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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2015	Feb. 24, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	Retrophin, Inc.
Entity Central Index Key	0001438533
Trading Symbol	rtrx
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding		36,508,852
Entity Public Float			$ 1,146,903,448
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 37,805	$ 18,204
Marketable securities	191,799	9,556
Accounts receivable, net	12,458	7,960
Inventory, net	2,536	801
Prepaid expenses and other current assets	2,378	813
Prepaid taxes	8,107	0
Note receivable, current	46,849	0
Total current assets	301,932	37,334
Property and equipment, net	428	671
Other asset	1,995	2,265
Intangible assets, net	161,536	94,265
Goodwill	936	936
Note receivable, long-term	45,573	0
Total assets	512,400	135,471
Current liabilities:
Deferred technology purchase liability	0	1,000
Accounts payable	7,639	7,124
Accrued expenses	23,820	27,883
Guaranteed minimum royalty, short term	817	732
Other current liabilities	958	206
Business combination-related contingent consideration	13,754	2,118
Derivative financial instruments, warrants	38,810	27,990
Note payable	0	40,486
Total current liabilities	85,798	107,539
Convertible debt	43,902	43,288
Other noncurrent liabilities	3,066	1,617
Guaranteed minimum royalty, long term	10,068	10,617
Business combination-related contingent consideration, less current portion	45,267	9,520
Deferred income tax liability, net	24,328	141
Total liabilities	212,429	172,722
Stockholders' Equity (Deficit):
Preferred stock Series A $0.001 par value; 20,000,000 shares authorized; 0 issued and outstanding as of December 31, 2015 and 2014, respectively	0	0
Common stock $0.0001 par value; 100,000,000 shares authorized; 36,465,853 and 26,428,071 issued and 36,465,853 and 26,048,480 outstanding as of December 31, 2015 and 2014, respectively	4	3
Additional paid-in capital	365,802	140,851
Treasury stock, at cost, 0 and 379,591, respectively	0	(3,215)
Accumulated deficit	(65,153)	(179,175)
Accumulated other comprehensive income (loss)	(682)	4,285
Total stockholders' equity (deficit)	299,971	(37,251)
Total liabilities and stockholders' equity (deficit)	$ 512,400	$ 135,471

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	36,465,853	26,428,071
Common stock, shares outstanding	36,465,853	26,048,480
Treasury stock, shares	0	379,591

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Net product sales	$ 99,892	$ 28,203	$ 0
Operating expenses:
Cost of goods sold	2,185	571	0
Research and development	50,426	47,795	7,084
Selling, general and administrative	79,541	59,645	17,689
Change in fair value of contingent consideration	13,778	0	0
Impairment of intangible assets	4,710	0	0
Total operating expenses	150,640	108,011	24,773
Operating loss	(50,748)	(79,808)	(24,773)
Other expenses, net:
Litigation settlement gain	15,500	0	0
Other income (expense), net	(296)	2,352	370
Interest expense, net	(7,748)	(7,435)	(46)
Debt early payment penalty	(2,250)	0	0
Loss on extinguishment of debt	(4,151)	0	0
Finance expense	(600)	(4,721)	0
Change in fair value of derivative instruments	(33,307)	(23,786)	(10,100)
Gain on sale of assets	140,004	0	0
Bargain purchase gain	49,063	0	0
Total other income (expense), net	156,215	(33,590)	(9,776)
Income (loss) before benefit (provision) for income taxes	105,467	(113,398)	(34,549)
Income tax benefit (provision)	11,770	2,460	(76)
Net income (loss)	$ 117,237	$ (110,938)	$ (34,625)
Net income (loss) per common share, basic (in dollars per shares)	$ 3.49	$ (4.43)	$ (2.44)
Net income (loss) per common share, diluted (in dollars per shares)	$ 3.17	$ (4.43)	$ (2.44)
Weighted average common shares outstanding, basic (in shares)	33,560,249	25,057,509	14,205,264
Weighted average common shares outstanding, diluted (in shares)	37,581,439	25,057,509	14,205,264
Comprehensive income (loss):
Net income (loss)	$ 117,237	$ (110,938)	$ (34,625)
Foreign currency translation loss	(40)	0	0
Unrealized gain (loss) on sale of marketable securities	(4,927)	4,396	(110)
Comprehensive income (loss)	$ 112,270	$ (106,542)	$ (34,735)

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) $ in Thousands	Total	Employees	Non-employees	Private Placement, January 2013	Private Placement, February 2013	Private Placement, August 2013	February Investors	Public Offering, January 2014	Public Offering, March 2015	Common Stock	Common Stock Employees	Common Stock Non-employees	Common Stock Private Placement, January 2013	Common Stock Private Placement, February 2013	Common Stock Private Placement, August 2013	Common Stock February Investors	Common Stock Public Offering, January 2014	Common Stock Public Offering, March 2015	Common Stock in Treasury	Additional paid in capital	Additional paid in capital Employees	Additional paid in capital Non-employees	Additional paid in capital Private Placement, January 2013	Additional paid in capital Private Placement, February 2013	Additional paid in capital Private Placement, August 2013	Additional paid in capital February Investors	Additional paid in capital Public Offering, January 2014	Additional paid in capital Public Offering, March 2015	Accumulated other comprehensive loss	Accumulated Deficit
Balance at Dec. 31, 2012	$ (3,408)									$ 1										$ 30,203										$ (33,612)
Balance (in shares) at Dec. 31, 2012										(8,952,905)
Consultants settlement (in shares)										181,500
Consultants settlement	1,180																			1,180
Incentive shares forfeited (in shares)											(20,833)	(37,500)
Treasury stock (in shares)																			(130,790)
Treasury stock	(957)																		$ (957)
Shares issued on behalf of related party (in shares)										11,000
Shares issued on behalf of related party	81																			81
Adjustment to existing shareholder (in shares)										5,333
Adjustment to existing shareholders	10																			10
Unrealized gain/(loss) on marketable securities	(110)																												$ (110)
Net income (loss)	(34,625)																													(34,625)
Share based payments (in shares)												177,500
Share based payments		$ 1,424	$ 1,485																		$ 1,424	$ 1,485
Issuance of common stock, net of fees (in shares)													272,221	3,045,929	5,531,401	291,907
Issuance of common stock, net of fees				$ 817	$ 2,441	$ 10,671	$ 1,324								$ 1								$ 817	$ 2,441	$ 10,670	$ 1,324
Issuance of common shares under the equity incentive plan											135,000
Balance at Dec. 31, 2013	(19,667)									$ 2									$ (957)	49,635									(110)	(68,237)
Balance (in shares) at Dec. 31, 2013										(18,546,363)									(130,790)
Treasury stock (in shares)										(248,801)									(248,801)
Treasury stock	(2,258)									$ (2,300)									$ (2,258)
Unrealized gain/(loss) on marketable securities	4,395																												4,395
Net income (loss)	(110,938)																													(110,938)
Share based payments (in shares)										730,774
Share based payments	16,639																			16,639
Kyalin Payments (in shares)										96,628
Kyalin payments	1,000																			1,000
Issuance of common stock, net of fees (in shares)																	4,705,882
Issuance of common stock, net of fees								$ 36,836									$ 1										$ 36,835
Exercise of warrants and reclassification of derivative liability (in shares)										1,947,377
Exercise of warrants and reclassification of derivative liability	31,762																			31,762
August 2013 private placement settlement	272																			272
Issuance of common stock to convertible debt holders (in shares)										401,047
Issuance of common stock to convertible debt holders	4,708																			4,708
Balance at Dec. 31, 2014	(37,251)									$ 3									$ (3,215)	140,851									4,285	(179,175)
Balance (in shares) at Dec. 31, 2014										(26,428,071)									(379,591)
Treasury stock (in shares)										0
Unrealized gain/(loss) on marketable securities	(4,927)																												(4,927)
Net income (loss)	117,237																													117,237
Share based payments	25,900																			25,900
Issuance of common stock, net of fees (in shares)																		7,866,000
Issuance of common stock, net of fees									$ 139,987									$ 1										$ 139,986
Exercise of warrants and reclassification of derivative liability (in shares)										870,306
Exercise of warrants and reclassification of derivative liability	28,012																			28,012
Retirement of treasury stock (in shares)										(379,591)									379,591
Shares issued in connection with Cholbam acquisition																			$ 3,215											(3,215)
Vesting of stock for accrued severance	2,126																			2,126
Foreign currency translation adjustments	(40)																												(40)
Option inducement liability reversal and adjustments	3,840																			3,840
Issuance of common shares under the equity incentive plan										478,334
Shares issued in connection with Cholbam acquisition (in shares)										661,279
Shares issued in connection with Cholbam acquisition	15,844																			15,844
Stock option exercises (in shares)										541,454
Stock option exercises	6,818																			6,818
Excess tax benefits of stock option exercises	2,425																			2,425
Balance at Dec. 31, 2015	$ 299,971									$ 4									$ 0	$ 365,802									$ (682)	$ (65,153)
Balance (in shares) at Dec. 31, 2015										(36,465,853)									0

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (Parentheticals)	1 Months Ended
	Aug. 31, 2013 USD ($) $ / shares shares
Statement of Stockholders' Equity [Abstract]
Issuance of common stock, per share amount (in dollars per share)	$ 4.50
Underwriting fees and other offering costs \| $	$ 2,800,000
Payment made to investors for inducement to participate in financing \| $	$ 2,200,000
Issuance of common stock to investors, per share amount (in shares)	$ 4.50
Shares issued to investors for inducement to participate in financing \| shares	20,685
Shares issued to investors for inducement to participate in financing \| shares	271,222
Issuance of common stock to investors, per share amount (in shares)	$ 5.00

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash Flows From Operating Activities:
Net income (loss)	$ 117,237	$ (110,938)	$ (34,625)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	13,392	5,401	216
Realized (gain) loss on marketable securities	293	(2,349)	(374)
Gain upon divestiture of Pediatric Priority Review Voucher	(140,004)	0
Gain upon divestiture of assets to Turing Pharmaceuticals	(914)	0
Deferred income tax	(15,573)	(2,460)	76
Settlement expense	0	5,746	0
Loss on extinguishment of debt	4,151	0	0
Impairment of intangible assets	4,710	0	0
Loss on disposal of fixed assets	112	0
Derivative financial instruments, warrants, issued, recorded in interest expense	1,050	0	0
Interest receivable from notes receivable	(1,267)	0	0
Non-Cash interest expense	2,461
Amortization of debt discount and deferred financing costs	1,340	1,084	0
Amortization of premiums on investments	398	0	0
2013 private placement settlement	0	272	0
Non-cash financing cost	0	4,708	0
Loss on impairment of cost method purchase	0	400	0
Share based compensation	25,900	15,900	5,444
Shares issued on behalf of related party	0	0	81
Registration payment obligation expense	0	0	360
Reversal of registration payment obligation liability	0	0	(360)
Bargain purchase gain	(49,063)	0	0
Change in estimated fair value of contingent consideration, net of payments	13,288	0	0
Change in estimated fair value of liability classified warrants	33,307	23,786	10,100
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	(4,504)	(7,959)	0
Inventory	(1,174)	(282)	0
Prepaid expenses and other current assets	(966)	237	(1,349)
Prepaid income taxes	(8,107)	0	0
Accounts payable and accrued expenses	3,379	20,604	2,842
Net cash used in operating activities	(554)	(45,850)	(17,589)
Cash Flows From Investing Activities:
Purchase of fixed assets	(22)	(663)	(117)
Purchase of intangible assets	(7,008)	(3,301)	(5,433)
Security deposits	0	(93)	(106)
Repayment of technology license liability	0	0	(1,300)
Proceeds from the sale/maturity of marketable securities	9,977	6,493	4,385
Purchase of marketable securities	(198,530)	(10,149)	(4,124)
Proceeds from securities sold, not yet purchased	0	7,500	4,194
Securities sold, not yet purchased	0	(7,500)	(2,865)
Increase in restricted cash	0	0	(40)
Cash received upon sale of assets, net	148,411	0	0
Cash paid for investment	0	(400)	0
Cash paid upon acquisition, net of cash acquired	(33,430)	(29,150)	0
Net cash used in investing activities	(80,602)	(37,263)	(5,406)
Cash Flows From Financing Activities:
Repayment of net amounts due to related parties	0	0	(13)
Payment of acquisition-related contingent consideration	(3,938)	(1,163)	0
Payment of other liability	(2,000)	(500)	0
Payment of guaranteed minimum royalty	(2,000)	0	0
Repayment of note payable - related party	0	0	(885)
Investors' deposits	0	0	(100)
Proceeds from credit agreement	0	42,366	0
Proceeds from Note Purchase Agreement	0	42,924	0
Proceeds from exercise of warrants	4,475	8,398	0
Proceeds from exercise of stock options	6,818	0	0
Repayment of Manchester note payable	0	(31,283)	0
Excess tax benefit related to stock compensation	2,425	0	0
Proceeds received from issuance of common stock	149,487	40,000	30,937
Financing costs from issuance of common stock	(9,500)	(3,165)	0
Repayment of credit facility	(45,000)	0	0
Purchase of treasury stock, at cost	0	(2,257)	(958)
Net cash provided by financing activities	100,767	95,320	28,981
Effect of exchange rate changes on cash	(10)	0	0
Net increase in cash and cash equivalents	19,601	12,207	5,986
Cash and cash equivalents, beginning of year	18,204	5,997	11
Cash and cash equivalents, end of year	37,805	18,204	5,997
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	5,838	4,080	28
Cash paid for income taxes	9,610	5	0
Non-cash Investing and financing activities:
Accrued royalty in excess of minimum payable to the sellers of Thiola	8,219	0	0
Present value of contingent consideration payable to sellers of Asklepion Pharmaceuticals LLC	42,010	0	0
Shares issued in connection with Cholbam acquisition	15,844	0	0
Reclassification of derivative liability to equity due to exercise of warrants	23,537	23,365	0
Present value of contingent consideration payable to sellers of Manchester Pharmaceuticals, LLC.	0	12,800	0
Present value of guaranteed minimum royalty payable to sellers of Thiola	0	11,850	0
Note payable entered into upon consummation of Manchester Pharmaceuticals, LLC.	0	31,283	0
Unrealized loss on securities sold, not yet purchased	0	0	(113)
Adjustment to existing shareholders	0	0	10
Purchase of Kyalin in exchange for future consideration	0	1,000	2,635
Affiliate receivable applied to security deposit	0	0	138
Share based payment made to investors for inducement to participate in financing	0	0	1,324
Offering expense liability	0	0	747
Increase in basis of indefinite lived intangible assets acquired from Kyalin due to accrual of deferred tax liability	$ 0	$ 0	$ 2,525

DESCRIPTION OF BUSINESS

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

DESCRIPTION OF BUSINESS

Organization and Description of Business

Retrophin, Inc. (“we”, “our”, “us”, “Retrophin” and the “Company”) refers to Retrophin, Inc., a Delaware corporation, as well as our direct and indirect subsidiaries. Retrophin is a fully integrated biopharmaceutical company headquartered in San Diego, California focused on the development, acquisition and commercialization of therapies for the treatment of serious, catastrophic or rare diseases. We regularly evaluate and, where appropriate, act on opportunities to expand our product pipeline through licenses and acquisitions of products in areas that will serve patients with serious, catastrophic or rare diseases and that we believe offer attractive growth characteristics.

During the first quarter of 2015, the Company completed the acquisition of all worldwide rights, titles, and ownership of Cholbam (cholic acid), 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). The Company generated the first sales from Cholbam (known as Kolbam in the European Union) in April 2015. See Note 3. for further discussion.

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.


•	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.


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

We are currently developing the following pipeline products:

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 selectivity toward endothelin receptor type A. We have secured a license to sparsentan from Ligand and Bristol-Myers Squibb (who referred to it as DARA). We are developing sparsentan as a treatment for 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 and we anticipate having a top line data read out in the third quarter of 2016. Depending on 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. Sparsentan was granted fast track designation in June 2015 and orphan drug designation in the U.S. and EU in January and November 2015, respectively.

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 international 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 in May 2015 and was granted fast track designation in June 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.

2015 Public Offering

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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Principles of Consolidation

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

Use of Estimates

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

Revenue Recognition

Product sales for the year ended December 31, 2015 consisted of sales of Chenodal, Vecamyl (divested in 2015), Cholbam and Thiola. Product sales for the year ended December 31, 2014 consisted of sales of Chenodal, Vecamyl and Thiola. Revenue from product sales is recognized when persuasive evidence of an arrangement exists, title to product and associated risk of loss have passed to the customer, the price is fixed or determinable, collection from the customer is reasonably assured, the Company has no further performance obligations, and returns can be reasonably estimated. The Company sells in the United States and Canada through a direct-to-patient distributor. Under this distribution model, the Company records revenues when the distributor ships products to customers and such customers take title of the product.

The Company sells internationally, but these revenues are immaterial.

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

Deductions from Revenue

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

Prompt Pay Discounts: The Company offers discounts to certain customers for prompt payments. The Company estimates these discounts based on customer terms and historical trends. The Company accrues for the estimated prompt pay discount based on the gross amount of each invoice for those customers at the time of sale.

Product Returns: Consistent with industry practice, the Company offers its customers a limited right to return product purchased directly from the Company, which is principally based upon the product’s expiration date. Generally, shipments are only made upon a patient prescription so returns are immaterial.

Research and Development Costs

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

Employee Stock-Based Compensation

The Company recognizes all employee share-based compensation as a cost in the financial statements. Equity-classified awards principally related to stock options, restricted stock units (“RSUs”) and performance stock units ("PSUs"), are measured at the grant date fair value of the award. The Company determines grant date fair value of stock option awards using the Black-Scholes option-pricing model. The fair value of RSUs are determined using the closing price of the Company’s common stock on the grant date. For service based vesting grants, expense is recognized over the requisite service period based on the number of options or shares expected to ultimately vest. For PSUs, expense is recognized over the implicit period until the performance obligation is met, assuming that it is probable. No expense is recognized for PSUs until it is probable the vesting criteria will be satisfied. Forfeitures are estimated at the date of grant and revised when actual or expected forfeiture activity differs materially from original estimates.



	Vesting Term
Stock Options	1 to 3 years
Restricted Stock Units	1 to 3 years

Earnings (Loss) Per Share

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

Cash and Cash Equivalents

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

Marketable Securities

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

Trade and Notes Receivable

Trade Receivables, Net

Trade accounts receivable are recorded net of allowances for prompt payment and doubtful accounts. Allowances for rebate discounts are included in other current liabilities in the accompanying consolidated balance sheets. Estimates for allowances for doubtful accounts are determined based on existing contractual obligations, historical payment patterns and individual customer circumstances. The allowance for doubtful accounts was $0 and $0.1 million at December 31, 2015 and 2014, respectively. The bad debt expense recorded in the Statement of Operations and Comprehensive Income (Loss) is approximately $0 million and $0.1 million for 2015 and 2014, respectively.

