Note 21. Assets Held for Sale

Cody API Business

In the first quarter of Fiscal 2019, the Company approved a plan to sell the Cody API business, which includes the manufacturing and distribution of active pharmaceutical ingredients for use in finished goods production. As a result of the plan, the Company recorded the assets of the Cody API business at fair value less costs to sell. The Company performed a fair value analysis which resulted in a $29.9 million impairment of the Cody Labs long-lived assets in Fiscal 2019.

The Company was unable to sell the Cody API business as an ongoing operation and intends to sell the equipment utilized by the Cody API business as well as the real estate upon receiving approval of the Company’s cocaine hydrochloride solution Section 505(b)(2) NDA application and to have Cody Labs cease all operations. As such, all property, plant and equipment associated with the Cody API business, totaling $6.7 million, are recorded in the assets held for sale caption in the Consolidated Balance Sheet as of June 30, 2019. The Company performed an additional fair value analysis which resulted in an additional $2.9 million impairment of the Cody API long-lived assets in the fourth quarter of Fiscal 2019. In July 2019, the Company completed the sale of the equipment associated with the Cody API business for approximately $3.0 million.

The following table summarizes the financial results of the Cody API business for the fiscal years ended June 30, 2019 and 2018:


	Fiscal Year Ended
	June 30,
(In thousands)	2019		2018
Net sales	$	3,139	$	2,696
Pretax loss attributable to Cody API business		(51,509)		(42,112)

The pretax loss attributable to the Cody API business during the fiscal year ended June 30, 2019 includes impairment charges totaling $32.8 million to adjust the long-lived assets to their fair value less costs to sell.

Townsend Road Facility

In Fiscal 2019, the Company entered into an agreement to sell the Townsend Road facility located in Philadelphia, Pennsylvania for $4.4 million. The carrying value of the property is included within the Assets Held for Sale line of the Consolidated Balance Sheet as of June 30, 2019. The Company discontinued distribution from its Townsend Road facility in January 2019. The Company intends to finalize the sale in the first quarter of Fiscal 2020.