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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2016	Aug. 04, 2016
Document And Entity Information
Entity Registrant Name	Retrophin, Inc.
Entity Central Index Key	0001438533
Trading Symbol	rtrx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		36,731,132
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 21,155	$ 37,805
Marketable securities	200,359	191,799
Accounts receivable, net	16,566	12,458
Inventory, net	2,713	2,536
Prepaid expenses and other current assets	3,365	2,378
Prepaid taxes	8,499	8,107
Note receivable, current	47,500	46,849
Total current assets	300,157	301,932
Property and equipment, net	381	428
Other asset	1,859	1,859
Intangible assets, net	184,432	161,536
Goodwill	936	936
Note receivable, long term	46,206	45,573
Total assets	533,971	512,264
Current liabilities:
Accounts payable	6,285	7,639
Accrued expenses	23,159	23,820
Guaranteed minimum royalty	2,000	2,000
Other current liabilities	1,187	958
Business combination-related contingent consideration	14,077	13,754
Derivative financial instruments, warrants	33,360	38,810
Total current liabilities	80,068	86,981
Convertible debt	44,092	43,766
Other non-current liabilities	2,548	3,066
Guaranteed minimum royalty, less current portion	8,488	8,885
Business combination-related contingent consideration, less current portion	72,300	45,267
Deferred income tax liability, net	12,103	24,328
Total liabilities	219,599	212,293
Stockholders' Equity:
Preferred stock $0.001 par value; 20,000,000 shares authorized; 0 issued and outstanding as of June 30, 2016 and December 31, 2015	0	0
Common stock $0.0001 par value; 100,000,000 shares authorized; 36,725,130 and 36,465,853 issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	4	4
Additional paid-in capital	381,687	365,802
Accumulated deficit	(67,340)	(65,153)
Accumulated other comprehensive income (loss)	21	(682)
Total stockholders' equity	314,372	299,971
Total liabilities and stockholders' equity	$ 533,971	$ 512,264

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock shares authorized (in shares)	100,000,000	100,000,000
Common stock shares issued (in shares)	36,725,130	36,465,853
Common stock shares outstanding (in shares)	36,725,130	36,465,853

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Net product sales	$ 33,311	$ 24,068	$ 62,319	$ 41,440
Operating expenses:
Cost of goods sold	1,021	637	1,778	912
Research and development	17,675	10,563	32,347	20,910
Selling, general and administrative	23,205	19,692	42,330	34,547
Change in valuation of contingent consideration	(2,789)	(120)	(5,485)	(120)
Total operating expenses	44,690	31,012	81,940	56,489
Operating loss	(11,379)	(6,944)	(19,621)	(15,049)
Other income (expenses), net:
Other income (expenses), net	(206)	522	4	349
Interest expense, net	(147)	(2,922)	(309)	(6,720)
Finance expense	0	0	0	(600)
Change in fair value of derivative instruments	(9,063)	(29,418)	5,277	(66,171)
Loss on extinguishment of debt	0	(2,250)	0	(2,250)
Litigation settlement gain	0	15,500	0	15,500
Bargain purchase gain	0	0	0	49,063
Total other income (loss), net	(9,416)	(18,568)	4,972	(10,829)
Loss before provision for income taxes	(20,795)	(25,512)	(14,649)	(25,878)
Income tax benefit (expense)	7,392	(15)	12,462	40,006
Net income (loss)	$ (13,403)	$ (25,527)	$ (2,187)	$ 14,128
Net earnings (loss) per common share, basic (in dollars per share)	$ (0.37)	$ (0.73)	$ (0.06)	$ 0.45
Net earnings (loss) per common share, diluted (in dollars per share)	$ (0.37)	$ (0.73)	$ (0.20)	$ 0.44
Weighted average common shares outstanding, basic (in shares)	36,683,429	34,957,134	36,601,807	31,079,053
Weighted average common shares outstanding, diluted (in shares)	36,683,429	34,957,134	38,063,285	34,827,405
Comprehensive income (loss):
Net income (loss)	$ (13,403)	$ (25,527)	$ (2,187)	$ 14,128
Foreign currency translation	71	(30)	2	(7)
Unrealized loss on marketable securities	(157)	(298)	(706)	(3,519)
Comprehensive income (loss)	$ (13,489)	$ (25,855)	$ (2,891)	$ 10,602

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows From Operating Activities:
Net income (loss)	$ (2,187)	$ 14,128
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	7,858	5,536
Realized gain on marketable securities	0	(107)
Gain upon divestiture of assets to Turing Pharmaceuticals	0	(914)
Deferred income tax benefit	(12,286)	(40,021)
Interest income from notes receivable	(1,285)	0
Non-cash interest expense	1,179	1,154
Amortization of premiums on marketable securities	666	0
Amortization of debt discount and deferred financing costs	326	1,010
Lease liability	0	(125)
Legal accrual reversal	(2,967)	0
Bargain purchase gain	0	(49,063)
Share based compensation	14,286	10,567
Derivative financial instruments, warrants, issued, recorded in interest expense	0	1,050
Change in estimated fair value of liability classified warrants	(5,277)	66,171
Change in estimated fair value of contingent consideration	5,485	113
Payments related to change in fair value of contingent consideration	(550)	(90)
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	(4,104)	(3,508)
Inventory	(174)	(640)
Prepaid expenses and other current assets	(1,197)	(420)
Accounts payable and accrued expenses	650	(3,417)
Net cash provided by operating activities	423	1,424
Cash Flows From Investing Activities:
Purchase of fixed assets	(24)	(29)
Cash paid for intangible assets	(4,881)	(2,497)
Proceeds from the sale/maturity of marketable securities	59,874	282
Purchase of marketable securities	(68,517)	0
Cash received upon divestiture of asset	0	3,311
Cash paid upon acquisition, net of cash acquired	(500)	(33,430)
Net cash used in investing activities	(14,048)	(32,363)
Cash Flows From Financing Activities:
Payment of guaranteed minimum royalty	(1,000)	(1,000)
Proceeds from exercise of warrants	90	586
Payment of other liability	(500)	(500)
Proceeds from exercise of stock options	1,572	2,669
Excess benefit related to stock compensation	(236)	0
Proceeds received from issuance of common stock	0	149,454
Financing costs from issuance of common stock	0	(9,500)
Net cash used in (provided by) financing activities	(2,843)	140,481
Effect of exchange rate changes on cash	(182)	0
Net change in cash	(16,650)	109,542
Cash, beginning of year	37,805	18,204
Cash, end of period	21,155	127,746
Manchester
Cash Flows From Financing Activities:
Payment of acquisition-related contingent consideration	(2,125)	(1,228)
Asklepion
Cash Flows From Financing Activities:
Payment of acquisition-related contingent consideration	$ (644)	$ 0

DESCRIPTION OF BUSINESS

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

DESCRIPTION OF BUSINESS

Organization and Description of Business

In this Quarterly Report on Form 10-Q, unless the context requires otherwise, the terms “we”, “our”, “us”, “Retrophin” and the “Company” refer to Retrophin, Inc., a Delaware corporation, as well as our direct and indirect subsidiaries. We are a fully integrated biopharmaceutical company with approximately 130 employees headquartered in San Diego, California dedicated to delivering life-changing therapies to people living with rare diseases who have few, if any, treatment options. Our approach centers on our pipeline, featuring clinical-stage assets and pre-clinical discovery programs targeting rare diseases with significant unmet medical needs. Our research and development efforts are supported by revenues from the Company's marketed products, Chenodal^®, Cholbam^®and Thiola^®. In addition 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.

Products on the Market:

•

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 also 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 cysteine (kidney) stone formation in patients with cystinuria.

