Vidara Therapeutics International Public 10-Q/A 5 Sep 14 2014 Q2 Quarterly report (amended) Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 25, 2014	Aug. 25, 2014
		Euro Denominated Ordinary Shares [Member]	US Dollar Denominated Ordinary Shares [Member]
Document Information [Line Items]	'	'	'
Document Type	'10-Q/A	'	'
Amendment Flag	'false	'	'
Document Period End Date	30-Jun-14	'	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'Q2	'	'
Entity Registrant Name	'Vidara Therapeutics International Public Ltd Co	'	'
Entity Central Index Key	'0001602949	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Filer Category	'Non-accelerated Filer	'	'
Entity Common Stock, Shares Outstanding	'	40,000	44,674,450

Combined_Balance_Sheets

Combined Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current assets	'	'
Cash and cash equivalents	$42,261,939	$30,276,127
Accounts receivable	13,025,183	6,623,580
Inventory	1,801,885	3,299,449
Prepaid expenses	281,831	440,402
Deferred tax asset	1,325,466	1,271,000
Total current assets	58,696,304	41,910,558
Long-term assets	'	'
Property and equipment	321,804	403,844
Intangible assets	45,966,060	48,125,408
Deferred tax asset	4,238,193	4,564,000
Total long-term assets	50,526,057	53,093,252
Total assets	109,222,361	95,003,810
Current liabilities	'	'
Accounts payable	930,895	1,164,569
Accrued expenses	12,011,766	13,514,972
Customer deposits	1,578,739	338,909
Current portion of long-term debt	'	617,104
Due to Parent	953,771	514,998
Total current liabilities	15,475,171	16,150,552
Subordinated debt-related party	5,694,632	5,637,279
Unsecured subordinated promissory note - Parent	16,929,037	16,929,037
Long-term debt, net of current portion	'	1,169,251
Total liabilities	38,098,840	39,886,119
Shareholders' equity	'	'
Common stock	125	125
Additional paid-in capital	10,419,300	10,104,236
Retained earnings	60,704,096	45,013,330
Total shareholders' equity	71,123,521	55,117,691
Total liabilities and shareholders' equity	$109,222,361	$95,003,810

Combined_Statements_of_Operati

Combined Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
Product sales, net	$18,393,222	$13,516,821	$35,745,688	$25,925,927
Cost of product sales	802,282	1,738,232	1,660,144	3,235,242
Gross profit	17,590,940	11,778,589	34,085,544	22,690,685
Operating expenses	'	'	'	'
Selling expenses	1,995,364	1,729,823	3,791,732	3,254,452
General and administrative expenses	3,008,892	1,963,051	6,134,504	3,294,465
Depreciation and amortization	900,288	1,035,995	2,271,814	2,065,191
Royalty expense	1,897,638	1,334,418	4,934,888	3,944,354
Total operating expenses	7,802,182	6,063,287	17,132,938	12,558,462
Income from operations	9,788,758	5,715,302	16,952,606	10,132,223
Other expense (income)	'	'	'	'
Interest expense, net	247,990	610,167	515,542	1,292,085
Miscellaneous income	-20,048	-28,992	'	'
Miscellaneous expense	'	'	22,372	273,975
Total other expense	227,942	581,175	537,914	1,566,060
Income before provision for income taxes	9,560,816	5,134,127	16,414,692	8,566,163
Income tax expense (benefit)	369,926	-760,000	723,926	-1,520,000
Net income	$9,190,890	$5,894,127	$15,690,766	$10,086,163

Combined_Statements_of_Cash_Fl

Combined Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows provided by operating activities	'	'
Net income	$15,690,766	$10,086,163
Adjustments to reconcile net income to cash provided by operating activities:	'	'
Depreciation and amortization	2,271,814	2,065,191
Change in fair value of unfavorable purchase commitment	-4,473	-4,303
Share-based compensation	315,064	26,260
Change in fair value of contingent royalty payments	'	271,718
Accretion of PIK interest expense	57,353	56,206
Deferred income taxes	271,341	-1,801,420
Change in working capital items:	'	'
Accounts receivable	-6,401,603	1,144,560
Inventory	1,497,564	3,120,156
Prepaid expenses	158,571	-256,215
Accounts payable and accrued liabilities	-1,293,634	260,432
Customer deposits	1,239,830	-631,719
Cash provided by operating activities	13,802,593	14,337,029
Cash flows used in investing activities	'	'
Acquisition of property and equipment	-30,426	-396,938
Cash flows used by financing activities	'	'
Payment towards reduction of long-term debt	-1,786,355	-3,125,000
Increase in cash and cash equivalents	11,985,812	10,815,091
Cash and cash equivalents, beginning of the period	30,276,127	23,519,811
Cash and cash equivalents, end of period	42,261,939	34,334,902
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION	'	'
Cash paid for interest	491,491	1,201,357
Cash paid for income taxes	$320,000	$435,300

