Travere Therapeutics (TVTX) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 04, 2017
Document And Entity Information
Entity Registrant Name	Retrophin, Inc.
Entity Central Index Key	1,438,533
Trading Symbol	rtrx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		38,173,092
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 41,871	$ 41,002
Marketable securities	206,290	214,871
Accounts receivable, net	15,427	18,510
Inventory, net	4,751	2,826
Prepaid expenses and other current assets	3,241	4,831
Prepaid taxes	3,645	3,463
Note receivable, current	47,173	46,849
Total current assets	322,398	332,352
Property and equipment, net	2,428	2,587
Other assets	3,661	7,364
Intangible assets, net	180,958	182,043
Goodwill	936	936
Total assets	510,381	525,282
Current liabilities:
Accounts payable	4,671	7,522
Accrued expenses	30,192	33,308
Guaranteed minimum royalty	2,000	2,000
Other current liabilities	1,671	1,842
Business combination-related contingent consideration	16,841	16,150
Derivative financial instruments, warrants	21,180	22,440
Total current liabilities	76,555	83,262
Convertible debt	44,583	44,422
Other non-current liabilities	3,857	4,010
Guaranteed minimum royalty, less current portion	7,849	8,068
Business combination-related contingent consideration, less current portion	72,241	71,328
Deferred income tax liability, net	4,361	6,425
Total liabilities	209,446	217,515
Stockholders' Equity:
Preferred stock $0.001 par value; 20,000,000 shares authorized; 0 issued and outstanding as of March 31, 2017 and December 31, 2016	0	0
Common stock $0.0001 par value; 100,000,000 shares authorized; 38,161,424 and 37,906,669 issued and outstanding as of March 31, 2017 and December 31, 2016, respectively	4	4
Additional paid-in capital	430,366	421,309
Accumulated deficit	(129,014)	(113,056)
Accumulated other comprehensive loss	(421)	(490)
Total stockholders' equity	300,935	307,767
Total liabilities and stockholders' equity	$ 510,381	$ 525,282

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 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)	38,161,424	37,906,669
Common stock shares outstanding (in shares)	38,161,424	37,906,669

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net product sales	$ 33,620	$ 29,008
Operating expenses:
Cost of goods sold	709	757
Research and development	20,860	14,672
Selling, general and administrative	23,115	19,125
Change in fair value of contingent consideration	(3,344)	(2,695)
Total operating expenses	48,028	37,249
Operating loss	(14,408)	(8,241)
Other income (expenses), net:
Other income, net	126	210
Interest expense, net	(132)	(163)
Change in fair value of derivative instruments	1,260	14,340
Total other income, net	1,254	14,387
Income (loss) before provision for income taxes	(13,154)	6,146
Income tax benefit	2,064	5,070
Net income (loss)	$ (11,090)	$ 11,216
Net earnings (loss) per common share, basic (in dollars per share)	$ (0.29)	$ 0.31
Net earnings (loss) per common share, diluted (in dollars per share)	$ (0.32)	$ (0.08)
Weighted average common shares outstanding, basic (in shares)	38,045,317	36,520,186
Weighted average common shares outstanding, diluted (in shares)	39,158,922	37,947,479
Comprehensive income (loss):
Net income (loss)	$ (11,090)	$ 11,216
Foreign currency translation	(76)	(69)
Unrealized gain (loss) on marketable securities	146	(549)
Comprehensive income (loss)	$ (11,020)	$ 10,598

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows From Operating Activities:
Net income (loss)	$ (11,090)	$ 11,216
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	4,284	3,891
Deferred income tax benefit	(2,064)	(5,070)
Interest income from notes receivable	(325)	(640)
Legal fee settlement	0	(2,967)
Non-cash interest expense	572	532
Amortization of premiums on marketable securities	287	389
Amortization of debt discount and deferred financing costs	161	163
Share based compensation	7,093	6,793
Change in fair value of liability classified warrants	(1,260)	(14,340)
Change in fair value of contingent consideration	3,344	2,695
Payments related to change in fair value of contingent consideration	(406)	(427)
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	3,096	(927)
Inventory	(549)	(302)
Prepaid expenses and other current assets	(944)	(1,013)
Accounts payable and accrued expenses	(4,794)	(3,560)
Income taxes payable	(181)	0
Net cash used in operating activities	(2,776)	(3,567)
Cash Flows From Investing Activities:
Purchase of fixed assets	(838)	(24)
Cash paid for intangible assets	(3,477)	(2,575)
Proceeds from the sale/maturity of marketable securities	8,440	17,495
Purchase of marketable securities	0	(24,652)
Net cash provided by (used in) investing activities	4,125	(9,756)
Cash Flows From Financing Activities:
Payment of guaranteed minimum royalty	(500)	(500)
Proceeds from exercise of stock options	1,964	781
Net cash used in financing activities	(361)	(926)
Effect of exchange rate changes on cash	(119)	(294)
Net change in cash	869	(14,543)
Cash, beginning of year	41,002	37,805
Cash, end of period	41,871	23,262
Manchester
Cash Flows From Financing Activities:
Payment of acquisition-related contingent consideration	(1,133)	(992)
Asklepion
Cash Flows From Financing Activities:
Payment of acquisition-related contingent consideration	$ (692)	$ (215)

