
(In millions)	As of June 30, 2026		As of December 31, 2025
Raw materials	$	308.0	$	293.4
Work in process	1,655.0		1,595.2
Finished goods	557.0		424.9
Total inventory	$	2,520.0	$	2,313.5

Balance Sheet Classification:
Inventory	$	2,384.3	$	2,168.1
Investments and other assets	135.7		145.4
Total inventory	$	2,520.0	$	2,313.5

As a result of our acquisition of Apellis in May 2026, we recorded approximately $712.0 million of acquired inventory related to SYFOVRE and EMPAVELI, inclusive of fair value step-up adjustments related to the acquired inventory of SYFOVRE and EMPAVELI totaling approximately $567.5 million. We expect these amounts to be fully amortized by the end of 2029. For the three and six months ended June 30, 2026, amortization from the fair value step-up adjustments, which was recorded as a component of cost of sales within our condensed consolidated statements of income, was approximately $69.7 million. For additional information on our acquisition of Apellis, please read Note 2, Acquisitions, to these condensed consolidated financial statements.

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. We expect this amount to be fully amortized by the end of 2028. For the three and six months ended June 30, 2026, amortization from the fair value step-up adjustment was approximately $133.1 million and $240.7 million, respectively, compared to $52.5 million and $103.9 million, respectively, in the prior year comparative periods. For the three and six months ended June 30, 2026, amortization from the fair value step-up adjustment includes approximately $37.5 million and $94.3 million, respectively, 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 2025 Form 10-K.

These fair value step-up adjustments are being amortized to cost of sales as the inventory is sold or to research and development expense as the inventory is used for clinical purposes within our condensed consolidated statements of income.