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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2012	Jul. 31, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	Vanda Pharmaceuticals Inc.
Entity Central Index Key	0001347178
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		28,226,743

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 94,388	$ 87,923
Marketable securities, current	50,313	60,961
Accounts receivable	1,700	1,618
Inventory	165
Prepaid expenses, deposits and other current assets	3,423	2,999
Total current assets	149,989	153,501
Marketable securities, non-current		19,012
Property and equipment, net	2,533	964
Other assets, non-current		84
Intangible asset, net	7,286	8,027
Restricted cash	1,030	1,030
Total assets	160,838	182,618
Current liabilities:
Accounts payable	1,689	996
Accrued liabilities	5,908	3,381
Deferred rent, current		453
Deferred revenues, current	26,789	26,789
Total current liabilities	34,386	31,619
Deferred rent, non-current	2,588	461
Deferred revenues, non-current	103,780	117,064
Total liabilities	140,754	149,144
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 20,000,000 shares authorized and none issued and outstanding
Common stock, $0.001 par value; 150,000,000 shares authorized, 28,226,743 and 28,117,026 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively	28	28
Additional paid-in capital	299,463	296,868
Accumulated other comprehensive income	5	21
Accumulated deficit	(279,412)	(263,443)
Total stockholders' equity	20,084	33,474
Total liabilities and stockholders' equity	$ 160,838	$ 182,618

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2012	Dec. 31, 2011
Stockholders' equity:
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	28,226,743	28,117,026
Common stock, shares outstanding	28,226,743	28,117,026

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues:
Licensing agreement	$ 6,678	$ 6,678	$ 13,284	$ 13,284
Royalty revenue	1,700	752	3,235	1,647
Total revenues	8,378	7,430	16,519	14,931
Operating expenses:
Research and development	12,490	5,999	24,670	10,266
General and administrative	3,601	2,572	7,510	5,430
Intangible asset amortization	372	372	741	741
Total operating expenses	16,463	8,943	32,921	16,437
Loss from operations	(8,085)	(1,513)	(16,402)	(1,506)
Other income	78	121	433	256
Loss before tax benefit	(8,007)	(1,392)	(15,969)	(1,250)
Tax benefit		(51)		(45)
Net loss	$ (8,007)	$ (1,341)	$ (15,969)	$ (1,205)
Net loss per share:
Basic	$ (0.28)	$ (0.05)	$ (0.57)	$ (0.04)
Diluted	$ (0.28)	$ (0.05)	$ (0.57)	$ (0.04)
Shares used in calculation of net loss per share:
Basic	28,226,743	28,103,441	28,226,743	28,102,774
Diluted	28,226,743	28,103,441	28,226,743	28,102,774

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Condensed Consolidated Statements of Comprehensive Loss [Abstract]
Net loss	$ (8,007)	$ (1,341)	$ (15,969)	$ (1,205)
Other comprehensive loss
Change in net unrealized gain (loss) on marketable securities	(22)	(14)	(16)	83
Comprehensive loss before tax provision	(8,029)	(1,355)	(15,985)	(1,122)
Tax provision related to other comprehensive loss
Comprehensive loss	$ (8,029)	$ (1,355)	$ (15,985)	$ (1,122)

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

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- Definition

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

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- Definition

Tax effect of other comprehensive income (loss) attributable to both parent entity and noncontrolling interest.

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+ Details

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2012 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Balances at Dec. 31, 2011	$ 33,474	$ 28	$ 296,868	$ 21	$ (263,443)
Balances, shares at Dec. 31, 2011		28,117,026
Issuance of common stock from exercised stock options and settlement of restricted stock units, shares		109,717
Employee and non-employee stock-based compensation	2,595		2,595
Net loss	(15,969)				(15,969)
Other comprehensive income	(16)			(16)
Balances at Jun. 30, 2012	$ 20,084	$ 28	$ 299,463	$ 5	$ (279,412)
Balances, shares at Jun. 30, 2012		28,226,743

- Definition

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

+ References

+ Details

- Definition

Number of shares (or other type of equity) issued during the period as a result of any equity-based compensation plan other than an employee stock ownership plan (ESOP), net of any shares forfeited. Shares issued could result from the issuance of restricted stock, the exercise of stock options, stock issued under employee stock purchase plans, and/or other employee benefit plans.

+ References + Details

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities
Net loss	$ (15,969)	$ (1,205)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	424	138
Employee and non-employee stock-based compensation	2,595	2,929
Amortization of premiums and discounts on marketable securities	282	574
Amortization of intangible asset	741	741
Changes in assets and liabilities:
Accounts receivable	(82)	(241)
Inventory	(165)
Prepaid expenses, deposits and other assets	(340)	(349)
Accounts payable	693	689
Accrued liabilities	2,527	1,189
Accrued income taxes		(45)
Other liabilities	(151)	(19)
Landlord contributions for tenant improvements	1,825
Deferred revenue	(13,284)	(13,284)
Net cash used in operating activities	(20,904)	(8,883)
Cash flows from investing activities
Purchases of property and equipment	(1,993)	(164)
Purchases of marketable securities	(49,967)	(89,576)
Proceeds from sale of marketable securities	1,998
Maturities of marketable securities	77,331	106,550
Change in restricted cash		(100)
Net cash provided by investing activities	27,369	16,710
Net change in cash and cash equivalents	6,465	7,827
Cash and cash equivalents
Beginning of period	87,923	42,559
End of period	$ 94,388	$ 50,386

Business Organization and Presentation

6 Months Ended

Jun. 30, 2012

Business Organization and Presentation [Abstract]

Business Organization and Presentation

1.	Business Organization and Presentation

Business organization

Vanda Pharmaceuticals Inc. (Vanda or the Company) is a biopharmaceutical company focused on the development and commercialization of products for the treatment of central nervous system disorders. Vanda commenced its operations in 2003. The Company’s lead product, Fanapt® (iloperidone), which Novartis Pharma AG (Novartis) began marketing in the U.S. in the first quarter of 2010, is a compound for the treatment of schizophrenia. On May 6, 2009, the U.S. Food and Drug Administration (FDA) granted U.S. marketing approval of Fanapt® for the acute treatment of schizophrenia in adults. On October 12, 2009, Vanda entered into an amended and restated sublicense agreement with Novartis. Vanda had originally entered into a sublicense agreement with Novartis on June 4, 2004 pursuant to which Vanda obtained certain worldwide exclusive licenses from Novartis relating to Fanapt®. Pursuant to the amended and restated sublicense agreement, Novartis has exclusive commercialization rights to all formulations of Fanapt® in the U.S. and Canada. Novartis is responsible for the further clinical development activities in the U.S. and Canada, including the development of a long-acting injectable (or depot) formulation of Fanapt®. Pursuant to the amended and restated sublicense agreement, Vanda received an upfront payment of $200.0 million at the end of 2009 and is eligible for additional payments totaling up to $265.0 million upon the achievement of certain commercial and development milestones for Fanapt® in the U.S. and Canada. Vanda also receives royalties, which, as a percentage of net sales, are in the low double-digits, on net sales of Fanapt® in the U.S. and Canada. In addition, Vanda is no longer required to make any future milestone payments with respect to sales of Fanapt® or any future royalty payments with respect to sales of Fanapt® in the U.S. and Canada. Vanda retains exclusive rights to Fanapt® outside the U.S. and Canada and Vanda has exclusive rights to use any of Novartis’ data for Fanapt® for developing and commercializing Fanapt® outside the U.S. and Canada. At Novartis’ option, Vanda will enter into good faith discussions with Novartis relating to the co-commercialization of Fanapt® outside of the U.S. and Canada or, alternatively, Novartis will receive a royalty on net sales of Fanapt® outside of the U.S. and Canada. Novartis has chosen not to co-commercialize Fanapt® with Vanda in Europe and certain other countries and will instead receive a royalty on net sales in those countries. These include, but are not limited to, the countries in the European Union, as well as Switzerland, Norway, Liechtenstein and Iceland. Vanda continues to explore the regulatory path and commercial opportunity for Fanapt® oral formulation outside of the U.S. and Canada. On July 22, 2011, the European Medicines Agency (EMA) notified Vanda that it had accepted for evaluation the Marketing Authorization Application (MAA) for oral iloperidone tablets. The review of Vanda’s MAA for oral iloperidone tablets in the European Union is ongoing. In July 2012, the Committee for Medicinal Products for Human Use (CHMP) provided Vanda with the Day 180 List of Outstanding Issues. Vanda expects to be granted an extension to reply by mid-October 2012 and will prepare to participate in an oral hearing in November 2012 as it continues to evaluate its European strategy. Vanda has entered into agreements with the following partners for the commercialization of Fanapt® in the countries set forth below:


Country		Partner
Mexico		Probiomed S.A. de C.V.
Argentina		Biotoscana Farma S.A.
Israel		Megapharm Ltd.

Tasimelteon is an oral compound in development for the treatment of sleep and mood disorders including Circadian Rhythm Sleep Disorders (CRSD). On January 19, 2010, the FDA granted orphan drug designation status for tasimelteon in a specific CRSD, Non-24-Hour Disorder (N24HD) in blind individuals without light perception. The FDA grants orphan drug designation to drugs that may provide significant therapeutic advantage over existing treatments and target conditions affecting 200,000 or fewer U.S. patients per year. Orphan drug designation provides potential financial and regulatory incentives including, study design assistance, waiver of FDA user fees, tax credits, and up to seven years of market exclusivity upon marketing approval. On February 23, 2011, the European Commission (EC) designated tasimelteon as an orphan medicinal product for the same indication. Vanda has initiated four clinical trials to pursue FDA approval of tasimelteon for the treatment of N24HD in blind individuals without light perception. Two of the clinical trials were initiated in the third quarter of 2010, the third was initiated in the third quarter of 2011 and the fourth was initiated in the fourth quarter of 2011. The first clinical trial (SET-3201) is a randomized, double-blind, placebo-controlled study with a planned enrollment of up to 84 patients with N24HD. The trial has a six month treatment period and includes measures of both nighttime and daytime sleep, as well as laboratory measures of the synchronization between the internal body clock and the 24-hour environmental light/dark cycle. The second clinical trial (3202) is a one-year safety study of tasimelteon for the treatment of N24HD. This trial is an open-label safety study with a planned enrollment of up to 140 patients with N24HD. The third clinical trial (RESET-3203) is a placebo-controlled, randomized withdrawal study to examine the maintenance effect of tasimelteon for the treatment of N24HD with a planned enrollment of up to 20 patients with N24HD. Patients will be observed for 12 weeks during which nighttime and daytime sleep, as well as synchronization of their internal body clock to the 24-hour day, will continue to be evaluated. The fourth clinical trial (3204) is a two-year open-label, multicenter, study in blind subjects with N24HD to assess the safety of tasimelteon. The tasimelteon N24HD program continues to advance towards its goal of a projected mid-2013 NDA filing with the FDA. Vanda is in continuing discussions with the FDA to confirm the path and requirements for this regulatory submission. The SET Phase III efficacy study is fully enrolled and Vanda expects to report top-line results by the end of 2012. Vanda expects to report top-line results from the RESET Phase III efficacy study in the first quarter of 2013. In the third quarter of 2011, Vanda initiated a Phase IIb/III clinical trial (MAGELLAN-2301) to study the efficacy of tasimelteon for the treatment of Major Depressive Disorder (MDD). The clinical trial is a randomized, double-blind, placebo-controlled study with a planned enrollment of approximately 500 patients with MDD. The trial has an eight-week treatment period, followed by an optional one-year open-label extension, and includes measures of depression and anxiety symptoms and nighttime and daytime sleep, as well as laboratory measures of the internal body clock. The Phase IIb/III clinical trial, MAGELLAN, is ongoing and Vanda expects to report top-line results in the first half of 2013. Given the range of potential indications for tasimelteon, Vanda may pursue one or more partnerships for the development and commercialization of tasimelteon worldwide.