Notes Receivable

Notes receivable arose from the sale of the pediatric priority review voucher (the "PRV"). On July 2, 2015, the Company sold and transferred the PRV to Sanofi for $245.0 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. In accordance with U.S. GAAP, the Company recorded the future short term and long term notes receivable at their present value of $46.2 million and $44.9 million, respectively, at the date of the sale using a discount rate of 2.8%. The accretion on the notes receivables totaled $1.3 million and is recorded in interest expense, net, in the Consolidated Statements of Operations and Comprehensive Income (Loss) for 2015. As of December 31, 2015, the present value of the current and long-term notes receivable was $46.8 million and $45.6 million, respectively. The Company noted no indications for impairment as of December 31, 2015.

Inventories and Related Reserves

Inventory is stated at the lower of cost or market. The Company determines the cost of inventory using the first-in, first-out, or FIFO, method. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated realizable value, and writes down such inventory as appropriate. In addition, the Company's products are subject to strict quality control and monitoring which the Company’s manufacturers perform throughout their manufacturing process. The Company does not directly manufacture any product. The Company has single suppliers for products Chenodal and Thiola, and prospectively arranges for manufacture from contract service providers for its product Cholbam. The value of inventory acquired in 2015 related to single supplier purchases was 63% for Thiola and 4% for Chenodal. The remaining 33% of inventory was related to the Cholbam product and was either related to materials acquired or subsequent third party manufacturing. The inventory reserve was $0.3 million and $0.1 at December 31, 2015 and 2014, respectively.

Inventory, net of reserve, consists of the following at December 31, 2015 and 2014 (in thousands):



	December 31, 2015		December 31, 2014
Raw material	$	289	$	315
Finished goods	2,247		486
Total inventory	$	2,536	$	801

Property and Equipment, net

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

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



Computer equipment	3 years
Furniture and fixtures	7 years
Leasehold improvements	Shorter of length of lease or life of the asset

Intangible Assets, Net

Intangible assets with finite useful lives consist primarily of product rights, licenses and customer relationships which are amortized on a straight line basis over 1 to 16 years. Intangible assets with finite useful lives are reviewed for impairment in accordance with ASC 360 and the useful lives are reassessed whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. The Company reviews for indications of impairment of intangibles on a quarterly basis.

For the year ended December 31, 2015 the company wrote off the intangible asset related to Carbetocin and recorded a loss of $4.7 million. There were no impairments related to intangible assets for 2014 or 2013.

Goodwill

Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. The Company first assesses the qualitative factors for reporting units that carry goodwill. If the qualitative assessment results in a conclusion that it is more likely than not that the fair value of a reporting unit exceeds the carrying value, then no further testing is performed for that reporting unit. When a qualitative assessment is not used, or if the qualitative assessment is not conclusive and it is necessary to calculate fair value of a reporting unit, then the impairment analysis for goodwill is performed at the reporting unit level using a two-step approach. The first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill utilizing an enterprise-value based premise approach. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined by using various valuation techniques including income (discounted cash flow), market and/or consideration of recent and similar purchase acquisition transactions. The Company performs its annual impairment review of goodwill in the fourth quarter and when a triggering event occurs between annual impairment tests. The Company has one segment and one reporting unit and as such reviews goodwill as one unit.

For the years ended December 31, 2015 and 2014 there were no impairments to goodwill.

Income Taxes

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

The standard addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company’s policy is to record estimated interest and penalty related to the underpayment of income taxes or unrecognized tax benefits as a component of its income tax provision.

Reclassifications

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

Patents

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

Derivative Instruments

The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then revalued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company calculates the fair value of the financial instruments using the Monte Carlo simulation pricing model, however, prior to January 1, 2015, the Company used the Binomial Lattice option pricing model. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity is assessed at inception, the fair value of the warrants is evaluated at the end of each reporting period (see Note 5 and Note 6).

Treasury Stock

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

Recently Issued Accounting Pronouncements

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

In May 2014, the 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 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 November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred taxes. This amendment requires that all deferred tax assets and liabilities, along with any related valuation allowances, be classified as noncurrent on the balance sheet. However, an entity shall not offset deferred tax liabilities and assets attributable to different tax jurisdictions. ASU 2015-17 is effective for annual and interim reporting periods ending after December 15, 2016. Early adoption is permitted, and the new guidance may be applied either prospectively or retrospectively. We have adopted this guidance prospectively as of December 31, 2015. Therefore, prior periods have not been adjusted to reflect this adoption. This change in accounting principle does not change our results of operations, cash flows or stockholders’ equity.

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

BUSINESS COMBINATION AND DIVESTITURE OF ASSETS

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

BUSINESS COMBINATION AND DIVESTITURE OF ASSETS

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 is also required to pay contingent consideration consisting of milestones and tiered royalties with a present value of $39.1 million.

The original 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 value 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 bargain purchase 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 included $83.2 million of intangible assets with definite lives related to product rights with values of $75.9 million for the U.S. and $7.3 million for the international rights. The useful lives related to the acquired product rights are expected to be approximately 10 years.

The contingent consideration of $39.1 million recorded during the year ended December 31, 2015 is related to an agreement to pay an additional cash amount based on the product performance through 2025. The accrued contingent consideration was recorded as a liability at acquisition-date fair value using the income approach with assumed discount rates of 19.0% over the applicable term. The undiscounted amount the Company could pay under the contingent consideration agreement is up to $16.3 million.

Service fees with a net present value of $2.9 million were recorded during the year ended December 31, 2015. The net present value is based upon $4.0 million in total payments over a four years period starting as of the acquisition date.

As part of the business combination the Company recorded a deferred tax liability of $39.9 million. The deferred tax liability is derived from the difference in the Company's book basis and tax basis in the assets acquired of $88.5 million. Our tax rate utilized is 45.4%. This reduced the Company's deferred tax asset, see Note 14.

The purchase price allocation of $91.3 million as of the acquisition completion date of March 31, 2015 is 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 is not presented, because the effects of such transaction is considered immaterial to the Company.

Acquisition of Manchester Pharmaceuticals LLC

On March 26, 2014 (the “Manchester Closing Date”), the Company acquired 100% of the outstanding membership interests of Manchester. Under the terms of the agreement, the Company paid $29.2 million upon consummation of the transaction, of which $3.2 million was paid by Retrophin Therapeutics International LLC, an indirect wholly owned subsidiary, for rights of product sales outside of the United States. Acquisition costs amounted to approximately $0.3 million and were recorded as selling, general, and administrative expense in the 2014 consolidated financial statements. The Company entered into a promissory note with Manchester for $33 million which was discounted to $31.3 million to be paid in three equal installments of $11 million within three, six, and nine months after the Manchester Closing Date. On June 30, 2014, the Company paid the sellers of Manchester $33 million in full satisfaction of the outstanding amount owed.

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

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

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

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

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



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

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

Divestiture of Assets:

Sale of Assets to Sanofi

The FDA granted Asklepion Pharmaceuticals, LLC 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 for $245.0 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. In accordance with U.S. GAAP, the Company recorded the future short term and long term notes receivable at their present value of $46.2 million and $44.9 million, respectively, at the date of the sale using a discount rate of 2.8%. The gain from the sale of the asset was approximately $140.0 million, net of $4.9 million in fees contractually due as part of the Cholbam acquisition.

Sale of Assets to Turing Pharmaceuticals

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

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

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

On February 13, 2015, the Company entered into an asset purchase agreement with Turing Pharmaceuticals pursuant to which the Company sold Turing Pharmaceuticals its Oxytocin Assets, including related inventory, for a purchase price of $1.1 million, and pursuant to which Turing Pharmaceuticals also assumed certain liabilities related to the Oxytocin Assets.See Note 16 for further discussion

The effect on the Statement of Operations and Comprehensive Income (Loss) for 2015 is a gain of approximately $0.9 million. See Note 9. to the financial statements for more information.

- 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
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-Name Accounting Standards Codification
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-Section 50
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

MARKETABLE SECURITIES

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

MARKETABLE SECURITIES

The Company's marketable securities as of December 31, 2015 were 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.

Marketable securities consist of the following (in thousands):



	December 31,
	2015		2014
Marketable Equity Securities:
Common Stock	$	—	$	9,556
Marketable Other than Equity Securities:
Commercial paper	31,864		—
Corporate debt securities	125,547		—
Securities of government sponsored entities	34,388		—
Total Marketable Securities:	$	191,799	$	9,556

The following is a summary of short-term marketable securities classified as available-for-sale as of December 31, 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	$	31,899	$	6	$	(41	)	$	31,864
Corporate debt securities	Less than 1	43,464		—		(78		)	43,386
Total maturity less than 1 year		75,363		6		(119		)	75,250
Corporate debt securities	1 to 2	82,557		—		(396		)	82,161
Securities of government-sponsored entities	1 to 2	34,522		2		(136		)	34,388
Total maturity 1 to 2 years		117,079		2		(532		)	116,549
Total available-for-sale securities		$	192,442	$	8	$	(651	)	$	191,799

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

During 2015, 2014 and 2013, the Company recognized a loss of $0.3 million, a gain of $2.3 million and a gain of $0.4 million on marketable securities, respectively. The Company had proceeds from the sale or maturity of marketable securities of $10.0 million, $6.5 million and $4.4 million for 2015, 2014 and 2013, respectively. For the year ended December 31, 2015 the Company reclassifed $0.3 million from Other Comprehensive Income (Loss) to the Statement of Operations

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 December 31, 2015 and 2014, the Company believed the cost basis for available-for-sale investments were recoverable in all material respects and there were no investments in an unrealized loss position for longer than 12 months.

- Definition

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

+ References + Details

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

Since 2013, the Company has issued 5 tranches of common stock purchase warrants to secure financing, remediate covenant violations related to the Credit Facility (See Note. 10) and provide consideration for Credit Facility amendments.

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

Issuances

2015

On January 12, 2015, the Company entered into Amendment No. 3 to the Credit Facility discussed in Note 8, in which the Company obtained a commitment letter from Athyrium Capital Management, LLC and Perceptive Credit Opportunities Fund, LP (collectively, the “ Lenders”), the Company’s existing lenders, providing a commitment for a senior secured incremental term loan under the Company’s existing term loan facility in an aggregate principal amount of $30 million, which could have been drawn down at the Company’s option to finance the acquisition of the assets of Asklepion Pharmaceuticals, LLC.

As consideration for the commitment letter for the Incremental Loan, the Company made a cash payment to the Lenders and issued the Lenders warrants initially exercisable to purchase up to an aggregate of 125,000 shares of the Company’s common stock. The Company recorded $1.05 million of interest expense related to the warrants upon issuance.

The Company calculated the fair value of the warrants using the Monte Carlo Simulation utilizing the following assumptions as of the grant date of the warrants:



Risk free rate	1.39		%
Expected volatility	85		%
Expected life (in years), represents the weighted average period until next liquidity event	0.3
Expected dividend yield	—
Exercise Price	$	13.25

2014

In connection with the execution of the Credit Facility, the Company issued warrants to the lenders under the Credit Facility, initially exercisable to purchase up to an aggregate of 337,500 shares of common stock of the Company. The Warrants will be exercisable in whole or in part, at an initial exercise price per share of $12.76 per share, which is subject to weighted-average anti-dilution protections. The Warrants may be exercised at any time upon the election of the holder, beginning on the date of issuance and ending on the fifth anniversary of the date of issuance.

The total grant date fair value of the Warrants was $2.5 million, was recorded as a derivative liability, and is included in the debt discount to the Note Payable in the consolidated balance sheets.

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



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

On November 13, 2014, the Company entered into Amendment No. 2 to the Credit Facility which allowed the Company to be in compliance with certain covenants as of September 30, 2014. In addition certain covenants related to the 4^th quarter of fiscal 2014 and 2015 were amended. As compensation for Amendment No. 2, the Company agreed to issue additional warrants to the lenders, initially exercisable to purchase an aggregate of 300,000 shares of common stock of the Company which were valued at $2.2 million as of November 13, 2014, with an exercise price of $9.96 per share, and was recorded in change in fair value of derivative instruments in the 2014 consolidated statements of operations.

Re-measurement

The warrants are re-measured at each balance sheet date based on estimated fair value. Changes in estimated fair value are recorded as non-cash valuation adjustments within other income (expenses) in the Company’s accompanying consolidated statements of operations. The Company recorded a loss on a change in the estimated fair value of warrants of $33.3 million, $23.8 million, and $10.1 million during the years ended December 31, 2015, 2014 and 2013, respectively.

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



	As of
	December 31, 2015			December 31, 2014
Fair value of common stock	$	19.29		$	12.24
Expected life (in years), represents the weighted average period until next liquidity event	n/a**			0.33 years
Remaining Life (in years) of the Warrants	2.1 – 4.0 years			3.1 – 4.9 years
Risk-free interest rate	1.11 – 1.59%			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.

The following tables presents the Company’s derivative warrant issuances and balances outstanding during the years ended December 31, 2015 and 2014:



		Weighted Average
	Warrants	Exercise Price		Grant Date Fair Value
Outstanding at December 31, 2013	4,782,249	$	5.04	$	3.13
Issued	637,500	11.44		6.49
Canceled	—	—		—
Exercised	1,998,394	4.70		3.05
Outstanding at December 31, 2014	3,421,355	$	6.43	$	3.79
Issued	125,000	13.25		8.40
Canceled	—	—		—
Exercised	880,807	5.35		3.23
Outstanding at December 31, 2015	2,665,548	$	7.05	$	4.20

The following information applies to derivative warrants outstanding at December 31, 2015:



Exercise Price		Number of Warrants	Weighted Average Remaining Contractual Life (years)	Number Exercisable
$	3.60	660,036	2.12	660,036
$	6.00	1,243,012	2.62	1,243,012
$	12.76	337,500	3.5	337,500
$	9.96	300,000	3.87	300,000
$	13.25	125,000	4.03	125,000

The total intrinsic value of derivative warrants outstanding and exercisable as of December 31, 2015 is $32.6 million. The Company’s closing stock price was $19.29 on December 31, 2015.

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 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.

In estimating the fair value of the Company’s derivative liabilities, the Company used the Monte Carlo Simulation as of December 31, 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 and cash equivalents, accounts receivable, notes receivable, deposits on license agreements, and accounts payable, due to their short term nature.

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, 2015 (in thousands):



	As of December, 2015		Fair Value Hierarchy at December 31, 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	$	191,799	$	—	$	191,799	$	—
Liabilities:
Derivative liability related to warrants	$	38,810	$	—	$	—	$	38,810
Business combination-related contingent consideration	$	59,021	$	—	$	—	$	59,021



	As of December, 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
Business combination-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 Level 3 derivative liability for the period from January 1, 2015 through December 31, 2015:



	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2015	$	27,990
Issuance of common stock warrants	1,050
Reclassification of derivative liability to equity upon exercise of warrants	(23,537		)
Change in estimated fair value of liability classified warrants	33,307
Balance at December 31, 2015	$	38,810

The following table sets forth a summary of changes in the estimated fair value of the Company’s Level 3 derivative liability for the period from January 1, 2014 through December 31, 2014:



	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2014	$	25,037
Issuance of common stock warrants	2,531
Reclassification of derivative liability to equity upon exercise of warrants	(23,364		)
Change in estimated fair value of liability classified warrants	23,786
Balance at December 31, 2014	$	27,990

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 business combination-related contingent consideration for the period from January 1, 2015 through December 31, 2015:



	Fair Value Measurements of Acquisition-Related Contingent Consideration (Level 3)
Balance at January 1, 2015	$	11,637
Present value of contingent consideration related to Cholbam acquisition, upon acquisition	39,107
Increase from revaluation of contingent consideration	13,778
Decrease of contingent consideration, asset divestiture	(604		)
Contractual Payments	(3,938		)
Contractual Payments accrued at December 31, 2015	(959		)
Balance at December 31, 2015	$	59,021

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



	Fair Value Measurements of Acquisition-Related Contingent Consideration
Balance at January 1, 2014	$	—
Present value of contingent consideration related to Manchester acquisition, upon acquisition	12,800
Contractual Payments	(1,163		)
Balance at December 31, 2014	$	11,637

- 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

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NTANGIBLE ASSETS

Amortizable intangible assets

Ligand License Agreement

In fiscal 2013, the Company entered into an agreement with Ligand Pharmaceuticals Incorporated for a worldwide sublicense for $2.5 million to develop, manufacture and commercialize a drug technology compound including RE-021 or sparsentan (the “Ligand License Agreement”). The cost of the Ligand License Agreement, which is presented net of amortization in the accompanying consolidated balance sheet in intangible assets, net, is being amortized to research and development on a straight-line basis through September 30, 2023. As consideration for the license, we are required to make substantial payments upon the achievement of certain milestones, totaling up to $105.5 million. Should we commercialize sparsentan or any products containing related compounds, we will be obligated to pay to Ligand an escalating annual royalty between 15% and 17% of net sales of all such products.

In September 2015, the license agreement was amended to facilitate sub-licensing in Asia-Pacific. As consideration for the amendment the Company paid $1.0 million. The Company has $3.3 million in intangibles related the Ligand license agreement as December 31, 2015.

Carbetocin Technology

In September 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 consolidated statement of operations and comprehensive income (loss).

Manchester Pharmaceuticals LLC

The Company acquired intangible assets with finite lives related to the Chenodal product rights, trade names, and customer relationships with the values of $71.4 million, $0.2 million, and $0.4 million, respectively. The useful lives related to the acquired product rights, trade names, and customer relationships are expected to be approximately 16, 1 and, 10 years, respectively. Amortization of product rights, trade names and customer relationships are being recorded in selling, general and administrative expense over their respective lives.

In 2015, the Company divested the assets related to Vecamyl, valued at $3.6 million, to Turing Pharmaceuticals. The remaining product rights from the Manchester business combination relate to Chenodal and are $67.8 million as of December 31, 2015.

Thiola License Agreement

In 2014, the Company entered into a license agreement with Mission Pharmacal, in which the Company obtained an exclusive, royalty-bearing license to market, sell and commercialize Thiola (Tiopronin) in the United States and Canada, and a non-exclusive license to use know-how relating to Thiola to the extent necessary to market Thiola. The initial term of the license is 10 years and will automatically renew thereafter for periods of one year.

