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Document And Entity Information - USD ($)	12 Months Ended
Dec. 31, 2012	Mar. 15, 2013
Entity Registrant Name	INTERCEPT PHARMACEUTICALS INC
Entity Central Index Key	0001270073
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	icpt
Entity Common Stock, Shares Outstanding		16,614,165
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2012
Entity Well-Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float		$ 232,642,790

Consolidated Balance Sheets - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Assets
Cash and cash equivalents	$ 45,511,641	$ 17,707,476
Investment securities, available-for-sale	64,682,270	0
Prepaid expenses and other current assets	1,584,308	1,196,618
Total current assets	111,778,219	18,904,094
Fixed assets, net	148,838	311,366
Security deposits	251,540	254,869
Total assets	112,178,597	19,470,329
Liabilities and Stockholders' Equity (Deficit)
Accounts payable, accrued expenses and other liabilities	3,745,773	1,504,198
Short-term portion of warrant liability	7,596,659	0
Short-term portion of deferred revenue	1,621,622	2,446,107
Short-term portion of capital leases	0	81,762
Total current liabilities	12,964,054	4,032,067
Long-term liabilities:
Long-term portion of deferred revenue	10,540,543	12,162,163
Long-term portion of warrant liability	22,762,135	5,835,877
Total liabilities	46,266,732	22,030,107
Stockholders' equity (deficit):
Common stock. Authorized 65,000,000 shares and issued and outstanding 3,329,666 shares as of December 31, 2011; 25,000,000 shares authorized and 16,526,885, shares issued and outstanding as of December 31, 2012; par value $0.001 per share	16,527	3,330
Additional paid-in capital	184,100,139	72,133,893
Accumulated other comprehensive loss, net	(21,451)	(184,500)
Accumulated deficit during development stage	(118,183,350)	(74,540,279)
Total stockholders' equity (deficit)	65,911,865	(2,559,778)
Total liabilities and stockholders' equity (deficit)	112,178,597	19,470,329
Series A Preferred Stock [Member]
Stockholders' equity (deficit):
Preferred stock	0	13,889
Total stockholders' equity (deficit)	0	13,889
Series B Preferred Stock [Member]
Stockholders' equity (deficit):
Preferred stock	0	13,889
Total stockholders' equity (deficit)	$ 0	$ 13,889

Consolidated Balance Sheets [Parenthetical] - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	25,000,000	65,000,000
Common stock, issued	16,526,885	3,329,666
Common stock, outstanding	16,526,885	3,329,666
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	0	13,888,889
Preferred stock, issued	0	13,888,889
Preferred stock, outstanding	0	13,888,889
Preferred stock, liquidation preference per share (in dollars per share)		$ 1.80
Accumulated preferred stock dividend (in dollars)		$ 5,412,329
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	0	13,888,889
Preferred stock, issued	0	13,888,889
Preferred stock, outstanding	0	13,888,889
Preferred stock, liquidation preference per share (in dollars per share)		$ 1.80
Accumulated preferred stock dividend (in dollars)		$ 2,901,370

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	12 Months Ended			124 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012
Licensing revenue	$ 2,446,105	$ 1,805,130	$ 0	$ 4,251,235
Costs and expenses:
Research and development	16,182,564	11,426,155	12,709,590	71,434,691
General and administrative	5,177,129	4,209,429	3,643,623	29,598,082
Total costs and expenses	21,359,693	15,635,584	16,353,213	101,032,773
Other income (expense):
Revaluation of warrants	(24,625,598)	1,044,826	672,477	(23,075,576)
Foreign currency loss on liquidation	(191,733)	0	0	(191,733)
Other income, net	87,848	47,974	104,554	1,376,538
QTDP Grant	0	0	488,959	488,959
Total Other income (expense)	(24,729,483)	1,092,800	1,265,990	(21,401,812)
Net loss	(43,643,071)	(12,737,654)	(15,087,223)	(118,183,350)
Dividends on preferred stock, not declared	(2,630,435)	(3,000,000)	(2,901,370)	(10,944,134)
Net loss attributable to common stockholders	$ (46,273,506)	$ (15,737,654)	$ (17,988,593)	(129,127,484)
Net loss per share, basic and diluted (in dollars per share)	$ (7.36)	$ (4.73)	$ (5.40)
Weighted average shares outstanding, basic and diluted (in shares)	6,283,238	3,329,666	3,329,666
Other comprehensive gain/(loss):
Unrealized (loss) on investment securities	$ (21,451)			(21,451)
Foreign currency translation adjustments	184,500	$ (6,345)	$ (100,035)	0
Total comprehensive loss	$ (43,480,022)	$ (12,743,999)	$ (15,187,258)	$ (118,204,801)

