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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]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Entity Registrant Name	TARGACEPT INC
Entity Central Index Key	0001124105
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		33,430,481

Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 71,645	$ 107,283
Investments in marketable securities - short term	84,833	87,721
Receivables from collaborations	347	218
Prepaid expenses	2,343	3,471
Total current assets	159,168	198,693
Investments in marketable securities - long term	49,412	54,266
Property and equipment, net	3,919	5,035
Intangible assets	123	132
Total assets	212,622	258,126
Current liabilities:
Accounts payable	2,450	3,489
Accrued expenses	6,482	16,167
Current portion of long-term debt	870	1,241
Current portion of deferred revenue	3,273	57,714
Total current liabilities	13,075	78,611
Long-term debt, net of current portion	1,564	1,986
Deferred revenue, net of current portion	1,620	3,241
Total liabilities	16,259	83,838
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value, 100,000,000 shares authorized and 33,428,636 and 33,383,403 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively	33	33
Preferred stock, $0.001 par value, 5,000,000 shares authorized and 0 shares issued and outstanding at June 30, 2012 and December 31, 2011
Capital in excess of par value	406,315	401,149
Accumulated other comprehensive income	194	36
Accumulated deficit	(210,179)	(226,930)
Total stockholders' equity	196,363	174,288
Total liabilities and stockholders' equity	$ 212,622	$ 258,126

Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2012	Dec. 31, 2011
Balance Sheets [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	33,428,636	33,383,403
Common stock, shares outstanding	33,428,636	33,383,403
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Operating revenues:
License fees and milestones from collaborations	$ 33,487	$ 20,699	$ 56,094	$ 59,621
Grant revenue	158	44	408	116
Net operating revenues	33,645	20,743	56,502	59,737
Operating expenses:
Research and development (including stock-based compensation of $1,044 and $1,257 for the three months ended June 30, 2012 and 2011, respectively, and $2,138 and $2,494 for the Six months ended June 30, 2012 and 2011, respectively)	12,512	20,185	30,313	43,702
General and administrative (including stock-based compensation of $2,067 and $943 for the three months ended June 30, 2012 and 2011, respectively, and $2,890 and $1,869 for the six months ended June 30, 2012 and 2011, respectively)	4,587	3,129	7,657	6,304
Restructuring charges	2,312		2,312
Total operating expenses	19,411	23,314	40,282	50,006
Income (loss) from operations	14,234	(2,571)	16,220	9,731
Other income (expense):
Interest income	280	343	579	659
Interest expense	(22)	(29)	(48)	(60)
Total other income (expense)	258	314	531	599
Net income (loss)	$ 14,492	$ (2,257)	$ 16,751	$ 10,330
Basic net income (loss) per share	$ 0.43	$ (0.07)	$ 0.50	$ 0.35
Diluted net income (loss) per share	$ 0.43	$ (0.07)	$ 0.50	$ 0.33
Weighted average common shares outstanding - basic	33,409,341	30,725,227	33,399,814	29,865,420
Weighted average common shares outstanding - diluted	33,638,629	30,725,227	33,701,857	31,207,325
Unrealized (loss) gain on available-for-sale securities, net	$ (33)	$ (5)	$ 158	$ (26)
Comprehensive income (loss)	$ 14,459	$ (2,262)	$ 16,909	$ 10,304

Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Research and development
Stock-based compensation	$ 1,044	$ 1,257	$ 2,138	$ 2,494
General and administrative
Stock-based compensation	$ 2,067	$ 943	$ 2,890	$ 1,869

- 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

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating activities
Net income	$ 16,751	$ 10,330
Adjustments to reconcile net income to net cash used in operating activities:
Recognition of deferred revenue	(56,502)	(59,738)
Amortization of premium on marketable securities, net	477	306
Depreciation and amortization	1,262	1,235
Stock-based compensation expense	5,028	4,363
Changes in operating assets and liabilities:
Receivables from collaborations	(129)	292
Other current assets	1,162	(325)
Accounts payable and accrued expenses	(10,724)	(1,571)
Deferred revenue	440
Net cash used in operating activities	(42,235)	(45,108)
Investing activities
Purchase of investments in marketable securities	(76,524)	(80,448)
Proceeds from sale of investments in marketable securities	83,913	44,983
Purchase of property and equipment	(137)	(1,012)
Net cash provided by (used in) investing activities	7,252	(36,477)
Financing activities
Principal payments on long-term debt	(793)	(844)
Proceeds from issuance of long-term debt		2,132
Proceeds from issuance of common stock, net	138	82,585
Net cash (used in) provided by financing activities	(655)	83,873
Net (decrease) increase in cash and cash equivalents	(35,638)	2,288
Cash and cash equivalents at beginning of period	107,283	165,854
Cash and cash equivalents at end of period	$ 71,645	$ 168,142

The Company and Nature of Operations

6 Months Ended

Jun. 30, 2012

The Company and Nature of Operations [Abstract]

The Company and Nature of Operations

1. The Company and Nature of Operations

Targacept, Inc., or the Company, is a Delaware corporation formed on March 7, 1997. The Company is a biopharmaceutical company engaged in the design, discovery and development of novel NNR Therapeutics™ for the treatment of diseases and disorders of the nervous system. The Company’s NNR Therapeutics selectively target neuronal nicotinic receptors, which it refers to as NNRs. Its facilities are located in Winston-Salem, North Carolina.

- Definition

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

+ References

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+ 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

Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2011. In the opinion of the Company’s management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of its financial position, operating results and cash flows for the periods presented have been included. Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the full year, for any other interim period or for any future year.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes. Actual results could differ from these estimates.

Fair Value Measurement

The Company follows Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 820, Fair Value Measurements and Disclosures, or ASC 820, for application to financial assets. ASC 820 defines fair value, provides a consistent framework for measuring fair value under GAAP and requires fair value financial statement disclosures. ASC 820 applies only to the measurement and disclosure of financial assets that are required or permitted to be measured and reported at fair value under other ASC topics (except for standards that relate to share-based payments such as ASC Topic 718, Compensation - Stock Compensation).

The valuation techniques required by ASC 820 may be based on either observable or unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, and unobservable inputs reflect the Company’s market assumptions. These inputs are classified into the following hierarchy:

Level 1 Inputs - quoted prices (unadjusted) in active markets for identical assets that the reporting entity has the ability to access at the measurement date;

Level 2 Inputs - inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly; and

Level 3 Inputs - unobservable inputs for the asset.

The following tables present the Company’s investments in marketable securities (including those classified on the Company’s balance sheet as cash equivalents) that are measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011, respectively:


June 30, 2012	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury and U.S. or state government agency-backed securities	$	60,335	$	—	$	—
Corporate debt securities		—		62,102		—
Municipal bonds		—		2,336
Certificates of deposit		13,000		—		—
Accrued interest		471		—		—

Total cash equivalents and marketable securities	$	73,806	$	64,438	$	—


December 31, 2011	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury and U.S. or state government agency-backed securities	$	69,474	$	—	$	—
Corporate debt securities		—		75,007		—
Certificates of deposit		13,000		—		—
Accrued interest		506		—		—

Total cash equivalents and marketable securities	$	82,980	$	75,007	$	—

Corporate debt securities and municipal bonds are valued based on various observable inputs such as benchmark yields, reported trades, broker/dealer quotes, benchmark securities and bids.

