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Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 69,861	$ 82,240
Investments in marketable securities - short term	39,978	42,721
Receivables from collaborations	383	1,380
Prepaid expenses	1,405	1,402
Total current assets	111,627	127,743
Investments in marketable securities - long term	65,220	59,966
Property and equipment, net	1,501	1,639
Intangible assets	110	115
Other assets	287	116
Total assets	178,745	189,579
Current liabilities:
Accounts payable	2,516	2,056
Accrued expenses	4,998	6,085
Current portion of long-term debt	858	851
Current portion of deferred revenue		2,357
Total current liabilities	8,372	11,349
Long-term debt, net of current portion	918	1,136
Deferred revenue, net of current portion		1,179
Total liabilities	9,290	13,664
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value, 100,000,000 shares authorized and 33,616,675 and 33,615,081 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively	34	34
Preferred stock, $0.001 par value, 5,000,000 shares authorized and 0 shares issued and outstanding at March 31, 2013 and December 31, 2012
Capital in excess of par value	411,227	409,608
Accumulated other comprehensive income	188	201
Accumulated deficit	(241,994)	(233,928)
Total stockholders' equity	169,455	175,915
Total liabilities and stockholders' equity	$ 178,745	$ 189,579

Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Research and development
Stock-based compensation	$ 779	$ 1,094
General and Administrative Expense
Stock-based compensation	$ 835	$ 822

- Definition

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

+ References + Details

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2013

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, 2012. 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 months ended March 31, 2013 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 assets.

The following tables present the Company’s investments in marketable securities (including, if applicable, those classified on the Company’s balance sheet as cash equivalents) that are measured at fair value on a recurring basis as of March 31, 2013 and December 31, 2012, respectively:


March 31, 2013	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	$	44,359	$	—	$	—
Corporate debt securities		—		47,730		—
Municipal bonds		—		2,700		—
Certificates of deposit		10,000		—		—
Accrued interest		409		—		—

Total cash equivalents and marketable securities	$	54,768	$	50,430	$	—


December 31, 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	$	46,371	$	—	$	—
Corporate debt securities		—		47,173		—
Municipal bonds		—		2,700		—
Certificates of deposit		10,000		—		—
Accrued interest		443		—		—

Total cash equivalents and marketable securities	$	56,814	$	49,873	$	—

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 corporate debt securities and municipal bonds rated at least A quality or equivalent, U.S. Treasury notes and bonds, U.S. and state government agency-backed securities 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 three months ended March 31, 2013 and 2012 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 (loss).

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 (loss) 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. 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. If a reliable estimate of the annual effective tax rate cannot be made, the Company considers the effective tax rate for the year to date to be the best estimate. Accordingly, the income tax provisions for the three months ended March 31, 2013 were determined based on the actual year to date effective tax rate because a reliable estimate of the annual effective tax rate cannot be made. 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 March 31,
	2013			2012
Basic:
Net (loss) income	$	(8,066	)	$	2,259

Weighted average common shares - basic		33,616,342			33,390,286

Basic EPS	$	(0.24	)	$	0.07

Diluted:
Net (loss) income	$	(8,066	)	$	2,259

Weighted average common shares - basic		33,616,342			33,390,286
Common share equivalents		—			431,724

Weighted average common shares - diluted		33,616,342			33,822,010

Diluted EPS	$	(0.24	)	$	0.07

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-month period ended March 31, 2013, the Company excluded all common share equivalents from the calculation of Diluted EPS because the Company had a net loss. As a result, Diluted EPS is identical to Basic EPS for that period. If the Company had been in a net income position for the three months ended March 31, 2013, 4,778,219 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 the three months ended March 31, 2012, a period for which the Company had net income, and consequently not included in the calculation of common share equivalents totaled 2,467,564, calculated on a weighted average basis.

Common Stock and Stock-Based Compensation

The Company issued 1,594 shares of common stock upon the exercise of stock options during the three months ended March 31, 2013. The Company issued 231,678 shares of common stock upon the exercise of stock options during the year ended December 31, 2012.

