

9 Months Ended

Sep. 30, 2015

Liquidity Risks and Management's Plans [Abstract]

Liquidity Risks and Management's Plans

Note 2 – Liquidity Risks and Management’s Plans

We have incurred substantial losses since inception, due to investments in research and development, manufacturing, as well as efforts through April 2015 to commercialize SURFAXIN, including marketing, commercial and medical affairs activities, and we expect to continue to incur substantial losses over the next several years. Historically, we have funded our business operations through various sources, including public and private securities offerings, debt facilities, strategic alliances, committed equity financing facilities, at-the-market equity programs, and capital equipment financings. We expect to fund our business operations in the future primarily through all or a combination of strategic alliances, collaboration agreements and other strategic transactions, public and private equity offerings, the potential exercise of outstanding warrants and, in the future, potential secured debt facilities.

As of September 30, 2015, we had cash and cash equivalents of $46.3 million and long-term debt of $25 million under our loan (Deerfield Loan) with affiliates of Deerfield Management Company, L.P. (Deerfield) (see, Note 7, “Deerfield Loan”). In July 2015, we completed a registered public offering of approximately 25.1 million Series A units and 42.0 million Series B units, each at a price per unit of $0.60, resulting in gross proceeds of $40.25 million ($37.6 million net after underwriting discount and expenses). The proceeds included $5.0 million in non-cash consideration from Deerfield (discussed below). In July 2015, we amended our Deerfield Loan agreement and related notes (Deerfield Notes) to (i) prepay in cash $5.0 million of the outstanding principal amounts under the Deerfield Notes; (ii) eliminate the principal installment due in February 2017, (iii) adjust the amounts due on each of February 13, 2018 and February 13, 2019 to $12.5 million and $12.5 million, respectively, (iv) prepay $5 million future interest obligations under the Deerfield Notes, which payment was made in the form of $5 million of securities issued in connection with the July 2015 public offering, and (v) reduce the interest rate for any remaining interest due under the Deerfield Notes from 8.75% to 8.25%. Before any additional financing activities, we anticipate that we will have sufficient cash available to support our AEROSURF phase 2 clinical program, pay our current debt service and fund our operations through the first quarter of 2017.

Under our collaboration agreement with Battelle, we completed Stage 1 (design requirements) of the three-stage project plan to develop our CAG device for potential use in our AEROSURF phase 3 clinical program and, if approved, initial commercial supply. In July 2015, we agreed on a project plan cost of up to $11.85 million to complete Stage 2 (development) and Stage 3 (design verification and testing) of the project plan, which will be shared equally. Accordingly, we expect that our 50% share of the project plan cost for Stage 2 and Stage 3 will be up to approximately $6 million and, following the completion of Stage 3 in mid-2016, we expect to be in a position to manufacture the CAG device and related componentry for use in the AEROSURF phase 3 clinical program. There can be no assurance that our collaboration will be successful or that we will timely complete the development work within the anticipated time, if ever, and at no more than the anticipated shared cost to us of up to approximately $6 million. Under the collaboration agreement, we also may defer payments due to Battelle for up to 12 months, provided that (i) any amounts deferred will bear interest from and after 90 days at a rate of 12% per annum, and (ii) the aggregate amounts deferred more than 30 days may not exceed at any time our available cash and cash equivalents. We currently have deferred $2.4 million and expect to defer aggregate payments of up to approximately $4.0 million at certain times throughout the term of the project.

We do not expect to generate any revenue from the sale of approved products for at least the next several years. To secure the significant additional infusions of capital that we will need to execute our business strategy, advance our AEROSURF development program, pay our obligations and fund our operations, we will have to rely on other sources of capital. We have historically raised additional capital through public and private equity offerings as well as strategic transactions. However, as of October 30, 2015, we have only approximately 3.1 million authorized shares of common stock available for potential equity offerings. Based on the closing market price per share of our common stock on October 30, 2015 ($0.31), we would be limited to raising a maximum of approximately $1.0 million. To raise additional capital through equity offerings, we would be required first to seek stockholder approval to increase the authorized shares of common stock provided under our Amended and Restated Certificate of Incorporation, as amended (Certificate of Incorporation), a process that could require a special meeting of stockholders, be time-consuming and expensive and could prevent or impair our efforts to efficiently raise capital when needed, if at all. In addition, the large number of outstanding warrants (discussed below), including the February 2011 warrants that expire in February 2016 and are currently exercisable at a price per share of $0.19, potentially could depress the market value of our common stock, even if we otherwise are successful, and potentially make it more difficult to raise capital through equity offerings, if at all, on acceptable terms. To secure potentially non-dilutive sources of capital, we have in the past and plan in the future to consider strategic transactions, including without limitation potential strategic alliances and collaboration arrangements that could provide development and commercial expertise to support the development and, if approved, commercial introduction, of AEROSURF and other future KL4 surfactant product candidates. Such alliances typically also would provide financial resources, in the form of upfront payments, milestone payments, commercialization royalties and a sharing of research and development expenses. We have been engaged in ongoing communications with several potential strategic counterparties, including in the first quarter of 2015 with respect to SURFAXIN. Such entities have expressed interest in AEROSURF, and our KL4 surfactant and drug delivery technologies. We believe that we will be better positioned to identify and enter into alliances and other strategic transactions focused on AEROSURF if we obtain encouraging results from our AEROSURF phase 2 clinical program. In addition, we could also consider other non-dilutive financing transactions, including debt arrangements and secured financing transactions to fund investment in capital assets. There can be no assurance, however, that we will be successful in securing the capital we will require, whether through public or private equity offerings, strategic alliances, collaboration agreements or other strategic transactions, or through debt arrangements or the financing of capital assets. Failure to secure the necessary capital could have a material adverse effect on our business, financial condition and results of operations.