Investments in Marketable Securities

Consistent with its investment policy, the Company invests its cash allocated to fund its short-term liquidity requirements with prominent financial institutions in bank depository accounts and institutional money market funds and the Company invests the remainder of its cash in U.S. Treasury notes and bonds, U.S. and state government agency-backed securities, corporate debt securities that are rated at least A quality or equivalent and certificates of deposit.

The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates its classification as of each balance sheet date. All marketable securities owned during the six months ended June 30, 2012 and 2011 were classified as available for sale. The cost of securities sold is based on the specific identification method. Investments in marketable securities are recorded as of each balance sheet date at fair value, with unrealized gains and, to the extent deemed temporary, unrealized losses included in stockholders’ equity. Interest and dividend income on investments in marketable securities, accretion of discounts and amortization of premiums and realized gains and losses are included in interest income in the statement of comprehensive income.

An investment in marketable securities is considered to be impaired when a decline in fair value below its cost basis is determined to be other than temporary. The Company evaluates whether a decline in fair value of an investment in marketable securities below its cost basis is other than temporary using available evidence. In the event that the cost basis of the investment exceeds its fair value, the Company evaluates, among other factors, the amount and duration of the period that the fair value is less than the cost basis, the financial health of and business outlook for the issuer, including industry and sector performance, operational and financing cash flow factors, overall market conditions and trends, the Company’s intent to sell the investment and whether it is more likely than not the Company would be required to sell the investment before its anticipated recovery. If a decline in fair value is determined to be other than temporary, the Company records an impairment charge in the statement of comprehensive income and establishes a new cost basis in the investment.

Revenue Recognition

The Company uses the revenue recognition guidance established by ASC Topic 605, Revenue Recognition, or ASC 605. In determining the accounting for collaboration and alliance agreements, the Company follows the provisions of ASC 605, Subtopic 25, Multiple Element Arrangements, or ASC 605-25. ASC 605-25 provides guidance on whether an arrangement that involves multiple revenue-generating activities or deliverables should be divided into separate units of accounting for revenue recognition purposes and, if division is required, how the arrangement consideration should be allocated among the separate units of accounting. If the arrangement constitutes separate units of accounting according to the separation criteria of ASC 605-25, the consideration received is allocated among the separate units of accounting and the applicable revenue recognition criteria must be applied to each unit. If the arrangement constitutes a single unit of accounting, the revenue recognition policy must be determined for the entire arrangement and the consideration received is recognized over the period of inception through the date on which the last deliverable within the single unit of accounting is expected to be delivered. Revisions to the estimated period of recognition are reflected in revenue prospectively.

Collaboration research and development revenue is earned and recognized as research is performed and related expenses are incurred. Non-refundable upfront fees, which may include, for example, an initial payment upon effectiveness of the contractual relationship, payment representing a common stock purchase premium or payment to secure a right for a future license, are recorded as deferred revenue and recognized into revenue as license fees and milestones from collaborations on a straight-line basis over the estimated period of the Company’s substantive performance obligations. If the Company does not have substantive performance obligations, it recognizes non-refundable upfront fees into revenue through the date the deliverable is satisfied.

Revenue for non-refundable payments based on the achievement of milestone events under collaboration agreements is recognized in accordance with ASC 605, Subtopic 28, Milestone Method, or ASC 605-28, which the Company adopted as of January 1, 2011. Milestone events under the Company’s collaboration agreements may include research, development, regulatory, commercialization or sales events. Under ASC 605-28, a milestone payment is recognized as revenue when the applicable event is achieved if the event meets the definition of a milestone and the milestone is determined to be substantive. ASC 605-28 defines a milestone event as an event having all of the following characteristics: (1) there is substantive uncertainty regarding achievement of the milestone event at the inception of the arrangement; (2) the event can only be achieved based, in whole or in part, on either the company’s performance or a specific outcome resulting from the company’s performance; and (3) if achieved, the event would result in additional payment due to the company. The Company also treats events that can only be achieved based, in whole or in part, on either a third party’s performance or a specific outcome resulting from a third party’s performance as milestone events if the criteria of ASC 605-28 are otherwise satisfied.

A milestone is considered substantive if it meets all of the following criteria: (A) the payment is commensurate with either the Company’s performance to achieve the milestone or with the enhancement of the value of the delivered item; (B) the payment relates solely to past performance; and (C) the payment is reasonable relative to all of the deliverables and payment terms within the arrangement. If any of these conditions is not met, the milestone payment is deferred and recognized on a straight-line basis over a period determined as discussed above.

Research and development costs that are reimbursable under collaboration agreements are recorded in accordance with ASC 605, Subtopic 45, Principal Agent Considerations. Amounts reimbursed under a cost sharing arrangement are reflected as a reduction of research and development expense.

Grant payments received prior to the Company’s performance of work required by the terms of the award are recorded as deferred revenue and recognized as grant revenue as the Company performs the work and incurs qualifying costs.

Income Taxes

The Company uses the liability method in accounting for income taxes as required by ASC Topic 740, Income Taxes, or ASC 740. Under ASC 740, deferred tax assets and liabilities are recorded for operating loss and tax credit carryforwards and for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that the assets will be realized. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 requires interim income tax expense or benefit to be calculated using an estimated annual effective tax rate, unless the taxpayer’s best estimate of the annual effective tax rate is the actual year-to-date tax rate. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. The Company’s policy is to classify any interest recognized in accordance with ASC 740 as interest expense and to classify any penalties recognized in accordance with ASC 740 as an expense other than income tax expense.

Net Income or Loss Per Share

The Company computes net income or loss per share in accordance with ASC Topic 260, Earnings Per Share, or ASC 260. Under the provisions of ASC 260, basic net income or loss per share, or Basic EPS, is computed by dividing net income or loss by the weighted average number of common shares outstanding. Diluted net income or loss per share, or Diluted EPS, is computed by dividing net income or loss by the weighted average number of common shares outstanding plus, in the case of diluted net income per share, dilutive common share equivalents outstanding. The calculations of Basic EPS and Diluted EPS are set forth in the table below (in thousands, except share and per share amounts).


	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012		2011
Basic:
Net income (loss)	$	14,492	$	(2,257	)	$	16,751	$	10,330

Weighted average common shares - basic		33,409,341		30,725,227			33,399,814		29,865,420

Basic EPS	$	0.43	$	(0.07	)	$	0.50	$	0.35

Diluted:
Net income (loss)	$	14,492	$	(2,257	)	$	16,751	$	10,330

Weighted average common shares - basic		33,409,341		30,725,227			33,399,814		29,865,420
Common share equivalents		229,288		—			302,043		1,341,905

Weighted average common shares - diluted		33,638,629		30,725,227			33,701,857		31,207,325

Diluted EPS	$	0.43	$	(0.07	)	$	0.50	$	0.33

Common share equivalents consist of the incremental common shares that would be outstanding upon the exercise of stock options, calculated using the treasury stock method. For the three months ended June 30, 2011, the Company excluded all common share equivalents from the calculation of Diluted EPS because the Company had net loss. As a result, Diluted EPS is identical to Basic EPS for the three months ended June 30, 2011. If the Company had been in a net income position for the three months ended June 30, 2011, 3,800,643 shares subject to outstanding stock options may have been included in the calculation of common share equivalents using the treasury stock method.

Shares subject to outstanding stock options that were anti-dilutive for periods of net income and consequently not included in the calculation of common share equivalents totaled 3,793,921 for the three months ended June 30, 2012, and 3,278,572 and 1,405,127 for the six months ended June 30, 2012 and 2011, respectively, calculated on a weighted average basis.

