Novelion Therapeutics (NVLN) 10-Q 7 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 02, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Registrant Name	NOVELION THERAPEUTICS INC.
Entity Central Index Key	827,809
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		18,852,557

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 39,976	$ 55,430
Accounts receivable, net	18,363	22,191
Inventories - current	13,245	15,886
Prepaid expenses and other current assets	14,757	11,436
Total current assets	86,341	104,943
Inventories - non-current	37,504	33,940
Property and equipment, net	2,375	2,920
Intangible assets, net	212,724	225,272
Other non-current assets	1,384	2,247
Total assets	340,328	369,322
Current liabilities:
Accounts payable	10,555	13,800
Accrued liabilities	45,618	41,838
Provision for legal settlements - current	8,727	8,596
Total current liabilities	64,900	64,234
Long-term debt	15,787	0
Convertible notes, net	277,143	258,538
Provision for legal settlements - non-current	25,965	31,016
Other non-current liabilities	1,493	596
Total liabilities	385,288	354,384
Commitments and contingencies (Note 12)
Shareholders’ equity:
Common shares, without par value, 100,000 shares authorized; 18,852 and 18,702 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	552,506	551,925
Additional paid-in-capital	78,136	73,185
Accumulated deficit	(778,064)	(713,974)
Accumulated other comprehensive income	102,462	103,802
Total shareholders’ (deficit) equity	(44,960)	14,938
Total liabilities and shareholders’ (deficit) equity	$ 340,328	$ 369,322

Unaudited Condensed Consolidat3

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	18,852,000	18,702,000
Common stock, shares outstanding (in shares)	18,852,000	18,702,000

Unaudited Condensed Consolidat4

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net revenues	$ 31,904,000	$ 40,877,000	$ 59,388,000	$ 70,861,000
Cost of product sales	15,703,000	14,277,000	29,208,000	30,722,000
Operating expenses:
Selling, general and administrative	23,735,000	26,514,000	47,424,000	50,965,000
Research and development	10,360,000	10,824,000	22,126,000	20,124,000
Restructuring charges	0	1,034,000	0	2,485,000
Total operating expenses	34,095,000	38,372,000	69,550,000	73,574,000
Loss from operations	(17,894,000)	(11,772,000)	(39,370,000)	(33,435,000)
Interest expense, net	(11,594,000)	(9,613,000)	(22,480,000)	(18,825,000)
Other (expense) income, net	(728,000)	75,000	(1,035,000)	127,000
Loss before provision for income taxes	(30,216,000)	(21,310,000)	(62,885,000)	(52,133,000)
Provision for income taxes	(1,046,000)	(126,000)	(1,205,000)	(265,000)
Net loss	$ (31,262,000)	$ (21,436,000)	$ (64,090,000)	$ (52,398,000)
Net loss per common share—basic and diluted (in usd per share)	$ (1.67)	$ (1.15)	$ (3.42)	$ (2.82)
Weighted-average shares outstanding—basic and diluted (in shares)	18,759	18,609	18,731	18,575

Unaudited Condensed Consolidat5

Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (31,262)	$ (21,436)	$ (64,090)	$ (52,398)
Other comprehensive (loss) income:
Foreign currency translation	(1,995)	576	(1,340)	1,156
Other comprehensive (loss) income	(1,995)	576	(1,340)	1,156
Comprehensive loss	$ (33,257)	$ (20,860)	$ (65,430)	$ (51,242)

Unaudited Condensed Consolidat6

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash used in operating activities
Net loss	$ (64,090)	$ (52,398)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	918	974
Amortization of intangible assets	12,548	12,504
Stock-based compensation	1,842	2,493
Non-cash interest expense	19,146	15,805
Provision for inventory excess and obsolescence	0	1,536
Unrealized foreign exchange loss (gain)	1,170	(377)
Amortization of debt issuance costs	127	0
Deferred income taxes	919	(12)
Other non-cash operating activities	9	14
Changes in assets and liabilities:
Accounts receivable	3,790	(4,107)
Inventories	(2,772)	4,925
Prepaid expenses and other assets	(3,628)	(430)
Accounts payable	(3,345)	(8,232)
Accrued liabilities and other liabilities	(831)	608
Net cash used in operating activities	(34,197)	(26,697)
Cash used in investing activities
Purchases of property and equipment	(382)	(560)
Net cash used in investing activities	(382)	(560)
Cash provided by financing activities
Net proceeds from term loan, net of debt discount	19,977	0
Issuance of common shares	412	50
Payment of term loan issuance costs	(698)	0
Net cash provided by financing activities	19,691	50
Exchange rate effect on cash	(566)	1,534
Net decrease in cash and cash equivalents	(15,454)	(25,673)
Cash and cash equivalents, beginning of period	55,430	108,927
Cash and cash equivalents, end of period	39,976	83,254
Supplemental disclosures of cash flow information
Cash paid for interest	3,422	3,250
Cash (received) paid for taxes, net	(71)	986
Non-cash investing activities
Purchases of property and equipment included in accounts payable	$ 35	$ 1

