View Filing Data

Prepaid expenses and other current assets

9,556,098

132,994

^[1]

Accounts receivable, net

7,959,411

Inventory, net

800,507

813,364

1,370,943

^[1]

Total current assets

37,333,662

7,501,244

^[1]

Property and equipment, net

670,796

127,427

^[1]

Security deposits

337,014

244,058

^[1]

Restricted cash

40,000

^[1]

Other asset

1,888,035

Intangible assets, net

94,265,530

12,586,150

^[1]

Goodwill

935,935

Total assets

135,470,972

20,498,879

^[1]

Current liabilities:

Deferred technology purchase liability

1,000,000

1,634,630

^[1]

Accounts payable

7,124,330

3,553,567

^[1]

Accrued expenses

27,882,995

4,881,434

^[1]

^[1]

1,457,901

Other liability

938,209

2,117,565

Total current liabilities

27,990,000

25,037,346

^[1]

Note payable

40,485,452

107,538,551

36,564,878

^[1]

Convertible debt

43,287,814

Other liability

12,234,513

9,519,662

Deferred technology purchase liability, less current portion

^[1]

1,000,000

Deferred income tax liability, net

141,151

2,600,899

^[1]

Total liabilities

172,721,691

40,165,777

^[1]

Commitments and contingencies

^[1]

Stockholders' Deficit:

Preferred stock Series A $0.001 par value; 20,000,000 shares authorized; 0 issued and outstanding as of December 31, 2014 and 2013, respectively

^[1]

Common stock $0.0001 par value; 100,000,000 shares authorized; 26,428,071 and 18,546,363 issued and 26,048,480 and 18,415,573 outstanding as of December 31, 2014 and 2013, respectively

2,643

1,855

^[1]

Additional paid-in capital

140,850,551

49,635,502

^[1]

Treasury stock, at cost, 379,591 and 130,790, respectively

(3,214,608)

(957,272)

^[1]

Accumulated deficit

(179,174,858)

(68,236,996)

^[1]

Accumulated other comprehensive income (loss)

4,285,553

(109,987)

^[1]

Total stockholders' deficit

(37,250,719)

(19,666,898)

^[1]

Total liabilities and stockholders' deficit

$ 135,470,972

$ 20,498,879

^[1]

[1]	(As Restated)

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	26,428,071	18,546,363
Common stock, shares outstanding	26,048,480	18,415,573
Treasury stock, shares	379,591	130,790

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

^[1]

Dec. 31, 2012

Income Statement [Abstract]

Net product sales

$ 28,203,205

Operating expenses:

Cost of goods sold

570,979

47,795,223

$ 7,084,009

$ 662,502

59,644,696

17,689,439

29,594,515

Total operating expenses

108,010,898

24,773,448

30,257,017

Realized gain on sale of marketable securities, net

(79,807,693)

(24,773,448)

(30,257,017)

Other expenses, net:

Interest expense, net

(7,434,878)

(46,344)

(84,087)

Finance expense

(4,720,780)

2,349,430

374,482

Change in fair value of derivative instruments - (loss)

(23,786,072)

(10,099,926)

Gain (loss) on transactions denominated in foreign currencies

2,383

(3,873)

(2,752)

Total other expenses, net

(33,589,917)

(9,775,661)

(86,839)

Loss before provision for income taxes

(113,397,610)

(34,549,109)

(30,343,856)

Income tax benefit (provision)

2,459,748

(75,775)

Net loss per common share, basic and diluted (in dollars per share)

$ (110,937,862)

$ (34,624,884)

$ (30,343,856)

$ (4.43)

$ (2.44)

$ (8.29)

Weighted average common shares outstanding, basic and diluted (in shares)

25,057,509

14,205,264

3,662,114

Comprehensive Loss:

Unrealized gain (loss) on sale of marketable securities

$ (110,937,862)

$ (34,624,884)

$ (30,343,856)

4,395,540

(109,987)

Comprehensive loss

$ (106,542,322)

$ (34,734,871)

$ (30,343,856)

[1]	(As Restated)

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($)

Common Stock

Common Stock in Treasury

Additional paid in capital

Receivables due from Stockholder

Accumulated other comprehensive loss

Accumulated Deficit

Total

Balance at Dec. 31, 2011

$ 404

$ 2,766,567

$ (35,000)

$ (3,268,256)

$ (536,285)

Balance (in shares) at Dec. 31, 2011

4,042,265

Prior Issuance of Series A preferred in connection with January 2012 private place, net of fees of $61,677, exchanged to common stock

$ 33

1,806,644

1,806,677

Prior Issuance of Series A preferred in connection with January 2012 private place, net of fees of $61,677, exchanged to common stock (in shares)

326,963

Prior Issuance of Series A preferred in connection with May 2012 private place, net of fees of $12,275, exchanged to common stock

$ 47

1,668,979

1,669,026

Prior Issuance of Series A preferred in connection with May 2012 private place, net of fees of $12,275, exchanged to common stock (in shares)

470,764

Shares transferred to consultants by founder for services

$ 0

4,400,000

Shares transferred to consultants by founder for services (in shares)

Shares transferred to employees by founder for services

$ 0

1,375,000

Shares transferred to employees by founder for services (in shares)

Shares issued in accordance with license agreement

$ 62

1,549,938

1,550,000

Shares issued in accordance with license agreement (in shares)

620,000

Shares outstanding at time of reverse merger completed on December 12, 2012

$ 259

1,142

1,401

Shares outstanding at time of reverse merger completed on December 12, 2012 (in shares)

2,585,583

Incentive shares granted - employees

$ 86

(86)

Incentive shares granted - employees (in shares)

866,180

Incentive shares granted- non employees

$ 9

(9)

Incentive shares granted- non employees (in shares)

87,503

Share based compensation - employees

14,637,850

Share based compensation - non employees

1,997,372

Incentive shares forfeited - employees

$ (5)

Incentive shares forfeited - employees (in shares)

(46,353)

Loan made to stockholder

(372,900)

Receivable due from stockholder charged to compensation

407,900

Balance (in shares) at Dec. 31, 2012

(30,343,856)

Balance at Dec. 31, 2012

$ 895

30,203,402

(33,612,112)

(3,407,815)

8,952,905

Incentive shares granted - employees

$ 14

(14)

Incentive shares granted - employees (in shares)

135,000

Share based compensation - employees

1,424,528

Share based compensation - non employees

$ 18

1,485,357

1,485,375

Share based compensation - non employees (in shares)

177,500

Consultants settlement

$ 18

1,179,750

1,179,768

Consultants settlement (in shares)

181,500

Incentive shares forfeited - employees

$ (2)

Incentive shares forfeited - employees (in shares)

(20,833)

Incentive shares forfeited - non employees

$ (4)

Incentive shares forfeited - non employees (in shares)

(37,500)

Issuance of common stock in connection with January 2013 private placement at $3.00 per share, net of fees of $0

$ 27

816,637

816,664

Issuance of common stock in connection with January 2013 private placement at $3.00 per share, net of fees of $0 (in shares)

272,221

Issuance of common stock in connection with February 2013 private placement at $3.00 per share, net of fees of $928,986 and registration payment obligation of $360,000

$ 305

2,441,124

2,441,429

Issuance of common stock in connection with February 2013 private placement at $3.00 per share, net of fees of $928,986 and registration payment obligation of $360,000 (in shares)

3,045,929

Issuance of common stock in connection with August 2013 private placement at $4.50 per share, net of fees of $2,780,563 and payment made to February investors for inducement to participate in August financing of $2,238,681 (unaudited)

$ 553

10,670,020

10,670,573

5,531,401

Issuance of common stock in connection with payment made to February investors for inducement to participate in August financing, 271,222 shares at $4.50 per share and 20,685 shares at $5.00 per share

$ 29

1,323,894

1,323,923

291,907

Shares issued on behalf of related party

$ 1

80,799

80,800

Shares issued on behalf of related party (in shares)

11,000

Adjustment to existing shareholder

$ 1

9,999

10,000

Adjustment to existing shareholder (in shares)

5,333

Treasury stock

$ (957,272)

(957,272)

Treasury stock (in shares)

(130,790)

Unrealized gain (loss) on sale of marketable securities

(109,987)

^[1]

Balance (in shares) at Dec. 31, 2013

(34,624,884)

^[1]

Balance at Dec. 31, 2013

$ 1,855

$ (957,272)

49,635,502

(109,987)

(68,236,996)

(19,666,898)

^[1]

18,546,363

(130,790)

Share based payments

$ 73

16,638,693

16,638,766

Share Based payments (in shares)

730,774

Kyalin payments

$ 10

999,990

1,000,000

Kyalin Payments (in shares)

96,628

Issuance of common stock in connection with January 2014 public offering at $8.50 per share, net of fees of $3,164,990

$ 471

36,834,536

36,835,007

Issuance of common stock in connection with January 2014 public offering at $8.50 per share, net of fees of $3,164,990 (in shares)

4,705,882

Exercise of warrants and reclassification of derivative liability

$ 194

31,761,851

31,762,045

Exercise of warrants and reclassification of derivative liability (in shares)

1,947,377

August 2013 private placement settlement

271,739

Issuance of common stock to convertible debt holders

$ 40

4,708,240

4,708,280

Issuance of common stock to convertible debt holders (in shares)

401,047

Treasury stock

$ (2,257,336)

(2,257,336)

Treasury stock (in shares)

(248,801)

Unrealized gain (loss) on sale of marketable securities

4,395,540

Balance (in shares) at Dec. 31, 2014

(110,937,862)

Balance at Dec. 31, 2014

$ 2,643

$ (3,214,608)

$ 140,850,551

$ 4,285,553

$ (179,174,858)

$ (37,250,719)

26,428,071

(379,591)

[1]	(As Restated)

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (Parentheticals) - USD ($)	1 Months Ended
	Jan. 31, 2014	Aug. 31, 2013	Feb. 28, 2013	Jan. 31, 2013	May 31, 2012	Jan. 31, 2012
Statement of Stockholders' Equity [Abstract]
Prior Issuance of Series A preferred stock exchanged to common stock, fees					$ 12,275	$ 61,677
Issuance of common stock, per share amount	$ 8.50	$ 4.50	$ 3.00	$ 3.00
Underwriting fees and other offering costs	$ 3,164,990	$ 2,780,563	$ 928,986	$ 0
Issuance of common stock in private placement, registration payment obligation			360,000
Issuance of common stock to investors, per share amount		$ 4.50
Payment made to investors for inducement to participate in financing		$ 2,238,681
Shares issued to investors for inducement to participate in financing		271,222
Issuance of common stock to investors, per share amount		$ 5.00
Shares issued to investors for inducement to participate in financing		20,685

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Cash Flows From Operating Activities:

Adjustments to reconcile net loss to net cash used in operating activities:

$ (110,937,862)

$ (34,624,884)

^[1]

$ (30,343,856)

Depreciation and amortization

5,401,038

215,993

^[1]

124,885

Realized gain on marketable securities

(2,349,430)

(374,482)

^[1]

Income tax provision (benefit)

(2,459,748)

75,775

^[1]

Settlement expense

5,745,860

2,534,750

^[1]

Compensation in lieu of stockholder receivable

^[1]

407,900

Amortization of deferred financing costs

69,963

^[1]

Amortization of debt discount

1,014,137

^[1]

2013 private placement settlement

271,739

^[1]

Lease liability

301,244

Non-cash financing cost

4,708,280

Loss on impairment of cost method purchase

400,000

Share based compensation

15,900,456

2,909,921

^[1]

22,410,222

Shares issued on behalf of related party

^[1]

80,800

Registration payment obligation expense

360,000

^[1]

Reversal of registration payment obligation liability

(360,000)

^[1]

Share based payment - Technology license contingent fee

1,550,000

Change in estimated fair value of liability classified warrants

23,786,072

10,099,926

^[1]

Changes in operating assets and liabilities, net of business acquisitions:

Accounts receivable

(7,959,411)

Inventory

(282,502)

Prepaid expenses and other current assets

237,126

(1,349,113)

^[1]

(14,830)

Technology license fees

150,000

Accounts payable and accrued expenses

20,303,288

2,842,146

^[1]

2,978,940

Net cash used in operating activities

(45,849,750)

(17,589,168)

^[1]

(2,736,739)

Cash Flows From Investing Activities:

Purchase of fixed assets

(662,597)

(117,033)

^[1]

(24,774)

Purchase of intangible assets

(3,301,534)

(5,400,601)

^[1]

Purchase of amortizable intangible asset

(31,682)

^[1]

(1,168,093)

Security deposits

(92,956)

(106,511)

^[1]

Repayment of technology license liability

^[1]

(1,300,000)

Proceeds from the sale of marketable securities

6,493,001

4,385,425

^[1]

Purchase of marketable securities

(10,148,642)

(4,124,482)

^[1]

Proceeds from securities sold, not yet purchased

7,499,946

4,193,719

^[1]

Cover securities sold, not yet purchased

(7,499,946)

(2,865,260)

^[1]

Increase in restricted cash

^[1]

(40,000)

Cash received in merger transaction

3,721

Payments made on behalf of affiliate

(137,547)

Loans made to stockholder

(372,900)

Cash paid for investment

(400,000)

Cash paid upon acquisition, net of cash acquired

(29,150,000)

Net cash used in investing activities

(37,262,728)

(5,406,425)

^[1]

(1,699,593)

Cash Flows From Financing Activities:

Proceeds from related parties

10,500

Repayment of net amounts due to related parties

(13,200)

^[1]

(33,300)

Payment of acquisition-related contingent consideration

(1,162,773)

Repayment of other liability

(500,232)

Proceeds from note payable - related party

930,000

Repayment of note payable - related party

(884,764)

^[1]

(45,236)

Investors' deposits

(100,000)

^[1]

100,000

Proceeds from credit agreement

42,366,210

Proceeds from convertible notes payable

42,924,169

Proceeds from exercise of warrant

8,397,380

Repayment of Manchester note payable

(31,282,972)

Proceeds received from issuance of common stock

40,000,000

30,936,748

^[1]

3,475,703

Financing costs from issuance of common stock, net

(3,164,993)

Purchase of treasury stock, at cost

(2,257,336)

(957,272)

^[1]

Net cash provided by financing activities

95,319,453

28,981,512

^[1]

4,437,667

Net increase in cash and cash equivalents

12,206,975

5,985,919

^[1]

1,335

Cash and cash equivalents, beginning of year

5,997,307

11,388

10,053

Cash and cash equivalents, end of year

18,204,282

5,997,307

11,388

Supplemental Disclosure of Cash Flow Information:

Cash paid for interest

4,080,185

28,263

^[1]

14,764

Non-cash Investing and financing activities:

Reclassification of derivative liability to equity due to exercise of warrants

23,364,668

Present value of contingent consideration payable to sellers of Manchester Pharmaceuticals, LLC.

12,800,000

Present value of guaranteed minimum royalty payable to sellers of Thiola

11,849,647

Note payable entered into upon consummation of Manchester Pharmaceuticals, LLC.

31,282,972

Unrealized gain on marketable securities

4,395,540

3,292

^[1]

Issuance of shares to Noteholders

4,720,780

Unrealized loss on securities sold, not yet purchased

^[1]

(113,279)

Reclassification of due from related parties

500

Technology license liability

$ 1,300,000

Adjustment to existing shareholders

^[1]

10,000

Purchase of Kyalin in exchange for future consideration

$ 1,000,000

2,634,630

^[1]

Affiliate receivable applied to security deposit

^[1]

137,547

Share based payment made to February investors for inducement to participate in August financing

^[1]

1,323,923

Offering expense liability

^[1]

746,739

Increase in basis of indefinite lived intangible assets acquired from Kyalin due to accrual of deferred tax liability

^[1]

$ 2,525,124

[1]	(As Restated)

DESCRIPTION OF BUSINESS

12 Months Ended

Dec. 31, 2014

Description Of Business [Abstract]

DESCRIPTION OF BUSINESS

NOTE 1. DESCRIPTION OF BUSINESS

Organization and Description of Business

Retrophin, Inc. (“we”, “our”, “us”, “Retrophin” and the “Company”) refer to Retrophin, Inc., a Delaware corporation, as well as our direct and indirect subsidiaries is a fully integrated biopharmaceutical company headquartered in San Diego, California focused on the development, acquisition and commercialization of therapies for the treatment of serious, catastrophic or rare diseases. We regularly evaluate and, where appropriate, act on opportunities to expand our product pipeline through licenses and acquisitions of products in areas that will serve patients with serious, catastrophic or rare diseases and that we believe offer attractive growth characteristics. During the first quarter of 2014, we completed the acquisition of all of the membership interests of Manchester Pharmaceuticals LLC (“Manchester”), a privately-held specialty pharmaceutical company that focuses on treatments for rare diseases. This acquisition expanded our ability to address the special needs of patients with rare diseases. As a result of the purchase of Manchester, we generated our first sales in March 2014 and our planned principal operations commenced. On May 29, 2014, we entered into a license agreement with Mission Pharmacal Company (“Mission”), a privately-held healthcare medications and treatments provider, for the U.S. marketing rights to Thiola® (tiopronin), the license added Thiola® to our product line. In July 2014, we amended the license agreement to secure the Canadian marketing rights to Thiola®. During 2014, the Company built a specialty commercial team to launch and commercialize these products.

We currently sell the following two products:

Chenodal® is approved in the United States for the treatment of patients suffering from gallstones in whom surgery poses an unacceptable health risk due to disease or advanced age. Chenodal® has been the standard of care for CTX patients for more than three decades and the Company is currently pursuing adding this indication the label.

Thiola® is approved in the United States for the prevention of cysteine (kidney) stone formation in patients with severe homozygous cystinuria.

The Company is developing RE-024, a novel small molecule, as a potential treatment for pantothenate kinase-associated neurodegeneration (“PKAN”). PKAN is a genetic neurodegenerative disorder that is typically diagnosed in the first decade of life. Consequences of PKAN include dystonia, dysarthria, rigidity, retinal degeneration, and severe digestive problems. There are currently no viable treatment options for patients with PKAN. RE-024 is a phosphopantothenate prodrug therapy that aims to restore levels of this key substrate in PKAN patients. Certain ex-US health regulators have approved the initiation of dosing RE-024 in PKAN under physician-initiated studies in accordance with local regulations in their respective countries. The Company intends to file a U.S. IND for RE-024 in 2015 to support the initiation of Company-sponsored studies. We are currently exploring options relating to the future development of RE-034, which is currently in preclinical development.

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2014

Restatement Of Previously Issued Consolidated Financial Statements [Abstract]

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

In September 2014, the Company’s board of directors requested that the Company’s outside legal counsel conduct an investigation (the “Investigation”) into the circumstances surrounding the negotiation and execution by the former Chief Executive Officer of the Company, Martin Shkreli, of certain consulting and settlement agreements entered into by the Company. The Investigation also covered additional agreements and other matters involving Mr. Shkreli during his tenure as the Chief Executive Officer of the Company.

In January 2015, the Company’s board of directors appointed an Oversight Committee of the board of directors (the “Oversight Committee”), consisting of Gary Lyons and Jeffrey Meckler, each of whom was not a member of the Company’s board of directors during the period of time covered by the Investigation. The Company’s board of directors delegated to the Oversight Committee the independent and plenary authority to oversee and direct the Investigation and make findings and decisions related to the Investigation.

The following information is the Oversight Committee’s conclusions to date:

•

In September 2013 and December 2013, the Company entered into two consulting agreements and releases with individuals or entities that had been investors in investment funds previously managed by Mr. Shkreli (the “MSMB Entities”), or that otherwise had financial dealings with Mr. Shkreli. The agreements provided for the issuance of a total of 346,500 shares of common stock of the Company, and a total of $200,000 in cash payments by the Company. The Oversight Committee concluded that the Company should not continue to treat these agreements as consulting agreements because their predominant purpose appears to have been to settle and release claims against the MSMB Entities or Mr. Shkreli personally, and not to provide meaningful and sustained consulting services to the Company.

•

In February 2014 and March 2014, the Company entered into two consulting agreements and releases with individuals or entities that had been investors in the MSMB Entities. The agreements provided for the issuance of a total of 266,000 shares of common stock of the Company, and a total of $200,000 in cash payments by the Company. The Oversight Committee concluded that the Company should not continue to treat these agreements as consulting agreements because their predominant purpose appears to have been to settle and release claims against the MSMB Entities or Mr. Shkreli personally, and not to provide meaningful and sustained consulting services to the Company.

•

In the second quarter of 2013 the Company entered into a series of settlement agreements with individuals or entities that had been investors in the MSMB Entities, pursuant to which the Company paid approximately $2.2 million in cash and issued 11,000 shares of common stock of the Company to such investors, and Mr. Shkreli delivered or caused to be delivered a total of 47,128 shares of common stock of the Company to one such investor. The Oversight Committee concluded that an additional previously disclosed settlement agreement entered into by the Company (and under which the Company paid $300,000 in cash) was also with a former investor in the MSMB Entities, and that the predominant purpose of this payment was to settle and release the investor’s claims against the MSMB Entities and Mr. Shkreli personally. The Oversight Committee also concluded that Mr. Shkreli caused to be delivered an additional 80,000 shares of common stock of the Company to another former investor in the MSMB Entities pursuant to a previously undisclosed settlement agreement to which the Company was a party.

•

In the second quarter of 2014, the Company settled two lawsuits involving individuals who had formerly performed services for both the Company and the MSMB Entities. The Oversight Committee concluded that approximately $200,000 in cash payments made by the Company as part of these settlements appear to have been made to cause these individuals to transfer 176,388 shares of the Company’s common stock directly to Mr. Shkreli.

•

During the quarter ended March 31, 2013, the Company repaid a $900,000 secured promissory note dated February 1, 2012, together with interest thereon, in favor of one of the MSMB Entities. The Oversight Committee concluded that the MSMB Entity originally transferred the $900,000 to the Company as an equity investment, which was subsequently reclassified as a loan. It appears that $900,000 of the Company’s payment against the note, together with a $575,000 payment made by the Company to Mr. Shkreli (which appears to have been a discretionary bonus), was transferred to a third party in connection with the settlement of an arbitration proceeding brought against one of the MSMB Entities and Mr. Shkreli personally. The Oversight Committee also identified other instances in which the Company paid or forgave monetary obligations of approximately $1.2 million in the aggregate for the primary benefit of the MSMB Entities.

The Oversight Committee concluded that certain of the transactions described above were consummated without specific approval of the Company’s board of directors or without the Company’s board of directors knowing all of the relevant facts.

Impact on Financial Statements

The financial statements contained in the Company’s Form 10-Q for the three months ended September 30, 2013 (the “2013 Q3 Form 10-Q”), the Company’s Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”) and the Company’s Forms 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014 (the “2014 Forms 10-Q”) contained errors related to certain of the consulting agreements described above, the predominant purpose of which appears to have been to settle and release claims against the MSMB Entities or Mr. Shkreli personally.

Specifically, the Company previously recognized expense related to the stock issued pursuant to such consulting agreements over the term of each such agreement. Had the Company accounted for these arrangements as settlements, the Company would have recorded, as of the date of each such agreement, an expense and a settlement liability related to the entire amount of the stock to be issued under such agreement. The settlement liability would have been revalued at each reporting period based on changes in the Company’s stock price until the stock had been entirely issued.

On February 19, 2015, the Company’s board of directors concluded that as a result of the errors related to such consulting agreements, the financial statements contained in the September 30, 2013 third quarter Form 10-Q and the 2013 Form 10-K should no longer be relied upon. The Company has corrected such errors, including any related disclosures, in this Annual Report on Form 10-K, and we will restate these periods in amendments to the September 30, 2013 third quarter Form 10-Q and 2013 Form 10-K.

The Company believes that the errors related to such consulting agreements in the 2014 Forms 10-Q do not cause the financial statements contained therein to be misleading, and therefore such financial statements can still be relied upon. The Company has corrected such errors, including any related disclosures, in this Annual Report on Form 10-K, and will restate those quarters in future Form 10-Q filings.

