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Goodwill and Other Intangible Assets | 12 Months Ended
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Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | 7. Goodwill and Other Intangible Assets Goodwill There were no goodwill carrying amounts in the consolidated balance sheets as of June 30, 2023 and 2022. The carrying amount of goodwill by reportable segment and changes during the year ended June 30, 2022 are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Rx Segment |  | Consumer Health Segment |  | Consolidated
​ | ​ | (In thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance as of June 30, 2021 | ​ | $ | 57,165 | ​ | $ | 8,637 | ​ | $ | 65,802
Goodwill impairment | ​ |  | (57,165) | ​ |  | (8,637) | ​ |  | (65,802)
Balance as of June 30, 2022 | ​ | $ | — | ​ | $ | — | ​ | $ | —
​ During the year ended June 30, 2022, the Company’s market capitalization significantly declined. The decline was considered a qualitative factor that led management to reassess whether an impairment had occurred. Management’s evaluation indicated that the goodwill related to its reporting units in both the Rx and Consumer Health segments were potentially impaired. The Company then performed a quantitative impairment test by calculating the fair value of the reporting unit and compared that amount to its carrying value. Significant assumptions inherent in the valuation methodologies include, but were not limited to prospective financial information, growth rates, terminal value, discount rates and comparable multiples from publicly traded companies in our industry. The decline in market capitalization was an indicator of increased risk thereby increasing the discount rates in the valuation models. The Company determined the fair value of the reporting unit utilizing the discounted cash flow model. Using a risk adjusted weighted-average discount rate, the fair value of the reporting units was less than its carrying value. The Company recognized an impairment charge of $57.2 million in the Rx Segment, associated with the Cerecor and Neos acquisition and a $8.6 million impairment charge in the Consumer Health Segment related to the goodwill associated with the Innovus Acquisition. Other Intangible Assets The tables below provide the summary of the Company’s intangible assets as of June 30, 2023 and June 30, 2022, respectively. Carrying amounts are net of any impairment charges from prior periods. Intangible asset with zero net carrying amount at the end of a reporting period is not presented in the table of a future reporting period. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2023
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Weighted-
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Net | ​ | Average
​ | ​ | Carrying | ​ | Accumulated | ​ | ​ | ​ | ​ | Carrying | ​ | Remaining
​ |  | Amount |  | Amortization |  | Impairment |  | Amount |  | Life (in years)
​ | ​ | (In thousands)
Definite-lived intangibles: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Acquired product technology right | ​ | $ | 42,176 | ​ | $ | (10,881) | ​ | $ | — | ​ | $ | 31,295 |  | 11.49
Acquired technology right | ​ | ​ | 30,200 | ​ | ​ | (4,054) | ​ | ​ | — | ​ | ​ | 26,146 | ​ | 14.75
Acquired product distribution rights | ​ |  | 9,182 | ​ |  | (4,678) | ​ |  | (2,975) | ​ |  | 1,529 |  | 1.00
​ | ​ | ​ | 81,558 | ​ | ​ | (19,613) | ​ | ​ | (2,975) | ​ | ​ | 58,970 | ​ | 12.67
Indefinite-lived intangibles: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Acquired in-process R&D | ​ | ​ | 2,600 | ​ | ​ | — | ​ | ​ | (2,600) | ​ | ​ | — | ​ | Indefinite-lived
​ | ​ | ​ | 2,600 | ​ | ​ | — | ​ | ​ | (2,600) | ​ | ​ | — | ​ | ​
Total | ​ | $ | 84,158 | ​ | $ | (19,613) | ​ | $ | (5,575) | ​ | $ | 58,970 |  | 12.67
​ ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2022
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Weighted-
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Average
​ | ​ | Carrying | ​ | Accumulated |  | ​ | ​ | ​ | ​ | Net Carrying | ​ | Remaining
​ |  | Amount |  | Amortization |  | Impairment | ​ | Amount |  | Life (in years)
​ | ​ | (In thousands)
Definite-lived intangibles: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Acquired product technology right | ​ | ​ | 45,400 | ​ | ​ | (7,667) | ​ | ​ | (3,224) | ​ | ​ | 34,509 | ​ | 12.33
Acquired technology right | ​ | ​ | 30,200 | ​ | ​ | (2,278) | ​ | ​ | — | ​ | ​ | 27,922 | ​ | 15.75
Acquired product distribution rights | ​ | ​ | 11,354 | ​ | ​ | (3,581) | ​ |  | (2,172) | ​ | ​ | 5,601 | ​ | 7.60
Other intangible assets | ​ | ​ | 4,666 | ​ | ​ | (3,004) | ​ | ​ | (1,662) | ​ | ​ | — | ​ | —
​ | ​ | ​ | 91,620 | ​ | ​ | (16,530) | ​ | ​ | (7,058) | ​ | ​ | 68,032 | ​ | 13.35
Indefinite-lived intangibles: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Acquired in-process R&D | ​ |  | 2,600 | ​ |  | — | ​ | ​ | — | ​ |  | 2,600 | ​ | Indefinite-lived
​ | ​ | ​ | 2,600 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,600 | ​ | ​
Total | ​ | $ | 94,220 | ​ | $ | (16,530) | ​ | $ | (7,058) | ​ | $ | 70,632 | ​ | 13.35
​ The following table summarizes the estimated future amortization expense to be recognized over the next five years and periods thereafter: ​
​ | ​ | ​ | ​
​ |  | June 30,
​ | ​ | (In thousands)
2024 | ​ | $ | 6,518
2025 | ​ | ​ | 4,989
2026 | ​ | ​ | 4,989
2027 | ​ | ​ | 4,989
2028 | ​ | ​ | 4,989
Thereafter | ​ | ​ | 32,496
