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

15. SEGMENT REPORTING

We operate as a single operating and reportable segment, focused on creating value for our stockholders. We achieve this by maximizing the value of our respiratory royalty portfolio and growing our investments in innovative healthcare assets that address critical unmet medical needs.

Our Chief Executive Officer, as the chief operating decision-maker (“CODM”), evaluates the company’s financial performance and operational efficiency using consolidated net income. This helps guide decisions related to commercial operations, product development, and regulatory compliance, ensuring resources are allocated effectively to support growth initiatives. Consolidated net income also helps inform reinvestment strategies to strengthen our market position and drive innovation.

The accounting policies of the segment are the same as those described in Note 1, “Description of Operations and Summary of Significant Accounting Policies”.

Our revenues are generated primarily from our collaborative arrangements and royalty payments from GSK, located in Great Britain. We also generate revenue from net product sales of GIAPREZA®, XERAVA®, and XACDURO®, as well as license and other revenues. Refer to Note 3, “Revenue Recognition”, for more information on our revenues for the periods presented.

Our long-term assets are located within the United States. The CODM does not review assets at a different level or category than the amounts disclosed in the consolidated balance sheets.

The table below presents the financial information used by the CODM to assess performance, which reconcile to the consolidated net income:

 

 

Year Ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Total revenue

 

$

358,711

 

 

$

310,463

 

 

$

331,339

 

Less:

 

 

 

 

 

 

 

 

 

Cost of products sold - U.S.

 

 

10,921

 

 

 

7,535

 

 

 

2,488

 

Cost of products sold - Rest of the world

 

 

11,857

 

 

 

6,341

 

 

 

1,282

 

Cost of products sold - Amortization of inventory fair value adjustments

 

 

13,820

 

 

 

27,164

 

 

 

10,023

 

Cost of license revenue

 

 

—

 

 

 

1,600

 

 

 

—

 

Selling and marketing

 

 

31,441

 

 

 

30,739

 

 

 

6,886

 

General and administrative

 

 

84,249

 

 

 

67,493

 

 

 

56,652

 

Research and development - External services

 

 

7,408

 

 

 

20,051

 

 

 

24,666

 

Research and development - Internal expenses

 

 

6,246

 

 

 

13,871

 

 

 

16,766

 

Amortization of acquired intangible assets

 

 

25,902

 

 

 

21,784

 

 

 

5,581

 

Changes in fair values of equity method investments, net

 

 

64,253

 

 

 

(77,392

)

 

 

161,749

 

Changes in fair values of equity and long-term investments, net

 

 

59,161

 

 

 

(11,129

)

 

 

(8,462

)

Interest and dividend income

 

 

(19,141

)

 

 

(15,818

)

 

 

(6,369

)

Interest expense

 

 

22,209

 

 

 

19,157

 

 

 

15,789

 

Gain on sale of TRC

 

 

—

 

 

 

—

 

 

 

(266,696

)

Loss on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

20,662

 

Other expense, net

 

 

2,997

 

 

 

4,969

 

 

 

3,373

 

Income tax expense, net

 

 

13,996

 

 

 

14,376

 

 

 

66,687

 

Consolidated net income

 

$

23,392

 

 

$

179,722

 

 

$

220,262