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	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: 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 are currently working to finalize the study protocol with the expectation of completing it and gaining alignment with the FDA in the second half of 2017 and initiating the trial thereafter. 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. 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. The Company expects to begin dosing patients in this Phase 3 clinical trial in mid 2017. Tetracosactide zinc, also known as RE-034, is a synthetic hormone analog of the first 24 amino acids of the 39 amino acids contained in adrenocorticotropic hormone ("ACTH") incorporated into a novel formulation developed by us. Tetracosactide zinc (RE-034) exhibits similar physiological actions as endogenous ACTH by binding to all five melanocortin receptors (pan-MCR), resulting in its anti-inflammatory and immunomodulatory effects. The Company successfully manufactured tetracosactide zinc (RE-034) at proof-of-concept scale using a novel formulation process that allows modulation of the release of the active ingredient from the site of administration. The Company intends to pursue partnership and out-licensing opportunities for RE-034. 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 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

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 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 ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 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 period ended March 31, 2017 the Company recorded tax expense of $0.3 million , 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 Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. As of March 31, 2017 , the Company held $206.3 million in available for sale debt securities that are affected by this ASU. If adopted as of March 31, 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 March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, these amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As of March 31, 2017 , the Company had $206.3 million of marketable debt securities of which there are $1.3 million in unamortized premiums. The Company is still reviewing the call provisions for any of its purchased debt securities to determine the full impact of this adoption on the Company's consolidated financial statements.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The following table summarizes our effective tax rate and income tax (expense) benefit for the three months ended March 31, 2017 and 2016 (in thousands except for percentages): Three Months Ended March 31, 2017 2016 Effective tax rate 15.7 % (82.5 )% Income tax benefit 2,064 5,070 The Company’s income tax benefit of $2.1 million and $5.1 million reflect effective tax rates of 15.7% and ( 82.5% ) for the three months ended March 31, 2017 and 2016, 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 15.7% effective tax benefit for the three months ended March 31, 2017, was primarily attributable to the increase in valuation allowance against our deferred tax assets. For the three months ended March 31, 2017, when compared to the same period in 2016, the decrease in the tax benefit and increase in effective income tax rate was primarily attributable to the increase of the U.S. federal valuation allowance in 2017. At March 31, 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 March 31, 2017. In April 2017 the Internal Revenue Service concluded its audit of the 2014 tax year with no change.

BUSINESS COMBINATION

BUSINESS COMBINATION	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
BUSINESS COMBINATION	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 acquisition was accounted for under the purchase method of accounting in accordance with Accounting Standard Codification ("ASC") 805. The fair value of assets acquired and liabilities assumed was based upon a valuation and the Company’s estimates. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from acquired product rights for L-UDCA, licenses, trade names and developed technologies, present value and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. 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

MARKETABLE SECURITIES	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	MARKETABLE SECURITIES The Company's marketable securities as of March 31, 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 three months ended March 31, 2017 , investment activity for the Company included $8.4 million in maturities, all relating to debt based marketable securities. Marketable securities consisted of the following ( in thousands ): March 31, 2017 December 31, 2016 Marketable other than equity securities: Commercial paper $ 30,393 $ 30,303 Corporate debt securities 125,975 134,570 Securities of government sponsored entities 49,922 49,998 Total Marketable Securities: $ 206,290 $ 214,871 The following is a summary of short-term marketable securities classified as available-for-sale as of March 31, 2017 ( in thousands ): Remaining Contractual Maturity Amortized Cost Unrealized Gains Unrealized Losses Aggregate Estimated Fair Value Marketable other than equity securities: Commercial paper Less than 1 $ 30,408 $ — $ (15 ) $ 30,393 Corporate debt securities Less than 1 83,267 — (150 ) 83,117 Securities of government-sponsored entities Less than 1 19,500 — (12 ) 19,488 Total maturity less than 1 year 133,175 — (177 ) 132,998 Corporate debt securities 1 to 2 43,042 — (184 ) 42,858 Securities of government-sponsored entities 1 to 2 30,470 13 (49 ) 30,434 Total maturity 1 to 2 years 73,512 13 (233 ) 73,292 Total available-for-sale securities $ 206,687 $ 13 $ (410 ) $ 206,290 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 March 31, 2017 and December 31, 2016 , the Company believed the cost basis for available-for-sale investments was recoverable in all material respects.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	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 Income (Loss). The Company recorded a gain on the change in the estimated fair value of warrants of $1.3 million for the three months ended March 31, 2017 , and a gain on the change in the estimated fair value of warrants of $14.3 million for the three months ended March 31, 2016. The Company calculated the fair value of the warrants using the Black-Scholes Model as of March 31, 2017 and the Monte Carlo Simulation as of December 31, 2016 , using the following assumptions: March 31, 2017 December 31, 2016 Fair value of common stock $ 18.46 $ 18.93 Remaining life of the warrants (in years) .9 - 2.8 years 1.2 - 3.0 years Risk-free interest rate 1.0 - 1.4% .89 - 1.48% Expected volatility 45 - 61% 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

