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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2015	Nov. 02, 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		36,148,930
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 140,596	$ 18,204
Marketable securities	94,681	9,556
Accounts receivable, net	13,499	7,960
Inventory, net	2,650	801
Prepaid expenses and other current assets	2,002	813
Note receivable	46,526	0
Total current assets	299,954	37,334
Property and equipment, net	478	671
Other asset	2,006	2,265
Intangible assets, net	162,997	94,265
Goodwill	936	936
Long term note receivable	45,259	0
Total assets	511,630	135,471
Current liabilities:
Deferred technology purchase liability	1,000	1,000
Accounts payable	4,893	7,124
Accrued expenses	22,318	27,883
Other liability	1,027	938
Acquisition-related contingent consideration	5,069	2,118
Derivative financial instruments, warrants	42,120	27,990
Note payable	0	40,486
Short term deferred income tax liability, net	15,892	0
Taxes payable	9,628	0
Total current liabilities	101,947	107,539
Convertible debt	43,747	43,288
Other liability	13,915	12,234
Acquisition-related contingent consideration, less current portion	48,651	9,520
Long term deferred income tax liability, net	12,358	141
Total liabilities	220,618	172,722
Stockholders' Equity (Deficit):
Preferred stock $0.001 par value; 20,000,000 shares authorized; 0 issued and outstanding as of September 30, 2015 and December 31, 2014	0	0
Common stock $0.0001 par value; 100,000,000 shares authorized; 36,008,096 and 26,428,071 issued and 36,008,096 and 26,048,480 outstanding as of September 30, 2015 and December 31, 2014, respectively	4	3
Additional paid-in capital	353,794	140,851
Treasury stock, at cost, 0 and 379,591 shares as of September 30, 2015 and December 31, 2014, respectively	0	(3,215)
Accumulated deficit	(62,684)	(179,175)
Accumulated other comprehensive income (loss)	(102)	4,285
Total stockholders' equity (deficit)	291,012	(37,251)
Total liabilities and stockholders' equity (deficit)	$ 511,630	$ 135,471

(Parenthetical) - $ / shares	Sep. 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 (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock shares authorized (in shares)	100,000,000	100,000,000
Common stock shares issued (in shares)	36,008,096	26,428,071
Common stock shares outstanding (in shares)	36,008,096	26,048,480
Treasury stock shares (In shares)	0	379,591

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net product sales	$ 28,005	$ 8,349	$ 69,444	$ 14,118
Operating expenses:
Cost of goods sold	513	198	1,424	233
Research and development	14,064	12,646	34,974	32,899
Selling, general and administrative	22,308	17,372	56,856	42,097
Change in valuation of contingent consideration	(6,906)	0	(7,026)	0
Impairment of intangible assets	4,710	0	4,710	0
Total operating expenses	48,501	30,216	104,990	75,229
Operating loss	(20,496)	(21,867)	(35,546)	(61,111)
Other income (expenses), net:
Litigation settlement gain	0	0	15,500	0
Other income (expense), net	(314)	170	35	545
Interest expense, net	(695)	(2,629)	(7,415)	(4,808)
Debt early payment penalty	0	0	(2,250)	0
Loss on extinguishment of debt	(4,151)	0	(4,151)	0
Finance expense	0	(13)	(600)	(4,721)
Change in fair value of derivative instruments	29,991	6,359	(36,180)	(14,276)
Gain on sale of assets	140,004	0	140,004	0
Bargain Purchase Gain	0	0	49,063	0
Total other income (expense), net	164,835	3,887	154,006	(23,260)
Income (Loss) before provision for income taxes	144,339	(17,980)	118,460	(84,371)
Income tax benefit (provision)	(38,761)	0	1,246	2,460
Net income (loss)	$ 105,578	$ (17,980)	$ 119,706	$ (81,911)
Net income (loss) per common share, basic (in dollars per share)	$ 2.95	$ (0.67)	$ 3.67	$ (3.25)
Net income (loss) per common share, diluted (in dollars per share)	$ 1.78	$ (0.84)	$ 3.30	$ (3.25)
Weighted average common shares outstanding, basic (in shares)	35,741,877	26,682,510	32,650,408	25,229,847
Weighted average common shares outstanding, diluted (in shares)	42,752,859	28,210,225	36,800,536	25,229,847
Comprehensive income (loss):
Net income (loss)	$ 105,578	$ (17,980)	$ 119,706	$ (81,911)
Foreign currency translation	14	0	8	0
Unrealized gain (loss) on marketable securities	(876)	3,232	(4,395)	3,751
Comprehensive income (loss)	$ 104,716	$ (14,748)	$ 115,319	$ (78,160)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows From Operating Activities:
Net income (loss)	$ 119,706	$ (81,911)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	9,417	3,543
Realized loss on marketable securities	293	(544)
Gain upon divestiture of Pediatric Priority Review Voucher	(140,004)	0
Gain upon divestiture of other assets	(200)
Deferred income tax provision	(11,791)	0
Amortization of debt discount and deferred financing costs	1,175	571
Lease liability	32	0
Settlement expense	0	5,684
Loss on early retirement of debt	4,151	0
Impairment of intangible assets	4,710	0
Loss on disposal of fixed assets	112	0
Bargain purchase gain	(49,063)	0
Share based compensation	18,748	9,237
Derivative financial instruments, warrants, issued, recorded in interest expense	1,050	0
Change in estimated fair value of derivative financial instruments, warrants	36,180	14,276
Change in fair value of contingent consideration	7,026	0
Share based compensation	0	4,708
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(5,540)	(4,676)
Inventory	(1,071)	(165)
Prepaid expenses and other assets	(1,712)	(1,242)
Accounts payable and accrued expenses	(852)	13,764
Income Taxes Payable	9,628	0
Net cash provided by (used in) operating activities	1,995	(36,755)
Cash Flows From Investing Activities:
Purchase of fixed assets	(35)	(581)
Purchase of intangible assets	(5,271)	(3,302)
Proceeds from the sale of marketable securities	4,977	2,252
Purchase of marketable securities	(94,793)	(10,149)
Proceeds from securities sold, not yet purchased	0	7,500
Securities sold, not yet purchased	0	(5,310)
Cash paid for investment	0	(400)
Security deposits	0	(93)
Cash received upon sale of assets, net	148,411	0
Cash paid upon acquisition, net of cash acquired	(33,430)	(29,150)
Net cash provided by (used in) investing activities	19,859	(39,233)
Cash Flows From Financing Activities:
Payment of acquisition-related contingent consideration	(2,498)	(562)
Payment of guaranteed minimum royalty	(527)	0
Proceeds from the exercise of warrants	4,372	8,337
Proceeds from the exercise of stock options	5,237	0
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)	0
Proceeds from credit agreement	0	42,366
Proceeds from Note Purchase Agreement	0	42,924
Payment of other liability	(1,000)	(507)
Repayment of credit facility	(45,000)	0
Repayment of Manchester Note payable	0	(31,283)
Net cash provided by financing activities	100,538	95,853
Net increase in cash	122,392	19,865
Cash, beginning of year	18,204	5,997
Cash, end of period	140,596	25,862
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	4,994	3,114
Non-cash investing and financing activities:
Accrued royalty in excess of minimum payable to the sellers of Thiola®	2,237	0
Reclassification of derivative liability to equity due to exercise of warrants	23,100	23,365
Present value of contingent consideration payable to sellers of Manchester Pharmaceuticals LLC	0	12,238
Present value of guaranteed minimum royalty payable to sellers of Thiola®	0	11,818
Note payable entered into upon consummation of Manchester Pharmaceuticals LLC	0	31,283
Present value of contingent consideration payable to sellers of Asklepion Pharmaceuticals LLC	42,010	0
Shares issued in connection with Cholbam® acquisition	15,844	0
Unrealized gain (loss) on marketable securities	(4,395)	3,701
Unrealized loss on securities sold, not yet purchased	$ 0	$ 34

DESCRIPTION OF BUSINESS

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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 126 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 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 from the U.S. Food and Drug Administration (“FDA”).

