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Document and Entity Information - shares	9 Months Ended
Sep. 30, 2017	Oct. 23, 2017
Document and Entity Information
Entity Registrant Name	Alkermes plc.
Entity Central Index Key	0001520262
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		153,775,930
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 165,123	$ 186,378
Investments - short-term	284,977	310,856
Receivables, net	207,537	191,102
Inventory	85,027	62,998
Prepaid expenses and other current assets	38,887	39,344
Total current assets	781,551	790,678
INTANGIBLE ASSETS - NET	271,811	318,227
PROPERTY, PLANT AND EQUIPMENT, NET	270,666	264,785
INVESTMENTS - LONG-TERM	118,751	121,931
GOODWILL	92,873	92,873
CONTINGENT CONSIDERATION	79,100	63,200
DEFERRED TAX ASSETS	117,453	47,768
OTHER ASSETS	16,121	26,961
TOTAL ASSETS	1,748,326	1,726,423
CURRENT LIABILITIES:
Accounts payable and accrued expenses	251,187	207,055
Long-term debt - short-term	3,000	3,000
Deferred revenue - short-term	1,827	1,938
Total current liabilities	256,014	211,993
LONG-TERM DEBT	278,994	280,666
OTHER LONG-TERM LIABILITIES	19,906	17,161
DEFERRED REVENUE - LONG-TERM	6,132	7,122
Total liabilities	561,046	516,942
COMMITMENTS AND CONTINGENCIES (Note 12)
SHAREHOLDERS' EQUITY:
Preferred shares, par value, $0.01 per share; 50,000,000 shares authorized; zero issued and outstanding at September 30, 2017 and December 31, 2016, respectively
Ordinary shares, par value, $0.01 per share; 450,000,000 shares authorized; 155,793,163 and 154,191,281 shares issued; 153,745,656 and 152,430,514 shares outstanding at September 30, 2017, and December 31, 2016, respectively	1,555	1,539
Treasury shares, at cost (2,047,507 and 1,760,767 shares at September 30, 2017 and December 31, 2016, respectively)	(89,311)	(72,639)
Additional paid-in capital	2,312,865	2,231,797
Accumulated other comprehensive loss	(3,253)	(3,274)
Accumulated deficit	(1,034,576)	(947,942)
Total shareholders' equity	1,187,280	1,209,481
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,748,326	$ 1,726,423

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
REVENUES:
Manufacturing and royalty revenues	$ 122,677	$ 110,250	$ 366,608	$ 353,444
Product sales, net	93,681	69,802	258,893	176,695
Research and development revenue	1,027	189	2,503	2,042
Total revenues	217,385	180,241	628,004	532,181
EXPENSES:
Cost of goods manufactured and sold (exclusive of amortization of acquired intangible assets shown below)	36,054	35,456	116,241	97,165
Research and development	104,411	99,444	308,399	297,523
Selling, general and administrative	99,633	91,145	310,682	276,985
Amortization of acquired intangible assets	15,643	15,323	46,417	45,636
Total expenses	255,741	241,368	781,739	717,309
OPERATING LOSS	(38,356)	(61,127)	(153,735)	(185,128)
OTHER (EXPENSE) INCOME, NET:
Interest income	1,173	912	3,287	2,917
Interest expense	(3,129)	(3,375)	(8,816)	(9,993)
Change in the fair value of contingent consideration	13,600	(1,000)	15,900	3,100
Other expense, net	(9,078)	(752)	(10,696)	(970)
Total other (expense) income, net	2,566	(4,215)	(325)	(4,946)
LOSS BEFORE INCOME TAXES	(35,790)	(65,342)	(154,060)	(190,074)
INCOME TAX (BENEFIT) PROVISION	486	(2,655)	(5,904)	(2,771)
NET LOSS	$ (36,276)	$ (62,687)	$ (148,156)	$ (187,303)
LOSS PER COMMON SHARE:
Basic and diluted (in dollars per share)	$ (0.24)	$ (0.41)	$ (0.97)	$ (1.24)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic and diluted (in shares)	153,684	151,652	153,263	151,261
COMPREHENSIVE LOSS:
Net loss	$ (36,276)	$ (62,687)	$ (148,156)	$ (187,303)
Holding gain (loss), net of a tax (benefit) provision of $35, $(129), $(14) and $445, respectively	83	(261)	22	988
COMPREHENSIVE LOSS	$ (36,193)	$ (62,948)	$ (148,134)	$ (186,315)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (148,156)	$ (187,303)
Adjustments to reconcile net loss to cash flows from operating activities:
Depreciation and amortization	73,305	69,605
Share-based compensation expense	63,336	74,613
Impairment of investment in Reset Therapeutics, Inc.	10,471
Deferred income taxes	(11,919)	(12,545)
Excess tax benefit from share-based compensation		(5,118)
Change in the fair value of contingent consideration	(15,900)	(3,100)
Other non-cash charges	3,357	1,901
Changes in assets and liabilities:
Receivables	(16,434)	(21,960)
Inventory	(21,843)	(17,156)
Prepaid expenses and other assets	(1,944)	(1,110)
Accounts payable and accrued expenses	43,430	26,833
Deferred revenue	(1,102)	(526)
Other long-term liabilities	6,680	4,506
Cash flows used in operating activities	(16,719)	(71,360)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions of property, plant and equipment	(33,482)	(33,787)
Proceeds from the sale of equipment	50	100
Investment in Reset Therapeutics, Inc.		(15,000)
Purchases of investments	(289,226)	(296,712)
Sales and maturities of investments	318,492	493,520
Cash flows (used in) provided by investing activities	(4,166)	148,121
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of ordinary shares under share-based compensation arrangements	18,298	12,746
Excess tax benefit from share-based compensation		5,118
Employee taxes paid related to net share settlement of equity awards	(16,418)	(8,432)
Principal payments of long-term debt	(2,250)	(65,063)
Cash flows used in financing activities	(370)	(55,631)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(21,255)	21,130
CASH AND CASH EQUIVALENTS - Beginning of period	186,378	181,109
CASH AND CASH EQUIVALENTS - End of period	165,123	202,239
Non-cash investing and financing activities:
Purchased capital expenditures included in accounts payable and accrued expenses	$ 5,321	$ 3,642