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	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 March 31, 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. We estimate the fair value of convertible debt is $62.3 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 March 31, 2017 ( in thousands ): As of March 31, 2017 Total carrying and estimated fair value Quoted prices in active markets Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash and cash equivalents $ 41,871 $ 41,871 $ — $ — Marketable securities, available-for-sale 206,290 — 206,290 — Total $ 248,161 $ 41,871 $ 206,290 $ — Liabilities: Derivative liability related to warrants $ 21,180 $ — $ — $ 21,180 Business combination-related contingent consideration 89,082 — — 89,082 Total $ 110,262 $ — $ — $ 110,262 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 December 31, 2016 ( in thousands ): 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 three months ended March 31, 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 (1,260 ) Balance at March 31, 2017 $ 21,180 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 three months ended March 31, 2017 ( in thousands ): Fair Value Measurements of Acquisition-Related Contingent Consideration Balance at January 1, 2017 $ 87,478 Increase from revaluation of contingent consideration 3,344 Contractual payments accrued at March 31, 2017 (1,808 ) Foreign currency impact 68 Balance at March 31, 2017 $ 89,082 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 months ended March 31, 2017 , the Company incurred charges of $3.3 million in operating expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the revaluation of the contingent consideration liabilities. For the three months ended March 31, 2017, $1.4 million , $1.1 million and $0.8 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 months ended March 31, 2016 , the Company incurred charges of $2.7 million in operating expenses on the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). For the three months ended March 31, 2016, $1.4 million , and $1.3 million of the charges were related to the increase in contingent consideration liabilities for the products Chenodal and Cholbam, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	INTANGIBLE ASSETS As of March 31, 2017 , the net book value of amortizable intangible assets was approximately $181.0 million . The following table sets forth amortizable intangible assets as of March 31, 2017 and December 31, 2016 ( in thousands ): March 31, 2017 December 31, 2016 Finite-lived intangible assets $ 218,645 $ 215,540 Less: accumulated amortization (37,687 ) (33,497 ) Net carrying value $ 180,958 $ 182,043 The following table summarizes amortization expense for the three months ended March 31, 2017 and 2016 ( in thousands ): Three Months Ended March 31, 2017 2016 Research and development $ 81 $ 82 Selling, general and administrative 4,090 3,803 Total amortization expense $ 4,171 $ 3,885

CONVERTIBLE NOTES PAYABLE

CONVERTIBLE NOTES PAYABLE	3 Months Ended
	Mar. 31, 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 the terms, and there are no contractual payments due prior to that date. At March 31, 2017 and December 31, 2016 , the aggregate carrying value of the Notes was $44.6 million and $44.4 million , respectively.

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
ACCRUED EXPENSES	ACCRUED EXPENSES Accrued expenses at March 31, 2017 and December 31, 2016 consisted of the following ( in thousands ): March 31, 2017 December 31, 2016 Government rebates payable $ 7,099 $ 6,967 Compensation related costs 4,170 7,441 Accrued royalties and contingent consideration 5,124 5,766 Research and development 8,845 7,311 Selling, general and administrative 2,630 3,333 Miscellaneous accrued 2,324 2,490 $ 30,192 $ 33,308

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	EARNINGS (LOSS) PER SHARE Basic and diluted net earnings (loss) per common share is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. The Company’s potentially dilutive shares, which include outstanding stock options, restricted stock units, warrants, and shares issuable upon conversion of the Notes, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. Basic and diluted net earnings (loss) per share is calculated as follows (net income amounts are stated in thousands) : Three Months Ended March 31, 2017 March 31, 2016 Shares Net Loss EPS Shares Net Income EPS Basic Earnings per Share 38,045,317 $ (11,090 ) $ (0.29 ) 36,520,186 $ 11,216 $ 0.31 Dilutive shares related to warrants 1,113,605 — 1,427,293 — Change in fair value of derivative instruments — (1,260 ) — (14,340 ) Dilutive net earnings (loss) per share 39,158,922 $ (12,350 ) $ (0.32 ) 37,947,479 $ (3,124 ) $ (0.08 ) For the three months ended March 31, 2017 and 2016 , the following shares were excluded because they were anti-dilutive: Three Months Ended March 31, 2017 March 31, 2016 Restricted stock units 331,946 341,606 Convertible debt 2,642,160 2,642,160 Options 6,404,524 5,609,418 Total anti-dilutive shares 9,378,630 8,593,184

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	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 July 2017 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 Carlsbad CA June 2017 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 March 31, 2017 ( in thousands ): Total Less than 1 year 1-3 years 3-5 years More than 5 years Operating leases $ 10,222 $ 1,844 $ 2,745 $ 3,486 $ 2,147 Note payable, including contractual interest 65,503 4,070 52,933 4,000 4,500 Sales support services 2,950 416 833 833 868 Product supply contracts 1,372 893 479 — — Purchase order commitments 898 785 113 — — $ 80,945 $ 8,008 $ 57,103 $ 8,319 $ 7,515 Legal Proceedings On September 19, 2014, purported shareholders of the Company sued Martin Shkreli, the Company’s former Chief Executive Officer, in federal court in the Southern District of New York (Donoghue v. Retrophin, Inc., Case No. 14-cv-7640). The Company was a nominal defendant in this action. The plaintiffs sought, on behalf of the Company, disgorgement of short-swing profits from Mr. Shkreli under section 16(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78(p)(b)). The Court approved a settlement between the parties, under which Mr. Shkreli was obligated to pay $2.025 million to the Company and an additional $0.6 million to Plaintiffs to compensate them for their legal fees. Mr. Shkreli defaulted on the judgment and the Company and the Plaintiffs took steps to collect it. The Company did not record anything related to the judgment on its financial statements for 2015. In November 2016, the Company and Mr. Shkreli entered into a binding term sheet with respect to a settlement, under which the $2.025 million judgment against Mr. Shkreli would offset and satisfy certain existing legal fees that Mr. Shkreli claimed should be advanced to him by the Company, as described more fully below. That offset has now taken place and this matter has concluded. 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 has been informed that it is not a target of the U.S. Attorney’s investigation, and is cooperating with the investigation. On December 17, 2015, an indictment against the Company’s former Chief Executive Officer, Martin Shkreli, and its former outside counsel, Evan Greebel, was unsealed in the United States District Court for the Eastern District of New York. A superseding indictment reflecting additional charges was filed on June 3, 2016. The Company has also been cooperating with a parallel investigation by the U.S. Securities and Exchange Commission (the “SEC”). On December 17, 2015, the SEC filed a civil complaint against Mr. Shkreli, Mr. Greebel, MSMB Capital Management LLC, and MSMB Healthcare Management LLC in the United States District Court for the Eastern District of New York. In connection with these proceedings, Mr. Shkreli, as well as a number of other current and former directors, officers, and employees, sought advancement of their legal fees from the Company. Mr. Shkreli, in particular, claimed that the Company owes him in excess of $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 would also undertake an obligation to advance an additional $2 million in future legal fees in the event the matter proceeds to trial. 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 Martin Shkreli, asserting that he breached his fiduciary duty of loyalty during his tenure as the Company’s Chief Executive Officer and a member of its Board of Directors (Retrophin, Inc. v. Shkreli, 15-CV-06451(NRB)). On August 19, 2015, Mr. Shkreli served a demand for JAMS arbitration on Retrophin, claiming that Retrophin had breached his December 2013 employment agreement. In response to Mr. Shkreli’s arbitration demand, the Company 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 months ended March 31, 2017, the Company paid $1.0 million 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

