COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2013

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

8.  COMMITMENTS AND CONTINGENCIES

The Company maintains several contracts with suppliers, contract manufacturers, research organizations, clinical organizations, drug labelers and distributors and clinical sites, primarily to assist with clinical research and clinical and commercial manufacturing and distribution of PROCYSBI and clinical manufacturing of drug product for the Company's HD and NAFLD clinical collaborations. With the exception of the items listed below and updates as noted under Note 4 – Notes Payable and Debt Issuance Costs, the Company's contractual obligations did not change significantly during the quarter ended June 30, 2013 compared to those discussed in the Company's Transition Report on Form 10-KT for the four month period ended December 31, 2012, filed with the SEC on March 14, 2013, as amended by Form 10-KT/A filed with the SEC on June 19, 2013.

On April 25, 2013, the Company executed a seven year lease for facilities in Novato, California which it moved into at the end of June 2013 to accommodate personnel growth. The Company will make lease payments of $19,460 per month under this new lease which commences in June 2013 through May 2014. On June 10, 2013, the Company amended the lease to add space to accommodate its research laboratory. The Company will make additional lease payments of $1,870 per month under this amendment which also commences in June 2013 through May 2014. The Company will move to an adjacent facility which becomes available in 2014. Rental expense for the larger adjacent facility will be higher than the current interim facility.

On April 3, 2013, the Company executed two contracts with Accredo to provide the Company exclusive distribution and specialty pharmacy services for PROCYSBI to cystinosis patients in the U.S. Accredo receives a distributor fee for warehousing and distribution of PROCYSBI along with a rebate for pharmacy services based upon customary terms.