VLY-686 is a small molecule neurokinin-1 receptor (NK-1R) antagonist. NK-1R antagonists have been evaluated in a number of indications including chemotherapy-induced nausea and vomiting (CINV), post-operative nausea and vomiting (PONV), alcohol dependence, anxiety, depression, and pruritus. In 2012, Vanda intends to initiate and complete the technology transfer activities and further examine the clinical and commercial profile of VLY-686. This strategic evaluation will further inform potential indications for an early development clinical program.

Throughout this quarterly report on Form 10-Q, Vanda refers to Fanapt® within the U.S. and Canada as its partnered product and Vanda refers to Fanapt® outside the U.S. and Canada and tasimelteon as its products. All other compounds are referred to as Vanda’s product candidates. In addition, Vanda refers to its partnered products, products and product candidates collectively as its compounds. Moreover, Vanda refers to drug products generally as drugs or products.

Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2011 included in the Company’s annual report on Form 10-K. The financial information as of June 30, 2012 and for the three and six months ended June 30, 2012 and 2011, is unaudited, but in the opinion of management, all adjustments, consisting only of normal recurring accruals, considered necessary for a fair statement of the results of these interim periods have been included. The condensed consolidated balance sheet data as of December 31, 2011 was derived from audited financial statements but does not include all disclosures required by GAAP.

The results of the Company’s operations for any interim period are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year. The financial information included herein should be read in conjunction with the consolidated financial statements and notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph 8, C1, C7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents

For purposes of the condensed consolidated balance sheets and condensed consolidated statements of cash flows, cash equivalents represent highly-liquid investments with a maturity date of three months or less at the date of purchase.

Marketable securities

The Company classifies all of its marketable securities as available-for-sale securities. The Company’s investment policy requires the selection of high-quality issuers, with bond ratings of AAA to A1+/P1. Available-for-sale securities are carried at fair market value, with unrealized gains and losses reported as a component of stockholders’ equity in accumulated other comprehensive income/loss. Interest and dividend income is recorded when earned and included in interest income. Premiums and discounts on marketable securities are amortized and accreted, respectively, to maturity and included in interest income. The Company uses the specific identification method in computing realized gains and losses on the sale of investments, which would be included in the condensed consolidated statements of operations when generated. Marketable securities with a maturity of more than one year as of the balance sheet date, and which the Company does not intend to sell within the next twelve months are classified as non-current. All other marketable securities are classified as current.

Inventory

The Company values its inventory at acquisition cost following the first-in first-out method. The Company analyzes its inventory levels quarterly and writes down inventory that has become obsolete, has a cost basis in excess of its expected net realizable value or inventory quantities in excess of expected requirements. Expired inventory is disposed of and the related costs are written off to cost of sales.

Intangible asset, net

Costs incurred for products or product candidates not yet approved by the FDA and for which no alternative future use exists are recorded as expense. In the event a product or product candidate has been approved by the FDA or an alternative future use exists for a product or product candidate, patent and license costs are capitalized and amortized over the expected patent life of the related product or product candidate. Milestone payments to the Company’s partners are recognized when it is deemed probable that the milestone event will occur.

As a result of the FDA’s approval of the NDA for Fanapt® in May 2009, the Company met a milestone under its original sublicense agreement with Novartis which required the Company to make a payment of $12.0 million to Novartis. The $12.0 million is being amortized on a straight-line basis over the remaining life of the U.S. patent for Fanapt®, which the Company expects to last until May 2017. This includes the Hatch-Waxman extension that extends patent protection for drug compounds for a period of up to five years to compensate for time spent in development and a six-month pediatric term extension. Fanapt® has qualified for the full five-year patent term Hatch-Waxman extension and the Company expects that Fanapt® will be eligible for six months of pediatric exclusivity. This term is the Company’s best estimate of the life of the patent; if, however, the pediatric extension is not granted, the intangible asset will be amortized over a shorter period.

The carrying values of intangible assets are periodically reviewed to determine if the facts and circumstances suggest that a potential impairment may have occurred. The Company had no impairments of its intangible assets for the six months ended June 30, 2012.

Property and equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Amortization of leasehold improvements is provided on a straight-line basis over the shorter of their estimated useful life or the lease term. The costs of additions and improvements are capitalized, and repairs and maintenance costs are charged to operations in the period incurred. Upon retirement or disposition of property and equipment, the cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in the Company’s statement of operations for that period.

Revenue Recognition

The Company’s revenues are derived primarily from the amended and restated sublicense agreement with Novartis and include an upfront payment, product sales and future milestone and royalty payments. Revenue is considered both realizable and earned when each one of the following four conditions is met: (1) persuasive evidence of an arrangement exists, (2) the arrangement fee is fixed or determinable, (3) delivery or performance has occurred and (4) collectability is reasonably assured. Pursuant to the amended and restated sublicense agreement, Novartis has the right to commercialize and develop Fanapt® in the U.S. and Canada. Under the agreement, the Company received an upfront payment of $200.0 million in December of 2009. The Company and Novartis established a Joint Steering Committee (JSC) following the effective date of the amended and restated sublicense agreement. The Company concluded that the JSC constitutes a deliverable under the amended and restated sublicense agreement and that revenue related to the upfront payment will be recognized ratably over the term of the JSC; however, the delivery or performance has no term as the exact length of the JSC is undefined. As a result, the Company deems the performance period of the JSC to be the life of the U.S. patent of Fanapt®, which the Company expects to last until May 2017. This includes the Hatch-Waxman extension that provides patent protection for drug compounds for a period of five years to compensate for time spent in development and a six-month pediatric term extension. Fanapt® has qualified for the full five-year patent term Hatch-Waxman extension and the Company expects that Fanapt® will be eligible for six months of pediatric exclusivity. This term is the Company’s best estimate of the life of the patent. Revenue related to the upfront payment will be recognized ratably from the date the amended and restated sublicense agreement became effective (November 27, 2009) through the expected life of the U.S. patent for Fanapt® (May 2017). The Company recognizes revenue from Fanapt® royalties and commercial and development milestones from Novartis when realizable and earned.

Concentrations of credit risk

Financial instruments which potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and marketable securities. The Company places its cash, cash equivalents and marketable securities with what the Company believes to be highly-rated financial institutions. At June 30, 2012, the Company maintained all of its cash, cash equivalents and marketable securities in two financial institutions. Deposits held with these institutions may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and the Company believes there is minimal risk of losses on such balances.

Accrued expenses

The Company’s management is required to estimate accrued expenses as part of the process of preparing financial statements. The estimation of accrued expenses involves identifying services that have been performed on the Company’s behalf, and then estimating the level of service performed and the associated cost incurred for such services as of each balance sheet date in the financial statements. Accrued expenses include professional service fees, such as lawyers and accountants, contract service fees, such as those under contracts with clinical monitors, data management organizations and investigators in conjunction with clinical trials, fees to contract manufacturers in conjunction with the production of clinical materials, and fees for marketing and other commercialization activities. Pursuant to management’s assessment of the services that have been performed on clinical trials and other contracts, the Company recognizes these expenses as the services are provided. Such management assessments include, but are not limited to: (1) an evaluation by the project manager of the work that has been completed during the period, (2) measurement of progress prepared internally and/or provided by the third-party service provider, (3) analyses of data that justify the progress, and (4) the Company’s management’s judgment. In the event that the Company does not identify certain costs that have begun to be incurred or the Company under- or over-estimates the level of services performed or the costs of such services, the Company’s reported expenses for such period would be too low or too high.

Research and development expenses

The Company’s research and development expenses consist primarily of fees for services provided by third parties in connection with the clinical trials, costs of contract manufacturing services, milestone license fees, costs of materials used in clinical trials and research and development, costs for regulatory consultants and filings, depreciation of capital resources used to develop products, related facilities costs, and salaries, other employee related costs and stock-based compensation for the Company’s research and development personnel. The Company expenses research and development costs as they are incurred for compounds in the development stage, including certain payments made under the license agreements prior to FDA approval. Prior to FDA approval, all Fanapt® manufacturing-related and milestone license payments were included in research and development expenses. Subsequent to FDA approval of Fanapt®, manufacturing and milestone license payments related to this product have been capitalized. Costs related to the acquisition of intellectual property have been expensed as incurred since the underlying technology associated with these acquisitions was developed in connection with the Company’s research and development efforts and has no alternative future use. Milestone license payments are accrued in accordance with the FASB guidance on accounting for contingencies which requires that milestone payments be accrued when it is deemed probable that the milestone event will be achieved.

General and administrative expenses

General and administrative expenses consist primarily of salaries, other employee related costs and stock-based compensation for personnel serving executive, business development, marketing, finance, accounting, information technology, marketing and human resource functions, facility costs not otherwise included in research and development expenses, insurance costs and professional fees for legal, accounting and other professional services. General and administrative expenses also include third party expenses incurred to support business development, marketing and other business activities related to Fanapt®.

Employee stock-based compensation

The Company accounts for its stock-based compensation expense in accordance with the FASB guidance on share-based payments. Accordingly, compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The Company generally recognizes the expense over the award’s vesting period.

The fair value of stock options granted is amortized using the accelerated attribution method. The fair value of restricted stock units (RSUs) awarded is amortized using the straight-line method. As stock-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Pre-vesting forfeitures on the options granted prior to 2009 were estimated to be approximately 2%. The forfeiture rate was increased to 4% in 2009 based on the Company’s historical experience and this rate has been utilized for all subsequently granted options.

Total employee stock-based compensation expense recognized during the three and six months ended June 30, 2012 and 2011 was comprised of the following:


	Three Months Ended				Six Months Ended
*(in thousands)*	June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
Research and development	$	520	$	618	$	1,113	$	1,338
General and administrative		668		696		1,466		1,574

Stock-based compensation expense	$	1,188	$	1,314	$	2,579	$	2,912

As of June 30, 2012, $6.5 million of total unrecognized compensation costs related to non-vested awards are expected to be recognized over a weighted average period of 1.28 years.