As of September 30, 2015, we had outstanding warrants to purchase approximately 121.6 million shares of our common stock at various prices, exercisable on different dates into 2024. This includes:

warrants issued in July 2015, including (i) warrants to purchase up to approximately 67.1 million shares of common stock at an initial exercise price of $0.70 per share, and (ii) pre-funded warrants to purchase up to 42.0 million shares of common stock at an exercise price of $0.60 per share, of which the entire purchase price was pre-paid upon issuance. The July 2015 warrants are exercisable in whole or in part at any time for cash or through a cashless exercise through July 22, 2022. The July 2015 pre-funded warrants are fully paid and may be exercised at any time through July 22, 2022;

warrants issued in February 2011 to purchase up to approximately 3.8 million shares of common that contain anti-dilution provisions that adjust the exercise price if we issue any common stock, securities convertible into common stock, or other securities (subject to certain exceptions) at a value below the then-current exercise price of the warrants. The exercise price of these warrants was adjusted in connection with our July 2015 public offering to $0.19 per share. The February 2011 warrants expire on February 22, 2016; and

warrants issued to Deerfield in connection with the Deerfield Loan to purchase up to 7.0 million shares of common stock at an exercise price of $2.81 per share (Deerfield Warrants). The Deerfield Warrants may be exercised for cash or through a cashless exercise at any time through February 13, 2020. In lieu of paying cash upon exercise, the holders of the Deerfield Warrants also may elect to reduce the principal amount of the Deerfield Loan in an amount sufficient to satisfy the exercise price of the Deerfield Warrants.

There can be no assurance that the price of our common stock will achieve a level greater than the exercise price of the July 2015 warrants or the Deerfield Warrants, that the holders would choose to exercise their warrants for cash, or that holders of any of our outstanding warrants would choose to exercise any or all of their warrants prior to the applicable warrant expiration dates. If any of our outstanding warrants are exercised, such exercises likely will be at a discount to the then-market value of our common stock and have a dilutive effect on the value of our shares of common stock at the time of exercise. Upon exercise of the July 2015 pre-funded warrants, which were fully-paid at issuance, we would issue the shares to the holders and receive no additional proceeds. If the holders of the February 2011 warrants choose to exercise their warrants at any time prior to the expiration date in February 2016, we potentially could receive proceeds of up to approximately $0.7 million; however, such exercises could be accompanied by increased selling activity in the Nasdaq market and the market value of our common stock could decline.

In addition, we have in the past collaborated with research organizations and universities to assess potential application of our KL4 surfactant in studies funded in part through various U.S. Government-sponsored drug development programs, including grants in support of initiatives related to our AEROSURF clinical program and biodefense-related initiatives under programs that encourage private sector development of medical countermeasures against chemical, biological, radiological, and nuclear terrorism threat agents, and pandemic influenza, and provide a mechanism for federal acquisition of such countermeasures. See, Note 1, “The Company and Description of Business.” Although there can be no assurance, we expect that we may have opportunities in the future to participate in similar programs.

If in the future we are unable to fund our capital requirements, we likely will not have sufficient cash flow and liquidity to fund our business operations and pay our debt service, which could have a material adverse effect on our business and operations. In that event, we may be forced to severely limit our development programs and consider other means of creating value for our stockholders, such as licensing the development and/or commercialization of products that we consider valuable and might otherwise plan to develop ourselves. If we are unable to raise the necessary capital, we may be forced to curtail all of our activities and, ultimately, cease operations. Even if we are able to secure additional capital, such transactions may only be available on unattractive terms, or could result in significant dilution of stockholders’ interests and, in such event, the market price of our common stock may decline. Moreover, if we fail in the future to make any required payment under our Deerfield Loan or fail to comply with any commitments contained in the loan documents, Deerfield would be able to declare us in default regarding that indebtedness, which could result in the acceleration of the payment obligations under all or a portion of our indebtedness. Since we have pledged substantially all of our assets to secure our obligations under the Deerfield Loan, a debt default would enable the lenders to foreclose on our assets securing the debt and could significantly diminish the market value and marketability of our common stock. Our financial statements do not include any adjustments relating to recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue in existence.

As of September 30, 2015, there were 250 million shares of common stock authorized under our Certificate of Incorporation and approximately 3.1 million shares of common stock were available for issuance and not otherwise reserved. Of the 250 million shares of common stock that are presently authorized under our Certificate of Incorporation, approximately 246.9 million shares of common stock are either issued and outstanding or reserved for issuance under our 2011 Equity Incentive Plans (2011 Plan), our 401(k) benefit plan, our ATM Program and upon exercise of outstanding warrants.

On June 29, 2015, we received a letter from The Nasdaq Stock Market indicating that for 30 consecutive business days our common stock had not maintained a minimum closing per share bid price of $1.00 (Minimum Bid Price Requirement) as required by Nasdaq Listing Rule 5550(a)(2). Under Nasdaq’s Listing Rules, we have 180 calendar days from the date of the notification (the Compliance Period), or until December 28, 2015, to regain compliance with the Minimum Bid Price Requirement. To regain compliance, the closing bid price of our common stock must close above $1.00 for a minimum of 10 consecutive business days; thereafter, our common stock would continue to be eligible for listing on the Nasdaq Capital Market. If we do not achieve compliance with the Minimum Bid Price Requirement prior to December 28, 2015, we may be eligible for a 180‑day extension of the Compliance Period if we meet certain criteria set forth in the Nasdaq Listing Rules. If we fail to achieve compliance with the Minimum Bid Price Requirement within the applicable Compliance Period, the Nasdaq staff would issue a delisting notification and we would be subject to potential delisting, which if it occurred likely would further impair the liquidity and value of our common stock.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 3 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information in accordance with the instructions to Form 10‑Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normally recurring accruals) considered for fair presentation have been included. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

There have been no changes to our critical accounting policies since December 31, 2014. For a discussion of our accounting policies, see, Note 3, “Accounting Policies and Recent Accounting Pronouncements,” in the Notes to Consolidated Financial Statements in our 2014 Form 10-K. Readers are encouraged to review those disclosures in conjunction with this Quarterly Report on Form 10-Q.

Use of Estimates

The preparation of financial statements, in conformity with accounting principles generally accepted in the U.S., requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Accrued Severance and Retention Costs

A liability for employee severance and retention benefits is recognized when (1) management has committed to a plan of termination; (2) the plan provides sufficient details, such as the employees affected, amounts to be paid, and expected dates of termination and payment; (3) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn; and (4) the plan has been communicated to employees.