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 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 is a synthetic hormone analog of the first 24 amino acids of the 39 amino acids contained in adrenocorticotropic hormone (“ACTH”) incorporated into a novel formulation developed 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 manufactured RE-034 at proof-of-concept scale using a novel formulation 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. A 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 sold and transferred the Pediatric PRV 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 each of 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 was $96.3 million. In accordance with accounting principles generally accepted in the United States ("GAAP"), the Company recorded the future short term and long term payments at their present value of $46.2 million and $44.9 million, respectively, at the date of the sale. The incremental gain from the sale of the asset was approximately $140.0 million during the three months ended September 30, 2015, net of $4.9 million in fees contractually due as part of the Cholbam^® acquisition.

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.

On September 24, 2015, the European Committee for Medical Products for Human Use adopted an opinion recommending the Company be granted a MA for Kolbam. We anticipate a ruling from the EU Commission on the issuance of a new MA with revised labeling by the end of the year

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements 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 the results that may be expected for any future periods. The December 31, 2014 balance sheet information was derived from the audited financial statements as of that date.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	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. Inventory Inventories are stated at the lower of cost or market. We determine the cost of our inventories, which include amounts related to materials, third-party contract manufacturing and packaging services, on a first-in, first-out basis. We capitalize inventory costs at our suppliers when, based on management’s judgment, the realization of future economic benefit is probable at each given supplier. 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 nine months ended September 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 nine months ended September 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 nine months ended September 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. The impact for the three and nine months ended September 30, 2014, was a decrease to operating expenses of $1.6 million, and an increase to operating expenses of $0.2 million, respectively, and an decrease to net loss of $1.6 million, and an increase to net loss of $0.2 million, respectively. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-9, 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 for which the entity expects to be entitled 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 2014-9 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. 2015-3, 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. In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. This ASU eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The ASU is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. The ASU is applied prospectively to adjustments to provisional amounts that occur after the effective date. That is, the ASU applies to open measurement periods, regardless of the acquisition date. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnotes disclosures.

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	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. As required by the authoritative guidance on accounting for income taxes, we evaluate the realizability of deferred income tax assets on a jurisdictional basis at each reporting date. Accounting guidance for income taxes requires that a valuation allowance be established when it is more-likely-than-not that all or a portion of the deferred income tax assets will not be realized. Management assesses all available positive and negative evidence to determine whether or not the deferred income tax assets are more-likely-than-not realizable. 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 September 30, 2015 and December 31, 2014, the Company had recorded an indemnification asset with a corresponding liability in the amount of $1.5 million, 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 FASB 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 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. In the third quarter of 2015, the Company recorded total tax expense of $38.8 million primarily relating to current and deferred tax expense accrued on the sale of Pediatric PRV, partially offset by the release of a valuation allowance pursuant to the utilization of net operating loss carry-forwards primarily related to the Pediatric PRV sale. Our effective tax rate for the three months ended September 30, 2015 was 26.9% compared to 0% for the three months ended September 30, 2014. For the nine months ended September 30, 2015 and September 30, 2014, our effective tax rate was (1.1)% and 2.9%, respectively. Under GAAP, quarterly effective tax rates may vary significantly depending on the actual operating results in the various tax jurisdictions, significant transactions, as well as changes in the valuation allowance related to the expected recovery of deferred tax assets. For the three months ended September 30, 2015, when compared to 2014, the increase in the effective income tax rate was primarily attributable to the current and deferred tax expense on the sale of the Pediatric PRV, partially offset by the release of a U.S. federal valuation allowance. For the nine months ended September 30, 2015, when compared to 2014, the decrease in the effective income tax rate was primarily attributable to the net benefit in 2015 resulting from valuation allowance released upon realization of substantially all of our Federal net operating losses, compared to tax expense during the first nine months of 2014 as a result of a decrease in the deferred tax liability associated with an indefinite lived asset. At September 30, 2015, we had gross unrecognized tax benefits of $0.4 million compared to $0 at December 31, 2014, representing a net increase of $0.4 million during the nine months ended September 30, 2015. Substantially all of the gross unrecognized tax benefits, if recognized, would impact our effective tax rate in the period of recognition. We did not recognize any interest and penalties related to unrecognized tax benefits. We are currently not under income tax audit examination in any material jurisdictions in which we operate.

BUSINESS ACQUISITION

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

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 had 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. A 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 definitive agreement with Asklepion, and $15.8 million at the acquisition completion date). The Company may also be required to pay contingent consideration consisting of milestones and tiered royalties with a present value of $39.1 million.

The asset value of the Pediatric PRV was recognized 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 acquisition completion date of March 31, 2015 was as follows (in thousands):




Cash paid upon consummation	$	33,430
Present value of contingent consideration and service fees	42,010
Fair Value of 661,279 shares issued to Asklepion	15,844
Total Purchase Price	$	91,284

Fair Value of Assets Acquired and Liabilities Assumed
Acquired product rights-Cholbam^® (Intangible Asset)	$	83,200
Pediatric Priority Review Voucher	96,250
Inventory	777
Deferred tax liability	(39,880		)
Total Allocation of Purchase Price	$	140,347
Bargain Purchase Gain	(49,063		)
Total Purchase Price	$	91,284

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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-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
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-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

SHORT-TERM INVESTMENTS

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

SHORT-TERM INVESTMENTS

The Company's short-term investments as of September 30, 2015 are comprised of available-for-sale marketable securities which are carried at fair value, with the unrealized gains and losses reported in accumulated other comprehensive income (loss). The amortized cost of debt securities in this category are adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion is included in interest income. Realized gains and losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are included in other income or expense. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in interest income. As of December 31, 2014, the Company owned available-for-sale marketable equity securities that were carried at fair value which have subsequently been sold.

Investments consist of the following (in thousands):



	September 30, 2015		December 31, 2014
Marketable Equity Securities:
Common Stock	$	—	$	9,556
Marketable Other than Equity Securities:
Commercial paper	11,930		—
Corporate debt securities	72,746		—
Securities of government sponsored entities	10,005		—
Total Marketable Securities:	$	94,681	$	9,556

The following is a summary of short-term marketable securities classified as available-for-sale as of September 30, 2015 (in thousands):



	Contractual Maturity (in years)	Amortized Cost		Unrealized Gains		Unrealized Losses			Aggregate Estimated Fair Value
Marketable Other than Equity Securities:
Commercial paper	Less than 1	$	11,935	$	—	$	(5	)	$	11,930
Corporate debt securities	Less than 1	34,123		1		(42		)	34,082
Securities of government-sponsored entities	Less than 1	5,003		—		—			5,003
Total maturity less than 1 year		51,061		1		(47		)	51,015
Corporate debt securities	1 to 2	38,732		17		(85		)	38,664
Securities of government-sponsored entities	1 to 2	5,000		2		—			5,002
Total maturity 1 to 2 years		43,732		19		(85		)	43,666
Total available-for-sale securities		$	94,793	$	20	$	(132	)	$	94,681

The following is a summary of short-term marketable securities classified as available-for-sale as of December 31, 2014 (in thousands):



	Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Marketable Equity Securities:
Common Stock	$	5,160	$	4,499	$	(103	)	$	9,556
Total available-for-sale securities	$	5,160	$	4,499	$	(103	)	$	9,556

The following table presents information about available-for-sale investments in an unrealized loss position as of September 30, 2015 (in thousands):



	Less Than 12 Months					12 Months or Greater				Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
September 30, 2015
Commercial paper	$	11,930	$	(5	)	$	—	$	—	$	11,930	$	(5	)
Corporate debt securities	62,492		(127		)	—		—		62,492		(127		)
Securities of government-sponsored entities	3,002		—			—		—		3,002		—
Total	$	77,424	$	(132	)	$	—	$	—	$	77,424	$	(132	)

The primary objective of the Company’s investment portfolio is to enhance overall returns while preserving capital and liquidity. The Company’s investment policy limits interest-bearing security investments to certain types of instruments issued by institutions with primarily investment grade credit ratings and places restrictions on maturities and concentration by asset class and issuer.

