RVL Pharmaceuticals (RVLPQ) 10-Q 8 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 07, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Osmotica Pharmaceuticals plc
Entity Central Index Key	1,739,426
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		52,518,924
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 32,202,522	$ 34,743,152
Trade accounts receivable, net	72,718,271	37,637,957
Inventories, net	25,593,897	16,946,870
Prepaid expenses and other current assets	18,802,004	25,814,289
Total current assets	149,316,694	115,142,268
Property, plant and equipment, net	31,301,546	31,410,133
Intangibles, net	521,238,774	585,388,710
Goodwill	152,815,716	152,815,716
Other non‑current assets	799,658	942,419
Total assets	855,472,388	885,699,246
Current liabilities:
Trade accounts payable	27,860,913	36,069,936
Accrued liabilities	81,576,774	81,926,390
Current portion of long‑term debt, net of deferred financing costs	6,065,749	6,655,604
Current portion of obligation under capital leases	110,769	24,245
Total current liabilities	115,614,205	124,676,175
Long‑term debt, net of non‑current deferred financing costs	310,008,919	313,949,581
Long‑term portion of obligation under capital leases	148,826	57,059
Income taxes payable	1,072,746	1,334,645
Deferred taxes	13,124,607	25,364,055
Other long-term liabilities		1,047,477
Total liabilities	439,969,303	466,428,992
Commitments and contingencies (See Note 11)
Partners’ capital:
Partners’ capital	417,374,758	419,903,400
Accumulated other comprehensive loss	(1,871,673)	(633,146)
Total partners’ capital	415,503,085	419,270,254
Total liabilities and partners’ capital	$ 855,472,388	$ 885,699,246

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues	$ 66,344,845	$ 53,741,183	$ 198,004,599	$ 169,416,754
Cost of goods sold (inclusive of amortization of intangibles)	32,011,554	21,464,233	99,149,685	77,363,924
Gross profit	34,333,291	32,276,950	98,854,914	92,052,830
Selling, general and administrative expenses	17,450,763	13,258,578	51,289,585	41,300,537
Research and development expenses	13,309,602	6,492,183	32,450,682	18,186,905
Impairment of intangible assets	6,173,000	30,747,638	6,173,000	72,447,638
Total operating expenses	36,933,365	50,498,399	89,913,267	131,935,080
Operating (loss) income	(2,600,074)	(18,221,449)	8,941,647	(39,882,250)
Interest expense and amortization of debt discount	5,311,330	7,301,027	15,395,727	21,720,518
Other non‑operating income, net	(434,065)	(1,202,727)	(880,664)	(2,484,598)
Total other non‑operating expense, net	4,877,265	6,098,300	14,515,063	19,235,920
Loss before income taxes	(7,477,339)	(24,319,749)	(5,573,416)	(59,118,170)
Income tax benefit	2,489,029	12,046,928	1,999,323	16,785,658
Net loss	(4,988,310)	(12,272,821)	(3,574,093)	(42,332,512)
Other comprehensive (loss) income, net
Change in foreign currency translation adjustments	(148,183)	292,850	(1,238,527)	416,968
Comprehensive loss	$ (5,136,493)	$ (11,979,971)	$ (4,812,620)	$ (41,915,544)
(Loss) per unit attributable to unitholders
Basic	$ (4.99)	$ (12.27)	$ (3.57)	$ (42.31)
Diluted	$ (4.99)	$ (12.27)	$ (3.57)	$ (42.31)
Weighted average units basic and diluted
Basic and Diluted	1,000,515	1,000,515	1,000,515	1,000,515
Product Revenue
Revenues	$ 65,443,818	$ 54,678,197	$ 196,263,666	$ 162,903,437
Royalty Revenue
Revenues	903,260	(1,085,212)	1,655,541	5,121,751
Licensing and Contract Revenue
Revenues	$ (2,233)	$ 148,198	$ 85,392	$ 1,391,566

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS’ CAPITAL - USD ($)	Partners' capital	Accumulated other comprehensive loss	Total
Increase (Decrease) in Partners' Capital [Roll Forward]
Cumulative effect of change in accounting standard (See Note 2)	$ 1,047,477		$ 1,047,477
Partners' Capital, Beginning Balance at Dec. 31, 2017	419,903,400	$ (633,146)	419,270,254
Increase (Decrease) in Partners' Capital [Roll Forward]
Net loss	(3,574,093)		(3,574,093)
Change in foreign currency translation		(1,238,527)	(1,238,527)
Partners’ distributions	(2,026)		(2,026)
Partners' Capital, Ending Balance at Sep. 30, 2018	$ 417,374,758	$ (1,871,673)	$ 415,503,085

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,574,093)	$ (42,332,512)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	61,323,279	24,938,692
Loss on sale of fixed assets	12,892
Impairment of intangible assets	6,173,000	72,447,638
Deferred income tax benefit	(12,239,448)	(32,786,195)
Bad debt provision	(1,293,005)	(1,052,368)
Change in fair value of contingent consideration		182,396
Payment for contingent consideration		(1,991,288)
Amortization of deferred financing and loan origination fees	1,260,709	1,645,681
Non-cash interest expense		3,960,706
Change in operating assets and liabilities:
Trade accounts receivable, net	(33,820,526)	18,808,736
Inventories, net	(8,647,027)	(132,901)
Prepaid expenses and other current assets	6,441,774	3,877,946
Other non‑current assets	(1,800)
Trade accounts payable	(9,063,242)	(21,848,780)
Accrued and other current liabilities	601,713	10,289,036
Net cash provided by operating activities	7,174,226	36,006,787
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of fixed assets	10,000
Purchase of property, plant and equipment	(2,998,039)	(7,126,104)
Net cash used in investing activities	(2,988,039)	(7,126,104)
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to Partners	(2,026)	(2,544,746)
Contributions from Partners		128,000
Payments on capital lease obligations	(81,822)	(107,821)
Proceeds from insurance financing loan	974,699
Repayment of insurance financing loan	(484,270)
Debt repayment	(6,140,066)	(5,251,908)
Payment for contingent consideration		(8,508,712)
Net cash used in financing activities	(5,733,485)	(16,285,187)
Net change in cash and cash equivalents	(1,547,298)	12,595,496
Effect on cash of changes in exchange rate	(993,332)	524,281
Cash and cash equivalents, beginning of period	34,743,152	19,558,570
Cash and cash equivalents, end of period	32,202,522	32,678,347
Supplemental disclosure of cash and non‑cash transactions:
Cash paid for interest	14,510,054	15,929,055
Income taxes paid	711,696	$ 10,161,472
Purchase of fixed assets by entering into capital lease	$ 260,113