Product Candidates:

Sparsentan, also known as RE-021, is an investigational therapeutic agent which acts as both a potent angiotensin receptor blocker (“ARB”), as well as a selective endothelin receptor antagonist (“ERA”), with in vitro selectivity toward endothelin receptor type A. We have secured a license to sparsentan from Ligand Pharmaceuticals, Inc. and Bristol-Myers Squibb Company (who referred to it as DARA). We are developing sparsentan as a treatment for focal segmental glomerulosclerosis ("FSGS"), which is a leading cause of end-stage renal disease and Nephrotic Syndrome (“NS”). There are no U.S. Food and Drug Administration ("FDA") approved pharmacological treatments for FSGS and the off-label armamentarium is limited to ACE/ARBs, steroids, and immunosuppressant agents, which are effective in only a subset of patients. We estimate that there are at least 40,000 FSGS patients in the United States. We have completed enrollment for our 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 robustness of the data obtained in the DUET study, we may be able to support an application for accelerated approval for sparsentan on the basis of proteinuria as a surrogate endpoint. Sparsentan was granted orphan drug designation in the U.S. and EU in January and November 2015, respectively.

We are developing RE-024, a novel small molecule, as a potential treatment for pantothenate kinase-associated neurodegeneration ("PKAN"). PKAN is a genetic neurodegenerative disorder that is typically diagnosed in the first decade of life. Consequences of PKAN include dystonia, dysarthria, rigidity, retinal degeneration, and severe digestive problems. PKAN is estimated to affect 1 to 3 persons per million. 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 patients under physician-initiated studies in accordance with local regulations in their respective countries. The Company filed a Investigational New Drug application ("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 was successfully completed during 2015. RE-024 was granted orphan drug designation by the FDA in May 2015 and was granted fast track designation by the FDA in June 2015. On February 24, 2016, we announced RE-024 was granted orphan drug designation from the European Commission. The Company continues discussions with the FDA and the European Medicines Agency ("EMA") regarding the initiation of a potential registration-enabling efficacy trial in PKAN patients.

L-UDCA is a liquid formulation of ursodeoxycholic acid being developed for the treatment of a rare liver disease called primary biliary cholangitis (PBC). Retrophin expects to file a New Drug Application with the FDA in 2017 and, if approved, plans to make L-UDCA commercially available to the subset of PBC patients who have difficulty swallowing. There are no liquid formulations of ursodeoxycholic acid currently approved by the FDA.

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 all five melanocortin receptors (pan-MCR), resulting in its anti-inflammatory and immunomodulatory effects. Retrophin has successfully manufactured RE-034 at proof-of-concept scale using a novel formulation process that allows modulation of the release of the active ingredient from the site of administration. The Company is exploring strategic options for development of RE-034, including the evaluation of external partnership and out-licensing opportunities.

Preclinical:

NGLY1

The Company entered into a research collaboration with the Grace Science Foundation and the Warren Family Research Center for Drug Discovery and Development at the University of Notre Dame for the development of a novel therapeutic for patients with NGLY1 deficiency, a rare genetic disorder. NGLY1 deficiency is believed to be caused by a deficiency in an enzyme called N-glycanase-1, which is encoded by the gene NGLY1. The condition is characterized by a variety of symptoms, including global developmental delay, movement disorder, seizures, and ocular abnormalities. Under this collaboration, the Grace Science Foundation will provide support and funding to Retrophin to enable discovery efforts that aim to validate and address a new molecular target that may be relevant to NGLY1 deficiency. The Warren Family Research Center for Drug Discovery and Development at the University of Notre Dame will provide funding and in-kind research support to help Retrophin advance this program.

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2016, and amended on March 2, 2016. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions for Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements, but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for any future periods. The December 31, 2015 balance sheet information was derived from the audited financial statements as of that date. Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current period presentation.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies applied in the preparation of the accompanying condensed consolidated financial statements follows: Principles of Consolidation The unaudited condensed consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with GAAP. All intercompany accounts and transactions have been eliminated in consolidation. Adoption of New Accounting Standards In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This ASU amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of as a deferred charge. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2015. The Company adopted the new guidance effective March 31, 2016. The adoption of the new guidance did not have a material impact on the Company’s financial statements. See Note 10 for further discussion. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred taxes. This ASU 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. This ASU 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 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. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption. In May 2014, the FASB issued 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 this ASU 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 ASU is 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 February 2016, the FASB issued ASU 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, if any, the adoption of this standard will have on our consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-09, Compensation —Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. That is, off balance sheet accounting for net operating losses stemming from excess tax benefits would no longer be required and instead such net operating losses would be recognized when they arise. Existing net operating losses that are currently tracked off balance sheet would be recognized, net of a valuation allowance if required, through an adjustment to opening retained earnings in the period of adoption. Entities will no longer need to maintain and track an “APIC pool.” The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. In addition, the ASU elevates the statutory tax withholding threshold to qualify for equity classification up to the maximum statutory tax rates in the applicable jurisdiction(s). The ASU also clarifies that cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The ASU provides an optional accounting policy election (with limited exceptions), to be applied on an entity-wide basis, to either estimate the number of awards that are expected to vest (consistent with GAAP) or account for forfeitures when they occur. The ASU is effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Certain detailed transition provisions apply if an entity elects to early adopt. We are currently evaluating the impact, if any, the adoption of this standard will have on our consolidated financial statements. In June 2016, the FASB issued No. 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Topic 326 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect it's current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company currently holds available for sale debt securities that are effected by this ASU and is currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s income tax benefit for the three months ended June 30, 2016 and 2015 of $7.4 million and $0, respectively, reflect effective tax rates of 35.6% and 0%, respectively, and income tax benefit of $12.5 million and $40.0 million, respectively, reflect effective tax rates of 85.1% and 154.6% for the six months ended June 30, 2016 and 2015, respectively, inclusive of discrete income and loss items recorded in the quarterly financial statements. Under GAAP, quarterly effective tax rates may vary significantly depending on the actual operating results in the various tax jurisdictions and significant transactions, as well as changes in the valuation allowance related to the expected recovery of deferred tax assets. For the six months ended June 30, 2016, when compared to the same period in 2015, the decrease in the tax benefit and effective income tax rate was primarily attributable to the release of a U.S. federal valuation allowance in 2015. At June 30, 2016, we had gross unrecognized tax benefits of $6.7 million compared to $3.3 million at December 31, 2015, representing a net increase of $3.4 million during the six months ended June 30, 2016. If recognized, $5.2 million of unrecognized tax benefits would affect the Company’s effective tax rate. We did not recognize any interest and penalties related to unrecognized tax benefits during the three month ended June 30, 2016. We are currently not under income tax audit examination in any material jurisdictions in which we operate.

BUSINESS COMBINATION

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

BUSINESS COMBINATION

Acquisition of Liquid Ursodeoxycholic Acid (L-UDCA)

On June 20, 2016, the Company announced the signing of a definitive agreement to purchase the rights, titles, and ownership of L-UDCA from Asklepion. Retrophin intends to file a New Drug Application with the FDA for L-UDCA for the treatment of PBC in 2017.

The acquisition was accounted for under the purchase method of accounting in accordance with Accounting Standard Codification ("ASC") 805. The fair value of assets acquired and liabilities assumed was based upon a 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 for L-UDCA, licenses, 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. Management's valuation is preliminary. Once the valuation is complete, the Company will make any necessary adjustments.

The purchase included $25.5 million for an intangible asset with a definite life related to product rights for the U.S. The useful life related to the acquired product rights are expected to be approximately 17 years once NDA is approved by the FDA.

The contingent consideration of $25.0 million (present value) recorded during the period ended June 30, 2016, is related to an agreement to pay an additional cash amount in the form of milestones and sales royalties through 2035. The accrued contingent consideration was recorded as a liability at acquisition-date fair value using the income approach with an assumed discount rate of 12.0% over the applicable term.

The purchase price allocation of $25.5 million as of the acquisition completion date of June 16, 2016 is as follows (in thousands):



Cash paid upon consummation	$	500
Present value of contingent consideration	25,000
Total purchase price	$	25,500

Fair Value of Assets Acquired and Liabilities Assumed
Acquired product rights: L-UDCA (intangible asset)	$	25,500
Total purchase price	$	25,500

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

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 Priority Review Voucher ("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 a 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 to Cholbam, the 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 was 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 as of December 31, 2015 was 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 year 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. The tax rate utilized was 45.4%.