The Company reviews the available-for-sale investments for other-than-temporary declines in fair value below cost basis each quarter and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. This evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below the cost basis and adverse conditions related specifically to the security, including any changes to the credit rating of the security, and the intent to sell, or whether the Company will more likely than not be required to sell the security before recovery of its amortized cost basis. The assessment of whether a security is other-than-temporarily impaired could change in the future due to new developments or changes in assumptions related to any particular security. As of September 30, 2015 and December 31, 2014, the Company believed the cost basis for available-for-sale investments were recoverable in all material respects.

- Definition

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

+ References + Details

DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 adjustments within other income (expenses), net, in the Company’s accompanying condensed consolidated statements of operations and comprehensive income (loss). The Company recorded a gain on the change in the estimated fair value of warrants of $30.0 million and $6.4 million for the three months ended September 30, 2015 and 2014, respectively, and a loss on the change in the estimated fair value of warrants of $36.2 million and $14.3 for the nine months ended September 30, 2015 and 2014, respectively.

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



	September 30, 2015			December 31, 2014
Fair value of common stock	$	20.26		$	12.24
Expected life (in years), represents the weighted average period until next liquidity event	n/a**			0.33
Remaining life of the warrants (in years)	2.4 - 4.3			3.1 - 4.9
Risk-free interest rate	.75% – 1.21%			1.13-1.69%
Expected volatility	75-85%			85		%
Dividend yield	—		%	—		%

**There are no liquidity events expected within the life of the outstanding warrants.

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

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

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.

The valuation techniques used to measure the fair value of the Company’s debt instruments and all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data.

In estimating the fair value of the Company’s derivative liabilities, the Company used the Monte Carlo Simulation as of September 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 September 30, 2015 (in thousands):



	As of September 30, 2015		Fair Value Hierarchy at September 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	$	94,681	$	—	$	94,681	$	—

Liabilities:
Derivative liability related to warrants	$	42,120	$	—	$	—	$	42,120
Contingent consideration	$	53,720	$	—	$	—	$	53,720

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 nine months ended September 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	(23,100		)
Issuance of Warrants	1,050
Change in estimated fair value of liability classified warrants	36,180
Balance at September 30, 2015	$	42,120

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 nine months ended September 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	39,107
Increase from revaluation of contingent consideration	7,026
Decrease of contingent consideration, asset divestiture	(604		)
Contractual Payments	(2,498		)
Contractual Payments Accrued at September 30, 2015	(948		)
Balance at September 30, 2015	$	53,720

The fair value of contingent consideration liabilities was determined by applying a form of the income approach (a level 3 input), based upon the probability-weighted projected payment amounts discounted to present value at a rate appropriate for the risk of achieving the performance targets. The key assumptions included in the calculations were the earn-out period payment probabilities, projected revenues, discount rate and the timing of payments. The present value of the expected payments considers the time at which the obligations are expected to be settled and a discount rate that reflects the risk associated with the performance payments.

During the nine month period ended September 30, 2015, the Company incurred a charge of $7.0 million in operating expenses on the condensed consolidated statement of operations and comprehensive income (loss), $6.6 million of which is related to the increase in contingent consideration liabilities for the product Chenodal^®. The primary drivers for the change were projected revenues and timing of payments.

On September 30, 2015, the Company wrote-off the entire value of intangible assets related to Carbetocin (a level 3 input). The write-off was deemed appropriate as the Company elected not to pursue any internal development of the asset, and attempts to divest it were unsuccessful. The total charge of $4.7 million is included in operating expenses on the Company's Condensed Consolidated Statement of Operations and Comprehensive Income (Loss).

- 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

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

As of September 30, 2015, the net book value of amortizable intangible assets was approximately $163.0 million.

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



	September 30, 2015			December 31, 2014
Finite-lived intangibles Assets	$	176,749		$	99,867
Less: Accumulated amortization	(13,752		)	(5,602		)
Net carrying value	$	162,997		$	94,265

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Research and development	$	200	$	261	$	614	$	566
Selling, general and administrative	3,675		1,554		8,803		2,901
Total amortization expense	$	3,875	$	1,815	$	9,417	$	3,467

On September 30, 2015, the Company wrote-off the entire value of intangible assets related to Carbetocin. The write-off was deemed appropriate as the Company elected not to pursue any internal development of the asset and attempts to divest it were unsuccessful. The total charge of $4.7 million was included in operating expenses on the condensed consolidated statement of operations and comprehensive income (loss).

NOTES PAYABLE

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

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 September 30, 2015 and December 31, 2014, the aggregate carrying value of the Notes was $43.7 million and $43.3, respectively, which bore a weighted average annual interest rate of 4.5% during the nine months ended September 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 was schedule to mature on June 30, 2018 and bore interest at an annual rate of (i) the Adjusted LIBOR Rate (as such term was defined in the Credit Facility) plus 10.00% or (ii) in certain circumstances, the Base Rate (as such term was defined in the Credit Agreement) plus 9.00% and was payable quarterly. The Credit Facility contained certain financial and non-financial covenants.

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 reclassified the debt 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 its 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 July 1, 2015, the Company paid off the Credit Facility in its entirety including a prepayment premium of $2.3 million, and incurred an additional charge of $4.2 million, included in other expenses on the Company's condensed consolidated statement of operations and comprehensive income (loss), for the write-off of the debt discount and issuances for the Credit Facility.

At September 30, 2015 and December 31, 2014, the aggregate carrying value of the Credit Facility was $0.0 million and $40.5 million, respectively, which bore a weighted average annual interest rate of 11.0% during the periods outstanding.

Total interest expense, net, recognized was $0.7 million and $2.6 million for the three months ended September 30, 2015 and 2014, respectively, and $7.4 million and $4.8 million for the nine months ended September 30, 2015 and 2014, respectively.

Debt Maturities

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



2015	$	—
2016	—
2017	—
2018	—
2019	46,000
Thereafter	—
	$	46,000

ACCRUED EXPENSES

9 Months Ended

Sep. 30, 2015

Payables and Accruals [Abstract]

ACCRUED EXPENSES

Accrued expenses at September 30, 2015 and December 31, 2014 consisted of the following (in thousands):



	September 30, 2015		December 31, 2014
Government rebates payable	$	5,226	$	1,353
Compensation related costs	5,094		8,163
Accrued royalties	4,249		—
Research and development	2,222		3,720
Selling, general and administrative	1,807		2,411
Severance related costs	1,548		5,710
Accounting and legal fees	1,186		1,208
Interest	799		2,318
Miscellaneous accrued	187		—
License fee	—		3,000
	$	22,318	$	27,883

INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

INCOME (LOSS) PER SHARE

Basic and diluted net income (loss) per common share is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. The Company’s potentially dilutive shares, which include outstanding stock options, unvested restricted stock, restricted stock units, warrants and shares issuable upon conversion of the Convertible Notes, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.