SHARE BASED COMPENSATION	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
SHARE BASED COMPENSATION	SHARE BASED COMPENSATION Restricted Shares Service and Performance Based Restricted Stock Units The following table summarizes the Company’s restricted stock activity during the three months ended March 31, 2017 : Number of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested December 31, 2016 407,746 $ 19.88 Granted 60,375 19.72 Vested (77,499 ) 15.62 Forfeited/canceled (1,500 ) 25.23 Unvested March 31, 2017 389,122 $ 20.68 At March 31, 2017 , unamortized stock compensation for restricted stock units was $4.2 million , with a weighted-average recognition period of 1.1 years. Performance Based Restricted Stock Units During the three months ended March 31, 2017 , the Company granted 30,000 performance based restricted stock units, which are included in the restricted stock activity table above. Stock Options The following table summarizes stock option activity during the three months ended March 31, 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 220,000 19.57 Exercised (177,256 ) 11.08 Forfeited/canceled (181,957 ) 27.00 Outstanding at March 31, 2017 6,291,357 $ 16.88 7.55 $ 26,537 At March 31, 2017 , unamortized stock compensation for stock options was $28.1 million , with a weighted-average recognition period of 1.9 years . At March 31, 2017 , outstanding options to purchase 3.9 million shares of common stock were exercisable with a weighted-average exercise price per share of $15.03 . Share Based Compensation The following table sets forth total non-cash stock-based compensation by operating statement classification for the three months ended March 31, 2017 and 2016 ( in thousands ): Three Months Ended March 31, 2017 2016 Research and development $ 2,656 $ 2,486 Selling, general & administrative 4,437 4,307 Total $ 7,093 $ 6,793 Exercise of Warrants During the three months ended March 31, 2017, there were no warrant exercises and correspondingly, we reclassified no derivative liability to equity. At each of March 31, 2017 and December 31, 2016 , warrants to purchase 1,766,905 shares of common stock were outstanding.

INVENTORY

INVENTORY	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Inventory, net of reserves, consisted of the following at March 31, 2017 and December 31, 2016 ( in thousands ): March 31, 2017 December 31, 2016 Raw materials $ 3,176 $ 1,336 Finished goods 1,575 1,490 Total inventory $ 4,751 $ 2,826 The inventory reserve was $0.6 million at each of March 31, 2017 and December 31, 2016 .

RECEIVABLES

RECEIVABLES	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
RECEIVABLES	RECEIVABLES Accounts Receivables Accounts receivable, net of reserves for prompt pay discounts and doubtful accounts, was $15.4 million and $18.5 million at March 31, 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 is due on each of the first and second anniversaries of the closing. In accordance with GAAP, the Company recorded the future short term and long term notes receivable at their present value of $46.2 million and $44.9 million , respectively, at the date of the sale using a discount rate of 2.8% . The accretion on the notes receivable totaled $0.3 million for the three months ended March 31, 2017 , and is recorded in interest expense, net, in the Consolidated Statements of Operations and Comprehensive Income (Loss). The first anniversary payment was received on July 2, 2016. The present value of the remaining notes receivable is $47.2 million and is recorded in current assets at March 31, 2017 . There were no indications for impairment as of March 31, 2017 and December 31, 2016.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT As of April 26, 2017, the Company advanced Martin Shkreli, the Company's former Chief Executive Officer, the remaining $2.0 million due to him pursuant to the advancement settlement agreement entered into in November 2016, of which 35% is to be refunded to the Company if a settlement with Mr. Shkreli is reached prior to the start of the trial involving Mr. Shkreli before the United States District Court for the Eastern District of New York.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 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 period ended March 31, 2017 the Company recorded tax expense of $0.3 million , 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 Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. As of March 31, 2017 , the Company held $206.3 million in available for sale debt securities that are affected by this ASU. If adopted as of March 31, 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 March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, these amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As of March 31, 2017 , the Company had $206.3 million of marketable debt securities of which there are $1.3 million in unamortized premiums. The Company is still reviewing the call provisions for any of its purchased debt securities to determine the full impact of this adoption on the Company's consolidated financial statements.
Business Combination	The acquisition was accounted for under the purchase method of accounting in accordance with Accounting Standard Codification ("ASC") 805. The fair value of assets acquired and liabilities assumed was based upon a valuation and the Company’s estimates. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from acquired product rights for L-UDCA, licenses, trade names and developed technologies, present value and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.
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 Income (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 March 31, 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 earnings (loss) per common share is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. The Company’s potentially dilutive shares, which include outstanding stock options, restricted stock units, warrants, and shares issuable upon conversion of the Notes, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax (Expense) Benefit	The following table summarizes our effective tax rate and income tax (expense) benefit for the three months ended March 31, 2017 and 2016 (in thousands except for percentages): Three Months Ended March 31, 2017 2016 Effective tax rate 15.7 % (82.5 )% Income tax benefit 2,064 5,070