Summary_of_Significant_Account

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	Note 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Nature of Operations
	Vidara Therapeutics International plc, its wholly owned subsidiaries, Vidara Therapeutics Ltd., AGI Therapeutics Ltd., Aravid Ltd. and Vidara Therapeutics Research Ltd. (collectively, “Vidara International”) and Vidara Therapeutics Inc. (collectively, the “Company”) is a biopharmaceutical company focused on the treatment of patients with serious, difficult-to-treat inherited disorders and rare diseases. Currently, the Company’s only commercial product and source of revenue is ACTIMMUNE (interferon gamma-1b), an injectable biologic drug prescribed for the management of two rare disorders, chronic granulomatous disease (“CGD”) and severe, malignant osteopetrosis (“SMO”). ACTIMMUNE is the only drug currently approved by the U.S. Food and Drug Administration for the treatment for CGD and SMO in the United States.
	Principles of Combination
	The combined financial statements include the accounts of Vidara International and Vidara Therapeutics Inc., which are related through common ownership and management. Significant intercompany balances and transactions have been eliminated in combination. Vidara International and Vidara Therapeutics Inc. are wholly-owned subsidiaries of Vidara Therapeutics Holdings, LLC (“Parent”).
	Basis of Presentation
	The unaudited combined financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the financial statements have been included. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The December 31, 2013 combined balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. For further information, refer to the combined financial statements and notes for the year ended December 31, 2013 that were included in Vidara Therapeutics International’s Registration Statement on Form S-4 (No. 333-197052), as amended.
	Significant Accounting Policies
	The Company’s significant accounting policies are disclosed in the audited combined financial statements for the year ended December 31, 2013 that were included in Vidara Therapeutics International’s Registration Statement on Form S-4 (No. 333-197052), as amended. Since the date of those combined financial statements, there have been no material changes to the Company’s significant accounting policies.
	Use of Estimates
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates are used for, but not limited to, the accounting for the allowance for doubtful accounts, asset lives used to calculate depreciation and amortization, intangibles and other long-lived asset lives, assumptions and inputs for fair value measurements, reserves for sales discounts and allowances for returns, rebates and chargebacks and in the accounting for income taxes.
	Actual results could differ from these estimates.

Recently_Issued_and_Adopted_Ac

Recently Issued and Adopted Accounting Pronouncements	6 Months Ended
	Jun. 30, 2014
Accounting Changes And Error Corrections [Abstract]	'
Recently Issued and Adopted Accounting Pronouncements	'
	Note 2—RECENTLY ISSUED AND ADOPTED ACCOUNTING PRONOUNCEMENTS
	Recently Issued Accounting Standards
	From time to time, the Company adopts, as of the specified effective date, new accounting pronouncements issued by the Financial Accounting Standards Board (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 the Company’s financial position or results of operations upon adoption. During the quarter ended June 30, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The new standard will be effective for the Company on January 1, 2017 and early adoption is not permitted. The new standard permits the use of either the retrospective or cumulative effect transition method on adoption. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures, including which transition method it will adopt.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Inventory	'
	Note 3—INVENTORY
	Inventory is stated at the lower of cost or market value. Inventory consists of finished product. Cost is determined using the first-in, first-out method, and market value is considered to be the net realizable value. As part of the ACTIMMUNE business combination, the Company entered into an exclusive supply agreement with Boehringer Ingelheim to manufacture the ACTIMMUNE active drug substance and commercial quantities of the ACTIMMUNE finished drug product.

Accrued_Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2014
Payables And Accruals [Abstract]	'
Accrued Expenses	'
	Note 4—ACCRUED EXPENSES
	Accrued expenses consisted of the following at the dates indicated:
		June 30,		December 31,
		2014		2013
	Customer chargebacks and rebates	$	7,169,880	$	6,610,758
	Product returns		352,119		802,869
	Royalties		2,397,639		3,024,313
	Accrued compensation and related expenses		485,315		2,048,596
	Interest		58,112		90,516
	Inventory purchase obligation		437,885		437,457
	Other		1,110,816		500,463
		$	12,011,766	$	13,514,972

LongTerm_Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
Long-Term Debt	'
	Note 5—LONG-TERM DEBT
	In March 2014, the Company paid off the total outstanding principal balance of a term loan of $1,786,355 plus accrued interest and the related credit facility was terminated.
	The Company capitalized approximately $1,540,000 in related issuance costs and amortized those costs over the term of the debt agreement under the effective interest method. Upon the payoff of the term loan in March 2014, the Company amortized the remaining issuance costs. Amortization expense related to long-term debt issuance costs totaled approximately $461,000 and $258,000 for the six-month periods ended June 30, 2014 and 2013, respectively.