Common Stock and Stock-Based Compensation

The Company issued 45,233 shares of common stock upon the exercise of stock options during the six months ended June 30, 2012. The Company issued 305,395 shares of common stock upon the exercise of stock options during the year ended December 31, 2011.

The Company granted to employees options to purchase an aggregate of 1,194,995 shares of common stock on May 4, 2012. These stock options have an estimated aggregate fair value, using the Black-Scholes-Merton formula, of $3,609,000. The Company is recording this amount, as adjusted for forfeitures, as stock-based compensation on a straight line basis over 16 quarters beginning with the quarter ended June 30, 2012.

During the six months ended June 30, 2012, the Company partially accelerated the vesting of, and/or extended the permitted period for exercise for, some outstanding stock options held by three executive officers who departed the Company. These modifications resulted in incremental compensation cost recorded by the Company for the three and six months ended June 30, 2012 of $1,299,000.

Accumulated Other Comprehensive Income or Loss

Accumulated other comprehensive income or loss, as presented in stockholders’ equity on the Company’s balance sheet, reflects the cumulative net unrealized gains and losses on available-for-sale securities for all periods. The table below reflects changes in accumulated other comprehensive income or loss for the six months ended June 30, 2012.


	(in thousands)
Accumulated other comprehensive income, January 1, 2012	$	36
Unrealized gain on available-for-sale securities, net		158

Accumulated other comprehensive income, June 30, 2012	$	194

Intellectual Property

The Company capitalizes the cost of intellectual property acquired or licensed from external sources as intangible assets if, at the time of acquisition, the intellectual property has reached technological feasibility. The cost of intellectual property acquired or licensed from external sources that has not reached technological feasibility at the time of acquisition or that has no expected future use is charged to research and development expense as incurred. The Company records all other charges related to the filing, prosecution and maintenance of patents to expense as incurred.

Commitments and Contingencies

The Company’s lease with Wake Forest University Health Sciences expired by its terms on July 31, 2012. As of August 9, 2012, the Company is in discussions with Wake Forest University Health Sciences regarding terms for a potential renewal of this lease.

Under an employment agreement with the Company’s former chief executive officer, the Company has agreed to pay severance equal to the departing executive’s regular base salary as of May 31, 2012 and to continue the departing executive’s health and life insurance benefits coverage provided to him as of May 31, 2012 for twelve months, representing an aggregate estimated amount of $506,000 recorded as general and administrative expense for the three months ended June 30, 2012.

Investments in Marketable Securities

6 Months Ended

Jun. 30, 2012

Investments in Marketable Securities [Abstract]

Investments in Marketable Securities

3. Investments in Marketable Securities

The following is a reconciliation of amortized cost to fair value of available-for-sale marketable securities (including those classified on the Company’s balance sheet as cash equivalents) held at June 30, 2012 and December 31, 2011:


June 30, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Security type
Cash Equivalents
Corporate debt securities	$	3,999	$	—	$	—		$	3,999
Marketable Securities - Short term
U.S. Treasury and U.S. or state government agency-backed securities		40,301		46		(1	)		40,346
Corporate debt securities		31,276		28		—			31,304
Certificates of deposit		13,000		—		—			13,000
Accrued interest		183		—		—			183
Marketable Securities - Long term
U.S. Treasury and U.S. or state government agency-backed securities		19,935		58		(4	)		19,989
Corporate debt securities - long term		26,729		92		(22	)		26,799
Municipal bonds		2,339		1		(4	)		2,336
Accrued interest		288		—		—			288

Total available-for-sale marketable securities	$	138,050	$	225	$	(31	)	$	138,244


December 31, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Security type
Cash Equivalents
Corporate debt securities	$	16,000	$	—	$	—		$	16,000
Marketable Securities - Short term
U.S. Treasury and U.S. or state government agency-backed securities		35,908		32		—			35,940
Corporate debt securities		38,531		37		(34	)		38,534
Certificates of deposit		13,000		—		—			13,000
Accrued interest		247		—		—			247
Marketable Securities - Long term
U.S. Treasury and U.S. or state government agency-backed securities		33,466		75		(7	)		33,534
Corporate debt securities - long term		20,540		39		(106	)		20,473
Accrued interest		259		—		—			259

Total available-for-sale marketable securities	$	157,951	$	183	$	(147	)	$	157,987

As of June 30, 2012, the Company held investments in marketable securities with unrealized gains of $225,000 and unrealized losses of $31,000. For investments in an unrealized loss position, the duration of the loss was less than 12 months. None of these investments is considered to be other-than-temporarily impaired.

As of June 30, 2012, the Company’s investments in marketable securities, including those classified on its balance sheet as cash equivalents, reach maturity between July 2012 and May 2015, with a weighted average maturity date of July 23, 2013.

Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

4. Income Taxes

For each of the three and six-month periods ended June 30, 2012 and 2011, the Company did not recognize any income tax expense. Exercises of stock options may result in tax deductions for stock-based compensation in excess of expense recorded for the stock options under GAAP. For interim periods within years for which taxable net income is forecasted, the Company recognizes the income tax benefit related to the excess tax deductions as an increase to capital in excess of par value, which based on ASC 740 results in an offsetting charge in the same amount to income tax expense. As of June 30, 2012, the Company had $7,534,000 of cumulative tax deductions for periods of net loss from exercises of stock options in excess of expense recorded under GAAP for the stock options. The benefit of these excess tax deductions had not begun to be realized as of June 30, 2012 because the Company has incurred cumulative net operating losses since inception. Accordingly, the tax benefit will not be recognized as an increase to capital in excess of par value until the excess deductions reduce income taxes payable.

Because the Company has incurred cumulative net operating losses since inception, all tax years remain open to examination by U.S. federal, North Carolina and Massachusetts tax authorities.

- 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))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-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

Strategic Alliance and Collaboration Agreements

6 Months Ended

Jun. 30, 2012

Strategic Alliance and Collaboration Agreements [Abstract]

Strategic Alliance and Collaboration Agreements

5. Strategic Alliance and Collaboration Agreements

AstraZeneca AB

Cognitive Disorders

In December 2005, the Company entered into a collaborative research and license agreement with AstraZeneca AB under which the Company granted AstraZeneca exclusive development and worldwide commercialization rights to the Company’s product candidate AZD3480 (TC-1734) as a treatment for specified conditions characterized by cognitive impairment, including Alzheimer’s disease and attention deficit/hyperactivity disorder, or ADHD. The Company is eligible to receive license fees and milestone payments under the agreement. The amount of license fees and milestone payments depends on the timing and achievement of specified milestone events.

AstraZeneca paid the Company an initial fee of $10,000,000 in February 2006. Based on the agreement terms, the Company allocated $5,000,000 of the initial fee to the research collaboration, which the Company recognized as revenue on a straight-line basis over the four-year term of the research collaboration. The Company deferred recognition of the remaining $5,000,000 of the initial fee, which was allocated to the AZD3480 license grants, until December 2006, when AstraZeneca made a determination to proceed with further development of AZD3480. As a result, in the first quarter of 2007, the Company began recognizing the $5,000,000 of the initial fee that it had previously deferred as revenue on a straight-line basis over the estimated development period for AZD3480. In July 2009, based on feedback received from AstraZeneca regarding its development plans for AZD3480 as a treatment for ADHD, the Company extended its estimate of the development period for AZD3480 to continue through 2013 and began recognizing the part of the $5,000,000 portion of the initial fee not yet recognized as of April 1, 2009 into revenue on a straight-line basis over the remaining estimated development period. In September 2010, the Company and AstraZeneca amended the agreement to enable the Company to conduct a clinical trial of AZD3480 in mild to moderate Alzheimer’s disease and to provide for respective roles and responsibilities and associated financial terms for such a study. Under the amendment, the Company received from AstraZeneca $500,000 in October 2010, $2,000,000 in September 2011 and $3,500,000 in December 2011. The Company is recognizing both the portion of the $5,000,000 of the initial fee attributable to AZD3480 license grants not yet recognized and the payments received under the amendment into revenue on a straight-line basis through 2013, which is the estimated period of the Company’s performance obligations under the agreement as amended. The Company recognized an aggregate of $810,000 and $207,000 of the initial fee and the payments received under the amendment for the three months ended June 30, 2012 and 2011, respectively, and an aggregate of $1,621,000 and $414,000 for the six months ended June 30, 2012 and 2011, respectively.

