Note 10 - Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 10 — SEGMENT INFORMATION

During the three and nine month periods ended September 30, 2014, the Company reported results for the following two reportable segments:

- Prescription Pharmaceuticals

- Consumer Health

The Prescription Pharmaceuticals segment manufactures, markets and distributes general and disease specific ophthalmic drugs and injectable pharmaceuticals, primarily in niche markets, as well as certain antidotes, antiallergics, anti-infectives, vaccines, and controlled substances for pain management and anesthesia, in various dosage forms.  The Prescription Pharmaceuticals segment also includes the operating results of the Company’s subsidiary in India (AIPL). The Consumer Health segment manufactures, markets and distributes a line of branded OTC dry eye treatment products, a portfolio of private label OTC ophthalmic products and other consumer health products. Prior to the three months ended June 30, 2014 the Company managed the business as three distinct reporting segments; Ophthalmics, Hospital Drugs and Injectables, and Contract Services, which were realigned as a result of the Hi-Tech acquisition to more closely align our reporting structure with the operations and management of the business.

Financial information about the Company’s reportable segments is based upon internal financial reports that aggregate certain operating information. The Company’s CEO and Chief Operating Decision Maker (CODM), as defined in ASC Topic 280, Segment Reporting, Raj Rai oversees operational assessments and resource allocations based upon the results of the Company’s reportable segments, which have available and discrete financial information.

Selected financial info by reportable segment is presented below (in thousands). The Company has restated prior periods such as the three and nine month periods ended September 30, 2013, to reflect the new segment reporting.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues:
Prescription Pharmaceuticals	$	120,022		$	72,677		$	338,101		$	205,185
Consumer Health		12,710			9,215			36,002			27,573
Total revenues		132,732			81,892			374,103			232,758
Gross Profit:
Prescription Pharmaceuticals		45,524			38,372			158,820			109,138
Consumer Health		6,210			5,325			19,241			15,796
Total gross profit		51,734			43,697			178,061			124,934
Operating expenses		57,776			21,509			144,400			61,906
Operating income (loss)		(6,042	)		22,188			33,661			63,028
Other (expense)		(12,497	)		(2,206	)		(22,196	)		(6,807	)
Income (loss) from continuing operations before income taxes	$	(18,539	)	$	19,982		$	11,465		$	56,221

The Company manages its reportable segments to the gross profit level and manages its operating and other costs on a company-wide basis. Inter-segment activity at the revenue and gross profit level has been minimal. The Company does not identify total assets by segment for internal purposes, as the Company’s CODM does not assess performance, make strategic decisions, or allocate resources based on assets.