As of June 30, 2012, the Company had two equity incentive plans, the Second Amended and Restated Management Equity Plan (the 2004 Plan) and the 2006 Equity Incentive Plan (the 2006 Plan) that were adopted in December 2004 and April 2006, respectively. An aggregate of 677,145 shares were subject to outstanding options granted under the 2004 Plan as of June 30, 2012, and no additional options will be granted under this plan. As of June 30, 2012, there were 7,866,260 shares of the Company’s common stock reserved under the 2006 Plan of which 4,835,620 shares were subject to outstanding options and RSUs issued to employees and non-employees.

Options are subject to terms and conditions established by the compensation committee of the board of directors. None of the stock-based awards are classified as a liability as of June 30, 2012. Option awards have 10-year contractual terms and all options granted prior to December 31, 2006, options granted to new employees, and certain options granted to existing employees vest and become exercisable on the first anniversary of the vesting commencement date with respect to 25% of the shares subject to the option awards. The remaining 75% of the shares subject to the option awards vest and become exercisable monthly in equal installments thereafter over three years. Certain option awards granted to existing employees after December 31, 2006 vest and become exercisable monthly in equal installments over four years. The initial stock options granted to directors upon their election vest and become exercisable in equal monthly installments over a period of four years, while the subsequent annual stock option grants to directors vest and become exercisable in equal monthly installments over a period of one year. Certain option awards to executives and directors provide for accelerated vesting if there is a change in control of the Company. Certain option awards to employees and executives provide for accelerated vesting if the respective employee’s or executive’s service is terminated by the Company for any reason other than cause or permanent disability. As of June 30, 2012, there was $3.2 million of total unrecognized compensation expense related to unvested option awards granted under the Company’s stock incentive plans.

The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model that uses the assumptions noted in the following table. Due to the limited historical information on the Company’s publicly traded common stock, expected volatility rates are based on the historical volatility of the Company’s publicly traded common stock blended with the historical volatility of the common stock of comparable entities. The expected term of options granted is based on the transition approach provided by FASB guidance as the options meet the “plain vanilla” criteria required by this guidance. The risk-free interest rates are based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The Company has not paid dividends to its stockholders since its inception (other than a dividend of preferred share purchase rights, which was declared on September 25, 2008) and does not plan to pay dividends in the foreseeable future.

Assumptions used in the Black-Scholes-Merton option pricing model for employee and director stock options granted during the six months ended June 30, 2012 and 2011 were as follows:


	Six Months Ended
	June 30, 2012			June 30, 2011
Expected dividend yield		0	%		0	%
Weighted average expected volatility		68	%		73	%
Weighted average expected term (years)		6.03			6.03
Weighted average risk-free rate		1.08	%		2.50	%

A summary of option activity for the 2004 Plan as of June 30, 2012, and changes during the six months then ended is presented below:


*(in thousands, except for share and per share amounts)*	Number of Shares		Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2011		677,145	$	1.78		3.78	$	2,016
Exercised		—		—
Forfeited		—		—
Cancelled		—		—

Outstanding at June 30, 2012		677,145	$	1.78		3.28	$	1,847

Exercisable at June 30, 2012		677,145	$	1.78		3.28	$	1,847

A summary of option activity for the 2006 Plan as of June 30, 2012, and changes during the six months then ended is presented below:


*(in thousands, except for share and per share amounts)*	Number of Shares		Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2011		4,254,681	$	12.16		7.65	$	396
Granted		148,000	$	4.50
Exercised		—		—
Forfeited		69,334	$	11.07
Cancelled		25,541	$	6.85


Outstanding at June 30, 2012		4,307,806	$	11.95		7.24	$	388

Exercisable at June 30, 2012		2,655,213	$	14.90		6.31	$	332

The weighted average grant-date fair value of options granted during the six months ended June 30, 2012 was $2.75 per share. For the six months ended June 30, 2012 and 2011, the amounts received by the Company in cash from options exercised under the stock-based arrangements were not material.

A RSU is a stock award that entitles the holder to receive shares of the Company’s common stock as the award vests. The fair value of each RSU is based on the closing price of the Company’s stock on the date of grant, which equals the RSUs intrinsic value. As of June 30, 2012, there was $3.3 million of total unrecognized compensation cost related to unvested RSU awards granted under the Company’s stock incentive plans.

A summary of RSU activity for the 2006 Plan as of June 30, 2012, and changes during the six months then ended is presented below:


*(in thousands, except for share and per share amounts)*	Number of Shares		Weighted Average Price/Share		Aggregate Intrinsic Value
Unvested at December 31, 2011		522,346	$	7.43	$	2,486
Granted		11,500	$	4.33
Vested		—		—
Cancelled		6,032	$	6.72

Unvested at June 30, 2012		527,814	$	7.37	$	2,322

Income taxes

The Company accounts for income taxes in accordance with the FASB provisions on accounting for income taxes, which requires companies to account for deferred income taxes using the asset and liability method. Under the asset and liability method, current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax rate changes are reflected in income during the period such changes are enacted. Changes in ownership may limit the amount of net operating loss carryforwards that can be utilized in the future to offset taxable income.

Recent Accounting Pronouncements

In June 2011, the FASB issued an Accounting Standards Update which eliminates the option to report other comprehensive income and its components in the statement of changes in stockholders’ equity. It requires an entity to present total comprehensive income, which includes the components of net income and the components of other comprehensive income either in a single continuous statement or in two separate but consecutive statements. This pronouncement is effective for financial statements issued for annual and interim periods within the first annual period beginning after December 15, 2011 and must be applied retroactively. The pronouncement, adopted by the Company in the first quarter of 2012, did not have a material impact on the Company’s financial position or results of operations.

Earnings per Share

6 Months Ended

Jun. 30, 2012

Earnings per Share [Abstract]

Earnings per Share

3.	Earnings per Share

Net income (loss) per share is calculated in accordance with FASB guidance on earnings per share. Basic earnings per share (EPS) is calculated by dividing the net income (loss) by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding, plus potential outstanding common stock for the period. Potential outstanding common stock includes stock options and shares underlying RSUs, but only to the extent that their inclusion is dilutive.

The following table presents the calculation of basic and diluted net loss per share of common stock for the three and six months ended June 30, 2012 and 2011:


	Three Months Ended						Six Months Ended
*(in thousands, except for share and per share amounts)*	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Numerator:
Net loss	$	(8,007	)	$	(1,341	)	$	(15,969	)	$	(1,205	)

Denominator:
Weighted average shares of common stock outstanding, basic		28,226,743			28,103,441			28,226,743			28,102,774
Stock options and restricted stock units related to the issuance of common stock		—			—			—			—


Weighted average shares of common stock outstanding, diluted		28,226,743			28,103,441			28,226,743			28,102,774

Net loss per share:
Basic	$	(0.28	)	$	(0.05	)	$	(0.57	)	$	(0.04	)

Diluted	$	(0.28	)	$	(0.05	)	$	(0.57	)	$	(0.04	)


Anti-dilutive securities not included in diluted net loss per share calculation:
Options to purchase common stock and restricted stock units		5,199,705			3,974,965			5,201,746			3,560,885

Marketable Securities

6 Months Ended

Jun. 30, 2012

Marketable Securities [Abstract]

Marketable Securities

4.	Marketable Securities

The following is a summary of the Company’s available-for-sale marketable securities as of June 30, 2012:


*(in thousands)*	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Current:
U.S. Treasury and government agencies	$	21,394	$	1	$	(1	)	$	21,394
U.S. corporate debt		28,915		23		(19	)		28,919

	$	50,309	$	24	$	(20	)	$	50,313

The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2011:


*(in thousands)*	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Current:
U.S. Treasury and government agencies	$	23,747	$	10	$	(2	)	$	23,755
U.S. corporate debt		37,205		8		(7	)		37,206

	$	60,952	$	18	$	(9	)	$	60,961

Non-current:

U.S. Treasury and government agencies	$	19,000	$	12	$	—		$	19,012

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Prepaid Expenses, Deposits and Other Current Assets

6 Months Ended

Jun. 30, 2012

Prepaid Expenses, Deposits and Other Current Assets [Abstract]

Prepaid Expenses, Deposits and Other Current Assets

5.	Prepaid Expenses, Deposits and Other Current Assets

The following is a summary of the Company’s prepaid expenses, deposits and other current assets, as of June 30, 2012 and December 31, 2011:


*(in thousands)*	June 30, 2012		December 31, 2011
Prepaid insurance	$	486	$	165
Other prepaid expenses and vendor advances		2,530		2,474
Accrued interest income		381		244
Other receivable		26		116

Total prepaid expenses, deposits and other current assets	$	3,423	$	2,999

Property and Equipment, Net

6 Months Ended

Jun. 30, 2012

Property and Equipment, Net [Abstract]

Property and Equipment, Net

6.	Property and Equipment, Net

The following is a summary of the Company’s property and equipment-at cost, as of June 30, 2012 and December 31, 2011:


*(in thousands)*	Estimated Useful Life (Years)	June 30, 2012			December 31, 2011
Laboratory equipment	5	$	1,273		$	1,273
Computer equipment	3		1,236			1,105
Furniture and fixtures	7		853			700
Leasehold improvements	10-11		1,825			844
Leasehold improvements-in-progress	N/A		—			116

			5,187			4,038
Less—accumulated depreciation and amortization			(2,654	)		(3,074	)

		$	2,533		$	964

Depreciation expense for the six months ended June 30, 2012 and 2011 was $0.4 million and $0.1 million, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Intangible Asset, Net

6 Months Ended

Jun. 30, 2012

Intangible Asset, Net [Abstract]

Intangible Asset, Net

7.	Intangible Asset, Net

The following is a summary of the Company’s intangible asset as of June 30, 2012:


			June 30, 2012
*(in thousands)*	Estimated Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Fanapt®		8	$	12,000	$	4,714	$	7,286

The following is a summary of the Company’s intangible asset as of December 31, 2011:


			December 31, 2011
*(in thousands)*	Estimated Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Fanapt®		8	$	12,000	$	3,973	$	8,027

On May 6, 2009, the Company announced that the FDA had approved the NDA for Fanapt®. As a result of the FDA’s approval of the NDA for Fanapt®, the Company met a milestone under its original sublicense agreement with Novartis which required the Company to make a payment of $12.0 million to Novartis. The $12.0 million is being amortized on a straight-line basis over the remaining life of the U.S. patent for Fanapt®, which the Company expects to last until May 2017. This includes the Hatch-Waxman extension that provides patent protection for drug compounds for a period of five years to compensate for time spent in development and a six-month pediatric term extension. Fanapt® has qualified for the full five-year patent term Hatch-Waxman extension and the Company expects that Fanapt® will be eligible for six months of pediatric exclusivity. This term is the Company’s best estimate of the life of the patent; if, however, the pediatric extension is not granted, the intangible asset will be amortized over a shorter period.