The Company granted to employees options to purchase an aggregate of 573,050 shares of common stock on January 17, 2013. These stock options have an estimated aggregate fair value, using the Black-Scholes-Merton formula, of $1,810,000. The Company is recording this amount, as adjusted for forfeitures, as stock-based compensation on a straight line basis over 16 quarters that began with the quarter ended March 31, 2013.

On March 31, 2013, the Company partially accelerated the vesting of, and extended the permitted period for exercise for, some outstanding stock options held by an executive officer who departed the Company. These modifications resulted in incremental compensation cost recorded by the Company for the three months ended March 31, 2013 of $467,000.

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 or losses on available-for-sale securities for all periods. The table below reflects changes in accumulated other comprehensive income for the three months ended March 31, 2013, in thousands.


Accumulated other comprehensive income, January 1, 2013	$	201
Unrealized loss on available-for-sale securities, net		(1	)
Net realized gains on available-for-sale securities reclassified from other comprehensive income		(12	)

Accumulated other comprehensive income, March 31, 2013	$	188

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

Under an employment agreement with a former executive officer and a related separation agreement and release, the Company has agreed to pay severance equal to the departing executive’s regular base salary as of March 31, 2013 for nine months, to pay a pro rata percentage of the departing executive’s target bonus for 2013, and to continue the departing executive’s health and life insurance benefits coverage provided to him as of March 31, 2013 for nine months. These payments and benefits, which represent an aggregate estimated amount of $306,000, were recorded as general and administrative expense for the three months ended March 31, 2013.

Company and Nature of Operations - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2013
Organization and Nature of Operations [Line Items]
Corporation formed	Mar. 07, 1997

Strategic Alliance and Collaboration Agreements - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		86 Months Ended
	Mar. 31, 2013	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Dec. 31, 2011	Sep. 30, 2011	Oct. 31, 2010	Dec. 31, 2009	Feb. 28, 2006
TC - 5214
Strategic Alliance And Collaboration [Line Items]
Initial fee								$ 200,000,000
Deferred revenue recognition period								33 months
Recognized of upfront fee as revenue			$ 21,797,000
Percentage of development costs, responsible party Rest of World		100.00%
Initial program cost for research and development			3,411,000
Allocable portion of the program costs			122,000
Clinical Trial TC-1734
Strategic Alliance And Collaboration [Line Items]
Recognized of initial fee as revenue and payments received under amendment		$ 3,536,000	$ 810,000
AstraZeneca
Strategic Alliance And Collaboration [Line Items]
Initial fee									$ 10,000,000
Allocation of initial fee to research collaboration									$ 5,000,000
Term of research collaboration									4 years
Initial fee unrecognized, recognition deferred									$ 5,000,000
Revenue recognized as a result of AstraZeneca's exercise of its termination right	$ 3,142,000
Aggregate amount received for research and development process				$ 88,120,000
AstraZeneca \| TC - 5214
Strategic Alliance And Collaboration [Line Items]
Percentage cost of the program attributable to respective party US and Europe	80.00%	80.00%		80.00%
AstraZeneca \| Clinical Trial TC-1734
Strategic Alliance And Collaboration [Line Items]
Amount received for research and development process					$ 3,500,000	$ 2,000,000	$ 500,000
AstraZeneca \| Development Milestone Events \| AZD 1446
Strategic Alliance And Collaboration [Line Items]
Contingent milestone payment		$ 2,000,000
AstraZeneca \| Development Milestone Events \| AZD 1446 \| Minimum
Strategic Alliance And Collaboration [Line Items]
Additional payments receivable on milestone achievements	$ 7,000,000	7,000,000		$ 7,000,000
AstraZeneca \| Development Milestone Events \| AZD 1446 \| Maximum
Strategic Alliance And Collaboration [Line Items]
Additional payments receivable on milestone achievements	14,000,000	14,000,000		14,000,000
AstraZeneca \| Regulatory Milestone Events \| AZD 1446 \| Minimum
Strategic Alliance And Collaboration [Line Items]
Additional payments receivable on milestone achievements	8,000,000	8,000,000		8,000,000
AstraZeneca \| Regulatory Milestone Events \| AZD 1446 \| Maximum
Strategic Alliance And Collaboration [Line Items]
Additional payments receivable on milestone achievements	10,000,000	10,000,000		10,000,000
AstraZeneca \| First Commercial Sale Milestone Events \| AZD 1446 \| Minimum
Strategic Alliance And Collaboration [Line Items]
Additional payments receivable on milestone achievements	12,000,000	12,000,000		12,000,000
AstraZeneca \| First Commercial Sale Milestone Events \| AZD 1446 \| Maximum
Strategic Alliance And Collaboration [Line Items]
Additional payments receivable on milestone achievements	49,000,000	49,000,000		49,000,000
AstraZeneca \| Sales Milestone \| AZD 1446 \| Maximum
Strategic Alliance And Collaboration [Line Items]
Additional payments receivable on milestone achievements	30,000,000	30,000,000		30,000,000
AstraZeneca \| Other Milestones \| AZD 1446 \| Maximum
Strategic Alliance And Collaboration [Line Items]
Additional payments receivable on milestone achievements	$ 35,000,000	$ 35,000,000		$ 35,000,000
Parent Company \| TC - 5214
Strategic Alliance And Collaboration [Line Items]
Percentage cost of the program attributable to respective party US and Europe	20.00%	20.00%		20.00%