Basic and diluted net income (loss) per share is calculated as follows (net income amounts are stated in thousands):



	Three Months Ended
	September 30, 2015						September 30, 2014
	Shares	Net Income			EPS		Shares	Net Income			EPS
Basic Earnings per Share	35,741,877	$	105,578		$	2.95	26,682,510	$	(17,980	)	$	(0.67	)
Dilutive shares related to warrants	—	(29,991		)	—		—	(5,689		)	—
Change in fair value of derivative instruments	2,053,934	—			—		1,527,715	—			—
Convertible Debt	2,642,160	518			—		—	—			—
Restricted Stock	409,166	—			—		—	—			—
Stock Options	1,905,722	—			—		—	—			—
Dilutive Earnings per Share	42,752,859	$	76,105		$	1.78	28,210,225	$	(23,669	)	$	(0.84	)



	Nine Months Ended
	September 30, 2015					September 30, 2014
	Shares	Net Income		EPS		Shares	Net Income			EPS
Basic Earnings per Share	32,650,408	$	119,706	$	3.67	25,229,847	$	(81,911	)	$	(3.25	)
Convertible Debt	2,642,160	1,553		—		—	—			—
Restricted Stock	331,073	—		—		—	—			—
Stock Options	1,176,895	—		—		—	—			—
Dilutive Earnings per Share	36,800,536	$	121,259	$	3.30	25,229,847	$	(81,911	)	$	(3.25	)

For the three and nine months ended September 30, 2015 and 2014, the following shares were excluded because they were anti-dilutive:



	Three Months Ended		Nine Months Ended
	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Restricted Stock	26,033	438,416	41,132	467,162
Convertible Debt	—	2,642,160	—	3,106,345
Options	1,762,891	2,852,500	1,083,093	2,852,500
Warrants	—	337,500	2,691,589	337,500
Total Anti-Dilutive Shares	1,788,924	6,270,576	3,815,814	6,763,507

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

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, 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 September 30, 2015 (in thousands):



	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating Leases	$	1,851	$	797	$	1,054	$	—	$	—
Other commitments	4,524		1,029		1,133		870		1,492
	$	6,375	$	1,826	$	2,187	$	870	$	1,492

Legal Proceedings

On June 13, 2014, Charles Schwab & Co., Inc. (“Schwab”) sued the Company, Standard Registrar and Transfer Company (“Standard”), Jackson Su (“Su”), and Chun Yi Huang (“Huang”) in federal court in the Southern District of New York (Charles Schwab & Co. v. Retrophin, Inc., Case No. 14-cv-4294). Su and Huang also 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, and impleaded Katten Muchin Rosenman LLP as a third-party defendant. Schwab’s claims have been dismissed with prejudice. On September 30, 2015, the Court dismissed Su and Huang’s cross-claims and third party claims. The dismissal was with prejudice with respect to Su, but without prejudice with respect to Huang.

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 parties have reached an agreement to settle the lawsuit. On October 19, 2015, Plaintiffs filed a motion seeking the Court’s approval of the settlement. If the Court approves the settlement, Mr. Shkreli will pay $2,025,000 to the Company and will pay an additional $625,000 to Plaintiffs to compensate them for their legal fees.

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, filed motions to dismiss the consolidated amended complaint on June 26, 2015. Plaintiffs filed a consolidated opposition to the motions on July 27, 2015. Defendants filed their reply briefs in support of the motions on October 28, 2015. In January 2015, the Company received a subpoena relating to a criminal investigation by the U.S. Attorney for the Eastern District of New York. The subpoena requested 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 been cooperating with a parallel investigation by the U.S. Securities and Exchange Commission.

On August 17, 2015, the Company filed a lawsuit in federal district court for the Southern District of New York against Martin Shkreli, asserting that he breached his fiduciary duty of loyalty during his tenure as the Company’s Chief Executive Officer and a member of its Board of Directors (Retrophin, Inc. v. Shkreli, 15-CV-06451(NRB)). On August 19, 2015, Mr. Shkreli served a demand for JAMS arbitration on Retrophin, claiming that Retrophin had breached his December 2013 employment agreement. In response to Mr. Shkreli’s arbitration demand, the Company has asserted counterclaims in the arbitration that are substantially similar to the claims it previously asserted in the federal lawsuit against Mr. Shkreli. The parties are currently selecting an arbitration panel. On Mr. Shkreli’s application, and with the Company’s consent, the federal Court has granted a stay of the federal lawsuit pending a determination by the arbitration panel whether the Company’s counterclaims will be litigated in the arbitration, as the Company is seeking.

As of September 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.

STOCKHOLDERS' EQUITY/DEFICIT

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

STOCKHOLDERS' EQUITY/DEFICIT

STOCKHOLDERS’ EQUITY/DEFICIT

2015 Public Offering

On March 24, 2015, the Company completed a public offering of 7,866,000 shares of common stock at a price of $19.00 per share. The Company 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 the Company 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 nine months ended September 30, 2015:



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value
Outstanding December 31, 2014	691,668		$	10.83
Granted	253,000
Vested	(159,666	)
Forfeited/canceled	(66,668	)
Outstanding September 30, 2015	718,334		$	16.89

Stock Options

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



	Shares Underlying Options		Weighted Average Exercise Price
Outstanding at December 31, 2014	4,892,208		$	10.93
Granted	2,095,000
Exercised	(401,740	)
Forfeited/canceled	(842,875	)
Outstanding at September 30, 2015	5,742,593		$	16.86

At September 30, 2015, outstanding options to purchase 1.8 million shares were exercisable with a weighted-average exercise price per share of $11.69.

Share Based Compensation

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



	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Research and Development	$	2,692	$	1,039	$	6,660	$	1,997
Selling, General &Administrative	5,489		2,075		12,088		4,877
Selling, General &Administrative - Consultants	—		90		—		2,363
Total	$	8,181	$	3,204	$	18,748	$	9,237

Exercise of Warrants

During the three and nine months ended September 30, 2015, the Company issued 630,557 and 818,610 shares of common stock upon the exercise of warrants, respectively, pursuant to which the Company received $3.8 million and $4.3 million, respectively. The Company reclassified $19.1 million and $23.1 million of the derivative liability as equity for the value of these warrants on the date of exercise for the three and nine months ended September 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 September 30, 2015 was 2,691,589, 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
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

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

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

+ Details

SALE OF ASSETS	9 Months Ended
SALE OF ASSETS	Sep. 30, 2015
Sale Of Assets [Abstract]
SALE OF ASSETS	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 and transfer of the Pediatric PRV 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 each of the first and second anniversaries of the closing. The asset value of the Pediatric PRV was recorded at $96.3 million. In accordance with GAAP the Company recorded the future short term and long term payments at present value of $46.2 million and $44.9 million, respectively, at the date of the sale. The incremental gain from the sale of the asset was $140.0 million recorded during the 3 months ended September 30, 2015, net of $4.9 million in fees contractually due as part of the Cholbam^® acquisition. As of September 30, 2015, the present value of the two future payments from Sanofi related to the Pediatric PRV sale were $46.5 million, short term, and $45.3 million, long term. Imputed interest of $0.6 million was recorded during the period to interest income.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 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.
Inventory	Inventory Inventories are stated at the lower of cost or market. We determine the cost of our inventories, which include amounts related to materials, third-party contract manufacturing and packaging services, on a first-in, first-out basis. We capitalize inventory costs at our suppliers when, based on management’s judgment, the realization of future economic benefit is probable at each given supplier.
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 nine months ended September 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 nine months ended September 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 nine months ended September 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. The impact for the three and nine months ended September 30, 2014, was a decrease to operating expenses of $1.6 million, and an increase to operating expenses of $0.2 million, respectively, and an decrease to net loss of $1.6 million, and an increase to net loss of $0.2 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. 2014-9, 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 for which the entity expects to be entitled 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 2014-9 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. 2015-3, 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. In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. This ASU eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The ASU is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. The ASU is applied prospectively to adjustments to provisional amounts that occur after the effective date. That is, the ASU applies to open measurement periods, regardless of the acquisition date. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnotes disclosures.