Organization and Nature of Oper

Organization and Nature of Operations	9 Months Ended
	Sep. 30, 2018
Organization and Nature of Operations
Organization and Nature of Operations	Note 1. Organization and Nature of Operations Osmotica Pharmaceuticals plc (formerly known as Lilydale Limited and Osmotica Pharmaceuticals Limited) is an Irish public limited company. Osmotica Holdings S.C.Sp. acquired Osmotica Pharmaceuticals plc on April 30, 2018 for the purpose of facilitating an offering of ordinary shares in an initial public offering. On October 22, 2018, Osmotica Pharmaceuticals plc completed its initial public offering (the “IPO”), in which it issued and allotted 7,647,500 ordinary shares at a public offering price of $7.00 per share. The number of shares issued in the IPO reflected the exercise in full of the underwriters’ option to purchase 997,500 additional ordinary shares. In addition, the Company issued and allotted 2,014,285 ordinary shares at the public offering price in a private placement to investment funds affiliated with Avista Capital Partners, Altchem Limited and an entity controlled by the Company’s Chief Financial Officer. The aggregate net proceeds from the IPO and the private placement were approximately $58.4 million after deducting underwriting discounts and commissions and estimated offering expenses. Immediately prior to the IPO and prior to the commencement of trading of Osmotica Pharmaceuticals plc’s ordinary shares on the Nasdaq Global Select Market, Osmotica Holdings S.C.Sp. undertook a series of restructuring transactions that resulted in Osmotica Pharmaceuticals plc being the direct parent of Osmotica Holdings S.C.Sp with each holder of common units of Osmotica Holdings S.C.Sp. receiving approximately 42.84 ordinary shares of Osmotica Pharmaceuticals plc in exchange for each such common unit. In addition, each holder of an option to purchase common units of Osmotica Holdings S.C.Sp. received an option to purchase the number of ordinary shares of Osmotica Pharmaceuticals plc determined by multiplying the number of units underlying such option by approximately 42.84 (rounded down to the nearest whole share) and dividing the exercise price per unit for such option by approximately 42.84 (rounded up to the nearest whole cent). These transactions are referred to as the “Reorganization”. Until the Reorganization, Osmotica Pharmaceuticals plc did not conduct any operations (other than activities incidental to its formation, the Reorganization and the pursuit of an initial public offering). Upon the completion of the Reorganization, the historical consolidated financial statements of Osmotica Holdings S.C.Sp. became the historical financial statements of Osmotica Pharmaceuticals plc. Accordingly, the accompanying unaudited condensed consolidated financial statements included herein reflect the financial information of Osmotica Holdings S.C.Sp. Osmotica Holdings S.C.Sp.is a Luxembourg special limited partnership, formed on January 28, 2016. Osmotica Holdings US LLC, a subsidiary of Osmotica Holdings S.C.Sp. entered into a fifty‑fifty partnership (the “Merger”), effective February 3, 2016, pursuant to a definitive agreement between Vertical/Trigen Holdings, LLC (“Vertical/Trigen”) and members, and Osmotica Holdings Corp Limited and Subsidiaries. Osmotica Holdings S.C.Sp. and several other holding companies and partnerships were formed as a result of the Merger. Pursuant to the Merger, Vertical/Trigen was deemed to be the accounting acquirer. Osmotica is a fully integrated biopharmaceutical company focused on the development and commercialization of specialty products that target markets with underserved patient populations. Unless otherwise indicated or required by the context, references throughout to “Osmotica,” or the “Company,” refer to (i) prior to the completion of the Reorganization, Osmotica Holdings S.C.Sp. and its consolidated subsidiaries, including, from and after April 30, 2018, Osmotica Pharmaceuticals plc, and (ii) following the completion of the Reorganization, Osmotica Pharmaceuticals plc and its consolidated subsidiaries, including Osmotica Holdings S.C.Sp.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies	Note 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation —The accompanying unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and under the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim reporting. In management’s opinion, the interim financial data presented includes all adjustments (consisting solely of normal recurring items) necessary for fair presentation. All intercompany accounts and transactions have been eliminated. Certain information required by GAAP has been condensed or omitted in accordance with rules and regulations of the SEC. Operating results for the three and nine months ended September 30, 2018, are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2018 or any period thereafter. The accompanying Condensed Consolidated Balance Sheet data as of December 31, 2017 was derived from the audited consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2017. Except for the revenue recognition accounting policy that was updated as a result of adopting Accounting Standards Update (“ASU”) No. 2014‑09, Revenue from Contracts with Customers (Accounting Standards Codification (“ASC”) Topic 606), the Company’s significant accounting policies have not changed substantially from those previously described in the consolidated financial statements for the year ended December 31, 2017 that are included in the Company’s Registration Statement on Form S-1, as amended. Principles of Consolidation —The accompanying condensed consolidated financial statements include the accounts of Osmotica Holdings S.C.Sp. and its wholly owned domestic and foreign subsidiaries. All inter‑company transactions and balances have been eliminated in consolidation. The Company is not involved with variable interest entities. Use of Estimates —The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates. Product Sales —Revenue is recognized at the point in time when the Company’s performance obligations with its customers have been satisfied. At contract inception, the Company determines if the contract is within the scope of ASC Topic 606 and then evaluates the contract using the following five steps: (1) identify the contract with the customer; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue at the point in time when the entity satisfies a performance obligation. Revenue is recorded at the transaction price, which is the amount of consideration the Company expects to receive in exchange for transferring products to a customer. The Company considered the unit of account for each purchase order that contains more than one product. Because all products in a given purchase order are generally delivered at the same time and the method of revenue recognition is the same for each, there is no need to separate an individual order into separate performance obligations. In the event that the Company fulfilled an order only partially because a requested item is on backorder, the portion of the purchase order covering the item is generally cancelled, and the customer has the option to submit a new one for the backordered item. The Company determines the transaction price based on fixed consideration in its contractual agreements, which includes estimates of variable consideration, and the transaction price is allocated entirely to the performance obligation to provide pharmaceutical products. In determining the transaction price, a significant financing component does not exist since the timing from when the Company delivers product to when the customers pay for the product is less than one year and the customers do not pay for product in advance of the transfer of the product. The Company records product sales net of any variable consideration, which includes estimated chargebacks, commercial rebates, discounts and allowances and doubtful accounts. The Company utilizes the expected value method to estimate all elements of variable consideration included in the transaction price. The variable consideration is recorded as a reduction of revenue at the time revenues are recognized. The Company will only recognize revenue to the extent that it is probable that a significant revenue reversal will not occur in a future period. These estimates may differ from actual consideration amount received and the Company will re‑assess these estimates each reporting period to reflect known changes in factors. Royalty Revenue —For arrangements that include sales‑based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (a) when the related sales occur, or (b) when the performance obligation to which some or all the royalty has been allocated has been satisfied (or partially satisfied). Licensing and Contract Revenue —The Company has arrangements with commercial partners that allow for the purchase of product from the Company by the commercial partners for purposes of sub‑distribution. The Company recognizes revenue from an arrangement when control of such product is transferred to the commercial partner, which is typically upon delivery. In these situations, the performance obligation is satisfied when product is delivered to the Company’s commercial partner. Licensing revenue is recognized in the period in which the product subject to the sublicensing arrangement is sold by the Company to its commercial partner. Sales deductions, such as returns on product sales, government program rebates, price adjustments, and prompt pay discounts in regard to licensing revenue is generally the responsibility of the Company’s commercial partners and not recorded by the Company. Freight —The Company records amounts billed to customers for shipping and handling as revenue, and records shipping and handling expenses related to product sales as cost of goods sold. The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. When shipping and handling costs are incurred after a customer obtains control of the products, the Company also has elected to account for these as costs to fulfill the promise and not as a separate performance obligation. Chargebacks —The Company enters into contractual agreements with certain third parties such as retailers, hospitals, and group‑purchasing organizations (“GPOs”) to sell certain products at predetermined prices. Similarly, the Company maintains an allowance for rebates and discounts related to chargebacks, wholesaler fees for service contracts, GPO administrative fees, government programs, prompt payment and other adjustments with certain customers. Most of the parties have elected to have these contracts administered through wholesalers that buy the product from the Company and subsequently sell it to these third parties. As noted elsewhere, these wholesalers represent a significant percentage of the Company’s gross sales. When a wholesaler sells products to one of these third parties that are subject to a contractual price agreement, the difference between the price paid to the Company by the wholesaler and the price under the specific contract is charged back to the Company by the wholesaler. Utilizing this information, the Company estimates a chargeback percentage for each product and records an allowance as a reduction to gross sales when the Company records its sale of the products. The Company reduces the chargeback allowance when a chargeback request from a wholesaler is processed. The Company’s provision for chargebacks is fully reserved for at the time when sales revenues are recognized. The Company obtains product inventory reports from major wholesalers to aid in analyzing the reasonableness of the chargeback allowance and to monitor whether wholesaler inventory levels do not significantly exceed customer demand. The Company assesses the reasonableness of its chargeback allowance by applying a product chargeback percentage that is based on a combination of historical activity and current price and mix expectations to the quantities of inventory on hand at the wholesalers according to wholesaler inventory reports. In addition, the Company estimates the percentage of gross sales that were generated through direct and indirect sales channels and the percentage of contract vs. non‑contract revenue in the period, as these each affect the estimated reserve calculation. In accordance with its accounting policy, the Company estimates the percentage amount of wholesaler inventory that will ultimately be sold to third parties that are subject to contractual price agreements based on a trend of such sales through wholesalers. The Company uses this percentage estimate until historical trends indicate that a revision should be made. On an ongoing basis, the Company evaluates its actual chargeback rate experience, and new trends are factored into its estimates each quarter as market conditions change. The Company ensures that chargebacks are reasonable through review of contractual obligations, historical trends and evaluation of recent activity. Furthermore, other events that could materially alter chargebacks include: changes in product pricing as a result of competitive market dynamics or negotiations with customers, changes in demand for specific products due to external factors such as competitor supply position or consumer preferences, customer shifts in buying patterns from direct to indirect through wholesalers, which could either individually or in aggregate increase or decrease the chargebacks depending on the direction and trend of the change(s). Commercial Rebates —The Company maintains an allowance for commercial rebates that it has in place with certain customers. Commercial rebates vary by product and by volume purchased by each eligible customer. The Company tracks sales by product number for each eligible customer and then applies the applicable commercial rebate percentage, using both historical trends and actual experience to estimate its commercial rebates. The Company reduces gross sales and increases the commercial rebates allowance by the estimated commercial rebates when the Company sells its products to eligible customers. The Company reduces the commercial rebate allowance when it processes a customer request for a rebate. At each month end, the Company analyzes the allowance for commercial rebates against actual rebates processed and makes necessary adjustments as appropriate. The Company’s provision for commercial rebates is fully reserved for at the time when sales revenues are recognized. The allowance for commercial rebates takes into consideration price adjustments which are credits issued to reflect increases or decreases in the invoice or contract prices of the Company’s products. In the case of a price decrease, a credit is given for products remaining in customer’s inventories at the time of the price reduction. Contractual price protection results in a similar credit when the invoice or contract prices of the Company’s products increase, effectively allowing customers to purchase products at previous prices for a specified period of time. Amounts recorded for estimated shelf‑stock adjustments and price protections are based upon specified terms with direct customers, estimated changes in market prices, and estimates of inventory held by customers. The Company regularly monitors these and other factors and evaluates the reserve as additional information becomes available. The Company ensures that commercial rebates are reasonable through review of contractual obligations, review of historical trends and evaluation of recent activity. Furthermore, other events that could materially alter commercial rebates include: changes in product pricing as a result of competitive market dynamics or negotiations with customers, changes in demand for specific products due to external factors such as competitor supply position or consumer preferences, customer shifts in buying patterns from direct to indirect through wholesalers, which could either individually or in aggregate increase or decrease the commercial rebates depending on the direction and velocity of the change(s). Product Returns —Certain of the Company’s products are sold with the customer having the right to return the product within specified periods. Estimated return accruals are made at the time of sale based upon historical experience. Historical factors such as one‑time recall events as well as pending new developments like comparable product approvals or significant pricing movement that may impact the expected level of returns are taken into account monthly to determine the appropriate accrued expense. As part of the evaluation of the liability required, the Company considers actual returns to date that are in process, the expected impact of any product recalls and the amount of wholesaler’s inventory to assess the magnitude of unconsumed product that may result in product returns to the Company in the future. The product returns level can be impacted by factors such as overall market demand and market competition and availability for substitute products which can increase or decrease the pull through for sales of the Company’s products and ultimately impact the level of product returns. Product returns are fully reserved for at the time when sales revenues are recognized. The Company ensures that product returns are reasonable through review of historical trends and evaluation of recent activity. Furthermore, other events that could materially alter product returns include: acquisitions and integration activities that consolidate dissimilar contract terms and could impact the return rate as typically the Company purchases smaller entities with less contracting power and integrates those product sales to Company contracts; and consumer demand shifts by products, which could either increase or decrease the product returns depending on the product or products specifically demanded and ultimately returned. Accrual for Promotions and Co‑Pay Discount Cards —From time to time the Company authorizes various retailers to run in‑store promotional sales of its products. The Company accrues an estimate of the dollar amount expected to be owed back to the retailer. Additionally, the Company provides consumer co‑pay discount cards, administered through outside agents to provide discounted products when redeemed. Upon release of the cards into the market, the Company records an estimate of the dollar value of co‑pay discounts expected to be utilized taking into consideration historical experience. Government Program Rebates —Federal law requires that a pharmaceutical distributor, as a condition of having federal funds being made available to the States for the manufacturer’s drugs under Medicaid and Medicare Part B, must enter into a rebate agreement to pay rebates to state Medicaid programs for the distributor’s covered outpatient drugs that are dispensed to Medicaid beneficiaries and paid for by a state Medicaid program under a fee‑for‑service arrangement. The Centers for Medicare and Medicaid Services (“CMS”) are responsible for administering the Medicaid rebate agreements between the federal government and pharmaceutical manufacturers. Rebates are also due on the utilization of Medicaid managed care organizations (“MMCOs”). The Company also pays rebates to managed care organizations (“MCOs”) for the reimbursement of a portion of the sales price of prescriptions filled that are covered by the respective plans. The liability for Medicaid, Medicare, and other government program rebates is settled in cash and is estimated at the time when sales revenues are recognized based on historical and current rebate redemption and utilization rates contractually submitted by each state’s program administrator and assumptions regarding future government program utilization for each product sold; and accordingly recorded as a reduction of product sales. Basic and Diluted Loss per Unit —Basic and diluted net loss per unit is determined by dividing net loss by the weighted average common units outstanding during the period. For all periods presented with a net loss, the units underlying the common unit options have been excluded from the calculation because their effect would be anti‑dilutive. Therefore, the weighted average units outstanding used to calculate both basic and diluted loss per unit are the same for periods with a net loss. The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as they would be anti‑dilutive at September 30, 2017: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Unit options to purchase units 70,400 71,400 70,400 71,400 Fair Value of Financial Instrument s—The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable and short and long‑term debt. The fair values of cash and cash equivalents, accounts receivable and accounts payable approximate book value because of the short maturity of these financial instruments. The estimated fair value of the borrowing under the term loan was approximately equal to its book value based on the borrowing rates currently available for variable rate loans (Level 2 of the fair value hierarchy). The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below: Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. Segment Reporting —The Company operates in one business segment which focuses on developing and commercializing pharmaceutical products that target markets with underserved patient populations. The Company’s business offerings have similar economic and other characteristics, including the nature of products, manufacturing and acquiring processes, types of customers, distribution methods and regulatory environment. The chief operating decision maker (“CODM”) reviews profit and loss information on a consolidated basis to assess performance and make overall operating decisions. The condensed consolidated financial statements reflect the financial results of the Company’s one reportable operating segment. The Company has no significant revenues or tangible assets outside of the United States. Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASC Topic 606, which, along with amendments issued in 2015, 2016 and 2017, supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition (ASC Topic 605), including most industry‑specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. ASC Topic 606 provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer in an amount that reflects the consideration it expects to receive in exchange for those goods or services. On January 1, 2018, the Company adopted the new revenue recognition standard for all contracts not completed as of the adoption date using the modified retrospective method. The implementation of the new revenue recognition standard did not have a material impact on the Company’s condensed consolidated financial statements. The information presented for the periods prior to January 1, 2018 has not been restated and is reported under ASC Topic 605. In January 2016, the FASB issued ASU 2016‑01, Financial Instruments‑Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities . The accounting standard primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, it includes a clarification related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available‑for‑sale debt securities. The accounting guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2017. The Company adopted ASU 2016‑01 as of January 1, 2018, and there was no material impact on the Company’s condensed consolidated financial statements resulting from the adoption of this guidance. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016‑15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero‑coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016‑15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The Company adopted this standard on January 1, 2018 and adoption did not have a material impact on the condensed consolidated financial statements. In October of 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , ASU 2016-16 requires recognition of the current and deferred income tax effects of an intra-entity asset transfer, other than inventory, when the transfer occurs, as opposed to current GAAP, which requires companies to defer the income tax effects of intra-entity asset transfers until the asset has been sold to an outside party. The income tax effects of intra-entity inventory transfers will continue to be deferred until the inventory is sold. The standard is required to be adopted on a modified restrospective basis with a cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. The Company was required to adopt this standard on January 1, 2018. Subsequent to the issuance of the June 2018 condensed consolidated financial statements, the Company determined that a revision was required to correct for the adoption of this accounting standard resulting in an increase to Partners’ capital and decrease to Other long-term liabilities in the amount of $1,047,477. These adjustments were not considered to be material to the Company’s condensed consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718). This standard requires that an entity must apply modification accounting to changes in the terms or conditions of a share-based payment award unless all of the following criteria are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the modification provided that if the modification does not affect any of the inputs to the valuation technique used to value the award, the entity is not required to estimate the value immediately before and after the modification; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the modification; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the modification. The Company adopted this standard on January 1, 2018 and there was no impact to the Company’s condensed consolidated financial statements. Recent Accounting Standards In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842) (“ASU 2016‑02”), which is effective for annual reporting periods beginning after December 15, 2019 and early adoption is permitted. Under ASU 2016‑02, lessees will be required to recognize the following for all leases (with the exception of short‑term leases) at the commencement date: 1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and 2) a right‑of‑use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. 2016‑02 must be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the condensed consolidated financial statements. The Company is currently evaluating the impact of the new accounting standard and intends to adopt effective January 1, 2019. In February 2018, the FASB issued ASU 2018‑02, Income Statement — Reporting Comprehensive Income (Topic 220) — Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and requires certain disclosures about stranded tax effects. This standard will be effective for the Company for annual periods beginning after December 15, 2018 and should be applied either in the period of adoption or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of the new accounting standard. In March 2018, the FASB issued ASU 2018‑05, Income Taxes (Topic 740) — Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018‑05”). This standard amends Accounting Standards Codification 740, Income Taxes (“ASC 740”) to provide guidance on accounting for the tax effects of the Tax Cuts and Jobs Act (the Tax Act) pursuant to Staff Accounting Bulletin No. 118, which allows companies to complete the accounting under ASC 740 within a one‑year measurement period from the Tax Act enactment date. This standard is effective upon issuance. The Company is currently evaluating the impact of the new accounting standard.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2018
Revenues Abstract
Revenues	Note 3. Revenues The Company’s performance obligations are to provide its pharmaceutical products based upon purchase orders from distributors. The performance obligation is satisfied at a point in time, typically upon delivery, when the customer obtains control of the pharmaceutical product. The Company invoices its customers after the products have been delivered and invoice payments are generally due within 60 days of invoice date. The following table disaggregates revenue from contracts with customers by pharmaceutical products: Three Months Ended September 30, Nine Months Ended September 30, Pharmaceutical Product 2018 2017 2018 2017 Venlafaxine ER $ 15,893,616 $ 23,647,777 $ 50,377,620 $ 85,291,721 Methylphenidate ER 33,247,942 16,539,747 100,573,444 16,539,747 Lorzone 4,324,952 5,176,568 12,536,874 16,109,309 Divigel 5,129,394 4,470,532 15,062,262 13,170,503 OB Complete 2,457,036 2,203,263 7,557,733 7,608,954 Other 4,390,878 2,640,310 10,155,733 24,183,203 Net product sales 65,443,818 54,678,197 196,263,666 162,903,437 Royalty revenue 903,260 (1,085,212) 1,655,541 5,121,751 License and contract revenue (2,233) 148,198 85,392 1,391,566 Total revenues $ 66,344,845 $ 53,741,183 $ 198,004,599 $ 169,416,754 When the Company receives consideration from a customer, or such consideration is unconditionally due from a customer prior to the transfer of products to the customer under the terms of a contract, the Company records a contract liability. The Company classifies contract liabilities as deferred revenue. The Company had no deferred revenue as of September 30, 2018. Upon adoption of ASC Topic 606, the Company did not have any contract assets or liabilities. The Company has elected to apply the exemption under paragraph 606‑10‑50‑14(a) related to remaining performance obligations as all open purchase orders are expected to be satisfied with a period of one year from the date of the purchase order. Contract assets primarily relate to rights to consideration for goods or services transferred to the customer when the right is conditional on something other than the passage of time. Contract assets are transferred to accounts receivable when the rights become unconditional. The Company had no contract assets as of September 30, 2018. The Company has no costs to obtain or fulfill contracts meeting the capitalization criteria under ASC Topic 340, Other Assets and Deferred Costs.

