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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2013	Jul. 31, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
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		33,637,011

Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 63,059	$ 82,240
Investments in marketable securities - short term	37,138	42,721
Receivables from collaborations	108	1,380
Prepaid expenses	1,803	1,402
Assets held for sale	413
Total current assets	102,521	127,743
Investments in marketable securities - long term	63,810	59,966
Property and equipment, net	944	1,639
Intangible assets	106	115
Other assets	105	116
Total assets	167,486	189,579
Current liabilities:
Accounts payable	2,207	2,056
Accrued expenses	5,533	6,085
Current portion of long-term debt	866	851
Current portion of deferred revenue		2,357
Total current liabilities	8,606	11,349
Long-term debt, net of current portion	699	1,136
Deferred revenue, net of current portion		1,179
Total liabilities	9,305	13,664
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value, 100,000,000 shares authorized and 33,637,011 and 33,615,081 shares issued and outstanding at June 30, 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 June 30, 2013 and December 31, 2012
Capital in excess of par value	412,526	409,608
Accumulated other comprehensive (loss) income	(14)	201
Accumulated deficit	(254,365)	(233,928)
Total stockholders' equity	158,181	175,915
Total liabilities and stockholders' equity	$ 167,486	$ 189,579

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 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	33,637,011	33,615,081
Common stock, shares outstanding	33,637,011	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

Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Operating revenues:
License fees and milestones from collaborations		$ 33,487	$ 3,536	$ 56,094
Grant revenue		158		408
Net operating revenues		33,645	3,536	56,502
Operating expenses:
Research and development (including stock-based compensation of $597 and $1,044 for the three months ended June 30, 2013 and 2012, respectively; and $1,376 and $2,138 for the six months ended June 30, 2013 and 2012, respectively)	$ 9,454	12,512	17,774	30,313
General and administrative (including stock-based compensation of $655 and $2,067 for the three months ended June 30, 2013 and 2012, respectively; and $1,490 and $2,890 for the six months ended June 30, 2013 and 2012, respectively)	3,034	4,587	6,524	7,657
Restructuring charges		2,312		2,312
Total operating expenses	12,488	19,411	24,298	40,282
(Loss) income from operations	(12,488)	14,234	(20,762)	16,220
Other income (expense):
Interest income	131	280	355	579
Interest expense	(14)	(22)	(30)	(48)
Total other income (expense)	117	258	325	531
Net (loss) income	$ (12,371)	$ 14,492	$ (20,437)	$ 16,751
Basic net (loss) income per share	$ (0.37)	$ 0.43	$ (0.61)	$ 0.50
Diluted net (loss) income per share	$ (0.37)	$ 0.43	$ (0.61)	$ 0.50
Weighted average common shares outstanding - basic	33,626,980	33,409,341	33,621,691	33,399,814
Weighted average common shares outstanding - diluted	33,626,980	33,638,629	33,621,691	33,701,857
Net (loss) income	$ (12,371)	$ 14,492	$ (20,437)	$ 16,751
Unrealized (loss) gain on available-for-sale securities, net	(202)	(33)	(215)	158
Comprehensive (loss) income	$ (12,573)	$ 14,459	$ (20,652)	$ 16,909

Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Research and development
Stock-based compensation	$ 597	$ 1,044	$ 1,376	$ 2,138
General and Administrative Expense
Stock-based compensation	$ 655	$ 2,067	$ 1,490	$ 2,890

Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Operating activities
Net (loss) income	$ (20,437)	$ 16,751
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Recognition of deferred revenue	(3,536)	(56,502)
Amortization of premium on marketable securities, net	530	477
Depreciation and amortization	383	1,262
Stock-based compensation expense	2,866	5,028
Changes in operating assets and liabilities:
Receivables from collaborations	1,272	(129)
Other assets	(412)	1,162
Accounts payable and accrued expenses	(401)	(10,724)
Deferred revenue		440
Net cash used in operating activities	(19,735)	(42,235)
Investing activities
Purchase of investments in marketable securities	(35,927)	(76,524)
Proceeds from sale of investments in marketable securities	36,943	83,913
Purchase of property and equipment	(92)	(137)
Net cash provided by investing activities	924	7,252
Financing activities
Principal payments on long-term debt	(422)	(793)
Proceeds from issuance of common stock, net	52	138
Net cash used in financing activities	(370)	(655)
Net decrease in cash and cash equivalents	(19,181)	(35,638)
Cash and cash equivalents at beginning of period	82,240	107,283
Cash and cash equivalents at end of period	$ 63,059	$ 71,645

