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Intangible Assets

12 Months Ended

Jun. 30, 2022

Note 8. Intangible Assets

Intangible assets, net as of June 30, 2022 and June 30, 2021, consisted of the following:


	Weighted	Gross Carrying Amount				Accumulated Amortization				Intangible Assets, Net
	Avg. Life	June 30,		June 30,		June 30,		June 30,		June 30,		June 30,
(In thousands)	(Yrs.)	2022		2021		2022		2021		2022		2021
Definite-lived:
KUPI product rights	—	$	—	$	83,955	$	—	$	(4,198)	$	—	$	79,757
KUPI trade name	2		2,920		2,920		(2,920)		(2,920)		—		—
KUPI other intangible assets	15		19,000		19,000		(8,362)		(7,095)		10,638		11,905
Silarx product rights	15		20,000		20,000		(6,222)		(4,889)		13,778		15,111
Other product rights	7		16,242		35,918		(8,479)		(8,856)		7,763		27,062
Total definite-lived		$	58,162	$	161,793	$	(25,983)	$	(27,958)	$	32,179	$	133,835

Indefinite-lived:
KUPI in-process research and development	—	$	—	$	4,000	$	—	$	—	$	—	$	4,000
Total indefinite-lived			—		4,000		—		—		—		4,000
Total intangible assets, net		$	58,162	$	165,793	$	(25,983)	$	(27,958)	$	32,179	$	137,835

For the fiscal years ended June 30, 2022, 2021 and 2020, the Company recorded amortization expense of $12.9 million, $24.9 million and $32.0 million, respectively.

In November 2021, the Company announced the 2021 Restructuring Plan, which includes the phase out of two low-margin prescription products at its KUPI facility in Seymour, Indiana. The Company determined that the decision to discontinue these products along with continued competitive pressures in the market represent a “triggering event” and, therefore, performed an analysis to determine the potential impairment of certain long-lived assets, including its intangible assets. Based on the analysis, the Company recorded an impairment charge of $40.6 million related to the KUPI product rights intangible assets during the second quarter of Fiscal 2022. The impairment charge is primarily a result of the decline in net sales and gross margin of certain product lines acquired in connection with the KUPI acquisition.

In the fourth quarter of Fiscal 2022, the Company reviewed recent market trends and, consequently, anticipates additional competitive pressures on various key products within its intangible asset portfolio. Accordingly, the Company adjusted its expectations downward for these products, which represented a triggering event for several of its intangible assets. Prior to performing the impairment analysis, the Company reclassed $4.0 million of KUPI IPR&D assets into KUPI product rights as a result of the FDA approval of the drug application and expected commercialization of the product in Fiscal 2023. As a result of the impairment analysis, the Company recorded a full impairment of its KUPI product rights portfolio, totaling $39.1 million. In addition, the Company recorded impairment charges totaling $16.1 million related to the other product rights category of definite-lived intangible assets, which included the intangible assets associated with the distribution and supply agreement with Cediprof, Inc., the products acquired in Fiscal 2018 from a subsidiary of Endo International plc, the distribution and supply agreement with Sinotherapeutics, Inc., the license agreement with Andor Pharmaceuticals, LLC, and one of the products acquired in Fiscal 2018 from UCB.

Future annual amortization expense consists of the following:


(In thousands)	Amortization
Fiscal Year Ending June 30,	Expense
2023	$	4,455
2024		4,160
2025		3,966
2026		3,706
2027		3,560
Thereafter		12,332
	$	32,179