Under the agreement, the Company is also eligible to receive additional payments from AstraZeneca if specified milestone events for AZD3480 are achieved for Alzheimer’s disease, including up to an additional $35,000,000 if development milestone events are achieved, an additional $20,000,000 if a regulatory milestone event is achieved, and up to an additional $90,000,000 if first commercial sale milestone events are achieved, plus, if regulatory approval is achieved for AZD3480 for any indication, stepped double-digit royalties on any sales of AZD3480 for that indication or any other indication.

The Company is also eligible to receive other payments under the agreement if development, regulatory, first commercial sale and first detail milestone events for AZD3480 are achieved for any other target indication under the agreement. AZD3480 is not currently in development for any indication other than Alzheimer’s disease. Under the terms of a sponsored research agreement and a subsequent license agreement between the Company and University of Kentucky Research Foundation, or UKRF, if the Company receives any of these payments from AstraZeneca related to AZD3480, including royalties, the Company is required to pay a low-single digit percentage of each such payment to UKRF. Based solely on projected activities and timelines, the Company does not expect it to be possible for it to achieve any contingent milestone event for AZD3480 during 2012. The likelihood that the Company will achieve any particular milestone event with respect to AZD3480 in any future period is uncertain, and the Company may not ever achieve any of the milestone events with respect to AZD3480.

With respect to AZD1446, the most advanced product candidate that arose out of the parties’ preclinical research collaboration, the Company is eligible to receive additional payments from AstraZeneca if specified milestone events for AZD1446 under the agreement are achieved for Alzheimer’s disease, including up to an additional $14,000,000 if development milestone events are achieved, an additional $10,000,000 if a regulatory milestone event is achieved and up to an additional $49,000,000 if first commercial sale milestone events are achieved, plus, if regulatory approval is achieved for AZD1446 for any indication, stepped royalties on any sales of AZD1446 for that indication or any other indication. The Company is also eligible to receive other payments under the agreement if development, regulatory, first commercial sale and first detail milestone events for AZD1446 are achieved for any other target indication under the agreement. AZD1446 is not currently in an active clinical trial. Based solely on projected activities and timelines, the Company does not expect it to be possible for it to achieve any contingent milestone event for AZD1446 during 2012. The likelihood that the Company will achieve any particular milestone event with respect to AZD1446 in any future period is uncertain, and the Company may not ever achieve any of the milestone events with respect to AZD1446.

The Company considers that each of the potential milestone events under the agreement with respect to AZD3480 or AZD1446 would be substantive because the applicable criteria of its revenue recognition policy (see Note 2) would be satisfied.

In October 2007, the Company provided notice under the agreement offering AstraZeneca the right to license its product candidate TC-5619 for specified conditions characterized by cognitive impairment. Based on a subsequent election by AstraZeneca made under the terms of the agreement, AstraZeneca paid the Company $2,000,000 and the Company agreed to develop TC-5619 independently through completion of Phase 1 clinical development and a Phase 2 clinical proof of concept clinical trial in accordance with a mutually acceptable development plan, following which AstraZeneca would have the right to license TC-5619 on terms specified in the agreement (as it was amended in April 2010 as described below). The Company recognized the $2,000,000 payment as revenue on a straight-line basis over the period estimated from time to time for the Company’s research and development obligations for TC-5619. The Company completed its research and development obligations for TC-5619 under the agreement in the second quarter of 2011. Accordingly, as of June 30, 2011, all of the $2,000,000 payment related to TC-5619 received from AstraZeneca had been recognized into revenue. The Company recognized $43,000 and $87,000 of the payment into revenue for the three and six months ended June 30, 2011, respectively.

In April 2010, the Company and AstraZeneca amended the agreement to modify the terms applicable to TC-5619. In conjunction with the amendment, the Company and AstraZeneca agreed to an expanded development program for TC-5619 and the Company received a payment of $11,000,000 to maintain AstraZeneca’s option to license TC-5619. The Company recorded the $11,000,000 payment as deferred revenue and recognized it as revenue on a straight-line basis over the period estimated from time to time for the Company’s research and development obligations for TC-5619 under the agreement, which, as noted above, were completed in the second quarter of 2011. Accordingly, as of June 30, 2011, all of the $11,000,000 payment related to TC-5619 received from AstraZeneca had been recognized into revenue. The Company recognized $2,357,000 and $4,714,000 of the payment into revenue for the three and six months ended June 30, 2011, respectively. In late April 2011, the Company received notice from AstraZeneca that it had determined not to exercise its license option.

The Company has received payments upon achievement of milestone events under the agreement that it recognized in full as revenue upon achievement because the event met each of the conditions required for immediate recognition under its revenue recognition policy (see Note 2). In particular, the Company received a $10,000,000 payment from AstraZeneca in July 2009 based on achievement of the objective in a completed Phase 2 clinical trial of AZD3480 in adults with ADHD, a milestone event under an amendment to the agreement. The Company made a payment of $350,000 to UKRF in January 2010 as a result of the $10,000,000 payment received from AstraZeneca. The Company has also received cumulative payments from AstraZeneca of $2,600,000 based on the achievement of milestone events related to the development of product candidates arising under the parties’ completed preclinical research collaboration, including AZD1446.

AstraZeneca has paid the Company an aggregate of $88,120,000 under the agreement since its inception. As of June 30, 2012, $4,862,000 of the amounts received remained to be recognized into revenue in future periods.

TC-5214

In December 2009, the Company entered into a collaboration and license agreement with AstraZeneca AB for the global development and commercialization of TC-5214. Under the agreement, AstraZeneca made an upfront payment to the Company of $200,000,000. The Company recorded the upfront payment made by AstraZeneca as deferred revenue and began recognizing the payment as revenue on a straight-line basis over the estimated period of the Company’s substantive performance obligations under the agreement, or approximately 33 months after the agreement date. Under the terms of an existing license agreement, the Company paid $16,000,000 to University of South Florida Research Foundation, or USFRF, in February 2010 based on the Company’s receipt of the upfront payment from AstraZeneca.

The Company and AstraZeneca jointly designed a program for the global development of TC-5214 as an adjunct therapy and as a “switch” monotherapy, in each case in patients with major depressive disorder who do not respond adequately to initial antidepressant treatment. AstraZeneca was responsible for 80% and the Company was responsible for 20% of the costs of this program, except that AstraZeneca was responsible for 100% of development costs required only to obtain or maintain regulatory approval in countries outside the United States and the European Union. In addition, for each of the Company and AstraZeneca, costs that were not contemplated at execution to be part of the program were in some cases excluded from the cost-sharing arrangement.

