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Intangible assets and goodwill

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

17. Intangible assets and goodwill

Definite-lived intangibles

Definite lived intangible assets consisted of the following at December 31, 2023 and 2022:


		Ending Balance at				Foreign		Ending Balance at
Definite-lived		December 31,				currency		December 31,
intangibles assets, gross		2022		Additions		translation		2023
Emflaza	$	420,253	$	107,164	$	—	$	527,417
Waylivra		9,316		533		369		10,218
Tegsedi		7,109		5,839		374		13,322
Upstaza		89,550		—		—		89,550
Total definite-lived intangibles, gross	$	526,228	$	113,536	$	743	$	640,507


		Ending Balance at				Foreign		Ending Balance at
Definite-lived		December 31,				currency		December 31,
intangibles assets, accumulated amortization		2022		Amortization		translation		2023
Emflaza	$	(266,023)	$	(212,595)	$	—	$	(478,618)
Waylivra		(2,751)		(1,080)		(134)		(3,965)
Tegsedi		(1,709)		(1,498)		(104)		(3,311)
Upstaza		(3,420)		(7,462)		—		(10,882)
Total definite-lived intangibles, accumulated amortization	$	(273,903)	$	(222,635)	$	(238)	$	(496,776)

Total definite-lived intangibles, net							$	143,731

Marathon is entitled to receive contingent payments from the Company based on annual net sales of Emflaza beginning in 2018, up to a specified aggregate maximum amount over the expected commercial life of the asset. In accordance with the guidance for an asset acquisition, the Company records the milestone payment when it becomes payable to Marathon and increase the cost basis for the Emflaza rights intangible asset. For the year ended December 31, 2023, milestone payments of $107.2 million were recorded. These payments are being amortized over the remaining useful life of the Emflaza rights asset on a straight line basis. As of December 31, 2023, a milestone payable to Marathon of $52.7 million was recorded on the balance sheet within accounts payable and accrued expenses.

Akcea is also entitled to receive royalty payments subject to certain terms set forth in the Tegsedi-Waylivra Agreement related to sales of Waylivra and Tegsedi. In accordance with the guidance for an asset acquisition, the Company records royalty payments when they become payable to Akcea and increase the cost basis for the Waylivra and Tegsedi intangible assets, respectively. For the year ended December 31, 2023, royalty payments of $5.8 million and $0.5 million were recorded for Tegsedi and Waylivra, respectively. As of December 31, 2023, a royalty payable of $1.6 million and $0.4 million for Tegsedi and Waylivra, respectively, was recorded on the balance sheet within accounts payable and accrued expenses.

For the years ended December 31, 2023, 2022, and 2021, the Company recognized amortization expense of $222.6 million, $116.6 million, and $54.8 million respectively, related to the Emflaza rights, Waylivra, Tegsedi, and Upstaza intangible assets.

The estimated future amortization of the Emflaza rights, Waylivra, Tegsedi, and Upstaza intangible assets is expected to be as follows:


	As of December 31, 2023
2024	$	59,312
2025		10,512
2026		10,512
2027		10,512
2028 and thereafter		52,883
Total	$	143,731

The weighted average remaining amortization period of the definite-lived intangibles as of December 31, 2023 is 6.4 years.

Indefinite-lived intangibles

Indefinite lived intangible assets consisted of the following at December 31, 2023 and 2022:


		Ending Balance at				Reclass from				Foreign		Ending Balance at
Indefinite-lived		December 31,				Indefinite Lived to				currency		December 31,
intangibles assets		2022		Additions		Definite Lived		Impairment		translation		2023
Upstaza	$	235,766	$	—	$	—	$	—	$	—	$	235,766
PTC-FA		112,500		—		—		(112,500)		—		—
PTC-AS		105,300		—		—		(105,300)		—		—
Total indefinite-lived intangibles	$	453,566	$	—	$	—	$	(217,800)	$	—	$	235,766

Total intangible assets, net											$	379,497

In connection with the acquisition of the Company’s gene therapy platform from Agilis, the Company acquired rights to Upstaza, for the treatment of AADC deficiency. AADC deficiency is a rare CNS disorder arising from reductions in the enzyme AADC that result from mutations in the dopa decarboxylase gene. The gene therapy platform also includes PTC-FA, an asset targeting Friedreich ataxia, a rare and life-shortening neurodegenerative disease caused by a single defect in the FXN gene which causes reduced production of the frataxin protein. Additionally, the gene therapy platform includes two other programs targeting CNS disorders, including PTC-AS for Angelman syndrome, a rare, genetic, neurological disorder characterized by severe developmental delays.

In accordance with the acquisition method of accounting, the Company allocated the acquisition cost for the Agilis Merger to the underlying assets acquired and liabilities assumed, based upon the estimated fair values of those assets and liabilities at the date of acquisition. The Company classified the fair value of the acquired IPR&D as indefinite lived intangible assets until the successful completion or abandonment of the associated research and development efforts. As of December 31, 2022, the value allocated to the indefinite lived intangible assets was $453.6 million.

In May 2023, as part of the Company’s strategic portfolio prioritization, the Company decided to discontinue its preclinical and early research programs in its gene therapy platform, which included PTC-FA and PTC-AS. As a result, the Company determined that the PTC-FA and PTC-AS indefinite-lived intangible assets were fully impaired and recorded impairment expense of $217.8 million during the second quarter of 2023, which is recorded as intangible asset impairment in the statement of operations. As of December 31, 2023, the remaining indefinite lived intangible asset balance is $235.8 million, consisting solely of Upstaza, which the Company plans to continue to develop and commercialize.

The Company performed an annual test for its indefinite-lived intangible asset as of October 1, 2023 and concluded that no impairment exists as of December 31, 2023.

Goodwill

As a result of the Agilis Merger on August 23, 2018, the Company recorded $82.3 million of goodwill. There have been no changes to the balance of goodwill since the date of the Agilis Merger. Accordingly, the goodwill balance as of December 31, 2023 and 2022 was $82.3 million. The Company performed an annual impairment test for goodwill as of October 1, 2023. The Company’s single reporting unit had a negative carrying value and thus the Company determined there was no impairment of goodwill.