Intangible assets are amortized over their estimated useful economic life using the straight-line method. Amortization expense was $0.7 million for each of the six months ended June 30, 2012 and 2011. The Company capitalized and began amortizing the asset immediately following the FDA approval of the NDA for Fanapt®.

Accrued Liabilities

6 Months Ended

Jun. 30, 2012

Accrued Liabilities [Abstract]

Accrued Liabilities

8.	Accrued Liabilities

The following is a summary of the Company’s accrued liabilities as of June 30, 2012 and December 31, 2011:


*(in thousands)*	June 30, 2012		December 31, 2011
Accrued research and development expenses	$	3,723	$	1,967
Accrued consulting and other professional fees		259		317
Employee benefits		744		100
Accrued lease termination penalty (refer to footnote 10)		—		740
Accrued lease exit liability (refer to footnote 10)		1,013		—
Other accrued liabilities		169		257

Total accrued liabilities, current	$	5,908	$	3,381

Revenue Recognition

6 Months Ended

Jun. 30, 2012

Revenue Recognition [Abstract]

Revenue Recognition

9.	Revenue Recognition

The following is a summary of the Company’s revenues:


*(in thousands)*	December 31, 2011 Deferred Revenue		Revenue Recognized		June 30, 2012 Deferred Revenue
Revenues:
Licensing agreement	$	143,853	$	13,284	$	130,569
Royalty revenue		—		3,235		—

Total	$	143,853	$	16,519	$	130,569

Vanda entered into an amended and restated sublicense agreement with Novartis on October 12, 2009, pursuant to which Novartis has the right to commercialize and develop Fanapt® in the U.S. and Canada. Under the amended and restated sublicense agreement, Vanda received an upfront payment of $200.0 million in December of 2009. Revenue related to the upfront payment will be recognized ratably from the date the amended and restated sublicense agreement became effective (November 27, 2009) through the expected life of the U.S. patent for Fanapt® (May 2017). This includes the Hatch-Waxman extension that provides patent protection for drug compounds for a period of five years to compensate for time spent in development and a six-month pediatric term extension. Fanapt® has qualified for the full five-year patent term Hatch-Waxman extension and the Company expects that Fanapt® will be eligible for six months of pediatric exclusivity. This term is the Company’s best estimate of the life of the patent. For the six months ended June 30, 2012, the Company recognized $13.3 million of revenue from the amended and restated sublicense agreement. Vanda recognized royalty revenue of $3.2 million for the six months ended June 30, 2012. Royalty revenue is based on a percentage of the quarterly net sales of Fanapt® sold in the U.S. and Canada by Novartis and is recorded when realizable and earned.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

10.

Commitments and Contingencies

The following is a summary of the Company’s long-term contractual cash obligations as of June 30, 2012:


	Cash payments due by period
*(in thousands)*	Total		July to December 2012		2013		2014		2015		2016		After 2016
Operating leases	$	11,550	$	—	$	859	$	1,052	$	1,079	$	1,106	$	7,454
Lease exit liability		1,013		456		557		—		—		—		—
Consulting fees		1,000		1,000		—		—		—		—		—

Total	$	13,563	$	1,456	$	1,416	$	1,052	$	1,079	$	1,106	$	7,454

Operating leases

The Company’s commitments related to operating leases shown above consist of payments relating to a real estate lease for its current headquarters located in Washington, D.C. On July 25, 2011, the Company entered into a lease with Square 54 Office Owner LLC (the Landlord) for Vanda’s current headquarters, consisting of 21,400 square feet at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. (the Lease). Under the Lease, which has an 11 year term commencing on April 1, 2012, the Company will pay $1.6 million in annual rent over the term of the Lease; however, rent will be abated for the first 12 months. The Landlord will provide the Company with an allowance of $1.9 million for leasehold improvements. As of June 30, 2012, the Company had received $1.8 million of the allowance. Subject to the prior rights of other tenants in the building, the Company will have the right to renew the Lease for five years following the expiration of its original term. The Company will also have the right to sublease or assign all or a portion of the premises, subject to standard conditions. The Lease may be terminated early by the Company or the Landlord upon certain conditions. The Company paid a security deposit of $0.5 million upon execution of the Lease.

As a result of the Company’s relocation from Rockville, Maryland to Washington, D.C., the Company provided notice to its previous landlord that it was terminating its previous lease effective June 30, 2013. As a result of terminating this lease, the Company recognized expenses of $0.7 million in the fourth quarter of 2011 related to a lease termination penalty. Of this amount, $0.6 million was presented as research and development expense on the consolidated statement of operations for the year ended December 31, 2011 and $0.1 million was presented as general and administrative expense on the consolidated statement of operations for the year ended December 31, 2011. In the first quarter of 2012, the Company ceased using the Rockville, Maryland location and, as a result, recognized additional rent expense of $0.8 million. This $0.8 million consisted of a lease exit liability of $1.3 million for the remaining payments required under the lease and the reversal of the deferred rent balance of $0.5 million related to the Rockville, Maryland lease. The remaining costs associated with the lease exit liability are included in the table above. Of the $0.8 million, $0.6 million was presented as research and development expense on the consolidated statement of operations for the quarter ended March 31, 2012 and $0.2 million was presented as general and administrative expense on the consolidated statement of operations for the quarter ended March 31, 2012.

The following is a summary of the Company’s lease exit activity:


(in thousands)	Balance At Beginning Of Period		Costs Incurred and Charged to Expense		Costs Paid or Otherwise Settled		Adjustments			Balance At End Of Period
Period ended:
December 31, 2011	$	—	$	740	$	—	$	—		$	740
March 31, 2012	$	740	$	1,285	$	—	$	—		$	2,025
June 30, 2012	$	2,025	$	—	$	958	$	(54	)	$	1,013

Rent expense for the six months ended June 30, 2012 and 2011 was $1.6 million and $0.5 million, respectively.

Consulting fees

The Company has engaged a regulatory consultant to assist in the Company’s efforts to prepare, file and obtain FDA approval of a NDA for tasimelteon. The initial term of the engagement is for the 15-month period from October 2011 to December 2012. The Company is obligated to pay the consultant $1.0 million between July 2012 and December 2012. As part of this engagement, and subject to certain conditions, the Company will be obligated to make milestone payments in the aggregate amount of $2.8 million upon the achievement of certain milestones, including $2.0 million in the event that a tasimelteon NDA is approved by the FDA. In addition to these fees and milestone payments, the Company is obligated to reimburse the consultant for its ordinary and necessary business expenses incurred in connection with its engagement. The Company may terminate the engagement at any time upon prior notice; however, subject to certain conditions, the Company will remain obligated to make some or all of the milestone payments if the milestones are achieved following such termination.

Guarantees and indemnifications

The Company has entered into a number of standard intellectual property indemnification agreements in the ordinary course of its business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with any U.S. patent or any copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The term of these indemnification agreements is generally perpetual from the date of execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company also indemnifies its officers and directors for certain events or occurrences, subject to certain conditions. Since inception, the Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. The Company believes that the fair value of the indemnification agreements is minimal, and accordingly the Company has not recognized any liabilities relating to these agreements as of June 30, 2012.

License agreements

The Company’s rights to develop and commercialize its products are subject to the terms and conditions of licenses granted to the Company by other pharmaceutical companies.

Fanapt®. The Company acquired exclusive worldwide rights to patents and patent applications for Fanapt® (iloperidone) in 2004 through a sublicense agreement with Novartis. A predecessor company of sanofi-aventis, Hoechst Marion Roussel, Inc. (HMRI), discovered Fanapt® and completed early clinical work on the compound. In 1996, following a review of its product portfolio, HMRI licensed its rights to the Fanapt® patents and patent applications to Titan Pharmaceuticals, Inc. (Titan) on an exclusive basis. In 1997, soon after it had acquired its rights, Titan sublicensed its rights to Fanapt® on an exclusive basis to Novartis. In June 2004, the Company acquired exclusive worldwide rights to these patents and patent applications, as well as certain Novartis patents and patent applications to develop and commercialize Fanapt®, through a sublicense agreement with Novartis. In partial consideration for this sublicense, the Company paid Novartis an initial license fee of $0.5 million and was obligated to make future milestone payments to Novartis of less than $100.0 million in the aggregate (the majority of which were tied to sales milestones), as well as royalty payments to Novartis at a rate which, as a percentage of net sales, was in the mid-twenties. In November 2007, the Company met a milestone under this sublicense agreement relating to the acceptance of its filing of the NDA for Fanapt® for the treatment of schizophrenia and made a milestone payment of $5.0 million to Novartis. As a result of the FDA’s approval of the NDA for Fanapt® in May 2009, the Company met an additional milestone under this sublicense agreement, which required the Company to make a payment of $12.0 million to Novartis.

On October 12, 2009, Vanda entered into an amended and restated sublicense agreement with Novartis, which amended and restated the June 2004 sublicense agreement. Pursuant to the amended and restated sublicense agreement, Novartis has exclusive commercialization rights to all formulations of Fanapt® in the U.S. and Canada. Novartis began selling Fanapt® in the U.S. during the first quarter of 2010. Novartis is responsible for the further clinical development activities in the U.S. and Canada, including the development of a long-acting injectable (or depot) formulation of Fanapt®. Pursuant to the amended and restated sublicense agreement, Vanda received an upfront payment of $200.0 million and Vanda is eligible for additional payments totaling up to $265.0 million upon the achievement of certain commercial and development milestones for Fanapt® in the U.S. and Canada. Vanda also receives royalties, which, as a percentage of net sales, are in the low double-digits, on net sales of Fanapt® in the U.S. and Canada. In addition, Vanda is no longer required to make any future milestone payments with respect to sales of Fanapt® or any future royalty payments with respect to sales of Fanapt® in the U.S. and Canada. Vanda retains exclusive rights to Fanapt® outside the U.S. and Canada and Vanda has exclusive rights to use any of Novartis’ data for Fanapt® for developing and commercializing Fanapt® outside the U.S. and Canada. At Novartis’ option, Vanda will enter into good faith discussions with Novartis relating to the co-commercialization of Fanapt® outside of the U.S. and Canada or, alternatively, Novartis will receive a royalty on net sales of Fanapt® outside of the U.S. and Canada. Novartis has chosen not to co-commercialize Fanapt® with Vanda in Europe and certain other countries and will instead receive a royalty on net sales in those countries. These include, but are not limited to, the countries in the European Union as well as Switzerland, Norway, Liechtenstein and Iceland. On July 22, 2011, the EMA notified Vanda that it had accepted for evaluation the MAA for oral iloperidone tablets. The review of Vanda’s MAA for oral iloperidone tablets in the European Union is ongoing. In July 2012, the Committee for Medicinal Products for Human Use (CHMP) provided Vanda with the Day 180 List of Outstanding Issues. Vanda expects to be granted an extension to reply by mid-October 2012 and will prepare to participate in an oral hearing in November 2012 as it continues to evaluate its European strategy. Vanda has entered into agreements with the following partners for the commercialization of Fanapt® in the countries set forth below:


Country		Partner
Mexico		Probiomed S.A. de C.V.
Argentina		Biotoscana Farma S.A.
Israel		Megapharm Ltd.

