Inventory

12 Months Ended

Dec. 31, 2025


Note 6:			Inventory

The components of inventory are summarized as follows:


	As of December 31,
(In millions)	2025		2024
Raw materials	$	293.4	$	317.8
Work in process	1,595.2		1,882.8
Finished goods	424.9		353.8
Total inventory	$	2,313.5	$	2,554.4

Balance Sheet Classification:
Inventory	$	2,168.1	$	2,460.5
Investments and other assets	145.4		93.9
Total inventory	$	2,313.5	$	2,554.4

Long-term inventory is included in investments and other assets within our 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 as the inventory is sold or research and development expense as the inventory is used for clinical purposes within our consolidated statements of income. We expect this amount to be fully amortized by the end of 2028. For the years ended December 31, 2025, 2024 and 2023, amortization from the fair value step-up adjustment was approximately $240.8 million, $230.0 million and $31.5 million, respectively. For the years ended December 31, 2025 and 2024, amortization from the fair value step-up adjustment includes approximately $23.9 million and $48.5 million, respectively, of inventory used for clinical purposes, which is reflected in 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 $29.2 million, $101.9 million and $124.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.