The Company paid Mission an up-front license fee of $3 million and will pay guaranteed minimum royalties during each calendar year the greater of $2 million or twenty percent (20%) of the Company’s net sales of Thiola through June 30, 2024. As of December 31, 2015, the present value of guaranteed minimum royalties payable is $10.9 million using a discount rate of approximately 11% based on the Company’s current borrowing rate. As of December 31, 2015, the guaranteed minimum royalty current and long term liability is approximately $0.8 million and $10.1 million, respectively, and is recorded as guaranteed minimum royalty in the consolidated balance sheet. The Company has capitalized $24.1 million related to the Thiola asset which consists of the up-front license fee, professional fees, present value of the guaranteed minimum royalties and any additional payments through 2015 in excess of minimum royalties. There is 8.4 years remaining in the initial term of the license agreement.

Cholbam (Kolbam) Asset Purchase

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 PRV. The Company capitalized $75.9 million and approximately $7.3 million for the US and International economic interest, respectively.

Amortizable intangible assets as of December 31, 2015 (in thousands):



		As of December 31, 2015
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Chenodal Product Rights	16	$	67,849	$	(7,489	)	$	60,360
Thiola License	10	24,133		(2,793		)	21,340
Economic Interest - U.S. revenue Cholbam	10	75,900		(5,715		)	70,185
Economic Interest - Int'l revenue Cholbam	10	7,336		(552		)	6,784
Ligand License	11	3,300		(765		)	2,535
Manchester Customer Relationships	10	403		(71		)	332
Manchester Trade Name	1	175		(175		)	—
Total		$	179,096	$	(17,560	)	$	161,536

Amortizable intangible assets as of December 31, 2014 (in thousands):



		As of December 31, 2014
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Chenodal and Vecamyl Product Rights	16	$	71,372	$	(3,420	)	$	67,952
Thiola License	10	15,049		(870		)	14,179
Syntocinon License	20	5,000		(190		)	4,810
Carbetocin Assets	10	5,568		(430		)	5,138
Ligand License	11	2,300		(527		)	1,773
Manchester Customer Relationships	10	403		(31		)	372
Manchester Trade Name	1	175		(134		)	41
Total		$	99,867	$	(5,602	)	$	94,265

The following table summarizes amortization expense for the twelve months ended December 31, 2015, 2014 and 2013 (in thousands):



	Twelve months ended December 31,
	2015		2014		2013
Research and development	$	697	$	823	$	324
Selling, general and administrative	12,534		4,455		—
Total amortization expense	$	13,231	$	5,278	$	324

As of December 31, 2015, amortization expense for the next five years is expected to be as follows (in thousands):



2016	$	15,517
2017	15,474
2018	15,474
2019	15,474
2020	15,476
Thereafter	84,121
Total	$	161,536

As of December 31, 2015 the remaining weighted average period of amortization is 11.06 years.

ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

ACCRUED EXPENSES

Accrued expenses consist of the following at December 31, 2015 and 2014:



	December 31, 2015		December 31, 2014
Compensation related costs	$	7,143	$	8,163
Severance related costs	315		5,710
Research and development	4,281		3,720
License fee	—		3,000
Legal fees	882		1,208
Interest	259		2,318
Government rebate reserves	3,158		1,353
Selling, general and administrative	2,703		2,411
Royalty/contingent consideration	4,688		—
Miscellaneous	391		—
	$	23,820	$	27,883

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS In the second quarter of 2013, the Company, its then-current Chief Executive Officer and a related party, a former investor in the Company that was previously managed by the Company’s then-current Chief Executive Officer, became party to a series of agreements to settle up to $2.3 million of liabilities, which Company management believes are the primary obligation of the related party. The Company and the related party have entered into indemnification agreements whereby the related party agreed to defend and hold the Company harmless against all such obligations and amounts, whether paid or unpaid, arising from these agreements. Notwithstanding the indemnification, the Company recorded a $2.3 million charge to operations for the year ended December 31, 2013 for the (a) $2.2 million of cash consideration, and (b) 11,000 shares of common stock valued at $0.1 million of non-cash consideration. The $2.3 million is entirely paid as of the date of this filing. In addition, the then-current Chief Executive Officer also agreed to provide one of the counter parties with 47,128 shares of his common stock in the Company as a separate component of one of these settlement agreements. Accordingly, the Company does not believe it is required to record a liability for the share-based component of this specific agreement. There is uncertainty as to whether the related party will have sufficient liquidity to repay the Company or fund the indemnification agreements should it become necessary. Concurrent with the execution of such settlement agreements, the Company and the related party entered into promissory notes whereby the related party agreed to pay the Company the principal amount of $2.3 million plus interest at an annualized rate of 5% as reimbursement of payments that the Company made to settle a portion of the agreements. On October 13, 2014, the Company entered into a binding Summary Separation Proposal with its then-current Chief Executive Officer. Among other matters, the Summary Separation Proposal set forth a summary of the terms for the sale of the Company’s Vecamyl, Syntocinon and ketamine licenses and assets to Turing Pharmaceuticals, a company controlled by the former Chief Executive Officer. On January 9, 2015, the Company entered into a purchase agreement with Turing Pharmaceuticals pursuant to which the Company sold Turing Pharmaceuticals the Sold Assets for a purchase price of $1.0 million, and pursuant to which Turing Pharmaceuticals also assumed all future liabilities related to the Sold Assets. On February 13, 2015, the Sellers entered into a purchase agreement with Waldun, pursuant to which the Sellers sold Waldun the Vecamyl Product Rights for a purchase price of $0.7 million. Waldun in turn sold the Vecamyl Product Rights to Turing Pharmaceuticals. In connection therewith, on February 13, 2015, the Company, together with Manchester, entered into an asset purchase agreement with Turing Pharmaceuticals, pursuant to which the Company sold Turing Pharmaceuticals the Inventory for a purchase price of $0.3 million, and pursuant to which Turing Pharmaceuticals also assumed certain liabilities related to the Vecamyl Product Rights and the Inventory. On February 13, 2015, the Company entered into an asset purchase agreement with Turing Pharmaceuticals pursuant to which the Company sold Turing Pharmaceuticals its Oxytocin Assets, including related inventory, for a purchase price of $1.1 million, and pursuant to which Turing Pharmaceuticals also assumed certain liabilities related to the Oxytocin Assets. The total impact to the Statement of Operations and Comprehensive Income (Loss) related to the divestitures for 2015 was a gain of $0.9 million.

- Definition

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

+ References + Details

NOTES PAYABLE

12 Months Ended

Dec. 31, 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 million aggregate principal senior convertible notes due 2019 (the “Notes”) which are convertible into shares of the Company’s common stock at an initial conversion price of $17.41 per share. The conversion price is subject to customary anti-dilution protection. The Notes bear interest at a rate of 4.5% per annum, payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2014. The Notes mature on May 30, 2019 unless earlier converted or repurchased in accordance with the terms. The aggregate carrying value of the Notes on their issuance was $43 million, which was net of the $3 million debt discount.

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

As of December 31, 2015 the fair value of a share of common stock was $19.29, exceeding the initial conversion price per share. If the debt holders were to convert the Company would be required to issue 2,642,160 shares assuming that no fundamental change in the Company has occurred. The Company has reserved sufficient shares of its Common Stock to satisfy the conversion requirements related to the Notes. As of December 31, 2015, the convert value exceeded the carrying value by approximately $7.1 million.

As of December 31, 2015 the fair value of the debt is impractical to estimate.

The net carrying amount of the Notes consists of the following (in thousands):



	As of December 31,
	2015			2014
Aggregate principle amount of Notes	$	46,000		$	46,000
Unamortized debt discount	(2,098		)	(2,712		)
	$	43,902		$	43,288

Credit Facility

In June 2014, the Company entered into a $45 million Credit Agreement (“Credit Facility”) which was scheduled 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.

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

The total grant date fair value of the Warrants was $2.5 million, was recorded as a derivative liability, and was included in the debt discount to the Note Payable in the 2014 consolidated balance sheets.

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



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

In November 2014, the Company entered into Amendment No. 2 (“Amendment No. 2”) to the Credit Facility which allowed the Company to be in compliance with certain covenants as of September 30, 2014. In addition certain covenants related to the fourth quarter of fiscal 2014 and 2015 were amended. As compensation for Amendment No. 2, the Company agreed to issue additional warrants to Athyrium Capital Management, LLC and Perceptive Credit Opportunities Fund, LP (collectively, the “Lenders”), initially exercisable to purchase an aggregate of 300,000 shares of common stock of the Company which were valued at $2.2 million and recorded in change in fair value of derivative instruments in the 2014 consolidated statements of operations.

On January 12, 2015, the Company entered into Amendment No. 3 (“Amendment No. 3”) to the Credit Facility in which the Company obtained a commitment letter from the 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 have been 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 consolidated statement of operations and comprehensive income (loss), for the write-off of the debt discount and equity issuances for the Credit Facility

Note Payable - Manchester Pharmaceuticals, LLC

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

Total interest expense, net, recognized for the years ended December 31, 2015, 2014 and 2013 was $7.7 million, $7.4 million and $0.0, respectively.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Leases and Sublease Agreements

California Office

San Diego Office

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

Carlsbad Office - Vacated

In October 2014, Retrophin ceased use of this facility and all employees moved into the new headquarters facility in San Diego California. As a result of vacating this location, the Company recorded a loss of $170,811 in the year ended December 31, 2014. On March 27, 2015 the Company was able to sublease a portion of this facility for the remaining lease term. The Company is in a listing agreement with a broker to market the remaining Carlsbad space for sublease.

Massachusetts Office

On July 31, 2014, the Company entered into a sublease agreement for new office space located in Cambridge, Massachusetts. The Company rents its office space for approximately $815,000 per annum. The sublease expires on December 31, 2016.

New York Office

On December 30, 2015, the Company amended the lease agreement for its offices in New York, New York to extend the lease term through November 2018 and is responsible for approximately $550,000 per annum in rent plus escalations.

Contractual Commitments

The following table summarizes our principal contractual commitments, excluding open orders that support normal operations, as of December 31, 2015 (in thousands):



	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating leases	$	2,671	$	1,026	$	1,645	$	—	$	—
Note payable	53,073		2,070		4,140		46,863		—
Sales support services	3,470		312		937		833		1,388
Product supply contracts	5,221		3,923		1,298		—		—
Purchase order commitments	596		258		338		—		—
	$	65,031	$	7,589	$	8,358	$	47,696	$	1,388

Legal Proceedings

On January 7, 2014, the Company sued Questcor Pharmaceuticals, Inc. (“Questcor”) in federal court in the Central District of California (Retrophin, Inc. v. Questcor Pharmaceuticals, Inc., Case No. SACV14-00026-JLS). The Company alleged that Questcor violated antitrust laws in connection with its acquisition of rights to the drug Synacthen, and sought injunctive relief and damages. The Company asserted claims under sections 1 and 2 of the Sherman Act, section 7 of the Clayton Act, California antitrust laws, and California’s unfair competition law. On June 4, 2015, pursuant to the terms of a Confidential Settlement Agreement and Release (the “Settlement Agreement”) the Company and Questcor filed a Stipulation of Dismissal, dismissing the Company’s lawsuit against Questcor. Under the terms of the Settlement Agreement, Questcor paid the Company $15.5 million, recorded as “Litigation Settlement Gain” in 2015, and the Company and Questcor granted a mutual release of all claims against the other.

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. Huang did not seek leave to re-plead his claims within the time set by the Court. Accordingly, on November 10, 2015, the Court ordered the case to be closed.

On September 19, 2014, purported shareholders 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 plaintiffs sought, 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 Court has approved a settlement between the parties, under which Mr. Shkreli is obligated to pay $2,025,000 to the Company and an additional $625,000 to Plaintiffs to compensate them for their legal fees. Shkreli has defaulted on the judgment and the Company and the Plaintiffs are taking steps to collect it. The Company has not recorded anything related the judgment for 2015. Any related amounts received will be recorded against equity when collected.

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, which were fully-briefed as of October 29, 2015. On December 1, 2015, counsel jointly informed the Court that the parties had reached a comprehensive settlement, subject to Court approval. On January 29, 2016, the parties filed motion for preliminary approval of the settlement and supporting papers, including a stipulation of settlement. On February 2, 2016, the Court preliminarily approved the settlement and scheduled a final approval hearing for June 10, 2016. Any amounts owed by the Company would be covered by Director and Officer Insurance.

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. On December 17, 2015, an indictment against the Company’s former Chief Executive Officer, Martin Shkreli, and its former outside counsel, Evan Greebel, was unsealed in the United States District Court for the Eastern District of New York. The Company has also been cooperating with a parallel investigation by the U.S. Securities and Exchange Commission (the “SEC”). On December 17, 2015, the SEC filed a civil complaint against Mr. Shkreli, Mr. Greebel, MSMB Capital Management LLC, and MSMB Healthcare Management LLC in the United States District Court for the Eastern District of New York.

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 have selected 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 December 31, 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.

Under the Company's bylaws, current and former officers and directors may seek advancement for certain expenses, including attorneys’ fees. The Company has recently received a number of significant requests for advancement, and is in discussions about how much of the amounts sought the Company is obligated to pay. In addition, for certain of these amounts, the Company’s obligation to pay advancement is eligible for reimbursement under the Company’s insurance policies. Therefore, the Company is unable at this time to estimate the amount of advancement currently sought from the Company that will ultimately be eligible for advancement, nor how much of the amounts eligible for advancement will be eligible for reimbursement under the Company’s insurance policies, and whether or not the amounts could be material.

STOCKHOLDERS’ EQUITY / DEFICIT

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

STOCKHOLDERS’ EQUITY / DEFICIT

Common Stock

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

Preferred Stock

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

Public Offering - 2015

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. We received net proceeds from the offering of $140.0 million after deducting underwriting fees and other offering costs of $9.5 million. The shares of common stock were offered by us pursuant to a shelf registration statement that was declared effective by the SEC on March 13, 2015.

2014 Incentive Compensation Plan

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

2015 Equity Incentive Plan

On June 8, 2015, the Company's stockholders approved the 2015 Equity Incentive Plan (the "2015 Plan"). The plan is intended as the successor to and continuation of the Plan. Stockholders approved 1.4 million new shares to be issued under the 2015 Plan, in addition to 0.6 million unallocated shares remaining available for issuance under the Plan that were added to the 2015 Plan.

Stock Options

The fair values of stock option grants during the year ended December 31, 2015, 2014 and 2013 were calculated on the date of grant using the Black-Scholes option pricing model, except for options granted for market and revenue performance criteria. Compensation expense is recognized over the period of service, generally the vesting period. During the year ended December 31, 2015, 2,285,000 stock options were granted by the Company. The following weighted average assumptions were used in the Black-Scholes options pricing model to estimate the fair value of stock options for the specified reporting periods:



	Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013
Risk free rate	1.53	%	1.55	%	1.51	%
Expected volatility	83	%	85	%	102	%
Expected life (in years)	5.8		5.8		5.8
Expected dividend yield	—		—		—

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

The following table summarizes our stock option activity and related information for the year ended December 31, 2015:



			Weighted Average
	Shares Underlying Options		Exercise Price		Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Exercisable at December 31, 2014	1,225,833		$	9.73	7.96	$	3,395

Outstanding at December 31, 2014	4,892,208		$	10.93	8.57	$	8,353
Granted	2,285,000		$	27.15	—	—
Forfeited and expired	(970,170	)	14.91		—	—
Exercised	(541,454	)	13.10		—	—
Outstanding at December 31, 2015	5,665,584		$	17.05	8.75	$	31,542
Exercisable at December 31, 2015	2,036,906		$	12.55	8.34	$	15,582

The weighted average grant date fair value of options granted is $19.02, $8.56, and $6.03 during the years ended December 31, 2015, 2014 and 2013, respectively. The aggregate intrinsic value for outstanding options is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock as of December 31, 2015 of $19.29. Unrecognized compensation cost associated with unvested stock options amounts to $47.4 million as of December 31, 2015, which will be expensed over a weighted average remaining vesting period of 1.9 years.

Restricted Shares

As of December 31, 2015, there was approximately $7.1 million of unrecognized compensation cost related to restricted shares granted. This amount is expected to be recognized over a weighted average period of 1.8 years.

Unvested restricted shares consist of the following as of December 31, 2015:



	Number of shares		Weighted Average Grant Date Fair Value
Unvested December 31, 2014	691,668		$	10.83
Granted	273,000		26.97
Vested	(478,334	)	11.56
Forfeited/cancelled	(56,668	)	13.97
Unvested December 31, 2015	429,666		$	20.38

Share Based Compensation

Total non-cash stock-based compensation expense consisted of the following for the years ended December 31, 2015 and 2014 (in thousands):



	Year Ended December 31,
	2015		2014		2013
Selling, general and administrative expenses	$	16,483	$	10,940	$	2,651
Research and development expenses	9,417		4,960		259
Total	$	25,900	$	15,900	$	2,910

Exercise of Warrants

During the twelve months ended December 31, 2015, the Company issued 870,306 shares of common stock upon the exercise of warrants for cash received by the Company in the amount of $4.5 million. The Company reclassified $23.5 million derivative liability as equity for the value of these warrants on the date of exercise. The warrants were revalued immediately prior to exercise and the change in the fair value of $2.8 million was recorded as other expense in the consolidated financial statements of the Company.

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

Treasury Stock

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

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

In March 2015 the Company retired 379,591 shares of its common stock held as treasury stock. This was the entire holding of treasury stock. No other shares were repurchased during the year.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

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

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

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

EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share (“EPS”) represent net income (loss) attributable to common shareholders divided by the weighted average number of common shares outstanding during the measurement period. Diluted EPS represents net income attributable to common shareholders divided by the weighted average number of common shares outstanding during the measurement period while also giving effect to all potentially dilutive common shares that were outstanding during the period using the treasury stock method.

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



	For the year ended December 31,
	2015					2014							2013
	Shares	Net Income		EPS		Shares	Net Income			EPS			Shares	Net Income			EPS
Basic Earnings per Share	33,560,249	$	117,237	$	3.49	25,057,509	$	(110,938	)	$	(4.43	)	14,205,264	$	(34,625	)	$	(2.44	)
Convertible Debt	2,642,160	1,881				—	—						—	—
Restricted Stock	290,966	—				—	—						—	—
Stock Options	1,088,064	—				—	—						—	—
Dilutive Earnings per Share	37,581,439	$	119,118	$	3.17	25,057,509	$	(110,938	)	$	(4.43	)	14,205,264	$	(34,625	)	$	(2.44	)

For the years ended December 31, 2015, 2014 and 2013, the following shares were excluded because they were anti-dilutive:



	For the year ended December 31,
	2015	2014	2013
Restricted Stock	22,069	—	—
Options	1,049,375	1,132,500	172,667
Warrants	2,665,548	3,083,855	4,462,426
Total Anti-Dilutive Shares	3,736,992	4,216,355	4,635,093

INCOME TAXES

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

For financial reporting purposes, net income before income taxes includes the following components (in thousands):



	Year Ended December 31,
	2015			2014			2013
United States	$	107,038		$	(112,558	)	$	(34,549	)
Foreign	(1,571		)	(840		)	—
Total	$	105,467		$	(113,398	)	$	(34,549	)

For the year ending December 31, 2015, the Company became a taxpayer and is therefore required to pay its estimated Federal and State income taxes quarterly throughout the year. The taxes paid were based upon estimated taxable income, which differed from our final results, so we have prepaid tax of $8.1 million, which we will apply to our 2016 quarterly tax estimates.

