
(In millions)	As of June 30, 2025		As of December 31, 2024
Raw materials	$	305.0	$	317.8
Work in process	1,641.9		1,882.8
Finished goods	478.0		353.8
Total inventory	$	2,424.9	$	2,554.4

Balance Sheet Classification:
Inventory	$	2,274.3	$	2,460.5
Investments and other assets	150.6		93.9
Total inventory	$	2,424.9	$	2,554.4

As a result of our acquisition of Reata in September 2023 we recorded a fair value step-up adjustment related to the acquired inventory of SKYCLARYS of approximately $1.3 billion. This fair value step-up adjustment is being amortized to cost of sales within our condensed consolidated statements of income as the inventory is sold or used for clinical purposes. We expect this amount to be fully amortized by the end of 2028. For the three and six months ended June 30, 2025, amortization from the fair value step-up adjustment was approximately $52.5 million and $103.9 million, respectively. For the three and six months ended June 30, 2024, amortization from the fair value step-up adjustment was approximately $90.1 million and $134.2 million, respectively, which includes approximately $46.0 million of inventory used for clinical purposes, which is reflected in research and development expense within our condensed consolidated statements of income. For additional information on our acquisition of Reata, please read Note 2, Acquisitions, to our consolidated financial statements included in our 2024 Form 10-K.