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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2023

Note 10. Goodwill and Intangible Assets

The table below shows the weighted-average life, original cost, accumulated amortization, and net book value by major intangible asset classification:


	Weighted-Average			Accumulated
	Life (Years)	Original Cost		Amortization		Net Book Value

	(in thousands)
Definite-lived intangible assets
BAQSIMI^®product rights⁽¹⁾	24	$	591,338	$	6,159	$	585,179
IMS (UK) international product rights⁽²⁾	10		8,462		8,462		—
Patents	12		486		372		114
Land-use rights	39		2,540		799		1,741
Subtotal	23		602,826		15,792		587,034
Indefinite-lived intangible assets
Trademark	*		29,225		—		29,225
Goodwill - Finished pharmaceutical products	*		3,092		—		3,092
Subtotal	*		32,317		—		32,317
As of September 30, 2023	*	$	635,143	$	15,792	$	619,351


	Weighted-Average			Accumulated
	Life (Years)	Original Cost		Amortization		Net Book Value

	(in thousands)
Definite-lived intangible assets
IMS (UK) international product rights⁽²⁾	10	$	8,462	$	5,430	$	3,032
Patents	12		486		362		124
Land-use rights	39		2,540		749		1,791
Subtotal	11		11,488		6,541		4,947
Indefinite-lived intangible assets
Trademark	*		29,225		—		29,225
Goodwill - Finished pharmaceutical products	*		3,126		—		3,126
Subtotal	*		32,351		—		32,351
As of December 31, 2022	*	$	43,839	$	6,541	$	37,298

^* Intangible assets with indefinite lives have an indeterminable average life.

⁽¹⁾	See Note 3.

⁽²⁾	In June 2023, the Company recorded an impairment related to its IMS (UK) international product rights in the amount of $2.7 million. The Company recorded the impairment in the cost of revenue line in its condensed consolidated statement of operations for the nine months ended September 30, 2023

Goodwill

The changes in the carrying amounts of goodwill are as follows:


	September 30,		December 31,
	2023		2022

	(in thousands)
Beginning balance	$	3,126	$	3,313
Currency translation		(34)		(187)
Ending balance	$	3,092	$	3,126

Amortization

As of September 30, 2023, the expected amortization expense for all intangible assets during the next five fiscal years ended December 31 and thereafter is as follows:


	(in thousands)
2023	$	6,180
2024		24,718
2025		24,718
2026		24,718
2027		24,718
Thereafter		481,982
Total amortizable intangible assets		587,034
Indefinite-lived intangibles		32,317
Total intangibles (net of accumulated amortization)	$	619,351

Primatene^® Trademark

In January 2009, the Company acquired the exclusive rights to the trademark, domain name, website and domestic marketing, distribution and selling rights related to Primatene MIST^®, an over-the-counter bronchodilator product, recorded at the allocated fair value of $29.2 million, which is its carrying value as of September 30, 2023.

The trademark was determined to have an indefinite life. In determining its indefinite life, the Company considered the following: the expected use of the intangible; the longevity of the brand; the legal, regulatory and contractual provisions that affect their maximum useful life; the Company’s ability to renew or extend the asset’s legal or contractual life without substantial costs; effects of the regulatory environment; expected changes in distribution channels; maintenance expenditures required to obtain the expected future cash flows from the asset; and considerations for obsolescence, demand, competition and other economic factors.

BAQSIMI^® Product Rights

As discussed in Note 3, in June 2023, the Company acquired the BAQSIMI^® product rights. BAQSIMI^® is an emergency nasal spray used to treat severe hypoglycemia. The BAQSIMI^® product rights intangible asset is amortized over its estimated useful life of 24 years.

In determining the BAQSIMI^® product rights’ useful life, the Company considered the following: the expected use of the intangible asset; the longevity of the brand; the legal, regulatory and contractual provisions that affect their maximum useful life; the Company’s ability to renew or extend the asset’s legal or contractual life without substantial costs; effects of the regulatory environment; expected changes in distribution channels; maintenance expenditures required to obtain the expected future cash flows from the asset; and considerations for obsolescence, demand, competition and other economic factors.