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Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2018	Apr. 25, 2018
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	Yes
Entity Common Stock, Shares Outstanding (in shares)		71,951,009
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 46,575	$ 144,583
Short-term investments	67,363	27,796
Accounts receivable, net	37,713	41,874
Inventory	19,418	10,108
Prepaid expenses and other current assets	5,494	3,702
Total current assets	176,563	228,063
Property and equipment, net	6,504	5,981
Other assets	316	263
Total assets	183,383	234,307
Current liabilities:
Accounts payable	11,458	18,769
Accrued clinical liabilities	24,934	26,920
Accrued payroll and employee liabilities	5,248	8,860
Other accrued liabilities	20,643	17,175
Deferred revenue		2,763
Promissory note payable to related party	25,000	25,000
Convertible notes payable to related parties, net of discount	3,894	3,684
Total current liabilities	91,177	103,171
Stockholders’ equity:
Common stock	650	646
Additional paid-in capital	925,745	913,955
Accumulated other comprehensive loss	(42)	(10)
Retained earnings	(834,147)	(783,455)
Total stockholders’ equity	92,206	131,136
Total liabilities and stockholders’ equity	$ 183,383	$ 234,307

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Net product sales	$ 11,567	$ 3,632
Operating expenses:
Cost of product sales	3,133	1,186
Research and development	39,561	33,384
General and administrative	7,028	6,742
Sales and marketing	13,835	11,619
Total operating expenses	63,557	52,931
Loss from operations	(51,990)	(49,299)
Other expense, net	(275)	(1,030)
Net loss	(52,265)	(50,329)
Other comprehensive loss:
Unrealized loss on short-term investments	(32)	(13)
Comprehensive loss	$ (52,297)	$ (50,342)
Basic and diluted net loss per share (in dollars per share)	$ (0.81)	$ (1)
Shares used in computing basic and diluted net loss per share (in shares)	64,724	50,530

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities:
Net loss	$ (52,265)	$ (50,329)
Adjustments to reconcile net loss to net cash used for operating activities:
Stock-based compensation expense	7,701	8,021
Depreciation and amortization	381	329
Amortization of debt discount	210	185
Loss on disposal of property and equipment		5
Accretion of discount on short-term investments	(211)	(13)
Change in operating assets and liabilities:
Accounts receivable	4,161	(8,367)
Prepaid expenses and other current assets	(1,845)	274
Inventory	(9,508)	699
Accounts payable	(7,311)	(2,337)
Accrued clinical liabilities	(1,986)	(1,983)
Accrued payroll and employee liabilities	(3,612)	(2,292)
Deferred revenue		4,136
Other accrued liabilities	2,572	1,091
Net cash used for operating activities	(61,713)	(50,581)
Investing activities:
Purchases of short-term investments	(39,388)	(69,374)
Maturities and sales of short-term investments		25,395
Purchases of property and equipment	(904)	(938)
Net cash used for investing activities	(40,292)	(44,917)
Financing activities:
Net proceeds from sale of common stock	(205)	163,747
Proceeds from stock option exercises	4,202	1,850
Net cash provided by financing activities	3,997	165,597
Net (decrease) increase in cash and cash equivalents	(98,008)	70,099
Cash and cash equivalents at beginning of year	144,583	13,414
Cash and cash equivalents at end of period	46,575	83,513
Supplemental disclosure of cash flow information:
Interest paid	500	1,000
Cumulative effect of adoption of new accounting standard	$ 1,573

Note 1 - Business	3 Months Ended
Note 1 - Business	Mar. 31, 2018
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	1. Business 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. On August 9, 2016, our first commercial product, SUSTOL ® (granisetron) extended-release injection (“SUSTOL”), was approved by the U.S. Food and Drug Administration (“FDA”). 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 (MEC) or anthracycline and cyclophosphamide (AC) combination chemotherapy regimens. SUSTOL is an extended-release, injectable 5 - HT3 receptor antagonist that utilizes Heron’s Biochronomer ® polymer-based drug delivery technology to maintain therapeutic levels of granisetron for ≥5 days. We commenced commercial sales of SUSTOL in the U.S. in October 2016. On November 9, 2017, our second commercial product, CINVANTI ® (aprepitant) injectable emulsion (“CINVANTI”), was approved by the FDA. CINVANTI, in combination with other antiemetic agents, is indicated in adults for the prevention of acute and delayed nausea and vomiting associated with initial and repeat courses of highly emetogenic cancer chemotherapy (HEC) including high-dose cisplatin and nausea and vomiting associated with initial and repeat courses of moderately emetogenic cancer chemotherapy (MEC). CINVANTI is an intravenous formulation of aprepitant, a substance P/neurokinin- 1 (“NK 1 ”) receptor antagonist. CINVANTI is the only IV formulation of an NK 1 receptor antagonist indicated for the prevention of acute and delayed nausea and vomiting associated with HEC and nausea and vomiting associated with MEC that is free of polysorbate 80 or any other synthetic surfactant. We commenced commercial sales of CINVANTI in the U.S. in January 2018. HTX- 011, which utilizes Heron’s Biochronomer ® polymer-based drug delivery technology, is an investigational, long-acting, extended-release 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 a local anti-inflammatory agent directly to the site of tissue injury, HTX- 011 was designed to deliver superior pain relief while reducing the need for systemically administered pain medications such as opioids, which carry the risk of harmful side effects, abuse and addiction. In March 2018, Heron reported positive topline results from EPOCH1 and EPOCH2, its pivotal Phase 3 studies of HTX- 011 in bunionectomy and hernia repair, respectively. All primary and key secondary endpoints were achieved in these studies. Furthermore, HTX- 011 is the only long-acting local anesthetic to demonstrate in Phase 3 studies significantly reduced pain and opioid use compared to bupivacaine solution, the current standard-of-care local anesthetic for postoperative pain control, through 72 hours. HTX- 011 was well tolerated in both studies, with a safety profile comparable to placebo and bupivacaine solution. HTX- 011 continues to be investigated in ongoing Phase 2 studies in breast augmentation and total knee arthroplasty. HTX- 011 was granted Fast Track Designation from the FDA in the fourth quarter of 2017. In the second half of 2018, Heron expects to file an NDA to the FDA for HTX- 011. We have incurred significant operating losses and negative cash flows from operations. As of March 31, 2018, our accumulated deficit was $834.1 million, and we had $113.9 million in cash, cash equivalents and short-term investments. In April 2018, we received net cash proceeds of $168.7 million from a public offering of our common stock. As of March 31, 2018, our pro-forma cash, cash equivalents and short-term investments, adjusting for the April 2018 public offering, was $282.6 million. Based on our current operating plan and projections, management believes that available cash, cash equivalents and short-term investments are sufficient to fund operations for at least one year from the date this Quarterly Report on Form 10 -Q is filed with the U.S. Securities and Exchange Commission (“SEC”).