The Company and Nature of Operations

6 Months Ended

Jun. 30, 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 Significant Accounting Policies

6 Months Ended

Jun. 30, 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 and six months ended June 30, 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 June 30, 2013 and December 31, 2012, respectively:


June 30, 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	$	45,310	$	—	$	—
Corporate debt securities		—		46,664		—
Municipal bonds		—		3,510		—
Certificates of deposit		10,000		—		—
Accrued interest		464		—		—

Total cash equivalents and marketable securities	$	55,774	$	50,174	$	—


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.

During the three months ended June 30, 2013, the Company determined that certain property and equipment met the criteria for classification as held for sale as established by the subsequent measurement provisions of ASC Topic 360, Property Plant and Equipment. As a result, the Company reclassified the assets from property and equipment to held for sale on its balance sheet as of June 30, 2013 and recorded the assets at the lower of carrying value or fair value less cost to sell. Assets classified as held for sale are no longer subject to depreciation. The Company estimated that the fair value of the equipment at June 30, 2013 was equal to its carrying value of $413,000 and, as a result, did not record an impairment charge on the assets held for sale. For $100,000 of the carrying value of the assets held for sale, the Company estimated the respective fair values primarily using terms offered by potential purchasers and also using actual sales that occurred subsequent to June 30, 2013. For the remaining $313,000 of the carrying value of the assets held for sale, the applicable equipment is highly specialized with a limited number of potential buyers, and the Company estimated fair value based on preliminary negotiations, which are Level 3 inputs.

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 six months ended June 30, 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 or development 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 and six months ended June 30, 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 June 30,					Six Months Ended June 30,
	2013			2012		2013			2012
Basic:
Net (loss) income	$	(12,371	)	$	14,492	$	(20,437	)	$	16,751

Weighted average common shares - basic		33,626,980			33,409,341		33,621,691			33,399,814

Basic EPS	$	(0.37	)	$	0.43	$	(0.61	)	$	0.50

Diluted:
Net (loss) income	$	(12,371	)	$	14,492	$	(20,437	)	$	16,751

Weighted average common shares - basic		33,626,980			33,409,341		33,621,691			33,399,814
Common share equivalents		—			229,288		—			302,043

Weighted average common shares - diluted		33,626,980			33,638,629		33,621,691			33,701,857

Diluted EPS	$	(0.37	)	$	0.43	$	(0.61	)	$	0.50

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- and six-month periods ended June 30, 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 those periods. If the Company had been in a net income position for the three and six months ended June 30, 2013, 4,708,306 and 4,743,069 shares subject to outstanding stock options, respectively, 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 and six months ended June 30, 2012, periods for which the Company had net income, and consequently not included in the calculation of common share equivalents totaled 3,793,921 and 3,278,572, respectively, calculated on a weighted average basis.

Common Stock and Stock-Based Compensation

The Company issued 21,930 shares of common stock upon the exercise of stock options during the six months ended June 30, 2013. The Company issued 231,678 shares of common stock upon the exercise of stock options during the year ended December 31, 2012.

During the six months ended June 30, 2013, the Company granted to employees options to purchase an aggregate of 743,050 shares of common stock. These stock options have an estimated aggregate fair value, using the Black-Scholes-Merton formula, of $2,473,000. The Company is recording this amount, as adjusted for forfeitures, as stock-based compensation on a straight line basis over 16 quarters beginning on the last day of the respective quarters in which the grants were made.

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 six months ended June 30, 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 six months ended June 30, 2013, in thousands.