Next Steps

The Oversight Committee is evaluating the Company’s alternatives with respect to the matters identified by the Oversight Committee, which may include asserting claims for damages against one or more parties who engaged in the conduct covered by the Investigation.

Stock Option Accounting

The Company held a Special Meeting of Stockholders on February 3, 2015, at which its stockholders voted to approve a proposal ratifying the prior issuance of stock options to purchase 1,928,000 shares of common stock and 230,000 restricted shares of common stock granted to employees between February 24, 2014 and August 18, 2014 (the “Ratified Equity Grants”). The 2014 Forms 10-Q contained errors related to the non-cash compensation expense recognized in connection with the Ratified Equity Grants, because the grant/measurement date of the Ratified Equity Grants for financial accounting purposes did not occur until their ratification in 2015.

The Company previously accounted for the Ratified Equity Awards as if a grant/measurement date for financial accounting purposes had occurred upon their issuance date, and recognized compensation expense for such Ratified Equity Awards based on the grant/measurement date value, which is amortized ratably to compensation expense and additional paid-in capital over the applicable service periods. The Company should have accounted for the Ratified Equity Awards as equity grants without a grant/measurement date, which are accounted for as “liability awards”, with compensation expense and an offsetting compensation liability recorded over the term of the award, and the liability award revalued at each reporting period based on changes in the Company’s stock price until it is ratified.

The Company believes that the errors in the 2014 Forms 10-Q related to the non-cash compensation expense recognized in connection with the Ratified Equity Grants do not cause the financial statements included within the 2014 Forms 10-Q to be misleading, and therefore such financial statements can still be relied upon. The Company has corrected such errors, including any related disclosures, in this Annual Report on Form 10-K, and will restate those quarters in future Form 10-Q filings.

On February 27, 2015, the Company received a Public Letter of Reprimand from NASDAQ (the “Letter of Reprimand”), in accordance with Nasdaq Listing Rule 5810(c)(4). The Letter of Reprimand communicates NASDAQ’s belief that the interests of the Company’s shareholders were not materially adversely affected by the matters described above, and while not having been cured, the violation described above was remediated to the extent possible. Accordingly, NASDAQ does not believe that the delisting of the Company’s securities is an appropriate sanction, but rather, the circumstances warranted the issuance of the Letter of Reprimand. The issuance of the Letter of Reprimand completes NASDAQ’s review of the matters described above.

Quantitative Impact on Previously Issued Financial Statements

The following table sets forth the effects (in thousands) of the matters identified by the Oversight Committee and the Ratified Equity Grants on affected items within the Company’s previously reported Consolidated Balance Sheets for the periods ended September 30, 2013, December 31, 2013, March 31, 2014, June 30, 2014 and September 30, 2014, had the adjustments been made in the corresponding quarters:

	September 30, 2013				December 31, 2013
	As Reported		As Restated		As Reported		As Restated
Additional paid in Capital	$	47,500	$	46,222	$	50,191	$	49,636
Current liabilities	$	28,788	$	30,943	$	35,210	$	36,565

	March 31, 2014				June 30, 2014				September 30, 2014
	As Reported		As Restated		As Reported		As Restated		As Reported		As Restated
Additional paid in Capital	$	105,372	$	108,317	$	133,451	$	132,480	$	138,417	$	137,711
Current liabilities	$	113,447	$	116,966	$	47,985	$	49,153	$	49,135	$	49,433

The following table sets forth the effects (in thousands) of the matters identified by the Oversight Committee and the Ratified Equity Grants on affected items within the Company’s previously reported Consolidated Statement of Operations for the three months ended September 30, 2013, December 31, 2013, March 31, 2014, June 30, 2014 and September 30, 2014, had the adjustments been made in the corresponding quarters:

	September 30, 2013						December 31, 2013
	As Reported			As Restated			As Reported			As Restated
Selling, general and administrative	$	3,755		$	4,631		$	6,747		$	6,672
Research and development	$	1,400		$	1,400		$	4,970		$	4,970
Operating loss	$	(5,155	)	$	(6,031	)	$	(11,717	)	$	(11,642	)
Net loss	$	(11,135	)	$	(12,011	)	$	(12,668	)	$	(12,593	)
Net loss per share, basic and diluted	$	(0.72	)	$	(0.78	)	$	(0.73	)	$	(0.74	)

	March 31, 2014						June 30, 2014						September 30, 2014
	As Reported			As Restated			As Reported			As Restated			As Reported			As Restated
Selling, general and administrative	$	10,092		$	15,146		$	11,340		$	8,406		$	18,576		$	17,372
Research and development	$	6,887		$	6,942		$	13,698		$	13,310		$	13,019		$	12,646
Operating loss	$	(16,952	)	$	(22,062	)	$	(20,504	)	$	(17,182	)	$	(23,444	)	$	(21,867	)
Net income (loss)	$	(70,626	)	$	(75,736	)	$	8,483		$	11,805		$	(19,556	)	$	(17,980	)
Net income (loss) per share, basic	$	(3.03	)	$	(3.25	)	$	0.33		$	0.46		$	(0.73	)	$	(0.67	)
Net loss per share, diluted	$	(3.03	)	$	(3.25	)	$	(0.90	)	$	(0.77	)	$	(0.89	)	$	(0.83	)

The following table sets forth the effects (in thousands) of the matters identified by the Oversight Committee and the Ratified Equity Grants on affected items within our previously reported Consolidated Statement of Operations for the nine and twelve months ended September 30, 2013, and December 31, 2013, and the six and nine months ended June 30, 2014 and September 30, 2014, respectively, had the adjustments been made in the corresponding quarters. The impact of these adjustments was an increase to operating expense of $0.8 million, and $0.2 million, for the year ended December 31, 2013, and for the nine months ended September 30, 2014, respectively.

	September 30, 2013						December 31, 2013
	As Reported			As Restated			As Reported			As Restated
Selling, general and administrative	$	10,141		$	11,017		$	16,888		$	17,690
Research and development	$	2,114		$	2,114		$	7,084		$	7,084
Operating loss	$	(12,255	)	$	(13,131	)	$	(23,972	)	$	(24,773	)
Net loss	$	(21,156	)	$	(22,032	)	$	(33,824	)	$	(34,625	)
Net loss per share, basic and diluted	$	(1.65	)	$	(1.72	)	$	(2.38	)	$	(2.44	)

	June 30, 2014						September 30, 2014
	As Reported			As Restated			As Reported			As Restated
Selling, general and administrative	$	21,432		$	23,552		$	41,181		$	42,097
Research and development	$	20,585		$	20,253		$	33,603		$	32,899
Operating loss	$	(37,456	)	$	(39,244	)	$	(60,899	)	$	(61,111	)
Net loss	$	(62,143	)	$	(63,931	)	$	(81,699	)	$	(81,911	)
Net loss per share, basic and diluted	$	(2.54	)	$	(2.61	)	$	(3.24	)	$	(3.25	)

GOING CONCERN UNCERTAINTY, FINANCIAL CONDITION AND MANAGEMENT'S PLANS

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

LIQUIDITY AND FINANCIAL CONDITION AND MANAGEMENT'S PLANS

NOTE 3. GOING CONCERN UNCERTAINTY, FINANCIAL CONDITION AND MANAGEMENT’S PLANS

We believe that our available cash and short-term investments as of the date of this filing will not be sufficient to fund our anticipated level of operations for at least the next 12 months. Management believes the Company’s ability to continue its operations depends on its ability to sustain and grow revenue, results of operations and its ability to access capital markets when necessary to accomplish its strategic objectives. Management believes that the Company will continue to incur losses for the immediate future. For the year ended December 31, 2014, the Company has generated revenue and is trying to achieve positive cash flow from operations. The Company’s future depends on the costs, timing, and outcome of regulatory reviews of its product candidates, ongoing research and development, the funding of planned or potential acquisitions, other planned operating activities, and the costs of commercialization activities, including ongoing, product marketing, sales and distribution. The Company expects to finance its cash needs from results of operations and depending on the results of operations, the Company may need additional private and public equity offerings and debt financings, corporate collaboration and licensing arrangements and grants from patient advocacy groups, foundations and government agencies. Although management believes that the Company has access to capital resources, there are no commitments for financing in place at this time, nor can management provide any assurance that such financing will be available on commercially acceptable terms, if at all.

At December 31, 2014, we had working capital deficit of approximately $70.2 million. Our accumulated deficit amounted to $179.2 million at December 31, 2014. As of December 31, 2014 and December 31, 2013, our stockholders’ deficit was $37.3 million and $19.7 million, respectively. Our net loss for the year ended December 31, 2014 was $110.9 million compared to $34.6 million for the year ended December 31, 2013. Net cash used in operating activities was $45.8 million for the year ended December 31, 2014 compared to $17.6 million for the year ended December 31, 2013. Operations since inception have been funded primarily with the proceeds from equity and debt financings. As of December 31, 2014, we had cash, cash equivalents and marketable securities of $27.8 million. We will continue to fund operations from cash on hand and through the similar sources of capital previously described. We can give no assurance that such capital will be available to us on favorable terms or at all. If we are unable to raise additional funds in the future on acceptable terms, or at all, we may be forced to curtail our desired development. In addition we could be forced to delay or discontinue product development, and forego attractive business opportunities. Any additional sources of financing will likely involve the sale of our equity securities, which will have a dilutive effect on our stockholders. Finally, while we are in compliance with covenants of our debt agreement at December 31, 2014, it is probable that we will not be in compliance with those covenants when they are next measured in 2015; non-compliance with these covenants gives our creditor the right to call the note due and, should that occur, we do not have sufficient funds to repay the debt. The foregoing events and conditions described give rise to substantial doubt about our ability to continue as a going concern. The financial statements do not contain any adjustments arising from this uncertainty. In the following paragraphs, we describe both the events which gave rise to our current position, as well as plans we have either undertaken or look to initiate to address this uncertainty. No assurances can be given that we will be successful in executing our plans or that, even if we successfully execute on our plans that they will be sufficient in their scope to allow us to meet all of our obligations as they come due.

On January 9, 2014, we completed a public offering of 4,705,882 shares of common stock at a price of $8.50 per share. We received net proceeds from the offering of $36.8 million, after deducting the underwriting fees and other offering costs of $3.2 million.

Acquisition of Manchester Pharmaceuticals LLC

On March 26, 2014, the Company completed its acquisition of all of the membership interests of Manchester, a privately-held specialty pharmaceutical company that focuses on treatments for rare diseases. The acquisition expanded the Company’s ability to address the special needs of patients with rare diseases. As a result of the purchase of Manchester, we generated our first sales in March 2014 and our planned principal operations commenced. We paid aggregate consideration of $60.4 million, plus additional contingent payments based on net sales of the Chenodal® and Vecamyl products. Upon the acquisition of Manchester, the Company entered into a non- interest bearing note payable in the amount of $33 million. The note was recorded at the present value of $31.3 million using the effective interest rate of approximately 11%, which is the Company’s borrowing rate. The note was due and payable in three consecutive payments, each in the amount of $11 million payable on June 26, 2014, September 26, 2014, and December 12, 2014 (the maturity date). On June 30, 2014, the Company paid off the note in its entirety.

Thiola® License Agreement

On May 29, 2014, the Company entered into a license agreement with Mission, pursuant to which Mission agreed to grant the Company an exclusive, royalty-bearing license to market, sell and commercialize Thiola® in the United States and a non-exclusive license to use know-how relating to Thiola® to the extent necessary to market Thiola®. For GAAP purposes, the Thiola® License Agreement was accounted for as an asset acquisition as the license agreement contained inputs but no processes, as defined by ASC 805. In July 2014, the Company amended the license agreement with Mission to secure the Canadian marketing rights to the product for no additional consideration.

Upon execution of the agreement, the Company paid Mission an up-front license fee of $3 million. In addition, the Company shall pay guaranteed minimum royalties during each calendar year the greater of $2 million per year or twenty percent (20%) of the Company’s net sales of Thiola® through June 30, 2024.

Convertible Notes Payable

On May 29, 2014, the Company entered into a Note Purchase Agreement (the “Note Purchase Agreement”) relating to the private placement of $46 million aggregate principal senior convertible notes with an interest rate of 4.50% due 2019 (the “Notes”). The Company received net proceeds from the sale of the Notes of approximately $42.9 million.

On June 30, 2014, the Company issued 401,047 shares of Common Stock to the holders of the Note and such Noteholders granted the Company a release of certain claims they may have had in connection with the Company's sale of the Notes or certain statements made by the Company in connection with such sale due to the then CEO’s violation of his lockup agreement. The Company recorded finance expense as other expense in the amount of $4.7 million for the year ended December 31, 2014 based on the fair market value of the stock on the date of issuance in relation to the shares issued.

Note Payable with Detachable Warrants

On June 30, 2014, the Company entered into a $45 million Credit Agreement (the “Credit Facility”) which matures on June 30, 2018 and bears interest at an annual rate of (i) the Adjusted LIBOR Rate plus 10% or (ii) in certain circumstances, the Base Rate (as such term defined in the Credit Facility) plus 9%. The Company received net proceeds from the Credit Facility of approximately $42.4 million.

On July 16, 2014, the Company entered into Amendment No. 1 to the Credit Facility which permitted the Company to make an investment in Clinuvel Pharmaceuticals Limited in an aggregate amount outstanding not to exceed $10 million.

On July 17, 2014, we made a proposal to the board of directors of Clinuvel Pharmaceuticals Limited (“Clinuvel”) to acquire all of the outstanding shares of Clinuvel for either 0.175 shares of common stock of the Company or $2.03 in cash per share for an aggregate purchase price of approximately $89 million. The Company has since abandoned this strategy and plans to liquidate its positions in Clinuvel over time. As of December 31, 2014, we have invested approximately $9.6 million and acquired approximately 6.5% of the outstanding shares of Clinuvel as part of the proposal process. Our goal is ultimately to dispose of our equity interest in Clinuvel and use the cash generated from stock sales for working capital purposes. However, these shares may not appreciate in value and, in fact, may decline value. Accordingly, we may not be able to realize gains from our interest in Clinuvel, and any gains that we do realize on the disposition of any of these shares may not be sufficient to offset any other losses we experience.

On November 13, 2014, the Company entered into Amendment No. 2 (“Amendment No. 2”) to the Credit Facility which allowed the Company to be in compliance with certain covenants as of September 30, 2014. In addition certain covenants related to fiscal 2014 and 2015 were amended. Associated with Amendment No. 2, the Company issued additional warrants to the lenders, initially exercisable to purchase an aggregate of 300,000 shares of common stock of the Company, which were valued at $2.2 million as of November 13, 2014 and is recorded in change in fair value of derivative instruments in the consolidated statements of operations. The Company was in compliance with all of its debt covenants as of December 31, 2014. The Company has classified the balance of $40.5 million in current liabilities as of December 31, 2014 since the Company does not expect to be in compliance with certain of the debt covenants related to cash and marketable securities within the next 12 months.

Acquisition of Exclusive Right to Purchase Cholic Acid

On January 12, 2015, the Company announced the signing of a definitive agreement under which it will acquire the exclusive right to purchase from Asklepion, all worldwide rights, titles, and ownership of cholic acid for the treatment of bile acid synthesis defects, if approved by the U.S. Food and Drug Administration (“FDA”). Under the terms of the agreement, Retrophin paid Asklepion an upfront payment of $5.0 million and will pay up to $73.0 million in milestones based on FDA approval and net product sales, plus tiered royalties on future net sales of cholic acid. Retrophin has secured a line of credit from current lenders to cover necessary payments (see Note 18).

Sale of Assets

On January 9, 2015, the Company entered into an asset purchase agreement with Turing Pharmaceuticals, a company controlled by our former CEO, pursuant to which the Company sold Turing Pharmaceuticals its ketamine licenses and assets (the “Assets”) for a purchase price of $1.0 million. Turing Pharmaceuticals will also assume all future liabilities related to the Assets (see Notes 11 and 17).

On January 12, 2015, the Company entered into Amendment No. 3 (“Amendment No. 3”) to the Credit Facility in which the Company obtained a commitment letter from Athyrium Capital Management, LLC and Perceptive Credit Opportunities Fund, LP (collectively, the “ Lenders ”), the Company’s existing lenders, providing a commitment for a senior secured incremental term loan under the Company’s existing term loan facility in an aggregate principal amount of $30.0 million (the “Incremental Loan”), which can be drawn down at the Company’s option to finance the acquisition of the Acquired Assets (see Note 12). The Company’s ability to draw down the Incremental Loan in the future is subject to various conditions and the negotiation and execution of a binding definitive amendment to the Company’s existing term loan agreement for the Incremental Loan, and there can be no assurances that this will happen.

On February 13, 2015, Retrophin, Inc., its wholly-owned subsidiary Manchester Pharmaceuticals LLC and its other wholly-owned subsidiary Retrophin Therapeutics International, LLC (collectively, the “Sellers”), entered into a purchase agreement with Waldun Pharmaceuticals, LLC (“Waldun”), pursuant to which the Sellers sold Waldun their product rights to mecamylamine hydrochloride (also referred to as Vecamyl) (the “Vecamyl Product Rights”) for a purchase price of $0.7 million. Waldun in turn sold the Vecamyl Product Rights to Turing Pharmaceuticals. In connection therewith, on February 13, 2015, the Company and Manchester entered into an asset purchase agreement with Turing Pharmaceuticals, pursuant to which the Company and Manchester sold Turing Pharmaceuticals their mecamylamine hydrochloride inventory (the “Inventory”) for a purchase price of $0.3 million. Turing Pharmaceuticals will also assume certain liabilities related to the Vecamyl Product Rights and the Inventory (see Notes 11 and 17).

On February 13, 2015, the Company entered into an asset purchase agreement with Turing Pharmaceuticals, a company controlled by our former CEO, pursuant to which the Company sold Turing Pharmaceuticals its Syntocinon licenses and assets, including related inventory, for a purchase price of $1.1 million. Turing Pharmaceuticals will also assume certain liabilities related to the Syntocinon assets and licenses (see Notes 11 and 17).

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 4.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows:

Principles of Consolidation

The consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with United States of America generally accepted accounting principles (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

In preparing financial statements in conformity with U.S. GAAP, management is required to 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, as well as the reported amounts of expenses during the reporting period. Due to inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in these estimates. On an ongoing basis, the Company evaluates its estimates and assumptions. These estimates and assumptions include revenue recognition, valuing equity securities in share-based payments, estimating fair value of equity instruments recorded as derivative liabilities, estimating the fair value of net assets acquired in business combinations, estimating the useful lives of depreciable and amortizable assets, goodwill impairment, and estimating the fair value of long-lived assets to assess whether impairment charges may apply.

Revenue Recognition

Product sales as of December 31, 2014 consisted of sales of Chenodal®, Vecamyl, and Thiola®. Revenue from product sales is recognized when persuasive evidence of an arrangement exists, title to product and associated risk of loss have passed to the customer, the price is fixed or determinable, collection from the customer is reasonably assured, the Company has no further performance obligations, and returns can be reasonably estimated. The Company records revenue from product sales upon delivery to its customers. From January 1, 2014 through November 30, 2014, the Company sold Thiola®, Chenodal® and Vecamyl in the United States to a specialty pharmacy. Under this distribution model, the specialty pharmacy takes title of the inventory and sells directly to patients. As of December 1, 2014, the Company sold Thiola®, Chenodal® and Vecamyl in the United States and Canada through a specialty distributor. Under this distribution model, the Company records revenues when the distributor ships products to customers and such customers take title of the inventory.

Revenue from products sales is recorded net of applicable provisions for rebates under governmental programs (including Medicaid), distribution related fees, prompt pay discounts, product returns and other sales-related deductions. We review our estimates of rebates and other applicable provisions each period and record any necessary adjustments in the current period’s net product sales.

Deductions from Revenue

Government Rebates and Chargebacks: The Company estimates the rebates that we will be obligated to provide to government programs and deducts these estimated amounts from our gross product sales at the time the revenues are recognized. Allowances for government rebates and discounts are established based on actual payer information, which is reasonably estimated at the time of delivery, and the government-mandated discounts applicable to government-funded programs.

Distribution-Related Fees: The Company records distribution fees and other fees paid to its distributor as a reduction of revenue, unless the Company receives an identifiable and separate benefit for the consideration and the Company can reasonably estimate the fair value of the benefit received. If both conditions are met, the Company records the consideration paid to the distributor as an operating expense. Prior to December 1, 2014, the Company estimated and recorded distribution and related fees due to its customer based on gross sales and deducted the fees from gross product sales. After December 1, 2014, such fees are based on a per transaction model and are no longer deducted from revenue and are recorded in selling, general and administrative expenses in the Consolidated Statement of Operations since the distributor fees are in consideration of services received, the Company receives an identifiable and separate benefit for the consideration and the Company can reasonably estimate the fair value of the benefit received, such that the Company could purchase these services from a third party.

Allowances for Patient Assistance Programs: We provide financial assistance to patients whose insurance policies require them to pay high deductibles and co-pays. The cost of this assistance is established based on actual payer information, and is deducted from gross product sales at the time revenues are recognized.

Prompt Pay Discounts: The Company offers discounts to certain customers for prompt payments. The Company estimates these discounts based on customer terms, and expect that its customers will always take advantage of this discount. Therefore, as of December 1, 2014 the Company accrues 100% of the prompt pay discount that is based on the gross amount of each invoice for those customers at the time of sale.

Product Returns: Consistent with industry practice, the Company offers its customers a limited right to return product purchased directly from the Company, which is principally based upon the product’s expiration date. The Company develops estimates for product returns based upon historical experience, shelf life of the product, and other relevant factors. If necessary, the Company’s estimates of product returns may be adjusted in the future based on actual returns experience, known or expected changes in the marketplace, or other factors. Based on the distribution model change at December 1, 2014, with sales directly to customers, the Company anticipates minimal returns in the future.

During the year ended December 31, 2014, one customer, Dohmen Life Sciences Services (“Dohmen”), the Company’s distributor accounted for 80% of the Company’s revenues. As of December 31, 2014, this same customer accounted for 26% of the Company’s accounts receivable.

Research and Development Costs

Research and development costs are expensed as incurred and include: salaries, benefits, bonus, stock-based compensation, license fees, milestone payments due under license agreements, costs paid to third-party contractors to perform research, conduct clinical trials, and develop drug materials and delivery devices; and associated overhead and facilities costs. Clinical trial costs are a significant component of research and development expenses and include costs associated with third-party contractors, clinical research organizations (“CRO’s). Invoicing from third-party contractors for services performed can lag several months. We accrue the costs of services rendered in connection with third-party contractor activities based on our estimate of management fees, and costs associated with monitoring site and data management.

Employee Stock-Based Compensation

The Company recognizes all employee share-based compensation as a cost in the financial statements. Equity-classified awards principally related to stock options and restricted stock units, or RSUs, are measured at the grant date fair value of the award. The Company determines grant date fair value of stock option awards using the Black-Scholes option-pricing model. The fair value of restricted stock awards are determined using the closing price of the Company’s common stock on the grant date. Expense is recognized over the requisite service period based on the number of options or shares expected to ultimately vest. Forfeitures are estimated at the date of grant and revised when actual or expected forfeiture activity differs materially from original estimates. Refer to Note 14 for a further discussion of share-based payments.

Earnings (Loss) Per Share

We calculate our basic earnings per share by dividing net income by the weighted average number of shares outstanding during the period. The diluted earnings per share computation includes the effect, if any, of shares that would be issuable upon the exercise of outstanding stock options and restricted stock units, reduced by the number of shares which are assumed to be purchased by the Company from the resulting proceeds at the average market price during the year, when such amounts are dilutive to the earnings per share calculation.

Cash and Cash Equivalents

We consider all highly liquid short-term investments with an original maturity of three months or less to be cash equivalents. Due to the short-term maturity of such investments, the carrying amounts are a reasonable estimate of fair value.

Marketable Securities

The Company accounts for marketable securities held as “available-for-sale” in accordance with ASC 320, “Investments Debt and Equity Securities” (“ASC 320”). The Company classifies these investments as current assets and carries them at fair value. Unrealized gains and losses are recorded as a separate component of stockholders’ equity as accumulated other comprehensive income (loss). Realized gains or losses on marketable security transactions are reported in earnings and computed using an average cost basis. Marketable securities are maintained at one financial institution and are governed by the Company’s investment policy as approved by our Board of Directors. Fair values of marketable securities are based on quoted market prices. Valuation of marketable securities are further described in Note 8.

