GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2021

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

8. GOODWILL AND INTANGIBLE ASSETS

Goodwill

As a result of our 2013 merger with BioSante Pharmaceuticals, Inc. (“BioSante”), we recorded goodwill of $1.8 million. As a result of our acquisition of WellSpring Pharma Services Inc., we recorded additional goodwill of $1.7 million in 2018. We assess the recoverability of the carrying value of goodwill as of October 31^st of each year, and whenever events occur or circumstances change that would, more likely than not, reduce the fair value of our reporting unit below its carrying value. There have been no events or changes in circumstances that would have reduced the fair value of our reporting unit below its carrying value during the six months ended June 30, 2021. No impairment losses were recognized during the three and six months ended June 30, 2021 and 2020.

Definite-lived Intangible Assets

The components of net definite-lived intangible assets are as follows:

	June 30, 2021				December 31, 2020				Weighted Average
	Gross Carrying		Accumulated		Gross Carrying		Accumulated		Amortization
(in thousands)	Amount		Amortization		Amount		Amortization		Period
Acquired ANDA intangible assets	$	106,415	$	(48,579)	$	106,415	$	(42,367)	8.8	years
NDAs and product rights		242,372		(125,456)		230,974		(112,483)	9.9	years
Marketing and distribution rights		17,157		(11,866)		17,157		(11,386)	5.7	years
Non-compete agreement		624		(468)		624		(423)	7.0	years
	$	366,568	$	(186,369)	$	355,170	$	(166,659)	9.4	years

Definite-lived intangible assets are stated at cost, net of amortization, generally using the straight-line method over the expected useful lives of the intangible assets. In the case of certain New Drug Application (“NDA”) and product rights assets, we use an accelerated amortization method to better match the anticipated economic benefits expected to be provided. Amortization expense was $10.1 million and $10.0 million for the three months ended June 30, 2021 and 2020, respectively. Amortization expense was $19.7 million and $20.1 million for the six months ended June 30, 2021 and 2020, respectively. Refer to Note 12 for more details on acquired definite-lived intangible assets.

We test for impairment of definite-lived intangible assets when events or circumstances indicate that the carrying value of the assets may not be recoverable. No such triggering events were identified during the three and six months ended June 30, 2021 and 2020 and therefore no impairment loss was recognized in the three and six months ended June 30, 2021 and 2020.

Expected future amortization expense is as follows:

(in thousands)
2021	$	20,117
2022		36,828
2023		36,080
2024		33,103
2025		29,754
2026 and thereafter		24,317
Total	$	180,199