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	3 Months Ended
	Mar. 31, 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)

MARKETABLE SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Schedule of marketable securities	Marketable securities consisted of the following ( in thousands ): March 31, 2017 December 31, 2016 Marketable other than equity securities: Commercial paper $ 30,393 $ 30,303 Corporate debt securities 125,975 134,570 Securities of government sponsored entities 49,922 49,998 Total Marketable Securities: $ 206,290 $ 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 March 31, 2017 ( in thousands ): Remaining Contractual Maturity Amortized Cost Unrealized Gains Unrealized Losses Aggregate Estimated Fair Value Marketable other than equity securities: Commercial paper Less than 1 $ 30,408 $ — $ (15 ) $ 30,393 Corporate debt securities Less than 1 83,267 — (150 ) 83,117 Securities of government-sponsored entities Less than 1 19,500 — (12 ) 19,488 Total maturity less than 1 year 133,175 — (177 ) 132,998 Corporate debt securities 1 to 2 43,042 — (184 ) 42,858 Securities of government-sponsored entities 1 to 2 30,470 13 (49 ) 30,434 Total maturity 1 to 2 years 73,512 13 (233 ) 73,292 Total available-for-sale securities $ 206,687 $ 13 $ (410 ) $ 206,290 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

DERIVATIVE FINANCIAL INSTRUME27

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 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 March 31, 2017 and the Monte Carlo Simulation as of December 31, 2016 , using the following assumptions: March 31, 2017 December 31, 2016 Fair value of common stock $ 18.46 $ 18.93 Remaining life of the warrants (in years) .9 - 2.8 years 1.2 - 3.0 years Risk-free interest rate 1.0 - 1.4% .89 - 1.48% Expected volatility 45 - 61% 55 - 75% Dividend yield — % — %

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of fair value on a recurring basis	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 March 31, 2017 ( in thousands ): As of March 31, 2017 Total carrying and estimated fair value Quoted prices in active markets Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash and cash equivalents $ 41,871 $ 41,871 $ — $ — Marketable securities, available-for-sale 206,290 — 206,290 — Total $ 248,161 $ 41,871 $ 206,290 $ — Liabilities: Derivative liability related to warrants $ 21,180 $ — $ — $ 21,180 Business combination-related contingent consideration 89,082 — — 89,082 Total $ 110,262 $ — $ — $ 110,262 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 December 31, 2016 ( in thousands ): 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	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 three months ended March 31, 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 (1,260 ) Balance at March 31, 2017 $ 21,180
Schedule of summary of changes in estimated acquisition related contingent consideration	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 three months ended March 31, 2017 ( in thousands ): Fair Value Measurements of Acquisition-Related Contingent Consideration Balance at January 1, 2017 $ 87,478 Increase from revaluation of contingent consideration 3,344 Contractual payments accrued at March 31, 2017 (1,808 ) Foreign currency impact 68 Balance at March 31, 2017 $ 89,082

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived amortizable intangible assets	The following table sets forth amortizable intangible assets as of March 31, 2017 and December 31, 2016 ( in thousands ): March 31, 2017 December 31, 2016 Finite-lived intangible assets $ 218,645 $ 215,540 Less: accumulated amortization (37,687 ) (33,497 ) Net carrying value $ 180,958 $ 182,043
Schedule of amortization expense	The following table summarizes amortization expense for the three months ended March 31, 2017 and 2016 ( in thousands ): Three Months Ended March 31, 2017 2016 Research and development $ 81 $ 82 Selling, general and administrative 4,090 3,803 Total amortization expense $ 4,171 $ 3,885

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses at March 31, 2017 and December 31, 2016 consisted of the following ( in thousands ): March 31, 2017 December 31, 2016 Government rebates payable $ 7,099 $ 6,967 Compensation related costs 4,170 7,441 Accrued royalties and contingent consideration 5,124 5,766 Research and development 8,845 7,311 Selling, general and administrative 2,630 3,333 Miscellaneous accrued 2,324 2,490 $ 30,192 $ 33,308

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of basic and diluted net income (loss) per share	Basic and diluted net earnings (loss) per share is calculated as follows (net income amounts are stated in thousands) : Three Months Ended March 31, 2017 March 31, 2016 Shares Net Loss EPS Shares Net Income EPS Basic Earnings per Share 38,045,317 $ (11,090 ) $ (0.29 ) 36,520,186 $ 11,216 $ 0.31 Dilutive shares related to warrants 1,113,605 — 1,427,293 — Change in fair value of derivative instruments — (1,260 ) — (14,340 ) Dilutive net earnings (loss) per share 39,158,922 $ (12,350 ) $ (0.32 ) 37,947,479 $ (3,124 ) $ (0.08 )
Schedule of common stock options, convertible debt and restricted stock units anti-dilutive	For the three months ended March 31, 2017 and 2016 , the following shares were excluded because they were anti-dilutive: Three Months Ended March 31, 2017 March 31, 2016 Restricted stock units 331,946 341,606 Convertible debt 2,642,160 2,642,160 Options 6,404,524 5,609,418 Total anti-dilutive shares 9,378,630 8,593,184

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 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 July 2017 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 Carlsbad CA June 2017 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 March 31, 2017 ( in thousands ): Total Less than 1 year 1-3 years 3-5 years More than 5 years Operating leases $ 10,222 $ 1,844 $ 2,745 $ 3,486 $ 2,147 Note payable, including contractual interest 65,503 4,070 52,933 4,000 4,500 Sales support services 2,950 416 833 833 868 Product supply contracts 1,372 893 479 — — Purchase order commitments 898 785 113 — — $ 80,945 $ 8,008 $ 57,103 $ 8,319 $ 7,515

