Segment Information

9 Months Ended

Sep. 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 nine months ended September 30, 2022 and 2021 are summarized in the tables below:

(In thousands)			Contract		Corporate		Total
Three Months Ended September 30, 2022	Therapeutics		Research		and Other		Company
Total revenue	$	17,928	$	4,299	$	(3,209)	$	19,018
Cost of revenue		—		3,925		(3,002)		923
Research and development expense		23,863		—		(207)		23,656
General and administrative expense		—		875		4,938		5,813
Licensing expense		7,300		—		—		7,300
Revaluation of contingent consideration		2,200		—		—		2,200
Loss from operations	$	(15,435)	$	(501)	$	(4,938)	$	(20,874)
(In thousands)			Contract		Corporate		Total
Three Months Ended September 30, 2021	Therapeutics		Research		and Other		Company
Total revenue	$	244	$	3,335	$	(1,920)	$	1,659
Cost of revenue		—		2,912		(1,813)		1,099
Research and development expense		14,083		—		(107)		13,976
General and administrative expense		—		837		5,142		5,979
Revaluation of contingent consideration		900		—		—		900
Loss from operations	$	(14,739)	$	(414)	$	(5,142)	$	(20,295)
(In thousands)			Contract		Corporate		Total
Nine Months Ended September 30, 2022	Therapeutics		Research		and Other		Company
Total revenue	$	18,469	$	12,795	$	(9,265)	$	21,999
Cost of revenue		—		11,823		(8,677)		3,146
Research and development expense		57,329		—		(588)		56,741
General and administrative expense		—		2,570		15,417		17,987
Licensing expense		7,300		—		—		7,300
Revaluation of contingent consideration		(2,400)		—		—		(2,400)
Loss from operations	$	(43,760)	$	(1,598)	$	(15,417)	$	(60,775)
(In thousands)			Contract		Corporate		Total
Nine Months Ended September 30, 2021	Therapeutics		Research		and Other		Company
Total revenue	$	704	$	10,016	$	(5,460)	$	5,260
Cost of revenue		—		8,705		(5,141)		3,564
Research and development expense		30,030		—		(319)		29,711
General and administrative expense		—		2,344		14,332		16,676
Revaluation of contingent consideration		22,139		—		—		22,139
Loss from operations	$	(51,465)	$	(1,033)	$	(14,332)	$	(66,830)

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 September 30, 2022 and 2021, respectively, and $9.3 million and $5.5 million for the nine months ended September 30, 2022 and 2021, respectively.  All intersegment revenue has been eliminated in the Company’s condensed consolidated statement of operations.