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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Aug. 08, 2017
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		38,385,466
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 89,265	$ 41,002
Marketable securities	206,716	214,871
Accounts receivable, net	13,321	18,510
Inventory, net	4,369	2,826
Prepaid expenses and other current assets	2,343	4,831
Prepaid taxes	3,644	3,463
Note receivable, current	0	46,849
Total current assets	319,658	332,352
Property and equipment, net	2,540	2,587
Other assets	3,628	7,364
Intangible assets, net	180,368	182,043
Goodwill	936	936
Total assets	507,130	525,282
Current liabilities:
Accounts payable	9,076	7,522
Accrued expenses	27,597	33,308
Guaranteed minimum royalty	2,000	2,000
Other current liabilities	1,593	1,842
Business combination-related contingent consideration	16,900	16,150
Derivative financial instruments, warrants	22,460	22,440
Total current liabilities	79,626	83,262
Convertible debt	44,747	44,422
Other non-current liabilities	3,851	4,010
Guaranteed minimum royalty, less current portion	7,624	8,068
Business combination-related contingent consideration, less current portion	74,267	71,328
Deferred income tax liability, net	1,186	6,425
Total liabilities	211,301	217,515
Stockholders' Equity:
Preferred stock $0.001 par value; 20,000,000 shares authorized; 0 issued and outstanding as of June 30, 2017 and December 31, 2016	0	0
Common stock $0.0001 par value; 100,000,000 shares authorized; 38,290,876 and 37,906,669 issued and outstanding as of June 30, 2017 and December 31, 2016, respectively	4	4
Additional paid-in capital	438,644	421,309
Accumulated deficit	(142,243)	(113,056)
Accumulated other comprehensive loss	(576)	(490)
Total stockholders' equity	295,829	307,767
Total liabilities and stockholders' equity	$ 507,130	$ 525,282

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
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)	38,290,876	37,906,669
Common stock shares outstanding (in shares)	38,290,876	37,906,669

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Net product sales	$ 38,800	$ 33,311	$ 72,420	$ 62,319
Operating expenses:
Cost of goods sold	797	1,021	1,506	1,778
Research and development	19,482	17,675	40,342	32,347
Selling, general and administrative	28,835	23,205	51,950	42,330
Change in fair value of contingent consideration	3,284	2,789	6,628	5,485
Total operating expenses	52,398	44,690	100,426	81,940
Operating loss	(13,598)	(11,379)	(28,006)	(19,621)
Other income (expenses), net:
Other income (expense), net	382	(206)	508	4
Interest expense, net	(658)	(147)	(790)	(309)
Change in fair value of derivative instruments	(1,280)	(9,063)	(20)	5,277
Total other income (expense), net	(1,556)	(9,416)	(302)	4,972
Loss before provision for income taxes	(15,154)	(20,795)	(28,308)	(14,649)
Income tax benefit	1,925	7,392	3,989	12,462
Net loss	$ (13,229)	$ (13,403)	$ (24,319)	$ (2,187)
Net earnings (loss) per common share, basic (in dollars per share)	$ (0.34)	$ (0.37)	$ (0.63)	$ (0.06)
Net earnings (loss) per common share, diluted (in dollars per share)	$ (0.34)	$ (0.37)	$ (0.63)	$ (0.20)
Weighted average common shares outstanding, basic (in shares)	39,041,145	36,683,429	38,545,982	36,601,807
Weighted average common shares outstanding, diluted (in shares)	39,041,145	36,683,429	38,545,982	38,063,285
Comprehensive loss:
Net loss	$ (13,229)	$ (13,403)	$ (24,319)	$ (2,187)
Foreign currency translation	(183)	71	(259)	2
Unrealized gain (loss) on marketable securities	27	(157)	173	(706)
Comprehensive loss	$ (13,385)	$ (13,489)	$ (24,405)	$ (2,891)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows From Operating Activities:
Net loss	$ (24,319)	$ (2,187)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	8,721	7,858
Deferred income tax benefit	(5,420)	(12,286)
Interest income from notes receivable	(651)	(1,285)
Legal fee settlement	0	(2,967)
Non-cash interest expense	1,325	1,179
Amortization of premiums on marketable securities	602	666
Amortization of debt discount and deferred financing costs	305	326
Share based compensation	14,332	14,286
Change in fair value of liability classified warrants	20	(5,277)
Change in fair value of contingent consideration	6,628	5,485
Payments related to change in fair value of contingent consideration	(553)	(550)
Provision for doubtful accounts	410	49
Other	260	0
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	4,685	(4,153)
Inventory	(212)	(174)
Other current and non-current operating assets	(12)	(1,197)
Accounts payable and accrued expenses	(3,458)	650
Other current and non-current operating liabilities	(45)	0
Net cash provided by operating activities	2,618	423
Cash Flows From Investing Activities:
Purchase of fixed assets	(1,056)	(24)
Cash paid for intangible assets	(6,278)	(4,881)
Proceeds from the sale/maturity of marketable securities	43,940	59,874
Purchase of marketable securities	(36,213)	(68,517)
Proceeds from maturity of note receivable	47,500	0
Cash paid upon acquisition, net of cash acquired	0	(500)
Net cash provided by (used in) investing activities	47,893	(14,048)
Cash Flows From Financing Activities:
Payment of acquisition-related contingent consideration	(3,254)	(2,769)
Payment of guaranteed minimum royalty	(1,000)	(1,000)
Payment of other liability	(500)	(500)
Proceeds from exercise of stock options	3,003	1,572
Other	0	(146)
Net cash used in financing activities	(1,751)	(2,843)
Effect of exchange rate changes on cash	(497)	(182)
Net change in cash	48,263	(16,650)
Cash, beginning of year	41,002	37,805
Cash, end of period	$ 89,265	$ 21,155

DESCRIPTION OF BUSINESS

6 Months Ended

Jun. 30, 2017

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. Retrophin is a fully integrated biopharmaceutical company headquartered in San Diego, California focused on the development, acquisition and commercialization of therapies for the treatment of serious or rare diseases. We regularly evaluate and, where appropriate, act on opportunities to expand our product pipeline through licenses and acquisitions of products in areas that will serve patients with serious or rare diseases and that we believe offer attractive growth characteristics.

Research and Development Programs:

Fosmetpantotenate, also known as RE-024, a novel small molecule, is being developed as a potential treatment for pantothenate kinase-associated neurodegeneration (“PKAN”). PKAN is a genetic neurodegenerative disorder that is typically diagnosed in the first decade of life. Consequences of PKAN include parkinsonism, dystonia, and other severe systemic manifestations. Fosmetpantotenate (RE-024) is a phosphopantothenate replacement therapy that aims to restore levels of this key substrate in PKAN patients. Certain international health regulators have approved the initiation of dosing fosmetpantotenate (RE-024) in PKAN patients under physician-initiated studies in accordance with local regulations in their respective countries. The Company filed a U.S. Investigational New Drug ("IND") for fosmetpantotenate (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. The FDA granted fosmetpantotenate (RE-024) orphan drug designation in May 2015 and fast track designation in June 2015. In February 2016, the Company announced fosmetpantotenate (RE-024) was granted orphan drug designation by the European Commission. In November 2016, the Company announced that it had reached an agreement with the FDA under the Special Protocol Assessment (SPA) process for a Phase 3 clinical trial evaluating fosmetpantotenate (RE-024) for PKAN. The Company has reviewed the study design with the European Medicines Agency ("EMA") and we expect it to support registration in Europe. In July 2017, we announced that the first patient had been dosed in the FORT (FOsmetpantotenate Replacement Therapy) Study.

