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Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2017	Oct. 25, 2017
Document Information [Line Items]
Entity Registrant Name	HERON THERAPEUTICS, INC. /DE/
Entity Central Index Key	0000818033
Trading Symbol	hrtx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		54,504,647
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 65,524	$ 13,414
Short-term investments	8,492	37,724
Accounts receivable, net	28,851	1,960
Inventory	5,169	5,340
Prepaid expenses and other current assets	4,554	3,705
Total current assets	112,590	62,143
Property and equipment, net	5,343	5,076
Other assets	263	263
Total assets	118,196	67,482
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Accounts payable	5,337	6,814
Accrued clinical liabilities	15,517	13,207
Accrued payroll and employee liabilities	7,850	8,414
Other accrued liabilities	15,398	6,288
Deferred revenue	5,560	1,099
Convertible notes payable to related parties, net of discount	3,481	2,911
Total current liabilities	53,143	38,733
Promissory note payable to related party	25,000	50,000
Total liabilities	78,143	88,733
Stockholders’ equity (deficit):
Common stock	546	394
Additional paid-in capital	760,472	564,343
Accumulated other comprehensive loss		(17)
Accumulated deficit	(720,965)	(585,971)
Total stockholders’ equity (deficit)	40,053	(21,251)
Total liabilities and stockholders’ equity (deficit)	$ 118,196	$ 67,482

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Net product sales	$ 8,572		$ 20,714
Operating expenses:
Cost of product sales	1,051		3,250
Research and development	28,844	30,242	90,825	73,620
General and administrative	6,462	5,333	19,389	15,474
Sales and marketing	13,529	12,159	39,918	35,018
Total operating expenses	49,886	47,734	153,382	124,112
Loss from operations	(41,314)	(47,734)	(132,668)	(124,112)
Interest expense, net	(552)	(775)	(2,326)	(1,068)
Net loss	(41,866)	(48,509)	(134,994)	(125,180)
Other comprehensive income (loss):
Unrealized gains (losses) on short-term investments		(16)	11	23
Comprehensive loss	$ (41,866)	$ (48,525)	$ (134,983)	$ (125,157)
Basic and diluted net loss per share (in dollars per share)	$ (0.77)	$ (1.24)	$ (2.55)	$ (3.34)
Shares used in computing basic and diluted net loss per share (in shares)	54,176	39,113	52,846	37,470

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities:
Net loss	$ (134,994)	$ (125,180)
Adjustments to reconcile net loss to net cash used for operating activities:
Stock-based compensation expense	23,647	18,697
Depreciation and amortization	1,146	793
Amortization of debt discount	570	510
Gain on disposal of property and equipment	(7)
(Accretion of discount) amortization of premium on short-term investments	(259)	219
Change in operating assets and liabilities:
Accounts receivable	(26,891)
Prepaid expenses and other current assets	(849)	428
Inventory	171	(1,983)
Accounts payable	(1,477)	2,790
Accrued clinical liabilities	2,310	4,608
Accrued payroll and employee liabilities	(564)	3,813
Deferred revenue	4,461
Other accrued liabilities	9,585	(271)
Net cash used for operating activities	(123,151)	(95,576)
Investing activities:
Purchases of short-term investments	(93,776)	(43,318)
Maturities and sales of short-term investments	123,284	55,829
Purchases of property and equipment	(1,419)	(2,446)
Proceeds from the sale of property and equipment	13
Net cash provided by investing activities	28,102	10,065
Financing activities:
Net proceeds from sale of common stock	163,747
Proceeds from issuance of promissory note payable		50,000
Repayment of promissory note payable	(25,000)
Proceeds from purchases under the Employee Stock Purchase Plan	576	251
Proceeds from stock option exercises	7,836	5,720
Net cash provided by financing activities	147,159	55,971
Net increase (decrease) in cash and cash equivalents	52,110	(29,540)
Cash and cash equivalents at beginning of year	13,414	75,180
Cash and cash equivalents at end of period	65,524	45,640
Supplemental disclosure of cash flow information:
Interest paid	$ 2,289	$ 622

Note 1 - Business

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

Business

Overview

We are

a commercial-stage biotechnology company focused on improving the lives of patients by developing best-in-class treatments that address some of the most important unmet patient needs. We are developing novel, patient-focused solutions that apply our innovative science and technologies to already approved pharmacological agents for patients suffering from cancer or pain.

August 9, 2016,

our

first

commercial product, SUSTOL

(granisetron) extended-release injection (“SUSTOL”), was approved by the U.S. Food and Drug Administration (“FDA”). We developed SUSTOL for the prevention of chemotherapy-induced nausea and vomiting (“CINV”). SUSTOL is indicated, in combination with other antiemetics, in adults for the prevention of acute and delayed nausea and vomiting associated with initial and repeat courses of moderately emetogenic chemotherapy or anthracycline and cyclophosphamide combination chemotherapy regimens. We commenced commercial sales of SUSTOL in

October 2016.

We have

two

investigational pharmaceutical products for patients suffering from cancer or postoperative pain.

CINVANTI™

(HTX-

019

) (“CINVANTI”), an intravenous formulation of the neurokinin-

receptor antagonist aprepitant, has been developed for the prevention of CINV as an adjunct to other antiemetic agents. We submitted a New Drug Application (“NDA”) with the FDA for CINVANTI. Our NDA is pending review with the FDA and has been assigned a Prescription Drug User Fee Act goal date of

November 12, 2017.

HTX-

011

is a long-acting formulation of the local anesthetic bupivacaine in a fixed-dose combination with the anti-inflammatory meloxicam for the

prevention of postoperative pain. By delivering sustained levels of both a potent anesthetic and an anti-inflammatory agent directly to the site of tissue injury, HTX-

011

was designed to provide superior pain relief while potentially reducing the need for systemically administered pain medications such as opioids, which carry the risk of harmful side effects, abuse and addiction. The Phase

development program for HTX-

011

was designed to target the many patients undergoing a wide range of surgeries who experience significant postoperative pain. Following an End-of-Phase

meeting with the FDA, we initiated our Phase

program, which we anticipate completing in the

first

half of

2018.

We expect to file an NDA for HTX-

011

2018.