Note 2 - Basis of Presentation	3 Months Ended
Note 2 - Basis of Presentation	Mar. 31, 2018
Notes to Financial Statements
Basis of Accounting [Text Block]	2 . Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10 -Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for other quarters or the year ending December 31, 2018. The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited financial statements as of that date, but does not include all of the information and disclosures required by GAAP. For more complete financial information, these unaudited condensed consolidated financial statements and the notes thereto should be read in conjunction with the audited financial statements included in our Annual Report on Form 10 -K for the year ended December 31, 2017, which was filed with the SEC on February 27, 2018.

Note 3 - Accounting Policies

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Significant Accounting Policies [Text Block]

. 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.

sh, Cash Equivalents and Short-t

erm Investments

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

three

months or less.

Short-term investments consist of securities with contractual maturities of greater than

three

months to

one

year. 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 other 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 short-term investments (in thousands):

	March 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. corporate debt securities	$	16,202	$	—	$	(42	)	$	16,160
U.S. commercial paper		17,402		—		—			17,402
Foreign commercial paper		33,801		—		—			33,801
Total	$	67,405	$	—	$	(42	)	$	67,363

	D ecember 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. corporate debt securities	$	13,003	$	—	$	(10	)	$	12,993
U.S. commercial paper		4,929		—		—			4,929
Foreign commercial paper		9,874		—		—			9,874
Total	$	27,806	$	—	$	(10	)	$	27,796

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 any impairment losses for each of the

three

months ended

March 31, 2018

and

2017.

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

realized gains or losses for each of the

three

months ended

March 31, 2018

and

2017.

Our bank and investment accounts have been placed under control agreements in accordance with our Senior Secured Convertible Notes (“Convertible Notes”) and our Subordinated Secured Promissory Note (“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 product sales for the

three

months ended

March 31, 2018.

Sales of CINVANTI to

three

customers accounted for

10%

or more of our net product sales for the

three

months ended

March 31, 2018.

The loss of any 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

March 31, 2018,

inventory totaled

$19.4

million, which consisted of raw materials of

$5.0

million, work in process of

$8.1

million and finished goods of

$6.3

million. As of

March 31, 2018,

total inventory included

$8.5

million related to SUSTOL and

$10.9

million related to CINVANTI. As of

December 31, 2017,

inventory totaled

$10.1

million, which consisted of raw materials of

$2.7

million, work in process of

$4.2

million and finished goods of

$3.2

million. As of

December 31, 2017,

total inventory included

$7.1

million related to SUSTOL and

$3.0

million related to CINVANTI.

For the

three

months ended

March 31, 2018,

we recognized cost of product sales of

$3.1

million for sales of SUSTOL and CINVANTI. For the

three

months ended

March 31, 2017,

we recognized

$1.2

million for sales of SUSTOL. Cost of product sales primarily included raw materials, labor and overhead related to the manufacturing of SUSTOL and CINVANTI, as well as shipping and distribution costs.

Revenue Recognition

May 2014,

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

No.

2014

09,

Revenue from Contracts with Customers

(“Topic

606”

). Topic

606

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. Topic

606

is effective for fiscal years beginning after

December 15, 2017,

including interim periods within those fiscal years. Accordingly, in the

first

quarter of

2018,

we adopted Topic

606

using the modified retrospective approach. Under this approach, incremental disclosures are provided to present each financial statement line item for

2018

under the prior standard. As a result of the adoption of Topic

606,

we recorded a cumulative adjustment to retained earnings of

$1.6

million on

January 1, 2018.

This adjustment reflects the acceleration of

$2.9

million in gross product sales less

$1.1

million in product sales allowances and

$0.2

million in cost of product sales (see Note

Comprehensive Loss

Comprehensive 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 both periods presented.

Net L

oss

per Share

Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration of common share equivalents. Diluted net loss per share 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 net loss per share only when their effect is dilutive.

Because we have incurred a net loss for both periods presented in the unaudited condensed consolidated statements of operations and 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 March 3 1 ,
	2018		2017

Stock options outstanding		12,906		11,849
Warrants outstanding		640		625
Shares of common stock underlying Convertible Notes outstanding		8,103		7,634

Recent Accounting Pronouncements

Recently Adopted

May 2017,

FASB issued ASU

No.

2017

09,

Compensation

– Stock Compensation

: Scope of Modification Accounting

(“ASU

2017

09”

The amendments in ASU

2017

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

718.

In the

first

quarter of

2018,

we adopted the provisions of ASU

2017

09,

which did

not

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

Not

Yet Adopted

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.

Note 4 - Fair Value Measurements

3 Months Ended

Mar. 31, 2018

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

— Observable inputs such as 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.