Accounts Receivable, Sales and

Accounts Receivable, Sales and Allowances	9 Months Ended
	Sep. 30, 2018
Accounts Receivable, Sales and Allowances
Accounts Receivable, Sales and Allowances	Note 4. Accounts Receivable, Sales and Allowances The nature of the Company’s business inherently involves, in the ordinary course, significant amounts and substantial volumes of transactions and estimates relating to allowances for product returns, chargebacks, rebates, doubtful accounts and discounts given to customers. This is typical of the pharmaceutical industry and not necessarily specific to the Company. Depending on the product, the end‑user customer, the specific terms of national supply contracts and the particular arrangements with the Company’s wholesale customers, certain rebates, chargebacks and other credits are deducted from the Company’s accounts receivable. The process of claiming these deductions depends on wholesalers reporting to the Company the amount of deductions that were earned under the terms of the respective agreement with the end‑user customer (which in turn depends on the specific end‑user customer, each having its own pricing arrangement, which entitles it to a particular deduction). This process can lead to partial payments against outstanding invoices as the wholesalers take the claimed deductions at the time of payment. Accounts receivable result primarily from sales of pharmaceutical products, amounts due under revenue sharing, license and royalty arrangements, which inherently involves, in the ordinary course of business, estimates relating to allowances for product returns, chargebacks, rebates, doubtful accounts and discounts given to customers. Credit is extended based on the customer’s financial condition, and, generally, collateral is not required. The Company ages its accounts receivable using the corresponding sale date of the transaction and considers accounts past due based on terms agreed upon in the transaction, which is generally 30 to 60 days for branded and generic sales, depending on the customer and the products purchased. With the exception of the provision for doubtful accounts, which is reflected as part of selling, general and administrative expense, the provisions for the following customer reserves are reflected as a reduction of revenues in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss. Trade accounts receivable, net consists of the following: September 30, December 31, 2018 2017 Gross trade accounts receivable Trade accounts receivable $ 128,869,712 $ 110,592,198 Royalty accounts receivable 2,125,758 4,002,272 Other receivable — 184,808 Less reserves for: Chargebacks (30,612,518) (32,342,377) Commercial rebates (23,877,097) (39,233,419) Discounts and allowances (3,274,171) (3,484,587) Doubtful accounts (513,413) (2,080,938) Total trade accounts receivable, net $ 72,718,271 $ 37,637,957 The Company recorded the following adjustments to gross product sales: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Gross product sales $ 225,747,442 $ 172,712,184 $ 688,398,828 $ 437,006,141 Less provisions for: Chargebacks (87,655,437) (51,622,571) (261,081,159) (140,521,777) Government rebates (5,231,672) (10,687,540) (15,574,538) (22,113,361) Commercial rebates (59,217,332) (42,214,629) (182,605,338) (78,918,807) Product returns (2,418,150) (8,653,792) (13,979,253) (18,467,177) Discounts and allowances (4,545,341) (3,904,313) (14,987,285) (10,543,788) Advertising and promotions (1,235,692) (951,142) (3,907,589) (3,537,794) Net product sales $ 65,443,818 $ 54,678,197 $ 196,263,666 $ 162,903,437 The activity in the Company’s allowance for customer deductions against trade accounts receivable is as follows: Discounts Commercial and Doubtful Chargebacks Rebates Allowances Accounts Total Balance at December 31, 2017 $ 32,342,377 $ 39,233,419 $ 3,484,587 $ 2,080,938 $ 77,141,321 Provision 261,081,159 182,605,338 14,987,285 (1,293,005) 457,380,777 Charges processed (262,811,018) (197,961,660) (15,197,701) (274,520) (476,244,899) Balance at September 30, 2018 $ 30,612,518 $ 23,877,097 $ 3,274,171 $ 513,413 $ 58,277,199 The activity in the Company’s accrued liabilities for customer deductions by account is as follows: Product Government Returns Rebates Total Balance at December 31, 2017 $ 43,299,324 $ 14,151,714 $ 57,451,038 Provision 13,979,253 15,574,538 29,553,791 Charges processed (12,647,618) (18,386,934) (31,034,552) Balance at September 30, 2018 $ 44,630,959 $ 11,339,318 $ 55,970,277 Provisions and utilizations of provisions activity in the current period which relate to the prior period revenues are not provided because to do so would be impracticable. The current systems and processes of the Company do not capture the chargeback and rebate settlements by the period in which the original sales transaction was recorded. The Company uses a combination of factors and applications to estimate the dollar amount of reserves for chargebacks and rebates at each month end. Variable consideration is included in the transaction price only to the extent a significant reversal in the amount of cumulative revenue recognized is not probable of occurring when the uncertainty associated with the variable consideration is subsequently resolved. The Company regularly monitors the reserves based on an analysis of the Company’s product sales and most recent claims, wholesaler inventory, current pricing, and anticipated future pricing changes. If amounts are different from the estimate due to changes from estimated rates, accrual rate adjustments are considered prospectively when determining provisions in accordance with authoritative GAAP.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2018
Inventories
Inventories	Note 5. Inventories The components of inventories, net of allowances, are as follows: September 30, December 31, 2018 2017 Finished goods $ 14,338,521 $ 10,467,243 Work in process 4,177,779 789,413 Raw materials and supplies 7,077,597 5,690,214 $ 25,593,897 $ 16,946,870 The Company maintains an allowance for excess and obsolete inventory, as well as inventory where its cost is in excess of its net realizable value. The activity in the allowance for excess, obsolete, and net realizable value inventory account was as follows: Allowance for excess and obsolete inventory Balance at December 31, 2017 $ 3,066,620 Provision 2,451,938 Charges processed (2,676,877) Balance at September 30, 2018 $ 2,841,681

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2018
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	Note 6. Goodwill and Other Intangible Assets The Company tests goodwill and indefinite‑lived intangible assets for impairment annually as of October 1 st , or more frequently whenever events or changes in circumstances indicate that the asset might be impaired. There were no events or changes in circumstances since October 1, 2017 for the Company to test for impairment of goodwill. The carrying value of goodwill was $152,815,716 as of September 30, 2018 and December 31, 2017. The following table sets forth the major categories of the Company’s intangible assets and the weighted‑average remaining amortization period for those assets that are not already fully amortized: September 30, 2018 Weighted Average Remaining Gross Net Amortization Carrying Accumulated Carrying Period Amount Amortization Reclassifications Impairment Amount (Years) Distribution Rights $ 98,433,377 $ (15,412,236) $ — $ — $ 83,021,141 12.2 Product Rights 326,530,149 (94,307,926) — — 232,222,223 4.3 Tradenames 13,485,000 (2,152,805) — — 11,332,195 16.2 Developed Technology 138,133,333 (28,597,118) — (6,173,000) 103,363,215 12.4 IPR&D 91,300,000 — — — 91,300,000 Indefinite Lived $ 667,881,859 $ (140,470,085) $ — $ (6,173,000) $ 521,238,774 December 31, 2017 Weighted Average Gross Net Remaining Carrying Accumulated Reclassifications Carrying Amortization Amount Amortization (restated) Impairment Amount Period (Years) Distribution Rights $ 98,433,377 $ (9,890,282) $ — $ — $ 88,543,095 13.0 Product Rights 69,558,325 (49,902,094) 264,100,000 (7,128,176) 276,628,055 5.4 Tradenames 13,485,000 (1,623,368) — — 11,861,632 17.1 Developed Technology 146,900,000 (21,077,405) — (8,766,667) 117,055,928 13.1 IPR&D 412,025,436 — (264,100,000) (56,625,436) 91,300,000 Indefinite Lived $ 740,402,138 $ (82,493,149) $ — $ (72,520,279) $ 585,388,710 The gross carrying amount and accumulated amortization in the table above is inclusive of $3,786,772 of accumulated amortization for assets that have been fully impaired in 2017. Changes in the net carrying amount of intangible assets were as follows: Distribution Product Developed Rights Rights Tradenames Technology IPR&D Total December 31, 2017 $ 88,543,095 $ 276,628,055 $ 11,861,632 $ 117,055,928 $ 91,300,000 $ 585,388,710 Amortization (5,521,954) (44,405,832) (529,437) (7,519,713) — (57,976,936) Impairments — — — (6,173,000) — (6,173,000) September 30, 2018 $ 83,021,141 $ 232,222,223 $ 11,332,195 $ 103,363,215 $ 91,300,000 $ 521,238,774 As part of the Company’s goodwill and intangible asset impairment assessments and when IPR&D assets are put into service, the Company estimates the fair values of the reporting unit and intangible assets using an income approach that utilizes a discounted cash flow model, or, where appropriate, a market approach. The discounted cash flow models are dependent upon Company’s estimates of future cash flows and other factors. These estimates of future cash flows involve assumptions concerning (i) future operating performance, including future sales, long‑term growth rates, operating margins, variations in the amounts, allocation and timing of cash flows and the probability of achieving the estimated cash flows and (ii) future economic conditions. These assumptions are based on significant inputs not observable in the market and thus represent Level 3 measurements within the fair value hierarchy. The discount rates applied to the estimated cash flows for the Company’s October 1, 2017 annual goodwill and indefinite‑lived intangible assets impairment test ranged from 9.0% to 8.5%, respectively, depending on the overall risk associated with the particular assets and other market factors. The Company believes the discount rates and other inputs and assumptions are consistent with those that a market participant would use. Any impairment charges resulting from annual or interim goodwill and intangible asset impairment assessments are recorded to Impairment of intangible assets in the Condensed Consolidated Statements of Operations and Comprehensive Loss. The Company recorded impairment charges in intangibles in the amount of $6,173,000 and $30,747,638 for the three months ended September 30, 2018 and 2017, respectively, and $6,173,000 and $72,447,638 for the nine months ended September 30, 2018 and 2017, respectively. The impairment of $6,173,000 relates to the write down to fair value of our Nifedipine intangible asset for which we receive a royalty based on gross profit generated by our license partner. Amortization expense of $19,302,133 and $8,811,122 for the three months ended September 30, 2018 and 2017, respectively, and $57,776,936 and $22,623,659 for the nine months ended September 30, 2018 and 2017, respectively was recorded as cost of goods sold. The amortization expense of acquired intangible assets for each of the following five years and thereafter are expected to be as follows: Amortization Years ending December 31 Expense Remainder of 2018 $ 18,974,028 2019 69,711,697 2020 68,324,749 2021 66,160,668 2022 43,919,941 Thereafter 162,847,691 $ 429,938,774

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2018
Accrued Liabilities
Accrued Liabilities	Note 7. Accrued Liabilities Accrued liabilities consist of the following: September 30, December 31, 2018 2017 Accrued product returns $ 44,630,959 $ 43,299,324 Accrued royalties 7,661,494 12,325,232 Accrued compensation 6,659,670 6,342,731 Accrued government rebates 11,339,318 14,151,714 Accrued expenses and other liabilities 10,400,382 5,153,356 Customer coupons 884,951 425,911 Deferred revenue — 228,122 $ 81,576,774 $ 81,926,390 In the ordinary course of business, the Company enters into contractual agreements with wholesalers pursuant to which the wholesalers distribute sales of Company products to customers and provide sales data to the Company. In return the wholesalers charge the Company a fee for services and other customary rebates and chargebacks based on distribution sales of Company products through the wholesalers and downstream customers.