We have been granted Fast Track designation for HTX-

011

by the FDA for local administration into the surgical site to reduce postoperative pain and the need for opioid analgesics for

hours. Fast Track designation is intended to facilitate the development and expedite the review of new therapies to treat serious conditions with unmet medical needs by providing sponsors with the opportunity for frequent interactions with the FDA.

The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. We have incurred signifi

cant operating losses and negative cash flows from operations. As of

September 30, 2017,

our accumulated deficit was

$721.0

million, and we had

$74.0

million in cash, cash equivalents and short-term investments. Our capital requirements going forward will depend on numerous factors, including, but

not

limited to: the degree of commercial success of SUSTOL; the scope, rate of progress, results and costs of preclinical testing and clinical trials; the timing and cost to manufacture our products; an approval decision by the FDA with respect to CINVANTI; the timing and costs associated with the commercial launch of CINVANTI, if approved; the degree of commercial success of CINVANTI, if approved; the number and characteristics of product development programs we pursue and the pace of each program, including the timing of clinical trials; the time, cost and outcome involved in seeking other regulatory approvals; scientific progress in our research and development programs; the magnitude and scope of our research and development programs; our ability to establish and maintain strategic collaborations or partnerships for research, development, clinical testing, manufacturing and marketing of our product candidates; the cost and timing of establishing sales, marketing and distribution capabilities if we commercialize products independently; the cost of establishing clinical and commercial supplies of our product candidates and any products that we

may

develop; and general market conditions. We expect to satisfy our future cash needs through public or private equity offerings, debt financings, strategic collaborations and licensing arrangements, or other sources of financing. We cannot be certain that additional funding will be available to us on acceptable terms, or at all. Our ability to obtain new financing

may

be constrained by our failure to achieve significant business objectives, covenants applicable to our Senior Secured Convertible Notes (the “Convertible Notes”) and Subordinated Secured Promissory Note (the “Promissory Note”), and numerous other factors. These factors, among others, raise substantial doubt about our ability to continue as a going concern within

one

year from the date this Quarterly Report on Form

-Q is filed with the U.S. Securities and Exchange Commission (“SEC”). The accompanying unaudited condensed consolidated financial statements do

not

include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should we be unable to continue as a going concern.

Note 3 - Accounting Policies

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Significant Accounting Policies [Text Block]

3 .	Accounting Policies

Principles of Consolidation

The accompanying

unaudited condensed consolidated financial statements include the accounts of Heron Therapeutics, Inc. and its wholly owned subsidiary, Heron Therapeutics, B.V., which was organized in the Netherlands in

March 2015.

Heron Therapeutics, B.V. has

operations and

material assets or liabilities, and there have been

significant transactions related to Heron Therapeutics, B.V. since its inception.

Use of Estimates

The preparation of financial statements in conformity with

GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Our critical accounting policies that involve significant judgment and estimates include revenue recognition, inventory, accrued clinical liabilities, income taxes and stock-based compensation. Actual results could differ materially from those estimates.

Cash, Cash Equivalents and Short-Term Investments

Cash and cash equivalents consist of cash and highly liquid investments with original maturities from purchase date of

three

months or less.

Short-term investments consist of securities with

contractual maturities of

one

year or less. We have classified our short-term investments as available-for-sale securities in the accompanying unaudited condensed consolidated financial statements. Available-for-sale securities are stated at fair market value, with unrealized gains and losses reported in other comprehensive loss and realized gains and losses included in interest expense, net. The cost of securities sold is based on the specific-identification method. Interest and dividends on securities classified as available-for-sale are included in interest income.

The following is a summary of our available-for-sale securities (in thousands):

	September 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
United States commercial paper	$	4,493	$	—	$	—	$	4,493
Foreign commercial paper		3,999		—		—		3,999
Total	$	8,492	$	—	$	—	$	8,492

	December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
United States corporate debt	$	12,048	$	—	$	(9	)	$	12,039
Foreign corporate debt		14,065		—		(8	)		14,057
United States commercial paper		8,635		—		—			8,635
Foreign commercial paper		2,993		—		—			2,993
Total	$	37,741	$	—	$	(17	)	$	37,724

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. We regularly monitor and evaluate the realizable value of our marketable securities. We did

not

recognize impairment losses for

any of the

three

and

nine

months ended

September

30,

2017

and

2016.

Realized gains and losses associated with our investments, if any, are reported in the statement of comprehensive loss. There were

realized gains or losses for any of the

three

and

nine

months ended

September 30, 2017

and

2016.

Our bank

and investment accounts have been placed under control agreements in accordance with the Convertible Notes and the

Promissory Note (see Note

Concentration of Risk

Cash, cash equivalents and short-term investments are financial instruments that potentially subject us to concentrations of credit risk. We deposit our cash in financial institutions. At times, such deposits

may

be in excess of insured limits. We

may

also invest our excess cash in money market funds,

U.S. government and agencies, corporate debt securities and commercial paper. We have established guidelines relative to our diversification of our cash investments and their maturities in an effort to maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates.

Sales

of SUSTOL to

two

customers accounted for

10%

or more of our net revenues for the

nine

months ended

September 30, 2017.

The loss of either of these customers could materially and adversely affect our business, results of operations, financial condition and cash flows.

Inventory

Inventory is

stated at the lower of cost or estimated net realizable value, on a

first

-in,

first

-out, or FIFO, basis. We periodically analyze our inventory levels, and write down inventory that has become obsolete, inventory that has a cost basis in excess of its estimated realizable value and inventory quantities that are in excess of expected sales requirements as cost of product sales. The determination of whether inventory costs will be realizable requires estimates by management. If actual market conditions are less favorable than projected by management, additional write-downs of inventory

may

be required, which would be recorded as a cost of product sales.

As of

September 30, 2017,

inventory totaled

$5.2

million, which consisted of raw materials of

$1.4

million, work in process of

$1.3

million and finished goods of

$2.5

million. For the

three

and

nine

months ended

September 30, 2017,

we recognized cost of product sales of

$1.1

million and

$3.3

million, respectively, for sales of SUSTOL, which primarily included raw materials, labor and overhead related to the manufacturing of SUSTOL, as well as shipping and distribution costs. In addition, cost of product sales included a

one

-time charge of

$0.9

million resulting from the write-off of short-dated inventory in

March 2017.