Subsequent_Events

Subsequent Events	6 Months Ended
	Jun. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	Note 6—SUBSEQUENT EVENTS
	Pursuant to the Subsequent Events topic of the FASB Codification, the Company evaluated subsequent events after June 30, 2014 through August 25, 2014, representing the date that these combined financial statements were approved by the Company’s management and are available to be issued. In March 2014, the Company entered into a definitive agreement with Horizon Pharma, Inc., a U.S. public company, regarding a reverse merger transaction. The transaction would value the Company at an enterprise value, on a cash-free, debt-free basis, of approximately $497 million including $200 million in cash and $297 million in the potential acquirer’s common stock based on the closing price of the acquirer’s common stock on August 25, 2014. The SEC declared the registration statement relating to the transaction effective on August 7, 2014. The transaction is subject to shareholder approval of the acquirer’s stockholders and is expected to close on or around September 19, 2014. In July 2014, the Company paid in full all subordinated debts outstanding with related parties. Additionally, the Company concluded that no material transactions occurred subsequent to June 30, 2014, that provided additional evidence about conditions that existed at June 30, 2014, or after that requires adjustment to the financial statements.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Nature of Operations	'
	Nature of Operations
	Vidara Therapeutics International plc, its wholly owned subsidiaries, Vidara Therapeutics Ltd., AGI Therapeutics Ltd., Aravid Ltd. and Vidara Therapeutics Research Ltd. (collectively, “Vidara International”) and Vidara Therapeutics Inc. (collectively, the “Company”) is a biopharmaceutical company focused on the treatment of patients with serious, difficult-to-treat inherited disorders and rare diseases. Currently, the Company’s only commercial product and source of revenue is ACTIMMUNE (interferon gamma-1b), an injectable biologic drug prescribed for the management of two rare disorders, chronic granulomatous disease (“CGD”) and severe, malignant osteopetrosis (“SMO”). ACTIMMUNE is the only drug currently approved by the U.S. Food and Drug Administration for the treatment for CGD and SMO in the United States.
Principles of Combination	'
	Principles of Combination
	The combined financial statements include the accounts of Vidara International and Vidara Therapeutics Inc., which are related through common ownership and management. Significant intercompany balances and transactions have been eliminated in combination. Vidara International and Vidara Therapeutics Inc. are wholly-owned subsidiaries of Vidara Therapeutics Holdings, LLC (“Parent”).
Basis of Presentation	'
	Basis of Presentation
	The unaudited combined financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the financial statements have been included. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The December 31, 2013 combined balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. For further information, refer to the combined financial statements and notes for the year ended December 31, 2013 that were included in Vidara Therapeutics International’s Registration Statement on Form S-4 (No. 333-197052), as amended.
Significant Accounting Policies	'
	Significant Accounting Policies
	The Company’s significant accounting policies are disclosed in the audited combined financial statements for the year ended December 31, 2013 that were included in Vidara Therapeutics International’s Registration Statement on Form S-4 (No. 333-197052), as amended. Since the date of those combined financial statements, there have been no material changes to the Company’s significant accounting policies.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates are used for, but not limited to, the accounting for the allowance for doubtful accounts, asset lives used to calculate depreciation and amortization, intangibles and other long-lived asset lives, assumptions and inputs for fair value measurements, reserves for sales discounts and allowances for returns, rebates and chargebacks and in the accounting for income taxes.
	Actual results could differ from these estimates.

Accrued_Expenses_Tables

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2014
Payables And Accruals [Abstract]	'
Schedule of Accrued Expenses	'
	Accrued expenses consisted of the following at the dates indicated:
		June 30,		December 31,
		2014		2013
	Customer chargebacks and rebates	$	7,169,880	$	6,610,758
	Product returns		352,119		802,869
	Royalties		2,397,639		3,024,313
	Accrued compensation and related expenses		485,315		2,048,596
	Interest		58,112		90,516
	Inventory purchase obligation		437,885		437,457
	Other		1,110,816		500,463
		$	12,011,766	$	13,514,972

Accrued_Expenses_Schedule_of_A

Accrued Expenses - Schedule of Accrued Expenses (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Payables And Accruals [Abstract]	'	'
Customer chargebacks and rebates	$7,169,880	$6,610,758
Product returns	352,119	802,869
Royalties	2,397,639	3,024,313
Accrued compensation and related expenses	485,315	2,048,596
Interest	58,112	90,516
Inventory purchase obligation	437,885	437,457
Other	1,110,816	500,463
Total	$12,011,766	$13,514,972

LongTerm_Debt_Additional_Infor

Long-Term Debt - Additional Information (Detail) (USD $)	1 Months Ended	6 Months Ended
	Mar. 31, 2014	Jun. 30, 2014	Jun. 30, 2013
Debt Disclosure [Abstract]	'	'	'
Repayment of term loan	$1,786,355	$1,786,355	$3,125,000
Capitalized debt issuance costs	'	1,540,000	'
Amortization expense related to long-term debt issuance costs	'	$461,000	$258,000

Subsequent_Events_Additional_I

Subsequent Events - Additional Information (Detail) (Scenario, Plan [Member], Reverse Merger Agreement with Horizon Pharma, Inc. [Member], USD $)	Mar. 18, 2014
In Millions, unless otherwise specified
Scenario, Plan [Member] | Reverse Merger Agreement with Horizon Pharma, Inc. [Member]	'
Subsequent Event [Line Items]	'
Reverse merger enterprise value, net	$497
Reverse merger enterprise value, cash	200
Reverse merger enterprise value, common stock	$297