Financing Arrangements

Financing Arrangements	9 Months Ended
	Sep. 30, 2018
Financing Arrangements
Financing Arrangements	Note 8. Financing Arrangements The composition of the Company’s debt and financing obligations is as follows: September 30, December 31, 2018 2017 CIT Bank, N.A. Term Loan, net of deferred financing costs of $5,775,696 and $6,894,816 as of September 30, 2018 and December 31, 2017, respectively $ 315,584,239 $ 320,605,185 Note payable — insurance financing 490,429 — 316,074,668 320,605,185 Less: current portion (6,065,749) (6,655,604) Long‑term debt $ 310,008,919 $ 313,949,581 Term Loan As of September 30, 2018, the interest rate was 5.99% for the Company’s Term A Loan and 6.49% for the Term B Loan. As of December 31, 2017, the interest rate was 5.25% for the Term A Loan and 5.75% for the Term B Loan. The Company was in compliance with all covenants of the Term Loan Agreement as of September 30, 2018.

Concentrations and Credit Risk

Concentrations and Credit Risk	9 Months Ended
	Sep. 30, 2018
Concentrations and Credit Risk
Concentrations and Credit Risk	Note 9. Concentrations and Credit Risk In the three and nine months ended September 30, 2018 and 2017, a significant portion of the Company’s gross product sales reported were through three customers, and a significant portion of the Company’s accounts receivable as of September 30, 2018 and December 31, 2017 were due from these customers as well. The following table sets forth the percentage of the Company’s gross sales and accounts receivable attributable to these customers for the periods indicated: Gross Product Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Amerisource Bergen 6 % 8 % 7 % 29 % Cardinal Health 55 % 51 % 54 % 29 % McKesson 35 % 34 % 34 % 31 % Combined Total 96 % 93 % 95 % 89 % Gross Account Receivables September 30, December 31, 2018 2017 Amerisource Bergen 4 % 7 % Cardinal 56 % 57 % McKesson 36 % 29 % Combined Total 96 % 93 % Purchasing For the three and nine months ended September 30, 2018, one supplier accounted for more than 54% and 77%, respectively, of the Company’s purchases of raw materials for products that are manufactured by the Company. For the three and nine months ended September 30, 2017, three suppliers accounted for approximately 99% and 88%, respectively, of the Company’s purchases of raw materials for products that are manufactured by the Company. The Company purchases various API of finished products at contractual minimum levels through agreements with third parties. Individually, none of these agreements are material to the Company, therefore, the Company does not believe at this time that any of the purchase obligations represent levels above the normal course of business.

Incentive Plans

Incentive Plans	9 Months Ended
	Sep. 30, 2018
Incentive Plans
Incentive Plans	Note 10. Incentive Plans Share‑based Compensation — Osmotica Holdings S.C.Sp. 2016 Equity Incentive Plan Option Awards The table below summarizes the Time and Performance Award activities for the nine months ended September 30, 2018: Weighted Weighted Average Average Number of Units Exercise Contractual Time Performance Total Price Term Outstanding at December 31, 2017 36,100 36,100 72,200 $ — 8.3 years Granted — — — $ — Exercised — — — — Expired / Forfeited (900) (900) (1,800) 640 Outstanding at September 30, 2018 35,200 35,200 70,400 $ — 7.6 years Vested Options at September 30, 2018 16,323 — 16,323 $ 640

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies
Commitments and Contingencies	Note 11. Commitments and Contingencies Operating Leases The Company leases its New Jersey office and warehouse facilities under non‑cancelable leases that expire in July 2022 and December 2023, respectively. On September 6, 2018, the Company entered into a sublease agreement to lease additional office space in its New Jersey location that expires November 2023. The Company also leases office and warehouse facilities in Tampa, Florida, under a non‑cancelable lease that expires in October 2023. The Company also leases its Argentina office and warehouse facilities which originally expired in December 31, 2014, but the contract was amended to extend to December 31, 2020. The Company also leases its Hungary office and warehouse facilities which expired on February 15, 2017 and automatically renewed for a two‑year term. The lease will continue to renew for successive two‑year periods unless either party elects not to renew. The Company also leases its North Carolina office and warehouse facilities that expires on July 31, 2019. In 2018, the Company began leasing vehicles under a cancelable fleet lease that has successive one-year renewal terms. The lease may be terminated by either party by providing written notice to the other. Total rent expense charged to selling, general and administrative expenses was $165,691 and $145,348 for the three months ended September 30, 2018 and 2017, respectively, and $493,825 and $436,917 for the nine months ended September 30, 2018 and 2017, respectively. Total rent expense charged to research and development was $44,862 and $65,420 for the three months ended September 30, 2018 and 2017, respectively, and $191,430 and $209,472 for the nine months ended September 30, 2018 and 2017, respectively. The rent expense charged to cost of goods sold was $81,141 and $92,584 for the three months ended September 30, 2018 and 2017, respectively, and $264,957 and $279,489 for the nine months ended September 30, 2018 and 2017, respectively. The table below shows the future minimum rental payments, exclusive of taxes, insurance and other costs, under the leases as follows: Years ending December 31 Operating Leases Remainder of 2018 $ 272,682 2019 1,327,606 2020 1,364,334 2021 1,099,551 2022 870,344 Thereafter 490,514 $ 5,425,031 Capital Leases Amortization of assets held under the capital lease is included in depreciation expense as a component of selling, general and administrative expenses. The Company has future minimum lease payments required under the capital lease together with its present value of the net minimum lease payments of $259,596 for the remainder of the year ended December 31, 2018 through December 31, 2021. Contingent Milestone Payments The Company has entered into strategic business agreements for the development and marketing of finished dosage form pharmaceutical products with various pharmaceutical development companies. Each strategic business agreement includes a future payment schedule for contingent milestone payments and in certain strategic business agreements, minimum royalty payments. The Company will be responsible for contingent milestone payments and minimum royalty payments to these strategic business partners based upon the occurrence of future events. Each strategic business agreement defines the triggering event of its future payment schedule, such as meeting product development progress timelines, successful product testing and validation, successful clinical studies, and various U.S. Food and Drug Administration and other regulatory approvals. The following table lists the Company’s enforceable and legally binding royalty obligations as of September 30, 2018: Royalty Obligations Less than 1 year $ 1,375,000 1 to 3 years 3,281,250 3 to 5 years 2,000,000 More than 5 years 2,333,333 $ 8,989,583 The Company is engaged in various supply agreements with third parties which obligate the Company to purchase various API or finished products at contractual minimum levels. None of these agreements are individually or in the aggregate material to the Company. Further, the Company does not believe at this time that any of the purchase obligations represent levels above that of normal business demands The following table lists the Company’s enforceable and legally binding purchase obligations as of September 30, 2018: Purchase Obligations Less than 1 year $ 4,000,000 1 to 3 years 8,000,000 3 to 5 years 4,000,000 $ 16,000,000 Legal Proceedings The Company is a party in legal proceedings and potential claims arising from time to time in the ordinary course of its business. The amount, if any, of ultimate liability with respect to such matters cannot be determined. Despite the inherent uncertainties of litigation, management of the Company believes that the ultimate disposition of such proceedings and exposures will not have a material adverse impact on the financial condition, results of operations, or cash flows of the Company. Osmotica was a party to patent infringement litigation in the U.S. District Court for the Northern District of Georgia with Shire Development, LLC (“Shire”) over the Company’s proposed delayed‑release mesalamine abbreviated new drug application (“ANDA”) product which is a generic version of Shire’s LIALDA ® . ( Shire Development LLC et al. v. Osmotic Pharmaceutical Corp. , No. 1‑12‑cv‑00904 (N.D. Georgia, filed March 16, 2012)). The litigation over the mesalamine product was limited to one (1) patent, U.S. Patent No. 6,773,720 (the “720 Patent”), which is directed to a particular controlled‑release formulation. Absent invalidation by a generic challenger, the ‘720 Patent will expire on June 8, 2020. On March 29, 2017, Osmotica sent a notice to the FDA requesting that their ANDA be withdrawn, and on March 31, 2017, Osmotica received confirmation from FDA that the ANDA was withdrawn. On May 5, 2017, Osmotica was dismissed from the litigation, as such no loss or accrual was deemed necessary. In February 2017, a former employee of the Company filed with the Equal Employment Opportunity Commission (“EEOC”) a Charge of Discrimination based on disability and sexual orientation. While the Charge of Discrimination was pending at the EEOC, the employee declared bankruptcy. In November 2017, the EEOC issued a determination of no probable cause following the filing of the Company’s position statement without further investigation. This started a period of 90 days during which the former employee could bring a law suit in Federal Court to pursue the claim. On February 16, 2018, the Chapter 7 Trustee for the employee filed a lawsuit in the Federal District Court for the Northern District of Georgia alleging gender and disability discrimination and retaliation, seeking reinstatement of the employee, back pay and unspecified damages ( Chapter 7 Trustee vs. Osmotica Pharmaceutical US LLC ). On June 22, 2018, the Company and counsel for the Chapter 7 Trustee agreed to settle the matter for an immaterial amount subject to approval of the Bankruptcy Court. On February 16, 2018, the Company received FDA approval for its amantadine extended release tablets under the trade name OSMOLEX ER. On that same date the Company filed in the Federal District Court for the District of Delaware a Complaint for Declaratory Judgment of Noninfringement of certain patents owned by Adamas Pharmaceuticals, Inc. (Osmotica Pharmaceutical US LLC and Vertical Pharmaceuticals, LLC vs. Adamas Pharmaceuticals, Inc. and Adamas Pharma, LLC). Adamas was served with the Complaint on February 21, 2018. Adamas filed and an answer on April 13, 2018 denying the allegations in the Complaint and reserving the ability to raise counterclaims as the litigation progresses. On September 20, 2018, Adamas filed an amended answer to the Company’s Complaint for Declaratory Judgment of Noninfringement, with counterclaims alleging infringement of certain patents included in the Company’s Complaint and requesting that the court grant Adamas damages, injunctive relief and attorneys’ fees. On April 30, 2018, Vertical Pharmaceuticals, LLC was served with a Complaint in an action entitled State of Arkansas, ex rel, Scott Ellington, et al., v. Purdue Pharma, L.P., et al Crittenden County Circuit Court, No. CV‑2018‑268. The State of Arkansas brought suit against numerous manufacturers and distributors of opioid products alleging that defendants were negligent and created a public nuisance by shipping opioid products into Arkansas without proper controls and alleging violations of the Arkansas Uniform Narcotic Drug Act, Arkansas Controlled Substances Act, and the Arkansas Drug Dealer Liability Act. On July 17, 2018, the Court entered an Order dismissing Vertical from the lawsuit without prejudice.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Taxes
Income Taxes	Note 12. Income Taxes During the nine months ended September 30, 2018, the Company recognized an income tax benefit of $2.0 million on $5.6 million of loss before income tax, compared to $16.8 million of income tax benefit on $59.1 million of loss before income tax during the comparable 2017 period. The income tax (expense) benefit for the nine months ending September 30, 2018 and for the same period in 2017 reflect significant differences in the usual relationship of income tax expense (benefit) to the income (loss) before income taxes. The primary cause of this, as well as the change in the effective income tax rate period over period, relates to the following items: the decrease in the U.S. statutory income tax rate to 21% from 34% for the nine months ended September 30, 2018 and for the same period in 2017 respectively; a disproportionate change in the income tax rate for the nine months ended September 30, 2018 as a result of credits from research and development when compared to the income (loss) before income taxes; and the fact that in both periods in question there are ordinary losses in certain foreign tax jurisdictions that the Company operates in where no tax benefit is expected to be recognized, which subsequently requires that these jurisdictions not be included in the calculation of the interim annual effective income tax rate. In addition, during the quarter ended September 30, 2018 there were favorable discrete items of $1.5 million included in the income tax provision related to the 2017 return to provision adjustment to the Orphan Drug and Research and Development credits. The Company assesses the realizability of the deferred tax assets at each balance sheet date based on actual and forecasted operating results in order to determine the proper amount, if any, required for a valuation allowance. As of September 30, 2018, and September 30, 2017, the Company maintains valuation allowances on deferred tax assets applicable to entities in foreign jurisdictions for which separate income tax returns are filed, where realization of the related deferred tax assets from future profitable operations is not reasonably assured. The Company provides reserves for potential payments of income tax to various tax authorities or does not recognize income tax benefits related to uncertain tax positions and other issues. Tax benefits for uncertain tax positions are based on a determination of whether a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized, assuming that the matter in question will be decided based on its technical merits. The Company’s policy is to record interest and penalties in the provision for income taxes. The Company sells its products in various jurisdictions and is subject to federal, foreign, state and local taxes. While the Company believes that it has properly paid or accrued for all such taxes based on its interpretation of applicable law, tax laws are complex, and interpretations differ. As a result, on February 26, 2018, the Company filed requests to enter into Voluntary Disclosure Agreements with the States of New Jersey and Georgia related to prior and current period sales and use taxes. The ultimate liability of the Company in respect to such taxes cannot be estimated with any certainty at this time. As of this report, the outcome of these requests is not expected to be material to the Company. For the nine months ended September 30, 2018, the Company has not recorded any measurement period adjustments to the provisional estimates recorded as of December 31, 2017 in accordance with the SEC’s Staff Accounting Bulletin No. 118, or SAB 118. The Company will continue to analyze the impact of the U.S. Tax Cuts and Jobs Act under SAB 118 and will record adjustments to provisional amounts as such analyses are refined.

