Inventory

3 Months Ended

Mar. 31, 2025


Note 6:			Inventory

The components of inventory are summarized as follows:


(In millions)	As of March 31, 2025		As of December 31, 2024
Raw materials	$	306.4	$	317.8
Work in process	1,717.0		1,882.8
Finished goods	367.9		353.8
Total inventory	$	2,391.3	$	2,554.4

Balance Sheet Classification:
Inventory	$	2,273.9	$	2,460.5
Investments and other assets	117.4		93.9
Total inventory	$	2,391.3	$	2,554.4

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

As a result of our acquisition of Reata in September 2023 we recorded a fair value step-up adjustment related to the acquired inventory of SKYCLARYS of approximately $1.3 billion. This fair value step-up adjustment is being amortized to cost of sales within our condensed consolidated statements of income as the inventory is sold, which we expect will be sold or used by the end of 2028. For the three months ended March 31, 2025 and 2024, amortization from the fair value step-up adjustment was approximately $51.4 million and $44.1 million, respectively. For additional information on our acquisition of Reata, please read Note 2, Acquisitions, to our consolidated financial statements included in our 2024 Form 10-K.