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. The Company has secured a license to sparsentan from Ligand Pharmaceuticals, Inc. and Bristol-Myers Squibb Company (who referred to it as DARA). The Company is developing sparsentan as a treatment for focal segmental glomerulosclerosis ("FSGS"), which is a leading cause of end-stage renal disease and nephrotic syndrome (“NS”). Sparsentan was granted orphan drug designation in the United States and the European Union in January 2015 and November 2015, respectively. In the third quarter of 2016, the Company announced positive top-line data from the Phase 2 DUET study of sparsentan for the treatment of FSGS. In early 2017, we had an End of Phase 2 meeting with the U.S. Food and Drug Administration (the "FDA") regarding the regulatory pathway for sparsentan as a treatment for FSGS. Following the meeting and our receipt of confirmatory meeting minutes, we announced our plans to initiate a single Phase 3 clinical trial to serve as the basis of a New Drug Application ("NDA") filing for sparsentan for the treatment of FSGS. We have completed the protocol design for the study and expect to gain alignment with the FDA in the second half of 2017 and initiate the trial thereafter.

Liquid ursodeoxycholic acid ("L-UDCA") is a liquid formulation of ursodeoxycholic acid being developed for the treatment of a rare liver disease called primary biliary cholangitis ("PBC"). We obtained rights to L-UDCA during 2016 with the intention of making L-UDCA commercially available to the subset of PBC patients who have difficulty swallowing.

NGLY1 Deficiency Discovery Efforts

We have entered into a research collaboration aimed at the discovery 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.

Products on the Market:


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


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


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

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Jun. 30, 2017
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, 2016 (the “2016 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on March 1, 2017. 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, 2016 balance sheet information was derived from the audited financial statements as of that date.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2017
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 October 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The new guidance changes the accounting for income tax effects of intra-entity transfers of assets other than inventory. Under the new guidance, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The new guidance will be effective for the Company starting in fiscal year 2018 on a modified retrospective basis. The Company has elected to early adopt this guidance as of January 1, 2017, and has reversed the recorded prepaid tax asset of $4.9 million related to an intra-entity transfer as a charge to accumulated deficit. 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 were 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 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 Company adopted this guidance as of January 1, 2017, and as a result the tax effects related to share-based payments at settlement (or expiration) will be recorded through the statement of operations. For the three and six months ended June 30, 2017 the Company recorded tax expense of $0.1 million and $0.4 million, respectively, net of valuation allowance released, related to the stock compensation short falls. In addition the Company adopted accounting for forfeitures at actual rates in the period they occur. 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. 2014-09, Revenue from Contracts with Customers. Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration for which the entity expects to be entitled for that specific good or service. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. On July 9, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date. Early adoption of ASU 2014-09 is permitted but not before the original effective date (annual periods beginning after December 15, 2016). The Company does not expect the new standard to change the timing for recognition of revenue from product sales, but is continuing its review of the standard and its effects on disclosures. 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. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures; however, based on the Company's current operating leases, it is expected to have a material impact to the consolidated balance sheet by increasing assets and liabilities. In June 2016, the FASB issued ASU 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 its 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 ASU 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 ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. As of June 30, 2017, the Company held $206.7 million in available for sale debt securities that are affected by this ASU. If adopted as of June 30, 2017, Topic 326 would not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new guidance dictates that, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, it should be treated as an acquisition or disposal of an asset. The guidance will be effective for the fiscal year beginning on January 1, 2018, including interim periods within that year (early adoption is permitted). The Company is currently evaluating the potential effect of the guidance on its consolidated financial statements. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. These amendments simplify the accounting for certain financial instruments with down round features.The amendments require companies to disregard the down round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. Companies that provide earnings per share (EPS) data will adjust their basic EPS calculation for the effect of the feature when triggered (i.e., when the exercise price of the related equity-linked financial instrument is adjusted downward because of the down round feature) and will also recognize the effect of the trigger within equity. The Company is currently evaluating the whether derivative instruments held by the Company would be effected by this ASU.

INCOME TAXES

6 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

The following table summarizes our effective tax rate and income tax benefit for the three and six months ended June 30, 2017 and 2016 (in millions except for percentages):



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Effective tax rate	12.7		%	35.6		%	14.1		%	85.1		%
Income tax benefit	$	1.9		$	7.4		$	4.0		$	12.5

For the three and six months ended June 30, 2017, we recognized an income tax benefit of $1.9 million and $4.0 million, respectively, representing an effective tax rate of 12.7% and 14.1%, respectively. 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.

The difference between the expected statutory federal tax benefit of 35% and the effective tax benefit for three and six months ended June 30, 2017, was primarily attributable to the increase in valuation allowance against our deferred tax assets.

For the three and six months ended June 30, 2017, when compared to the same period in 2016, the decrease in the tax benefit and decrease in the effective income tax rate was primarily attributable to the increase of the U.S. federal valuation allowance in 2017.

At June 30, 2017 and December 31, 2016, we had gross unrecognized tax benefits of $1.5 million. If recognized, none of the unrecognized tax benefits would affect the Company’s effective tax rate. We did not recognize any interest or penalties related to unrecognized tax benefits during the three months ended June 30, 2017.

In April 2017 the Internal Revenue Service concluded its audit of the 2014 tax year with no change.

BUSINESS COMBINATION

6 Months Ended

Jun. 30, 2017

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 Pharmaceuticals, LLC ("Asklepion").

The purchase was accounted for under the acquisition 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.

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 is expected to be approximately 17 years from the date that the Company's NDA for L-UDCA 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

MARKETABLE SECURITIES

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

MARKETABLE SECURITIES

The Company's marketable securities as of June 30, 2017 and December 31, 2016 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. 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. Interest and dividends on securities classified as available-for-sale are included in interest income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion is included in interest income. During the six months ended June 30, 2017, investment activity for the Company included $43.9 million in maturities, all relating to debt based marketable securities.

Marketable securities consisted of the following (in thousands):



	June 30, 2017		December 31, 2016
Marketable other than equity securities:
Commercial paper	$	18,970	$	30,303
Corporate debt securities	142,949		134,570
Securities of government sponsored entities	44,797		49,998
Total marketable securities:	$	206,716	$	214,871

The following is a summary of short-term marketable securities classified as available-for-sale as of June 30, 2017 (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	$	18,972	$	—	$	(2	)	$	18,970
Corporate debt securities	Less than 1	88,018		—		(168		)	87,850
Securities of government-sponsored entities	Less than 1	27,618		5		(36		)	27,587
Total maturity less than 1 year		134,608		5		(206		)	134,407
Corporate debt securities	1 to 2	55,238		—		(139		)	55,099
Securities of government-sponsored entities	1 to 2	17,240		13		(43		)	17,210
Total maturity 1 to 2 years		72,478		13		(182		)	72,309
Total available-for-sale securities		$	207,086	$	18	$	(388	)	$	206,716

The following is a summary of short-term marketable securities classified as available-for-sale as of December 31, 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	$	30,330	$	—	$	(27	)	$	30,303
Corporate debt securities	Less than 1	64,794		7		(91		)	64,710
Securities of government-sponsored entities	Less than 1	19,500		—		(10		)	19,490
Total maturity less than 1 year		114,624		7		(128		)	114,503
Corporate debt securities	1 to 2	70,207		—		(347		)	69,860
Securities of government-sponsored entities	1 to 2	30,583		—		(75		)	30,508
Total maturity 1 to 2 years		100,790		—		(422		)	100,368
Total available-for-sale securities		$	215,414	$	7	$	(550	)	$	214,871

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, 2017 and December 31, 2016, the Company believed the cost basis for available-for-sale investments was recoverable in all material respects.

DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2017

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 amendments with respect to a credit facility 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 Loss. The Company recorded a loss on the change in the estimated fair value of warrants of $1.3 million and $0.02 million for the three and six months ended June 30, 2017, respectively, and 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.

The Company calculated the fair value of the warrants using the Black-Scholes Model as of June 30, 2017 and the Monte Carlo Simulation as of December 31, 2016, using the following assumptions:



	June 30, 2017			December 31, 2016
Fair value of common stock	$	19.39		$	18.93
Remaining life of the warrants (in years)	.6 - 2.5 years			1.2 - 3.0 years
Risk-free interest rate	1.2% - 1.5%			.89 - 1.48%
Expected volatility	34% - 56%			55 - 75%
Dividend yield	—		%	—		%

Expected volatility is based on an analysis of the Company’s volatility. 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, 2017

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 Black Scholes Model as of June 30, 2017 and the Monte Carlo Simulation as of December 31, 2016. 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. As of June 30, 2017, the estimated fair value of convertible debt was $61.2 million, considering factors such as market conditions, prepayment and make-whole provisions, variability in pricing from multiple lenders and the term of the 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, 2017 (in thousands):



	As of June 30, 2017
	Total carrying and estimated fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets:
Marketable securities, available-for-sale	206,716		—		206,716		—
Total	$	206,716	$	—	$	206,716	$	—
Liabilities:
Derivative liability related to warrants	$	22,460	$	—	$	—	$	22,460
Business combination-related contingent consideration	91,167		—		—		91,167
Total	$	113,627	$	—	$	—	$	113,627



	As of December 31, 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)
Assets:
Cash and cash equivalents	$	41,002	$	39,929	$	1,073	$	—
Marketable securities, available-for-sale	214,871		—		214,871		—
Total	$	255,873	$	39,929	$	215,944	$	—
Liabilities:
Derivative liability related to warrants	$	22,440	$	—	$	—	$	22,440
Business combination-related contingent consideration	87,478		—		—		87,478
Total	$	109,918	$	—	$	—	$	109,918

The following table sets forth a summary of changes in the estimated fair value of the Company’s derivative financial instrument-warrants liability for the six months ended June 30, 2017 (in thousands):



	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2017	$	22,440
Change in estimated fair value of liability classified warrants	20
Balance at June 30, 2017	$	22,460

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, 2017 (in thousands):



	Fair Value Measurements of Acquisition-Related Contingent Consideration (Level 3)
Balance at January 1, 2017	$	87,478
Increase from revaluation of contingent consideration	6,628
Contractual payments accrued at June 30, 2017	(1,478		)
Contractual payments	(1,808		)
Foreign currency impact	347
Balance at June 30, 2017	$	91,167

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 months ended June 30, 2017, the Company incurred charges of $3.3 million and $6.6 million, respectively, in operating expenses on the Condensed Consolidated Statements of Operations and Comprehensive Loss for the revaluation of the contingent consideration liabilities. For the six months ended June 30, 2017, $2.8 million, $2.2 million and $1.6 million of the charges were related to the increase in contingent consideration liabilities for the products Chenodal, Cholbam and product candidate L-UDCA, respectively. In each case, the value increased due to changes in the estimated timing of payments. During the three and six months 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 Loss. For the six months ended June 30, 2016, $2.9 million and $2.6 million of the charges were related to the increase in contingent consideration liabilities for the products Chenodal and Cholbam, respectively.

- 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, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

As of June 30, 2017, the net book value of amortizable intangible assets was approximately $180.4 million.

The following table sets forth amortizable intangible assets as of June 30, 2017 and December 31, 2016 (in thousands):



	June 30, 2017			December 31, 2016
Finite-lived intangible assets	$	222,482		$	215,540
Less: accumulated amortization	(42,114		)	(33,497		)
Net carrying value	$	180,368		$	182,043

The following table summarizes amortization expense for the three and six months ended June 30, 2017 and 2016 (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Research and development	$	81	$	81	$	162	$	163
Selling, general and administrative	4,238		3,829		8,328		7,632
Total amortization expense	$	4,319	$	3,910	$	8,490	$	7,795

CONVERTIBLE NOTES PAYABLE	6 Months Ended
CONVERTIBLE NOTES PAYABLE	Jun. 30, 2017
Debt Disclosure [Abstract]
CONVERTIBLE 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 their terms, and there are no contractual payments due prior to that date. At June 30, 2017 and December 31, 2016, the aggregate carrying value of the Notes was $44.7 million and $44.4 million, respectively.

ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2017

Payables and Accruals [Abstract]

ACCRUED EXPENSES

Accrued expenses at June 30, 2017 and December 31, 2016 consisted of the following (in thousands):



	June 30, 2017		December 31, 2016
Government rebates payable	$	4,832	$	6,967
Compensation related costs	5,303		7,441
Accrued royalties and contingent consideration	5,922		5,766
Research and development	5,744		7,311
Selling, general and administrative	3,174		3,333
Miscellaneous accrued	2,622		2,490
Total accrued expenses	$	27,597	$	33,308

LOSS PER COMMON SHARE

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

LOSS PER COMMON SHARE

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



	Three Months Ended
	June 30, 2017							June 30, 2016
	Shares	Net Loss			EPS			Shares	Net Loss			EPS
Basic loss per share	39,041,145	$	(13,229	)	$	(0.34	)	36,683,429	$	(13,403	)	$	(0.37	)
Dilutive loss per share	39,041,145	$	(13,229	)	$	(0.34	)	36,683,429	$	(13,403	)	$	(0.37	)



	Six Months Ended
	June 30, 2017							June 30, 2016
	Shares	Net Loss			EPS			Shares	Net Loss			EPS
Basic loss per share	38,545,982	$	(24,319	)	$	(0.63	)	36,601,807	$	(2,187	)	$	(0.06	)
Change in fair value of derivative instruments	—	—						—	(5,277		)
Dilutive shares related to warrants	—	—						1,461,478	—
Dilutive loss per share	38,545,982	$	(24,319	)	$	(0.63	)	38,063,285	$	(7,464	)	$	(0.20	)

For the three and six months ended June 30, 2017 and 2016, the following shares were excluded because they were anti-dilutive (in thousands):



	Three Months Ended		Six Months Ended
	June 30, 2017	June 30, 2016	June 30, 2017	June 30, 2016
Restricted stock units	200	300	200	300
Convertible debt	2,600	2,600	2,600	2,600
Options	7,000	6,100	6,700	5,900
Warrants	1,800	2,700	1,800	—
Total anti-dilutive shares	11,600	11,700	11,300	8,800