Related Parties

Related Parties	9 Months Ended
	Sep. 30, 2018
Related Parties
Related Parties	Note 13. Related Parties As of September 30, 2018, and December 31, 2017, respectively the Company had a $135,000 and $125,000 accrued liability which comprised of quarterly advisory and monitoring fees payable to shareholders. Further, the Company leases its Argentina office and warehouse space facilities through a related party lease. The term of the operating lease is through December 31, 2020. For the three months ended September 30, 2018 and 2017, the Company incurred rent expense under this lease of $51,271 and $74,765. For the nine months ended September 30, 2018 and 2017, the Company incurred rent expense under this lease of $202,642 and $239,395. In 2016 the Company entered into a two‑year consulting agreement with two Vertical/Trigen shareholders. The term of the agreement requires a compensation rate of $20,833 per month and is a component of the selling, general and administrative expenses. This agreement terminated in January 2018.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events
Subsequent Events	Note 14. Subsequent Events As described in Note 1, the Company completed the Reorganization on October 17, 2018 and the IPO on October 22, 2018. Upon the IPO, an amendment to the Osmotica Pharmaceuticals S.C.Sp. 2016 Equity Incentive Plan went into effect, resulting in the conversion of Time Awards and Performance Awards into options to purchase ordinary shares of Osmotica Pharmaceuticals plc on the same basis as common units of Osmotica Pharmaceuticals S.C.Sp. with corresponding adjustments to the exercise price of the options. In connection with the conversion, the Time Awards will continue to vest according to the original schedule of equal annual installments on each of the first four anniversaries of the time vesting dates and the Performance Awards will be converted into options that vest solely based on the passage of time, with the Performance Awards vesting in equal annual installments on each of the first four anniversaries of the IPO. In addition, upon the IPO the Osmotica Pharmaceuticals plc 2018 Incentive Plan went into effect and the Company’s board reserved 4,100,000 ordinary shares for issuance under the plan.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation —The accompanying unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and under the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim reporting. In management’s opinion, the interim financial data presented includes all adjustments (consisting solely of normal recurring items) necessary for fair presentation. All intercompany accounts and transactions have been eliminated. Certain information required by GAAP has been condensed or omitted in accordance with rules and regulations of the SEC. Operating results for the three and nine months ended September 30, 2018, are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2018 or any period thereafter. The accompanying Condensed Consolidated Balance Sheet data as of December 31, 2017 was derived from the audited consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2017. Except for the revenue recognition accounting policy that was updated as a result of adopting Accounting Standards Update (“ASU”) No. 2014‑09, Revenue from Contracts with Customers (Accounting Standards Codification (“ASC”) Topic 606), the Company’s significant accounting policies have not changed substantially from those previously described in the consolidated financial statements for the year ended December 31, 2017 that are included in the Company’s Registration Statement on Form S-1, as amended.
Principles of Consolidation	Principles of Consolidation —The accompanying condensed consolidated financial statements include the accounts of Osmotica Holdings S.C.Sp. and its wholly owned domestic and foreign subsidiaries. All inter‑company transactions and balances have been eliminated in consolidation. The Company is not involved with variable interest entities.
Use of Estimates	Use of Estimates —The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates.
Revenue Recognition	Product Sales —Revenue is recognized at the point in time when the Company’s performance obligations with its customers have been satisfied. At contract inception, the Company determines if the contract is within the scope of ASC Topic 606 and then evaluates the contract using the following five steps: (1) identify the contract with the customer; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue at the point in time when the entity satisfies a performance obligation. Revenue is recorded at the transaction price, which is the amount of consideration the Company expects to receive in exchange for transferring products to a customer. The Company considered the unit of account for each purchase order that contains more than one product. Because all products in a given purchase order are generally delivered at the same time and the method of revenue recognition is the same for each, there is no need to separate an individual order into separate performance obligations. In the event that the Company fulfilled an order only partially because a requested item is on backorder, the portion of the purchase order covering the item is generally cancelled, and the customer has the option to submit a new one for the backordered item. The Company determines the transaction price based on fixed consideration in its contractual agreements, which includes estimates of variable consideration, and the transaction price is allocated entirely to the performance obligation to provide pharmaceutical products. In determining the transaction price, a significant financing component does not exist since the timing from when the Company delivers product to when the customers pay for the product is less than one year and the customers do not pay for product in advance of the transfer of the product. The Company records product sales net of any variable consideration, which includes estimated chargebacks, commercial rebates, discounts and allowances and doubtful accounts. The Company utilizes the expected value method to estimate all elements of variable consideration included in the transaction price. The variable consideration is recorded as a reduction of revenue at the time revenues are recognized. The Company will only recognize revenue to the extent that it is probable that a significant revenue reversal will not occur in a future period. These estimates may differ from actual consideration amount received and the Company will re‑assess these estimates each reporting period to reflect known changes in factors. Royalty Revenue —For arrangements that include sales‑based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (a) when the related sales occur, or (b) when the performance obligation to which some or all the royalty has been allocated has been satisfied (or partially satisfied). Licensing and Contract Revenue —The Company has arrangements with commercial partners that allow for the purchase of product from the Company by the commercial partners for purposes of sub‑distribution. The Company recognizes revenue from an arrangement when control of such product is transferred to the commercial partner, which is typically upon delivery. In these situations, the performance obligation is satisfied when product is delivered to the Company’s commercial partner. Licensing revenue is recognized in the period in which the product subject to the sublicensing arrangement is sold by the Company to its commercial partner. Sales deductions, such as returns on product sales, government program rebates, price adjustments, and prompt pay discounts in regard to licensing revenue is generally the responsibility of the Company’s commercial partners and not recorded by the Company. Freight —The Company records amounts billed to customers for shipping and handling as revenue, and records shipping and handling expenses related to product sales as cost of goods sold. The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. When shipping and handling costs are incurred after a customer obtains control of the products, the Company also has elected to account for these as costs to fulfill the promise and not as a separate performance obligation. Chargebacks —The Company enters into contractual agreements with certain third parties such as retailers, hospitals, and group‑purchasing organizations (“GPOs”) to sell certain products at predetermined prices. Similarly, the Company maintains an allowance for rebates and discounts related to chargebacks, wholesaler fees for service contracts, GPO administrative fees, government programs, prompt payment and other adjustments with certain customers. Most of the parties have elected to have these contracts administered through wholesalers that buy the product from the Company and subsequently sell it to these third parties. As noted elsewhere, these wholesalers represent a significant percentage of the Company’s gross sales. When a wholesaler sells products to one of these third parties that are subject to a contractual price agreement, the difference between the price paid to the Company by the wholesaler and the price under the specific contract is charged back to the Company by the wholesaler. Utilizing this information, the Company estimates a chargeback percentage for each product and records an allowance as a reduction to gross sales when the Company records its sale of the products. The Company reduces the chargeback allowance when a chargeback request from a wholesaler is processed. The Company’s provision for chargebacks is fully reserved for at the time when sales revenues are recognized. The Company obtains product inventory reports from major wholesalers to aid in analyzing the reasonableness of the chargeback allowance and to monitor whether wholesaler inventory levels do not significantly exceed customer demand. The Company assesses the reasonableness of its chargeback allowance by applying a product chargeback percentage that is based on a combination of historical activity and current price and mix expectations to the quantities of inventory on hand at the wholesalers according to wholesaler inventory reports. In addition, the Company estimates the percentage of gross sales that were generated through direct and indirect sales channels and the percentage of contract vs. non‑contract revenue in the period, as these each affect the estimated reserve calculation. In accordance with its accounting policy, the Company estimates the percentage amount of wholesaler inventory that will ultimately be sold to third parties that are subject to contractual price agreements based on a trend of such sales through wholesalers. The Company uses this percentage estimate until historical trends indicate that a revision should be made. On an ongoing basis, the Company evaluates its actual chargeback rate experience, and new trends are factored into its estimates each quarter as market conditions change. The Company ensures that chargebacks are reasonable through review of contractual obligations, historical trends and evaluation of recent activity. Furthermore, other events that could materially alter chargebacks include: changes in product pricing as a result of competitive market dynamics or negotiations with customers, changes in demand for specific products due to external factors such as competitor supply position or consumer preferences, customer shifts in buying patterns from direct to indirect through wholesalers, which could either individually or in aggregate increase or decrease the chargebacks depending on the direction and trend of the change(s). Commercial Rebates —The Company maintains an allowance for commercial rebates that it has in place with certain customers. Commercial rebates vary by product and by volume purchased by each eligible customer. The Company tracks sales by product number for each eligible customer and then applies the applicable commercial rebate percentage, using both historical trends and actual experience to estimate its commercial rebates. The Company reduces gross sales and increases the commercial rebates allowance by the estimated commercial rebates when the Company sells its products to eligible customers. The Company reduces the commercial rebate allowance when it processes a customer request for a rebate. At each month end, the Company analyzes the allowance for commercial rebates against actual rebates processed and makes necessary adjustments as appropriate. The Company’s provision for commercial rebates is fully reserved for at the time when sales revenues are recognized. The allowance for commercial rebates takes into consideration price adjustments which are credits issued to reflect increases or decreases in the invoice or contract prices of the Company’s products. In the case of a price decrease, a credit is given for products remaining in customer’s inventories at the time of the price reduction. Contractual price protection results in a similar credit when the invoice or contract prices of the Company’s products increase, effectively allowing customers to purchase products at previous prices for a specified period of time. Amounts recorded for estimated shelf‑stock adjustments and price protections are based upon specified terms with direct customers, estimated changes in market prices, and estimates of inventory held by customers. The Company regularly monitors these and other factors and evaluates the reserve as additional information becomes available. The Company ensures that commercial rebates are reasonable through review of contractual obligations, review of historical trends and evaluation of recent activity. Furthermore, other events that could materially alter commercial rebates include: changes in product pricing as a result of competitive market dynamics or negotiations with customers, changes in demand for specific products due to external factors such as competitor supply position or consumer preferences, customer shifts in buying patterns from direct to indirect through wholesalers, which could either individually or in aggregate increase or decrease the commercial rebates depending on the direction and velocity of the change(s). Product Returns —Certain of the Company’s products are sold with the customer having the right to return the product within specified periods. Estimated return accruals are made at the time of sale based upon historical experience. Historical factors such as one‑time recall events as well as pending new developments like comparable product approvals or significant pricing movement that may impact the expected level of returns are taken into account monthly to determine the appropriate accrued expense. As part of the evaluation of the liability required, the Company considers actual returns to date that are in process, the expected impact of any product recalls and the amount of wholesaler’s inventory to assess the magnitude of unconsumed product that may result in product returns to the Company in the future. The product returns level can be impacted by factors such as overall market demand and market competition and availability for substitute products which can increase or decrease the pull through for sales of the Company’s products and ultimately impact the level of product returns. Product returns are fully reserved for at the time when sales revenues are recognized. The Company ensures that product returns are reasonable through review of historical trends and evaluation of recent activity. Furthermore, other events that could materially alter product returns include: acquisitions and integration activities that consolidate dissimilar contract terms and could impact the return rate as typically the Company purchases smaller entities with less contracting power and integrates those product sales to Company contracts; and consumer demand shifts by products, which could either increase or decrease the product returns depending on the product or products specifically demanded and ultimately returned. Accrual for Promotions and Co‑Pay Discount Cards —From time to time the Company authorizes various retailers to run in‑store promotional sales of its products. The Company accrues an estimate of the dollar amount expected to be owed back to the retailer. Additionally, the Company provides consumer co‑pay discount cards, administered through outside agents to provide discounted products when redeemed. Upon release of the cards into the market, the Company records an estimate of the dollar value of co‑pay discounts expected to be utilized taking into consideration historical experience. Government Program Rebates —Federal law requires that a pharmaceutical distributor, as a condition of having federal funds being made available to the States for the manufacturer’s drugs under Medicaid and Medicare Part B, must enter into a rebate agreement to pay rebates to state Medicaid programs for the distributor’s covered outpatient drugs that are dispensed to Medicaid beneficiaries and paid for by a state Medicaid program under a fee‑for‑service arrangement. The Centers for Medicare and Medicaid Services (“CMS”) are responsible for administering the Medicaid rebate agreements between the federal government and pharmaceutical manufacturers. Rebates are also due on the utilization of Medicaid managed care organizations (“MMCOs”). The Company also pays rebates to managed care organizations (“MCOs”) for the reimbursement of a portion of the sales price of prescriptions filled that are covered by the respective plans. The liability for Medicaid, Medicare, and other government program rebates is settled in cash and is estimated at the time when sales revenues are recognized based on historical and current rebate redemption and utilization rates contractually submitted by each state’s program administrator and assumptions regarding future government program utilization for each product sold; and accordingly recorded as a reduction of product sales.
Basic and Diluted Loss per Unit	Basic and Diluted Loss per Unit —Basic and diluted net loss per unit is determined by dividing net loss by the weighted average common units outstanding during the period. For all periods presented with a net loss, the units underlying the common unit options have been excluded from the calculation because their effect would be anti‑dilutive. Therefore, the weighted average units outstanding used to calculate both basic and diluted loss per unit are the same for periods with a net loss. The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as they would be anti‑dilutive at September 30, 2017: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Unit options to purchase units 70,400 71,400 70,400 71,400
Fair Value of Financial Instruments	Fair Value of Financial Instrument s—The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable and short and long‑term debt. The fair values of cash and cash equivalents, accounts receivable and accounts payable approximate book value because of the short maturity of these financial instruments. The estimated fair value of the borrowing under the term loan was approximately equal to its book value based on the borrowing rates currently available for variable rate loans (Level 2 of the fair value hierarchy). The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below: Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities.
Segment Reporting	Segment Reporting —The Company operates in one business segment which focuses on developing and commercializing pharmaceutical products that target markets with underserved patient populations. The Company’s business offerings have similar economic and other characteristics, including the nature of products, manufacturing and acquiring processes, types of customers, distribution methods and regulatory environment. The chief operating decision maker (“CODM”) reviews profit and loss information on a consolidated basis to assess performance and make overall operating decisions. The condensed consolidated financial statements reflect the financial results of the Company’s one reportable operating segment. The Company has no significant revenues or tangible assets outside of the United States.
Recently Adopted Accounting Standards and Recent Accounting Standards	Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASC Topic 606, which, along with amendments issued in 2015, 2016 and 2017, supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition (ASC Topic 605), including most industry‑specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. ASC Topic 606 provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer in an amount that reflects the consideration it expects to receive in exchange for those goods or services. On January 1, 2018, the Company adopted the new revenue recognition standard for all contracts not completed as of the adoption date using the modified retrospective method. The implementation of the new revenue recognition standard did not have a material impact on the Company’s condensed consolidated financial statements. The information presented for the periods prior to January 1, 2018 has not been restated and is reported under ASC Topic 605. In January 2016, the FASB issued ASU 2016‑01, Financial Instruments‑Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities . The accounting standard primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, it includes a clarification related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available‑for‑sale debt securities. The accounting guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2017. The Company adopted ASU 2016‑01 as of January 1, 2018, and there was no material impact on the Company’s condensed consolidated financial statements resulting from the adoption of this guidance. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016‑15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero‑coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016‑15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The Company adopted this standard on January 1, 2018 and adoption did not have a material impact on the condensed consolidated financial statements. In October of 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , ASU 2016-16 requires recognition of the current and deferred income tax effects of an intra-entity asset transfer, other than inventory, when the transfer occurs, as opposed to current GAAP, which requires companies to defer the income tax effects of intra-entity asset transfers until the asset has been sold to an outside party. The income tax effects of intra-entity inventory transfers will continue to be deferred until the inventory is sold. The standard is required to be adopted on a modified restrospective basis with a cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. The Company was required to adopt this standard on January 1, 2018. Subsequent to the issuance of the June 2018 condensed consolidated financial statements, the Company determined that a revision was required to correct for the adoption of this accounting standard resulting in an increase to Partners’ capital and decrease to Other long-term liabilities in the amount of $1,047,477. These adjustments were not considered to be material to the Company’s condensed consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718). This standard requires that an entity must apply modification accounting to changes in the terms or conditions of a share-based payment award unless all of the following criteria are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the modification provided that if the modification does not affect any of the inputs to the valuation technique used to value the award, the entity is not required to estimate the value immediately before and after the modification; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the modification; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the modification. The Company adopted this standard on January 1, 2018 and there was no impact to the Company’s condensed consolidated financial statements. Recent Accounting Standards In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842) (“ASU 2016‑02”), which is effective for annual reporting periods beginning after December 15, 2019 and early adoption is permitted. Under ASU 2016‑02, lessees will be required to recognize the following for all leases (with the exception of short‑term leases) at the commencement date: 1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and 2) a right‑of‑use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. 2016‑02 must be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the condensed consolidated financial statements. The Company is currently evaluating the impact of the new accounting standard and intends to adopt effective January 1, 2019. In February 2018, the FASB issued ASU 2018‑02, Income Statement — Reporting Comprehensive Income (Topic 220) — Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and requires certain disclosures about stranded tax effects. This standard will be effective for the Company for annual periods beginning after December 15, 2018 and should be applied either in the period of adoption or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of the new accounting standard. In March 2018, the FASB issued ASU 2018‑05, Income Taxes (Topic 740) — Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018‑05”). This standard amends Accounting Standards Codification 740, Income Taxes (“ASC 740”) to provide guidance on accounting for the tax effects of the Tax Cuts and Jobs Act (the Tax Act) pursuant to Staff Accounting Bulletin No. 118, which allows companies to complete the accounting under ASC 740 within a one‑year measurement period from the Tax Act enactment date. This standard is effective upon issuance. The Company is currently evaluating the impact of the new accounting standard.

