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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2011	Jan. 12, 2012	Jun. 30, 2011
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Entity Registrant Name	PAIN THERAPEUTICS INC
Entity Central Index Key	0001069530
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		44,732,017
Entity Well-known Seasoned Issuer	No
Entity Public Float			$ 144,131,648
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 73,144	$ 4,798
Marketable securities	24,987	86,428
Receivables		7,114
Other current assets	358	144
Total current assets	98,489	98,484
Property and equipment, net	122	285
Other assets	352	426
Total assets	98,963	99,195
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	464	1,107
Accrued development expense	914	258
Deferred program fee revenue-current portion	10,897	10,897
Accrued compensation and benefits	915	1,712
Other accrued liabilities	82	97
Total current liabilities	13,272	14,071
Deferred program fee revenue-non-current portion	40,863	51,760
Deferred tax liabilities	435	431
Total liabilities	54,570	66,262
Commitments and contingencies
Stockholders' equity
Preferred stock, $.001 par value; 10,000,000 shares authorized, none issued and outstanding
Common stock, $.001 par value; 120,000,000 shares authorized; 44,732,017 and 42,910,164 shares issued and outstanding in 2011 and 2010, respectively	45	43
Additional paid-in-capital	176,425	161,957
Accumulated other comprehensive income	128	525
Accumulated deficit	(132,205)	(129,592)
Total stockholders' equity	44,393	32,933
Total liabilities and stockholders' equity	$ 98,963	$ 99,195

Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2011	Dec. 31, 2010
Balance Sheets [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	120,000,000	120,000,000
Common stock, issued	44,732,017	42,910,164
Common stock, outstanding	44,732,017	42,910,164

Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenue
Program fee revenue	$ 10,897	$ 10,496	$ 14,348
Collaboration revenue	587	1,313	6,215
Milestone revenue		5,000
Total revenue	11,484	16,809	20,563
Operating expenses
Research and development	8,300	15,746	21,059
General and administrative	6,698	14,766	6,258
Total operating expenses	14,998	30,512	27,317
Operating loss	(3,514)	(13,703)	(6,754)
Interest and other income, net	901	1,680	1,777
Loss before income taxes	(2,613)	(12,023)	(4,977)
Benefit from income taxes			(1,510)
Net loss	$ (2,613)	$ (12,023)	$ (3,467)
Net loss per share, basic and diluted	$ (0.06)	$ (0.28)	$ (0.08)
Weighted-average shares used in computing net loss per share, basic and diluted	44,160	42,644	42,165

Statements Of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2008	$ 42	$ 218,021	$ 325	$ (114,102)	$ 104,286
Balance, shares at Dec. 31, 2008	42,068,752
Issuance of common stock pursuant to exercise of stock options and awards		436			436
Issuance of common stock pursuant to exercise of stock options and awards, shares	194,311
Issuance of common stock related to employee stock purchase plan		128			128
Issuance of common stock related to employee stock purchase plan, shares	38,838
Compensation with respect to non-employee option grants		(22)			(22)
Compensation with respect to employee option grants and share based awards		6,681			6,681
Tax benefits from the exercise of options		188			188
Net unrealized gains (losses) on investments in marketable securities			22		22
Net loss				(3,467)	(3,467)
Comprehensive loss					(3,445)
Balance at Dec. 31, 2009	$ 42	225,432	347	(117,569)	108,252
Balance, shares at Dec. 31, 2009	42,301,901
Issuance of common stock pursuant to exercise of stock options and awards	$ 1	1,940			1,941
Issuance of common stock pursuant to exercise of stock options and awards, shares	569,935
Issuance of common stock related to employee stock purchase plan		144			144
Issuance of common stock related to employee stock purchase plan, shares	38,328
Compensation with respect to non-employee option grants		35			35
Compensation with respect to employee option grants and share based awards		20,097			20,097
Non-dividend cash distribution ($2.00 per share)		(85,691)			(85,691)
Net unrealized gains (losses) on investments in marketable securities			178		178
Net loss				(12,023)	(12,023)
Comprehensive loss					(11,845)
Balance at Dec. 31, 2010	$ 43	161,957	525	(129,592)	32,933
Balance, shares at Dec. 31, 2010	42,910,164
Issuance of common stock pursuant to exercise of stock options and awards	$ 2	8,908			8,910
Issuance of common stock pursuant to exercise of stock options and awards, shares	1,781,769
Issuance of common stock related to employee stock purchase plan		122			122
Issuance of common stock related to employee stock purchase plan, shares	40,084
Compensation with respect to non-employee option grants		60			60
Compensation with respect to employee option grants and share based awards		5,378			5,378
Net unrealized gains (losses) on investments in marketable securities			(397)		(397)
Net loss				(2,613)	(2,613)
Comprehensive loss					(3,010)
Balance at Dec. 31, 2011	$ 45	$ 176,425	$ 128	$ (132,205)	$ 44,393
Balance, shares at Dec. 31, 2011	44,732,017

Statements Of Stockholders' Equity (Parenthetical)	12 Months Ended
Statements Of Stockholders' Equity (Parenthetical)	Dec. 31, 2010 $ / shares
Statements Of Stockholders' Equity [Abstract]
Non-dividend cash distribution, per share	$ 2

Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
Statements Of Cash Flows - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash flows used in operating activities:
Net loss	$ (2,613)	$ (12,023)	$ (3,467)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock based compensation	5,428	20,132	6,659
Depreciation and amortization	163	232	257
Non-cash net interest income	1,141	1,252	22
Deferred program fee revenue	(10,897)	(10,496)	(14,348)
Changes in operating assets and liabilities:
Receivables	7,114	(4,812)	(2,104)
Other current assets	(214)	266	132
Other non-current assets	74	1,585	(440)
Accounts payable	(643)	(210)	(899)
Accrued development expense	656	(963)	192
Deferred program fee revenue		5,000
Tax benefits from equity-based compensation plans			188
Excess tax benefits from equity-based compensation plans	339	(290)	9
Accrued compensation and benefits	(797)	574	(552)
Other accrued liabilities	(15)	(390)	(344)
Other non-current liabilities	4		4
Net cash used in operating activities	(260)	(143)	(14,691)
Cash flows provided by (used in) investing activities:
Purchase of marketable securities	(2,497)	(65,753)	(154,000)
Sales of marketable securities		7,407	2,422
Maturities of marketable securities	62,400	110,809	48,350
Net cash provided by (used in) investing activities	59,903	52,463	(103,228)
Cash flows provided by (used in) financing activities:
Nondividend distribution		(85,691)
Excess tax benefits from equity-based compensation plans	(339)	290	(9)
Proceeds from issuance of common stock, net	9,042	2,085	564
Net cash provided by (used in) financing activities	8,703	(83,316)	555
Net increase (decrease) in cash and cash equivalents	68,346	(30,996)	(117,364)
Cash and cash equivalents at beginning of the year	4,798	35,794	153,158
Cash and cash equivalents at end of the year	$ 73,144	4,798	35,794
Supplemental cash flow information:
Cash paid (received) for income taxes		$ (3,765)	$ 1,177

General	12 Months Ended
General	Dec. 31, 2011
General [Abstract]
General	1. General We are a biopharmaceutical company that develops novel drugs. Our lead drug candidate is called REMOXY. REMOXY is a strong painkiller with a unique formulation designed to reduce potential risks of unintended use. REMOXY and three other abuse-resistant painkillers are being developed pursuant to the collaboration agreement and license agreement, or the King Agreements, between us and King Pharmaceuticals, Inc., or King, a wholly-owned subsidiary of Pfizer, Inc., or Pfizer. In the course of our development activities, we have sustained cumulative operating losses. There are no assurances that additional financing will be available on favorable terms, or at all.

- Definition

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

+ References

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-Publisher AICPA
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+ Details

Summary Of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue earned and expenses incurred during the reporting period. Actual results could differ from those estimates.

Revenue Recognition and Deferred Program Fee Revenue

Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable, and collection is reasonably assured.

We and King have a strategic alliance to develop and commercialize REMOXY and up to three other opioid painkillers designed to reduce potential risks of unintended use. In connection with the strategic alliance, we recognize program fee revenue, collaboration revenue and milestone revenue. Program fee revenue is derived from the upfront payment received under the strategic alliance in December 2005 and a payment in July 2010 in connection with an amendment to our strategic alliance and is recognized ratably over our estimate of the development period of the four drug candidates expected to be developed under the strategic alliance. We currently estimate the development period for all four expected drug candidates to extend through September 2016. We review the estimated development period on a quarterly basis and change it if appropriate based upon our latest expectations. Deferred program fee revenue represents the amount of the upfront payment that has not yet been recognized as revenue.

Collaboration revenues from reimbursement of development expenses are generally recognized when King has completed its review of the expenses invoiced to them.

King is obligated to pay us milestone payments contingent upon the achievement of certain substantive events in the clinical development of REMOXY and the other opioid painkillers under the strategic alliance. We recognize the milestone payments as revenue when we achieve the underlying developmental milestone as the milestone payments are not dependent upon any other future activities or achievement of any other future milestones and the achievement of each of the developmental milestones were substantively at risk and contingent at the effective date of the collaboration. Substantial effort is involved in achieving each of the developmental milestones. These milestones represent the culmination of discrete earnings processes and the amount of each milestone payment is reasonable in relation with the level of effort associated with the achievement of the milestone. Each milestone payment is non-refundable and non-creditable when made. The ongoing research and development services being provided to King under the collaboration are priced at fair value based upon the reimbursement of expenses incurred pursuant to the collaboration with King.

Cash, Cash Equivalents and Concentration of Credit Risk

We consider all highly liquid financial instruments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist of cash maintained at one financial institution and in money market funds. We believe the financial risks associated with these instruments are minimal. We have not incurred material losses from our investments in these securities.