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

March 31, 2018

and

December 31, 2017

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
	March 31 ,		Assets		Inputs		Inputs
	201 8		(Level 1)		(Level 2)		(Level 3)
Money market funds	$	37,883	$	37,883	$	—	$	—
U.S. corporate debt securities		16,160		—		16,160		—
U.S. commercial paper		17,402		—		17,402		—
Foreign commercial paper		36,641		—		36,641		—
Total	$	108,086	$	37,883	$	70,203	$	—

	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 7		(Level 1)		(Level 2)		(Level 3)
Money market funds	$	91,386	$	91,386	$	—	$	—
U.S. corporate debt securities		17,520		—		17,520		—
U.S. commercial paper		39,863		—		39,863		—
Foreign commercial paper		19,854		—		19,854		—
Total	$	168,623	$	91,386	$	77,237	$	—

As of

March 31, 2018,

cash equivalents included

$2.8

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

three

months or less, and short-term investments included

$67.4

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

three

months to

one

year. As of

December 31, 2017,

cash equivalents included

$49.4

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

three

months or less, and short-term investments included

$27.8

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

three

months to

one

year. The money market funds as of

March 31, 2018

and

December 31, 2017

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

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.

Financial instruments, including cash, cash equivalents, receivables, inventory, prepaid expenses, other current assets, accounts payable and accrued expenses are carried at cost, which is considered to be representative of their respective fair values because of the short-term maturity of these instruments. Short-term available-for-sale investments are carried at fair value. Our Convertible Notes and Promissory Note outstanding at

March 31, 2018

and

December 31, 2017

not

have readily available ascertainable market values; however, the carrying values are considered to approximate their fair values.

- 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 5 - Revenue Recognition

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

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. CINVANTI is distributed in the U.S. through a limited number of specialty distributors and full line wholesalers (“Customers”) that resell CINVANTI to healthcare providers and hospitals, the end users of CINVANTI.

Adoption of Topic

606

January 1, 2018,

we adopted Topic

606

using the modified retrospective approach applied to those contracts that were

not

completed as of

January 1, 2018.

Results from reporting periods beginning after

January 1, 2018

are presented under Topic

606,

while prior period amounts are

not

adjusted and continue to be reported in accordance with our historical accounting under the FASB Accounting Standards Codification (“ASC”) Topic

605,

Revenue Recognition

(“Topic

605”

). Prior to the adoption of Topic

606,

we recognized product sales as revenue to the extent that our Customers had resold our products to end users (sell-through approach). With the adoption of Topic

606,

we recognize product sales as revenue when our products are sold to our Customers (sell-in approach). Product sales under both Topic

605

and

606

are reported net of product sales allowances, which include product returns.

Revenue is recognized in an amount that reflects the consideration that we expect to receive in exchange for our products. To determine revenue recognition for contracts with customers within the scope of Topic

606,

we performed the following

five

steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations of the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract(s); and (v) recognize revenue when (or as) we satisfy the performance obligations.

The following table shows the reconciliation of assets and liabilities disclosed in our Annual Report on Form

-K for the year ended

December 31, 2017,

as adjusted, due to the modified retrospective adoption of Topic

606

January 1, 2018 (

in thousands):

	As Reported U nder Topic 605			Effect of Change			As Adjusted U nder Topic 606

Inventory	$	10,108		$	(198	)	$	9,910
Other accrued liabilities		17,175			992			18,167
Deferred revenue		2,763			(2,763	)		—
Retained earnings		(783,455	)		1,573			(781,882	)

The following table shows the unaudited condensed consolidated financial statement line items for the

first

quarter of

2018,

as if revenue from contracts with customers had been accounted for under Topic

605

(in thousands, except per share data):

	As R eported U nder Topic 606			Effect of Change			As Revised Under Topic 605

Consolidated Balance Sheet:
Inventory	$	19,418		$	610		$	20,028
Other accrued liabilities		20,643			(538	)		20,105
Deferred revenue		—			2,345			2,345
Retained earnings		(834,147	)		(1,197	)		(835,344	)

Consolidated Statement of Operations and Comprehensive Loss :
Net product sales	$	11,567		$	(36	)	$	11,531
Cost of product sales		3,133			(412	)		2,721
Loss from operations		(51,990	)		376			(51,614	)
Net loss		(52,265	)		376			(51,889	)
Basic and diluted net loss per share		(0.81	)		0.01			(0.80	)

Consolidated Statement of Cash Flows :
Net loss	$	(52,265	)	$	376		$	(51,889	)
Adjustments to reconcile net loss to net cash used in operating activities:
Inventory		(9,508	)		(412	)		(9,920	)
Other accrued liabilities		2,572			454			3,026
Deferred revenue		—			(418	)		(418	)

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

later than

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 or CINVANTI 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 GPOs 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 or CINVANTI 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 judgment 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 table provides a summary of activity with respect to our product returns, distributor fees and discounts, rebates and administrative fees for the

three

months ended

March 31, 2018,

which are included in other accrued liabilities on the unaudited condensed consolidated balance sheets (in thousands):

	Product Returns		Distributor Fees			Discounts, Rebates and Administrative Fees			Total

Balance at December 31, 2017	$	521	$	580		$	8,218		$	9,319
Provision		142		1,160			11,446			12,748
Payments/credits		—		(706	)		(8,757	)		(9,463	)
Balance at March 31, 2018	$	663	$	1,034		$	10,907		$	12,604

Note 6 - Realignment of Goals and Objectives and New Development Focus	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Restructuring and Related Activities Disclosure [Text Block]	6. 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. The total expense for these activities was $9.6 million, $5.7 million of which is primarily for severance and $3.9 million of which is for non-cash, stock-based compensation expense. The total expense was recognized between September 30, 2016 and December 31, 2017. We expect to make the final payment resulting from the realignment of our goals and objectives and new development focus in the third quarter of 2018. As of March 31, 2018, we have paid $5.3 million of the total $5.7 million cash severance charges. In March 2018, we shut down operations at our Redwood City facility and entered into a sublease agreement for the remainder of the lease term. The fair value of the cease-use liability was calculated using the remaining lease payments, offset by future sub-lease payments, deferred rent amortization and prepaid rent amounts. For the three months ended March 31, 2018, we recorded expense of $0.5 million to general and administrative expense as a loss on the lease. We have accounted for these expenses in accordance with ASC Topic 420, Exit or Disposal Cost Obligations .