Vanda may lose its rights to develop and commercialize Fanapt® outside the U.S. and Canada if it fails to comply with certain requirements in the amended and restated sublicense agreement regarding its financial condition, or if Vanda fails to comply with certain diligence obligations regarding its development or commercialization activities or if Vanda otherwise breaches the agreement and fails to cure such breach. Vanda’s rights to develop and commercialize Fanapt® outside the U.S. and Canada may be impaired if it does not cure breaches by Novartis of similar obligations contained its sublicense agreement with Titan for Fanapt®. In addition, if Novartis breaches the amended and restated sublicense agreement with respect to its commercialization activities in the U.S. or Canada, Vanda may terminate Novartis’ commercialization rights in the applicable country and Vanda would no longer receive royalty payments from Novartis in connection with such country in the event of such termination.

Tasimelteon. In February 2004, the Company entered into a license agreement with Bristol-Myers Squibb (BMS) under which the Company received an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize tasimelteon. In partial consideration for the license, the Company paid BMS an initial license fee of $0.5 million. The Company is also obligated to make future milestone payments to BMS of less than $40.0 million in the aggregate (the majority of which are tied to sales milestones) as well as royalty payments based on the net sales of tasimelteon at a rate which, as a percentage of net sales, is in the low teens. The Company made a milestone payment to BMS of $1.0 million under this license agreement in 2006 relating to the initiation of its first Phase III clinical trial for tasimelteon. The Company is also obligated under this agreement to pay BMS a percentage of any sublicense fees, upfront payments and milestone and other payments (excluding royalties) that the Company receives from a third party in connection with any sublicensing arrangement, at a rate which is in the mid-twenties. The Company has agreed with BMS in the license agreement for tasimelteon to use commercially reasonable efforts to develop and commercialize tasimelteon and to meet certain milestones in initiating and completing certain clinical work. The license agreement with BMS was amended in May 2012 to, among other things, extend the deadline by which the Company must enter into a development and commercialization agreement with a third party for tasimelteon until the earliest of: (i) the date mutually agreed upon by the Company and BMS following the provision by the Company to BMS of a full written report of the Phase III clinical studies on which the Company intends to rely for filing for marketing authorization for tasimelteon in its first major market country (Phase III report); (ii) the date of the acceptance by a regulatory authority of the filing by the Company for marketing authorization for tasimelteon in a major market country following the provision by the Company to BMS of the Phase III report; or (iii) December 31, 2013.

If the Company has not entered into such a development and commercialization agreement with respect to certain major market countries by the foregoing deadline, then BMS will have the option to exclusively develop and commercialize tasimelteon on its own in those countries not covered by such an agreement on pre-determined financial terms, including milestone and royalty payments. In addition to the foregoing, pursuant to the May 2012 amendment, Vanda’s deadline for filing a NDA for tasimelteon was extended until January 1, 2014.

Either party may terminate the tasimelteon license agreement under certain circumstances, including a material breach of the agreement by the other. In the event that BMS has not exercised its option to reacquire the rights to tasimelteon and the Company terminates the license, or if BMS terminates the license due to the Company’s breach, all rights licensed and developed by the Company under this agreement will revert or otherwise be licensed back to BMS on an exclusive basis.

VLY-686. In April 2012, the Company entered into a license agreement with Eli Lilly and Company (Lilly) pursuant to which the Company acquired an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize a neurokinin-1 receptor (NK-1R) antagonist, VLY-686, for all human indications. The patent describing VLY-686 as a new chemical entity expires in April 2023, except in the U.S., where it expires in June 2024 absent any applicable patent term adjustments.

Pursuant to the agreement, the Company agreed to pay an initial license fee of $1.0 million and will be responsible for all development costs. The initial license fee was recognized as an expense in the second quarter of 2012 and presented as research and development expense on the consolidated statement of operations for the quarter ended June 30, 2012. Lilly is also eligible to receive additional payments based upon achievement of specified development and commercialization milestones as well as tiered-royalties on net sales at percentage rates up to the low double digits. These milestones include $4.0 million for pre-NDA approval milestones and up to $95.0 million for future regulatory approval and sales milestones. Vanda has agreed to use its commercially reasonable efforts to develop and commercialize VLY-686.

Either party may terminate the agreement under certain circumstances, including a material breach of the agreement by the other. In the event that Vanda terminates the agreement, or if Lilly terminates due to Vanda’s breach, all rights licensed and developed by Vanda under the agreement will revert or otherwise be licensed back to Lilly on an exclusive basis.

Future license payments. No amounts were recorded as liabilities nor were any contractual obligations relating to the license agreements included in the condensed consolidated financial statements as of June 30, 2012, since the amounts, timing and likelihood of these future payments are unknown and will depend on the successful outcome of future clinical trials, regulatory filings, favorable FDA regulatory approvals, growth in product sales and other factors.

Research and development and marketing agreements

In the course of its business, the Company regularly enters into agreements with clinical organizations to provide services relating to clinical development and clinical manufacturing activities under fee service arrangements. The Company’s current agreements for clinical services may be terminated on no more than 60 days notice without incurring additional charges, other than charges for work completed but not paid for through the effective date of termination and other costs incurred by the Company’s contractors in closing out work in progress as of the effective date of termination.

- Definition

The entire disclosure for commitments and contingencies.

+ References

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-Publisher FASB
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

11.

Income Taxes

The Company did not record any tax provision or benefit for the six months ended June 30, 2012. For the six months ended June 30, 2011, the Company recorded a tax benefit of $0.05 million. As of June 30, 2012, the Company has provided a valuation allowance for the full amount of its net deferred tax asset since realization of any future benefit from deductible temporary differences and net operating losses could not be sufficiently assured. As of June 30, 2011, the Company reflected a net deferred tax asset of $1.8 million associated with the Company’s ability to carryback taxable losses.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

12.

Fair Value Measurements

FASB guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

•

Level 1 — defined as observable inputs such as quoted prices in active markets

•

Level 2 — defined as inputs other than quoted prices in active markets that are either directly or indirectly observable

•

Level 3 — defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions

Marketable securities classified in Level 1 and Level 2 at June 30, 2012 and December 31, 2011 include available-for-sale marketable securities. The valuation of Level 1 instruments is determined using a market approach, and is based upon unadjusted quoted prices for identical assets in active markets. The valuation of investments classified in Level 2 also is determined using a market approach based upon quoted prices for similar assets in active markets, or other inputs that are observable for substantially the full term of the financial instrument. Level 2 securities include commercial paper, corporate notes and government agency notes that use as their basis readily observable market parameters.

As of June 30, 2012, the Company held certain assets that are required to be measured at fair value on a recurring basis.


	Fair Value Measurements at Reporting Date Using
*(in thousands)*	June 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Description:
Available-for-sale securities	$	50,313	$	21,394	$	28,919	$	—

As of December 31, 2011, the Company held certain assets that are required to be measured at fair value on a recurring basis.


	Fair Value Measurements at Reporting Date Using
*(in thousands)*	December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Description:
Available-for-sale securities	$	79,973	$	42,767	$	37,206	$	—

