Intangibles, Net and Goodwill

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangibles, Net

Finite-lived Intangible Assets

As of June 30, 2022, the Company's finite-lived intangible assets consisted of acquired ARIKAYCE R&D and the milestones paid to PARI Pharma GmbH (PARI) for the license to use PARI's Lamira® Nebulizer System (Lamira) for the delivery of ARIKAYCE to patients as a result of the FDA and EC approvals of ARIKAYCE in September 2018 and October 2020, respectively. The Company began amortizing its acquired ARIKAYCE R&D and PARI milestones intangible assets in

October 2018, over ARIKAYCE's initial regulatory exclusivity period of 12 years. Amortization of these assets during each of the next five years is estimated to be approximately $5.1 million per year.

Indefinite-lived Intangible Assets

As of June 30, 2022, the Company's indefinite-lived intangible assets consisted of acquired in process research and development (IPR&D) from the Business Acquisition (Note 13). Indefinite-lived intangible assets are not amortized.

A rollforward of the Company's intangible assets for the six months ended June 30, 2022 and June 30, 2021 is as follows (in thousands):



Intangible Asset	December 31, 2021		Additions		Amortization		June 30, 2022
Acquired ARIKAYCE R&D	$	42,439	$	—	$	(2,425)	$	40,014
Acquired IPR&D	29,600		—		—		29,600
PARI milestones	1,770		—		(101)		1,669
	$	73,809	$	—	$	(2,526)	$	71,283

Intangible Asset	December 31, 2020		Additions		Amortization		June 30, 2021
Acquired ARIKAYCE R&D	$	47,289	$	—	$	(2,425)	$	44,864

PARI milestones	1,972		—		(101)		1,871
	$	49,261	$	—	$	(2,526)	$	46,735

Goodwill

The Company's goodwill balance of $136.1 million as of June 30, 2022, resulted from the Business Acquisition (Note 13).