The Company’s portion of the costs of the TC-5214 development program was $1,369,000 and $6,228,000 for the three months ended June 30, 2012 and 2011, respectively, and $4,779,000 and $13,324,000 for the six months ended June 30, 2012 and 2011, respectively. AstraZeneca’s allocable portion of the program costs paid by the Company was $6,000 and $141,000 for the three months ended June 30, 2012 and 2011, respectively, and $127,000 and $201,000 for the six months ended June 30, 2012 and 2011, respectively. AstraZeneca’s allocable portion of the program costs paid by the Company is reflected in the Company’s financial statements as a reduction to research and development expense.

In the first quarter of 2012, the Company and AstraZeneca announced that, based on the totality of the results of the Phase 3 development program for TC-5214, a regulatory filing for TC-5214 as an adjunct therapy for major depressive disorder will not be pursued. Also in the first quarter of 2012, the Company reported that the Company and AstraZeneca determined to discontinue a Phase 2b clinical trial of TC-5214 as a “switch” monotherapy. The determinations to not pursue a regulatory filing for TC-5214 as an adjunct therapy for major depressive disorder and to discontinue the Phase 2b clinical trial of TC-5214 as a “switch” monotherapy resulted in a change in the estimated period of the Company’s substantive performance obligations under the agreement to be approximately 29 months from the agreement date, and the Company revised the revenue recognition period for the upfront payment previously received accordingly. The Company recognized $32,676,000 and $18,091,000 of the upfront payment as revenue for the three months ended June 30, 2012 and 2011, respectively, and $54,473,000 and $35,984,000 for the six months ended June 30, 2012 and 2011, respectively. As of June 30, 2012, none of the upfront payment remained to be recognized into revenue.

In April 2012, the Company received notice of termination of the agreement from AstraZeneca. By the terms of the agreement, the termination became effective in late May 2012. The Company is responsible for 20% of the remaining costs related to the clinical program for TC-5214 in major depressive disorder as final program activities are completed.

GlaxoSmithKline

On July 27, 2007, the Company entered into a product development and commercialization agreement with SmithKline Beecham Corporation, doing business as GlaxoSmithKline, and Glaxo Group Limited, which are referred to together as GlaxoSmithKline, that set forth the terms of an alliance designed to discover, develop and market product candidates that selectively target specified NNR subtypes for specified therapeutic focus areas. In February 2011, the Company received notice of termination of the agreement from GlaxoSmithKline. By the terms of the agreement, the termination became effective in May 2011.

Under the agreement and a related stock purchase agreement, GlaxoSmithKline made an initial payment to the Company of $20,000,000 and purchased 1,275,502 shares of the Company’s common stock for an aggregate purchase price of $15,000,000 on July 27, 2007. The purchase price paid by GlaxoSmithKline reflected an aggregate deemed premium of $3,521,000, based on the closing price of the Company’s common stock on the trading day immediately preceding the date that the agreements were signed and announced. The Company deferred recognition of both the initial payment made by GlaxoSmithKline and the deemed premium paid for the shares of the Company’s common stock purchased by GlaxoSmithKline and began recognizing both amounts into revenue on a straight-line basis over the nine-year period of the Company’s research and early development obligations estimated at inception of the agreement.

In December 2007, the Company received a $6,000,000 payment from GlaxoSmithKline upon the achievement of a specified milestone event under the agreement. The Company determined the payment did not meet each of the conditions of its revenue recognition policy (see Note 2) required for recognition of the full amount into revenue upon achievement of the milestone. Specifically, based on the progress as of inception of the agreement of the product candidate to which the payment related, there was not substantive uncertainty regarding achievement of the milestone event within the meaning of the Company’s revenue recognition policy. Accordingly, the Company recorded the payment as deferred revenue and began recognizing it into revenue on a straight-line basis over the remaining portion of the nine-year period of the Company’s research and early development obligations estimated at inception of the agreement.

As a result of its receipt in February 2011 of notice of termination of the agreement, the Company recognized the remaining $18,421,000 of the payments discussed above that had not previously been recognized into revenue for the first quarter of 2011 in accordance with its revenue recognition policy (see Note 2).

Reduction In Force

6 Months Ended

Jun. 30, 2012

Reduction in Force [Abstract]

