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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2015	Aug. 04, 2015
Document And Entity Information
Entity Registrant Name	Retrophin, Inc.
Entity Central Index Key	0001438533
Trading Symbol	rtrx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		35,746,037
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 127,746	$ 18,204
Marketable securities	5,862	9,556
Accounts receivable, net	11,467	7,960
Inventory, net	2,005	801
Pediatric priority review voucher-held for sale	96,250
Prepaid expenses and other current assets	1,407	813
Total current assets	244,737	37,334
Property and equipment, net	509	671
Other asset	2,016	2,265
Intangible assets, net	168,251	94,265
Goodwill	936	936
Deferred tax asset	8,691
Total assets	425,140	135,471
Current liabilities:
Deferred technology purchase liability	1,000	1,000
Accounts payable	4,778	7,124
Accrued expenses	20,328	27,883
Other liability	897	938
Acquisition-related contingent consideration	4,363	2,118
Derivative financial instruments, warrants	91,200	27,990
Deferred income tax liability	8,691
Note payable	41,125	40,486
Total current liabilities	172,382	107,539
Convertible debt	43,593	43,288
Other liability	12,149	12,234
Acquisition-related contingent consideration, less current portion	46,235	9,520
Deferred income tax liability, net		141
Total liabilities	274,359	172,722
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock $0.001 par value; 20,000,000 shares authorized; 0 issued and outstanding as of June 30, 2015 and December 31, 2014
Common stock $0.0001 par value; 100,000,000 shares authorized; 35,072,757 and 26,428,071 issued and 35,072,757 and 26,048,480 outstanding as of June 30, 2015 and December 31, 2014, respectively	3	3
Additional paid-in capital	318,280	140,851
Treasury stock, at cost, 0 and 379,591 shares as of June 30, 2015 and December 31, 2014, respectively		(3,215)
Accumulated deficit	(168,262)	(179,175)
Accumulated other comprehensive income	760	4,285
Total stockholders' equity (deficit)	150,781	(37,251)
Total liabilities and stockholders' equity (deficit)	$ 425,140	$ 135,471

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
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	35,072,757	26,428,071
Common stock shares outstanding	35,072,757	26,048,480
Treasury stock shares (In shares)	0	379,591

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net product sales	$ 24,068	$ 5,742	$ 41,440	$ 5,770
Operating expenses:
Cost of goods sold	637	35	912	36
Research and development	10,563	13,310	20,910	20,253
Selling, general and administrative	19,692	9,579	34,547	24,725
Total operating expenses	30,892	22,924	56,369	45,014
Operating loss	(6,824)	(17,182)	(14,929)	(39,244)
Other income (expenses), net:
Litigation settlement gain	15,500		15,500
Other income (expense), net	402	370	229	375
Interest expense, net	(2,922)	(2,179)	(6,720)	(2,179)
Early payment penalty	(2,250)		(2,250)
Finance expense		(4,708)	(600)	(4,708)
Change in fair value of derivative instruments	(29,418)	32,979	(66,171)	(20,635)
Bargain Purchase Gain			49,063
Total other income (expense), net	(18,688)	26,462	(10,949)	(27,147)
Income (Loss) before provision for income taxes	(25,512)	9,280	(25,878)	(66,391)
Income tax benefit (provision)	(15)	2,525	40,006	2,460
Net income (loss)	$ (25,527)	$ 11,805	$ 14,128	$ (63,931)
Net income (loss) per common share, basic (in dollars per share)	$ (0.73)	$ 0.46	$ 0.45	$ (2.61)
Net income (loss) per common share, diluted (in dollars per share)	$ (0.73)	$ (0.77)	$ 0.44	$ (2.61)
Weighted average common shares outstanding, basic	34,957,134	25,635,277	31,079,053	24,491,477
Weighted average common shares outstanding, diluted	34,957,134	27,326,442	34,825,722	24,491,477
Comprehensive income (loss):
Net income (loss)	$ (25,527)	$ 11,805	$ 14,128	$ (63,931)
Foreign currency translation	(30)		(7)
Unrealized gain (loss) on marketable securities	(298)	(103)	(3,519)	519
Comprehensive income (loss)	$ (25,855)	$ 11,702	$ 10,602	$ (63,412)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows From Operating Activities:
Net income (loss)	$ 14,128	$ (63,931)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	5,536	1,693
Realized gain on marketable securities	(107)	(375)
Gain upon divestiture of asset	(200)
Deferred income tax benefit	(40,021)
Amortization of deferred financing costs	65	4
Amortization of debt discount	945	56
Lease liability	(125)
Settlement expense		5,770
Bargain purchase gain	(49,063)
Share based compensation	10,567	6,033
Derivative financial instruments, warrants, issued, recorded in interest expense	1,050
Change in estimated fair value of derivative financial instruments, warrants	66,171	20,635
Non-cash financing cost		4,708
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(3,508)	(1,601)
Inventory	(640)	21
Prepaid expenses and other assets	138	(814)
Accounts payable and accrued expenses	(4,370)	6,546
Net cash provided by (used in) operating activities	566	(21,255)
Cash Flows From Investing Activities:
Purchase of fixed assets	(29)	(424)
Purchase of intangible assets	(1,396)	(3,301)
Proceeds from the sale of marketable securities	282	1,885
Purchase of marketable securities		(4,887)
Proceeds from securities sold, not yet purchased		4,462
Securities sold, not yet purchased		(5,310)
Cash paid for investment		(400)
Security deposits		(45)
Cash received upon divestiture of asset	3,311
Cash paid upon acquisition, net of cash acquired	(33,430)	(29,150)
Net cash used in investing activities	(31,262)	(37,170)
Cash Flows From Financing Activities:
Payment of acquisition-related contingent consideration	(2,444)
Payment of guaranteed minimum royalty	(527)
Proceeds from the exercise of warrants	586	8,337
Proceeds from the exercise of stock options	2,669
Purchase of treasury stock, at cost		(2,257)
Proceeds received from issuance of common stock	149,454	36,835
Financing costs from issuance of common stock	(9,500)
Proceeds from credit agreement		38,752
Proceeds from Note Purchase Agreement		41,924
Repayment of Manchester Note payable		(31,283)
Net cash provided by financing activities	140,238	92,308
Net increase in cash	109,542	33,883
Cash, beginning of year	18,204	5,997
Cash, end of period	127,746	39,880
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	4,818	1,833
Non-cash investing and financing activities:
Accrued royalty in excess of minimum payable to the sellers of Thiola	2,875
Reclassification of derivative liability to equity due to exercise of warrants	4,011	23,365
Present value of contingent consideration payable to sellers of Manchester Pharmaceuticals LLC		12,800
Present value of guaranteed minimum royalty payable to sellers of Thiola		11,850
Note payable entered into upon consummation of Manchester Pharmaceuticals LLC		31,283
Present value of contingent consideration payable to sellers of Asklepion Pharmaceuticals LLC	42,010
Shares issued -Cholbam® acquisition	15,844
Unrealized gain (loss) on marketable securities	$ (3,519)	519
Cost incurred related to debt financing not yet paid		1,882
Unrealized loss on securities sold, not yet purchased		$ (1,340)

DESCRIPTION OF BUSINESS

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements Abstract

DESCRIPTION OF BUSINESS

NOTE 1. DESCRIPTION OF BUSINESS

Organization and Description of Business

In this Quarterly Report on Form 10-Q, unless the context requires otherwise, the terms “we”, “our”, “us”, “Retrophin” and the “Company” refer to Retrophin, Inc., a Delaware corporation, as well as our direct and indirect subsidiaries. We are a fully integrated biopharmaceutical company with approximately 127 employees 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.