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



	2015			2014			2013
Current
Federal	$	2,094		$	—		$	—
State	1,709			—			—
	3,803			—			—
Deferred
Federal	(8,296		)	(1,886		)	(6,293		)
State	(7,277		)	(574		)	(3,435		)
	(15,573		)	(2,460		)	(9,728		)
Change in valuation allowance	—			—			9,804
Total tax provision (benefit)	$	(11,770	)	$	(2,460	)	$	76

During the year ended December 31, 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 future income pursuant to ASC 740, the Company was able to reduce its existing valuation allowance by $39.9 million. The deferred tax liabilities supporting the ability to realize the deferred tax assets in the above acquisition will reverse in the same period, are in the same jurisdiction and are of the same character as the temporary differences that gave rise to those deferred tax assets.

Additionally, during the year ended December 31, 2015, the Company recorded tax expense of $28.1 million primarily relating to current and deferred tax expense accrued on the sale of Priority Review Voucher (“PRV”), partially offset by release of valuation allowance pursuant to the utilization of net operating loss carry-forwards primarily related to the PRV sale.

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



	2015		2014		2013
Statutory rate - federal	35.00	%	(35.00	)%	(35.00	)%
State taxes, net of federal benefit	1.53	%	(6.77	)%	(6.70	)%
Change in FV of derivative liability (warrants)	10.89	%	7.40	%	10.46	%
Stock Based Compensation	—	%	5.51	%	2.30	%
Bargain purchase gain	(16.04	)%
Other permanent differences	3.68	%
Tax credits	(7.85	)%
Return to provision adjustments and other true-ups	(10.40	)%
Other	(0.79	)%	—	%	0.17	%
Change in valuation allowance	(27.02	)%	26.63	%	29.00	%
Income tax provision (benefit)	(11.00	)%	(2.23	)%	0.23	%

The significant components of the Company’s deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands):



	2015			2014
Deferred Tax Assets:
Net operating loss	$	2,870		$	42,280
Contingent consideration	21,575
Other accrued expenses	3,160
Stock based compensation	9,484
Other	—			1,427
	37,089			43,707
Deferred Tax Liabilities:
Intangible assets	(25,124		)	(7,830		)
Deferred gain on installment sale	(29,095		)
Tax basis depreciation less than book depreciation	(218		)
	(54,437		)	(7,830		)

Net deferred tax assets before valuation allowance	(17,348		)	35,877
Valuation allowance	(6,980		)	(36,018		)
Total deferred tax liability	$	(24,328	)	$	(141	)

At December 31, 2015, the Company has available unused U.S. federal net operating loss (“NOL”) carryforwards of $8.2 million and a minimal amount of state NOL carryforwards. The U.S. federal NOL carryforwards will expire beginning in 2030. The Company has international subsidiaries whose operations are not material for the year ended December 31, 2015.

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

The Company accounts for uncertain tax benefits in accordance with the provisions of ASC 740-10 of the Accounting for Uncertainty in Income Taxes. Of the total unrecognized tax benefits at December 31, 2015, approximately $1.8 million was recorded as a reduction to deferred tax assets. If recognized, $1.8 million of unrecognized tax benefits would affect the Company’s effective tax rate. Additionally, as of December 31, 2015 and 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.

The Company does not anticipate that the amount of unrecognized tax benefits as of December 31, 2015 will change materially within the 12 month period following December 31, 2015.

A reconciliation of the Company's unrecognized tax benefits for the years 2015 and 2014 is provided in the following table (in thousands):



	2015		2014
Balance as of January 1:	$	1,500	$	—
Increase in current period positions	1,424		1,500
Increase in prior period positions	400		—
Balance as of December 31:	$	3,324	$	1,500

The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company’s income tax returns are open to examination by federal, state and foreign tax authorities, generally for the years ended December 31, 2012 and later.

The Company’s policy is to record estimated interest and penalties related to the underpayment of income taxes or unrecognized tax benefits as a component of its income tax provision. During the years ended 2015, 2014 and 2013, the Company did not recognize any interest or penalties in its statements of operations and there were no accruals recorded for interest or penalties at December 31, 2015 and 2014.

INVESTIGATIONAL MATTERS	12 Months Ended
INVESTIGATIONAL MATTERS	Dec. 31, 2015
Accounting Changes and Error Corrections [Abstract]
INVESTIGATIONAL MATTERS	INVESTIGATIONAL MATTERS Investigation and Impact on Financial Statements In September 2014, the Company’s board of directors requested that its outside legal counsel conduct an investigation into various matters related to the former Chief Executive Officer of the Company. In January 2015, our board of directors appointed an Oversight Committee to oversee and direct the investigation and make findings and decisions related to the investigation. As a result of the investigation, the Oversight Committee determined that, throughout 2013 and 2014, the former Chief Executive Officer engaged in a series of transactions (the “Prior Transactions”), which involved individuals and entities that had been investors in investment funds previously managed by the former Chief Executive Officer (the “MSMB Entities”), pursuant to which assets of the Company were misappropriated. As a result of the Prior Transactions the financial statements contained in the Company’s Form 10-Q for the three months ended September 30, 2013 (the “2013 Q3 Form 10-Q”), the Company’s Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”) and the Company’s Forms 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014 (the “2014 Forms 10-Q”) contained errors related to the reporting of certain consulting agreements entered into as part of the Prior Transactions, the predominant purpose of which appears to have been to settle and release claims against the MSMB Entities or the former Chief Executive Officer personally. On February 19, 2015, our board of directors concluded that as a result of the errors related to such consulting agreements, the financial statements contained in the 2013 Q3 Form 10-Q and the 2013 Form 10-K should no longer be relied upon. Accordingly, the Quarterly Report on Form 10-Q for the quarter ending September 30, 2013 and the Annual Report on Form 10-K for the year ended December 31, 2013 were amended and filed with the SEC in July 2015. Stock Option Accounting The Company held a Special Meeting of Stockholders on February 3, 2015, at which its stockholders voted to approve a proposal ratifying the prior issuance of stock options to purchase 1,928,000 shares of common stock and 230,000 restricted shares of common stock granted to employees between February 24, 2014 and August 18, 2014 (the “Ratified Equity Grants”). The 2014 Forms 10-Q contained errors related to the non-cash compensation expense recognized in connection with the Ratified Equity Grants, because the grant/measurement date of the Ratified Equity Grants for financial accounting purposes did not occur until their ratification in 2015. The Company previously accounted for the Ratified Equity Awards as if a grant/measurement date for financial accounting purposes had occurred upon their issuance date, and recognized compensation expense for such Ratified Equity Awards based on the grant/measurement date value, which is amortized ratably to compensation expense and additional paid-in capital over the applicable service periods. The Company should have accounted for the Ratified Equity Awards as equity grants without a grant/measurement date, which are accounted for as “liability awards”, with compensation expense and an offsetting compensation liability recorded over the term of the award, and the liability award revalued at each reporting period based on changes in the Company’s stock price until it is ratified. The Company believes that the errors in the 2014 Forms 10-Q related to the non-cash compensation expense recognized in connection with the Ratified Equity Grants do not cause the financial statements included within the 2014 Forms 10-Q to be misleading, and therefore such financial statements can still be relied upon. The Company corrected such errors, including any related disclosures, in its 2014 Annual Report on Form 10-K, and restated those quarters in 2014 Form 10-Q filings. On February 27, 2015, the Company received a Public Letter of Reprimand from NASDAQ (the “Letter of Reprimand”), in accordance with Nasdaq Listing Rule 5810(c)(4). The Letter of Reprimand communicates NASDAQ’s belief that the interests of the Company’s shareholders were not materially adversely affected by the matters described above, and while not having been cured, the violation described above was remediated to the extent possible. Accordingly, NASDAQ does not believe that the delisting of the Company’s securities is an appropriate sanction, but rather, the circumstances warranted the issuance of the Letter of Reprimand. The issuance of the Letter of Reprimand completes NASDAQ’s review of the matters described above.

SEVERANCE AGREEMENTS	12 Months Ended
SEVERANCE AGREEMENTS	Dec. 31, 2015
Severance Agreements [Abstract]
SEVERANCE AGREEMENTS	SEVERANCE AGREEEMENTS On September 15, 2014, the Company entered into a separation agreement and release (the “Separation Agreement”) with Marc Panoff, the Company’s Chief Financial Officer, pursuant to which Mr. Panoff’s employment with the Company was terminated effective as of February 28, 2015. Under the terms of the Separation Agreement, Mr. Panoff will be entitled to receive: (i) severance payments equal to six months of his current base salary; (ii) 100% of his target bonus for 2014; (iii) accelerated vesting of 81,333 shares of restricted common stock of the Company; and (iv) benefits under the Company’s benefit plans, subject to the terms of each such plan. In conjunction with the Separation Agreement, the Company had initially recorded and accrued $0.1 million of severance expense through September 30, 2014 in connection with Mr. Panoff’s severance which was to be expensed ratably over the service period from September 15, 2014 through February 28, 2015. During the 4^th quarter of 2014, the Company determined that Mr. Panoff’s service to the Company was substantially completed prior to December 31, 2014 and as a result recorded the remaining unamortized severance expense related to his separation agreement of $1.1 million in the 4^th quarter of fiscal 2014 in selling, general and administrative in the consolidated statements of operations. Mr. Panoff’s target bonus which was included as part of his severance agreement was recognized ratably over the course of the fiscal year ended December 31, 2014. On October 13, 2014, Martin Shkreli resigned as a member of the Board and as an employee of the Company, and from any and all other positions that he held with the Company. On October 13, 2014, the Company entered into a resignation letter with Mr. Shkreli (“Separation Agreement”). As part of Mr. Shkreli’s Separation Agreement, Mr. Shkreli has been receiving cash severance, unpaid bonus and health insurance coverage, 12 months of continued vesting of time based stock options and no vesting of performance based stock options. Pursuant to the Separation Agreement, Mr. Shkreli’s market and performance based stock options have been forfeited. As a result, the Company recorded compensation expense in the amount of $0.5 million relating to Mr. Shkreli’s cash severance, unpaid bonus and health insurance coverage and compensation expense of $1.1 million related to the accelerated vesting of Mr. Shkreli’s time based stock options. On October 13, 2014, the Company signed a Letter of Intent for the terms for the sale of the Company’s Vecamyl, Syntocinon and ketamine licenses and assets to Turing Pharmaceuticals AG (“Turing Pharmaceuticals”), which includes an up-front payment to the Company of $3.0 million and the assumption of certain liabilities including license fees and royalties (the “Sale Transaction”). Martin Shkreli, the Company’s former Chief Executive Officer and Director, is the Chief Executive Officer of Turing Pharmaceuticals. The closing of the Sale Transaction was subject to various conditions, including the negotiation and execution of a binding definitive agreement between the Company and Turing Pharmaceuticals and the receipt of necessary third party consents. In connection with the Letter of Intent with Martin Shkreli, the Company recorded severance expense and accrued severance expense of $2.9 million as of and for the year ended December 31, 2014 which is the difference between of the net book value of the assets to be sold, the $3.0 million expected upfront payment, and $3.0 million of liabilities expected to be assumed. As both transactions were contemplated simultaneously, they were both considered in calculating the respective severance expense related to Mr. Shkreli’s termination. The full amount of the severance was recorded as of September 30, 2014 as that was the date that the Board replaced Martin Shkreli as Chief Executive Officer of the Company until a formal separation agreement could be finalized. As of September 30, 2014, it was deemed to be probable and estimable that Mr. Shkreli would enter into a Separation Agreement that would entitle him to severance benefits. Therefore the estimated severance that was booked as of the end of the third quarter is based on the best estimate currently available and the full severance amount was recorded as of September 30, 2014 as Mr. Shkreli was not required to perform any future service for the Company. For the year ended December 31, 2014, the Company recorded a total of $4.5 million severance expense in connection with Mr. Shkreli’s Separation Agreement which has been recorded in selling, general and administrative expenses in the consolidated statements of operations. On January 9, 2015, the Company entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Turing Pharmaceuticals pursuant to which the Company sold Turing Pharmaceuticals its ketamine licenses and assets (the “Ketamine Assets”) for a purchase price of $1.0 million. Turing Pharmaceuticals will also assume all future liabilities related to the Ketamine Assets. On February 13, 2015, Retrophin, Inc., its wholly-owned subsidiary Manchester and its other wholly-owned subsidiary Retrophin Therapeutics International, LLC (collectively, the “Sellers”), entered into a Purchase Agreement with Waldun, pursuant to which the Sellers sold Waldun their product rights to mecamylamine hydrochloride (also referred to as Vecamyl) (the “Vecamyl Product Rights”) for a purchase price of $0.7 million. Waldun in turn sold the Vecamyl Product Rights to Turing Pharmaceuticals. In connection therewith, on February 13, 2015, the Company and Manchester entered into an Asset Purchase Agreement with Turing Pharmaceuticals, pursuant to which the Company and Manchester sold Turing Pharmaceuticals their Vecamyl inventory for a purchase price of $0.3 million. Turing Pharmaceuticals will also assume certain liabilities related to the Vecamyl Product Rights and Inventory. Additionally, on February 13, 2015, the Company entered into an Asset Purchase Agreement with Turing Pharmaceuticals pursuant to which the Company sold Turing Pharmaceuticals its Syntocinon licenses and assets, including related inventory, for a purchase price of $1.1 million. Turing Pharmaceuticals will also assume certain liabilities related to the Syntocinon licenses and assets.

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On January 27, 2016 the Company reached a settlement with its former counsel, Katten Munchin Rosenman, LLP (Katten). Under the terms of the agreement, the parties exchanged general releases, including Katten's claim for $3.0 million in unpaid invoices for Katten legal services incurred during the 2012-2014. The Company will record a $3.0 million reversal of the obligation of the Katten legal invoices during the 1st quarter of 2016. 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 (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 (Sandler v. Retrophin, Inc., Case No. 14-cv-9915). On February 10, 2015, the Court consolidated the two actions. On December 1, 2015, counsel jointly informed the Court that the parties had reached a comprehensive settlement, subject to Court approval. On January 29, 2016, the parties filed motion for preliminary approval of the settlement and supporting papers, including a stipulation of settlement. On February 2, 2016, the Court preliminarily approved the settlement of $3.0 million and scheduled a final approval hearing for June 10, 2016. The $3.0 million will be covered by the Company's insurance. On February 17, 2016 Retrophin sued MSMB Capital Management LLC, MSMB Capital Management LP, MSMB Healthcare LP, MSMB Healthcare Investors, LLC, and MSMB Healthcare Management, LLC (the "MSMB Funds"), a series of hedge fund entities founded by Retrophin's former Chief Executive Officer Martin Shkreli to collect on five promissory notes between the MSMB Funds and Retrophin. The Company asked a judge to order the fund to repay $2.18 million in principal and 5 percent interest. The case is Retrophin Inc. v. MSMB Capital Management LLC, 650813/2016, New York State Supreme Court, New York County (Manhattan). On February 24, 2016, the Company announced that the European Commission has granted orphan drug designation to RE-024, the Company's novel investigational phosphopantothenate replacement therapy for pantothenate kinase-associated neurodegeneration (PKAN), a rare and life-threatening genetic disorder with no approved treatment option.

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The following table presents selected Consolidated Statements of Operations data for each quarter for the fiscal year ended December 31, 2015 and 2014.



	For the year ended December 31,
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
2015:
Net product sales	$	30,447		$	28,005		$	24,068		$	17,372
Total operating expenses	45,651			48,501			31,012			25,476
Operating loss	(15,204		)	(20,496		)	(6,944		)	(8,104		)
Total other income (expense), net	2,210			164,835			(18,568		)	7,738
Income (loss) before provision for income taxes	(12,994		)	144,339			(25,512		)	(366		)
Income tax benefit(provision)	10,525			(38,761		)	(15		)	40,021
Net income (loss)	$	(2,469	)	$	105,578		$	(25,527	)	$	39,655
Per Share Data:
Net income (loss) per common share, basic	$	(0.07	)	$	2.95		$	(0.73	)	$	1.46
Net income (loss) per common share, diluted	$	(0.14	)	$	1.78		$	(0.73	)	$	1.32