Note 7 - Secured Notes to Related Party	3 Months Ended
Note 7 - Secured Notes to Related Party	Mar. 31, 2018
Notes to Financial Statements
Debt Disclosure [Text Block]	7. 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 a rate of 6% per annum, payable quarterly in cash or in additional principal amount of Convertible Notes, at the election of the purchasers. The Convertible 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 March 31, 2018, we were in compliance with all covenants under the Convertible Notes. On 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 outstanding 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 three months ended March 31, 2018, accrued interest of $0.1 million was paid-in-kind and rolled into the Convertible Note principal balance, which resulted in an additional debt discount of $0.1 million. For the three months ended March 31, 2018 and 2017, 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. As of March 31, 2018, the carrying value of the Convertible Notes was $3.9 million, which is comprised of the $6.5 million principal amount of the Convertible Notes outstanding, less debt discount of $2.6 million. At March 31, 2018, the Convertible Notes were convertible into 8.1 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 at a rate 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 not drawn and has expired. There are no fees, no warrants and no equity conversion features 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 months ended March 31, 2018, interest expense was $0.5 million, compared to $1.0 million for the three months ended March 31, 2017. As of March 31, 2018, the outstanding principal amount of the Promissory Note was $25.0 million.

Note 8 - Stockholders' Equity

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Stockholders’ Equity

Common Stock Offering

January 2017,

we sold

14.1

million shares of our common stock at a public offering price of

$12.20

per share. We received total net proceeds of

$163.7

million (net of

$8.8

million in issuance costs) from the sale of the common stock.

December 2017,

we sold

9.7

million shares of our common stock at a public offering price of

$15.50

per share. We received total net proceeds of

$142.6

million (net of

$7.4

million in issuance costs) from the sale of the common stock.

April 2018,

we sold

6.9

million shares of our common stock at a public offering price of

$26.00

per share. We received total net cash proceeds of

$168.7

million (net of

$9.3

million in issuance costs) from the sale of the common stock (See Note

Stock Option

Activity

The following table summarizes the stock option activity for the

three

months ended

March

31,

2018:

						Weighted-
						a verage
				Weighted-		Remaining
				a verage		Contractual
	Shares			Exercise		Term
	(in thousands)			Price		(Years)
Balance at December 31, 2017		13,463		$	15.03		8.01
Granted		122		$	23.06
Exercised		(435	)	$	9.66
Expired and forfeited		(244	)	$	19.02
Balance at March 31, 2018		12,906		$	15.22		7.86

For the

three

months ended

March 31, 2018,

435,000

shares of common stock were issued pursuant to the exercise of stock options, resulting in net proceeds of

$4.2

million.

Stock-based Compensation

The following table summarizes stock-based compensation expense related to stock-based payment awards granted pursuant to all of our equity compensation arrangements for the

three

months ended

March 31, 2018

and

2017

(in thousands):

	Three Months Ended March 31,
	2018		2017

Research and development	$	3,036	$	3,208
General and administrative		2,276		2,374
Sales and marketing		2,389		2,439
Total stock-based compensation expense	$	7,701	$	8,021

As of

March 31, 2018,

there was

$79.7

million of total unrecognized compensation cost related to non-vested, stock-based payment awards granted under all of our equity compensation plans and all non-plan option grants. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. We expect to recognize this compensation cost over a weighted-average period of

2.8

years.

We estimated the fair value of each option grant on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions:

	March 31 ,
	20 18			20 17
Risk-free interest rate		2.6	%		2.1	%
Dividend yield		0.0	%		0.0	%
Volatility		71.4	%		87.3	%
Expected life (years)		6			6

We estimate the fair value of each purchase right granted under our

1997

Employee Stock Purchase Plan at the beginning of each new offering period using the Black-Scholes option pricing model. There were

new offering periods for the

three

months ended

March 31, 2018

and

2017.

Note 9 - Income Taxes	3 Months Ended
Note 9 - Income Taxes	Mar. 31, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	9 . 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 differences 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 March 31, 2018. 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 Annual Report on Form 10 -K for the year ended December 31, 2017 continue to be accurate for the three months ended March 31, 2018.