Description of Business and Bas

Description of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Organization Novelion Therapeutics Inc. (“Novelion” or the “Company”) is a rare disease biopharmaceutical company dedicated to developing new standards of care for individuals living with rare diseases. Novelion has international operations, two commercial products, lomitapide and metreleptin, and one orphan drug-designated product candidate, zuretinol acetate (“zuretinol”). Lomitapide, which is marketed in the United States (“U.S.”) under the brand name JUXTAPID (lomitapide) capsules, is approved in the U.S. as an adjunct to a low-fat diet and other lipid-lowering treatments, including low-density lipoprotein (“LDL”) apheresis where available, to reduce low-density lipoprotein cholesterol (“LDL-C”), total cholesterol (“TC”), apolipoprotein B (“apo B”) and non-high-density lipoprotein cholesterol (“non-HDL-C”) in adult patients with homozygous familial hypercholesterolemia (“HoFH”). Lomitapide is also approved in the European Union (“EU”), under the brand name LOJUXTA, for the treatment of adult patients with HoFH, as well as in Japan, Canada, and a limited number of other countries. Metreleptin, a recombinant analog of human leptin, is currently marketed in the U.S. under the brand name MYALEPT (metreleptin for injection). MYALEPT is approved in the U.S. as an adjunct to diet as replacement therapy to treat the complications of leptin deficiency in patients with congenital or acquired Generalized Lipodystrophy (“GL”). In July 2018, metreleptin, under the brand name MYALEPTA, was approved in the EU as a treatment for the complications of leptin deficiency in patients with GL and Partial Lipodystrophy (“PL”). Additionally, both lomitapide and metreleptin are sold, on a named patient basis, in certain countries outside of the U.S. where such sales are permitted based on the approval of lomitapide and metreleptin in the U.S., such as Brazil. Basis of Presentation and Principles of Consolidation The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments (including normal recurring accruals) considered necessary for fair presentation of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. Operating results for the current interim period are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018 . This Form 10-Q should be read in conjunction with the audited consolidated financial statements and accompanying notes in the Company’s Form 10-K for the year ended December 31, 2017 (“2017 Form 10-K”). The accompanying Unaudited Condensed Consolidated Financial Statements include operations of Novelion and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. Going Concern The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared assuming the Company will continue to operate as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As presented in the Unaudited Condensed Consolidated Financial Statements, for the six months ended June 30, 2018 , the Company incurred a net loss of $64.1 million and used $34.2 million in cash to fund operating activities. The Company also has a significant level of indebtedness, consisting of 1) Aegerion's $325 million principal amount of convertible notes due August 15, 2019 (the “Convertible Notes”), as described in Note 7, Convertible Notes, net , and 2) Aegerion's $20.0 million term loan, along with the accrued unpaid interest, as described in Note 6, Loan and Security Agreement , which becomes due and payable on the earliest of (i) August 1, 2019, (ii) 30 days prior to the maturity date of the Convertible Notes, (iii) the date that any restructuring or recapitalization of all or substantially all of the Convertible Notes, including any exchange offer or similar transaction, is substantially consummated, and (iv) upon acceleration of the obligations under the loan and security agreement. The Company's anticipated operating cash usage and maturities of outstanding debt, as described above, raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the Unaudited Condensed Consolidated Financial Statements are issued. In an effort to alleviate the conditions that raise substantial doubt about the Company's ability to continue as a going concern, the Company plans to restructure its Convertible Notes and/or seek funding through equity and/or debt financings, strategic alliances, asset sales and/or other sources. Although the Company believes such plans, if effectively and timely executed, should provide the Company sufficient financing to meet its needs, successful execution of such plans is dependent on factors outside of the Company’s control. As such, the Company cannot conclude that such plans will be effectively implemented, or that such financing alternatives will be available, within one year after the date that the Unaudited Condensed Consolidated Financial Statements are issued. Should the Company be unable to execute its plans on an effective and timely basis, the Company’s business, result of operations, liquidity and financial condition would be materially and negatively affected, and the Company would be unable to continue as a going concern. Use of Estimates The preparation of Unaudited Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Unaudited Condensed Consolidated Financial Statements, and the reported amounts of expenses during the reporting periods presented. The Company’s estimates often are based on complex judgments, probabilities and assumptions that we believe to be reasonable but that are inherently uncertain and unpredictable. For any given individual estimate or assumption made by us, there may also be other estimates or assumptions that are reasonable. Actual results may differ from estimates made by management. Changes in estimates are reflected in reported results in the period in which they become known. Recently Adopted Accounting Standards Effective January 1, 2018, the Company adopted Accounting Standards Codification (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) and related ASUs, using the modified retrospective method. ASU 2014-09 represents a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This ASU sets forth a new five-step revenue recognition model which replaces most existing revenue recognition guidance including industry-specific guidance. The adoption of ASU 2014-09 and the related ASUs did not change the Company's revenue recognition and recognition of cost of product sales. As the Company did not identify any accounting changes that impacted the amount of net revenues, no adjustment to retained earnings was required upon adoption. Refer to Note 2, Revenue Recognition , for the required disclosures and a discussion of the Company's policies related to revenue recognition. New Accounting Standards Not Yet Adopted On February 25, 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Prior to January 1, 2018, the Company applied the revenue recognition guidance in accordance with FASB ASC Subtopic No. 605-15, Revenue Recognition-Products (“ASC 605”). Effective January 1, 2018, the Company applies the revenue recognition guidance in accordance with FASB ASC Topic 606. Prior to the second quarter of 2017, due to insufficient historical data to reasonably estimate the gross-to-net adjustments for rebates related to payors and insurance providers at the time of receipt by the Company's distributor for MYALEPT in the U.S., the Company accounted for MYALEPT shipments using a deferred revenue recognition model (sell-through method). Beginning in the second quarter of 2017, the Company determined that there was sufficient history to reasonably estimate expected rebates, and, to align its existing and anticipated revenue streams of products sold within the U.S., began recognizing sales of MYALEPT upon title transfer to distributors (sell-in method). Accordingly, the Company recognized a one-time increase in net revenue of $2.3 million resulting from this change in estimate in the second quarter of 2017, representing previously deferred product sales. As a result of the adoption of ASC Topic 606, net revenues associated with sales of MYALEPT during the three and six months ended June 30, 2017 would have been consistent as the original amount recognized by the Company during the same period under ASC 605. Additionally, in the second quarter of 2017, to improve distribution efficiency, the Company signed a letter of intent for the distribution of JUXTAPID with the same specialty pharmacy that distributes MYALEPT in the U.S. The agreement was finalized in October 2017, and the transition of this distribution model was completed in November 2017. Prior to the transition, the specialty pharmacy that distributed JUXTAPID did not take title to JUXTAPID; title was transferred upon delivery of JUXTAPID to the patients (sell-through model), and revenue was recognized upon the delivery to the patients, which is consistent with the accounting guidance under ASC Topic 606. Subsequent to completion of the transition, revenue from sales of JUXTAPID in the U.S. has been recognized upon title transfer to distributors (sell-in method) under ASC 605. Upon adoption of ASC Topic 606, there has been no change to revenue recognition. The Company's net revenues are primarily derived from product sales; the Company's remaining revenues are derived from the royalties on product sales made by its sublicensees in the EU and other territories. The following summarizes the revenue recognition for the respective revenue streams. Product Sales Revenues The Company recognizes revenue from sales of lomitapide and metreleptin at the point in time when control transfers, typically upon transfer of product to carrier or delivery of product to customers. Revenue is recognized net of estimated discounts, rebates, and any taxes collected from customers which are subsequently remitted to governmental authorities. Payment terms vary by contract, but payment is typically due within 30 to 120 days of delivery to the customer. Additionally, at period end, orders of the products may be in the process of fulfillment. In that event, if the related contract is for less than one year, the Company deems it unnecessary to assess whether a significant financing component exists and thus does not adjust the transaction price for the time value of money. Variable Consideration Product sales revenues are recognized at the net sales price (“transaction price”) which includes estimated reserves for variable consideration, upon the transfer of control of the Company's products. Variable consideration primarily includes government rebates, prompt payment discounts and distribution service fees. Estimates of variable consideration are made at contract inception and historical experience, market trends, industry data, and statutory requirements are considered when determining such estimates. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal of revenue will not occur. The Company reassesses variable consideration at the end of each reporting period as additional information becomes available with the variance recorded to product sales revenue. Government Rebates : The Company is subject to government mandated rebates for Medicare, Medicaid, Tricare and other government programs in the U.S. and other countries. These rebates are estimated based on actual payer information. The Company records an accrued liability for unpaid rebates related to products for which control has been transferred to distributors. The following table summarizes an analysis of the change in the government rebates for lomitapide and metreleptin for the period indicated: Amount (in thousands) Balance as of December 31, 2017 $ 13,471 Provision 12,625 Payments (13,184 ) Balance as of June 30, 2018 $ 12,912 Prompt Payment Discounts : The Company provides discounts to certain distributors if they pay for product within a defined period of time after title transfers, which are explicitly stated in the contract. These discounts are recorded as a reduction of revenue upon receipt of full payment from such distributors. Distributor Service Fees : Certain distributors provide distribution services to the Company for a fee. To the extent the services provided by distributors are distinct and the fees are at fair value, these amounts are recorded as a reduction of revenue. Other Incentives : The Company offers other incentives that vary by contract; these incentives take into account specific relevant factors and are analyzed for revenue recognition purposes on a case by case basis. Other Revenues

Inventories

Inventories	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories The components of inventories are as follows: June 30, December 31, (in thousands) Work-in-process $ 25,565 $ 22,579 Finished goods 25,184 27,247 Total 50,749 49,826 Less: Inventories - current (13,245 ) (15,886 ) Inventories - non-current $ 37,504 $ 33,940 A portion of inventory is classified as non-current as of June 30, 2018 and December 31, 2017 based on forecasted consumption exceeding one year. During the three and six months ended June 30, 2018 , there were immaterial charges for excess or obsolete inventory in the Unaudited Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2017, the Company recorded $1.5 million

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Intangible assets are amortized over their estimated useful lives and reviewed for impairment when events and changes in circumstances indicate that the carrying amount may not be recoverable. During the three and six months ended June 30, 2018 and 2017, there were no impairment charges recorded. Additionally, the Company reviewed the useful lives of the intangibles as of June 30, 2018 and believes the useful lives are still reasonable. Intangible asset balances as of June 30, 2018 and December 31, 2017 are as follows: June 30, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Developed technology - lomitapide $ 42,300 $ (6,230 ) $ 36,070 Developed technology - metreleptin 210,158 (33,504 ) 176,654 Total intangible assets $ 252,458 $ (39,734 ) $ 212,724 December 31, 2017 Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Developed technology - lomitapide $ 42,300 $ (4,262 ) $ 38,038 Developed technology - metreleptin 210,158 (22,924 ) 187,234 Total intangible assets $ 252,458 $ (27,186 ) $ 225,272 Amortization expense was $6.3 million for both three-month periods ended June 30, 2018 and 2017 and $12.5 million for both six-month periods ended June 30, 2018 and 2017, respectively. As of June 30, 2018 , the estimated amortization expense related to intangibles for future periods is as follows: Amount Years Ending December 31, (in thousands) 2018 (remaining 6 months) $ 12,547 2019 25,095 2020 25,095 2021 25,095 2022 25,095 Thereafter 99,797 Total intangible assets subject to amortization $ 212,724

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following: June 30, December 31, (in thousands) Accrued clinical costs $ 3,565 $ 2,495 Accrued employee compensation and related costs 5,898 7,755 Accrued professional fees 4,735 4,118 Accrued sales allowances 12,912 13,471 Accrued royalties 4,281 3,588 Other accrued liabilities 14,227 10,411 Total $ 45,618 $ 41,838 There were no restructuring charges incurred during the three and six months ended June 30, 2018 . During the three and six months ended June 30, 2017 , the Company incurred $1.0 million and $2.5 million