- Definition

Disclosure of accounting policy for major classes of inventories, bases of stating inventories (for example, lower of cost or market), methods by which amounts are added and removed from inventory classes (for example, FIFO, LIFO, or average cost), loss recognition on impairment of inventories, and situations in which inventories are stated above cost. If inventory is carried at cost, this disclosure includes the nature of the cost elements included in inventory.

+ References + Details

BUSINESS ACQUISITION (Tables)

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Schedule of purchase price allocation

The purchase price allocation of $91.3 million as of the acquisition completion date of March 31, 2015 was as follows (in thousands):




Cash paid upon consummation	$	33,430
Present value of contingent consideration and service fees	42,010
Fair Value of 661,279 shares issued to Asklepion	15,844
Total Purchase Price	$	91,284

Fair Value of Assets Acquired and Liabilities Assumed
Acquired product rights-Cholbam^® (Intangible Asset)	$	83,200
Pediatric Priority Review Voucher	96,250
Inventory	777
Deferred tax liability	(39,880		)
Total Allocation of Purchase Price	$	140,347
Bargain Purchase Gain	(49,063		)
Total Purchase Price	$	91,284

SHORT-TERM INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule of marketable securities

Investments consist of the following (in thousands):



	September 30, 2015		December 31, 2014
Marketable Equity Securities:
Common Stock	$	—	$	9,556
Marketable Other than Equity Securities:
Commercial paper	11,930		—
Corporate debt securities	72,746		—
Securities of government sponsored entities	10,005		—
Total Marketable Securities:	$	94,681	$	9,556

Schedule of available for sale securities

The following is a summary of short-term marketable securities classified as available-for-sale as of September 30, 2015 (in thousands):



	Contractual Maturity (in years)	Amortized Cost		Unrealized Gains		Unrealized Losses			Aggregate Estimated Fair Value
Marketable Other than Equity Securities:
Commercial paper	Less than 1	$	11,935	$	—	$	(5	)	$	11,930
Corporate debt securities	Less than 1	34,123		1		(42		)	34,082
Securities of government-sponsored entities	Less than 1	5,003		—		—			5,003
Total maturity less than 1 year		51,061		1		(47		)	51,015
Corporate debt securities	1 to 2	38,732		17		(85		)	38,664
Securities of government-sponsored entities	1 to 2	5,000		2		—			5,002
Total maturity 1 to 2 years		43,732		19		(85		)	43,666
Total available-for-sale securities		$	94,793	$	20	$	(132	)	$	94,681

The following is a summary of short-term marketable securities classified as available-for-sale as of December 31, 2014 (in thousands):



	Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Marketable Equity Securities:
Common Stock	$	5,160	$	4,499	$	(103	)	$	9,556
Total available-for-sale securities	$	5,160	$	4,499	$	(103	)	$	9,556

Schedule of fair value and unrealized losses for available for sale securities

The following table presents information about available-for-sale investments in an unrealized loss position as of September 30, 2015 (in thousands):



	Less Than 12 Months					12 Months or Greater				Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
September 30, 2015
Commercial paper	$	11,930	$	(5	)	$	—	$	—	$	11,930	$	(5	)
Corporate debt securities	62,492		(127		)	—		—		62,492		(127		)
Securities of government-sponsored entities	3,002		—			—		—		3,002		—
Total	$	77,424	$	(132	)	$	—	$	—	$	77,424	$	(132	)

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of assumptions for valuation of warrants



	September 30, 2015			December 31, 2014
Fair value of common stock	$	20.26		$	12.24
Expected life (in years), represents the weighted average period until next liquidity event	n/a**			0.33
Remaining life of the warrants (in years)	2.4 - 4.3			3.1 - 4.9
Risk-free interest rate	.75% – 1.21%			1.13-1.69%
Expected volatility	75-85%			85		%
Dividend yield	—		%	—		%

**There are no liquidity events expected within the life of the outstanding warrants.

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of fair value on a recurring basis



	As of September 30, 2015		Fair Value Hierarchy at September 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	$	94,681	$	—	$	94,681	$	—

Liabilities:
Derivative liability related to warrants	$	42,120	$	—	$	—	$	42,120
Contingent consideration	$	53,720	$	—	$	—	$	53,720



	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	(23,100		)
Issuance of Warrants	1,050
Change in estimated fair value of liability classified warrants	36,180
Balance at September 30, 2015	$	42,120

Schedule of summary of changes in estimated acquisition related contingent consideration

The following table sets forth a summary of changes in the estimated acquisition-related contingent consideration for the nine months ended September 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	39,107
Increase from revaluation of contingent consideration	7,026
Decrease of contingent consideration, asset divestiture	(604		)
Contractual Payments	(2,498		)
Contractual Payments Accrued at September 30, 2015	(948		)
Balance at September 30, 2015	$	53,720

INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of amortization expense

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Research and development	$	200	$	261	$	614	$	566
Selling, general and administrative	3,675		1,554		8,803		2,901
Total amortization expense	$	3,875	$	1,815	$	9,417	$	3,467

Schedule of Finite-Lived amortizable intangible assets

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



	September 30, 2015			December 31, 2014
Finite-lived intangibles Assets	$	176,749		$	99,867
Less: Accumulated amortization	(13,752		)	(5,602		)
Net carrying value	$	162,997		$	94,265

NOTES PAYABLE (Tables)

9 Months Ended

Sep. 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 September 30, 2015 (in thousands):



2015	$	—
2016	—
2017	—
2018	—
2019	46,000
Thereafter	—
	$	46,000

ACCRUED EXPENSES (Tables)

9 Months Ended

Sep. 30, 2015

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses at September 30, 2015 and December 31, 2014 consisted of the following (in thousands):



	September 30, 2015		December 31, 2014
Government rebates payable	$	5,226	$	1,353
Compensation related costs	5,094		8,163
Accrued royalties	4,249		—
Research and development	2,222		3,720
Selling, general and administrative	1,807		2,411
Severance related costs	1,548		5,710
Accounting and legal fees	1,186		1,208
Interest	799		2,318
Miscellaneous accrued	187		—
License fee	—		3,000
	$	22,318	$	27,883

INCOME (LOSS) PER SHARE (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

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

Basic and diluted net income (loss) per share is calculated as follows (net income amounts are stated in thousands):



