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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2023

10. Goodwill and Intangible Assets

The following tables summarizes the changes in the carrying amount of goodwill:


	Amount
Balance as of December 31, 2022	$	133,695
Measurement period adjustments from BDSI Acquisition		162
Balance as of September 30, 2023	$	133,857

The Company’s goodwill resulted from the BDSI Acquisition. Refer to Note 4, Acquisitions.

The following table sets forth the cost, accumulated amortization, and carrying amount of intangible assets as of September 30, 2023 and December 31, 2022:


		September 30, 2023						December 31, 2022
	Amortization Period (Years)		Cost		Accumulated Amortization		Carrying Amount		Cost		Accumulated Amortization		Carrying Amount
Belbuca	4.8	$	360,000	$	(114,973)	$	245,027	$	360,000	$	(58,428)	$	301,572
Nucynta Products ⁽¹⁾	8.5		521,170		(368,865)		152,305		521,170		(319,628)		201,542
Symproic	9.6		70,000		(11,110)		58,890		70,000		(5,646)		64,354
Elyxyb	—		—		—		—		5,000		(5,000)		—
Total intangibles		$	951,170	$	(494,948)	$	456,222	$	956,170	$	(388,702)	$	567,468

The following table presents amortization expense recognized in cost of product revenues for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
		2023		2022		2023		2022
Belbuca	$	18,850	$	18,848	$	56,545	$	39,581
Nucynta Products ⁽¹⁾		15,646		16,795		49,237		50,385
Symproic		1,821		1,821		5,464		3,825
Elyxyb		—		88		—		185
Total amortization expense	$	36,317	$	37,552	$	111,246	$	93,976

As of September 30, 2023, the remaining amortization expense expected to be recognized is as follows:


Years ended December 31,	Belbuca		Nucynta Products ⁽¹⁾		Symproic		Total
2023	$	18,848	$	13,845	$	1,821	$	34,514
2024		75,393		55,384		7,285		138,062
2025		75,393		55,384		7,285		138,062
2026		75,393		27,692		7,285		110,370
2027		—		—		7,285		7,285
Thereafter		—		—		27,929		27,929
Remaining amortization expense	$	245,027	$	152,305	$	58,890	$	456,222

(1)

During the three months ended September 30, 2023, the FDA granted New Patient Population exclusivity for Nucynta IR which extends the period of U.S. exclusivity for Nucynta IR to July 3, 2026, resulting in an extension of the estimated useful life of the underlying intangible asset from 8.0 years to 8.5 years. This change in estimate resulted in a decrease of amortization expense of $1,149 and an increase in net income of $855 during the three months ended September 30, 2023. The impact to earnings per share — basic and earnings per share — diluted was $0.03 and $0.02, respectively, during the three months ended September 30, 2023.