Loan and Security Agreement

Loan and Security Agreement	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Loan and Security Agreement	Loan and Security Agreement Long-term debt consists of the following: June 30, 2018 (in thousands) Note payable under term loan $ 20,000 Accrued unpaid interest 540 Unamortized debt issuance costs (453 ) Unamortized related debt discount (23 ) Relative fair value attributable to warrants (3,396 ) Fair value attributable to embedded derivative (881 ) Long-term debt $ 15,787 On March 15, 2018, Aegerion entered into a loan and security agreement (the “Term Loan Agreement”), pursuant to which the lenders made a single-draw term loan to Aegerion in an aggregate amount of $20.0 million (the “Term Loan”), secured by substantially all of Aegerion’s assets, including a pledge of 66% of its first-tier foreign subsidiaries’ equity interests and substantially all of the intellectual property and related rights in respect of MYALEPT and JUXTAPID, subject to certain exceptions. Interest on the Term Loan accrues at 9.00% per annum. The Term Loan matures on the earliest of (i) August 1, 2019, (ii) 30 days prior to the maturity date of the Convertible Notes, (iii) the date that any restructuring or recapitalization of all or substantially all of the Convertible Notes, including any exchange offer or similar transaction, is substantially consummated, and (iv) upon acceleration of the obligations under the Term Loan Agreement (the earliest of such date being referred to as the “Loan Maturity Date”). Concurrently with the execution of the Term Loan Agreement, the Company, Aegerion, and the lenders entered into a subordination agreement to subordinate the Term Loan to the obligations of Aegerion to Novelion under the amended and restated senior secured term loan agreement, which is secured by the same collateral as the Term Loan. Following an event of default and so long as an event of default is continuing, the interest rate would increase by 3.00% per annum. These events of default include, among other things and subject to certain cure periods: failure to timely pay the principal or interest; breaches of its covenants; an occurrence of material adverse change, which includes a material impairment in the lenders' lien or collateral, or a material, adverse change in the business operations, or a material impairment of repayment of any portion of the outstanding obligations; a notice of lien or levy filed against Aegerion's assets; the insolvency of Aegerion; the occurrence of any default under other agreements, which results in an acceleration of the maturity of any indebtedness in an amount of greater than $300,000 ; any additional final judgments, orders or decrees against Aegerion in an amount of greater than $300,000 ; and any material misrepresentations included in the Term Loan Agreement. Interest will accrue and compound quarterly in arrears and is not payable in cash until the Loan Maturity Date or any earlier time that interest and principal become due and payable under the Term Loan. The Term Loan may be prepaid, in whole or in part, by Aegerion at any time without premium or penalty. The lenders or their affiliates are also investors in the Company’s common shares, and two members of the Company's Board of Directors are affiliates of the lenders. In connection with the Term Loan Agreement, the lenders were issued warrants (“Warrants”) to purchase approximately 1.8 million Novelion common shares. The Warrants have an exercise price equal to $4.40 per share, representing the volume weighted average price of Novelion common shares for the 20 trading days ended March 14, 2018, and have a term of four years . The Company applied the Black-Scholes option pricing model to estimate the fair value of the Warrants, with the following assumptions: a) the risk-free rates based on the U.S. Treasury yield curve, for a term of four years; b) the volatility based on the historical and implied volatility of the Company's publicly traded common shares as of March 15, 2018; and c) no dividend would be payable. Based on this model, the aggregate relative fair value of the Warrants was determined to be $3.4 million . The Company allocated the proceeds received from the Term Loan between the Term Loan and the Warrants on a relative fair value basis at the time of the Term Loan issuance. See the relative fair value of the Warrants determined as set forth above and Note 8, Fair Value of Financial Instruments , for further discussion on the relative fair value of the Term Loan. The relative fair value of the Term Loan was determined to be $16.6 million , and the Company accrued unpaid interest and recorded amortization of debt issuance costs, which was recognized as interest expense, in the Unaudited Condensed Consolidated Statement of Operations during the three and six months ended June 30, 2018 . The remainder of the proceeds, or $3.4 million , was allocated to the Warrants, which was accounted for as additional paid-in-capital. As of June 30, 2018 , the principal amount of the Term Loan outstanding was $20.0 million , in addition to $0.5 million of unpaid interest accrued. The Company determined the acceleration of the Loan Maturity Date upon the occurrence of a Convertible Notes restructuring to be an embedded derivative, which requires bifurcation and is separately ascribed with a fair value. See Note 8, Fair Value of Financial Instruments , for further discussion on the fair value of the embedded derivative liability. As a result, the Company initially recorded a derivative liability of $0.9 million as a reduction to long-term debt in its Unaudited Condensed Consolidated Balance Sheet. The derivative liability is revalued on each reporting date and is valued at $0.9 million at June 30, 2018

Convertible Notes, net

Convertible Notes, net	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Convertible Notes, net	Convertible Notes, net The Convertible Notes are senior unsecured obligations of Aegerion. The Convertible Notes bear interest at a rate of 2.0% per year, payable semi-annually in arrears on February 15 and August 15, and have an effective interest rate of 16.42% , established as of the consummation of the Company's acquisition of Aegerion. The Convertible Notes will mature on August 15, 2019, unless earlier repurchased, converted or renegotiated. The outstanding Convertible Notes balances as of June 30, 2018 and December 31, 2017 consist of the following: June 30, 2018 December 31, 2017 (in thousands) Principal $ 324,998 $ 324,998 Less: debt discount (47,855 ) (66,460 ) Net carrying amount $ 277,143 $ 258,538 The following table sets forth total interest expense recognized related to the Convertible Notes during the three and six months ended June 30, 2018 and 2017: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Contractual interest expense $ 1,625 $ 1,625 $ 3,250 $ 3,250 Amortization of debt discount 9,492 8,063 18,605 15,805 Total $ 11,117 $ 9,688 $ 21,855 $ 19,055 Future minimum payments under the Convertible Notes are as follows: Years Ending December 31, Amount (in thousands) 2018 $ 3,250 2019 331,498 334,748 Less amounts representing interest (9,750 ) Less debt discount, net (47,855 ) Net carrying amount of Convertible Notes as of June 30, 2018 $ 277,143

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy for those instruments measured at fair value is established that distinguishes between fair value measurements based on market data (observable inputs) and those based on the Company’s own assumptions (unobservable inputs). This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 — Inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly. Level 3 — Inputs that are unobservable for the asset or liability. The fair value measurements of the Company’s financial instruments as of June 30, 2018 are summarized in the table below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at June 30, 2018 (in thousands) Assets: Money market funds $ 15,050 $ — $ — $ 15,050 Liabilities: Embedded derivative liability $ — $ — $ 902 $ 902 The fair value measurements of the Company’s financial instruments as of December 31, 2017 are summarized in the table below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2017 (in thousands) Assets: Money market funds $ 20,046 $ — $ — $ 20,046 The fair value of the Convertible Notes, which differs from their carrying values, is influenced by interest rates, the Company’s share price and share price volatility and is determined by prices for the Convertible Notes observed in market trading which are Level 2 inputs. The estimated fair value of the Convertible Notes at June 30, 2018 and December 31, 2017 was $209.6 million and $258.3 million , respectively. See Note 7, Convertible Notes, net , for further information. The fair value of the Term Loan was determined using the Black-Derman-Toy interest rate lattice model. This model generates two probable outcomes of interest rates - one up and one down - emanating at each point in time starting from March 15, 2018 ("Term Loan issuance date") to the Loan Maturity Date. The key inputs utilized in the valuation model, which include certain Level 3 inputs, consist of: (1) the volatility of interest rates based on historical volatility of interest rates observed and implied interest rates based on swaption trades; (2) credit spread applicable for the Term Loan; and (3) interest rate on the Term Loan. Under this model, the relative fair value of the Term Loan on the Term Loan issuance date was determined to be $16.6 million . The fair value of the embedded derivative liability on the Term Loan issuance date was calculated by determining the fair value of the Term Loan with and without the acceleration of the Loan Maturity Date upon an occurrence of a Convertible Notes restructuring, using the same methodology and inputs in determining the fair value of the Term Loan as discussed above. The difference between the two fair values was determined to be the fair value of the embedded derivative liability. The fair value of the embedded derivative liability will be remeasured at each reporting period, with changes in fair value recognized in the consolidated statement of operations. The change in the fair value of the embedded derivative liability during the three months ended June 30, 2018 was immaterial. For the determination of the fair value of the Warrants, including the related valuation methodology and inputs, see Note 6, Loan and Security Agreement , for further information. The Company's financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to their immediate or short-term maturities. These financial instruments are also exposed to credit risks. To limit the Company’s credit exposure, cash and cash equivalents are deposited with high-quality financial institutions in accordance with its treasury policy goal to preserve capital and maintain liquidity. The Company’s treasury policy limits investments to certain money market securities issued by governments, financial institutions and corporations with investment-grade credit ratings, and places restrictions on maturities and concentration by issuer. The Company maintains its cash, cash equivalents and restricted cash in bank accounts, which, at times, exceed federally insured limits. The Company has not experienced any credit losses in these accounts and does not believe it is exposed to any significant credit risk on these funds.