	Three Months Ended
	September 30, 2015						September 30, 2014
	Shares	Net Income			EPS		Shares	Net Income			EPS
Basic Earnings per Share	35,741,877	$	105,578		$	2.95	26,682,510	$	(17,980	)	$	(0.67	)
Dilutive shares related to warrants	—	(29,991		)	—		—	(5,689		)	—
Change in fair value of derivative instruments	2,053,934	—			—		1,527,715	—			—
Convertible Debt	2,642,160	518			—		—	—			—
Restricted Stock	409,166	—			—		—	—			—
Stock Options	1,905,722	—			—		—	—			—
Dilutive Earnings per Share	42,752,859	$	76,105		$	1.78	28,210,225	$	(23,669	)	$	(0.84	)



	Nine Months Ended
	September 30, 2015					September 30, 2014
	Shares	Net Income		EPS		Shares	Net Income			EPS
Basic Earnings per Share	32,650,408	$	119,706	$	3.67	25,229,847	$	(81,911	)	$	(3.25	)
Convertible Debt	2,642,160	1,553		—		—	—			—
Restricted Stock	331,073	—		—		—	—			—
Stock Options	1,176,895	—		—		—	—			—
Dilutive Earnings per Share	36,800,536	$	121,259	$	3.30	25,229,847	$	(81,911	)	$	(3.25	)

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

For the three and nine months ended September 30, 2015 and 2014, the following shares were excluded because they were anti-dilutive:



	Three Months Ended		Nine Months Ended
	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Restricted Stock	26,033	438,416	41,132	467,162
Convertible Debt	—	2,642,160	—	3,106,345
Options	1,762,891	2,852,500	1,083,093	2,852,500
Warrants	—	337,500	2,691,589	337,500
Total Anti-Dilutive Shares	1,788,924	6,270,576	3,815,814	6,763,507

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 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 September 30, 2015 (in thousands):



	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating Leases	$	1,851	$	797	$	1,054	$	—	$	—
Other commitments	4,524		1,029		1,133		870		1,492
	$	6,375	$	1,826	$	2,187	$	870	$	1,492

STOCKHOLDERS' EQUITY/DEFICIT (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Schedule of restricted stock activity

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



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value
Outstanding December 31, 2014	691,668		$	10.83
Granted	253,000
Vested	(159,666	)
Forfeited/canceled	(66,668	)
Outstanding September 30, 2015	718,334		$	16.89

Schedule of stock option issuances and balances outstanding

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



	Shares Underlying Options		Weighted Average Exercise Price
Outstanding at December 31, 2014	4,892,208		$	10.93
Granted	2,095,000
Exercised	(401,740	)
Forfeited/canceled	(842,875	)
Outstanding at September 30, 2015	5,742,593		$	16.86

Schedule of Share based compensation expenses

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



	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Research and Development	$	2,692	$	1,039	$	6,660	$	1,997
Selling, General &Administrative	5,489		2,075		12,088		4,877
Selling, General &Administrative - Consultants	—		90		—		2,363
Total	$	8,181	$	3,204	$	18,748	$	9,237

DESCRIPTION OF BUSINESS (Details) $ in Thousands		3 Months Ended		9 Months Ended
DESCRIPTION OF BUSINESS (Details) $ in Thousands	Jul. 02, 2015 USD ($)	Sep. 30, 2015 USD ($) Employee	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) Employee	Sep. 30, 2014 USD ($)	Jun. 30, 2015 USD ($)
Description Of Business [Line Items]
Number of employees \| Employee		126		126
Gain on sale of assets		$ 140,004	$ 0	$ 140,004	$ 0
Contractually due to counter party		6,375		6,375
Asset purchase agreement
Description Of Business [Line Items]
Gain on sale of assets		140,000
Asset purchase agreement \| Asklepion Pharmaceuticals, LLC
Description Of Business [Line Items]
Amount received on sale of assets	$ 245,000
Fair value of Pediatric Priority Review Voucher						$ 96,300
Asset purchase agreement \| At Time Of Closing
Description Of Business [Line Items]
Present value of future payments to be received	46,200
Asset purchase agreement \| At Time Of Closing \| Asklepion Pharmaceuticals, LLC
Description Of Business [Line Items]
Amount received on sale of assets	150,000
Present value of future payments to be received	46,200
Asset purchase agreement \| Due On First And Second Anniversaries Of Closing
Description Of Business [Line Items]
Present value of future payments to be received	44,900
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	47,500
Present value of future payments to be received	$ 44,900
Aliceanna \| Asset purchase agreement
Description Of Business [Line Items]
Contractually due to counter party		$ 4,900		$ 4,900

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
	Feb. 03, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Significant Accounting Policies [Line Items]
Increase (decrease) in operating expenses		$ (1.6)		$ 0.2
Increase (decrease) in net income		$ 1.6		$ (0.2)
Stock Options
Significant Accounting Policies [Line Items]
Stock option granted to employees			2,095,000
Employee \| Stock Options
Significant Accounting Policies [Line Items]
Stock option granted to employees	1,928,000
Employee \| Restricted Shares
Significant Accounting Policies [Line Items]
Restricted shares granted to employee	230,000

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
INCOME TAXES (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015	Dec. 31, 2014
Income Taxes [Line Items]
Effective income tax rate percentage	26.90%	0.00%	(1.10%)	2.90%
Unrecognized tax benefits	$ 400,000		$ 400,000			$ 0
Net increase in unrecognized tax benefits			400,000
Cholbam
Income Taxes [Line Items]
Deferred tax liability					$ 39,900,000
Indemnification asset \| Manchester Pharmaceuticals, LLC.
Income Taxes [Line Items]
Indemnification Asset	1,500,000		$ 1,500,000			$ 1,500,000
PRV
Income Taxes [Line Items]
Total tax expense from the sale of PRV	$ 38,800,000

BUSINESS ACQUISITION (Details) - USD ($) $ in Thousands			9 Months Ended
BUSINESS ACQUISITION (Details) - USD ($) $ in Thousands	Mar. 31, 2015	Feb. 12, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Business Acquisition [Line Items]
Cash payment			$ 2,498	$ 562
Acquisition-related contingent consideration			$ 48,651		$ 9,520
Asklepion Pharmaceuticals, LLC
Business Acquisition [Line Items]
Cash payment	$ 28,400
Common stock shares issued (in shares)	661,279
Value of common stock	$ 15,844
Acquisition-related contingent consideration	39,100
Fair value of Pediatric Priority Review Voucher	96,250
Purchase price allocation	91,284
Bargain purchase gain	49,063
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

BUSINESS ACQUISITION - Purchase Price Allocation (Details) - USD ($) $ in Thousands		9 Months Ended
	Mar. 31, 2015	Sep. 30, 2015	Sep. 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 and service fees	42,010
Fair Value of 661,279 shares issued to Asklepion	15,844
Total Purchase Price	91,284
Fair Value of Assets Acquired and Liabilities Assumed
Acquired product rights-Cholbam® (Intangible Asset)	83,200
Pediatric Priority Review Voucher	96,250
Inventory	777
Deferred tax liability	(39,880)
Total Allocation of Purchase Price	140,347
Bargain Purchase Gain	(49,063)
Total Purchase Price	$ 91,284

SHORT-TERM INVESTMENTS - Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	$ 94,681	$ 9,556
Common Stock
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	0	9,556
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	11,930	0
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	72,746	0
Securities of government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	$ 10,005	$ 0