Reduction In Force

6. Reduction In Force

On April 25, 2012, the Company announced a reduction in force as part of a plan to focus its resources on its clinical programs and select preclinical opportunities. The restructuring was completed in the second quarter of 2012. The Company recorded as expense and paid $2,312,000 in severance and other charges related to the reduction in force for the six months ended June 30, 2012. Upon the completion of the restructuring, the Company’s workforce was reduced by 65 employees, or approximately 46%.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + 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]
Basis of Presentation	*Basis of Presentation* The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2011. In the opinion of the Company’s management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of its financial position, operating results and cash flows for the periods presented have been included. Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the full year, for any other interim period or for any future year.
Use of Estimates	*Use of Estimates* The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes. Actual results could differ from these estimates.
Fair Value Measurement	*Fair Value Measurement* The Company follows Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 820, Fair Value Measurements and Disclosures, or ASC 820, for application to financial assets. ASC 820 defines fair value, provides a consistent framework for measuring fair value under GAAP and requires fair value financial statement disclosures. ASC 820 applies only to the measurement and disclosure of financial assets that are required or permitted to be measured and reported at fair value under other ASC topics (except for standards that relate to share-based payments such as ASC Topic 718, Compensation - Stock Compensation).
Investments in Marketable Securities	*Investments in Marketable Securities* Consistent with its investment policy, the Company invests its cash allocated to fund its short-term liquidity requirements with prominent financial institutions in bank depository accounts and institutional money market funds and the Company invests the remainder of its cash in U.S. Treasury notes and bonds, U.S. and state government agency-backed securities, corporate debt securities that are rated at least A quality or equivalent and certificates of deposit. The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates its classification as of each balance sheet date. All marketable securities owned during the six months ended June 30, 2012 and 2011 were classified as available for sale. The cost of securities sold is based on the specific identification method. Investments in marketable securities are recorded as of each balance sheet date at fair value, with unrealized gains and, to the extent deemed temporary, unrealized losses included in stockholders’ equity. Interest and dividend income on investments in marketable securities, accretion of discounts and amortization of premiums and realized gains and losses are included in interest income in the statement of comprehensive income. An investment in marketable securities is considered to be impaired when a decline in fair value below its cost basis is determined to be other than temporary. The Company evaluates whether a decline in fair value of an investment in marketable securities below its cost basis is other than temporary using available evidence. In the event that the cost basis of the investment exceeds its fair value, the Company evaluates, among other factors, the amount and duration of the period that the fair value is less than the cost basis, the financial health of and business outlook for the issuer, including industry and sector performance, operational and financing cash flow factors, overall market conditions and trends, the Company’s intent to sell the investment and whether it is more likely than not the Company would be required to sell the investment before its anticipated recovery. If a decline in fair value is determined to be other than temporary, the Company records an impairment charge in the statement of comprehensive income and establishes a new cost basis in the investment.
Revenue Recognition	*Revenue Recognition* The Company uses the revenue recognition guidance established by ASC Topic 605, Revenue Recognition, or ASC 605. In determining the accounting for collaboration and alliance agreements, the Company follows the provisions of ASC 605, Subtopic 25, Multiple Element Arrangements, or ASC 605-25. ASC 605-25 provides guidance on whether an arrangement that involves multiple revenue-generating activities or deliverables should be divided into separate units of accounting for revenue recognition purposes and, if division is required, how the arrangement consideration should be allocated among the separate units of accounting. If the arrangement constitutes separate units of accounting according to the separation criteria of ASC 605-25, the consideration received is allocated among the separate units of accounting and the applicable revenue recognition criteria must be applied to each unit. If the arrangement constitutes a single unit of accounting, the revenue recognition policy must be determined for the entire arrangement and the consideration received is recognized over the period of inception through the date on which the last deliverable within the single unit of accounting is expected to be delivered. Revisions to the estimated period of recognition are reflected in revenue prospectively. Collaboration research and development revenue is earned and recognized as research is performed and related expenses are incurred. Non-refundable upfront fees, which may include, for example, an initial payment upon effectiveness of the contractual relationship, payment representing a common stock purchase premium or payment to secure a right for a future license, are recorded as deferred revenue and recognized into revenue as license fees and milestones from collaborations on a straight-line basis over the estimated period of the Company’s substantive performance obligations. If the Company does not have substantive performance obligations, it recognizes non-refundable upfront fees into revenue through the date the deliverable is satisfied. Revenue for non-refundable payments based on the achievement of milestone events under collaboration agreements is recognized in accordance with ASC 605, Subtopic 28, Milestone Method, or ASC 605-28, which the Company adopted as of January 1, 2011. Milestone events under the Company’s collaboration agreements may include research, development, regulatory, commercialization or sales events. Under ASC 605-28, a milestone payment is recognized as revenue when the applicable event is achieved if the event meets the definition of a milestone and the milestone is determined to be substantive. ASC 605-28 defines a milestone event as an event having all of the following characteristics: (1) there is substantive uncertainty regarding achievement of the milestone event at the inception of the arrangement; (2) the event can only be achieved based, in whole or in part, on either the company’s performance or a specific outcome resulting from the company’s performance; and (3) if achieved, the event would result in additional payment due to the company. The Company also treats events that can only be achieved based, in whole or in part, on either a third party’s performance or a specific outcome resulting from a third party’s performance as milestone events if the criteria of ASC 605-28 are otherwise satisfied. A milestone is considered substantive if it meets all of the following criteria: (A) the payment is commensurate with either the Company’s performance to achieve the milestone or with the enhancement of the value of the delivered item; (B) the payment relates solely to past performance; and (C) the payment is reasonable relative to all of the deliverables and payment terms within the arrangement. If any of these conditions is not met, the milestone payment is deferred and recognized on a straight-line basis over a period determined as discussed above. Research and development costs that are reimbursable under collaboration agreements are recorded in accordance with ASC 605, Subtopic 45, Principal Agent Considerations. Amounts reimbursed under a cost sharing arrangement are reflected as a reduction of research and development expense. Grant payments received prior to the Company’s performance of work required by the terms of the award are recorded as deferred revenue and recognized as grant revenue as the Company performs the work and incurs qualifying costs.
Income Taxes	*Income Taxes* The Company uses the liability method in accounting for income taxes as required by ASC Topic 740, Income Taxes, or ASC 740. Under ASC 740, deferred tax assets and liabilities are recorded for operating loss and tax credit carryforwards and for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that the assets will be realized. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 requires interim income tax expense or benefit to be calculated using an estimated annual effective tax rate, unless the taxpayer’s best estimate of the annual effective tax rate is the actual year-to-date tax rate. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. The Company’s policy is to classify any interest recognized in accordance with ASC 740 as interest expense and to classify any penalties recognized in accordance with ASC 740 as an expense other than income tax expense.
Net Income or Loss Per Share	*Net Income or Loss Per Share* The Company computes net income or loss per share in accordance with ASC Topic 260, Earnings Per Share, or ASC 260. Under the provisions of ASC 260, basic net income or loss per share, or Basic EPS, is computed by dividing net income or loss by the weighted average number of common shares outstanding. Diluted net income or loss per share, or Diluted EPS, is computed by dividing net income or loss by the weighted average number of common shares outstanding plus, in the case of diluted net income per share, dilutive common share equivalents outstanding. The calculations of Basic EPS and Diluted EPS are set forth in the table below (in thousands, except share and per share amounts).
Common Stock and Stock-Based Compensation	*Common Stock and Stock-Based Compensation* The Company issued 45,233 shares of common stock upon the exercise of stock options during the six months ended June 30, 2012. The Company issued 305,395 shares of common stock upon the exercise of stock options during the year ended December 31, 2011. The Company granted to employees options to purchase an aggregate of 1,194,995 shares of common stock on May 4, 2012. These stock options have an estimated aggregate fair value, using the Black-Scholes-Merton formula, of $3,609,000. The Company is recording this amount, as adjusted for forfeitures, as stock-based compensation on a straight line basis over 16 quarters beginning with the quarter ended June 30, 2012. During the six months ended June 30, 2012, the Company partially accelerated the vesting of, and/or extended the permitted period for exercise for, some outstanding stock options held by three executive officers who departed the Company. These modifications resulted in incremental compensation cost recorded by the Company for the three and six months ended June 30, 2012 of $1,299,000.
Accumulated Other Comprehensive Income or Loss	*Accumulated Other Comprehensive Income or Loss* Accumulated other comprehensive income or loss, as presented in stockholders’ equity on the Company’s balance sheet, reflects the cumulative net unrealized gains and losses on available-for-sale securities for all periods. The table below reflects changes in accumulated other comprehensive income or loss for the six months ended June 30, 2012.
Intellectual Property	*Intellectual Property* The Company capitalizes the cost of intellectual property acquired or licensed from external sources as intangible assets if, at the time of acquisition, the intellectual property has reached technological feasibility. The cost of intellectual property acquired or licensed from external sources that has not reached technological feasibility at the time of acquisition or that has no expected future use is charged to research and development expense as incurred. The Company records all other charges related to the filing, prosecution and maintenance of patents to expense as incurred.
Commitments and Contingencies	*Commitments and Contingencies* The Company’s lease with Wake Forest University Health Sciences expired by its terms on July 31, 2012. As of August 9, 2012, the Company is in discussions with Wake Forest University Health Sciences regarding terms for a potential renewal of this lease. Under an employment agreement with the Company’s former chief executive officer, the Company has agreed to pay severance equal to the departing executive’s regular base salary as of May 31, 2012 and to continue the departing executive’s health and life insurance benefits coverage provided to him as of May 31, 2012 for twelve months, representing an aggregate estimated amount of $506,000 recorded as general and administrative expense for the three months ended June 30, 2012.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Investments in marketable securities measured at fair value on a recurring basis


June 30, 2012	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury and U.S. or state government agency-backed securities	$	60,335	$	—	$	—
Corporate debt securities		—		62,102		—
Municipal bonds		—		2,336
Certificates of deposit		13,000		—		—
Accrued interest		471		—		—

Total cash equivalents and marketable securities	$	73,806	$	64,438	$	—


December 31, 2011	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury and U.S. or state government agency-backed securities	$	69,474	$	—	$	—
Corporate debt securities		—		75,007		—
Certificates of deposit		13,000		—		—
Accrued interest		506		—		—

Total cash equivalents and marketable securities	$	82,980	$	75,007	$	—

Summary of calculations of Basic EPS and Diluted EPS


	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012		2011
Basic:
Net income (loss)	$	14,492	$	(2,257	)	$	16,751	$	10,330

Weighted average common shares - basic		33,409,341		30,725,227			33,399,814		29,865,420

Basic EPS	$	0.43	$	(0.07	)	$	0.50	$	0.35

Diluted:
Net income (loss)	$	14,492	$	(2,257	)	$	16,751	$	10,330

Weighted average common shares - basic		33,409,341		30,725,227			33,399,814		29,865,420
Common share equivalents		229,288		—			302,043		1,341,905

