v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information
Note 16. Segment Information
We operate in one operating segment, and therefore one reportable segment, focused on the global discovery, development and commercialization of proprietary therapeutics. We manage business activities on a consolidated basis through the development and commercialization of oncology and dermatology products, which are sold to U.S. and international customers. Our determination that we operate as a single operating segment is consistent with the financial information regularly reviewed by the chief operating decision maker for purposes of evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting for future periods. Our chief operating decision maker is the Chief Executive Officer.
The accounting policies for our single operating segment are the same as those described in the summary of significant accounting policies in our Annual Report on Form 10-K for the year ended December 31, 2025. Our single operating segment generates net sales from the development and commercialization of oncology and dermatology pharmaceutical products, which are developed by our research and development department, as well as from product royalties, milestone and contract revenues from the out-licensing of our intellectual property to third parties.
For our segment, the chief operating decision maker uses net income or loss, that also is reported on the condensed consolidated statements of operations as consolidated net income, to allocate resources (including employees, property, and financial resources), predominantly during the annual budget and forecasting process. The chief operating decision maker also uses consolidated net income or loss, along with non-financial inputs and qualitative information, to evaluate our performance, establish compensation, monitor budget versus actual results, and decide the level of investment in our various operating activities and other capital allocation activities. The measure of segment assets is reported on the condensed consolidated balance sheet as total consolidated assets.
Net income for our segment was as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Net sales$1,488,149 $1,059,414 $2,592,633 $1,981,688 
Product royalty revenues174,690 151,115 325,882 281,739 
Milestone and contract revenues11,200 5,000 28,200 5,000 
Total revenues1,674,039 1,215,529 2,946,715 2,268,427 
Costs, expenses and other:
Cost of sales (including definite-lived intangible amortization)104,957 78,766 209,480 151,954 
Contract dispute settlement— (242,251)— (242,251)
Research and development - internal1
268,615 236,686 528,791 465,031 
Research and development - external2
248,335 245,681 491,462 439,115 
Other research and development3
— 12,550 12,600 28,050 
Sales and marketing285,752 256,311 545,315 513,963 
General and administrative65,983 74,711 134,507 142,750 
Asset impairment and related disposal costs— — 23,214 — 
Loss on change in fair value of acquisition-related contingent consideration2,499 22,761 2,331 34,333 
Other segment items4
112,293 125,315 110,080 172,280 
Net income$585,605 $404,999 $888,935 $563,202 
1.Research and development - internal is comprised of internally generated costs such as salaries, travel, regulatory costs, lab costs, contracting, etc.
2.Research and development - external is comprised of specific program spend with external vendors (i.e. contract manufacturing organizations, contract research organizations and lab vendors for clinical, technical operations and toxicology services).
3.Other research and development is comprised of all other costs including certain one-time costs resulting from the acquisition of IPR&D assets and one-time development milestone expenses.
4.Other segment items is comprised of interest income, interest expense, realized and unrealized gain (loss) on equity investments, other, net, and provision for income taxes.
Total Revenues by Geographic Location
Total revenues by geographic region consisted of the following (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
United States$1,560,110 $1,132,353 $2,731,578 $2,113,910 
Europe105,131 78,826 197,560 147,438 
Other countries8,798 4,350 17,577 7,079 
Total revenues$1,674,039 $1,215,529 $2,946,715 $2,268,427 
Property and Equipment, Net by Geographic Location
Property and equipment, net by geographic location was as follows (in thousands):
June 30,
2026		December 31,
2025
United States$394,985 $406,829 
Switzerland301,442 309,802 
Other countries13,042 14,254 
Total property and equipment, net$709,469 $730,885