2014:
Net product sales	$	14,085		$	8,348		$	5,742		$	28
Total operating expenses	32,782			30,215			22,924			22,090
Operating loss	(18,697		)	(21,867		)	(17,182		)	(22,062		)
Total other income (expense), net	(10,330		)	3,887			26,462			(53,609		)
Income (loss) before provision for income taxes	(29,027		)	(17,980		)	9,280			(75,671		)
Income tax benefit(provision)	—			—			2,525			(65		)
Net income (loss)	$	(29,027	)	$	(17,980	)	$	11,805		$	(75,736	)
Per Share Data:
Net income (loss) per common share, basic	$	(1.10	)	$	(0.67	)	$	0.46		$	(3.25	)
Net income (loss) per common share, diluted	$	(1.10	)	$	(0.84	)	$	(0.77	)	$	(3.25	)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with accounting principles generally accepted in the United States ("U.S. GAAP"). All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates In preparing financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of expenses during the reporting period. Due to inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in these estimates. On an ongoing basis, the Company evaluates its estimates and assumptions. These estimates and assumptions include revenue recognition, valuing equity securities in share-based payments, estimating fair value of equity instruments recorded as derivative liabilities, estimating the fair value of net assets acquired in business combinations, estimating the useful lives of depreciable and amortizable assets, goodwill impairment, estimating of contingent consideration, estimating of valuation allowances and uncertain tax positions, and estimating the fair value of long-lived assets to assess whether impairment charges may apply.
Revenue Recognition	Revenue Recognition Product sales for the year ended December 31, 2015 consisted of sales of Chenodal, Vecamyl (divested in 2015), Cholbam and Thiola. Product sales for the year ended December 31, 2014 consisted of sales of Chenodal, Vecamyl and Thiola. Revenue from product sales is recognized when persuasive evidence of an arrangement exists, title to product and associated risk of loss have passed to the customer, the price is fixed or determinable, collection from the customer is reasonably assured, the Company has no further performance obligations, and returns can be reasonably estimated. The Company sells in the United States and Canada through a direct-to-patient distributor. Under this distribution model, the Company records revenues when the distributor ships products to customers and such customers take title of the product. The Company sells internationally, but these revenues are immaterial. Revenue from product sales is recorded net of applicable provisions for rebates under government programs (including Medicaid), prompt pay discounts, and other sales-related deductions. We review our estimates of rebates and other applicable provisions each period and record any necessary adjustments in the current period. Deductions from Revenue Government Rebates and Chargebacks: The Company estimates the rebates that we will be obligated to provide to government programs and deducts these estimated amounts from our gross product sales at the time the revenues are recognized. Allowances for government rebates and discounts are established based on actual payer information, which is reasonably estimated at the time of delivery, and the government-mandated discounts applicable to government-funded programs. Prompt Pay Discounts: The Company offers discounts to certain customers for prompt payments. The Company estimates these discounts based on customer terms and historical trends. The Company accrues for the estimated prompt pay discount based on the gross amount of each invoice for those customers at the time of sale. Product Returns: Consistent with industry practice, the Company offers its customers a limited right to return product purchased directly from the Company, which is principally based upon the product’s expiration date. Generally, shipments are only made upon a patient prescription so returns are immaterial.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred and include: salaries, benefits, bonus, stock-based compensation, license fees, milestone payments due under license agreements, costs paid to third-party contractors to perform research, conduct clinical trials, and develop drug materials and delivery devices, and associated overhead and facilities costs. Clinical trial costs are a significant component of research and development expenses and include costs associated with third-party contractors, and clinical research organizations (“CRO’s"). Invoicing from third-party contractors for services performed can lag several months. We accrue the costs of services rendered in connection with third-party contractor activities based on our estimate of management fees, and costs associated with site monitoring and data management.
Employee Stock-Based Compensation	Employee Stock-Based Compensation The Company recognizes all employee share-based compensation as a cost in the financial statements. Equity-classified awards principally related to stock options, restricted stock units (“RSUs”) and performance stock units ("PSUs"), are measured at the grant date fair value of the award. The Company determines grant date fair value of stock option awards using the Black-Scholes option-pricing model. The fair value of RSUs are determined using the closing price of the Company’s common stock on the grant date. For service based vesting grants, expense is recognized over the requisite service period based on the number of options or shares expected to ultimately vest. For PSUs, expense is recognized over the implicit period until the performance obligation is met, assuming that it is probable. No expense is recognized for PSUs until it is probable the vesting criteria will be satisfied. Forfeitures are estimated at the date of grant and revised when actual or expected forfeiture activity differs materially from original estimates.
Earnings (Loss) Per Share	Earnings (Loss) Per Share We calculate our basic earnings per share by dividing net income by the weighted average number of shares outstanding during the period. The diluted earnings per share computation includes the effect, if any, of shares that would be issuable upon the exercise of outstanding stock options, derivative liability, convertable debt and RSUs, reduced by the number of shares which are assumed to be purchased by the Company from the resulting proceeds at the average market price during the year, when such amounts are dilutive to the earnings per share calculation.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents. Due to the short-term maturity of such investments, the carrying amounts are a reasonable estimate of fair value.
Marketable Securities	Marketable Securities The Company accounts for marketable securities held as “available-for-sale” in accordance with ASC 320, “Investments Debt and Equity Securities” (“ASC 320”). The Company classifies these investments as current assets and carries them at fair value. Unrealized gains and losses are recorded as a separate component of stockholders’ equity as accumulated other comprehensive income (loss). Realized gains or losses on marketable security transactions are reported in the Statements of Operations and Comprehensive Income (Loss). Marketable securities are maintained at one financial institution and are governed by the Company’s investment policy as approved by our Board of Directors. Fair values of marketable securities are based on quoted market prices.
Trade and Notes Receivable	Trade and Notes Receivable Trade Receivables, Net Trade accounts receivable are recorded net of allowances for prompt payment and doubtful accounts. Allowances for rebate discounts are included in other current liabilities in the accompanying consolidated balance sheets. Estimates for allowances for doubtful accounts are determined based on existing contractual obligations, historical payment patterns and individual customer circumstances. The allowance for doubtful accounts was $0 and $0.1 million at December 31, 2015 and 2014, respectively. The bad debt expense recorded in the Statement of Operations and Comprehensive Income (Loss) is approximately $0 million and $0.1 million for 2015 and 2014, respectively. Notes Receivable Notes receivable arose from the sale of the pediatric priority review voucher (the "PRV"). On July 2, 2015, the Company sold and transferred the PRV to Sanofi for $245.0 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. In accordance with U.S. GAAP, the Company recorded the future short term and long term notes receivable at their present value of $46.2 million and $44.9 million, respectively, at the date of the sale using a discount rate of 2.8%. The accretion on the notes receivables totaled $1.3 million and is recorded in interest expense, net, in the Consolidated Statements of Operations and Comprehensive Income (Loss) for 2015. As of December 31, 2015, the present value of the current and long-term notes receivable was $46.8 million and $45.6 million, respectively. The Company noted no indications for impairment as of December 31, 2015.
Inventories and Related Reserves	Inventories and Related Reserves Inventory is stated at the lower of cost or market. The Company determines the cost of inventory using the first-in, first-out, or FIFO, method. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated realizable value, and writes down such inventory as appropriate. In addition, the Company's products are subject to strict quality control and monitoring which the Company’s manufacturers perform throughout their manufacturing process. The Company does not directly manufacture any product. The Company has single suppliers for products Chenodal and Thiola, and prospectively arranges for manufacture from contract service providers for its product Cholbam. The value of inventory acquired in 2015 related to single supplier purchases was 63% for Thiola and 4% for Chenodal. The remaining 33% of inventory was related to the Cholbam product and was either related to materials acquired or subsequent third party manufacturing. The inventory reserve was $0.3 million and $0.1 at December 31, 2015 and 2014, respectively.
Property and Equipment, net	Property and Equipment, net Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the related estimated useful lives as presented in the table below. Significant additions and improvements are capitalized, while repairs and maintenance are charged to expense as incurred. Property and equipment purchased for specific research and development projects with no alternative uses is expensed as incurred.
Intangible Assets, Net	Intangible Assets, Net Intangible assets with finite useful lives consist primarily of product rights, licenses and customer relationships which are amortized on a straight line basis over 1 to 16 years. Intangible assets with finite useful lives are reviewed for impairment in accordance with ASC 360 and the useful lives are reassessed whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. The Company reviews for indications of impairment of intangibles on a quarterly basis. For the year ended December 31, 2015 the company wrote off the intangible asset related to Carbetocin and recorded a loss of $4.7 million. There were no impairments related to intangible assets for 2014 or 2013.
Goodwill	Goodwill Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. The Company first assesses the qualitative factors for reporting units that carry goodwill. If the qualitative assessment results in a conclusion that it is more likely than not that the fair value of a reporting unit exceeds the carrying value, then no further testing is performed for that reporting unit. When a qualitative assessment is not used, or if the qualitative assessment is not conclusive and it is necessary to calculate fair value of a reporting unit, then the impairment analysis for goodwill is performed at the reporting unit level using a two-step approach. The first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill utilizing an enterprise-value based premise approach. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined by using various valuation techniques including income (discounted cash flow), market and/or consideration of recent and similar purchase acquisition transactions. The Company performs its annual impairment review of goodwill in the fourth quarter and when a triggering event occurs between annual impairment tests. The Company has one segment and one reporting unit and as such reviews goodwill as one unit. For the years ended December 31, 2015 and 2014 there were no impairments to goodwill.
Income Taxes	Income Taxes The Company follows ASC 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the asset will not be realized. The standard addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company’s policy is to record estimated interest and penalty related to the underpayment of income taxes or unrecognized tax benefits as a component of its income tax provision.
Reclassifications	Reclassifications Certain reclassifications have been made to the prior year financial statements in order to conform to the current year’s presentation.
Patents	Patents The Company expenses external costs, such as filing fees and associated attorney fees, incurred to obtain issued patents and patent applications pending. The Company also expenses costs associated with maintaining and defending patents subsequent to their issuance in the period incurred.
Derivative Instruments	Derivative Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then revalued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company calculates the fair value of the financial instruments using the Monte Carlo simulation pricing model, however, prior to January 1, 2015, the Company used the Binomial Lattice option pricing model. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity is assessed at inception, the fair value of the warrants is evaluated at the end of each reporting period (see Note 5 and Note 6).
Treasury Stock	Treasury Stock The Company records treasury stock at the cost to acquire it and includes treasury stock as a component of stockholders’ equity until it is retired.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption. In May 2014, the 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 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 November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred taxes. This amendment requires that all deferred tax assets and liabilities, along with any related valuation allowances, be classified as noncurrent on the balance sheet. However, an entity shall not offset deferred tax liabilities and assets attributable to different tax jurisdictions. ASU 2015-17 is effective for annual and interim reporting periods ending after December 15, 2016. Early adoption is permitted, and the new guidance may be applied either prospectively or retrospectively. We have adopted this guidance prospectively as of December 31, 2015. Therefore, prior periods have not been adjusted to reflect this adoption. This change in accounting principle does not change our results of operations, cash flows or stockholders’ equity. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Schedule of Vesting Award Terms



	Vesting Term
Stock Options	1 to 3 years
Restricted Stock Units	1 to 3 years

Schedule of inventory, net of reserve

Inventory, net of reserve, consists of the following at December 31, 2015 and 2014 (in thousands):



	December 31, 2015		December 31, 2014
Raw material	$	289	$	315
Finished goods	2,247		486
Total inventory	$	2,536	$	801

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

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



Computer equipment	3 years
Furniture and fixtures	7 years
Leasehold improvements	Shorter of length of lease or life of the asset

BUSINESS COMBINATION AND DIVESTITURE OF ASSETS (Tables)

12 Months Ended

Dec. 31, 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 is 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

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



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

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

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



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

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

MARKETABLE SECURITIES (Tables)

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule of marketable securities

Marketable securities consist of the following (in thousands):



	December 31,
	2015		2014
Marketable Equity Securities:
Common Stock	$	—	$	9,556
Marketable Other than Equity Securities:
Commercial paper	31,864		—
Corporate debt securities	125,547		—
Securities of government sponsored entities	34,388		—
Total Marketable Securities:	$	191,799	$	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 December 31, 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	$	31,899	$	6	$	(41	)	$	31,864
Corporate debt securities	Less than 1	43,464		—		(78		)	43,386
Total maturity less than 1 year		75,363		6		(119		)	75,250
Corporate debt securities	1 to 2	82,557		—		(396		)	82,161
Securities of government-sponsored entities	1 to 2	34,522		2		(136		)	34,388
Total maturity 1 to 2 years		117,079		2		(532		)	116,549
Total available-for-sale securities		$	192,442	$	8	$	(651	)	$	191,799

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

- 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)

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of assumptions for valuation of warrants

The Company calculated the fair value of the warrants using the Monte Carlo Simulation utilizing the following assumptions as of the grant date of the warrants:



Risk free rate	1.39		%
Expected volatility	85		%
Expected life (in years), represents the weighted average period until next liquidity event	0.3
Expected dividend yield	—
Exercise Price	$	13.25

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



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



	As of
	December 31, 2015			December 31, 2014
Fair value of common stock	$	19.29		$	12.24
Expected life (in years), represents the weighted average period until next liquidity event	n/a**			0.33 years
Remaining Life (in years) of the Warrants	2.1 – 4.0 years			3.1 – 4.9 years
Risk-free interest rate	1.11 – 1.59%			1.13 – 1.69%
Expected volatility	75 – 85%			85		%
Dividend yield	—		%	—		%

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

Schedule of derivative warrant issuances and balances outstanding

The following tables presents the Company’s derivative warrant issuances and balances outstanding during the years ended December 31, 2015 and 2014:



		Weighted Average
	Warrants	Exercise Price		Grant Date Fair Value
Outstanding at December 31, 2013	4,782,249	$	5.04	$	3.13
Issued	637,500	11.44		6.49
Canceled	—	—		—
Exercised	1,998,394	4.70		3.05
Outstanding at December 31, 2014	3,421,355	$	6.43	$	3.79
Issued	125,000	13.25		8.40
Canceled	—	—		—
Exercised	880,807	5.35		3.23
Outstanding at December 31, 2015	2,665,548	$	7.05	$	4.20

Schedule of derivative warrants outstanding

The following information applies to derivative warrants outstanding at December 31, 2015:



Exercise Price		Number of Warrants	Weighted Average Remaining Contractual Life (years)	Number Exercisable
$	3.60	660,036	2.12	660,036
$	6.00	1,243,012	2.62	1,243,012
$	12.76	337,500	3.5	337,500
$	9.96	300,000	3.87	300,000
$	13.25	125,000	4.03	125,000

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Schedule of fair value on a recurring basis



	As of December, 2015		Fair Value Hierarchy at December 31, 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	$	191,799	$	—	$	191,799	$	—
Liabilities:
Derivative liability related to warrants	$	38,810	$	—	$	—	$	38,810
Business combination-related contingent consideration	$	59,021	$	—	$	—	$	59,021



	As of December, 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
Business combination-related contingent consideration	$	11,637	$	—	$	—	$	11,637

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

The following table sets forth a summary of changes in the estimated fair value of the Company’s Level 3 derivative liability for the period from January 1, 2015 through December 31, 2015:



	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2015	$	27,990
Issuance of common stock warrants	1,050
Reclassification of derivative liability to equity upon exercise of warrants	(23,537		)
Change in estimated fair value of liability classified warrants	33,307
Balance at December 31, 2015	$	38,810

The following table sets forth a summary of changes in the estimated fair value of the Company’s Level 3 derivative liability for the period from January 1, 2014 through December 31, 2014:



	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2014	$	25,037
Issuance of common stock warrants	2,531
Reclassification of derivative liability to equity upon exercise of warrants	(23,364		)
Change in estimated fair value of liability classified warrants	23,786
Balance at December 31, 2014	$	27,990

Schedule of fair value measurements of acquisition-related contingent consideration

The following table sets forth a summary of changes in the estimated business combination-related contingent consideration for the period from January 1, 2015 through December 31, 2015:



	Fair Value Measurements of Acquisition-Related Contingent Consideration (Level 3)
Balance at January 1, 2015	$	11,637
Present value of contingent consideration related to Cholbam acquisition, upon acquisition	39,107
Increase from revaluation of contingent consideration	13,778
Decrease of contingent consideration, asset divestiture	(604		)
Contractual Payments	(3,938		)
Contractual Payments accrued at December 31, 2015	(959		)
Balance at December 31, 2015	$	59,021

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



	Fair Value Measurements of Acquisition-Related Contingent Consideration
Balance at January 1, 2014	$	—
Present value of contingent consideration related to Manchester acquisition, upon acquisition	12,800
Contractual Payments	(1,163		)
Balance at December 31, 2014	$	11,637

INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of amortizable intangible assets

Amortizable intangible assets as of December 31, 2015 (in thousands):



		As of December 31, 2015
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Chenodal Product Rights	16	$	67,849	$	(7,489	)	$	60,360
Thiola License	10	24,133		(2,793		)	21,340
Economic Interest - U.S. revenue Cholbam	10	75,900		(5,715		)	70,185
Economic Interest - Int'l revenue Cholbam	10	7,336		(552		)	6,784
Ligand License	11	3,300		(765		)	2,535
Manchester Customer Relationships	10	403		(71		)	332
Manchester Trade Name	1	175		(175		)	—
Total		$	179,096	$	(17,560	)	$	161,536

Amortizable intangible assets as of December 31, 2014 (in thousands):



		As of December 31, 2014
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Chenodal and Vecamyl Product Rights	16	$	71,372	$	(3,420	)	$	67,952
Thiola License	10	15,049		(870		)	14,179
Syntocinon License	20	5,000		(190		)	4,810
Carbetocin Assets	10	5,568		(430		)	5,138
Ligand License	11	2,300		(527		)	1,773
Manchester Customer Relationships	10	403		(31		)	372
Manchester Trade Name	1	175		(134		)	41
Total		$	99,867	$	(5,602	)	$	94,265

Schedule of amortization expense for the next 5 years

The following table summarizes amortization expense for the twelve months ended December 31, 2015, 2014 and 2013 (in thousands):



	Twelve months ended December 31,
	2015		2014		2013
Research and development	$	697	$	823	$	324
Selling, general and administrative	12,534		4,455		—
Total amortization expense	$	13,231	$	5,278	$	324

As of December 31, 2015, amortization expense for the next five years is expected to be as follows (in thousands):



2016	$	15,517
2017	15,474
2018	15,474
2019	15,474
2020	15,476
Thereafter	84,121
Total	$	161,536

ACCRUED EXPENSES (Tables)

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

Schedule of accrued expenses

Accrued expenses consist of the following at December 31, 2015 and 2014:



	December 31, 2015		December 31, 2014
Compensation related costs	$	7,143	$	8,163
Severance related costs	315		5,710
Research and development	4,281		3,720
License fee	—		3,000
Legal fees	882		1,208
Interest	259		2,318
Government rebate reserves	3,158		1,353
Selling, general and administrative	2,703		2,411
Royalty/contingent consideration	4,688		—
Miscellaneous	391		—
	$	23,820	$	27,883

NOTES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of net carrying amount of debt

The net carrying amount of the Notes consists of the following (in thousands):



	As of December 31,
	2015			2014
Aggregate principle amount of Notes	$	46,000		$	46,000
Unamortized debt discount	(2,098		)	(2,712		)
	$	43,902		$	43,288

Schedule of fair value of warrants

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



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

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: 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.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

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 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of principal contractual commitments, excluding open orders

The following table summarizes our principal contractual commitments, excluding open orders that support normal operations, as of December 31, 2015 (in thousands):



	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating leases	$	2,671	$	1,026	$	1,645	$	—	$	—
Note payable	53,073		2,070		4,140		46,863		—
Sales support services	3,470		312		937		833		1,388
Product supply contracts	5,221		3,923		1,298		—		—
Purchase order commitments	596		258		338		—		—
	$	65,031	$	7,589	$	8,358	$	47,696	$	1,388

STOCKHOLDERS’ EQUITY / DEFICIT (Tables)

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Assumptions used in Black-Scholes options pricing model

The following weighted average assumptions were used in the Black-Scholes options pricing model to estimate the fair value of stock options for the specified reporting periods:



	Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013
Risk free rate	1.53	%	1.55	%	1.51	%
Expected volatility	83	%	85	%	102	%
Expected life (in years)	5.8		5.8		5.8
Expected dividend yield	—		—		—

Schedule of stock option activity

The following table summarizes our stock option activity and related information for the year ended December 31, 2015:



			Weighted Average
	Shares Underlying Options		Exercise Price		Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Exercisable at December 31, 2014	1,225,833		$	9.73	7.96	$	3,395

