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GOODWILL AND INTANGIBLE ASSETS
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
Goodwill
As of June 30, 2025, the Company has assigned its goodwill in three reporting units, Generics and Other, Brands, and Rare Disease reporting units. As a result of the 2013 merger with BioSante Pharmaceuticals, Inc., the Company recorded goodwill of $1.8 million. As a result of the acquisition of WellSpring Pharma Services Inc. in 2018, the Company recorded goodwill of $1.7 million. From the acquisition of Novitium in 2021, the Company recorded goodwill of $24.6 million. The goodwill from the transactions with BioSante Pharmaceuticals, Inc., WellSpring Pharma Services Inc., and Novitium is recorded in the Generics and Other reporting unit. As a result of the acquisition of Alimera, on September 16, 2024, the Company recorded goodwill of approximately $32.3 million in the Rare Disease reporting unit. Refer to Note 3 “Business Combination” to the notes to the condensed consolidated financial statements (unaudited) for further information related to the acquisition. There have been no events or changes in circumstances that would have reduced the fair value of the reporting units below their carrying value during the three and six months ended June 30, 2025, and 2024, respectively, and as a result no impairment charges have been recognized.
Intangible Assets
The components of definite-lived intangible assets and indefinite-lived intangible assets, other than goodwill, are as follows:
June 30, 2025December 31, 2024Remaining Weighted Average
Amortization
Period(1)
(in thousands)Gross Carrying
Amount		Accumulated
Amortization		Net Carrying Amount Gross Carrying
Amount		Accumulated
Amortization		Net Carrying Amount
Definite-Lived Intangible Assets:
Acquired ANDAs intangible assets$213,514 $(136,880)$76,634 $210,497 $(124,874)$85,623 4.1 years
NDAs and product rights674,321 (243,935)430,386 641,271 (216,420)424,851 10.6 years
Marketing and distribution rights17,157 (15,714)1,443 17,157 (15,233)1,924 1.5 years
Customer relationships24,900 (13,043)11,857 24,900 (11,264)13,636 3.3 years
Total Definite-Lived Intangible Assets929,892 (409,572)520,320 893,825 (367,791)526,034 9.5 years
Indefinite-Lived Intangible Assets:
In process research and development— — — 15,800 — 15,800 Indefinite
Total Intangible Assets, net$929,892 $(409,572)$520,320 $909,625 $(367,791)$541,834 
(1)Weighted average amortization period as of June 30, 2025.
Definite-lived intangible assets arising from business combinations and other asset acquisitions include intangibles such as Abbreviated New Drug Applications (“ANDAs”), New Drug Applications (“NDAs”) and product rights, marketing and distribution rights, customer relationships, and non-compete agreements. Definite-lived intangible assets are tested for impairment when events or changes in circumstances indicate that these assets might be impaired.
During the year ended December 31, 2024, the Company acquired Alimera, and as a result, acquired two intangible assets for YUTIQ and ILUVIEN, in the amount of $170.0 million and $230.0 million, respectively, which will be amortized over twelve years.
Pursuant to a Royalty Purchase Agreement dated as of December 17, 2020, EyePoint Pharmaceuticals US, Inc. (f/k/a pSivida US, Inc. or “EyePoint”) sold its right to receive royalty payments on future sales of ILUVIEN to SWK Funding LLC (“SWK”) under an existing collaboration agreement entered into in July 2017 between EyePoint and the Company (the “RPA Transaction”). In connection with the RPA Transaction, the Company agreed to pay such royalty payments directly to SWK. On June 19, 2024, Alimera entered into a letter agreement with SWK, pursuant to which the parties agreed to a lower fixed royalty payment of 3.125% (the “Alternative Royalty”) on combined sales of ILUVIEN and YUTIQ. The letter agreement included a buy-out of the Alternative Royalty at Alimera’s option at any time during the period within six (6) months after a change of control of Alimera, after which SWK would have no further right to receive any payments under the letter agreement or the RPA (the “Buy-Out Option”). On March 17, 2025, the Company exercised the Buy-Out Option and paid SWK $17.3 million with cash on hand, and as such, no further royalty is due to SWK on net revenues beginning January 1, 2025, forward. The purchase of the Buy-Out Option was recorded as a definite-lived intangible asset, which will be amortized over approximately twelve years, consistent with the useful lives of YUTIQ and ILUVIEN. The SWK definite-lived intangible asset is included in the "NDAs and product rights" in the table above.
Additionally, during the three months ended June 30, 2025, approximately $2.6 million of acquired ANDA intangible assets were capitalized related to asset acquisitions during the period, which will be amortized over seven years.
Amortization expense for definite-lived intangibles was $21.1 million and $41.8 million million for the three and six months ended June 30, 2025, respectively. Amortization expense for definite-lived intangibles was $13.0 million and $25.9 million for the three and six months ended June 30, 2024, respectively.
Indefinite-lived intangible assets other than goodwill include primarily In-Process Research & Development (“IPR&D”) projects. IPR&D intangible assets represent the fair value of technology acquired in a business combination or asset acquisition for which the technology projects are incomplete but have substance or alternative future use. When an IPR&D project is completed (generally upon receipt of regulatory approval), then the IPR&D will be accounted for as a definite-lived intangible asset.
During the three months ended June 30, 2025, $15.8 million was reclassified from indefinite-lived IPR&D to definite-lived NDAs and Product Rights related to the commercialization of TezrulyTM and InzirqoTM, and will be amortized over ten years. As of June 30, 2025 there was no IPR&D on the unaudited interim condensed consolidated balance sheet.
During the second quarter of 2025, the Company transitioned promotional efforts in the U.S. from YUTIQ to ILUVIEN with its combined label of DME and NIU-PS, and as result the Company combined the ILUVIEN and YUTIQ intangible assets. The Company concluded that there were no changes to expected future cash flows for the combined ILUVIEN definite-lived intangible asset. The fair value of the definite-lived intangible asset was not below its carrying value as of June 30, 2025.
No impairment charges were recognized in the three and six months ended June 30, 2025 and 2024, respectively.
Expected future amortization expense for definite-lived intangible assets is as follows:
(in thousands)
2025 (remainder of the year)$40,688 
202669,554 
202760,587 
202854,596 
202948,357 
2030 and thereafter246,538 
Total$520,320 
Expected amortization expense is an estimate. Actual amounts of amortization expense may differ due to additional intangible assets acquired, impairment of intangible assets, and other events.