Basic and Diluted Net Loss per

Basic and Diluted Net Loss per Common Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Basic and Diluted Net Loss per Common Share	Basic and Diluted Net Loss per Common Share Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per common share is computed by dividing the net loss by the weighted-average number of unrestricted common shares and dilutive common share equivalents outstanding for the period, determined using the treasury-stock and if-converted methods. Since the Company has had net losses for all periods presented, all potentially dilutive securities were determined to be anti-dilutive. Accordingly, basic and diluted net loss per common share are equal. The following table sets forth potential common shares issuable upon the exercise of outstanding options, warrants, the vesting of restricted stock units, the purchasable employee stock purchase plan shares, and the conversion of the Convertible Notes (prior to consideration of the treasury stock and if-converted methods), which were excluded from the computation of diluted net loss per common share because such instruments were anti-dilutive: As of June 30, 2018 2017 (in thousands) Stock options 2,029 1,922 Unvested restricted stock units 553 759 Potentially issuable employee stock purchase plan shares 61 — Warrants 1,819 14,515 Convertible notes 1,619 1,619 Total 6,081 18,815 The outstanding warrants as of June 30, 2018 were issued in connection with the Term Loan Agreement entered on March 15, 2018, as described in Note 6, Loan and Security Agreement . The outstanding warrants as of June 30, 2017 were issued in connection with the Company's acquisition of Aegerion in fiscal year 2016, which warrants were cancelled unexercised during the three months ended March 31, 2018. Refer to Note 13 , Share Capital

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax basis of assets and liabilities using enacted tax rates in effect for years in which the temporary differences are expected to reverse. The Company provides a valuation allowance when it is more likely than not that deferred tax assets will not be realized . The Company recorded a provision for income taxes of $1.0 million and $0.1 million for the three months ended June 30, 2018 and 2017 , and $1.2 million and $0.3 million for the six months ended June 30, 2018 and 2017 , respectively. The provisions for income taxes for the three and six months ended June 30, 2018 consist of current tax expense, which relates primarily to the Company’s profitable operations in its foreign tax jurisdictions, and deferred tax expense, which relates to the establishment of a valuation on the Company’s foreign deferred tax assets. The provisions for income taxes for the three and six months ended June 30, 2017 consist of current tax expense, which relates primarily to the Company’s profitable operations in its foreign tax jurisdictions. The realization of deferred income tax assets is dependent on the generation of sufficient taxable income during future periods in which temporary differences are expected to reverse. Where the realization of such assets does not meet the more likely than not criterion, the Company applies a valuation allowance against the deferred income tax asset under consideration. The valuation allowance is reviewed periodically and if the assessment of the more likely than not criterion changes, the valuation allowance is adjusted accordingly. As of June 30, 2018 , the Company has a full valuation allowance applied against its Canadian, U.S., and foreign deferred tax assets. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted into law. The Act reduced the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. As a result of the Company's U.S. valuation allowance on its U.S. deferred tax assets, the Act did not have an impact on the provision for income taxes for the three and six months ended June 30, 2018 . In conjunction with the Act, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. The Company recognized the provisional impacts related to deemed repatriated earnings and the revaluation of deferred tax assets and liabilities and included these amounts in its audited consolidated financial statements for the year ended December 31, 2017. During the three and six months ended June 30, 2018

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment information	Segment information The Company currently operates in one business segment, pharmaceuticals, and is focused on the development and commercialization of two commercial products. The Company's Executive Vice President, Acting Chief Executive Officer and Chief Operating Officer is the Company's chief operating decision maker (“CODM”). The Company does not operate any separate lines of business or separate business entities with respect to its products. Accordingly, the Company does not accumulate discrete financial information with respect to separate service lines and does not have separately reportable segments. Enterprise-wide disclosures about net revenues and long-lived assets by geographic area and information relating to major customers are presented below. Net Revenues The following table summarizes total net revenues from external customers by product and by geographic region, based on the location of the customer, for the three months ended June 30, 2018 and 2017 . Three Months Ended June 30, 2018 2017 U.S. Brazil Other Foreign Countries Total U.S. Brazil Other Foreign Countries Total (in thousands) (in thousands) Lomitapide $ 10,477 $ — $ 5,795 $ 16,272 $ 11,056 $ 4,299 $ 5,358 $ 20,713 Metreleptin 12,481 — 3,151 15,632 14,867 3,759 1,538 20,164 Total $ 22,958 $ — $ 8,946 $ 31,904 $ 25,923 $ 8,058 $ 6,896 $ 40,877 The following table summarizes total net revenues from external customers by product and by geographic region, based on the location of the customer, for the six months ended June 30, 2018 and 2017 . Six Months Ended June 30, 2018 2017 U.S. Brazil Other Foreign Countries Total U.S. Brazil Other Foreign Countries Total (in thousands) (in thousands) Lomitapide $ 19,100 $ — $ 10,537 $ 29,637 $ 21,932 $ 5,939 $ 8,866 $ 36,737 Metreleptin 22,248 1,170 6,333 29,751 26,341 4,986 2,797 34,124 Total $ 41,348 $ 1,170 $ 16,870 $ 59,388 $ 48,273 $ 10,925 $ 11,663 $ 70,861 During the three months ended June 30, 2018 and 2017 , net revenues generated from customers outside of the U.S. and Brazil, as listed in the column “Other Foreign Countries,” were primarily derived from Colombia and Japan. Net revenues generated from customers located in other foreign countries were primarily derived from Colombia, France, Japan, and Turkey during the six months ended June 30, 2018 and from Argentina, Colombia, and Japan during the six months ended June 30, 2017 . Significant Customers For the three months ended June 30, 2018 , one customer accounted for 72% of the Company’s net revenues and accounted for 51% of the Company's June 30, 2018 accounts receivable balance. For the three months ended June 30, 2017 , three customers accounted for 83% of the Company's net revenues, of which, two of them accounted for 71% of the Company's June 30, 2017 accounts receivable balance. For the six months ended June 30, 2018 , one customer accounted for 70% of the Company's net revenues, and for the six months ended June 30, 2017 , three customers accounted for 84% of the Company's net revenues. Long-lived Assets The Company’s long-lived assets are primarily comprised of intangible assets and property and equipment. As of June 30, 2018 and December 31, 2017, 100% of the Company's intangible assets were held by the Company's indirect wholly owned subsidiary, Aegerion. Of that, 65% of the intangible assets were attributable to Aegerion's U.S. business, with the remaining 35% attributable to Aegerion's European holding company, as of both June 30, 2018 and December 31, 2017. As of both June 30, 2018 and December 31, 2017, 75%