Securities Sold, Not Yet Purchased

Effective November 2014, the Company no longer executes short sales for its investments as such practices are prohibited under the Company’s investment policy. As of December 31, 2013 and for first ten months of fiscal 2014, securities sold, not yet purchased consisted of marketable securities that the Company has sold short. In order to facilitate a short sale, the Company borrows the securities from another party and delivers the securities to the buyer. The Company was required to "cover" its short sale in the future through the purchase of the security in the market at the prevailing market price and deliver it to the counterparty from which it borrowed. The Company was exposed to a loss to the extent that the security price increased during the time from when the Company borrowed the security to when the Company purchased it in the market to cover the short sale. Securities sold, not yet purchased are presented on the consolidated balance sheets with gains and losses reported in realized and unrealized gains on marketable securities on the consolidated statement of operations and comprehensive loss. The Company recognized a gain of $0.5 million on securities sold, not yet purchased for the year ended December 31, 2014.

Accounts Receivable, Net

Trade accounts receivable are recorded net of allowances for prompt payment and doubtful accounts. Allowances for rebate discounts are included in other current liabilities in the accompanying consolidated balance sheets. Estimates for allowances for doubtful accounts are determined based on existing contractual obligations, historical payment patterns and individual customer circumstances. The allowance for doubtful accounts was $0.1 million and $0 million at December 31, 2014 and 2013, respectively. There were no writeoffs of accounts receivable during fiscal 2014.

Inventories and Related Reserves

Inventory is stated at the lower of cost or estimated net realizable value. The Company determines the cost of inventory using the first-in, first-out, or FIFO, method. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated realizable value, and writes down such inventory as appropriate. In addition, the Company's products are subject to strict quality control and monitoring which the Company’s manufacturers perform throughout their manufacturing process. The Company has one manufacturer for Chenodal and one manufacturer for Thiola. With respect to our sources, two suppliers accounted for approximately 17% of our aggregate purchases relating to the sales of Chenodal and 83% of our aggregate purchases relating to the sales of Thiola, representing a total of 100% of our purchases. The inventory reserve was $0.1 million and $0 at December 31, 2014 and 2013, respectively. There were no writeoffs of inventory during fiscal 2014.

Inventory, net of reserve, consists of the following at December 31, 2014:

	December 31, 2014
Raw material	$	314,425
Finished goods		486,082
Total inventory	$	800,507

Property and Equipment, net

Property, plant and equipment are stated at cost net of accumulated depreciation. Depreciation is computed using the straight-line method over the related estimated useful lives as presented in the table below. Significant additions and improvements are capitalized, while repairs and maintenance are charged to expense as incurred. Property and equipment purchased for specific research and development projects with no alternative uses are expensed as incurred.

The major classifications of property and equipment, including their respective expected useful lives, consisted of the following:

Furniture and Equipment	3 to 7 years
Leasehold improvements	Shorter of length of lease or life of the asset

Long-Lived Assets

The Company accounts for long-lived assets in accordance with ASC 360. Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. Application of alternative assumptions, such as changes in estimate of future cash flows, could produce significantly different results. Because of the significance of the judgments and estimation processes, it is likely that materially different amounts could be recorded if we used different assumptions or if the underlying circumstances were to change.

For long-lived assets used in operations, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. The Company measures the impairment loss based on the difference between the carrying amount and estimated fair value.

Intangible Assets, Net

Intangible assets with finite useful lives consist primarily of product rights, licenses and customer relationships which are amortized on a straight line basis over 10 to 20 years. Intangible assets with finite useful lives are reviewed for impairment and the useful lives are reassessed whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value.

Goodwill

Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. In 2011, the Company adopted the method of assessing goodwill for possible impairment permitted by Accounting Standards Update ("ASU") No. 2011-08, Intangibles – Goodwill and Other, as described in the following paragraph. The Company first assesses the qualitative factors for reporting units that carry goodwill. If the qualitative assessment results in a conclusion that it is more likely than not that the fair value of a reporting unit exceeds the carrying value, then no further testing is performed for that reporting unit.

When a qualitative assessment is not used, or if the qualitative assessment is not conclusive and it is necessary to calculate fair value of a reporting unit, then the impairment analysis for goodwill is performed at the reporting unit level using a two-step approach. The first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill utilizing an enterprise-value based premise approach. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined by using various valuation techniques including income (discounted cash flow), market and/or consideration of recent and similar purchase acquisition transactions. The Company performs its annual impairment review of goodwill on the first day of the fourth quarter and when a triggering event occurs between annual impairment tests.

Income Taxes

The Company follows ASC 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the asset will not be realized.

The standard addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company’s policy is to record estimated interest and penalty related to the underpayment of income taxes or unrecognized tax benefits as a component of its income tax provision. As of December 31, 2014 and December 31, 2013, the Company had recorded an indemnification asset with a corresponding liability in the amount of $1.5 million and $0, respectively, recorded as a liability for unrecognized tax uncertainties, included in other liability-long term in the consolidated balance sheets.

Patents

The Company expenses external costs, such as filing fees and associated attorney fees, incurred to obtain issued patents and patent applications pending. The Company also expenses costs associated with maintaining and defending patents subsequent to their issuance in the period incurred.

Derivative Instruments

The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then revalued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company calculates the fair value of the financial instruments using the Binomial Lattice options pricing model at inception and on each subsequent valuation date. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity is assessed at inception, the fair value of the warrants is evaluated at the end of each reporting period (see Note 6, Note 7 and Note 8).

Treasury Stock

The Company records treasury stock at the cost to acquire it and includes treasury stock as a component of stockholders’ equity.

Reclassifications

Certain reclassifications have been made to the prior year financial statements in order to conform to the current year’s presentation.

Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption.

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that will supersede all existing revenue recognition guidance under GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for annual and interim periods beginning on or after December 15, 2016, and early adoption is not permitted. Companies will have the option of using either a full retrospective approach or a modified approach to adopt the guidance in the ASU. The Company is currently evaluating the impact of adopting this guidance.

In August 2014, the FASB issued Accounting Standards Update ASU No. 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early application is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the Company’s consolidated financial statements or disclosures.

BUSINESS COMBINATION

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

BUSINESS COMBINATION

NOTE 5. BUSINESS COMBINATION

Manchester Pharmaceuticals LLC

On March 26, 2014 (the “Manchester Closing Date”), the Company acquired 100% of the outstanding membership interests of Manchester. Under the terms of the agreement, the Company paid $29.5 million upon consummation of the transaction, of which $3.2 million was paid by Retrophin Therapeutics International LLC, an indirect wholly owned subsidiary, for rights of product sales outside of the United States. Acquisition costs amounted to approximately $0.3 million and have been recorded as selling, general, and administrative expense in the accompanying consolidated financial statements. The Company entered into a promissory note with Manchester for $33 million which was discounted to $31.3 million to be paid in three equal installments of $11 million within three, six, and nine months after the Manchester Closing Date. On June 30, 2014, the Company paid the sellers of Manchester $33 million in full satisfaction of the outstanding amount owed.

In addition, the Company agreed to make contractual payments based on 10% of net sales of the products Chenodal® and Vecamyl to the former members of Manchester. Additional contingent payments will be made based on 5% of net sales from new products derived from Chenodal® and Vecamyl. Acquisition-related contingent consideration estimated at $12.8 million will be revalued at each reporting period and any change in valuation will be recorded in the Company’s statement of operations.

The acquisition was accounted for under the purchase method of accounting in accordance with ASC 805, with the excess purchase price over the fair market value of the assets acquired and liabilities assumed allocated to goodwill. Based on the purchase price allocation, the purchase price of $73.2 million has resulted in goodwill of $0.9 million and is primarily attributed to the synergies expected to arise after the acquisition. The $0.9 million of goodwill resulting from the acquisition is deductible for income tax purposes.

Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships and developed technology, present value and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

The purchase included $72 million of intangible assets with definite lives related to product rights, trade names, and customer relationships with values of $71.4 million, $0.2 million, and $0.4 million, respectively. The useful lives related to the acquired product rights, trade names, and customer relationships are expected to be approximately 16, 1 and 10 years, respectively. Under the terms of the agreement, the sellers agreed to indemnify the Company for uncertain tax liabilities, any breach of any representation or warranty the sellers made to the purchaser, failure of the sellers to perform any covenants or obligations made to the purchaser, and third party claims relating to the operation of the Company and events occurring prior to the Manchester Closing Date. As of December 31, 2014, the Company has recorded an indemnification asset with a corresponding liability in the amount of $1.5 million related to uncertain tax liabilities.

The purchase price allocation of $73.2 million as of the Manchester Closing Date was as follows:

	Amount (in thousands)
Cash paid upon consummation, net	$	29,150
Secured promissory note		31,283
Fair value of acquisition-related contingent consideration		12,800
Total purchase price	$	73,233

Prepaid expenses	$	116
Inventory		517
Product rights		71,372
Trade names		175
Customer relationship		403
Goodwill		936
Other asset		1,522
Accounts payable and accrued expenses		(286	)
Other liability		(1,522	)
Total allocation of purchase price consideration	$	73,233

Pro Forma Operating Results

The following table provides unaudited pro forma results of operations for the twelve months ended December 31, 2014 and 2013, as if the Manchester acquisition had occurred on January 1, 2013. The pro forma results of operations were prepared for comparative purposes only and do not purport to be indicative of what would have occurred had the acquisitions been made as of January 1, 2013 or of results that may occur in the future.

	Proforma (Unaudited)
	Twelve months ended December 31, (in thousands, except per share data)
	2014			2013
Net product sales	$	29,422		$	4,394
Net loss	$	(110,319	)	$	(30,367	)
Net loss per common share, basic	$	(4.40	)	$	(2.14	)

MARKETABLE SECURITIES AND SECURITIES SOLD, NOT YET PURCHASED

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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+ Details

MARKETABLE SECURITIES AND SECURITIES SOLD, NOT YET PURCHASED

12 Months Ended

Dec. 31, 2014

Marketable Securities [Abstract]

NOTE 6. MARKETABLE SECURITIES AND SECURITIES SOLD, NOT YET PURCHASED

Effective November 2014, the Company no longer executes short sales for its investments as such practices are prohibited under the Company’s investment policy. The Company measures marketable securities and securities sold, not yet purchased on a recurring basis. Generally, the types of securities the Company invests in are traded on a market such as the NASDAQ Global Market, which the Company considers to be Level 1 inputs.

Marketable securities at December 31, 2014 consisted of the following:

	Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value

Marketable securities available-for-sale	$	5,160,558	$	4,498,730	$	(103,190	)	$	9,556,098

Marketable securities and securities sold, not yet purchased at December 31, 2013 consisted of the following:

	Cost			Unrealized Gains		Unrealized Losses			Estimated Fair Value
Marketable securities available-for-sale	$	129,702		$	3,292	$	-		$	132,994
Securities sold, not yet purchased	$	(1,344,622	)	$	13,256	$	(126,535	)	$	(1,457,901	)

Investments, All Other Investments [Abstract]

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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+ Details

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2014

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS

The Company accounts for derivative financial instruments in accordance with ASC 815-40, “Derivative and Hedging – Contracts in Entity’s Own Equity” (“ASC 815-40”), instruments which do not have fixed settlement provisions are deemed to be derivative instruments. The Company’s warrants are classified as liability instruments due to an anti-dilution provision that provides for a reduction to the exercise price of the warrants if the Company issues additional equity or equity linked instruments in the future at an effective price per share less than the exercise price then in effect.

The warrants are re-measured at each balance sheet date based on estimated fair value. Changes in estimated fair value are recorded as non-cash valuation adjustments within other income (expenses) in the Company’s accompanying consolidated statements of operations. The Company recorded a loss on a change in the estimated fair value of warrants of $23.8 million and $10.1 million during the year ended December 31, 2014 and 2013, respectively.

The Company calculated the fair value of the warrants using the Binomial Lattice options pricing model at inception and on each subsequent valuation date. The assumptions used at December 31, 2014 and December 31, 2013 are as follows:

	As of
	December 31, 2014			December 31, 2013
Fair value of common stock	$	12.24		$	7.00
Expected life (in years), represents the weighted average period until next liquidity event		.33 years			4.12 – 4.62 years
Risk-free interest rate		1.13% – 1.69	%		1.39	%
Expected volatility		85	%		93 – 97	%
Dividend yield		0.00	%		0.00	%

Expected volatility is based on analysis of the Company’s volatility, as well as the volatilities of guideline companies. The risk free interest rate is based on the U.S. Treasury security rates for the remaining term of the warrants at the measurement date.

The following tables illustrates the Company’s derivative warrant issuances and balances outstanding as of, and during the years ended December 31, 2014 and 2013:

			Weighted Average
	Warrants		Exercise Price		Grant Date Fair Value
Outstanding at December 31, 2012		-	$	-	$	-
Issued		4,782,249		5.04		3.13
Canceled		-		-		-
Exercised		-		-		-
Outstanding at December 31, 2013		4,782,249	$	5.04	$	3.13
Issued		637,500		11.44		6.49
Canceled		-		-		-
Exercised		1,998,394		4.70		3.05
Outstanding at December 31, 2014		3,421,355	$	6.43	$	3.79

The following information applies to derivative warrants outstanding at December 31, 2014:

Exercise Price		Number of Warrants		Weighted Average Remaining Contractual Life (years)		Number Exercisable
$	3.60		837,965		3.12		837,965
$	6.00		1,945,890		3.62		1,945,890
$	12.76		337,500		4.50		337,500
$	9.96		300,000		4.87		300,000

The total intrinsic value of derivative warrants outstanding and exercisable as of December 31, 2014 is $20.1 million. The Company’s closing stock price was $12.24 on December 31, 2014.

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 8. FAIR VALUE MEASUREMENTS

Financial Instruments and Fair Value

The Company accounts for financial instruments in accordance with ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 – Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

In estimating the fair value of the Company’s marketable securities available-for-sale and securities sold, not yet purchased, the Company used quoted prices in active markets.

In estimating the fair value of the Company’s derivative liabilities, the Company used the Binomial Lattice options pricing model at inception and on each subsequent valuation date. Based on the fair value hierarchy, the Company classified the derivative liability within Level 3.

In estimating the fair value of the Company’s contingent consideration, the Company used the comparable uncontrolled transaction (“CUT”) method for royalty payments based on projected revenues. Based on the fair value hierarchy, the Company classified contingent consideration within Level 3 because valuation inputs are based on projected revenues discounted to a present value.

Financial instruments with carrying values approximating fair value include cash, accounts receivable, deposits on license agreements, and accounts payable, convertible notes payable and credit facility. Factors that we considered when estimating the fair value of our debt include market conditions, prepayment and make-whole provisions, variability in pricing from multiple lenders and term of debt.

The following table presents the Company’s asset and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of December 31, 2014:

	As of December 31, 2014		Fair Value Hierarchy at December 31, 2014
	Total carrying and estimated fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset:
Marketable securities, available-for-sale	$	9,556,098	$	9,556,098	$	-	$	-

Liabilities:
Derivative liability related to warrants	$	27,990,000	$	-	$	-	$	27,990,000
Acquisition-related contingent consideration	$	11,637,227	$	-	$	-	$	11,637,227

	As of December 31, 2013		Fair Value Hierarchy at December 31, 2013
	Total carrying and estimated fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset:
Marketable securities, available-for-sale	$	132,994	$	132,994	$	-	$	-

Liabilities:
Derivative liability related to warrants	$	25,037,346	$	-	$	-	$	25,037,346
Securities sold, not yet purchased	$	1,457,901	$	1,457,901	$	-	$	-

The following table sets forth a summary of changes in the estimated fair value of the Company’s Level 3 liability for the period from January 1, 2013 through December 31, 2013:

	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2013	$	-

Issuance of common stock warrants:
February 14, 2013		5,407,372
August 14, 2013		328,561
August 15, 2013		9,201,487
Total value upon issuance		14,937,420
Change in fair value of common stock warrant liability		10,099,926
Balance at December 31, 2013	$	25,037,346

The following table sets forth a summary of changes in the estimated fair value of the Company’s derivative financial instruments, warrants liability for the period from January 1, 2014 through December 31, 2014:

	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at December 31, 2013	$	25,037,346
Issuance of common stock warrants		2,531,250
Reclassification of derivative liability to equity upon exercise of warrants		(23,364,668	)
Change in estimated fair value of liability classified warrants		23,786,072
Balance at December 31, 2014	$	27,990,000

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At each reporting period, the Company performs a detailed analysis of the assets and liabilities that are subject to ASC 820.

The following table sets forth a summary of changes in the estimated acquisition-related contingent consideration for the period from January 1, 2014 through December 31, 2014:

	Fair Value Measurements of Acquisition-Related Contingent Consideration
Balance at January 1, 2014	$	-
Present value of contractual payments, contingent consideration upon acquisition		12,800,000
Contractual Payments		(1,162,773	)
Balance at December 31, 2014	$	11,637,227

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.

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2014

INTANGIBLE ASSETS

NOTE 9. INTANGIBLE ASSETS

Amortizable intangible assets

Ligand License Agreement

In fiscal 2013, the Company entered into an agreement with Ligand Pharmaceuticals Incorporated for a worldwide sublicense for $2.5 million to develop, manufacture and commercialize a drug technology compounds including RE-01 or sparsentan (the “Ligand License Agreement”). The cost of the Ligand License Agreement, which is presented net of amortization in the accompanying consolidated balance sheets in intangible assets, net, is being amortized to research and development on a straight-line basis through September 30, 2023. As consideration for the license, we are required to make substantial payments payable upon the achievement of certain milestones totaling up to $105.5 million. Should we commercialize sparsentan or any products containing related compounds, we will be obligated to pay to Ligand an escalating annual royalty between 15% and 17% of net sales of all such products.

Syntocinon License Agreement

On December 12, 2013, the Company entered into an agreement with Novartis Pharma AG and Novartis AG pursuant to which Novartis Pharma AG and Novartis AG agreed to grant the Company an exclusive, perpetual, and royalty-bearing license for the manufacture, development and commercialization of Syntocinon and related intranasal products in the United States (the “Syntocinon License Agreement”). Under the Syntocinon License Agreement, Novartis Pharma AG and Novartis AG are obligated to transfer to the Company certain information that is necessary for or related to the development or commercialization of Syntocinon. As consideration for the Syntocinon License Agreement, the Company paid to Novartis Pharma AG and Novartis AG and capitalized a $5.0 million upfront fee. The intellectual property underlying the Syntocinon License Agreement is held in perpetuity. The Company has examined the Syntocinon License Agreement and has capitalized the license fee in accordance with ASC 350 due to future alternative uses such as re-licensing of the technology to other third parties, the sale of the licensed technology to other life science companies, and the potential development of various ingestible drug products using the licensed technologies.

During the second quarter ended June 30, 2014, certain key underlying assumptions regarding the estimated useful life of the Syntocinon License Agreement changed resulting in the Company changing the estimated useful life from indefinite-lived to definite lived, starting in the second quarter of 2014. Such changes relate to the regulatory requirements needed to re-introduce the product for the treatment of lactation deficiency. Management determined the development program approximates seven to eight years and the use patent exclusivity and/or commercial viability period upon approval will be eleven to twelve years. Management assigned a life of twenty (20) years to the asset and is being amortized to research and development on a straight-line basis through December 2033.

Turing Pharmaceuticals will also assume certain liabilities related to the Syntocinon assets, including the balance of the payments due under the Syntocinon License Agreement (see Note 16).

Kyalin - Carbetocin Technology Purchase

On December 23, 2013, the Company entered into a $3.0 million stock purchase agreement with Kyalin to acquire substantially all of Kyalin’s assets which Include patents, patent applications, contracts and data related to the intranasal formulation of the compound Carbetocin (collectively, the “Carbetocin Assets”). Carbetocin, similar to oxytocin, has potential utility for the treatment of milk let-down in post pregnant women, inducing contractions during labor, postpartum hemorrhage, as well as for schizophrenia.

During the second quarter ended June 30, 2014, certain underlying assumptions regarding the estimated useful life of the Carbetocin Assets changed resulting in the Company changing the estimated useful life from indefinite-lived to definite lived, starting in the second quarter of fiscal 2014. Such changes relate to the regulatory requirements needed to develop the Carbetocin Assets, as well as the departure of key personnel responsible for the development of the Carbetocin Assets. Management determined the development program approximates five to seven years and commercial viability will be five to seven years. Management assigned a life of ten (10) years to the assets and is being amortized to research and development on a straight-line basis through December 2023. The Company has $1.0 million in accrued expenses remaining related to the Kyalin Agreement as of December 31, 2014.

Manchester Pharmaceuticals LLC

Upon the completion of the Company’s acquisition of Manchester on March 26, 2014, the Company acquired intangible assets with definite lives related to product rights, trade names, and customer relationships with the values of $71.4 million, $0.2 million, and $0.4 million, respectively. The useful lives related to the acquired product rights, trade names, and customer relationships are expected to be approximately 16, 1 and, 10 years, respectively. Amortization of product rights, amortization of trade names and customer relationships are being recorded in selling, general and administrative expense over their respective lives.

Thiola® License Agreement

Upon execution of the agreement, the Company paid Mission an up-front license fee of $3.0 million. In addition, the Company shall pay guaranteed minimum royalties during each calendar year the greater of $2.0 million or twenty percent (20%) of the Company’s net sales of Thiola® through June 30, 2024. As of December 31, 2014, the present value of guaranteed minimum royalties payable is $11.6 million using a discount rate of approximately 11% based on the Company’s borrowing rate. As of December 31, 2014, the guaranteed minimum royalties’ current and long term liability is approximately $0.7 million and $10.9 million, respectively, and is recorded as other liability in the consolidated balance sheets. Since for GAAP purposes the Thiola® License Agreement was accounted for as an asset acquisition, the Company capitalized $15.0 million related to the Thiola® asset which consists of the up-front license fee, professional fees, the present value of the guaranteed minimum royalties and payments in excess of guaranteed minimum royalties.

As of December 31, 2014, the net book value of amortizable intangible assets was approximately $94.3 million. Amortization expense recorded as research and development expenses amounted to $1.1 million for the twelve months ended December 31, 2014 and $0 for the twelve months ended December 31, 2013. Amortization expense recorded as general and administrative amounted to $4.5 million for the twelve months ended December 31, 2014 and $0.3 million for the twelve months ended December 31, 2013.

Amortizable intangible assets as of December 31, 2014 and December 31, 2013 consisted of the following:

	December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Product Rights	$	71,372,000	$	(3,419,603	)	$	67,952,397
Thiola® License		15,049,648		(870,607	)		14,179,041
Syntocinon License*		5,000,000		(190,437	)		4,809,563
Carbetocin Assets*		5,567,736		(429,493	)		5,138,243
Ligand License		2,300,000		(526,578	)		1,773,422
Customer Relationships		403,000		(30,890	)		372,110
Trade Name		175,000		(134,246	)		40,754
Total	$	99,867,384	$	(5,601,854	)	$	94,265,530

* The Company commenced amortization in the second quarter of fiscal 2014 due to a change in estimate.

	December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Ligand License	$	2,349,775	$	(323,980	)	$	2,025,795
Indefinite-lived intangibles		10,560,355		-			10,560,355
Total	$	12,910,130	$	(323,980	)	$	12,586,150

As of December 31, 2014, amortization expense for the next five years is expected to be as follows:

2015		7,059,019
2016		7,037,493
2017		7,018,265
2018		7,018,265
2019		7,018,265
Total	$	35,151,307

As of December 31, 2014 the remaining weighed average period of amortization is 14.01 years.

ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2014

Payables and Accruals [Abstract]

ACCRUED EXPENSES

NOTE 10. ACCRUED EXPENSES

Accrued expenses consist of the following at December 31, 2014 and 2013:

	December 31,		December 31,
	2014		2013
Compensation related costs	$	8,163,076	$	1,144,983
Severance related costs		5,709,602		-
Research and development		3,719,556		1,035,875
Business development		-		300,000
License fee		3,000,000		150,000
Accounting and legal fees		1,208,097		75,000
Interest		2,318,228		-
Medicaid		1,353,473		-
Selling, general and administrative		2,410,963		1,428,837
Offering costs		-		746,739
	$	27,882,995	$	4,881,434

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2014

RELATED PARTY TRANSACTIONS

NOTE 11.

RELATED PARTY TRANSACTIONS

In August 2012, the Company paid a security deposit on behalf of an affiliate of $137,547 in connection with a building lease entered into by such affiliate. The Company assumed the lease from its affiliate in April 2013, whereby the security deposit was assigned to the Company.

During the year 2012, the Company paid an aggregate amount of $563,380 in legal fees on behalf of the same affiliate. The affiliate is currently in the process of dissolving and the Company does not expect to collect the amount outstanding. As a result, the Company has written-off $563,380 to bad debt expense in 2012. Such charge is included in selling general and administrative expense in the statement of operations.

In the second quarter of 2013, the Company, its Chief Executive Officer and a related party, which is a former investor in the Company that was previously managed by the Company’s Chief Executive Officer, became party to a series of agreements to settle up to $2,284,511 of liabilities, which Company management believes are the primary obligation of the related party. The Company and the related party have entered into indemnification agreements whereby the related party has agreed to defend and hold the Company harmless against all such obligations and amounts, whether paid or unpaid, arising from these agreements. Notwithstanding the indemnification, the Company recorded a $2,284,511 charge to operations for the year ended December 31, 2013 for the (a) $2,203,711 of cash consideration, and (b) 11,000 shares of common stock valued at $80,800 of non-cash consideration. The $2,284,511 is entirely paid as of the date of this filing. In addition, the Chief Executive Officer also agreed to provide one of the counter parties with 47,128 shares of his common stock in the Company as a separate component of one of these settlement agreements. Accordingly, the Company does not believe it is required to record a liability for the shared-based component of this specific agreement. There is uncertainty as to whether the related party will have sufficient liquidity to repay the Company or fund the indemnification agreements should it become necessary.

Concurrent with the execution of such settlement agreements, the Company and the related party entered into promissory notes whereby the related party agreed to pay the Company the principal amount of $2,284,511 plus interest at an annualized rate of 5% as reimbursement of payments that the Company made to settle a portion of the agreements.

On October 13, 2014, the Company entered into a binding Summary Separation Proposal with Martin Shkreli, its then-current Chief Executive Officer. Among other things, the Summary Separation Proposal set forth a summary of the terms for the sale of the Company’s Vecamyl, Syntocinon and ketamine licenses and assets to Turing Pharmaceuticals, a company controlled by Shkreli.

On January 9, 2015, the Company entered into the purchase agreement with Turing Pharmaceuticals pursuant to which the Company sold Turing Pharmaceuticals the Sold Assets for a purchase price of $1.0 million, and pursuant to which Turing Pharmaceuticals also assumed all future liabilities related to the Sold Assets.

On February 13, 2015, the Sellers entered into a purchase agreement with Waldun, pursuant to which the Sellers sold Waldun the Vecamyl Product Rights for a purchase price of $0.7 million. Waldun in turn sold the Vecamyl Product Rights to Turing Pharmaceuticals. In connection therewith, on February 13, 2015, the Company, together with Manchester, entered into an asset purchase agreement with Turing Pharmaceuticals, pursuant to which the Company sold Turing Pharmaceuticals the Inventory for a purchase price of $0.3 million, and pursuant to which Turing Pharmaceuticals also assumed certain liabilities related to the Vecamyl Product Rights and the Inventory.

On February 13, 2015, the Company entered into an asset purchase agreement with Turing Pharmaceuticals pursuant to which the Company sold Turing Pharmaceuticals its Oxytocin Assets, including related inventory, for a purchase price of $1.1 million, and pursuant to which Turing Pharmaceuticals also assumed certain liabilities related to the Oxytocin Assets.

In September 2014, the Company’s board of directors requested that it’s outside legal counsel conduct an investigation (the “Investigation”) into matters involving Mr. Shkreli during his tenure as its Chief Executive Officer. In January 2015, the Company’s board of directors appointed an Oversight Committee of the board of directors (the “Oversight Committee”), consisting of Gary Lyons and Jeffrey Meckler, each of whom was not a member of the Company’s board of directors during the period of time covered by the Investigation. To date, the Oversight Committee has concluded that various transactions occurred during 2013 and 2014 involving the Company and individuals or entities that had been investors in investment funds previously managed by Mr. Shkreli, or that otherwise had financial dealings with Mr. Shkreli. The details of the Oversight Committee’s findings and the transactions involving Mr. Shkreli are set forth more fully in Note 2 “Restatement of Previously Issued Consolidated Financial Statements”, and such disclosures are hereby incorporated by reference into this Note 11.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

Commitments and Contingencies Disclosure [Abstract]

NOTES PAYABLE

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

NOTES PAYABLE

NOTE 12.

NOTES PAYABLE

On February 1, 2012, the Company entered into a secured promissory note with a related party in the amount of $900,000, with an interest rate of 12% per annum, compounded monthly. The note plus accrued unpaid interest was originally due i) on or prior to December 31, 2012 or ii) upon consummation of a Sale of the Company to acquire (a) a majority of the outstanding equity securities, or (b) all or substantially all of the Company's assets on a consolidated basis. On March 5, 2012, an aggregate payment of $25,000 was made by the Company, of which $9,764 was applied to accrued interest and the remaining balance of $15,236 was applied to the principal balance. The remaining principal balance of this note amounts to $884,764 as of December 31, 2012, was repaid during the quarter ended March 31, 2013 (See Note 2).

Note Payable - employee

On September 30 2012, the Company received an advance of $30,000 from a related party in the form of a promissory note, with an interest rate of 15% per annum, compounded monthly. On December 3, 2012, the Company repaid $30,000 plus any unpaid interest.

Note Payable – Manchester Pharmaceuticals, LLC

On March 26, 2014, upon the acquisition of Manchester, the Company entered into a note payable in the amount of $33 million. The note is non-interest bearing and therefore the Company recorded the loan at present value of $31.3 million using the effective interest rate of approximately 11%, which was the Company’s current borrowing rate. The note was due and payable in three consecutive payments, each in the amount of $11 million payable on June 26, 2014, September 26, 2014, and December 12, 2014 (the maturity date). On June 30, 2014, the Company paid off the note in its entirety. The Company accelerated interest expense in the amount of $1.7 million for the difference between the present value of the loan and the loan balance paid has been recorded in interest income (expense), net for the year ended December 31, 2014.

Convertible Notes Payable

On May 29, 2014, the Company entered into the Note Purchase Agreement relating to a private placement by the Company of $46 million aggregate principal senior convertible notes due 2019 (the “Notes”) which are convertible into shares of the Company’s common stock at an initial conversion price of $17.41 per share. The conversion price is subject to customary anti-dilution protection. The Notes bear interest at a rate of 4.5% per annum, payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2014. The Notes mature on May 30, 2019 unless earlier converted or repurchased in accordance with the terms. The aggregate carrying value of the Notes on their issuance was $43 million, which was net of the $3 million debt discount.

On June 30, 2014, the Company issued 401,047 shares of Common Stock to the holders of the Note and such Noteholders granted the Company a release of certain claims they may have had in connection with the Company's sale of the Notes or certain statements made by the Company in connection with such sale. The Company recorded finance expense as other expense in the amount of $4.7 million for the year ended December 31, 2014 based on the fair market value of the stock on the date of issuance in relation to the shares issued.

Credit Facility

On June 30, 2014, the Company entered into the $45 million Credit Facility (“Credit Facility”) which matures on June 30, 2018 and bears interest at an annual rate of (i) the Adjusted LIBOR Rate (as such term is defined in the Credit Facility) plus 10.00% or (ii) in certain circumstances, the Base Rate (as such term is defined in the Credit Facility) plus 9.00% and is payable quarterly. For 2014, the rate was approximately 11%. The Credit Facility contains certain covenants, including those limiting the Company's and its subsidiaries' abilities to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the Credit Facility requires the Company and its subsidiaries to meet certain financial quarterly requirements. Failure by the Company or its subsidiaries to comply with any of these covenants or financial tests could result in the acceleration of the loans under the Credit Facility. The Company was in compliance with all of its debt covenants as of December 31, 2014. The Company has classified the balance of $40.5 million in current liabilities as of December 31, 2014 since the Company does not expect to be in compliance with certain of the debt covenants related to cash and marketable securities within the next 12 months.

In the event of a default the Credit Facility, the holders of the indebtedness thereunder generally would be able to declare all of the indebtedness under such term loan, together with accrued interest, to be due and payable. In addition, borrowings under our Credit Facility are secured by substantially all of our and our domestic subsidiaries’ assets, subject to certain limited exceptions and, in the event of a default under that facility, the lenders thereunder generally would be entitled to seize the collateral, including assets which are necessary to operate our business.

If an event of default under the Notes occurs, the principal amount of the Notes, plus accrued and unpaid interest (including additional interest, if any) may be declared immediately due and payable, subject to certain conditions set forth in the indenture governing such notes. Events of default include, but are not limited to:

•

failure to pay (for more than 30 days) interest when due;

•

failure to pay principal when due;

•

failure to deliver shares of Common Stock upon conversion of a Note;

•

failure to provide notice of a fundamental change;

•

acceleration on other indebtedness of the Company in excess of $10 million (other than indebtedness that is non-recourse to the Company); or

•

certain types of bankruptcy or insolvency involving the Company.

Accordingly, the occurrence of a default under our Credit Facility or the Notes, unless cured or waived, may have a material adverse effect on our results of operations.

The aggregate carrying value of the convertible notes on their issuance was $39.8 million, which was net of the $5.2 million debt discount. The debt discount is being amortized to interest expense over the term of the notes under the effective interest method.

In connection with the execution of the Credit Facility, the Company issued warrants (the “Warrants”) to the lenders under the Credit Facility, initially exercisable to purchase up to an aggregate of 337,500 shares of common stock of the Company. The Warrants will be exercisable in whole or in part, at an initial exercise price per share of $12.76 per share, which is subject to weighted-average anti-dilution protections. The Warrants may be exercised at any time upon the election of the holder, beginning on the date of issuance and ending on the fifth anniversary of the date of issuance. The issuance of the Warrants was not registered under the Securities Act of 1933, as amended (the “Securities Act”), as such issuance was exempt from registration under Section 4(2) of the Securities Act.

The total grant date fair value of the Warrants was $2.5 million and was recorded as a derivative liability and is included in the debt discount to the Note Payable in the condensed consolidated balance sheets. The Company calculated the fair value of the warrants using the Binomial Lattice pricing model using the following assumptions as of the grant date of the Warrants:

The Company calculated the fair value of the warrants using the Binomial Lattice pricing model using the following assumptions as of the grant date of the Warrants:

Risk free rate		1.62	%
Expected volatility		85	%
Expected life (in years), represents the weighted average period until next liquidity event		0.36
Expected dividend yield		-
Exercise Price	$	12.76

On July 16, 2014, the Company entered into Amendment No. 1 to the Credit Facility which permitted the Company to make an investment in Clinuvel Pharmaceuticals Limited (“Clinuvel”) in an aggregate amount outstanding not to exceed $10 million.

2015 were amended. As compensation for Amendment No. 2, the Company agreed to issue additional warrants to the lenders, initially exercisable to purchase an aggregate of 300,000 shares of common stock of the Company which were valued at $2.2 million as of November 13, 2014 and is recorded in change in fair value of derivative instruments in the consolidated statements of operations.

On January 12, 2015, the Company entered into Amendment No. 3 (“Amendment No. 3”) to the Credit Facility in which the Company obtained a commitment letter from Athyrium Capital Management, LLC and Perceptive Credit Opportunities Fund, LP (collectively, the “ Lenders”), the Company’s existing lenders, providing a commitment for a senior secured incremental term loan under the Company’s existing term loan facility in an aggregate principal amount of $30 million, which can be drawn down at the Company’s option to finance the acquisition of the assets of Asklepion Pharmaceuticals, LLC (see Note 18). The Company’s ability to draw down the Incremental Loan in the future is subject to various conditions and the negotiation and execution of a binding definitive amendment to the Company’s existing term loan agreement for the Incremental Loan, and there can be no assurances that this will happen.

As consideration for the commitment letter for the Incremental Loan, the Company made a cash payment to the Lenders and issued the Lenders warrants initially exercisable to purchase up to an aggregate of 125,000 shares of the Company’s common stock. In the event that the Company draws down the Incremental Loan in the future, the Company will be required to make a second cash payment to the Lenders and will issue the Lenders additional warrants initially exercisable to purchase up to an aggregate of 125,000 shares of the Company’s common stock. Such compensation will be recorded as a charge to operations in the first quarter of fiscal 2015.

Total interest expense recognized for the years ended December 31, 2014 and 2013 aggregated to $7.4 million and $46,344, respectively. Year ended December 31, 2013 interest expense pertains to related parties.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2014

COMMITMENTS AND CONTINGENCIES

NOTE 13.

COMMITMENTS AND CONTINGENCIES

Leases and Sublease Agreements

On October 1, 2013, the Company entered into building lease for office space located at One Kendall Square in Cambridge, Massachusetts under which the Company is responsible for rent of approximately $216,000 annually plus rent escalations, common area maintenance, insurance, and real estate taxes through September 2016. In August 2014, Retrophin ceased use of this facility and all employees formerly located at this facility moved into the new facility on Binney St, Cambridge Massachusetts. Discussions with the landlord regarding a lease termination fee for the One Kendall Sq. facility commenced in October 2014, however no formal agreement was executed prior to December 31, 2014. As a result of the exiting of this lease, the Company recorded a loss of $248,417 for the year ended December 31, 2014.

On October 8, 2013, the Company entered into an amended lease agreement for additional office space at its offices in New York, New York and is responsible for additional rent of approximately $225,000 annually plus rent escalations through August 2016.

On February 28, 2014, the Company amended its lease agreement for its offices located in Carlsbad, California. The Company increased its Carlsbad office space for approximately $110,000 of additional annual base rent plus rent escalations, common area maintenance, insurance, and real estate taxes under a lease agreement expiring on June 30, 2017. In October 2014, Retrophin ceased use of this facility, CA, and all employees formerly located at that facility moved into the new headquarters facility in San Diego California. Additionally, the Company entered into a listing agreement with a broker to market the Carlsbad space for a sublease. As a result of the exiting of this lease, the Company recorded a loss of $170,811 for the year ended December 31, 2014.

On April 10, 2014, the Company entered into an amended lease agreement at its offices in New York, New York for the 28^th floor and is responsible for additional rent of approximately $537,264 annually plus rent escalations through April 2015.

On July 31, 2014, the Company entered into a sublease agreement for new office space located in Cambridge, Massachusetts. The Company increased its office space for approximately $800,000 of additional rent per annum. The sublease expires on December 31, 2016.

On September 8, 2014, the Company entered into a lease agreement for its corporate headquarters located in San Diego, California. The Company rents its office space for approximately $540,000 per annum. The lease started on October 1, 2014 and expires on December 31, 2017.

2012 and 2013 Consulting Agreements (See Note 2)

On August 15, 2011, the Company entered into an agreement with a consultant to serve as a senior advisor of strategy. The agreement’s initial term is for one year and automatically renews on an annual basis. Pursuant to this agreement the compensation to the consultant is comprised of (a) a fee of $37,500 per calendar quarter, payable commencing September 30, 2011, and (b) 25,000 shares of the Company common stock with an estimated fair value of $100,000, which vests over twelve (12) quarters so long as the agreement remains in effect. For the years ended December 31, 2013 and 2012, for the period from March 11, 2011 (inception) through December 31, 2013, the Company recognized professional fees related to this agreement in the amounts of approximately $153,000, $150,000, and $378,500, respectively, of which amounts comprised of fee payable of $0, $155,000 and $0 at December 31, 2013 and 2012 and for the period from March 11 ,2011 (inception) through December 31, 2013, respectively.

On November 1, 2011, the Company granted to the same above consultant an additional 120,000 shares of common stock with an estimate fair value of $480,000, which vest in over twelve (12) calendar quarters commencing December 31, 2011. For the years ended December 31, 2013 and 2012, and for the period from March 11, 2011 (inception) through December 31, 2013, the Company recognized professional fees related to this share based compensation of $195,000, $210,000, and $445,000, respectively.

On October 26, 2013 and December 1, 2013, the Company amended the above consulting agreements to issue the consultant 200,000 additional shares of the Company common stock to the consultant that payable as follows: (i) 100,000 shares on December 31, 2013, (ii) 50,000 shares on March 30, 2014, (iii) 50,000 shares on June 30, 2014. In addition, the consultant amended the fee and shall receive $26,666 per month. The agreement expires on October 25, 2013, and shall automatically extend for one year unless notice of non-extension is given. For the year ended December 31, 2013 and for the period from March 11, 2011 (inception) through December 31, 2013, the Company recognized professional expense related to this agreement in the amount of approximately $780,000.

On August 25, 2011 and November 1, 2011, the Company entered into two agreements with a consultant to serve as chief scientific officer of the Company. The agreements’ initial terms were for one year and automatically renewed on an annual basis. Pursuant to the agreements the compensation to the consultant was comprised of (a) a fee of $50,000 per calendar quarter, and (b) 145,000 incentive shares with an estimated fair value of $580,000, which vested over twelve (12) quarters so long as the agreements remained in effect. For the years ended December 31, 2013 and 2012, and for the period from March 11, 2011 (inception) through December 31, 2013, the Company recognized professional expense related to these agreements in amounts of $225,000, $200,000, and 525,000, respectively. These agreements terminated on December 31, 2012. The Company recorded professional expense for the year ended December 31, 2013 for 34,575 vested shares in 2013 that were issued upon execution of the agreements.

On February 15, 2013, the Company entered into an agreement with a consultant to provide certain advisory services. The Company granted 12,500 shares of common stock with an estimated value of $52,500. For the years ended December 31, 2013 and 2012, and for the period from March 11, 2011 (inception) through December 31, 2013, the Company recognized professional expense related to these agreements in amounts of $52,500, $0, and $52,500, respectively

On November 8, 2013, the Company entered into an agreement with a consultant to serve as an advisor to the Company. The Company shall pay the consultant $15,000 per quarter and expires in six months from the date entered into.

On December 31, 2013, the Company entered into an agreement with a consultant to serve as an advisor to the Company. The Company granted 15,000 shares of common stock issued and paid upon the date of execution. During the term of the agreement, the Company shall pay the consultant $50,000 per month. The agreement expires on April 30, 2014. For the years ended December 31, 2013 and 2012, and for the period from March 11, 2011 (inception) through December 31, 2013, the Company recognized professional expense related to these agreements in amounts of $105,000, $0, and $105,000, respectively.

Research Collaboration and Licensing Agreements

As part of the Company's research and development efforts, the Company enters into research collaboration and licensing agreements with unrelated companies, scientific collaborators, universities, and consultants. These agreements contain varying terms and provisions which include fees and milestones to be paid by the Company, services to be provided, and ownership rights to certain proprietary technology developed under the agreements. Some of these agreements contain provisions which require the Company to pay royalties, in the event the Company sells or licenses any proprietary products developed under the respective agreements.

In 2014 the Company terminated various sponsored research agreements. The expenses incurred in 2013 associated with these agreements are $1.0 million.

Contractual Commitments

The following table summarizes our principal contractual commitments, excluding open orders that support normal operations, as of December 31, 2014:

Year Ending December 31,	Operating Leases		Other		Total
2015	$	1,451,043	$	436,980	$	1,888,023
2016		1,121,584		436,980		1,558,564
2017		-		436,980		436,980
2018		-		436,980		436,980
2019		-		286,980		286,980
Thereafter		-		1,147,920		1,147,920
Total	$	2,572,627	$	3,182,820	$	5,755,447

Legal Proceedings

On March 28, 2013, Chun Yi Huang (“Huang”) sued the Company, MSMB Group, MSMB Capital Management, LLC, Retrophin Pharmaceutical, Inc., Marek Biestek, and Martin Shkreli in state court in New York (Huang v. MSMB Group, Index No. 152829-2013). Huang claims that he is owed past due salary and benefits totaling $36,387. The Company answered the complaint in April 2013, and the parties have since been engaged in discovery. In June 2014, Huang’s counsel filed a motion seeking to be relieved as counsel for Huang. The Court denied that motion in October 2014. In September 2014, Huang noticed an appeal of a discovery order, which is still pending.

On June 13, 2014, Charles Schwab & Co., Inc. (“Schwab”) sued the Company, Standard Registrar and Transfer Company (“Standard”), Jackson Su (“Su”), and Huang in federal court in the Southern District of New York (Charles Schwab & Co. v. Retrophin, Inc., Case No. 14-cv-4294). The complaint alleges that the defendants misled Schwab in connection with its sale of Company stock owned by Su and Huang. Schwab contends that Su and Huang improperly advised it that their Company stock was not restricted. Schwab’s claim against the Company is based on an agency theory. Schwab contends that it has incurred in excess of $2.5 million in damages as a result of the alleged misinformation. Su and Huang have asserted cross-claims against the Company and Standard for alleged negligent misrepresentation premised upon an alleged failure to inform them of restrictions on the sale of their Company stock. Su and Huang have also impleaded Katten Muchin Rosenman LLP as a third-party defendant. The Company has filed motions to dismiss Schwab’s claims, as well as Su’s and Huang’s cross claims. Those motions are fully briefed, but have not yet been decided by the court.

On September 19, 2014, a purported shareholder of the Company sued Mr. Shkreli in federal court in the Southern District of New York (Donoghue v. Retrophin, Inc., Case No. 14-cv-7640). The Company is a nominal defendant in this action. The plaintiff seeks, on behalf of the Company, disgorgement of short-swing profits from Mr. Shkreli under section 16(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78(p)(b)). The complaint alleges that, based on trades in the Company’s stock between November 2013 and November 2014, Mr. Shkreli realized short-swing profits in excess of $1.75 million, which belong to the Company. In December 2014, Mr. Shkreli filed an answer to the operative complaint, in which he, among other things, admitted to owing the Company over $0.6 million in short-swing profits. The parties are currently engaged in discovery. The Company will record the money to be received from this claim at such time in the future should cash be received by the Company from Shkreli.

On October 20, 2014, a purported shareholder of the Company filed a putative class action complaint in federal court in the Southern District of New York against the Company, Mr. Shkreli, Marc Panoff, and Jeffrey Paley (Kazanchyan v. Retrophin, Inc., Case No. 14-cv-8376). On December 16, 2014, a second, related complaint was filed in the Southern District of New York against the same defendants (Sandler v. Retrophin, Inc., Case No. 14-cv-9915). The complaints assert violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in connection with defendants’ public disclosures during the period from November 13, 2013 through September 30, 2014. In December 2014, plaintiff Kazanchyan filed a motion to appoint lead plaintiff, to approve lead counsel, and to consolidate the two related actions. On February 10, 2015, the Court consolidated the two actions, appointed lead plaintiff, and approved lead counsel. Lead plaintiff’s filed a consolidated amended complaint on March 4, 2015. An initial pretrial conference is currently scheduled for April 23, 2015.

On January 7, 2014, the Company sued Questcor Pharmaceuticals, Inc. (“Questcor”) in federal court in the Central District of California (Retrophin, Inc. v. Questcor Pharmaceuticals, Inc., Case No. SACV14-00026-JLS). The Company contends that Questcor violated antitrust laws in connection with its acquisition of rights to the drug Synacthen, and seeks injunctive relief and damages. The Company has asserted claims under sections 1 and 2 of the Sherman Act, section 7 of the Clayton Act, California antitrust laws, and California’s unfair competition law. In August 2014, the Court denied Questcor’s motion to dismiss. The parties are now engaged in discovery. A trial is currently set for November 2015.

