Intercept Pharmaceuticals (ICPT) 10-Q 9 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	INTERCEPT PHARMACEUTICALS INC
Entity Central Index Key	1,270,073
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Trading Symbol	icpt
Entity Common Stock, Shares Outstanding		24,726,376
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 51,701	$ 32,742
Restricted cash	45,000
Investment securities, available-for-sale	387,786	595,313
Prepaid expenses and other current assets	20,781	13,638
Total current assets	505,267	641,693
Fixed assets, net	12,530	10,047
Security deposits	6,377	4,018
Total assets	524,174	655,758
Current liabilities:
Accounts payable, accrued expenses and other liabilities	42,693	45,591
Litigation settlement	55,000
Short-term portion of deferred revenue	4,462	1,782
Total current liabilities	102,155	47,373
Long-term liabilities:
Long-term portion of deferred revenue	5,345	6,236
Total liabilities	107,500	53,609
Stockholders' equity:
Common stock 35,000,000 shares authorized; 24,675,929, and 24,391,430 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively; par value $0.001 per share	25	24
Additional paid-in capital	1,317,412	1,300,008
Accumulated other comprehensive income (loss), net	(1,160)	(2,253)
Accumulated deficit	(899,603)	(695,630)
Total stockholders' equity	416,674	602,149
Total liabilities and stockholders' equity	$ 524,174	$ 655,758

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Common stock, authorized	35,000,000	35,000,000
Common stock, shares, issued	24,675,929	24,391,430
Common stock, shares, outstanding	24,675,929	24,391,430
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Product revenue, net	$ 75		$ 75
Licensing revenue	5,445	$ 445	5,891	$ 1,891
Total revenue	5,520	445	5,966	1,891
Costs and expenses:
Research and development	41,340	28,295	78,753	56,260
General and administrative	42,275	20,974	132,707	34,112
Total costs and expenses	83,615	49,269	211,460	90,372
Other income (expense):
Other income, net	796	930	1,521	1,201
Total other income (expense)	796	930	1,521	1,201
Net loss	$ (77,299)	$ (47,894)	$ (203,973)	$ (87,280)
Net Loss Per Share [Abstract]
Net loss per share, basic and diluted (in dollars per share)	$ (3.14)	$ (1.99)	$ (8.31)	$ (3.78)
Weighted average shares outstanding, basic and diluted	24,611,631	24,014,092	24,553,239	23,100,222

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Comprehensive Loss:
Net loss	$ (77,299)	$ (47,894)	$ (203,973)	$ (87,280)
Unrealized holding gains (losses) arising during the period	305	(895)	2,038	(682)
Reclassification for recognized gains (losses) on marketable investment securities during the period	29		(51)	2
Net unrealized gains (losses) on marketable investment securities	334	(895)	1,987	(680)
Foreign currency translation adjustments	(368)	338	(894)	176
Comprehensive loss	$ (77,333)	$ (48,451)	$ (202,881)	$ (87,784)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (203,973)	$ (87,280)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation	14,497	16,369
Depreciation	1,544	646
Amortization of investment premium	2,664	2,595
Changes in:
Prepaid expenses, other current assets and security deposits	(9,501)	(3,581)
Accounts payable, accrued expenses, and other current liabilities	(2,898)	8,547
Litigation settlement	55,000
Deferred revenue	1,790	(891)
Net cash used in operating activities	(140,877)	(63,595)
Cash flows from investing activities:
Purchases of investment securities	(35,318)	(524,054)
Sales of investment securities	242,117	96,418
Litigation settlement (Restricted cash)	(45,000)
Purchases of equipment, leasehold improvements, and furniture and fixtures	(4,187)	(4,177)
Net cash provided by (used in) investing activities	157,612	(431,813)
Cash flows from financing activities:
Proceeds from issuance of stock offerings, net of issuance costs		558,930
Proceeds from exercise of options	2,906	4,536
Net cash provided by financing activities	2,906	563,466
Effect of exchange rate changes	(682)	176
Net increase in cash and cash equivalents	18,959	68,234
Cash and cash equivalents - beginning of period	32,742	20,023
Cash and cash equivalents - end of period	$ 51,701	$ 88,257

Overview of Business

Overview of Business	6 Months Ended
	Jun. 30, 2016
Nature of Business and Basis of Presentation [Abstract]
Nature of Business and Basis of Presentation	TM  1. Overview of Business  Intercept Pharmaceuticals, Inc. (“Intercept” or the “Company”) is a biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat non-viral, progressive liver diseases. The Company’s product candidates have the potential to treat orphan and more prevalent liver diseases for which there currently are limited therapeutic solutions. Intercept was incorporated in Delaware in September 2002.  The Company has its principal executive offices in New York, New York . The Company also has administrative offices in San Diego, California and London, United Kingdom.  Basis of Presentation  The Company’s financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates .  Use of Estimates  The preparation of these financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, expenses, revenues and related disclosures. On an ongoing basis, management evaluates estimates, clinical trial accruals and share-based compensation expense. The Company bases its estimates on historical experience and other market-specific or other relevant assumptions that it believes to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	  2. Summary of Significant Accounting Policies  The Company’s significant accounting policies are described in Note 3 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.  Revenue Recognition Product Revenue, Net Revenue is recognized when the four basic criteria of revenue recognition are met: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collect ability is reasonably assured. When the revenue recognition criteria are not met, we defer the recognition of revenue by recording deferred revenue on the balance sheet until such time that all criteria are met. Beginning in June 2016, subsequent to the U.S. Food and Drug Administration (FDA) approval of Ocaliva ® (obeticholic acid) for the treatment of primary biliary cirrhosis (PBC ) in May 2016, the Company sells Ocaliva in the United States principally to a limited number of specialty pharmacies which dispense the product directly to patients. The specialty pharmacies are referred to as the Company’s customers . The Company provides the right of return to its customers for unopened product for a limited time before and after its expiration date. Given the Company’s limited sales history for Ocaliva and the inherent uncertainties in estimating product returns, the Company has determined that the shipments of Ocaliva made to its customers thus far do not meet the criteria for revenue recognition at the time of shipment. Accordingly, the Company recognizes revenue when the product is sold through by its customers, provided all other revenue recognition criteria are met. The Company invoices its customers upon shipment of Ocaliva to them and records accounts receivable, with a corresponding liability for deferred revenue equal to the gross invoice price. The Company then recognizes revenue when Ocaliva is sold through as specialty pharmacies dispense product directly to the patients. The Company recognized net sales of Ocaliva for the second quarter 2016 of $75 thousand pursuant to the product launch in June 2016 . The Company also recorded $2.7 million in deferred revenues on its balance sheet, which represents product shipped to distributors, bu t not sold through as of June 30, 2016 . The Company has written contracts with each of its customers and delivery occurs when the customer receives Ocaliva. The Company evaluates the creditworthiness of each of its customers to determine whether collection is reasonably assured. In order to conclude that the price is fixed and determinable, the Company must be able to (i) calculate its gross product revenues from the sales to its customers and (ii) reasonably estimate its net product revenues. The Company calculates gross product revenues based on the wholesale acquisition cost that the Company charges its customers for Ocaliva. The Company estimates its net product revenues by deducting from its gross product revenues (i) trade allowances, such as invoice discounts for prompt payment and customer fees, (ii) estimated government rebates and discounts related to Medicare, Medicaid and othe r government programs , and (iii) estimated costs of incentives offered to certain indirect customers including patients. Trade Allowances The Company provides invoice discounts on Ocaliva sales to certain of its customers for prompt payment and pays fees for certain distribution services, such as fees for certain data that its customers provide to the Company. The Company deducts the full amount of these discounts and fees from its gross product revenues at the time such discounts and fees are earned by such customers. Rebates and Discounts The Company contracts with Centers for Medicare & Medicaid Services (CMS ) and other government agencies to make Ocaliva a vailable to eligible patients. As a result, the Company estimates any rebates and discounts and deducts these estimated amounts from its gross product revenues at the time the revenues are recognized. The Company’s estimates of rebates and discounts are based on the government mandated discounts, which are statutorily-defined and applicable to these government funded programs. Government rebates that are invoiced directly to the Company are recorded in accrued liabilities on the conden sed consolidated balance sheet. Gross-to-net adjustments were insignificant for the period ended June 30, 2016. Other Incentives Other incentives that the Company offers to indirect customers include co-pay assistance cards provided by the Company for PBC patients whom reside in states that permit co-pay assistance programs. The Company’s co-pay assistance program is intended to reduce each participating patient’s portion of the financial responsibility for Ocaliva purchase price to a specified dollar amount. The Company records each period the amount of co-pay assistance provided to eligible patients based on the terms of the program when product is dispensed by the specialty pharmacies to the patients.