Accumulated other comprehensive income, January 1, 2013	$	201
Unrealized loss on available-for-sale securities, net		(228	)
Net realized gains on available-for-sale securities reclassified from other comprehensive income		13

Accumulated other comprehensive loss, June 30, 2013	$	(14	)

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 six months ended June 30, 2013.

Investments in Marketable Securities

6 Months Ended

Jun. 30, 2013

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, 2013 and December 31, 2012:


June 30, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Security type
Cash Equivalents
U.S. Treasury and U.S. or state government agency-backed securities	$	5,000	$	—	$	—		$	5,000
Marketable Securities - Short term
U.S. Treasury and U.S. or state government agency-backed securities		10,702		10		—			10,712
Corporate debt securities		14,872		23		—			14,895
Municipal bonds		1,409		3					1,412
Certificates of deposit		10,000		—		—			10,000
Accrued interest		119		—		—			119
Marketable Securities - Long term
U.S. Treasury and U.S. or state government agency-backed securities		29,571		48		(21	)		29,598
Corporate debt securities - long term		31,745		87		(63	)		31,769
Municipal bonds		2,098		5		(5	)		2,098
Accrued interest		345		—		—			345

Total available-for-sale marketable securities	$	105,861	$	176	$	(89	)	$	105,948


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 June 30, 2013, the Company held investments in marketable securities with unrealized gains of $176,000 and unrealized losses of $89,000. For the investments in an unrealized loss position, the duration of the loss was less than 12 months and the investments are not considered to be other-than-temporarily impaired. As of June 30, 2013, the Company’s investments in marketable securities reach maturity between July 2013 and June 2016 with a weighted average maturity date in September 2014.

Income Taxes

6 Months Ended

Jun. 30, 2013

Income Taxes

4. Income Taxes

For the three and six months ended June 30, 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 June 30, 2013, the Company had $7,549,000 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 June 30, 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.

Strategic Alliance and Collaboration Agreements

6 Months Ended

Jun. 30, 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 for the first quarter of 2013 all of the initial fee and payments received under the 2010 amendment that had not yet been recognized as of the date of AstraZeneca’s action, totaling $3,142,000. The Company recognized an aggregate of $810,000 of the initial fee and the payments received under the 2010 amendment into revenue for the three months ended June 30, 2012. The Company recognized an aggregate of $3,536,000 and $1,621,000 of the initial fee and the payments received under the 2010 amendment into revenue for the six months ended June 30, 2013 and 2012, respectively.

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 (TC-6683). 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 all sales of AZD1446. 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 earliest that a contingent milestone payment could conceivably be earned with respect to AZD1446 is 2014, in the amount of $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 2014 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 2014 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 June 30, 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 $32,676,000 and $54,473,000 of the upfront payment as revenue for the three and six months ended June 30, 2012.

Under the agreement, AstraZeneca was responsible for 80% and the Company was responsible for 20% of the costs of the global development program for TC-5214 in major depressive disorder, 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 program was $1,369,000 and $4,779,000, for the three and six months ended June 30, 2012, respectively. AstraZeneca’s allocable portion of the program costs paid by the Company was $6,000 and $127,000 for the three and six months ended June 30, 2012, 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 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. These determinations 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.

Reduction in Force

6 Months Ended

Jun. 30, 2013

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 more advanced programs. 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 three and six months ended June 30, 2012. Upon the completion of the restructuring, the Company’s workforce was reduced by 65 employees, or approximately 46%.

On October 8, 2012, the Company announced a further reduction in force and the closing of its laboratory operations. Both of these actions were completed in the fourth quarter of 2012. The Company recorded as expense and paid $1,406,000 in severance and other charges related to the reduction in force for the three months ended December 31, 2012. Upon the completion of the restructuring, the Company’s workforce was further reduced by 27 employees, or approximately 38%.