Marketable Securities and Fair Value Measurements

We invest in interest bearing marketable securities, generally consisting of corporate and government securities. We may elect to sell these investments before they mature. Therefore, we hold these investments as "available for sale" and include these investments in our balance sheets as current assets, even though the contractual maturity of a particular investment may be beyond one year. We report our marketable securities at fair value, which may include unrealized gains and losses. Our unrealized gains and losses on investments are recorded as a separate component of stockholders' equity as accumulated other comprehensive income or loss. We recognize all realized gains and losses on our available-for-sale securities in interest income in the accompanying statement of operations on a specific identification basis. Our marketable securities are maintained at two financial institutions and are governed by our investment policy as approved by our Board of Directors.

To date we have not recorded any impairment charges on marketable securities related to other-than-temporary declines in market value. We would recognize an impairment charge when the decline in the estimated fair value of a marketable security below the amortized cost is determined to be other-than-temporary. We consider various factors in determining whether to recognize an impairment charge, including the duration of time and the severity to which the fair value has been less than our amortized cost, any adverse changes in the investees' financial condition and our intent to sell or whether it is more likely than not that we would be required to sell the marketable security before its anticipated recovery.

We measure our cash equivalents and marketable securities at fair value on a recurring basis and have significant observable inputs where there are identical or comparable assets in the market to use in establishing our fair value measurements. We use significant observable inputs that include but are not limited to benchmark yields, reported trades, broker/dealer quotes and issuer spreads. We consider these inputs to be Level 2 inputs. Generally, the types of instruments we invest in are not traded on a market such as the NASDAQ Global Market, which we would consider to be Level 1 inputs. We do not have any investments that would require inputs considered to be Level 3. We use the bid price to establish fair value.

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets (generally two to five years). Leasehold improvements are amortized over the shorter of the estimated useful life of the assets or the lease term.

Impairment of Long-Lived Assets

We regularly perform reviews to determine if the carrying value of our long-lived assets is impaired. We consider facts or circumstances, either internal, or external that indicate that we may not recover the carrying value of the asset. No events or changes in circumstances have occurred with respect to our long-lived assets that would indicate that an impairment analysis should have been performed.

Business Segments

We report segment information based on how we internally evaluate the operating performance of our business units, or segments. Our operations are confined to one business segment: the development of novel drugs.

Stock-based Compensation

We recognize non-cash expense in the statement of operations for the fair value of all share-based payments to employees and directors, including grants of employee stock options and other share based awards. For stock options, we use the Black-Scholes option valuation model and the single-option award approach and straight-line attribution method. Using this approach, the compensation cost is amortized on a straight-line basis over the vesting period of each respective stock option, generally four years. We estimate forfeitures and adjust this estimate periodically based on the extent to which future actual forfeitures differ, or are expected to differ, from such estimates.

We have granted share-based awards that vest upon achievement of certain performance criteria, or Performance Awards. The value of these awards is the product of the number of shares of our common stock to be issued under the award multiplied by the fair market value of a share of our common stock on the date of grant. These awards include future performance conditions. We estimate an implicit service period for achieving these performance conditions. Performance Awards vest and common stock is issued on achieving performance conditions. We recognize non-cash stock-based compensation expense for Performance Awards when we conclude that achieving a performance condition is probable. We periodically review and update as appropriate our estimates of the implicit service periods and the likelihood of achieving the performance conditions.

Government Grants

In October 2010, we were awarded $2.1 million in research grants by the U.S. government under the Qualifying Therapeutic Discovery Project Program. We recorded a receivable and reduced our research and development expenses for 2010 related to these grant awards.

Expenses for Clinical Trials

Research and development expense includes the cost of clinical trials. Expenses for clinical trials are incurred from planning through patient enrollment to reporting of the underlying data. We estimate expenses incurred for clinical trials that are in process based on patient enrollment and based on clinical data collection and management. Costs that are associated with patient enrollment are recognized as each patient in the clinical trial completes enrollment. Estimated clinical trial costs related to enrollment can vary based on numerous factors, including expected number of patients in trials, the number of patients that do not complete participation in a trial, and when a patient drops out of a trial. Information about patient enrollment can become available significantly after we report our expenses for clinical trials, in which case we would change our estimate of the remaining cost of a trial. Costs that are based on clinical data collection and management are recognized based on estimates of unbilled goods and services received. In the event of early termination of a clinical trial, we would accrue an amount based on estimates of the remaining non-cancelable obligations associated with winding down the clinical trial.

Net Loss per Share

Basic net loss per share is computed on the basis of the weighted-average number of common shares outstanding for the reporting period. Diluted net loss per share is computed on the basis of the weighted-average number of common shares outstanding plus dilutive potential common shares outstanding using the treasury-stock method. Potential dilutive common shares consist of outstanding stock options and warrants.

The numerators and denominators in the calculation of basic and diluted net loss per share were as follows (in thousands):


	Years Ended December 31,
	2011			2010			2009
Numerator
Net loss	$	(2,613	)	$	(12,023	)	$	(3,467	)
Denominator
Weighted average shares used to compute basic net loss per share, basic and diluted		44,160			42,644			42,165

Net loss per share, basic and diluted	$	(0.06	)	$	(0.28	)	$	(0.08	)

We excluded weighted options outstanding to purchase common stock of 13.7 million for 2011, 7.3 million for 2010 and 10.6 million for 2009 from the calculation of diluted net loss per share because the effect of including these shares in this calculation would be anti-dilutive.

