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GOODWILL AND INTANGIBLE ASSETS
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
Goodwill
As a result of the 2013 merger with BioSante Pharmaceuticals, Inc., the Company recorded goodwill of $1.8 million. As a result of the acquisition of WellSpring Pharma Services Inc. in 2018, the Company recorded goodwill of $1.7 million. From the acquisition of Novitium in 2021, the Company recorded goodwill of $24.6 million. As of June 30, 2024, the Company has two operating segments, which were also deemed the Company’s two reporting units, Generics, Established Brands, and Other reporting unit and the Rare Disease reporting unit. All of the goodwill is recorded in the Generics, Established Brands, and Other reporting unit.
Goodwill is reviewed for impairment at least annually, at October 31, or more frequently if a triggering event occurs between impairment testing dates. The Company’s impairment assessment begins with a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. Qualitative factors may include, macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity and Company specific events. If, based on the qualitative test, the Company determines that it is “more likely than not” that the fair value of a reporting unit is less than its carrying value, then we evaluate goodwill for impairment by comparing the fair value of our reporting unit to its respective carrying value, including its goodwill. If it is determined that it is “not likely” that the fair value of the reporting unit is less than its carrying value, then no further testing is required. There have been no events or changes in circumstances that would have reduced the fair value of the Generics, Established Brands, and Other reporting unit below its carrying value during the three and six months ended June 30, 2024 and 2023, no impairment charges have been recognized.
Intangible Assets
The components of definite-lived intangible assets and indefinite-lived intangible assets, other than goodwill, are as follows:
June 30, 2024December 31, 2023Remaining Weighted Average
Amortization
Period(1)
(in thousands)Gross Carrying
Amount		Accumulated
Amortization		Net Carrying Amount Gross Carrying
Amount		Accumulated
Amortization		Net Carrying Amount
Definite-Lived Intangible Assets:
Acquired ANDAs intangible assets$209,780 $(112,742)$97,038 $209,780 $(100,660)$109,120 4.8 years
NDAs and product rights244,871 (196,451)48,420 244,871 (184,861)60,010 2.8 years
Marketing and distribution rights17,157 (14,752)2,405 17,157 (14,271)2,886 2.5 years
Customer relationships24,900 (9,485)15,415 24,900 (7,707)17,193 4.3 years
Total Definite-Lived Intangible Assets496,708 (333,430)163,278 496,708 (307,499)189,209 4.1 years
Indefinite-Lived Intangible Assets:
In process research and development19,800 — 19,800 19,800 — 19,800 Indefinite
Total Intangible Assets, net$516,508 $(333,430)$183,078 $516,508 $(307,499)$209,009 
(1)Weighted average amortization period as of June 30, 2024.
Definite-lived intangible assets arising from business combinations and other asset acquisitions include intangibles such as Abbreviated New Drug Applications (“ANDAs”), New Drug Applications (“NDAs”) and product rights, marketing and distribution rights, customer relationships, and non-compete agreements. Definite-lived intangible assets are amortized over the estimated period during which the asset is expected to contribute directly or indirectly to future cash flows. Definite-lived intangible assets are stated at cost, net of amortization, and generally amortized over their remaining estimated useful lives, ranging from seven to ten years, based on the straight-line amortization method. In the case of certain NDAs and product rights assets, an accelerated amortization method is used to better match the anticipated economic benefits expected to be provided. Definite-lived intangible assets are tested for impairment when events or changes in circumstances indicate that these asset might be impaired.
Amortization expense for definite-lived intangibles was $13.0 million and $12.8 million for the three months ended June 30, 2024 and 2023, respectively. Amortization expense for definite-lived intangibles was $25.9 million and $25.7 million for the six months ended June 30, 2024 and 2023, respectively.
No impairment losses were recognized in the three and six months ended June 30, 2024 and 2023.
Indefinite-lived intangible assets other than goodwill include primarily In-Process Research & Development (“IPR&D”) projects. IPR&D intangible assets represent the fair value of technology acquired in a business combination or asset acquisition for which the technology projects are incomplete but have substance or alternative future use. When an IPR&D project is completed (generally upon receipt of regulatory approval), then the IPR&D will be accounted for as a definite-lived intangible asset.
Indefinite-lived intangible assets are not amortized, and the Company tests for impairment of indefinite-lived intangible assets when events or circumstances indicate that the carrying value of the assets may not be recoverable, and the Company performs an asset impairment analysis annually, as of October 31. No impairment losses were recognized in the three and six months ended June 30, 2024 and 2023, respectively.
Expected future amortization expense for definite-lived intangible assets is as follows:
(in thousands)
2024 (remainder of the year)$24,896 
202547,592 
202634,107 
202725,140 
202818,359 
2029 and thereafter13,184 
Total$163,278