SHARE BASED COMPENSATION (Table

SHARE BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of restricted stock activity	The following table summarizes the Company’s restricted stock activity during the three months ended March 31, 2017 : Number of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested December 31, 2016 407,746 $ 19.88 Granted 60,375 19.72 Vested (77,499 ) 15.62 Forfeited/canceled (1,500 ) 25.23 Unvested March 31, 2017 389,122 $ 20.68
Schedule of stock option issuances and balances outstanding	The following table summarizes stock option activity during the three months ended March 31, 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 220,000 19.57 Exercised (177,256 ) 11.08 Forfeited/canceled (181,957 ) 27.00 Outstanding at March 31, 2017 6,291,357 $ 16.88 7.55 $ 26,537
Schedule of Share based compensation expenses	The following table sets forth total non-cash stock-based compensation by operating statement classification for the three months ended March 31, 2017 and 2016 ( in thousands ): Three Months Ended March 31, 2017 2016 Research and development $ 2,656 $ 2,486 Selling, general & administrative 4,437 4,307 Total $ 7,093 $ 6,793

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory, net of reserves, consisted of the following at March 31, 2017 and December 31, 2016 ( in thousands ): March 31, 2017 December 31, 2016 Raw materials $ 3,176 $ 1,336 Finished goods 1,575 1,490 Total inventory $ 4,751 $ 2,826

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Reversal of prepaid tax asset related to intra-entity transfer			$ (4,900)
Income tax expense (benefit)	$ (2,064)	$ (5,070)
Marketable securities	206,290		214,871
Available-for-sale securities, current	206,290		214,871
Available-for-sale securities, debt securities, unamortized premium	1,300
Accounting Standards Update 2016-09
Debt Instrument [Line Items]
Income tax expense (benefit)	$ 300
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 - Additional Infor

INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Effective tax rate	15.70%	(82.50%)
Income tax benefit	$ 2,064	$ 5,070

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income tax benefit	$ 2,064,000	$ 5,070,000
Effective tax rate	15.70%	(82.50%)
Federal statutory income tax rate	35.00%
Unrecognized tax benefits	$ 1,500,000		$ 1,500,000
Unrecognized tax benefits, income tax penalties and interest expense	$ 0

BUSINESS COMBINATION (Details)

BUSINESS COMBINATION (Details) - Liquid Ursodeoxycholic Acid (L-UDCA) $ in Thousands	Jun. 16, 2016USD ($)
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

BUSINESS COMBINATION - Purchase Price Allocation (Details) - Liquid Ursodeoxycholic Acid (L-UDCA) $ in Thousands	Jun. 16, 2016USD ($)
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 - Additio

MARKETABLE SECURITIES - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Proceeds from the sale/maturity of marketable securities	$ 8,440	$ 17,495
Purchase of marketable securities	$ 0	$ 24,652

MARKETABLE SECURITIES - Marketa

MARKETABLE SECURITIES - Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	$ 206,290	$ 214,871
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	30,393	30,303
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	125,975	134,570
Securities of government sponsored entities
Schedule of Available-for-sale Securities [Line Items]
Marketable securities	$ 49,922	$ 49,998

MARKETABLE SECURITIES - Availab

MARKETABLE SECURITIES - Available for Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 206,687	$ 215,414
Unrealized Gains	13	7
Unrealized Losses	(410)	(550)
Aggregate Estimated Fair Value	206,290	214,871
Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	133,175	114,624
Unrealized Gains	0	7
Unrealized Losses	(177)	(128)
Aggregate Estimated Fair Value	132,998	114,503
1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	73,512	100,790
Unrealized Gains	13	0
Unrealized Losses	(233)	(422)
Aggregate Estimated Fair Value	73,292	100,368
Commercial paper | Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	30,408	30,330
Unrealized Gains	0	0
Unrealized Losses	(15)	(27)
Aggregate Estimated Fair Value	30,393	30,303
Corporate debt securities | Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	83,267	64,794
Unrealized Gains	0	7
Unrealized Losses	(150)	(91)
Aggregate Estimated Fair Value	83,117	64,710
Corporate debt securities | 1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	43,042	70,207
Unrealized Gains	0	0
Unrealized Losses	(184)	(347)
Aggregate Estimated Fair Value	42,858	69,860
Securities of government sponsored entities | Less than 1 year
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	19,500	19,500
Unrealized Gains	0	0
Unrealized Losses	(12)	(10)
Aggregate Estimated Fair Value	19,488	19,490
Securities of government sponsored entities | 1 to 2 years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	30,470	30,583
Unrealized Gains	13	0
Unrealized Losses	(49)	(75)
Aggregate Estimated Fair Value	$ 30,434	$ 30,508

DERIVATIVE FINANCIAL INSTRUME43

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Warrant $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)tranche	Mar. 31, 2016USD ($)
Derivative [Line Items]
Number of tranches | tranche	5
Recorded gain on change in estimated fair value of warrants | $	$ 1.3	$ 14.3

DERIVATIVE FINANCIAL INSTRUME44

DERIVATIVE FINANCIAL INSTRUMENTS - Valuation Assumptions (Details) - Warrant - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Fair value of common stock (in dollars per share)	$ 18.46	$ 18.93
Dividend yield	0.00%	0.00%
Minimum
Derivative [Line Items]
Remaining life of the warrants (in years)	10 months 24 days	1 year 2 months 12 days
Risk-free interest rate	1.00%	0.89%
Expected volatility	45.00%	55.00%
Maximum
Derivative [Line Items]
Remaining life of the warrants (in years)	2 years 9 months 18 days	3 years
Risk-free interest rate	1.40%	1.48%
Expected volatility	61.00%	75.00%