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Leases and Sublease Agreements



Facilities	Annual Base Rent	Lease Expiration	Comments
Occupied Locations
Corporate Headquarters San Diego CA	$1.1 million	July 2024	Occupied in December 2016
Cambridge MA		January 2018	Subleased space for less than one year
Vacated Locations
San Diego CA	$0.5 million	December 2017	Available for sublease
New York NY	$0.5 million	November 2018	Sublet through expiration

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, 2017 (in thousands):



	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating leases	$	10,154	$	2,208	$	2,620	$	4,520	$	806
Guaranteed minimum royalty	14,000		2,000		4,000		4,000		4,000
Convertible note payable, including contractual interest	49,967		2,070		47,897		—		—
Sales support services	2,845		416		833		833		763
Product supply contracts	2,505		2,088		417		—		—
Purchase order commitments	681		368		313		—		—
	$	80,152	$	9,150	$	56,080	$	9,353	$	5,569

Legal Proceedings

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 Martin Shkreli, the Company’s former Chief Executive Officer, and individuals or entities that had been investors in investment funds previously managed by Mr. Shkreli. The Company was informed that it is not a target of the U.S. Attorney’s investigation, and cooperated with the investigation. On December 17, 2015, an indictment against Mr. Shkreli and the Company’s 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 also cooperated 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, sought advancement of their legal fees from the Company. Mr. Shkreli, in particular, claimed that the Company owes him in excess $5 million in legal fees that he has incurred defending these actions. The Company disputed its obligation to pay the amount in full. In November 2016, the Company and Mr. Shkreli entered into a binding term sheet with respect to a settlement under which the Company would advance $2.8 million in legal fees to Mr. Shkreli’s counsel, representing a portion of the existing legal fees related to these proceedings that Mr. Shkreli claims should be advanced. The Company also undertook an obligation to advance an additional $2 million in future legal fees in the event the matter proceeded to trial. In June 2017, Mr. Shkreli’s trial commenced in the United States District Court for the Eastern District of New York. In August 2017, the trial was concluded with a conviction on several counts. Mr. Shkreli may appeal his conviction and request further advancement of legal fees in connection with the appeal. The Company has now advanced $2.8 million ($1.8 million of which occurred in 2016) in pre-trial fees to Mr. Shkreli's counsel, as well as the $2 million in trial fees. At present, the Company has been reimbursed approximately $0.7 million of this amount from its directors’ and officers’ insurance carriers, and expects to receive payments for a portion of the remaining amount. The total amount it will receive from the insurance carriers is not currently estimable. In addition, the legal fees the Company has advanced will be subject to reimbursement by Mr. Shkreli under Delaware law in the event it is ultimately determined that Mr. Shkreli is not entitled to be indemnified by the Company in these proceedings.

On August 17, 2015, the Company filed a lawsuit in federal district court for the Southern District of New York against Mr. 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 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 granted a stay of the federal lawsuit pending a determination by the arbitration panel whether the Company’s counterclaims would 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 sought advancement of his legal fees from the Company relating to his defense of the Company’s claims against him. Mr. Shkreli claimed 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 disputed its obligation to pay the amount in full. In November 2016, the Company and Mr. Shkreli entered into a binding term sheet with respect to a settlement under which the significant majority of the existing legal fees related to these proceedings that Mr. Shkreli claimed should be advanced would be offset and satisfied by the $2.025 million judgment against Mr. Shkreli in the Donoghue v. Retrophin, Inc. case. The Company would also advance $0.4 million in legal fees to Mr. Shkreli’s counsel, a portion of which represented additional legal fees related to these proceedings that Mr. Shkreli claims should be advanced. In accordance with the Term Sheet, the Donoghue settlement was offset, and the Company paid the $0.4 million to Mr. Shkreli's counsel. The legal fees the Company has advanced will be subject to reimbursement by Mr. Shkreli under Delaware law in the event it is ultimately determined that Mr. Shkreli is not entitled to be indemnified by the Company in these proceedings.

The Company will also be subject to additional obligations when the litigation resumes, as well as advancement obligations in the interim.

In 2016, the Company recorded $5.2 million in expenses and paid $2.3 million under the settlement. For the three and six months ended June 30, 2017, the Company paid $2.0 million and $3.0 million, respectively. under the settlement. In April 2017, the Company expensed and advanced an additional $2.0 million in trial fees in accordance with the settlement. The Company received $0.7 million in total reimbursement from directors’ and officers’ insurance carriers which is recorded as a gain in selling, general and administrative expenses within the Consolidated Statement of Operations and Comprehensive Income (Loss) during 2016. The Company expects to receive additional payment from its insurance carriers for a portion of the legal fees advanced, however the Company has not yet recorded any amounts for such payments as the amount it will receive from the insurance carriers is not currently estimable.

From time to time the Company is involved in legal proceedings arising in the ordinary course of business. The Company believes there is no 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, 2017

Equity [Abstract]

SHARE BASED COMPENSATION

Restricted Shares

Service and Performance Based Restricted Stock Units

The following table summarizes the Company’s restricted stock activity during the six months ended June 30, 2017:



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value
Unvested December 31, 2016	407,746		$	19.88
Granted	157,750		18.32
Vested	(118,334	)	15.91
Forfeited/canceled	(3,500	)	23.85
Unvested June 30, 2017	443,662		$	20.35

At June 30, 2017, unamortized stock compensation for restricted stock units was $4.5 million, with a weighted-average recognition period of 1.2 years.

Performance Based Restricted Stock Units

During the three and six months ended June 30, 2017, the Company granted 78,500 and 108,500 performance based restricted stock units, respectively, which are included in the restricted stock activity table above.

Stock Options

The following table summarizes stock option activity during the six months ended June 30, 2017:



	Shares Underlying Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2016	6,430,570		$	16.91	7.64	30,088
Granted	1,738,800		17.78
Exercised	(265,873	)	11.30
Forfeited/canceled	(321,543	)	25.12
Outstanding at June 30, 2017	7,581,954		$	16.96	7.76	$	32,554

At June 30, 2017, unamortized stock compensation for stock options was $38.0 million, with a weighted-average recognition period of 2.7 years.

At June 30, 2017, outstanding options to purchase 4.2 million shares of common stock were exercisable with a weighted-average exercise price per share of $15.24.

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, 2017 and 2016 (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Research and development	$	2,459	$	2,641	$	5,115	$	5,127
Selling, general & administrative	4,780		4,852		9,217		9,159
Total	$	7,239	$	7,493	$	14,332	$	14,286

Exercise of Warrants

During the six months ended June 30, 2017, there were no warrant exercises. At each of June 30, 2017 and December 31, 2016, warrants to purchase 1,766,905 shares of common stock were outstanding.

INVENTORY

6 Months Ended

Jun. 30, 2017

Inventory Disclosure [Abstract]

INVENTORY

Inventory, net of reserves, consisted of the following at June 30, 2017 and December 31, 2016 (in thousands):



	June 30, 2017		December 31, 2016
Raw materials	$	2,938	$	1,336
Finished goods	1,431		1,490
Total inventory	$	4,369	$	2,826

The inventory reserve was $0.5 million and $0.6 million at June 30, 2017 and December 31, 2016, respectively.

