Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Asset

The following table provides details of the carrying amount of our intangible asset:

	December 31,
(In thousands)	2020		2019
Finite-lived intangible asset	$	102,500	$	—
Accumulated amortization	(3,942)		—
Indefinite-lived IPR&D intangible asset	—		102,500
Net carrying value	$	98,558	$	102,500

Our intangible asset 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 December 31, 2020, the carrying value of the intangible asset will be amortized over its estimated remaining useful life of 12.5 years as follows:

(In thousands)	Amortization Expense
2021	$	7,885
2022	7,885
2023	7,885
2024	7,885
2025	7,885
Thereafter	59,133
Total	$	98,558