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company accrues a liability for legal contingencies when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss. The Company reviews these accruals and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel and other relevant information. To the extent new information is obtained and the Company's views on the probable outcomes of claims, suits, assessments, investigations or legal proceedings change, changes in the Company's loss contingency accrual would be recorded in the period in which such determination is made. DOJ/SEC Investigations In late 2013, Aegerion received a subpoena from the Department of Justice (the “DOJ”), represented by the U.S. Attorney’s Office in Boston, requesting documents regarding its marketing and sale of JUXTAPID in the U.S., as well as related public disclosures (the “DOJ investigation”). In late 2014, Aegerion received a subpoena from the Securities and Exchange Commission (“SEC”) requesting certain information related to Aegerion’s sales activities and disclosures related to JUXTAPID. The SEC also requested documents and information on a number of other topics, including documents related to the investigations by government authorities in Brazil into whether Aegerion’s activities in Brazil violated Brazilian anti-corruption laws, and whether Aegerion’s activities in Brazil violated the Foreign Corrupt Practices Act (“FCPA”). As a result of the SEC's investigation, Aegerion consented to the entry of a final judgment, on September 25, 2017, in connection with a complaint filed by the SEC without admitting or denying the allegations set forth in the complaint (“the SEC Judgment”). The complaint alleged negligent violations of Sections 17(a)(2) and (3) of the Securities Act of 1933, as amended, related to certain statements made by Aegerion in 2013 regarding the conversion rate for JUXTAPID prescriptions. The SEC Judgment, which was approved by a U.S. District Court judge on September 25, 2017, provides that Aegerion must pay a civil penalty in the amount of $4.1 million , to be paid in installments over three years , plus interest on any unpaid balance at a rate of 1.75% per annum. As of June 30, 2018 , $1.0 million remains due as a current liability, and $1.2 million remains due as a non-current liability. Aegerion’s payment of this civil penalty is subject to acceleration in the event of certain change of control transactions or certain transfers of Aegerion’s rights in JUXTAPID or MYALEPT. Aegerion’s payment schedule is also subject to acceleration in the event that Aegerion fails to satisfy its payment obligations under the SEC Judgment. In connection with the DOJ investigation, Aegerion entered into a Plea Agreement, a Deferred Prosecution Agreement (“DPA”), a Civil Settlement, certain State Settlement Agreements, and a Consent Decree of Permanent Injunction (“FDA Consent Decree”). Under the Court-approved DOJ Plea Agreement, Aegerion pled guilty to two misdemeanor misbranding violations of the Federal Food, Drug, and Cosmetic Act (“FDCA”) and on January 30, 2018, a U.S. District Court Judge sentenced Aegerion. The Court did not impose a criminal fine and instead ordered Aegerion to pay restitution, in the amount of $7.2 million payable over three years , plus interest on any unpaid balance at a rate of 1.75% per annum, into a fund managed by an independent claims administrator. As of June 30, 2018 , $2.3 million remains due as a current liability, and $3.2 million remains due as a non-current liability. As contemplated by the Plea Agreement, Aegerion was further sentenced to a three -year term of probation. Among the terms of probation, Aegerion must (i) comply with federal, state and local laws, (ii) notify its probation officer of any prosecution, major civil litigation or administrative proceeding, (iii) seek permission of its probation officer prior to selling, assigning or transferring assets, (iv) notify its probation officer of any material change in its economic circumstances, (v) forbear from disparaging the factual basis of Aegerion’s plea or denying that Aegerion itself is guilty, and (vi) comply with the DPA and Corporate Integrity Agreement (“CIA”) (and submit certain reports prepared thereunder to its probation officer). Under the terms of the DPA, Aegerion admitted it engaged in conduct that constituted a conspiracy to violate the Health Insurance Portability and Accountability Act (“HIPAA”). The DPA provides that Aegerion must continue to cooperate fully with the DOJ concerning its investigation into other individuals or entities. The DPA provides that Aegerion must maintain a robust compliance and ethics program that includes various complex and burdensome certification, training, monitoring, and other requirements. Aegerion, as well as the Board of Directors of the Company (or a designated committee thereof), must also conduct regular reviews of its compliance and ethics program, provide certifications to the DOJ that the program is believed to be effective and notify the DOJ of any probable violations of HIPAA. In the event Aegerion breaches the DPA, there is a risk the government would seek to impose remedies provided for in the DPA, including instituting criminal prosecution against Aegerion and/or seeking to impose stipulated penalties against Aegerion. The DPA is subject to supervision by a U.S. District Court judge. Aegerion also entered into the DOJ Civil Settlement Agreement to resolve allegations by the DOJ that false claims for JUXTAPID were submitted to governmental healthcare programs. The DOJ Civil Settlement Agreement requires Aegerion to pay a civil settlement in the amount of $28.8 million , which includes up to $2.7 million designated for certain U.S. states relating to Medicaid expenditures for JUXTAPID, to be paid in installments over three years . As of June 30, 2018 , $5.4 million remains due as a current liability, and $21.6 million remains due as a non-current liability. Aegerion’s payment of this civil settlement amount is subject to acceleration in the event of certain change of control transactions or certain transfers of Aegerion’s rights in JUXTAPID or MYALEPT. In the event that Aegerion fails to satisfy its obligations under the DOJ Civil Settlement Agreement, Aegerion could be subject to additional penalties or litigation. Aegerion also agreed to enter into the State Settlement Agreements to resolve claims under state law analogues to the federal False Claims Act. The terms of the State Settlement Agreements are substantially similar to those set forth in the DOJ Civil Settlement Agreement. As noted above, participating states will receive up to $2.7 million in the aggregate from the $28.8 million amount to be paid pursuant to the DOJ Civil Settlement Agreement. Aegerion also agreed to the FDA Consent Decree with the DOJ and the FDA to resolve a separate civil complaint alleging that Aegerion violated the FDCA by failing to comply with the JUXTAPID REMS program and the requirement to provide adequate directions for all of the uses for which it distributed JUXTAPID. The FDA Consent Decree requires Aegerion, among other things, to comply with the JUXTAPID REMS program; retain a qualified independent auditor to conduct annual audits of its compliance with the JUXTAPID REMS program; and remediate any noncompliance identified by the auditor within specified timeframes. In the event Aegerion fails to comply with the JUXTAPID REMS program or any other provisions of the FDA Consent Decree, Aegerion could be subject to additional administrative remedies, civil or criminal penalties and/or stipulated damages. Aegerion is required to notify the FDA in advance of certain changes in control, or changes in its business that may affect its operations, assets, rights or liabilities in the United States. On May 18, 2018, the DOJ and Aegerion filed a joint motion seeking a hearing concerning the status of the FDA Consent Decree, which does not take effect until it is approved by the Court and the injunction order is issued. Separately, Aegerion entered into a CIA with the Department of Human Services Office of the Inspector General (“OIG”). The CIA requires Aegerion, among other things, to maintain a compliance program with various complex and burdensome requirements relating to, among other things, training, monitoring, annual risk assessment and mitigation processes, independent review of Aegerion’s compliance and other activities, a disclosure program, and an executive financial recoupment program. Under the CIA, Aegerion, as well as the Board of Directors of the Company (or a designated committee thereof), must also conduct regular reviews of Aegerion’s compliance program and provide an annual resolution or certification to OIG that the program is believed to be effective. Additionally, Aegerion has certain certification and reporting obligations under the CIA. In the event Aegerion breaches the CIA, there is a risk the government would seek to impose remedies provided for in the CIA, including seeking to impose stipulated penalties against Aegerion and/or seeking to exclude Aegerion from participation in federal healthcare programs. Investigations in Brazil Federal and state authorities in Brazil are conducting an investigation to determine whether there have been violations of Brazilian laws related to the sales of JUXTAPID in Brazil. In July 2016, the Ethics Council of Interfarma fined Aegerion's subsidiary in Brazil (“Aegerion Brazil”) approximately $0.5 million for violations of the industry association’s Code of Conduct, to which Aegerion Brazil is bound due to its affiliation with Interfarma. Also, the Board of Directors of Interfarma imposed an additional penalty of suspension of Aegerion Brazil’s membership, without suspension of Aegerion Brazil’s membership contribution, for a period of 180 days for Aegerion Brazil to demonstrate the implementation of effective measures to cease alleged irregular conduct, or exclusion of the Company's membership in Interfarma if such measures are not implemented. Aegerion Brazil paid the fine of approximately $0.5 million during the third quarter of 2016. In March 2017, after the suspension period ended, Interfarma’s Board of Directors decided to reintegrate Aegerion Brazil, enabling it to participate regularly in Interfarma activities, subject to meeting certain obligations. Also, in July 2016, Aegerion Brazil received an inquiry from a Public Prosecutor Office of the Brazilian State of Paraná asking it to respond to questions related to media coverage regarding JUXTAPID and its relationship with a patient association to which Aegerion made donations for patient support. This preliminary inquiry was later reclassified as a civil inquiry, which is a preliminary procedure by the Public Prosecutor's Office that aims to verify if there are enough elements for it to file a formal lawsuit or to dismiss the inquiry. In March 2018, the Paraná State Public Prosecutor’s Office sent the civil inquiry to the Federal Public Prosecutor’s Office, after deciding that the potential case should be subject to federal jurisdiction. In June 2017, the Federal Public Prosecutor of the City of São José dos Campos, State of São Paulo, in connection with its criminal investigation into former employees of Aegerion Brazil, requested that a Brazilian federal court provide federal investigators with access to the bank records of certain individuals and entities, including Aegerion Brazil, certain former Aegerion Brazil employees, a Brazilian patient association, and certain Brazilian physicians. The Federal Trial Court Judge issued a decision on July 12, 2018 authorizing the access to the banking records on the terms that the Federal Public Prosecutor of the City of São José dos Campos had requested. On July 16, 2018, Aegerion Brazil filed an appeal of the decision that authorized the breach of the banking secrecy, which was denied by the Federal Court Judge. The Public Prosecutors in Paraná and São José dos Campos continue to gather information in connection with their respective investigations. At this time, the Company does not know whether the inquiries of the Public Prosecutors in Paraná or São José dos Campos will result in the commencement of any formal proceeding against Aegerion, but if Aegerion’s activities in Brazil are found to violate any laws or governmental regulations, Aegerion may be subject to significant civil lawsuits to be filed by the Public Prosecution office, and administrative penalties imposed by Brazilian regulatory authorities and additional damages and fines. Under certain circumstances, Aegerion could be barred from further sales to federal and/or state governments in Brazil, including sales of JUXTAPID and/or MYALEPT, due to penalties imposed by Brazilian regulatory authorities or through civil actions initiated by federal or state public prosecutors. As of the filing date of this Form 10-Q, the Company cannot determine if a loss is probable as a result of the investigations and inquiry in Brazil and whether the outcome will have a material adverse effect on the Company's business and, as a result, no amounts have been recorded for a loss contingency. Qui Tam Litigation In March 2014, an amended qui tam complaint was filed under seal in the District of Massachusetts against Aegerion, two former executive officers and a former employee. United States ex rel Clarke v. Aegerion Pharm. Inc. , No. 13-cv-11785-IT. On September 22, 2017, the U.S. filed a notice of intervention as to Aegerion. On September 27, 2017, the qui tam relators filed a second amended complaint naming additional parties, including a former board member, former executives, and former employees of Aegerion, as well as other third parties. The second amended complaint noted that the relators would file a joint stipulation of dismissal with respect to Aegerion upon the completion of certain conditions set forth in the Civil Settlement Agreement. On October 27, 2017, the court granted Aegerion and relators’ joint motion to stay proceedings until sentencing in the criminal matter is complete. On February 20, 2018, Aegerion was dismissed from the qui tam lawsuit. On June 5, 2018, two

