v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

15. 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. 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 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®, XACDURO®, XERAVA® and ZEVTERA®, 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:

 

 

Three months ended June 30,

 

 

Six Months Ended June 30,

 

(In thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Total revenue

 

$

119,591

 

 

$

100,283

 

 

$

217,585

 

 

$

188,915

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold

 

 

22,349

 

 

 

10,590

 

 

 

37,956

 

 

 

19,432

 

Amortization of acquired intangible assets

 

 

6,626

 

 

 

6,547

 

 

 

13,180

 

 

 

13,022

 

Selling and marketing

 

 

10,335

 

 

 

8,147

 

 

 

19,837

 

 

 

16,218

 

General and administrative

 

 

24,236

 

 

 

18,265

 

 

 

47,172

 

 

 

37,685

 

Research and development - External services and expenses

 

 

2,463

 

 

 

6,782

 

 

 

5,069

 

 

 

9,833

 

Research and development - Internal expenses

 

 

2,727

 

 

 

1,201

 

 

 

5,362

 

 

 

2,546

 

Changes in fair values of equity method investments, net

 

 

131,834

 

 

 

(13,082

)

 

 

(25,816

)

 

 

467

 

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

 

 

29,153

 

 

 

(11,280

)

 

 

(4,422

)

 

 

54,019

 

Interest and dividend income

 

 

(7,599

)

 

 

(4,925

)

 

 

(18,586

)

 

 

(9,463

)

Interest expense

 

 

5,472

 

 

 

4,663

 

 

 

10,909

 

 

 

9,374

 

Other expense, net

 

 

15

 

 

 

777

 

 

 

381

 

 

 

1,773

 

Income tax expense (benefit), net

 

 

(24,600

)

 

 

8,910

 

 

 

23,368

 

 

 

16,905

 

Consolidated net income (loss)

 

$

(83,420

)

 

$

63,688

 

 

$

103,175

 

 

$

17,104