In September 2013, we implemented an employee severance and retention plan for employees at our manufacturing facility in Totowa, NJ (Totowa Facility) to minimize employee turnover and encourage employees to remain with us through any potential plant closing. The plan provided for severance for non-union employees and retention bonuses for management. An additional 12 employees were subject to a collective bargaining agreement under which they were eligible to receive severance payments when the Totowa Facility closed.

In April 2015, we implemented a restructuring plan to voluntarily cease the commercialization of SURFAXIN and focus our resources on the development of our aerosolized KL4 surfactant pipeline for respiratory diseases, beginning with AEROSURF. As part of the restructuring plan, we ceased manufacturing activities at our Totowa Facility, which we closed upon the expiration of our lease on June 30, 2015.

The total severance cost for all impacted employees is $2.9 million, of which $1.1 million was accrued as of March 31, 2015 for Totowa employees under the September 2013 severance and retention plan. The remaining $1.8 million was charged during the three months ended June 30, 2015 ($0.9 million to research and development expenses and $0.9 million to selling, general and administrative expenses). We paid $1.8 million and $0.6 million of the severance and retention benefits during the second and third quarters of 2015, respectively. The remaining $0.5 million will be paid through June 30, 2016.

Long-lived assets

Our long-lived assets, primarily consisting of manufacturing and laboratory equipment, are reviewed for impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable, or its estimated useful life has changed significantly. When the undiscounted cash flows of an asset are less than its carrying value, an impairment is recorded and the asset is written down to estimated value. In the second quarter of 2015, we closed the Totowa Facility and sold manufacturing equipment for total cash proceeds of $0.3 million, resulting in a $0.1 million loss from the sale and disposal of these assets.

Research and development expense

We account for research and development expense by the following categories: (a) product development and manufacturing, (b) medical and regulatory operations, and (c) direct preclinical and clinical programs. Research and development expense includes personnel, facilities, manufacturing and quality operations, pharmaceutical and device development, research, clinical, regulatory, other preclinical and clinical activities and medical affairs. Research and development costs are charged to operations as incurred.

Net loss per common share

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per common share is computed by giving effect to all potentially dilutive securities outstanding for the period.

For the quarters ended September 30, 2015 and 2014, the number of shares of common stock potentially issuable upon the exercise of stock options and warrants was 129.2 million and 20.8 million shares, respectively. As of September 30, 2015 and 2014, 129.2 million and 16.2 million shares of common stock potentially issuable upon the exercise of stock options and warrants were excluded from the computation of diluted net loss per common share because their impact would have been anti-dilutive.

In accordance with Accounting Standards Codification Topic 260 (ASC 260), Earnings per Share, when calculating diluted net loss per common share, a gain associated with the decrease in the fair value of warrants classified as derivative liabilities results in an adjustment to the net loss; and the dilutive impact of the assumed exercise of these warrants results in an adjustment to the weighted average common shares outstanding. We utilize the treasury stock method to calculate the dilutive impact of the assumed exercise of warrants classified as derivative liabilities.

(in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014

Numerator:
Net loss as reported	$	(21,556	)	$	(11,324	)	$	(45,061	)	$	(33,423	)
Less: income from change in fair value of warrant liability		(139	)		–			(577	)		(1,993	)
Numerator for diluted net loss per common share	$	(21,695	)	$	(11,324	)	$	(45,638	)	$	(35,416	)

Denominator:
Basic weighted average common shares Outstanding		105,696			85,209			92,420			85,001
Dilutive common shares from assumed warrant exercises		–			–			–			1,120
Diluted weighted average common shares outstanding		105,696			85,209			92,420			86,121

We do not have any components of other comprehensive income (loss).

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 2015
Stockholders' Equity [Abstract]
Stockholders' Equity	Note 4 – Stockholders’ Equity On July 22, 2015, we completed a registered public offering of 25,083,332 Series A units and 42,000,000 Series B units each at a price per unit of $0.60, resulting in gross proceeds of $40.25 million ($37.6 million net after underwriting discount and expenses), including the exercise in full by the underwriters of their option to purchase up to an additional 8,749,999 Series A units at a price per unit of $0.60 to cover over-allotments. The proceeds included $5.0 million in non-cash consideration from Deerfield in the form of a reduction in future interest payments due under the Deerfield Loan (see, “Note 7 – Deerfield Loan Restructuring”). Each Series A unit consists of one share of common stock and a Series A warrant to purchase one share of common stock at an exercise price of $.70 per share. Each Series B unit consists of a fully paid pre-funded Series B warrant to purchase one share of common stock at an exercise price of $0.60 per share, and a Series B warrant to purchase one share of common stock at an exercise price of $.70 per share. The shares of common stock and warrants were immediately separable such that no units were issued. The warrants are exercisable immediately at the election of the holder for cash or through a net cashless exercise, provided that a holder may not exercise a warrant to the extent that after giving effect to such exercise, such holder would beneficially own in excess of 9.99% (or 4.99% as may be elected by such holder) of the shares of our common stock outstanding immediately after such exercise. All warrants will expire on the seventh anniversary of the issue date. In connection with the July 2015 registered public offering, the exercise price of warrants that we issued in a February 2011 was adjusted in accordance with anti-dilution provisions in the warrants, which generally may apply if we issue any common stock, securities convertible into common stock, or other securities (subject to certain exceptions) at a value below the then-existing exercise price of the warrants, and include a method to value the share component of a unit offering. As a result, the exercise price of these warrants was reduced from $1.50 to $0.19 per share There are currently outstanding 3.8 million February 2011 warrants, which will expire on February 22, 2016.

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

+ Details

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2015

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

Note 5 – Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, as follows:

Level 1 – Quoted prices in active markets for identical assets and liabilities.

Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Fair Value on a Recurring Basis

The tables below categorize assets and liabilities measured at fair value on a recurring basis for the periods presented:


	Fair Value		Fair value measurement using
	September 30, 2015		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	46,308	$	46,308	$	–	$	–
Certificate of deposit		225		225		–		–
Total Assets	$	46,533	$	46,533	$	–	$	–

Liabilities:
Common stock warrant liability	$	497	$	–	$	–	$	497

	Fair Value		Fair value measurement using
	December 31, 2014		Level 1		Level 2		Level 3

Assets:
Cash and cash equivalents	$	44,711	$	44,711	$	–	$	–
Certificate of deposit		225		225		–		–
Total Assets	$	44,936	$	44,936	$	–	$	–

Liabilities:
Common stock warrant liability	$	1,258	$	–	$	–	$	1,258

The tables below summarize the activity of Level 3 inputs measured on a recurring basis for the nine months ended September 30, 2015 and 2014:

(in thousands)	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)

Balance at December 31, 2014	$	1,258
Exercise of warrants		(184	)
Change in fair value of common stock warrant liability		(577	)
Balance at September 30, 2015	$	497

(in thousands)	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)

Balance at December 31, 2013	$	5,425
Exercise of warrants		(377	)
Change in fair value of common stock warrant liability		(1,999	)
Balance at September 30, 2014	$	3,049

The significant unobservable inputs for a trinomial model used in the fair value measurement of the common stock warrants measured on a recurring basis are the historical volatility of our common stock market price, expected term of the applicable warrants, and the risk-free interest rate based on the U.S. Treasury yield curve in effect at the measurement date. In addition to the significant unobservable inputs noted above, certain fair value measurements also take into account an assumption of the likelihood and timing of the occurrence of an event that would result in an adjustment to the exercise price in accordance with the anti-dilutive pricing provisions in certain of the warrants. Any significant increases or decreases in the unobservable inputs, with the exception of the risk-free interest rate, may result in significantly higher or lower fair value measurements.

Significant Unobservable Input Assumptions of Level 3 Valuations	September 30, 2015	December 31, 2014

Historical volatility	99%	55% – 84%
Expected term (in years)	0.4	0.1 – 1.1
Risk-free interest rate	0.05%	0.03% – 0.31%

Fair Value of Long-Term Debt

At September 30, 2015, the estimated fair value of the Deerfield Loan (see, Note 7, “Deerfield Loan”) approximated the carrying value of $25.0 million. At December 31, 2014, the estimated fair value of the Deerfield Loan was $22.2 million compared to a carrying value, net of discounts, of $20.3 million. The estimated fair value of the Deerfield Loan is based on discounting the future contractual cash flows to the present value at the valuation date. This analysis utilizes certain Level 3 unobservable inputs, including current cost of capital. Considerable judgment is required to interpret market data and to develop estimates of fair value. The estimates presented are not necessarily indicative of amounts we could realize in a current market exchange. The use of alternative market assumptions and estimation methodologies could have a material effect on these estimates of fair value.

- 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

Deerfield Loan

9 Months Ended

Sep. 30, 2015

Deerfield Loan [Abstract]

Deerfield Loan

Note 7 – Deerfield Loan

Long-term debt consists solely of amounts due under the Deerfield Loan for the periods presented:

(in thousands)	September 30, 2015		December 31, 2014
Note payable	$	25,000	$	30,000
Unamortized discount		–		(9,698	)
Long-term debt, net of discount	$	25,000	$	20,302

On July 9, 2015, we entered into an amendment to our Deerfield Loan agreement and Deerfield Notes to better align our Deerfield Loan principal repayment obligations with anticipated milestones under our clinical development program for AEROSURF. Under the terms of the amendment, (i) upon execution, we prepaid in cash $2.5 million of the principal amounts outstanding under the Deerfield Loan, (ii) on July 22, 2015, we prepaid an additional $2.5 million of the principal amounts then outstanding upon the occurrence of the July 2015 public offering, (iii) the principal installment originally due in February 2017 was eliminated and (iv) the installments due in each of February 2018 and 2019 were adjusted to $12.5 million and $12.5 million, respectively. We also paid Deerfield’s expenses (including reasonable counsel fees and expenses of up to $15,000) incurred in connection with the amendment. Under the Deerfield Loan agreement, the $12.5 million installment currently due in February 2018 remains subject to potential deferral of one year if we achieve the market capitalization milestone set forth in the Deerfield Loan agreement.

On July 22, 2015, we entered into a second amendment to our Deerfield Loan agreement and Deerfield Notes. Under the terms of the second amendment, (a) upon the closing of the July 2015 public offering on July 22, 2015, we prepaid in cash $2.5 million of the principal amounts then outstanding under the Deerfield Loan, as contemplated by the first amendment, and (b) Deerfield purchased and accepted $5 million Series A and Series B units offered in our July 2015 public offering in satisfaction of $5 million of future interest payments due under the Deerfield Notes. In addition, (i) we paid in cash when due on September 30, 2015, all accrued and unpaid interest due under the Deerfield Notes for the period from June 30, 2015 to July 22, 2015 at the existing rate of 8.75%; (ii) Deerfield has agreed to apply the $5 million prepayment of interest accruing from and after July 23, 2015, as and when such payments are due and payable, as follows; first, to interest accruing on the $12.5 million principal installment due on February 13, 2019, and second, to interest accruing on the $12.5 million principal installment due on February 13, 2018, until fully allocated, which is scheduled to occur at the end of the second quarter of 2016; (iii) after the full allocation of the $5 million interest prepayment, any remaining interest due on the principal amount of the Deerfield Notes will thereafter accrue at a rate of 8.25% per annum; and (iv) no credit shall be given with respect to prepaid interest on principal under the Deerfield Notes that is prepaid, in whole or in part, except for a prepayment at our election or a prepayment required under the Deerfield Loan agreement in connection with a major transaction (as defined in the Deerfield Loan agreement) that qualifies as a “Qualified Major Transaction.” A “Qualified Major Transaction” means a change of control transaction (as defined in the Deerfield Warrants), in which (i) we are not the surviving entity and (ii) our common stock valuation (as defined in the Deerfield Warrants) immediately prior to the change of control transaction equals or exceeds $100 million. In addition, we have paid Deerfield’s expenses (including reasonable counsel fees and expenses) incurred in connection with the second amendment.