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Series A Preferred Stock [Member]	Series B Preferred Stock [Member]	Series C Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Sep. 03, 2002	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Balance (in shares) at Sep. 03, 2002	0	0	0	0
Initial capitalization (founders) - September 10, 2002	$ 0	$ 0	$ 0	$ 949	26,468	0	0	27,417
Initial capitalization (founders) - September 10, 2002 (in shares)	0	0	0	949,035
Subscription - November 1, 2002	$ 0	$ 0	$ 0	$ 61	1,689	0	0	1,750
Subscription - November 1, 2002 (in shares)	0	0	0	60,576
Subscription - October 1, 2003	$ 0	$ 0	$ 0	$ 112	3,138	0	0	3,250
Subscription - October 1, 2003 (in shares)	0	0	0	112,498
Repurchase of founders shares - October 27, 2003	$ 0	$ 0	$ 0	$ (551)	(15,366)	0	0	(15,917)
Repurchase of founders shares - October 27, 2003 (in shares)	0	0	0	(550,960)
Private placement - from October 27, 2003 through May 5, 2004	$ 0	$ 0	$ 0	$ 392	2,832,088	0	0	2,832,480
Private placement - from October 27, 2003 through May 5, 2004 (in shares)	0	0	0	392,163
Private placement - November 8, 2005	$ 0	$ 0	$ 0	$ 52	374,948	0	0	375,000
Private placement - November 8, 2005 (in shares)	0	0	0	51,922
Private placement - May 8, 2006	$ 0	$ 0	$ 0	$ 2,087	20,497,913	0	0	20,500,000
Private placement - May 8, 2006 (in shares)	0	0	0	2,087,091
Conversion of promissory notes - May 8, 2006	$ 0	$ 0	$ 0	$ 161	1,341,088	0	0	1,341,249
Conversion of promissory notes - May 8, 2006 (in shares)	0	0	0	160,637
Commissions, legal, and other costs for private placement	$ 0	$ 0	$ 0	$ 0	(1,500,138)	0	0	(1,500,138)
Stock-based compensation:
Directors and employees	0	0	0	0	604,372	0	0	604,372
Consultants	0	0	0	0	494,685	0	0	494,685
Exercise of stock options	$ 0	$ 0	$ 0	$ 6	17,699	0	0	17,705
Exercise of stock options (in shares)	0	0	0	6,129
Exercise of warrants	$ 0	$ 0	$ 0	$ 52	374,948	0	0	375,000
Exercise of warrants (in shares)	0	0	0	51,922
Other comprehensive Income (loss)	$ 0	$ 0	$ 0	$ 0	0	0	84,978	84,978
Net loss	0	0	0	0	0	(18,656,010)	0	(18,656,010)
Balance at Dec. 31, 2007	$ 0	$ 0	$ 0	$ 3,321	25,053,532	(18,656,010)	84,978	6,485,821
Balance (in shares) at Dec. 31, 2007	0	0	0	3,321,013
Balance at Sep. 03, 2002	$ 0	$ 0	$ 0	$ 0	0	0	0	0
Balance (in shares) at Sep. 03, 2002	0	0	0	0
Conversion of promissory notes - May 8, 2006								1,341,249
Stock-based compensation:
Cumulative effect of accounting adjustment								0
Other comprehensive Income (loss)								(118,204,801)
Net loss								(118,183,350)
Balance at Dec. 31, 2012	$ 0	$ 0	$ 0	$ 16,527	184,100,139	(118,183,350)	(21,451)	65,911,865
Balance (in shares) at Dec. 31, 2012	0	0	0	16,526,885
Balance at Dec. 31, 2007	$ 0	$ 0	$ 0	$ 3,321	25,053,532	(18,656,010)	84,978	6,485,821
Balance (in shares) at Dec. 31, 2007	0	0	0	3,321,013
Private placement May 23, 2008	$ 13,889	$ 0	$ 0	$ 0	24,986,111	0	0	25,000,000
Private placement May 23, 2008 (in shares)	13,888,889
Commissions, legal, and other costs for private placement	$ 0	0	0	0	(749,075)	0	0	(749,075)
Stock-based compensation:
Directors and employees	0	0	0	0	682,025	0	0	682,025
Consultants	0	0	0	0	127,359	0	0	127,359
Other comprehensive Income (loss)	0	0	0	0	0	0	(155,784)	(155,784)
Net loss	0	0	0	0	0	(13,704,870)	0	(13,704,870)
Balance at Dec. 31, 2008	$ 13,889	$ 0	$ 0	$ 3,321	50,099,952	(32,360,880)	(70,806)	17,685,476
Balance (in shares) at Dec. 31, 2008	13,888,889	0	0	3,321,013
Stock-based compensation:
Directors and employees	$ 0	$ 0	$ 0	$ 0	908,375	0	0	908,375
Consultants	0	0	0	0	53,425	0	0	53,425
Exercise of stock options	$ 0	$ 0	$ 0	$ 9	24,991	0	0	25,000
Exercise of stock options (in shares)	0	0	0	8,653
Cumulative effect of accounting adjustment	$ 0	$ 0	$ 0	$ 0	(2,187,680)	0	0	(2,187,680)
Other comprehensive Income (loss)	0	0	0	0	0	0	(7,314)	(7,314)
Net loss	0	0	0	0	0	(14,354,522)	0	(14,354,522)
Balance at Dec. 31, 2009	$ 13,889	$ 0	$ 0	$ 3,330	48,899,063	(46,715,402)	(78,120)	2,122,760
Balance (in shares) at Dec. 31, 2009	13,888,889	0	0	3,329,666
Commissions, legal, and other costs for private placement	$ 0	$ 0	$ 0	$ 0	(111,704)	0	0	(111,704)
Stock-based compensation:
Directors and employees	0	0	0	0	1,604,117	0	0	1,604,117
Consultants	0	0	0	0	88,768	0	0	88,768
Private placement January 20, 2010	$ 0	$ 13,889	$ 0	$ 0	19,787,894	0	0	19,801,783
Private placement January 20, 2010 (in shares)	0	13,888,889	0	0
Other comprehensive Income (loss)	$ 0	$ 0	$ 0	$ 0	0	0	(100,035)	(100,035)
Net loss	0	0	0	0	0	(15,087,223)	0	(15,087,223)
Balance at Dec. 31, 2010	$ 13,889	$ 13,889	$ 0	$ 3,330	70,268,138	(61,802,625)	(178,155)	8,318,466
Balance (in shares) at Dec. 31, 2010	13,888,889	13,888,889	0	3,329,666
Stock-based compensation:
Directors and employees	$ 0	$ 0	$ 0	$ 0	1,779,785	0	0	1,779,785
Consultants	0	0	0	0	85,970	0	0	85,970
Other comprehensive Income (loss)	0	0	0	0	0	0	(6,345)	(6,345)
Net loss	0	0	0	0	0	(12,737,654)	0	(12,737,654)
Balance at Dec. 31, 2011	$ 13,889	$ 13,889	$ 0	$ 3,330	72,133,893	(74,540,279)	(184,500)	(2,559,778)
Balance (in shares) at Dec. 31, 2011	13,888,889	13,888,889	0	3,329,666
Stock-based compensation:
Directors and employees	$ 0	$ 0	$ 0	$ 0	2,436,430	0	0	2,436,430
Consultants	0	0	0	0	912,559	0	0	912,559
Private placement - August 9, 2012	$ 0	$ 0	$ 15,000	$ 0	29,715,000	0	0	29,730,000
Private placement - August 9, 2012 (in shares)	0	0	15,000,000	0
Preferred shares converted to common stock	$ (13,889)	$ (13,889)	$ (15,000)	$ 7,404	35,374	0	0	0
Preferred shares converted to common stock (in shares)	(13,888,889)	(13,888,889)	(15,000,000)	7,403,817
Issuance of common stock from initial public offering, net of underwriting fees and issuance costs	$ 0	$ 0	$ 0	$ 5,750	78,764,246	0	0	78,769,996
Issuance of common stock from initial public offering, net of underwriting fees and issuance costs (in shares)	0	0	0	5,750,000
Warrants converted to common stock	$ 0	$ 0	$ 0	$ 43	1,018,172	0	0	1,018,215
Warrants converted to common stock (in shares)	0	0	0	43,402
Reclassification of warrants from equity to liabilities	$ 0	$ 0	$ 0	$ 0	(915,535)	0	0	(915,535)
Other comprehensive Income (loss)	0	0	0	0	0	0	163,049	163,049
Net loss	0	0	0	0	0	(43,643,071)	0	(43,643,071)
Balance at Dec. 31, 2012	$ 0	$ 0	$ 0	$ 16,527	$ 184,100,139	$ (118,183,350)	$ (21,451)	$ 65,911,865
Balance (in shares) at Dec. 31, 2012	0	0	0	16,526,885

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended			124 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012
Cash flows from operating activities:
Net loss	$ (43,643,071)	$ (12,737,654)	$ (15,087,223)	$ (118,183,350)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Impairment of bonds	0	0	0	151,402
Loss from sale of assets	0	217,296	0	217,296
Depreciation	201,323	410,601	479,500	2,366,669
Foreign currency loss on liquidation	191,733	0	0	191,733
Stock-based compensation	3,348,989	1,865,755	1,692,885	9,777,870
Amortization of investment premium	118,180	0	0	118,180
Revaluation of warrants	24,625,598	(1,044,826)	(672,476)	23,075,576
Changes in:
Prepaid expenses and other current assets	(387,690)	(630,422)	53,467	(1,359,620)
Accounts payable, accrued expenses, and other current liabilities	2,241,575	(83,234)	(123,976)	3,745,777
Deferred revenue	(2,446,105)	14,608,270	0	12,162,165
Interest accrued on promissory notes	0	0	0	91,249
Net cash (used in) provided by operating activities	(15,749,468)	2,605,786	(13,657,823)	(67,645,053)
Cash flows from investing activities:
Redemptions of (investments in) certificates of deposit	3,328	(3,227)	86,922	(627,631)
Purchases of investment securities	(65,940,976)	0	0	(65,940,976)
Sales of investment securities	1,119,075	0	0	1,119,075
Purchases of equipment, improvements, and furniture and fixtures	(38,795)	(62,817)	(29,063)	(1,397,238)
Net cash provided by (used in) investing activities	(64,857,368)	(66,044)	57,859	(66,846,770)
Cash flows from financing activities:
Proceeds from issuance of stock offerings, net of issuance costs	108,499,996	0	19,690,079	172,477,162
Proceeds from issuance of common stock warrants	0	0	5,198,217	7,385,897
Payments of capital lease obligation	(81,762)	(249,667)	(270,206)	(1,335,567)
Proceeds from exercise of options	0	0	0	42,705
Proceeds from exercise of warrants	0	0	0	375,000
Proceeds from issuance of convertible promissory notes payable	0	0	0	1,250,000
Net cash provided by (used in) financing activities	108,418,234	(249,667)	24,618,090	180,195,197
Effect of exchange rate changes	(7,233)	(6,345)	(29,099)	(191,733)
Net increase (decrease) in cash and cash equivalents	27,804,165	2,283,730	10,989,027	45,511,641
Cash and cash equivalents - beginning of period	17,707,476	15,423,746	4,434,719	0
Cash and cash equivalents - end of period	45,511,641	17,707,476	15,423,746	45,511,641
Supplemental disclosure of cash flow information:
Cash paid during the year for interest	4,234	13,478	25,108	181,980
Supplemental disclosures of noncash activities:
Conversion of promissory note payable, including accrued interest of $91,250 into common shares	0	0	0	1,341,249
Issuance of 108,169 warrants for private placement agent fees	0	0	0	1,471,485
Acquisition of equipment pursuant to capital leases	0	0	0	1,335,567
Issuance of common stock for cashless warrant exchange	$ 1,018,215	$ 0	$ 0	$ 1,018,215

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

2. Summary of Significant Accounting Policies

A. Basis of Presentation and Use of Estimates

The Company’s financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The ability of the Company to become profitable depends on several factors, many of which are outside the Company’s control. Such factors include the ability to obtain regulatory approval of product candidates and the ability to successfully commercialize any approved product candidate. The Company’s lead product candidate, OCA, has completed three Phase 2 clinical trials and is currently being tested in three additional clinical trials. Therefore, the Company’s product candidates still require significant research and development efforts. The extent to which the Company will be able to continue its research and development efforts will also partially be determined by factors outside the Company’s control, such as the nature and extent of testing that will be required by the U.S. Food and Drug Administration (FDA) and equivalent agencies outside of the United States.

