Segment Reporting

3 Months Ended

Mar. 31, 2016

Segment Reporting

Segment Reporting

6.  Segment Reporting

The Company’s business is the development, manufacture, and marketing of pharmaceutical products. The Company has established two reporting segments that each report to the Chief Operating Decision Maker, or CODM, as defined in ASC 280, Segment Reporting.  The Company’s performance is assessed and resources are allocated by the CODM based on the following two reportable segments:

· Finished pharmaceutical products

· Active pharmaceutical ingredients, or API

The finished pharmaceutical products segment manufactures, markets and distributes enoxaparin, Cortrosyn®, Amphadase®, naloxone, lidocaine jelly, as well as various other critical and non-critical care drugs.  The API segment manufactures and distributes RHI and porcine insulin. The Company also uses RHI for internal product development.

Selected financial information by reporting segment is presented below:

	Three Months Ended
	March 31,
	2016		2015
	(in thousands)
Net revenues:
Finished pharmaceutical products	$	58,554	$	50,872
API		812		6,014
Total net revenues		59,366		56,886
Gross Profit:
Finished pharmaceutical products		25,824		12,853
API		(922)		427
Total gross profit		24,902		13,280
Operating expenses		20,827		20,541
Income (loss) from operations		4,075		(7,261)
Non-operating income (expenses)		(259)		1,064
Income (loss) before income taxes	$	3,816	$	(6,197)

The Company manages its business segments to the gross profit level and manages its operating and other costs on a company-wide basis.  The Company does not identify total assets by segment for internal purposes, as the Company’s CODM does not assess performance, make strategic decisions, or allocate resources based on assets.

Net revenues and carrying values of long-lived assets of enterprises by geographic regions are as follows:

	Net Revenue				Long-Lived Assets
	Three Months Ended
	March 31,				March 31,		December 31,
	2016		2015		2016		2015
	(in thousands)
U.S.	$	58,538	$	52,960	$	100,290	$	100,404
China		—		—		30,739		28,547
France		828		3,926		13,655		13,210
Total	$	59,366	$	56,886	$	144,684	$	142,161