We currently sell the following three products:

Chenodal® (chenodeoxycholic acid) 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 cerebrotendinous xanthomatosis (“CTX”) patients for more than three decades and the Company is currently pursuing adding this indication to the label.

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

Cholbam® (cholic acid) is approved in the United States for the treatment of bile acid synthesis disorders due to single enzyme defects and is further indicated for adjunctive treatment of patients with peroxisomal disorders.

Sparsentan, also known as RE-021, is an investigational therapeutic agent which acts as both a potent angiotensin receptor blocker (“ARB”), as well as a selective endothelin receptor antagonist (“ERA”), with in vitro selectivity toward endothelin receptor type A. We are developing sparsentan as a treatment for focal segmental glomerulosclerosis (“FSGS”), which is a leading cause of end-stage renal disease. We are currently enrolling patients for the DUET Phase 2 clinical study of sparsentan for the treatment of FSGS. Based on the robustness of the data obtained in the DUET study, we may be able to support an application for accelerated approval for sparsentan on the basis of proteinuria as a surrogate endpoint. In the first quarter of 2015, sparsentan received orphan drug designation.

RE-024, a novel small molecule, is being developed 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 parkinsonism, dystonia, and other severe systemic manifestations. 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 filed a U.S. IND for RE-024 with the U.S. Food and Drug Administration (“FDA”) in the first quarter of 2015 to support the commencement of a Company-sponsored Phase 1 study, which initiated in April 2015. RE-024 was granted orphan drug designation from the FDA on May 5, 2015 and was granted fast track designation on June 4, 2015.

RE-034 (Tetracosactide Zinc). RE-034 is a synthetic hormone analog of the first 24 amino acids of the 39 amino acids contained in adrenocorticotropic hormone (“ACTH”) formulated using a novel process by the Company. RE-034 exhibits similar physiological actions as endogenous ACTH by binding to melanocortin receptors, resulting in its anti-inflammatory and immunomodulatory effects. The Company has successfully formulated and manufactured RE-034 at proof-of-concept scale using a novel formulation process that allows modulation of the release of the active ingredient from the site of administration. The Company intends to continue preclinical development of RE-034 to enable multiple strategic options.

Voucher Sale

The FDA granted Asklepion Pharmaceuticals, LLC (“Asklepion”) a Rare Pediatric Disease Priority Review Voucher ("Pediatric PRV"), awarded to encourage development of new drugs and biologics for the prevention and treatment of rare pediatric diseases. This Pediatric PRV is transferable and provides the bearer with FDA priority review classification for a new drug application. The Pediatric PRV was transferred to Retrophin under the terms of the asset purchase agreement between the Company and Asklepion dated January 12, 2015 pursuant to which the Company acquired Cholbam®.

On July 2, 2015, the Company closed the sale and transferred title of the Pediatric PRV to Sanofi for $245 million; at closing the Company received $150.0 million, and $47.5 million is due on the first and second anniversaries of the closing. The asset value of the Pediatric PRV recorded in the financial statements as of June 30, 2015 is $96.3 million. The incremental gain resulting from the sale of the Pediatric PRV will be recorded in the quarter ending September 30, 2015.

On June 11, 2015, the General Court of the European Union annulled the marketing authorization (“MA”) for Kolbam (bottled and branded name of Cholbam in Europe) in recognition of the orphan market exclusivity afforded to Orphacol. This was the result of a lawsuit brought by a competitor product against the awarding of the MA for Kolbam by the EU Commission, citing similarities in the efficacy statements in a section of the labelling, and the competitor claimed circumvention of market exclusivity attached to Orphacol. The competitor product received its MA and orphan designation before Kolbam’s MA, which purportedly entitled it to 10 years of market exclusivity. The EU Court ruled in favor of the competitor, and Kolbam’s MA was withdrawn. The withdrawal of the MA was solely based on market exclusivity, and not for safety or efficacy reasons. At the time of the EU Court’s ruling, the product was launched in one EU country, France.

Kolbam is currently available in Europe only through nationally approved Named Patient Programs.

The Company’s management is still considering the best course of action to address the ruling. Kolbam sales are currently in line with the Company’s projections at the time of the acquisition and therefore the Company does not believe an impairment of the intangible assets exists.

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	NOTE 2. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of the Company should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on March 11, 2015, and amended on March 13, 2015. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements, but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The December 31, 2014 balance sheet information was derived from the audited financial statements as of that date.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Principles of Consolidation

The unaudited condensed consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with GAAP. All intercompany accounts and transactions have been eliminated in consolidation.

Restatement of Prior Quarters

We held a Special Meeting of Stockholders on February 3, 2015, at which our 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”). Our Form 10-Q for the three and six months ended June 30, 2014 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 at the Special Meeting of Stockholders on February 3, 2015. In addition, our Form 10-Q for the three and six months ended June 30, 2014 contained errors related to certain consulting agreements entered into by the Company, pursuant to which an expense and a settlement liability related to the entire amount of the stock to be issued under such consulting agreements should have been taken and revalued at each reporting period based on changes in the Company’s stock price, until the stock had been entirely issued. We believe that the errors in the Form 10-Q for the three and six months ended June 30, 2014 do not cause the financial statements included therein to be misleading, and therefore such financial statements can still be relied upon. However, we have corrected such errors, including any related disclosures, in this Form 10-Q, and will restate future quarters to correct such errors, as applicable. The impact for the three and six months ended June 30, 2014, was a decrease to operating expenses of $3.3 million, and an increase to operating expenses of $1.8 million, respectively, and an increase to net income of $3.3 million, and an increase to net loss of $1.8 million, respectively.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. On July 9, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date. Early adoption of ASU 2014-09 is permitted but not before the original effective date (annual periods beginning after December 15, 2016.) We are currently evaluating the impact, if any, the adoption of this standard will have on our consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. This accounting update will have an immaterial impact to the financial statements and the Company has chosen not to early adopt this standard.

In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This standard amends Topic 330, Inventory, which currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. When this standard is adopted, an entity should measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We are currently evaluating the impact, if any, the adoption of this standard will have on our consolidated financial statements.

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 4. INCOME TAXES The Company follows FASB 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. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The 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 FASB 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. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of June 30, 2015 and December 31, 2014, the Company had recorded an indemnification asset with a corresponding liability in the amount of $1.5 million, respectively, for an uncertain tax position related to the acquisition of Manchester Pharmaceuticals, LLC. The Company is indemnified with respect to the liability and has recorded an indemnification asset on the balance sheet. In the first quarter of 2015, in connection with the acquisition of Cholbam®, the Company recorded a deferred tax liability of $39.9 million. Based on the fact that the reversal of the deferred tax liability is viewed as a source of income pursuant to ASC 740, the Company was able to reduce its existing valuation allowance by $39.9 million in the first quarter. The deferred tax liabilities supporting the ability to realize the deferred tax assets in the above acquisition will reverse in the same period, are in the same jurisdiction and are of the same character as the temporary differences that gave rise to those deferred tax assets.

BUSINESS ACQUISITION

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

BUSINESS ACQUISITION

NOTE 5. BUSINESS ACQUISITION

Acquisition of Cholic Acid

On January 12, 2015, the Company announced the signing of a definitive agreement under which it acquired the exclusive right to purchase from Asklepion, all worldwide rights, titles, and ownership of Cholbam® (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 agreed to pay milestones based on FDA approval and net product sales, plus tiered royalties on future net sales of Cholbam®.