Significant Agreements

Significant Agreements	6 Months Ended
	Jun. 30, 2016
Significant Agreements [Abstract]
Significant Agreements	  3. Significant Agreements Sumitomo Dainippon Pharma Co, Ltd. (Sumitomo Dainippon) In March 2011, the Company entered into an exclusive license agreement with Sumitomo Dainippon to research, develop and commercialize obeticholic acid (OCA) as a therapeutic for the treatment of primary biliary cirrhosis, recently renamed primary biliary cholangitis (PBC) and nonalcoholic steatohepatitis (NASH) in Japan and China (excluding Taiwan). Under the terms of the license agreement, the Company received an up-front payment from Sumitomo Dainippon of $15.0 million and may be eligible to receive additional milestone payments of up to an aggregate of approximately $30.0 million in development milestones based on the initiation or completion of clinical trials, $70.0 million in regulatory approval milestones and $200.0 million in sales milestones. The regulatory approval milestones include $15.0 million for receiving marketing approval of OCA for NASH in Japan, $10.0 million for receiving marketing approval of OCA for NASH in China, and $5.0 million for receiving marketing approval of OCA for PBC in the United States , which was recently achieved upon the FDA approval of Ocaliva for the treatment of PBC in May 2016. As of June 30, 2016, the Company had achieved $6.0 million of the development milestones under its collaboration agreement with Sumitomo Dainippon. The sales milestones are based on aggregate sales amounts of OCA in the Sumitomo Dainippon territory and include $5.0 million for achieving net sales of $50.0 million, $10.0 million for achieving net sales of $100.0 million, $20.0 million for achieving net sales of $200.0 million, $40.0 million for achieving net sales of $400.0 million and $120.0 million for achieving net sales of $1.2 billion. The Company has determined that each potential future development, regulatory and sales milestone is substantive. In May 2014, Sumitomo Dainippon exercised its option under the license agreement to add Korea as part of its licensed territories and paid the Company a $1.0 million up-front fee. Sumitomo Dainippon has the option to add several other Asian countries to its territory to pursue OCA for additional indications. Sumitomo Dainippon will be responsible for the costs of developing and commercializing OCA in its territories. Sumitomo Dainippon is also required to make royalty payments ranging from the tens to the twenties in percent based on net sales of OCA products in the Sumitomo Dainippon territory. The Company evaluated the license agreement with Sumitomo Dainippon and determined that it is a revenue arrangement with multiple deliverables, or performance obligations. The Company’s substantive performance obligations under this license include an exclusive license to its technology, technical and scientific support to the development plan and participation on a joint steering committee. The Company determined that these performance obligations represent a single unit of accounting, since, initially, the license does not have stand-alone value to Sumitomo Dainippon without the Company’s technical expertise and steering committee participation during the development of OCA. This development period is currently estimated as continuing through June 2020 and, as such, the up-front payment and payments made in respect of the Korea option are being recognized ratably over this period. During the three months ended June 30, 2016 and 2015 , the Company recorded licensing revenue of approximately $5.4 million and $0.4 million , respectively , and during the six months ended June 30 2016 and 2015, the Company recorded revenue of approximately $ 5 .9 million and $1.9 million , respectively .   Leases In January 2016, Intercept Pharma Europe Ltd. (IPEL), a wholly owned subsidiary of the Company, entered into an underlease with Performing Right Society, Ltd., for additional office space in the King’s Cross area of London, United Kingdom. The Company is the guarantor to the underlease. The underlease provides IPEL with an additional 8,549 square feet of space. The lease term is anticipated to end in May 2024. The annual rent is approximately £ 726,665 (or approximately $1.0 million), payable quarterly. IPEL is also required to pay value added tax (VAT) on the rent. IPEL will be responsible for a portion of the insurance, certain service charges and taxes for the building based on the floor area rented by them. As security for the underlease, IPEL has provided the landlord with a rent deposit in an amount equal to twelve months’ rent, plus applicable VAT. The underlease is subject to an “upwards only” open market rent review of the market rent with review to take place in June 2019. In February 2016, the Company entered into a sublease with Restoration Hardware, Inc. for additional office space in New York City. The sublease provides the Company with an additional 10,785 square feet of space. The lease term is anticipated to end in February 2021. The annual rent is approximately $1.0 million payable monthly. The Company is also responsible for its proportionate share of increases in operating expenses beginning January 2017 as well as its proportionate share of increases in real estate taxes over the average of the 2015/2016 and 2016/2017 fiscal years. As security for the sublease, the Company delivered a letter of credit in the amount of approximately $0.3 million in favor of the sublandlord. Security for these leases is included on the condensed consolidated balance sheet s in “Security Deposits.”