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements of the Company for the three and nine months ended September 30, 2017 and 2016 are unaudited and have been prepared on a basis substantially consistent with the audited financial statements for the year ended December 31, 2016. The year-end condensed consolidated balance sheet data, which is presented for comparative purposes, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. (commonly referred to as “GAAP”). In the opinion of management, the condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, that are necessary to state fairly the results of operations for the reported periods. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of the Company, which are contained in the Company’s Annual Report that has been filed with the SEC. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. Principles of Consolidation The condensed consolidated financial statements include the accounts of Alkermes plc and its wholly-owned subsidiaries as disclosed in Note 2, Summary of Significant Accounting Policies, in the “Notes to Consolidated Financial Statements” accompanying its Annual Report. Intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in accordance with GAAP requires management to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, judgments, assumptions and methodologies, including those related to revenue recognition and related allowances, its collaborative relationships, clinical trial expenses, the valuation of inventory, impairment and amortization of intangibles and long-lived assets, share-based compensation expense, income taxes including the valuation allowance for deferred tax assets, valuation of contingent consideration, valuation of investments and litigation loss contingencies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Segment Information The Company operates as one business segment, which is the business of developing, manufacturing and commercializing medicines. The Company’s chief decision maker, the Chairman of the Board and Chief Executive Officer, reviews the Company’s operating results on an aggregate basis and manages the Company’s operations as a single operating unit. Income Taxes The Company’s income tax (benefit) provision in the three and nine months ended September 30, 2017 and 2016 primarily relates to U.S. federal and state taxes. The Company records a deferred tax asset or liability based on the difference between the financial statement and tax basis of its assets and liabilities, as measured by enacted jurisdictional tax rates assumed to be in effect when these differences reverse. At September 30, 2017, the Company maintained a valuation allowance against certain of its U.S. and foreign deferred tax assets. The Company evaluates, at each reporting period, the need for a valuation allowance on its deferred tax assets on a jurisdiction-by-jurisdiction basis. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard-setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued guidance that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Numerous updates have been issued subsequent to the initial guidance that provide clarification on a number of specific issues and require additional disclosures. This guidance becomes effective for the Company in its year ending December 31, 2018 and the Company will adopt it using the modified retrospective method. The Company has determined that the new guidance will necessitate a change in how it records manufacturing revenue for certain of its arrangements with its collaborative partners. Under current GAAP, the Company records manufacturing revenue from the sale of products it manufactures for resale by its collaborative partners after the Company has shipped such products and risk of loss has passed to the Company’s collaborative partner, assuming persuasive evidence of an arrangement exists, the sales price is fixed or determinable and collectability is reasonably assured. Under the new guidance, the terms within certain of the Company’s manufacturing contracts will require that manufacturing revenue be recorded as products are manufactured rather than upon shipment. Revenue earned under the Company’s other manufacturing contracts will continue to be recorded upon shipment. The Company continues to assess the impact this new guidance will have on its consolidated financial statements, and to evaluate the disclosure requirements under this new guidance. In January 2016, the FASB issued guidance that enhances the reporting model for financial instruments by addressing certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments in this guidance include: requiring equity securities to be measured at fair value with changes in fair value recognized through the income statement; simplifying the impairment assessment of equity instruments without readily determinable fair values by requiring a qualitative assessment to identify impairment; eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset; and clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. This guidance becomes effective for the Company in its year ending December 31, 2018, and the Company is in the process of assessing the impact that this guidance will have on its consolidated financial statements. In February 2016, the FASB issued guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP and this guidance is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. This guidance becomes effective for the Company in its year ending December 31, 2019, and the Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In March 2016, the FASB issued guidance as part of its simplification initiative to eliminate the requirement to retroactively adopt the equity method of accounting when an investment qualifies for the use of the equity method as a result of an increase in the level of ownership interest or degree of influence. This guidance became effective for the Company on January 1, 2017, and the adoption of this guidance did not have an impact on its consolidated financial statements. In March 2016, the FASB issued guidance as part of its simplification initiative that involves several aspects of the accounting for share-based payment transactions. The amendments in this update established that: (i) all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the income statement; (ii) excess tax benefits be classified as an operating activity in the statement of cash flows; (iii) the entity make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, which is current GAAP, or account for forfeitures as they occur; (iv) the threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions; and (v) cash paid by an employer when directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows. This guidance became effective for the Company on January 1, 2017. The amendments related to (i), (iii) and (iv) were adopted by the Company on a modified retrospective basis, which resulted in a cumulative-effect adjustment to reduce accumulated deficit by $61.5 million related to the timing of when excess tax benefits are recognized. The Company elected to continue to record expense only for those awards that are expected to vest. The amendments related to (ii) and (v) were adopted using the prospective transition method. In June 2016, the FASB issued guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this guidance replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance becomes effective for the Company in its year ending December 31, 2020, with early adoption permitted for the Company in its year ending December 31, 2019. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In August 2016, the FASB issued guidance to address diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance becomes effective for the Company in its year ending December 31, 2018, with early adoption permitted. The Company elected to early adopt this guidance as of January 1, 2017. The adoption of this guidance had no impact on the Company’s statement of cash flows. In October 2016, the FASB issued guidance to simplify and improve accounting on transfers of assets between affiliated entities. The updated guidance eliminates the prohibition for all intra-entity asset transfers, except for inventory. This guidance becomes effective for the Company in its year ending December 31, 2018, and the Company is currently assessing the impact this guidance will have on its consolidated financial statements. In January 2017, the FASB issued guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance becomes effective for the Company in its year ending December 31, 2018, with early adoption permitted for transactions that occurred before the issuance date or effective date of the guidance if the transactions were not reported in financial statements that have been issued or made available for issuance. The Company elected to early adopt this guidance, as of January 1, 2017. The adoption of this guidance had no impact on the Company’s consolidated financial statements. In January 2017, the FASB issued guidance that simplifies the test for goodwill impairment. This guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. This guidance is effective for the Company in its year ending December 31, 2020, with early adoption permitted for any impairment tests performed after January 1, 2017. The Company elected to early adopt this guidance as of January 1, 2017. The adoption of this guidance had no impact on the Company’s consolidated financial statements. In May 2017, the FASB issued guidance that amends the scope of modification accounting for share-based payment arrangements that addresses both diversity in practice and the cost and complexity of accounting for the change to the terms or conditions of a share-based payment award. The amendment provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The guidance becomes effective for the Company in its year ending December 31, 2018 and early adoption is permitted. The Company has determined that the adoption of this guidance will not have an impact on its consolidated financial statements unless certain of its share-based payment awards are modified in the future. In July 2017, the FASB issued guidance that addresses narrow issues identified as a result of the complexity associated with applying GAAP for certain financial instruments with characteristics of liabilities and equity. The guidance becomes effective for the Company in its year ending December 31, 2019 and early adoption is permitted. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements.

INVESTMENTS

9 Months Ended

Sep. 30, 2017

INVESTMENTS

INVESTMENTS

3. INVESTMENTS

Investments consisted of the following (in thousands):


	Amortized		Gross Unrealized				Estimated
September 30, 2017	Cost		Gains		Losses(1)		Fair Value
Short-term investments:
Available-for-sale securities:
U.S. government and agency debt securities	$	185,965	$	4	$	(191)	$	185,778
Corporate debt securities		71,722		38		(29)		71,731
International government agency debt securities		27,501		1		(34)		27,468
Total short-term investments		285,188		43		(254)		284,977
Long-term investments:
Available-for-sale securities:
U.S. government and agency debt securities		50,561		—		(170)		50,391
Corporate debt securities		46,949		—		(62)		46,887
International government agency debt securities		17,910		—		(25)		17,885
		115,420		—		(257)		115,163
Held-to-maturity securities:
Fixed term deposit account		1,667		192		—		1,859
Certificates of deposit		1,729		—		—		1,729
		3,396		192		—		3,588
Total long-term investments		118,816		192		(257)		118,751
Total investments	$	404,004	$	235	$	(511)	$	403,728

December 31, 2016
Short-term investments:
Available-for-sale securities:
U.S. government and agency debt securities	$	177,203	$	96	$	(51)	$	177,248
Corporate debt securities		128,119		47		(53)		128,113
International government agency debt securities		5,511		—		(16)		5,495
Total short-term investments		310,833		143		(120)		310,856
Long-term investments:
Available-for-sale securities:
U.S. government and agency debt securities		81,839		—		(391)		81,448
Corporate debt securities		31,223		—		(89)		31,134
International government agency debt securities		5,992		—		(18)		5,974
		119,054		—		(498)		118,556
Held-to-maturity securities:
Fixed term deposit account		1,667		—		(7)		1,660
Certificates of deposit		1,715		—		—		1,715
		3,382		—		(7)		3,375
Total long-term investments		122,436		—		(505)		121,931
Total investments	$	433,269	$	143	$	(625)	$	432,787

(1)	Losses represent marketable securities that were in loss positions for less than one year.

The proceeds from the sales and maturities of marketable securities, which were primarily reinvested and resulted in realized gains and losses, were as follows:


	Nine Months Ended
	September 30,
(In thousands)	2017		2016
Proceeds from the sales and maturities of marketable securities	$	318,492	$	493,520
Realized gains	$	9	$	124
Realized losses	$	3	$	28

The Company’s available-for-sale and held-to-maturity securities at September 30, 2017 had contractual maturities in the following periods:


	Available-for-sale				Held-to-maturity
	Amortized		Estimated		Amortized		Estimated
(In thousands)	Cost		Fair Value		Cost		Fair Value
Within 1 year	$	251,360	$	251,134	$	1,729	$	1,729
After 1 year through 5 years		149,248		149,006		1,667		1,859
Total	$	400,608	$	400,140	$	3,396	$	3,588

At September 30, 2017, the Company believed that the unrealized losses on its available-for-sale investments were temporary. The investments with unrealized losses consisted primarily of U.S. government and agency debt securities. In making the determination that the decline in fair value of these securities was temporary, the Company considered various factors, including, but not limited to: the length of time each security was in an unrealized loss position; the extent to which fair value was less than cost; financial condition and near-term prospects of the issuers; the Company’s intent not to sell these securities; and the assessment that it is more likely than not that the Company would not be required to sell these securities before the recovery of their amortized cost basis.