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 17, 2013	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Significant Accounting Policies [Line Items]
Shares subject to outstanding stock options		4,778,219	2,467,564
Shares issued upon exercise of stock options		1,594		231,678
Options granted to purchase common stock	573,050
Fair value Shares issued under Stock option program	$ 1,810,000
Incremental cost from stock option modification		$ 467,000
Executive's severance cost		$ 306,000

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

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+ Details

- 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.

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+ Details

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2013

Investments In Marketable Securities Measured at Fair Value On Recurring Basis


March 31, 2013	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	$	44,359	$	—	$	—
Corporate debt securities		—		47,730		—
Municipal bonds		—		2,700		—
Certificates of deposit		10,000		—		—
Accrued interest		409		—		—

Total cash equivalents and marketable securities	$	54,768	$	50,430	$	—


December 31, 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	$	46,371	$	—	$	—
Corporate debt securities		—		47,173		—
Municipal bonds		—		2,700		—
Certificates of deposit		10,000		—		—
Accrued interest		443		—		—

Total cash equivalents and marketable securities	$	56,814	$	49,873	$	—

Summary of Calculations of Basic EPS and Diluted EPS

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 March 31,
	2013			2012
Basic:
Net (loss) income	$	(8,066	)	$	2,259

Weighted average common shares - basic		33,616,342			33,390,286

Basic EPS	$	(0.24	)	$	0.07

Diluted:
Net (loss) income	$	(8,066	)	$	2,259

Weighted average common shares - basic		33,616,342			33,390,286
Common share equivalents		—			431,724

Weighted average common shares - diluted		33,616,342			33,822,010

Diluted EPS	$	(0.24	)	$	0.07

Changes in Accumulated Other Comprehensive Income or Loss

The table below reflects changes in accumulated other comprehensive income for the three months ended March 31, 2013, in thousands.


Accumulated other comprehensive income, January 1, 2013	$	201
Unrealized loss on available-for-sale securities, net		(1	)
Net realized gains on available-for-sale securities reclassified from other comprehensive income		(12	)

Accumulated other comprehensive income, March 31, 2013	$	188

- 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 - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Investment [Line Items]
Unrealized gains on marketable securities	$ 298	$ 317
Unrealized losses on marketable securities	$ 9	$ 15
Unrealized loss position, period	Less than 12 months
Maturity date of investments in marketable securities, range start	2013-04
Maturity date of investments in marketable securities, range end	2016-03
Weighted average maturity date	2014-07

Investments in Marketable Securities (Tables)

3 Months Ended

Mar. 31, 2013

Reconciliation of Amortized Cost to Fair Value of Available-For-Sale Marketable Securities

The following is a reconciliation of amortized cost to fair value of available-for-sale marketable securities (including, if applicable, those classified on the Company’s balance sheet as cash equivalents) held at March 31, 2013 and December 31, 2012:


