Intangible Assets

9 Months Ended

Sep. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]


5.	Intangible Assets

Intangible assets with finite lives consist primarily of patents, technological know-how, computer software, and technology rights. Technology rights refer to the intellectual property (“IP”) associated with Etorel® (nintedanib, ethanesulfonate soft capsules), which were obtained upon the successful transfer of the marketing authorization holder following approval by the PRC’s National Medical Products Administration (the “NMPA”) in March 2025, and the commercial sales of Etorel® commenced in June 2025. As of September 30, 2025, the Company recognized the total consideration for the Etorel® technology rights in the amount of RMB 35.0 million, or approximately $4.9 million, based on the September 30, 2025 spot exchange rate.

The gross carrying amounts and accumulated amortization of the Company’s intangible assets with determinable lives as of September 30, 2025 and December 31, 2024 were as follows (in thousands):


	September 30, 2025
	Gross carrying amount		Accumulated amortization			Intangible assets, net
Intangible assets with finite lives:
Technological know-how	$	428	$	(320	)	$	108
Computer software		333		(161	)		172
Technology rights		4,926		(359	)		4,567
Total intangible assets	$	5,687	$	(840	)	$	4,847


	December 31, 2024
	Gross carrying amount		Accumulated amortization			Intangible assets, net
Intangible assets with finite lives:
Technological know-how	$	423	$	(303	)	$	120
Computer software		278		(125	)		153
Total intangible assets	$	701	$	(428	)	$	273

Intangible assets are carried at cost less accumulated amortization and impairment, if applicable, and the amortization expense is recorded in operating expenses. The weighted average amortization period for the intangible assets was 7.2 years as of September 30, 2025, compared to 4.0 years as of December 31, 2024.

Amortization expense was $170,000 and $10,000 for the three months ended September 30, 2025 and 2024, respectively. Amortization expense was $404,000 and $26,000 for the nine months ended September 30, 2025 and 2024, respectively. Based on finite-lived intangible assets recorded as of September 30, 2025, the estimated future amortization expense is as follows (in thousands):


	Estimated amortization expense
2025	$	172
2026		686
2027		682
2028		653
2029		652
Thereafter		2,002
Total	$	4,847