Revenue Recognition

Product Sales

SUSTOL is distributed in the U.S. through a limited number of specialty distributors (“Customers”) that resell SUSTOL to healthcare providers, the end users of SUSTOL. Product sales are recorded net of sales allowances and estimated rebates, chargebacks, distributor fees, and other deductions.

Product sales are recognized as revenue when there is persuasive evidence that an arrangement exists, delivery has occurred and title has passed, the price is fixed or determinable and we are reasonably assured of collecting the resulting receivable. Product sales are recorded net of sales allowances and estimated rebates

, chargebacks, distributor fees and other deductions. At this point in the SUSTOL commercial launch, we do

not

yet have sufficient historical data regarding the

third

-party payor mix and resulting rebates related to shipments of SUSTOL to our Customers. In addition, we do

not

currently have the data necessary to provide sufficient visibility into the ultimate utilization of SUSTOL, which inhibits our ability to determine a reasonable estimate of potential returns. As a result, we are

not

yet able to make reliable estimates necessary to meet certain of the key recognition criteria to recognize product sales as revenue with respect to shipments of SUSTOL to our Customers. Accordingly, revenue related to shipments to our Customers is deferred, except to the extent that our Customers have resold SUSTOL to healthcare providers (sell-through approach). As of

September 30, 2017,

product sales of

$5.6

million to our Customers have been deferred and are recorded as deferred revenue on our unaudited condensed consolidated balance sheet.

In the

fourth

quarter, we expect to have sufficient historical data regarding the

third

-party payor mix and resulting rebates related to shipments of SUSTOL to our Customers so as to begin recognizing SUSTOL revenue,

net of estimated allowances for rebates, returns and chargebacks at the point of sale to our Customers (sell-in approach).

Product Sales Allowances

We recognize product sales allowances as a reduction of product sales in the same period the related revenue is recognized. Product sales allowances are based on amounts owed or to be claimed on the related sales. These estimates take into consideration the terms of our agreements with Customers, historical product returns, rebates or discounts taken, the shelf life of the product, and specific known market events, such as competitive pricing and new product introductions. If actual future results vary from our estimates, we

may

need to adjust these estimates, which could have an effect on product sales and earnings in the period of adjustment. Our product sales allowances include:

●

Product Returns — We allow our Customers to return product for credit

months after its product expiration date. As such, there

may

be a significant period of time between the time the product is shipped and the time the credit is issued on returned product.

●

Distributor Fees — We offer contractually determined discounts to our Customers. These discounts are paid on a quarterly basis within

two

months after the quarter in which product was shipped.

●

Group Purchasing Organization (“GPO”) Discounts and Rebates — We offer cash discounts to GPO members. These discounts are taken when the GPO members purchase SUSTOL from our Customers, who then charge back to us the discount amount. Additionally, we offer volume and contract-tier rebates to GPO members. Rebates are based on actual purchase levels during the quarterly rebate purchase period.

●

GPO Administrative Fees — We pay administrative fees to GPO’s for services and access to data. These fees are based on contracted terms and are paid after the quarter in which the product was purchased by the GPO’s members.

●

Medicaid Rebates — We participate in Medicaid rebate programs, which provide assistance to certain low-income patients based on each individual state’s guidelines regarding eligibility and services. Under the Medicaid rebate programs, we pay a rebate to each participating state, generally within

three

months after the quarter in which SUSTOL was sold.

We believe our estimated allowance for product returns requires a high degree of judgment and is subject to change based on our experience and certain quantitative and qualitative factors. We believe our estimated allowances for distributor fees, GPO discounts, rebates and administrative fees, and Medicaid rebates do

not

require a high degree of judgement because the amounts are settled within a relatively short period of time.

Our product sales allowances and related accruals are evaluated each reporting period and adjusted when trends or significant events indicate that a change in estimate is appropriate. Changes in sales allowance estimates could materially affect our results of operations and financial position.

The following provides a summary of activity with respect to our accrued distributor fees, rebates and chargebacks and product returns for the

nine

months ended

September 30, 2017,

which are included in other accrued liabilities on the unaudited consolida

ted balance sheets (in thousands):

	Product Returns			Distributor Fees			GPO Fees, Rebates and Chargebacks			Total

Balance at December 31, 2016	$	49		$	72		$	221		$	342
Provision		291			1,328			10,049			11,668
Payments/credits		(1	)		(816	)		(5,005	)		(5,822	)
Balance at September 30, 2017	$	339		$	584		$	5,265		$	6,188

Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources.

Unrealized gains and losses on available-for-sale securities are included in other comprehensive loss and represent the difference between our net loss and comprehensive loss for all periods presented.

Earnings per Share

Basic earnings per share (“EPS”) is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideratio

n of common share equivalents. Diluted EPS is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, warrants and shares of common stock underlying Convertible Notes are considered to be common stock equivalents and are included in the calculation of diluted EPS only when their effect is dilutive.

Because we have incurred a net loss for

all periods presented in the unaudited condensed consolidated statements of comprehensive loss, stock options, warrants and shares of common stock underlying Convertible Notes are

not

included in the computation of net loss per share because their effect would be anti-dilutive. The following table includes the number of stock options, warrants and shares of common stock underlying Convertible Notes

not

included in the computation as of the dates shown below (in thousands):

	As of September 30 ,
	2017		2016

Stock options outstanding		11,198		8,517
Warrants outstanding		620		600
Shares of c ommon stock underlying Convertible Notes outstanding		7,865		7,410

Recent Accounting Pronouncements

Recently Adopted

March 2016

, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2016

09,

Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting

(“ASU

2016

09”

). ASU

2016

addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. We adopted the provisions of ASU

2016

in the

first

quarter of

2017.

We have elected to continue to estimate forfeitures based on the estimated number of awards expected to vest. In addition, the adoption of ASU

2016

will result in the recognition of

$3.6

million of previously unrecognized excess tax benefits in deferred tax assets, fully offset by a valuation allowance. All tax-related cash flows resulting from stock-based compensation, including the excess tax benefits related to the settlement of stock-based awards, will be classified as cash flows from operating activities on our consolidated statements of cash flows. The adoption of ASU

2016

did

not

have a material impact on our results of operations or financial condition. In

July 2015,

FASB issued ASU

No.