In February 2016, the Company entered into a collaboration and license option agreement with Reset Therapeutics, Inc. (“Reset”), a related party. The Company made an upfront, non-refundable payment of $10.0 million in partial consideration of the grant to the Company of the rights and licenses included in such agreement, which was included in R&D expense in the three months ended March 31, 2016, and simultaneously made a $15.0 million investment in exchange for shares of Reset’s Series B Preferred Stock. The Company is accounting for its investment in Reset under the equity method based on its percentage of ownership of Reset, its seat on Reset’s board of directors and its belief that it can exert significant influence over the operating and financial policies of Reset. During the three months ended September 30, 2017, the Company recorded an other-than-temporary impairment charge of $10.5 million, which represented the Company’s remaining investment in Reset, as the Company believes that Reset is unable to generate future earnings that justify the carrying amount of the investment. The impairment charge was recorded within “Other (expense) income, net” in the accompanying condensed consolidated statements of operations and comprehensive loss.

In May 2014, the Company entered into an agreement whereby it is committed to provide up to €7.4 million to a partnership, Fountain Healthcare Partners II, L.P. of Ireland (“Fountain”), which was created to carry on the business of investing exclusively in companies and businesses engaged in the healthcare, pharmaceutical and life sciences sectors. As of September 30, 2017, the Company’s total contribution in Fountain was equal to €3.3 million. The Company’s commitment represents approximately 7% of the partnership’s total funding, and the Company is accounting for its investment in Fountain under the equity method. During the three and nine months ended September 30, 2017, the Company recorded an increase in its investment in Fountain of less than $0.1 million and a decrease in its investment in Fountain of $0.6 million, respectively, which represents the Company’s proportional share of Fountain’s net gains (losses) for these periods. The Company’s $2.7 million net investment in Fountain at September 30, 2017 is included within “Other assets” in the accompanying condensed consolidated balance sheets.

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2017

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

4. FAIR VALUE MEASUREMENTS

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:


	September 30,
(In thousands)	2017		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	1,859	$	1,859	$	—	$	—
U.S. government and agency debt securities		236,169		146,717		89,452		—
Corporate debt securities		118,618		—		118,618		—
International government agency debt securities		45,353		—		45,353		—
Contingent consideration		79,100		—		—		79,100
Common stock warrants		1,459		—		—		1,459
Total	$	482,558	$	148,576	$	253,423	$	80,559


	December 31,
	2016		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	1,660	$	1,660	$	—	$	—
U.S. government and agency debt securities		258,696		156,370		102,326		—
Corporate debt securities		159,247		—		159,247		—
International government agency debt securities		11,469		—		11,469		—
Contingent consideration		63,200		—		—		63,200
Common stock warrants		1,392		—		—		1,392
Total	$	495,664	$	158,030	$	273,042	$	64,592

The Company transfers its financial assets and liabilities, measured at fair value on a recurring basis, between the fair value hierarchies at the end of each reporting period. There were no transfers of any securities between the fair value hierarchies during the nine months ended September 30, 2017.

The Company’s investments in U.S. government and agency debt securities, corporate debt securities and international government agency debt securities classified as Level 2 within the fair value hierarchy were initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing market-observable data. The market-observable data included reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. The Company validated the prices developed using the market-observable data by obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming that the relevant markets are active.

The following table is a rollforward of the fair value of the Company’s assets whose fair values were determined using Level 3 inputs at September 30, 2017:


(In thousands)	Fair Value
Balance, January 1, 2017	$	64,592
Increase in the fair value of contingent consideration		15,900
Increase in the fair value of warrants		67
Balance, September 30, 2017	$	80,559

In March 2015, the Company entered into a definitive agreement to sell its Gainesville, GA facility, the related manufacturing and royalty revenue associated with certain products manufactured at the facility, and the rights to IV/IM and other parenteral forms of Meloxicam and certain intellectual property related to IV/IM and parenteral forms of Meloxicam (the “Gainesville Transaction”) to Recro Pharma, Inc. (“Recro”) and Recro Pharma LLC. In connection with the Gainesville Transaction, the Company is eligible to receive low double-digit royalties on net sales of IV/IM and parenteral forms of Meloxicam and any other product with the same active ingredient as Meloxicam IV/IM that is discovered or identified using certain of the Company’s intellectual property to which Recro was provided a right of use, through license or transfer, pursuant to the Gainesville Transaction (together, the “Meloxicam Product(s)”) and up to $125.0 million in milestone payments upon the achievement of certain regulatory and sales milestones related to the Meloxicam Products, including, at Recro’s election, either (i) $10.0 million upon the submission of a New Drug Application (“NDA”) filing for the first Meloxicam Product and $30.0 million upon regulatory approval of a NDA for the first Meloxicam Product or (ii) an aggregate of $45.0 million upon regulatory approval of a NDA for the first Meloxicam Product. In July 2017, Recro submitted a NDA to the FDA for a Meloxicam Product and elected to pay the Company under scenario (ii) an aggregate of $45.0 million upon regulatory approval of the NDA. The FDA accepted the NDA filing for review in September 2017.

At September 30, 2017, the Company determined the value of the Gainesville Transaction’s contingent consideration using the following valuation approaches:

• The fair value of the regulatory milestone was estimated based on applying the likelihood of achieving the regulatory milestone and applying a discount rate from the expected time the milestone occurs to the balance sheet date. The Company expects the regulatory milestone event to occur in the third quarter of 2018 and used a discount rate of 2.8%;

• To estimate the fair value of future royalties on net sales of the Meloxicam Product, the Company assessed the likelihood of the Meloxicam Product being approved for sale and estimated the expected future sales given approval and intellectual property protection. The Company then discounted these expected payments using a discount rate of 16.0%, which the Company believes captures a market participant’s view of the risk associated with the expected payments; and

• The sales milestones were determined through the use of a real options approach, where net sales are simulated in a risk-neutral world. To employ this methodology, the Company used a risk-adjusted expected growth rate based on its assessments of expected growth in net sales of the approved Meloxicam Product, adjusted by an appropriate factor capturing their respective correlation with the market. A resulting expected (probability-weighted) milestone payment was then discounted at a rate ranging from 2.9% to 5.1%, which included cost of debt plus an alpha.

During the three and nine months ended September 30, 2017, the Company determined that the value of the Gainesville Transaction’s contingent consideration increased by $13.6 million and $15.9 million, respectively. During the three and nine months ended September 30, 2016, the value of the Gainesville Transaction’s contingent consideration decreased by $1.0 million and increased by $3.1 million, respectively. These changes were recorded as “Change in the fair value of contingent consideration” in the accompanying condensed consolidated statements of operations and comprehensive loss.

As part of the Gainesville Transaction, the Company also received warrants to purchase 350,000 shares of Recro common stock at a per share exercise price of $19.46. The Company used a Black-Scholes model with the following assumptions to determine the fair value of these warrants at September 30, 2017:


Closing stock price at September 30, 2017	$	8.89
Warrant strike price	$	19.46
Expected term (years)		4.52
Risk-free rate		1.92	%
Volatility		80.0	%

During the three and nine months ended September 30, 2017, the Company determined that the fair value of the warrants, recorded within “Other assets” in the accompanying condensed consolidated balance sheets, increased by $0.3 million and $0.1 million, respectively. The fair value of the warrants increased by $0.2 million and decreased by $0.3 million during the three and nine months ended September 30, 2016, respectively. The change in the fair value of the warrants was recorded within “Other (expense) income, net” in the accompanying condensed consolidated statements of operations and comprehensive loss.