RECEIVABLES	6 Months Ended
RECEIVABLES	Jun. 30, 2017
Receivables [Abstract]
RECEIVABLES	RECEIVABLES Accounts Receivables Accounts receivable, net of reserves for prompt pay discounts and doubtful accounts, was $13.3 million and $18.5 million at June 30, 2017 and December 31, 2016, respectively. The total reserves for both periods were immaterial. Notes Receivables The notes receivable arose from the Company's sale of a Pediatric Priority Review Voucher in July 2015 to Sanofi for $245.0 million. $150.0 million was received upon closing, and $47.5 million was 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 for the six months ended June 30, 2017, and is recorded in interest expense, net, in the Consolidated Statements of Operations and Comprehensive Loss. The first anniversary payment was received on July 2, 2016. The second anniversary payment was received on June 30, 2017. The note receivable balances as of June 30, 2017 and December 31, 2016 were zero and $46.8 million, respectively.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2017
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 October 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The new guidance changes the accounting for income tax effects of intra-entity transfers of assets other than inventory. Under the new guidance, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The new guidance will be effective for the Company starting in fiscal year 2018 on a modified retrospective basis. The Company has elected to early adopt this guidance as of January 1, 2017, and has reversed the recorded prepaid tax asset of $4.9 million related to an intra-entity transfer as a charge to accumulated deficit. 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 were 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 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 Company adopted this guidance as of January 1, 2017, and as a result the tax effects related to share-based payments at settlement (or expiration) will be recorded through the statement of operations. For the three and six months ended June 30, 2017 the Company recorded tax expense of $0.1 million and $0.4 million, respectively, net of valuation allowance released, related to the stock compensation short falls. In addition the Company adopted accounting for forfeitures at actual rates in the period they occur. 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. 2014-09, Revenue from Contracts with Customers. Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration for which the entity expects to be entitled for that specific good or service. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. On July 9, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date. Early adoption of ASU 2014-09 is permitted but not before the original effective date (annual periods beginning after December 15, 2016). The Company does not expect the new standard to change the timing for recognition of revenue from product sales, but is continuing its review of the standard and its effects on disclosures. 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. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures; however, based on the Company's current operating leases, it is expected to have a material impact to the consolidated balance sheet by increasing assets and liabilities. In June 2016, the FASB issued ASU 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 its 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 ASU 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 ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. As of June 30, 2017, the Company held $206.7 million in available for sale debt securities that are affected by this ASU. If adopted as of June 30, 2017, Topic 326 would not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new guidance dictates that, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, it should be treated as an acquisition or disposal of an asset. The guidance will be effective for the fiscal year beginning on January 1, 2018, including interim periods within that year (early adoption is permitted). The Company is currently evaluating the potential effect of the guidance on its consolidated financial statements. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. These amendments simplify the accounting for certain financial instruments with down round features.The amendments require companies to disregard the down round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. Companies that provide earnings per share (EPS) data will adjust their basic EPS calculation for the effect of the feature when triggered (i.e., when the exercise price of the related equity-linked financial instrument is adjusted downward because of the down round feature) and will also recognize the effect of the trigger within equity. The Company is currently evaluating the whether derivative instruments held by the Company would be effected by this ASU.
Business Combination	The purchase was accounted for under the acquisition 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.
Marketable Securities	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.
Derivatives	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 Loss.
Financial Instruments and Fair Value	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 Black Scholes Model as of June 30, 2017 and the Monte Carlo Simulation as of December 31, 2016. 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.
Earnings (Loss) Per Share	Basic and diluted net loss per common share is calculated by dividing net 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.

- Definition

Disclosure of accounting policy for investments in debt and equity securities that are classified as available-for-sale. This policy also may describe the entity's accounting treatment for transfers between investment categories, how the entity determines whether impairments of available-for-sale securities are other than temporary, and how the fair values of such securities are determined.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18780-107790

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(12))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 5.M)
-URI http://asc.fasb.org/extlink&oid=65877573&loc=d3e87990-122713

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(6))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=82897076&loc=d3e27161-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(2))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(1))
-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(5))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

+ Details

INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax (Expense) Benefit

The following table summarizes our effective tax rate and income tax benefit for the three and six months ended June 30, 2017 and 2016 (in millions except for percentages):



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Effective tax rate	12.7		%	35.6		%	14.1		%	85.1		%
Income tax benefit	$	1.9		$	7.4		$	4.0		$	12.5

BUSINESS COMBINATION (Tables)

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Schedule of purchase price allocation

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, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of marketable securities

Marketable securities consisted of the following (in thousands):



	June 30, 2017		December 31, 2016
Marketable other than equity securities:
Commercial paper	$	18,970	$	30,303
Corporate debt securities	142,949		134,570
Securities of government sponsored entities	44,797		49,998
Total marketable securities:	$	206,716	$	214,871

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, 2017 (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	$	18,972	$	—	$	(2	)	$	18,970
Corporate debt securities	Less than 1	88,018		—		(168		)	87,850
Securities of government-sponsored entities	Less than 1	27,618		5		(36		)	27,587
Total maturity less than 1 year		134,608		5		(206		)	134,407
Corporate debt securities	1 to 2	55,238		—		(139		)	55,099
Securities of government-sponsored entities	1 to 2	17,240		13		(43		)	17,210
Total maturity 1 to 2 years		72,478		13		(182		)	72,309
Total available-for-sale securities		$	207,086	$	18	$	(388	)	$	206,716

The following is a summary of short-term marketable securities classified as available-for-sale as of December 31, 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	$	30,330	$	—	$	(27	)	$	30,303
Corporate debt securities	Less than 1	64,794		7		(91		)	64,710
Securities of government-sponsored entities	Less than 1	19,500		—		(10		)	19,490
Total maturity less than 1 year		114,624		7		(128		)	114,503
Corporate debt securities	1 to 2	70,207		—		(347		)	69,860
Securities of government-sponsored entities	1 to 2	30,583		—		(75		)	30,508
Total maturity 1 to 2 years		100,790		—		(422		)	100,368
Total available-for-sale securities		$	215,414	$	7	$	(550	)	$	214,871

- 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, 2017

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 Black-Scholes Model as of June 30, 2017 and the Monte Carlo Simulation as of December 31, 2016, using the following assumptions:



	June 30, 2017			December 31, 2016
Fair value of common stock	$	19.39		$	18.93
Remaining life of the warrants (in years)	.6 - 2.5 years			1.2 - 3.0 years
Risk-free interest rate	1.2% - 1.5%			.89 - 1.48%
Expected volatility	34% - 56%			55 - 75%
Dividend yield	—		%	—		%

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of fair value on a recurring basis



	As of June 30, 2017
	Total carrying and estimated fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets:
Marketable securities, available-for-sale	206,716		—		206,716		—
Total	$	206,716	$	—	$	206,716	$	—
Liabilities:
Derivative liability related to warrants	$	22,460	$	—	$	—	$	22,460
Business combination-related contingent consideration	91,167		—		—		91,167
Total	$	113,627	$	—	$	—	$	113,627



	As of December 31, 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)
Assets:
Cash and cash equivalents	$	41,002	$	39,929	$	1,073	$	—
Marketable securities, available-for-sale	214,871		—		214,871		—
Total	$	255,873	$	39,929	$	215,944	$	—
Liabilities:
Derivative liability related to warrants	$	22,440	$	—	$	—	$	22,440
Business combination-related contingent consideration	87,478		—		—		87,478
Total	$	109,918	$	—	$	—	$	109,918

