Inventory

12 Months Ended

Dec. 31, 2023


Note 6:			Inventory

The components of inventory are summarized as follows:


	As of December 31,
(In millions)	2023		2022
Raw materials	$	426.9	$	413.2
Work in process	1,926.8		751.9
Finished goods	255.4		200.4
Total inventory	$	2,609.1	$	1,365.5

Balance Sheet Classification:
Inventory	$	2,527.4	$	1,344.4
Investments and other assets	81.7		21.1
Total inventory	$	2,609.1	$	1,365.5

We recorded approximately $1.3 billion of acquired inventory, which includes measurement period adjustments, related to SKYCLARYS as a result of our acquisition of Reata in September 2023. For additional information on our acquisition of Reata, please read Note 2, Acquisitions, to these consolidated financial statements.

Long-term inventory is included in investments and other assets in our consolidated balance sheets.

Write Downs and Other Charges

Inventory amounts written down as a result of excess, obsolescence or unmarketability are charged to cost of sales, and totaled $124.4 million, $336.2 million and $167.6 million for the years ended December 31, 2023, 2022 and 2021, respectively.

During the first quarter of 2022 we wrote-off approximately $275.0 million of inventory related to ADUHELM, as a result of the final NCD, which was recognized in cost of sales within our consolidated statements of income for the year ended December 31, 2022. We recognized approximately $136.0 million related to Eisai's 45.0% share of these charges in collaboration profit sharing/(loss reimbursement) within our consolidated statements of income for the year ended December 31, 2022.

During the fourth quarter of 2021 we wrote-off approximately $120.0 million of inventory in excess of forecasted demand related to ADUHELM, which was recognized in cost of sales within our consolidated statements of income for the year ended December 31, 2021. We have recognized approximately $59.0 million related to Eisai's 45.0% share of these charges in collaboration profit sharing/(loss reimbursement) within our consolidated statements of income for the year ended December 31, 2021.

As of December 31, 2023 and 2022, the carrying value of ADUHELM inventory was zero. In November 2023 we notified Neurimmune of our decision to terminate our collaboration and license agreement with Neurimmune and to discontinue the development and commercialization of ADUHELM.

For additional information on our collaboration with Eisai, please read Note 19, Collaborative and Other Relationships, to these consolidated financial statements. For additional information on the discontinuation of ADUHELM, please read Note 20, Investments in Variable Interest Entities, to these consolidated financial statements.