Inventory

12 Months Ended

Dec. 31, 2024


Note 6:			Inventory

The components of inventory are summarized as follows:


	As of December 31,
(In millions)	2024		2023
Raw materials	$	317.8	$	426.9
Work in process	1,882.8		1,926.8
Finished goods	353.8		255.4
Total inventory	$	2,554.4	$	2,609.1

Balance Sheet Classification:
Inventory	$	2,460.5	$	2,527.4
Investments and other assets	93.9		81.7
Total inventory	$	2,554.4	$	2,609.1

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

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. The fair value was determined based on the estimated selling price of the inventory, less the remaining manufacturing and selling costs and a normal profit margin on those manufacturing and selling efforts. This fair value step-up adjustment is being amortized to cost of sales within our consolidated statements of income as the inventory is sold, which is expected to be sold over a period of approximately 4 years from the acquisition date. For the years ended December 31, 2024 and 2023, amortization from the fair value step-up adjustment was approximately $230.0 million and $31.5 million, respectively. For the year ended December 31, 2024, amortization from the fair value step-up adjustment includes approximately $48.5 million of inventory used for clinical purposes, which is reflected within research and development expense within our consolidated statements of income. For additional information on our acquisition of Reata, please read Note 2, Acquisitions, to these consolidated financial statements.

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 $101.9 million, $124.4 million and $336.2 million for the years ended December 31, 2024, 2023 and 2022, 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.

For additional information on our collaboration with Eisai, please read Note 19, Collaborative and Other Relationships, to these consolidated financial statements.