In January 2015, the Company received a subpoena relating to a criminal investigation by the U.S. Attorney for the Eastern District of New York. The subpoena requests information regarding, among other things, the Company’s relationship with Mr. Shkreli and individuals or entities that had been investors in investment funds previously managed by Mr. Shkreli. The Company has been informed that it is not a target of the U.S. Attorney’s investigation, and intends to cooperate with the investigation.

As of December 31, 2014 no accruals for loss contingencies have been recorded since these cases are neither probable nor reasonably estimable. From time to time the Company is involved in legal proceedings arising in the ordinary course of business. The Company believes there is no other litigation pending that could have, individually or in the aggregate, a material adverse effect on its results of operations or financial condition.

STOCKHOLDERS' DEFICIT

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

STOCKHOLDERS' DEFICIT

NOTE 14. STOCKHOLDERS’ DEFICIT

Common Stock

The Company is currently authorized to issue up to 100,000,000 shares of $0.0001 par value common stock. All issued shares of common stock are entitled to vote on a 1 share/1 vote basis.

Preferred Stock

The Company is currently authorized to issue up to 20,000,000 shares of $0.001 preferred stock, of which 1,000 shares are designated Class "A" Preferred shares, $0.001 par value. Class A Preferred Shares are not entitled to interest, have certain liquidation preferences, special voting rights and other provisions. No Preferred Shares have been issued to date.

Private Placement Offerings - 2013

In January 2013, the Company sold an aggregate of 272,221 share of common stock, at a purchase price of $3.00 per share in certain private placement transactions, for an aggregate purchase price of $816,664 in cash. The issuance of such shares of common stock was not registered under the Securities Act as such issuance was exempt from registration under Section 4(2) of the Securities Act and Regulation D promulgated thereunder.

On January 4, 2013, the Company entered into an agreement with Roth Capital Partners to act as its exclusive placement agent in connection with the February Private Placement. In connection with the agreement, the Company paid cash fees in the amount of $624,033 and issued warrants to purchase up to an aggregate of 319,823 shares of common stock with an exercise price of $3.60 per such share underlying any warrant. The warrants are deemed to be derivative instruments due to a ratchet provision that adjusts the exercise price if the Company issues additional equity instruments in the future at an effective price per share less than the exercise price then in effect. Upon issuance of the warrants, the Company recorded a liability of $0.9 million to derivative financial instruments in its balance sheet. The issuance of such shares of common stock was not registered under the Securities Act as such issuance was exempt from registration under Section 4(2) of the Securities Act and Regulation D promulgated thereunder.

On February 14, 2013, the Company closed a private placement (the “February Private Placement”) of 3,045,929 shares of common stock, at a purchase price of $3.00 per share, or $9.1 million in the aggregate, and warrants (the “Warrants”) to purchase up to an aggregate of 1,597,969 shares of common stock with an exercise price of $3.60 per such share underlying any Warrant. The Warrants are deemed to be derivative instruments due to a ratchet provision that adjusts the exercise price if the Company issues additional equity instruments in the future at an effective price per share less than the exercise price then in effect. Upon issuance of the warrants, the Company recorded a liability of $4.5 million to derivative financial instruments in its balance sheet. The issuance of such shares of common stock was not registered under the Securities Act as such issuance was exempt from registration under Section 4(2) of the Securities Act and Regulation D promulgated thereunder.

On August 15, 2013, the Company closed a private placement and sold 5,531,401 shares of the Company’s common stock, at a purchase price of $4.50 per share, or $24.9 million in the aggregate, and warrants to purchase up to an aggregate of 2,765,702 shares of common stock with an exercise price of $6.00 per share underlying each warrant. The Warrants are deemed to be derivative instruments due to a ratchet provision that adjusts the exercise price if the Company issues additional equity instruments in the future at an effective price per share less than the exercise price then in effect. Upon issuance of the warrants, the Company recorded a liability of $9.2 million to derivative financial instruments in its balance sheet. The issuance of the shares of common stock in such private placement was not registered under the Securities Act as such issuance was exempt from registration under Section 4(2) of the Securities Act and Regulation D promulgated thereunder.

Public Offering - 2014

On January 9, 2014, the Company completed a public offering of 4,705,882 shares of common stock at a price of $8.50 per share. The Company received net proceeds from the offering of $36.8 million after deducting the underwriting fees and other offering costs of $3.2 million, which were recorded against additional paid in capital.

2014 Incentive Compensation Plan

On May 9, 2014, the Company’s stockholders approved the 2014 Incentive Compensation Plan (the "Plan"). The Plan authorizes the granting of stock options, stock appreciation rights, restricted stock and restricted stock units, deferred stock, performance units and annual incentive awards covering up to 3.0 million shares of the Company’s common stock. In a special shareholder meeting held February 3, 2015, the Company’s shareholders approved an incremental 1,928,000 shares of common stock and 230,000 restricted shared of common stock. These shares were granted to employees between February 24, 2014 and August 18, 2014 (see Note 2).

Stock Options

The fair values of stock option grants during the year ended December 31, 2014 and December 31, 2013 were calculated on the date of grant using the Black-Scholes option pricing model, except for options granted for market and revenue performance criteria. Compensation expense is recognized over the period of service, generally the vesting period (see Note 2). During the year ended December 31, 2014, 4,168,000 stock options were granted by the Company. The following assumptions were used in the Black-Scholes options pricing model to estimate the fair value of stock options for the years ended December 31, 2014 and 2013:

	Year Ended December 31, 2014			Year Ended December 31, 2013
Risk free rate		1.55	%		1.51	%
Expected volatility		85	%		102	%
Expected life (in years)		5.81			5.81
Expected dividend yield		-			-

The risk-free interest rate was based on rates established by the Federal Reserve. The Company’s expected volatility was based on analysis of the Company’s volatility, as well as the volatilities of guideline companies. The expected life of the Company’s options was determined using the simplified method as a result of limited historical data regarding the Company’s activity. The dividend yield is based upon the fact that the Company has not historically paid dividends, and does not expect to pay dividends in the foreseeable future.

The following table summarizes our stock option activity and related information for the year ended December 31, 2014:

				Weighted Average
	Shares Underlying Options			Exercise Price		Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2013		1,721,000		$	7.66		9.89	$	172,000
Granted		4,168,000		$	12.11		-	$	-
Forfeited and expired		(977,625	)	$	10.27		-		-
Exercised		(19,167	)	$	5.16		-		-
Outstanding at December 31, 2014		4,892,208		$	10.93		8.57	$	8,353
Exercisable at December 31, 2014		1,225,833		$	9.73		7.96	$	3,395

The following table summarizes our stock option activity and related information for the year ended December 31, 2013:

			Weighted Average
	Shares Underlying Options		Exercise Price		Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2013		-		-		-		-
Granted		1,721,000	$	7.66		-	$	-
Forfeited and expired		-		-		-		-
Exercised		-		- -		-		-
Outstanding at December 31, 2013		1,721,000	$	7.66		9.89	$	172,000
Exercisable at December 31, 2013		172,667	$	7.85		9.86	$	14,333

The weighted average grant date fair value of options granted is $8.56 and $6.03 during the years ended December 31, 2014 and December 31, 2013, respectively. The aggregate intrinsic value for outstanding options is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock as of December 31, 2014 of $12.24. The aggregate intrinsic value of stock options outstanding and exercisable was calculated based on a closing stock price of $7 dollars for December 31, 2013. Unrecognized compensation cost associated with unvested stock options amounts to $31.8 million and $9.2 million as of December 31, 2014 and December 31, 2013, respectively, which will be expensed over a weighted average remaining vesting period of 2.13 years and 2.7 years, respectively.

Share Based Compensation

Total non-cash stock-based compensation expense consisted of the following for the years ended December 31, 2014 and 2013:

	Year Ended December 31, (in thousands)
	2014		2013
Selling, general and administrative expenses	$	10,940.4	$	2,650.8
Research and development expenses		4,960.1		259.1
Total	$	15,900.5	$	2,909.9

Restricted Shares

As of December 31, 2014, there was approximately $5.8 million of unrecognized compensation cost related to restricted shares granted. These amounts are expected to be recognized over a weighted average period of 2.62 years. Unvested restricted shares consist of the following as of December 31, 2014.

	Number of shares			Weighted Average Grant Date Fair Value
Unvested December 31, 2012		267,768		$	3.20
Granted		335,000			6.24
Vested		(275,793	)		5.44
Forfeited/cancelled		(58,333	)		4.00
Unvested December 31, 2013		268,642			6.44
Granted		926,000			11.42
Vested		(358,069	)		8.96
Forfeited/cancelled		(144,905	)		11.16
Unvested December 31, 2014		691,668		$	10.83

Exercise of Warrants

During the twelve months ended December 31, 2014, the Company issued 1,947,377 shares of common stock upon the exercise of warrants for cash received by the Company in the amount of $8.4 million. The Company reclassified $23.4 million derivative liability as equity for the value of these warrants on the date of exercise. The warrants were revalued immediately prior to exercise and the change in the fair value of the warrants was recorded as other expense in the condensed consolidated financial statements of the Company.

Treasury Stock

In the fourth quarter of 2013, the Company repurchased 130,790 shares of its common stock for an aggregate purchase price of $957,272. The Company currently recognizes such repurchased common stock as treasury stock.

During the year ended December 31, 2014, the Company repurchased 248,801 shares of its common stock for an aggregate purchase price of $2.3 million. The Company recognizes repurchased common stock as treasury stock.

Quarterly Financial Information Disclosure [Abstract]

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 210
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-Paragraph 1
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
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-Paragraph d
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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-Name Staff Accounting Bulletin (SAB)
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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+ Details

LOSS PER SHARE

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

LOSS PER SHARE

NOTE 15.

LOSS PER SHARE

Basic and diluted net loss per share is calculated as follows (in thousands, except per share amounts):

	Year ended
	2014			2013			2012
Numerator
Net loss	$	(110,938	)	$	(34,625	)	$	(30,344	)

Denominator
Basic and diluted weighted average number of common shares		25,057,509			14,205,264			3,662,114
Net loss per share – basic and diluted	$	(4.43	)	$	(2.44	)	$	(8.29	)

Basic net loss per share is based on the weighted average number of common and common equivalent shares outstanding. Potential common shares includable in the computation of fully diluted per share results are not presented for the year ended December 31, 2014 and 2013 in the consolidated financial statements as their effect would be anti-dilutive. The total number of shares issuable upon exercise of options that were not included in dilutive loss per share for the year ended December 31, 2014 and 2013 were 1,132,500 and 172,667, respectively. The total number of shares issuable upon conversion of debt that were not included in dilutive earnings per share for the year ended December 31, 2014 was 0. The total number of shares issuable upon exercise of warrants that were not included in dilutive loss per share for the years ended December 31, 2014 and 2013 were 3,083,855 and 4,462,426.

INCOME TAXES

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 16.

INCOME TAXES

The components of the provision (benefit) for income taxes, in the consolidated statement of operations are as follows (in thousands):

	2014			2013			2012
Current
Federal	$	-		$	-		$	-
State		-			-			-
		-						-
Deferred
Federal		(1,885	)		(6,293	)		(1,173	)
State		(574	)		(3,435	)		(733	)
Total		(2,459	)		(9,728	)		(1,906	)
Change in valuation allowance		-			9,804			(1,906	)
Income tax expense		-			76			1,906
Total	$	(2,459	)	$	-		$	-

Income tax benefit increased $2.5 million to an income tax benefit of $2.5 million for the year ended December 31, 2014. For tax purposes, intangible assets are subject to different amortization allowances than for book purposes. In fiscal 2014, the life of the Company’s intangibles changed from an indefinite life to definite life classification. Since the Carbetocin acquisition was a stock deal that was deemed to be an asset acquisition a step up in basis of the asset was required that resulted in a deferred tax liability. Since this asset was determined to be indefinite lived for book purposes, this tax/book difference was deemed to be a permanent difference. This step up resulted in increasing the intangible asset by $2.5 million and increasing the deferred tax liability by $2.5 million. Due to the change in estimate from indefinite life to definite life, this resulted in a decrease to the valuation allowance and the recording of an income tax benefit of $2.5 million.

The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate expressed as a percentage of income (loss) before income taxes (in thousands):

	2014			2013			2012
Statutory rate - federal		-35.00	%		-35.00	%		-35.00	%
State taxes, net of federal benefit		-6.77	%		-6.70	%		-1.81	%
Change in FV of derivative liability (warrants)		7.40	%		10.46	%		0.00	%
Stock Based Compensation related to profits interest		5.51	%		2.30	%		9.52	%
Other		0.00	%		0.17	%		1.62	%
Partnership losses preceding conversion		0.00	%		0.00	%		19.39	%
Change in valuation allowance		26.63	%		29.00	%		6.28	%
Income tax provision (benefit)		-2.23	%		0.23	%		0.00	%

The significant components of the Company’s deferred tax assets and liabilities as of December 31, 2014 and 2013 are as follows (in thousands):

	2014			2013
Net operating loss and capital loss carryforward	$	42,280		$	11,832
Intangible assets		(7,830	)		(2,999	)
Other		1,427			610
Valuation allowance		(36,018	)		(12,044	)
Total deferred tax liability	$	(141	)	$	(2,601	)

From the Company’s inception in March 11, 2011 to September 20, 2012, the Company was not subject to federal and state income taxes since it was operating as a Limited Liability Company (LLC). On September 20, 2012, the Company converted from an LLC to a C corporation and, as a result, became subject to corporate federal and state income taxes. This conversion is considered a recapitalization of the equity structure of the Company and was treated as a nontaxable transaction. As a result of the conversion to a taxable entity, the Company recorded a deferred tax liability on the balance sheet and in income tax expense as of the date of the change in tax status in the amount of $1,079,000 related to the technology license.

For the periods ended December 31, 2014, the Company incurred net operating losses and, accordingly, no federal current provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets including NOL carryovers. At December 31, 2014, the Company has available unused U.S. federal net operating loss (“NOL”) carryforwards of $93.1 million and state NOL carryforwards of $87.6 million. As of December 31, 2014, the U.S. federal NOL carryforwards will expire beginning in 2030. A full valuation allowance has been recognized as of December 31, 2014 due to the uncertainty of realization of the loss carryforwards and other deferred tax assets. The Company has international subsidiaries in which their operations are not material as of and for the year ended December 31, 2014. In reaching this conclusion, the Company considered its history of operating losses causing the Company to be in a three-year cumulative loss position.

The Company's utilization of the net operating loss carryforwards may be subject to annual limitations due to the ownership change limitations provided by Internal Revenue Code (“IRC”) Section 382 and similar state provisions. Pursuant to IRC Section 382, the annual use of the Company’s net operating loss credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. The annual limitations may result in the expiration of net operating losses and credits prior to utilization. The annual limitation is determined based upon the fair market value of the Company as of the date of such ownership change. Based on the value of the Company at all relevant dates, the computed annual limitation that would result from an ownership change of the Company is not expected to prevent us from utilizing our net operating losses prior to their expiration if we can generate sufficient taxable income to do so in the future.

The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company’s income tax returns are open to examination by federal, state and foreign tax authorities, generally for the years ended December 31, 2011 and later. As of December 31, 2014 and 2013, respectively, the Company had recorded an indemnification asset with a corresponding liability in the amount of $1.5 million and $0 recorded for unrecognized tax uncertainties, which is included in other liability-long term in the consolidated balance sheet. The Company’s policy is to record estimated interest and penalties related to the underpayment of income taxes or unrecognized tax benefits as a component of its income tax provision. During the years ended 2014, 2013 and 2012, the Company did not recognize any interest or penalties in its statements of operations and there were no accruals for interest or penalties at December 31, 2014 and 2013.

SEVERANCE AGREEMENTS

12 Months Ended

Dec. 31, 2014

Severance Agreement [Abstract]

SEVERANCE AGREEMENTS

NOTE 17. SEVERANCE AGREEMENTS

On September 15, 2014, the Company entered into a separation agreement and release (the “Separation Agreement”) with Marc Panoff, the Company’s Chief Financial Officer, pursuant to which Mr. Panoff’s employment with the Company will terminate, effective as of February 28, 2015. Under the terms of the Separation Agreement, Mr. Panoff will be entitled to receive: (i) severance payments equal to six months of his current base salary; (ii) 100% of his target bonus for 2014; (iii) accelerated vesting of 81,333 shares of restricted common stock of the Company; and (iv) benefits under the Company’s benefit plans, subject to the terms of each such plan. In conjunction with the Separation Agreement, the Company had initially recorded and accrued $0.1 million of severance expense through September 30, 2014 in connection with Mr. Panoff’s severance which was to be expensed ratably over the service period from September 15, 2014 through February 28, 2015. During the 4^th quarter, the Company determined that Mr. Panoff’s service to the Company was substantially completed prior to December 31, 2014 and as a result recorded the remaining unamortized severance expense related to his separation agreement of $1.1 million in the 4^th quarter of fiscal 2014 in selling, general and administrative in the consolidated statements of operations. Mr. Panoff’s target bonus which was included as part of his severance agreement was recognized ratably over the course of the fiscal year ended December 31, 2014.

On October 13, 2014, Martin Shkreli resigned as a member of the Board and as an employee of the Company, and from any and all other positions that he held with the Company. On October 13, 2014, the Company entered into a resignation letter with Mr. Shkreli (“Separation Agreement”). As part of Mr. Shkreli’s Separation Agreement, Mr. Shkreli has been receiving cash severance, unpaid bonus and health insurance coverage, 12 months of continued vesting of time based stock options and no vesting of performance based stock options. Pursuant to the Separation Agreement, Mr. Shkreli’s market and performance based stock options have been forfeited. As a result, the Company recorded compensation expense in the amount of $481,076 relating to Mr. Shkreli’s cash severance, unpaid bonus and health insurance coverage and compensation expense of $1.1 million related to the accelerated vesting of Mr. Shkreli’s time based stock options.

On October 13, 2014, the Company signed a Letter of Intent for the terms for the sale of the Company’s Vecamyl, Syntocinon and ketamine licenses and assets to Turing Pharmaceuticals AG (“Turing Pharmaceuticals”), which includes an up-front payment to the Company of $3.0 million and the assumption of certain liabilities including license fees and royalties (the “Sale Transaction”). Martin Shkreli, the Company’s former Chief Executive Officer and Director, is the Chief Executive Officer of Turing Pharmaceuticals. The closing of the Sale Transaction was subject to various conditions, including the negotiation and execution of a binding definitive agreement between the Company and Turing Pharmaceuticals and the receipt of necessary third party consents. In connection with the Letter of Intent with Martin Shkreli, the Company recorded severance expense and accrued severance expense of $2.9 million as of and for the year ended December 31, 2014 which is the difference between of the net book value of the assets to be sold, the $3.0 million expected upfront payment, and $3.0 million of liabilities expected to be assumed.

As both transactions were contemplated simultaneously, they were both considered in calculating the respective severance expense related to Mr. Shkreli’s termination. The full amount of the severance was recorded as of September 30, 2014 as that was the date that the Board replaced Martin Shkreli as CEO of the Company until a formal separation agreement could be finalized. As of September 30, 2014, it was deemed to be probable and estimable that Mr. Shkreli would enter into a Separation Agreement that would entitle him to severance benefits. Therefore the estimated severance that was booked as of the end of the third quarter is based on the best estimate currently available and the full severance amount was recorded as of September 30, 2014 as Mr. Shkreli was not required to perform any future service for the Company. For the year ended December 31, 2014, the Company recorded a total of $4.5 million severance expense in connection with Mr. Shkreli’s Separation Agreement which has been recorded in selling, general and administrative expenses in the consolidated statements of operations.

On January 9, 2015, the Company entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Turing Pharmaceuticals pursuant to which the Company sold Turing Pharmaceuticals its ketamine licenses and assets (the “Ketamine Assets”) for a purchase price of $1.0 million. Turing Pharmaceuticals will also assume all future liabilities related to the Ketamine Assets.

On February 13, 2015, Retrophin, Inc., its wholly-owned subsidiary Manchester and its other wholly-owned subsidiary Retrophin Therapeutics International, LLC (collectively, the “Sellers”), entered into a Purchase Agreement with Waldun, pursuant to which the Sellers sold Waldun their product rights to mecamylamine hydrochloride (also referred to as Vecamyl) (the “Vecamyl Product Rights”) for a purchase price of $0.7 million. Waldun in turn sold the Vecamyl Product Rights to Turing Pharmaceuticals. In connection therewith, on February 13, 2015, the Company and Manchester entered into an Asset Purchase Agreement with Turing Pharmaceuticals, pursuant to which the Company and Manchester sold Turing Pharmaceuticals their Vecamyl inventory for a purchase price of $0.3 million. Turing Pharmaceuticals will also assume certain liabilities related to the Vecamyl Product Rights and Inventory.

Additionally, on February 13, 2015, the Company entered into an Asset Purchase Agreement with Turing Pharmaceuticals pursuant to which the Company sold Turing Pharmaceuticals its Syntocinon licenses and assets, including related inventory, for a purchase price of $1.1 million. Turing Pharmaceuticals will also assume certain liabilities related to the Syntocinon licenses and assets.

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 18. SUBSEQUENT EVENTS

On January 12, 2015, the Company announced the signing of a definitive agreement under which Retrophin will acquire the exclusive right to purchase from Asklepion, all worldwide rights, titles, and ownership of cholic acid for the treatment of bile acid synthesis defects, if approved by the FDA. Under the terms of the agreement, Retrophin paid Asklepion an upfront payment of $5.0 million and will pay up to $73.0 million in milestones based on FDA approval and net product sales, plus tiered royalties on future net sales of cholic acid.

In connection with the execution of the Asklepion Agreement, the Company obtained a commitment letter from Athyrium Capital Management, LLC and Perceptive Credit Opportunities Fund, LP (collectively, the “Lenders ”), the Company’s existing lenders, providing a commitment for a senior secured incremental term loan under the Company’s existing Credit Facility in an aggregate principal amount of $30.0 million (the “Incremental Loan”), which can be drawn down at the Company’s option to finance the acquisition of the Acquired Assets. The Company’s ability to draw down the Incremental Loan in the future is subject to various conditions and the negotiation and execution of a binding definitive amendment to the Company’s existing term loan agreement for the Incremental Loan. No assurances can be given that the Company will conclude the acquisition or, that if it does, the terms will not change from those disclosed.

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 31, 2014

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

NOTE 19. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The following tables present certain unaudited consolidated quarterly financial information for each quarter in the fiscal years ended December 31, 2014 and 2013.

The information presented in the following tables has been restated. These errors are more fully described in Note 2, Restatement of Previously Issued Consolidated Financial Statements.