2015

11,

Inventory (Topic

330

)

(“ASU

2015

11”

). ASU

2015

requires entities to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predicable costs of completion, disposal and transportation. Subsequent measurements are unchanged for inventory measured using LIFO or the retail inventory method. We adopted the provisions of ASU

2015

in the

first

quarter of

2017,

which did

not

have a material impact on our results of operations or financial condition.

Not

Yet Adopted

May 2017,

FASB issued ASU

No.

2017

09,

Compensatio

n – Stock Compensation (Topic

718

cope of Modification Accounting

(“ASU

2017

09”

The amendments in ASU

2017

provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic

718.

The amendments in ASU

2017

are effective for all entities for annual periods, and interim periods within those annual periods, beginning after

December

15,

2017.

Early adoption is permitted, including adoption in any interim period, for (

) public business entities for reporting periods for which financial statements have

not

yet been issued and (

) all other entities for reporting periods for which financial statements have

not

yet been made available for issuance. We plan to adopt the provisions of ASU

2017

in the

first

quarter of

2018.

We do

not

expect the adoption of ASU

2017

to have a material impact on our results of operations or financial condition.

February 2016,

FASB issued ASU

No.

2016

02,

Leases

(“ASU

2016

02”

). ASU

2016

requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than

months. In addition, ASU

2016

requires both lessees and lessors to disclose certain key information about lease transactions. ASU

2016

is effective for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. We plan to adopt the provisions of ASU

2016

in the

first

quarter of

2019,

and we are currently evaluating the impact on our results of operations and financial condition.

May 2014,

FASB issued ASU

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

)

(“ASU

2014

09”

). ASU

2014

is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU

2014

is effective for fiscal years beginning after

December 15, 2017,

including interim periods within those fiscal years. The provisions of ASU

2014

allow for either a full retrospective or a modified retrospective adoption approach. We plan to adopt the provisions of ASU

2014

in the

first

quarter of

2018

using the modified retrospective approach. We have performed a review of ASU

2014

compared to our current accounting policies and we are currently reviewing our customer contracts. Although our review of our customer contracts is

not

complete, we expect the adoption of ASU

2014

to have a material impact on our consolidated financial statements and related disclosures. Specifically, as disclosed above in our revenue recognition policy, we recognize revenue using the sell-through approach through

September 30, 2017.

Under ASU

2014

09,

we will be required to estimate our sales allowances at the time of sale, resulting in earlier recognition of revenue. During the

second

half of

2017,

we plan to finalize our review of product revenues to determine the impact that ASU

2014

may

have on our results of operations, financial position and related disclosures.

Note 4 - Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) 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 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, is as follows:

●

Level

— Quoted prices in active markets for identical assets or liabilities.

●

Level

— Inputs other than Level

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

— Unobservable inputs that are supported by little or

market activity and that are significant to the fair value of the assets or liabilities.

measure the following financial assets at fair value on a recurring basis. The fair values of these financial assets at

September 30, 2017

and

December 31, 2016

were as follows (in thousands):

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
	Balance at		for Identical		Observable		Unobservable
	September 30 ,		Assets		Inputs		Inputs
	201 7		(Level 1)		(Level 2)		(Level 3)
M oney market funds	$	62,512	$	62,512	$	—	$	—
United States commercial paper		4,493		—		4,493		—
Foreign commercial paper		3,999		—		3,999		—
Total	$	71,004	$	62,512	$	8,492	$	—

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
	Balance at		for Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	201 6		(Level 1)		(Level 2)		(Level 3)
M oney market funds	$	11,493	$	11,493	$	—	$	—
United States corporate debt securities		12,039		—		12,039		—
Foreign corporate debt securities		14,057		—		14,057		—
United States commercial paper		8,635		—		8,635		—
Foreign commercial paper		2,993		—		2,993		—
Total	$	49,217	$	11,493	$	37,724	$	—

As of

September 30, 2017,

short-term investments included

$8.5

million of available-for-sale securities with contractual maturities of

one

year or less. As of

December 31, 2016,

short-term investments included

$37.7

million of available-for-sale securities with contractual maturities of

one

year or less. The money market funds as of

September 30, 2017

and

December 31, 2016

are included in cash and cash equivalents on the unaudited condensed consolidated balance sheet.

A company

may

elect to use fair value to measure accounts and loans receivable, available-for-sale and held-to-maturity securities, equity method investments, accounts payable, guarantees and issued debt. Other eligible items include firm commitments for financial instruments that otherwise would

not

be recognized at inception and non-cash warranty obligations where a warrantor is permitted to pay a

third

party to provide the warranty goods or services. If the use of fair value is elected, any upfront costs and fees related to the item such as debt issuance costs must be recognized in earnings and cannot be deferred. The fair value election is irrevocable and generally made on an instrument-by-instrument basis, even if a company has similar instruments that it elects

not

to measure based on fair value. Unrealized gains and losses on existing items for which fair value has been elected are reported as a cumulative adjustment to beginning retained earnings and any changes in fair value are recognized in earnings. We have elected to

not

apply the fair value option to our financial assets and liabilities.

We consider the carrying amount of cash and cash equivalents, receivables,

inventory, prepaid expenses and other current assets, accounts payable and accrued liabilities to be representative of their respective fair values because of the short-term nature of those 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