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



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

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

Unaudited pro forma information for the transaction was not presented, because the effects of such transaction were considered immaterial to the Company.

- Definition

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

+ References

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

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

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

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

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

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

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

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

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

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

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4926-128472

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

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

+ Details

MARKETABLE SECURITIES

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

MARKETABLE SECURITIES

The Company's marketable securities as of June 30, 2016 and 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. 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. During the six months ended June 30, 2016, investment activity for the Company included $59.9 million in maturities and purchases of $68.5 million, all relating to debt based marketable securities.

Marketable securities consisted of the following (in thousands):



	June 30, 2016		December 31, 2015
Marketable other than equity securities:
Commercial paper	$	40,823	$	31,864
Corporate debt securities	130,023		125,547
Securities of government sponsored entities	29,513		34,388
Total Marketable Securities:	$	200,359	$	191,799

The following is a summary of short-term marketable securities classified as available-for-sale as of June 30, 2016 (in thousands):



	Remaining Contractual Maturity (in years)	Amortized Cost		Unrealized Gains		Unrealized Losses			Aggregate Estimated Fair Value
Marketable other than equity securities:
Commercial paper	Less than 1	$	40,841	$	2	$	(20	)	$	40,823
Corporate debt securities	Less than 1	92,226		26		(25		)	92,227
Securities of government-sponsored entities	Less than 1	5,000		—		—			5,000
Total maturity less than 1 year		138,067		28		(45		)	138,050
Corporate debt securities	1 to 2	37,718		103		(25		)	37,796
Securities of government-sponsored entities	1 to 2	24,511		3		(1		)	24,513
Total maturity 1 to 2 years		62,229		106		(26		)	62,309
Total available-for-sale securities		$	200,296	$	134	$	(71	)	$	200,359

The following is a summary of short-term marketable securities classified as available-for-sale as of December 31, 2015 (in thousands):



	Remaining 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	69,859		—		(164		)	69,695
Total maturity less than 1 year		101,758		6		(205		)	101,559
Corporate debt securities	1 to 2	56,162		—		(310		)	55,852
Securities of government-sponsored entities	1 to 2	34,522		2		(136		)	34,388
Total maturity 1 to 2 years		90,684		2		(446		)	90,240
Total available-for-sale securities		$	192,442	$	8	$	(651	)	$	191,799

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 June 30, 2016 and December 31, 2015, the Company believed the cost basis for available-for-sale investments was recoverable in all material respects.

- Definition

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

+ References + Details

DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

Since 2013, the Company has issued five tranches of common stock purchase warrants to secure financing, remediate covenant violations and provide consideration for credit facility amendments extinguished in 2015.

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

The warrants are re-measured at each balance sheet date based on estimated fair value. Changes in estimated fair value are recorded as non-cash adjustments within other income (expenses), net, in the Company’s accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The Company recorded a loss on the change in the estimated fair value of warrants of $9.1 million and a gain on the change in the estimated fair value of warrants of $5.3 million for the three and six months ended June 30, 2016, respectively, and a loss on the change in the estimated fair value of warrants of $29.4 million and $66.2 million for the three and six months ended June 30, 2015, respectively.

The Company calculated the fair value of the warrants using the Monte Carlo Simulation as of June 30, 2016 and December 31, 2015, using the following assumptions:



	June 30, 2016			December 31, 2015
Fair value of common stock	$	17.81		$	19.29
Remaining life of the warrants (in years)	1.6 - 3.5 years			2.1 - 4.0 years
Risk-free interest rate	.53-.79%			1.11-1.59%
Expected volatility	65-85%			75-85%
Dividend yield	—		%	—		%

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

FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Financial Instruments and Fair Value

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

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

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

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

The valuation techniques used to measure the fair value of the Company’s marketable securities and all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. Based on the fair value hierarchy, the Company classified marketable securities within Level 2.

In estimating the fair value of the Company’s derivative liabilities, the Company used the Monte Carlo Simulation as of June 30, 2016 and December 31, 2015. 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, and accounts payable, due to their short term nature. We estimate the fair value of convertible debt is $67.3 million, considering factors such as market conditions, prepayment and make-whole provisions, variability in pricing from multiple lenders and term of debt.

The following table presents the Company’s assets and liabilities, measured and recognized at fair value on a recurring basis, classified under the appropriate level of the fair value hierarchy as of June 30, 2016 (in thousands):



	As of June 30, 2016
	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	$	200,359	$	—	$	200,359	$	—

Liabilities:
Derivative liability related to warrants	$	33,360	$	—	$	—	$	33,360
Business combination-related contingent consideration	$	86,377	$	—	$	—	$	86,377

The following table presents the Company’s asset and liabilities, 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 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

The following table sets forth a summary of changes in the estimated fair value of the Company’s derivative financial instruments-warrants liability for the six months ended June 30, 2016 (in thousands):



	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2016	$	38,810
Reclassification of derivative liability to equity upon exercise of warrants	(173		)
Change in estimated fair value of liability classified warrants	(5,277		)
Balance at June 30, 2016	$	33,360

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. See Note 7 for further discussion of derivative financial instruments relating to warrants.

The following table sets forth a summary of changes in the estimated fair value of the Company's business combination-related contingent consideration for the six months ended June 30, 2016 (in thousands):



	Fair Value Measurements of Acquisition-Related Contingent Consideration (Level 3)
Balance at January 1, 2016	$	59,021
Increase from revaluation of contingent consideration	5,485
Acquisition of L-UDCA	25,000
Contractual payments	(1,510		)
Contractual payments accrued at June 30, 2016	(1,677		)
Foreign currency impact	58
Balance at June 30, 2016	$	86,377

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

During the three and six month periods ended June 30, 2016, the Company incurred charges of $2.8 million and $5.5 million, respectively, in operating expenses on the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the revaluation of the contingent consideration liabilities. For the three month period ended June 30, 2016, $1.5 million and $1.3 million are related to the increase in contingent consideration liabilities for the products Chenodaland Cholbam, respectively. For the six month period ended June 30, 2016, $2.9 million and $2.6 million are related to the increase in contingent consideration liabilities for the products Chenodaland Cholbam, respectively. In each case, the value increased due to changes in the estimated timing of payments. During the three and six month periods ended June 30, 2015, the Company incurred charges of $0.1 million, in operating expenses on the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss).

- Definition

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

+ References + Details

INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

As of June 30, 2016, the net book value of amortizable intangible assets was approximately $184.4 million.

The following table sets forth amortizable intangible assets as of June 30, 2016 and December 31, 2015 (in thousands):



	June 30, 2016			December 31, 2015
Finite-lived intangible assets	$	209,787		$	179,096
Less: accumulated amortization	(25,355		)	(17,560		)
Net carrying value	$	184,432		$	161,536

The following table summarizes amortization expense for the three and six months ended June 30, 2016 and 2015 (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Research and development	$	81	$	193	$	163	$	414
Selling, general and administrative	3,829		3,614		7,632		5,128
Total amortization expense	$	3,910	$	3,807	$	7,795	$	5,542

NOTES PAYABLE	6 Months Ended
NOTES PAYABLE	Jun. 30, 2016
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTES PAYABLE Convertible Notes Payable On May 29, 2014, the Company entered into a Note Purchase Agreement relating to a private placement by the Company of $46.0 million aggregate principal senior convertible notes due in 2019 (the “Notes”) which are convertible into shares of the Company’s common stock at an initial conversion price of $17.41 per share. The conversion price is subject to customary anti-dilution protection. The Notes bear interest at a rate of 4.5% per annum, payable semiannually in arrears on May 15 and November 15 of each year. The Notes mature on May 30, 2019 unless earlier converted or repurchased in accordance with the terms, and there are no contractual payments due prior to that date. At June 30, 2016 and December 31, 2015, the aggregate carrying value of the Notes was $44.1 million and $43.8 million, respectively. As of March 31, 2016, the Company retrospectively adopted FASB ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This ASU amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of as a deferred charge. At June 30, 2016 and December 31, 2015 the debt issuance costs related to the Notes was $0.1 million.

ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2016

Payables and Accruals [Abstract]

ACCRUED EXPENSES

Accrued expenses at June 30, 2016 and December 31, 2015 consisted of the following (in thousands):



	June 30, 2016		December 31, 2015
Government rebates payable	$	3,826	$	3,158
Compensation related costs	4,765		7,143
Accrued royalties and contingent consideration	5,069		4,688
Research and development	5,725		4,281
Selling, general and administrative	1,619		2,704
Miscellaneous accrued	2,155		1,846
	$	23,159	$	23,820

EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

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

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



	Three Months Ended
	June 30, 2016							June 30, 2015
	Shares	Net Income			EPS			Shares	Net Income			EPS
Basic Earnings per Share	36,683,429	$	(13,403	)	$	(0.37	)	34,957,134	$	(25,527	)	$	(0.73	)
Dilutive earnings per share	36,683,429	$	(13,403	)	$	(0.37	)	34,957,134	$	(25,527	)	$	(0.73	)



	Six Months Ended
	June 30, 2016							June 30, 2015
	Shares	Net Income			EPS			Shares	Net Income		EPS
Basic net earnings (loss) per share	36,601,807	$	(2,187	)	$	(0.06	)	31,079,053	$	14,128	$	0.45
Dilutive shares related to derivative warrants	1,461,478	—						—	—
Change in fair value of derivative instruments	—	(5,277		)				—	—
Convertible debt	—	—						2,642,160	1,035
Restricted stock	—	—						292,027	—
Stock options	—	—						814,165	—
Dilutive net earnings (loss) per share	38,063,285	$	(7,464	)	$	(0.20	)	34,827,405	$	15,163	$	0.44

For the three and six months ended June 30, 2016 and 2015, the following shares were excluded because they were anti-dilutive (share amounts in millions):



	Three Months Ended		Six Months Ended
	June 30, 2016	June 30, 2015	June 30, 2016	June 30, 2015
Restricted stock units	0.3	—	0.3	—
Convertible debt	2.6	2.6	2.6	—
Options	6.1	2.6	5.9	1.2
Warrants	2.7	—	—	3.3
Total anti-dilutive shares	11.7	5.2	8.8	4.5

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Leases and Sublease Agreements

California Offices

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 this office space for approximately $540,000 per annum plus escalations. The lease commenced 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 $0.2 million 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. The Company's leases for the two suites which encompass this facility expire on February 28, 2017 and June 30, 2017.

Massachusetts Office

On July 31, 2014, the Company entered into a sublease agreement for new office space located in Cambridge, Massachusetts. The Company rents this 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. This Company rents this office space for approximately $550,000 per annum in rent plus escalations.

Research Collaboration and Licensing Agreements

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

Contractual Commitments

The following table summarizes our principal contractual commitments, excluding open orders that support normal operations, as of June 30, 2016 (in thousands):



	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating leases	$	2,140	$	1,054	$	1,086	$	—	$	—
Note payable, including contractual interest	52,037		2,070		49,967		—		—
Sales support services	3,262		416		833		2,013		—
Product supply contracts	1,515		1,265		250		—		—
Purchase order commitments	444		219		225		—		—
	$	59,398	$	5,024	$	52,361	$	2,013	$	—

Legal Proceedings

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. Mr. Shkreli defaulted on the judgment and the Company and the Plaintiffs took steps to collect it. The Company did not record anything related to the judgment on its financial statements for 2015. Any related amounts received will be recorded against equity when collected. On February 18, 2016, Mr. Shkreli sought leave from the Court to move for a protective order to block the enforcement of the judgment. The Company and Plaintiffs’ counsel also sought leave to file motions in connection with their enforcement efforts. On March 16, 2016, the Court granted the parties leave to file their respective motions and ordered that all enforcement efforts be stayed for thirty days. On May 24, 2016, Plaintiffs’ counsel informed the Court that the parties had entered into an agreement under which Plaintiffs’ counsel were to be paid in full, and that pursuant to that agreement they had no further stake in the matter and would not participate in future case events. Under that agreement, the Company paid $8,249 to Plaintiffs’ counsel to compensate them for certain disbursements which Plaintiffs’ counsel had made in connection with their efforts to enforce the judgment, and the Company also assumed control over all restraining notices and subpoenas previously served by Plaintiffs’ counsel. At a status conference on June 10, 2016, the Court ordered Mr. Shkreli and the Company to keep the Court updated on the progress of their settlement negotiations. To date, none of the parties have filed any of the motions which they previously sought leave to file. The resolution of this matter is tied to the resolution of the United States Internal Revenue Service (“IRS”) tax levy discussed below.

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. On June 10, 2016, the Court approved the settlement, directed implementation of the settlement, and ordered the action dismissed with prejudice. The settlement amount has been paid by the Company’s insurer.

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. A superseding indictment reflecting additional charges was filed on June 3, 2016. 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. In connection with these proceedings, Mr. Shkreli, as well as a number of other current and former directors, officers and employees, have sought advancement of their legal fees from the Company. Mr. Shkreli, in particular, claims that the Company owes him in excess of $5 million in legal fees that he has incurred defending these actions. The Company disputes its obligation to pay the amount in full and has been negotiating with Mr. Shkreli over the amount to be paid. The resolution of this matter is tied to the resolution of the IRS tax levy discussed below. If the parties cannot agree on a resolution, the amount due will be addressed through litigation.

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. On April 22, 2016, the arbitration panel granted the parties’ request for a stay of the proceedings pending settlement discussions. In connection with these proceedings, Mr. Shkreli has sought advancement of his legal fees from the Company relating to his defense of the Company’s claims against him. Mr. Shkreli claims that he has to date incurred in excess of $2.8 million in fees, including fees incurred in negotiating with the Company over advancement. The Company disputes its obligation to pay the amount in full and has been negotiating with Mr. Shkreli over the amount to be paid. The resolution of this matter is tied to the resolution of the IRS tax levy discussed below. If the parties cannot agree on a resolution, the amount due will be addressed through litigation.

In July 2016, the Company received a demand for payment from the IRS regarding a levy issued by the IRS in March 2016 with respect to unpaid federal income taxes personally owed by Mr. Shkreli for the year ended December 31, 2014, for approximately $4.0 million. The levy sought to collect any property or rights to property (such as money, credits and bank deposits) in the Company’s possession that belong to or are owed to Mr. Shkreli. The Company believes that it is uncertain, as a matter of law, whether and how the tax levy applies to the Company’s advancement obligations to Mr. Shkreli. As indicated above, the amounts of the Company’s advancement obligations to Mr. Shkreli are subject to dispute. The Company intends to seek a private letter ruling from the IRS for a formal decision with respect to the applicability of the tax levy.

The Company believes it is probable that it will incur some amount of loss related to Mr. Shkreli’s claims for advancement (as described above), either to the IRS or to Mr. Shkreli. However, there is significant uncertainty as to the outcome of this matter such that the amount of the loss is not estimable at the present time. Prior to its receipt of the IRS tax levy, the Company and Mr. Shkreli had negotiated a potential resolution of this matter. However, the existence of the tax levy has prevented the parties from pursuing that resolution and made uncertain the amount of any obligation that the company may actually incur to the IRS or to Mr. Shkreli, as the case may be. Accordingly, as of June 30, 2016 no accruals for loss contingencies had been recorded.

From time to time the Company is involved in legal proceedings arising in the ordinary course of business. The Company believes there is no litigation pending that could have, individually or in the aggregate, a material adverse effect on its results of operations or financial condition.

SHARE BASED COMPENSATION

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

SHARE BASED COMPENSATION

Restricted Shares

Service Based Restricted Stock Awards

The following table summarizes the Company’s restricted stock activity during the six months ended June 30, 2016:



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value
Outstanding December 31, 2015	429,666		$	20.38
Granted	130,000		16.01
Vested	(77,666	)	16.63
Forfeited/canceled	(34,335	)	12.07
Outstanding June 30, 2016	447,665		$	20.40

At June 30, 2016, unamortized stock compensation for restricted stock awards was $6.4 million, with a weighted-average recognition period of 1.2 years.