March 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Security type
Cash Equivalents
Corporate debt securities	$	—	$	—	$	—		$	—
Marketable Securities - Short term
U.S. Treasury and U.S. or state government agency-backed securities		16,069		13		—			16,082
Corporate debt securities		13,765		22		—			13,787
Certificates of deposit		10,000		—		—			10,000
Accrued interest		109		—		—			109
Marketable Securities - Long term
U.S. Treasury and U.S. or state government agency-backed securities		28,206		73		(2	)		28,277
Corporate debt securities - long term		33,770		180		(7	)		33,943
Municipal bonds		2,690		10		—			2,700
Accrued interest		300		—		—			300

Total available-for-sale marketable securities	$	104,909	$	298	$	(9	)	$	105,198


December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Security type
Cash Equivalents
Corporate debt securities	$	4,000	$	—	$	—		$	4,000
Marketable Securities - Short term
U.S. Treasury and U.S. or state government agency-backed securities		25,412		27		—			25,439
Corporate debt securities		7,193		16		—			7,209
Certificates of deposit		10,000		—		—			10,000
Accrued interest		73		—		—			73
Marketable Securities - Long term
U.S. Treasury and U.S. or state government agency-backed securities		20,846		86		—			20,932
Corporate debt securities - long term		35,802		177		(15	)		35,964
Municipal bonds		2,689		11		—			2,700
Accrued interest		370		—		—			370

Total available-for-sale marketable securities	$	106,385	$	317	$	(15	)	$	106,687

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2013	Apr. 30, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Trading Symbol	TRGT
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		33,618,675

Investments in Marketable Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 104,909	$ 106,385
Gross Unrealized Gains	298	317
Gross Unrealized Losses	(9)	(15)
Fair Value	105,198	106,687
Cash Equivalents \| Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		4,000
Fair Value		4,000
Marketable Securities - Short term \| Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	13,765	7,193
Gross Unrealized Gains	22	16
Fair Value	13,787	7,209
Marketable Securities - Short term \| US Treasury and Government
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	16,069	25,412
Gross Unrealized Gains	13	27
Fair Value	16,082	25,439
Marketable Securities - Short term \| Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,000	10,000
Fair Value	10,000	10,000
Marketable Securities - Short term \| Accrued Interest
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	109	73
Fair Value	109	73
Marketable Securities - Long term \| Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	33,770	35,802
Gross Unrealized Gains	180	177
Gross Unrealized Losses	(7)	(15)
Fair Value	33,943	35,964
Marketable Securities - Long term \| US Treasury and Government
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	28,206	20,846
Gross Unrealized Gains	73	86
Gross Unrealized Losses	(2)
Fair Value	28,277	20,932
Marketable Securities - Long term \| Municipal Bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,690	2,689
Gross Unrealized Gains	10	11
Fair Value	2,700	2,700
Marketable Securities - Long term \| Accrued Interest
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	300	370
Fair Value	$ 300	$ 370

Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2013	Dec. 31, 2012
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	33,616,675	33,615,081
Common stock, shares outstanding	33,616,675	33,615,081
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

The Company and Nature of Operations

3 Months Ended

Mar. 31, 2013

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 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 Calculations of Basic EPS and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Basic:
Net (loss) income	$ (8,066)	$ 2,259
Weighted average common shares-basic	33,616,342	33,390,286
Basic EPS	$ (0.24)	$ 0.07
Diluted:
Net (loss) income	$ (8,066)	$ 2,259
Weighted average common shares-basic	33,616,342	33,390,286
Common share equivalents		431,724
Weighted average common shares-diluted	33,616,342	33,822,010
Diluted EPS	$ (0.24)	$ 0.07

- Definition

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

+ References

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-Name Regulation S-X (SX)
-Number 210
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+ 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

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-URI http://asc.fasb.org/extlink&oid=6519514

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-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

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+ Details

Investments in Marketable Securities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	$ 105,198	$ 106,687
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	54,768	56,814
Fair Value, Inputs, Level 1 \| US Treasury and Government
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	44,359	46,371
Fair Value, Inputs, Level 1 \| Certificates of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	10,000	10,000
Fair Value, Inputs, Level 1 \| Accrued Interest
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	409	443
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	50,430	49,873
Fair Value, Inputs, Level 2 \| Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	47,730	47,173
Fair Value, Inputs, Level 2 \| Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	$ 2,700	$ 2,700