Comprehensive Loss

Comprehensive loss combines net loss and other comprehensive income (loss), as follows (in thousands):


	Years Ended December 31,
	2011			2010			2009
Net loss	$	(2,613	)	$	(12,023	)	$	(3,467	)
Other comprehensive income (loss)		(397	)		178			22

Comprehensive loss	$	(3,010	)	$	(11,845	)	$	(3,445	)

Other comprehensive income (loss) consists of unrealized holding gains and losses on available-for-sale securities.

Income Taxes

We make estimates and judgments in determining the need for a provision for income taxes, including the estimation of our taxable income or loss for each full fiscal year. We have accumulated significant deferred tax assets. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. We are uncertain about the timing and amount of any future earnings. Accordingly, we offset these net deferred tax assets with a valuation allowance. We may in the future determine that more of our deferred tax assets will likely be realized, in which case we will reduce our valuation allowance in the quarter in which such determination is made. If the valuation allowance is reduced, we may recognize a benefit from income taxes in our statement of operations in that period. We classify interest and penalties recognized related to uncertain tax positions as interest expense.

Recent Accounting Pronouncements

We reviewed recently issued accounting pronouncements and plan to adopt those that are applicable to us. We do not expect the adoption of these pronouncements to have a material impact on our financial position, results of operations or cash flows.

Collaboration Agreements	12 Months Ended
Collaboration Agreements	Dec. 31, 2011
Collaboration Agreements [Abstract]
Collaboration Agreements	3. Collaboration Agreements *King Pharmaceuticals, Inc. and Pfizer, Inc.* In November 2005, we and King announced a strategic alliance to develop and commercialize REMOXY and other abuse-resistant opioid painkillers. Pfizer acquired King in early 2011. King made an upfront cash payment of $150.0 million to us in 2005 and $5.0 million in July 2010 in connection with an amendment to our strategic alliance, of which we recorded as program fee revenue $10.9 million in 2011, $10.5 million in 2010 and $14.3 million in 2009. In January 2011, we received $5.0 million from King for the acceptance by the FDA in 2010 of the IND for abuse-resistant oxymorphone. In 2008, we received $15.0 million related to acceptance by the FDA of the NDA for REMOXY, and $5.0 million of acceptance by the FDA of the IND for abuse-resistant hydrocodone. In 2006, we received $5.0 million for the acceptance by the FDA of the IND for abuse-resistant hydromorphone. We could also receive from King up to $120.0 million in additional milestone payments in the course of clinical development of the other abuse-resistant opioid painkillers under the strategic alliance. In addition, subject to certain limitations, King is obligated to fund development expenses incurred by us pursuant to the collaboration agreement, of which we recorded as collaboration revenue $0.6 million in 2011, $1.3 million in 2010 and $6.2 million in 2009. King is obligated to fund the commercialization expenses of, and has the exclusive right to market and sell, drugs developed in connection with the strategic alliance. The royalty rate for net sales of REMOXY and other products covered by the strategic alliance with King in the United States is 20%, except as to the first $1.0 billion in cumulative net sales in the United States, for which the royalty is set at 15%. The royalty rate for net sales of products covered by the strategic alliance with King outside the United States is 10% on all of net sales. *Durect Corporation* We have an exclusive, worldwide licensing agreement with Durect Corporation to use a patented technology that forms the basis for certain drug candidates, including REMOXY. We have sub-licensed to King certain rights to develop and to commercialize REMOXY and certain other opioid drugs formulated in part with technology we licensed from Durect. Under the agreement with Durect, we control all of the preclinical, clinical, commercial manufacturing and sales/marketing activities for REMOXY and other abuse-resistant opioid painkillers. We reimburse Durect for formulation and related work, and will make milestone payments based on the achievement of certain technical, clinical or regulatory milestones. We also are responsible to pay Durect royalties on any related drug sales. King is obligated to reimburse us for costs we incur under the agreement with Durect, including royalties.

Cash And Cash Equivalents And Marketable Securities

12 Months Ended

Dec. 31, 2011

Cash And Cash Equivalents And Marketable Securities [Abstract]

Cash And Cash Equivalents And Marketable Securities

4. Cash and Cash Equivalents and Marketable Securities

Cash, cash equivalents and marketable securities held as available-for-sale consisted of the following (in thousands):


	Cash, Cash Equivalents and Marketable Securities
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		Accrued Interest		Total Value
December 31, 2011
Cash and cash equivalents	$	73,144	$	—	$	—	$	73,144	$	—	$	73,144
Corporate securities		24,583		128		—		24,711		276		24,987

	$	97,727	$	128	$	—	$	97,855	$	276	$	98,131

Reported as:
Cash and cash equivalents	$	73,144	$	—	$	—	$	73,144	$	—	$	73,144
Marketable Securities		24,583		128		—		24,711		276		24,987

	$	97,727	$	128	$	—	$	97,855	$	276	$	98,131

Maturities:
Matures in one year or less	$	97,727	$	128	$	—	$	97,855	$	276	$	98,131
Matures one to three years		—		—		—		—		—		—