On March 18, 2015, the Company announced that the FDA has approved Cholbam® capsules, the first FDA approved treatment for pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects, and for patients with peroxisomal disorders (including Zellweger spectrum disorders). As a result of the approval, Retrophin exercised its right to purchase from Asklepion all worldwide rights, titles, and ownership of Cholbam® and related assets. The FDA also granted Asklepion a Pediatric PRV, awarded to encourage development of new drugs and biologics for the prevention and treatment of rare pediatric diseases. This Pediatric PRV is transferable and provides the bearer with FDA priority review classification for a new drug application. The Pediatric PRV was transferred to Retrophin under the original terms of the agreement with Asklepion.

On March 31, 2015, the Company completed its acquisition from Asklepion of all worldwide rights, titles and ownership of Cholbam®, including all related contracts, data assets, intellectual property, regulatory assets and the Pediatric PRV, in exchange for a cash payment of $28.4 million, in addition to approximately 661,279 shares of the Company’s common stock (initially valued at $9 million at the time of the Purchase Agreement, and $15.8 million at the time of acquisition completion date). The Company may also be required to pay contingent consideration consisting of milestones and tiered royalties with a present value of $42.0 million.

The asset value of the Pediatric PRV is fair valued at $96.3 million. In this valuation process, we considered various factors which included data from recent sales of similar vouchers. The consideration paid to Asklepion did not contemplate the Pediatric PRV because the issuance of a Pediatric PRV is extremely rare. Therefore when the FDA granted the Pediatric PRV with the Cholbam® approval, a gain resulted.

The acquisition was accounted for under the purchase method of accounting in accordance with ASC 805. The fair value of assets acquired and liabilities assumed was based upon valuation and the Company’s estimates. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from acquired product rights-Cholbam®, Pediatric PRV, trade names and developed technologies, 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 price allocation of $91.3 million as of the Asklepion closing date of March 31, 2015 was as follows:

	Amount (in thousands)
Cash paid upon consummation	$	33,430
Present value of contingent consideration		42,010
Fair Value of 661,279 shares issued to Asklepion		15,844
Total Purchase Price	$	91,284

Fair Value of Assets Acquired
Acquired product rights-Cholbam® (Intangible Asset)	$	83,200
Pediatric Priority Review Voucher		96,250
Inventory		777
Total Allocation of Purchase Price	$	180,227
Bargain Purchase Gain		(88,943	)
Total Purchase Price	$	91,284

The bargain purchase gain of $88.9 million is shown net of tax of $39.9 million for a net gain of $49.1 million on the consolidated statements of operations.

Unaudited pro forma information for the transaction completed in the first quarter is not presented, because the effects of such transaction is considered immaterial to the Company.

- Definition

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).

+ References

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-Name Accounting Standards Codification
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-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

MARKETABLE SECURITIES

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

MARKETABLE SECURITIES

NOTE 6. MARKETABLE SECURITIES

The Company measures marketable securities on a recurring basis. The type of securities the Company is invested in are traded on the Over-the-Counter Market, which the Company considers to be Level 1 inputs.

Marketable securities at June 30, 2015 consisted of the following (in thousands):

	Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value

Marketable securities available-for-sale	$	5,096	$	766	$	-	$	5,862

Marketable securities at December 31, 2014 consisted of the following (in thousands):

	Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value

Marketable securities available-for-sale	$	5,160	$	4,499	$	(103	)	$	9,556

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2015

Derivative Instrument Detail [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS

The Company accounts for derivative financial instruments in accordance with FASB ASC 815-40, Derivative and Hedging – Contracts in Entity’s Own Equity (“ASC 815-40”), pursuant to which 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 the change in the estimated fair value of warrants of $29.4 million for the three months ended June 30, 2015, a gain on the change in the estimated fair value of warrants of $33.0 million for the three months ended June 30, 2014, and a loss on the change in the estimated fair value of warrants of $66.2 million and $20.6 for the six months ended June 30, 2015 and 2014, respectively

The Company calculated the fair value of the warrants using the Monte Carlo Simulation as of June 30, 2015 and the Binomial Lattice options pricing model as of December 31, 2014, and the assumptions are as follows:

	June 30, 2015			December 31, 2014
Fair value of common stock	$	33.15		$	12.24
Expected life (in years), represents the weighted average period until next liquidity event		5 years			.33 years
Risk-free interest rate		.87% – 1.49	%		1.13-1.69	%
Expected volatility		75-85	%		85	%
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.

FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2015

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, the Company used quoted prices in active markets.

In estimating the fair value of the Company’s derivative liabilities, the Company used the Monte Carlo Simulation as of June 30, 2015 and the Binomial Lattice options pricing model as of December 31, 2014. 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, accounts payable and the credit facility, due to their short term nature. In estimating the fair value of convertible debt which approximates the carrying value, we considered factors such as market conditions, prepayment and make-whole provisions, variability in pricing from multiple lenders and term of debt.

The following table presents the Company’s assets 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 June 30, 2015 (in thousands):

	As of June 30, 2015		Fair Value Hierarchy at June 30, 2015
	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	$	5,862	$	5,862	$	-	$	-

Liabilities:
Derivative liability related to warrants	$	91,200	$	-	$	-	$	91,200
Acquisition-related contingent consideration	$	50,599	$	-	$	-	$	50,599

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 (in thousands):

	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	$	9,556	$	-	$

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

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 six months ended June 30, 2015 (in thousands):

	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2015	$	27,990
Reclassification of derivative liability to equity upon exercise of warrants		(4,011	)
Issuance of warrants		1,050
Change in estimated fair value of liability classified warrants		66,171
Balance at June 30, 2015	$	91,200

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 six months ended June 30, 2015 (in thousands):

	Fair Value Measurements of Acquisition-Related Contingent Consideration (Level 3)
Balance at January 1, 2015	$	11,637
Present value of contingent consideration of Cholbam®, upon acquisition		42,010
Decrease of contingent consideration, asset divestiture		(604	)
Contractual Payments		(2,444	)
Balance at June 30, 2015	$	50,599

- Definition

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

+ References + Details

INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 9. INTANGIBLE ASSETS

As of June 30, 2015, the net book value of amortizable intangible assets was approximately $168.3 million.

The following table summarizes amortization expense for the three and six months ended June 30, 2015 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Research and development	$	193	$	255	$	414	$	305
Selling, general and administrative		3,614		1,283		5,128		1,347
Total amortization expense	$	3,807	$	1,538	$	5,542	$	1,652

Amortizable intangible assets as of June 30, 2015 and December 31, 2014 (in thousands):

	June 30, 2015			December 31, 2014
Finite-lived intangible Assets	$	178,980		$	99,867
Less: Accumulated amortization		(10,729	)		(5,602	)
Net carrying value	$	168,251		$	94,265

NOTES PAYABLE

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

NOTES PAYABLE

NOTE 10. NOTES PAYABLE

Convertible Notes Payable

On May 29, 2014, the Company entered into a Note Purchase Agreement relating to a private placement by the Company of $46.0 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. The Notes mature on May 30, 2019 unless earlier converted or repurchased in accordance with the terms. At June 30, 2015 and December 31, 2014, the aggregate carrying value of the Notes was $43.6 million and $43.3, respectively, which bore a weighted average annual interest rate of 4.5% during the six months ended June 30, 2015 and December 31, 2014, respectively.

