Inventory

3 Months Ended

Mar. 31, 2026


Note 6:			Inventory

The components of inventory are summarized as follows:


(In millions)	As of March 31, 2026		As of December 31, 2025
Raw materials	$	278.7	$	293.4
Work in process	1,351.6		1,595.2
Finished goods	458.2		424.9
Total inventory	$	2,088.5	$	2,313.5

Balance Sheet Classification:
Inventory	$	1,949.0	$	2,168.1
Investments and other assets	139.5		145.4
Total inventory	$	2,088.5	$	2,313.5

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 as the inventory is sold or research and development expense as the inventory is used for clinical purposes within our condensed consolidated statements of income. We expect this amount to be fully amortized by the end of 2028. For the three months ended March 31, 2026 and 2025, amortization from the fair value step-up adjustment was approximately $107.6 million and $51.4 million, respectively. For the three months ended March 31, 2026, amortization from the fair value step-up adjustment includes approximately $56.8 million of inventory used for clinical purposes, which is reflected in research and development expense within our condensed consolidated statements of income. For additional information on our acquisition of Reata, please read Note 2, Acquisitions, to our consolidated financial statements included in our 2025 Form 10-K.