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

+ References + Details

Income Taxes - Additional Information (Detail)	3 Months Ended
Income Taxes - Additional Information (Detail)	Mar. 31, 2013 USD ($)
Income Tax [Line Items]
Cumulative tax deductions for periods of net loss from exercises of stock options	$ 7,540,000

Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Operating revenues:
License fees and milestones from collaborations	$ 3,536	$ 22,607
Grant revenue		250
Net operating revenues	3,536	22,857
Operating expenses:
Research and development (including stock-based compensation of $779 and $1,094 for the three months ended March 31, 2013 and 2012, respectively)	8,320	17,801
General and administrative (including stock-based compensation of $835 and $822 for the three months ended March 31, 2013 and 2012, respectively)	3,490	3,070
Total operating expenses	11,810	20,871
(Loss) income from operations	(8,274)	1,986
Other income (expense):
Interest income	224	299
Interest expense	(16)	(26)
Total other income (expense)	208	273
Net (loss) income	$ (8,066)	$ 2,259
Basic net (loss) income per share	$ (0.24)	$ 0.07
Diluted net (loss) income per share	$ (0.24)	$ 0.07
Weighted average common shares outstanding - basic	33,616,342	33,390,286
Weighted average common shares outstanding - diluted	33,616,342	33,822,010
Unrealized (loss) gain on available-for-sale securities, net	$ (13)	$ 191
Comprehensive (loss) income	$ (8,079)	$ 2,450

Changes in Accumulated Other Comprehensive Income Loss (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2013 USD ($)
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, January 1, 2013	$ 201
Unrealized loss on available-for-sale securities, net	(1)
Net realized gains on available-for-sale securities reclassified from other comprehensive income	(12)
Accumulated other comprehensive income, March 31, 2013	$ 188

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-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
-SubTopic 10
-Section 45
-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

- Definition

Before tax amount of the income statement impact of the reclassification adjustment for unrealized gain (loss) realized upon the sale of available-for-sale securities.

+ 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e709-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e689-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e716-108580

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 18, 19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 24
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Investments in Marketable Securities

3 Months Ended

Mar. 31, 2013

Investments in Marketable Securities

3. Investments in Marketable Securities


March 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Security type
Cash Equivalents
Corporate debt securities	$	—	$	—	$	—		$	—
Marketable Securities - Short term
U.S. Treasury and U.S. or state government agency-backed securities		16,069		13		—			16,082
Corporate debt securities		13,765		22		—			13,787
Certificates of deposit		10,000		—		—			10,000
Accrued interest		109		—		—			109
Marketable Securities - Long term
U.S. Treasury and U.S. or state government agency-backed securities		28,206		73		(2	)		28,277
Corporate debt securities - long term		33,770		180		(7	)		33,943
Municipal bonds		2,690		10		—			2,700
Accrued interest		300		—		—			300

Total available-for-sale marketable securities	$	104,909	$	298	$	(9	)	$	105,198


December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Security type
Cash Equivalents
Corporate debt securities	$	4,000	$	—	$	—		$	4,000
Marketable Securities - Short term
U.S. Treasury and U.S. or state government agency-backed securities		25,412		27		—			25,439
Corporate debt securities		7,193		16		—			7,209
Certificates of deposit		10,000		—		—			10,000
Accrued interest		73		—		—			73
Marketable Securities - Long term
U.S. Treasury and U.S. or state government agency-backed securities		20,846		86		—			20,932
Corporate debt securities - long term		35,802		177		(15	)		35,964
Municipal bonds		2,689		11		—			2,700
Accrued interest		370		—		—			370

Total available-for-sale marketable securities	$	106,385	$	317	$	(15	)	$	106,687

As of March 31, 2013, the Company held investments in marketable securities with unrealized gains of $298,000 and unrealized losses of $9,000. For the investments in an unrealized loss position, the duration of the loss was less than 12 months and they are not considered to be other-than-temporarily impaired.

