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Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting

11. Segment Reporting

In accordance with FASB ASC Topic 280, Segment Reporting, management has determined that the Company operates in one business segment which is the development and commercialization of innovative medicines. All revenues for the years ended December 31, 2024, 2023 and 2022 were generated from customers in the United States.

The Company’s CODM is the CEO who uses the consolidated statement of operations to make decisions about allocating resources and assessing performance for the entire Company. Managing and allocating resources on a consolidated basis enables the CODM to assess the overall level of resources available and how to best deploy these resources across functions and research and development programs that are in line with the Company’s long-term company-wide strategic goals.

The key areas of focus by CODM for allocation of resources are revenues from each product, as well as operating expenses (cost of goods sold, license fees and royalties, research and development expense, selling, general and administrative expense, and other income or loss). While the CODM analyzes these categories, the area of focus is period over period fluxes and budget-to-actual variances to determine the right allocation of resources is attributed to the segment in order to ensure profitability is maximized.

The following table illustrates reported segment revenue, segment profit and significant segment expenses (in thousands):

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

NUPLAZID net revenue

 

$

609,385

 

 

$

549,248

 

 

$

517,235

 

DAYBUE net revenue

 

 

348,412

 

 

 

177,189

 

 

 

—

 

Total revenues

 

 

957,797

 

 

 

726,437

 

 

 

517,235

 

Less:

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

30,068

 

 

 

19,826

 

 

 

10,166

 

License fees and royalties

 

 

51,773

 

 

 

21,812

 

 

 

—

 

Research and development expense:

 

 

 

 

 

 

 

 

 

External research and development

 

 

194,539

 

 

 

170,036

 

 

 

189,832

 

Internal costs(1)

 

 

74,210

 

 

 

79,083

 

 

 

83,002

 

Upfront and milestone payments

 

 

34,500

 

 

 

102,500

 

 

 

88,741

 

Total research and development expense

 

 

303,249

 

 

 

351,619

 

 

 

361,575

 

Selling, general and administrative

 

 

488,428

 

 

 

406,559

 

 

 

369,090

 

Gain on sale of non-financial asset

 

 

(146,515

)

 

 

—

 

 

 

—

 

Interest income, net

 

 

(25,458

)

 

 

(17,234

)

 

 

(6,610

)

Other income

 

 

(1,823

)

 

 

(5,109

)

 

 

(3,542

)

Income tax expense

 

 

31,624

 

 

 

10,250

 

 

 

2,531

 

Consolidated net income

 

$

226,451

 

 

$

(61,286

)

 

$

(215,975

)

 

(1)
Includes personnel expenses and costs allocated to multiple research and development programs, including benefits, information technology, facilities and inventory.