Segment Information

6 Months Ended

Jun. 30, 2019

During the three and six month periods ended June 30, 2019 and 2018, the Company reported results for the following two reportable segments:

- Prescription Pharmaceuticals

- Consumer Health

The Company’s Prescription Pharmaceuticals segment principally consists of generic and branded prescription pharmaceuticals products which span a broad range of indications as well as a variety of dosage forms including: sterile ophthalmics, injectables and inhalants, and non-sterile oral liquids, topicals and nasal sprays. The Company’s Consumer Health segment principally consists of animal health and over-the-counter ("OTC") products, both branded and private label. OTC products include, but are not limited to, a suite of products for the treatment of dry eye sold under the TheraTears^® brand name.

Financial information about the Company’s reportable segments is based upon internal financial reports that aggregate certain operating information. The Company’s Chief Operating Decision Maker (“CODM”), as defined in ASC 280 - Segment Reporting, who is also the CEO, 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 information by reportable segment is presented below (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Revenues, net:
Prescription Pharmaceuticals	$	158,379		$	172,163		$	306,394		$	336,464
Consumer Health	19,678			18,781			37,534			38,543
Total revenues, net	178,057			190,944			343,928			375,007

Gross Profit:
Prescription Pharmaceuticals	59,785			73,286			105,228			146,794
Consumer Health	8,199			7,993			16,269			16,713
Total gross profit	67,984			81,279			121,497			163,507

Operating expenses	155,350			172,445			274,346			280,088

Operating (loss)	(87,366		)	(91,166		)	(152,849		)	(116,581		)

Other expenses, net	(22,751		)	(13,090		)	(38,029		)	(23,702		)

(Loss) before income taxes	$	(110,117	)	$	(104,256	)	$	(190,878	)	$	(140,283	)

The Company manages its business segments to the gross profit level and manages its operating and other costs on a company-wide basis. Inter-segment activity at the gross profit level is minimal. The Company does not have discrete assets by segment, as certain manufacturing and warehouse facilities support more than one segment, and therefore does not report assets by segment. Financial information including revenues and gross profit from external customers by product or product line is not provided as to do so would be impracticable.

The following table sets forth the Company’s net revenues by geographic region for the three and six month periods ended June 30, 2019 and 2018. The Domestic region represents sales within the United States of America and its territories while the Foreign region represents sales within all other countries and territories (dollar amounts in thousands):



	Three Months Ended June 30, 2019			Three Months Ended June 30, 2018			Six Months Ended June 30, 2019			Six Months Ended June 30, 2018
Region	Amount		% of Total Revenues	Amount		% of Total Revenues	Amount		% of Total Revenues	Amount		% of Total Revenues
Domestic	$	174,109	97.8%	$	186,726	97.8%	$	338,243	98.3%	$	367,740	98.1%
Foreign	3,948		2.2%	4,218		2.2%	5,685		1.7%	7,267		1.9%
Total Revenues	$	178,057	100.0%	$	190,944	100.0%	$	343,928	100.0%	$	375,007	100.0%