	$	97,727	$	128	$	—	$	97,855	$	276	$	98,131

December 31, 2010
Cash and cash equivalents	$	4,798	$	—	$	—	$	4,798	$	—	$	4,798
Certificates of deposit		10,131		—		—		10,131		31		10,162
Corporate securities		75,063		525		—		75,588		678		76,266

	$	89,992	$	525	$	—	$	90,517	$	709	$	91,226

Reported as:
Cash and cash equivalents	$	4,798	$	—	$	—	$	4,798	$	—	$	4,798
Marketable Securities		85,194		525		—		85,719		709		86,428

	$	89,992	$	525	$	—	$	90,517	$	709	$	91,226

Maturities:
Matures in one year or less	$	67,557	$	106	$	—	$	67,663		433	$	68,096
Matures one to three years		22,435		419		—		22,854		276		23,130

	$	89,992	$	525	$	—	$	90,517	$	709	$	91,226

To date we have not recorded any impairment charges on marketable securities related to other-than-temporary declines in market value. We would recognize an impairment charge when the decline in the estimated fair value of a marketable security below the amortized cost is determined to be other-than-temporary. We consider various factors in determining whether to recognize an impairment charge, including the duration of time and the severity to which the fair value has been less than our amortized cost, any adverse changes in the investees' financial condition and our intent and ability to hold the marketable security for a period of time sufficient to allow for any anticipated recovery in market value. Our realized gains and losses on our marketable securities were immaterial in 2011, 2010 and 2009.

Our assets measured at fair value at December 31, 2011 and 2010 were (in thousands):


	Level 1		Level 2		Level 3		Total
December 31, 2011
Cash and money market fund	$	62,446	$	—	$	—	$	62,446
Commercial paper	$	—		10,698		—		10,698
Corporate securities		—		24,987		—		24,987

	$	62,446	$	35,685	$	—	$	98,131

December 31, 2010
Cash and cash equivalents	$	4,798	$	—	$	—	$	4,798
Corporate securities		—		76,266		—		76,266
Certificates of deposit		10,162		—		—		10,162

	$	14,960	$	76,266	$	—	$	91,226

Property And Equipment

12 Months Ended

Dec. 31, 2011

Property And Equipment [Abstract]

Property And Equipment

5. Property and Equipment

Property and equipment at December 31, 2011 and 2010 consisted of the following (in thousands):


	December 31,
	2011			2010
Furniture, fixtures and equipment	$	672		$	672
Leasehold improvement		658			658

		1,330			1,330
Accumulated depreciation and amortization		(1,208	)		(1,045	)

	$	122		$	285

Depreciation and amortization expenses were $0.2 million in 2011, $0.2 million in 2010 and $0.3 million in 2009.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Stockholders' Equity And Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

Stockholders' Equity And Stock-Based Compensation [Abstract]

Stockholders' Equity And Stock-Based Compensation

6. Stockholders' Equity and Stock-Based Compensation

Preferred Stock

Our Board of Directors has the authority to issue preferred stock in one or more series and to fix the rights, preferences, privileges, restrictions and the number of shares constituting any series or the designation of the series.

We have a stockholder rights plan designed to guard against partial tender offers and other coercive tactics to gain control of the Company without offering a fair and adequate price and terms to all of the Company's stockholders. Pursuant to the stockholder rights plan, our Board of Directors declared and paid a dividend of one right to purchase one one-thousandth share of our Series A Participating Preferred Stock for each outstanding share of our common stock. Each of these rights entitles the registered holder to purchase from us one one-thousandth of a share of Series A Preferred at an exercise price of $40.00, subject to adjustment at any time.

Stock-Based Compensation

Stock based compensation costs for the 2008 Equity Incentive Plan, the 1998 Stock Option Plan and 2000 Employee Stock Purchase Plan was $5.4 million in 2011, $20.1 million in 2010 and $6.7 million in 2009. Stock based compensation in 2010 included $14.8 million for modifications made to options outstanding under the 1998 Stock to prevent diminution of the benefit of these options from the special, one-time nondividend distribution to stockholders in the fourth quarter of 2010.

2008 Equity Incentive Plan

Under our 2008 Equity Incentive Plan, or 2008 Equity Plan, our employees, directors and consultants may be granted options that allow for the purchase of shares of our common stock. Incentive stock options may only be granted to employees. Through December 31, 2011 a total of 26,633,961 shares of common stock were authorized for issuance under these plans including adjustments related to the nondividend distribution in 2010. Shares reserved for issuance and available for grant under the 2008 Equity Incentive Plan were 5.8 million as of December 31, 2011. The 2008 Equity Plan terminates in 2018.

Our Board of Directors or a designated Committee of the Board is responsible for administration of the 2008 Equity Plan and determines the terms and conditions of each option granted, consistent with the terms of the plan. Incentive stock options may be granted at a price not less than 100% of the fair market value of the stock on the date of grant (not less than 110% of the fair market value on the date of grant in the case of holders of more than 10% of our voting stock). Options generally expire ten years from the date of grant (five years for incentive stock options granted to holders of more than 10% of our voting stock). Forfeited options become available for reissuance.