Note 6 - Secured Notes to Related Party	9 Months Ended
Note 6 - Secured Notes to Related Party	Sep. 30, 2017
Notes to Financial Statements
Debt Disclosure [Text Block]	6 . Secured Notes to Related Party Convertible Notes In April 2011, we entered into a securities purchase agreement for a private placement of up to $4.5 million in Convertible Notes with certain investors, including Tang Capital Partners, LP (“TCP”). TCP is controlled by Tang Capital Management, LLC (“TCM”). The manager of TCM is Kevin C. Tang, who served as a director at the time and currently serves as the Chairman of our Board of Directors. The terms of the Convertible Notes were determined by our independent directors to be no less favorable than terms that would be obtained in an arm’s length financing transaction. We received a total of $4.3 million, net of issuance costs, from the issuance of these Convertible Notes. The Convertible Notes are secured by substantially all of our assets, including placing our bank and investment accounts under a control agreement. The Convertible Notes bear interest at 6% per annum, payable quarterly in cash or in additional principal amount of Convertible Notes, at the election of the purchasers. The Converti ble Notes mature on May 2, 2021; however, the holders of the Convertible Notes may require prepayment of the Convertible Notes at any time, at each holder’s option. The Convertible Notes are convertible into shares of our common stock at a rate of 1,250 shares for every $1,000 of outstanding principal due under the Convertible Notes. There is no right to convert the Convertible Notes to the extent that, after giving effect to such conversion, the holder would beneficially own in excess of 9.99% of our outstanding common stock. Each holder of the Convertible Notes can increase or decrease this beneficial ownership conversion limit by written notice to us, which will not be effective until 61 days after delivery of the notice. As of September 30, 2017, we were in compliance with all covenants under the Convertible Notes. Upon the occurrence of an event of default under the Convertible Notes, the holders of the Convertible Notes have the right to require us to redeem all or a portion of their Convertible Notes. In 2011, we filed a registration statement with the SEC to register for resale 3.5 million shares underlying the Convertible Notes. The registration statement was declared effective on July 29, 2011. The Convertible Note holders have agreed to waive their right to require us to maintain the effectiveness of the registration statement and to register the additional shares underlying the Convertible Notes until they provide notice otherwise. The Convertible Notes contain an embedded conversion feature that was in-the-money on the issuance dates. Based on an effective fixed conversion rate of 1,250 shares for every $1,000 of principal and accrued interest due under the Convertible Notes, the total conversion benefit at issuance exceeded the loan proceeds. Therefore, a debt discount was recorded in an amount equal to the face value of the Convertible Notes on the issuance dates and we began amortizing the resultant debt discount over the respective 10 - year term of the Convertible Notes. During the nine months ended September 30, 2017, accrued interest of $0.3 million was paid-in-kind and rolled into the Convertible Note principal balance, which resulted in an additional debt discount of $0.3 million. For the three months ended September 30, 2017 and 2016, interest expense relating to the stated rate was $0.1 million and $0.1 million, respectively, and interest expense relating to the amortization of the debt discount was $0.2 million and $0.2 million, respectively. For the nine months ended September 30, 2017 and 2016, interest expense relating to the stated rate was $ 0.3 million for each period, and interest expense relating to the amortization of the debt discount was $0.6 million and $0.5 million, respectively. As of September 30, 2017, the carrying value of the Convertible Notes was $3.5 million, which is comprised of the $6.3 million principal amount of the Convertible Notes outstanding, less debt discount of $2.8 million. At September 30, 2017, the Convertible Notes were convertible into 7.9 million shares of our common stock. Promissory Note In August 2016, we entered into the Promissory Note with TCP whereby TCP agreed to lend us up to $100.0 million. The Promissory Note has a two -year term and bears interest of 8% per annum. The first close of $50.0 million occurred on August 5, 2016. The second close of an additional $50.0 million was subject to the achievement of a corporate milestone. The additional $50.0 million was not drawn down due to the expiration of the corporate milestone. There are no fees, no warrants and no equity conversion feature associated with this transaction. The Promissory Note is secured by a second -priority lien on substantially all of our assets. TCP is controlled by TCM. The manager of TCM is Kevin C. Tang, who serves as the Chairman of our Board of Directors. The terms of the Promissory Note were determined by our independent directors to be no less favorable than terms that would be obtained in an arm’s length financing transaction. For the three and nine months ended September 30, 2017, interest expense was $0.5 million and $2.3 million, respectively, compared to $ 0.6 million for both the three and nine months ended September 30, 2016. As of September 30, 2017, the outstanding principal amount of the Promissory Note was $25.0 million, as we paid $25.0 million towards the outstanding principal amount during the second quarter of 2017.

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The accompanying

March 2015.

Heron Therapeutics, B.V. has

operations and

material assets or liabilities, and there have been

significant transactions related to Heron Therapeutics, B.V. since its inception.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with

Cash, Cash Equivalents, and Short-Term Investments [Policy Text Block]

Cash, Cash Equivalents and Short-Term Investments

Cash and cash equivalents consist of cash and highly liquid investments with original maturities from purchase date of

three

months or less.

Short-term investments consist of securities with

contractual maturities of

one

The following is a summary of our available-for-sale securities (in thousands):

	September 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
United States commercial paper	$	4,493	$	—	$	—	$	4,493
Foreign commercial paper		3,999		—		—		3,999
Total	$	8,492	$	—	$	—	$	8,492

	December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
United States corporate debt	$	12,048	$	—	$	(9	)	$	12,039
Foreign corporate debt		14,065		—		(8	)		14,057
United States commercial paper		8,635		—		—			8,635
Foreign commercial paper		2,993		—		—			2,993
Total	$	37,741	$	—	$	(17	)	$	37,724

not

recognize impairment losses for

any of the

three

and

nine

months ended

September

30,

2017

and

2016.

Realized gains and losses associated with our investments, if any, are reported in the statement of comprehensive loss. There were

realized gains or losses for any of the

three

and

nine

months ended

September 30, 2017

and

2016.

Our bank

and investment accounts have been placed under control agreements in accordance with the Convertible Notes and the

Promissory Note (see Note

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Risk

may

be in excess of insured limits. We

may

also invest our excess cash in money market funds,

Sales

of SUSTOL to

two

customers accounted for

10%

or more of our net revenues for the

nine

months ended

September 30, 2017.

The loss of either of these customers could materially and adversely affect our business, results of operations, financial condition and cash flows.

Inventory, Policy [Policy Text Block]

Inventory

Inventory is

stated at the lower of cost or estimated net realizable value, on a

first

-in,

first

may

be required, which would be recorded as a cost of product sales.

As of

September 30, 2017,

inventory totaled

$5.2

million, which consisted of raw materials of

$1.4

million, work in process of

$1.3

million and finished goods of

$2.5

million. For the

three

and

nine

months ended

September 30, 2017,

we recognized cost of product sales of

$1.1

million and

$3.3

one

-time charge of

$0.9

million resulting from the write-off of short-dated inventory in

March 2017.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Product Sales

, chargebacks, distributor fees and other deductions. At this point in the SUSTOL commercial launch, we do

not

yet have sufficient historical data regarding the

third

-party payor mix and resulting rebates related to shipments of SUSTOL to our Customers. In addition, we do

not

September 30, 2017,

product sales of

$5.6

million to our Customers have been deferred and are recorded as deferred revenue on our unaudited condensed consolidated balance sheet.