Outstanding at December 31, 2014	4,892,208		$	10.93	8.57	$	8,353
Granted	2,285,000		$	27.15	—	—
Forfeited and expired	(970,170	)	14.91		—	—
Exercised	(541,454	)	13.10		—	—
Outstanding at December 31, 2015	5,665,584		$	17.05	8.75	$	31,542
Exercisable at December 31, 2015	2,036,906		$	12.55	8.34	$	15,582

Schedule of share based compensation expenses

Total non-cash stock-based compensation expense consisted of the following for the years ended December 31, 2015 and 2014 (in thousands):



	Year Ended December 31,
	2015		2014		2013
Selling, general and administrative expenses	$	16,483	$	10,940	$	2,651
Research and development expenses	9,417		4,960		259
Total	$	25,900	$	15,900	$	2,910

Schedule of unvested restricted shares

Unvested restricted shares consist of the following as of December 31, 2015:



	Number of shares		Weighted Average Grant Date Fair Value
Unvested December 31, 2014	691,668		$	10.83
Granted	273,000		26.97
Vested	(478,334	)	11.56
Forfeited/cancelled	(56,668	)	13.97
Unvested December 31, 2015	429,666		$	20.38

EARNINGS (LOSS) PER SHARE (Tables)

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Schedule of basic and diluted net loss per share

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



	For the year ended December 31,
	2015					2014							2013
	Shares	Net Income		EPS		Shares	Net Income			EPS			Shares	Net Income			EPS
Basic Earnings per Share	33,560,249	$	117,237	$	3.49	25,057,509	$	(110,938	)	$	(4.43	)	14,205,264	$	(34,625	)	$	(2.44	)
Convertible Debt	2,642,160	1,881				—	—						—	—
Restricted Stock	290,966	—				—	—						—	—
Stock Options	1,088,064	—				—	—						—	—
Dilutive Earnings per Share	37,581,439	$	119,118	$	3.17	25,057,509	$	(110,938	)	$	(4.43	)	14,205,264	$	(34,625	)	$	(2.44	)

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

For the years ended December 31, 2015, 2014 and 2013, the following shares were excluded because they were anti-dilutive:



	For the year ended December 31,
	2015	2014	2013
Restricted Stock	22,069	—	—
Options	1,049,375	1,132,500	172,667
Warrants	2,665,548	3,083,855	4,462,426
Total Anti-Dilutive Shares	3,736,992	4,216,355	4,635,093

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of components of net income before incomes taxes

For financial reporting purposes, net income before income taxes includes the following components (in thousands):



	Year Ended December 31,
	2015			2014			2013
United States	$	107,038		$	(112,558	)	$	(34,549	)
Foreign	(1,571		)	(840		)	—
Total	$	105,467		$	(113,398	)	$	(34,549	)

Schedule of income tax provision

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



	2015			2014			2013
Current
Federal	$	2,094		$	—		$	—
State	1,709			—			—
	3,803			—			—
Deferred
Federal	(8,296		)	(1,886		)	(6,293		)
State	(7,277		)	(574		)	(3,435		)
	(15,573		)	(2,460		)	(9,728		)
Change in valuation allowance	—			—			9,804
Total tax provision (benefit)	$	(11,770	)	$	(2,460	)	$	76

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

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



	2015		2014		2013
Statutory rate - federal	35.00	%	(35.00	)%	(35.00	)%
State taxes, net of federal benefit	1.53	%	(6.77	)%	(6.70	)%
Change in FV of derivative liability (warrants)	10.89	%	7.40	%	10.46	%
Stock Based Compensation	—	%	5.51	%	2.30	%
Bargain purchase gain	(16.04	)%
Other permanent differences	3.68	%
Tax credits	(7.85	)%
Return to provision adjustments and other true-ups	(10.40	)%
Other	(0.79	)%	—	%	0.17	%
Change in valuation allowance	(27.02	)%	26.63	%	29.00	%
Income tax provision (benefit)	(11.00	)%	(2.23	)%	0.23	%

Schedule of deferred tax assets and liabilities

The significant components of the Company’s deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands):



	2015			2014
Deferred Tax Assets:
Net operating loss	$	2,870		$	42,280
Contingent consideration	21,575
Other accrued expenses	3,160
Stock based compensation	9,484
Other	—			1,427
	37,089			43,707
Deferred Tax Liabilities:
Intangible assets	(25,124		)	(7,830		)
Deferred gain on installment sale	(29,095		)
Tax basis depreciation less than book depreciation	(218		)
	(54,437		)	(7,830		)

Net deferred tax assets before valuation allowance	(17,348		)	35,877
Valuation allowance	(6,980		)	(36,018		)
Total deferred tax liability	$	(24,328	)	$	(141	)

Schedule of unrecognized tax benefits

A reconciliation of the Company's unrecognized tax benefits for the years 2015 and 2014 is provided in the following table (in thousands):



	2015		2014
Balance as of January 1:	$	1,500	$	—
Increase in current period positions	1,424		1,500
Increase in prior period positions	400		—
Balance as of December 31:	$	3,324	$	1,500

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Schedule of Consolidated Statements of Operations data for each quarter

The following table presents selected Consolidated Statements of Operations data for each quarter for the fiscal year ended December 31, 2015 and 2014.



	For the year ended December 31,
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
2015:
Net product sales	$	30,447		$	28,005		$	24,068		$	17,372
Total operating expenses	45,651			48,501			31,012			25,476
Operating loss	(15,204		)	(20,496		)	(6,944		)	(8,104		)
Total other income (expense), net	2,210			164,835			(18,568		)	7,738
Income (loss) before provision for income taxes	(12,994		)	144,339			(25,512		)	(366		)
Income tax benefit(provision)	10,525			(38,761		)	(15		)	40,021
Net income (loss)	$	(2,469	)	$	105,578		$	(25,527	)	$	39,655
Per Share Data:
Net income (loss) per common share, basic	$	(0.07	)	$	2.95		$	(0.73	)	$	1.46
Net income (loss) per common share, diluted	$	(0.14	)	$	1.78		$	(0.73	)	$	1.32

2014:
Net product sales	$	14,085		$	8,348		$	5,742		$	28
Total operating expenses	32,782			30,215			22,924			22,090
Operating loss	(18,697		)	(21,867		)	(17,182		)	(22,062		)
Total other income (expense), net	(10,330		)	3,887			26,462			(53,609		)
Income (loss) before provision for income taxes	(29,027		)	(17,980		)	9,280			(75,671		)
Income tax benefit(provision)	—			—			2,525			(65		)
Net income (loss)	$	(29,027	)	$	(17,980	)	$	11,805		$	(75,736	)
Per Share Data:
Net income (loss) per common share, basic	$	(1.10	)	$	(0.67	)	$	0.46		$	(3.25	)
Net income (loss) per common share, diluted	$	(1.10	)	$	(0.84	)	$	(0.77	)	$	(3.25	)

DESCRIPTION OF BUSINESS (Details) - USD ($)		1 Months Ended					12 Months Ended
DESCRIPTION OF BUSINESS (Details) - USD ($)	Mar. 24, 2015	Mar. 31, 2015	Jan. 31, 2014	Aug. 31, 2013	Feb. 28, 2013	Jan. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Subsidiary, Sale of Stock [Line Items]
Price per common share (in dollars per share)		$ 19.00	$ 8.50	$ 4.50	$ 3.00	$ 3.00
Net proceeds from the offering							$ 149,487,000	$ 40,000,000	$ 30,937,000
Underwriting fees and other offering costs		$ 9,000,000	$ 3,200,000	$ 2,800,000	$ 900,000	$ 0
Common Stock \| Public Offering
Subsidiary, Sale of Stock [Line Items]
Number of common stock issued	7,866,000
Price per common share (in dollars per share)	$ 19.00
Net proceeds from the offering	$ 140,000,000
Underwriting fees and other offering costs	$ 9,500,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)		12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Jul. 02, 2015 USD ($)	Dec. 31, 2015 USD ($) segment reporting_unit	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Allowance for doubtful accounts		$ 0	$ 100,000
Bed debt expense		0	100,000
PV of short term receivable		46,849,000	0
PV of long term receivable		45,573,000	0
Inventory reserve		300,000	100,000
Impairments related to intangible assets		$ 4,700,000	$ 0	$ 0
Number of segments \| segment		1
Number of reporting units \| reporting_unit		1
Number of reporting units reviewed as goodwill \| reporting_unit		1
Minimum
Summary Of Significant Accounting Policies [Line Items]
Assets useful life (in years)		1 year
Maximum
Summary Of Significant Accounting Policies [Line Items]
Assets useful life (in years)		16 years
Suppliers
Summary Of Significant Accounting Policies [Line Items]
Concentration percentage		33.00%
Chenodal \| Suppliers
Summary Of Significant Accounting Policies [Line Items]
Concentration percentage		4.00%
Thiola \| Suppliers
Summary Of Significant Accounting Policies [Line Items]
Concentration percentage		63.00%
Asset Purchase Agreement \| Asklepion Pharmaceuticals LLC
Summary Of Significant Accounting Policies [Line Items]
Proceeds from sale of assets	$ 245,000,000
Discount rate of receivables	2.80%
At Time Of Closing \| Asset Purchase Agreement
Summary Of Significant Accounting Policies [Line Items]
PV of short term and long term receivables	$ 46,200,000
At Time Of Closing \| Asset Purchase Agreement \| Asklepion Pharmaceuticals LLC
Summary Of Significant Accounting Policies [Line Items]
Proceeds from sale of assets	150,000,000
Due On First And Second Anniversaries Of Closing \| Asset Purchase Agreement
Summary Of Significant Accounting Policies [Line Items]
PV of short term and long term receivables	44,900,000
Due On First And Second Anniversaries Of Closing \| Asset Purchase Agreement \| Asklepion Pharmaceuticals LLC
Summary Of Significant Accounting Policies [Line Items]
Proceeds from sale of assets	$ 47,500,000
Interest expense, net \| Asset Purchase Agreement \| Asklepion Pharmaceuticals LLC
Summary Of Significant Accounting Policies [Line Items]
Accretion on the notes receivable		$ 1,300,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Vesting Awards (Details)	12 Months Ended
	Dec. 31, 2015
Stock Options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	1 year
Stock Options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years
Restricted Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	1 year
Restricted Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory, Net of Reserve (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Raw material	$ 289	$ 315
Finished goods	2,247	486
Total inventory	$ 2,536	$ 801

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2015
Computer equipment
Property, Plant and Equipment [Line Items]
Use life (in years)	3 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Use life (in years)	7 years

BUSINESS COMBINATION AND DIVESTITURE OF ASSETS (Details) - USD ($) $ in Thousands			12 Months Ended
	Mar. 31, 2015	Feb. 12, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Cash payment			$ 3,938	$ 1,163	$ 0
Acquisition-related contingent consideration			45,267	$ 9,520
Product rights
Business Acquisition [Line Items]
Assets useful life (in years)				16 years
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
Discount rate percentage			19.00%
Fair value of Pediatric Priority Review Voucher	96,250
Intangible assets acquired	83,200
Contingent consideration agreement, high amount			$ 16,300
Net present value of service fees			2,900
Total payments of service fees			$ 4,000
Payment period (in years)			4 years
Deferred tax liability	(39,880)
Assets acquired in business combination	$ 88,500
Utilized tax rate percentage	45.40%
Purchase price allocation	$ 91,284
Asklepion Pharmaceuticals LLC \| Product rights
Business Acquisition [Line Items]
Assets useful life (in years)	10 years
Asklepion Pharmaceuticals LLC \| United States \| Product rights
Business Acquisition [Line Items]
Intangible assets acquired	$ 75,900
Asklepion Pharmaceuticals LLC \| International \| Product rights
Business Acquisition [Line Items]
Intangible assets acquired	7,300
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 COMBINATION AND DIVESTITURE OF ASSETS - Purchase Price Allocation (Details) - USD ($) $ in Thousands			12 Months Ended
	Mar. 31, 2015	Mar. 26, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Cash paid upon consummation			$ 33,430	$ 29,150	$ 0
Fair Value of Assets Acquired and Liabilities Assumed
Goodwill			936	$ 936
Manchester Pharmaceuticals LLC
Business Acquisition [Line Items]
Cash paid upon consummation		$ 29,150
Secured promissory note		31,283
Fair value of business combination-related contingent consideration		12,800
Total Purchase Price		73,233
Fair Value of Assets Acquired and Liabilities Assumed
Acquired product rights-Cholbam (Intangible Asset)		72,000
Inventory		517
Prepaid expenses		116
Goodwill		936
Other asset		1,522
Accounts payable and accrued expenses		(286)
Other liability		(1,522)
Total allocation of purchase price consideration		73,233
Manchester Pharmaceuticals LLC \| Product rights
Fair Value of Assets Acquired and Liabilities Assumed
Intangible assets		71,372
Manchester Pharmaceuticals LLC \| Trade names
Fair Value of Assets Acquired and Liabilities Assumed
Intangible assets		175	200
Manchester Pharmaceuticals LLC \| Customer relationships
Fair Value of Assets Acquired and Liabilities Assumed
Intangible assets		$ 403	$ 400
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	88,500
Bargain Purchase Gain	(49,063)
Total Purchase Price	91,284
Total allocation of purchase price consideration	$ 140,347

BUSINESS COMBINATION AND DIVESTITURE OF ASSETS - Acquisition of Manchester Pharmaceuticals (Details) - USD ($) $ in Thousands		12 Months Ended
	Mar. 26, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Cash paid upon consummation		$ 33,430	$ 29,150	$ 0
Goodwill		$ 936	936
Manchester Pharmaceuticals LLC
Business Acquisition [Line Items]
Voting interests acquired, percentage	100.00%
Cash paid upon consummation	$ 29,150
Contractual payments based on net sales	10.00%
Additional contingent payments	5.00%
Estimated contingent consideration	$ 12,800
Total allocation of purchase price consideration	73,233
Goodwill	936
Intangible assets acquired	72,000
Liability arising from contingency			$ 1,500
Purchase price allocation	73,233
Manchester Pharmaceuticals LLC \| Selling, general and administrative expenses
Business Acquisition [Line Items]
Acquisition costs	300
Retrophin Therapeutics International, LLC \| Manchester Pharmaceuticals LLC
Business Acquisition [Line Items]
Cash paid upon consummation	3,200
Promissory Notes Payable \| Manchester Pharmaceuticals LLC
Business Acquisition [Line Items]
Credit agreement amount	33,000
Discounted principal amount	31,300
Consecutive payment of notes payable	11,000
Product rights
Business Acquisition [Line Items]
Assets useful life (in years)			16 years
Product rights \| Manchester Pharmaceuticals LLC
Business Acquisition [Line Items]
Intangible assets	$ 71,372
Assets useful life (in years)	16 years	16 years
Trade names
Business Acquisition [Line Items]
Assets useful life (in years)		1 year	1 year
Trade names \| Manchester Pharmaceuticals LLC
Business Acquisition [Line Items]
Intangible assets	$ 175	$ 200
Assets useful life (in years)	1 year	1 year
Customer relationships
Business Acquisition [Line Items]
Assets useful life (in years)		10 years	10 years
Customer relationships \| Manchester Pharmaceuticals LLC
Business Acquisition [Line Items]
Intangible assets	$ 403	$ 400
Assets useful life (in years)	10 years	10 years

BUSINESS COMBINATION AND DIVESTITURE OF ASSETS - Divestiture of Assets (Details) - USD ($) $ in Millions				12 Months Ended
	Jul. 02, 2015	Feb. 13, 2015	Jan. 09, 2015	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impact related to divestitures				$ 0.9
Asset Purchase Agreement \| Asklepion Pharmaceuticals LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of assets	$ 245.0
Discount rate of receivables	2.80%
Gain from the sale of the asset	$ 140.0
Disposal fees	4.9
Asset Purchase Agreement \| Turing Pharmaceuticals
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales value of product rights		$ 1.1	$ 1.0
At Time Of Closing \| Asset Purchase Agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
PV of short term and long term receivables	46.2
At Time Of Closing \| Asset Purchase Agreement \| Asklepion Pharmaceuticals LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of assets	150.0
Due On First And Second Anniversaries Of Closing \| Asset Purchase Agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
PV of short term and long term receivables	44.9
Due On First And Second Anniversaries Of Closing \| Asset Purchase Agreement \| Asklepion Pharmaceuticals LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of assets	$ 47.5
Manchester Pharmaceuticals LLC \| Asset Purchase Agreement \| Turing Pharmaceuticals
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales value of product rights		0.3
Manchester Pharmaceuticals LLC \| Asset Purchase Agreement \| Waldun Pharmaceuticals, LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales value of product rights		$ 0.7

MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands	12 Months Ended
MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	$ 191,799	$ 9,556
Realized gain (loss) on marketable securities	(293)	2,349	$ 374
Proceeds from the sale/maturity of marketable securities	9,977	6,493	$ 4,385
Reclassification out of OCI	300
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	31,864	0
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	125,547	0
Securities of government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	$ 34,388	$ 0

MARKETABLE SECURITIES - Available for Sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 192,442	$ 5,160
Unrealized Gains	8	4,499
Unrealized Losses	(651)	(103)
Aggregate Estimated Fair Value	191,799	9,556
Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	75,363
Unrealized Gains	6
Unrealized Losses	(119)
Aggregate Estimated Fair Value	75,250
1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	117,079
Unrealized Gains	2
Unrealized Losses	(532)
Aggregate Estimated Fair Value	116,549
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
Commercial paper \| Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	31,899
Unrealized Gains	6
Unrealized Losses	(41)
Aggregate Estimated Fair Value	31,864
Corporate debt securities \| Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	43,464
Unrealized Gains	0
Unrealized Losses	(78)
Aggregate Estimated Fair Value	43,386
Corporate debt securities \| 1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	82,557
Unrealized Gains	0
Unrealized Losses	(396)
Aggregate Estimated Fair Value	82,161
Securities of government sponsored entities \| 1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	34,522
Unrealized Gains	2
Unrealized Losses	(136)
Aggregate Estimated Fair Value	$ 34,388

DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended			13 Months Ended
	Jan. 12, 2015	Nov. 13, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Nov. 30, 2014
Derivative [Line Items]
Interest expense, net			$ (7,748)	$ (7,435)	$ (46)
Grant date fair value of the Warrants recorded as a derivative liability (in dollars per share)			$ 2,500	$ 2,500
Fair value of common stock (in dollars per share)			$ 19.29	$ 12.24
Warrants
Derivative [Line Items]
Recorded loss on change in estimated fair value of warrants			$ 33,300	$ 23,800	$ 10,100
Warrants \| Derivative
Derivative [Line Items]
Total intrinsic value of derivative warrants outstanding and exercisable			$ 32,600
Credit Agreement
Derivative [Line Items]
Number of common stock called by warrants (in shares)				337,500
Exercise price (in dollars per share)				$ 12.76
Amendment No. 3 \| Definitive Agreement \| Athyrium Capital Management, LLC and Perceptive Credit Opportunities Fund, LP
Derivative [Line Items]
Credit agreement amount	$ 30,000
Number of common stock called by warrants (in shares)	125,000
Interest expense, net	$ 1,050
Note Payable With Detachable Warrants \| Clinuvel Pharmaceuticals Limited \| Amendment No. 2 \| Credit Agreement
Derivative [Line Items]
Number of common stock called by warrants (in shares)		300,000				300,000
Exercise price (in dollars per share)		$ 9.96
Value of common stock exercisable by warrants		$ 2,200				$ 2,200