Description of Business and B19

Description of Business and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Organization	Organization Novelion Therapeutics Inc. (“Novelion” or the “Company”) is a rare disease biopharmaceutical company dedicated to developing new standards of care for individuals living with rare diseases. Novelion has international operations, two commercial products, lomitapide and metreleptin, and one
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments (including normal recurring accruals) considered necessary for fair presentation of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. Operating results for the current interim period are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018 . This Form 10-Q should be read in conjunction with the audited consolidated financial statements and accompanying notes in the Company’s Form 10-K for the year ended December 31, 2017 (“2017 Form 10-K”).
Use of Estimates	Use of Estimates
Recently Adopted Accounting Standards and New Accounting Standards Not Yet Adopted	Recently Adopted Accounting Standards Effective January 1, 2018, the Company adopted Accounting Standards Codification (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) and related ASUs, using the modified retrospective method. ASU 2014-09 represents a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This ASU sets forth a new five-step revenue recognition model which replaces most existing revenue recognition guidance including industry-specific guidance. The adoption of ASU 2014-09 and the related ASUs did not change the Company's revenue recognition and recognition of cost of product sales. As the Company did not identify any accounting changes that impacted the amount of net revenues, no adjustment to retained earnings was required upon adoption. Refer to Note 2, Revenue Recognition , for the required disclosures and a discussion of the Company's policies related to revenue recognition. New Accounting Standards Not Yet Adopted On February 25, 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases
Revenue Recognition	Prior to January 1, 2018, the Company applied the revenue recognition guidance in accordance with FASB ASC Subtopic No. 605-15, Revenue Recognition-Products (“ASC 605”). Effective January 1, 2018, the Company applies the revenue recognition guidance in accordance with FASB ASC Topic 606. Prior to the second quarter of 2017, due to insufficient historical data to reasonably estimate the gross-to-net adjustments for rebates related to payors and insurance providers at the time of receipt by the Company's distributor for MYALEPT in the U.S., the Company accounted for MYALEPT shipments using a deferred revenue recognition model (sell-through method). Beginning in the second quarter of 2017, the Company determined that there was sufficient history to reasonably estimate expected rebates, and, to align its existing and anticipated revenue streams of products sold within the U.S., began recognizing sales of MYALEPT upon title transfer to distributors (sell-in method). Accordingly, the Company recognized a one-time increase in net revenue of $2.3 million resulting from this change in estimate in the second quarter of 2017, representing previously deferred product sales. As a result of the adoption of ASC Topic 606, net revenues associated with sales of MYALEPT during the three and six months ended June 30, 2017 would have been consistent as the original amount recognized by the Company during the same period under ASC 605. Additionally, in the second quarter of 2017, to improve distribution efficiency, the Company signed a letter of intent for the distribution of JUXTAPID with the same specialty pharmacy that distributes MYALEPT in the U.S. The agreement was finalized in October 2017, and the transition of this distribution model was completed in November 2017. Prior to the transition, the specialty pharmacy that distributed JUXTAPID did not take title to JUXTAPID; title was transferred upon delivery of JUXTAPID to the patients (sell-through model), and revenue was recognized upon the delivery to the patients, which is consistent with the accounting guidance under ASC Topic 606. Subsequent to completion of the transition, revenue from sales of JUXTAPID in the U.S. has been recognized upon title transfer to distributors (sell-in method) under ASC 605. Upon adoption of ASC Topic 606, there has been no change to revenue recognition. The Company's net revenues are primarily derived from product sales; the Company's remaining revenues are derived from the royalties on product sales made by its sublicensees in the EU and other territories. The following summarizes the revenue recognition for the respective revenue streams. Product Sales Revenues The Company recognizes revenue from sales of lomitapide and metreleptin at the point in time when control transfers, typically upon transfer of product to carrier or delivery of product to customers. Revenue is recognized net of estimated discounts, rebates, and any taxes collected from customers which are subsequently remitted to governmental authorities. Payment terms vary by contract, but payment is typically due within 30 to 120 days of delivery to the customer. Additionally, at period end, orders of the products may be in the process of fulfillment. In that event, if the related contract is for less than one year, the Company deems it unnecessary to assess whether a significant financing component exists and thus does not adjust the transaction price for the time value of money. Variable Consideration Product sales revenues are recognized at the net sales price (“transaction price”) which includes estimated reserves for variable consideration, upon the transfer of control of the Company's products. Variable consideration primarily includes government rebates, prompt payment discounts and distribution service fees. Estimates of variable consideration are made at contract inception and historical experience, market trends, industry data, and statutory requirements are considered when determining such estimates. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal of revenue will not occur. The Company reassesses variable consideration at the end of each reporting period as additional information becomes available with the variance recorded to product sales revenue. Government Rebates : The Company is subject to government mandated rebates for Medicare, Medicaid, Tricare and other government programs in the U.S. and other countries. These rebates are estimated based on actual payer information. The Company records an accrued liability for unpaid rebates related to products for which control has been transferred to distributors. The following table summarizes an analysis of the change in the government rebates for lomitapide and metreleptin for the period indicated: Amount (in thousands) Balance as of December 31, 2017 $ 13,471 Provision 12,625 Payments (13,184 ) Balance as of June 30, 2018 $ 12,912 Prompt Payment Discounts : The Company provides discounts to certain distributors if they pay for product within a defined period of time after title transfers, which are explicitly stated in the contract. These discounts are recorded as a reduction of revenue upon receipt of full payment from such distributors. Distributor Service Fees : Certain distributors provide distribution services to the Company for a fee. To the extent the services provided by distributors are distinct and the fees are at fair value, these amounts are recorded as a reduction of revenue. Other Incentives : The Company offers other incentives that vary by contract; these incentives take into account specific relevant factors and are analyzed for revenue recognition purposes on a case by case basis. Other Revenues
Fair Value of Financial Instruments	Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy for those instruments measured at fair value is established that distinguishes between fair value measurements based on market data (observable inputs) and those based on the Company’s own assumptions (unobservable inputs). This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 — Inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly. Level 3

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Change in Sales Allowance and Reserve	The following table summarizes an analysis of the change in the government rebates for lomitapide and metreleptin for the period indicated: Amount (in thousands) Balance as of December 31, 2017 $ 13,471 Provision 12,625 Payments (13,184 ) Balance as of June 30, 2018 $ 12,912

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Components of Inventory	The components of inventories are as follows: June 30, December 31, (in thousands) Work-in-process $ 25,565 $ 22,579 Finished goods 25,184 27,247 Total 50,749 49,826 Less: Inventories - current (13,245 ) (15,886 ) Inventories - non-current $ 37,504 $ 33,940

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible asset balances as of June 30, 2018 and December 31, 2017 are as follows: June 30, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Developed technology - lomitapide $ 42,300 $ (6,230 ) $ 36,070 Developed technology - metreleptin 210,158 (33,504 ) 176,654 Total intangible assets $ 252,458 $ (39,734 ) $ 212,724 December 31, 2017 Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Developed technology - lomitapide $ 42,300 $ (4,262 ) $ 38,038 Developed technology - metreleptin 210,158 (22,924 ) 187,234 Total intangible assets $ 252,458 $ (27,186 ) $ 225,272
Estimated Future Amortization Expense of Acquired Intangibles	As of June 30, 2018 , the estimated amortization expense related to intangibles for future periods is as follows: Amount Years Ending December 31, (in thousands) 2018 (remaining 6 months) $ 12,547 2019 25,095 2020 25,095 2021 25,095 2022 25,095 Thereafter 99,797 Total intangible assets subject to amortization $ 212,724

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Components of Accrued Liabilities	Accrued liabilities consist of the following: June 30, December 31, (in thousands) Accrued clinical costs $ 3,565 $ 2,495 Accrued employee compensation and related costs 5,898 7,755 Accrued professional fees 4,735 4,118 Accrued sales allowances 12,912 13,471 Accrued royalties 4,281 3,588 Other accrued liabilities 14,227 10,411 Total $ 45,618 $ 41,838