Weighted average common shares - diluted		33,638,629		30,725,227			33,701,857		31,207,325

Diluted EPS	$	0.43	$	(0.07	)	$	0.50	$	0.33

Changes in accumulated other comprehensive income or loss


	(in thousands)
Accumulated other comprehensive income, January 1, 2012	$	36
Unrealized gain on available-for-sale securities, net		158

Accumulated other comprehensive income, June 30, 2012	$	194

- 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

Investments in Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2012

Investments in Marketable Securities [Abstract]

Reconciliation of amortized cost to fair value of available-for-sale marketable securities


June 30, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Security type
Cash Equivalents
Corporate debt securities	$	3,999	$	—	$	—		$	3,999
Marketable Securities - Short term
U.S. Treasury and U.S. or state government agency-backed securities		40,301		46		(1	)		40,346
Corporate debt securities		31,276		28		—			31,304
Certificates of deposit		13,000		—		—			13,000
Accrued interest		183		—		—			183
Marketable Securities - Long term
U.S. Treasury and U.S. or state government agency-backed securities		19,935		58		(4	)		19,989
Corporate debt securities - long term		26,729		92		(22	)		26,799
Municipal bonds		2,339		1		(4	)		2,336
Accrued interest		288		—		—			288

Total available-for-sale marketable securities	$	138,050	$	225	$	(31	)	$	138,244


December 31, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Security type
Cash Equivalents
Corporate debt securities	$	16,000	$	—	$	—		$	16,000
Marketable Securities - Short term
U.S. Treasury and U.S. or state government agency-backed securities		35,908		32		—			35,940
Corporate debt securities		38,531		37		(34	)		38,534
Certificates of deposit		13,000		—		—			13,000
Accrued interest		247		—		—			247
Marketable Securities - Long term
U.S. Treasury and U.S. or state government agency-backed securities		33,466		75		(7	)		33,534
Corporate debt securities - long term		20,540		39		(106	)		20,473
Accrued interest		259		—		—			259

Total available-for-sale marketable securities	$	157,951	$	183	$	(147	)	$	157,987

The Company and Nature of Operations (Details)	6 Months Ended
The Company and Nature of Operations (Details)	Jun. 30, 2012
The Company and Nature of Operations (Textual) [Abstract]
Formation date	Mar. 07, 1997

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities	$ 138,244	$ 157,987
Quoted Prices in Active Markets (Level1) [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities	73,806	82,980
Quoted Prices in Active Markets (Level1) [Member] \| U.S. Treasury and U.S. or state government agency-backed securities [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities	60,335	69,474
Quoted Prices in Active Markets (Level1) [Member] \| Municipal Bonds [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities
Quoted Prices in Active Markets (Level1) [Member] \| Certificates of deposit [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities	13,000	13,000
Quoted Prices in Active Markets (Level1) [Member] \| Accrued interest [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities	471	506
Other Observable Inputs (Level 2) [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities	64,438	75,007
Other Observable Inputs (Level 2) [Member] \| Corporate debt securities [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities	62,102	75,007
Other Observable Inputs (Level 2) [Member] \| Municipal Bonds [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities	2,336
Unobservable Inputs (Level 3) [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities
Unobservable Inputs (Level 3) [Member] \| U.S. Treasury and U.S. or state government agency-backed securities [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities
Unobservable Inputs (Level 3) [Member] \| Corporate debt securities [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities
Unobservable Inputs (Level 3) [Member] \| Municipal Bonds [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities
Unobservable Inputs (Level 3) [Member] \| Certificates of deposit [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities
Unobservable Inputs (Level 3) [Member] \| Accrued interest [Member]
Investments in marketable securities measured at fair value on a recurring basis
Total cash equivalents and marketable securities

Summary of Significant Accounting Policies (Details1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Basic:
Net income (loss)	$ 14,492	$ (2,257)	$ 16,751	$ 10,330
Weighted average common shares-basic	33,409,341	30,725,227	33,399,814	29,865,420
Basic EPS	$ 0.43	$ (0.07)	$ 0.50	$ 0.35
Diluted:
Net income	$ 14,492	$ (2,257)	$ 16,751	$ 10,330
Weighted average common shares-basic	33,409,341	30,725,227	33,399,814	29,865,420
Common share equivalent	229,288		302,043	1,341,905
Weighted average common shares - diluted	33,638,629	30,725,227	33,701,857	31,207,325
Diluted EPS	$ 0.43	$ (0.07)	$ 0.50	$ 0.33

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.21)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=16381557&loc=d3e4984-109258

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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 942
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04.23)
-URI http://asc.fasb.org/extlink&oid=6879574&loc=d3e536633-122882

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 18
-Article 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 36, 37, 38
-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 Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 20
-Article 5

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 21
-Article 9

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References + Details

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph 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 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 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 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-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 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-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 Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

- Definition

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

+ References + Details

- Definition

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
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-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Weighted-Average Number of Common Shares Outstanding
-URI http://asc.fasb.org/extlink&oid=6528421

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-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 128
-Paragraph 8
-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 128
-Paragraph 171
-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 128
-Paragraph 40
-Subparagraph a
-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 (Details2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Changes in accumulated other comprehensive income or loss
Accumulated other comprehensive income, January 1, 2012			$ 36
Unrealized gain on available-for-sale securities, net	$ (33)	$ (5)	158	$ (26)
Accumulated other comprehensive income, June 30, 2012	$ 194		$ 194

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
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-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
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-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 31
-Article 5

Reference 5: 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.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-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 130
-Paragraph 14, 17, 26
-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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Summary of Significant Accounting Policies (Details Textual)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	May 31, 2012 USD ($) shares	Jun. 30, 2012 USD ($) ft² shares	Jun. 30, 2011 shares	Jun. 30, 2012 USD ($) ft² Quaters Employee shares	Jun. 30, 2011 shares	Dec. 31, 2011 shares
Summary of Significant Accounting Policies (Textual) [Abstract]
Shares subject to outstanding stock options, anti-dilutive, weighted average \| shares		3,793,921	3,800,643	3,278,572	1,405,127
Common stock issued upon the exercise of stock options \| shares				45,233		305,395
Common stock options issued, Granted \| shares	1,194,995
Fair value of aggregate common stock	$ 3,609,000
Vesting period of common stock \| Quaters				16
Outstanding stock option held by executive officer \| Employee				3
Incremental cost from stock option modification		$ 1,299,000		$ 1,299,000
Area of leased office and laboratory space \| ft²		0		0
Rent of leased office and laboratory space		$ 0		$ 0
Executive's health and life insurance financial coverage		$ 506,000		$ 2,312,000