The following table presents selected Consolidated Statements of Operations data for each quarter for the fiscal year ended December 31, 2014:

	March 31,			June 30,			September 30,			December 31,
	2014			2014			2014			2014
	(As Restated)			(As Restated)			(As Restated)

Net product sales	$	27,900		$	5,741,734		$	8,348,583		$	14,084,988
Total operating expenses		22,089,569			22,923,666			30,215,615			32,782,048
Operating loss		(22,061,669	)		(17,181,932	)		(21,867,032	)		(18,697,060	)
Total other income (expense), net		(53,608,602	)		26,461,546			3,887,239			(10,330,100	)
Income (loss) before provision for income taxes		(75,670,271	)		9,279,614			(17,979,793	)		(29,027,160	)
Income tax benefit(provision)		(65,376	)		2,525,124			-			-
Net income (loss)	$	(75,735,647	)	$	11,804,738		$	(17,979,793	)	$	(29,027,160	)
Per Share Data:
Net loss per common share, basic	$	(3.25	)	$	0.46		$	(0.67	)	$	(1.10	)
Net loss per common share, diluted	$	(3.25	)	$	(0.77	)	$	(0.83	)	$	(1.10	)

The following table presents selected Consolidated Statements of Operations data for each quarter for the fiscal year ended December 31, 2013:

	March 31,			June 30,			September 30,			December 31,
	2013			2013			2013			2013
	(As Restated)			(As Restated)			(As Restated)			(As Restated)

Net product sales	$	-		$	-		$	-		$	-
Total operating expenses		1,885,484			4,984,902			6,030,861			11,872,201
Operating loss		(1,885,484	)		(4,984,902	)		(6,030,861	)		(11,872,201	)
Total other income (expenses), net		(2,982,438	)		61,389			(5,980,313	)		(874,299	)
Loss before provision for income taxes		(4,867,922	)		(4,923,513	)		(12,011,174	)		(12,746,500	)
Income tax provision		-			-			-			(75,775	)
Net loss	$	(4,867,922	)	$	(4,923,513	)	$	(12,011,174	)	$	(12,822,275	)
Per Share Data:
Net loss per common share, basic and diluted	$	(0.46	)	$	(0.40	)	$	(0.78	)	$	(0.70	)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

Use of Estimates

Use of Estimates

Revenue Recognition

Revenue Recognition

Deductions from Revenue

Research and Development Costs

Research and Development Costs

Employee Stock-Based Compensation

Employee Stock-Based Compensation

Earnings (Loss) Per Share

Earnings (Loss) Per Share

Cash and Cash Equivalents

Cash and Cash Equivalents

Marketable Securities

Marketable Securities

Securities Sold, Not Yet Purchased

Securities Sold, Not Yet Purchased

Accounts Receivable, Net

Accounts Receivable, Net

Inventories and Related Reserves

Inventories and Related Reserves

Inventory, net of reserve, consists of the following at December 31, 2014:

	December 31, 2014
Raw material	$	314,425
Finished goods		486,082
Total inventory	$	800,507

Property and Equipment, net

Property and Equipment, net

The major classifications of property and equipment, including their respective expected useful lives, consisted of the following:

Furniture and Equipment	3 to 7 years
Leasehold improvements	Shorter of length of lease or life of the asset

Long-Lived Assets

Long-Lived Assets

Intangible Assets, Net

Intangible Assets, Net

Goodwill

Goodwill

Income Taxes

Income Taxes

Patents

Patents

Derivative Instruments

Derivative Instruments

Treasury Stock

Treasury Stock

The Company records treasury stock at the cost to acquire it and includes treasury stock as a component of stockholders’ equity.

Reclassifications

Reclassifications

Certain reclassifications have been made to the prior year financial statements in order to conform to the current year’s presentation.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Restatement Of Previously Issued Consolidated Financial Statements [Abstract]

Schedule of effects (in thousands) of the matters identified by the Oversight Committee and the Ratified Equity Grants on affected items within the Company's previously reported Consolidated Balance Sheets

	September 30, 2013				December 31, 2013
	As Reported		As Restated		As Reported		As Restated
Additional paid in Capital	$	47,500	$	46,222	$	50,191	$	49,636
Current liabilities	$	28,788	$	30,943	$	35,210	$	36,565

	March 31, 2014				June 30, 2014				September 30, 2014
	As Reported		As Restated		As Reported		As Restated		As Reported		As Restated
Additional paid in Capital	$	105,372	$	108,317	$	133,451	$	132,480	$	138,417	$	137,711
Current liabilities	$	113,447	$	116,966	$	47,985	$	49,153	$	49,135	$	49,433

	September 30, 2013						December 31, 2013
	As Reported			As Restated			As Reported			As Restated
Selling, general and administrative	$	3,755		$	4,631		$	6,747		$	6,672
Research and development	$	1,400		$	1,400		$	4,970		$	4,970
Operating loss	$	(5,155	)	$	(6,031	)	$	(11,717	)	$	(11,642	)
Net loss	$	(11,135	)	$	(12,011	)	$	(12,668	)	$	(12,593	)
Net loss per share, basic and diluted	$	(0.72	)	$	(0.78	)	$	(0.73	)	$	(0.74	)

	March 31, 2014						June 30, 2014						September 30, 2014
	As Reported			As Restated			As Reported			As Restated			As Reported			As Restated
Selling, general and administrative	$	10,092		$	15,146		$	11,340		$	8,406		$	18,576		$	17,372
Research and development	$	6,887		$	6,942		$	13,698		$	13,310		$	13,019		$	12,646
Operating loss	$	(16,952	)	$	(22,062	)	$	(20,504	)	$	(17,182	)	$	(23,444	)	$	(21,867	)
Net income (loss)	$	(70,626	)	$	(75,736	)	$	8,483		$	11,805		$	(19,556	)	$	(17,980	)
Net income (loss) per share, basic	$	(3.03	)	$	(3.25	)	$	0.33		$	0.46		$	(0.73	)	$	(0.67	)
Net loss per share, diluted	$	(3.03	)	$	(3.25	)	$	(0.90	)	$	(0.77	)	$	(0.89	)	$	(0.83	)

	September 30, 2013						December 31, 2013
	As Reported			As Restated			As Reported			As Restated
Selling, general and administrative	$	10,141		$	11,017		$	16,888		$	17,690
Research and development	$	2,114		$	2,114		$	7,084		$	7,084
Operating loss	$	(12,255	)	$	(13,131	)	$	(23,972	)	$	(24,773	)
Net loss	$	(21,156	)	$	(22,032	)	$	(33,824	)	$	(34,625	)
Net loss per share, basic and diluted	$	(1.65	)	$	(1.72	)	$	(2.38	)	$	(2.44	)

	June 30, 2014						September 30, 2014
	As Reported			As Restated			As Reported			As Restated
Selling, general and administrative	$	21,432		$	23,552		$	41,181		$	42,097
Research and development	$	20,585		$	20,253		$	33,603		$	32,899
Operating loss	$	(37,456	)	$	(39,244	)	$	(60,899	)	$	(61,111	)
Net loss	$	(62,143	)	$	(63,931	)	$	(81,699	)	$	(81,911	)
Net loss per share, basic and diluted	$	(2.54	)	$	(2.61	)	$	(3.24	)	$	(3.25	)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Schedule of inventory, net of reserve

	December 31, 2014
Raw material	$	314,425
Finished goods		486,082
Total inventory	$	800,507

Schedule of major classifications of property, equipment and software, including their respective expected useful lives

Furniture and Equipment	3 to 7 years
Leasehold improvements	Shorter of length of lease or life of the asset

BUSINESS COMBINATION (Tables)

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Schedule of purchase price allocation

	Amount (in thousands)
Cash paid upon consummation, net	$	29,150
Secured promissory note		31,283
Fair value of acquisition-related contingent consideration		12,800
Total purchase price	$	73,233

Prepaid expenses	$	116
Inventory		517
Product rights		71,372
Trade names		175
Customer relationship		403
Goodwill		936
Other asset		1,522
Accounts payable and accrued expenses		(286	)
Other liability		(1,522	)
Total allocation of purchase price consideration	$	73,233

Schedule of pro forma operating results

	Proforma (Unaudited)
	Twelve months ended December 31, (in thousands, except per share data)
	2014			2013
Net product sales	$	29,422		$	4,394
Net loss	$	(110,319	)	$	(30,367	)
Net loss per common share, basic	$	(4.40	)	$	(2.14	)

MARKETABLE SECURITIES AND SECURITIES SOLD, NOT YET PURCHASED (Tables)

12 Months Ended

Dec. 31, 2014

Marketable Securities [Abstract]

Schedule of marketable securities

Marketable securities at December 31, 2014 consisted of the following:

	Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value

Marketable securities available-for-sale	$	5,160,558	$	4,498,730	$	(103,190	)	$	9,556,098

Marketable securities and securities sold, not yet purchased at December 31, 2013 consisted of the following:

	Cost			Unrealized Gains		Unrealized Losses			Estimated Fair Value
Marketable securities available-for-sale	$	129,702		$	3,292	$	-		$	132,994
Securities sold, not yet purchased	$	(1,344,622	)	$	13,256	$	(126,535	)	$	(1,457,901	)

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Investments, All Other Investments [Abstract]

Schedule of assumptions for valuation of warrants

	As of
	December 31, 2014			December 31, 2013
Fair value of common stock	$	12.24		$	7.00
Expected life (in years), represents the weighted average period until next liquidity event		.33 years			4.12 – 4.62 years
Risk-free interest rate		1.13% – 1.69	%		1.39	%
Expected volatility		85	%		93 – 97	%
Dividend yield		0.00	%		0.00	%

Schedule of derivative warrant issuances and balances outstanding

			Weighted Average
	Warrants		Exercise Price		Grant Date Fair Value
Outstanding at December 31, 2012		-	$	-	$	-
Issued		4,782,249		5.04		3.13
Canceled		-		-		-
Exercised		-		-		-
Outstanding at December 31, 2013		4,782,249	$	5.04	$	3.13
Issued		637,500		11.44		6.49
Canceled		-		-		-
Exercised		1,998,394		4.70		3.05
Outstanding at December 31, 2014		3,421,355	$	6.43	$	3.79

Schedule of derivative warrants outstanding

Exercise Price		Number of Warrants		Weighted Average Remaining Contractual Life (years)		Number Exercisable
$	3.60		837,965		3.12		837,965
$	6.00		1,945,890		3.62		1,945,890
$	12.76		337,500		4.50		337,500
$	9.96		300,000		4.87		300,000

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Schedule of fair value on a recurring basis

	As of December 31, 2014		Fair Value Hierarchy at December 31, 2014
	Total carrying and estimated fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset:
Marketable securities, available-for-sale	$	9,556,098	$	9,556,098	$	-	$	-

Liabilities:
Derivative liability related to warrants	$	27,990,000	$	-	$	-	$	27,990,000
Acquisition-related contingent consideration	$	11,637,227	$	-	$	-	$	11,637,227

	As of December 31, 2013		Fair Value Hierarchy at December 31, 2013
	Total carrying and estimated fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset:
Marketable securities, available-for-sale	$	132,994	$	132,994	$	-	$	-

Liabilities:
Derivative liability related to warrants	$	25,037,346	$	-	$	-	$	25,037,346
Securities sold, not yet purchased	$	1,457,901	$	1,457,901	$	-	$	-

Schedule of fair value measurements of common stock warrants using significant unobservable inputs (Level 3)

	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2013	$	-

Issuance of common stock warrants:
February 14, 2013		5,407,372
August 14, 2013		328,561
August 15, 2013		9,201,487
Total value upon issuance		14,937,420
Change in fair value of common stock warrant liability		10,099,926
Balance at December 31, 2013	$	25,037,346

	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at December 31, 2013	$	25,037,346
Issuance of common stock warrants		2,531,250
Reclassification of derivative liability to equity upon exercise of warrants		(23,364,668	)
Change in estimated fair value of liability classified warrants		23,786,072
Balance at December 31, 2014	$	27,990,000

Schedule of fair value measurements of acquisition-related contingent consideration

	Fair Value Measurements of Acquisition-Related Contingent Consideration
Balance at January 1, 2014	$	-
Present value of contractual payments, contingent consideration upon acquisition		12,800,000
Contractual Payments		(1,162,773	)
Balance at December 31, 2014	$	11,637,227

INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of amortizable intangible assets

	December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Product Rights	$	71,372,000	$	(3,419,603	)	$	67,952,397
Thiola® License		15,049,648		(870,607	)		14,179,041
Syntocinon License*		5,000,000		(190,437	)		4,809,563
Carbetocin Assets*		5,567,736		(429,493	)		5,138,243
Ligand License		2,300,000		(526,578	)		1,773,422
Customer Relationships		403,000		(30,890	)		372,110
Trade Name		175,000		(134,246	)		40,754
Total	$	99,867,384	$	(5,601,854	)	$	94,265,530

* The Company commenced amortization in the second quarter of fiscal 2014 due to a change in estimate.

	December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Ligand License	$	2,349,775	$	(323,980	)	$	2,025,795
Indefinite-lived intangibles		10,560,355		-			10,560,355
Total	$	12,910,130	$	(323,980	)	$	12,586,150

Schedule of amortization expense

2015		7,059,019
2016		7,037,493
2017		7,018,265
2018		7,018,265
2019		7,018,265
Total	$	35,151,307

ACCRUED EXPENSES (Tables)

12 Months Ended

Dec. 31, 2014

Payables and Accruals [Abstract]

Schedule of accrued expenses

	December 31,		December 31,
	2014		2013
Compensation related costs	$	8,163,076	$	1,144,983
Severance related costs		5,709,602		-
Research and development		3,719,556		1,035,875
Business development		-		300,000
License fee		3,000,000		150,000
Accounting and legal fees		1,208,097		75,000
Interest		2,318,228		-
Medicaid		1,353,473		-
Selling, general and administrative		2,410,963		1,428,837
Offering costs		-		746,739
	$	27,882,995	$	4,881,434

NOTES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Schedule of fair value of warrants

Risk free rate		1.62	%
Expected volatility		85	%
Expected life (in years), represents the weighted average period until next liquidity event		0.36
Expected dividend yield		-
Exercise Price	$	12.76

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Schedule of principal contractual commitments, excluding open orders

Year Ending December 31,	Operating Leases		Other		Total
2015	$	1,451,043	$	436,980	$	1,888,023
2016		1,121,584		436,980		1,558,564
2017		-		436,980		436,980
2018		-		436,980		436,980
2019		-		286,980		286,980
Thereafter		-		1,147,920		1,147,920
Total	$	2,572,627	$	3,182,820	$	5,755,447

STOCKHOLDERS DEFICIT (Tables)

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Assumptions used in Black-Scholes options pricing model

	Year Ended December 31, 2014			Year Ended December 31, 2013
Risk free rate		1.55	%		1.51	%
Expected volatility		85	%		102	%
Expected life (in years)		5.81			5.81
Expected dividend yield		-			-

Schedule of stock option activity

				Weighted Average
	Shares Underlying Options			Exercise Price		Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2013		1,721,000		$	7.66		9.89	$	172,000
Granted		4,168,000		$	12.11		-	$	-
Forfeited and expired		(977,625	)	$	10.27		-		-
Exercised		(19,167	)	$	5.16		-		-
Outstanding at December 31, 2014		4,892,208		$	10.93		8.57	$	8,353
Exercisable at December 31, 2014		1,225,833		$	9.73		7.96	$	3,395

			Weighted Average
	Shares Underlying Options		Exercise Price		Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2013		-		-		-		-
Granted		1,721,000	$	7.66		-	$	-
Forfeited and expired		-		-		-		-
Exercised		-		- -		-		-
Outstanding at December 31, 2013		1,721,000	$	7.66		9.89	$	172,000
Exercisable at December 31, 2013		172,667	$	7.85		9.86	$	14,333

Schedule of share based compensation expenses

	Year Ended December 31, (in thousands)
	2014		2013
Selling, general and administrative expenses	$	10,940.4	$	2,650.8
Research and development expenses		4,960.1		259.1
Total	$	15,900.5	$	2,909.9

Schedule of unvested restricted shares

	Number of shares			Weighted Average Grant Date Fair Value
Unvested December 31, 2012		267,768		$	3.20
Granted		335,000			6.24
Vested		(275,793	)		5.44
Forfeited/cancelled		(58,333	)		4.00
Unvested December 31, 2013		268,642			6.44
Granted		926,000			11.42
Vested		(358,069	)		8.96
Forfeited/cancelled		(144,905	)		11.16
Unvested December 31, 2014		691,668		$	10.83

LOSS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Schedule of basic and diluted net loss per share

	Year ended
	2014			2013			2012
Numerator
Net loss	$	(110,938	)	$	(34,625	)	$	(30,344	)

Denominator
Basic and diluted weighted average number of common shares		25,057,509			14,205,264			3,662,114
Net loss per share – basic and diluted	$	(4.43	)	$	(2.44	)	$	(8.29	)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of income tax provision

	2014			2013			2012
Current
Federal	$	-		$	-		$	-
State		-			-			-
		-						-
Deferred
Federal		(1,885	)		(6,293	)		(1,173	)
State		(574	)		(3,435	)		(733	)
Total		(2,459	)		(9,728	)		(1,906	)
Change in valuation allowance		-			9,804			(1,906	)
Income tax expense		-			76			1,906
Total	$	(2,459	)	$	-		$	-

Schedule of reconciliation of the statutory federal income tax expense (benefit)

	2014			2013			2012
Statutory rate - federal		-35.00	%		-35.00	%		-35.00	%
State taxes, net of federal benefit		-6.77	%		-6.70	%		-1.81	%
Change in FV of derivative liability (warrants)		7.40	%		10.46	%		0.00	%
Stock Based Compensation related to profits interest		5.51	%		2.30	%		9.52	%
Other		0.00	%		0.17	%		1.62	%
Partnership losses preceding conversion		0.00	%		0.00	%		19.39	%
Change in valuation allowance		26.63	%		29.00	%		6.28	%
Income tax provision (benefit)		-2.23	%		0.23	%		0.00	%

Schedule of deferred tax assets and liabilities

	2014			2013
Net operating loss and capital loss carryforward	$	42,280		$	11,832
Intangible assets		(7,830	)		(2,999	)
Other		1,427			610
Valuation allowance		(36,018	)		(12,044	)
Total deferred tax liability	$	(141	)	$	(2,601	)

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of Consolidated Statements of Operations data for each quarter

The following table presents selected Consolidated Statements of Operations data for each quarter for the fiscal year ended December 31, 2014:

	March 31,			June 30,			September 30,			December 31,
	2014			2014			2014			2014
	(As Restated)			(As Restated)			(As Restated)

Net product sales	$	27,900		$	5,741,734		$	8,348,583		$	14,084,988
Total operating expenses		22,089,569			22,923,666			30,215,615			32,782,048
Operating loss		(22,061,669	)		(17,181,932	)		(21,867,032	)		(18,697,060	)
Total other income (expense), net		(53,608,602	)		26,461,546			3,887,239			(10,330,100	)
Income (loss) before provision for income taxes		(75,670,271	)		9,279,614			(17,979,793	)		(29,027,160	)
Income tax benefit(provision)		(65,376	)		2,525,124			-			-
Net income (loss)	$	(75,735,647	)	$	11,804,738		$	(17,979,793	)	$	(29,027,160	)
Per Share Data:
Net loss per common share, basic	$	(3.25	)	$	0.46		$	(0.67	)	$	(1.10	)
Net loss per common share, diluted	$	(3.25	)	$	(0.77	)	$	(0.83	)	$	(1.10	)

The following table presents selected Consolidated Statements of Operations data for each quarter for the fiscal year ended December 31, 2013:

	March 31,			June 30,			September 30,			December 31,
	2013			2013			2013			2013
	(As Restated)			(As Restated)			(As Restated)			(As Restated)

Net product sales	$	-		$	-		$	-		$	-
Total operating expenses		1,885,484			4,984,902			6,030,861			11,872,201
Operating loss		(1,885,484	)		(4,984,902	)		(6,030,861	)		(11,872,201	)
Total other income (expenses), net		(2,982,438	)		61,389			(5,980,313	)		(874,299	)
Loss before provision for income taxes		(4,867,922	)		(4,923,513	)		(12,011,174	)		(12,746,500	)
Income tax provision		-			-			-			(75,775	)
Net loss	$	(4,867,922	)	$	(4,923,513	)	$	(12,011,174	)	$	(12,822,275	)
Per Share Data:
Net loss per common share, basic and diluted	$	(0.46	)	$	(0.40	)	$	(0.78	)	$	(0.70	)

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details) - USD ($)

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Additional paid in Capital

$ 140,850,551

$ 49,635,502

^[1]

Current liabilities

$ 107,538,551

36,564,878

^[1]

As Reported

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Additional paid in Capital

$ 138,417

$ 133,451

$ 105,372

50,191

$ 47,500

Current liabilities

49,135

47,985

113,447

35,210

28,788

As Restated

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Additional paid in Capital

137,711

132,480

108,317

49,636

46,222

Current liabilities

$ 49,433

$ 49,153

$ 116,966

$ 36,565

$ 30,943

[1]	(As Restated)

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details 1) - USD ($)

3 Months Ended

6 Months Ended

9 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

^[1]

Mar. 31, 2013

^[1]

Jun. 30, 2014

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Error Corrections and Prior Period Adjustments Restatement [Line Items]

$ 59,644,696

$ 17,689,439

^[1]

$ 29,594,515

47,795,223

7,084,009

^[1]

662,502

$ (18,697,060)

$ (21,867,032)

^[1]

$ (17,181,932)

^[1]

$ (22,061,669)

^[1]

$ (11,872,201)

^[1]

$ (6,030,861)

^[1]

$ (4,984,902)

$ (1,885,484)

(79,807,693)

(24,773,448)

^[1]

(30,257,017)

Net loss per common share, basic and diluted (in dollars per shares)

$ (29,027,160)

$ (17,979,793)

^[1]

$ 11,804,738

^[1]

$ (75,735,647)

^[1]

$ (12,822,275)

^[1]

$ (12,011,174)

^[1]

$ (4,923,513)

$ (4,867,922)

$ (110,937,862)

$ (34,624,884)

^[1]

$ (30,343,856)

$ (0.70)

^[1]

$ (0.78)

^[1]

$ (0.40)

$ (0.46)

$ (4.43)

$ (2.44)

^[1]

$ (8.29)

Net loss per common share, basic (in dollars per shares)

$ (1.10)

$ (0.67)

^[1]

$ 0.46

^[1]

$ (3.25)

^[1]

Net loss per common share, diluted (in dollars per shares)

$ (1.10)

$ (0.83)

^[1]

$ (0.77)

^[1]

$ (3.25)

^[1]

As Reported

Error Corrections and Prior Period Adjustments Restatement [Line Items]

$ 18,576

$ 11,340

$ 10,092

$ 6,747

$ 3,755

$ 21,432

$ 41,181

$ 10,141

$ 16,888

13,019

13,698

6,887

4,970

1,400

20,585

33,603

2,114

7,084

(23,444)

(20,504)

(16,952)

(11,717)

(5,155)

(37,456)

(60,899)

(12,255)

(23,972)

Net loss per common share, basic and diluted (in dollars per shares)

$ (19,556)

$ 8,483

$ (70,626)

$ (12,668)

$ (11,135)

$ (62,143)

$ (81,699)

$ (21,156)

$ (33,824)

$ (0.73)

$ (0.72)

$ (2.54)

$ (3.24)

$ (1.65)

$ (2.38)

Net loss per common share, basic (in dollars per shares)

$ (0.73)

$ 0.33

$ (3.03)

Net loss per common share, diluted (in dollars per shares)

$ (0.89)

$ (0.90)

$ (3.03)

As Restated

Error Corrections and Prior Period Adjustments Restatement [Line Items]

$ 17,372

$ 8,406

$ 15,146

$ 6,672

$ 4,631

$ 23,552

$ 42,097

$ 11,017

$ 17,690

12,646

13,310

6,942

4,970

1,400

20,253

32,899

2,114

7,084

(21,867)

(17,182)

(22,062)

(11,642)

(6,031)

(39,244)

(61,111)

(13,131)

(24,773)

Net loss per common share, basic and diluted (in dollars per shares)

$ (17,980)

$ 11,805

$ (75,736)

$ (12,593)

$ (12,011)

$ (63,931)

$ (81,911)

$ (22,032)

$ (34,625)

$ (0.74)

$ (0.78)

$ (2.61)

$ (3.25)

$ (1.72)

$ (2.44)

Net loss per common share, basic (in dollars per shares)

$ (0.67)

$ 0.46

$ (3.25)

Net loss per common share, diluted (in dollars per shares)

$ (0.83)

$ (0.77)

$ (3.25)

[1]	(As Restated)

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details Textuals) - USD ($)	2 Months Ended	3 Months Ended		4 Months Ended	6 Months Ended		12 Months Ended
	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2014
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Issuance for common stock for investment		47,128
Cash paid for investment							$ 400,000
Repayment of secured promissory note			$ 900,000
Equity investment reclassified as a loan			900,000
Payments for forgave monetary obligations			1,200,000
Consulting agreements
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Issuance for common stock for investment	266,000
Cash paid for investment	$ 200,000
Settlement agreements
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Issuance for common stock for investment						11,000
Cash paid for investment						$ 2,200,000
Previously disclosed settlement agreement
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash paid for investment						$ 300,000
Previously undisclosed settlement agreement
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Issuance for common stock for investment						80,000
Mr. Shkreli
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Issuance for common stock for investment					176,388
Cash payment as part of settlement					$ 200,000
Payments for discretionary bonus			$ 575,000
Mr. Shkreli \| Consulting agreements
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Issuance for common stock for investment				346,500
Cash paid for investment				$ 200,000
Mr. Shkreli \| Settlement agreements
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Issuance for common stock for investment						47,128