Note 10 - Subsequent Events	3 Months Ended
Note 10 - Subsequent Events	Mar. 31, 2018
Notes to Financial Statements
Subsequent Events [Text Block]	10 . Subsequent Events In April 2018, we sold 6.9 million shares of our common stock at a public offering price of $26.00 per share. We received total net cash proceeds of $168.7 million (net of $9.3 million in issuance costs) from the sale of the common stock. In connection with the public offering, TCP executed a waiver (the “Waiver”) pursuant to which TCP waived: (i) our obligation under the Securities Purchase Agreement, dated April 24, 2011, among us, TCP and certain other investors to maintain a sufficient number of authorized shares of our common stock to permit the conversion of TCP’s outstanding principal and interest under the Convertible Notes to our common stock; and (ii) its right to convert the Convertible Notes for the duration of the Waiver. The Waiver will remain effective until the earliest to occur of: (i) a change in the control of the Company; (ii) the Company’s stockholders approving an increase of the number of authorized shares of our common stock; and (iii) September 28, 2018. If, upon the expiration of the Waiver, TCP seeks to convert part or all of the Convertible Notes and we do not have a sufficient number of authorized shares of our common stock to permit the conversion of the portion of the Convertible Notes being converted, then we will be obligated to make a cash payment to TCP equal to the value of the underlying shares of common stock that we are unable to deliver on conversion based on the price of our common stock at such time. On May 8, 2018, we entered into a Second Amendment to Lease (the “Lease Amendment”) with AP3 - SD1 Campus Point LLC (the “Landlord”), amending that certain Lease, dated October 18, 2016, by and between us and the Landlord, as amended by that certain First Amendment to Lease, dated March 15, 2017 ( the “Lease”). The Lease Amendment provides for us to lease additional office space in the building located at 4242 Campus Point Court, San Diego, California, for a period of 87 months, beginning on the date that our improvements to the premises are substantially complete. Pursuant to the Lease Amendment, we have agreed to pay a basic annual rent that increases incrementally over the term of the Lease Amendment from $0.9 million for the first 12 months of the Lease Amendment (inclusive of certain rent abatements) to a prorated portion of a basic annual rent of $1.4 million for the last three months of the Lease Amendment, and such other amounts as set forth in the Lease Amendment. We also paid to the Landlord an additional security deposit in the amount of $0.1 million. Except as modified by the Lease Amendment, all of the provisions of the Lease will continue unmodified and in full force and effect.

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

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

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

sh, Cash Equivalents and Short-t

erm Investments

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

three

months or less.

Short-term investments consist of securities with contractual maturities of greater than

three

months to

one

The following is a summary of our short-term investments (in thousands):

	March 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. corporate debt securities	$	16,202	$	—	$	(42	)	$	16,160
U.S. commercial paper		17,402		—		—			17,402
Foreign commercial paper		33,801		—		—			33,801
Total	$	67,405	$	—	$	(42	)	$	67,363

	D ecember 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. corporate debt securities	$	13,003	$	—	$	(10	)	$	12,993
U.S. commercial paper		4,929		—		—			4,929
Foreign commercial paper		9,874		—		—			9,874
Total	$	27,806	$	—	$	(10	)	$	27,796

not

recognize any impairment losses for each of the

three

months ended

March 31, 2018

and

2017.

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

realized gains or losses for each of the

three

months ended

March 31, 2018

and

2017.

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

Concentration of Risk

may

be in excess of insured limits. We

may

Sales of SUSTOL to

two

customers accounted for

10%

or more of our net product sales for the

three

months ended

March 31, 2018.

Sales of CINVANTI to

three

customers accounted for

10%

or more of our net product sales for the

three

months ended

March 31, 2018.

The loss of any 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

March 31, 2018,

inventory totaled

$19.4

million, which consisted of raw materials of

$5.0

million, work in process of

$8.1

million and finished goods of

$6.3

million. As of

March 31, 2018,

total inventory included

$8.5

million related to SUSTOL and

$10.9

million related to CINVANTI. As of

December 31, 2017,

inventory totaled

$10.1

million, which consisted of raw materials of

$2.7

million, work in process of

$4.2

million and finished goods of

$3.2

million. As of

December 31, 2017,

total inventory included

$7.1

million related to SUSTOL and

$3.0

million related to CINVANTI.

For the

three

months ended

March 31, 2018,

we recognized cost of product sales of

$3.1

million for sales of SUSTOL and CINVANTI. For the

three

months ended

March 31, 2017,

we recognized

$1.2

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

May 2014,

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

No.

2014

09,

Revenue from Contracts with Customers

(“Topic

606”

). Topic

606

is effective for fiscal years beginning after

December 15, 2017,

including interim periods within those fiscal years. Accordingly, in the

first

quarter of

2018,

we adopted Topic

606

using the modified retrospective approach. Under this approach, incremental disclosures are provided to present each financial statement line item for

2018

under the prior standard. As a result of the adoption of Topic

606,

we recorded a cumulative adjustment to retained earnings of

$1.6

million on

January 1, 2018.

This adjustment reflects the acceleration of

$2.9

million in gross product sales less

$1.1

million in product sales allowances and

$0.2

million in cost of product sales (see Note

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Loss

Earnings Per Share, Policy [Policy Text Block]

Net L

oss

per Share

not

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

	As of March 3 1 ,
	2018		2017

Stock options outstanding		12,906		11,849
Warrants outstanding		640		625
Shares of common stock underlying Convertible Notes outstanding		8,103		7,634

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Recently Adopted

May 2017,

FASB issued ASU

No.

2017

09,

Compensation

– Stock Compensation

: Scope of Modification Accounting

(“ASU

2017

09”

The amendments in ASU

2017

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

718.

In the

first

quarter of

2018,

we adopted the provisions of ASU

2017

09,

which did

not

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

Not

Yet Adopted

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.

Note 3 - Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Notes Tables

Available-for-sale Securities [Table Text Block]

	March 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. corporate debt securities	$	16,202	$	—	$	(42	)	$	16,160
U.S. commercial paper		17,402		—		—			17,402
Foreign commercial paper		33,801		—		—			33,801
Total	$	67,405	$	—	$	(42	)	$	67,363

	D ecember 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. corporate debt securities	$	13,003	$	—	$	(10	)	$	12,993
U.S. commercial paper		4,929		—		—			4,929
Foreign commercial paper		9,874		—		—			9,874
Total	$	27,806	$	—	$	(10	)	$	27,796

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	As of March 3 1 ,
	2018		2017

Stock options outstanding		12,906		11,849
Warrants outstanding		640		625
Shares of common stock underlying Convertible Notes outstanding		8,103		7,634