Following the closing of laboratory operations and two reductions in force, the Company sold laboratory equipment and office furniture and fixtures with a book value of $1,534,000, resulting in cumulative gain of $55,000. During the three months ended June 30, 2013, the Company committed to a plan to sell additional laboratory equipment and office furniture and fixtures. These assets, which have a fair value of $413,000, are classified as held for sale on the Company’s balance sheet as of June 30, 2013. See the Fair Value Measurement accounting policy discussion in Note 2.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 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.


June 30, 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	$	45,310	$	—	$	—
Corporate debt securities		—		46,664		—
Municipal bonds		—		3,510		—
Certificates of deposit		10,000		—		—
Accrued interest		464		—		—

Total cash equivalents and marketable securities	$	55,774	$	50,174	$	—


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 June 30,					Six Months Ended June 30,
	2013			2012		2013			2012
Basic:
Net (loss) income	$	(12,371	)	$	14,492	$	(20,437	)	$	16,751

Weighted average common shares - basic		33,626,980			33,409,341		33,621,691			33,399,814

Basic EPS	$	(0.37	)	$	0.43	$	(0.61	)	$	0.50

Diluted:
Net (loss) income	$	(12,371	)	$	14,492	$	(20,437	)	$	16,751

Weighted average common shares - basic		33,626,980			33,409,341		33,621,691			33,399,814
Common share equivalents		—			229,288		—			302,043

Weighted average common shares - diluted		33,626,980			33,638,629		33,621,691			33,701,857

Diluted EPS	$	(0.37	)	$	0.43	$	(0.61	)	$	0.50

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		(228	)
Net realized gains on available-for-sale securities reclassified from other comprehensive income		13

Accumulated other comprehensive loss, June 30, 2013	$	(14	)

Intellectual Property

Intellectual Property

Commitments and Contingencies

Commitments and Contingencies

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2013

Investments In Marketable Securities Measured at Fair Value On Recurring Basis


June 30, 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	$	45,310	$	—	$	—
Corporate debt securities		—		46,664		—
Municipal bonds		—		3,510		—
Certificates of deposit		10,000		—		—
Accrued interest		464		—		—

Total cash equivalents and marketable securities	$	55,774	$	50,174	$	—


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 June 30,					Six Months Ended June 30,
	2013			2012		2013			2012
Basic:
Net (loss) income	$	(12,371	)	$	14,492	$	(20,437	)	$	16,751

Weighted average common shares - basic		33,626,980			33,409,341		33,621,691			33,399,814

Basic EPS	$	(0.37	)	$	0.43	$	(0.61	)	$	0.50

Diluted:
Net (loss) income	$	(12,371	)	$	14,492	$	(20,437	)	$	16,751

Weighted average common shares - basic		33,626,980			33,409,341		33,621,691			33,399,814
Common share equivalents		—			229,288		—			302,043

Weighted average common shares - diluted		33,626,980			33,638,629		33,621,691			33,701,857

Diluted EPS	$	(0.37	)	$	0.43	$	(0.61	)	$	0.50

Changes in Accumulated Other Comprehensive Income or Loss

The table below reflects changes in accumulated other comprehensive income for the six months ended June 30, 2013, in thousands.


Accumulated other comprehensive income, January 1, 2013	$	201
Unrealized loss on available-for-sale securities, net		(228	)
Net realized gains on available-for-sale securities reclassified from other comprehensive income		13

Accumulated other comprehensive loss, June 30, 2013	$	(14	)

Investments in Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2013

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


June 30, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Security type
Cash Equivalents
U.S. Treasury and U.S. or state government agency-backed securities	$	5,000	$	—	$	—		$	5,000
Marketable Securities - Short term
U.S. Treasury and U.S. or state government agency-backed securities		10,702		10		—			10,712
Corporate debt securities		14,872		23		—			14,895
Municipal bonds		1,409		3					1,412
Certificates of deposit		10,000		—		—			10,000
Accrued interest		119		—		—			119
Marketable Securities - Long term
U.S. Treasury and U.S. or state government agency-backed securities		29,571		48		(21	)		29,598
Corporate debt securities - long term		31,745		87		(63	)		31,769
Municipal bonds		2,098		5		(5	)		2,098
Accrued interest		345		—		—			345