SHORT-TERM INVESTMENTS - Available for Sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 94,793	$ 5,160
Unrealized Gains	20	4,499
Unrealized Losses	(132)	(103)
Aggregate Estimated Fair Value	94,681	9,556
Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	51,061
Unrealized Gains	1
Unrealized Losses	(47)
Aggregate Estimated Fair Value	51,015
1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	43,732
Unrealized Gains	19
Unrealized Losses	(85)
Aggregate Estimated Fair Value	43,666
Commercial paper \| Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	11,935
Unrealized Gains	0
Unrealized Losses	(5)
Aggregate Estimated Fair Value	11,930
Corporate debt securities \| Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	34,123
Unrealized Gains	1
Unrealized Losses	(42)
Aggregate Estimated Fair Value	34,082
Corporate debt securities \| 1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	38,732
Unrealized Gains	17
Unrealized Losses	(85)
Aggregate Estimated Fair Value	38,664
Securities of government sponsored entities \| Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,003
Unrealized Gains	0
Unrealized Losses	0
Aggregate Estimated Fair Value	5,003
Securities of government sponsored entities \| 1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,000
Unrealized Gains	2
Unrealized Losses	0
Aggregate Estimated Fair Value	$ 5,002
Corporate Common Stock
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		5,160
Unrealized Gains		4,499
Unrealized Losses		(103)
Aggregate Estimated Fair Value		$ 9,556

SHORT-TERM INVESTMENTS - Unrealized Loss Positions (Details) $ in Thousands	Sep. 30, 2015 USD ($)
Estimated Fair Value
Less Than 12 Months	$ 77,424
12 Months or Greater	0
Total	77,424
Unrealized Losses
Less Than 12 Months	(132)
12 Months or Greater	0
Total	132
Commercial paper
Estimated Fair Value
Less Than 12 Months	11,930
12 Months or Greater	0
Total	11,930
Unrealized Losses
Less Than 12 Months	(5)
12 Months or Greater	0
Total	5
Corporate debt securities
Estimated Fair Value
Less Than 12 Months	62,492
12 Months or Greater	0
Total	62,492
Unrealized Losses
Less Than 12 Months	(127)
12 Months or Greater	0
Total	127
Securities of government sponsored entities
Estimated Fair Value
Less Than 12 Months	3,002
12 Months or Greater	0
Total	3,002
Unrealized Losses
Less Than 12 Months	0
12 Months or Greater	0
Total	$ 0

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Warrant - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Derivative [Line Items]
Recorded gain on change in estimated fair value of warrants	$ 30.0	$ 6.4
Recorded loss on change in estimated fair value of warrants			$ 36.2	$ 14.3

DERIVATIVE FINANCIAL INSTRUMENTS - Valuation Assumptions (Details) - Warrant - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Derivative [Line Items]
Fair value of common stock (in dollars per share)	$ 20.26	$ 12.24
Expected life (in years), represents the weighted average period until next liquidity event		3 months 29 days
Expected volatility		85.00%
Dividend yield	0.00%	0.00%
Minimum
Derivative [Line Items]
Remaining life of the warrants (in years)	2 years 4 months 24 days	3 years 1 month 6 days
Risk-free interest rate	0.75%	1.13%
Expected volatility	75.00%
Maximum
Derivative [Line Items]
Remaining life of the warrants (in years)	4 years 3 months 18 days	4 years 10 months 24 days
Risk-free interest rate	1.21%	1.69%
Expected volatility	85.00%

FAIR VALUE MEASUREMENTS - Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Asset:
Marketable securities, available-for-sale	$ 94,681	$ 9,556
Significant unobservable inputs (Level 3)
Liabilities:
Contingent consideration	53,720	11,637
Recurring basis
Asset:
Marketable securities, available-for-sale	94,681	9,556
Liabilities:
Derivative liability related to warrants	42,120	27,990
Contingent consideration	53,720	11,637
Recurring basis \| Quoted prices in active markets (Level 1)
Asset:
Marketable securities, available-for-sale		9,556
Recurring basis \| Significant other observable inputs (Level 2)
Asset:
Marketable securities, available-for-sale	94,681
Recurring basis \| Significant unobservable inputs (Level 3)
Liabilities:
Derivative liability related to warrants	42,120	27,990
Contingent consideration	$ 53,720	$ 11,637

FAIR VALUE MEASUREMENTS - Warrants Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 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	$ (23,100)	$ (23,365)
Warrants liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	27,990
Reclassification of derivative liability to equity upon exercise of warrants	(23,100)
Issuance of Warrants	1,050
Change in estimated fair value of liability classified warrants	36,180
Ending Balance	$ 42,120

FAIR VALUE MEASUREMENTS - Acquisition-related Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase from revaluation of contingent consideration	$ 6,906	$ 0	$ 7,026	$ 0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning Balance			11,637
Present value of contingent consideration of Cholbam®, upon acquisition			39,107
Increase from revaluation of contingent consideration			7,026
Decrease of contingent consideration, asset divestiture			(604)
Contractual Payments			(2,498)
Contractual Payments Accrued at September 30, 2015			(948)
Ending Balance	$ 53,720		$ 53,720

FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Increase from revaluation of contingent consideration	$ 6,906	$ 0	$ 7,026	$ 0
Net income (loss)	105,578	(17,980)	119,706	(81,911)
Impairment of intangible assets	$ 4,710	$ 0	4,710	$ 0
Product Rights Chenodal
Business Acquisition [Line Items]
Increase from revaluation of contingent consideration			7,000
Net income (loss)			(6,600)
Other expenses
Business Acquisition [Line Items]
Impairment of intangible assets			$ 4,700

- Definition

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

+ References + Details

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Net book value of amortizable intangible assets	$ 162,997		$ 162,997		$ 94,265
Impairment of intangible assets	$ 4,710	$ 0	4,710	$ 0
Other expenses
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets			$ 4,700

INTANGIBLE ASSETS - Amortizable Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible Assets	$ 176,749	$ 99,867
Less: Accumulated amortization	(13,752)	(5,602)
Net carrying value	$ 162,997	$ 94,265

INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 3,875	$ 1,815	$ 9,417	$ 3,467
Research and development
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	200	261	614	566
Selling, general and administrative
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 3,675	$ 1,554	$ 8,803	$ 2,901

NOTES PAYABLE (Details) - USD ($)				1 Months Ended	3 Months Ended		9 Months Ended
NOTES PAYABLE (Details) - USD ($)	Jul. 01, 2015	Mar. 24, 2015	Jan. 12, 2015	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	May 29, 2014
Debt Instrument [Line Items]
Aggregate carrying value					$ 46,000,000		$ 46,000,000
Proceeds from equity financing		$ 140,000,000
Interest expense, net					700,000	$ 2,600,000	7,400,000	$ 4,800,000
Credit Facility
Debt Instrument [Line Items]
Credit Agreement amount			$ 30,000,000
Aggregate carrying value					$ 0		$ 0		$ 40,500,000
Weighted average annual interest rate percentage					11.00%		11.00%		11.00%
Cash payment			$ 600,000
Warrants exercisable to purchase up to aggregate share			125,000
Value of common stock			$ 1,100,000
Payment due to Asklepion upon the closing of the Company's acquisition			$ 27,000,000
Prepayment premiumm, amount	$ 2,300,000
Write off of debt discount and issuances	$ 4,200,000
Note Purchase Agreement \| Senior convertible notes due 2019
Debt Instrument [Line Items]
Credit Agreement amount										$ 46,000,000
Initial conversion price (in dollars per share)										$ 17.41
Interest rate percentage										4.50%
Aggregate carrying value					$ 43,700,000		$ 43,700,000		$ 43,300,000
Weighted average annual interest rate percentage					4.50%		4.50%		4.50%
Credit Agreement \| Credit Facility
Debt Instrument [Line Items]
Credit Agreement amount				$ 45,000,000
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%