B. Segments

The Company operates in one segment. The Company is a biopharmaceutical company focused on discovering, developing and commercializing treatments for chronic liver diseases utilizing its proprietary bile acid chemistry.

C. Principles of Consolidation

The consolidated financial statements include the accounts of Intercept and its subsidiary, Intercept Italia S.R.L. All intercompany balances and transactions have been eliminated in consolidation.

D. Reclassification

Certain amounts shown in prior years’ consolidated financial statements have been reclassified to conform to the current year consolidated financial statement presentation.

E. Cash and Cash Equivalents

The Company considers all highly liquid securities with a maturity of three months or less at acquisition to be cash equivalents.

F. Investment Securities

Investment securities are considered to be available-for-sale and are carried at fair value. Unrealized gains and losses, if any, are reported as a separate component of stockholders’ equity. The cost of investment securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in interest income. Realized gains and losses, if any, are also included in other income, net. The cost of securities sold is based on the specific identification method.

G. Concentration of Credit Risk

Financial instruments, which potentially subject the Company to concentrations of credit risk, principally consist of cash, cash equivalents, and investment securities. The Company currently invests its excess cash primarily in a money market fund, U.S. Treasury notes, and high quality, marketable debt instruments of corporations, financial institutions and government sponsored enterprises. The Company has adopted an investment policy that includes guidelines relative to credit quality, diversification and maturities to preserve principal and liquidity. The Company does not have any direct investments in auction-rate securities or securities that are collateralized by assets that include mortgages or subprime debt.

H. Fixed Assets

Fixed assets are recorded at cost, net of depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of three to seven years for equipment and seven years for furniture and fixtures. Leasehold improvements are amortized over the shorter of the asset’s useful life or the life of the lease term. Expenditures for maintenance and repairs are charged to expense as incurred.

I. Impairment of Long-Lived Assets

Long-lived assets consist of fixed assets. The Company evaluates long-lived assets for impairment when events and circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable.

J. Revenue Recognition

All of the Company’s revenue during the periods covered by these financial statements has been derived from its research and development and licensing collaborations. These agreements include non-refundable up-front fees and the potential for research, development, regulatory and commercial milestone fees, as well as royalties on sales of licensed products, if and when such product sales occur. To date, the Company has received only up-front fees from its collaborations.

The Company evaluates all deliverables within an arrangement to determine whether they provide value on a stand-alone basis. Based on this evaluation, the deliverables are separated into units of accounting. The arrangement consideration that is fixed and determinable at the inception of the arrangement is allocated to the separate units of accounting based on relative fair value. The Company may exercise significant judgment in determining whether a deliverable is a separate unit of accounting, as well as in estimating the selling prices of such units of accounting. For each unit of accounting identified within an arrangement, the Company determines the period over which the performance obligation occurs and recognizes the revenue using a straight-line method.

The Company accounts for the development, regulatory and sales milestones within an arrangement in accordance with the milestone method of revenue recognition. This method allows for the recognition of consideration which is contingent on the achievement of a substantive milestone in its entirety in the period the milestone is achieved. Each future milestone is considered substantive if it (i) relates solely to the past performance of the intellectual property to achieve the milestone; (ii) is reasonable relative to all of the deliverables and payment terms in the arrangement; and (iii) is commensurate with either the Company’s performance or the enhanced value of the intellectual property as a result of a specific outcome resulting from the Company’s performance.

K. Research and Development

Research and development costs that do not have alternative future use are charged to expense as incurred. This includes the cost of conducting clinical trials, compensation and related overhead for employees and consultants involved in research and development and the cost of materials purchased for research and development.

L. Stock-Based Compensation

In 2003, the Board of Directors and the stockholders of the Company approved the Amended and Restated 2003 Stock Incentive Plan (2003 Plan) which provided for the granting of restricted stock, stock options and other stock-related awards to officers, directors, employees, advisors, and consultants of the Company. Stock options were granted at exercise prices not less than the fair market value of the Company’s common stock at the dates of grant. In May 2006, June 2008 and January 2010, the number of common shares available was increased to 519,228, 865,381, and 1,384,610, respectively. Most options are scheduled to vest over a period of up to four years. The 2003 Plan was terminated upon the pricing of the IPO in October 2012, and 555,843 shares available under the 2003 Plan were added to the 2012 Plan. All outstanding options issued under the 2003 Plan as of the date of termination remained outstanding and are subject to their respective terms and the terms of the 2003 Plan.

In September 2012, the Company’s board of directors and stockholders approved the 2012 Equity Incentive Plan (2012 Plan), which became effective upon the pricing of the Company’s IPO in October 2012. The 2012 Plan will expire on September 13, 2022. Under the 2012 Plan, the Company may grant incentive stock options, non-qualified stock options, restricted and unrestricted stock awards and other stock-based awards. As of December 31, 2012, there were 348,690 shares of Company common stock authorized for issuance under the 2012 Plan. On January 1, 2013, 661,075 shares of common stock were added to the 2012 Plan in January 2013 in accordance with its terms.

The Company utilizes the Black-Scholes option-pricing model for determining the estimated fair value of awards. Key inputs and assumptions include the expected term of the option, stock price volatility, risk-free interest rate, dividend yield, stock price and exercise price. Many of the assumptions require significant judgment and any changes could have a material impact in the determination of stock-based compensation expense. The Company estimates forfeitures when recognizing compensation expense and adjusts forfeiture estimates over the vesting period based on actual or anticipated forfeitures.

The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the individual grants, which is generally the vesting period, based on the estimated grant date fair values. Generally, stock options granted to employees fully vest four years from the grant date and have a term of ten years.

M. Warrants to Purchase Common Stock

In conjunction with various financing transactions, the Company issued warrants to purchase the Company’s common stock. Certain of the warrants include a provision that provides for a reduction in the warrant exercise price if there are subsequent issuances of additional shares of common stock for consideration per share less than the per share warrant exercise prices and the remaining warrants contain a provision that require the underlying shares to be registered upon an IPO. These warrants are deemed to be derivative instruments and as such, are recorded as a liability and are marked-to-market at each reporting period using the Black-Scholes option pricing model. The Company estimates the fair values of the warrants at each reporting period using a Black-Scholes option-pricing model that uses the inputs detailed in note 8 and the contractual terms of the warrants. Management has concluded, under the Company’s facts and circumstances, that the estimated fair values of the warrants using the Black-Scholes option-pricing model approximates, in all material respects, the values determined using a binomial valuation model. The estimates in the Black-Scholes option-pricing model and the binomial valuation model are based, in part, on subjective assumptions, including but not limited to stock price volatility, the expected life of the warrants, the risk free interest rate and the fair value of the common stock underlying the warrants, and could differ materially in the future. Changes in the fair value of the common stock warrant liability from the prior period are recorded as a component of other income and expense.

The Company will continue to adjust the fair value of the common stock warrant liability at the end of each reporting period for changes in fair value from the prior period until the earlier of the exercise or expiration of the applicable common stock warrants or until such time that the warrants are no longer determined to be derivative instruments.

N. Income Taxes

The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is established against net deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be resolved. The effect of a change in tax rates or laws on deferred tax assets and deferred tax liabilities is recognized in operations in the period that includes the enactment date of the rate change.