Total available-for-sale marketable securities	$	105,861	$	176	$	(89	)	$	105,948


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

Company and Nature of Operations - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2013
Organization and Nature of Operations [Line Items]
Corporation formed	Mar. 07, 1997

Investments in Marketable Securities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	$ 105,948	$ 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	55,774	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	45,310	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	464	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	50,174	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	46,664	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	$ 3,510	$ 2,700

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Oct. 08, 2012	Apr. 25, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Significant Accounting Policies [Line Items]
Assets held for sale			$ 413,000		$ 413,000
Shares subject to outstanding stock options			4,708,306	3,793,921	4,743,069	3,278,572
Shares issued upon exercise of stock options					21,930		231,678
Options granted to purchase common stock					743,050
Fair value Shares issued under Stock option program					$ 2,473,000
Incremental cost from stock option modification					467,000
Executive's severance cost	$ 1,406,000	$ 2,312,000			306,000
Fair Value, Inputs, Level 1
Significant Accounting Policies [Line Items]
Assets held for sale			$ 100,000		100,000
Fair Value, Inputs, Level 3
Significant Accounting Policies [Line Items]
Assets held for sale			$ 313,000		$ 313,000

Summary of Calculations of Basic EPS and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Basic:
Net (loss) income	$ (12,371)	$ 14,492	$ (20,437)	$ 16,751
Weighted average common shares - basic	33,626,980	33,409,341	33,621,691	33,399,814
Basic EPS	$ (0.37)	$ 0.43	$ (0.61)	$ 0.50
Diluted:
Net (loss) income	$ (12,371)	$ 14,492	$ (20,437)	$ 16,751
Weighted average common shares - basic	33,626,980	33,409,341	33,621,691	33,399,814
Common share equivalents		229,288		302,043
Weighted average common shares - diluted	33,626,980	33,638,629	33,621,691	33,701,857
Diluted EPS	$ (0.37)	$ 0.43	$ (0.61)	$ 0.50

- Definition

The amount of net income (loss) for the period per each share of common stock or unit 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=31042434&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
-Section 50
-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=26872669&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=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Changes in Accumulated Other Comprehensive Income Loss (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2013 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, January 1, 2013	$ 201
Unrealized loss on available-for-sale securities, net	(228)
Net realized gains on available-for-sale securities reclassified from other comprehensive income	13
Accumulated other comprehensive loss, June 30, 2013	$ (14)

- 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 + Details

Investments in Marketable Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 105,861	$ 106,385
Gross Unrealized Gains	176	317
Gross Unrealized Losses	(89)	(15)
Fair Value	105,948	106,687
Cash Equivalents \| US Treasury and Government
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,000
Fair Value	5,000
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 \| US Treasury and Government
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,702	25,412
Gross Unrealized Gains	10	27
Fair Value	10,712	25,439
Marketable Securities - Short term \| Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,872	7,193
Gross Unrealized Gains	23	16
Fair Value	14,895	7,209
Marketable Securities - Short term \| Municipal Bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,409
Gross Unrealized Gains	3
Fair Value	1,412
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	119	73
Fair Value	119	73
Marketable Securities - Long term \| US Treasury and Government
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	29,571	20,846
Gross Unrealized Gains	48	86
Gross Unrealized Losses	(21)
Fair Value	29,598	20,932
Marketable Securities - Long term \| Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	31,745	35,802
Gross Unrealized Gains	87	177
Gross Unrealized Losses	(63)	(15)
Fair Value	31,769	35,964
Marketable Securities - Long term \| Municipal Bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,098	2,689
Gross Unrealized Gains	5	11
Gross Unrealized Losses	(5)
Fair Value	2,098	2,700
Marketable Securities - Long term \| Accrued Interest
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	345	370
Fair Value	$ 345	$ 370