As of March 31, 2013, the Company’s investments in marketable securities reach maturity between April 2013 and March 2016 with a weighted average maturity date in July 2014.

Strategic Alliance and Collaboration Agreements

3 Months Ended

Mar. 31, 2013

Strategic Alliance and Collaboration Agreements

5. Strategic Alliance and Collaboration Agreements

AstraZeneca AB

In December 2005, the Company entered into a collaborative research and license agreement with AstraZeneca AB that was initially focused in cognitive disorders. In March 2013, the Company and AstraZeneca amended the agreement. As amended, the agreement permits AstraZeneca to pursue development and commercialization of compounds that it has licensed from the Company in any therapeutic area.

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 a preclinical research collaboration that the Company conducted with AstraZeneca under the agreement, 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 grants of licenses to develop and commercialize the Company’s product candidate TC-1734 (formerly known also as AZD3480), until December 2006, when AstraZeneca made a determination to proceed with further development of TC-1734. 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 TC-1734. In September 2010, the Company and AstraZeneca amended the agreement to enable the Company to conduct a clinical trial of TC-1734 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 2010 amendment, the Company received from AstraZeneca $500,000 in October 2010, $2,000,000 in September 2011 and $3,500,000 in December 2011.

In March 2013, AstraZeneca exercised its right to terminate TC-1734 from the collaboration. At that time, the Company was recognizing both the portion of the $5,000,000 of the initial fee attributable to TC-1734 license grants not yet recognized and the payments received under the 2010 amendment into revenue on a straight-line basis over the period of the Company’s substantive performance obligations under the agreement as amended. As a result of AstraZeneca’s exercise of its termination right for TC-1734, the Company recognized into revenue the portion of these amounts not yet recognized as of the date of AstraZeneca’s action, totaling $3,142,000. The Company recognized an aggregate of $3,536,000 and $810,000 of the initial fee and the payments received under the 2010 amendment as revenue for the three months ended March 31, 2013 and 2012, respectively. As of March 31, 2013, the initial fee and the payments received under the 2010 amendment had been fully recognized into revenue.

The Company is eligible to receive additional payments from AstraZeneca if specified milestone events under the agreement are achieved for the Company’s product candidate AZD1446. The amounts of the contingent milestone payments vary depending on the applicable indication pursued and range from an additional $7,000,000 to $14,000,000 if development milestone events are achieved, an additional $8,000,000 to $10,000,000 if a regulatory milestone event is achieved, up to an additional $12,000,000 to $49,000,000 if first commercial sale milestone events are achieved and, in specified circumstances, up to an additional $30,000,000 if sales-related milestone events are achieved. If regulatory approval is achieved for AZD1446 for any indication, the Company is also eligible to receive stepped royalties on any sales of AZD1446 for that indication or any other indication. If AZD1446 is subsequently developed under the agreement for other indications, the Company would also be eligible to receive contingent milestone payments of up to $35,000,000 for each successive indication, if development, regulatory and first detail milestone events are achieved. Based solely on projected activities and timelines, the Company expects that the maximum amount of contingent milestone payments that could conceivably be earned during 2013 with respect to AZD1446 is $2,000,000, if a development milestone event is achieved. The likelihood that the Company will earn that milestone amount or achieve any particular milestone event with respect to AZD1446 in 2013 or in any future period is uncertain, and the Company may not earn any milestone amount or achieve any milestone event with respect to AZD1446 in 2013 or ever.

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

AstraZeneca has paid the Company an aggregate of $88,120,000 under the agreement since its inception, including the initial fee and payments upon the achievement of milestone events, to maintain option rights and for research services rendered in the completed preclinical research collaboration. As of March 31, 2013, this entire amount had been fully recognized into revenue.

Prior Collaboration Agreement

In December 2009, the Company entered into a collaboration and license agreement with AstraZeneca AB for the global development and commercialization of TC-5214 as a treatment for major depressive disorder. 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. The Company recognized $21,797,000 of the upfront payment as revenue for the three months ended March 31, 2012.