The deferred tax asset or liability represents future tax return consequences of those differences, which will be taxable when the assets and liabilities are recovered or settled. The provision for income taxes may differ from the actual expense that would result from applying the federal statutory rate to income before taxes because certain expenses for financial reporting purposes are not deductible for tax purposes. At December 31, 2011 and 2012, the Company had available net operating loss carryforwards to reduce future taxable income of approximately $55.0 million and $70.2 million, respectively, for tax reporting purposes. These carryforwards expire between 2024 and 2032. The ability of the Company to utilize its net operating losses in future years is subject to limitation in accordance with provisions of Section 382 of the Internal Revenue Code due to previous ownership changes; however, these changes have not resulted in material limitations to the Company’s ability to utilize the net operating losses. The Company’s combined federal, state and city deferred tax asset of approximately $26.6 million, $32.1 million, and $42.1 million at December 31, 2010, 2011 and 2012, respectively, resulted from the tax effects of net operating losses and differences between the book and tax bases for the share-based compensation and depreciation. The Company does not have any material deferred tax liabilities. Management has determined it is uncertain whether any of the deferred tax assets will be realizable, and has provided an allowance for the full amount of the tax asset. As a result, the Company has not recorded any income tax benefit since its inception.

O. Net Loss per Share

Basic net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Net loss attributable to common stockholders is net loss reduced by accrued dividends on preferred shares for the periods the preferred shares were outstanding. Diluted net loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. For purposes of the diluted net loss per share calculation, preferred stock, stock options and warrants are considered to be common stock equivalents but are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive and, therefore, basic and diluted net loss per share were the same for all periods presented.

P. Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board, or the FASB, issued ASU No. 2013-02, “Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” or ASU No. 2013-02. ASU No. 2013-02 supersedes the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 and 2011-12 and requires an entity to provide additional information about reclassifications out of accumulated other comprehensive income. ASU No. 2013-02 became effective for us beginning January 1, 2013. The adoption of this amendment will not have a material impact on the Company’s results of operations or financial position.

Significant Agreements

12 Months Ended

Dec. 31, 2012

Significant Agreements Disclosure [Abstract]

Significant Agreements Disclosure [Text Block]

3. Significant Agreements

Dainippon Sumitomo Pharma Co., Ltd. (DSP)

In March 2011, the Company entered into an exclusive license agreement with DSP to research, develop and commercialize obeticholic acid (OCA) as a therapeutic for the treatment of primary biliary cirrhosis (PBC) and nonalcoholic steatohepatitis (NASH) in Japan and China (excluding Taiwan). Under the terms of the license agreement, the Company received an up-front payment from DSP of $15.0 million and may be eligible to receive additional milestone payments up to an aggregate of approximately $30.0 million in development milestones based on the initiation or completion of clinical trials, $70.0 million in regulatory approval milestones and $200.0 million in sales milestones. The regulatory approval milestones include $15.0 million for receiving marketing approval for OCA for NASH in Japan, $10.0 million for receiving marketing approval for OCA for NASH in China, and up to $5.0 million for receiving marketing approval for OCA for PBC in the United States. The sales milestones are based on aggregate sales amounts of OCA and include $5.0 million for achieving net sales of $50.0 million, $10.0 million for achieving net sales of $100.0 million, $20.0 million for achieving net sales of $200.0 million, $40.0 million for achieving net sales of $400.0 million and $120.0 million for achieving net sales of $1.2 billion. DSP is also required to make royalty payments ranging from the tens to the twenties in percent based on net sales of OCA products in the DSP territory. DSP has the exclusive option to add several other Asian countries to its territory, including Korea and Taiwan, and to pursue OCA for additional indications. DSP will be responsible for the costs of developing and commercializing OCA in its territory.

The Company has evaluated the license agreement with DSP and has determined that it is a revenue arrangement with multiple deliverables, or performance obligations. The Company’s substantive performance obligations under this license include an exclusive license to its technology, technical and scientific support to the development plan and participation on a joint steering committee. The Company determined that these performance obligations represent a single unit of accounting, since, initially, the license does not have stand-alone value to DSP without the Company’s technical expertise and steering committee participation during the development of OCA. This development period is currently estimated as continuing through June 2020 and, as such, the up-front payment is being recognized ratably over this period. During the year ended December 31, 2011 and 2012, the Company recorded revenue of $1.2 million and $1.6 million, respectively, in “License Fees” in its Consolidated Statement of Operations for the Company’s efforts under the agreement. During 2012, the Company did not achieve any of the milestones relating to the agreement and did not recognize any revenue related to such milestones. The Company has determined that each potential future development, regulatory and sales milestone is substantive.

Les Laboratories Servier and Institut de Recherches Servier (Servier)

In August 2011, the Company entered into a research collaboration agreement with Servier under which the Company granted Servier the exclusive license to research, develop and commercialize TGR5 agonists (other than the Company’s preclinical product candidates INT-767 and INT-777) for use in the treatment of diabetes, obesity, atherosclerosis and reperfusion injury in all countries other than the United States and Japan. The agreement expires when no payment obligations are or will become due and may be terminated earlier by the parties in certain circumstances.

Under the terms of the agreement, the Company received an up-front payment from Servier of $1.4 million. The Company is also eligible to receive up to an aggregate of approximately €8.5 million in development milestones based on the initiation of clinical trials by Servier or the selection by Servier of product candidates for development, including a payment of €4.0 million upon the determination by Servier to initiate a Phase 3 clinical trial for the first product candidate under the agreement. The Company may also receive up to an aggregate of approximately €10.0 million in regulatory submission and approval milestones, including a payment of €5.0 million upon the first product candidate under the agreement achieving regulatory approval in the EU for its initial indication. The agreement also contemplates up to an aggregate of approximately €90.0 million in sales milestones, including a payment of €10.0 million upon the first product candidate under the agreement achieving its first commercial sale, €10.0 million upon achieving net sales of €200.0 million for a product, €20.0 million upon achieving net sales of €400.0 million for a product, €25.0 million for achieving net sales of €500.0 million for a product and €25.0 million for achieving net sales of €600.0 million for a product. Servier is also obligated to pay the Company royalties based on net sales of products developed under the agreement on a country-by-country basis. Servier is also obligated to pay the Company royalties based on net sales of products developed under the agreement on a country-by-country basis.

Intercept and Servier will jointly support the discovery effort, while Servier alone will be responsible for all costs associated with the global development, regulatory approval and commercialization of any compound selected as a lead candidate by the parties. The Company agreed to reimburse Servier up to a mid-double digit percentage of the total historical development costs incurred by Servier in relation to clinical development activities aimed at achieving regulatory approval in the European Union and the United States if the Company enters into a partnership agreement, or commences development or commercialization activities, with respect to any such compound in the United States. Servier may credit a portion of any reimbursable development costs against any milestone or royalty payments due and payable to the Company by Servier under the research collaboration agreement until all such reimbursable amounts are repaid. During the year ended December 31, 2011 and 2012, the Company did not reimburse any development costs to Servier.

The Company has evaluated the research collaboration agreement with Servier and has determined that it is a revenue arrangement with multiple deliverables, or performance obligations. The Company’s substantive performance obligations under this research collaboration include an exclusive license to its technology, technical, scientific and intellectual property support to the research plan during the first year of the agreement and participation on an executive committee and a research and development committee. The Company determined that these performance obligations represent a single unit of accounting, since the license does not have stand-alone value to Servier without the Company’s technical expertise and committee participation during the initial 12-month period. The research portion of the collaboration may be extended by mutual agreement by the parties for one or more additional years. In July 2012, the term of the research program was extended until January 31, 2013, on the same financial terms as the existing research program, including the reimbursement by Servier of the full time equivalent costs incurred by the Company in the conduct of the research program, up to a set maximum amount. In February 2013, the research program was further extended until July 31, 2013 on the same financial terms as the existing agreement. The up-front payment is being recognized ratably over the estimated 12-month performance period as the research and development and executive committee services are being provided. During the year ended December 31, 2011 and 2012, the Company recorded revenue of $589,000 and $824,000, respectively related to the Company’s efforts under the Servier arrangement, which was recorded in “License Fees” in the Company’s Consolidated Statement of Operations. The Company has determined that each potential future development, regulatory and sales milestone is substantive.