Investments in Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Reconciliation of amortized cost to fair value of available-for-sale marketable securities
Amortized cost	$ 138,050	$ 157,951
Gross Unrealized Gains	225	183
Gross Unrealized Losses	(31)	(147)
Fair Value	138,244	157,987
Cash equivalents [Member] \| Corporate debt securities [Member]
Reconciliation of amortized cost to fair value of available-for-sale marketable securities
Amortized cost	3,999	16,000
Fair Value	3,999	16,000
Marketable Securities - Short term [Member] \| U.S. Treasury and U.S. or state government agency-backed securities [Member]
Reconciliation of amortized cost to fair value of available-for-sale marketable securities
Amortized cost	40,301	35,908
Gross Unrealized Gains	46	32
Gross Unrealized Losses	(1)
Fair Value	40,346	35,940
Marketable Securities - Short term [Member] \| Corporate debt securities [Member]
Reconciliation of amortized cost to fair value of available-for-sale marketable securities
Amortized cost	31,276	38,531
Gross Unrealized Gains	28	37
Gross Unrealized Losses		(34)
Fair Value	31,304	38,534
Marketable Securities - Short term [Member] \| Certificates of deposit [Member]
Reconciliation of amortized cost to fair value of available-for-sale marketable securities
Amortized cost	13,000	13,000
Fair Value	13,000	13,000
Marketable Securities - Short term [Member] \| Accrued interest [Member]
Reconciliation of amortized cost to fair value of available-for-sale marketable securities
Amortized cost	183	247
Fair Value	183	247
Marketable Securities - Long term [Member] \| U.S. Treasury and U.S. or state government agency-backed securities [Member]
Reconciliation of amortized cost to fair value of available-for-sale marketable securities
Amortized cost	19,935	33,466
Gross Unrealized Gains	58	75
Gross Unrealized Losses	(4)	(7)
Fair Value	19,989	33,534
Marketable Securities - Long term [Member] \| Corporate debt securities [Member]
Reconciliation of amortized cost to fair value of available-for-sale marketable securities
Amortized cost	29,068	20,540
Gross Unrealized Gains	93	39
Gross Unrealized Losses	(26)	(106)
Fair Value	29,135	20,473
Marketable Securities - Long term [Member] \| Accrued interest [Member]
Reconciliation of amortized cost to fair value of available-for-sale marketable securities
Amortized cost	288	259
Fair Value	$ 288	$ 259

Investments in Marketable Securities (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Investments in Marketable Securities (Textual) [Abstract]
Unrealized gains on marketable securities	$ 225	$ 183
Unrealized losses on marketable securities	$ 31	$ 147
Weighted average maturity date	Jul. 23, 2013
Unrealized loss position, period	less than 12 months
Maturity date of investments in marketable securities, range start	Jul. 01, 2012
Maturity date of investments in marketable securities, range end	May 01, 2015

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Taxes (Textual) [Abstract]
Income tax expense recognized	$ 0	$ 0	$ 0	$ 0
Cumulative tax deductions from exercises of stock options	$ 7,534,000		$ 7,534,000

Strategic Alliance and Collaboration Agreements (Details) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended		15 Months Ended	31 Months Ended	46 Months Ended	48 Months Ended
	Feb. 28, 2011	Jul. 27, 2007	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2010	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Oct. 31, 2010	Apr. 30, 2010	Feb. 28, 2010	Jan. 31, 2010	Dec. 31, 2009	Jul. 31, 2009	Oct. 31, 2007	Feb. 28, 2006
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Recognition of deferred revenue				$ 43,000		$ 87,000
Deferred revenue			$ 4,862,000		$ 4,862,000			$ 4,862,000
Strategic Alliance and Collaboration Agreements (Additional Textual) [Abstract]
Amount received for research and development process recognized																			$ 10,000,000
Recognized of initial fee as revenue and payments received under amendment			810,000	207,000	1,621,000	414,000
Recognized of upfront fee as revenue			32,676,000	18,091,000	54,473,000	35,984,000
Allocable portion of the program costs			6,000	141,000	127,000	201,000
TC - 5619 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Recognition of deferred revenue				2,357,000		4,714,000			$ 2,000,000
Deferred revenue															$ 11,000,000
TC - 5214 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Initial fee																		$ 200,000,000
Initial program cost for research and development			1,369,000	$ 6,228,000	4,779,000	$ 13,324,000
Deferred revenue change in estimated period											29 months
Deferred revenue recognition period																		33 months
TC-5619 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Recognition of deferred revenue							$ 11,000,000
AstraZeneca [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Initial fee																					$ 10,000,000
Allocation of initial fee to research collaboration																					5,000,000
Initial fee unrecognized, recognition deferred																					$ 5,000,000
Amount received for research and development process			88,120,000		$ 88,120,000			$ 88,120,000
Term of research collaboration																					4 years
Percentage of development costs, responsible party Rest of World								100.00%
AstraZeneca [Member] \| Clinical trial AZD3480 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Amount received for research and development process												$ 3,500,000	$ 2,000,000	$ 500,000
AstraZeneca [Member] \| TC - 5619 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Amount received for research and development process															$ 11,000,000					$ 2,000,000
AstraZeneca [Member] \| TC - 5214 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Percentage cost of the program attributable to respective party US and Europe								80.00%
AstraZeneca [Member] \| Research Collaboration [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Cumulative payments received on achievement of milestone events										$ 2,600,000
GlaxoSmithKline [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Initial fee		$ 20,000,000
Recognition of deferred revenue	$ 18,421,000
Term of research collaboration		9 years
Cumulative payments received on achievement of milestone events		$ 6,000,000
Aggregate deemed premium		3,521,000
Purchase price of common stock		$ 15,000,000
Common stock purchased by GSK		1,275,502
UKRF [Member] \| Clinical trial AZD3480 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Payment made to UKRF and USF																	$ 350,000
University of South Florida Research Foundation [Member] \| TC - 5214 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Payment made to UKRF and USF																$ 16,000,000
Targacept [Member] \| TC - 5214 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Percentage cost of the program attributable to respective party US and Europe								20.00%
Percentage of remaining costs related to the clinical program for TC-5214					20.00%
Development milestone events [Member] \| AstraZeneca [Member] \| Clinical trial AZD3480 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Additional payments receivable on milestone achievements			35,000,000		$ 35,000,000			$ 35,000,000
Development milestone events [Member] \| AstraZeneca [Member] \| AZD 1446 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Additional payments receivable on milestone achievements			14,000,000		14,000,000			14,000,000
Regulatory milestone events [Member] \| AstraZeneca [Member] \| Clinical trial AZD3480 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Additional payments receivable on milestone achievements			20,000,000		20,000,000			20,000,000
Regulatory milestone events [Member] \| AstraZeneca [Member] \| AZD 1446 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Additional payments receivable on milestone achievements			10,000,000		10,000,000			10,000,000
First commercial sale milestone events [Member] \| AstraZeneca [Member] \| Clinical trial AZD3480 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Additional payments receivable on milestone achievements			90,000,000		90,000,000			90,000,000
First commercial sale milestone events [Member] \| AstraZeneca [Member] \| AZD 1446 [Member]
Strategic Alliance and Collaboration Agreements (Textual) [Abstract]
Additional payments receivable on milestone achievements			$ 49,000,000		$ 49,000,000			$ 49,000,000

Reduction In Force (Details)	3 Months Ended	6 Months Ended
Reduction In Force (Details)	Jun. 30, 2012 USD ($)	Jun. 30, 2012 USD ($) Employee
Reduction in Force (Textual) [Abstract]
Severance and other charges related to the reduction in force \| $	$ 506,000	$ 2,312,000
Company's workforce as reduced \| Employee		65
Percentage of workforce reduced		46.00%

- Definition

The charge against earnings in the period for known and estimated costs of termination benefits provided to current employees that are involuntarily terminated under a benefit arrangement associated with exit from or disposal of business activities or restructurings pursuant to a duly authorized plan, excluding costs or losses pertaining to an entity newly acquired in a business combination or a discontinued operation as defined by generally accepted accounting principles and costs associated with one-time termination benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 5.P.4(b))
-URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)(10)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 5.P.3)
-URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5-8
-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 SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 5
-Section P
-Subsection 3, 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 146
-Paragraph 8-13, 20
-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 FAS146-1
-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 112
-Paragraph 7
-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