The 2008 Equity Plan also provides for the automatic grant of options to purchase shares of common stock to outside directors. On the date of each annual stockholders' meeting, each outside director is automatically granted an option to purchase 25,000 shares of common stock. The term of the option is ten years, the exercise price is 100% of the fair market value of the stock on the date of grant, and the option becomes exercisable as to 25% of the shares on the anniversary of its date of grant provided the optionee continues to serve as a director on such dates.

Our stock option activity for 2011, 2010 and 2009 was:


	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
						In years		In millions
Options outstanding as of December 31, 2008		11,457,815		$	7.58		6.52	$	1.8
Granted		1,339,100		$	4.54
Exercised		(194,311	)	$	2.25
Forfeited		(1,005,316	)	$	8.09

Options outstanding as of December 31, 2009		11,597,288		$	7.28		5.95	$	1.5
Granted		1,225,000		$	4.66
Exercised		(448,402	)	$	5.20
Forfeited		(1,126,201	)	$	8.96
Increase related to nondividend distribution		3,537,258

Options outstanding as of December 31, 2010		14,784,943		$	5.38		5.49	$	20.9
Granted		1,130,000		$	9.53
Exercised		(1,857,198	)	$	5.45
Forfeited		(1,500,602	)	$	5.60

Options outstanding as of December 31, 2011		12,557,143		$	5.71		5.16	$	0.5

Vested and expected to vest at December 31, 2011		12,353,691		$	5.70		5.10	$	0.5

Exercisable at December 31, 2011		9,835,172		$	5.60		4.23	$	0.3

In 2010, options and Performance Awards outstanding under the 2008 Equity Plan were automatically adjusted to prevent diminution of the benefit of the options and restricted stock units from the special, one-time nondividend distribution of $2.00 per share paid to our stockholders in December 2010. In addition, the Compensation Committee of our Board of Directors adjusted the options outstanding under the 1998 Equity Plan to prevent diminution of the benefit of these options from the distribution on the same basis as the adjustments made to options and restricted stock units under the 2008 Equity Plan. The adjustments increased the number of shares available for purchase under each option and decreased the exercise price of each option based on the ratio of (a) the fair market value of our common stock immediately prior to the distribution over (b) the fair market value of our common stock immediately prior to the distribution less the $2.00 per share distribution.

The pre-tax intrinsic value of options exercised was approximately $5.9 million in 2011, $0.7 million in 2010, and $0.6 million in 2009, calculated by multiplying options exercised each year by the difference between our stock price on the date of exercise and the exercise price of the options.

As of December 31, 2011, we expect to recognize compensation costs prior to forfeiture of $8.8 million related to non-vested options over the weighted average remaining recognition period of 2.4 years.

The following summarizes information about stock options outstanding at December 31, 2011:


			Options outstanding					Options exercisable
			Number of outstanding options		Weighted average remaining contractual life (in years)	Weighted average exercise price		Number of vested options		Weighted average exercise price


Range of exercise prices
From	To
$ 1.76	$	4.45		3,583,680	6.66	$	3.94		2,092,430	$	3.89
$ 4.55	$	5.73		3,310,324	3.50	$	5.46		3,033,440	$	5.47
$ 5.86	$	6.29		2,746,069	4.34	$	6.15		2,713,257	$	6.15
$ 6.37	$	9.14		2,033,945	4.49	$	6.80		1,882,920	$	6.68
$10.00	$	10.00		883,125	9.39	$	10.00		113,125	$	10.00

				12,557,143	5.16	$	5.71		9,835,172	$	5.60

Determining the Fair Value of Options

We use Black-Scholes to estimate the fair value of options granted. Black-Scholes considers a number of factors, including the market price of our common stock. For options granted to employees and directors, we used certain factors to value each stock option granted, which resulted in a weighted average fair value of options granted during 2011, 2010 and 2009, as follows:

2011

2010

2009

Volatility

50% to 60%

48% to 50%

50% to 53%

Risk-free interest rates

1% to 3%

2% to 3%

Expected life of option

6 years

5 to 6 years

Dividend yield

—

Forfeiture rate

7% to 8%

4% to 5%

Weighted average fair value of stock options granted

$4.68

$2.23

$1.71

Volatility is based on reviews of the historical volatility of our common stock. Risk-free interest rates are based on yields of U.S. treasury notes in effect at the date of grant. Expected life of option is based on actual historical option exercises. Dividend yield is zero because we do not anticipate paying cash dividends in the foreseeable future. Forfeiture rate is based primarily on historical cancellations of options. The Weighted average fair value of options granted to employees and directors in 2010 and 2009 includes the effect of the increase related to the nondividend distribution in 2010.

For options granted to non-employees, we estimate the fair value of stock options granted using factors similar to those used for stock options granted to employees and directors and appropriate for the terms underlying the stock options granted to non-employees. We re-measure the compensation expense for options granted to non-employees over the related vesting period.

