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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
An operating segment is defined as a component of an entity that engages in business activities from which it may recognize revenues and incur expense, its operating results are regularly reviewed by the entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and its discrete financial information is available. The CODM for the Company is the Chief Executive Officer. The Company is organized into two operating segments as follows:
•Generics, Established Brands, and Other – Consists of operations related to the development, manufacturing, and marketing of generic and established brand pharmaceuticals, including those sold through traditional channels, contract manufactured products, product development services, royalties, and other.
•Rare Disease – Consists of operations related to the development, manufacturing and marketing of pharmaceuticals used in the treatment of patients with rare conditions. The rare disease segment currently consists of operations related to Cortrophin Gel, and the products acquired as part of the Merger with Alimera, ILUVIEN and YUTIQ, as of and from September 16, 2024 through the end of the quarter.
The CODM evaluates the two operating segments based on revenues and earnings before interest, income taxes, depreciation, and amortization (“EBITDA”), exclusive of corporate expenses and other expenses not directly allocated or attributable to an operating segment. These expenses include, but are not limited to, certain management, legal, accounting, human resources, insurance, and information technology expenses, and transaction and integration expenses related to the acquisition of Alimera.
The Company does not manage assets of the Company by operating segment, and our CODM does not review asset information by operating segment. Accordingly, the Company does not present total assets by operating segment.
Financial information by reportable segment is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2024202320242023
Net Revenues
Generics, Established Brands, and Other$91,906 $102,095 $281,246 $284,794 
Rare Disease56,426 29,734 142,556 70,368 
Total net revenues$148,332 $131,829 $423,802 $355,162 
Segment earnings before interest, taxes, depreciation and amortization (“EBITDA”) and reconciliation to income before income taxes
Generics, Established Brands, and Other$33,588 $41,234 $110,528 $120,070 
Rare Disease6,626 4,044 14,826 6,937 
Depreciation and amortization(15,748)(15,207)(45,131)(44,597)
Corporate and other unallocated expenses(1)
(44,985)(12,123)(75,261)(42,165)
Total operating (loss) income (20,519)17,948 4,962 40,245 
Unrealized gain on investment in equity securities 1,355 — 8,298 — 
Interest expense, net(2,331)(6,398)(11,587)(21,194)
Other expense, net (2)
(10,003)(39)(10,123)(126)
(Loss) Income Before Income Tax (Benefit) Expense$(31,498)$11,511 $(8,450)$18,925 
______________________________________________
(1)Includes expenses not directly allocated or attributable to a reporting segment, including certain management, legal, accounting, human resources, insurance, and information technology expenses, transaction and integration expenses related to the acquisition of Alimera, severance and equity payouts, and are included in selling, general, and administrative expenses in our unaudited interim consolidated statement of operations. This amount also includes the gain on the sale of the Oakville, Ontario site of approximately $5.3 million, which occurred in the first quarter of 2024.
(2)The loss on extinguishment of approximately $7.5 million, which occurred in the third quarter of 2024 is included in Other expense, net above. Refer to Note 4 “Restructuring Canada Operations” to the Notes to Condensed Consolidated Financial Statements for further information.
Geographic Information
The following depicts the Company's total revenue according to geographic location. The Company has ceased operations at the Oakville, Ontario, Canada location as of March 31, 2023. The revenue from Alimera is also included in the three and nine months ended September 30, 2024 in the table below. The majority of the assets of the Company are located in the United States.
The following table depicts the Company’s revenue by geographic operations during the following periods:
(in thousands)Three Months Ended September 30,Nine Months Ended September 30,
Location of Operations2024202320242023
United States$147,116 $131,829 $422,586 $354,597 
International1,216 — 1,216 565 
Total Revenue$148,332 $131,829 $423,802 $355,162 
The following table depicts the Company’s property, plant and equipment, net according to geographic location, which excludes the land and building at the Company’s Canada facility, which was classified as held for sale as of December 31, 2023. These assets had a carrying value of approximately $8.0 million. The land and building at the Canada facility was sold on March 28, 2024, refer to Note 4 “Restructuring Canada Operations” to the Notes to Condensed Consolidated Financial Statements. The table below includes Alimera property, plant and equipment, net, as of September 30, 2024. The Company’s property, plant and equipment are as follows:
(in thousands)September 30, 2024December 31, 2023
United States$54,637 $43,163 
International2,067 1,430 
Total property and equipment, net$56,704 $44,593