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, 2017	$	22,440
Change in estimated fair value of liability classified warrants	20
Balance at June 30, 2017	$	22,460

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, 2017	$	87,478
Increase from revaluation of contingent consideration	6,628
Contractual payments accrued at June 30, 2017	(1,478		)
Contractual payments	(1,808		)
Foreign currency impact	347
Balance at June 30, 2017	$	91,167

INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017 and December 31, 2016 (in thousands):



	June 30, 2017			December 31, 2016
Finite-lived intangible assets	$	222,482		$	215,540
Less: accumulated amortization	(42,114		)	(33,497		)
Net carrying value	$	180,368		$	182,043

Schedule of amortization expense

The following table summarizes amortization expense for the three and six months ended June 30, 2017 and 2016 (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Research and development	$	81	$	81	$	162	$	163
Selling, general and administrative	4,238		3,829		8,328		7,632
Total amortization expense	$	4,319	$	3,910	$	8,490	$	7,795

ACCRUED EXPENSES (Tables)

6 Months Ended

Jun. 30, 2017

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses at June 30, 2017 and December 31, 2016 consisted of the following (in thousands):



	June 30, 2017		December 31, 2016
Government rebates payable	$	4,832	$	6,967
Compensation related costs	5,303		7,441
Accrued royalties and contingent consideration	5,922		5,766
Research and development	5,744		7,311
Selling, general and administrative	3,174		3,333
Miscellaneous accrued	2,622		2,490
Total accrued expenses	$	27,597	$	33,308

LOSS PER COMMON SHARE (Tables)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

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

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



	Three Months Ended
	June 30, 2017							June 30, 2016
	Shares	Net Loss			EPS			Shares	Net Loss			EPS
Basic loss per share	39,041,145	$	(13,229	)	$	(0.34	)	36,683,429	$	(13,403	)	$	(0.37	)
Dilutive loss per share	39,041,145	$	(13,229	)	$	(0.34	)	36,683,429	$	(13,403	)	$	(0.37	)



	Six Months Ended
	June 30, 2017							June 30, 2016
	Shares	Net Loss			EPS			Shares	Net Loss			EPS
Basic loss per share	38,545,982	$	(24,319	)	$	(0.63	)	36,601,807	$	(2,187	)	$	(0.06	)
Change in fair value of derivative instruments	—	—						—	(5,277		)
Dilutive shares related to warrants	—	—						1,461,478	—
Dilutive loss per share	38,545,982	$	(24,319	)	$	(0.63	)	38,063,285	$	(7,464	)	$	(0.20	)

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

For the three and six months ended June 30, 2017 and 2016, the following shares were excluded because they were anti-dilutive (in thousands):



	Three Months Ended		Six Months Ended
	June 30, 2017	June 30, 2016	June 30, 2017	June 30, 2016
Restricted stock units	200	300	200	300
Convertible debt	2,600	2,600	2,600	2,600
Options	7,000	6,100	6,700	5,900
Warrants	1,800	2,700	1,800	—
Total anti-dilutive shares	11,600	11,700	11,300	8,800

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of property subject to or available for operating lease

Leases and Sublease Agreements



Facilities	Annual Base Rent	Lease Expiration	Comments
Occupied Locations
Corporate Headquarters San Diego CA	$1.1 million	July 2024	Occupied in December 2016
Cambridge MA		January 2018	Subleased space for less than one year
Vacated Locations
San Diego CA	$0.5 million	December 2017	Available for sublease
New York NY	$0.5 million	November 2018	Sublet through expiration

Schedule of principal contractual commitments

The following table summarizes our principal contractual commitments, excluding open orders that support normal operations, as of June 30, 2017 (in thousands):



	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating leases	$	10,154	$	2,208	$	2,620	$	4,520	$	806
Guaranteed minimum royalty	14,000		2,000		4,000		4,000		4,000
Convertible note payable, including contractual interest	49,967		2,070		47,897		—		—
Sales support services	2,845		416		833		833		763
Product supply contracts	2,505		2,088		417		—		—
Purchase order commitments	681		368		313		—		—
	$	80,152	$	9,150	$	56,080	$	9,353	$	5,569

SHARE BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Schedule of restricted stock activity

The following table summarizes the Company’s restricted stock activity during the six months ended June 30, 2017:



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value
Unvested December 31, 2016	407,746		$	19.88
Granted	157,750		18.32
Vested	(118,334	)	15.91
Forfeited/canceled	(3,500	)	23.85
Unvested June 30, 2017	443,662		$	20.35

Schedule of stock option issuances and balances outstanding

The following table summarizes stock option activity during the six months ended June 30, 2017:



	Shares Underlying Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2016	6,430,570		$	16.91	7.64	30,088
Granted	1,738,800		17.78
Exercised	(265,873	)	11.30
Forfeited/canceled	(321,543	)	25.12
Outstanding at June 30, 2017	7,581,954		$	16.96	7.76	$	32,554

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, 2017 and 2016 (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Research and development	$	2,459	$	2,641	$	5,115	$	5,127
Selling, general & administrative	4,780		4,852		9,217		9,159
Total	$	7,239	$	7,493	$	14,332	$	14,286

INVENTORY (Tables)

6 Months Ended

Jun. 30, 2017

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory, net of reserves, consisted of the following at June 30, 2017 and December 31, 2016 (in thousands):



	June 30, 2017		December 31, 2016
Raw materials	$	2,938	$	1,336
Finished goods	1,431		1,490
Total inventory	$	4,369	$	2,826

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Income tax expense (benefit)	$ (1,925)	$ (7,392)	$ (3,989)	$ (12,462)
Marketable securities	206,716		206,716		$ 214,871
Accounting Standards Update 2016-09
Debt Instrument [Line Items]
Income tax expense (benefit)	$ 100		$ 400
New Accounting Pronouncement, Early Adoption, Effect
Debt Instrument [Line Items]
Reversal of prepaid tax asset related to intra-entity transfer					4,900
New Accounting Pronouncement, Early Adoption, Effect \| Retained Earnings
Debt Instrument [Line Items]
Cumulative effect of new accounting principle in period of adoption					$ 4,900

INCOME TAXES Summary of Effective Tax Rate and Income Tax Benefit (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Effective tax rate	12.70%	35.60%	14.10%	85.10%	150000000.00%
Income tax benefit	$ 1,925	$ 7,392	$ 3,989	$ 12,462

INCOME TAXES Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
INCOME TAXES Additional Information (Details) - USD ($)	Apr. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Effective tax rate		12.70%	35.60%	14.10%	85.10%	150000000.00%
Income tax benefit		$ 1,925,000	$ 7,392,000	$ 3,989,000	$ 12,462,000
Unrecognized tax benefits		1,500,000		$ 1,500,000
Unrecognized tax benefits, income tax penalties and interest expense		$ 0
Change in prior period income tax expense(benefit) due to internal revenue service audit findings	$ 0