DERIVATIVE FINANCIAL INSTRUMENTS - Valuation Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value of common stock (in dollars per share)	$ 19.29	$ 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
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected life (in years), represents the weighted average period until next liquidity event	2 years 1 month 6 days	3 years 1 month 6 days
Risk-free interest rate	1.11%	1.13%
Expected volatility	75.00%
Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected life (in years), represents the weighted average period until next liquidity event	4 years	4 years 10 months 24 days
Risk-free interest rate	1.59%	1.69%
Expected volatility	85.00%
Warrants \| Derivative
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected life (in years), represents the weighted average period until next liquidity event	3 months 18 days	4 months 10 days
Risk-free interest rate	1.39%	1.62%
Expected volatility	85.00%	85.00%
Dividend yield	0.00%	0.00%
Exercise Price (in dollars per share)	$ 13.25	$ 12.76

DERIVATIVE FINANCIAL INSTRUMENTS - Derivative Warrant Issuances (Details) - Warrants - Derivative - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Shares
Outstanding, Beginning Balance (in shares)	3,421,355	4,782,249
Issuance of common shares under the equity incentive plan	125,000	637,500
Canceled (in shares)	0	0
Exercised (in shares)	880,807	1,998,394
Outstanding, Ending Balance (in shares)	2,665,548	3,421,355
Weighted Average Exercise Price
Outstanding, Beginning Balance (in dollars per share)	$ 6.43	$ 5.04
Issued (in dollars per share)	13.25	11.44
Cancelled (in dollars per share)	0.00	0.00
Exercised (in dollars per share)	5.35	4.70
Outstanding, Ending Balance (in dollars per share)	7.05	6.43
Weighted Average Grant Date Fair Value
Outstanding, Beginning Balance (in dollars per share)	3.79	3.13
Issued (in dollars per share)	8.40	6.49
Cancelled (in dollars per share)	0.00	0.00
Exercised (in dollars per share)	3.23	3.05
Outstanding, Ending Balance (in dollars per share)	$ 4.20	$ 3.79

DERIVATIVE FINANCIAL INSTRUMENTS - Derivative Warrants Outstanding (Details) - Warrants - Derivative - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants (in shares)	2,665,548	3,421,355	4,782,249
$3.60
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 3.60
Number of Warrants (in shares)	660,036
Weighted Average Remaining Contractual Life (years)	2 years 1 month 13 days
Number Exercisable (in shares)	660,036
$6.00
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 6.00
Number of Warrants (in shares)	1,243,012
Weighted Average Remaining Contractual Life (years)	2 years 7 months 13 days
Number Exercisable (in shares)	1,243,012
$12.76
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 12.76
Number of Warrants (in shares)	337,500
Weighted Average Remaining Contractual Life (years)	3 years 6 months
Number Exercisable (in shares)	337,500
$9.96
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 9.96
Number of Warrants (in shares)	300,000
Weighted Average Remaining Contractual Life (years)	3 years 10 months 13 days
Number Exercisable (in shares)	300,000
$13.25
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price (in dollars per share)	$ 13.25
Number of Warrants (in shares)	125,000
Weighted Average Remaining Contractual Life (years)	4 years 11 days
Number Exercisable (in shares)	125,000

FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Asset:
Marketable securities, available-for-sale	$ 191,799	$ 9,556
Liabilities:
Derivative liability related to warrants	38,810	27,990
Recurring basis
Asset:
Marketable securities, available-for-sale	191,799	9,556
Liabilities:
Derivative liability related to warrants	38,810	27,990	$ 25,037
Business combination-related contingent consideration	59,021	11,637
Recurring basis \| Quoted prices in active markets (Level 1)
Asset:
Marketable securities, available-for-sale	0	9,556
Liabilities:
Derivative liability related to warrants	0	0
Business combination-related contingent consideration	0	0
Recurring basis \| Significant other observable inputs (Level 2)
Asset:
Marketable securities, available-for-sale	191,799	0
Liabilities:
Derivative liability related to warrants	0	0
Business combination-related contingent consideration	0	0
Recurring basis \| Significant unobservable inputs (Level 3)
Asset:
Marketable securities, available-for-sale	0	0
Liabilities:
Derivative liability related to warrants	38,810	27,990
Business combination-related contingent consideration	$ 59,021	$ 11,637	$ 0

- Definition

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

+ References + Details

FAIR VALUE MEASUREMENTS - Changes in Level 3 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	$ 27,990
Issuance of common stock warrants	(4,475)	$ (8,398)	$ 0
Reclassification of derivative liability to equity upon exercise of warrants	(23,537)	(23,365)	0
Change in estimated fair value of liability classified warrants	33,307	23,786	10,100
Balance, ending	38,810	27,990
Recurring basis
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	27,990	25,037
Balance, ending	38,810	27,990	$ 25,037
Recurring basis \| Significant unobservable inputs (Level 3)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	27,990
Issuance of common stock warrants	(1,050)	(2,531)
Reclassification of derivative liability to equity upon exercise of warrants	(23,537)	(23,364)
Change in estimated fair value of liability classified warrants	33,307	23,786
Balance, ending	$ 38,810	$ 27,990

- Definition

+ References + Details

FAIR VALUE MEASUREMENTS - Acquisition Related Contingent Consideration (Details) - Recurring basis - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Business Combination, Acquisition Related Contingent Consideration [Roll Forward]
Balance, beginning	$ 11,637
Balance, ending	59,021	$ 11,637
Significant unobservable inputs (Level 3)
Business Combination, Acquisition Related Contingent Consideration [Roll Forward]
Balance, beginning	11,637	0
Present value of contingent consideration related to Chenodal/Manchester acquisition, upon acquisition	39,107	12,800
Increase from revaluation of contingent consideration	13,778
Decrease of contingent consideration, asset divestiture	(604)
Contractual Payments	(3,938)	(1,163)
Contractual Payments accrued at December 31, 2015	(959)
Balance, ending	$ 59,021	$ 11,637

INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands			9 Months Ended	12 Months Ended
	Mar. 31, 2015	Mar. 26, 2014	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	May 29, 2014
Finite-Lived Intangible Assets [Line Items]
Net Book Value				$ 161,536	$ 94,265
Impairment of intangible assets				4,710	0	$ 0
Finite-lived intangible asset				$ 179,096	99,867
Remaining weighed average period of amortization (in years)				11 years 22 days
Cash paid upon consummation				$ 33,430	29,150	0
Other Expense
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets			$ 4,700
Minimum
Finite-Lived Intangible Assets [Line Items]
Assets useful life (in years)				1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Assets useful life (in years)				16 years
Manchester Pharmaceuticals LLC
Finite-Lived Intangible Assets [Line Items]
Cash paid upon consummation		$ 29,150
Asklepion Pharmaceuticals LLC
Finite-Lived Intangible Assets [Line Items]
Discount rate percentage				19.00%
Cash paid upon consummation	$ 33,430
Common stock shares issued (in shares)	661,279
Value of common stock	$ 15,844
Ligand License Agreement
Finite-Lived Intangible Assets [Line Items]
Net Book Value						2,500
Require To Make Substantial Payments Payable Upon Achievement Of Milestones						$ 105,500
Payment of amendment consideration				$ 1,000
Finite-lived intangible asset				3,300
Ligand License Agreement \| Minimum
Finite-Lived Intangible Assets [Line Items]
Annual Royalty Percentage						15.00%
Ligand License Agreement \| Maximum
Finite-Lived Intangible Assets [Line Items]
Annual Royalty Percentage						17.00%
Chenodal Product Rights
Finite-Lived Intangible Assets [Line Items]
Net Book Value				60,360
Finite-lived intangible asset				$ 67,849
Assets useful life (in years)				16 years
Product rights
Finite-Lived Intangible Assets [Line Items]
Net Book Value					67,952
Finite-lived intangible asset					$ 71,372
Assets useful life (in years)					16 years
Product rights \| Manchester Pharmaceuticals LLC
Finite-Lived Intangible Assets [Line Items]
Intangible assets with definite lives		$ 71,372
Assets useful life (in years)		16 years		16 years
Product rights \| Asklepion Pharmaceuticals LLC
Finite-Lived Intangible Assets [Line Items]
Assets useful life (in years)	10 years
Trade Name
Finite-Lived Intangible Assets [Line Items]
Net Book Value				$ 0	$ 41
Finite-lived intangible asset				$ 175	$ 175
Assets useful life (in years)				1 year	1 year
Trade Name \| Manchester Pharmaceuticals LLC
Finite-Lived Intangible Assets [Line Items]
Intangible assets with definite lives		$ 175		$ 200
Assets useful life (in years)		1 year		1 year
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Net Book Value				$ 332	$ 372
Finite-lived intangible asset				$ 403	$ 403
Assets useful life (in years)				10 years	10 years
Customer relationships \| Manchester Pharmaceuticals LLC
Finite-Lived Intangible Assets [Line Items]
Intangible assets with definite lives		$ 403		$ 400
Assets useful life (in years)		10 years		10 years
Vecamyl
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset				$ 3,600
Thiola License Agreement
Finite-Lived Intangible Assets [Line Items]
Assets useful life (in years)					10 years
Remaining weighed average period of amortization (in years)					8 years 4 months 24 days
Thiola License Agreement \| Mission Pharmacal Company
Finite-Lived Intangible Assets [Line Items]
Present value of guaranteed minimum royalties payable				$ 10,900
Discount rate percentage				11.00%
Mission an up-front license fee							$ 3,000
Guaranteed minimum royalties							$ 2,000
Thiola License Agreement \| Mission Pharmacal Company \| Other Current Liabilities
Finite-Lived Intangible Assets [Line Items]
Guaranteed minimum royalties				$ 800
Thiola License Agreement \| Mission Pharmacal Company \| Other Noncurrent Liabilities
Finite-Lived Intangible Assets [Line Items]
Guaranteed minimum royalties				10,100
Thiola Asset
Finite-Lived Intangible Assets [Line Items]
Net Book Value				21,340	$ 14,179
Finite-lived intangible asset				$ 24,133	$ 15,049
Assets useful life (in years)				10 years	10 years
United States \| Asklepion Pharmaceuticals LLC
Finite-Lived Intangible Assets [Line Items]
Capitalized economic interest	$ 75,900
International \| Asklepion Pharmaceuticals LLC
Finite-Lived Intangible Assets [Line Items]
Capitalized economic interest	7,300
Purchase Agreement \| Asklepion Pharmaceuticals LLC
Finite-Lived Intangible Assets [Line Items]
Value of common stock	$ 9,000

INTANGIBLE ASSETS - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 179,096	$ 99,867
Accumulated Amortization	(17,560)	(5,602)
Net Book Value	$ 161,536	$ 94,265
Chenodal Product Rights
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in years)	16 years
Gross Carrying Amount	$ 67,849
Accumulated Amortization	(7,489)
Net Book Value	$ 60,360
Chenodal and Vecamyl Product Rights
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in years)		16 years
Gross Carrying Amount		$ 71,372
Accumulated Amortization		(3,420)
Net Book Value		$ 67,952
Thiola License
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in years)	10 years	10 years
Gross Carrying Amount	$ 24,133	$ 15,049
Accumulated Amortization	(2,793)	(870)
Net Book Value	$ 21,340	$ 14,179
Economic Interest - U.S. revenue Cholbam
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in years)	10 years
Gross Carrying Amount	$ 75,900
Accumulated Amortization	(5,715)
Net Book Value	$ 70,185
Economic Interest - Int'l revenue Cholbam
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in years)	10 years
Gross Carrying Amount	$ 7,336
Accumulated Amortization	(552)
Net Book Value	$ 6,784
Syntocinon License
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in years)		20 years
Gross Carrying Amount		$ 5,000
Accumulated Amortization		(190)
Net Book Value		$ 4,810
Carbetocin Assets
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in years)		10 years
Gross Carrying Amount		$ 5,568
Accumulated Amortization		(430)
Net Book Value		$ 5,138
Ligand License
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in years)	11 years	11 years
Gross Carrying Amount	$ 3,300	$ 2,300
Accumulated Amortization	(765)	(527)
Net Book Value	$ 2,535	$ 1,773
Manchester Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in years)	10 years	10 years
Gross Carrying Amount	$ 403	$ 403
Accumulated Amortization	(71)	(31)
Net Book Value	$ 332	$ 372
Manchester Trade Name
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in years)	1 year	1 year
Gross Carrying Amount	$ 175	$ 175
Accumulated Amortization	(175)	(134)
Net Book Value	$ 0	$ 41

INTANGIBLE ASSETS - Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 13,231	$ 5,278	$ 324
Research and development expenses
Finite-Lived Intangible Assets [Line Items]
Amortization expense	697	823	324
Selling, general and administrative expenses
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 12,534	$ 4,455	$ 0

INTANGIBLE ASSETS - Amortization Expense Next Five Years (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2016	$ 15,517
2017	15,474
2018	15,474
2019	15,474
2020	15,476
Thereafter	84,121
Net Book Value	$ 161,536	$ 94,265

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Compensation related costs	$ 7,143	$ 8,163
Severance related costs	315	5,710
Research and development	4,281	3,720
License fee	0	3,000
Legal fees	882	1,208
Interest	259	2,318
Government rebate reserves	3,158	1,353
Selling, general and administrative	2,703	2,411
Royalty/contingent consideration	4,688	0
Miscellaneous	391	0
Total accrued expenses	$ 23,820	$ 27,883

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands			12 Months Ended
	Feb. 13, 2015	Jan. 09, 2015	Dec. 31, 2015	Dec. 31, 2013	Jun. 30, 2013
Related Party Transaction [Line Items]
Series of agreements to settle					$ 2,300
Amount paid at time of filing				$ 2,300
Cash consideration				2,200
Shares issued on behalf of related party				$ 81
Shares issued for investments (in shares)				47,128
Principal amount					$ 2,300
Interest rate percentage					5.00%
Impact related to divestitures			$ 900
Common Stock
Related Party Transaction [Line Items]
Shares issued on behalf of related party (in shares)				11,000
Turing Pharmaceuticals \| Purchase Agreement
Related Party Transaction [Line Items]
Purchase price	$ 1,100	$ 1,000
Manchester Pharmaceuticals LLC \| Turing Pharmaceuticals \| Purchase Agreement
Related Party Transaction [Line Items]
Purchase price	300
Manchester Pharmaceuticals LLC \| Waldun Pharmaceuticals, LLC \| Purchase Agreement
Related Party Transaction [Line Items]
Purchase price	$ 700

NOTES PAYABLE (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	May 29, 2014	Jun. 30, 2013
Debt Instrument [Line Items]
Interest rate percentage						5.00%
Finance expense as other expense related to issuance		$ 600	$ 4,721	$ 0
Convertible debt (in shares)			0	0
Convertible Debt \| Note Purchase Agreement
Debt Instrument [Line Items]
Credit agreement amount					$ 46,000
Initial conversion price (in dollars per share)					$ 17.41
Interest rate percentage					4.50%
Aggregate carrying value					$ 43,000
Debt discount					$ 3,000
Number of shares issued to investors	401,047
Finance expense as other expense related to issuance			$ 4,700
Fair value of common stock (in dollars per share)		$ 19.29
Convertible debt (in shares)		2,642,160
If-converted value in excess of carrying amount		$ 7,100

NOTES PAYABLE - Schedule of Carrying Amount of Debt (Details) - Convertible Debt - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Aggregate principle amount of Notes	$ 46,000	$ 46,000
Unamortized debt discount	(2,098)	(2,712)
Net carrying amount	$ 43,902	$ 43,288

NOTES PAYABLE - Fair Value of Warrants (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Expected volatility		85.00%
Expected life (in years), represents the weighted average period until next liquidity event		3 months 29 days
Expected dividend yield	0.00%	0.00%
Note Payable With Detachable Warrants
Debt Instrument [Line Items]
Risk free rate	1.62%
Expected volatility	85.00%
Expected life (in years), represents the weighted average period until next liquidity event	4 months 10 days
Expected dividend yield	0.00%
Exercise Price (in dollars per share)	$ 12.76

NOTES PAYABLE - Credit Facility (Details) - USD ($) $ / shares in Units, $ in Millions					1 Months Ended	12 Months Ended		13 Months Ended
	Jul. 01, 2015	Mar. 24, 2015	Jan. 12, 2015	Nov. 13, 2014	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Nov. 30, 2014
Line of Credit Facility [Line Items]
Grant date fair value of the Warrants recorded as a derivative liability (in dollars per share)						$ 2.5	$ 2.5
Credit Facility
Line of Credit Facility [Line Items]
Number of common stock called by warrants (in shares)			125,000
Cash payment to Lenders			$ 0.6
Value Of Warrant Or Right Number Of Securities Called By Warrants Or Rights			1.1
Issuance of common stock in connection with public offering, net of fees		$ 140.0
Payment due to Asklepion upon closing			27.0
Prepayment premium	$ 2.3
Additional charge of prepayment premium	$ 4.2
Credit Agreement
Line of Credit Facility [Line Items]
Number of common stock called by warrants (in shares)							337,500
Exercise price (in dollars per share)							$ 12.76
Credit Agreement \| Convertible Notes Payable
Line of Credit Facility [Line Items]
Credit agreement amount					$ 45.0
LIBOR Rate \| Credit Agreement \| Convertible Notes Payable
Line of Credit Facility [Line Items]
Debt instrument basis points added percentage					10.00%
Base Rate \| Credit Agreement \| Convertible Notes Payable
Line of Credit Facility [Line Items]
Debt instrument basis points added percentage					9.00%
Amendment No. 3 \| Definitive Agreement \| Athyrium Capital Management, LLC and Perceptive Credit Opportunities Fund, LP
Line of Credit Facility [Line Items]
Credit agreement amount			$ 30.0
Number of common stock called by warrants (in shares)			125,000
Clinuvel Pharmaceuticals Limited \| Amendment No. 2 \| Credit Agreement \| Note Payable With Detachable Warrants
Line of Credit Facility [Line Items]
Number of common stock called by warrants (in shares)				300,000				300,000
Exercise price (in dollars per share)				$ 9.96
Value of common stock exercisable by warrants				$ 2.2				$ 2.2