In the

fourth

quarter, we expect to have sufficient historical data regarding the

third

-party payor mix and resulting rebates related to shipments of SUSTOL to our Customers so as to begin recognizing SUSTOL revenue,

net of estimated allowances for rebates, returns and chargebacks at the point of sale to our Customers (sell-in approach).

Product Sales Allowances

may

need to adjust these estimates, which could have an effect on product sales and earnings in the period of adjustment. Our product sales allowances include:

●

Product Returns — We allow our Customers to return product for credit

months after its product expiration date. As such, there

may

be a significant period of time between the time the product is shipped and the time the credit is issued on returned product.

●

Distributor Fees — We offer contractually determined discounts to our Customers. These discounts are paid on a quarterly basis within

two

months after the quarter in which product was shipped.

●

three

months after the quarter in which SUSTOL was sold.

not

require a high degree of judgement because the amounts are settled within a relatively short period of time.

The following provides a summary of activity with respect to our accrued distributor fees, rebates and chargebacks and product returns for the

nine

months ended

September 30, 2017,

which are included in other accrued liabilities on the unaudited consolida

ted balance sheets (in thousands):

	Product Returns			Distributor Fees			GPO Fees, Rebates and Chargebacks			Total

Balance at December 31, 2016	$	49		$	72		$	221		$	342
Provision		291			1,328			10,049			11,668
Payments/credits		(1	)		(816	)		(5,005	)		(5,822	)
Balance at September 30, 2017	$	339		$	584		$	5,265		$	6,188

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources.

Earnings Per Share, Policy [Policy Text Block]

Earnings per Share

Basic earnings per share (“EPS”) is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideratio

Because we have incurred a net loss for

all periods presented in the unaudited condensed consolidated statements of comprehensive loss, stock options, warrants and shares of common stock underlying Convertible Notes are

not

included in the computation as of the dates shown below (in thousands):

	As of September 30 ,
	2017		2016

Stock options outstanding		11,198		8,517
Warrants outstanding		620		600
Shares of c ommon stock underlying Convertible Notes outstanding		7,865		7,410

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Recently Adopted

March 2016

, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2016

09,

Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting

(“ASU

2016

09”

). ASU

2016

in the

first

quarter of

2017.

We have elected to continue to estimate forfeitures based on the estimated number of awards expected to vest. In addition, the adoption of ASU

2016

will result in the recognition of

$3.6

2016

did

not

have a material impact on our results of operations or financial condition. In

July 2015,

FASB issued ASU

No.

2015

11,

Inventory (Topic

330

)

(“ASU

2015

11”

). ASU

2015

in the

first

quarter of

2017,

which did

not

have a material impact on our results of operations or financial condition.

Not

Yet Adopted

May 2017,

FASB issued ASU

No.

2017

09,

Compensatio

n – Stock Compensation (Topic

718

cope of Modification Accounting

(“ASU

2017

09”

The amendments in ASU

2017

provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic

718.

The amendments in ASU

2017

are effective for all entities for annual periods, and interim periods within those annual periods, beginning after

December

15,

2017.

Early adoption is permitted, including adoption in any interim period, for (

) public business entities for reporting periods for which financial statements have

not

yet been issued and (

) all other entities for reporting periods for which financial statements have

not

yet been made available for issuance. We plan to adopt the provisions of ASU

2017

in the

first

quarter of

2018.

We do

not

expect the adoption of ASU

2017

to have a material impact on our results of operations or financial condition.

February 2016,

FASB issued ASU

No.

2016

02,

Leases

(“ASU

2016

02”

). ASU

2016

requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than

months. In addition, ASU

2016

requires both lessees and lessors to disclose certain key information about lease transactions. ASU

2016

is effective for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. We plan to adopt the provisions of ASU

2016

in the

first

quarter of

2019,

and we are currently evaluating the impact on our results of operations and financial condition.

May 2014,

FASB issued ASU

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

)

(“ASU

2014

09”

). ASU

2014

is effective for fiscal years beginning after

December 15, 2017,

including interim periods within those fiscal years. The provisions of ASU

2014

allow for either a full retrospective or a modified retrospective adoption approach. We plan to adopt the provisions of ASU

2014

in the

first

quarter of

2018

using the modified retrospective approach. We have performed a review of ASU

2014

compared to our current accounting policies and we are currently reviewing our customer contracts. Although our review of our customer contracts is

not

complete, we expect the adoption of ASU

2014

September 30, 2017.

Under ASU

2014

09,

we will be required to estimate our sales allowances at the time of sale, resulting in earlier recognition of revenue. During the

second

half of

2017,

we plan to finalize our review of product revenues to determine the impact that ASU

2014

may

have on our results of operations, financial position and related disclosures.

Note 3 - Accounting Policies (Details Textual) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Asset Impairment Charges		$ 0	$ 0	$ 0	$ 0
Available-for-sale Securities, Gross Realized Gains		0	0	0	0
Inventory, Net		5,169		5,169		$ 5,340
Inventory, Raw Materials, Net of Reserves		1,400		1,400
Inventory, Work in Process, Net of Reserves		1,300		1,300
Inventory, Finished Goods, Net of Reserves		2,500		2,500
Cost of Goods Sold		1,051		3,250
Deferred Revenue, Current		5,560		5,560		$ 1,099
Available-for-sale Securities, Gross Realized Losses		0	$ 0	0	$ 0
Accounting Standards Update 2016-09 [Member]
Deferred Tax Assets, Gross		3,600		3,600
Deferred Tax Assets, Valuation Allowance		3,600		3,600
Cost of Sales [Member]
Inventory Write-down	$ 900
SUSTOL [Member]
Cost of Goods Sold		$ 1,100		$ 3,300
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member] \| SUSTOL [Member]
Number of Major Customers				2