Note 4 - Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Notes Tables

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Fair Value Measurements at Reporting Date Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
	Balance at		for Identical		Observable		Unobservable
	March 31 ,		Assets		Inputs		Inputs
	201 8		(Level 1)		(Level 2)		(Level 3)
Money market funds	$	37,883	$	37,883	$	—	$	—
U.S. corporate debt securities		16,160		—		16,160		—
U.S. commercial paper		17,402		—		17,402		—
Foreign commercial paper		36,641		—		36,641		—
Total	$	108,086	$	37,883	$	70,203	$	—

	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 7		(Level 1)		(Level 2)		(Level 3)
Money market funds	$	91,386	$	91,386	$	—	$	—
U.S. corporate debt securities		17,520		—		17,520		—
U.S. commercial paper		39,863		—		39,863		—
Foreign commercial paper		19,854		—		19,854		—
Total	$	168,623	$	91,386	$	77,237	$	—

Note 5 - Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2018

Notes Tables

Schedule of Assets and Liabilities as Adjusted due to Adoption of Topic 606 [Table Text Block]

	As Reported U nder Topic 605			Effect of Change			As Adjusted U nder Topic 606

Inventory	$	10,108		$	(198	)	$	9,910
Other accrued liabilities		17,175			992			18,167
Deferred revenue		2,763			(2,763	)		—
Retained earnings		(783,455	)		1,573			(781,882	)

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

	As R eported U nder Topic 606			Effect of Change			As Revised Under Topic 605

Consolidated Balance Sheet:
Inventory	$	19,418		$	610		$	20,028
Other accrued liabilities		20,643			(538	)		20,105
Deferred revenue		—			2,345			2,345
Retained earnings		(834,147	)		(1,197	)		(835,344	)

Consolidated Statement of Operations and Comprehensive Loss :
Net product sales	$	11,567		$	(36	)	$	11,531
Cost of product sales		3,133			(412	)		2,721
Loss from operations		(51,990	)		376			(51,614	)
Net loss		(52,265	)		376			(51,889	)
Basic and diluted net loss per share		(0.81	)		0.01			(0.80	)

Consolidated Statement of Cash Flows :
Net loss	$	(52,265	)	$	376		$	(51,889	)
Adjustments to reconcile net loss to net cash used in operating activities:
Inventory		(9,508	)		(412	)		(9,920	)
Other accrued liabilities		2,572			454			3,026
Deferred revenue		—			(418	)		(418	)

Valuation Allowances and Reserves [Table Text Block]

	Product Returns		Distributor Fees			Discounts, Rebates and Administrative Fees			Total

Balance at December 31, 2017	$	521	$	580		$	8,218		$	9,319
Provision		142		1,160			11,446			12,748
Payments/credits		—		(706	)		(8,757	)		(9,463	)
Balance at March 31, 2018	$	663	$	1,034		$	10,907		$	12,604

Note 8 - Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2018

Notes Tables

Share-based Compensation, Stock Options, Activity [Table Text Block]

						Weighted-
						a verage
				Weighted-		Remaining
				a verage		Contractual
	Shares			Exercise		Term
	(in thousands)			Price		(Years)
Balance at December 31, 2017		13,463		$	15.03		8.01
Granted		122		$	23.06
Exercised		(435	)	$	9.66
Expired and forfeited		(244	)	$	19.02
Balance at March 31, 2018		12,906		$	15.22		7.86

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Three Months Ended March 31,
	2018		2017

Research and development	$	3,036	$	3,208
General and administrative		2,276		2,374
Sales and marketing		2,389		2,439
Total stock-based compensation expense	$	7,701	$	8,021

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	March 31 ,
	20 18			20 17
Risk-free interest rate		2.6	%		2.1	%
Dividend yield		0.0	%		0.0	%
Volatility		71.4	%		87.3	%
Expected life (years)		6			6

Note 1 - Business (Details Textual) - USD ($) $ in Thousands	1 Months Ended
	Apr. 30, 2018	Dec. 31, 2017	Jan. 31, 2017	Mar. 31, 2018	Jan. 01, 2018
Retained Earnings (Accumulated Deficit), Ending Balance		$ (783,455)		$ (834,147)
Cash, Cash Equivalents, and Short-term Investments, Total				$ 113,900
Proceeds from Issuance of Common Stock		$ 142,600	$ 163,700
Pro Forma [Member]
Retained Earnings (Accumulated Deficit), Ending Balance					$ (781,882)
Subsequent Event [Member]
Proceeds from Issuance of Common Stock	$ 168,700
Subsequent Event [Member] \| Pro Forma [Member]
Cash, Cash Equivalents, and Short-term Investments, Total	$ 282,600

Note 3 - Accounting Policies (Details Textual) $ in Thousands		3 Months Ended
	Jan. 01, 2018 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Asset Impairment Charges, Total		$ 0	$ 0
Available-for-sale Securities, Gross Realized Gains		0	0
Inventory, Net, Total		19,418		$ 10,108
Inventory, Raw Materials, Net of Reserves		5,000		2,700
Inventory, Work in Process, Net of Reserves		8,100		4,200
Inventory, Finished Goods, Net of Reserves		6,300		3,200
Cost of Goods and Services Sold, Total		3,133	1,186
Revenue from Contract with Customer, Including Assessed Tax		11,567	3,632
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Ending Balance		12,604		9,319
Accounting Standards Update 2014-09 [Member]
Cost of Goods and Services Sold, Total	$ 200
Revenue from Contract with Customer, Including Assessed Tax	2,900
Accounting Standards Update 2014-09 [Member] \| Product Sales Allowance [Member]
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Ending Balance	1,100
Retained Earnings [Member] \| Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 1,600
SUSTOL [Member]
Inventory, Net, Total		8,500		7,100
Cost of Goods and Services Sold, Total			$ 1,200
CINVANTI [Member]
Inventory, Net, Total		$ 10,900		$ 3,000
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member] \| SUSTOL [Member]
Number of Major Customers		2
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member] \| CINVANTI [Member]
Number of Major Customers		3

