On April 3, 2017, the Company completed the sale of the Commercial Business to Ipsen. The Commercial Business represented a discontinued operation since the disposal of the Commercial Business was a strategic shift that had a major effect on the Company’s operations and financial results. The Company will not have further significant involvement in the operations of the discontinued Commercial Business. The operating results of the Commercial Business are reported as discontinued operations, net of tax in the condensed consolidated statements of operations and comprehensive loss for all periods presented.

The condensed consolidated financial statements for the three months ended March 31, 2024 and 2023 reflect the operations of the Commercial Business as a discontinued operation. Discontinued operations for the three months ended March 31, 2024 and 2023 includes the following:


	Three Months Ended March 31,
(in thousands)	2024			2023
Other income and expenses:
Gain on sale of Commercial Business	$	225,000		$	—
Income from discontinued operations		225,000			—
Income tax expense		(23,194	)		—
Total income from discontinued operations	$	201,806		$	—

During the three months ended March 31, 2024, the Company received $225.0 million milestone payment related to the development and commercialization of ONIVYDE. The Company included the $225.0 million in discontinued operations because the amounts directly relate to the Commercial Business, which was classified as a discontinued operation.

The Company recorded the income tax implications of the milestone payment in the first quarter of 2024 on a discrete basis. The milestone generated taxable income for the Company which has resulted in income tax expense. The Company released a portion of its valuation allowance in the three months ended March 31, 2024 as it is now able to utilize its net operating loss carryforwards to offset the taxable income generated from the milestone payment. The Company’s current income tax expense for the three months ended March 31, 2024 is $23.2 million, which is comprised primarily of federal IRC Section 453A interest and the Massachusetts equivalent of IRC Section 453A interest expense.