Performance Based Restricted Stock Awards

During the three and six months ended June 30, 2016, the Company issued 70,000 performance based restricted stock awards.

Stock Options

The following table summarizes stock option activity during the six months ended June 30, 2016:



	Shares Underlying Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2015	5,665,584		$	17.05	8.75	$	31,542
Granted	1,381,750		16.09
Exercised	(166,611	)	9.43
Forfeited/canceled	(157,741	)	20.58
Outstanding at June 30, 2016	6,722,982		$	16.96	8.21	$	26,854

At June 30, 2016, unamortized stock compensation for stock options was $46.8 million, with a weighted-average recognition period of 2.0 years.

At June 30, 2016, outstanding options to purchase 2.9 million shares of common stock were exercisable with a weighted-average exercise price per share of $13.84.

Share Based Compensation

The following table sets forth total non-cash stock-based compensation by operating statement classification for the three and six months ended June 30, 2016 and 2015 (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Research and development	$	2,641	$	1,749	$	5,127	$	3,968
Selling, general & administrative	4,852		3,245		9,159		6,599
Total	$	7,493	$	4,994	$	14,286	$	10,567

Exercise of Warrants

During the three and six months ended June 30, 2016, the Company issued 15,000 shares of common stock upon the exercise of warrants for cash received by the Company in the amount of $0.1 million. The Company reclassified $0.2 million derivative liability to 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 $0.1 million was recorded as other expense in the consolidated financial statements of the Company.

At June 30, 2016 and December 31, 2015, warrants to purchase 2,650,548 and 2,665,548 shares of common stock, respectively, were outstanding.

INVENTORY

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

INVENTORY

Inventory, net of reserves, consisted of the following at June 30, 2016 and December 31, 2015 (in thousands):



	June 30, 2016		December 31, 2015
Raw materials	$	232	$	289
Finished goods	2,481		2,247
Total inventory	$	2,713	$	2,536

The inventory reserve was $0 and $0.3 million at June 30, 2016 and December 31, 2015, respectively.

RECEIVABLES	6 Months Ended
RECEIVABLES	Jun. 30, 2016
Receivables [Abstract]
RECEIVABLES	RECEIVABLES Accounts Receivables Accounts receivable, net of reserves for prompt pay discounts and doubtful accounts, was $16.6 million and $12.5 million at June 30, 2016 and December 31, 2015, respectively. The total reserves for both periods were immaterial. Notes Receivables Notes receivable arose from the Company's sale of a Pediatric PRV in July 2015 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 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 receivable totaled $0.6 million and $1.3 million for the three and six month periods ending June 30, 2016, respectively, and is recorded in interest expense, net, in the Consolidated Statements of Operations and Comprehensive Income (Loss). The present value of the current and long-term notes receivable are $47.5 million and $46.2 million, respectively, and $46.8 million and $45.6 million, respectively, as of June 30, 2016 and December 31, 2015. The Company noted no indications for impairment as of June 30, 2016.

SUBSEQUENT EVENT	6 Months Ended
SUBSEQUENT EVENT	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT Maturity of Note Receivable On July 1, 2016 the Company received $47.5 million from Sanofi. This is the second of three payments related to the PRV sale agreement whereby the Company transfered the PRV To Sanofi in 2015. See Note 16 for further discussion. Cholic Acid territory transfer for Australia On July 15, 2016 the Company signed a binding memorandum of understanding ("MOU") with Asklepion in which the Company agreed to transfer to Asklepion the Cholic Acid Product Data Assets and Cholic Acid Know-How solely in the territory of Australia. Under the MOU, Asklepion will have the right to license its territory rights but will remain responsible for performance by its licensees. As consideration for the transfer, Asklepion will pay a royalty to the Company based on net sales within the territory. San Diego - New Lease On July 26, 2016, the Company entered into a Lease Agreement (the "Lease") with Kilroy Realty, LP, a Delaware limited partnership, whereby it leased approximately 23,107 square feet of space located at 3721 Valley Centre Drive, San Diego, that will house our corporate headquarters. The Lease has a term of seven years and seven months, commencing on December 20, 2016; an annual base rent of approximately $1.1 million per annum plus escalations; a five year option renewal of the Lease at market rent; and additional rent for the proportionate share of the expense for the operation, maintenance and repair of the common areas.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with GAAP. All intercompany accounts and transactions have been eliminated in consolidation.
Adoption of New Accounting Standards/Recently Issued Accounting Pronouncements	Adoption of New Accounting Standards In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This ASU amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of as a deferred charge. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2015. The Company adopted the new guidance effective March 31, 2016. The adoption of the new guidance did not have a material impact on the Company’s financial statements. See Note 10 for further discussion. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred taxes. This ASU 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. This ASU 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 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. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption. In May 2014, the FASB issued 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 this ASU 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 ASU is 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 February 2016, the FASB issued ASU 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, if any, the adoption of this standard will have on our consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-09, Compensation —Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. That is, off balance sheet accounting for net operating losses stemming from excess tax benefits would no longer be required and instead such net operating losses would be recognized when they arise. Existing net operating losses that are currently tracked off balance sheet would be recognized, net of a valuation allowance if required, through an adjustment to opening retained earnings in the period of adoption. Entities will no longer need to maintain and track an “APIC pool.” The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. In addition, the ASU elevates the statutory tax withholding threshold to qualify for equity classification up to the maximum statutory tax rates in the applicable jurisdiction(s). The ASU also clarifies that cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The ASU provides an optional accounting policy election (with limited exceptions), to be applied on an entity-wide basis, to either estimate the number of awards that are expected to vest (consistent with GAAP) or account for forfeitures when they occur. The ASU is effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Certain detailed transition provisions apply if an entity elects to early adopt. We are currently evaluating the impact, if any, the adoption of this standard will have on our consolidated financial statements. In June 2016, the FASB issued No. 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Topic 326 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect it's current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company currently holds available for sale debt securities that are effected by this ASU and is currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

BUSINESS COMBINATION (Tables)

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Schedule of purchase price allocation

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



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

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

The purchase price allocation of $25.5 million as of the acquisition completion date of June 16, 2016 is as follows (in thousands):



Cash paid upon consummation	$	500
Present value of contingent consideration	25,000
Total purchase price	$	25,500

Fair Value of Assets Acquired and Liabilities Assumed
Acquired product rights: L-UDCA (intangible asset)	$	25,500
Total purchase price	$	25,500

MARKETABLE SECURITIES (Tables)

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of marketable securities

Marketable securities consisted of the following (in thousands):



	June 30, 2016		December 31, 2015
Marketable other than equity securities:
Commercial paper	$	40,823	$	31,864
Corporate debt securities	130,023		125,547
Securities of government sponsored entities	29,513		34,388
Total Marketable Securities:	$	200,359	$	191,799

Schedule of available for sale securities

The following is a summary of short-term marketable securities classified as available-for-sale as of June 30, 2016 (in thousands):



	Remaining Contractual Maturity (in years)	Amortized Cost		Unrealized Gains		Unrealized Losses			Aggregate Estimated Fair Value
Marketable other than equity securities:
Commercial paper	Less than 1	$	40,841	$	2	$	(20	)	$	40,823
Corporate debt securities	Less than 1	92,226		26		(25		)	92,227
Securities of government-sponsored entities	Less than 1	5,000		—		—			5,000
Total maturity less than 1 year		138,067		28		(45		)	138,050
Corporate debt securities	1 to 2	37,718		103		(25		)	37,796
Securities of government-sponsored entities	1 to 2	24,511		3		(1		)	24,513
Total maturity 1 to 2 years		62,229		106		(26		)	62,309
Total available-for-sale securities		$	200,296	$	134	$	(71	)	$	200,359

The following is a summary of short-term marketable securities classified as available-for-sale as of December 31, 2015 (in thousands):