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details Textuals 1) - USD ($) $ in Millions	6 Months Ended	9 Months Ended	12 Months Ended
	Aug. 18, 2014	Sep. 30, 2014	Dec. 31, 2013
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Increase to operating expense		$ 0.2	$ 0.8
Common Stock
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Issuance of stock options to purchase shares	1,928,000
Restricted shares
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Issuance of stock options to purchase shares	230,000

GOING CONCERN UNCERTAINTY, FINANCIAL CONDITION AND MANAGEMENT'S PLANS (Details Textuals) - USD ($)

1 Months Ended

3 Months Ended

12 Months Ended

Jan. 09, 2014

Jun. 30, 2014

Jan. 31, 2014

Aug. 31, 2013

Feb. 28, 2013

Jan. 31, 2013

Dec. 31, 2014

Sep. 30, 2014

^[1]

Jun. 30, 2014

^[1]

Mar. 31, 2014

^[1]

Dec. 31, 2013

^[1]

Sep. 30, 2013

^[1]

Jun. 30, 2013

^[1]

Mar. 31, 2013

^[1]

Dec. 31, 2014

Dec. 31, 2013

^[1]

Dec. 31, 2012

Dec. 31, 2011

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Working capital deficit (Approximately)

$ 70,200,000

Accumulated deficit

179,174,858

$ 68,236,996

179,174,858

$ 68,236,996

Stockholders' deficit

(37,250,719)

(19,666,898)

(37,250,719)

(19,666,898)

$ (3,407,815)

$ (536,285)

Net cash used in operating activities

(29,027,160)

$ (17,979,793)

$ 11,804,738

$ (75,735,647)

$ (12,822,275)

$ (12,011,174)

$ (4,923,513)

$ (4,867,922)

(110,937,862)

(34,624,884)

(30,343,856)

(45,849,750)

(17,589,168)

(2,736,739)

Cash equivalents and marketable securities

$ 27,800,000

27,800,000

Number of common stock issued

4,705,882

401,047

Price per common share

$ 8.50

$ 4.50

$ 3.00

Net proceeds from the offering

$ 36,800,000

$ 40,000,000

$ 30,936,748

$ 3,475,703

Underwriting fees and other offering costs

$ 3,200,000

$ 3,164,990

$ 2,780,563

$ 928,986

$ 0

[1]	(As Restated)

GOING CONCERN UNCERTAINTY, FINANCIAL CONDITION AND MANAGEMENT'S PLANS (Detail Textuals 1)

1 Months Ended

12 Months Ended

Jan. 09, 2014

Jun. 30, 2014

USD ($)

May 29, 2014

USD ($)

Mar. 26, 2014

USD ($)

Installment

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

^[1]

Dec. 31, 2012

USD ($)

Jun. 30, 2013

Sep. 30, 2012

USD ($)

Liquidity And Financial Condition And Managements Plans [Line Items]

Number of shares issued to investors | shares

5.00%

4,705,882

401,047

Finance expense as other expense related to issuance

$ 4,720,780

Net proceeds

$ 42,924,169

Thiola License Agreement | Mission Pharmacal Company

Liquidity And Financial Condition And Managements Plans [Line Items]

Mission an up-front license fee

$ 3,000,000

Present value of guaranteed minimum royalties payable (in percent)

$ 2,000,000

20.00%

Convertible Debt | Note Purchase Agreement

Liquidity And Financial Condition And Managements Plans [Line Items]

$ 46,000,000

Liquidity And Financial Condition And Managements Plans [Line Items]

4.50%

Net proceeds

$ 42,900,000

Promissory Notes Payable

$ 30,000

Manchester Pharmaceuticals Llc

15.00%

Liquidity And Financial Condition And Managements Plans [Line Items]

Manchester Pharmaceuticals Llc | Promissory Notes Payable

$ 33,000,000

Liquidity And Financial Condition And Managements Plans [Line Items]

Aggregate consideration

$ 60,400,000

Frequency of periodic payments for notes payable

33,000,000

Present value of debt

$ 31,300,000

Effective interest rate

11.00%

three consecutive payments

Number of installments | Installment

Consecutive payment of notes payable

$ 11,000,000

[1]	(As Restated)

GOING CONCERN UNCERTAINTY, FINANCIAL CONDITION AND MANAGEMENT'S PLANS (Detail Textuals 2)				1 Months Ended				12 Months Ended
	Jan. 12, 2015 USD ($)	Jan. 09, 2015 USD ($)	Nov. 13, 2014 USD ($) shares	Feb. 13, 2015 USD ($)	Oct. 31, 2014 USD ($)	Jul. 17, 2014 USD ($) Per_Share $ / shares	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($) shares	Jul. 16, 2014 USD ($)
Liquidity And Financial Condition And Managements Plans [Line Items]
Net proceeds								$ 42,924,169
Aggregate number of common stock exercisable by warrants \| shares								125,000
Note payable								$ 40,485,452
Clinuvel Pharmaceuticals Limited
Liquidity And Financial Condition And Managements Plans [Line Items]
Share exchange ratio for acquisition \| Per_Share						0.175
Cash per share \| $ / shares						$ 2.03
Aggregate purchase price						$ 89,000,000
Investment value								$ 9,600,000
Percentage of outstanding shares owned								6.50%
Turing Pharmaceuticals
Liquidity And Financial Condition And Managements Plans [Line Items]
Upfront payment					$ 3,000,000
Credit Agreement
Liquidity And Financial Condition And Managements Plans [Line Items]
Aggregate number of common stock exercisable by warrants \| shares								337,500
Definitive agreement \| Asklepion Pharmaceuticals, Llc \| Maximum \| Subsequent Event
Liquidity And Financial Condition And Managements Plans [Line Items]
Upfront payment	$ 5,000,000
Milestones based on FDA approval and net product sales	73,000,000
Definitive agreement \| Amendment No. 3 \| Subsequent Event \| Athyrium Capital Management, LLC and Perceptive Credit Opportunities Fund, LP
Liquidity And Financial Condition And Managements Plans [Line Items]
Principal amount of promissory note	$ 30,000,000
Purchase Agreement \| Turing Pharmaceuticals \| Subsequent Event
Liquidity And Financial Condition And Managements Plans [Line Items]
Purchase price		$ 1,000,000		$ 1,100,000
Purchase Agreement \| Turing Pharmaceuticals \| Subsequent Event \| Manchester Pharmaceuticals Llc
Liquidity And Financial Condition And Managements Plans [Line Items]
Purchase price				300,000
Purchase Agreement \| Waldun Pharmaceuticals, LLC \| Subsequent Event \| Manchester Pharmaceuticals Llc
Liquidity And Financial Condition And Managements Plans [Line Items]
Purchase price				$ 700,000
Note Payable With Detachable Warrants \| Credit Agreement
Liquidity And Financial Condition And Managements Plans [Line Items]
Principal amount of promissory note							$ 45,000,000
Net proceeds							$ 42,400,000
Note Payable With Detachable Warrants \| Credit Agreement \| Base Rate
Liquidity And Financial Condition And Managements Plans [Line Items]
Description of variable rate basis							Base Rate plus 9
Annual interest rate							9.00%
Note Payable With Detachable Warrants \| Credit Agreement \| LIBOR Rate
Liquidity And Financial Condition And Managements Plans [Line Items]
Description of variable rate basis							LIBOR Rate plus 10
Annual interest rate							10.00%
Note Payable With Detachable Warrants \| Credit Agreement \| Amendment No. 1 \| Clinuvel Pharmaceuticals Limited \| Maximum
Liquidity And Financial Condition And Managements Plans [Line Items]
Maximum permitted investment amount									$ 10,000,000
Note Payable With Detachable Warrants \| Credit Agreement \| Amendment No. 2 \| Clinuvel Pharmaceuticals Limited
Liquidity And Financial Condition And Managements Plans [Line Items]
Aggregate number of common stock exercisable by warrants \| shares			300,000
Value of common stock exercisable by warrants			$ 2,200,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Dec. 31, 2014 USD ($)
Accounting Policies [Abstract]
Raw material	$ 314,425
Finished goods	486,082
Total inventory	$ 800,507

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)	Dec. 31, 2014
Furniture and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	3 to 7 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	Shorter of length of lease or life of the asset

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals)	12 Months Ended
	Dec. 31, 2014 USD ($) Customer Supplier	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Percentage of accrual of prompt pay discount	100.00%
Restricted cash as rent guarantee	$ 40,000
Gain on securities sold, not yet purchased	(484,509)
Allowance for doubtful accounts	$ 100,000	0
Depreciation Method	Straight-line method
Amortization method	straight line basis
Inventory reserve	$ 100,000	0
Minimum
Summary Of Significant Accounting Policies [Line Items]
Finite useful lives of product rights, licenses and customer relationships	10 years
Maximum
Summary Of Significant Accounting Policies [Line Items]
Finite useful lives of product rights, licenses and customer relationships	20 years
Other liability-long term
Summary Of Significant Accounting Policies [Line Items]
Unrecognized tax uncertainties	$ 1,500,000	$ 0
Revenues \| Suppliers
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	100.00%
Chenodal \| Revenues \| Suppliers
Summary Of Significant Accounting Policies [Line Items]
Number of supplier \| Supplier	2
Concentration risk, percentage	17.00%
Thiola \| Revenues \| Suppliers
Summary Of Significant Accounting Policies [Line Items]
Number of supplier \| Supplier	2
Concentration risk, percentage	83.00%
Dohman \| Revenues
Summary Of Significant Accounting Policies [Line Items]
Number of customers \| Customer	1
Concentration risk, percentage	80.00%
Dohman \| Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Number of customers \| Customer	1
Concentration risk, percentage	26.00%

BUSINESS COMBINATION (Details) - USD ($)	1 Months Ended	12 Months Ended
BUSINESS COMBINATION (Details) - USD ($)	Mar. 26, 2014	Dec. 31, 2014
Business Acquisition [Line Items]
Cash paid upon consummation, net		$ 29,150,000
Goodwill		935,935
Manchester Pharmaceuticals Llc
Business Acquisition [Line Items]
Cash paid upon consummation, net	$ 29,150,000
Secured promissory note	31,283,000
Fair value of acquisition-related contingent consideration	12,800,000
Total purchase price	73,233,000
Prepaid expenses	116,000
Inventory	517,000
Goodwill	936,000
Other asset	1,522,000
Accounts payable and accrued expenses	(286,000)
Other liability	(1,522,000)
Total allocation of purchase price consideration	73,233,000
Manchester Pharmaceuticals Llc \| Product rights
Business Acquisition [Line Items]
Intangibles	71,372,000	71,372,000
Manchester Pharmaceuticals Llc \| Trade name
Business Acquisition [Line Items]
Intangibles	175,000	200,000
Manchester Pharmaceuticals Llc \| Customer relationships
Business Acquisition [Line Items]
Intangibles	$ 403,000	$ 400,000

BUSINESS COMBINATION (Details 1) - Manchester Pharmaceuticals Llc - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Net product sales	$ 29,422	$ 4,394
Net loss	$ (110,319)	$ (30,367)
Net loss per common share, basic	$ (4.40)	$ (2.14)

BUSINESS COMBINATION (Detail Textuals) - USD ($)	1 Months Ended	12 Months Ended
BUSINESS COMBINATION (Detail Textuals) - USD ($)	Mar. 26, 2014	Dec. 31, 2014	Jun. 30, 2014	Sep. 30, 2012
Business Acquisition [Line Items]
Payment for consummation of the transaction		$ 29,150,000
Goodwill		$ 935,935
Promissory Notes Payable
Business Acquisition [Line Items]
Principal amount of promissory note				$ 30,000
Manchester Pharmaceuticals Llc
Business Acquisition [Line Items]
Acquired outstanding membership interests percentage	100.00%
Payment for consummation of the transaction	$ 29,150,000
Principal amount of promissory note			$ 33,000,000
Contractual payments based on net sales of the products	10.00%
Additional contingent payments based on net sales from new products	5.00%
Acquisition related contingent consideration estimated value	$ 12,800,000
Total allocation of purchase price consideration	73,233,000
Goodwill	936,000
Manchester Pharmaceuticals Llc \| Retrophin Therapeutics International, Llc
Business Acquisition [Line Items]
Payment for consummation of the transaction	3,200,000
Manchester Pharmaceuticals Llc \| Selling, General and Administrative Expenses
Business Acquisition [Line Items]
Acquisition costs	300,000
Manchester Pharmaceuticals Llc \| Promissory Notes Payable
Business Acquisition [Line Items]
Principal amount of promissory note	33,000,000
Discounted principal amount of promissory note	31,300,000
Quarterly installments to be paid	$ 11,000,000

BUSINESS COMBINATION (Detail Textuals 1) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 26, 2014	Dec. 31, 2014
Business Acquisition [Line Items]
Indemnification asset with a corresponding liability		$ 1,500
Manchester Pharmaceuticals Llc
Business Acquisition [Line Items]
Intangible assets with definite lives other than goodwill	$ 72,000
Total allocation of purchase price consideration	73,233
Manchester Pharmaceuticals Llc \| Product rights
Business Acquisition [Line Items]
Intangible assets with definite lives	$ 71,372	$ 71,372
Assets useful life	16 years	16 years
Manchester Pharmaceuticals Llc \| Trade name
Business Acquisition [Line Items]
Intangible assets with definite lives	$ 175	$ 200
Assets useful life	1 year	1 year
Manchester Pharmaceuticals Llc \| Customer relationships
Business Acquisition [Line Items]
Intangible assets with definite lives	$ 403	$ 400
Assets useful life	10 years	10 years

MARKETABLE SECURITIES AND SECURITIES SOLD, NOT YET PURCHASED (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Marketable securities available-for-sale
Cost	$ 5,160,558	$ 129,702
Unrealized Gains	4,498,730	3,292
Unrealized Losses	(103,190)
Estimated Fair Value	$ 9,556,098	132,994
Securities sold, not yet purchased
Cost		(1,344,622)
Unrealized Gains		13,256
Unrealized Losses		(126,535)
Estimated Fair Value		$ (1,457,901)

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - $ / shares	12 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - $ / shares	Dec. 31, 2014	Dec. 31, 2013
Fair value of common stock	$ 12.24	$ 7.00
Expected life (in years), represents the weighted average period until next liquidity event	3 months 29 days
Risk-free interest rate		1.39%
Expected volatility	85.00%
Dividend yield	0.00%	0.00%
Minimum
Expected life (in years), represents the weighted average period until next liquidity event		4 years 1 month 13 days
Risk-free interest rate	1.13%
Expected volatility		93.00%
Maximum
Expected life (in years), represents the weighted average period until next liquidity event		4 years 7 months 13 days
Risk-free interest rate	1.69%
Expected volatility		97.00%

DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) - $ / shares		12 Months Ended
	Jan. 09, 2014	Dec. 31, 2014	Dec. 31, 2013
Shares
Issued	3,000,000
Warrants \| Derivative
Shares
Outstanding, Beginning Balance	4,782,249	4,782,249
Issued		637,500	4,782,249
Shares Cancelled
Shares Exercised		1,998,394
Outstanding, Ending Balance		3,421,355	4,782,249
Weighted Average Exercise Price
Outstanding, Beginning Balance	$ 5.04	$ 5.04
Issued		11.44	5.04
Cancelled
Exercised		4.70
Outstanding, Ending Balance		6.43	5.04
Weighted Average Grant Date Fair Value
Outstanding, Beginning Balance	$ 3.13	3.13
Issued		6.49	3.13
Cancelled
Exercised		3.05
Outstanding, Ending Balance		$ 3.79	$ 3.13

DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - Warrants - Derivative - shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Number of Warrants	3,421,355	4,782,249
$3.60
Number of Warrants	837,965
Weighted Average Remaining Contractual Life (years)	3 years 1 month 31 days
Number Exercisable	837,965
$6.00
Number of Warrants	1,945,890
Weighted Average Remaining Contractual Life (years)	3 years 7 months 13 days
Number Exercisable	1,945,890
12.76
Number of Warrants	337,500
Weighted Average Remaining Contractual Life (years)	4 years 6 months
Number Exercisable	337,500
9.96
Number of Warrants	300,000
Weighted Average Remaining Contractual Life (years)	4 years 10 months 13 days
Number Exercisable	300,000

DERIVATIVE FINANCIAL INSTRUMENTS (Detail Textuals) - Warrants - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Derivative [Line Items]
Recorded loss on change in estimated fair value of warrants	$ 23.8	$ 10.1
Derivative
Derivative [Line Items]
Total intrinsic value of derivative warrants outstanding and exercisable	$ 20.1
Closing stock price of stock options outstanding and exercisable	$ 12.24

FAIR VALUE MEASUREMENTS (Details) - USD ($)

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Asset:

$ 9,556,098

$ 132,994

^[1]

27,990,000

25,037,346

^[1]

Recurring basis

Asset:

9,556,098

132,994

27,990,000

25,037,346

Recurring basis | Quoted prices in active markets (Level 1)

1,457,901

11,637,227

Asset:

9,556,098

132,994

Recurring basis | Significant other observable inputs (Level 2)

1,457,901

Asset:

Recurring basis | Significant unobservable inputs (Level 3)

Asset:

27,990,000

25,037,346

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

$ 11,637,227

[1]	(As Restated)

FAIR VALUE MEASUREMENTS (Details 1) - USD ($)

2 Months Ended

7 Months Ended

12 Months Ended

Feb. 14, 2013

Aug. 15, 2013

Aug. 14, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Issuance of common stock warrants

^[1]

$ 25,037,346

8,397,380

Reclassification of derivative liability to equity upon exercise of warrants

(23,364,668)

Change in estimated fair value of liability classified warrants

23,786,072

$ 10,099,926

^[1]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

27,990,000

25,037,346

^[1]

Recurring basis

25,037,346

Recurring basis | Significant unobservable inputs (Level 3)

27,990,000

25,037,346

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Issuance of common stock warrants

25,037,346

$ 5,407,372

$ 9,201,487

$ 328,561

2,531,250

14,937,420

Reclassification of derivative liability to equity upon exercise of warrants

(23,364,668)

Change in estimated fair value of liability classified warrants

23,786,072

10,099,926

$ 27,990,000

$ 25,037,346

[1]	(As Restated)

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset, expected to be settled within one year or normal operating cycle, if longer. Includes assets not subject to a master netting arrangement and not elected to be offset.

FAIR VALUE MEASUREMENTS (Details 2)	12 Months Ended
FAIR VALUE MEASUREMENTS (Details 2)	Dec. 31, 2014 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contractual Payments	$ (1,162,773)
Recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance at December 31, 2014	11,637,227
Recurring basis \| Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance at January 1, 2014
Present value of contractual payments, contingent consideration upon acquisition	12,800,000
Contractual Payments	(1,162,773)
Balance at December 31, 2014	$ 11,637,227

INTANGIBLE ASSETS (Details) - USD ($)

Dec. 31, 2014

Dec. 31, 2013

$ 99,867,384

$ 12,910,130

(5,601,854)

(323,980)

Indefinite-lived intangibles

94,265,530

12,586,150

10,560,355

10,560,355

Product Rights

71,372,000

(3,419,603)

67,952,397

Thiola License

15,049,648

(870,607)

14,179,041

Syntocinon License

^[1]

5,000,000

^[1]

(190,437)

4,809,563

Carbetocin Assets

^[1]

5,567,736

^[1]

(429,493)

5,138,243

Ligand License

2,300,000

2,349,775

(526,578)

(323,980)

1,773,422

$ 2,025,795

Customer Relationships

403,000

(30,890)

372,110

Trade Name

175,000

(134,246)

$ 40,754

[1]	The Company commenced amortization in the second quarter of fiscal 2014 due to a change in estimate.

INTANGIBLE ASSETS (Details 1)	Dec. 31, 2014 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 7,059,019
2016	7,037,493
2017	7,018,265
2018	7,018,265
2019	7,018,265
Total	$ 35,151,307

INTANGIBLE ASSETS (Detail Textuals) - USD ($)

1 Months Ended

3 Months Ended

12 Months Ended

May 29, 2014

Mar. 26, 2014

Jun. 30, 2014

Dec. 31, 2014

Dec. 31, 2013

Dec. 23, 2013

Dec. 12, 2013

$ 94,265,530

$ 12,586,150

Accrued expenses

$ 27,882,995

$ 4,881,434

^[1]

Minimum

10 years

Maximum

Manchester Pharmaceuticals Llc

20 years

Kyalin - Carbetocin Technology Purchase

Total purchase price

$ 73,233,000

Total purchase price

$ 3,000,000

Accrued expenses

$ 1,000,000

Ligand License Agreement

Require To Make Substantial Payments Payable Upon Achievement Of Milestones

2,500,000

$ 105,500,000

Ligand License Agreement | Minimum

Annual Royalty Percentage

15.00%

Ligand License Agreement | Maximum

Annual Royalty Percentage

17.00%

Syntocinon License Agreement | Novartis Pharma AG And Novartis AG

Mission an up-front license fee

$ 5,000,000

Development period

Seven to eight years

Patent exclusivity and/or commercial viability period

Eleven to twelve years

20 years

Carbetocin Asset

Patent exclusivity and/or commercial viability period

Development period

Five to seven years

Five to seven years

10 years

Product rights

Product rights | Manchester Pharmaceuticals Llc

$ 67,952,397

Intangible assets with definite lives

16 years

$ 71,372,000

Trade name

Trade name | Manchester Pharmaceuticals Llc

$ 40,754

Intangible assets with definite lives

1 year

$ 175,000

$ 200,000

Customer relationships

Customer relationships | Manchester Pharmaceuticals Llc

$ 372,110

Intangible assets with definite lives

10 years

$ 403,000

$ 400,000

Thiola License Agreement | Mission Pharmacal Company

Mission an up-front license fee

$ 3,000,000

Present value of guaranteed minimum royalties payable

$ 2,000,000

$ 11,600,000

Present value of guaranteed minimum royalties payable (in percent)

20.00%

Discount rate

11.00%

Capitalized up-front license fee, professional fees, and present value of guaranteed minimum royalties

$ 15,000,000

Thiola License Agreement | Mission Pharmacal Company | Other Current Liabilities

Thiola License Agreement | Mission Pharmacal Company | Other Noncurrent Liabilities

$ 700,000

Compensation related costs

$ 10,900,000

[1]	(As Restated)

INTANGIBLE ASSETS (Detail Textuals 1) - USD ($)	12 Months Ended
INTANGIBLE ASSETS (Detail Textuals 1) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Net book value of amortizable intangible assets	$ 99,867,384	$ 12,910,130
Remaining weighed average period of amortization	14 years 4 days
Research and development expenses
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 1,100,000	0
General and administrative expenses
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 4,500,000	$ 300,000

ACCRUED EXPENSES (Details) - USD ($)

Dec. 31, 2014

Dec. 31, 2013

Payables and Accruals [Abstract]

$ 8,163,076

$ 1,144,983

Severance related costs

5,709,602

Accounting and legal fees

3,719,556

1,035,875

Business development

300,000

License fee

3,000,000

150,000

1,208,097

75,000

Interest

2,318,228

Medicaid

1,353,473

Accrued Offering Costs, Current

2,410,963

1,428,837

746,739

Total accrued expenses

$ 27,882,995

$ 4,881,434

^[1]

[1]	(As Restated)

RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($)		1 Months Ended		3 Months Ended	12 Months Ended
RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($)	Jan. 09, 2015	Feb. 13, 2015	Aug. 31, 2012	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]
Payments made on behalf of affiliate			$ 137,547			$ 137,547
Legal Fees						563,380
Written-off bad debt expense						$ 563,380
Liabilitie settled to series of agreements					$ 2,284,511
Shares issued on behalf of related party					80,800
Cash consideration					2,203,711
Issuance for common stock for investment				47,128
Amount paid at the time of filing				$ 2,284,511
Principal amount on agreement				$ 2,284,511
Interest rates				5.00%
Turing Pharmaceuticals \| Subsequent Event \| Purchase Agreement
Related Party Transaction [Line Items]
Purchase price	$ 1,000,000	$ 1,100,000
Manchester Pharmaceuticals Llc \| Turing Pharmaceuticals \| Subsequent Event \| Purchase Agreement
Related Party Transaction [Line Items]
Purchase price		300,000
Manchester Pharmaceuticals Llc \| Waldun Pharmaceuticals, LLC \| Subsequent Event \| Purchase Agreement
Related Party Transaction [Line Items]
Purchase price		$ 700,000
Common Stock
Related Party Transactions [Abstract]
Shares issued on behalf of related party					$ 1
Related Party Transaction [Line Items]
Shares issued on behalf of related party (in shares)					11,000

NOTES PAYABLE (Details) - $ / shares	12 Months Ended
NOTES PAYABLE (Details) - $ / shares	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Risk free rate		1.39%
Expected volatility	85.00%
Expected life (in years), represents the weighted average period until next liquidity event	3 months 29 days
Note Payable With Detachable Warrants
Debt Instrument [Line Items]
Risk free rate	1.62%
Expected volatility	85.00%
Expected life (in years), represents the weighted average period until next liquidity event	4 months 10 days
Expected dividend yield
Exercise Price	$ 12.76

NOTES PAYABLE (Detail Textuals)

1 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

Nov. 13, 2014

USD ($)

Jan. 09, 2014

Mar. 05, 2012

USD ($)

Jun. 30, 2014

USD ($)

Mar. 26, 2014

USD ($)

Installment

Sep. 30, 2014

USD ($)

Sep. 30, 2013

USD ($)

Sep. 30, 2014

USD ($)

Sep. 30, 2013

USD ($)

Sep. 30, 2012

USD ($)

Dec. 31, 2014

USD ($)

$ / shares

Dec. 31, 2013

USD ($)

^[1]

Dec. 31, 2012

USD ($)

Jan. 12, 2015

USD ($)

Jul. 16, 2014

USD ($)

May 29, 2014

USD ($)

$ / shares

Jun. 30, 2013

Feb. 01, 2012

USD ($)

Number of shares issued to investors | shares

5.00%

Accrued interest

$ 2,318,228

4,705,882

401,047

Finance expense as other expense related to issuance

4,720,780

Note payable

$ 40,485,452

Number of common stock called by warrants | shares

125,000

Grant date fair value of the Warrants recorded as a derivative liability

$ 2,500,000

Total interest expense recognized

$ 2,600,000

$ 0

$ 4,800,000

$ 41,554

$ 7,434,878

$ 46,344

84,087

Credit Agreement

Number of common stock called by warrants | shares

337,500

Exercise price | $ / shares

$ 12.76

Definitive agreement | Amendment No. 3 | Subsequent Event | Athyrium Capital Management, LLC and Perceptive Credit Opportunities Fund, LP

$ 30,000,000

Promissory Notes Payable

$ 30,000

Aggregate payment of debt instrument

15.00%

$ 30,000

Convertible Debt | Note Purchase Agreement

Initial conversion price (in dollars per share) | $ / shares

$ 46,000,000

$ 17.41

Convertible Notes Payable | Credit Agreement

4.50%

Debt discount

$ 3,000,000

Accrued interest

700,000

Aggregate carrying value

$ 43,000,000

Convertible Notes Payable | Credit Agreement | LIBOR Rate

$ 45,000,000

Debt discount

5,200,000

Aggregate carrying value

$ 39,800,000

Convertible Notes Payable | Credit Agreement | Base Rate

10.00%

Note Payable With Detachable Warrants | Credit Agreement

9.00%

Note Payable With Detachable Warrants | Credit Agreement | Amendment No. 1 | Clinuvel Pharmaceuticals Limited | Maximum

$ 45,000,000

Maximum permitted investment amount

$ 10,000,000

Note Payable With Detachable Warrants | Credit Agreement | Amendment No. 2 | Clinuvel Pharmaceuticals Limited

Number of common stock called by warrants | shares

300,000

Value of common stock exercisable by warrants

$ 2,200,000

Note Payable With Detachable Warrants | Credit Agreement | LIBOR Rate

Note Payable With Detachable Warrants | Credit Agreement | Base Rate

10.00%

9.00%

Secured promissory note

Consecutive payment of notes payable

$ 900,000

Effective interest rate

12.00%

$ 15,236

Aggregate payment of debt instrument

25,000

Accrued interest

$ 9,764

Remaining principal balance of note

$ 884,764

Manchester Pharmaceuticals Llc

Manchester Pharmaceuticals Llc | Promissory Notes Payable

$ 33,000,000

Number of installments | Installment

$ 33,000,000

Present value of debt

$ 31,300,000

Effective interest rate

11.00%

Consecutive payment of notes payable

$ 11,000,000

Accelerated interest expense

$ 1,700,000

[1]	(As Restated)

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2014 USD ($)
Operating Leases
2015	$ 1,451,043
2016	1,121,584
2017
2018
2019
Thereafter
Total	2,572,627
Other
2015	436,980
2016	436,980
2017	436,980
2018	436,980
2019	286,980
Thereafter	1,147,920
Total	3,182,820
Total
2015	1,888,023
2016	1,558,564
2017	436,980
2018	436,980
2019	286,980
Thereafter	1,147,920
Total	$ 5,755,447

COMMITMENTS AND CONTINGENCIES (Detail Textuals) - USD ($)						1 Months Ended		12 Months Ended
	Sep. 08, 2014	Jun. 13, 2014	Apr. 10, 2014	Oct. 08, 2013	Oct. 01, 2013	Jul. 31, 2014	Feb. 28, 2014	Dec. 31, 2014	Dec. 31, 2013	Mar. 28, 2013
Commitment And Contingency [Line Items]
Damages sought		$ 2,500,000						$ 1,750,000
Short swing profits								600,000
Expenses incurred for termination of agreeements									$ 1,000,000
Chun Yi Huang ("Huang")
Commitment And Contingency [Line Items]
Claims of past due salary and benefits										$ 36,387
Leases and Sublease Agreements \| MASSACHUSETTS
Commitment And Contingency [Line Items]
Annual base rent					$ 216,000
Loss on exiting lease						$ 800,000		248,417
Leases and Sublease Agreements \| CALIFORNIA
Commitment And Contingency [Line Items]
Annual base rent	$ 540,000						$ 110,000
Loss on exiting lease								$ 170,811
Leases and Sublease Agreements \| NEW YORK
Commitment And Contingency [Line Items]
Annual base rent			$ 537,264	$ 225,000

COMMITMENTS AND CONTINGENCIES (Detail Textuals 1) - USD ($)					1 Months Ended						12 Months Ended		34 Months Ended	132 Months Ended
	Dec. 01, 2013	Nov. 08, 2013	Nov. 01, 2011	Aug. 15, 2011	Jun. 30, 2014	Mar. 30, 2014	Dec. 31, 2013	Oct. 26, 2013	Feb. 15, 2013	Aug. 25, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2013
Commitment And Contingency [Line Items]
VAlue of shares issued												$ 4,400,000
Consultant Agreement \| Consultant \| Agreement Date August 15, 2011
Commitment And Contingency [Line Items]
Initial term of agreement				1 year
Amount of fees paid				$ 37,500							$ 153,000	150,000	$ 378,500
Number of shares issued				25,000
VAlue of shares issued				$ 100,000
Description of shares vested				vests over twelve (12) quarters so long as the agreement remains in effect
Amount of fee payable											0	155,000	0
Consultant Agreement \| Consultant \| Agreement Date November 1, 2011
Commitment And Contingency [Line Items]
Amount of fees paid											195,000	210,000	445,000
Number of shares issued			120,000
VAlue of shares issued			$ 480,000
Description of shares vested			vest in over twelve (12) calendar quarters commencing December 31, 2011
Consultant Agreement \| Consultant \| Agreement Date October 26, 2013
Commitment And Contingency [Line Items]
Amount of fees paid								$ 26,666			780,000	780,000	780,000
Number of shares issued					50,000	50,000	100,000	200,000
Consultant Agreement \| Consultant \| Agreement Date December 1, 2013
Commitment And Contingency [Line Items]
Amount of fees paid	$ 26,666										780,000		780,000
Number of shares issued	200,000				50,000	50,000	100,000
Consultant Agreement \| Consultant \| Agreement Date August 25, 2011
Commitment And Contingency [Line Items]
Initial term of agreement										1 year
Amount of fees paid										$ 50,000	$ 225,000	200,000	525,000
Number of shares issued										145,000	34,575
VAlue of shares issued										$ 580,000
Description of shares vested										vested over twelve (12) quarters so long as the agreements remained in effect
Consultant Agreement \| Consultant \| Agreement Date November 1, 2011 Two
Commitment And Contingency [Line Items]
Initial term of agreement			1 year
Amount of fees paid			$ 50,000									200,000	525,000	$ 225,000
Number of shares issued			145,000
VAlue of shares issued			$ 580,000
Description of shares vested			vested over twelve (12) quarters so long as the agreements remained in effect
Consultant Agreement \| Consultant \| Agreement Date February 15, 2013
Commitment And Contingency [Line Items]
Amount of fees paid											$ 52,500	0	52,500
Number of shares issued									12,500
VAlue of shares issued									$ 52,500
Consultant Agreement \| Consultant \| Agreement Date November 8, 2013
Commitment And Contingency [Line Items]
Amount of fees paid		$ 15,000
Consultant Agreement \| Consultant \| Agreement Date December 31, 2013
Commitment And Contingency [Line Items]
Amount of fees paid							$ 50,000				$ 105,000	$ 0	$ 105,000
Number of shares issued							15,000

STOCKHOLDERS' DEFICIT (Details) - Stock Options	12 Months Ended
STOCKHOLDERS' DEFICIT (Details) - Stock Options	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free rate	1.55%	1.51%
Expected volatility	85.00%	102.00%
Expected life (in years)	5 years 9 months 22 days	5 years 9 months 22 days
Expected dividend yield

STOCKHOLDERS' DEFICIT (Details 1) - USD ($)		12 Months Ended
STOCKHOLDERS' DEFICIT (Details 1) - USD ($)	Jan. 09, 2014	Dec. 31, 2014	Dec. 31, 2013
Shares
Granted	3,000,000
Stock Options
Shares
Outstanding, Beginning Balance	1,721,000	1,721,000
Granted		4,168,000	1,721,000
Forfeited and expired		(977,625)
Exercised		(19,167)
Outstanding, Ending Balance		4,892,208	1,721,000
Exercisable as of December 31, 2014		1,225,833	172,667
Weighted Average Exercise Price
Outstanding, Beginning Balance	$ 7.66	$ 7.66
Granted		12.11	$ 7.66
Forfeited and expired		10.27
Exercised		5.16
Outstanding, Ending Balance		10.93	7.66
Exercisable as of December 31, 2014		$ 9.73	$ 7.85
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Remaining Contractual Term, Outstanding (in years)		8 years 6 months 25 days	9 years 10 months 21 days
Remaining Contractual Term, Exercisable		7 years 11 months 16 days	9 years 10 months 10 days
Outstanding, Aggregate Intrinsic Value		$ 8,353,000	$ 172,000
Exercisable, Aggregate Intrinsic Value		$ 3,395,000	$ 14,333

STOCKHOLDERS' DEFICIT (Details 2) - USD ($) $ in Thousands	12 Months Ended
STOCKHOLDERS' DEFICIT (Details 2) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 15,900	$ 2,909
Selling, general and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	10,940	2,650
Research and development expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 4,960	$ 259

STOCKHOLDERS' DEFICIT (Details 3) - Restricted shares - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Number of shares
Unvested	268,642	267,768
Granted	926,000	335,000
Vested	(358,069)	(275,793)
Forfeited/cancelled	(144,905)	(58,333)
Unvested	691,668	268,642
Weighted Average Grant Date Fair Value
Unvested	$ 6.44	$ 3.20
Granted	11.42	6.24
Vested	8.96	5.44
Forfeited/cancelled	11.16	4.00
Unvested	$ 10.83	$ 6.44

STOCKHOLDERS DEFICIT (Detail Textuals) - USD ($)

1 Months Ended

12 Months Ended

Jan. 09, 2014

Aug. 15, 2013

Jan. 04, 2013

Jun. 30, 2014

Jan. 31, 2014

Aug. 31, 2013

Feb. 28, 2013

Feb. 14, 2013

Jan. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Equity [Abstract]

Aggregate purchase price of treasury stock

$ 3,214,608

$ 957,272

^[1]

Treasury stock, shares

379,591

130,790

Stockholders Equity [Line Items]

Common stock, shares authorized

100,000,000

Common stock, par value (in dollars per share)

$ 0.0001

Common stock per shares are entitled to vote

1 vote

Preferred stock, par value (in dollars per share)

$ 0.001

Preferred Stock, shares authorized

20,000,000

Number of common stock called by warrants

125,000

Derivative liability

$ 27,990,000

$ 25,037,346

^[1]

Number of common stock issued

4,705,882

401,047

Price per common share

$ 8.50

$ 4.50

$ 3.00

Net proceeds from the offering

$ 36,800,000

$ 40,000,000

$ 30,936,748

^[1]

$ 3,475,703

Underwriting fees and other offering costs

$ 3,200,000

$ 3,164,990

$ 2,780,563

$ 928,986

$ 0

Issued

3,000,000

Private Placement | Roth Capital Partners

Stockholders Equity [Line Items]

Payments for Fees

$ 624,033

Number of common stock called by warrants

2,765,702

319,823

1,597,969

Exercise price

$ 6.00

$ 3.60

Derivative liability

$ 9,200,000

$ 900,000

$ 4,500,000

Proceeds from issuance of private placement

$ 24,900,000

$ 9,100,000

Number of common stock issued

5,531,401

3,045,929

Purchase price of common stock issued

$ 4.50

$ 3.00

Series A Preferred Stock

Stockholders Equity [Line Items]

Preferred stock, par value (in dollars per share)

$ 0.001

Preferred Stock, shares authorized

1,000

[1]	(As Restated)

STOCKHOLDERS DEFICIT (Detail Textuals 1) - USD ($)		6 Months Ended	12 Months Ended
STOCKHOLDERS DEFICIT (Detail Textuals 1) - USD ($)	Jan. 09, 2014	Aug. 18, 2014	Dec. 31, 2014	Dec. 31, 2013	Jan. 31, 2014	Aug. 31, 2013	Feb. 28, 2013	Jan. 31, 2013
Stockholders Equity [Line Items]
Granted	3,000,000
Number of common stock called by warrants			125,000
Proceeds exercise of warrants			$ 8,397,380
Issuance of common stock in connection with January 2013 private placement at $3.00 per share, net of fees of $0				$ 816,664
Issuance of common stock, per share amount	$ 8.50				$ 8.50	$ 4.50	$ 3.00	$ 3.00
Common Stock
Stockholders Equity [Line Items]
Number of shares repurchased			248,801
Value of shares repurchased			$ 2,300,000
Issuance of common stock in connection with January 2013 private placement at $3.00 per share, net of fees of $0				$ 27
Issuance of common stock in connection with January 2013 private placement at $3.00 per share, net of fees of $0 (in shares)				272,221
Issuance of stock options to purchase shares		1,928,000
Stock Options
Stockholders Equity [Line Items]
Granted			4,168,000	1,721,000
Weighted average grant date fair value of options			$ 8.56	$ 6.03
Aggregate intrinsic value, exercisable			$ 3,395,000	$ 14,333
Closing stock price of stock options outstanding and exercisable				$ 7
Unrecognized compensation cost associated with unvested options			$ 31,800,000	$ 9,200,000
Weighted average remaining vesting period			2 years 1 month 17 days	2 years 8 months 12 days
Aggregate intrinsic value for outstanding options			$ 12.24
Warrants
Stockholders Equity [Line Items]
Number of common stock called by warrants			1,947,377
Proceeds exercise of warrants			$ 8,400,000
Reclassification of derivative liability as equity			$ 23,400,000
Restricted shares
Stockholders Equity [Line Items]
Weighted average remaining vesting period			2 years 7 months 13 days
Unrecognized compensation cost related to restricted shares granted			$ 5,800,000
Issuance of stock options to purchase shares		230,000

LOSS PER SHARE (Details) - USD ($)

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

^[1]

Jun. 30, 2014

^[1]

Mar. 31, 2014

^[1]

Dec. 31, 2013

^[1]

Sep. 30, 2013

^[1]

Jun. 30, 2013

^[1]

Mar. 31, 2013

^[1]

Dec. 31, 2014

Dec. 31, 2013

^[1]

Dec. 31, 2012

Numerator

Basic and diluted weighted average number of common shares (in shares)

$ (29,027,160)

$ (17,979,793)

$ 11,804,738

$ (75,735,647)

$ (12,822,275)

$ (12,011,174)

$ (4,923,513)

$ (4,867,922)

$ (110,937,862)

$ (34,624,884)

$ (30,343,856)

Denominator

25,057,509

14,205,264

3,662,114

Net loss per share - basic and diluted (in dollars per shares)

$ (0.70)

$ (0.78)

$ (0.40)

$ (0.46)

$ (4.43)

$ (2.44)

$ (8.29)

[1]	(As Restated)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Change in valuation allowance

LOSS PER SHARE (Detail Textuals) - shares	12 Months Ended
LOSS PER SHARE (Detail Textuals) - shares	Dec. 31, 2014	Dec. 31, 2013
Exercise of options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Aggregate number of shares issuable not included in dilutive earnings (loss) per share	1,132,500	172,667
Conversion of debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Aggregate number of shares issuable not included in dilutive earnings (loss) per share	0
Exercise of warrants not included in dilutive loss per share
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Aggregate number of shares issuable not included in dilutive earnings (loss) per share	3,083,855	4,462,426

INCOME TAXES (Details) - USD ($)

3 Months Ended

12 Months Ended

Jun. 30, 2014

^[1]

Mar. 31, 2014

^[1]

Dec. 31, 2013

^[1]

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Current

Federal

State

Total Current Income Tax

Deferred

Federal

(1,885)

(6,293)

(1,173)

State

(574)

(3,435)

(733)

Total

(2,459)

(9,728)

(1,906)

9,804

(1,906)

Income tax expense (benefit)

$ (2,525,124)

$ 65,376

$ 75,775

$ (2,459,748)

$ 75,775

^[1]

[1]	(As Restated)

INCOME TAXES (Details 1)	12 Months Ended
INCOME TAXES (Details 1)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Statutory rate - federal	(35.00%)	(35.00%)	(35.00%)
State taxes, net of federal benefit	(6.77%)	(6.70%)	(1.81%)
Change in FV of derivative liability (warrants)	7.40%	10.46%	0.00%
Stock Based Compensation related to profits interest	5.51%	2.30%	9.52%
Other	0.00%	0.17%	1.62%
Partnership losses preceding conversion	0.00%	0.00%	19.39%
Change in valuation allowance	26.63%	29.00%	6.28%
Income tax provision (benefit)	(2.23%)	0.23%	0.00%

INCOME TAXES (Details 2) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Net operating loss and capital loss carryforward	$ 42,280	$ 11,832
Intangible assets	(7,830)	(2,999)
Other	1,427	610
Valuation allowance	(36,018)	(12,044)
Total deferred tax liability	$ (141)	$ (2,601)

INCOME TAXES (Detail Textuals) - USD ($)

3 Months Ended

12 Months Ended

18 Months Ended

Jun. 30, 2014

^[1]

Mar. 31, 2014

^[1]

Dec. 31, 2013

^[1]

Dec. 31, 2014

Dec. 31, 2013

^[1]

Dec. 31, 2012

Sep. 20, 2012

Operating Loss Carry forwards [Line Items]

Income tax expense (benefit)

$ (2,525,124)

$ 65,376

$ 75,775

$ (2,459,748)

$ 75,775

Increased amount of intangible asset

2,500,000

Increased amount of deferred tax liability

2,500,000

Deferred tax liability and income tax expense recorded related to technology license

$ 1,079,000

U.S. federal

Operating Loss Carry forwards [Line Items]

Net operating loss carryforwards

93,100,000

State

Operating Loss Carry forwards [Line Items]

Net operating loss carryforwards

$ 87,600,000

[1]	(As Restated)

SEVERANCE AGREEMENTS (Detail Textuals) - USD ($)	1 Months Ended			3 Months Ended	12 Months Ended
SEVERANCE AGREEMENTS (Detail Textuals) - USD ($)	Feb. 13, 2015	Oct. 31, 2014	Sep. 15, 2014	Dec. 31, 2014	Dec. 31, 2014	Oct. 13, 2014	Sep. 30, 2014
Severance Agreement [Line Items]
Accrued severance expenses				$ 5,709,602	$ 5,709,602
Turing Pharmaceuticals
Severance Agreement [Line Items]
Upfront payment		$ 3,000,000
Liabilities expected to be assumed		3,000,000
Severance expense and accrued severance expense		$ 2,900,000
Mr. Shkreli
Severance Agreement [Line Items]
Accrued severance expenses				2,900,000	$ 2,900,000
Separation Agreement \| Marc Panoff
Severance Agreement [Line Items]
Percentage of target bonus					100.00%
Accrued severance expenses							$ 90,865
Separation Agreement \| Marc Panoff \| Selling, General and Administrative Expenses
Severance Agreement [Line Items]
Severance expense				$ 1,100,000
Separation Agreement \| Marc Panoff \| Restricted Stock
Severance Agreement [Line Items]
Number of accelerated vesting shares of restricted common stock			81,333
Separation Agreement \| Mr. Shkreli
Severance Agreement [Line Items]
Severance expense					$ 4,500,000
Cash severance, unpaid bonus and health insurance coverage compensation expense						$ 481,076
Separation Agreement \| Mr. Shkreli \| Stock options
Severance Agreement [Line Items]
Severance expense related to accelerated vesting of restricted shares						$ 1,100,000
Subsequent Event \| Manchester Pharmaceuticals Llc
Severance Agreement [Line Items]
Purchase price	$ 700,000
Subsequent Event \| Manchester Pharmaceuticals Llc \| Turing Pharmaceuticals
Severance Agreement [Line Items]
Purchase price	$ 300,000

SEVERANCE AGREEMENTS (Detail Textuals 1) - Subsequent Event - Purchase Agreement - USD ($) $ in Millions		1 Months Ended
	Jan. 09, 2015	Feb. 13, 2015
Turing Pharmaceuticals
Severance Agreement [Line Items]
Sold assets	$ 1.0
Purchase price of inventory		$ 1.1
Waldun Pharmaceuticals, LLC
Severance Agreement [Line Items]
Sold assets		0.7
Purchase price of inventory		$ 0.3

SUBSEQUENT EVENTS (Detail Textuals) - Subsequent Event - Definitive agreement $ in Millions	Jan. 12, 2015 USD ($)
Athyrium Capital Management, LLC and Perceptive Credit Opportunities Fund, LP \| Amendment No. 3
Subsequent Event [Line Items]
Principal amount of promissory note	$ 30
Maximum \| Asklepion Pharmaceuticals, Llc
Subsequent Event [Line Items]
Upfront payment	5
Milestones based on FDA approval and net product sales	$ 73

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($)

3 Months Ended

12 Months Ended

Dec. 31, 2014

Sep. 30, 2014

^[1]

Jun. 30, 2014

^[1]

Mar. 31, 2014

^[1]

Dec. 31, 2013

^[1]

Sep. 30, 2013

^[1]

Jun. 30, 2013

^[1]

Mar. 31, 2013

^[1]

Dec. 31, 2014

Dec. 31, 2013

^[1]

Dec. 31, 2012

Quarterly Financial Information Disclosure [Abstract]

Net product sales

$ 14,084,988

$ 8,348,583

$ 5,741,734

$ 27,900

$ 28,203,205

Total operating expenses

32,782,048

30,215,615

22,923,666

22,089,569

$ 11,872,201

$ 6,030,861

$ 4,984,902

$ 1,885,484

108,010,898

$ 24,773,448

$ 30,257,017