The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued expenses approximate fair value due to their short-term nature. The fair value of the remaining financial instruments not currently recognized at fair value on the Company’s condensed consolidated balance sheets at September 30, 2017 consisted of a $300.0 million term loan, bearing interest at LIBOR plus 2.75% with a LIBOR floor of 0.75% with a maturity date of September 25, 2021 (“Term Loan B-1”). The estimated fair value of Term Loan B-1, which was based on quoted market price indications (Level 2 in the fair value hierarchy) and which may not be representative of actual values that could have been or will be realized in the future, was as follows at September 30, 2017:


	Carrying		Estimated
(In thousands)	Value		Fair Value
Term Loan B-1	$	281,994	$	286,425

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2017

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

7. GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets consisted of the following:


		Nine Months Ended
		September 30, 2017
(In thousands)	Weighted Amortizable Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Goodwill		$	92,873	$	—	$	92,873
Finite-lived intangible assets:
Collaboration agreements	12	$	465,590	$	(256,517)	$	209,073
NanoCrystal technology	13		74,600		(29,544)		45,056
OCR technologies	12		42,560		(24,878)		17,682
Total		$	582,750	$	(310,939)	$	271,811

Based on the Company’s most recent analysis, amortization of intangible assets included within its condensed consolidated balance sheet at September 30, 2017 is expected to be approximately $60.0 million, $60.0 million, $55.0 million, $50.0 million and $45.0 million in the years ending December 31, 2017 through 2021, respectively. Although the Company believes such available information and assumptions are reasonable, given the inherent risks and uncertainties underlying its expectations regarding such future revenues, there is the potential for the Company’s actual results to vary significantly from such expectations. If revenues are projected to change, the related amortization of the intangible assets will change in proportion to the change in revenues.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	12. COMMITMENTS AND CONTINGENCIES Lease Commitments In March 2017, the Company entered into a lease agreement to lease approximately 65,000 square feet of office space in Waltham, Massachusetts (the “Building”). Beginning March 1, 2017, the Company began leasing approximately 43,290 square feet (“Premises A”) of the Building, and, on January 1, 2018, the Company will gain access to the additional 21,645 square feet (“Premises B”). The lease on both Premises A and Premises B ends on September 30, 2020 and will result in rental expense of approximately $1.2 million, $2.4 million, $2.4 million and $1.8 million in 2017, 2018, 2019 and 2020, respectively. Litigation From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of business. On a quarterly basis, the Company reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim, asserted or unasserted, or legal proceeding is considered probable and the amount can be reasonably estimated, the Company would accrue a liability for the estimated loss. Because of uncertainties related to claims and litigation, accruals are based on the Company’s best estimates using the latest available information. On a periodic basis, as additional information becomes available, or based on specific events such as the outcome of litigation or settlement of claims, the Company may reassess the potential liability related to these matters and may revise these estimates, which could result in material adverse adjustments to the Company’s operating results. At September 30, 2017, there were no potential material losses from claims, asserted or unasserted, or legal proceedings the Company determined were probable of occurring. ARISTADA On July 13, 2015, Otsuka Pharmaceutical Development & Commercialization, Inc. (“Otsuka PD&C”) filed a Citizen Petition with the U.S. Food and Drug Administration (“FDA”) which requested that the FDA refuse to approve the NDA for ARISTADA or delay approval of such NDA until the exclusivity rights covering long-acting aripiprazole expire in December 2017. The FDA approved ARISTADA on October 5, 2015 and, concurrent with such approval, denied Otsuka PD&C’s Citizen Petition. On October 15, 2015, Otsuka Pharmaceutical Co., Ltd., Otsuka PD&C, and Otsuka America Pharmaceutical, Inc. (collectively, “Otsuka”) filed an action for declaratory and injunctive relief with the U.S. District Court for the District of Columbia (the “DC Court”) against Sylvia Mathews Burwell, Secretary, U.S. Department of Health and Human Services; Dr. Stephen Ostroff, Acting Commissioner, FDA; and the FDA, requesting that the DC Court: (a) expedite the legal proceedings; (b) declare that the FDA’s denial of Otsuka’s claimed exclusivity rights and approval of the ARISTADA NDA were arbitrary, capricious, an abuse of discretion, and otherwise not in accordance with law; (c) vacate the FDA’s approval of the ARISTADA NDA and vacate any FDA decisions or actions underlying or supporting or predicated upon that approval; (d) declare that Otsuka’s claimed exclusivity rights preclude the FDA from granting approval of the Alkermes NDA until the expiration of such exclusivity rights in December 2017; and (e) grant any and all other, further, and additional relief, including all necessary and appropriate protective preliminary, interim, or permanent relief, as the nature of the cause may require, including all necessary and appropriate declarations of rights and injunctive relief. The Company successfully intervened in, and received the DC Court’s approval to become a party to, this action. On July 28, 2016, the DC Court issued an opinion in favor of the Company and the FDA, affirming in all respects the FDA’s decision to approve ARISTADA for the treatment of schizophrenia, and denying the action filed by Otsuka for declaratory and injunctive relief. Otsuka filed an appeal of the DC Court’s decision with the U.S. Court of Appeals for the District of Columbia Circuit (“DC Circuit”) asking the DC Circuit to reverse the DC Court’s decision, vacate the FDA’s approval of the ARISTADA NDA and remand the case to the DC Court for consideration of any appropriate equitable remedy for Otsuka’s lost exclusivity. The DC Circuit’s appellate hearing for this matter occurred on December 12, 2016 and on August 29, 2017, the DC Circuit affirmed the DC Court’s decision in favor of the Company and the FDA. Otsuka may appeal the DC Circuit’s decision until November 27, 2017, unless an extension is granted. The Company believes Otsuka’s action is without merit and will continue to vigorously defend ARISTADA against such action. For information about risks relating to this action, see “Part I, Item 1A—Risk Factors” of the Annual Report and specifically the section entitled “Citizen Petitions and other actions filed with, or litigation against, the FDA or other regulatory agencies or litigation against Alkermes may negatively impact the approval of our products and our business.” AMPYRA AMPYRA ANDA Litigation Ten separate Paragraph IV Certification Notices have been received by the Company and/or its partner Acorda from: Accord Healthcare, Inc. (“Accord”); Actavis Laboratories FL, Inc. (“Actavis”); Alkem Laboratories Ltd. (“Alkem”); Apotex Corporation and Apotex, Inc. (collectively, “Apotex”); Aurobindo Pharma Ltd. (“Aurobindo”); Mylan Pharmaceuticals, Inc. (“Mylan”); Par Pharmaceutical, Inc. (“Par”); Roxane Laboratories, Inc. (“Roxane”); Sun Pharmaceutical Industries Limited and Sun Pharmaceuticals Industries Inc. (collectively, “Sun”); and Teva Pharmaceuticals USA, Inc. (“Teva,” and collectively with Accord, Actavis, Alkem, Apotex, Aurobindo, Mylan, Par, Roxane and Sun, the “ANDA Filers”) advising that each of the ANDA Filers had submitted an abbreviated NDA (“ANDA”) to the FDA seeking marketing approval for generic versions of AMPYRA (dalfampridine) Extended-Release Tablets, 10 mg. The ANDA Filers challenged the validity of the Orange Book-listed patents for AMPYRA, and they also asserted that their generic versions do not infringe certain claims of these patents. In response, the Company and/or Acorda filed lawsuits against the ANDA Filers in the U.S. District Court for the District of Delaware (the “Delaware Court”) asserting infringement of U.S. Patent No. 5,540,938 (the “‘938 Patent”), which the Company owns, and U.S. Patent Nos. 8,007,826; 8,354,437; 8,440,703; and 8,663,685, which are owned by Acorda. Requested judicial remedies included recovery of litigation costs and injunctive relief. Mylan challenged the jurisdiction of the Delaware Court with respect to the Delaware action. In January 2015, the Delaware Court denied Mylan’s motion to dismiss. Subsequently, in January 2015, the Delaware Court granted Mylan’s request for an interlocutory appeal of its jurisdictional decision to the Federal Circuit. In March 2016, the Federal Circuit denied Mylan’s appeal, and the case remains in the Delaware Court. Mylan requested the Federal Circuit to reconsider its decision. However, on June 20, 2016, the Federal Circuit denied Mylan’s request. Mylan filed an appeal with the U.S. Supreme Court, which was denied. Due to Mylan’s motion to dismiss, the Company, along with Acorda, also filed another patent infringement suit against Mylan in the U.S. District Court for the Northern District of West Virginia asserting the same U.S. Patents and requesting the same judicial relief as in the Delaware action. In December 2014, the Company, along with Acorda, filed a motion in the Northern District of West Virginia to stay that action in deference to the Delaware action. In February 2015, the District Court for the Northern District of West Virginia granted the motion to stay the proceeding. All lawsuits were filed within 45 days from the date of receipt of each of the Paragraph IV Certification Notices from the ANDA Filers. As a result, a 30-month statutory stay of approval period applied to each of the ANDA Filers’ ANDAs under the U.S. Drug Price Competition and Patent Term Restoration Act of 1984 (the “Hatch-Waxman Act”). The 30-month stay started on January 22, 2015, and restricted the FDA from approving the ANDA Filers’ ANDAs until July 2017 at the earliest, unless a Federal district court issued a decision adverse to all of the asserted Orange Book-listed patents prior to that date. Lawsuits with eight of the ANDA Filers have been consolidated into a single case. The Company and/or Acorda entered into a settlement agreement with each of Accord, Actavis, Alkem, Apotex, Aurobindo, Par and Sun (collectively, the “Settling ANDA Filers”) to resolve the patent litigation that the Company and/or Acorda brought against the Settling ANDA Filers in the Delaware Court. As a result of the settlement agreements, the Settling ANDA Filers will be permitted to market generic versions of AMPYRA in the U.S. at a specified date in the future. The parties submitted their respective settlement agreements to the U.S. Federal Trade Commission and the U.S. Department of Justice, as required by federal law. The settlements with the Settling ANDA Filers did not impact the patent litigation that the Company and Acorda brought against the remaining ANDA Filers (the “Non-Settling ANDA Filers”), as described in this Form 10-Q. On March 31, 2017, after a bench trial, the Delaware Court issued an opinion (the “Delaware Court Decision”), upholding the validity of the ‘938 Patent, which pertains to the formulation of AMPYRA and is set to expire in July 2018, and finding that Apotex, Mylan, Roxane and Teva stipulated that their proposed generic forms of AMPYRA infringed the ‘938 Patent. The Delaware Court also invalidated U.S. Patent Nos. 8,007,826; 8,354,437; 8,440,703; and 8,663,685. In May 2017, the District Court for the Northern District of West Virginia dismissed the Mylan proceeding in view of the Delaware Court Decision. The patent infringement case against Mylan, however, was part of the consolidated Delaware action. In May 2017, Acorda filed its appeal of the Delaware Court Decision with the U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit”) with respect to the findings on U.S. Patent Nos. 8,007,826; 8,354,437; 8,440,703; and 8,663,685. In June 2017, the Non-Settling ANDA Filers filed their cross-appeal of the Delaware Court Decision with the Federal Circuit with respect to the validity of the ‘938 Patent. The Company and Acorda filed their opening brief on August 7, 2017. The Non-Settling ANDA Filers responded on October 2, 2017. In addition to the Paragraph IV Certification Notices received from the ANDA Filers, in April 2017, Acorda received an additional Paragraph IV Certification Notice from Micro Labs, Ltd. (“Micro Labs”), contending that U.S. Patent Nos. 8,007,826; 8,354,437; 8,440,703; and 8,663,685 are invalid and not infringed by Micro Labs’ proposed generic version of AMPYRA (dalfampridine) Extended-Release Tablets, 10 mg. On May 24, 2017, Acorda filed a lawsuit against Micro Labs and Micro Labs USA, Inc. in the U.S. District Court for the District of New Jersey asserting infringement of U.S. Patent Nos. 8,007,826; 8,354,437; 8,440,703; and 8,663,685. Requested judicial remedies included recovery of litigation costs and injunctive relief. The lawsuit was brought within 45 days from receipt of such Paragraph IV Certification Notice; therefore, the FDA cannot approve Micro Labs’ ANDA for 30 months (unless a Federal district court issues a decision adverse to all of the asserted Orange Book-listed patents prior to that date). The Company intends to vigorously enforce its intellectual property rights. For information about risks relating to the AMPYRA Paragraph IV litigations and other proceedings see “Part II, Item 1A—Risk Factors” in this Form 10-Q and in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and “Part I, Item 1A—Risk Factors” of the Company’s Annual Report. AMPYRA IPR Proceedings A hedge fund (acting with affiliated entities and individuals and proceeding under the name of the Coalition for Affordable Drugs) filed inter partes review (“IPR”) petitions with the U.S. Patent and Trademark Office (the “USPTO”), challenging U.S. Patent Nos. 8,007,826; 8,354,437; 8,440,703; and 8,663,685, which are owned by Acorda, representing four of the five AMPYRA Orange Book-listed patents. In March 2016, the USPTO’s Patent Trials and Appeal Board (the “PTAB”) instituted the IPR, and oral argument for the IPR was held on January 19, 2017. On March 9, 2017, the PTAB upheld the challenged claims. This decision does not affect the litigation discussed in the “AMPYRA ANDA Litigation” section above. BYDUREON, RISPERDAL CONSTA AND VIVITROL Government Matters On June 22, 2017, the Company received a subpoena from an Office of the U.S. Attorney for documents related to VIVITROL. The Company is cooperating with the government. IPR Proceedings On June 3, 2016, Luye Pharma Group Ltd., Luye Pharma (USA) Ltd., Shandong Luye Pharmaceutical Co., Ltd., and Nanjing Luye Pharmaceutical Co., Ltd. (collectively, “Luye”) filed two separate IPR petitions challenging U.S. Patent No. 6,667,061 (the “‘061 Patent”), which is an Orange Book-listed patent for each of BYDUREON, RISPERDAL CONSTA and VIVITROL. The Company opposed the institution of these IPR petitions. On November 30, 2016, the USPTO’s PTAB instituted one of Luye’s IPR petitions and denied instituting Luye’s other IPR petition. Oral argument for the instituted IPR was held on August 28, 2017. A decision on the instituted IPR is expected, pursuant to the statutory time frame, by November 30, 2017. The Company will vigorously defend the ‘061 Patent in the IPR proceedings. For information about risks relating to the ‘061 Patent IPR proceedings see “Part I, Item 1A—Risk Factors” in the Company’s Annual Report and specifically the sections entitled “Patent protection for our products is important and uncertain” and “Uncertainty over intellectual property in the pharmaceutical industry has been the source of litigation, which is inherently costly and unpredictable.”