	Remaining 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	69,859		—		(164		)	69,695
Total maturity less than 1 year		101,758		6		(205		)	101,559
Corporate debt securities	1 to 2	56,162		—		(310		)	55,852
Securities of government-sponsored entities	1 to 2	34,522		2		(136		)	34,388
Total maturity 1 to 2 years		90,684		2		(446		)	90,240
Total available-for-sale securities		$	192,442	$	8	$	(651	)	$	191,799

- 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)

6 Months Ended

Jun. 30, 2016

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 as of June 30, 2016 and December 31, 2015, using the following assumptions:



	June 30, 2016			December 31, 2015
Fair value of common stock	$	17.81		$	19.29
Remaining life of the warrants (in years)	1.6 - 3.5 years			2.1 - 4.0 years
Risk-free interest rate	.53-.79%			1.11-1.59%
Expected volatility	65-85%			75-85%
Dividend yield	—		%	—		%

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of fair value on a recurring basis



	As of June 30, 2016
	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	$	200,359	$	—	$	200,359	$	—

Liabilities:
Derivative liability related to warrants	$	33,360	$	—	$	—	$	33,360
Business combination-related contingent consideration	$	86,377	$	—	$	—	$	86,377



	As of 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

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



	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2016	$	38,810
Reclassification of derivative liability to equity upon exercise of warrants	(173		)
Change in estimated fair value of liability classified warrants	(5,277		)
Balance at June 30, 2016	$	33,360

Schedule of summary of changes in estimated acquisition related contingent consideration



	Fair Value Measurements of Acquisition-Related Contingent Consideration (Level 3)
Balance at January 1, 2016	$	59,021
Increase from revaluation of contingent consideration	5,485
Acquisition of L-UDCA	25,000
Contractual payments	(1,510		)
Contractual payments accrued at June 30, 2016	(1,677		)
Foreign currency impact	58
Balance at June 30, 2016	$	86,377

INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived amortizable intangible assets

The following table sets forth amortizable intangible assets as of June 30, 2016 and December 31, 2015 (in thousands):



	June 30, 2016			December 31, 2015
Finite-lived intangible assets	$	209,787		$	179,096
Less: accumulated amortization	(25,355		)	(17,560		)
Net carrying value	$	184,432		$	161,536

Schedule of amortization expense

The following table summarizes amortization expense for the three and six months ended June 30, 2016 and 2015 (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Research and development	$	81	$	193	$	163	$	414
Selling, general and administrative	3,829		3,614		7,632		5,128
Total amortization expense	$	3,910	$	3,807	$	7,795	$	5,542

ACCRUED EXPENSES (Tables)

6 Months Ended

Jun. 30, 2016

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses at June 30, 2016 and December 31, 2015 consisted of the following (in thousands):



	June 30, 2016		December 31, 2015
Government rebates payable	$	3,826	$	3,158
Compensation related costs	4,765		7,143
Accrued royalties and contingent consideration	5,069		4,688
Research and development	5,725		4,281
Selling, general and administrative	1,619		2,704
Miscellaneous accrued	2,155		1,846
	$	23,159	$	23,820

EARNINGS (LOSS) PER SHARE (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

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

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



	Three Months Ended
	June 30, 2016							June 30, 2015
	Shares	Net Income			EPS			Shares	Net Income			EPS
Basic Earnings per Share	36,683,429	$	(13,403	)	$	(0.37	)	34,957,134	$	(25,527	)	$	(0.73	)
Dilutive earnings per share	36,683,429	$	(13,403	)	$	(0.37	)	34,957,134	$	(25,527	)	$	(0.73	)



	Six Months Ended
	June 30, 2016							June 30, 2015
	Shares	Net Income			EPS			Shares	Net Income		EPS
Basic net earnings (loss) per share	36,601,807	$	(2,187	)	$	(0.06	)	31,079,053	$	14,128	$	0.45
Dilutive shares related to derivative warrants	1,461,478	—						—	—
Change in fair value of derivative instruments	—	(5,277		)				—	—
Convertible debt	—	—						2,642,160	1,035
Restricted stock	—	—						292,027	—
Stock options	—	—						814,165	—
Dilutive net earnings (loss) per share	38,063,285	$	(7,464	)	$	(0.20	)	34,827,405	$	15,163	$	0.44

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

For the three and six months ended June 30, 2016 and 2015, the following shares were excluded because they were anti-dilutive (share amounts in millions):



	Three Months Ended		Six Months Ended
	June 30, 2016	June 30, 2015	June 30, 2016	June 30, 2015
Restricted stock units	0.3	—	0.3	—
Convertible debt	2.6	2.6	2.6	—
Options	6.1	2.6	5.9	1.2
Warrants	2.7	—	—	3.3
Total anti-dilutive shares	11.7	5.2	8.8	4.5

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of principal contractual commitments

The following table summarizes our principal contractual commitments, excluding open orders that support normal operations, as of June 30, 2016 (in thousands):



	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating leases	$	2,140	$	1,054	$	1,086	$	—	$	—
Note payable, including contractual interest	52,037		2,070		49,967		—		—
Sales support services	3,262		416		833		2,013		—
Product supply contracts	1,515		1,265		250		—		—
Purchase order commitments	444		219		225		—		—
	$	59,398	$	5,024	$	52,361	$	2,013	$	—

SHARE BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Schedule of restricted stock activity

The following table summarizes the Company’s restricted stock activity during the six months ended June 30, 2016:



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value
Outstanding December 31, 2015	429,666		$	20.38
Granted	130,000		16.01
Vested	(77,666	)	16.63
Forfeited/canceled	(34,335	)	12.07
Outstanding June 30, 2016	447,665		$	20.40

Schedule of stock option issuances and balances outstanding

The following table summarizes stock option activity during the six months ended June 30, 2016:



	Shares Underlying Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2015	5,665,584		$	17.05	8.75	$	31,542
Granted	1,381,750		16.09
Exercised	(166,611	)	9.43
Forfeited/canceled	(157,741	)	20.58
Outstanding at June 30, 2016	6,722,982		$	16.96	8.21	$	26,854

Schedule of Share based compensation expenses

The following table sets forth total non-cash stock-based compensation by operating statement classification for the three and six months ended June 30, 2016 and 2015 (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Research and development	$	2,641	$	1,749	$	5,127	$	3,968
Selling, general & administrative	4,852		3,245		9,159		6,599
Total	$	7,493	$	4,994	$	14,286	$	10,567

INVENTORY (Tables)

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory, net of reserves, consisted of the following at June 30, 2016 and December 31, 2015 (in thousands):



	June 30, 2016		December 31, 2015
Raw materials	$	232	$	289
Finished goods	2,481		2,247
Total inventory	$	2,713	$	2,536

DESCRIPTION OF BUSINESS (Details) patient in Thousands	6 Months Ended
DESCRIPTION OF BUSINESS (Details) patient in Thousands	Jun. 30, 2016 Employee patient
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of employees \| Employee	130
Estimated number of FSGS patients \| patient	40

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax benefit (expense)	$ (7,392)	$ 15	$ (12,462)	$ (40,006)
Effective income tax rate percentage	35.60%	0.00%	85.10%	154.60%
Unrecognized tax benefits	$ 6,700		$ 6,700		$ 3,300
Net increase in unrecognized tax benefits	3,400
Unrecognized tax benefit that would affect tax rate if recognized	$ 5,200		$ 5,200