Investments in Marketable Securities - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Investment [Line Items]
Unrealized gains on marketable securities	$ 176,000	$ 317,000
Unrealized losses on marketable securities	$ 89,000
Unrealized loss position, period	Less than 12 months
Maturity date of investments in marketable securities, range start	2013-07
Maturity date of investments in marketable securities, range end	2016-06
Weighted average maturity date	2014-09

Income Taxes - Additional Information (Detail)	Jun. 30, 2013 USD ($)
Income Tax [Line Items]
Cumulative tax deductions for periods of net loss from exercises of stock options	$ 7,549,000

Strategic Alliance and Collaboration Agreements - Additional Information (Detail) - USD ($)	1 Months Ended					3 Months Ended			6 Months Ended		89 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Oct. 31, 2010	Dec. 31, 2009	Feb. 28, 2006	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Initial program cost for research and development						$ 9,454,000		$ 12,512,000	$ 17,774,000	$ 30,313,000
TC - 5214
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Amount received for research and development process				$ 200,000,000
Deferred revenue recognition period				33 months
Initial program cost for research and development								1,369,000		4,779,000
Allocable portion of the program costs								6,000		127,000
AstraZeneca
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Amount received for research and development process					$ 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
Recognized of initial fee as revenue and payments received under amendment							$ 3,142,000
Aggregate amount received for research and development process											$ 88,120,000
AstraZeneca \| Clinical Trial TC-1734
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Amount received for research and development process	$ 3,500,000	$ 2,000,000	$ 500,000
Recognized of initial fee as revenue and payments received under amendment								810,000	$ 3,536,000	1,621,000
AstraZeneca \| TC - 5214
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Recognized of initial fee as revenue and payments received under amendment								$ 32,676,000		$ 54,473,000
Percentage of development costs, responsible party Rest of World									100.00%
Percentage cost of the program attributable to respective party US and Europe						80.00%			80.00%		80.00%
AstraZeneca \| Development Milestone Events \| AZD 1446
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Contingent milestone payment						$ 2,000,000			$ 2,000,000		$ 2,000,000
AstraZeneca \| Development Milestone Events \| AZD 1446 \| Minimum
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Additional payments receivable on milestone achievements						7,000,000			7,000,000		7,000,000
AstraZeneca \| Development Milestone Events \| AZD 1446 \| Maximum
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Additional payments receivable on milestone achievements						14,000,000			14,000,000		14,000,000
AstraZeneca \| Regulatory Milestone Events \| AZD 1446 \| Minimum
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Additional payments receivable on milestone achievements						8,000,000			8,000,000		8,000,000
AstraZeneca \| Regulatory Milestone Events \| AZD 1446 \| Maximum
Revenue Recognition, Multiple-deliverable Arrangements [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
Revenue Recognition, Multiple-deliverable Arrangements [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
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Additional payments receivable on milestone achievements						49,000,000			49,000,000		49,000,000
AstraZeneca \| Sales Milestone \| AZD 1446 \| Maximum
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Additional payments receivable on milestone achievements						30,000,000			30,000,000		30,000,000
AstraZeneca \| Other Milestones \| AZD 1446 \| Maximum
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Additional payments receivable on milestone achievements						$ 35,000,000			$ 35,000,000		$ 35,000,000
Parent Company \| TC - 5214
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Percentage cost of the program attributable to respective party US and Europe						20.00%			20.00%		20.00%

Reduction in Force - Additional information (Detail)	1 Months Ended		6 Months Ended	12 Months Ended
Reduction in Force - Additional information (Detail)	Oct. 08, 2012 USD ($) Person	Apr. 25, 2012 USD ($) Person	Jun. 30, 2013 USD ($)	Dec. 31, 2012 USD ($)
Special Charges [Line Items]
Severance and other charges related to the reduction in force	$ 1,406,000	$ 2,312,000	$ 306,000
Number of positions eliminated \| Person	27	65
Percentage of workforce reduced	38.00%	46.00%
Book value of laboratory equipment and office furniture and fixtures sold				$ 1,534,000
Cumulative gain from disposal of laboratory equipment and office furniture and fixtures				$ 55,000
Assets held for sale			$ 413,000