Loan and Security Agreement (Ta

Loan and Security Agreement (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consists of the following: June 30, 2018 (in thousands) Note payable under term loan $ 20,000 Accrued unpaid interest 540 Unamortized debt issuance costs (453 ) Unamortized related debt discount (23 ) Relative fair value attributable to warrants (3,396 ) Fair value attributable to embedded derivative (881 ) Long-term debt $ 15,787

Convertible Notes, net (Tables)

Convertible Notes, net (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Outstanding Convertible Note Balances	The outstanding Convertible Notes balances as of June 30, 2018 and December 31, 2017 consist of the following: June 30, 2018 December 31, 2017 (in thousands) Principal $ 324,998 $ 324,998 Less: debt discount (47,855 ) (66,460 ) Net carrying amount $ 277,143 $ 258,538
Schedule of Total Interest Expense Recognized Related to Convertible Notes	The following table sets forth total interest expense recognized related to the Convertible Notes during the three and six months ended June 30, 2018 and 2017: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Contractual interest expense $ 1,625 $ 1,625 $ 3,250 $ 3,250 Amortization of debt discount 9,492 8,063 18,605 15,805 Total $ 11,117 $ 9,688 $ 21,855 $ 19,055
Summary of Future Minimum Payments under Term Loan Agreements	Future minimum payments under the Convertible Notes are as follows: Years Ending December 31, Amount (in thousands) 2018 $ 3,250 2019 331,498 334,748 Less amounts representing interest (9,750 ) Less debt discount, net (47,855 ) Net carrying amount of Convertible Notes as of June 30, 2018 $ 277,143

Fair Value of Financial Instr26

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements of Financial Instruments	The fair value measurements of the Company’s financial instruments as of June 30, 2018 are summarized in the table below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at June 30, 2018 (in thousands) Assets: Money market funds $ 15,050 $ — $ — $ 15,050 Liabilities: Embedded derivative liability $ — $ — $ 902 $ 902 The fair value measurements of the Company’s financial instruments as of December 31, 2017 are summarized in the table below: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2017 (in thousands) Assets: Money market funds $ 20,046 $ — $ — $ 20,046

Basic and Diluted Net Loss pe27

Basic and Diluted Net Loss per Common Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Anti-Dilutive Securities Excluded from Computation	The following table sets forth potential common shares issuable upon the exercise of outstanding options, warrants, the vesting of restricted stock units, the purchasable employee stock purchase plan shares, and the conversion of the Convertible Notes (prior to consideration of the treasury stock and if-converted methods), which were excluded from the computation of diluted net loss per common share because such instruments were anti-dilutive: As of June 30, 2018 2017 (in thousands) Stock options 2,029 1,922 Unvested restricted stock units 553 759 Potentially issuable employee stock purchase plan shares 61 — Warrants 1,819 14,515 Convertible notes 1,619 1,619 Total 6,081 18,815

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of Net Product Sales from External Customers	The following table summarizes total net revenues from external customers by product and by geographic region, based on the location of the customer, for the three months ended June 30, 2018 and 2017 . Three Months Ended June 30, 2018 2017 U.S. Brazil Other Foreign Countries Total U.S. Brazil Other Foreign Countries Total (in thousands) (in thousands) Lomitapide $ 10,477 $ — $ 5,795 $ 16,272 $ 11,056 $ 4,299 $ 5,358 $ 20,713 Metreleptin 12,481 — 3,151 15,632 14,867 3,759 1,538 20,164 Total $ 22,958 $ — $ 8,946 $ 31,904 $ 25,923 $ 8,058 $ 6,896 $ 40,877 The following table summarizes total net revenues from external customers by product and by geographic region, based on the location of the customer, for the six months ended June 30, 2018 and 2017 . Six Months Ended June 30, 2018 2017 U.S. Brazil Other Foreign Countries Total U.S. Brazil Other Foreign Countries Total (in thousands) (in thousands) Lomitapide $ 19,100 $ — $ 10,537 $ 29,637 $ 21,932 $ 5,939 $ 8,866 $ 36,737 Metreleptin 22,248 1,170 6,333 29,751 26,341 4,986 2,797 34,124 Total $ 41,348 $ 1,170 $ 16,870 $ 59,388 $ 48,273 $ 10,925 $ 11,663 $ 70,861

Description of Business and B29

Description of Business and Basis of Presentation (Details) $ in Thousands	Mar. 15, 2018USD ($)	Jun. 30, 2018USD ($)drugproduct	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)drugproduct	Jun. 30, 2017USD ($)	Aug. 31, 2014USD ($)
Debt Instrument [Line Items]
Number of commercial products | product		2		2
Number of orphan drugs | drug		1		1
Net income (loss)		$ 31,262	$ 21,436	$ 64,090	$ 52,398
Cash used to fund operating activities				$ 34,197	$ 26,697
Net proceeds from new loan, net of debt discount	$ 20,000
Convertible Notes
Debt Instrument [Line Items]
Aggregate principal amount of convertible notes issued						$ 325,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Change in Accounting Estimate [Line Items]
Increase in net revenue	$ 31,904	$ 40,877	$ 59,388	$ 70,861
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance			13,471
Provision			12,625
Payments			(13,184)
Ending balance	$ 12,912		$ 12,912
Deferred product sales estimate
Change in Accounting Estimate [Line Items]
Increase in net revenue		$ 2,300

Inventories - Components of Inv

Inventories - Components of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Work-in-process	$ 25,565	$ 22,579
Finished goods	25,184	27,247
Total	50,749	49,826
Less: Inventories - current	(13,245)	(15,886)
Inventories - non-current	$ 37,504	$ 33,940

Inventories - Additional Inform

Inventories - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Inventory Disclosure [Abstract]
Charges for excess or obsolete inventory	$ 1.5	$ 1.5

Intangible Assets - Additional

Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of purchased intangibles	$ 0	$ 0	$ 0	$ 0
Amortization of expense of intangibles	$ 6,300,000	$ 6,300,000	$ 12,548,000	$ 12,504,000

Intangible Assets - Carrying Va

Intangible Assets - Carrying Value and Accumulated Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 252,458	$ 252,458
Accumulated Amortization	(39,734)	(27,186)
Net Carrying Value	212,724	225,272
Developed Technology Rights | JUXTAPID
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	42,300	42,300
Accumulated Amortization	(6,230)	(4,262)
Net Carrying Value	36,070	38,038
Developed Technology Rights | MYALEPT
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	210,158	210,158
Accumulated Amortization	(33,504)	(22,924)
Net Carrying Value	$ 176,654	$ 187,234

Intangible Assets - Estimated A

Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Net Carrying Value	$ 212,724	$ 225,272
Aegerion
Acquired Finite-Lived Intangible Assets [Line Items]
2018 (remaining 6 months)	12,547
2,019	25,095
2,020	25,095
2,021	25,095
2,022	25,095
Thereafter	99,797
Net Carrying Value	$ 212,724

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued clinical costs	$ 3,565	$ 2,495
Accrued employee compensation and related costs	5,898	7,755
Accrued professional fees	4,735	4,118
Accrued sales allowances	12,912	13,471
Accrued royalties	4,281	3,588
Other accrued liabilities	14,227	10,411
Total	$ 45,618	$ 41,838

Accrued Liabilities - Additiona

Accrued Liabilities - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Payables and Accruals [Abstract]
Restructuring charges	$ 0	$ 1,034,000	$ 0	$ 2,485,000

Loan and Security Agreement - S

Loan and Security Agreement - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Debt Instrument [Line Items]
Fair value attributable to embedded derivative	$ (902)	$ (900)
Secured Debt | New Loan Agreement
Debt Instrument [Line Items]
Note payable under term loan	20,000
Accrued unpaid interest	540
Unamortized debt issuance costs	(453)
Unamortized related debt discount	(23)
Relative fair value attributable to warrants	(3,396)
Fair value attributable to embedded derivative	(881)
Long-term debt	$ 15,787