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Basis of Presentation and Summary of Significant Accounting Policies
Schedule of potentially dilutive securities have been excluded from computation of diluted weighted average shares	Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Unit options to purchase units 70,400 71,400 70,400 71,400

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2018
Revenues Abstract
Schedule of disaggregation of revenue from contracts with customers	Three Months Ended September 30, Nine Months Ended September 30, Pharmaceutical Product 2018 2017 2018 2017 Venlafaxine ER $ 15,893,616 $ 23,647,777 $ 50,377,620 $ 85,291,721 Methylphenidate ER 33,247,942 16,539,747 100,573,444 16,539,747 Lorzone 4,324,952 5,176,568 12,536,874 16,109,309 Divigel 5,129,394 4,470,532 15,062,262 13,170,503 OB Complete 2,457,036 2,203,263 7,557,733 7,608,954 Other 4,390,878 2,640,310 10,155,733 24,183,203 Net product sales 65,443,818 54,678,197 196,263,666 162,903,437 Royalty revenue 903,260 (1,085,212) 1,655,541 5,121,751 License and contract revenue (2,233) 148,198 85,392 1,391,566 Total revenues $ 66,344,845 $ 53,741,183 $ 198,004,599 $ 169,416,754

Accounts Receivable, Sales an_2

Accounts Receivable, Sales and Allowances (Tables)	9 Months Ended
	Sep. 30, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Schedule of components of accounts receivable	September 30, December 31, 2018 2017 Gross trade accounts receivable Trade accounts receivable $ 128,869,712 $ 110,592,198 Royalty accounts receivable 2,125,758 4,002,272 Other receivable — 184,808 Less reserves for: Chargebacks (30,612,518) (32,342,377) Commercial rebates (23,877,097) (39,233,419) Discounts and allowances (3,274,171) (3,484,587) Doubtful accounts (513,413) (2,080,938) Total trade accounts receivable, net $ 72,718,271 $ 37,637,957
Schedule of adjustments to gross product sales	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Gross product sales $ 225,747,442 $ 172,712,184 $ 688,398,828 $ 437,006,141 Less provisions for: Chargebacks (87,655,437) (51,622,571) (261,081,159) (140,521,777) Government rebates (5,231,672) (10,687,540) (15,574,538) (22,113,361) Commercial rebates (59,217,332) (42,214,629) (182,605,338) (78,918,807) Product returns (2,418,150) (8,653,792) (13,979,253) (18,467,177) Discounts and allowances (4,545,341) (3,904,313) (14,987,285) (10,543,788) Advertising and promotions (1,235,692) (951,142) (3,907,589) (3,537,794) Net product sales $ 65,443,818 $ 54,678,197 $ 196,263,666 $ 162,903,437
Trade accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Schedule of activity in allowance/liability for customer deductions	Discounts Commercial and Doubtful Chargebacks Rebates Allowances Accounts Total Balance at December 31, 2017 $ 32,342,377 $ 39,233,419 $ 3,484,587 $ 2,080,938 $ 77,141,321 Provision 261,081,159 182,605,338 14,987,285 (1,293,005) 457,380,777 Charges processed (262,811,018) (197,961,660) (15,197,701) (274,520) (476,244,899) Balance at September 30, 2018 $ 30,612,518 $ 23,877,097 $ 3,274,171 $ 513,413 $ 58,277,199
Accrued liabilities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Schedule of activity in allowance/liability for customer deductions	Product Government Returns Rebates Total Balance at December 31, 2017 $ 43,299,324 $ 14,151,714 $ 57,451,038 Provision 13,979,253 15,574,538 29,553,791 Charges processed (12,647,618) (18,386,934) (31,034,552) Balance at September 30, 2018 $ 44,630,959 $ 11,339,318 $ 55,970,277

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Inventory [Line Items]
Summary of components of inventories, net of allowances	September 30, December 31, 2018 2017 Finished goods $ 14,338,521 $ 10,467,243 Work in process 4,177,779 789,413 Raw materials and supplies 7,077,597 5,690,214 $ 25,593,897 $ 16,946,870
Allowance for excess and obsolete inventory
Inventory [Line Items]
Schedule of activity in allowance for inventory valuation and obsolescence	Allowance for excess and obsolete inventory Balance at December 31, 2017 $ 3,066,620 Provision 2,451,938 Charges processed (2,676,877) Balance at September 30, 2018 $ 2,841,681