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of the Company for the three and nine months ended September 30, 2017 and 2016 are unaudited and have been prepared on a basis substantially consistent with the audited financial statements for the year ended December 31, 2016. The year-end condensed consolidated balance sheet data, which is presented for comparative purposes, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. (commonly referred to as “GAAP”). In the opinion of management, the condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, that are necessary to state fairly the results of operations for the reported periods. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of the Company, which are contained in the Company’s Annual Report that has been filed with the SEC. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Alkermes plc and its wholly-owned subsidiaries as disclosed in Note 2, Summary of Significant Accounting Policies, in the “Notes to Consolidated Financial Statements” accompanying its Annual Report. Intercompany accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of the Company’s condensed consolidated financial statements in accordance with GAAP requires management to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, judgments, assumptions and methodologies, including those related to revenue recognition and related allowances, its collaborative relationships, clinical trial expenses, the valuation of inventory, impairment and amortization of intangibles and long-lived assets, share-based compensation expense, income taxes including the valuation allowance for deferred tax assets, valuation of contingent consideration, valuation of investments and litigation loss contingencies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.
Segment Information	Segment Information The Company operates as one business segment, which is the business of developing, manufacturing and commercializing medicines. The Company’s chief decision maker, the Chairman of the Board and Chief Executive Officer, reviews the Company’s operating results on an aggregate basis and manages the Company’s operations as a single operating unit.
Income Taxes	Income Taxes The Company’s income tax (benefit) provision in the three and nine months ended September 30, 2017 and 2016 primarily relates to U.S. federal and state taxes. The Company records a deferred tax asset or liability based on the difference between the financial statement and tax basis of its assets and liabilities, as measured by enacted jurisdictional tax rates assumed to be in effect when these differences reverse. At September 30, 2017, the Company maintained a valuation allowance against certain of its U.S. and foreign deferred tax assets. The Company evaluates, at each reporting period, the need for a valuation allowance on its deferred tax assets on a jurisdiction-by-jurisdiction basis.
New Accounting Pronouncements	New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard-setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued guidance that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Numerous updates have been issued subsequent to the initial guidance that provide clarification on a number of specific issues and require additional disclosures. This guidance becomes effective for the Company in its year ending December 31, 2018 and the Company will adopt it using the modified retrospective method. The Company has determined that the new guidance will necessitate a change in how it records manufacturing revenue for certain of its arrangements with its collaborative partners. Under current GAAP, the Company records manufacturing revenue from the sale of products it manufactures for resale by its collaborative partners after the Company has shipped such products and risk of loss has passed to the Company’s collaborative partner, assuming persuasive evidence of an arrangement exists, the sales price is fixed or determinable and collectability is reasonably assured. Under the new guidance, the terms within certain of the Company’s manufacturing contracts will require that manufacturing revenue be recorded as products are manufactured rather than upon shipment. Revenue earned under the Company’s other manufacturing contracts will continue to be recorded upon shipment. The Company continues to assess the impact this new guidance will have on its consolidated financial statements, and to evaluate the disclosure requirements under this new guidance. In January 2016, the FASB issued guidance that enhances the reporting model for financial instruments by addressing certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments in this guidance include: requiring equity securities to be measured at fair value with changes in fair value recognized through the income statement; simplifying the impairment assessment of equity instruments without readily determinable fair values by requiring a qualitative assessment to identify impairment; eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset; and clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. This guidance becomes effective for the Company in its year ending December 31, 2018, and the Company is in the process of assessing the impact that this guidance will have on its consolidated financial statements. In February 2016, the FASB issued guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP and this guidance is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. This guidance becomes effective for the Company in its year ending December 31, 2019, and the Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In March 2016, the FASB issued guidance as part of its simplification initiative to eliminate the requirement to retroactively adopt the equity method of accounting when an investment qualifies for the use of the equity method as a result of an increase in the level of ownership interest or degree of influence. This guidance became effective for the Company on January 1, 2017, and the adoption of this guidance did not have an impact on its consolidated financial statements. In March 2016, the FASB issued guidance as part of its simplification initiative that involves several aspects of the accounting for share-based payment transactions. The amendments in this update established that: (i) all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the income statement; (ii) excess tax benefits be classified as an operating activity in the statement of cash flows; (iii) the entity make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, which is current GAAP, or account for forfeitures as they occur; (iv) the threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions; and (v) cash paid by an employer when directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows. This guidance became effective for the Company on January 1, 2017. The amendments related to (i), (iii) and (iv) were adopted by the Company on a modified retrospective basis, which resulted in a cumulative-effect adjustment to reduce accumulated deficit by $61.5 million related to the timing of when excess tax benefits are recognized. The Company elected to continue to record expense only for those awards that are expected to vest. The amendments related to (ii) and (v) were adopted using the prospective transition method. In June 2016, the FASB issued guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this guidance replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance becomes effective for the Company in its year ending December 31, 2020, with early adoption permitted for the Company in its year ending December 31, 2019. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements. In August 2016, the FASB issued guidance to address diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance becomes effective for the Company in its year ending December 31, 2018, with early adoption permitted. The Company elected to early adopt this guidance as of January 1, 2017. The adoption of this guidance had no impact on the Company’s statement of cash flows. In October 2016, the FASB issued guidance to simplify and improve accounting on transfers of assets between affiliated entities. The updated guidance eliminates the prohibition for all intra-entity asset transfers, except for inventory. This guidance becomes effective for the Company in its year ending December 31, 2018, and the Company is currently assessing the impact this guidance will have on its consolidated financial statements. In January 2017, the FASB issued guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance becomes effective for the Company in its year ending December 31, 2018, with early adoption permitted for transactions that occurred before the issuance date or effective date of the guidance if the transactions were not reported in financial statements that have been issued or made available for issuance. The Company elected to early adopt this guidance, as of January 1, 2017. The adoption of this guidance had no impact on the Company’s consolidated financial statements. In January 2017, the FASB issued guidance that simplifies the test for goodwill impairment. This guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. This guidance is effective for the Company in its year ending December 31, 2020, with early adoption permitted for any impairment tests performed after January 1, 2017. The Company elected to early adopt this guidance as of January 1, 2017. The adoption of this guidance had no impact on the Company’s consolidated financial statements. In May 2017, the FASB issued guidance that amends the scope of modification accounting for share-based payment arrangements that addresses both diversity in practice and the cost and complexity of accounting for the change to the terms or conditions of a share-based payment award. The amendment provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The guidance becomes effective for the Company in its year ending December 31, 2018 and early adoption is permitted. The Company has determined that the adoption of this guidance will not have an impact on its consolidated financial statements unless certain of its share-based payment awards are modified in the future. In July 2017, the FASB issued guidance that addresses narrow issues identified as a result of the complexity associated with applying GAAP for certain financial instruments with characteristics of liabilities and equity. The guidance becomes effective for the Company in its year ending December 31, 2019 and early adoption is permitted. The Company is currently assessing the impact that this guidance will have on its consolidated financial statements.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References + Details