Total future amortization expense | ​ | $ | 58,970
​ Acquired Product Technology Rights The acquired Product technology rights are related to the rights to production, supply and distribution agreements of various products pursuant to the acquisitions of Pediatric Portfolio in November 2019 and the Neos Acquisition in March 2021. Karbinal® ER. The Company acquired and assumed all rights and obligations pursuant to the Supply and Distribution Agreement, as Amended, with Tris for the exclusive rights to commercialize Karbinal® ER in the United States (the “Tris Karbinal Agreement”). The Tris Karbinal Agreement’s initial term terminates in August of 2033, with an optional initial 20-year extension. Poly-Vi-Flor and Tri-Vi-Flor. The Company acquired and assumed all rights and obligations pursuant to a Supply and License Agreement and various assignment and release agreements, including a previously agreed to Settlement and License Agreements (the “Poly-Tri Agreements”) for the exclusive rights to commercialize Poly-Vi-Flor and Tri-Vi-Flor in the United States. ADHD Portfolio. As part of the Neos Acquisition, the Company acquired developed product technology for the production and sale of Adzenys XR-ODT and Cotempla XR-ODT. The formulations for the ADHD products are protected by patented technology. The estimated economic life of these proprietary technologies is 17 years. Acquired Technology Right TRRP Technology. As part of the Neos Acquisition, the Company acquired Time Release Resin Particle (“TRRP”) proprietary technology, which is a proprietary drug delivery technology protected by the Company as a trade secret that allows the Company to modify the drug release characteristics of each of its respective products. The TRRP technology underlines each of Neos’ core products and can potentially be used in future product development initiatives as well. Acquired Product Distribution Rights (and customer list) In connection with the Innovus Acquisition, the Company obtained 35 products with a combination of over 300 registered trademarks and/or patent rights and customer lists. As of June 30, 2022, the customer list intangible asset was fully amortized. During the fiscal year ended June 30, 2023, this intangible asset was impaired by $3.0 million due to the discontinuance of products in the Consumer Health Segment. Acquired In-Process R&D IPR&D – NT0502. As part of the Neos Acquisition, the Company acquired in-process research and development associated with NT0502, a new chemical entity that is for the treatment of sialorrhea, which is excessive salivation or drooling. As this is an indefinite-lived intangible asset, this acquired asset remains an indefinite-lived asset until the completion or abandonment of the associated research and development efforts. If a product using this technology is eventually approved for commercial sale, at that time, the IPR&D will begin amortizing on a straight-line over the life of the product. During the fiscal year ended June 30, 2023, the Company fully impaired the IPR&D of NT0502 due to the termination of its development program. Other Other intangible assets consist of customer lists, trade names and other technology and licenses. Certain of the Company’s amortizable intangible assets include renewal options, extending the expected life of the asset. The renewal periods range between approximately 1 to 20 years depending on the license, patent or other agreement. Renewals are accounted for when they are reasonably assured. Intangible assets are amortized using the straight-line method over the estimated useful lives. Amortization expense of intangible assets was $6.1 million and $7.8 million during the years ended June 30, 2023 and 2022, respectively. The Company’s strategy is to continue building its portfolio of revenue-generating products by leveraging its commercial team’s expertise to build leading brands within large therapeutic and consumer health markets. As a result of focusing on building the portfolio of revenue-generating products, the Company decided to abandon active development of its NT0502 (N-desethyloxybutynin), a new chemical entity that is for the treatment of sialorrhea, which is excessive salivation or drooling. During the year ended June 30, 2023, the Company incurred an impairment charge of $2.6 million related to NT0502 and terminated the licensing agreement. The Company also terminated the license agreement with Cedars-Sinai Medical Center surrounding the Healight technology platform as an additional result of terminating the development of the Healight program. Further, the acquired product distribution rights from Innovus was impaired by $3.0 million due to discontinuance of products in the Consumer Health Segment. During the year ended June 30, 2022, in connection with the decision to discontinue commercializing or divesting certain products within the Rx Segment that have minimal revenue and gross margin contribution, the Company recorded $4.9 million impairment expense for the write-down of intangible assets consisting of (i) $2.6 million for AcipHex, (ii) $1.4 million for ZolpiMist, (iii) $0.5 million for Tussionex, (iv) $0.2 million for Cefaclor and (v) $0.2 million for the Neos tradename. Additionally, the Company’s Consumer Health Segment recorded an impairment of $2.2 million related to products no longer being marketed and products that have been underperforming.

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