Segment and Other Information (Tables)

3 Months Ended

Mar. 31, 2022

Summary of Net Sales by Medicine for Reportable Segments

The following table reflects net sales by medicine for the Company’s reportable segments for the three months ended March 31, 2022 and 2021 (in thousands):

	For the Three Months Ended March 31,
	2022		2021
TEPEZZA	$	501,451	$	2,065
KRYSTEXXA		140,704		106,757
RAVICTI		78,257		72,817
PROCYSBI		49,571		43,363
ACTIMMUNE		31,435		28,763
UPLIZNA⁽¹⁾		30,477		1,873
BUPHENYL		2,161		1,660
QUINSAIR		296		209
Orphan segment net sales	$	834,352	$	257,507

PENNSAID 2%		35,368		45,817
RAYOS		13,487		15,272
DUEXIS		1,123		19,465
VIMOVO		915		4,345
Inflammation segment net sales	$	50,893	$	84,899

Total net sales	$	885,245	$	342,406

(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 three months ended March 31, 2022, the Company recognized $1.6 million of revenue as a result of the change in this estimate. The amount of variable consideration recognized is dependent on MTPC’s sales over which the Company has no direct control.

Summary of Reconciliations of Segment Operating Income

The table below provides reconciliations of the Company’s segment operating income to the Company’s total income (loss) before benefit for income taxes for the three months ended March 31, 2022 and 2021 (in thousands):

	For the Three Months Ended March 31,
	2022			2021
Segment operating income:
Orphan	$	351,514		$	1,054
Inflammation		15,349			42,680
Reconciling items:
Amortization and step-up:
Intangible amortization expense		(89,260	)		(66,369	)
Inventory step-up expense		(27,201	)		(911	)
Share-based compensation		(47,300	)		(61,166	)
Interest expense, net		(21,256	)		(13,460	)
Depreciation		(5,852	)		(4,451	)
Acquisition/divestiture-related costs		(1,589	)		(49,391	)
Manufacturing plant start-up costs		(807	)		—
Restructuring and realignment costs		(537	)		(6,093	)
Upfront and milestone payments related to license and collaboration agreements		—			(3,000	)
Impairment of long-lived asset		—			(12,371	)
Foreign exchange gain (loss)		420			(848	)
Other (expense) income, net		(742	)		3,224
Income (loss) before benefit for income taxes	$	172,739		$	(171,102	)

Schedule of Gross Sales to Customers Included in Reportable Segments and All Other Customers as a Group

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 two reportable segments and all other customers as a group for the three months ended March 31, 2022 and 2021 (in thousands, except percentages):

	For the Three Months Ended March 31,
	2022					2021
	Amount		% of Gross			Amount		% of Gross
			Sales					Sales
Customer A	$	333,373		27	%	$	184,687		24	%
Customer B		301,211		25	%		248,740		33	%
Customer C		247,619		20	%		118,037		15	%
Customer D		234,126		19	%		90,619		12	%
Other Customers		115,157		9	%		119,449		16	%
Gross Sales	$	1,231,486		100	%	$	761,532		100	%

Summary of Net Sales Attributed to Geographic Sources

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 three months ended March 31, 2022 and 2021 (in thousands, except percentages):

	For the Three Months Ended March 31, 2022,			For the Three Months Ended March 31, 2021,
	Amount		% of Total Net Sales	Amount		% of Total Net Sales
United States	$	878,290	100%	$	340,330	100%
Rest of world		6,955	*		2,076	*
Net sales	$	885,245		$	342,406
*Less than 1%