The restructuring of the Deerfield Loan qualifies as an extinguishment of debt in accordance with ASC Topic 470, Debt - Modifications and Extinguishments, and as a result, we have incurred an $11.8 million non-cash loss on debt extinguishment consisting primarily of (1) the $7.7 million difference between the reacquisition price of the Deerfield Loan and the net carrying amount of the extinguished Deerfield Loan, and (2) the $4.1 million in fair value of the Series A and Series B warrants issued to Deerfield as part of the $5 million of Series A and Series B units Deerfield agreed to purchase and accept in our July 2015 public offering in satisfaction of $5 million of future interest payments due under the Deerfield Notes.

The following amounts comprise the Deerfield Loan interest expense for the periods presented:

(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Cash interest expense	$	150	$	662	$	1,451	$	1,963
Non-cash amortization of debt discounts		138		504		1,287		1,414
Debt discount write-off		707		–		707		–
Amortization of prepaid interest expense		420		–		420		–
Amortization of debt costs		2		5		12		15
Write-off of debt costs		66		–		66		–
Total interest expense	$	1,483	$	1,171	$	3,943	$	3,392

Cash interest expense represents interest at an annual rate of 8.75% on the outstanding principal amount for the period, paid in cash on a quarterly basis. Non-cash amortization of debt discount represents the amortization of transaction fees and the fair value of the Deerfield Warrants. Debt discount write-off represents the proportional write-off of unamortized debt discount at the time of a $2.5 million prepayment of principal amount outstanding under the Deerfield Loan. Amortization of prepaid interest expense represents non-cash amortization of the $5 million of Series A and Series B units Deerfield agreed to purchase and accept in our July 2015 public offering in satisfaction of $5 million of future interest payments due under the Deerfield Notes. The amortization of debt costs represents professional fees incurred in connection with the Deerfield Loan, and the write-off of debt costs represents the write-off of the remaining costs at the time of the debt restructuring.

In connection with the Deerfield Loan, we issued the Deerfield Warrants to purchase 7.0 million shares of our common stock at an exercise price per share of $2.81 that expire on February 13, 2019. The Deerfield Warrants are derivatives that qualify for an exemption from liability accounting provided in ASC 815 and are classified as equity. See, Note 9, “Deerfield Loan,” in the Notes to Consolidated Financial Statements in our 2014 Form 10-K.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Accrued Severance and Retention Costs

Long-lived assets

Research and development expense

Net loss per common share

(in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014

Numerator:
Net loss as reported	$	(21,556	)	$	(11,324	)	$	(45,061	)	$	(33,423	)
Less: income from change in fair value of warrant liability		(139	)		–			(577	)		(1,993	)
Numerator for diluted net loss per common share	$	(21,695	)	$	(11,324	)	$	(45,638	)	$	(35,416	)

Denominator:
Basic weighted average common shares Outstanding		105,696			85,209			92,420			85,001
Dilutive common shares from assumed warrant exercises		–			–			–			1,120
Diluted weighted average common shares outstanding		105,696			85,209			92,420			86,121

We do not have any components of other comprehensive income (loss).

The Company and Description of Business (Details)		1 Months Ended
The Company and Description of Business (Details)	May 31, 2015 Doses	Oct. 31, 2015 Doses Infant Site	May 31, 2015 Doses Infant
29 to 34 weeks gestational age [Member]
Description of Business [Line Items]
Number of dose groups enrolled for clinical trials \| Doses	2
Number of escalating inhaled doses \| Doses			3
Escalating inhaled doses one			15 minutes
Escalating inhaled doses two			30 minutes
Escalating inhaled doses three			45 minutes
Number of premature infants undergoing surfactant doses			48
Subsequent Event [Member] \| 29 to 34 weeks gestational age [Member]
Description of Business [Line Items]
Number of additional infants undergoing surfactant doses		32
Subsequent Event [Member] \| 26 to 28 weeks gestational age [Member]
Description of Business [Line Items]
Number of premature infants undergoing surfactant doses		32
Subsequent Event [Member] \| 26 to 32 weeks gestational age [Member]
Description of Business [Line Items]
Number of escalating doses \| Doses		2
Number of clinical sites \| Site		50
Minimum [Member] \| 26 to 28 weeks gestational age [Member]
Description of Business [Line Items]
Gestational age tolerability limit		30 minutes
Minimum [Member] \| Subsequent Event [Member] \| 29 to 34 weeks gestational age [Member]
Description of Business [Line Items]
Gestational age tolerability limit		1 hour
Maximum [Member] \| 26 to 28 weeks gestational age [Member]
Description of Business [Line Items]
Gestational age tolerability limit		45 minutes
Maximum [Member] \| Subsequent Event [Member] \| 29 to 34 weeks gestational age [Member]
Description of Business [Line Items]
Gestational age tolerability limit		1 hour 30 minutes
Maximum [Member] \| Subsequent Event [Member] \| 26 to 32 weeks gestational age [Member]
Description of Business [Line Items]
Number of premature infants undergoing surfactant doses		250