The Company is also receiving reimbursement from Servier for research services outlined in the agreements in which the Company engaged Professor Pellicciari and TES as described below. The Company is recognizing this expense reimbursement as a reduction of research and development expenses as the Company is acting as an agent regarding these research activities. All amounts incurred by the Company for research under the Servier agreement during the year ended December 31, 2011 and 2012, including the amounts incurred under the related agreements with Professor Pellicciari and TES, were covered under the Servier agreement. At December 31, 2011 and 2012, the Company has recorded $486,000 and $496,000, respectively in prepaid expenses and other assets for amounts due from Servier for such expense reimbursement.

Consulting Agreements with Professor Pellicciari

The Company entered into an amended and restated consulting and intellectual property agreement with Professor Pellicciari on November 1, 2008, which was amended on October 27, 2010. Pursuant to this agreement, as amended, the Company was required to pay Professor Pellicciari €8,000 per month through December 31, 2010 for consulting services. The agreement also required the Company to make a lump sum payment of €172,500 and monthly payments of €12,000 through December 31, 2010 for the assignment of certain intellectual property rights. On January 1, 2011, the Company entered into an amended and restated consulting and intellectual property agreement with Professor Pellicciari, pursuant to which the Company agreed to pay Professor Pellicciari an aggregate of €100,000 for services to be provided through December 31, 2011 for consulting services and intellectual property rights in relation to OCA, INT-767 and INT-777 product candidates. As the agreement expired on December 31, 2012, the Company is currently negotiating the terms of a new agreement.

On August 1, 2011, the Company signed a separate agreement with Professor Pellicciari for consulting services and intellectual property rights related to his services on the TGR5 program and the Servier license, pursuant to which the Company agreed to pay him an aggregate of €150,000 for his services through July 31, 2012. This agreement also provides that Professor Pellicciari will be eligible for a performance bonus of €50,000 based on the results of the research collaboration. The performance bonus is a discretionary bonus based upon the Company’s assessment of the success of the initial work performed under the collaboration, as extended. No such bonus has been agreed upon by the parties as of December 31, 2012. In July 2012 and February 2013, by mutual agreement of the parties, the term of this agreement was extended until January 31, 2013 and July 31, 2013, respectively, in conjunction with the extension of the term of the research program with Servier, on the same financial terms as the original consulting agreement with Professor Pellicciari.

The Company has recognized expense related to these agreements for the years ended December 31, 2010, 2011 and 2012 $318,000, $266,000 and $325,000, respectively.

TES Pharma SRL (TES)

In August 2011, the Company contracted with TES to provide research and development services for the Company’s TGR5 program through July 31, 2012 to enable the Company to uphold its obligations for providing such services under the Servier agreement described above. Professor Pellicciari is an owner of TES. The Company is required under the agreement to pay TES an aggregate amount of €250,000 each quarter during the term of the agreement. The agreement provides that any funds paid to TES that have not been expended or irrevocably committed at the expiration of the agreement will be refunded to the Company.

The agreement has a term of one year unless the Company, in its sole discretion, extends the term of this agreement for one additional year on the same terms and conditions as the current agreement. In July 2012 and February 2013, by mutual agreement of the parties, the term of this agreement was extended until January 31, 2013 and July 31, 2013, respectively, in conjunction with the extension of the term of the research program with Servier, on the same financial terms as the original agreement with TES.

The Company has incurred charges related to this agreement for the year ended December 31, 2011 and 2012 of $596,000 and $1.3 million respectively.

National Institute of Diabetes and Digestive and Kidney Disease Institute (NIDDK)

In 2010, the Company contracted with the NIDDK of the National Institute of Health to research the effects of OCA for the treatment of patients with nonalcoholic steatohepatitis in a Phase 2b clinical trial called the FLINT trial. Under the contract with the NIDDK, the Company made a milestone payment of $1.0 million in June 2012 following notification in June 2012 that the FLINT trial will continue based upon the results of a blinded interim analysis. The Company has recognized expense related to this contract for the years ended December 31, 2010, 2011 and 2012 of $500,000, $250,000 and $2.3 million, respectively and does not have any additional contractual payments remaining.

WIL Research Laboratories, LLC (WIL)

On October 2, 2007, the Company entered into a master laboratory services agreement with WIL Research Laboratories, LLC to perform certain research and laboratory services. The agreement was amended in October 2011. The agreement has a term ending on October 2, 2013, which automatically extends for successive one year periods, unless either party gives written notice to the other party at least 60 days prior to the end of the current term. Either the Company or WIL may terminate the agreement upon 90 days written notice. However, if a work order pertaining to the ongoing studies is outstanding, WIL may not terminate the agreement with 90 days written notice until the work order has been completed or otherwise terminated.

On November 16, 2011, the Company finalized two work orders with WIL for FDA-required studies in mice and rats to investigate the presence or absence of carcinogenic potential of OCA. The Company has agreed to pay an aggregate of $4.0 million for the studies, consisting of a combination of quarterly installment payments of approximately $300,000 and milestone payments totaling approximately $400,000 upon delivery of final result reports. If additional costs are incurred beyond the amounts specified in the work orders, the Company has agreed to pay such reasonable additional costs upon receipt of proper invoice. The Company anticipates that all the studies will continue through completion, all milestones will be satisfied and that it will pay to WIL an aggregate of $4.0 million under this agreement. The Company has recognized expense related to these contracts and other work orders for the years ended December 31, 2010, 2011 and 2012 of $1.6 million, $1.5 million and $1.6 million respectively.

Fair Value Measurements

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

9. Fair Value Measurements

The carrying amounts of the Company’s receivables and payables approximate their fair value due to their short maturities.

Accounting principles provide guidance for using fair value to measure assets and liabilities. The guidance includes a three level hierarchy of valuation techniques used to measure fair value, defined as follows:

•

Unadjusted Quoted Prices — The fair value of an asset or liability is based on unadjusted quoted prices in active markets for identical assets or liabilities (Level 1).

•

Pricing Models with Significant Observable Inputs — The fair value of an asset or liability is based on information derived from either an active market quoted price, which may require further adjustment based on the attributes of the financial asset or liability being measured, or an inactive market transaction (Level 2).

•

Pricing Models with Significant Unobservable Inputs — The fair value of an asset or liability is primarily based on internally derived assumptions surrounding the timing and amount of expected cash flows for the financial instrument. Therefore, these assumptions are unobservable in either an active or inactive market (Level 3).

The Company considers an active market as one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, the Company views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, non-performance risk, or that of a counterparty, is considered in determining the fair values of liabilities and assets, respectively.

The Company’s cash deposits and money market funds are classified within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. Investments are classified as Level 2 instruments based on market pricing and other observable inputs. None of the Company’s investments are classified within Level 3 of the fair value hierarchy. The Company’s warrant liability has been valued pursuant to the discussion in note 8 above and thus is included in Level 3.

Financial assets and liabilities, carried at fair value are classified in the tables below in one of the three categories described above:


	Total			Fair Value Measurements Using
	Total			Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
				(In thousands)
Description
December 31, 2010
Assets:
Money market funds	$	—		$	—	$	—	$	—
Liabilities:
Warrants to purchase common stock	$	(6,881	)	$	—	$	—	$	(6,881	)
Total liabilities	$	(6,881	)	$	—	$	—	$	(6,881	)
December 31, 2011
Assets:
Money market funds	$	1,375		$	1,375	$	—	$	—
Liabilities:
Warrants to purchase common stock	$	(5,836	)	$	—	$	—	$	(5,836	)
Total liabilities	$	(5,836	)	$	—	$	—	$	(5,836	)
December 31, 2012
Assets:
Money market funds	$	24,862		$	24,862	$	—	$	—
Available for sale securities:
Commercial paper	$	12,966		$	—	$	12,966	$	—
Corporate debt securities		41,850			—		41,850		—
U.S. government and agency securities		9,865			—		9,865		—
Total assets:	$	89,543		$	24,862	$	64,681	$	—
Liabilities:
Warrants to purchase common stock	$	(30,359	)	$	—	$	—	$	(30,359	)
Total liabilities	$	(30,359	)	$	—	$	—	$	(30,359	)

The estimated fair value of marketable debt securities (commercial paper, corporate debt securities and U.S. government and agency securities) as of December 31, 2012, by contractual maturity, are as follows:


	Fair Value
	(In thousands)
Due in one year or less	$	32,079
Due after one year through 2 years		32,602
Total investments in debt securities	$	64,681

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stockholders' Equity and Preferred Stock

12 Months Ended

Dec. 31, 2012

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

10. Stockholders’ Equity and Preferred Stock

Common Stock

In September 2002, the Company issued 949,035 shares of common stock at a price of $0.03 per share to the founders of the Company (Founders’ shares).

