Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
9 Months Ended
Sep. 30, 2013
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
10. Subsequent Events
On November 12, 2013, we entered into the Third Amendment to the Agreement and a stock purchase agreement (the “SPA”) with Braeburn primarily to modify the amount and timing of the approval and sales milestone payments under the Agreement and to provide for a $5,000,000 equity investment by Braeburn in our company. 
The Third Amendment provides for a reduction in the milestone payable to us upon approval by the FDA of the Probuphine NDA from $45 million to $15 million and an increase in the total amount of potential sales milestones payable under the Agreement from $130 million to $165 million.  Braeburn also agreed to assume responsibility for all expenses relating to the Probuphine regulatory process.  The Third Amendment also contains a provision entitling us to receive a low single digit royalty on sales by Braeburn of other mid to long-term continuous delivery treatments for opioid dependence, up to a maximum of $50 million.  We will have the additional right to elect to participate in a low single digit royalty on sales by Braeburn of other products in the addiction market in exchange for a similar reduction in our royalties on Probuphine. 
Pursuant to the SPA, we agreed to issue 6,250,000 shares of our common stock to Braeburn for an aggregate purchase price of $5,000,000, or $.80 per share, the closing price on the day before execution of the agreements. The Third Amendment will be effective upon the closing of the SPA