INTANGIBLE ASSETS AND GOODWILL

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The following table reflects the gross carrying amounts and net book values of intangible assets and goodwill as of September 30, 2020 and December 31, 2019 (dollar amounts in thousands):


	September 30, 2020					December 31, 2019
	Remaining Useful Life (In years)	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Impairment		Net Book Value
Products rights:
INDOCIN	11.6	$	154,100	$	(4,602)	$	149,498	$	—	$	—	$	—	$	—
SPRIX	6.6	39,000		(1,996)		37,004		—		—		—		—
CAMBIA	3.2	51,360		(34,879)		16,481		51,360		(31,027)		—		20,333
Zipsor	1.5	27,250		(23,797)		3,453		27,250		(22,044)		—		5,206
Oxaydo	Less than 1 year	300		(108)		192		—		—		—		—
NUCYNTA	—	—		—		—		1,019,978		(455,192)		(189,790)		374,996
Total Intangible Assets		$	272,010	$	(65,382)	$	206,628	$	1,098,588	$	(508,263)	$	(189,790)	$	400,535

Goodwill		$	9,008	$	—	$	9,008	$	—	$	—	$	—	$	—

Amortization expense was $5.6 million and $18.2 million for the three and nine months ended September 30, 2020, respectively, and $25.4 million and $76.3 million for the three and nine months ended September 30, 2019, respectively.

In connection with the Zyla Merger, the Company acquired identified intangible assets comprised of definite-lived product rights for INDOCIN, SPRIX Nasal Spray, and OXAYDO which are amortized on a straight-line basis over their respective estimated useful lives of 11.6 years, 6.6 years and less than one year. The respective fair values were determined to be $154.1 million, $39.0 million, and $0.3 million, as of the Zyla Merger date of May 20, 2020 (see Note 2, Acquisitions).

In addition, the Company recognized $9.0 million of goodwill related to the fair value of the underlying net tangible and identifiable intangible assets net of liabilities resulting from the Zyla Merger. Refer to “Note 2. Acquisitions” for additional details.

In February 2020, the Company divested its remaining rights, title and interest in and to the NUCYNTA franchise of products from the Company. The Company derecognized the remaining carrying value of $369.1 million of the NUCYNTA product rights in the first quarter of 2020.

The following table reflects future amortization expenses the Company expects for its intangible assets (in thousands):


Year Ending December 31,	Estimated Amortization Expense
2020 (remainder)	$	6,547
2021	26,004
2022	24,081
2023	23,337
2024	18,413
Thereafter	108,246
Total	$	206,628