Investments

Investments	6 Months Ended
	Jun. 30, 2016
Investments [Abstract]
Investments	  4. Investments The following table summarizes the Company’s cash, cash equivalents and investments as of June 30, 2016 and December 31, 2015:   As of June 30, 2016  Gross Gross  Amortized Cost Unrealized Unrealized Fair Value  Gains Losses   (In thousands)  Cash and cash equivalents:  Cash and money market funds $ 51,701 $ - $ - $ 51,701  Investment securities:  Commercial paper 1,999 - - 1,999  U.S. government and agency securities 41,841 21 (3) 41,859  Corporate debt securities 343,861 217 (150) 343,928  Total investments 387,701 238 (153) 387,786  Total cash, cash equivalents and investments $ 439,402 $ 238 $ (153) $ 439,487        As of December 31, 2015  Gross Gross  Amortized Cost Unrealized Unrealized Fair Value  Gains Losses   (In thousands)  Cash and cash equivalents:  Cash and money market funds $ 32,742 $ - $ - $ 32,742  Investment securities:  Commercial paper 1,993 - (3) 1,990  U.S. government and agency securities 65,854 1 (182) 65,673  Corporate debt securities 529,368 2 (1,720) 527,650  Total investments 597,215 3 (1,905) 595,313  Total cash, cash equivalents and investments $ 629,957 $ 3 $ (1,905) $ 628,055  As of June 30, 2016, there were no marketable securities in a continuous unrealized loss position for more than twelve months.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Taxes [Abstract]
Income Taxes	  5. Income Taxes For the six months ended June 30, 2016 and 2015, no income tax expense or benefit was recognized. The Company’s deferred tax assets are comprised primarily of net operating loss carryforwards (NOLs). The Company maintains a full valuation allowance on its deferred tax assets since it has not yet achieved sustained profitable operations. As a result, the Company has not recorded any income tax benefit since its inception. As of June 30, 2016 and December 31, 2015, the Company had NOLs for U.S. federal income tax purposes of $472.5 million and $454.4 million, respectively, which expire between 2024 and 2036 . The Company also has certain state and foreign NOLs in varying amounts depending on the different state and foreign tax laws. The U.S. federal NOLs include approximately $158.1 million and $151.0 million, respectively, of excess tax benefits related to stock-based payments that are not recognized as a deferred tax asset. The benefit of these deductions will be recognized through additional paid-in capital at the time the tax deduction results in a reduction of current taxes payable. The Company’s ability to utilize its NOLs may be limited under Section 382 of the Internal Revenue Code due to previous ownership changes. Although the Company believes that these ownership changes have not resulted in material limitations on its ability to use these NOLs, its ability to utilize these NOLs may be limited due to future ownership changes or for other reasons. Additionally, tax laws limit the time during which NOLs and certain other tax attributes may be utilized against future taxes. As a result, the Company may not be able to take full advantage of its carryforwards for federal, state, and foreign tax purposes. 

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements [Abstract]
Fair Value Measurements	  6. Fair Value Measurements The carrying amounts of the Company’s receivables and payables approximate their fair value due to their short maturities. Accounting principles provide guidance for using fair value to measure assets and liabilities. The guidance includes a three level hierarchy of valuation techniques used to measure fair value, defined as follows: · Unadjusted Quoted Prices — The fair value of an asset or liability is based on unadjusted quoted prices in active markets for identical assets or liabilities (Level 1). · Pricing Models with Significant Observable Inputs — The fair value of an asset or liability is based on information derived from either an active market quoted price, which may require further adjustment based on the attributes of the financial asset or liability being measured, or an inactive market transaction (Level 2). · Pricing Models with Significant Unobservable Inputs — The fair value of an asset or liability is primarily based on internally derived assumptions surrounding the timing and amount of expected cash flows for the financial instrument. Therefore, these assumptions are unobservable in either an active or inactive market (Level 3). The Company considers an active market as one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, the Company views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. When appropriate, non-performance risk, or that of a counterparty, is considered in determining the fair values of liabilities and assets, respectively.  The Company’s cash deposits and money market funds are classified within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. Investments are classified as Level 2 instruments based on market pricing or other observable inputs. None of the Company’s investments are classified within Level 3 of the fair value hierarchy.              Financial assets and liabilities, carried at fair value are classified in the tables below in one of the three categories described above:          Fair Value Measurements Using  Total Level 1 Level 2 Level 3   (In thousands)  June 30, 2016  Assets:  Money market funds $ 12,500 $ 12,500 $ - $ -  Available for sale securities: -  Commercial paper 1,999 - 1,999 $ -  Corporate debt securities 41,859 - 41,859 -  U.S. government and agency securities 343,928 - 343,928 -  Total financial assets: $ 400,286 $ 12,500 $ 387,786 $ -   December 31, 2015  Assets:  Money market funds $ 4,826 $ 4,826 $ - $ -  Available for sale securities:  Commercial paper 1,990 - 1,990 -  Corporate debt securities 527,650 - 527,650 -  U.S. government and agency securities 65,673 - 65,673 -  Total financial assets $ 600,139 $ 4,826 $ 595,313 $ -  The estimated fair value of marketable debt securities (commercial paper, corporate debt securities and U.S. government and agency securities), by contractual maturity, are as follows:       Fair Value as of  June 30, 2016 December 31, 2015   (In thousands)  Due in one year or less $ 300,527 $ 343,758  Due after 1 year through 2 years 87,259 251,555  Total investments in debt securities $ 387,786 $ 595,313  Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.  Common Stock As of June 30, 2016 and December 31, 2015, the Company had 35,000,000 authorized shares of common stock, $0.001 par value per share. At the 2016 annual meeting of stockholders held on July 19, 2016, the Company’s stockholders approved an amendment to the Company’s restated certificate of incorporation, as amended, to increase the number of authorized shares of common stock from 35,000,000 shares to 45,000,000 shares. In February 2015, the Company completed a public offering of 1,150,000 shares of its common stock pursuant to a registration statement on Form S-3. After underwriting discounts and commissions and offering expenses, the Company received net proceeds of approximately $191.6 million. In April 2015, the Company completed a public offering of 1,330,865 shares of its common stock pursuant to a registration statement on Form S-3. After underwriting discounts and commissions and offering expenses, the Company received net proceeds of approximately $367.1 million.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Stock-Based Compensation [Abstract]
Stock-Based Compensation	  7. Stock-Based Compensation The 2012 Equity Incentive Plan (2012 Plan) became effective upon the pricing of the IPO in October 2012. At the same time, the 2003 Stock Incentive Plan (2003 Plan) was terminated and 555,843 shares available under the 2003 Plan were added to the 2012 Plan. The estimated fair value of the options that have been granted under the 2003 and 2012 Plans is determined utilizing the Black-Scholes option-pricing model at the date of grant. The fair value of restricted stock units (RSUs) and restricted stock awards (RSAs) that have been granted under the 2012 Plan is determined utilizing the closing stock price on the date of grant. The following table summarizes stock option activity during the six months ended June 30, 2016:        Weighted  Number of Average  Shares Exercise Price   Outstanding, December 31, 2015 1,348,000 $ 108.49  Granted 392,415 $ 105.41  Exercised (79,179) $ 36.71  Expired (4,119) 128.3  Forfeited (17,126) $ 156.92  Outstanding, June 30, 2016 1,639,991 $ 110.66   Exercisable, June 30, 2016 747,123 $ 71.49  The following table summarizes the aggregate RSU and RSA activity during the six months ended June 30, 2016:      Number of Shares Weighted Average Fair Value Aggregate Intrinsic Value (In thousands)   Non-vested shares outstanding, December 31, 2015 193,164 $ 183.19 $ 28,849  Granted 244,694 $ 109.60 $ 34,913  Exercised (47,004) $ 145.28 $ (6,707)  Forfeited (8,199) $ 185.98 $ (1,170)  Non-vested shares outstanding, June 30, 2016 382,655 $ 140.73 $ 54,597  As of June 30, 2016, there was $47.6 million of unrecognized compensation expense related to unvested RSUs and RSAs, which is expected to be recognized over a weighted average of 2.82 years.        The following table summarizes additional information about unvested RSUs and RSAs outstanding:      Number Intrinsic Value  of Shares Price (In thousands)  Employees and directors 379,105 $142.68 $ 54,091  Consultants 3,550 $142.68 506  Outstanding at June 30, 2016 382,655 $ 54,597 

