XML 42 R29.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Segment Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has three reportable segments: Generics, Specialty, and AvKARE.
Generics
The Company’s Generics segment includes a retail and institutional portfolio of over 270 product families covering an extensive range of dosage forms and delivery systems, including both immediate and extended-release oral solids, powders, liquids, sterile injectables, nasal sprays, inhalation and respiratory products, biosimilar products, ophthalmics, films, transdermal patches and topicals.
Specialty
The Company’s Specialty segment is engaged in the development, promotion, sale and distribution of proprietary branded pharmaceutical products, with a focus on products addressing central nervous system disorders, including Parkinson’s disease, and endocrine disorders.
AvKARE
The Company’s AvKARE segment provides pharmaceuticals, medical and surgical products and services primarily to governmental agencies, predominantly focused on the U.S. Department of Defense and the U.S. Department of Veterans Affairs. AvKARE is a re-packager of bottle and unit dose pharmaceuticals under the registered names of AvKARE and AvPAK. AvKARE is also a wholesale distributor of pharmaceuticals, over the counter drugs and medical supplies to its retail and institutional customers that are located throughout the U.S. focused primarily on offering 340b-qualified entities products to provide consistency in care and pricing.
Chief Operating Decision Makers
The Company’s chief operating decision makers evaluate the financial performance of the Company’s segments based upon segment operating income (loss). Items below operating income (loss) are not reported by segment, because they are excluded from the measure of segment profitability reviewed by the Company’s chief operating decision maker. Additionally, general and administrative expenses, certain selling expenses, certain litigation settlements, and non-operating income and expenses are included in “Corporate and Other.” The Company does not report balance sheet information by segment because it is not reviewed by the Company’s chief operating decision makers.
The tables below present segment information reconciled to total Company financial results, with segment operating income or loss, including gross profit less direct selling expenses, research and development expenses, and other operating expenses to the extent specifically identified by segment (in thousands):
Three Months Ended March 31, 2024
Generics (1)
Specialty
AvKARE (1)
Corporate
and Other
Total
Company
Net revenue$391,294 $105,234 $162,663 $— $659,191 
Cost of goods sold239,922 44,800 136,409 — 421,131 
Gross profit151,372 60,434 26,254 — 238,060 
Selling, general and administrative33,085 25,196 14,907 39,407 112,595 
Research and development34,371 4,927 — — 39,298 
Intellectual property legal development expenses960 24 — — 984 
Restructuring and other charges— 946 — 524 1,470 
Change in fair value of contingent consideration— 100 — — 100 
Charges related to legal matters, net94,359 — — — 94,359 
Operating (loss) income$(11,403)$29,241 $11,347 $(39,931)$(10,746)

Three Months Ended March 31, 2023
Generics (1)
Specialty
AvKARE (1)
Corporate
and Other		Total
Company
Net revenue$343,806 $91,678 $122,056 $— $557,540 
Cost of goods sold230,551 43,191 105,612 — 379,354 
Gross profit113,255 48,487 16,444 — 178,186 
Selling, general and administrative27,600 22,379 12,940 39,177 102,096 
Research and development32,359 6,331 — — 38,690 
Intellectual property legal development expenses1,624 20 — — 1,644 
Restructuring and other charges99 — — 411 510 
Change in fair value of contingent consideration— 2,457 — — 2,457 
(Credit) charges related to legal matters, net(2,444)— — 2,008 (436)
Other operating income(1,224)— — — (1,224)
Operating income (loss)
$55,241 $17,300 $3,504 $(41,596)$34,449 
(1)Operating results for the sale of Amneal products by AvKARE are included in Generics.