Segment Information

6 Months Ended

Jun. 30, 2022

Segment Information

Segment Information

15. Segment Information

The Company has two reportable segments, therapeutics and contract research.  The therapeutics segment is focused on identifying and developing innovative therapies to address significant unmet needs for immuno-inflammatory diseases.  The contract research segment earns revenue from the provision of laboratory services.  Contract research revenue is generally evidenced by contracts with clients which are on an agreed upon fixed-price, fee-for-service basis.  Corporate and other includes general and administrative expenses as well as eliminations of intercompany transactions.  The Company does not report balance sheet information by segment since it is not reviewed by the chief operating decision maker, and all of the Company’s tangible assets are held in the United States.  

The Company’s results of operations by segment for the three and six months ended June 30, 2022 and 2021 are summarized in the tables below:

(In thousands)			Contract		Corporate		Total
Three Months Ended June 30, 2022	Therapeutics		Research		and Other		Company
Total revenue	$	309	$	4,399	$	(3,180)	$	1,528
Cost of revenue		—		4,041		(2,973)		1,068
Research and development		18,986		—		(207)		18,779
General and administrative		—		854		5,221		6,075
Revaluation of contingent consideration		(3,400)		—		—		(3,400)
Loss from operations	$	(15,277)	$	(496)	$	(5,221)	$	(20,994)
(In thousands)			Contract		Corporate		Total
Three Months Ended June 30, 2021	Therapeutics		Research		and Other		Company
Total revenue	$	218	$	3,481	$	(1,875)	$	1,824
Cost of revenue		—		3,024		(1,761)		1,263
Research and development		8,011		—		(114)		7,897
Sales and marketing		—		—		—		—
General and administrative		—		879		4,991		5,870
Revaluation of contingent consideration		4,800		—		—		4,800
Loss from operations	$	(12,593)	$	(422)	$	(4,991)	$	(18,006)
(In thousands)			Contract		Corporate		Total
Six Months Ended June 30, 2022	Therapeutics		Research		and Other		Company
Total revenue	$	541	$	8,495	$	(6,055)	$	2,981
Cost of revenue		—		7,897		(5,674)		2,223
Research and development		33,466		—		(381)		33,085
General and administrative		—		1,695		10,479		12,174
Revaluation of contingent consideration		(4,600)		—		—		(4,600)
Loss from operations	$	(28,325)	$	(1,097)	$	(10,479)	$	(39,901)
(In thousands)			Contract		Corporate		Total
Six Months Ended June 30, 2021	Therapeutics		Research		and Other		Company
Total revenue	$	460	$	6,681	$	(3,540)	$	3,601
Cost of revenue		—		5,793		(3,328)		2,465
Research and development		15,946		—		(211)		15,735
General and administrative		—		1,507		9,190		10,697
Revaluation of contingent consideration		21,239		—		—		21,239
Loss from operations	$	(36,725)	$	(619)	$	(9,191)	$	(46,535)

Intersegment Revenue

Revenue for the contract research segment included $3.2 million and $1.9 million for services performed on behalf of the therapeutics segment for the three months ended June 30, 2022 and 2021, respectively, and $6.1 million and $3.5 million for the six months ended June 30, 2022 and 2021, respectively.  All intersegment revenue has been eliminated in the Company’s condensed consolidated statement of operations.