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 that were required only for 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 $3,411,000, for the three months ended March 31, 2012. AstraZeneca’s allocable portion of the program costs paid by the Company was $122,000 for the three months ended March 31, 2012. 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 would 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, and the Company revised the revenue recognition period for the upfront payment previously received accordingly. As a result, the entire upfront payment was recognized into revenue by June 30, 2012. 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 May 2012.

Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Mar. 31, 2013	Mar. 31, 2012
Operating activities
Net (loss) income	$ (8,066)	$ 2,259
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Recognition of deferred revenue	(3,536)	(22,857)
Amortization of premium on marketable securities, net	226	239
Depreciation and amortization	213	632
Stock-based compensation expense	1,614	1,916
Changes in operating assets and liabilities:
Receivables from collaborations	997	(101)
Other assets	(141)	1,036
Accounts payable and accrued expenses	(627)	(8,274)
Deferred revenue		250
Net cash used in operating activities	(9,320)	(24,900)
Investing activities
Purchase of investments in marketable securities	(19,242)	(41,916)
Proceeds from sale of investments in marketable securities	16,459	48,754
Purchase of property and equipment	(70)	(46)
Net cash (used in) provided by investing activities	(2,853)	6,792
Financing activities
Principal payments on long-term debt	(211)	(555)
Proceeds from issuance of common stock, net	5	48
Net cash used in financing activities	(206)	(507)
Net decrease in cash and cash equivalents	(12,379)	(18,615)
Cash and cash equivalents at beginning of period	82,240	107,283
Cash and cash equivalents at end of period	$ 69,861	$ 88,668

Income Taxes

3 Months Ended

Mar. 31, 2013

Income Taxes

4. Income Taxes

For the three months ended March 31, 2013 and 2012, the Company did not recognize any income tax expense or benefit. 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 March 31, 2013, the Company had $7,540,000 of cumulative tax deductions for periods of net loss from exercises of stock options in excess of expense recorded for the stock options under GAAP. The benefit of these excess tax deductions had not begun to be realized as of March 31, 2013 because the Company incurred net operating losses in the years the respective stock options were exercised and 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.

The Company’s 2010 federal income tax return is currently under examination. 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

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2013

Basis of Presentation

Basis of Presentation

Use of Estimates

Use of Estimates

Fair Value Measurement

Fair Value Measurement

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 assets.


March 31, 2013	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	$	44,359	$	—	$	—
Corporate debt securities		—		47,730		—
Municipal bonds		—		2,700		—
Certificates of deposit		10,000		—		—
Accrued interest		409		—		—

Total cash equivalents and marketable securities	$	54,768	$	50,430	$	—


December 31, 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	$	46,371	$	—	$	—
Corporate debt securities		—		47,173		—
Municipal bonds		—		2,700		—
Certificates of deposit		10,000		—		—
Accrued interest		443		—		—

Total cash equivalents and marketable securities	$	56,814	$	49,873	$	—

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

Investments in Marketable Securities

Revenue Recognition

Revenue Recognition

Income Taxes

Income Taxes

Net Income or Loss Per Share

Net Income or Loss Per Share


	Three Months Ended March 31,
	2013			2012
Basic:
Net (loss) income	$	(8,066	)	$	2,259

Weighted average common shares - basic		33,616,342			33,390,286

Basic EPS	$	(0.24	)	$	0.07

Diluted:
Net (loss) income	$	(8,066	)	$	2,259

Weighted average common shares - basic		33,616,342			33,390,286
Common share equivalents		—			431,724

Weighted average common shares - diluted		33,616,342			33,822,010

Diluted EPS	$	(0.24	)	$	0.07

Common Stock and Stock-Based Compensation

Common Stock and Stock-Based Compensation

Accumulated Other Comprehensive Income or Loss

Accumulated Other Comprehensive Income or Loss


Accumulated other comprehensive income, January 1, 2013	$	201
Unrealized loss on available-for-sale securities, net		(1	)
Net realized gains on available-for-sale securities reclassified from other comprehensive income		(12	)

Accumulated other comprehensive income, March 31, 2013	$	188

Intellectual Property

Intellectual Property

Commitments and Contingencies

Commitments and Contingencies