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Segment Reporting
6 Months Ended
Jun. 30, 2023
Segment Reporting  
Segment Reporting

Note 6. Segment Reporting

The Company’s business is the development, manufacture, and marketing of pharmaceutical products. The Company has identified two reporting segments that each report to the Chief Operating Decision Maker, or CODM, as defined in ASC 280, Segment Reporting. The Company’s performance is assessed and resources are allocated by the CODM based on the following two reportable segments:

Finished pharmaceutical products
APIs

The finished pharmaceutical products segment manufactures, markets and distributes Primatene MIST®, glucagon, enoxaparin, naloxone, phytonadione, lidocaine, epinephrine, various critical and non-critical care drugs, as well as certain contract manufacturing and contract research revenues. The API segment manufactures and distributes recombinant human insulin API and porcine insulin API for external customers and internal product development.

BAQSIMI® related revenues and cost of sales will be accounted for as a component of the finished pharmaceutical products segment, but as the transaction closed on June 30, 2023, no amounts were recorded in revenue or cost of sales in the three and six months ended June 30, 2023.

Selected financial information by reporting segment is presented below:

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2023

2022

2023

2022

(in thousands)

Net revenues:

    

    

    

    

    

    

    

    

 

Finished pharmaceutical products

$

142,866

$

120,123

$

278,876

$

236,669

API

 

2,846

3,344

6,858

7,166

Total net revenues

 

145,712

 

123,467

 

285,734

 

243,835

Gross profit (loss):

Finished pharmaceutical products

 

77,067

 

67,084

 

153,243

 

124,023

API

 

(4,329)

(3,728)

(6,665)

(4,841)

Total gross profit

 

72,738

 

63,356

 

146,578

 

119,182

Operating expenses

 

35,842

 

38,533

 

76,249

 

72,745

Income from operations

 

36,896

 

24,823

 

70,329

 

46,437

Non-operating income

 

(4,088)

 

(1,672)

 

(3,952)

 

5,747

Income before income taxes

$

32,808

$

23,151

$

66,377

$

52,184

The Company manages its business segments to the gross profit level and manages its operating and other costs on a company-wide basis. The Company does not identify total assets by segment for internal purposes, as the Company’s CODM does not assess performance, make strategic decisions, or allocate resources based on assets.

The amount of net revenues in the finished pharmaceutical product segment is presented below:

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2023

2022

2023

2022

(in thousands)

Finished pharmaceutical products net revenues:

    

    

    

    

    

    

    

 

Glucagon

$

27,276

$

11,795

$

52,972

$

22,779

Primatene MIST®

16,520

18,974

40,003

43,671

Epinephrine

16,714

18,119

36,805

33,275

Lidocaine

14,006

16,042

27,652

26,632

Phytonadione

17,855

13,381

25,568

23,856

Enoxaparin

 

7,872

 

9,031

 

17,739

19,155

Naloxone

5,102

7,193

10,059

14,606

Other finished pharmaceutical products

 

37,521

 

25,588

 

68,078

 

52,695

Total finished pharmaceutical products net revenues

$

142,866

$

120,123

$

278,876

$

236,669

The amount of depreciation and amortization expense included in cost of revenues, by reporting segment, is presented below:

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2023

2022

2023

2022

(in thousands)

Depreciation and amortization expense

    

    

    

    

    

    

    

    

 

Finished pharmaceutical products

$

2,081

$

2,059

$

4,527

$

3,853

API

 

982

 

937

 

1,935

1,885

Total depreciation and amortization expense

$

3,063

$

2,996

$

6,462

$

5,738

Net revenues and carrying values of long-lived assets by geographic regions are as follows:

Net Revenue

Long-Lived Assets

Three Months Ended

Six Months Ended

June 30, 

June 30, 

June 30, 

December 31, 

2023

2022

2023

2022

2023

2022

(in thousands)

United States

    

$

143,895

    

$

120,786

    

$

281,853

    

$

237,900

    

$

768,988

    

$

136,328

China

 

1,182

766

1,309

1,699

 

89,236

 

88,647

France

 

635

1,915

2,572

4,236

 

38,624

 

39,598

Total

$

145,712

$

123,467

$

285,734

$

243,835

$

896,848

$

264,573