Segment Information

9 Months Ended

Sep. 30, 2019

During the three and nine month periods ended September 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 September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Revenues, net:
Prescription Pharmaceuticals	$	155,568		$	148,469		$	461,962		$	484,933
Consumer Health	20,676			17,156			58,210			55,699
Total revenues, net	176,244			165,625			520,172			540,632

Gross Profit:
Prescription Pharmaceuticals	62,133			50,231			167,361			197,025
Consumer Health	9,269			7,031			25,538			23,744
Total gross profit	71,402			57,262			192,899			220,769

Operating expenses	62,634			133,242			336,980			413,330

OPERATING INCOME/(LOSS)	8,768			(75,980		)	(144,081		)	(192,561		)

Other expenses, net	(27,355		)	(12,559		)	(65,384		)	(36,261		)

(Loss) before income taxes	$	(18,587	)	$	(88,539	)	$	(209,465	)	$	(228,822	)

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 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 nine month periods ended September 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 September 30, 2019			Three Months Ended September 30, 2018			Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2018
Region	Amount		% of Total Revenues	Amount		% of Total Revenues	Amount		% of Total Revenues	Amount		% of Total Revenues
Domestic	$	171,986	97.6%	$	161,858	97.7%	$	510,228	98.1%	$	529,598	98.0%
Foreign	4,258		2.4%	3,767		2.3%	9,944		1.9%	11,034		2.0%
Total Revenues	$	176,244	100.0%	$	165,625	100.0%	$	520,172	100.0%	$	540,632	100.0%