Note 3 - Accounting Policies - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Amortized cost	$ 67,405	$ 27,806
Gross unrealized gains
Gross unrealized losses	(42)	(10)
Estimated fair value	67,363	27,796
Debt Security, Corporate, US [Member]
Amortized cost	16,202	13,003
Gross unrealized gains
Gross unrealized losses	(42)	(10)
Estimated fair value	16,160	12,993
United States Commercial Paper [Member]
Amortized cost	17,402	4,929
Gross unrealized gains
Gross unrealized losses
Estimated fair value	17,402	4,929
Foreign Commercial Paper [Member]
Amortized cost	33,801	9,874
Gross unrealized gains
Gross unrealized losses
Estimated fair value	$ 33,801	$ 9,874

Note 3 - Accounting Policies - Securities Excluded From Calculation of Diluted Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Employee Stock Option [Member]
Shares excluded (in shares)	12,906	11,849
Warrant [Member]
Shares excluded (in shares)	640	625
Convertible Debt Securities [Member]
Shares excluded (in shares)	8,103	7,634

Note 4 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Cash Equivalents, at Carrying Value, Total	$ 2,800	$ 49,400
Available-for-sale Securities, Current, Total	$ 67,363	$ 27,796

Note 4 - Fair Value Measurements - Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale securities	$ 67,363	$ 27,796
Debt Security, Corporate, US [Member]
Available-for-sale securities	16,160	12,993
United States Commercial Paper [Member]
Available-for-sale securities	17,402	4,929
Foreign Commercial Paper [Member]
Available-for-sale securities	33,801	9,874
Fair Value, Measurements, Recurring [Member]
Total	108,086	168,623
Fair Value, Measurements, Recurring [Member] \| Foreign Commercial Paper [Member]
Available-for-sale securities	36,641
Fair Value, Measurements, Recurring [Member] \| Debt Security, Corporate, US [Member]
Available-for-sale securities	16,160	17,520
Fair Value, Measurements, Recurring [Member] \| United States Commercial Paper [Member]
Available-for-sale securities	17,402	39,863
Fair Value, Measurements, Recurring [Member] \| Foreign Commercial Paper [Member]
Available-for-sale securities		19,854
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Total	37,883	91,386
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Debt Security, Corporate, US [Member]
Available-for-sale securities
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] \| Foreign Commercial Paper [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Total	70,203	77,237
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Debt Security, Corporate, US [Member]
Available-for-sale securities	16,160	17,520
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| United States Commercial Paper [Member]
Available-for-sale securities	17,402	39,863
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Foreign Commercial Paper [Member]
Available-for-sale securities	36,641	19,854
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Total
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member] \| Debt Security, Corporate, US [Member]
Available-for-sale securities
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] \| Foreign Commercial Paper [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] \| Money Market Funds [Member]
Money market funds	37,883	91,386
Fair Value, Measurements, Recurring [Member] \| Money Market Funds [Member] \| Fair Value, Inputs, Level 1 [Member]
Money market funds	37,883	91,386
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 5 - Revenue Recognition - Reconciliation of Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Inventory	$ 19,418		$ 10,108
Other accrued liabilities	20,643		17,175
Deferred revenue			2,763
Retained earnings	$ (834,147)		$ (783,455)
Pro Forma [Member]
Inventory		$ 9,910
Other accrued liabilities		18,167
Deferred revenue
Retained earnings		(781,882)
Pro Forma [Member] \| Accounting Standards Update 2014-09 [Member]
Inventory		(198)
Other accrued liabilities		992
Deferred revenue		(2,763)
Retained earnings		$ 1,573

Note 5 - Revenue Recognition - Condensed Consolidated Financial Statement as if Revenue from Contracts with Customers Had Been Accounted For (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Jan. 01, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Inventory		$ 19,418		$ 10,108
Other accrued liabilities		20,643		17,175
Deferred revenue				2,763
Retained earnings		(834,147)		$ (783,455)
Net product sales		11,567	$ 3,632
Cost of product sales		3,133	1,186
Loss from operations		(51,990)	(49,299)
Net loss		$ (52,265)	$ (50,329)
Basic and diluted net loss per share (in dollars per share)		$ (0.81)	$ (1)
Inventory		$ (9,508)	$ 699
Other accrued liabilities		2,572	1,091
Deferred revenue			$ 4,136
Accounting Standards Update 2014-09 [Member]
Net product sales	$ 2,900
Cost of product sales	$ 200
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] \| Accounting Standards Update 2014-09 [Member]
Inventory		610
Other accrued liabilities		(538)
Deferred revenue		2,345
Retained earnings		(1,197)
Net product sales		(36)
Cost of product sales		(412)
Loss from operations		376
Net loss		$ 376
Basic and diluted net loss per share (in dollars per share)		$ 0.01
Inventory		$ (412)
Other accrued liabilities		454
Deferred revenue		(418)
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Inventory		20,028
Other accrued liabilities		20,105
Deferred revenue		2,345
Retained earnings		(835,344)
Net product sales		11,531
Cost of product sales		2,721
Loss from operations		(51,614)
Net loss		$ (51,889)
Basic and diluted net loss per share (in dollars per share)		$ (0.80)
Inventory		$ (9,920)
Other accrued liabilities		3,026
Deferred revenue		$ (418)

Note 5 - Revenue Recognition - Summary of Product Sales Allowance (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Balance	$ 9,319
Provision	12,748
Payments/credits	(9,463)
Balance	12,604
Allowance for Sales Returns 1 [Member]
Balance	521
Provision	142
Payments/credits
Balance	663
Allowance for Distributor Fees [Member]
Balance	580
Provision	1,160
Payments/credits	(706)
Balance	1,034
Allowance for Rebates and Chargebacks [Member]
Balance	8,218
Provision	11,446
Payments/credits	(8,757)
Balance	$ 10,907