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Other Intangible Assets
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period	September 30, 2018 Weighted Average Remaining Gross Net Amortization Carrying Accumulated Carrying Period Amount Amortization Reclassifications Impairment Amount (Years) Distribution Rights $ 98,433,377 $ (15,412,236) $ — $ — $ 83,021,141 12.2 Product Rights 326,530,149 (94,307,926) — — 232,222,223 4.3 Tradenames 13,485,000 (2,152,805) — — 11,332,195 16.2 Developed Technology 138,133,333 (28,597,118) — (6,173,000) 103,363,215 12.4 IPR&D 91,300,000 — — — 91,300,000 Indefinite Lived $ 667,881,859 $ (140,470,085) $ — $ (6,173,000) $ 521,238,774 December 31, 2017 Weighted Average Gross Net Remaining Carrying Accumulated Reclassifications Carrying Amortization Amount Amortization (restated) Impairment Amount Period (Years) Distribution Rights $ 98,433,377 $ (9,890,282) $ — $ — $ 88,543,095 13.0 Product Rights 69,558,325 (49,902,094) 264,100,000 (7,128,176) 276,628,055 5.4 Tradenames 13,485,000 (1,623,368) — — 11,861,632 17.1 Developed Technology 146,900,000 (21,077,405) — (8,766,667) 117,055,928 13.1 IPR&D 412,025,436 — (264,100,000) (56,625,436) 91,300,000 Indefinite Lived $ 740,402,138 $ (82,493,149) $ — $ (72,520,279) $ 585,388,710
Schedule of changes in the net carrying amount of intangible assets	Distribution Product Developed Rights Rights Tradenames Technology IPR&D Total December 31, 2017 $ 88,543,095 $ 276,628,055 $ 11,861,632 $ 117,055,928 $ 91,300,000 $ 585,388,710 Amortization (5,521,954) (44,405,832) (529,437) (7,519,713) — (57,976,936) Impairments — — — (6,173,000) — (6,173,000) September 30, 2018 $ 83,021,141 $ 232,222,223 $ 11,332,195 $ 103,363,215 $ 91,300,000 $ 521,238,774
Schedule of expected amortization expense	Amortization Years ending December 31 Expense Remainder of 2018 $ 18,974,028 2019 69,711,697 2020 68,324,749 2021 66,160,668 2022 43,919,941 Thereafter 162,847,691 $ 429,938,774

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2018
Accrued Liabilities
Schedule of accrued liabilities	September 30, December 31, 2018 2017 Accrued product returns $ 44,630,959 $ 43,299,324 Accrued royalties 7,661,494 12,325,232 Accrued compensation 6,659,670 6,342,731 Accrued government rebates 11,339,318 14,151,714 Accrued expenses and other liabilities 10,400,382 5,153,356 Customer coupons 884,951 425,911 Deferred revenue — 228,122 $ 81,576,774 $ 81,926,390

Financing Arrangements (Tables)

Financing Arrangements (Tables)	9 Months Ended
	Sep. 30, 2018
Financing Arrangements
Schedule of composition of Company’s debt and financing obligations	September 30, December 31, 2018 2017 CIT Bank, N.A. Term Loan, net of deferred financing costs of $5,775,696 and $6,894,816 as of September 30, 2018 and December 31, 2017, respectively $ 315,584,239 $ 320,605,185 Note payable — insurance financing 490,429 — 316,074,668 320,605,185 Less: current portion (6,065,749) (6,655,604) Long‑term debt $ 310,008,919 $ 313,949,581

Concentrations and Credit Risk

Concentrations and Credit Risk (Tables)	9 Months Ended
	Sep. 30, 2018
Gross Product Sales | Customer concentration risk
Concentrations and Credit Risk
Schedule of percentage of Company’s gross sales and accounts receivable attributable to customers	Gross Product Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Amerisource Bergen 6 % 8 % 7 % 29 % Cardinal Health 55 % 51 % 54 % 29 % McKesson 35 % 34 % 34 % 31 % Combined Total 96 % 93 % 95 % 89 %
Gross Account Receivables | Credit concentration risk
Concentrations and Credit Risk
Schedule of percentage of Company’s gross sales and accounts receivable attributable to customers	Gross Account Receivables September 30, December 31, 2018 2017 Amerisource Bergen 4 % 7 % Cardinal 56 % 57 % McKesson 36 % 29 % Combined Total 96 % 93 %

Incentive Plans (Tables)

Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 2018
Incentive Plans
Summary of Time and Performance Award activities	Weighted Weighted Average Average Number of Units Exercise Contractual Time Performance Total Price Term Outstanding at December 31, 2017 36,100 36,100 72,200 $ — 8.3 years Granted — — — $ — Exercised — — — — Expired / Forfeited (900) (900) (1,800) 640 Outstanding at September 30, 2018 35,200 35,200 70,400 $ — 7.6 years Vested Options at September 30, 2018 16,323 — 16,323 $ 640

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies
Summary of operating lease, future minimum rental payments	Years ending December 31 Operating Leases Remainder of 2018 $ 272,682 2019 1,327,606 2020 1,364,334 2021 1,099,551 2022 870,344 Thereafter 490,514 $ 5,425,031
Summary of Company's enforceable and legally binding royalty obligations	The following table lists the Company’s enforceable and legally binding royalty obligations as of September 30, 2018: Royalty Obligations Less than 1 year $ 1,375,000 1 to 3 years 3,281,250 3 to 5 years 2,000,000 More than 5 years 2,333,333 $ 8,989,583
Summary of Company’s enforceable and legally binding purchase obligations	The following table lists the Company’s enforceable and legally binding purchase obligations as of September 30, 2018: Purchase Obligations Less than 1 year $ 4,000,000 1 to 3 years 8,000,000 3 to 5 years 4,000,000 $ 16,000,000

Organization and Nature of Op_2

Organization and Nature of Operations (Details) - USD ($)	Oct. 22, 2018	Oct. 17, 2018	Feb. 03, 2016
Stock transactions
Number of shares per unit		42.84
Option shares multiple		42.84
Option exercise price divisor		$ 42.84
Subsequent Events
Stock transactions
Aggregate net proceeds	$ 58,400,000
IPO [Member] | Subsequent Events
Stock transactions
Number of ordinary shares issued	7,647,500
Public offering price per share	$ 7
Over-Allotment Option [Member] | Subsequent Events
Stock transactions
Number of ordinary shares issued	997,500
Private Placement [Member] | Subsequent Events
Stock transactions
Number of ordinary shares issued	2,014,285
Osmotica Pharmaceuticals Plc [Member] | Osmotica Holdings SCSp [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership interest (as a percent)			50.00%
Vertical/Trigen Holdings, LLC [Member] | Osmotica Holdings SCSp [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership interest (as a percent)			50.00%

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018shares	Sep. 30, 2017shares	Sep. 30, 2018segmentshares	Sep. 30, 2017shares
Basis of Presentation and Summary of Significant Accounting Policies
Revenue, Practical Expedient, Financing Component [true false]			true
Unit options to purchase units | shares	70,400	71,400	70,400	71,400
Number of operating segments			1
Number of reportable operating segments			1

Basis of Presentation and Sum_5

Basis of Presentation and Summary of Significant Accounting Policies - New Accounting Standards (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Partners' Capital	$ 415,503,085	$ 419,270,254
Other long-term liabilities		1,047,477
Accounting Standards Update 2016-16 [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Partners' Capital		1,047,477
Other long-term liabilities		$ (1,047,477)

Revenues (Details)

Revenues (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 66,344,845	$ 53,741,183	$ 198,004,599	$ 169,416,754
Contract with customer, asset and liability
Deferred revenue	0		$ 0
Remaining performance obligations			true
Contract assets	0		$ 0
Cost to obtain or fulfill contracts	0		0
Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Revenues		53,741,183		169,416,754
Product Revenue
Disaggregation of Revenue [Line Items]
Revenues	65,443,818	54,678,197	196,263,666	162,903,437
Product Revenue | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Revenues		54,678,197		162,903,437
Venlafaxine ER
Disaggregation of Revenue [Line Items]
Revenues	15,893,616		50,377,620
Venlafaxine ER | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Revenues		23,647,777		85,291,721
Methylphenidate ER
Disaggregation of Revenue [Line Items]
Revenues	33,247,942		100,573,444
Methylphenidate ER | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Revenues		16,539,747		16,539,747
Lorzone
Disaggregation of Revenue [Line Items]
Revenues	4,324,952		12,536,874
Lorzone | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Revenues		5,176,568		16,109,309
Divigel
Disaggregation of Revenue [Line Items]
Revenues	5,129,394		15,062,262
Divigel | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Revenues		4,470,532		13,170,503
OB Complete
Disaggregation of Revenue [Line Items]
Revenues	2,457,036		7,557,733
OB Complete | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Revenues		2,203,263		7,608,954
Other
Disaggregation of Revenue [Line Items]
Revenues	4,390,878		10,155,733
Other | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Revenues		2,640,310		24,183,203
Royalty Revenue
Disaggregation of Revenue [Line Items]
Revenues	903,260	(1,085,212)	1,655,541	5,121,751
Royalty Revenue | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Revenues		(1,085,212)		5,121,751
License and contract revenue
Disaggregation of Revenue [Line Items]
Revenues	$ (2,233)		$ 85,392
License and contract revenue | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Revenues		$ 148,198		$ 1,391,566
Maximum
Disaggregation of Revenue [Line Items]
Invoice payment due period			60 days
Maximum | Product Revenue
Disaggregation of Revenue [Line Items]
Invoice payment due period			60 days

Accounts Receivable, Sales an_3

Accounts Receivable, Sales and Allowances - Trade accounts receivable, net (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Doubtful accounts	$ (513,413)	$ (2,080,938)
Total trade accounts receivable, net	$ 72,718,271	37,637,957
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Invoice payment due period	30 days
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Invoice payment due period	60 days
Chargebacks
Accounts, Notes, Loans and Financing Receivable [Line Items]
Reserves	$ (30,612,518)	(32,342,377)
Commercial rebates
Accounts, Notes, Loans and Financing Receivable [Line Items]
Reserves	(23,877,097)	(39,233,419)
Discounts and allowances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Reserves	(3,274,171)	(3,484,587)
Trade accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross trade accounts receivable	128,869,712	110,592,198
Royalty accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross trade accounts receivable	$ 2,125,758	4,002,272
Other receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross trade accounts receivable		$ 184,808

Accounts Receivable, Sales an_4

Accounts Receivable, Sales and Allowances - Adjustment to gross product sales (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Revenues	$ 66,344,845	$ 53,741,183	$ 198,004,599	$ 169,416,754
Product Revenue
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross product sales	225,747,442		688,398,828
Revenues	65,443,818	54,678,197	196,263,666	162,903,437
Product Revenue | Chargebacks
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions	(87,655,437)		(261,081,159)
Product Revenue | Government rebates
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions	(5,231,672)		(15,574,538)
Product Revenue | Commercial rebates
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions	(59,217,332)		(182,605,338)
Product Revenue | Product returns
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions	(2,418,150)		(13,979,253)
Product Revenue | Discounts and allowances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions	(4,545,341)		(14,987,285)
Product Revenue | Advertising and promotions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions	$ (1,235,692)		$ (3,907,589)
Calculated under Revenue Guidance in Effect before Topic 606
Accounts, Notes, Loans and Financing Receivable [Line Items]
Revenues		53,741,183		169,416,754
Calculated under Revenue Guidance in Effect before Topic 606 | Product Revenue
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross product sales		172,712,184		437,006,141
Revenues		54,678,197		162,903,437
Calculated under Revenue Guidance in Effect before Topic 606 | Product Revenue | Chargebacks
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions		(51,622,571)		(140,521,777)
Calculated under Revenue Guidance in Effect before Topic 606 | Product Revenue | Government rebates
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions		(10,687,540)		(22,113,361)
Calculated under Revenue Guidance in Effect before Topic 606 | Product Revenue | Commercial rebates
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions		(42,214,629)		(78,918,807)
Calculated under Revenue Guidance in Effect before Topic 606 | Product Revenue | Product returns
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions		(8,653,792)		(18,467,177)
Calculated under Revenue Guidance in Effect before Topic 606 | Product Revenue | Discounts and allowances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions		(3,904,313)		(10,543,788)
Calculated under Revenue Guidance in Effect before Topic 606 | Product Revenue | Advertising and promotions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provisions		$ (951,142)		$ (3,537,794)

Accounts Receivable, Sales an_5

Accounts Receivable, Sales and Allowances - Allowance for customer deduction (Details)	9 Months Ended
	Sep. 30, 2018USD ($)
Trade accounts receivable
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 77,141,321
Provision	457,380,777
Charges processed	(476,244,899)
Balance at end of period	58,277,199
Chargebacks
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	32,342,377
Balance at end of period	30,612,518
Chargebacks | Trade accounts receivable
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	32,342,377
Provision	261,081,159
Charges processed	(262,811,018)
Balance at end of period	30,612,518
Commercial rebates
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	39,233,419
Balance at end of period	23,877,097
Commercial rebates | Trade accounts receivable
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	39,233,419
Provision	182,605,338
Charges processed	(197,961,660)
Balance at end of period	23,877,097
Discounts and allowances
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	3,484,587
Balance at end of period	3,274,171
Discounts and allowances | Trade accounts receivable
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	3,484,587
Provision	14,987,285
Charges processed	(15,197,701)
Balance at end of period	3,274,171
Doubtful accounts | Trade accounts receivable
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	2,080,938
Provision	(1,293,005)
Charges processed	(274,520)
Balance at end of period	$ 513,413