Performance Awards

At December 31, 2011, we have outstanding 2,085,930 shares of performance awards granted in 2008 and 13,124 shares of performance awards granted in 2010 and amended in 2011. If the performance based awards granted in 2008 vest, we would recognize an additional $13.8 million in stock compensation expense. If the performance based awards granted in 2010 vest, we would recognize an additional $0.1 million in stock compensation expense. If the performance awards granted in 2008 do not vest within four years of the date of grant, the awards expire and the underlying shares will be returned to the 2008 Equity Incentive Plan. If the performance awards granted in 2010 do not vest by December 31, 2014, the awards expire and the underlying shares will be returned to the 2008 Equity Incentive Plan.

In 2011, we granted performance awards valued at $0.7 million. During 2011, all 70,000 of these awards vested and we recognized related stock-based compensation expense of $0.1 million in research and development expenses and $0.6 million in general and administrative expenses.

In 2010, we granted performance awards valued at $0.7 million. During 2010, 78,748 shares of these awards vested and we recognized related stock-based compensation expense of $0.1 million in research and development expenses and $0.3 million in general and administrative expenses. During 2011, 45,934 shares of these awards were forfeited and returned to the 2008 Equity Incentive Plan.

In 2009, we granted performance awards valued at $1.2 million. In 2009, 0.1 million shares of these awards vested and we recognized related stock-based compensation expense of $0.2 million in research and development expenses and $0.3 million in general and administrative expenses. The remaining 0.2 million shares in performance awards were returned to the 2008 Equity Incentive Plan in 2010.

2000 Employee Stock Purchase Plan

Under the amended and restated 2000 Employee Stock Purchase Plan, or the Purchase Plan, eligible employees may purchase common stock through payroll deductions of up to 15% of the employee's compensation. The purchase price of the stock is generally 85% of the lower of the fair market value of the common stock at the beginning of the offering period or at the end of the purchase period. We have 443,137 shares reserved for issuance under the Purchase Plan at December 31, 2011.

We use Black-Scholes to estimate the fair value of rights granted under the Purchase Plan, using assumptions similar to those used in determining the fair value of options. Stock based compensation costs related to the Purchase Plan was immaterial in 2011.

Warrants

As of December 31, 2011, we have no outstanding exercisable warrants.

Employee 401(k) Benefit Plan	12 Months Ended
Employee 401(k) Benefit Plan	Dec. 31, 2011
Employee 401(k) Benefit Plan [Abstract]
Employee 401(k) Benefit Plan	7. Employee 401(k) Benefit Plan We have a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code. The plan covers substantially all employees. Employees are eligible to participate in the plan the first day of the month after hire and may contribute up to the current statutory limits under Internal Revenue Service regulations. The 401(k) plan permits us to make additional matching contributions on behalf of all employees. Through December 31, 2011, we have not made any matching contributions.

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

8. Income Taxes

We did not provide for income taxes in 2011, 2010 and 2009 because we did not have taxable income in those years.

We elected to carry back part of our federal tax loss for 2009 against all federal taxes paid for 2008 and a portion of federal taxes paid for 2006. As a result of this election, in 2010 we received a combined federal tax refund of $1.6 million. All of our benefit from income taxes in 2009 is federal. All of our net income is domestic.

Our election to carryback our 2009 tax loss to 2008 and 2006 eliminated the use of federal tax credits to reduce our federal tax liability for both 2008 and 2006. As a result, our deferred tax liabilities decreased by $1.0 million and our current assets related to our deferred tax assets decreased by $1.0 million.

A reconciliation between our benefit from income taxes for 2009 and the amounts computed by multiplying loss before income taxes by the U.S. statutory tax rate follows (in thousands):


	2009
Tax at U.S. statutory tax rate of 34%	$	(1,692	)
State taxes		8
Research credits		(373	)
Equity-based compensation		794
Change in valuation allowance		(288	)
Other		41

Benefit from income taxes	$	(1,510	)

Unrecognized tax benefits

We have unrecognized tax benefits related primarily to tax credits. A reconciliation of the beginning and ending unrecognized tax benefits recorded for 2011, 2010 and 2009 follows (in thousands):


	2011		2010		2009
Beginning balance	$	4,800	$	4,600	$	4,200
Additions based on tax positions related to the current year		300		200		400

Ending balance	$	5,100	$	4,800	$	4,600

The total amount of unrecognized tax benefit that, if recognized, would benefit our effective tax rate, is $67 thousand.

In 2010, we were selected for an audit of our 2008 federal tax return. This audit was completed in early 2011 with no changes in any of our tax positions. Because of net operating loss and research credit carryforwards, all of our tax years, from 1998 through 2011, remain open to U.S. federal and California state tax examinations. Our tax year 2011 is open to Texas state tax examination.

Interest expense related to our tax positions was immaterial for 2011, 2010 and 2009.

Deferred tax assets and valuation allowance

Deferred tax assets reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets are as follows (in thousands):


	December 31,
	2011			2010			2009
Deferred tax assets:
Net operating loss carryforwards	$	6,500		$	3,000		$	6,000
Deferred license fee revenue		19,900			22,900			27,100
Research & development credits		6,300			5,800			3,200
Stock-related compensation		12,000			14,000			7,300
Other		900			700			800

Total deferred tax assets		45,600			46,400			44,400
Valuation allowance		(45,300	)		(46,100	)		(41,600	)

Net deferred tax assets	$	300		$	300		$	2,800

Except for certain of our research and development credits, realization of deferred tax assets is dependent upon future earnings. We are uncertain about the timing and amount of any future earnings. Accordingly, these deferred tax assets have been offset by a valuation allowance.