BUSINESS COMBINATION (Details) - Liquid Ursodeoxycholic Acid (L-UDCA) $ in Thousands	Jun. 16, 2016 USD ($)
Business Acquisition [Line Items]
Intangible assets acquired	$ 25,500
Present value of contingent consideration	$ 25,000
Discount rate percentage	12.00%
Product rights
Business Acquisition [Line Items]
Assets useful life (in years)	17 years

BUSINESS COMBINATION - Purchase Price Allocation (Details) - USD ($) $ in Thousands		6 Months Ended
	Jun. 16, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition [Line Items]
Cash paid upon consummation		$ 0	$ 500
Liquid Ursodeoxycholic Acid (L-UDCA)
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

MARKETABLE SECURITIES - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Proceeds from the sale/maturity of marketable securities	$ 43,940	$ 59,874

MARKETABLE SECURITIES - Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	$ 206,716	$ 214,871
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	18,970	30,303
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	142,949	134,570
Securities of government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	$ 44,797	$ 49,998

MARKETABLE SECURITIES - Available for Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 207,086	$ 215,414
Unrealized Gains	18	7
Unrealized Losses	(388)	(550)
Aggregate Estimated Fair Value	206,716	214,871
Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	134,608	114,624
Unrealized Gains	5	7
Unrealized Losses	(206)	(128)
Aggregate Estimated Fair Value	134,407	114,503
1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	72,478	100,790
Unrealized Gains	13	0
Unrealized Losses	(182)	(422)
Aggregate Estimated Fair Value	72,309	100,368
Commercial paper \| Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	18,972	30,330
Unrealized Gains	0	0
Unrealized Losses	(2)	(27)
Aggregate Estimated Fair Value	18,970	30,303
Corporate debt securities \| Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	88,018	64,794
Unrealized Gains	0	7
Unrealized Losses	(168)	(91)
Aggregate Estimated Fair Value	87,850	64,710
Corporate debt securities \| 1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	55,238	70,207
Unrealized Gains	0	0
Unrealized Losses	(139)	(347)
Aggregate Estimated Fair Value	55,099	69,860
Securities of government sponsored entities \| Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	27,618	19,500
Unrealized Gains	5	0
Unrealized Losses	(36)	(10)
Aggregate Estimated Fair Value	27,587	19,490
Securities of government sponsored entities \| 1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	17,240	30,583
Unrealized Gains	13	0
Unrealized Losses	(43)	(75)
Aggregate Estimated Fair Value	$ 17,210	$ 30,508

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Warrant $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) tranche	Jun. 30, 2016 USD ($)
Derivative [Line Items]
Number of tranches \| tranche			5
Loss on derivative instruments, pretax	$ 1,300	$ 9,100	$ 20
Recorded gain on change in estimated fair value of warrants				$ 5,300

DERIVATIVE FINANCIAL INSTRUMENTS - Valuation Assumptions (Details) - Warrant - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Loss on derivative instruments, pretax	$ 1,300	$ 9,100	$ 20
Fair value of common stock (in dollars per share)	$ 19.39		$ 19.39	$ 18.93
Dividend yield			0.00%	0.00%
Minimum
Derivative [Line Items]
Remaining life of the warrants (in years)			7 months 6 days	1 year 2 months 12 days
Risk-free interest rate			1.20%	0.89%
Expected volatility			34.00%	55.00%
Maximum
Derivative [Line Items]
Remaining life of the warrants (in years)			2 years 6 months	3 years
Risk-free interest rate			1.50%	1.48%
Expected volatility			56.00%	75.00%

FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition [Line Items]
Fair value of convertible debt	$ 61,200		$ 61,200
Change in fair value of contingent consideration	$ 3,284	$ 2,789	6,628	$ 5,485
Increase from revaluation of contingent consideration			(553)	(550)
Product Rights Chenodal
Business Acquisition [Line Items]
Increase from revaluation of contingent consideration			2,800	2,900
Product Rights Cholbam
Business Acquisition [Line Items]
Increase from revaluation of contingent consideration			2,200	$ 2,600
Product Rights L-UDCA
Business Acquisition [Line Items]
Increase from revaluation of contingent consideration			$ 1,600

FAIR VALUE MEASUREMENTS - Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets:
Marketable securities, available for sale	$ 206,716	$ 214,871
Derivative liability related to warrants
Derivative liability related to warrants	22,460	22,440
Recurring basis
Assets:
Cash and cash equivalents		41,002
Marketable securities, available for sale	206,716	214,871
Total	206,716	255,873
Derivative liability related to warrants
Derivative liability related to warrants	22,460	22,440
Business combination-related contingent consideration	91,167	87,478
Total	113,627	109,918
Recurring basis \| Quoted prices in active markets (Level 1)
Assets:
Cash and cash equivalents		39,929
Marketable securities, available for sale	0	0
Total	0	39,929
Derivative liability related to warrants
Derivative liability related to warrants	0	0
Business combination-related contingent consideration	0	0
Total	0	0
Recurring basis \| Significant other observable inputs (Level 2)
Assets:
Cash and cash equivalents		1,073
Marketable securities, available for sale	206,716	214,871
Total	206,716	215,944
Derivative liability related to warrants
Derivative liability related to warrants	0	0
Business combination-related contingent consideration	0	0
Total	0	0
Recurring basis \| Significant unobservable inputs (Level 3)
Assets:
Cash and cash equivalents		0
Marketable securities, available for sale	0	0
Total	0	0
Derivative liability related to warrants
Derivative liability related to warrants	22,460	22,440
Business combination-related contingent consideration	91,167	87,478
Total	$ 113,627	$ 109,918

FAIR VALUE MEASUREMENTS - Warrants Liability (Details) - Warrants liability $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at January 1, 2017	$ 22,440
Change in estimated fair value of liability classified warrants	20
Balance at June 30, 2017	$ 22,460

FAIR VALUE MEASUREMENTS - Acquisition-related Contingent Consideration (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Business Combination, Acquisition Related Contingent Consideration [Roll Forward]
Increase from revaluation of contingent consideration	$ (553)	$ (550)
Recurring basis \| Level 3
Business Combination, Acquisition Related Contingent Consideration [Roll Forward]
Balance at January 1, 2017	87,478
Increase from revaluation of contingent consideration	6,628
Contractual payments accrued at June 30, 2017	(1,478)
Contractual payments	(1,808)
Foreign currency impact	347
Balance at June 30, 2017	$ 91,167

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Net book value of amortizable intangible assets	$ 180,368	$ 182,043

INTANGIBLE ASSETS - Amortizable Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets	$ 222,482	$ 215,540
Less: accumulated amortization	(42,114)	(33,497)
Net carrying value	$ 180,368	$ 182,043

INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 4,319	$ 3,910	$ 8,490	$ 7,795
Research and development
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	81	81	162	163
Selling, general and administrative
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 4,238	$ 3,829	$ 8,328	$ 7,632

CONVERTIBLE NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016	May 29, 2014
Debt Instrument [Line Items]
Convertible debt	$ 44,747,000	$ 44,422,000
Note Purchase Agreement \| Senior convertible notes due 2019
Debt Instrument [Line Items]
Credit agreement amount			$ 46,000,000.0
Initial conversion price (in dollars per share)			$ 17.41
Interest rate percentage			4.50%