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2016
Net Loss Per Share [Abstract]
Net Loss Per Share	    8. Net Loss Per Share The following table presents the historical computation of basic and diluted net loss per share:       Three Months Six Months  Ended June 30, Ended June 30,  2016 2015 2016 2015   (In thousands, except share and per share amounts)  Historical net loss per share  Numerator:  Net loss attributable to common stockholders $ (77,299) $ (47,894) $ (203,973) $ (87,280)  Denominator:  Weighted average shares used in calculating net loss per share - basic and diluted 24,611,631 24,014,092 24,553,239 23,100,222   Net loss per share:  Basic and diluted $ (3.14) $ (1.99) $ (8.31) $ (3.78)  The following potentially dilutive securities have been excluded from the computations of diluted weighted average shares outstanding:        Three Months Ended June 30, Six Months Ended June 30,  2016 2015 2016 2015   (In thousands)   Options 1,640 1,232 1,640 1,232  Restricted stock units 383 37 383 37  Total 2,023 1,269 2,023 1,269 

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	9. Recent Accounting Pronouncements . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-2”) which supersedes Topic 840, Leases. ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability on their balance sheets for all the leases with terms greater than twelve months. Based on certain criteria, leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-2 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients primarily focused on leases that commenced before the effective date of Topic 842, including continuing to account for leases that commence before the effective date in accordance with previous guidance, unless the lease is modified. The Company is evaluating the impact of the adoption of the standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes certain aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; and (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. The Company is evaluating the impact of the adoption of the standard on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue From Contracts With Customers (Topic 606), which covers principal versus agent considerations. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in the update do not change the core principle of the guidance. The amendments clarify the implementation guidance on principal versus agent considerations. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of update 2014-09, accounting standards update 2015-14 Revenue From Contracts with Customers (Topic 606). The effective date of update 2014-09 was deferred by one year. The Company is evaluating the impact of the adoption of the standard on its consolidated financial statements.

Litigation

Litigation	6 Months Ended
	Jun. 30, 2016
Litigation [Abstract]
Litigation	10. Litigation On February 21, 2014 and February 28, 2014 , purported shareholder class actions, styled Scot H. Atwood v. Intercept Pharmaceuticals, Inc. et al. and George Burton v. Intercept Pharmaceuticals, Inc. et al. , respectively, were filed in the United States District Court for the Southern District of New York , naming the Company and certain of its officers as defendants. These lawsuits were filed by stockholders who claim to be suing on behalf of anyone who purchased or otherwise acquired the Company’s securities between January 9, 2014 and January 10, 2014.  The lawsuits alleged that the Company made material misrepresentations and/or omissions of material fact in its public disclosures during the period from January 9, 2014 to January 10, 2014, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The alleged improper disclosures relate to the Company’s January 9, 2014 announcement that the FLINT trial had been stopped early based on a pre-defined interim efficacy analysis. Specifically, the lawsuits claimed that the January 9, 2014 announcement was misleading because it did not contain information regarding certain lipid abnormalities seen in the FLINT trial in OCA-treated patients compared to placebo.  On April 22, 2014 , two individuals each moved to consolidate the cases and a lead plaintiff was subsequently appointed by the Court. On June 27, 2014, the lead plaintiff filed an amended complaint on behalf of the putative class as contemplated by the order of the Court. The lead plaintiff was seeking unspecified monetary damages on behalf of the putative class and an award of costs and expenses, including attorneys’ fees. On August 14, 2014, the defendants filed a motion to dismiss the complaint. Oral arguments on the motion to dismiss were held on February 24, 2015. On March 4, 2015, the defendants’ motion to dismiss was denied by the Court. The defendants answered the amended complaint on April 13, 2015. On July 15, 2015, the plaintiff moved for class certification and appointment of class representatives and class counsel. On September 14, 2015, the defendants opposed the plaintiff’s class certification motion. The plaintiff filed its reply to the defendants’ opposition on October 14, 2015, to which the defendants filed a sur-reply on November 10, 2015. Oral arguments on the class certification motion were held on January 20, 2016. On May 2, 2016, the defendants reached an agreement with the lead plaintiff to seek Court approval of a proposed resolution. The plaintiffs moved for preliminary approval of the proposed settlement on May 5, 2016. On May 23, 2016, the Court entered an order preliminarily approving the settlement. The Court ordered that notice be provided to the class and preliminarily approved the proposed settlement, including the payment of $55 million, of which $10 million was agreed to be funded by the Company’s insurers. The settlement was paid into escrow in June 2016, with distribution to the class to occur after the Court has finally approved the settlement and a plan of allocation of those proceeds. The Court has scheduled a hearing to consider final approval of the proposed settlement on September 8, 2016. The $45 million held in escrow pending the final approval of the settlement by the Court is accounted for as restricted cash and as an accrued liability on the Company’s June 30, 2016 consolidated balance sheet. Under the proposed settlement, the defendants do not admit any liability. The defendants also continue to deny all allegations against them and to maintain that the suit has no merit. It is anticipated that the settlement will not have a material impact on the Company’s business.  

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events On July 6, 2016, the Company issued $460.0 million aggregate principal amount of 3.25% convertible senior notes due 2023 (the “convertible notes”). After deducting the under writing discount and estimated offering expenses of approximately $12.3 million, we estimate that the net proceeds from the convertible notes offering were approximately $447.7 million. The Company used approximately $38.4 million of the net proceeds from the offering to fund the payment of the cost of the capped call transactions that were entered into in connection with the issuance of the convertible notes. The convertible notes are senior unsecured obligations of the Company. Interest is payable semi-annually on January 1 and July 1 of each year, beginning on January 1, 2017. The convertible notes mature on July 1, 2023, unless earlier repurchased, redeemed or converted. The convertible notes are convertible at the option of holders, under certain circumstances and during certain periods, into cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. The initial conversion rate of the convertible notes is 5.0358 shares of the Company’s common stock per $1,000 principal amount of convertible notes, which is equivalent to an initial conversion price of approximately $198.58 per share of the Company’s common stock. The conversion rate is subject to adjustment upon the occurrence of certain events. The Company may redeem for cash all or part of the convertible notes, at its option, on or after July 6, 2021, under certain circumstances at a redemption price equal to 100% of the principal amount of the convertible notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The capped call transactions are expected generally to reduce the potential dilution upon conversion of the convertible notes in the event that the market price per share of the Company’s common stock, as measured under the terms of the capped call transactions, is greater than the strike price of the capped call transactions, which initially corresponds to the conversion price of the convertible notes, and is subject to anti-dilution adjustments generally similar to those applicable to the conversion rate of the convertible notes. The cap price of the capped call transactions will initially be $262.2725 per share, and is subject to certain adjustments under the terms of the capped call transactions. If, however, the market price per share of the Company’s common stock, as measured under the terms of the capped call transactions, exceeds the cap price of the capped call transactions, there would nevertheless be dilution upon conversion of the convertible notes to the extent that such market price exceeds the cap price of the capped call transactions. On July 19, 2016, the Company entered into an amendment to its lease agreement with Irvine Eastgate Office II LLC for additional office space in San Diego, California. The amendment provides the Company with an additional 11,177 square feet of space. The lease term is anticipated to end in September 2019. The rent for the first year will be approximately $254,832 and will gradually increase every twelve months throughout the lease term for the additional space. The Company will be responsible for a portion of the insurance, certain service charges and taxes for the building based on the floor area rented by it. The landlord provided the Company with an allowance of approximately $22,354 for improvements to the office space. Pursuant to the terms of the amendment, the Company provided the landlord with an additional letter of credit for $26,679 . 