The federal portion of our pre-tax net operating loss carryforwards of $14.8 million expires between 2029 and 2031. The California state portion of our pre-tax net operating loss carryforwards of $27.8 million expires in 2017 and between 2029 and 2031.

Approximately $0.2 million of the valuation allowance at December 31, 2011 relates to the tax benefits associated with stock option transactions where tax deductions exceeded related expenses in our financial statements. This amount will be credited to additional paid-in capital when realized as a reduction to income taxes payable. The valuation allowance decreased by $0.8 million in 2011, increased by $4.5 million in 2010 and did not change materially in 2009.

As of December 31, 2011, we had federal research and development tax credits of approximately $9.1 million, which expire in the years 2023 through 2031 and California state research and development tax credits of approximately $2.1 million.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Leases And Commitments

12 Months Ended

Dec. 31, 2011

Leases And Commitments [Abstract]

Leases And Commitments

9. Leases and Commitments

We conduct our product research and development programs through a combination of internal and collaborative programs that include, among others, arrangements with universities, contract research organizations and clinical research sites. We have contractual arrangements with these organizations, however these contracts are cancelable on thirty days' notice and our obligations under these contracts are largely based on services performed.

We currently lease approximately 36,400 square feet of office space pursuant to non-cancelable operating leases. Our lease in Austin, TX expires in 2014. Our lease in San Mateo, CA expires in 2012. Future minimum lease payments are as follows for the years ended December 31, (in thousands):


	2012		2013		2014		Total
Future minimum lease payments	$	450	$	115	$	81	$	646

In December 2012, we entered into a sublease for all of our facility in San Mateo. This sublease is conterminous with our lease in San Mateo. This sublease may reduce our related expenses by approximately $0.3 million. We believe that our facilities are adequate and suitable for our current needs. Rent expense was $0.6 million for 2011, $0.9 million for 2010, and $0.7 million for 2009.

Legal Proceedings	12 Months Ended
Legal Proceedings	Dec. 31, 2011
Legal Proceedings [Abstract]
Legal Proceedings	10. Legal proceedings Charles Southey, Individually and On Behalf of All Others Similarly Situated v. Pain Therapeutics, Inc., Remi Barbier, Nadav Friedman, Grant L. Schoenhard and Peter S. Roddy. On December 2, 2011, Charles Southey filed a purported class action against us and our executive officers listed above in the U.S. District Court for the Western District of Texas. This complaint alleges, among other things, violations of Section 10(b), Rule 10b-5, and Section 20(a) of the Exchange Act arising out of allegedly untrue or misleading statements of material facts made by us regarding REMOXY's development and regulatory status during the purported class period, February 3, 2011 through June 23, 2011. The complaint states that monetary damages are being sought, but no amounts are specified. Anders Goldfarb, derivatively on behalf of Pain Therapeutics, Inc. v. Remi Barbier, Nadav Friedmann, Michael J. O'Donnell, Patrick J. Scannon, Robert Z. Gussin, and Sanford R. Robinson. On December 22, 2011, Anders Goldfarb filed a derivative action on behalf of Pain Therapeutics, Inc. against us and our directors listed above in the U.S. District Court for the Western District of Texas. This action alleges, among other things, breach of fiduciary duties, waste of corporate assets and unjust enrichment by our directors in connection with allegedly untrue or misleading statements of material facts made by us regarding REMOXY's development and regulatory status from February 3, 2011 through June 23, 2011. The complaint states that monetary damages are being sought, but no amounts are specified. The complaint also seeks equitable relief on behalf of us against our directors as well as alterations to our corporate governance and internal procedures. We have not accrued any loss related to these legal proceedings because at this time the amount of a loss, if any, cannot be reasonably determined.

Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2011

Selected Quarterly Financial Data [Abstract]

Selected Quarterly Financial Data

11. Selected Quarterly Financial Data (Unaudited) (in thousands except per share data)


	Quarters Ended
	March 31			June 30			September 30			December 31
2011
Total revenue	$	3,236		$	2,752		$	2,749		$	2,747
Net loss	$	(207	)	$	(1,200	)	$	(815	)	$	(391	)
Basic net loss per share	$	0.00		$	(0.03	)	$	(0.02	)	$	(0.01	)
Diluted net loss per share	$	0.00		$	(0.03	)	$	(0.02	)	$	(0.01	)
2010
Total revenue	$	3,249		$	2,656		$	2,895		$	8,009
Net loss	$	(1,020	)	$	(804	)	$	(1,028	)	$	(9,171	)
Basic net loss per share	$	(0.02	)	$	(0.02	)	$	(0.02	)	$	(0.21	)
Diluted net loss per share	$	(0.02	)	$	(0.02	)	$	(0.02	)	$	(0.21	)

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details