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Government rebates payable	$ 4,832	$ 6,967
Compensation related costs	5,303	7,441
Accrued royalties and contingent consideration	5,922	5,766
Research and development	5,744	7,311
Selling, general and administrative	3,174	3,333
Miscellaneous accrued	2,622	2,490
Total accrued expenses	$ 27,597	$ 33,308

LOSS PER COMMON SHARE - EPS Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Shares
Basic net loss per share (in shares)	39,041,145	36,683,429	38,545,982	36,601,807
Change in fair value of derivative instruments (in shares)			0	0
Dilutive shares related to warrants (in shares)			0	1,461,478
Weighted average common shares outstanding, diluted (in shares)	39,041,145	36,683,429	38,545,982	38,063,285
Net Loss
Net loss	$ (13,229)	$ (13,403)	$ (24,319)	$ (2,187)
Change in fair value of derivative instruments			0	(5,277)
Dilutive shares related to warrants			0	0
Dilutive net earnings (loss) per share	$ (13,229)	$ (13,403)	$ (24,319)	$ (7,464)
Net earnings (loss) per common share, basic (in dollars per share)	$ (0.34)	$ (0.37)	$ (0.63)	$ (0.06)
Net earnings (loss) per common share, diluted (in dollars per share)	$ (0.34)	$ (0.37)	$ (0.63)	$ (0.20)

LOSS PER COMMON SHARE - Antidilutive Shares (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	11.6	11.7	11.3	8.8
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	0.2	0.3	0.2	0.3
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	2.6
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	7.0	6.1	6.7	5.9
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	1.8	2.7	1.8	0.0

COMMITMENTS AND CONTINGENCIES Leases and Subleases Commitment (Details) - Lease Agreement	6 Months Ended
	Jun. 30, 2017 USD ($)
San Diego CA- Corporate
Other Commitments [Line Items]
Annual Base Rent	$ 1,100,000.0
CALIFORNIA
Other Commitments [Line Items]
Annual Base Rent	500,000.0
NEW YORK
Other Commitments [Line Items]
Annual Base Rent	$ 500,000.0

COMMITMENTS AND CONTINGENCIES - Contractual Commitments (Details) $ in Thousands	Jun. 30, 2017 USD ($)
Operating leases
Total	$ 10,154
Less than 1 year	2,208
1-3 years	2,620
3-5 years	4,520
More than 5 years	806
Guaranteed Minimum Royalty [Abstract]
Total	14,000
Less than 1 year	2,000
1-3 years	4,000
3-5 years	4,000
More than 5 years	4,000
Purchase order commitments
Total	681
Less than 1 year	368
1-3 years	313
3-5 years	0
More than 5 years	0
Total
Total	80,152
Less than 1 year	9,150
1-3 years	56,080
3-5 years	9,353
More than 5 years	5,569
Convertible note payable, including contractual interest
Other commitments
Total	49,967
Less than 1 year	2,070
1-3 years	47,897
3-5 years	0
More than 5 years	0
Sales support services
Other commitments
Total	2,845
Less than 1 year	416
1-3 years	833
3-5 years	833
More than 5 years	763
Product supply contracts
Other commitments
Total	2,505
Less than 1 year	2,088
1-3 years	417
3-5 years	0
More than 5 years	$ 0

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - Martin Shkreli - USD ($) $ in Thousands				1 Months Ended		3 Months Ended	6 Months Ended	12 Months Ended	16 Months Ended	24 Months Ended
	Apr. 22, 2016	Dec. 17, 2015	Sep. 19, 2014	Apr. 30, 2017	Nov. 30, 2016	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2016
Commitment And Contingency [Line Items]
Loss contingency, damages sought, value		$ 5,000
Legal fees paid in advance					$ 2,800			$ 1,800		$ 2,800
Contingent future legal fee advance payment					$ 2,000
Legal fees paid in advance, trial fees										$ 2,000
Legal fees reimbursed from director and officer insurance carriers							$ 700	700
Legal fees				$ 2,000				5,200
Payments for legal settlements						$ 2,000	$ 3,000	$ 2,300
Retrophin, Inc. v. Shkreli
Commitment And Contingency [Line Items]
Litigation settlement, amount awarded from other party			$ 2,025
Legal fees paid in advance	$ 400								$ 2,800

SHARE BASED COMPENSATION - Restricted Stock Activity (Details) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017 USD ($) $ / shares shares	Jun. 30, 2017 USD ($) $ / shares shares
Restricted stock units
Number of Restricted Stock Units
Beginning Balance (in shares)		407,746,000
Granted (in shares)		157,750,000
Vested (in shares)		(118,334,000)
Forfeited/canceled (in shares)		(3,500,000)
Ending Balance (in share)	443,662,000	443,662,000
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares		$ 19.88
Granted (in dollars per share) \| $ / shares		18.32
Vested (in dollars per share) \| $ / shares		15.91
Forfeited/canceled (in dollars per share) \| $ / shares		23.85
Ending balance (in dollars per share) \| $ / shares	$ 20.35	$ 20.35
Unamortized stock compensation expense \| $	$ 4.5	$ 4.5
Weighted-average recognition period (in years)		1 year 2 months 12 days
Performance Based Restricted Stock Awards
Number of Restricted Stock Units
Granted (in shares)	78,500	108,500

SHARE BASED COMPENSATION - Stock Option Activity (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Weighted Average Exercise Price
Number of shares exercisable (in shares)	4,200,000
Weighted average exercise price (in dollars per share)	$ 15.24
Stock Options
Shares Underlying Options
Beginning Balance (in shares)	6,430,570
Granted (in shares)	1,738,800
Exercised (in shares)	(265,873)
Forfeited/canceled (in shares)	(321,543)
Ending Balance (in shares)	7,581,954	6,430,570
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 16.91
Granted (in dollars per share)	17.78
Exercised (in dollars per share)	11.30
Forfeited/canceled (in dollars per share)	25.12
Ending balance (in dollars per share)	$ 16.96	$ 16.91
Weighted Average Remaining Contractual Life (years)	7 years 9 months 4 days	7 years 7 months 21 days
Aggregate Intrinsic Value (in thousands)	$ 32,554,000	$ 30,088
Unamortized stock compensation expense	$ 38,000,000
Weighted-average recognition period (in years)	2 years 8 months 12 days

SHARE BASED COMPENSATION - Stock based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 7,239	$ 7,493	$ 14,332	$ 14,286
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2,459	2,641	5,115	5,127
Selling, general & administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 4,780	$ 4,852	$ 9,217	$ 9,159

SHARE BASED COMPENSATION - Exercise of Warrants (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Equity [Abstract]
Warrants exercised (in shares)		0
Reclassification of derivative liability to equity upon exercise of warrants	$ 0
Warrants outstanding (in shares)	1,766,905	1,766,905	1,766,905

INVENTORY (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 2,938	$ 1,336
Finished goods	1,431	1,490
Total inventory	4,369	2,826
Inventory reserve	$ 500	$ 600

RECEIVABLES (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
RECEIVABLES (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net of reserves		$ 13,321		$ 18,510
Proceeds from maturity of note receivable		47,500	$ 0
Notes receivable		0		$ 46,849
Asklepion Pharmaceuticals, LLC \| Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from maturity of note receivable	$ 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 maturity of note receivable	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 maturity of note receivable	$ 47,500
Interest expense \| Asklepion Pharmaceuticals, LLC \| Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accretion on notes receivable		$ 600