NOTES PAYABLE - Debt Maturities (Details) $ in Thousands	Sep. 30, 2015 USD ($)
Debt Disclosure [Abstract]
2015	$ 0
2016	0
2017	0
2018	0
2019	46,000
Thereafter	0
Total	$ 46,000

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Government rebates payable	$ 5,226	$ 1,353
Compensation related costs	5,094	8,163
Accrued royalties	4,249	0
Research and development	2,222	3,720
Selling, general and administrative	1,807	2,411
Severance related costs	1,548	5,710
Accounting and legal fees	1,186	1,208
Interest	799	2,318
Miscellaneous accrued	187	0
License fee	0	3,000
Accrued expenses	$ 22,318	$ 27,883

INCOME (LOSS) PER SHARE - EPS Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Shares
Basic Earnings per Share (in shares)	35,741,877	26,682,510	32,650,408	25,229,847
Change in fair value of derivative instruments (in shares)	2,053,934	1,527,715
Convertible Debt (in shares)	2,642,160	0	2,642,160	0
Dilutive Earnings per Share (in shares)	42,752,859	28,210,225	36,800,536	25,229,847
Net Income
Basic Earnings per Share	$ 105,578	$ (17,980)	$ 119,706	$ (81,911)
Dilutive shares related to warrants	0	0
Convertible Debt	518	0	1,553	0
Dilutive Earnings per Share	$ 76,105	$ (23,669)	$ 121,259	$ (81,911)
Basic Earnings per Share, EPS (in dollars per share)	$ 2.95	$ (0.67)	$ 3.67	$ (3.25)
Diluted Earnings per Share, EPS (in dollars per share)	$ 1.78	$ (0.84)	$ 3.30	$ (3.25)
Restricted Stock
Shares
Dilutive securities (in shares)	409,166	0	331,073	0
Net Income
Dilutive securities	$ 0	$ 0	$ 0	$ 0
Stock Options
Shares
Dilutive securities (in shares)	1,905,722	0	1,176,895	0
Net Income
Dilutive securities	$ 0	$ 0	$ 0	$ 0
Warrant
Shares
Dilutive shares related to warrants (in shares)	0	0
Net Income
Dilutive securities	$ (29,991)	$ (5,689)

INCOME (LOSS) PER SHARE - Antidilutive Shares (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	1,788,924	6,270,576	3,815,814	6,763,507
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	26,033	438,416	41,132	467,162
Convertible Debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	0	2,642,160	0	3,106,345
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	1,762,891	2,852,500	1,083,093	2,852,500
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	0	337,500	2,691,589	337,500

COMMITMENTS AND CONTINGENCIES - Contractual Commitments (Details) $ in Thousands	Sep. 30, 2015 USD ($)
Operating Leases
Total	$ 1,851
Less than 1 year	797
1-3 years	1,054
3-5 years	0
More than 5 years	0
Other commitments
Total	4,524
Less than 1 year	1,029
1-3 years	1,133
3-5 years	870
More than 5 years	1,492
Total
Total	6,375
Less than 1 year	1,826
1-3 years	2,187
3-5 years	870
More than 5 years	$ 1,492

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended
	Oct. 19, 2015	Mar. 31, 2015
Lease Agreement
Commitment And Contingency [Line Items]
Lease termination fee		$ 80
Term for agreement to sublease (in years)		3 years
Annual rent		$ 56
Subsequent Event \| Donoghue v. Retrophin, Inc.
Commitment And Contingency [Line Items]
Litigation settlement	$ 2,025
Subsequent Event \| Plaintiffs \| Donoghue v. Retrophin, Inc.
Commitment And Contingency [Line Items]
Litigation settlement	$ 625

STOCKHOLDERS' EQUITY/DEFICIT - Restricted Shares Activity (Details) - Restricted Stock Units - $ / shares	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Number of Restricted Stock Units
Beginning Balance (in shares)	691,668,000
Granted (in shares)	253,000,000
Vested (in shares)	(159,666,000)
Forfeited/canceled (in shares)	(66,668,000)
Ending Balance (in share)	718,334,000
Weighted Average Grant Date Fair Value
Balance (in dollars per share)	$ 16.89	$ 10.83

STOCKHOLDERS' EQUITY/DEFICIT - Stock Option Activity (Details) - Stock Options - $ / shares	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares exercisable (in shares)	1,800,000
Weighted average exercise price (in dollars per share)	$ 11.69
Shares Underlying Options
Beginning Balance (in shares)	4,892,208
Granted (in shares)	2,095,000
Exercised (in shares)	(401,740)
Forfeited/canceled (in shares)	(842,875)
Ending Balance (in shares)	5,742,593
Weighted Average Exercise Price
Balance (in dollars per share)	$ 16.86	$ 10.93

STOCKHOLDERS' EQUITY/DEFICIT - Stock based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 8,181	$ 3,204	$ 18,748	$ 9,237
Research & Development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2,692	1,039	6,660	1,997
Selling, General &Administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 5,489	2,075	$ 12,088	4,877
Selling, General & Administrative-Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 90		$ 2,363

STOCKHOLDERS' EQUITY/DEFICIT - 2015 Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands		9 Months Ended
	Mar. 24, 2015	Sep. 30, 2015	Sep. 30, 2014
Equity [Abstract]
Issuance of common stock in public offering (in shares)	7,866,000
Price per common share (in dollars per 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 - Exercise of Warrants (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Equity [Abstract]
Number of shares of common stock issued upon exercise of warrants	630,557	818,610
Proceeds from issuance for warrants	$ 3.8	$ 4.3
Reclassified derivative liability as equity for warrants on date of exercise	$ 19.1	$ 23.1
Warrants outstanding	2,691,589	2,691,589	3,421,255

SALE OF ASSETS (Details) - 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 - Pediatric PRV (Details) - USD ($) $ in Thousands		3 Months Ended
	Jul. 02, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Sale Of Assets [Line Items]
Note receivable		$ 46,526		$ 0
Long term note receivable		45,259		$ 0
Asset purchase agreement
Sale Of Assets [Line Items]
Imputed interest amount		600
Asset purchase agreement \| Asklepion Pharmaceuticals, LLC
Sale Of Assets [Line Items]
Proceeds from Sale of Intangible Assets	$ 245,000
Fair value of Pediatric Priority Review Voucher			$ 96,300
Gain on sale of assets		140,000
Asset purchase agreement \| At Time Of Closing
Sale Of Assets [Line Items]
Present value of future payments to be received	46,200
Asset purchase agreement \| At Time Of Closing \| Asklepion Pharmaceuticals, LLC
Sale Of Assets [Line Items]
Proceeds from Sale of Intangible Assets	150,000
Present value of future payments to be received	46,200
Asset purchase agreement \| Due On First And Second Anniversaries Of Closing
Sale Of Assets [Line Items]
Present value of future payments to be received	44,900
Asset purchase agreement \| Due On First And Second Anniversaries Of Closing \| Asklepion Pharmaceuticals, LLC
Sale Of Assets [Line Items]
Proceeds from Sale of Intangible Assets	47,500
Present value of future payments to be received	$ 44,900
Asset purchase agreement \| Due On First Anniversary
Sale Of Assets [Line Items]
Note receivable		46,500
Asset purchase agreement \| Due On Second Anniversary
Sale Of Assets [Line Items]
Long term note receivable		45,300
Aliceanna
Sale Of Assets [Line Items]
Contractually due to related party		$ 4,900