Overview of Business (Policy)

Overview of Business (Policy)	6 Months Ended
	Jun. 30, 2016
Nature of Business and Basis of Presentation [Abstract]
Nature of Business and Basis of Presentation	Intercept Pharmaceuticals, Inc. (“Intercept” or the “Company”) is a biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat non-viral, progressive liver diseases. The Company’s product candidates have the potential to treat orphan and more prevalent liver diseases for which there currently are limited therapeutic solutions. Intercept was incorporated in Delaware in September 2002.  The Company has its principal executive offices in New York, New York . The Company also has administrative offices in San Diego, California and London, United Kingdom.  Basis of Presentation  The Company’s financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates .
Use of Estimates	Use of Estimates  The preparation of these financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, expenses, revenues and related disclosures. On an ongoing basis, management evaluates estimates, clinical trial accruals and share-based compensation expense. The Company bases its estimates on historical experience and other market-specific or other relevant assumptions that it believes to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policy)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition Product Revenue, Net Revenue is recognized when the four basic criteria of revenue recognition are met: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collect ability is reasonably assured. When the revenue recognition criteria are not met, we defer the recognition of revenue by recording deferred revenue on the balance sheet until such time that all criteria are met. Beginning in June 2016, subsequent to the U.S. Food and Drug Administration (FDA) approval of Ocaliva ® (obeticholic acid) for the treatment of primary biliary cirrhosis (PBC ) in May 2016, the Company sells Ocaliva in the United States principally to a limited number of specialty pharmacies which dispense the product directly to patients. The specialty pharmacies are referred to as the Company’s customers . The Company provides the right of return to its customers for unopened product for a limited time before and after its expiration date. Given the Company’s limited sales history for Ocaliva and the inherent uncertainties in estimating product returns, the Company has determined that the shipments of Ocaliva made to its customers thus far do not meet the criteria for revenue recognition at the time of shipment. Accordingly, the Company recognizes revenue when the product is sold through by its customers, provided all other revenue recognition criteria are met. The Company invoices its customers upon shipment of Ocaliva to them and records accounts receivable, with a corresponding liability for deferred revenue equal to the gross invoice price. The Company then recognizes revenue when Ocaliva is sold through as specialty pharmacies dispense product directly to the patients. The Company recognized net sales of Ocaliva for the second quarter 2016 of $75 thousand pursuant to the product launch in June 2016 . The Company also recorded $2.7 million in deferred revenues on its balance sheet, which represents product shipped to distributors, bu t not sold through as of June 30, 2016 . The Company has written contracts with each of its customers and delivery occurs when the customer receives Ocaliva. The Company evaluates the creditworthiness of each of its customers to determine whether collection is reasonably assured. In order to conclude that the price is fixed and determinable, the Company must be able to (i) calculate its gross product revenues from the sales to its customers and (ii) reasonably estimate its net product revenues. The Company calculates gross product revenues based on the wholesale acquisition cost that the Company charges its customers for Ocaliva. The Company estimates its net product revenues by deducting from its gross product revenues (i) trade allowances, such as invoice discounts for prompt payment and customer fees, (ii) estimated government rebates and discounts related to Medicare, Medicaid and othe r government programs , and (iii) estimated costs of incentives offered to certain indirect customers including patients. Trade Allowances The Company provides invoice discounts on Ocaliva sales to certain of its customers for prompt payment and pays fees for certain distribution services, such as fees for certain data that its customers provide to the Company. The Company deducts the full amount of these discounts and fees from its gross product revenues at the time such discounts and fees are earned by such customers. Rebates and Discounts The Company contracts with Centers for Medicare & Medicaid Services (CMS ) and other government agencies to make Ocaliva a vailable to eligible patients. As a result, the Company estimates any rebates and discounts and deducts these estimated amounts from its gross product revenues at the time the revenues are recognized. The Company’s estimates of rebates and discounts are based on the government mandated discounts, which are statutorily-defined and applicable to these government funded programs. Government rebates that are invoiced directly to the Company are recorded in accrued liabilities on the conden sed consolidated balance sheet. Gross-to-net adjustments were insignificant for the period ended June 30, 2016. Other Incentives Other incentives that the Company offers to indirect customers include co-pay assistance cards provided by the Company for PBC patients whom reside in states that permit co-pay assistance programs. The Company’s co-pay assistance program is intended to reduce each participating patient’s portion of the financial responsibility for Ocaliva purchase price to a specified dollar amount. The Company records each period the amount of co-pay assistance provided to eligible patients based on the terms of the program when product is dispensed by the specialty pharmacies to the patients.

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2016
Investments [Abstract]
Schedule of Available-for-sale Securities Reconciliation	The following table summarizes the Company’s cash, cash equivalents and investments as of June 30, 2016 and December 31, 2015:   As of June 30, 2016  Gross Gross  Amortized Cost Unrealized Unrealized Fair Value  Gains Losses   (In thousands)  Cash and cash equivalents:  Cash and money market funds $ 51,701 $ - $ - $ 51,701  Investment securities:  Commercial paper 1,999 - - 1,999  U.S. government and agency securities 41,841 21 (3) 41,859  Corporate debt securities 343,861 217 (150) 343,928  Total investments 387,701 238 (153) 387,786  Total cash, cash equivalents and investments $ 439,402 $ 238 $ (153) $ 439,487        As of December 31, 2015  Gross Gross  Amortized Cost Unrealized Unrealized Fair Value  Gains Losses   (In thousands)  Cash and cash equivalents:  Cash and money market funds $ 32,742 $ - $ - $ 32,742  Investment securities:  Commercial paper 1,993 - (3) 1,990  U.S. government and agency securities 65,854 1 (182) 65,673  Corporate debt securities 529,368 2 (1,720) 527,650  Total investments 597,215 3 (1,905) 595,313  Total cash, cash equivalents and investments $ 629,957 $ 3 $ (1,905) $ 628,055 