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2017

INVESTMENTS

Schedule of investments


	Amortized		Gross Unrealized				Estimated
September 30, 2017	Cost		Gains		Losses(1)		Fair Value
Short-term investments:
Available-for-sale securities:
U.S. government and agency debt securities	$	185,965	$	4	$	(191)	$	185,778
Corporate debt securities		71,722		38		(29)		71,731
International government agency debt securities		27,501		1		(34)		27,468
Total short-term investments		285,188		43		(254)		284,977
Long-term investments:
Available-for-sale securities:
U.S. government and agency debt securities		50,561		—		(170)		50,391
Corporate debt securities		46,949		—		(62)		46,887
International government agency debt securities		17,910		—		(25)		17,885
		115,420		—		(257)		115,163
Held-to-maturity securities:
Fixed term deposit account		1,667		192		—		1,859
Certificates of deposit		1,729		—		—		1,729
		3,396		192		—		3,588
Total long-term investments		118,816		192		(257)		118,751
Total investments	$	404,004	$	235	$	(511)	$	403,728

December 31, 2016
Short-term investments:
Available-for-sale securities:
U.S. government and agency debt securities	$	177,203	$	96	$	(51)	$	177,248
Corporate debt securities		128,119		47		(53)		128,113
International government agency debt securities		5,511		—		(16)		5,495
Total short-term investments		310,833		143		(120)		310,856
Long-term investments:
Available-for-sale securities:
U.S. government and agency debt securities		81,839		—		(391)		81,448
Corporate debt securities		31,223		—		(89)		31,134
International government agency debt securities		5,992		—		(18)		5,974
		119,054		—		(498)		118,556
Held-to-maturity securities:
Fixed term deposit account		1,667		—		(7)		1,660
Certificates of deposit		1,715		—		—		1,715
		3,382		—		(7)		3,375
Total long-term investments		122,436		—		(505)		121,931
Total investments	$	433,269	$	143	$	(625)	$	432,787

(1)	Losses represent marketable securities that were in loss positions for less than one year.

Proceeds from the sales and maturities of marketable securities, plus the resulting realized gains and losses


	Nine Months Ended
	September 30,
(In thousands)	2017		2016
Proceeds from the sales and maturities of marketable securities	$	318,492	$	493,520
Realized gains	$	9	$	124
Realized losses	$	3	$	28

The cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity

The Company’s available-for-sale and held-to-maturity securities at September 30, 2017 had contractual maturities in the following periods:


	Available-for-sale				Held-to-maturity
	Amortized		Estimated		Amortized		Estimated
(In thousands)	Cost		Fair Value		Cost		Fair Value
Within 1 year	$	251,360	$	251,134	$	1,729	$	1,729
After 1 year through 5 years		149,248		149,006		1,667		1,859
Total	$	400,608	$	400,140	$	3,396	$	3,588

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2017

FAIR VALUE MEASUREMENTS

Summary of the Company's assets and liabilities measured at fair value on a recurring basis


	September 30,
(In thousands)	2017		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	1,859	$	1,859	$	—	$	—
U.S. government and agency debt securities		236,169		146,717		89,452		—
Corporate debt securities		118,618		—		118,618		—
International government agency debt securities		45,353		—		45,353		—
Contingent consideration		79,100		—		—		79,100
Common stock warrants		1,459		—		—		1,459
Total	$	482,558	$	148,576	$	253,423	$	80,559