FAIR VALUE MEASUREMENTS - Addit

FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Business Acquisition [Line Items]
Fair value of convertible debt	$ 62,300
Increase from revaluation of contingent consideration	3,344	$ 2,695
Product Rights Chenodal
Business Acquisition [Line Items]
Increase from revaluation of contingent consideration	1,400	$ 1,300
Product Rights Cholbam
Business Acquisition [Line Items]
Increase from revaluation of contingent consideration	1,100
Product Rights L-UDCA
Business Acquisition [Line Items]
Increase from revaluation of contingent consideration	$ 800

FAIR VALUE MEASUREMENTS - Asset

FAIR VALUE MEASUREMENTS - Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 206,290	$ 214,871
Derivative liability related to warrants
Derivative liability related to warrants	21,180	22,440
Recurring basis
Assets:
Cash and cash equivalents	41,871	41,002
Cash and cash equivalents	206,290	214,871
Total	248,161	255,873
Derivative liability related to warrants
Derivative liability related to warrants	21,180	22,440
Business combination-related contingent consideration	89,082	87,478
Total	110,262	109,918
Recurring basis | Quoted prices in active markets (Level 1)
Assets:
Cash and cash equivalents	41,871	39,929
Cash and cash equivalents	0	0
Total	41,871	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	0	1,073
Cash and cash equivalents	206,290	214,871
Total	206,290	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	0
Cash and cash equivalents	0	0
Total	0	0
Derivative liability related to warrants
Derivative liability related to warrants	21,180	22,440
Business combination-related contingent consideration	89,082	87,478
Total	$ 110,262	$ 109,918

FAIR VALUE MEASUREMENTS - Warra

FAIR VALUE MEASUREMENTS - Warrants Liability (Details) - Warrants liability $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 22,440
Change in estimated fair value of liability classified warrants	(1,260)
Ending Balance	$ 21,180

FAIR VALUE MEASUREMENTS - Acqui

FAIR VALUE MEASUREMENTS - Acquisition-related Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Business Combination, Acquisition Related Contingent Consideration [Roll Forward]
Increase from revaluation of contingent consideration	$ 3,344	$ 2,695
Recurring basis
Business Combination, Acquisition Related Contingent Consideration [Roll Forward]
Beginning Balance	87,478
Ending Balance	89,082
Recurring basis | Level 3
Business Combination, Acquisition Related Contingent Consideration [Roll Forward]
Beginning Balance	87,478
Increase from revaluation of contingent consideration	3,344
Contractual payments accrued at March 31, 2017	(1,808)
Foreign currency impact	68
Ending Balance	$ 89,082

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Net book value of amortizable intangible assets	$ 180,958	$ 182,043

INTANGIBLE ASSETS - Amortizable

INTANGIBLE ASSETS - Amortizable Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets	$ 218,645	$ 215,540
Less: accumulated amortization	(37,687)	(33,497)
Net carrying value	$ 180,958	$ 182,043

INTANGIBLE ASSETS - Amortizatio

INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 4,171	$ 3,885
Research and development
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	81	82
Selling, general and administrative
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 4,090	$ 3,803

CONVERTIBLE NOTES PAYABLE (Deta

CONVERTIBLE NOTES PAYABLE (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	May 29, 2014
Debt Instrument [Line Items]
Convertible debt	$ 44,583,000	$ 44,422,000
Note Purchase Agreement | Senior convertible notes due 2019
Debt Instrument [Line Items]
Credit agreement amount			$ 46,000,000
Initial conversion price (in dollars per share)			$ 17.41
Interest rate percentage			4.50%

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Government rebates payable	$ 7,099	$ 6,967
Compensation related costs	4,170	7,441
Accrued royalties and contingent consideration	5,124	5,766
Research and development	8,845	7,311
Selling, general and administrative	2,630	3,333
Miscellaneous accrued	2,324	2,490
Accrued expenses	$ 30,192	$ 33,308

EARNINGS (LOSS) PER SHARE - EPS

EARNINGS (LOSS) PER SHARE - EPS Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Shares
Basic net earnings (loss) per Share (in shares)	38,045,317	36,520,186
Weighted average common shares outstanding, diluted (in shares)	39,158,922	37,947,479
Change in fair value of derivative instruments (in shares)	0	0
Dilutive securities (in shares)	39,158,922	37,947,479
Net Income
Net income (loss)	$ (11,090)	$ 11,216
Change in fair value of derivative instruments	(1,260)	(14,340)
Dilutive net earnings (loss) per share	$ (12,350)	$ (3,124)
Basic earnings per share, EPS (in dollars per share)	$ (0.29)	$ 0.31
Diluted earnings per share, EPS (in dollars per share)	$ (0.32)	$ (0.08)
Warrant
Shares
Weighted average common shares outstanding, diluted (in shares)	1,113,605	1,427,293

EARNINGS (LOSS) PER SHARE - Ant

EARNINGS (LOSS) PER SHARE - Antidilutive Shares (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	9,378,630	8,593,184
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	331,946	341,606
Convertible debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	2,642,160	2,642,160
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation	6,404,524	5,609,418

COMMITMENTS AND CONTINGENCIES L

COMMITMENTS AND CONTINGENCIES Leases and Subleases Commitment (Details) - Lease Agreement	3 Months Ended
	Mar. 31, 2017USD ($)
San Diego CA- Corporate
Other Commitments [Line Items]
Annual Base Rent	$ 1,100,000
CALIFORNIA
Other Commitments [Line Items]
Annual Base Rent	500,000
NEW YORK
Other Commitments [Line Items]
Annual Base Rent	$ 500,000

