Segment and Other Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment and Other Information

NOTE 11 – SEGMENT AND OTHER INFORMATION

The Company substantially completed the wind down of its former inflammation business in the fourth quarter of 2022. Effective in the fourth quarter of 2022, management realigned the Company’s reportable segments to reflect changes in the manner in which the CODM assesses financial information for decision-making purposes. The Company transitioned the Company’s two reportable segments, the inflammation segment and the orphan segment, to one reportable segment for the year ended December 31, 2022. All prior year amounts have been reclassified to conform to the Company’s current reporting structure.

The Company determined that it operates in one reportable segment, which focuses on the discovery, development and commercialization of medicines that address critical needs for people impacted by rare, autoimmune and severe inflammatory diseases. The Company’s operating segment is reported in a manner consistent with the internal reporting provided to the CODM. The Company’s chief executive officer has been identified as its CODM.

On March 15, 2021, the Company completed its acquisition of Viela. The acquisition expanded the Company’s commercial medicine portfolio by adding an additional rare disease medicine, UPLIZNA, to its commercial medicine portfolio.

The following table reflects net sales by medicine for the years ended December 31, 2022, 2021 and 2020 (in thousands):

	Year Ended December 31,
	2022		2021		2020
TEPEZZA	$	1,965,711	$	1,661,299	$	820,008
KRYSTEXXA		716,167		565,452		405,849
RAVICTI		325,652		291,945		261,615
PROCYSBI		209,990		189,965		170,102
UPLIZNA (1)		154,622		60,805	—
ACTIMMUNE		126,080		117,164		118,834
PENNSAID 2%		73,774		191,621		178,011
RAYOS		41,882		56,851		71,811
BUPHENYL		7,332		7,860		10,549
DUEXIS		4,901		74,023		125,331
VIMOVO		1,851		8,397		37,621
QUINSAIR		1,082		1,028		698
Total net sales	$	3,629,044	$	3,226,410	$	2,200,429

(1)UPLIZNA revenue is affected each reporting period by the changes in the estimate of variable consideration included in the remeasurement of the refund liability for shipments to MTPC. During the years ended December 31, 2022 and 2021, the Company recognized $11.2 million and $4.1 million, respectively, of revenue as a result of the changes in this estimate. The amount of variable consideration recognized is dependent on MTPC’s sales over which the Company has no direct control.

The following table presents the amount and percentage of gross sales to customers that represented more than 10% of the Company’s gross sales included in its reporting segment, and all other customers as a group for the years ended December 31, 2022, 2021 and 2020 (in thousands, except percentages):

	Year Ended December 31,
	2022			2021			2020
	Amount		% of Gross Sales	Amount		% of Gross Sales	Amount		% of Gross Sales
Customer A	$	1,361,445	27%	$	1,300,020	26%	$	959,066	24%
Customer B		1,148,355	23%		1,412,007	29%		1,298,128	32%
Customer C		1,103,785	22%		917,535	19%		772,724	19%
Customer D		954,733	19%		839,863	17%		521,425	13%
Other customers		453,959	9%		434,204	9%		488,088	12%
Gross sales	$	5,022,277	100%	$	4,903,629	100%	$	4,039,431	100%

Geographic revenues are determined based on the country in which the Company’s customers are located. The following table presents a summary of net sales attributed to geographic sources for the years ended December 31, 2022, 2021 and 2020 (in thousands, except percentages):

	Year Ended December 31, 2022			Year Ended December 31, 2021			Year Ended December 31, 2020
	Amount		% of Total Net Sales	Amount		% of Total Net Sales	Amount		% of Total Net Sales
United States	$	3,589,510	99%	$	3,210,020	100%	$	2,191,111	100%
Rest of world		39,534	1%		16,390	*		9,318	*
	$	3,629,044		$	3,226,410		$	2,200,429
*Less than 1%

The following table presents total tangible long-lived assets by location as of the years ended December 31, 2022, 2021 and 2020 (in thousands):

	As of December 31,
	2022		2021		2020
United States	$	249,997	$	239,440	$	214,563
Ireland		189,926		128,498		8,726
Other		77		74		154
Total long-lived assets (1)	$	440,000	$	368,012	$	223,443

(1)Long-lived assets consist of property, plant and equipment and right-of-use lease assets.