	December 31,
	2016		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	1,660	$	1,660	$	—	$	—
U.S. government and agency debt securities		258,696		156,370		102,326		—
Corporate debt securities		159,247		—		159,247		—
International government agency debt securities		11,469		—		11,469		—
Contingent consideration		63,200		—		—		63,200
Common stock warrants		1,392		—		—		1,392
Total	$	495,664	$	158,030	$	273,042	$	64,592

Schedule of rollforward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs


(In thousands)	Fair Value
Balance, January 1, 2017	$	64,592
Increase in the fair value of contingent consideration		15,900
Increase in the fair value of warrants		67
Balance, September 30, 2017	$	80,559

Schedule of Assumptions used to Determine Fair Value of Warrants [Table Text Block]


Closing stock price at September 30, 2017	$	8.89
Warrant strike price	$	19.46
Expected term (years)		4.52
Risk-free rate		1.92	%
Volatility		80.0	%

Estimated fair value of term loans


	Carrying		Estimated
(In thousands)	Value		Fair Value
Term Loan B-1	$	281,994	$	286,425

INVESTMENTS - SUMMARY OF INVESTMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Held-to-maturity securities:
Estimated Fair Value	$ 3,588
Total investments
Amortized Cost	404,004	$ 433,269
Gross Unrealized Gains	235	143
Gross Unrealized Losses, Less than One Year	(511)	(625)
Estimated Fair Value	403,728	432,787
Short-term investments
Available-for-sale securities:
Amortized Cost	285,188	310,833
Gross Unrealized Gains	43	143
Gross Unrealized Losses, Less than One Year	(254)	(120)
Estimated Fair Value	284,977	310,856
Short-term investments \| U.S. government and agency debt securities
Available-for-sale securities:
Amortized Cost	185,965	128,119
Gross Unrealized Gains	4	47
Gross Unrealized Losses, Less than One Year	(191)	(53)
Estimated Fair Value	185,778	128,113
Short-term investments \| Corporate debt securities
Available-for-sale securities:
Amortized Cost	71,722	177,203
Gross Unrealized Gains	38	96
Gross Unrealized Losses, Less than One Year	(29)	(51)
Estimated Fair Value	71,731	177,248
Short-term investments \| International government agency debt securities
Available-for-sale securities:
Amortized Cost	27,501	5,511
Gross Unrealized Gains	1
Gross Unrealized Losses, Less than One Year	(34)	(16)
Estimated Fair Value	27,468	5,495
Long-term investments
Available-for-sale securities:
Amortized Cost	115,420	119,054
Gross Unrealized Losses, Less than One Year	(257)	(498)
Estimated Fair Value	115,163	118,556
Held-to-maturity securities:
Amortized Cost	3,396	3,382
Gross Unrealized Gains	192
Gross Unrealized Losses, Less than One Year		(7)
Estimated Fair Value	3,588	3,375
Long-term Investments
Total long-term investments	118,816	122,436
Gross Unrealized Gains	192
Gross Unrealized Losses, Less than one year	(257)	(505)
Total long-term investments	118,751	121,931
Long-term investments \| Fixed Term Deposit Account
Held-to-maturity securities:
Amortized Cost	1,667	1,667
Gross Unrealized Gains	192
Gross Unrealized Losses, Less than One Year		(7)
Estimated Fair Value	1,859	1,660
Long-term investments \| Certificates of deposit
Held-to-maturity securities:
Amortized Cost	1,729	1,715
Estimated Fair Value	1,729	1,715
Long-term investments \| U.S. government and agency debt securities
Available-for-sale securities:
Amortized Cost	50,561	81,839
Gross Unrealized Losses, Less than One Year	(170)	(391)
Estimated Fair Value	50,391	81,448
Long-term investments \| Corporate debt securities
Available-for-sale securities:
Amortized Cost	46,949	31,223
Gross Unrealized Losses, Less than One Year	(62)	(89)
Estimated Fair Value	46,887	31,134
Long-term investments \| International government agency debt securities
Available-for-sale securities:
Amortized Cost	17,910	5,992
Gross Unrealized Losses, Less than One Year	(25)	(18)
Estimated Fair Value	$ 17,885	$ 5,974

INVESTMENTS - AVAILABLE FOR SALE AND HELD TO MATURITY (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Available-for-sale, Amortized Cost
Within 1 year	$ 251,360
After 1 year through 5 years	149,248
Total	400,608
Available-for-sale, Estimated Fair Value
Within 1 year	251,134
After 1 year through 5 years	149,006
Total	400,140
Held-to-maturity, Amortized Cost
Within 1 year	1,729
After 1 year through 5 years	1,667
Total	3,396
Held-to-maturity, Estimated Fair Value
Within 1 year	1,729
After 1 year through 5 years	1,859
Estimated Fair Value	$ 3,588

INVESTMENTS - Narratives (Details) $ in Thousands, € in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Feb. 29, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2017 EUR (€)	Sep. 30, 2017 USD ($)	May 31, 2014 EUR (€)
Equity method investment
Other-than-temporary impairment charge			$ 10,471
Reset Therapeutics Inc \| Investee [Member]
Equity method investment
Cost Of License	$ 10,000
Carrying value of equity investment	$ 15,000
Other-than-temporary impairment charge		$ 10,500
Fountain Healthcare Partners II, LP of Ireland
Equity method investment
Funding commitment as percentage of partnership's total funding				7.00%	7.00%
Increase (decrease) in carrying value of investment of the entity, which represents the Company's share of investee's net gains (losses)			$ (600)
Fountain Healthcare Partners II, LP of Ireland \| Maximum
Equity method investment
Maximum commitment on equity method investment \| €						€ 7.4
Increase (decrease) in carrying value of investment of the entity, which represents the Company's share of investee's net gains (losses)		$ 100
Other Assets \| Fountain Healthcare Partners II, LP of Ireland
Equity method investment
Carrying value of equity investment					$ 2,700
Total equity method commitment \| €				€ 3.3

FAIR VALUE MEASUREMENTS - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Mar. 31, 2015	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Apr. 10, 2015	Apr. 09, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Milestone payment upon submission of NDA filing					$ 10,000
Milestone payment upon regulatory approval of NDA with milestone payment on NDA Filing					30,000
Milestone payment upon regulatory approval of NDA					$ 45,000
Discount rate (as a percent)					16.00%
Contingent consideration			$ 79,100		$ 79,100		$ 63,200
OTHER ASSETS			16,121		16,121		$ 26,961
Increase in the fair value of contingent consideration			13,600	$ (1,000)	15,900	$ 3,100
Other Assets
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Decrease (increase) in fair value of warrants			(300)	(200)	$ (100)	300
Minimum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discount rate (as a percent)					2.90%
Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discount rate (as a percent)					5.10%
Gainesville Transaction
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Increase in the fair value of contingent consideration			$ 13,600	$ 1,000	$ 15,900	$ 3,100
Gainesville Transaction \| Scenario, Forecast [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discount rate (as a percent)		2.80%
Gainesville Transaction \| Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Warrants received								350,000
Gainesville Transaction \| Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Maximum milestone payment receivable	$ 125,000
Recro \| Gainesville Transaction
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Closing stock price at December 31, 2016			$ 8.89		$ 8.89
Warrant strike price			$ 19.46		$ 19.46				$ 19.46
Expected term (years)					4 years 6 months 7 days
Risk-free rate (as a percent)					1.92%
Volatility (as a percent)					80.00%

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock shares, authorized	50,000,000	50,000,000
Preferred stock shares, issued	0	0
Preferred stock shares, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	155,793,163	154,191,281
Common stock, shares outstanding	153,745,656	152,430,514
Treasury stock shares	2,047,507	1,760,767

THE COMPANY	9 Months Ended
THE COMPANY	Sep. 30, 2017
THE COMPANY
THE COMPANY	1. THE COMPANY Alkermes plc is a fully integrated, global biopharmaceutical company that applies its scientific expertise and proprietary technologies to research, develop and commercialize, both with partners and on its own, pharmaceutical products that are designed to address unmet medical needs of patients in major therapeutic areas. Alkermes has a diversified portfolio of marketed drug products and a clinical pipeline of products that address CNS disorders such as schizophrenia, depression, addiction and MS. Headquartered in Dublin, Ireland, Alkermes has a research and development (“R&D”) center in Waltham, Massachusetts; an R&D and manufacturing facility in Athlone, Ireland; and a manufacturing facility in Wilmington, Ohio.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017 segment	Jan. 01, 2017 USD ($)
Number of business segments \| segment	1
Cumulative Effect Adjustment To Retained Earnings
Adjustment to retained earnings to record net deferred tax asset \| $		$ 61.5