In November 2002, the Company issued 60,576 shares of common stock at a price of $0.03 per share to the principal investigators and other researchers of the Company pursuant to an authorization by the Board of Directors to issue and sell these shares by subscription to the named parties in conjunction with the signing of certain research agreements.

In October 2003, the Company issued 112,498 shares of common stock at a price of $0.03 per share to the two principal investigators pursuant to an authorization by the Board of Directors to issue and sell these shares by subscription.

In October 2003, the Company repurchased and canceled 550,960 Founders’ shares from certain founders of the Company at a price of $0.03 per share.

From October 2003 through May 2004, pursuant to a private placement agreement dated October 2003, the Company issued an aggregate of 392,163 shares of common stock at a price of $7.22 per share, receiving net proceeds of $2.4 million after $474,000 in related offering costs. In addition, Class A warrants to purchase 137,251 shares of common stock and Class B warrants to purchase 117,640 shares of common stock were issued to the placement agent and its assigns as additional placement agent commission under the terms of the placement agent agreement.

In November 2005, the Company issued 51,922 shares of common stock, warrants with a two-year term to purchase 51,922 shares of common stock at an exercise price of $7.22 per share and warrants with a five-year term to purchase 86,538 shares of common stock at an exercise price of $7.22 per share, all pursuant to a private subscription agreement with two outside investors, receiving net proceeds of $375,000.

In May 2006, pursuant to a private placement agreement, the Company issued 2,087,091 shares of common stock at a price of $9.82, receiving net proceeds of $19.5 million, after $1.0 million in related offering costs. Also in May 2006, the Company’s 6% convertible promissory notes that were issued in February 2005 with a face amount of $1.3 million, along with $91,000 of accrued interest, were converted into 160,637 shares of common stock at a price of $8.35 per share pursuant to the mandatory conversion terms of the notes.

Dividends

The holders of common stock are entitled to receive dividends from time to time as declared by the Board of Directors. No cash dividend may be declared or paid to common stockholders until paid on each series of outstanding preferred stock in accordance with their respective terms.

Voting

The holders of shares of common stock are entitled to one vote for each share held with respect to all matters voted on by the stockholders of the Company.

Preferred Stock

In May 2008, to effectuate the sale of Series A preferred stock, the Company amended and restated its Certificate of Incorporation in its entirety to increase the number of shares of preferred stock it was authorized to issue to 13,888,889 shares and to designate such shares as Series A preferred stock. In May 2008, 13,888,889 shares of Series A preferred stock were sold to Genextra for net proceeds of $24.3 million, after $749,000 in related offering costs. In connection with this financing, the Company issued warrants with a five-year term to purchase 108,169 shares of common stock at $10.40 per share to the placement agent.

In January 2010, the Company further amended and restated its Certificate of Incorporation in its entirety to increase the number of shares of preferred stock it was authorized to issue to 27,777,778 shares and designated 13,888,889 of such shares as Series B preferred stock. In January 2010, 13,888,889 shares of Series B preferred stock and a warrant with a five-year term to purchase 865,381 shares of common stock at $10.40 per share were sold to Genextra for $24.9 million, after $112,000 in related offering costs.

In August 2012, the Company further amended and restated its Certificate of Incorporation in its entirety to increase the number of shares of preferred stock it was authorized to issue to 52,777,778 shares and designated 25,000,000 of such shares as Series C preferred stock. In August 2012, 15,000,000 shares of Series C preferred stock were sold to Genextra and OrbiMed Advisors LLC for $29.7 million, after $300,000 in related offering costs. Upon the completion of the IPO, all outstanding shares of the Company’s preferred stock were converted into 7,403,817 shares of common stock and all accrued dividends on the preferred stock were eliminated.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

2003 Stock Incentive Plan and 2012 Stock Plan

12 Months Ended

Dec. 31, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

11. 2003 Stock Incentive Plan and 2012 Stock Plan

Upon the pricing of the IPO in October 2012, the 2012 Plan became effective. At the same time, the 2003 Plan was terminated and 555,843 shares available under the 2003 Plan were added to the 2012 Plan. See note 2L.

The estimated fair value of the options that have been granted under the 2003 and 2012 Plans is determined utilizing the Black-Scholes option-pricing model at the date of grant. The fair value of the restricted stock units that have been granted under the 2012 Plan is determined utilizing the closing stock price on the date of grant. There were 60,411 shares available for grant remaining under the 2003 Plan at December 31, 2011 and 348,690 shares available for grant remaining under the 2012 Plan at December 31, 2012.

Stock-based compensation expense for the years ended December 31, 2010, 2011 and 2012 includes compensation expense for employee, director and consultant stock option grants and restricted stock grants as follows:


	Years Ended December 31,
	2010		2011		2012
	(In thousands)
Stock options expense:
Employees and directors	$	1,604	$	1,780	$	2,162
Consultants		89		86		822
		1,693		1,866		2,984
Restricted stock expense:
Employees and directors		—		—		307
Consultants		—		—		58
		—		—		365
Total	$	1,693	$	1,866	$	3,349

Stock Options

The Company estimated the fair value of stock options granted in the periods presented using a Black-Scholes option-pricing model utilizing the following assumptions:


	Years Ended December 31,
	2011			2012
Volatility		107 – 113	%		107 – 115	%
Expected term (in years)		5.0 – 6.0			5.0 – 6.0
Risk-free interest rate		1.1 – 1.4	%		0.7 – 0.8	%
Expected dividend yield		—	%		—	%
Stock price	$	8.67		$	8.67 – $34.24

The common stock price for options granted prior to the IPO was determined based on a valuation of the Company’s common stock. For options granted after the IPO, the stock price is the closing price on the date of grant. The risk free interest rate was based on the rate for U.S. Treasury securities at the date of grant with maturity dates approximately equal to the expected life at the grant date. The expected life for options was based on the simplified method in accordance with SEC Staff Accounting Bulletin Nos. 107 and 110 as the Company does not have sufficient historical exercise data due to the limited period of time the Company’s shares have been publicly traded. The expected volatility was estimated based on historical volatility information of peer companies that are publicly available.

For the years ended December 31, 2010, 2011 and 2012, the Company granted options to employees and directors totaling 428,354, 214,962 and 213,991, respectively, with an aggregate fair market value of $3.1 million, $1.5 million and $3.6 million, respectively. For the years ended December 31, 2010, 2011 and 2012, the Company granted options to consultants in the amount of 27,695, 6,056 and 16,441, respectively with an aggregate fair market value of $200,000, $42,000, and $293,000, respectively.

The Company’s combined outstanding employee and non-employee option activity for the period from December 31, 2009 through December 31, 2012 is summarized as follows:


	Number of Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value (In thousands)
Outstanding at December 31, 2009		674,537		$	9.24	$	380
Granted		456,049		$	8.67		—
Exercised		—			—		—
Cancelled/forfeited		(2,596	)	$	9.82		—
Outstanding at December 31, 2010		1,127,990		$	9.01		380
Granted		221,018		$	8.67		—
Exercised		—			—		—
Cancelled/forfeited		(39,644	)	$	8.72		(30	)
Outstanding at December 31, 2011		1,309,364		$	8.98		350
Granted		230,432		$	20.24		—
Exercised		—			—		—
Cancelled/forfeited		(13,646	)	$	9.26		(63	)
Outstanding at December 31, 2012		1,526,150		$	10.67	$	35,968

The aggregate intrinsic value of options is calculated as the difference between the exercise price of the underlying options and the deemed fair value of the Company’s common stock for those shares that had exercise prices lower than the deemed fair value of the Company’s common stock.