Liquidity Risks and Management's Plans (Details) - USD ($) $ / shares in Units, $ in Thousands		9 Months Ended
	Jul. 22, 2015	Sep. 30, 2015	Jul. 09, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Liquidity Risks and Management's Plans [Abstract]
Cash and cash equivalents		$ 46,308		$ 44,711	$ 54,915	$ 86,283
Long-term debt		25,000		30,000
Liquidity Risk and Managements Plans [Line Items]
Prepayment of future interest obligations		$ 1,986		$ 0
Cash interest rate under loan facility		8.75%
Market price of common stock (in dollars per share)		$ 1.00
Number of days below market price threshold		30 days
Number of days required to remain above market price threshold		10 days
Number of days to achieve compliance after delisting notice		180 days
Number of days of extension based upon criteria met		180 days
Gross proceeds from issuance of common stock	$ 40,250
Net proceeds from issuance of common stock	37,600
Non-cash consideration received	$ 5,000
Number of warrant shares potentially issuable (in shares)		121,600,000
Common stock, shares authorized (in shares)	250,000,000	250,000,000		250,000,000
Common stock available for future issuance (in shares)		3,100,000
Common stock issued and outstanding or reserved for future issuance (in shares)	246,900,000
Common stock closing market price (in dollars per share)		$ 0.31
Common stock issued, value		$ 112		$ 86
Maximum [Member]
Liquidity Risk and Managements Plans [Line Items]
Common stock issued, value		$ 1,000
Deerfield Management Company [Member]
Liquidity Risk and Managements Plans [Line Items]
Exercise price of warrants (in dollars per share)		$ 2.81
Deerfield Debt Restructuring [Member]
Liquidity Risk and Managements Plans [Line Items]
Prepayment of principal amount of loan outstanding	$ 5,000
Principal amount of loan outstanding payable in February 2018	12,500		$ 12,500
Principal amount of loan outstanding payable in February 2019	12,500		$ 12,500
Investments in public offering	5,000
Prepayment of future interest obligations	$ 5,000
Cash interest rate under loan facility	8.75%
Cash interest rate under loan facility after decreasing	8.25%
Number of warrants issued (in shares)		7,000,000
Sale of unit price per unit (in dollars per share)		$ 2.81
Battelle - 2014 Collaboration Agreement [Member]
Liquidity Risk and Managements Plans [Line Items]
Research and development, percentage of expected planned cost for stage 2 and 3		50.00%
Deferred payments interest bearing threshold		90 days
Deferred payments, outstanding interest rate		12.00%
Deferred payments deferment limit, period		30 days
Deferred costs		$ 2,400
Maximum period to defer payment		12 months
Battelle - 2014 Collaboration Agreement [Member] \| Maximum [Member]
Liquidity Risk and Managements Plans [Line Items]
Research and development, planned cost for stage 2 and 3		$ 11,850
Research and development, expected planned cost for stage 2 and 3		6,000
Research and development, expected shared cost for phase 3 clinical program		6,000
Expected deferred payments amount		$ 4,000
February 2011 Warrants [Member]
Liquidity Risk and Managements Plans [Line Items]
Number of warrants issued (in shares)		3,800,000
Sale of unit price per unit (in dollars per share)	$ 0.19
Exercise price of warrants (in dollars per share)		$ 0.19
Number of warrant shares potentially issuable (in shares)		3,800,000
Warrants expiration date		Feb. 22, 2016
Potential proceeds of warrants if exercised		$ 700
July 2015 Warrants [Member]
Liquidity Risk and Managements Plans [Line Items]
Number of warrants issued (in shares)	67,100,000
Exercise price of warrants (in dollars per share)	$ 0.70
July 2015 Prefunded Warrants [Member]
Liquidity Risk and Managements Plans [Line Items]
Number of warrants issued (in shares)	42,000,000
Sale of unit price per unit (in dollars per share)	$ 0.60
Series A Units [Member]
Liquidity Risk and Managements Plans [Line Items]
Issuance of common stock (in shares)	25,100,000
Sale of unit price per unit (in dollars per share)	$ 0.60
Series B Units [Member]
Liquidity Risk and Managements Plans [Line Items]
Issuance of common stock (in shares)	42,000,000
Sale of unit price per unit (in dollars per share)	$ 0.60

Summary of Significant Accounting Policies (Details) shares in Thousands, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2015 USD ($) shares	Jun. 30, 2015 USD ($)	Sep. 30, 2014 USD ($) shares	Sep. 30, 2015 USD ($) Employee shares	Sep. 30, 2014 USD ($) shares	Mar. 31, 2015 USD ($)
Summary of Significant Accounting Policies [Abstract]
Number of employees to receive severance payments \| Employee				12
Proceeds from sale of property and equipment		$ 300		$ 260	$ 0
Loss from sale and disposal of long-lived assets		100		(84)	0
Number of shares of common stock potentially issuable upon the exercise of stock options and warrants (in shares) \| shares	129,200		20,800
Potential common stock issuable upon exercise of stock options and warrants (in shares) \| shares	129,200		16,200
Numerator [Abstract]
Net loss as reported	$ (21,556)		$ (11,324)	(45,061)	(33,423)
Less: income from change in fair value of warrant liability	(139)		0	(577)	(1,993)
Numerator for diluted net loss per common share	$ (21,695)		$ (11,324)	$ (45,638)	$ (35,416)
Denominator [Abstract]
Basic weighted average common shares outstanding (in shares) \| shares	105,696		85,209	92,420	85,001
Dilutive common shares from assumed warrant exercises (in shares) \| shares	0		0	0	1,120
Diluted weighted average common shares outstanding (in shares) \| shares	105,696		85,209	92,420	86,121
September 2013 Severance and Retention Benefits Plan [Member]
Restructuring Cost and Reserve [Line Items]
Employee severance cost				$ 2,900
Accrued severance cost amount						$ 1,100
Severance and retention benefits paid	$ 600	1,800
Severance and retention benefits to be paid in future periods	$ 500			$ 500
September 2013 Severance and Retention Benefits Plan [Member] \| Research and Development Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Severance and retention benefits paid		900
September 2013 Severance and Retention Benefits Plan [Member] \| Selling, General and Administrative Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Severance and retention benefits paid		$ 900