Accounts Receivable, Sales an_6

Accounts Receivable, Sales and Allowances - Accrued liabilities for customer deductions (Details) - Accrued liabilities	9 Months Ended
	Sep. 30, 2018USD ($)
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 57,451,038
Provision	29,553,791
Charges processed	(31,034,552)
Balance at end of period	55,970,277
Product returns
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	43,299,324
Provision	13,979,253
Charges processed	(12,647,618)
Balance at end of period	44,630,959
Government rebates
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	14,151,714
Provision	15,574,538
Charges processed	(18,386,934)
Balance at end of period	$ 11,339,318

Inventories - Components (Detai

Inventories - Components (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Inventories
Finished goods	$ 14,338,521	$ 10,467,243
Work in process	4,177,779	789,413
Raw materials and supplies	7,077,597	5,690,214
Total	$ 25,593,897	$ 16,946,870

Inventories - Allowance for Exc

Inventories - Allowance for Excess and Obsolete Inventory (Details) - Allowance for excess and obsolete inventory	9 Months Ended
	Sep. 30, 2018USD ($)
Summary of activity in the allowance for excess, obsolete, and net realizable value inventory account
Balance at beginning of period	$ 3,066,620
Provision	2,451,938
Charges processed	(2,676,877)
Balance at end of period	$ 2,841,681

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Goodwill and Other Intangible Assets
Goodwill	$ 152,815,716	$ 152,815,716

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Major Categories (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Accumulated amortization	$ (140,470,085)	$ (82,493,149)
Impairment	(6,173,000)	(72,520,279)
Net carrying amount, finite-lived	429,938,774
Gross carrying amount	667,881,859	740,402,138
Net carrying amount	521,238,774	585,388,710
Fully impaired intangible assets	3,786,772	3,786,772
IPR&D
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Reclassifications		(264,100,000)
Impairment		(56,625,436)
Gross carrying amount, Indefinite-lived	91,300,000	412,025,436
Indefinite-lived intangible assets	91,300,000	91,300,000
Net carrying amount	91,300,000	91,300,000
Distribution Rights
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Gross carrying amount, finite-lived	98,433,377	98,433,377
Accumulated amortization	(15,412,236)	(9,890,282)
Net carrying amount, finite-lived	83,021,141	88,543,095
Net carrying amount	$ 83,021,141	$ 88,543,095
Weighted average remaining amortization period (Years)	12 years 2 months 12 days	13 years
Product Rights
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Gross carrying amount, finite-lived	$ 326,530,149	$ 69,558,325
Accumulated amortization	(94,307,926)	(49,902,094)
Reclassifications		264,100,000
Impairment		(7,128,176)
Net carrying amount, finite-lived	232,222,223	276,628,055
Net carrying amount	$ 232,222,223	$ 276,628,055
Weighted average remaining amortization period (Years)	4 years 3 months 18 days	5 years 4 months 24 days
Tradenames
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Gross carrying amount, finite-lived	$ 13,485,000	$ 13,485,000
Accumulated amortization	(2,152,805)	(1,623,368)
Net carrying amount, finite-lived	11,332,195	11,861,632
Net carrying amount	$ 11,332,195	$ 11,861,632
Weighted average remaining amortization period (Years)	16 years 2 months 12 days	17 years 1 month 6 days
Developed Technology
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Gross carrying amount, finite-lived	$ 138,133,333	$ 146,900,000
Accumulated amortization	(28,597,118)	(21,077,405)
Impairment	(6,173,000)	(8,766,667)
Net carrying amount, finite-lived	103,363,215	117,055,928
Net carrying amount	$ 103,363,215	$ 117,055,928
Weighted average remaining amortization period (Years)	12 years 4 months 24 days	13 years 1 month 6 days

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Changes in Net Carrying Amount of Intangible Assets (Details)	9 Months Ended
	Sep. 30, 2018USD ($)
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Balance at the beginning of the period	$ 585,388,710
Amortization	(57,976,936)
Impairments	(6,173,000)
Balance at the end of the period	521,238,774
IPR&D
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Balance at the beginning of the period	91,300,000
Balance at the end of the period	91,300,000
Distribution Rights
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Balance at the beginning of the period	88,543,095
Amortization	(5,521,954)
Balance at the end of the period	83,021,141
Product Rights
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Balance at the beginning of the period	276,628,055
Amortization	(44,405,832)
Balance at the end of the period	232,222,223
Tradenames
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Balance at the beginning of the period	11,861,632
Amortization	(529,437)
Balance at the end of the period	11,332,195
Developed Technology
Schedule of major categories of the Company’s intangible assets and the weighted average remaining amortization period
Balance at the beginning of the period	117,055,928
Amortization	(7,519,713)
Impairments	(6,173,000)
Balance at the end of the period	$ 103,363,215

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Fair value (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Oct. 01, 2017item
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impairment of intangible assets | $	$ 6,173,000	$ 30,747,638	$ 6,173,000	$ 72,447,638
Minimum | Measurement Input, Discount Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate for goodwill and intangible assets					0.085
Maximum | Measurement Input, Discount Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate for goodwill and intangible assets					0.090

Goodwill and Other Intangible_7

Goodwill and Other Intangible Assets - Amortization Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Amortization expense
Amortization			$ 57,976,936
Cost of goods sold
Amortization expense
Amortization	$ 19,302,133	$ 8,811,122	$ 57,776,936	$ 22,623,659

Goodwill and Other Intangible_8

Goodwill and Other Intangible Assets - Future Amortization (Details)	Sep. 30, 2018USD ($)
Amortization expense of acquired intangible assets
Remainder of 2018	$ 18,974,028
2,019	69,711,697
2,020	68,324,749
2,021	66,160,668
2,022	43,919,941
Thereafter	162,847,691
Net carrying amount, finite-lived	$ 429,938,774

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Accrued Liabilities
Accrued product returns	$ 44,630,959	$ 43,299,324
Accrued royalties	7,661,494	12,325,232
Accrued compensation	6,659,670	6,342,731
Accrued government rebates	11,339,318	14,151,714
Accrued expenses and other liabilities	10,400,382	5,153,356
Customer coupons	884,951	425,911
Deferred revenue		228,122
Accrued Liabilities	$ 81,576,774	$ 81,926,390

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Financing Arrangements
Long-term debt (including current portion)	$ 316,074,668	$ 320,605,185
Less current portion	(6,065,749)	(6,655,604)
Long‑term debt, net of non‑current deferred financing costs	310,008,919	313,949,581
Deferred financing costs	5,775,696	6,894,816
CIT Bank, N.A. Term Loan
Financing Arrangements
Long-term debt (including current portion)	315,584,239	$ 320,605,185
Note payable — insurance financing
Financing Arrangements
Long-term debt (including current portion)	$ 490,429
Term A Loan
Financing Arrangements
Interest rate (as percent)	5.99%	5.25%
Term B Loan
Financing Arrangements
Interest rate (as percent)	6.49%	5.75%

Concentrations and Credit Risks

Concentrations and Credit Risks (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018item	Sep. 30, 2017item	Sep. 30, 2018customeritem	Sep. 30, 2017customeritem	Dec. 31, 2017
Gross Product Sales | Customer concentration risk
Concentrations and Credit Risk
Number of customers			3	3
Concentration risk (as a percent)	96.00%	93.00%	95.00%	89.00%
Gross Product Sales | Customer concentration risk | Amerisource Bergen
Concentrations and Credit Risk
Concentration risk (as a percent)	6.00%	8.00%	7.00%	29.00%
Gross Product Sales | Customer concentration risk | Cardinal
Concentrations and Credit Risk
Concentration risk (as a percent)	55.00%	51.00%	54.00%	29.00%
Gross Product Sales | Customer concentration risk | McKesson
Concentrations and Credit Risk
Concentration risk (as a percent)	35.00%	34.00%	34.00%	31.00%
Gross Account Receivables | Credit concentration risk
Concentrations and Credit Risk
Number of customers			3	3
Concentration risk (as a percent)			96.00%		93.00%
Gross Account Receivables | Credit concentration risk | Amerisource Bergen
Concentrations and Credit Risk
Concentration risk (as a percent)			4.00%		7.00%
Gross Account Receivables | Credit concentration risk | Cardinal
Concentrations and Credit Risk
Concentration risk (as a percent)			56.00%		57.00%
Gross Account Receivables | Credit concentration risk | McKesson
Concentrations and Credit Risk
Concentration risk (as a percent)			36.00%		29.00%
Purchases | Supplier concentration risk
Concentrations and Credit Risk
Concentration risk (as a percent)		99.00%		88.00%
Number of suppliers | item	1	3	1	3
Purchases | Supplier concentration risk | Minimum
Concentrations and Credit Risk
Concentration risk (as a percent)	54.00%		77.00%

Incentive Plans - Option Awards

Incentive Plans - Option Awards (Details) - 2016 Equity Incentive Plan - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Weighted Average Exercise Price
Expired / Forfeited	$ 640
Vested Options at the end of period	$ 640
Weighted Average Contractual Term	7 years 7 months 6 days	8 years 3 months 18 days
Total
Number of Units
Outstanding at the beginning of period	72,200
Expired / Forfeited	(1,800)
Outstanding at at the end of period	70,400	72,200
Vested Options at the end of period	16,323
Time
Number of Units
Outstanding at the beginning of period	36,100
Expired / Forfeited	(900)
Outstanding at at the end of period	35,200	36,100
Vested Options at the end of period	16,323
Performance
Number of Units
Outstanding at the beginning of period	36,100
Expired / Forfeited	(900)
Outstanding at at the end of period	35,200	36,100

Commitments and Contingencies -

Commitments and Contingencies - Operating Leases (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Summary of future minimum rental payments, exclusive of taxes, insurance and other costs, under operating leases
Remainder of 2018	$ 272,682		$ 272,682
2,019	1,327,606		1,327,606
2,020	1,364,334		1,364,334
2,021	1,099,551		1,099,551
2,022	870,344		870,344
Thereafter	490,514		490,514
Total	$ 5,425,031		$ 5,425,031
Office and Warehouse Facilities
Operating Leases
Renewal term (in years)	2 years		2 years
Vehicles [Member]
Operating Leases
Renewal term (in years)	1 year		1 year
Selling, general and administrative expenses
Operating Leases
Rent expenses	$ 165,691	$ 145,348	$ 493,825	$ 436,917
Research and development
Operating Leases
Rent expenses	44,862	65,420	191,430	209,472
Cost of goods sold
Operating Leases
Rent expenses	$ 81,141	$ 92,584	$ 264,957	$ 279,489

Commitments and Contingencies_2

Commitments and Contingencies - Capital Leases (Details)	Sep. 30, 2018USD ($)
Capital leases
Present value of net minimum lease payments	$ 259,596

Commitments and Contingencies_3

Commitments and Contingencies - Royalty Obligations (Details) - Royalty obligations	Sep. 30, 2018USD ($)
Summary of Company’s enforceable and legally binding royalty obligations
Less than 1 year	$ 1,375,000
1 to 3 years	3,281,250
3 to 5 years	2,000,000
More than 5 years	2,333,333
Royalty obligations	$ 8,989,583

Commitments and Contingencies_4

Commitments and Contingencies - Purchase Obligations (Details)	Sep. 30, 2018USD ($)
Summary of Company’s enforceable and legally binding purchase obligations
Less than 1 year	$ 4,000,000
1 to 3 years	8,000,000
3 to 5 years	4,000,000
Purchase obligations	$ 16,000,000

Commitments and Contingencies_5

Commitments and Contingencies - Legal Proceedings (Details)	May 05, 2017USD ($)	Nov. 30, 2017	Sep. 30, 2018patent
Commitments and Contingencies
Number of patent under litigation | patent			1
Loss from litigation | $	$ 0
Period in which former employee could bring law suit		90 days

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Taxes
Income tax benefit	$ 2,489,029	$ 12,046,928	$ 1,999,323	$ 16,785,658
Loss before income tax	7,477,339	$ 24,319,749	$ 5,573,416	$ 59,118,170
Statutory income tax rate			21.00%	34.00%
Favorable adjustment to provision	$ 1,500,000

Related Parties (Details)

Related Parties (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)shareholder	Dec. 31, 2017USD ($)
Related Party Transaction [Line Items]
Rent expense under operating lease	$ 51,271	$ 74,765	$ 202,642	$ 239,395
Shareholder
Related Party Transaction [Line Items]
Accrued liability	$ 135,000		$ 135,000			$ 125,000
Vertical/Trigen
Related Party Transaction [Line Items]
Term of consulting agreement					2 years
Number of Vertical/Trigen shareholders | shareholder					2
Compensation rate per month					$ 20,833

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Events	Oct. 22, 2018itemshares
2016 Equity Incentive Plan
Subsequent Events
Number of anniversaries for vesting | item	4
Equity Incentive Plan 2018 [Member]
Subsequent Events
Shares reserved for future issuance | shares	4,100,000