The following table summarizes additional information about stock options outstanding:


December 31, 2010
Options Outstanding							Options Exercisable
Exercise Price	Number of Shares		Weighted- Average Remaining Life		Aggregate Intrinsic Value (In thousands)		Number of Shares		Weighted- Average Remaining Life		Aggregate Intrinsic Value (In thousands)
$2.89		65,766		3.8	$	380		65,766		3.8	$	380
$8.67		456,049		9.6		—		114,003		9.6		—
$9.82		454,739		7.3		—		317,327		6.9		—
$10.11		7,787		6.2		—		7,787		6.2		—
$10.41		143,649		7.1		—		102,144		7.1		—
		1,127,990		8.0	$	380		607,027			$	380
Options exercisable and expected to become exercisable		1,127,990		8.0	$	380


December 31, 2011
Options Outstanding							Options Exercisable
Exercise Price	Number of Shares		Weighted- Average Remaining Life		Aggregate Intrinsic Value (In thousands)		Number of Shares		Weighted- Average Remaining Life		Aggregate Intrinsic Value (In thousands)
$2.89		60,574		2.9	$	350		60,574		2.9	$	350
$8.67		671,442		9.0		—		286,733		8.8		—
$9.82		425,912		6.2		—		375,069		6.1		—
$10.11		7,787		5.2		—		7,787		5.2		—
$10.41		143,649		6.1		—		134,905		6.1		—
		1,309,364		7.5	$	350		865,068			$	350
Options exercisable and expected to become exercisable		1,309,364		7.5	$	350


December 31, 2012
Options Outstanding							Options Exercisable
Exercise Price	Number of Shares		Weighted- Average Remaining Life		Aggregate Intrinsic Value (In thousands)		Number of Shares		Weighted- Average Remaining Life		Aggregate Intrinsic Value (In thousands)
$2.89		60,574		1.9	$	1,899		60,574		1.9	$	1,899
$8.67		668,374		8.0		17,093		456,467		7.9		11,673
$9.30		15,812		9.6		394		6,909		9.6		172
$9.82		423,316		5.2		10,336		413,802		5.2		10,104
$10.11		7,787		4.2		188		7,787		4.2		188
$10.41		143,649		5.1		3,425		143,649		5.1		3,425
$21.50		206,638		9.9		2,633		6,766		9.9		86
		1,526,150		6.9		35,968		1,095,954			$	27,547
Options exercisable and expected to become exercisable		1,526,150		6.9	$	35,968

As of December 31, 2012, $4.3 million of total unrecognized compensation cost related to unvested stock option grants is expected to be recognized over a weighted-average period of 2.15 years.

Restricted Stock Units

The following table summarizes the aggregate restricted stock activity for the year ended December 31, 2012:


	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested Shares at December 31, 2011		—	$	—
Granted		176,188	$	17.82
Exercised		—		—
Cancelled/forfeited		—	$	—
Non-vested Shares at December 31, 2012		176,188	$	17.82

As of December 31, 2012, there was $3.6 million of unrecognized compensation expense related to unvested restricted stock, which is expected to be recognized over a weighted average of 3.75 years.

The following table summarizes additional information about restricted stock units outstanding:


	Number of Shares		Issue Price		Intrinsic Value (In thousands)
Employees and directors		158,016	$	21.50	$	5,410
Consultants		18,172	$	21.50		622
Outstanding at December 31, 2012		176,188			$	6,032