FAIR VALUE MEASUREMENTS - ROLLFORWARD OF FAIR VALUE OF ASSETS (Details)	9 Months Ended
	Sep. 30, 2017 USD ($)
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Transfers between the levels	$ 0
Balance at the beginning of the period	64,592,000
Balance at the end of the period	80,559,000
Increase in the fair value of contingent consideration
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Increase (decrease) in the fair value	15,900,000
Increase in the fair value of warrants
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Increase (decrease) in the fair value	$ 67,000

INVENTORY (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
INVENTORY
Raw materials	$ 27,606	$ 19,413
Work in process	27,944	21,811
Finished goods	29,477	21,774
Total inventory	85,027	62,998
Finished goods inventory located at third-party warehouse and shipping service provider	$ 11,900	$ 7,100

FAIR VALUE MEASUREMENTS (Details) - Recurring basis - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair value
Estimated Fair Value	$ 482,558	$ 495,664
Assets, Total	482,558	495,664
Level 1
Fair value
Estimated Fair Value	148,576	158,030
Assets, Total	148,576	158,030
Level 2
Fair value
Estimated Fair Value	253,423	273,042
Assets, Total	253,423	273,042
Level 3
Fair value
Estimated Fair Value	80,559	64,592
Assets, Total	80,559	64,592
Cash equivalents
Fair value
Estimated Fair Value	1,859	1,660
Assets, Total	1,859	1,660
Cash equivalents \| Level 1
Fair value
Estimated Fair Value	1,859	1,660
Assets, Total	1,859	1,660
U.S. government and agency debt securities
Fair value
Estimated Fair Value	236,169	258,696
Assets, Total	236,169	258,696
U.S. government and agency debt securities \| Level 1
Fair value
Estimated Fair Value	146,717	156,370
Assets, Total	146,717	156,370
U.S. government and agency debt securities \| Level 2
Fair value
Estimated Fair Value	89,452	102,326
Assets, Total	89,452	102,326
Corporate debt securities
Fair value
Estimated Fair Value	118,618	159,247
Assets, Total	118,618	159,247
Corporate debt securities \| Level 2
Fair value
Estimated Fair Value	118,618	159,247
Assets, Total	118,618	159,247
International government agency debt securities
Fair value
Estimated Fair Value	45,353	11,469
Assets, Total	45,353	11,469
International government agency debt securities \| Level 2
Fair value
Estimated Fair Value	45,353	11,469
Assets, Total	45,353	11,469
Contingent Consideration
Fair value
Estimated Fair Value	79,100	63,200
Assets, Total	79,100	63,200
Contingent Consideration \| Level 3
Fair value
Estimated Fair Value	79,100	63,200
Assets, Total	79,100	63,200
Equity securities
Fair value
Estimated Fair Value	1,459	1,392
Assets, Total	1,459	1,392
Equity securities \| Level 3
Fair value
Estimated Fair Value	1,459	1,392
Assets, Total	$ 1,459	$ 1,392

FAIR VALUE MEASUREMENTS - REMAINING FINANCIAL INSTRUMENTS (Details) - Term Loan B-1 - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Estimated fair value of the Term Loans
Fair value of remaining financial instruments not recognized at fair value	$ 300,000
Variable interest rate base	LIBOR
Carrying Value	$ 281,994	$ 283,666
Estimated Fair Value	$ 286,425
LIBOR
Estimated fair value of the Term Loans
Interest rate added to base rate (as a percent)	2.75%
Interest rate, variable interest rate floor (as a percent)	0.75%

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, plant and equipment
Subtotal	$ 502,897	$ 470,716
Less: accumulated depreciation	(232,231)	(205,931)
Total property, plant and equipment, net	270,666	264,785
Land
Property, plant and equipment
Subtotal	6,293	5,913
Buildings and improvements
Property, plant and equipment
Subtotal	155,117	152,871
Furniture, fixture and equipment
Property, plant and equipment
Subtotal	283,731	251,437
Leasehold improvements
Property, plant and equipment
Subtotal	19,578	19,241
Construction in progress
Property, plant and equipment
Subtotal	$ 38,178	$ 41,254

GOODWILL AND INTANGIBLE ASSETS - INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Goodwill
Gross Carrying Amount	$ 92,873
Goodwill	92,873	$ 92,873
Finite-lived intangible assets:
Gross Carrying Amount	582,750
Accumulated Amortization	(310,939)
Net Carrying Amount	$ 271,811
Collaboration agreements
Finite-lived intangible assets:
Weighted Amortizable Life	12 years
Gross Carrying Amount	$ 465,590
Accumulated Amortization	(256,517)
Net Carrying Amount	$ 209,073
NanoCrystal technology
Finite-lived intangible assets:
Weighted Amortizable Life	13 years
Gross Carrying Amount	$ 74,600
Accumulated Amortization	(29,544)
Net Carrying Amount	$ 45,056
OCR technologies
Finite-lived intangible assets:
Weighted Amortizable Life	12 years
Gross Carrying Amount	$ 42,560
Accumulated Amortization	(24,878)
Net Carrying Amount	$ 17,682

GOODWILL AND INTANGIBLE ASSETS - AMORTIZATION (Details) $ in Millions	Sep. 30, 2017 USD ($)
Expected amortization of intangible assets
2017	$ 60.0
2018	60.0
2019	55.0
2020	50.0
2021	$ 45.0

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable	$ 52,718	$ 46,275
Accrued compensation	48,229	45,622
Accrued sales discounts, allowances and reserves	93,019	60,973
Accrued other	57,221	54,185
Total accounts payable and accrued expenses	$ 251,187	$ 207,055

LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Long-term debt
Less: current portion	$ (3,000)	$ (3,000)
Long-term debt	278,994	280,666
Term Loan B-1
Long-term debt
Total	$ 281,994	$ 283,666

SHARE-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
SHARE-BASED COMPENSATION (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Share-based compensation Expense
Total share-based compensation expense	$ 19,488	$ 23,726	$ 63,336	$ 74,613
Cost of goods manufactured and sold
Share-based compensation Expense
Total share-based compensation expense	1,752	2,151	5,893	6,693
Research and development
Share-based compensation Expense
Total share-based compensation expense	5,497	6,032	16,752	18,830
Selling, general and administrative
Share-based compensation Expense
Total share-based compensation expense	12,239	$ 15,543	40,691	$ 49,090
Inventory
Share-based compensation Expense
Share based compensation cost capitalized			300		$ 1,100
Performance-based RSUs
Share-based compensation Expense
Unrecognized compensation cost	$ 60,000		$ 60,000

LOSS PER SHARE (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
LOSS PER SHARE (Details) - shares shares in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Denominator:
Anti-dilutive potential common equivalent shares excluded from calculation of net loss per ordinary share	11,771	10,501	11,622	11,754
Stock options
Denominator:
Anti-dilutive potential common equivalent shares excluded from calculation of net loss per ordinary share	9,588	9,203	9,564	10,507
Restricted stock units
Denominator:
Anti-dilutive potential common equivalent shares excluded from calculation of net loss per ordinary share	2,183	1,298	2,058	1,247

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Sep. 30, 2017 USD ($) item	Jan. 01, 2018 ft²	Mar. 31, 2017 ft²	Mar. 01, 2017 ft²
Area of Real Estate Property \| ft²			65,000	43,290
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Rental expense for year 2017	$ 1,200
Rental expense for year 2018	2,400
Rental expense for year 2019	2,400
Rental expense for year 2020	1,800
Potential losses from claims, legal proceedings probable of occurring	$ 0
Number of separate Paragraph IV notices received \| item	10
Maximum number of days for lawsuit	45 days
Minimum number of months before FDA can approve patent request	30 months
Scenario, Plan [Member]
Area of Real Estate Property \| ft²		21,645