The Company also has financial assets and liabilities, not required to be measured at fair value on a recurring basis, which primarily consist of cash and cash equivalents, accounts receivable, restricted cash and accounts payable, the carrying value of which materially 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2012
Summary of Significant Accounting Policies [Abstract]
Use of estimates	*Use of estimates* The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Cash and cash equivalents	*Cash and cash equivalents* For purposes of the condensed consolidated balance sheets and condensed consolidated statements of cash flows, cash equivalents represent highly-liquid investments with a maturity date of three months or less at the date of purchase.
Marketable securities	*Marketable securities* The Company classifies all of its marketable securities as available-for-sale securities. The Company’s investment policy requires the selection of high-quality issuers, with bond ratings of AAA to A1+/P1. Available-for-sale securities are carried at fair market value, with unrealized gains and losses reported as a component of stockholders’ equity in accumulated other comprehensive income/loss. Interest and dividend income is recorded when earned and included in interest income. Premiums and discounts on marketable securities are amortized and accreted, respectively, to maturity and included in interest income. The Company uses the specific identification method in computing realized gains and losses on the sale of investments, which would be included in the condensed consolidated statements of operations when generated. Marketable securities with a maturity of more than one year as of the balance sheet date, and which the Company does not intend to sell within the next twelve months are classified as non-current. All other marketable securities are classified as current.
Inventory	*Inventory* The Company values its inventory at acquisition cost following the first-in first-out method. The Company analyzes its inventory levels quarterly and writes down inventory that has become obsolete, has a cost basis in excess of its expected net realizable value or inventory quantities in excess of expected requirements. Expired inventory is disposed of and the related costs are written off to cost of sales.
Intangible asset, net	*Intangible asset, net* Costs incurred for products or product candidates not yet approved by the FDA and for which no alternative future use exists are recorded as expense. In the event a product or product candidate has been approved by the FDA or an alternative future use exists for a product or product candidate, patent and license costs are capitalized and amortized over the expected patent life of the related product or product candidate. Milestone payments to the Company’s partners are recognized when it is deemed probable that the milestone event will occur. As a result of the FDA’s approval of the NDA for Fanapt® in May 2009, the Company met a milestone under its original sublicense agreement with Novartis which required the Company to make a payment of $12.0 million to Novartis. The $12.0 million is being amortized on a straight-line basis over the remaining life of the U.S. patent for Fanapt®, which the Company expects to last until May 2017. This includes the Hatch-Waxman extension that extends patent protection for drug compounds for a period of up to five years to compensate for time spent in development and a six-month pediatric term extension. Fanapt® has qualified for the full five-year patent term Hatch-Waxman extension and the Company expects that Fanapt® will be eligible for six months of pediatric exclusivity. This term is the Company’s best estimate of the life of the patent; if, however, the pediatric extension is not granted, the intangible asset will be amortized over a shorter period. The carrying values of intangible assets are periodically reviewed to determine if the facts and circumstances suggest that a potential impairment may have occurred. The Company had no impairments of its intangible assets for the six months ended June 30, 2012.
Property and equipment	*Property and equipment* Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Amortization of leasehold improvements is provided on a straight-line basis over the shorter of their estimated useful life or the lease term. The costs of additions and improvements are capitalized, and repairs and maintenance costs are charged to operations in the period incurred. Upon retirement or disposition of property and equipment, the cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in the Company’s statement of operations for that period.
Revenue Recognition	*Revenue Recognition* The Company’s revenues are derived primarily from the amended and restated sublicense agreement with Novartis and include an upfront payment, product sales and future milestone and royalty payments. Revenue is considered both realizable and earned when each one of the following four conditions is met: (1) persuasive evidence of an arrangement exists, (2) the arrangement fee is fixed or determinable, (3) delivery or performance has occurred and (4) collectability is reasonably assured. Pursuant to the amended and restated sublicense agreement, Novartis has the right to commercialize and develop Fanapt® in the U.S. and Canada. Under the agreement, the Company received an upfront payment of $200.0 million in December of 2009. The Company and Novartis established a Joint Steering Committee (JSC) following the effective date of the amended and restated sublicense agreement. The Company concluded that the JSC constitutes a deliverable under the amended and restated sublicense agreement and that revenue related to the upfront payment will be recognized ratably over the term of the JSC; however, the delivery or performance has no term as the exact length of the JSC is undefined. As a result, the Company deems the performance period of the JSC to be the life of the U.S. patent of Fanapt®, which the Company expects to last until May 2017. This includes the Hatch-Waxman extension that provides patent protection for drug compounds for a period of five years to compensate for time spent in development and a six-month pediatric term extension. Fanapt® has qualified for the full five-year patent term Hatch-Waxman extension and the Company expects that Fanapt® will be eligible for six months of pediatric exclusivity. This term is the Company’s best estimate of the life of the patent. Revenue related to the upfront payment will be recognized ratably from the date the amended and restated sublicense agreement became effective (November 27, 2009) through the expected life of the U.S. patent for Fanapt® (May 2017). The Company recognizes revenue from Fanapt® royalties and commercial and development milestones from Novartis when realizable and earned.
Concentrations of credit risk	*Concentrations of credit risk* Financial instruments which potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and marketable securities. The Company places its cash, cash equivalents and marketable securities with what the Company believes to be highly-rated financial institutions. At June 30, 2012, the Company maintained all of its cash, cash equivalents and marketable securities in two financial institutions. Deposits held with these institutions may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and the Company believes there is minimal risk of losses on such balances.
Accrued expenses	*Accrued expenses* The Company’s management is required to estimate accrued expenses as part of the process of preparing financial statements. The estimation of accrued expenses involves identifying services that have been performed on the Company’s behalf, and then estimating the level of service performed and the associated cost incurred for such services as of each balance sheet date in the financial statements. Accrued expenses include professional service fees, such as lawyers and accountants, contract service fees, such as those under contracts with clinical monitors, data management organizations and investigators in conjunction with clinical trials, fees to contract manufacturers in conjunction with the production of clinical materials, and fees for marketing and other commercialization activities. Pursuant to management’s assessment of the services that have been performed on clinical trials and other contracts, the Company recognizes these expenses as the services are provided. Such management assessments include, but are not limited to: (1) an evaluation by the project manager of the work that has been completed during the period, (2) measurement of progress prepared internally and/or provided by the third-party service provider, (3) analyses of data that justify the progress, and (4) the Company’s management’s judgment. In the event that the Company does not identify certain costs that have begun to be incurred or the Company under- or over-estimates the level of services performed or the costs of such services, the Company’s reported expenses for such period would be too low or too high.
Research and development expenses	*Research and development expenses* The Company’s research and development expenses consist primarily of fees for services provided by third parties in connection with the clinical trials, costs of contract manufacturing services, milestone license fees, costs of materials used in clinical trials and research and development, costs for regulatory consultants and filings, depreciation of capital resources used to develop products, related facilities costs, and salaries, other employee related costs and stock-based compensation for the Company’s research and development personnel. The Company expenses research and development costs as they are incurred for compounds in the development stage, including certain payments made under the license agreements prior to FDA approval. Prior to FDA approval, all Fanapt® manufacturing-related and milestone license payments were included in research and development expenses. Subsequent to FDA approval of Fanapt®, manufacturing and milestone license payments related to this product have been capitalized. Costs related to the acquisition of intellectual property have been expensed as incurred since the underlying technology associated with these acquisitions was developed in connection with the Company’s research and development efforts and has no alternative future use. Milestone license payments are accrued in accordance with the FASB guidance on accounting for contingencies which requires that milestone payments be accrued when it is deemed probable that the milestone event will be achieved.
General and administrative expenses	*General and administrative expenses* General and administrative expenses consist primarily of salaries, other employee related costs and stock-based compensation for personnel serving executive, business development, marketing, finance, accounting, information technology, marketing and human resource functions, facility costs not otherwise included in research and development expenses, insurance costs and professional fees for legal, accounting and other professional services. General and administrative expenses also include third party expenses incurred to support business development, marketing and other business activities related to Fanapt®.
Employee stock-based compensation	*Employee stock-based compensation* The Company accounts for its stock-based compensation expense in accordance with the FASB guidance on share-based payments. Accordingly, compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The Company generally recognizes the expense over the award’s vesting period.
Income taxes	*Income taxes* The Company accounts for income taxes in accordance with the FASB provisions on accounting for income taxes, which requires companies to account for deferred income taxes using the asset and liability method. Under the asset and liability method, current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax rate changes are reflected in income during the period such changes are enacted. Changes in ownership may limit the amount of net operating loss carryforwards that can be utilized in the future to offset taxable income.
Recent Accounting Pronouncements	*Recent Accounting Pronouncements* In June 2011, the FASB issued an Accounting Standards Update which eliminates the option to report other comprehensive income and its components in the statement of changes in stockholders’ equity. It requires an entity to present total comprehensive income, which includes the components of net income and the components of other comprehensive income either in a single continuous statement or in two separate but consecutive statements. This pronouncement is effective for financial statements issued for annual and interim periods within the first annual period beginning after December 15, 2011 and must be applied retroactively. The pronouncement, adopted by the Company in the first quarter of 2012, did not have a material impact on the Company’s financial position or results of operations.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total employee stock-based compensation expense


	Three Months Ended				Six Months Ended
*(in thousands)*	June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
Research and development	$	520	$	618	$	1,113	$	1,338
General and administrative		668		696		1,466		1,574

Stock-based compensation expense	$	1,188	$	1,314	$	2,579	$	2,912

Black-Scholes-Merton option pricing model for employee and director stock options granted


	Six Months Ended
	June 30, 2012			June 30, 2011
Expected dividend yield		0	%		0	%
Weighted average expected volatility		68	%		73	%
Weighted average expected term (years)		6.03			6.03
Weighted average risk-free rate		1.08	%		2.50	%

Summary of RSU activity


*(in thousands, except for share and per share amounts)*	Number of Shares		Weighted Average Price/Share		Aggregate Intrinsic Value
Unvested at December 31, 2011		522,346	$	7.43	$	2,486
Granted		11,500	$	4.33
Vested		—		—
Cancelled		6,032	$	6.72

Unvested at June 30, 2012		527,814	$	7.37	$	2,322

2004 Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of option activity


*(in thousands, except for share and per share amounts)*	Number of Shares		Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2011		677,145	$	1.78		3.78	$	2,016
Exercised		—		—
Forfeited		—		—
Cancelled		—		—

Outstanding at June 30, 2012		677,145	$	1.78		3.28	$	1,847

Exercisable at June 30, 2012		677,145	$	1.78		3.28	$	1,847

2006 Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of option activity


*(in thousands, except for share and per share amounts)*	Number of Shares		Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2011		4,254,681	$	12.16		7.65	$	396
Granted		148,000	$	4.50
Exercised		—		—
Forfeited		69,334	$	11.07
Cancelled		25,541	$	6.85


Outstanding at June 30, 2012		4,307,806	$	11.95		7.24	$	388

Exercisable at June 30, 2012		2,655,213	$	14.90		6.31	$	332

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2012

Earnings per Share [Abstract]

Basic and diluted net loss per share of common stock


	Three Months Ended						Six Months Ended
*(in thousands, except for share and per share amounts)*	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Numerator:
Net loss	$	(8,007	)	$	(1,341	)	$	(15,969	)	$	(1,205	)

Denominator:
Weighted average shares of common stock outstanding, basic		28,226,743			28,103,441			28,226,743			28,102,774
Stock options and restricted stock units related to the issuance of common stock		—			—			—			—


Weighted average shares of common stock outstanding, diluted		28,226,743			28,103,441			28,226,743			28,102,774

Net loss per share:
Basic	$	(0.28	)	$	(0.05	)	$	(0.57	)	$	(0.04	)

Diluted	$	(0.28	)	$	(0.05	)	$	(0.57	)	$	(0.04	)


Anti-dilutive securities not included in diluted net loss per share calculation:
Options to purchase common stock and restricted stock units		5,199,705			3,974,965			5,201,746			3,560,885

Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2012

Marketable Securities [Abstract]

Summary of the available-for-sale marketable securities


*(in thousands)*	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Current:
U.S. Treasury and government agencies	$	21,394	$	1	$	(1	)	$	21,394
U.S. corporate debt		28,915		23		(19	)		28,919

	$	50,309	$	24	$	(20	)	$	50,313

The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2011:


*(in thousands)*	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Current:
U.S. Treasury and government agencies	$	23,747	$	10	$	(2	)	$	23,755
U.S. corporate debt		37,205		8		(7	)		37,206

	$	60,952	$	18	$	(9	)	$	60,961

Non-current:

U.S. Treasury and government agencies	$	19,000	$	12	$	—		$	19,012

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
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-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
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-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 17
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 21
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Prepaid Expenses, Deposits and Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2012

Prepaid Expenses, Deposits and Other Current Assets [Abstract]

Summary of the prepaid expenses, deposits and other current assets


*(in thousands)*	June 30, 2012		December 31, 2011
Prepaid insurance	$	486	$	165
Other prepaid expenses and vendor advances		2,530		2,474
Accrued interest income		381		244
Other receivable		26		116

Total prepaid expenses, deposits and other current assets	$	3,423	$	2,999

Property and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2012

Property and Equipment, Net [Abstract]

Summary of property and equipment-at cost


*(in thousands)*	Estimated Useful Life (Years)	June 30, 2012			December 31, 2011
Laboratory equipment	5	$	1,273		$	1,273
Computer equipment	3		1,236			1,105
Furniture and fixtures	7		853			700
Leasehold improvements	10-11		1,825			844
Leasehold improvements-in-progress	N/A		—			116

			5,187			4,038
Less—accumulated depreciation and amortization			(2,654	)		(3,074	)

		$	2,533		$	964

Intangible Asset, Net (Tables)

6 Months Ended

Jun. 30, 2012

Intangible Asset, Net [Abstract]

Intangible asset


			June 30, 2012
*(in thousands)*	Estimated Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Fanapt®		8	$	12,000	$	4,714	$	7,286


			December 31, 2011
*(in thousands)*	Estimated Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Fanapt®		8	$	12,000	$	3,973	$	8,027

Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Accrued Liabilities [Abstract]

Summary of accrued liabilities


*(in thousands)*	June 30, 2012		December 31, 2011
Accrued research and development expenses	$	3,723	$	1,967
Accrued consulting and other professional fees		259		317
Employee benefits		744		100
Accrued lease termination penalty (refer to footnote 10)		—		740
Accrued lease exit liability (refer to footnote 10)		1,013		—
Other accrued liabilities		169		257

Total accrued liabilities, current	$	5,908	$	3,381

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2012

Revenue Recognition [Abstract]

