Segment Information

3 Months Ended

Mar. 31, 2020

The Company has two operating segments, which constitute the Company’s two reportable segments and the Company’s CEO is the Chief Operating Decision Maker (“CODM”), as defined in ASC Topic 280 - Segment Reporting. Our performance is assessed and resources allocated by the CODM based on 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 CODM 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 March 31,
	2020		2019
Revenues, net:
Prescription Pharmaceuticals	$	179,244	$	148,015
Consumer Health	25,449		17,856
Total revenues, net	204,693		165,871

Gross Profit:
Prescription Pharmaceuticals	77,159		45,443
Consumer Health	17,385		8,070
Total gross profit	94,544		53,513

Operating expenses	341,462		118,996

OPERATING (LOSS)	(246,918)		(65,483)

Other expenses, net	(33,254)		(15,278)

(Loss) before income taxes	$	(280,172)	$	(80,761)

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 month periods ended March 31, 2020 and 2019. 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 March 31, 2020					Three Months Ended March 31, 2019
Region	Amount		% of Total Revenues	Amount		% of Total Revenues
Domestic	$	201,834	98.6%	$	164,134	99.0%
Foreign	2,859		1.4%	1,737		1.0%
Total Revenues	$	204,693	100.0%	$	165,871	100.0%