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements [Abstract]
Fair Value, Marketable Securities Measured on Recurring and Nonrecurring Basis	            Financial assets and liabilities, carried at fair value are classified in the tables below in one of the three categories described above:          Fair Value Measurements Using  Total Level 1 Level 2 Level 3   (In thousands)  June 30, 2016  Assets:  Money market funds $ 12,500 $ 12,500 $ - $ -  Available for sale securities: -  Commercial paper 1,999 - 1,999 $ -  Corporate debt securities 41,859 - 41,859 -  U.S. government and agency securities 343,928 - 343,928 -  Total financial assets: $ 400,286 $ 12,500 $ 387,786 $ -   December 31, 2015  Assets:  Money market funds $ 4,826 $ 4,826 $ - $ -  Available for sale securities:  Commercial paper 1,990 - 1,990 -  Corporate debt securities 527,650 - 527,650 -  U.S. government and agency securities 65,673 - 65,673 -  Total financial assets $ 600,139 $ 4,826 $ 595,313 $ -  
Schedule of Available for Sale Securities Debt Maturities	The estimated fair value of marketable debt securities (commercial paper, corporate debt securities and U.S. government and agency securities), by contractual maturity, are as follows:       Fair Value as of  June 30, 2016 December 31, 2015   (In thousands)  Due in one year or less $ 300,527 $ 343,758  Due after 1 year through 2 years 87,259 251,555  Total investments in debt securities $ 387,786 $ 595,313  

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Stock-Based Compensation [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity	 The following table summarizes stock option activity during the six months ended June 30, 2016:        Weighted  Number of Average  Shares Exercise Price   Outstanding, December 31, 2015 1,348,000 $ 108.49  Granted 392,415 $ 105.41  Exercised (79,179) $ 36.71  Expired (4,119) 128.3  Forfeited (17,126) $ 156.92  Outstanding, June 30, 2016 1,639,991 $ 110.66   Exercisable, June 30, 2016 747,123 $ 71.49 
Schedule of Share-based Compensation, Restricted Stock Units Award Activity	The following table summarizes the aggregate RSU and RSA activity during the six months ended June 30, 2016:      Number of Shares Weighted Average Fair Value Aggregate Intrinsic Value (In thousands)   Non-vested shares outstanding, December 31, 2015 193,164 $ 183.19 $ 28,849  Granted 244,694 $ 109.60 $ 34,913  Exercised (47,004) $ 145.28 $ (6,707)  Forfeited (8,199) $ 185.98 $ (1,170)  Non-vested shares outstanding, June 30, 2016 382,655 $ 140.73 $ 54,597 
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	The following table summarizes additional information about unvested RSUs and RSAs outstanding:      Number Intrinsic Value  of Shares Price (In thousands)  Employees and directors 379,105 $142.68 $ 54,091  Consultants 3,550 $142.68 506  Outstanding at June 30, 2016 382,655 $ 54,597 

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Net Loss Per Share [Abstract]
Schedule of Calculation of Numerator and Denominator in Earnings Per Share	The following table presents the historical computation of basic and diluted net loss per share:       Three Months Six Months  Ended June 30, Ended June 30,  2016 2015 2016 2015   (In thousands, except share and per share amounts)  Historical net loss per share  Numerator:  Net loss attributable to common stockholders $ (77,299) $ (47,894) $ (203,973) $ (87,280)  Denominator:  Weighted average shares used in calculating net loss per share - basic and diluted 24,611,631 24,014,092 24,553,239 23,100,222   Net loss per share:  Basic and diluted $ (3.14) $ (1.99) $ (8.31) $ (3.78) 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potentially dilutive securities have been excluded from the computations of diluted weighted average shares outstanding:        Three Months Ended June 30, Six Months Ended June 30,  2016 2015 2016 2015   (In thousands)   Options 1,640 1,232 1,640 1,232  Restricted stock units 383 37 383 37  Total 2,023 1,269 2,023 1,269 

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Product revenue, Ocaliva	$ 75	$ 75
Deferred revenue recognized	$ 2,700

Significant Agreements (Narrati

Significant Agreements (Narrative) (Details) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended		64 Months Ended
	May 31, 2014USD ($)	Mar. 31, 2011USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Feb. 29, 2016USD ($)ft²	Jan. 22, 2016GBP (£)ft²	Jan. 22, 2016USD ($)ft²	Dec. 31, 2015USD ($)
Significant Agreements [Line Items]
License arrangement, deferred revenue, recognized			$ 2,700
Security deposit			6,377		$ 6,377		$ 6,377				$ 4,018
Licensing revenue			$ 5,445	$ 445	$ 5,891	$ 1,891
United Kingdom [Member]
Significant Agreements [Line Items]
Area of real estate property | ft²									8,549	8,549
Rent expense									£ 726,665	$ 1,000
New York [Member]
Significant Agreements [Line Items]
Area of real estate property | ft²								10,785
Rent expense								$ 1,000
Security deposit								$ 300
Sumitomo Dainippon Pharma Co Ltd [Member] | Nonsoftware License Arrangement [Member]
Significant Agreements [Line Items]
Development milestone reached							$ 6,000
Sumitomo Dainippon Pharma Co Ltd [Member] | Nonsoftware License Arrangement [Member] | Up-front Payment [Member]
Significant Agreements [Line Items]
License agreement payment		$ 15,000
Sumitomo Dainippon Pharma Co Ltd [Member] | Nonsoftware License Arrangement [Member] | Additional Development Receivable [Member]
Significant Agreements [Line Items]
Contingent arrangement receivable amount		30,000
Sumitomo Dainippon Pharma Co Ltd [Member] | Nonsoftware License Arrangement [Member] | Additional Regulatory Approval Receivable [Member]
Significant Agreements [Line Items]
Contingent arrangement receivable amount		70,000
Sumitomo Dainippon Pharma Co Ltd [Member] | Nonsoftware License Arrangement [Member] | Additional Sales Receivable [Member]
Significant Agreements [Line Items]
Contingent arrangement receivable amount		200,000
Sumitomo Dainippon Pharma Co Ltd [Member] | Japan [Member] | Nonsoftware License Arrangement [Member] | Additional Regulatory Approval Receivable [Member]
Significant Agreements [Line Items]
Contingent arrangement receivable amount		15,000
Sumitomo Dainippon Pharma Co Ltd [Member] | China [Member] | Nonsoftware License Arrangement [Member] | Additional Regulatory Approval Receivable [Member]
Significant Agreements [Line Items]
Contingent arrangement receivable amount		10,000
Sumitomo Dainippon Pharma Co Ltd [Member] | United States [Member] | Nonsoftware License Arrangement [Member] | Additional Regulatory Approval Receivable [Member]
Significant Agreements [Line Items]
Contingent arrangement receivable amount		5,000
Sumitomo Dainippon Pharma Co Ltd [Member] | Korea [Member] | Nonsoftware License Arrangement [Member] | Up-front Payment [Member]
Significant Agreements [Line Items]
License agreement payment	$ 1,000
Sumitomo Dainippon Pharma Co Ltd [Member] | Criteria One [Member] | Nonsoftware License Arrangement [Member]
Significant Agreements [Line Items]
Contingent arrangement receivable amount		5,000
License arrangement, milestone benchmark		50,000
Sumitomo Dainippon Pharma Co Ltd [Member] | Criteria Two [Member] | Nonsoftware License Arrangement [Member]
Significant Agreements [Line Items]
Contingent arrangement receivable amount		10,000
License arrangement, milestone benchmark		100,000
Sumitomo Dainippon Pharma Co Ltd [Member] | Criteria Three [Member] | Nonsoftware License Arrangement [Member]
Significant Agreements [Line Items]
Contingent arrangement receivable amount		20,000
License arrangement, milestone benchmark		200,000
Sumitomo Dainippon Pharma Co Ltd [Member] | Criteria Four [Member] | Nonsoftware License Arrangement [Member]
Significant Agreements [Line Items]
Contingent arrangement receivable amount		40,000
License arrangement, milestone benchmark		400,000
Sumitomo Dainippon Pharma Co Ltd [Member] | Criteria Five [Member] | Nonsoftware License Arrangement [Member]
Significant Agreements [Line Items]
Contingent arrangement receivable amount		120,000
License arrangement, milestone benchmark		$ 1,200,000

