Assets Held for Sale

9 Months Ended

Sep. 30, 2020

Assets Held for Sale

Assets Held for Sale

8.            Assets Held for Sale

During the nine months ended September 30, 2020, the Company classified 14 ANDAs as assets held for sale as it committed to plans to sell these assets within one year and actively market the assets in their current condition at a price that is reasonable in relation to their estimated fair value. The held for sale criteria were met during the nine months ended September 30, 2020. Assets held for sale are reported at the lower of cost or fair value less costs to sell and are recorded in a single line in the unaudited condensed consolidated balance sheets. The Company recorded an impairment of assets held for sale of $1.5 million in the nine months ended September 30, 2020. The Company reclassified the comparable balance sheet amounts related to these fourteen ANDAs in the amount of approximately $3.2 million as of December 31, 2019 from intangible assets to assets held for sale.

In July 2020, the Company entered into an agreement with Rubicon Research Private Limited (“Rubicon”) in which the Company sold and transferred the control of four U.S. FDA-approved ANDAs to Rubicon in exchange for $1.25 million in cash, which the Company received in July 2020. These ANDAs had a net book value of $1.25 million at the time of sale resulting on no gain or loss on the sale.

Assets held-for-sale at September 30, 2020 consists of the following:

(In thousands)	September 30, 2020		December 31, 2019
Cost of intangible assets	$	2,281	$	4,074
Accumulated amortization		(635)		(853)
Impairment of intangible assets		(1,348)		—
	$	298	$	3,221

In October 2020, the Company entered into an agreement with Chartwell in which the Company sold and transferred the control of 10 ANDAs to Chartwell in exchange for $1.0 million in cash, which the Company will receive in the fourth quarter of 2020. These ANDAs had a net book value of $0.3 million at the time of sale, resulting in a gain on sale of assets of $0.7 million in the fourth quarter of 2020.