Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in goodwill by segment were as follows (in thousands):


	Affordable Medicines		Specialty		AvKARE		Total
Balance as of December 31, 2022	$	163,076	$	366,312	$	69,465	$	598,853
Currency translation	(224)		—		—		(224)
Balance as of December 31, 2023	162,852		366,312		69,465		598,629
Currency translation	(1,193)		—		—		(1,193)
Balance as of December 31, 2024	$	161,659	$	366,312	$	69,465	$	597,436

Annual Goodwill Impairment Test

The Company performed a quantitative annual goodwill impairment test for each reporting unit on October 1, 2024, the measurement date. The analysis performed included estimating the fair value of each reporting unit using both the income and market approaches. Based on the results of the annual impairment test, the Company determined that the estimated fair values of the Affordable Medicines, Specialty and AvKARE reporting units exceeded their respective carrying amounts as of the measurement date; therefore, the Company did not record an impairment charge for the year ended December 31, 2024. There were no indicators of goodwill impairment during the year ended December 31, 2024, including the period subsequent to the measurement date.

In performing the quantitative annual goodwill impairment test, the Company utilized long-term growth rates for its reporting units ranging from no growth to 1.0% and a discount rate ranging from 10.5% to 14.0% in its estimation of fair value. As of October 1, 2024, the estimated fair value of the Affordable Medicines reporting unit was in excess of its carrying value by approximately 112%, the estimated fair value of the Specialty reporting unit was in excess of its carrying value by approximately 113%, and the estimated fair value of the AvKARE reporting unit was in excess of its carrying value by approximately 728%. A 500-basis point increase in the assumed discount rates utilized in each test would not have resulted in a goodwill impairment charge in any of the Company's reporting units.

While management believes the assumptions used were reasonable and commensurate with the views of a market participant, changes in key assumptions for these reporting units, including increasing the discount rate, lowering forecasts for revenue and operating margin or lowering the long-term growth rate, could result in a future goodwill impairment.

Intangible assets were comprised of the following (in thousands):


	December 31, 2024							December 31, 2023
	Weighted- Average Amortization Period (in years)	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Amortizing intangible assets:
Product rights	6.9	$	1,550,469	$	(856,914)	$	693,555	$	1,198,971	$	(703,297)	$	495,674

Other intangible assets	2.6	83,200		(58,678)		24,522		111,800		(72,896)		38,904
Total		1,633,669		(915,592)		718,077		1,310,771		(776,193)		534,578
In-process research and development		14,300		—		14,300		355,845		—		355,845
Total intangible assets		$	1,647,969	$	(915,592)	$	732,377	$	1,666,616	$	(776,193)	$	890,423

For the year ended December 31, 2024, intangible asset impairment charges were immaterial.

For the year ended December 31, 2023, the Company recognized a total of $66.9 million of intangible asset impairment charges, of which $36.1 million was recognized in cost of goods sold and $30.8 million was recognized in in-process research and development impairment charges. Cost of sales impairment charges for the year ended December 31, 2023 of $36.1 million primarily related to a reduction in promotional focus on LYVISPAH™, resulting in significantly lower than forecasted future cash flows. IPR&D impairment charges for the year ended December 31, 2023 of $30.8 million were related to one Affordable Medicines asset and one Specialty asset, both of which experienced adverse clinical trials results in the fourth quarter of 2023 and resulted in significantly lower than expected future cash flows.

For the year ended December 31, 2022, the Company recognized a total of $24.1 million of intangible asset impairment charges, of which $11.1 million was recognized in cost of goods sold and $13.0 million was recognized in in-process research and development impairment charges. Cost of sales impairment charges for the year ended December 31, 2022 of $11.1 million related to currently marketed products of which (i) one product experienced significant price erosion during 2022, resulting in significantly lower than expected future cash flows and negative margins, (ii) the supply agreement of one product was terminated during 2022 and therefore the asset was not recoverable and (iii) one product was no longer expected to be sold to a key customer, and therefore the asset was not recoverable. IPR&D impairment charges for the year ended December 31, 2022 of $13.0 million related to (i) one asset that experienced a delay in its expected launch date and (ii) one asset that experienced significant expected price erosion, both of which resulted in significantly lower than expected future cash flows.

Amortization expense related to intangible assets for the years ended December 31, 2024, 2023 and 2022 was $173.6 million, $163.2 million and $172.1 million, respectively.

The following table presents future amortization expense for the next five years and thereafter, excluding $14.3 million of IPR&D intangible assets (in thousands):


	Future Amortization
2025	$	163,086
2026	115,497
2027	95,063
2028	75,677
2029	68,909
Thereafter	199,845
Total	$	718,077