Investments (Schedule of Availa

Investments (Schedule of Available-for-sale Securities Reconciliation) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investments:
Total investments, Amortized Cost	$ 387,701	$ 597,215
Total cash and cash equivalents and investments, Amortized Cost	439,402	629,957
Total investments, Gross Unrealized Gains	238	3
Total cash and cash equivalents and investments, Gross Unrealized Gains	238	3
Total investments, Gross Unrealized Losses	(153)	(1,905)
Total cash and cash equivalents and investments, Gross Unrealized Losses	(153)	(1,905)
Total investments, Fair Value	387,786	595,313
Total cash and cash equivalents and investments, Fair Value	439,487	628,055
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0
Commercial Paper [Member]
Investments:
Total investments, Amortized Cost	1,999	1,993
Total investments, Gross Unrealized Losses		(3)
Total investments, Fair Value	1,999	1,990
Corporate Debt Securities [Member]
Investments:
Total investments, Amortized Cost	343,861	529,368
Total investments, Gross Unrealized Gains	217	2
Total investments, Gross Unrealized Losses	(150)	(1,720)
Total investments, Fair Value	343,928	527,650
US Government Agencies Debt Securities [Member]
Investments:
Total investments, Amortized Cost	41,841	65,854
Total investments, Gross Unrealized Gains	21	1
Total investments, Gross Unrealized Losses	(3)	(182)
Total investments, Fair Value	41,859	65,673
Cash and Money Market Funds [Member]
Cash and cash equivalents:
Cash and Cash Equivalents, Amortized Cost	51,701	32,742
Cash and cash equivalents, Fair Value	$ 51,701	$ 32,742

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income tax expense (benefit)	$ 0	$ 0
Operating loss carryforwards	472,500,000		$ 454,400,000
Adjustments to additional paid in capital, income tax benefit from Share-based Compensation	$ 158,100,000		$ 151,000,000
Minimum [Member]
Operating loss carryforwards, expiration dates	Jan. 1, 2024
Maximum [Member]
Operating loss carryforwards, expiration dates	Dec. 31, 2036

Fair Value Measurements (Common

Fair Value Measurements (Common Stock Portion) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		6 Months Ended
	Apr. 30, 2015	Feb. 28, 2015	Jun. 30, 2015	Jul. 19, 2016	Jun. 30, 2016	Dec. 31, 2015
Common stock, authorized					35,000,000	35,000,000
Common stock, par value (in dollars per share)					$ 0.001	$ 0.001
Stock issued during period, shares, new issues	1,330,865	1,150,000
Proceeds from issuance of common stock	$ 367,100	$ 191,600	$ 558,930
Subsequent Event [Member]
Common stock, authorized				45,000,000

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Value, Marketable Securities Measured on Recurring and Nonrecurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Available-For-Sale Securities, Fair Value Disclosure	$ 387,786	$ 595,313
Total financial assets	400,286	600,139
Money Market Funds [Member]
Cash and cash equivalents, fair value disclosure	12,500	4,826
Commercial Paper [Member]
Available-For-Sale Securities, Fair Value Disclosure	1,999	1,990
Corporate Debt Securities [Member]
Available-For-Sale Securities, Fair Value Disclosure	41,859	527,650
US Government Agencies Debt Securities [Member]
Available-For-Sale Securities, Fair Value Disclosure	343,928	65,673
Fair Value, Inputs, Level 1 [Member]
Total financial assets	12,500	4,826
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Cash and cash equivalents, fair value disclosure	12,500	4,826
Fair Value, Inputs, Level 2 [Member]
Total financial assets	387,786	595,313
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member]
Available-For-Sale Securities, Fair Value Disclosure	1,999	1,990
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Available-For-Sale Securities, Fair Value Disclosure	41,859	527,650
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Available-For-Sale Securities, Fair Value Disclosure	343,928	65,673
Fair Value, Inputs, Level 3 [Member]
Total financial assets
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]
Cash and cash equivalents, fair value disclosure
Fair Value, Inputs, Level 3 [Member] | Commercial Paper [Member]
Available-For-Sale Securities, Fair Value Disclosure
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member]
Available-For-Sale Securities, Fair Value Disclosure
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member]
Available-For-Sale Securities, Fair Value Disclosure

Fair Value Measurements (Schedu

Fair Value Measurements (Schedule of Available for Sale Securities Debt Maturities) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Total investments in debt securities	$ 387,786	$ 595,313
Debt Securities [Member]
Due in one year or less	300,527	343,758
Due after 1 year through 2 years	87,259	251,555
Total investments in debt securities	$ 387,786	$ 595,313

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Oct. 31, 2012	Jun. 30, 2016
Share-based compensation not yet recognized, other than options		$ 47.6
Share-based compensation not yet recognized, period		2 years 9 months 26 days
2003 Stock Incentive Plan [Member]
Fair value assumption method used		Black-Scholes option-pricing model
2012 Stock Plan [Member]
Additional shares available	555,843
Fair value assumption method used		Black-Scholes option-pricing model

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Stock-Based Compensation [Abstract]
Beginning Outstanding, Number of Shares | shares	1,348,000
Beginning Outstanding, Weighted Average Exercise Price | $ / shares	$ 108.49
Granted - Number of Shares | shares	392,415
Granted - Weighted Average Exercise Price | $ / shares	$ 105.41
Exercised - Number of Shares | shares	(79,179)
Exercised - Weighted Average Exercise Price | $ / shares	$ 36.71
Expired, Number of Shares | shares	(4,119)
Expired, Weighted Average Exercise Price | $ / shares	$ 128.30
Forfeited - Number of Shares | shares	(17,126)
Forfeited - Weighted Average Exercise Price | $ / shares	$ 156.92
Ending Outstanding, Number of Shares | shares	1,639,991
Ending Outstanding, Weighted Average Exercise Price | $ / shares	$ 110.66
Exercisable - Number of Shares | shares	747,123
Exercisable - Weighted Average Exercise Price | $ / shares	$ 71.49