Credit Facility

On June 30, 2014, the Company entered into a $45 million Credit Agreement (“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 Agreement) plus 9.00% and is payable quarterly. The Credit Facility contains certain financial and non-financial covenants. The Company was in compliance with all of its debt covenants as of June 30, 2015.

At December 31, 2014, the Company reclassified the note payable to short term due to its inability to meet debt covenant requirements related to its cash balances over the next twelve months. On March 24, 2015, the Company received $140.0 million in proceeds from its equity financing, therefore, the Company expected to have the ability to meet future covenant requirements and therefore reclassified the debt back to long term.

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, which could be drawn down at the Company’s option to finance the acquisition of the Cholbam® assets from Asklepion.

As consideration for Amendment No. 3, the Company made a $0.6 million cash payment to the Lenders, recorded in finance expense in the consolidated statements of operations, and issued the Lenders warrants initially exercisable to purchase up to an aggregate of 125,000 shares of the Company’s common stock which were valued at $1.1 million on January 12, 2015 and were recorded in interest expense in the consolidated statements of operations. Due to the closing of the public offering on March 24, 2015, the Company received cash proceeds of $140.0 million, after deducting underwriting fees and other offering costs, which the Company used to make the $27.0 million payment due to Asklepion upon the closing of the Company’s acquisition of the Cholbam® assets, and as a result, the Company did not utilize the commitment from the lenders.

On March 24, 2015, the Company entered into Amendment No. 4 to the Credit Facility, which amended the Credit Facility to make certain changes to the definition of “change of control” contained therein.

On June 29, 2015, the Company notified the Lenders of the Credit Facility that it would pay off the full amount of the outstanding Credit Facility in the amount of $45 million on July 1, 2015. Under the terms of the agreement, early payoff notification is irrevocable and as such the Company reclassified the debt to current, and as of June 30, 2015, accrued the prepayment premium of 5% or $2.3 million in accordance with the Credit Facility.

At June 30, 2015 and December 31, 2014, the aggregate carrying value of the Credit Facility was $41.1 million and $40.5, respectively, which bore a weighted average annual interest rate of 11.0% during six months ended June 30, 2015 and December 31, 2014, respectively.

Total interest expense, net, recognized was $2.9 million and $2.2 million for the three months ended June 30, 2015 and 2014, respectively, and $6.7 million and $2.2 million for the six months ended June 30, 2015 and 2014, respectively.

Debt Maturities

The stated maturities of the Company’s long-term debt are as follows as of June 30, 2015 (in thousands):

2015	$	45,000
2016		-
2017		-
2018		-
2019		46,000
Thereafter		-
	$	91,000

INCOME (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

INCOME (LOSS) PER SHARE

NOTE 11. INCOME (LOSS) PER SHARE

Basic and diluted net income (loss) per share is calculated as follows:

	Three Months Ended
	June 30, 2015								June 30, 2014
	Shares		Net Income			EPS			Shares		Net Income			EPS

Basic Earnings per Share		34,957,134	$	(25,527,335	)	$	(0.73	)		25,635,277	$	11,804,738		$	0.46

Change in fair value of derivative instruments												(32,978,586	)
Dilutive shares related to warrants										1,691,165

Diluted Earnings per Share		34,957,134	$	(25,527,335	)	$	(0.73	)		27,326,442	$	(21,173,848	)	$	(0.77	)

For the three months ended June 30, 2015, 2.6 million common stock options, 0.6 million restricted stock units, 2.6 million convertible debt units and 3.3 million warrants were excluded from the calculation because they were anti-dilutive. For the three months ended June 30, 2014, 2.9 million common stock options, 2.6 million convertible debt units and 0.6 million restricted stock units were excluded from the calculation because they were anti-dilutive.

	Six Months Ended
	June 30, 2015						June 30, 2014
	Shares		Net Income		EPS		Shares		Net Income			EPS

Basic Earnings per Share		31,079,053	$	14,127,652	$	0.45		24,491,477	$	(63,930,909	)	$	(2.61	)

Employee Stock Options		812,482
Convertible Debt		2,642,160		1,035,000
Restricted Common Stock		292,027

Diluted Earnings per Share		34,825,722	$	15,162,652	$	0.44		24,491,477	$	(63,930,909	)	$	(2.61	)

For the six months ended June 30, 2015, 1.2 million common stock options and 3.3 million warrants were excluded from the calculation because they were anti-dilutive. For the six months ended June 30, 2014, 2.9 million common stock options, 0.6 million restricted stock units, 2.6 million convertible debt units and 3.1 million warrants were excluded from the calculation because they were anti-dilutive.

Basic net income (loss) per share is based on the weighted average number of common and common equivalent shares outstanding.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 12. 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. In August 2014, Retrophin ceased use of the facility at One Kendall Square and all employees formerly located at this facility moved into the new facility on Binney Street, Cambridge, Massachusetts. In March 2015, the Company entered into a termination agreement with the landlord and paid an $80,000 lease termination fee.

On February 28, 2014, the Company amended its lease agreement for its offices located in Carlsbad, California. In October 2014, Retrophin ceased use of this facility, and all employees formerly located at that facility moved into the new headquarters facility in San Diego, California. In March 2015, the Company entered into an agreement to sublease a portion of the Carlsbad California lease for a three year term with an annual rent of approximately $56,000 annually with annual rent escalations.

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.

Contractual Commitments

The following table summarizes our principal contractual commitments, excluding open orders that support normal operations, as of June 30, 2015 (in thousands):

	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating Leases	$	2,095	$	1,041	$	1,054	$	-	$	-
Other commitments		3,060		437		1,236		1,387		-
	$	5,155	$	1,478	$	2,290	$	1,387	$	-

Legal Proceedings

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 August 5, 2015, the parties submitted a stipulation of voluntary dismissal to the court agreeing to the dismissal with prejudice of Schwab’s claims. Su’s and Huang’s cross claims and third-party claims are not covered by the stipulation, and are still pending.

On September 19, 2014, a purported shareholder of the Company sued Martin Shkreli, the Company’s former Chief Executive Officer, 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 first amended complaint alleged 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 first amended complaint, in which he, among other things, admitted to owing the Company over $0.6 million in short-swing profits. On June 19, 2015, after obtaining leave from the court, the plaintiffs served a second amended complaint which seeks disgorgement of short-swing profits in excess of $2 million. 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 Mr. 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 filed a consolidated amended complaint on March 4, 2015, which again named the Company, Mr. Shkreli, Mr. Panoff, and Mr. Paley as defendants, but which also named Steven Richardson, Stephen Aselage, and Cornelius Golding as additional defendants. On May 26, 2015, with the consent of the lead plaintiff, the court ordered that the claims against Mr. Paley be dismissed. The remaining defendants, including the Company, have filed motions to dismiss the consolidated amended complaint.

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 is cooperating with the investigation. The Company has also begun cooperating with a parallel investigation by the U.S. Securities and Exchange Commission.

As of June 30, 2015 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.

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 alleged that Questcor violated antitrust laws in connection with its acquisition of rights to the drug Synacthen, and sought injunctive relief and damages. The Company 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. On June 4, 2015, pursuant to the terms of a Confidential Settlement Agreement and Release (the “Settlement Agreement”) the Company and Questcor filed a Stipulation of Dismissal, dismissing the Company’s lawsuit against Questcor. Under the terms of the Settlement Agreement, Questcor paid the Company $15.5 million, recorded as “Litigation Settlement Gain” in the quarter ended June 30, 2015, and the Company and Questcor granted a mutual release of all claims against the other.