Note 4 - Fair Value Measurements - Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Available-for-sale securities	$ 8,492	$ 37,724
United States Commercial Paper [Member]
Available-for-sale securities	4,493	8,635
Domestic Corporate Debt Securities [Member]
Available-for-sale securities		12,039
Foreign Commercial Paper [Member]
Available-for-sale securities	3,999	2,993
Foreign Corporate Debt Securities [Member]
Available-for-sale securities		14,057
Fair Value, Measurements, Recurring [Member]
Total	71,004	49,217
Fair Value, Measurements, Recurring [Member] \| United States Commercial Paper [Member]
Available-for-sale securities	4,493	8,635
Fair Value, Measurements, Recurring [Member] \| Domestic Corporate Debt Securities [Member]
Available-for-sale securities		12,039
Fair Value, Measurements, Recurring [Member] \| Foreign Commercial Paper [Member]
Available-for-sale securities	3,999	2,993
Fair Value, Measurements, Recurring [Member] \| Foreign Corporate Debt Securities [Member]
Available-for-sale securities		14,057
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Total	62,512	11,493
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| United States Commercial Paper [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Domestic Corporate Debt Securities [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Foreign Commercial Paper [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Foreign Corporate Debt Securities [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Total	8,492	37,724
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| United States Commercial Paper [Member]
Available-for-sale securities	4,493	8,635
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Domestic Corporate Debt Securities [Member]
Available-for-sale securities		12,039
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Foreign Commercial Paper [Member]
Available-for-sale securities	3,999	2,993
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Foreign Corporate Debt Securities [Member]
Available-for-sale securities		14,057
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Total
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member] \| United States Commercial Paper [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member] \| Domestic Corporate Debt Securities [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member] \| Foreign Commercial Paper [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member] \| Foreign Corporate Debt Securities [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] \| Money Market Funds [Member]
Money market funds	62,512	11,493
Fair Value, Measurements, Recurring [Member] \| Money Market Funds [Member] \| Fair Value, Inputs, Level 1 [Member]
Money market funds	62,512	11,493
Fair Value, Measurements, Recurring [Member] \| Money Market Funds [Member] \| Fair Value, Inputs, Level 2 [Member]
Money market funds
Fair Value, Measurements, Recurring [Member] \| Money Market Funds [Member] \| Fair Value, Inputs, Level 3 [Member]
Money market funds

Note 6 - Secured Notes to Related Party (Details Textual) - USD ($)				1 Months Ended	3 Months Ended			9 Months Ended
	Aug. 05, 2016	Aug. 02, 2016	Jul. 29, 2011	Apr. 30, 2011	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Convertible Debt Issuable in Connection with Private Placement				$ 4,500,000
Proceeds from Convertible Debt				$ 4,300,000
Amortization of Debt Discount (Premium)								$ 570,000	$ 510,000
Convertible Notes Payable, Related Parties, Current					$ 3,481,000			3,481,000		$ 2,911,000
Notes Payable, Related Parties, Noncurrent					25,000,000			25,000,000		$ 50,000,000
Repayments of Long-term Debt								25,000,000
Convertible Debt [Member]
Debt Instrument, Interest Rate, Stated Percentage				6.00%
Debt Instrument Conversion Ratio Multiple of Principal				$ 1,000
Beneficial Ownership after Conversion				9.99%
Notice Period Associated with Beneficial Ownership Percentage Limitation Convertible Notes				61 days
Common Shares Registered for Resale in Connection with Convertible Notes			3,500,000
Debt Instrument, Term				10 years
Paid-in-Kind Interest								300,000
Debt Instrument, Increase (Decrease), Other, Net								300,000
Interest Expense, Debt, Excluding Amortization					100,000		$ 100,000	300,000	300,000
Amortization of Debt Discount (Premium)					200,000		200,000	600,000	500,000
Debt Instrument, Face Amount					6,300,000			6,300,000
Debt Instrument, Unamortized Discount					2,800,000			$ 2,800,000
Debt Instrument, Convertible, Number Shares of Equity Insturments								7,900,000
Convertible Debt [Member] \| Common Stock [Member]
Debt Instrument Conversion Ratio Shares				1,250
Term Loan [Member] \| Tang Capital [Member]
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Term		2 years
Debt Agreement, Maximum Borrowing Capacity		$ 100,000,000
Proceeds from Issuance of Long-term Debt	$ 50,000,000
Proceeds from Issuance of Long-term Debt, Subject to Achievement of Corporate Milestone		50,000,000
Debt Instrument, Fee Amount		$ 0
Debt Instrument, Number of Warrants		0
Debt Instrument, Convertible, Beneficial Conversion Feature		$ 0
Interest Expense					500,000		$ 600,000	$ 2,300,000	$ 600,000
Notes Payable, Related Parties, Noncurrent					$ 25,000,000			$ 25,000,000
Repayments of Long-term Debt						$ 25,000,000

Note 7 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	Jan. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2011
Proceeds from Issuance of Common Stock, Net of Issuance Costs	$ 163,700	$ 163,747
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Net		952,000
Proceeds from Stock Options Exercised		$ 7,836	$ 5,720
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 62,100
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		2 years 182 days
Private Placement 2011 [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				4,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 3.60
Common Stock [Member]
Stock Issued During Period, Shares, New Issues	14,100,000
Share Price	$ 12.20
Payments of Stock Issuance Costs	$ 8,800

Note 7 - Stockholders' Equity - Stock Option Activity (Details) - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Number of shares outstanding (in shares)	11,845
Number of shares outstanding, weighted average exercise price (in dollars per share)	$ 14.44
Number of shares outstanding, weighted average remaining contractual term (Year)	7 years 116 days	7 years 219 days
Number of shares granted (in shares)	1,218
Number of shares granted, weighted average exercise price (in dollars per share)	$ 14.45
Number of shares exercised (in shares)	(952)
Number of shares exercised, weighted average exercise price (in dollars per share)	$ 8.23
Number of shares expired and forfeited (in shares)	(913)
Number of shares expired and forfeited, weighted average exercise price (in dollars per share)	$ 19.53
Number of shares outstanding (in shares)	11,198	11,845
Number of shares outstanding, weighted average exercise price (in dollars per share)	$ 14.56	$ 14.44

Note 8 - Income Taxes	9 Months Ended
Note 8 - Income Taxes	Sep. 30, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	8 . Income Taxes Deferred income tax assets and liabilities are recognized for temporary differences between financial statements and income tax carrying values using tax rates in effect for the years such differ ences are expected to reverse. Due to uncertainties surrounding our ability to generate future taxable income and consequently realize such deferred income tax assets, a full valuation allowance has been established. We continue to maintain a full valuation allowance against our deferred tax assets as of September 30, 2017. The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will be recognized when it is more likely than not of being sustained. In 2017, we adopted ASU 2016 - 09, which resulted in the recognition of $ 3.6 million of previously unrecognized tax benefits in deferred tax assets, fully offset by a valuation allowance. The disclosures included in our 2016 Annual Report on Form 10 -K for the year ended December 31, 2016 continue to be accurate for the three and nine months ended September 30, 2017.