Stock-Based Compensation (Sch33

Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock Units Award Activity) (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Stock-Based Compensation [Abstract]
Outstanding, December 31, 2015 | shares	193,164
Granted - Shares | shares	244,694
Exercised - Shares | shares	(47,004)
Forfeited - Shares | shares	(8,199)
Outstanding, June 30, 2016 | shares	382,655
Outstanding - Weighted Average Grant Date Fair Value, December 31, 2015 | $ / shares	$ 183.19
Granted - Weighted Average Grant Date Fair Value | $ / shares	109.60
Exercised - Weighted Average Exercise Price | $ / shares	145.28
Forfeited - Weighted Average Grant Date Fair Value | $ / shares	185.98
Outstanding - Weighted Average Grant Date Fair Value, June 30, 2016 | $ / shares	$ 140.73
Outstanding, December 31, 2015 - Aggregate Intrinsic Value | $	$ 28,849
Granted - Aggregate Intrinsic Value | $	34,913
Exercised - Aggregate Intrinsic Value | $	(6,707)
Forfeited - Aggregate Intrinsic Value | $	(1,170)
Outstanding, June 30, 2016 - Aggregate Intrinsic Value | $	$ 54,597

Stock-Based Compensation (Sch34

Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Number of Shares, Outstanding	382,655	382,655	193,164
Intrinsic Value, Outstanding	$ 54,597		$ 28,849
Employees and Directors [Member]
Number of Shares, Outstanding	379,105
Issue Price	$ 142.68
Intrinsic Value, Outstanding	$ 54,091
Consultants [Member]
Number of Shares, Outstanding	3,550
Issue Price	$ 142.68
Intrinsic Value, Outstanding	$ 506

Net Loss Per Share (Schedule of

Net Loss Per Share (Schedule of Calculation of Numerator and Denominator in Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Numerator:
Net income (loss) attributable to common stockholders	$ (77,299)	$ (47,894)	$ (203,973)	$ (87,280)
Denominator:
Weighted average shares outstanding, basic and diluted (in shares)	24,611,631	24,014,092	24,553,239	23,100,222
Net loss per share, basic and diluted (in dollars per share)	$ (3.14)	$ (1.99)	$ (8.31)	$ (3.78)

Net Loss Per Share (Schedule 36

Net Loss Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Antidilutive securities excluded from computation of earnings per share, amount	2,023	1,269	2,023	1,269
Stock Options [Member]
Antidilutive securities excluded from computation of earnings per share, amount	1,640	1,232	1,640	1,232
Restricted Stock Units (RSUs) [Member]
Antidilutive securities excluded from computation of earnings per share, amount	383	37	383	37

Litigation (Narrative) (Details

Litigation (Narrative) (Details) - USD ($)	May 23, 2016	Jun. 30, 2016
Loss Contingencies [Line Items]
Loss contingency, domicile of litigation		United States District Court for the Southern District of New York
Loss contingency, allegations		The lawsuits alleged that the Company made material misrepresentations and/or omissions of material fact in its public disclosures during the period from January 9, 2014 to January 10, 2014, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The alleged improper disclosures relate to the Company's January 9, 2014 announcement that the FLINT trial had been stopped early based on a pre-defined interim efficacy analysis. Specifically, the lawsuits claimed that the January 9, 2014 announcement was misleading because it did not contain information regarding certain lipid abnormalities seen in the FLINT trial in OCA-treated patients compared to placebo.
Litigation settlement, amount	$ 55,000,000
Litigation settlement, amount via insurance	$ 10,000,000
Restricted cash		$ 45,000,000
Scot H. Atwood vs. Intercept Pharmaceuticals Incorporated [Member]
Loss Contingencies [Line Items]
Loss contingency, lawsuit filing date		February 21, 2014
Loss contingency, name of plaintiff		Scot H. Atwood
Loss contingency, name of defendant		Intercept Pharmaceuticals, Inc. et al.
Loss contingency accrual		$ 0
George Burton vs. Intercept Pharmaceuticals Incorporated [Member]
Loss Contingencies [Line Items]
Loss contingency, lawsuit filing date		February 28, 2014
Loss contingency, name of plaintiff		George Burton
Loss contingency, name of defendant		Intercept Pharmaceuticals, Inc. et al.
Loss contingency accrual		$ 0

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Details)	Jul. 19, 2016USD ($)ft²	Jul. 06, 2016USD ($)$ / shares	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Subsequent Event [Line Items]
Security deposit			$ 6,377,000	$ 4,018,000
3.25% Convertible Senior Notes Due 2023 [Member]
Subsequent Event [Line Items]
Debt instrument, convertible, terms of conversion feature			The convertible notes are senior unsecured obligations of the Company. Interest is payable semi-annually on January 1 and July 1 of each year, beginning on January 1, 2017. The convertible notes mature on July 1, 2023, unless earlier repurchased, redeemed or converted. The convertible notes are convertible at the option of holders, under certain circumstances and during certain periods, into cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. The initial conversion rate of the convertible notes is 5.0358 shares of the Company's common stock per $1,000 principal amount of convertible notes, which is equivalent to an initial conversion price of approximately $198.58 per share of the Company's common stock. The conversion rate is subject to adjustment upon the occurrence of certain events. The Company may redeem for cash all or part of the convertible notes, at its option, on or after July 6, 2021, under certain circumstances at a redemption price equal to 100% of the principal amount of the convertible notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
Debt instrument, call feature			The capped call transactions are expected generally to reduce the potential dilution upon conversion of the convertible notes in the event that the market price per share of the Company's common stock, as measured under the terms of the capped call transactions, is greater than the strike price of the capped call transactions, which initially corresponds to the conversion price of the convertible notes, and is subject to anti-dilution adjustments generally similar to those applicable to the conversion rate of the convertible notes. The cap price of the capped call transactions will initially be $262.2725 per share, and is subject to certain adjustments under the terms of the capped call transactions. If, however, the market price per share of the Company's common stock, as measured under the terms of the capped call transactions, exceeds the cap price of the capped call transactions, there would nevertheless be dilution upon conversion of the convertible notes to the extent that such market price exceeds the cap price of the capped call transactions.
Subsequent Event [Member]
Subsequent Event [Line Items]
Debt instrument, cost related to capped call transaction		$ 38,400,000
Subsequent Event [Member] | 3.25% Convertible Senior Notes Due 2023 [Member]
Subsequent Event [Line Items]
Proceeds from convertible debt		$ 447,700,000
Debt instrument, convertible, conversion ratio		5.0358
Debt instrument, convertible, conversion price | $ / shares		$ 198.58
Debt instrument, strike price maximum, before dilutiion if converted | $ / shares		$ 262.2725
Convertible Debt [Member] | 3.25% Convertible Senior Notes Due 2023 [Member]
Subsequent Event [Line Items]
Debt instrument, maturity date			Jul. 1, 2023
Convertible Debt [Member] | Subsequent Event [Member] | 3.25% Convertible Senior Notes Due 2023 [Member]
Subsequent Event [Line Items]
Debt instrument, face amount		$ 460,000,000
Debt instrument, interest rate, stated percentage		3.25%
Debt issuance costs		$ 12,300,000
San Diego, California [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Area of real estate property | ft²	11,177
Rent expense	$ 254,832
Landloard allowance	22,354
Security deposit	$ 26,679