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2012
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	A. Basis of Presentation and Use of Estimates The Company’s financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The ability of the Company to become profitable depends on several factors, many of which are outside the Company’s control. Such factors include the ability to obtain regulatory approval of product candidates and the ability to successfully commercialize any approved product candidate. The Company’s lead product candidate, OCA, has completed three Phase 2 clinical trials and is currently being tested in three additional clinical trials. Therefore, the Company’s product candidates still require significant research and development efforts. The extent to which the Company will be able to continue its research and development efforts will also partially be determined by factors outside the Company’s control, such as the nature and extent of testing that will be required by the U.S. Food and Drug Administration (FDA) and equivalent agencies outside of the United States.
Segment Reporting, Policy [Policy Text Block]	B. Segments The Company operates in one segment. The Company is a biopharmaceutical company focused on discovering, developing and commercializing treatments for chronic liver diseases utilizing its proprietary bile acid chemistry.
Consolidation, Policy [Policy Text Block]	C. Principles of Consolidation The consolidated financial statements include the accounts of Intercept and its subsidiary, Intercept Italia S.R.L. All intercompany balances and transactions have been eliminated in consolidation.
Reclassification, Policy [Policy Text Block]	D. Reclassification Certain amounts shown in prior years’ consolidated financial statements have been reclassified to conform to the current year consolidated financial statement presentation.
Cash and Cash Equivalents, Policy [Policy Text Block]	E. Cash and Cash Equivalents The Company considers all highly liquid securities with a maturity of three months or less at acquisition to be cash equivalents.
Investment, Policy [Policy Text Block]	F. Investment Securities Investment securities are considered to be available-for-sale and are carried at fair value. Unrealized gains and losses, if any, are reported as a separate component of stockholders’ equity. The cost of investment securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in interest income. Realized gains and losses, if any, are also included in other income, net. The cost of securities sold is based on the specific identification method.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	G. Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, principally consist of cash, cash equivalents, and investment securities. The Company currently invests its excess cash primarily in a money market fund, U.S. Treasury notes, and high quality, marketable debt instruments of corporations, financial institutions and government sponsored enterprises. The Company has adopted an investment policy that includes guidelines relative to credit quality, diversification and maturities to preserve principal and liquidity. The Company does not have any direct investments in auction-rate securities or securities that are collateralized by assets that include mortgages or subprime debt.
Property, Plant and Equipment, Policy [Policy Text Block]	H. Fixed Assets Fixed assets are recorded at cost, net of depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of three to seven years for equipment and seven years for furniture and fixtures. Leasehold improvements are amortized over the shorter of the asset’s useful life or the life of the lease term. Expenditures for maintenance and repairs are charged to expense as incurred.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	I. Impairment of Long-Lived Assets Long-lived assets consist of fixed assets. The Company evaluates long-lived assets for impairment when events and circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable.
Revenue Recognition, Policy [Policy Text Block]	J. Revenue Recognition All of the Company’s revenue during the periods covered by these financial statements has been derived from its research and development and licensing collaborations. These agreements include non-refundable up-front fees and the potential for research, development, regulatory and commercial milestone fees, as well as royalties on sales of licensed products, if and when such product sales occur. To date, the Company has received only up-front fees from its collaborations. The Company evaluates all deliverables within an arrangement to determine whether they provide value on a stand-alone basis. Based on this evaluation, the deliverables are separated into units of accounting. The arrangement consideration that is fixed and determinable at the inception of the arrangement is allocated to the separate units of accounting based on relative fair value. The Company may exercise significant judgment in determining whether a deliverable is a separate unit of accounting, as well as in estimating the selling prices of such units of accounting. For each unit of accounting identified within an arrangement, the Company determines the period over which the performance obligation occurs and recognizes the revenue using a straight-line method. The Company accounts for the development, regulatory and sales milestones within an arrangement in accordance with the milestone method of revenue recognition. This method allows for the recognition of consideration which is contingent on the achievement of a substantive milestone in its entirety in the period the milestone is achieved. Each future milestone is considered substantive if it (i) relates solely to the past performance of the intellectual property to achieve the milestone; (ii) is reasonable relative to all of the deliverables and payment terms in the arrangement; and (iii) is commensurate with either the Company’s performance or the enhanced value of the intellectual property as a result of a specific outcome resulting from the Company’s performance.
Research and Development Expense, Policy [Policy Text Block]	K. Research and Development Research and development costs that do not have alternative future use are charged to expense as incurred. This includes the cost of conducting clinical trials, compensation and related overhead for employees and consultants involved in research and development and the cost of materials purchased for research and development.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	L. Stock-Based Compensation In 2003, the Board of Directors and the stockholders of the Company approved the Amended and Restated 2003 Stock Incentive Plan (2003 Plan) which provided for the granting of restricted stock, stock options and other stock-related awards to officers, directors, employees, advisors, and consultants of the Company. Stock options were granted at exercise prices not less than the fair market value of the Company’s common stock at the dates of grant. In May 2006, June 2008 and January 2010, the number of common shares available was increased to 519,228, 865,381, and 1,384,610, respectively. Most options are scheduled to vest over a period of up to four years. The 2003 Plan was terminated upon the pricing of the IPO in October 2012, and 555,843 shares available under the 2003 Plan were added to the 2012 Plan. All outstanding options issued under the 2003 Plan as of the date of termination remained outstanding and are subject to their respective terms and the terms of the 2003 Plan. In September 2012, the Company’s board of directors and stockholders approved the 2012 Equity Incentive Plan (2012 Plan), which became effective upon the pricing of the Company’s IPO in October 2012. The 2012 Plan will expire on September 13, 2022. Under the 2012 Plan, the Company may grant incentive stock options, non-qualified stock options, restricted and unrestricted stock awards and other stock-based awards. As of December 31, 2012, there were 348,690 shares of Company common stock authorized for issuance under the 2012 Plan. On January 1, 2013, 661,075 shares of common stock were added to the 2012 Plan in January 2013 in accordance with its terms. The Company utilizes the Black-Scholes option-pricing model for determining the estimated fair value of awards. Key inputs and assumptions include the expected term of the option, stock price volatility, risk-free interest rate, dividend yield, stock price and exercise price. Many of the assumptions require significant judgment and any changes could have a material impact in the determination of stock-based compensation expense. The Company estimates forfeitures when recognizing compensation expense and adjusts forfeiture estimates over the vesting period based on actual or anticipated forfeitures. The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the individual grants, which is generally the vesting period, based on the estimated grant date fair values. Generally, stock options granted to employees fully vest four years from the grant date and have a term of ten years.
Warrants To Purchase Common Stock [Policy Text Block]	M. Warrants to Purchase Common Stock In conjunction with various financing transactions, the Company issued warrants to purchase the Company’s common stock. Certain of the warrants include a provision that provides for a reduction in the warrant exercise price if there are subsequent issuances of additional shares of common stock for consideration per share less than the per share warrant exercise prices and the remaining warrants contain a provision that require the underlying shares to be registered upon an IPO. These warrants are deemed to be derivative instruments and as such, are recorded as a liability and are marked-to-market at each reporting period using the Black-Scholes option pricing model. The Company estimates the fair values of the warrants at each reporting period using a Black-Scholes option-pricing model that uses the inputs detailed in note 8 and the contractual terms of the warrants. Management has concluded, under the Company’s facts and circumstances, that the estimated fair values of the warrants using the Black-Scholes option-pricing model approximates, in all material respects, the values determined using a binomial valuation model. The estimates in the Black-Scholes option-pricing model and the binomial valuation model are based, in part, on subjective assumptions, including but not limited to stock price volatility, the expected life of the warrants, the risk free interest rate and the fair value of the common stock underlying the warrants, and could differ materially in the future. Changes in the fair value of the common stock warrant liability from the prior period are recorded as a component of other income and expense. The Company will continue to adjust the fair value of the common stock warrant liability at the end of each reporting period for changes in fair value from the prior period until the earlier of the exercise or expiration of the applicable common stock warrants or until such time that the warrants are no longer determined to be derivative instruments.
Income Tax, Policy [Policy Text Block]	N. Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is established against net deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be resolved. The effect of a change in tax rates or laws on deferred tax assets and deferred tax liabilities is recognized in operations in the period that includes the enactment date of the rate change. The deferred tax asset or liability represents future tax return consequences of those differences, which will be taxable when the assets and liabilities are recovered or settled. The provision for income taxes may differ from the actual expense that would result from applying the federal statutory rate to income before taxes because certain expenses for financial reporting purposes are not deductible for tax purposes. At December 31, 2011 and 2012, the Company had available net operating loss carryforwards to reduce future taxable income of approximately $55.0 million and $70.2 million, respectively, for tax reporting purposes. These carryforwards expire between 2024 and 2032. The ability of the Company to utilize its net operating losses in future years is subject to limitation in accordance with provisions of Section 382 of the Internal Revenue Code due to previous ownership changes; however, these changes have not resulted in material limitations to the Company’s ability to utilize the net operating losses. The Company’s combined federal, state and city deferred tax asset of approximately $26.6 million, $32.1 million, and $42.1 million at December 31, 2010, 2011 and 2012, respectively, resulted from the tax effects of net operating losses and differences between the book and tax bases for the share-based compensation and depreciation. The Company does not have any material deferred tax liabilities. Management has determined it is uncertain whether any of the deferred tax assets will be realizable, and has provided an allowance for the full amount of the tax asset. As a result, the Company has not recorded any income tax benefit since its inception.
Earnings Per Share, Policy [Policy Text Block]	O. Net Loss per Share Basic net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Net loss attributable to common stockholders is net loss reduced by accrued dividends on preferred shares for the periods the preferred shares were outstanding. Diluted net loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. For purposes of the diluted net loss per share calculation, preferred stock, stock options and warrants are considered to be common stock equivalents but are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive and, therefore, basic and diluted net loss per share were the same for all periods presented.
New Accounting Pronouncements, Policy [Policy Text Block]	P. Recent Accounting Pronouncements In February 2013, the Financial Accounting Standards Board, or the FASB, issued ASU No. 2013-02, “Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” or ASU No. 2013-02. ASU No. 2013-02 supersedes the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 and 2011-12 and requires an entity to provide additional information about reclassifications out of accumulated other comprehensive income. ASU No. 2013-02 became effective for us beginning January 1, 2013. The adoption of this amendment will not have a material impact on the Company’s results of operations or financial position.

- Definition

Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4273-108586

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 305
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2122427

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash
-URI http://asc.fasb.org/extlink&oid=6506951

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash Equivalents
-URI http://asc.fasb.org/extlink&oid=6507016

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Financial Reporting Release (FRR)
-Number 203
-Paragraph 02-03

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 1
-Article 5

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Technical Practice Aid (TPA)
-Number 2110
-Paragraph 6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 7, 8, 9, 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Consolidated Statements of Cash Flows [Parenthetical]	124 Months Ended
Consolidated Statements of Cash Flows [Parenthetical]	Dec. 31, 2012 USD ($) shares
Accrued interest on conversion of promissory note payable \| $	$ 91,250
Issuance of warrants for private placement agent fees \| shares	108,169

1. Nature of Business

2. Summary of Significant Accounting Policies

A. Basis of Presentation and Use of Estimates

B. Segments

C. Principles of Consolidation

D. Reclassification

E. Cash and Cash Equivalents

F. Investment Securities

G. Concentration of Credit Risk

H. Fixed Assets

I. Impairment of Long-Lived Assets

J. Revenue Recognition

K. Research and Development

L. Stock-Based Compensation

M. Warrants to Purchase Common Stock

N. Income Taxes

O. Net Loss per Share

P. Recent Accounting Pronouncements

3. Significant Agreements

Dainippon Sumitomo Pharma Co., Ltd. (DSP)

Les Laboratories Servier and Institut de Recherches Servier (Servier)

Sponsored Research Agreement (SRA) with the University of Perugia and Professor Pellicciari

Consulting Agreements with Professor Pellicciari

TES Pharma SRL (TES)

National Institute of Diabetes and Digestive and Kidney Disease Institute (NIDDK)

WIL Research Laboratories, LLC (WIL)

4. Investments

5. Prepaid Expenses and Other Current Assets

6. Fixed Assets, Net

7. Accounts Payable, Accrued Expenses and Other Liabilities

8. Warrants to Purchase Common Stock

9. Fair Value Measurements

10. Stockholders’ Equity and Preferred Stock

Common Stock

Dividends

Voting

Preferred Stock

11. 2003 Stock Incentive Plan and 2012 Stock Plan

Stock Options

Restricted Stock Units

12. QTDP

13. Commitment and Contingencies

Facility Leases

Contingencies

14. Related Party Transactions

15. Net Loss Per Share

16. Quarterly Financial Data (unaudited)

A. Basis of Presentation and Use of Estimates

B. Segments

C. Principles of Consolidation

D. Reclassification

E. Cash and Cash Equivalents

F. Investment Securities

G. Concentration of Credit Risk

H. Fixed Assets

I. Impairment of Long-Lived Assets

J. Revenue Recognition

K. Research and Development

L. Stock-Based Compensation

M. Warrants to Purchase Common Stock

N. Income Taxes

O. Net Loss per Share

P. Recent Accounting Pronouncements