Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

The following table provides details of the carrying amount of our intangible assets (in thousands):

	September 30, 2020		December 31, 2019
Finite-lived intangible assets	$	102,500	$	—
Accumulated amortization	(1,971)		—
Indefinite-lived in-process research and development (IPR&D) intangible assets	—		102,500
Total intangible assets, net	$	100,529	$	102,500

Our intangible assets consist of worldwide development, commercialization and related intellectual property rights including patents and licenses for our product, Fintepla (fenfluramine; formerly referred to as ZX008), which at the time of our acquisition in October 2014 and as of December 31, 2019, was classified as an indefinite-lived IPR&D asset. Upon FDA approval of Fintepla in June 2020, this indefinite-lived asset was reclassified to a finite-lived intangible asset subject to amortization.

In July 2020, we commercially launched Fintepla and commenced amortization of this asset on a straight-line basis over its estimated useful life. Due to the inherent subjectivity of forecasting the timing in which the cash flows may be generated from this intangible asset over a long-term time horizon, we concluded the pattern of economic benefit cannot be reliably determined. As such, we elected to use the straight-line method of amortization for this intangible asset.

In estimating the useful life of the finite-lived Fintepla intangible asset, we considered the estimated period over which the asset will contribute directly or indirectly to our future cash flows, the strength of issued or licensed patents and related period of intellectual property protection, the availability of competitor products treating similar indications and the impact of patent expiry on the sustainability of future operating cash flows of the asset. Based on these factors, we estimated the useful life of the finite-lived intangible asset to be 13 years.

As of September 30, 2020, the estimated future amortization of intangible assets for the next five years and thereafter is as follows (in thousands):

	Estimated Amortization Expense
2020 (remaining 3 months)	$	1,971
2021	7,885
2022	7,885
2023	7,885
2024	7,885
Thereafter	67,018
Total	$	100,529