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands		9 Months Ended
	Jul. 22, 2015	Sep. 30, 2015
Class of Stock [Line Items]
Gross proceeds from issuance of units	$ 40,250
Net proceeds from issuance of units	37,600
Non-cash consideration received	$ 5,000
Warrants outstanding		121,600,000
Deerfield Debt Restructuring [Member]
Class of Stock [Line Items]
Sale of unit price per unit (in dollars per share)		$ 2.81
Series A Units [Member]
Class of Stock [Line Items]
Issuance of common stock (in shares)	25,100,000
Sale of unit price per unit (in dollars per share)	$ 0.60
Series B Units [Member]
Class of Stock [Line Items]
Issuance of common stock (in shares)	42,000,000
Sale of unit price per unit (in dollars per share)	$ 0.60
February 2011 Warrants [Member]
Class of Stock [Line Items]
Sale of unit price per unit (in dollars per share)	$ 0.19
Exercise price of warrants (in dollars per share)		$ 0.19
Warrants outstanding		3,800,000
Warrants expiration date		Feb. 22, 2016
Registered Public Offerings [Member]
Class of Stock [Line Items]
Gross proceeds from issuance of units	$ 40,250
Net proceeds from issuance of units	$ 37,600
Class of warrants may not exercise to extent	9.99%
Class of warrants exercise may be elected by holders	4.99%
Registered Public Offerings [Member] \| Deerfield Debt Restructuring [Member]
Class of Stock [Line Items]
Non-cash consideration received	$ 5,000
Registered Public Offerings [Member] \| Series A Units [Member]
Class of Stock [Line Items]
Issuance of common stock (in shares)	25,083,332
Sale of unit price per unit (in dollars per share)	$ 0.60
Number of warrants required to purchase one share of common stock (in shares)	1
Exercise price of warrants (in dollars per share)	$ 0.70
Registered Public Offerings [Member] \| Series A Warrant [Member]
Class of Stock [Line Items]
Number of warrants required to purchase one share of common stock (in shares)	1
Exercise price of warrants (in dollars per share)	$ 0.70
Registered Public Offerings [Member] \| Series B Units [Member]
Class of Stock [Line Items]
Issuance of common stock (in shares)	42,000,000
Sale of unit price per unit (in dollars per share)	$ 0.60
Number of warrants required to purchase one share of common stock (in shares)	1
Exercise price of warrants (in dollars per share)	$ 0.60
Registered Public Offerings [Member] \| Series B Warrant [Member]
Class of Stock [Line Items]
Number of warrants required to purchase one share of common stock (in shares)	1
Exercise price of warrants (in dollars per share)	$ 0.70
Registered Public Offerings [Member] \| February 2011 Warrants [Member]
Class of Stock [Line Items]
Exercise price of warrants (in dollars per share)	$ 1.50
Over-Allotment [Member] \| Series A Units [Member]
Class of Stock [Line Items]
Issuance of common stock (in shares)	8,749,999
Sale of unit price per unit (in dollars per share)	$ 0.60

Common Stock Warrant Liability (Details) - USD ($)	3 Months Ended		9 Months Ended
Common Stock Warrant Liability (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Feb. 22, 2011
Estimated fair value of warrants accounted for as derivative liabilities [Abstract]
Fair value of warrants	$ 497,000		$ 497,000		$ 1,258,000
Number of warrant shares potentially issuable (in shares)	121,600,000		121,600,000
Proceeds from exercise of warrants			$ 136,000	$ 426,000
February 2011 Warrants [Member]
Estimated fair value of warrants accounted for as derivative liabilities [Abstract]
Warrants issuance date			Feb. 22, 2011
Warrants expiration date			Feb. 22, 2016
Fair value of warrants	$ 500,000		$ 500,000			$ 8,000,000
Number of warrant shares potentially issuable (in shares)	3,800,000		3,800,000
Exercise price of warrants (in dollars per share)	$ 0.19		$ 0.19
Exercise of warrants by warrant holders to purchase common stock (in shares)	716,704	2,500	716,704	284,850
Proceeds from exercise of warrants	$ 136,000	$ 3,000	$ 136,000	$ 426,000

- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset, expected to be settled within one year or normal operating cycle, if longer. Includes assets not subject to a master netting arrangement and not elected to be offset.

+ References + Details

Deerfield Loan (Details) - USD ($) $ / shares in Units, shares in Millions			3 Months Ended		9 Months Ended
	Jul. 22, 2015	Jul. 09, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Carrying value of Facility Agreement [Abstract]
Note payable			$ 25,000,000		$ 25,000,000		$ 30,000,000
Unamortized discount			0		0		(9,698,000)
Long-term debt, net of discount			$ 25,000,000		$ 25,000,000		$ 20,302,000
Cash interest rate under loan facility			8.75%		8.75%
Non-cash loss on debt extinguishment			$ (11,758,000)	$ 0	$ (11,758,000)	$ 0
Interest expense [Abstract]
Debt discount write-off					$ 707,000	0
Deerfield Debt Restructuring [Member]
Carrying value of Facility Agreement [Abstract]
Prepayment of principal amount of loan outstanding	$ 2,500,000	$ 2,500,000
Amount of units sold in public offering	5,000,000
Additional right to prepayment of principal amount of loan outstanding		2,500,000
Principal amount of loan outstanding payable in February 2018	12,500,000	12,500,000
Principal amount of loan outstanding payable in February 2019	$ 12,500,000	12,500,000
Deferred period for loan payment					1 year
Counsel fee and expenses		$ 15,000
Cash interest rate under loan facility	8.75%
Principal amount of loan payable, prepayment amount	$ 5,000,000
Remaining interest due on the principal amount outstanding	8.25%
Common stock valuation prior to change in control	$ 100,000,000
Non-cash loss on debt extinguishment					$ 11,800,000
Non-cash loss on debt extinguishment related to difference between reacquisition price and net carrying value of Deerfield loan					7,700,000
Non-cash loss on debt extinguishment related to fair value of warrants					$ 4,100,000
Principal amount of loan payable, future interest obligation	$ 5,000,000
Deerfield Management Company [Member]
Carrying value of Facility Agreement [Abstract]
Number of shares under issued warrants (in shares)			7.0		7.0
Exercise price of warrants (in dollars per share)			$ 2.81		$ 2.81
Interest expense [Abstract]
Cash interest expense			$ 150,000	662,000	$ 1,451,000	1,963,000
Non-cash amortization of debt discounts			138,000	504,000	1,287,000	1,414,000
Debt discount write-off			707,000	0	707,000	0
Amortization of prepaid interest expense			420,000	0	420,000	0
Amortization of debt costs			2,000	5,000	12,000	15,000
Write-off of debt costs			66,000	0	66,000	0
Total interest expense			$ 1,483,000	$ 1,171,000	$ 3,943,000	$ 3,392,000