BUSINESS COMBINATION (Details) - USD ($) $ in Thousands				6 Months Ended		12 Months Ended
BUSINESS COMBINATION (Details) - USD ($) $ in Thousands	Jun. 16, 2016	Mar. 31, 2015	Jan. 12, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Business Acquisition [Line Items]
Acquisition-related contingent consideration				$ 72,300		$ 45,267
Liquid Ursodeoxycholic Acid (L-UDCA) [Member]
Business Acquisition [Line Items]
Intangible assets acquired	$ 25,500
Discount rate percentage	12.00%
Liquid Ursodeoxycholic Acid (L-UDCA) [Member] \| Product rights
Business Acquisition [Line Items]
Assets useful life (in years)	17 years
Asklepion Pharmaceuticals, LLC
Business Acquisition [Line Items]
Cash payment		$ 28,400		$ 644	$ 0
Common stock shares issued (in shares)		661,279
Value of common stock		$ 15,844
Acquisition-related contingent consideration		39,100
Fair value of Pediatric Priority Review Voucher		96,250
Intangible assets acquired		83,200
Discount rate percentage						19.00%
Contingent consideration agreement, high amount						$ 16,300
Net present value of service fees						2,900
Total payments of service fees						$ 4,000
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 \| 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
Asklepion Pharmaceuticals, LLC \| Product rights
Business Acquisition [Line Items]
Assets useful life (in years)		10 years
Asklepion Pharmaceuticals, LLC \| Product rights \| United States
Business Acquisition [Line Items]
Intangible assets acquired		$ 75,900
Asklepion Pharmaceuticals, LLC \| Product rights \| International
Business Acquisition [Line Items]
Intangible assets acquired		$ 7,300

BUSINESS COMBINATION - Purchase Price Allocation (Details) - USD ($) $ in Thousands			6 Months Ended
	Jun. 16, 2016	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Acquisition [Line Items]
Cash paid upon consummation			$ 500	$ 33,430
Liquid Ursodeoxycholic Acid (L-UDCA) [Member]
Business Acquisition [Line Items]
Cash paid upon consummation	$ 500
Present value of contingent consideration and service fees	25,000
Total Purchase Price	25,500
Fair Value of Assets Acquired and Liabilities Assumed
Acquired product rights- (Intangible Asset)	25,500
Total Allocation of Purchase Price	$ 25,500
Asklepion Pharmaceuticals, LLC
Business Acquisition [Line Items]
Common stock shares issued (in shares)		661,279
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- (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

MARKETABLE SECURITIES - Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	$ 200,359	$ 191,799
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	40,823	31,864
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	130,023	125,547
Securities of government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	$ 29,513	$ 34,388

MARKETABLE SECURITIES - Available for Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 200,296	$ 192,442
Unrealized Gains	134	8
Unrealized Losses	(71)	(651)
Aggregate Estimated Fair Value	200,359	191,799
Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	138,067	101,758
Unrealized Gains	28	6
Unrealized Losses	(45)	(205)
Aggregate Estimated Fair Value	138,050	101,559
1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	62,229	90,684
Unrealized Gains	106	2
Unrealized Losses	(26)	(446)
Aggregate Estimated Fair Value	62,309	90,240
Commercial paper \| Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	40,841	31,899
Unrealized Gains	2	6
Unrealized Losses	(20)	(41)
Aggregate Estimated Fair Value	40,823	31,864
Corporate debt securities \| Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	92,226	69,859
Unrealized Gains	26	0
Unrealized Losses	(25)	(164)
Aggregate Estimated Fair Value	92,227	69,695
Corporate debt securities \| 1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	37,718	56,162
Unrealized Gains	103	0
Unrealized Losses	(25)	(310)
Aggregate Estimated Fair Value	37,796	55,852
Securities of government sponsored entities \| Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,000
Unrealized Gains	0
Unrealized Losses	0
Aggregate Estimated Fair Value	5,000
Securities of government sponsored entities \| 1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	24,511	34,522
Unrealized Gains	3	2
Unrealized Losses	(1)	(136)
Aggregate Estimated Fair Value	$ 24,513	$ 34,388

MARKETABLE SECURITIES - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Proceeds from the sale/maturity of marketable securities	$ 59,874	$ 282
Purchase of marketable securities	$ 68,517	$ 0

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Warrant $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) tranche	Jun. 30, 2015 USD ($)
Derivative [Line Items]
Number of tranches \| tranche			5
Recorded gain on change in estimated fair value of warrants	$ 5.3		$ 5.3
Recorded loss on change in estimated fair value of warrants	$ 9.1	$ 29.4		$ 66.2

DERIVATIVE FINANCIAL INSTRUMENTS - Valuation Assumptions (Details) - Warrant - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Fair value of common stock (in dollars per share)	$ 17.81	$ 19.29
Dividend yield	0.00%	0.00%
Minimum
Derivative [Line Items]
Remaining life of the warrants (in years)	1 year 7 months 6 days	2 years 1 month 6 days
Risk-free interest rate	0.53%	1.11%
Expected volatility	65.00%	75.00%
Maximum
Derivative [Line Items]
Remaining life of the warrants (in years)	3 years 6 months	4 years
Risk-free interest rate	0.79%	1.59%
Expected volatility	85.00%	85.00%

FAIR VALUE MEASUREMENTS - Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Asset:
Marketable securities, available-for-sale	$ 200,359	$ 191,799
Recurring basis
Asset:
Marketable securities, available-for-sale	200,359	191,799
Liabilities:
Derivative liability related to warrants	33,360	38,810
Business combination-related contingent consideration	86,377	59,021
Recurring basis \| Significant other observable inputs (Level 2)
Asset:
Marketable securities, available-for-sale	200,359	191,799
Recurring basis \| Significant unobservable inputs (Level 3)
Liabilities:
Derivative liability related to warrants	33,360	38,810
Business combination-related contingent consideration	$ 86,377	$ 59,021

FAIR VALUE MEASUREMENTS - Warrants Liability (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Reclassification of derivative liability to equity upon exercise of warrants	$ (200)
Warrants liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	38,810
Reclassification of derivative liability to equity upon exercise of warrants	(173)
Change in estimated fair value of liability classified warrants	(5,277)
Ending Balance	$ 33,360

FAIR VALUE MEASUREMENTS - Acquisition-related Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Combination, Acquisition Related Contingent Consideration [Roll Forward]
Increase from revaluation of contingent consideration	$ 2,789	$ 120	$ 5,485	$ 120
Recurring basis
Business Combination, Acquisition Related Contingent Consideration [Roll Forward]
Beginning Balance			59,021
Ending Balance	86,377		86,377
Recurring basis \| Level 3
Business Combination, Acquisition Related Contingent Consideration [Roll Forward]
Beginning Balance			59,021
Increase from revaluation of contingent consideration			5,485
Acquisition of L-UDCA			25,000
Contractual payments			(1,510)
Contractual payments accrued at June 30, 2016			(1,677)
Foreign currency impact			58
Ending Balance	$ 86,377		$ 86,377

FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Acquisition [Line Items]
Fair value of convertible debt	$ 67,300		$ 67,300
Increase from revaluation of contingent consideration	2,789	$ 120	5,485	$ 120
Product Rights Chenodal
Business Acquisition [Line Items]
Increase from revaluation of contingent consideration	1,500		2,900
Product Rights Cholbam
Business Acquisition [Line Items]
Increase from revaluation of contingent consideration	$ 1,300		$ 2,600

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Net book value of amortizable intangible assets	$ 184,432	$ 161,536

INTANGIBLE ASSETS - Amortizable Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets	$ 209,787	$ 179,096
Less: accumulated amortization	(25,355)	(17,560)
Net carrying value	$ 184,432	$ 161,536

INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 3,910	$ 3,807	$ 7,795	$ 5,542
Research and development
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	81	193	163	414
Selling, general and administrative
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 3,829	$ 3,614	$ 7,632	$ 5,128

NOTES PAYABLE (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	May 29, 2014
Debt Instrument [Line Items]
Convertible Debt	$ 44,092	$ 43,766
Note Purchase Agreement \| Senior convertible notes due 2019
Debt Instrument [Line Items]
Credit Agreement amount			$ 46,000
Initial conversion price (in dollars per share)			$ 17.41
Interest rate percentage			4.50%
Debt issuance costs	$ 100	$ 100

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Government rebates payable	$ 3,826	$ 3,158
Compensation related costs	4,765	7,143
Accrued royalties and contingent consideration	5,069	4,688
Research and development	5,725	4,281
Selling, general and administrative	1,619	2,704
Miscellaneous accrued	2,155	1,846
Accrued expenses	$ 23,159	$ 23,820