Note 6 - Realignment of Goals and Objectives and New Development Focus (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Restructuring and Related Cost, Expected Cost, Total		$ 9.6
Restructuring Plan [Member]
Payments for Restructuring	$ 5.3
Restructuring Plan [Member] \| General and Administrative Expense [Member]
Restructuring Charges, Total	$ 0.5
Restructuring Plan [Member] \| Employee Severance [Member]
Restructuring and Related Cost, Expected Cost, Total		5.7
Restructuring Plan [Member] \| Accelerated Non-Cash Stock Option Expense [Member]
Restructuring and Related Cost, Expected Cost, Total		$ 3.9

Note 7 - Secured Notes to Related Party (Details Textual) - USD ($)				1 Months Ended	3 Months Ended
	Aug. 05, 2016	Aug. 02, 2016	Jul. 29, 2011	Apr. 30, 2011	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Convertible Debt Issuable in Connection with Private Placement				$ 4,500,000
Proceeds from Convertible Debt				$ 4,300,000
Amortization of Debt Discount (Premium)					$ 210,000	$ 185,000
Convertible Notes Payable, Related Parties, Current					3,894,000		$ 3,684,000
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					100,000
Debt Instrument, Increase (Decrease), Other, Net					100,000
Interest Expense, Debt, Excluding Amortization					100,000	100,000
Amortization of Debt Discount (Premium)					200,000	200,000
Debt Instrument, Face Amount					6,500,000
Debt Instrument, Unamortized Discount, Total					$ 2,600,000
Debt Instrument, Convertible, Number Shares of Equity Insturments					8,100,000
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, Total	$ 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, Total					$ 500,000	$ 1,000,000
Notes Payable, Related Parties, Noncurrent					$ 25,000,000

Note 8 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended
	Apr. 30, 2018	Dec. 31, 2017	Jan. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Proceeds from Issuance of Common Stock		$ 142,600	$ 163,700
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Net				435,000
Proceeds from Stock Options Exercised				$ 4,202	$ 1,850
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total				$ 79,700
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				2 years 292 days
Subsequent Event [Member]
Proceeds from Issuance of Common Stock	$ 168,700
Common Stock [Member]
Stock Issued During Period, Shares, New Issues		9,700,000	14,100,000
Share Price		$ 15.50	$ 12.20
Payments of Stock Issuance Costs		$ 7,400	$ 8,800
Common Stock [Member] \| Subsequent Event [Member]
Stock Issued During Period, Shares, New Issues	6,900,000
Share Price	$ 26
Payments of Stock Issuance Costs	$ 9,300

Note 8 - Stockholders' Equity - Stock Option Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Number of shares outstanding (in shares)	13,463
Number of shares outstanding, weighted average exercise price (in dollars per share)	$ 15.03
Number of shares outstanding, weighted average remaining contractual term (Year)	7 years 313 days	8 years 3 days
Number of shares granted (in shares)	122
Number of shares granted, weighted average exercise price (in dollars per share)	$ 23.06
Number of shares exercised (in shares)	(435)
Number of shares exercised, weighted average exercise price (in dollars per share)	$ 9.66
Expired and forfeited (in shares)	(244)
Number of shares expired and forfeited, weighted average exercise price (in dollars per share)	$ 19.02
Number of shares outstanding (in shares)	12,906	13,463
Number of shares outstanding, weighted average exercise price (in dollars per share)	$ 15.22	$ 15.03

Note 8 - Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock-based compensation expense	$ 7,701	$ 8,021
Research and Development Expense [Member]
Stock-based compensation expense	3,036	3,208
General and Administrative Expense [Member]
Stock-based compensation expense	2,276	2,374
Selling and Marketing Expense [Member]
Stock-based compensation expense	$ 2,389	$ 2,439

Note 8 - Stockholders' Equity - Valuation Assumptions (Details) - Employee Stock Option [Member]	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Risk-free interest rate	2.60%	2.10%
Dividend yield	0.00%	0.00%
Volatility	71.40%	87.30%
Expected life (years) (Year)	6 years	6 years

Note 9 - Income Taxes (Details Textual) $ in Millions	12 Months Ended
Note 9 - Income Taxes (Details Textual) $ in Millions	Dec. 31, 2017 USD ($)
Accounting Standards Update 2014-09 [Member]
Unrecognized Tax Benefits, Period Increase (Decrease), Total	$ (3.6)

Note 10 - Subsequent Events (Details Textual) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended
	May 08, 2018	Apr. 30, 2018	Dec. 31, 2017	Jan. 31, 2017
Proceeds from Issuance of Common Stock			$ 142.6	$ 163.7
Common Stock [Member]
Stock Issued During Period, Shares, New Issues			9,700,000	14,100,000
Share Price			$ 15.50	$ 12.20
Payments of Stock Issuance Costs			$ 7.4	$ 8.8
Subsequent Event [Member]
Proceeds from Issuance of Common Stock		$ 168.7
Subsequent Event [Member] \| Lease Amendment to Lease for Additional Office Space in Campus Point Court, San Diego, California [Member]
Lessee, Operating Lease, Term of Contract	7 years 90 days
Lessee, Operating Lease, Liability, Annual Payments, Due Next Twelve Months	$ 0.9
Lessee, Operating Lease, Liability, Annual Payments Due in Final Three Months of Agreement	1.4
Payments for Security Deposit	$ 0.1
Subsequent Event [Member] \| Common Stock [Member]
Stock Issued During Period, Shares, New Issues		6,900,000
Share Price		$ 26
Payments of Stock Issuance Costs		$ 9.3