Company's revenues


*(in thousands)*	December 31, 2011 Deferred Revenue		Revenue Recognized		June 30, 2012 Deferred Revenue
Revenues:
Licensing agreement	$	143,853	$	13,284	$	130,569
Royalty revenue		—		3,235		—

Total	$	143,853	$	16,519	$	130,569

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

Summary of long-term contractual cash obligations


	Cash payments due by period
*(in thousands)*	Total		July to December 2012		2013		2014		2015		2016		After 2016
Operating leases	$	11,550	$	—	$	859	$	1,052	$	1,079	$	1,106	$	7,454
Lease exit liability		1,013		456		557		—		—		—		—
Consulting fees		1,000		1,000		—		—		—		—		—

Total	$	13,563	$	1,456	$	1,416	$	1,052	$	1,079	$	1,106	$	7,454

Summary of the Company's lease exit activity


(in thousands)	Balance At Beginning Of Period		Costs Incurred and Charged to Expense		Costs Paid or Otherwise Settled		Adjustments			Balance At End Of Period
Period ended:
December 31, 2011	$	—	$	740	$	—	$	—		$	740
March 31, 2012	$	740	$	1,285	$	—	$	—		$	2,025
June 30, 2012	$	2,025	$	—	$	958	$	(54	)	$	1,013

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

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

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Assets measured at fair value on recurring basis


	Fair Value Measurements at Reporting Date Using
*(in thousands)*	December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Description:
Available-for-sale securities	$	79,973	$	42,767	$	37,206	$	—


	Fair Value Measurements at Reporting Date Using
*(in thousands)*	June 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Description:
Available-for-sale securities	$	50,313	$	21,394	$	28,919	$	—

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Business Organization and Presentation (Details) $ in Millions	6 Months Ended
	Jun. 30, 2012 USD ($) Patient Trial	Dec. 31, 2009 USD ($)
Business Organization and Presentation (Additional Textual) [Abstract]
Upfront payment received under Fanapt sublicense agreement \| $		$ 200.0
Potential milestone payments to be received from Novartis for Fanapt \| $	$ 265.0	$ 265.0
Maximum Number of Patients to be designated Orphan Drug designation	200,000
Period of Exclusivity for Orphan Drugs upon Market Approval	7 years
Number of clinical trials for N24ND program \| Trial	4
First clinical trial [Member]
Business Organization and Presentation (Textual) [Abstract]
Maximum number of patients enrolled	84
Duration of Treatment Period	6 months
Second clinical trial [Member]
Business Organization and Presentation (Textual) [Abstract]
Maximum number of patients enrolled	140
Duration of Treatment Period	1 year
Third clinical trial [Member]
Business Organization and Presentation (Textual) [Abstract]
Maximum number of patients enrolled	20
Duration of Treatment Period	84 days
Fourth clinical trial [Member]
Business Organization and Presentation (Textual) [Abstract]
Duration of Treatment Period	2 years
Phase IIb/III clinical trial [Member]
Business Organization and Presentation (Textual) [Abstract]
Maximum number of patients enrolled	500
Duration of Treatment Period	56 days
Duration of Open Label Extension (OLE) Treatment Period	1 year

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Total employee stock-based compensation expense
Stock-based compensation expense	$ 1,188	$ 1,314	$ 2,579	$ 2,912
Research and development [Member]
Total employee stock-based compensation expense
Stock-based compensation expense	520	618	1,113	1,338
General and administrative [Member]
Total employee stock-based compensation expense
Stock-based compensation expense	$ 668	$ 696	$ 1,466	$ 1,574

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Summary of Significant Accounting Policies (Details 1)	6 Months Ended
Summary of Significant Accounting Policies (Details 1)	Jun. 30, 2012	Jun. 30, 2011
Black-Scholes-Merton option pricing model for employee and director stock options granted
Expected dividend yield	0.00%	0.00%
Weighted average expected volatility	68.00%	73.00%
Weighted average expected term (years)	6 years 11 days	6 years 11 days
Weighted average risk-free rate	1.08%	2.50%

Summary of Significant Accounting Policies (Details 2) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
2004 Plan [Member]
Summary of option activity
Beginning balance, Number of Shares	677,145
Beginning balance, Weighted Average Exercise Price at Grant Date	$ 1.78
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	3 years 3 months 11 days	3 years 9 months 11 days
Beginning balance, Aggregate Intrinsic Value	$ 2,016
Exercised, Number of Shares
Exercised, Weighted Average Exercise Price at Grant Date
Cancelled, Number of Shares
Cancelled, Weighted Average Exercise Price at Grant Date
Forfeited, Number of Shares
Forfeited, Weighted Average Exercise Price at Grant Date
Ending balance, Number of Shares	677,145	677,145
Ending balance, Weighted Average Exercise Price at Grant Date	$ 1.78	$ 1.78
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	3 years 3 months 11 days	3 years 9 months 11 days
Ending balance, Aggregate Intrinsic Value	$ 1,847	$ 2,016
Exercisable, Number of Shares	677,145
Exercisable, Weighted Average Exercise Price at Grant Date	$ 1.78
Exercisable ,Weighted Average Remaining Term (Years)	3 years 3 months 11 days
Exercisable, Aggregate Intrinsic Value	$ 1,847
2006 Plan [Member]
Summary of option activity
Beginning balance, Number of Shares	4,254,681
Beginning balance, Weighted Average Exercise Price at Grant Date	$ 12.16
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	7 years 2 months 27 days	7 years 7 months 24 days
Beginning balance, Aggregate Intrinsic Value	$ 396
Granted, Number of Shares	148,000
Granted, Weighted Average Exercise Price at Grant Date	$ 4.50
Exercised, Number of Shares
Exercised, Weighted Average Exercise Price at Grant Date
Cancelled, Number of Shares	69,334
Cancelled, Weighted Average Exercise Price at Grant Date	$ 11.07
Forfeited, Number of Shares	25,541
Forfeited, Weighted Average Exercise Price at Grant Date	$ 6.85
Ending balance, Number of Shares	4,307,806	4,254,681
Ending balance, Weighted Average Exercise Price at Grant Date	$ 11.95	$ 12.16
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	7 years 2 months 27 days	7 years 7 months 24 days
Ending balance, Aggregate Intrinsic Value	$ 388	$ 396
Exercisable, Number of Shares	2,655,213
Exercisable, Weighted Average Exercise Price at Grant Date	$ 14.90
Exercisable ,Weighted Average Remaining Term (Years)	6 years 3 months 22 days
Exercisable, Aggregate Intrinsic Value	$ 332

Summary of Significant Accounting Policies (Details 3) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2012 USD ($) $ / shares shares
Summary of RSU activity
Unvested beginning balance, Number of Shares \| shares	522,346
Unvested beginning balance, Weighted Average Price/Share \| $ / shares	$ 7.43
Unvested beginning balance, Aggregate Intrinsic Value \| $	$ 2,486
Granted, Number of Shares \| shares	11,500
Granted, Weighted Average Price/Share \| $ / shares	$ 4.33
Vested, Number of Shares \| shares
Vested, Weighted Average Price/Share \| $ / shares
Cancelled, Number of Shares \| shares	6,032
Cancelled, Weighted Average Price/Share \| $ / shares	$ 6.72
Unvested ending balance, Number of Shares \| shares	527,814
Unvested ending balance, Weighted Average Price/Share \| $ / shares	$ 7.37
Unvested ending balance, Aggregate Intrinsic Value \| $	$ 0

Summary of Significant Accounting Policies (Details Textual) - USD ($)	1 Months Ended	6 Months Ended
	May 31, 2009	Jun. 30, 2012	Dec. 31, 2009
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Payments for original sublicense agreement	$ 12,000,000	$ 12,000,000
Upfront payment received under fanapt sublicense agreement			$ 200,000,000
Patent extension received under Hatch-Waxman Extension		5 years
Potential pediatric extension		6 months
Impairments of intangible assets		$ 0
Pre-vesting forfeitures on options granted prior to 2009		2.00%
Pre-vesting forfeitures on options granted after 2009		4.00%
Total unrecognized compensation costs related to non-vested awards		$ 7,300,000
Weighted average period of total unrecognized compensation costs		1 year 4 months 21 days
Contractual terms of option awards		10 years
Portion of initial stock options granted to employees that vests on employee's first anniversary		25.00%
Portion of initial stock options granted to employees that vests ratably over three years after completion of fist year of service		75.00%
Period of exercisable		4 years
Vesting and exercise period for initial stock options granted to directors		4 years
Vesting and exercise period for subsequent stock options granted to directors		1 year
Weighted average grant-date fair value of options granted		$ 4.41
Restated Management Equity Plan [Member]
Summary of Significant Accounting Policies (Textual) [Abstract]
Outstanding options granted under the 2004 Plan		677,145
Equity Incentive Plan [Member]
Summary of Significant Accounting Policies (Textual) [Abstract]
Outstanding options and RSUs issued to employees and non-employees		4,763,454
Outstanding common stock reserved under the 2006 Plan		7,866,260
Total unrecognized compensation costs related to unvested option awards		$ 3,800,000
Total unrecognized compensation cost related to unvested RSU awards granted		3,800,000
RSUs [Member]
Summary of Significant Accounting Policies (Textual) [Abstract]
Total unrecognized compensation costs related to unvested option awards		3,500,000
Total unrecognized compensation cost related to unvested RSU awards granted		$ 3,500,000

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Numerator:
Net loss	$ (8,007)	$ (1,341)	$ (15,969)	$ (1,205)
Denominator:
Weighted average shares of common stock outstanding, basic	28,226,743	28,103,441	28,226,743	28,102,774
Stock options and restricted stock units related to the issuance of common stock
Weighted average shares of common stock outstanding, diluted	28,226,743	28,103,441	28,226,743	28,102,774
Net loss per share:
Basic	$ (0.28)	$ (0.05)	$ (0.57)	$ (0.04)
Diluted	$ (0.28)	$ (0.05)	$ (0.57)	$ (0.04)
Anti-dilutive securities not included in diluted net loss per share calculation:
Options to purchase common stock and restricted stock units	5,199,705	3,974,965	5,201,746	3,560,885

Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Summary of the available-for-sale marketable securities
Amortized Cost	$ 50,309	$ 60,952
Gross Unrealized Gains	24	18
Gross Unrealized Losses	(20)	(9)
Fair Market Value	50,313	60,961
U.S. Treasury and government agencies [Member]
Summary of the available-for-sale marketable securities
Amortized Cost	21,394	23,747
Gross Unrealized Gains	1	10
Gross Unrealized Losses	(1)	(2)
Fair Market Value	21,394	23,755
U.S. corporate debt [Member]
Summary of the available-for-sale marketable securities
Amortized Cost	28,915	37,205
Gross Unrealized Gains	23	8
Gross Unrealized Losses	(19)	(7)
Fair Market Value	$ 28,919	37,206
U.S. Treasury and government agencies [Member]
Summary of the available-for-sale marketable securities
Amortized Cost		19,000
Gross Unrealized Gains		12
Fair Market Value		$ 19,012

- Definition

Amount of debt securities categorized neither as held-to-maturity nor trading.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 25
-Paragraph 1
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=7534914&loc=d3e22054-111558

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6871852&loc=d3e26610-111562

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-Subparagraph (b)-(g)
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 12
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 13
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 15C
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Prepaid Expenses, Deposits and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Summary of the prepaid expenses, deposits and other current assets
Prepaid insurance	$ 486	$ 165
Other prepaid expenses and vendor advances	2,530	2,474
Accrued interest income	381	244
Other receivable	26	116
Total prepaid expenses, deposits and other current assets	$ 3,423	$ 2,999

- Definition

Carrying amount as of the balance sheet date of unamortized costs of insurance coverage, which will be charged against earnings ratably over the period in which contractually agreed upon coverage's will be in effect; such periods expire within one year or the normal operating cycle, if longer.