EARNINGS (LOSS) PER SHARE - EPS Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Shares
Basic net earnings (loss) per Share (in shares)	36,683,429	34,957,134	36,601,807	31,079,053
Dilutive shares related to derivative warrants (in shares)			1,461,478
Change in fair value of derivative instruments (in shares)			0	0
Convertible Debt (in shares)			0	2,642,160
Dilutive net earnings (loss) per share (in shares)	36,683,429	34,957,134	38,063,285	34,827,405
Net Income
Basic net earnings (loss) per Share	$ (13,403)	$ (25,527)	$ (2,187)	$ 14,128
Change in fair value of derivative instruments				0
Convertible debt			0	1,035
Dilutive net earnings (loss) per share	$ (13,403)	$ (25,527)	$ (7,464)	$ 15,163
Basic Earnings per Share, EPS (in dollars per share)	$ (0.37)	$ (0.73)	$ (0.06)	$ 0.45
Diluted Earnings per Share, EPS (in dollars per share)	$ (0.37)	$ (0.73)	$ (0.20)	$ 0.44
Restricted stock units
Shares
Dilutive securities (in shares)			0	292,027
Net Income
Dilutive securities			$ 0	$ 0
Stock Options
Shares
Dilutive securities (in shares)			0	814,165
Net Income
Dilutive securities			$ 0	$ 0
Warrant
Shares
Dilutive shares related to derivative warrants (in shares)				0
Net Income
Dilutive securities			0	$ 0
Change in fair value of derivative instruments			$ (5,277)

EARNINGS (LOSS) PER SHARE - Antidilutive Shares (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	11.7	5.2	8.8	4.5
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	0.3	0.0	0.3	0.0
Convertible debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	2.6	2.6	2.6	0.0
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	6.1	2.6	5.9	1.2
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	2.7	0.0	0.0	3.3

COMMITMENTS AND CONTINGENCIES - Contractual Commitments (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Operating leases
Total	$ 2,140
Less than 1 year	1,054
1-3 years	1,086
3-5 years	0
More than 5 years	0
Purchase order commitments
Total	444
Less than 1 year	219
1-3 years	225
3-5 years	0
More than 5 years	0
Total
Total	59,398
Less than 1 year	5,024
1-3 years	52,361
3-5 years	2,013
More than 5 years	0
Note payable, including contractual interest
Other commitments
Total	52,037
Less than 1 year	2,070
1-3 years	49,967
3-5 years	0
More than 5 years	0
Sales support services
Other commitments
Total	3,262
Less than 1 year	416
1-3 years	833
3-5 years	2,013
More than 5 years	0
Product supply contracts
Other commitments
Total	1,515
Less than 1 year	1,265
1-3 years	250
3-5 years	0
More than 5 years	$ 0

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($)							1 Months Ended	6 Months Ended	12 Months Ended
	May 24, 2016	Apr. 22, 2016	Dec. 30, 2015	Sep. 19, 2014	Sep. 08, 2014	Jul. 31, 2014	Jul. 31, 2016	Jun. 30, 2016	Dec. 31, 2014
Donoghue v. Retrophin, Inc. \| IRS \| Levy Sought on Unpaid Income Taxes by Plaintiff \| Subsequent Event
Commitment And Contingency [Line Items]
Damages sought							$ 4,000,000
Donoghue v. Retrophin, Inc. \| Martin Shkreli
Commitment And Contingency [Line Items]
Litigation settlement				$ 2,025,000
Amount paid to plaintiff's counsel	$ 8,249
Donoghue v. Retrophin, Inc. \| Martin Shkreli \| Legal Fees
Commitment And Contingency [Line Items]
Damages sought		$ 3,000,000						$ 5,000,000
Donoghue v. Retrophin, Inc. \| Martin Shkreli \| Plaintiffs
Commitment And Contingency [Line Items]
Litigation settlement				$ 625,000
Lease Agreement \| California
Commitment And Contingency [Line Items]
Rent expense					$ 540,000
Loss on leased assets									$ 200,000
Lease Agreement \| Massachusetts
Commitment And Contingency [Line Items]
Rent expense						$ 815,000
Lease Agreement \| New York
Commitment And Contingency [Line Items]
Rent expense			$ 550,000

SHARE BASED COMPENSATION - Restricted Stock Activity (Details) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2016 USD ($) $ / shares shares	Jun. 30, 2016 USD ($) $ / shares shares
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized stock compensation expense \| $	$ 6.4	$ 6.4
Weighted-average recognition period (in years)		1 year 2 months 12 days
Number of Restricted Stock Units
Beginning Balance (in shares)		429,666,000
Granted (in shares)		130,000,000
Vested (in shares)		(77,666,000)
Forfeited/canceled (in shares)		(34,335,000)
Ending Balance (in share)	447,665,000	447,665,000
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares		$ 20.38
Granted (in dollars per share) \| $ / shares		16,010.00
Vested (in dollars per share) \| $ / shares		16,630.00
Forfeited/canceled (in dollars per share) \| $ / shares		12,070.00
Ending balance (in dollars per share) \| $ / shares	$ 20.40	$ 20.40
Performance Based Restricted Stock Awards
Number of Restricted Stock Units
Granted (in shares)	70,000	70,000

SHARE BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares exercisable (in shares)	2,900,000
Weighted average exercise price (in dollars per share)	$ 13.84
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized stock compensation expense	$ 46,800
Weighted-average recognition period (in years)	2 years
Shares Underlying Options
Beginning Balance (in shares)	5,665,584
Granted (in shares)	1,381,750
Exercised (in shares)	(166,611)
Forfeited/canceled (in shares)	(157,741)
Ending Balance (in shares)	6,722,982	5,665,584
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 17.05
Granted (in dollars per share)	16.09
Exercised (in dollars per share)	9.43
Forfeited/canceled (in dollars per share)	20.58
Ending balance (in dollars per share)	$ 16.96	$ 17.05
Weighted Average Remaining Contractual Life (years)	8 years 2 months 16 days	8 years 9 months
Aggregate Intrinsic Value (in thousands)	$ 26,854	$ 31,542

SHARE BASED COMPENSATION - Stock based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 7,493	$ 4,994	$ 14,286	$ 10,567
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2,641	1,749	5,127	3,968
Selling, general & administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 4,852	$ 3,245	$ 9,159	$ 6,599

SHARE BASED COMPENSATION - Exercise of Warrants (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Equity [Abstract]
Common stock issued upon the exercise of warrants (in shares)	15,000	15,000
Cash received from exercise of warrants		$ 0.1
Reclassification of derivative liability to equity upon exercise of warrants		0.2
Change in fair value of warrants		$ 0.1
Warrants outstanding	2,650,548	2,650,548	2,665,548

INVENTORY (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 232	$ 289
Finished goods	2,481	2,247
Total inventory	2,713	2,536
Inventory reserve	$ 0	$ 300

RECEIVABLES (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
RECEIVABLES (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net of reserves		$ 16,566	$ 16,566	$ 12,458
Note receivable, current		47,500	47,500	46,849
Note receivable, long term		46,206	46,206	$ 45,573
Asklepion Pharmaceuticals, LLC \| Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of asset	$ 245,000
Discount rate of future payments to be received	2.80%
At Time Of Closing \| Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Present value of future payments to be received	$ 46,200
At Time Of Closing \| Asklepion Pharmaceuticals, LLC \| Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of asset	150,000
Due On First And Second Anniversaries Of Closing \| Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Present value of future payments to be received	44,900
Due On First And Second Anniversaries Of Closing \| Asklepion Pharmaceuticals, LLC \| Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of asset	$ 47,500
Interest expense \| Asklepion Pharmaceuticals, LLC \| Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accretion on notes receivable		$ 600	$ 1,300

SUBSEQUENT EVENT (Details) - Subsequent Event $ in Millions	Jul. 26, 2016 USD ($) ft²	Jul. 01, 2016 USD ($)
Sanofi
Subsequent Event [Line Items]
Proceeds from sale of asset		$ 47.5
Corporate Headquarters
Subsequent Event [Line Items]
Area of leased space (in square feet) \| ft²	23,107
Length of contract (in years)	7 years 7 months
Annual base rent	$ 1.1
Renewal term (in years)	5 years