STOCKHOLDERS' EQUITY/DEFICIT

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

STOCKHOLDERS' EQUITY/DEFICIT

NOTE 13. STOCKHOLDERS’ EQUITY/DEFICIT

2015 Public Offering

On March 24, 2015, we completed a public offering of 7,866,000 shares of common stock at a price of $19.00 per share. We received net proceeds from the offering of $140.0 million, after deducting underwriting fees and other offering costs of $9.5 million. The shares of common stock were offered by us pursuant to a shelf registration statement that was declared effective by the SEC on March 13, 2015.

Restricted Shares

The following table summarizes the Company’s restricted stock activity during the six months ended June 30, 2015:

	Number of shares			Weighted Average Grant Date Fair Value
Outstanding December 31, 2014		691,668		$	10.83
Granted		116,000
Vested		(112,999	)
Forfeited/cancelled		(66,668	)
Outstanding June 30, 2015		628,001		$	13.38

Stock Options

The following table summarizes information about stock option activity during the six months ended June 30, 2015:

	Shares Underlying Options			Weighted Average Exercise Price
Outstanding at December 31, 2014		4,892,208		$	10.93
Granted		874,000
Exercised		(149,468	)
Forfeited/cancelled		(678,293	)
Outstanding at June 30, 2015		4,938,447		$	12.47

At June 30, 2015, outstanding options to purchase 1.8 million shares were exercisable with a weighted-average exercise price per share of $10.24.

Share Based Compensation

Total non-cash stock-based compensation by operating statement classification is as follows for the three and six months ended June 30, 2015 and 2014 (in thousands):

	Three months ended				Six months ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Research and development	$	1,749	$	410	$	3,968	$	958
Selling, General &Administrative		3,245		1,470		6,599		2,802
Selling, General &Administrative - Consultants		-		748		-		2,273
Total	$	4,994	$	2,628	$	10,567	$	6,033

Exercise of Warrants

During the three and six months ended June 30, 2015, the Company issued 73,875 and 198,209 shares of common stock upon the exercise of warrants, respectively, pursuant to which the Company received $0.3 and $0.8 million, respectively. The Company reclassified $1.6 million and $4.0 million of the derivative liability as equity for the value of these warrants on the date of exercise for the three

and six months ended June 30, 2015, respectively. 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. The number of warrants outstanding at June 30, 2015 was 3,348,146, and the number of warrants outstanding at December 31, 2014 was 3,421,255.

- Definition

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
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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+ Details

SALE OF ASSETS

6 Months Ended

Jun. 30, 2015

Sale Of Assets [Abstract]

SALE OF ASSETS

NOTE 14. SALE OF ASSETS

On January 9, 2015, the Company entered into an asset purchase agreement with Turing Pharmaceuticals A.G. (“Turing Pharmaceuticals”), 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 also assumed all future liabilities related to the Assets.

On February 12, 2015, the Company, its wholly-owned subsidiaries Manchester Pharmaceuticals LLC (“Manchester”) and 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 Vecamyl for a purchase price of $0.7 million. Waldun in turn sold Vecamyl to Turing Pharmaceuticals. In connection therewith, on February 12, 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 also assumed certain liabilities related to the Vecamyl product rights and inventory.

On February 12, 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 assumed certain liabilities related to the Syntocinon assets and licenses.

In conjunction with the sale of the Vecamyl, Syntocinon and ketamine assets, the Company recorded a gain of $0.2 million and wrote off the unamortized book value of the Vecamyl Product Rights Intangible Asset of $3.3 million and Syntocinon License Intangible Asset of $4.8 million.

On July 2, 2015, the Company completed the sale of its Pediatric PRV, and transferred title to Sanofi. Pursuant to the Company’s agreement with Sanofi, the Company will receive $245 million; $150.0 million was received upon closing, and $47.5 million is due on the first and second anniversaries of the closing. The asset value of the Pediatric PRV recorded in the financial statements as of June 30, 2015 is $96.3 million. The incremental gain resulting from the sale of the Pediatric PRV will be recorded in the quarter ending September 30, 2015.

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

NOTE 15. SUBSEQUENT EVENTS

On July 1, 2015, the Company paid $47.3 million as payment in full for the principal and accrued interest under the Credit Facility, which included $45.0 million to pay off the principle balance, $2.3 million in prepayment premiums for early payment penalty, and interest accrued through the settlement date, as required by the terms of the Credit Agreement. Upon receipt of this final payment, the liens and security interests granted pursuant to the Credit Agreement and the documents executed and delivered pursuant thereto or in connection therewith (collectively, the “Loan Documents”) were automatically and irrevocably released and terminated, and the Loan Documents were permanently terminated. At June 30, 2015, the prepayment premium of $2.3 million was accrued to current liabilities.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with GAAP. All intercompany accounts and transactions have been eliminated in consolidation.
Restatement of Prior Quarters	Restatement of Prior Quarters We held a Special Meeting of Stockholders on February 3, 2015, at which our 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”). Our Form 10-Q for the three and six months ended June 30, 2014 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 at the Special Meeting of Stockholders on February 3, 2015. In addition, our Form 10-Q for the three and six months ended June 30, 2014 contained errors related to certain consulting agreements entered into by the Company, pursuant to which an expense and a settlement liability related to the entire amount of the stock to be issued under such consulting agreements should have been taken and revalued at each reporting period based on changes in the Company’s stock price, until the stock had been entirely issued. We believe that the errors in the Form 10-Q for the three and six months ended June 30, 2014 do not cause the financial statements included therein to be misleading, and therefore such financial statements can still be relied upon. However, we have corrected such errors, including any related disclosures, in this Form 10-Q, and will restate future quarters to correct such errors, as applicable. The impact for the three and six months ended June 30, 2014, was a decrease to operating expenses of $3.3 million, and an increase to operating expenses of $1.8 million, respectively, and an increase to net income of $3.3 million, and an increase to net loss of $1.8 million, respectively.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. On July 9, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date. Early adoption of ASU 2014-09 is permitted but not before the original effective date (annual periods beginning after December 15, 2016.) We are currently evaluating the impact, if any, the adoption of this standard will have on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. This accounting update will have an immaterial impact to the financial statements and the Company has chosen not to early adopt this standard. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This standard amends Topic 330, Inventory, which currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. When this standard is adopted, an entity should measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We are currently evaluating the impact, if any, the adoption of this standard will have on our consolidated financial statements.

BUSINESS ACQUISITION (Tables)

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Schedule of purchase price allocation

The purchase price allocation of $91.3 million as of the Asklepion closing date of March 31, 2015 was as follows:

	Amount (in thousands)
Cash paid upon consummation	$	33,430
Present value of contingent consideration		42,010
Fair Value of 661,279 shares issued to Asklepion		15,844
Total Purchase Price	$	91,284

Fair Value of Assets Acquired
Acquired product rights-Cholbam® (Intangible Asset)	$	83,200
Pediatric Priority Review Voucher		96,250
Inventory		777
Total Allocation of Purchase Price	$	180,227
Bargain Purchase Gain		(88,943	)
Total Purchase Price	$	91,284

MARKETABLE SECURITIES (Tables)

6 Months Ended

Jun. 30, 2015

Marketable Securities [Abstract]

Schedule of marketable securities

Marketable securities at June 30, 2015 consisted of the following (in thousands):

	Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value

Marketable securities available-for-sale	$	5,096	$	766	$	-	$	5,862

Marketable securities at December 31, 2014 consisted of the following (in thousands):

	Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value

Marketable securities available-for-sale	$	5,160	$	4,499	$	(103	)	$	9,556

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2015

Investments, All Other Investments [Abstract]

Schedule of assumptions for valuation of warrants

	June 30, 2015			December 31, 2014
Fair value of common stock	$	33.15		$	12.24
Expected life (in years), represents the weighted average period until next liquidity event		5 years			.33 years
Risk-free interest rate		.87% – 1.49	%		1.13-1.69	%
Expected volatility		75-85	%		85	%
Dividend yield		0.00	%		0.00	%

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of fair value on a recurring basis

	As of June 30, 2015		Fair Value Hierarchy at June 30, 2015
	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	$	5,862	$	5,862	$	-	$	-

Liabilities:
Derivative liability related to warrants	$	91,200	$	-	$	-	$	91,200
Acquisition-related contingent consideration	$	50,599	$	-	$	-	$	50,599

	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	$	9,556	$	-	$

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

Schedule of estimated fair value of the derivative financial instruments,warrants liability

	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2015	$	27,990
Reclassification of derivative liability to equity upon exercise of warrants		(4,011	)
Issuance of warrants		1,050
Change in estimated fair value of liability classified warrants		66,171
Balance at June 30, 2015	$	91,200

Schedule of summary of changes in estimated acquisition related contingent consideration

	Fair Value Measurements of Acquisition-Related Contingent Consideration (Level 3)
Balance at January 1, 2015	$	11,637
Present value of contingent consideration of Cholbam®, upon acquisition		42,010
Decrease of contingent consideration, asset divestiture		(604	)
Contractual Payments		(2,444	)
Balance at June 30, 2015	$	50,599

INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of amortization expense

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Research and development	$	193	$	255	$	414	$	305
Selling, general and administrative		3,614		1,283		5,128		1,347
Total amortization expense	$	3,807	$	1,538	$	5,542	$	1,652

Schedule of Finite-Lived amortizable intangible assets

	June 30, 2015			December 31, 2014
Finite-lived intangible Assets	$	178,980		$	99,867
Less: Accumulated amortization		(10,729	)		(5,602	)
Net carrying value	$	168,251		$	94,265

NOTES PAYABLE (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Schedule of maturities of long-term debt

The stated maturities of the Company’s long-term debt are as follows as of June 30, 2015 (in thousands):

2015	$	45,000
2016		-
2017		-
2018		-
2019		46,000
Thereafter		-
	$	91,000

INCOME (LOSS) PER SHARE (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Schedule of basic and diluted net income (loss) per share

	Three Months Ended
	June 30, 2015								June 30, 2014
	Shares		Net Income			EPS			Shares		Net Income			EPS

Basic Earnings per Share		34,957,134	$	(25,527,335	)	$	(0.73	)		25,635,277	$	11,804,738		$	0.46

Change in fair value of derivative instruments												(32,978,586	)
Dilutive shares related to warrants										1,691,165

Diluted Earnings per Share		34,957,134	$	(25,527,335	)	$	(0.73	)		27,326,442	$	(21,173,848	)	$	(0.77	)

Schedule of common stock options, convertible debt and restricted stock units anti-dilutive

	Six Months Ended
	June 30, 2015						June 30, 2014
	Shares		Net Income		EPS		Shares		Net Income			EPS

Basic Earnings per Share		31,079,053	$	14,127,652	$	0.45		24,491,477	$	(63,930,909	)	$	(2.61	)

Employee Stock Options		812,482
Convertible Debt		2,642,160		1,035,000
Restricted Common Stock		292,027

Diluted Earnings per Share		34,825,722	$	15,162,652	$	0.44		24,491,477	$	(63,930,909	)	$	(2.61	)

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of principal contractual commitments

The following table summarizes our principal contractual commitments, excluding open orders that support normal operations, as of June 30, 2015 (in thousands):

	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating Leases	$	2,095	$	1,041	$	1,054	$	-	$	-
Other commitments		3,060		437		1,236		1,387		-
	$	5,155	$	1,478	$	2,290	$	1,387	$	-

STOCKHOLDERS' EQUITY/DEFICIT (Tables)

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

Schedule of restricted stock activity

	Number of shares			Weighted Average Grant Date Fair Value
Outstanding December 31, 2014		691,668		$	10.83
Granted		116,000
Vested		(112,999	)
Forfeited/cancelled		(66,668	)
Outstanding June 30, 2015		628,001		$	13.38

Schedule of stock option issuances and balances outstanding

	Shares Underlying Options			Weighted Average Exercise Price
Outstanding at December 31, 2014		4,892,208		$	10.93
Granted		874,000
Exercised		(149,468	)
Forfeited/cancelled		(678,293	)
Outstanding at June 30, 2015		4,938,447		$	12.47

Share based compensation expenses

	Three months ended				Six months ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Research and development	$	1,749	$	410	$	3,968	$	958
Selling, General &Administrative		3,245		1,470		6,599		2,802
Selling, General &Administrative - Consultants		-		748		-		2,273
Total	$	4,994	$	2,628	$	10,567	$	6,033

DESCRIPTION OF BUSINESS (Detail Textuals) $ in Millions	Jul. 02, 2015 USD ($)	Jun. 30, 2015 USD ($) Employee
Description Of Business [Line Items]
Number of employees \| Employee		127
Subsequent Event \| Asset purchase agreement \| Asklepion Pharmaceuticals, LLC
Description Of Business [Line Items]
Amount received on sale of assets	$ 245.0
Fair value of Pediatric Priority Review Voucher		$ 96.3
Subsequent Event \| Asset purchase agreement \| At Time Of Closing \| Asklepion Pharmaceuticals, LLC
Description Of Business [Line Items]
Amount received on sale of assets	150.0
Subsequent Event \| Asset purchase agreement \| Due On First And Second Anniversaries Of Closing \| Asklepion Pharmaceuticals, LLC
Description Of Business [Line Items]
Amount received on sale of assets	$ 47.5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
	Feb. 03, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Significant Accounting Policies [Line Items]
Increase (decrease) in operating expenses		$ 3.3		$ 1.8
Increase decrease in net income loss		$ 3.3		$ 1.8
Stock Options
Significant Accounting Policies [Line Items]
Purchase of stock option granted to employees			874,000
Restricted Shares
Significant Accounting Policies [Line Items]
Purchase of restricted shares granted to employee			116,000
Employee \| Stock Options
Significant Accounting Policies [Line Items]
Purchase of stock option granted to employees	1,928,000
Employee \| Restricted Shares
Significant Accounting Policies [Line Items]
Purchase of restricted shares granted to employee	230,000

INCOME TAXES (Detail Textuals) - USD ($) $ in Millions	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Income Taxes [Line Items]
Deferred tax liability		$ 39.9
Indemnification asset \| Manchester Pharmaceuticals, LLC.
Income Taxes [Line Items]
Indemnification Asset	$ 1.5		$ 1.5

BUSINESS ACQUISITION (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
BUSINESS ACQUISITION (Details) - USD ($) $ in Thousands	Mar. 31, 2015	Jun. 30, 2015	Jun. 30, 2014
Business Acquisition [Line Items]
Cash paid upon consummation		$ 33,430	$ 29,150
Asklepion Pharmaceuticals, LLC
Business Acquisition [Line Items]
Cash paid upon consummation	$ 33,430
Present value of contingent consideration	42,010
Fair Value of 661,279 Shares issued to Asklepion	15,844
Total purchase price	91,284
Fair Value of Assets Acquired
Acquired product rights-Cholbam?(Intangible Asset)	83,200
Fair value of Pediatric Priority Review Voucher	96,250
Inventory	777
Total Allocation of Purchase Price	180,227
Bargain Purchase Gain	(88,943)
Total Purchase Price	$ 91,284