NOTES PAYABLE - Notes Payable, Manchester Pharmaceuticals LLC (Details) - USD ($)		12 Months Ended
	Jun. 26, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Mar. 26, 2014
Debt Instrument [Line Items]
Interest expense		$ 7,700,000	$ 7,400,000	$ 0
Note payable
Debt Instrument [Line Items]
Credit agreement amount					$ 33,000,000
Present value of debt instrument					$ 31,300,000
Effective interest rate percentage					11.00%
Loan payment	$ 11,000,000
Interest expense			$ 1,700,000

COMMITMENTS AND CONTINGENCIES - Leases and Sublease Agreements (Details) - Leases and Sublease Agreements - USD ($)				12 Months Ended
	Dec. 30, 2015	Sep. 08, 2014	Jul. 31, 2014	Dec. 31, 2014
San Diego, California
Other Commitments [Line Items]
Annual base rent		$ 540,000
Loss on exiting lease				$ 170,811
Cambridge, Massachusetts
Other Commitments [Line Items]
Annual base rent			$ 815,000
New York, New York
Other Commitments [Line Items]
Annual base rent	$ 550,000

COMMITMENTS AND CONTINGENCIES - Contractual Commitments (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Operating leases
Total	$ 2,671
Less than 1 year	1,026
1-3 years	1,645
3-5 years	0
More than 5 years	0
Purchase order commitments
Purchase order commitments	596
Less than 1 year	258
1-3 years	338
3-5 years	0
More than 5 years	0
Total
Total	65,031
Less than 1 year	7,589
1-3 years	8,358
3-5 years	47,696
More than 5 years	1,388
Note payable
Other Commitments
Total	53,073
Less than 1 year	2,070
1-3 years	4,140
3-5 years	46,863
More than 5 years	0
Sales support services
Other Commitments
Total	3,470
Less than 1 year	312
1-3 years	937
3-5 years	833
More than 5 years	1,388
Product supply contracts
Other Commitments
Total	5,221
Less than 1 year	3,923
1-3 years	1,298
3-5 years	0
More than 5 years	$ 0

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended
	Sep. 19, 2014	Jun. 30, 2015
Questcor Pharmaceuticals, Inc.
Other Commitments [Line Items]
Settlement amount		$ 15,500
Martin Shkreli
Other Commitments [Line Items]
Settlement amount	$ 2,025
Martin Shkreli \| Plaintiffs
Other Commitments [Line Items]
Settlement amount	$ 625

STOCKHOLDERS’ EQUITY / DEFICIT - (Details) - USD ($)			1 Months Ended					6 Months Ended	12 Months Ended
STOCKHOLDERS’ EQUITY / DEFICIT - (Details) - USD ($)	Mar. 24, 2015	May 09, 2014	Mar. 31, 2015	Jan. 31, 2014	Aug. 31, 2013	Feb. 28, 2013	Jan. 31, 2013	Aug. 18, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Jun. 08, 2015
Stockholders Equity [Line Items]
Common stock, shares authorized									100,000,000	100,000,000
Common stock, par value (in dollars per share)									$ 0.0001	$ 0.0001
Common stock per shares are entitled to vote									1 vote
Preferred stock, par value (in dollars per share)									$ 0.001	$ 0.001
Preferred Stock, shares authorized									20,000,000	20,000,000
Price per common share (in dollars per share)			$ 19.00	$ 8.50	$ 4.50	$ 3.00	$ 3.00
Net proceeds from the offering									$ 149,487,000	$ 40,000,000	$ 30,937,000
Underwriting fees and other offering costs			$ 9,000,000	$ 3,200,000	$ 2,800,000	$ 900,000	$ 0
2014 Incentive Compensation Plan
Stockholders Equity [Line Items]
Shares issued (in shares)		3,000,000.0
2015 Equity Incentive Plan
Stockholders Equity [Line Items]
Common stock, shares authorized												1,400,000.0
Shares remaining available for issuance under the plan (in shares)												600,000.0
Series A Preferred Stock
Stockholders Equity [Line Items]
Preferred stock, par value (in dollars per share)									$ 0.001
Preferred Stock, shares authorized									1,000
Restricted shares
Stockholders Equity [Line Items]
Issuance of stock options to purchase shares (in shares)								230,000
Restricted shares \| 2014 Incentive Compensation Plan
Stockholders Equity [Line Items]
Issuance of stock options to purchase shares (in shares)								230,000
Stock Options
Stockholders Equity [Line Items]
Shares issued (in shares)									2,285,000
Common Stock
Stockholders Equity [Line Items]
Shares issued (in shares)									478,334
Issuance of stock options to purchase shares (in shares)								1,928,000
Common Stock \| 2014 Incentive Compensation Plan
Stockholders Equity [Line Items]
Issuance of stock options to purchase shares (in shares)								1,928,000
Public Offering \| Common Stock
Stockholders Equity [Line Items]
Number of common stock issued	7,866,000
Price per common share (in dollars per share)	$ 19.00
Net proceeds from the offering	$ 140,000,000
Underwriting fees and other offering costs	$ 9,500,000

STOCKHOLDERS’ EQUITY / DEFICIT - Black Scholes Assumptions (Details) - Stock Options	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free rate	1.53%	1.55%	1.51%
Expected volatility	83.00%	85.00%	102.00%
Expected life (in years)	5 years 9 months 22 days	5 years 9 months 22 days	5 years 9 months 22 days
Expected dividend yield	0.00%	0.00%	0.00%

STOCKHOLDERS’ EQUITY / DEFICIT - Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Shares
Outstanding, Beginning Balance (in shares)	4,892,208
Granted (in shares)	2,285,000
Forfeited and expired (in shares)	(970,170)
Exercised (in shares)	(541,454)
Outstanding, Ending Balance (in shares)	5,665,584	4,892,208
Exercisable ending balance (in shares)	2,036,906	1,225,833
Weighted Average Exercise Price
Outstanding, Beginning Balance (in dollars per share)	$ 10.93
Granted (in dollars per share)	27.15
Forfeited and expired (in dollars per share)	14.91
Exercised (in dollars per share)	13.10
Outstanding, Ending Balance (in dollars per share)	17.05	$ 10.93
Exercisable ending balance (in dollars per share)	$ 12.55	$ 9.73
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Remaining Contractual Term, Outstanding (in years)	8 years 9 months	8 years 6 months 25 days
Remaining Contractual Term, Exercisable (in years)	8 years 4 months 2 days	7 years 11 months 16 days
Outstanding, Aggregate Intrinsic Value	$ 31,542	$ 8,353
Exercisable, Aggregate Intrinsic Value	$ 15,582	$ 3,395

STOCKHOLDERS’ EQUITY / DEFICIT - Share Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 25,900	$ 15,900	$ 2,910
Selling, general and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	16,483	10,940	2,651
Research and development expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 9,417	$ 4,960	$ 259

STOCKHOLDERS’ EQUITY / DEFICIT - Unvested Restricted Stock (Details) - Restricted shares	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Number of shares
Unvested beginning balance (in shares) \| shares	691,668
Granted (in shares) \| shares	273,000
Vested (in shares) \| shares	(478,334)
Forfeited/cancelled (in shares) \| shares	(56,668)
Unvested ending balance (in shares) \| shares	429,666
Weighted Average Grant Date Fair Value
Unvested beginning balance (in dollars per share) \| $ / shares	$ 10.83
Granted (in dollars per share) \| $ / shares	26.97
Vested (in dollars per share) \| $ / shares	11.56
Forfeited/cancelled (in dollars per share) \| $ / shares	13.97
Unvested ending balance (in dollars per share) \| $ / shares	$ 20.38

STOCKHOLDERS’ EQUITY / DEFICIT - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stockholders Equity [Line Items]
Proceeds exercise of warrants			$ 4,475,000	$ 8,398,000	$ 0
Value of shares repurchased during the period				$ 2,258,000	$ 957,000
Common Stock
Stockholders Equity [Line Items]
Closing stock price of stock options outstanding and exercisable (in dollars per share)			$ 19.29
Shares repurchased during the period (in shares)		130,790	0	248,801
Value of shares repurchased during the period		$ 957,272		$ 2,300,000
Retirement of treasury stock (in shares)	379,591		379,591
Stock Options
Stockholders Equity [Line Items]
Weighted average grant date fair value of options (in dollars per share)			$ 19.02	$ 8.56	$ 6.03
Unrecognized compensation cost associated with unvested options			$ 47,400,000
Weighted average period for unrecognized costs (in years)			1 year 10 months 24 days
Restricted shares
Stockholders Equity [Line Items]
Weighted average period for unrecognized costs (in years)			1 year 9 months 18 days
Unrecognized compensation cost related to restricted shares granted			$ 7,100,000
Warrants
Stockholders Equity [Line Items]
Number of common stock called by warrants (in shares)			870,306	1,947,377
Proceeds exercise of warrants			$ 4,500,000	$ 8,400,000
Reclassification of derivative liability as equity			23,500,000	$ 23,400,000
Change in fair value of warrants			$ 2,800,000

EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Shares
Basic Earnings per Share (in shares)									33,560,249	25,057,509	14,205,264
Convertible Debt (in shares)										0	0
Dilutive Earnings per Share (in shares)									37,581,439	25,057,509	14,205,264
Net Income
Net loss	$ (2,469)	$ 105,578	$ (25,527)	$ 39,655	$ (29,027)	$ (17,980)	$ 11,805	$ (75,736)	$ 117,237	$ (110,938)	$ (34,625)
Convertible Debt									1,881	0	0
Dilutive Earnings per Share									$ 119,118	$ (110,938)	$ (34,625)
Basic Earnings per Share, EPS (in dollars per shares)	$ (0.07)	$ 2.95	$ (0.73)	$ 1.46	$ (1.10)	$ (0.67)	$ 0.46	$ (3.25)	$ 3.49	$ (4.43)	$ (2.44)
Dilutive Earnings per Share, EPS (in dollars per shares)	$ (0.14)	$ 1.78	$ (0.73)	$ 1.32	$ (1.10)	$ (0.84)	$ (0.77)	$ (3.25)	$ 3.17	$ (4.43)	$ (2.44)
Restricted Stock
Shares
Dilutive securities (in shares)									290,966	0	0
Net Income
Dilutive securities									$ 0	$ 0	$ 0
Stock Options
Shares
Dilutive securities (in shares)									1,088,064	0	0
Net Income
Dilutive securities									$ 0	$ 0	$ 0

EARNINGS (LOSS) PER SHARE - Antidilutive Securities (Details) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	3,736,992	4,216,355	4,635,093
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	22,069	0	0
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	1,049,375	1,132,500	172,667
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	2,665,548	3,083,855	4,462,426

INCOME TAXES - Components of Net Income Before Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Loss Carryforwards [Line Items]
Income (loss) before provision for income taxes	$ (12,994)	$ 144,339	$ (25,512)	$ (366)	$ (29,027)	$ (17,980)	$ 9,280	$ (75,671)	$ 105,467	$ (113,398)	$ (34,549)
United States
Operating Loss Carryforwards [Line Items]
Income (loss) before provision for income taxes									107,038	(112,558)	(34,549)
Foreign
Operating Loss Carryforwards [Line Items]
Income (loss) before provision for income taxes									$ (1,571)	$ (840)	$ 0

INCOME TAXES - Components of Income Tax Expense(Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current
Federal									$ 2,094	$ 0	$ 0
State									1,709	0	0
Total									3,803	0	0
Deferred
Federal									(8,296)	(1,886)	(6,293)
State									(7,277)	(574)	(3,435)
Total									(15,573)	(2,460)	(9,728)
Change in valuation allowance									0	0	9,804
Total tax provision (benefit)	$ (10,525)	$ 38,761	$ 15	$ (40,021)	$ 0	$ 0	$ (2,525)	$ 65	$ (11,770)	$ (2,460)	$ 76

INCOME TAXES - Reconciliation of Federal Income Tax Rate (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Statutory rate - federal	35.00%	(35.00%)	(35.00%)
State taxes, net of federal benefit	1.53%	(6.77%)	(6.70%)
Change in FV of derivative liability (warrants)	10.89%	7.40%	10.46%
Stock Based Compensation	0.00%	5.51%	2.30%
Bargain purchase gain	(16.04%)
Other permanent differences	3.68%
Tax credits	(7.85%)
Return to provision adjustments and other true-ups	(10.40%)
Other	(0.79%)	0.00%	0.17%
Change in valuation allowance	(27.02%)	26.63%	29.00%
Income tax provision (benefit)	(11.00%)	(2.23%)	0.23%

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax Assets:
Net operating loss	$ 2,870	$ 42,280
Contingent consideration	21,575
Other accrued expenses	3,160
Stock based compensation	9,484
Other	0	1,427
Deferred tax assets	37,089	43,707
Deferred Tax Liabilities:
Intangible assets	(25,124)	(7,830)
Deferred gain on installment sale	(29,095)
Tax basis depreciation less than book depreciation	(218)
Deferred tax liabilities	(54,437)	(7,830)
Net deferred tax assets before valuation allowance	(17,348)	35,877
Valuation allowance	(6,980)	(36,018)
Total deferred tax liability	$ (24,328)	$ (141)

INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning Balance	$ 1,500	$ 0
Increase in current period positions	1,424	1,500
Increase in prior period positions	400	0
Ending Balance	$ 3,324	$ 1,500

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Loss Carryforwards [Line Items]
Prepaid taxes	$ 8,107				$ 0				$ 8,107	$ 0
Decrease in valuation allowance									0	0	$ 9,804
Income tax benefit(provision)	(10,525)	$ 38,761	$ 15	$ (40,021)	$ 0	$ 0	$ (2,525)	$ 65	(11,770)	$ (2,460)	$ 76
Unrecognized tax benefits, reduction from deferred tax assets									1,800
U.S. federal
Operating Loss Carryforwards [Line Items]
Available unused NOL carryforwards	8,200								8,200
Priority Review Voucher
Operating Loss Carryforwards [Line Items]
Income tax benefit(provision)									28,100
Cholbam
Operating Loss Carryforwards [Line Items]
Deferred tax liability in connection with acquisition	39,900								39,900
Decrease in valuation allowance									39,900
Manchester Pharmaceuticals LLC
Operating Loss Carryforwards [Line Items]
Indemnification assets corresponding liability	$ 1,500								$ 1,500

INVESTIGATIONAL MATTERS (Details)	6 Months Ended
INVESTIGATIONAL MATTERS (Details)	Aug. 18, 2014 shares
Common Stock
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Issuance of stock options to purchase shares (in shares)	1,928,000
Restricted Stock
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Issuance of stock options to purchase shares (in shares)	230,000

SEVERANCE AGREEMENTS (Details) - USD ($) $ in Millions					3 Months Ended	12 Months Ended
SEVERANCE AGREEMENTS (Details) - USD ($) $ in Millions	Feb. 13, 2015	Jan. 09, 2015	Oct. 13, 2014	Sep. 15, 2014	Dec. 31, 2014	Dec. 31, 2014	Sep. 30, 2014
Chief Financial Officer \| Separation Agreement
Severance Agreement [Line Items]
Target bonus percentage				100.00%
Accrued severance expense							$ 0.1
Chief Executive Officer \| Separation Agreement
Severance Agreement [Line Items]
Severance expense						$ 4.5
Restricted shares \| Chief Financial Officer \| Separation Agreement
Severance Agreement [Line Items]
Accelerated vesting (in shares)				81,333
Equity Option \| Chief Executive Officer \| Separation Agreement
Severance Agreement [Line Items]
Compensation expense related to cash severance, unpaid bonus and health insurance			$ 0.5
Compensation expense related to accelerated vesting			1.1
Selling, general and administrative expenses \| Chief Financial Officer \| Separation Agreement
Severance Agreement [Line Items]
Severance expense					$ 1.1
Turing Pharmaceuticals
Severance Agreement [Line Items]
Upfront fees payment			$ 3.0			3.0
Liabilities expected to be assumed					$ 3.0	3.0
Severance expense and accrued severance expense						$ 2.9
Turing Pharmaceuticals \| Asset Purchase Agreement
Severance Agreement [Line Items]
Purchase price of assets		$ 1.0
Sales value of product rights	$ 1.1	$ 1.0
Purchase Price Of Inventory	1.1
Manchester Pharmaceuticals LLC
Severance Agreement [Line Items]
Sales value of product rights	0.7
Manchester Pharmaceuticals LLC \| Turing Pharmaceuticals
Severance Agreement [Line Items]
Sales value of product rights	$ 0.3

SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) $ in Thousands	Feb. 17, 2016	Feb. 02, 2016	Jan. 27, 2016
Katten Munchin Rosenman, LLP
Subsequent Event [Line Items]
Damages sought			$ 3,000
MSMB Funds
Subsequent Event [Line Items]
Damages sought	$ 2,180
Interest of damages sought, percentage	5.00%
Pending \| Kazanchyan v. Retrophin, Inc., Case No. 14-cv-8376
Subsequent Event [Line Items]
Settlement amount		$ 3,000

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Net product sales	$ 30,447	$ 28,005	$ 24,068	$ 17,372	$ 14,085	$ 8,348	$ 5,742	$ 28	$ 99,892	$ 28,203	$ 0
Total operating expenses	45,651	48,501	31,012	25,476	32,782	30,215	22,924	22,090	150,640	108,011	24,773
Operating loss	(15,204)	(20,496)	(6,944)	(8,104)	(18,697)	(21,867)	(17,182)	(22,062)	(50,748)	(79,808)	(24,773)
Total other income (expense), net	2,210	164,835	(18,568)	7,738	(10,330)	3,887	26,462	(53,609)	(296)	2,352	370
Income (loss) before provision for income taxes	(12,994)	144,339	(25,512)	(366)	(29,027)	(17,980)	9,280	(75,671)	105,467	(113,398)	(34,549)
Income tax benefit(provision)	10,525	(38,761)	(15)	40,021	0	0	2,525	(65)	11,770	2,460	(76)
Net income (loss)	$ (2,469)	$ 105,578	$ (25,527)	$ 39,655	$ (29,027)	$ (17,980)	$ 11,805	$ (75,736)	$ 117,237	$ (110,938)	$ (34,625)
Per Share Data:
Net loss per common share, basic (in dollars per shares)	$ (0.07)	$ 2.95	$ (0.73)	$ 1.46	$ (1.10)	$ (0.67)	$ 0.46	$ (3.25)	$ 3.49	$ (4.43)	$ (2.44)
Net loss per common share, diluted (in dollars per shares)	$ (0.14)	$ 1.78	$ (0.73)	$ 1.32	$ (1.10)	$ (0.84)	$ (0.77)	$ (3.25)	$ 3.17	$ (4.43)	$ (2.44)