v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

14. Segment Reporting

We operate as a single operating and reportable segment, focused on creating value for our stockholders. We achieve this by maximizing the value of our respiratory royalty portfolio and growing our investments in innovative healthcare assets that address critical unmet medical needs.

Our Chief Executive Officer, as the chief operating decision-maker (“CODM”), evaluates the company’s financial performance and operational efficiency using consolidated net income (loss). This helps guide decisions related to commercial operations, product development, and regulatory compliance, ensuring resources are allocated effectively to support growth initiatives. Consolidated net income (loss) also helps inform reinvestment strategies to strengthen our market position and drive innovation.

The accounting policies of the segment are the same as those described in Note 1, “Description of Operations and Summary of Significant Accounting Policies”.

Our revenues are generated primarily from our collaborative arrangements and royalty payments from GSK, located in Great Britain. We also generate revenue from net product sales of GIAPREZA®, XERAVA®, and XACDURO®, as well as license and other revenues. Refer to Note 3, “Revenue Recognition”, for more information on our revenues for the periods presented.

Our long-term assets are located within the United States. The CODM does not review assets at a different level or category than the amounts disclosed in the consolidated balance sheets.

The table below presents the financial information used by the CODM to assess performance, which reconciles to the consolidated net income (loss):

 

 

Three months ended March 31,

 

(In thousands)

 

2025

 

 

2024

 

Total revenue

 

$

88,632

 

 

$

77,499

 

Less:

 

 

 

 

 

 

Cost of products sold

 

 

8,842

 

 

 

10,971

 

Amortization of acquired intangible assets

 

 

6,475

 

 

 

6,440

 

Selling and marketing

 

 

8,071

 

 

 

9,263

 

General and administrative

 

 

19,420

 

 

 

21,142

 

Research and development - External services

 

 

3,051

 

 

 

1,649

 

Research and development - Internal expenses

 

 

1,345

 

 

 

2,229

 

Changes in fair values of equity method investments, net

 

 

13,549

 

 

 

(35,342

)

Changes in fair values of equity and long-term investments, net

 

 

65,299

 

 

 

13,335

 

Interest and dividend income

 

 

(4,538

)

 

 

(4,399

)

Interest expense

 

 

4,711

 

 

 

5,851

 

Other expense, net

 

 

996

 

 

 

1,236

 

Income tax expense, net

 

 

7,995

 

 

 

8,592

 

Consolidated net income (loss)

 

$

(46,584

)

 

$

36,532