+ References + Details

Property and Equipment, Net (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Summary of property and equipment-at cost
Property and equipment, gross	$ 5,187	$ 4,038
Less-accumulated depreciation and amortization	(2,654)	(3,074)
Property and equipment, net	$ 2,533	964
Laboratory equipment [Member]
Summary of property and equipment-at cost
Estimated Useful Life (Years)	5 years
Property and equipment, gross	$ 1,273	1,273
Computer equipment [Member]
Summary of property and equipment-at cost
Estimated Useful Life (Years)	3 years
Property and equipment, gross	$ 1,236	1,105
Furniture and fixtures [Member]
Summary of property and equipment-at cost
Estimated Useful Life (Years)	7 years
Property and equipment, gross	$ 853	700
Leasehold improvements [Member]
Summary of property and equipment-at cost
Property and equipment, gross	$ 1,825	844
Leasehold improvements [Member] \| Maximum [Member]
Summary of property and equipment-at cost
Leasehold improvements	11 years
Leasehold improvements [Member] \| Minimum [Member]
Summary of property and equipment-at cost
Leasehold improvements	10 years
Leasehold improvements-in-progress [Member]
Summary of property and equipment-at cost
Property and equipment, gross		$ 116

Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Property and Equipment, Net (Textual) [Abstract]
Depreciation expense	$ 424	$ 138

Intangible Asset, Net (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
Intangible Asset, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Intangible asset
Net Carrying Amount	$ 7,286	$ 8,027
Fanapt [Member]
Intangible asset
Estimated Useful Life (Years)	8 years	8 years
Gross Carrying Amount	$ 12,000	$ 12,000
Accumulated Amortization	4,714	3,973
Net Carrying Amount	$ 7,286	$ 8,027

Intangible Asset, Net (Details Textual) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2009	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Intangible Assets, Net (Textual) [Abstract]
Payments for original sublicense agreement	$ 12,000			$ 12,000
Amortization of intangible asset		$ 372	$ 372	$ 741	$ 741
Patent extension received under Hatch-Waxman extension				5 years
Potential Pediatric extension				6 months

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Summary of accrued liabilities
Accrued research and development expenses	$ 3,723	$ 1,967
Accrued consulting and other professional fees	259	317
Employee benefits	744	100
Accrued lease termination penalty (refer to footnote 10)		740
Accrued lease exit liability (refer to footnote 10)	1,013
Other accrued liabilities	169	257
Total accrued liabilities	$ 5,908	$ 3,381

- Definition

Carrying value as of the balance sheet date of obligations, excluding pension and other postretirement benefits, incurred through that date and payable for perquisites provided to employees pertaining to services received from them. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for professional fees, such as for legal and accounting services received. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable arising from transactions not otherwise specified in the taxonomy. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues:
Deferred Revenue, beginning balance			$ 143,853
Licensing agreement	$ 6,678	$ 6,678	13,284	$ 13,284
Revenue Recognized	1,700	752	3,235	1,647
Total revenues	8,378	$ 7,430	16,519	$ 14,931
Deferred Revenue, ending balance	130,569		130,569
Licensing agreement [Member]
Revenues:
Deferred Revenue, beginning balance			143,853
Licensing agreement			13,284
Deferred Revenue, ending balance	$ 130,569		130,569
Royalty revenue [Member]
Revenues:
Revenue Recognized			$ 3,235

Revenue Recognition (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2009
Revenue Recognition (Textual) [Abstract]
Upfront payment received under Fanapt sublicense agreement					$ 200,000
Licensing agreement	$ 6,678	$ 6,678	$ 13,284	$ 13,284
Revenue Recognized	$ 1,700	$ 752	$ 3,235	$ 1,647
Patent extension received under Hatch-Waxman Extension			5 years
Potential pediatric extension			6 months
Royalty revenue [Member]
Revenue Recognition (Textual) [Abstract]
Revenue Recognized			$ 3,235
Restated sublicense agreement [Member]
Revenue Recognition (Textual) [Abstract]
Licensing agreement			$ 13,284

Commitments and Contingencies (Details) $ in Thousands	Jun. 30, 2012 USD ($)
Summary of long-term contractual cash obligations
Operating leases, Cash payments due by period, Total	$ 11,550
Operating leases, Cash payments due by period, 2013	859
Operating leases, Cash payments due by period, 2014	1,052
Operating leases, Cash payments due by period, 2015	1,079
Operating leases, Cash payments due by period, 2016	1,106
Operating leases, Cash payments due by period, After 2016	7,454
Lease exit liability , Cash payments due by period, Total	1,013
Lease exit liability , Cash payments due by period, July to December 2012	456
Lease exit liability , Cash payments due by period, 2013	557
Consulting fees, Cash payments due by period, Total	1,000
Consulting fees, Cash payments due by period, July to December 2012	1,000
Total, Cash payments due by period	13,563
Total, Cash payments due by period, July to December 2012	1,456
Total, Cash payments due by period, 2013	1,416
Total, Cash payments due by period, 2014	1,052
Total, Cash payments due by period, 2015	1,079
Total, Cash payments due by period, 2016	1,106
Total, Cash payments due by period, After 2016	$ 7,454

Commitments and Contingencies (Details 1) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Summary of the Company's lease exit activity
Balance at beginning of Period	$ 740	$ 740
Costs Incurred and Charged to Expense	1,285		$ 740
Costs Paid or Otherwise Settled		958
Adjustments		(54)
Balance at end of Period	$ 2,025	$ 1,013	$ 740

- Definition

Amount of any reversal and other adjustment made during the period to the amount of a previously accrued liability for a specified type of restructuring cost, excluding adjustments for costs incurred during the period, costs settled during the period, and foreign currency translation adjustments.

+ References + Details

Commitments and Contingencies (Details Textual) $ in Thousands	3 Months Ended				6 Months Ended		9 Months Ended	12 Months Ended
	Sep. 30, 2012 USD ($)	Jun. 30, 2012 USD ($)	Mar. 31, 2012 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Sep. 30, 2012 USD ($)	Dec. 31, 2011 USD ($)	Jul. 25, 2011 ft²	Dec. 31, 2009 USD ($)
Commitment and Contingencies (Textual) [Abstract]
VLY-686 Initial license fee					$ 1,000
Research and development expense		$ 12,490		$ 5,999	24,670	$ 10,266
General and administrative expense		3,601		$ 2,572	7,510	5,430
Additional rent expense			$ 800		1,600	$ 500
Commitments and Contingencies (Additional Textual) [Abstract]
Annual rent over the term of the Lease		1,600
Allowance for leasehold improvements					1,900
Allowance for leasehold improvements, received till date					1,800
Security deposit paid upon the execution of the Lease		500			$ 500
Expected period for exit of the lease					Jun. 30, 2013
Lease termination penalty								$ 700
Initial term of engagement					15 months
Consulting fees obligations					$ 1,000
Consulting fees obligation period					Between July 2012 and December 2012
Obligation to make milestone payments					$ 2,800
Payments of Fanapt initial license fees					500
Future Fanapt milestone payments					100,000
Upfront payment received under Fanapt sublicense agreement										$ 200,000
Potential milestone payments to be received from Novartis for Fanapt		265,000			265,000					$ 265,000
Payments to BMS as an initial license fee for Tasimelteon					500
Future Tasimelteon milestone payments to BMS					40,000
Milestone payment under Tasimelteon license agreement					$ 1,000
Total area of Vanda's current headquarters \| ft²									21,400
Term of Lease agreement for Vanda's current headquarters					11 years
Renewal term of Lease agreement for Vanda's current headquarters					5 years
VLY-686 Pre-NDA approval milestones							$ 4,000
VLY-686 Future regulatory approval and sales milestones							$ 95,000
Liabilities, future license payments		0			$ 0
Contractual obligations relating to the license agreements		0			$ 0
Maximum [Member]
Commitment and Contingencies (Textual) [Abstract]
Clinical services agreement termination period					60 days
Research and development [Member]
Commitment and Contingencies (Textual) [Abstract]
Additional rent expense			600
General and administrative [Member]
Commitment and Contingencies (Textual) [Abstract]
Additional rent expense			200
Cash payment in Q2 2012 [Member]
Commitment and Contingencies (Textual) [Abstract]
VLY-686 Initial license fee		$ 500
Cash payment in Q3 2012 [Member]
Commitment and Contingencies (Textual) [Abstract]
VLY-686 Initial license fee	$ 500
Termination penalty [Member]
Commitment and Contingencies (Textual) [Abstract]
Research and development expense								600
General and administrative expense								$ 100
Lease exit liability			1,300
Reversal of deferred rent			$ 500
Obligation to make milestone payments [Member]
Commitment and Contingencies (Textual) [Abstract]
Payments to be made in the event that a tasimelteon NDA is approved by the FDA					$ 2,000
Future Fanapt milestone payments [Member]
Commitment and Contingencies (Textual) [Abstract]
Payment for NDA Filing for Fanapt					5,000
Payment for NDA Approval for Fanapt					$ 12,000

Income Taxes (Details) $ in Thousands	6 Months Ended
Income Taxes (Details) $ in Thousands	Jun. 30, 2012 USD ($)
Income Taxes (Textual) [Abstract]
Tax provision recorded	$ 0
Net deferred tax asset associate with carry back current taxable losses	1,800
Tax benefit recorded	$ 50

- Definition

The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to pretax Income or Loss from continuing operations; income tax expense or benefit may include interest and penalties on tax uncertainties based on the entity's accounting policy.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a),(b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 25
-URI http://asc.fasb.org/extlink&oid=21917399&loc=d3e32247-109318

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32672-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45, 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 48
-Paragraph 15, 16, 19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value Measurements (Details) - Available-for-sale securities [Member] - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Description:
Assets fair value, recurring	$ 50,313	$ 79,973
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Description:
Assets fair value, recurring	21,394	42,767
Significant Other Observable Inputs (Level 2) [Member]
Description:
Assets fair value, recurring	28,918	37,206
Significant Unobservable Inputs (Level 3) [Member]
Description:
Assets fair value, recurring