BUSINESS ACQUISITION (Detail Textuals) - USD ($) $ in Thousands		1 Months Ended	6 Months Ended
	Jan. 12, 2015	Mar. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Cash payment			$ 2,444
Acquisition-related contingent consideration, less current portion			$ 46,235	$ 9,520
Asklepion Pharmaceuticals, LLC
Business Acquisition [Line Items]
Cash payment		$ 28,400
Common stock shares issued		661,279
Value of common stock		$ 15,844
Acquisition-related contingent consideration, less current portion		42,000
Fair value of Pediatric Priority Review Voucher		96,250
Purchase price allocation		91,284
Bargain purchase gain		(88,943)
Amount of tax		39,900
Net gain in acquisition		49,100
Asklepion Pharmaceuticals, LLC \| Definitive agreement
Business Acquisition [Line Items]
Upfront payment	$ 5,000
Asklepion Pharmaceuticals, LLC \| Purchase agreement
Business Acquisition [Line Items]
Value of common stock		$ 9,000

MARKETABLE SECURITIES (Details) - Marketable securities available-for-sale - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Cost	$ 5,096	$ 5,160
Unrealized Gains	766	4,499
Unrealized Losses		(103)
Estimated Fair Value	$ 5,862	$ 9,556

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Warrant - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Derivative [Line Items]
Fair value of common stock	$ 33.15	$ 12.24
Expected life (in years), represents the weighted average period until next liquidity event	5 years	3 months 29 days
Expected volatility		85.00%
Dividend yield	0.00%	0.00%
Minimum
Derivative [Line Items]
Risk-free interest rate	0.87%	1.13%
Expected volatility	75.00%
Maximum
Derivative [Line Items]
Risk-free interest rate	1.49%	1.69%
Expected volatility	85.00%

DERIVATIVE FINANCIAL INSTRUMENTS (Detail Textuals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Warrant
Derivative [Line Items]
Recorded loss on change in estimated fair value of warrants	$ 29.4	$ 33.0	$ 66.2	$ 20.6

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Liabilities:
Acquisition-related contingent consideration	$ 50,599	$ 11,637
Recurring basis
Asset:
Marketable securities, available-for-sale	5,862	9,556
Liabilities:
Derivative liability related to warrants	91,200	27,990
Acquisition-related contingent consideration	50,599	11,637
Recurring basis \| Quoted prices in active markets (Level 1)
Asset:
Marketable securities, available-for-sale	5,862	9,556
Liabilities:
Derivative liability related to warrants
Acquisition-related contingent consideration
Recurring basis \| Significant other observable inputs (Level 2)
Asset:
Marketable securities, available-for-sale
Liabilities:
Derivative liability related to warrants
Acquisition-related contingent consideration
Recurring basis \| Significant unobservable inputs (Level 3)
Asset:
Marketable securities, available-for-sale
Liabilities:
Derivative liability related to warrants	91,200	27,990
Acquisition-related contingent consideration	$ 50,599	$ 11,637

FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Reclassification of derivative liability to equity upon exercise of warrants	$ 4,011	$ 23,365
Warrants liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at January 1, 2015	27,990
Reclassification of derivative liability to equity upon exercise of warrants	(4,011)
Issuance of warrants	1,050
Change in estimated fair value of liability classified warrants	66,171
Balance at June 30, 2015	$ 91,200

FAIR VALUE MEASUREMENTS (Details 2) $ in Thousands	6 Months Ended
FAIR VALUE MEASUREMENTS (Details 2) $ in Thousands	Jun. 30, 2015 USD ($)
Fair Value Disclosures [Abstract]
Balance at January 1, 2015	$ 11,637
Present value of contingent consideration of Cholbam? upon acquisition	42,010
Decrease of contingent consideration, asset divestiture	(604)
Contractual Payments	(2,444)
Balance at June 30, 2015	$ 50,599

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 3,807	$ 1,538	$ 5,542	$ 1,652
Research and development expenses
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	193	255	414	305
Selling, General & Administrative
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 3,614	$ 1,283	$ 5,128	$ 1,347

INTANGIBLE ASSETS (Details 1) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible Assets	$ 178,980	$ 99,867
Less: Accumulated amortization	(10,729)	(5,602)
Net carrying value	$ 168,251	$ 94,265

INTANGIBLE ASSETS (Detail Textuals) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Net book value of amortizable intangible assets	$ 168,251	$ 94,265

NOTES PAYABLE (Details) $ in Thousands	Jun. 30, 2015 USD ($)
Debt Disclosure [Abstract]
2015	$ 45,000
2016
2017
2018
2019	46,000
Thereafter
Long Term Debt, Total	$ 91,000

NOTES PAYABLE (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 12, 2015	Mar. 24, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 29, 2015	Dec. 31, 2014	May 29, 2014
Debt Instrument [Line Items]
Aggregate carrying value				$ 91,000		$ 91,000
Proceeds from equity financing		$ 140,000
Interest income (expense), net				2,900	$ 2,200	6,700	$ 2,200
Credit Facility
Debt Instrument [Line Items]
Credit Agreement amount	$ 30,000
Aggregate carrying value				$ 41,100		$ 41,100			$ 40,500
Weighted average annual interest rate				11.00%		11.00%			11.00%
Cash payment	$ 600
Warrants exercisable to purchase up to aggregate share	125,000
Value of common stock	$ 1,100
Payment due to Asklepion upon the closing of the Company's acquisition	$ 27,000
Outstanding credit facility								$ 45,000
Prepayment premium				5.00%		5.00%
Prepayment premiumm, amount				$ 2,300		$ 2,300
Note Purchase Agreement \| Senior convertible notes due 2019
Debt Instrument [Line Items]
Credit Agreement amount										$ 46,000
Initial conversion price (in dollars per share)										$ 17.41
Interest rate										4.50%
Aggregate carrying value				$ 43,600		$ 43,600			$ 43,300
Weighted average annual interest rate				4.50%		4.50%			4.50%
Credit Agreement \| Credit Facility
Debt Instrument [Line Items]
Credit Agreement amount			$ 45,000		$ 45,000		$ 45,000
Credit Agreement \| Credit Facility \| LIBOR Rate
Debt Instrument [Line Items]
Debt instrument basis points added			10.00%
Credit Agreement \| Credit Facility \| Base Rate
Debt Instrument [Line Items]
Debt instrument basis points added			9.00%

INCOME (LOSS) PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
INCOME (LOSS) PER SHARE (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Basic Earnings per Share, Shares	34,957,134	25,635,277	31,079,053	24,491,477
Basic Earnings per Share, Net Income	$ (25,527,335)	$ 11,804,738
Basic Earnings per Share, EPS	$ (0.73)	$ 0.46	$ 0.45	$ (2.61)
Change in fair value of derivative instruments		$ (32,978,586)
Dilutive shares related to warrants		$ 1,691,165
Diluted Earnings per Share, Shares	34,957,134	27,326,442	34,825,722	24,491,477
Diluted Earnings per Share, Net Income	$ 25,527,335	$ (21,173,848)
Diluted Earnings per Share, EPS	$ (0.73)	$ (0.77)	$ 0.44	$ (2.61)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