Loan and Security Agreement - A

Loan and Security Agreement - Additional Information (Details) $ / shares in Units, shares in Millions	Mar. 15, 2018USD ($)director$ / sharesshares	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)
Debt Instrument [Line Items]
Embedded derivative liability		$ 902,000	$ 900,000
Secured Debt | New Loan Agreement
Debt Instrument [Line Items]
Loan aggregate amount	$ 20,000,000
First-tier pledge percentage	66.00%
Debt instrument, stated interest rate percentage	9.00%
Debt instrument, stated interest rate percentage increase due to event of default	3.00%
Principle allowed before maturity acceleration threshold	$ 300,000
Number of members of Board of Directors affiliated with lenders | director	2
Fair value of long-term debt	$ 16,600,000
Relative fair value attributable to warrants		3,396,000
Note payable under term loan		20,000,000
Accrued unpaid interest		540,000
Embedded derivative liability		$ 881,000
Common Stock | Secured Debt | New Loan Agreement
Debt Instrument [Line Items]
Warrants issued to purchase common shares (in shares) | shares	1.8
Exercise price of warrants (in dollars per share) | $ / shares	$ 4.40
Common shares trading days	20 days
Term of warrants (in years)	4 years
Fair value of warrants	$ 3,400,000
Relative fair value attributable to warrants	$ 3,400,000

Convertible Notes, net - Additi

Convertible Notes, net - Additional Information (Details) - Convertible Notes	Jun. 30, 2018	Aug. 31, 2014
Debt Instrument [Line Items]
Debt instrument, stated interest rate percentage		2.00%
Debt instrument, effective interest rate percentage	16.42%

Convertible Notes, net - Schedu

Convertible Notes, net - Schedule of Outstanding Convertible Note Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Liability component:
Net carrying amount of Convertible Notes as of March 31, 2018	$ 277,143	$ 258,538
Convertible Notes
Liability component:
Principal	324,998	324,998
Unamortized related debt discount	(47,855)	(66,460)
Net carrying amount of Convertible Notes as of March 31, 2018	$ 277,143	$ 258,538

Convertible Notes, net - Intere

Convertible Notes, net - Interest Expense Related to Convertible Notes (Details) - Convertible Notes - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Debt Instrument [Line Items]
Contractual interest expense	$ 1,625	$ 1,625	$ 3,250	$ 3,250
Amortization of debt discount	9,492	8,063	18,605	15,805
Total	$ 11,117	$ 9,688	$ 21,855	$ 19,055

Convertible Notes, net - Future

Convertible Notes, net - Future Minimum Payments under Convertible Notes (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Convertible notes, net	$ 277,143	$ 258,538
Convertible Notes
Debt Instrument [Line Items]
2,018	3,250
2,019	331,498
Total	334,748
Less amounts representing interest	(9,750)
Less debt discount, net	(47,855)	(66,460)
Convertible notes, net	$ 277,143	$ 258,538

Fair Value of Financial Instr44

Fair Value of Financial Instruments - Measurement of the Company's Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Assets:
Money market funds	$ 15,050		$ 20,046
Liabilities:
Embedded derivative liability	902	$ 900
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Money market funds	15,050		20,046
Liabilities:
Embedded derivative liability	0
Significant Other Observable Inputs (Level 2)
Assets:
Money market funds	0		0
Liabilities:
Embedded derivative liability	0
Significant Unobservable Inputs (Level 3)
Assets:
Money market funds	0		$ 0
Liabilities:
Embedded derivative liability	$ 902

Fair Value of Financial Instr45

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Mar. 15, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Liability	$ 902	$ 900
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Liability	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Liability	902
Convertible Notes | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of long-term debt	$ 209,600			$ 258,300
Secured Debt | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of long-term debt			$ 16,600

Basic and Diluted Net Loss pe46

Basic and Diluted Net Loss per Common Share (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common shares excluded because such instruments were anti-dilutive (in shares)	6,081	18,815
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common shares excluded because such instruments were anti-dilutive (in shares)	2,029	1,922
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common shares excluded because such instruments were anti-dilutive (in shares)	553	759
Potentially issuable employee stock purchase plan shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common shares excluded because such instruments were anti-dilutive (in shares)	61	0
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common shares excluded because such instruments were anti-dilutive (in shares)	1,819	14,515
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common shares excluded because such instruments were anti-dilutive (in shares)	1,619	1,619

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 1,046	$ 126	$ 1,205	$ 265

Segment Information - Additiona

Segment Information - Additional Information (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018customerproduct	Jun. 30, 2017customer	Jun. 30, 2018customersegmentproduct	Jun. 30, 2017customer	Dec. 31, 2017
Segment Reporting Information [Line Items]
Number of operating segments | segment			1
Number of commercial products | product	2		2
Customer Concentration Risk | Sales Revenue, Net
Segment Reporting Information [Line Items]
Number of major customers	1	3	1	3
Customer concentration risk, percentage	72.00%	83.00%	70.00%	84.00%
Customer Concentration Risk | Accounts Receivable
Segment Reporting Information [Line Items]
Number of major customers	1	2	1	2
Customer concentration risk, percentage	51.00%	71.00%
Geographic Concentration Risk | Intangible Assets | Aegerion
Segment Reporting Information [Line Items]
Customer concentration risk, percentage			100.00%		100.00%
U.S. | Geographic Concentration Risk | Intangible Assets | Aegerion
Segment Reporting Information [Line Items]
Customer concentration risk, percentage			65.00%		65.00%
U.S. | Geographic Concentration Risk | Property and Equipment
Segment Reporting Information [Line Items]
Customer concentration risk, percentage			75.00%		75.00%
Europe | Geographic Concentration Risk | Intangible Assets | Aegerion
Segment Reporting Information [Line Items]
Customer concentration risk, percentage			35.00%		35.00%

Segment Information - Summary o

Segment Information - Summary of Total Net Product Sale Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Net revenues	$ 31,904	$ 40,877	$ 59,388	$ 70,861
Lomitapide
Segment Reporting Information [Line Items]
Net revenues	16,272	20,713	29,637	36,737
Metreleptin
Segment Reporting Information [Line Items]
Net revenues	15,632	20,164	29,751	34,124
Total Products
Segment Reporting Information [Line Items]
Net revenues	31,904	40,877	59,388	70,861
U.S. | Lomitapide
Segment Reporting Information [Line Items]
Net revenues	10,477	11,056	19,100	21,932
U.S. | Metreleptin
Segment Reporting Information [Line Items]
Net revenues	12,481	14,867	22,248	26,341
U.S. | Total Products
Segment Reporting Information [Line Items]
Net revenues	22,958	25,923	41,348	48,273
Brazil | Lomitapide
Segment Reporting Information [Line Items]
Net revenues	0	4,299	0	5,939
Brazil | Metreleptin
Segment Reporting Information [Line Items]
Net revenues	0	3,759	1,170	4,986
Brazil | Total Products
Segment Reporting Information [Line Items]
Net revenues	0	8,058	1,170	10,925
Other Foreign Countries | Lomitapide
Segment Reporting Information [Line Items]
Net revenues	5,795	5,358	10,537	8,866
Other Foreign Countries | Metreleptin
Segment Reporting Information [Line Items]
Net revenues	3,151	1,538	6,333	2,797
Other Foreign Countries | Total Products
Segment Reporting Information [Line Items]
Net revenues	$ 8,946	$ 6,896	$ 16,870	$ 11,663

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	Jun. 05, 2018plaintiff	Jan. 30, 2018USD ($)	Sep. 25, 2017USD ($)claim	Sep. 22, 2017USD ($)	Jul. 31, 2016USD ($)	Mar. 31, 2014plaintiff	Sep. 30, 2016USD ($)	Jun. 30, 2018USD ($)
JUXTAPID | Illegal Promotion and Violation of Code of Conduct | Brazil
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party					$ 500,000
Payments for legal settlements							$ 500,000
Suspension of membership period (in days)					180 days
Loss contingency recognized in period								$ 0
Qui Tam Litigation
Loss Contingencies [Line Items]
Loss contingency, number of plaintiffs | plaintiff	2
Aegerion | SEC litigation | JUXTAPID
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party			$ 4,100,000
Litigation settlement, payable period (in years)			3 years
Litigation settlement, interest rate over unpaid balance percentage			1.75%
Current liability								1,000,000
Non-current liability								1,200,000
Aegerion | DOJ Plea Agreement
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party		$ 7,200,000
Litigation settlement, payable period (in years)		3 years
Litigation settlement, interest rate over unpaid balance percentage		1.75%
Current liability								2,300,000
Non-current liability								3,200,000
Litigation settlement, probation period (in years)		3 years
Loss contingency, number of misdemeanors | claim			2
Aegerion | DOJ Plea Agreement | JUXTAPID
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party				$ 28,800,000
Litigation settlement, payable period (in years)				3 years
Current liability								5,400,000
Non-current liability								$ 21,600,000
Aegerion | DOJ Plea Agreement | JUXTAPID | Medicaid Expenses
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party				$ 2,700,000
Aegerion | State Settlement Agreement | Medicaid Expenses
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party				2,700,000
Aegerion | State Settlement Agreement | JUXTAPID
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party				$ 28,800,000
Former Executive Officer | Qui Tam Litigation
Loss Contingencies [Line Items]
Loss contingency, number of plaintiffs | plaintiff						2