Segment Information

9 Months Ended

Sep. 30, 2019

Segment Information

Segment Information

11.   Segment Information

We currently operate as one operating segment with a focus on the development and commercialization of products to address the unmet needs of patients with chronic and life-threatening conditions. Our Chief Executive Officer, as our chief operating decision maker, manages and allocates resources to the operations of our company on a consolidated basis. This enables our Chief Executive Officer to assess our overall level of available resources and determine how best to deploy these resources across functions, therapeutic areas, and research and development projects in line with our long-term company-wide strategic goals.

Net product sales, cost of product sales and gross profit for each of our commercial products were as follows (in millions):

	Three Months Ended September 30,
2019	Remodulin		Tyvaso		Orenitram		Unituxin		Adcirca		Total
Net product sales	$	168.3	$	110.8	$	62.0	$	30.1	$	30.3	$	401.5
Cost of product sales		5.5		6.9		3.5		4.1		13.0		33.0
Gross profit	$	162.8	$	103.9	$	58.5	$	26.0	$	17.3	$	368.5
2018
Net product sales	$	153.6	$	107.8	$	53.8	$	22.9	$	74.6	$	412.7
Cost of product sales		4.4		6.9		3.9		4.2		32.5		51.9
Gross profit	$	149.2	$	100.9	$	49.9	$	18.7	$	42.1	$	360.8
	Nine Months Ended September 30,
2019	Remodulin		Tyvaso		Orenitram		Unituxin		Adcirca		Total
Net product sales	$	479.6	$	324.2	$	174.4	$	80.1	$	79.4	$	1,137.7
Cost of product sales		16.1		14.8		12.3		11.4		34.2		88.8
Gross profit	$	463.5	$	309.4	$	162.1	$	68.7	$	45.2	$	1,048.9
2018
Net product sales	$	439.9	$	308.3	$	155.5	$	60.7	$	282.0	$	1,246.4
Cost of product sales		10.8		14.3		9.9		9.9		121.9		166.8
Gross profit	$	429.1	$	294.0	$	145.6	$	50.8	$	160.1	$	1,079.6

Geographic revenues are determined based on the country in which our customers (distributors) are located. Total revenues from external customers by geographic area are as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
United States	$	359.4	$	389.0	$	1,028.4	$	1,177.1
Rest-of-World(1)		42.1		23.7		109.3		69.3
Total	$	401.5	$	412.7	$	1,137.7	$	1,246.4

(1) Primarily Europe.

We recorded revenue from two specialty pharmaceutical distributors in the United States. Total revenue from these two specialty pharmaceutical distributors as a percentage of total revenues are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Distributor 1	53	%	52	%	55	%	50	%
Distributor 2	21	%	18	%	21	%	17	%