INCOME (LOSS) PER SHARE (Details 1) - USD ($)	3 Months Ended		6 Months Ended
INCOME (LOSS) PER SHARE (Details 1) - USD ($)	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Weighted Average Number of Shares Outstanding, Basic	34,957,134	25,635,277	31,079,053	24,491,477
Basic Earnings per Share, Net Income			$ 14,127,652	$ (63,930,909)
Net income (loss) per common share, basic (in dollars per share)	$ (0.73)	$ 0.46	$ 0.45	$ (2.61)
Employee Stock Options - Shares			812,482
Convertible Debt - Shares			2,642,160
Convertible Debt, Net Income			$ 1,035,000
Restricted Common Stock - Shares			292,027
Weighted average common shares outstanding, diluted	34,957,134	27,326,442	34,825,722	24,491,477
Diluted Earnings per Share, Net Income			$ 15,162,652	$ (63,930,909)
Net income (loss) per common share, diluted (in dollars per share)	$ (0.73)	$ (0.77)	$ 0.44	$ (2.61)

INCOME (LOSS) PER SHARE (Detail Textuals) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	2.6	2.9	1.2	2.9
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	0.6	0.6		0.6
Convertible debt units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	2.6	2.6		2.6
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	3.3		3.3	3.1

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2015 USD ($)
Operating Leases
Total	$ 2,095
Less than 1 year	1,041
1-3 years	1,054
3-5 years
More than 5 years
Other commitments
Total	3,060
Less than 1 year	437
1-3 years	1,236
3-5 years	1,387
More than 5 years
Total
Total	5,155
Less than 1 year	1,478
1-3 years	2,290
3-5 years	1,387
More than 5 years

COMMITMENTS AND CONTINGENCIES (Detail Textuals) - USD ($)			1 Months Ended			3 Months Ended	6 Months Ended	13 Months Ended
	Jun. 04, 2015	Jun. 13, 2014	Jun. 19, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2015	Jun. 30, 2015	Nov. 30, 2014
Commitment And Contingency [Line Items]
Damages sought		$ 2,500,000	$ 2,000,000		$ 600,000			$ 1,750,000
Litigation settlement gain						$ 15,500,000	$ 15,500,000
Lease Agreement
Commitment And Contingency [Line Items]
Lease termination fee							$ 80,000
Annual rent				$ 56,000
Term for agreement to sublease				3 years
Confidential Settlement Agreement and Release (Settlement Agreement) \| Questcor Pharmaceuticals, Inc.
Commitment And Contingency [Line Items]
Litigation settlement gain	$ 15,500,000

STOCKHOLDERS' EQUITY/DEFICIT (Details) - Restricted Shares	6 Months Ended
	Jun. 30, 2015 $ / shares shares
Number of shares
Outstanding December 31, 2014	691,668
Granted	116,000
Vested	(112,999)
Forfeited/cancelled	(66,668)
Outstanding June 30, 2015	628,001
Weighted Average Grant Date Fair Value
Outstanding December 31, 2014 \| $ / shares	$ 10.83
Outstanding June 30, 2015 \| $ / shares	$ 13.38

STOCKHOLDERS' EQUITY/DEFICIT (Details 1) - Stock Options	6 Months Ended
	Jun. 30, 2015 $ / shares shares
Shares Underlying Options
Outstanding at December 31, 2014	4,892,208
Granted	874,000
Exercised	(149,468)
Forfeited/cancelled	(678,293)
Outstanding at June 30, 2015	4,938,447
Weighted Average Exercise Price
Outstanding at December 31, 2014 \| $ / shares	$ 10.93
Outstanding at June 30, 2015 \| $ / shares	$ 12.47

STOCKHOLDERS' EQUITY/DEFICIT (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 4,994	$ 2,628	$ 10,567	$ 6,033
Research & Development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	1,749	410	3,968	958
Selling, General & Administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	3,245	1,470	6,599	2,802
Selling, General & Administrative-Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total		$ 748		$ 2,273

STOCKHOLDERS' EQUITY/DEFICIT (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended
	Mar. 24, 2015	Jun. 30, 2015	Jun. 30, 2014
Equity [Abstract]
Issuance of common stock in public offering, value	7,866,000
Price per common share	$ 19.00
Net proceeds from the offering	$ 140,000	$ 149,454	$ 36,835
Underwriting fees and other offering costs	$ 9,500

STOCKHOLDERS' EQUITY/DEFICIT (Detail Textuals 1) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Number of shares of common stock issued upon exercise of warrants	73,875	198,209
Warrants outstanding	3,348,146	3,348,146	3,421,255
Proceeds from issuance for warrants	$ 0.3	$ 0.8
Reclassified derivative liability as equity for warrants on date of exercise	$ 1.6	$ 4.0
Employee Stock Option
Exercisable (in shares)	1,800,000	1,800,000
Exercisable weighted-average exercise price	$ 10.24	$ 10.24

SALE OF ASSETS (Detail Textuals) - USD ($) $ in Millions	Feb. 12, 2015	Jan. 09, 2015
Vecamyl, Syntocinon and ketamine assets
Sale Of Assets [Line Items]
Gain on sale of assets	$ 0.2
Vecamyl Product Rights
Sale Of Assets [Line Items]
Unamortized book value of intangible asset written off	3.3
Syntocinon License
Sale Of Assets [Line Items]
Unamortized book value of intangible asset written off	4.8
Asset purchase agreement \| Turing Pharmaceuticals
Sale Of Assets [Line Items]
Sell of ketamine licenses and assets		$ 1.0
Selling price of Vecamyl inventory	0.3
Selling price of Syntocinon licenses and assets including inventory	1.1
Purchase agreement \| Waldun Pharmaceuticals, LLC \| Manchester Pharmaceuticals LLC and Retrophin Therapeutics International, LLC
Sale Of Assets [Line Items]
Selling price of product rights to Vecamyl	$ 0.7

SALE OF ASSETS (Detail Textuals 1) - Subsequent Event [Member] - Asset purchase agreement - Asklepion Pharmaceuticals, LLC - USD ($) $ in Millions	Jul. 02, 2015	Jun. 30, 2015
Sale Of Assets [Line Items]
Proceeds from Sale of Intangible Assets	$ 245.0
Fair value of Pediatric Priority Review Voucher		$ 96.3
At Time Of Closing
Sale Of Assets [Line Items]
Proceeds from Sale of Intangible Assets	150.0
Due On First And Second Anniversaries Of Closing
Sale Of Assets [Line Items]
Proceeds from Sale of Intangible Assets	$ 47.5

SUBSEQUENT EVENTS (Detail Textuals) - Credit Facility - USD ($) $ in Millions	Jul. 01, 2015	Jun. 30, 2015
Subsequent Event [Line Items]
Prepayment premiums for early payment penalty		$ 2.3
Subsequent Event
Subsequent Event [Line Items]
Amount of payment in full for the principal and accrued interest	$ 47.3
Amount to pay off the principle balance	45.0
Prepayment premiums for early payment penalty	$ 2.3

SUBSEQUENT EVENTS (Detail Textuals 1) - Subsequent Event - Asset purchase agreement - Asklepion Pharmaceuticals, LLC - USD ($) $ in Millions	Jul. 02, 2015	Jun. 30, 2015
Subsequent Event [Line Items]
Proceeds from Sale of Intangible Assets	$ 245.0
Fair value of Pediatric Priority Review Voucher		$ 96.3
At Time Of Closing
Subsequent Event [Line Items]
Proceeds from Sale of Intangible Assets	150.0
Due On First And Second Anniversaries Of Closing
Subsequent Event [Line Items]
Proceeds from Sale of Intangible Assets	$ 47.5