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Contractual Commitments (Details) $ in Thousands	Mar. 31, 2017USD ($)
Operating leases
Total	$ 10,222
Less than 1 year	1,844
1-3 years	2,745
3-5 years	3,486
More than 5 years	2,147
Purchase order commitments
Total	898
Less than 1 year	785
1-3 years	113
3-5 years	0
More than 5 years	0
Total
Total	80,945
Less than 1 year	8,008
1-3 years	57,103
3-5 years	8,319
More than 5 years	7,515
Note payable, including contractual interest
Other commitments
Total	65,503
Less than 1 year	4,070
1-3 years	52,933
3-5 years	4,000
More than 5 years	4,500
Sales support services
Other commitments
Total	2,950
Less than 1 year	416
1-3 years	833
3-5 years	833
More than 5 years	868
Product supply contracts
Other commitments
Total	1,372
Less than 1 year	893
1-3 years	479
3-5 years	0
More than 5 years	$ 0

COMMITMENTS AND CONTINGENCIES58

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands	Apr. 26, 2017	Apr. 22, 2016	Dec. 17, 2015	Sep. 19, 2014	Apr. 30, 2017	Nov. 30, 2016	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2016
Martin Shkreli
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								5,200
Payments for legal settlements							$ 1,000	$ 2,300
Donoghue v. Retrophin, Inc.
Commitment And Contingency [Line Items]
Litigation settlement				$ 2,025
Donoghue v. Retrophin, Inc. | Martin Shkreli
Commitment And Contingency [Line Items]
Litigation settlement				600
Retrophin, Inc. v. Shkreli | Martin Shkreli
Commitment And Contingency [Line Items]
Litigation settlement				$ 2,025
Legal fees paid in advance		$ 400							$ 2,800
Subsequent event | Martin Shkreli
Commitment And Contingency [Line Items]
Legal fees paid in advance	$ 2,000
Legal fees					$ 2,000

SHARE BASED COMPENSATION - Rest

SHARE BASED COMPENSATION - Restricted Stock Activity (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Restricted stock units
Number of Restricted Stock Units
Beginning Balance (in shares)	407,746,000
Granted (in shares)	60,375,000
Vested (in shares)	(77,499,000)
Forfeited/canceled (in shares)	(1,500,000)
Ending Balance (in share)	389,122,000
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 19.88
Granted (in dollars per share) | $ / shares	19,720
Vested (in dollars per share) | $ / shares	15,620
Forfeited/canceled (in dollars per share) | $ / shares	25,230
Ending balance (in dollars per share) | $ / shares	$ 20.68
Unamortized stock compensation expense | $	$ 4.2
Weighted-average recognition period (in years)	1 year 1 month 6 days
Performance Based Restricted Stock Awards
Number of Restricted Stock Units
Granted (in shares)	30,000

SHARE BASED COMPENSATION - Stoc

SHARE BASED COMPENSATION - Stock Option Activity (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Weighted Average Exercise Price
Number of shares exercisable (in shares)	3,900,000
Weighted average exercise price (in dollars per share)	$ 15.03
Stock Options
Shares Underlying Options
Beginning Balance (in shares)	6,430,570
Granted (in shares)	220,000
Exercised (in shares)	(177,256)
Forfeited/canceled (in shares)	(181,957)
Ending Balance (in shares)	6,291,357	6,430,570
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 16.91
Granted (in dollars per share)	19.57
Exercised (in dollars per share)	11.08
Forfeited/canceled (in dollars per share)	27
Ending balance (in dollars per share)	$ 16.88	$ 16.91
Weighted Average Remaining Contractual Life (years)	7 years 6 months 18 days	7 years 7 months 21 days
Aggregate Intrinsic Value (in thousands)	$ 26,537,000	$ 30,088
Unamortized stock compensation expense	$ 28,100,000
Weighted-average recognition period (in years)	1 year 10 months 24 days

SHARE BASED COMPENSATION - St61

SHARE BASED COMPENSATION - Stock based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 7,093	$ 6,793
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2,656	2,486
Selling, general & administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 4,437	$ 4,307

SHARE BASED COMPENSATION - Exer

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

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 3,176	$ 1,336
Finished goods	1,575	1,490
Total inventory	4,751	2,826
Inventory reserve	$ 600	$ 600

RECEIVABLES (Details)

RECEIVABLES (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jul. 31, 2015	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net of reserves		$ 15,427	$ 18,510
Note receivable, current		47,173	$ 46,849
Asklepion Pharmaceuticals, LLC | Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of asset	$ 245,000
Discount rate of future payments to be received	2.80%
At Time Of Closing | Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Present value of future payments to be received	$ 46,200
At Time Of Closing | Asklepion Pharmaceuticals, LLC | Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of asset	150,000
Due On First And Second Anniversaries Of Closing | Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Present value of future payments to be received	44,900
Due On First And Second Anniversaries Of Closing | Asklepion Pharmaceuticals, LLC | Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of asset	$ 47,500
Interest expense | Asklepion Pharmaceuticals, LLC | Asset Purchase Agreement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accretion on notes receivable		$ 300

SUBSEQUENT EVENT Narrative (Det

SUBSEQUENT EVENT Narrative (Details) - Martin Shkreli $ in Millions	Apr. 26, 2017USD ($)	Nov. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Subsequent Event [Line Items]
Legal fees paid in advance		$ 2.8	$ 1.8	$ 2.8
Subsequent event
Subsequent Event [Line Items]
Legal fees paid in advance	$ 2
Legal fees paid in advance, portion to be refunded if settled pre-trial	0.35