Stock Options and Stock-Based Employee Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock Options and Stock-Based Employee Compensation [Abstract]
Weighted-average vesting period of stock options			3 years
Weighted-average assumptions used in estimating fair value of stock options [Abstract]
Weighted average expected volatility			83.00%	100.00%
Weighted average expected term			5 years 7 months 6 days	5 years 4 months 24 days
Weighted average risk-free interest rate			1.50%	1.60%
Expected dividends			0.00%	0.00%
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee stock-based compensation	$ 418	$ 857	$ 1,352	$ 2,342
Research & Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee stock-based compensation	192	313	551	860
Selling, General & Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee stock-based compensation	$ 226	$ 544	$ 801	$ 1,482

Common Stock Warrant Liability	9 Months Ended
Common Stock Warrant Liability	Sep. 30, 2015
Common Stock Warrant Liability [Abstract]
Common Stock Warrant Liability	Note 6 – Common Stock Warrant Liability We account for common stock warrants in accordance with applicable accounting guidance provided in ASC Topic 815, Derivatives and Hedging – Contracts in Entity’s Own Equity (ASC 815), either as derivative liabilities or as equity instruments depending on the specific terms of the warrant agreement. On February 22, 2011, we issued registered warrants that expire on February 22, 2016 and had a fair value at issuance of $8.0 million. As of September 30, 2015, there were 3.8 million warrant shares potentially issuable upon exercise of these warrants, with a fair value of $0.5 million. These warrants contain anti-dilution provisions that in certain circumstances adjust the exercise price if we issue any common stock, securities convertible into common stock, or other securities (subject to certain exceptions) at a value below the then-existing exercise price of the warrants. Although by their express terms, these warrants are not subject to potential cash settlement, due to the nature of the anti-dilution provisions, they are classified as derivative liabilities and reported, at each balance sheet date, at estimated fair value determined using a trinomial pricing model. As of September 30, 2015, the exercise price of these warrants is $0.19 per share. Changes in the estimated fair value of warrants classified as derivative liabilities are reported in the accompanying Consolidated Statement of Operations as the “Change in fair value of common stock warrants.” During the three months ended September 30, 2015 and 2014, holders of the February 2011 warrants exercised warrants to purchase 716,704 and 2,500 shares of common stock, respectively, for total proceeds of $136,000 and $3,000, respectively. During the nine months ended September 30, 2015 and 2014, holders of the February 2011 warrants exercised warrants to purchase 716,704 and 284,850 shares of common stock, respectively, for total proceeds of $136,000 and $426,000 , respectively.

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Liabilities [Abstract]
Fair value of loan	$ 25,000	$ 22,200
Long-Term Debt	25,000	20,302
Recurring [Member]
Assets [Abstract]
Fair Value	46,533	44,936
Recurring [Member] \| Level 1 [Member]
Assets [Abstract]
Fair Value	46,533	44,936
Recurring [Member] \| Level 2 [Member]
Assets [Abstract]
Fair Value	0	0
Recurring [Member] \| Level 3 [Member]
Assets [Abstract]
Fair Value	0	0
Recurring [Member] \| Cash and cash equivalents [Member]
Assets [Abstract]
Fair Value	46,308	44,711
Recurring [Member] \| Cash and cash equivalents [Member] \| Level 1 [Member]
Assets [Abstract]
Fair Value	46,308	44,711
Recurring [Member] \| Cash and cash equivalents [Member] \| Level 2 [Member]
Assets [Abstract]
Fair Value	0	0
Recurring [Member] \| Cash and cash equivalents [Member] \| Level 3 [Member]
Assets [Abstract]
Fair Value	0	0
Recurring [Member] \| Certificate of Deposit [Member]
Assets [Abstract]
Fair Value	225	225
Recurring [Member] \| Certificate of Deposit [Member] \| Level 1 [Member]
Assets [Abstract]
Fair Value	225	225
Recurring [Member] \| Certificate of Deposit [Member] \| Level 2 [Member]
Assets [Abstract]
Fair Value	0	0
Recurring [Member] \| Certificate of Deposit [Member] \| Level 3 [Member]
Assets [Abstract]
Fair Value	0	0
Recurring [Member] \| Common Stock Warrant Liability [Member]
Liabilities [Abstract]
Fair Value	497	1,258
Recurring [Member] \| Common Stock Warrant Liability [Member] \| Level 1 [Member]
Liabilities [Abstract]
Fair Value	0	0
Recurring [Member] \| Common Stock Warrant Liability [Member] \| Level 2 [Member]
Liabilities [Abstract]
Fair Value	0	0
Recurring [Member] \| Common Stock Warrant Liability [Member] \| Level 3 [Member]
Liabilities [Abstract]
Fair Value	$ 497	$ 1,258

Fair Value of Financial Instruments, Level 3 Rollforward (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Fair value measurements of common stock warrants using significant unobservable inputs (level 3) [Roll Forward]
Balance at beginning of period	$ 1,258
Balance at end of period	497
Level 3 [Member]
Fair value measurements of common stock warrants using significant unobservable inputs (level 3) [Roll Forward]
Balance at beginning of period	1,258	$ 5,425
Exercise of warrants	(184)	(377)
Change in fair value of common stock warrant liability	(577)	(1,999)
Balance at end of period	$ 497	$ 3,049

Fair Value of Financial Instruments, Significant Unobservable input assumptions of Level 3 valuations (Details) - Level 3 [Member]	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Significant Unobservable Input Assumptions of Level 3 Valuations [Abstract]
Historical volatility	99.00%
Expected term	4 months 24 days
Risk-free interest rate	0.05%
Minimum [Member]
Significant Unobservable Input Assumptions of Level 3 Valuations [Abstract]
Historical volatility		55.00%
Expected term		1 month 6 days
Risk-free interest rate		0.03%
Maximum [Member]
Significant Unobservable Input Assumptions of Level 3 Valuations [Abstract]
Historical volatility		84.00%
Expected term		1 year 1 month 6 days
Risk-free interest rate		0.31%