Note 1 - Business (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Retained Earnings (Accumulated Deficit)	$ (720,965)	$ (585,971)
Cash, Cash Equivalents, and Short-term Investments	$ 74,000

Note 3 - Accounting Policies - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Amortized cost	$ 8,492	$ 37,741
Gross unrealized gains
Gross unrealized losses		(17)
Estimated fair value	8,492	37,724
United States Commercial Paper [Member]
Amortized cost	4,493	8,635
Gross unrealized gains
Gross unrealized losses
Estimated fair value	4,493	8,635
Domestic Corporate Debt Securities [Member]
Amortized cost		12,048
Gross unrealized gains
Gross unrealized losses		(9)
Estimated fair value		12,039
Foreign Commercial Paper [Member]
Amortized cost	3,999	2,993
Gross unrealized gains
Gross unrealized losses
Estimated fair value	$ 3,999	2,993
Foreign Corporate Debt Securities [Member]
Amortized cost		14,065
Gross unrealized gains
Gross unrealized losses		(8)
Estimated fair value		$ 14,057

Note 5 - Realignment of Goals and Objectives and New Development Focus (Details Textual) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)
Restructuring and Related Cost, Expected Cost	$ 9.9	$ 9.9	$ 9.9
Restructuring Plan [Member]
Restructuring Charges		1.9	9.7
Payments for Restructuring		4.5
Restructuring Plan [Member] \| Research and Development Expense [Member]
Restructuring Charges	0.2	1.6
Restructuring Plan [Member] \| General and Administrative Expense [Member]
Restructuring Charges		0.3
Restructuring Plan [Member] \| Employee Severance [Member]
Restructuring and Related Cost, Expected Cost	6.0	6.0	6.0
Restructuring Plan [Member] \| Accelerated Non-Cash Stock Option Expense [Member]
Restructuring and Related Cost, Expected Cost	3.9	3.9	3.9
Restructuring Plan [Member] \| Employee Related Liabilities [Member]
Restructuring and Related Cost, Expected Cost Remaining	$ 0.2	$ 0.2	$ 0.2

Note 7 - Stockholders' Equity - Stock-based Compensation Expense (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
Stock-based compensation expense	$ 7,476	$ 7,511	$ 23,647	$ 18,697
Impact on basic and diluted net loss per share (in dollars per share)	$ 0.14	$ 0.19	$ 0.45	$ 0.50
Research and Development Expense [Member]
Stock-based compensation expense	$ 2,595	$ 3,946	$ 8,758	$ 8,347
General and Administrative Expense [Member]
Stock-based compensation expense	2,419	1,763	7,345	5,229
Selling and Marketing Expense [Member]
Stock-based compensation expense	$ 2,462	$ 1,802	$ 7,544	$ 5,121

Note 5 - Realignment of Goals and Objectives and New Development Focus	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Restructuring and Related Activities Disclosure [Text Block]	5. Realignment of Goals and Objectives and New Development Focus Following the approval of SUSTOL and consistent with our transition into a commercial -stage biotechnology company, we realigned our goals and objectives and refocused our development efforts to the area of postoperative pain management. On October 18, 2016, we entered into a lease agreement for new office and laboratory space in San Diego, California, which became our corporate headquarters in December 2016. On September 30, 2016, the board of directors accepted the resignations of three executive officers, and these executive officers and other employees directly affected by the realignment and refocusing were or will be provided with one -time severance payments upon termination, continued benefits for a specified period of time and outplacement assistance. We expect to incur total expenses of $9.9 million in connection with these activities, $6.0 million of which is primarily for severance, and $3.9 million of which is for non-cash, stock-based compensation expense. From September 30, 2016 through September 30, 2017 we have recognized a total expense of $9.7 million. The remaining $0.2 million relates to employees who are being retained until the fourth quarter of 2017 and is being expensed on a straight-line basis over the retention period. We expect to make the final payment resulting from the realignment of our goals and objectives and new development focus in the second quarter of 2018. As of September 30, 2017, we have paid $4.5 million of the total $6.0 million cash charges. For the three months ended September 30, 2017, total expenses related to the realignment were $0.2 million, which were included in research and development expense. For the nine months ended September 30, 2017, total expenses related to the realignment were $1.9 million, with $1.6 million included in research and development expense and $0.3 million in general and administrative expense. The expenses we expect to incur are subject to a number of assumptions, and actual results may materially differ. We may also incur other material expenses not currently contemplated due to events that may be associated with, or result from, the realignment of our goals and objectives and new development focus. We have accounted for these expenses in accordance with Accounting Standard Codification No. 420, Exit or Disposal Cost Obligations .

Note 3 - Accounting Policies - Summary of Product Sales Allowance (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)
Balance	$ 342
Provision	11,668
Payments/credits	(5,822)
Balance	6,188
Allowance for Sales Returns [Member]
Balance	49
Provision	291
Payments/credits	(1)
Balance	339
Allowance for Distributor Fees [Member]
Balance	72
Provision	1,328
Payments/credits	(816)
Balance	584
Allowance for Rebates and Chargebacks [Member]
Balance	221
Provision	10,049
Payments/credits	(5,005)
Balance	$ 5,265

Note 3 - Accounting Policies - Securities Excluded From Calculation of Diluted Earnings Per Share (Details) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Employee Stock Option [Member]
Antidilutive securities (in shares)	11,198	8,517
Warrant [Member]
Antidilutive securities (in shares)	620	600
Convertible Debt Securities [Member]
Antidilutive securities (in shares)	7,865	7,410

Note 7 - Stockholders' Equity - Stock Option Valuation Assumptions (Details) - Employee Stock Option [Member]	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Risk-free interest rate	2.00%	1.50%
Dividend yield	0.00%	0.00%
Volatility	80.20%	90.60%
Expected life (years) (Year)	6 years	6 years

Note 8 - Income Taxes (Details Textual) - Accounting Standards Update 2016-09 [Member] $ in Thousands	Sep. 30, 2017 USD ($)
Deferred Tax Assets, Gross	$ 3,600
Deferred Tax Assets, Valuation Allowance	$ 3,600