Amneal Pharmaceuticals, Inc.AMRX
Amneal Pharmaceuticals, Inc. Goodwill & Intangibles Disclosure
Goodwill and Other Intangible Assets
The changes in goodwill by segment were as follows (in thousands):
| Affordable Medicines | Specialty | AvKARE | Total | ||||||||||||||||||||
| Balance as of December 31, 2023 | $ | 162,852 | $ | 366,312 | $ | 69,465 | $ | 598,629 | |||||||||||||||
| Currency translation | (1,193) | — | — | (1,193) | |||||||||||||||||||
| Balance as of December 31, 2024 | 161,659 | 366,312 | 69,465 | 597,436 | |||||||||||||||||||
| Currency translation | (1,966) | — | — | (1,966) | |||||||||||||||||||
| Balance as of December 31, 2025 | $ | 159,693 | $ | 366,312 | $ | 69,465 | $ | 595,470 | |||||||||||||||
Annual Goodwill Impairment Test
The Company performed a qualitative annual goodwill impairment assessment for the Affordable Medicines, Specialty, and AvKARE reporting units as of the October 1, 2025 measurement date. In performing this assessment, the Company identified and evaluated the significance of relevant key factors, events and circumstances that could affect the fair values and/or carrying amounts of its reporting units. These factors included external factors such as macroeconomic, industry and market conditions, and entity-specific factors, such as the Company's actual and expected financial performance. Additionally, the Company considered the results of its most recent quantitative goodwill impairment test for its Affordable Medicines, Specialty, and AvKARE reporting units performed as of October 1, 2024. Based on the results of the Company’s qualitative assessment, it was determined that it was more likely than not that the fair values of each of the Affordable Medicines, Specialty, and AvKARE reporting units were greater than their respective carrying amounts as of October 1, 2025, and therefore no impairment charges have been recognized, and no quantitative testing was required.
The Company determined that no events or changes in circumstances occurred between October 1, 2025 to December 31, 2025 that indicated the fair value of any reporting unit may have declined below its carrying amount. Accordingly, no indicators of goodwill impairment were identified during the year ended December 31, 2025. The Company did not record any goodwill impairment charges for the years ended December 31, 2025, 2024, and 2023.
Intangible assets were comprised of the following (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Weighted- Average Amortization Period (in years) | Cost | Accumulated Amortization | Net | Cost | Accumulated Amortization | Net | |||||||||||||||||||||||||||||||||||
Amortizing intangible assets: | |||||||||||||||||||||||||||||||||||||||||
| Product rights | 6.3 | $ | 1,519,694 | $ | (977,819) | $ | 541,875 | $ | 1,550,469 | $ | (856,914) | $ | 693,555 | ||||||||||||||||||||||||||||
| Other intangible assets | 1.9 | 82,700 | (69,177) | 13,523 | 83,200 | (58,678) | 24,522 | ||||||||||||||||||||||||||||||||||
Total | 1,602,394 | (1,046,996) | 555,398 | 1,633,669 | (915,592) | 718,077 | |||||||||||||||||||||||||||||||||||
| In-process research and development | 8,100 | — | 8,100 | 14,300 | — | 14,300 | |||||||||||||||||||||||||||||||||||
| Total intangible assets | $ | 1,610,494 | $ | (1,046,996) | $ | 563,498 | $ | 1,647,969 | $ | (915,592) | $ | 732,377 | |||||||||||||||||||||||||||||
Amortization expense related to definite-lived intangible assets for the years ended December 31, 2025, 2024 and 2023 was $166.3 million, $173.6 million and $163.2 million, respectively.
The Company reviews intangible assets with finite lives for recoverability whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. Indefinite-lived intangible assets, including in-process research and development intangible assets, are tested for impairment if impairment indicators arise and, at a minimum, annually.
For the year ended December 31, 2025, the Company recognized $22.8 million of charges in cost of goods sold. The charges primarily related to a Specialty segment product right for which the Company significantly reduced the cash flow forecast after receipt of a complete response letter dated July 22, 2025 from the FDA regarding a supplemental new drug application. No impairment loss was recognized during the year ended December 31, 2025 for in-process research and development intangible assets.
For the year ended December 31, 2024, intangible asset impairment charges were immaterial.
For the year ended December 31, 2023, the Company recognized a total of $66.9 million of intangible asset impairment charges, of which $36.1 million was recognized in cost of goods sold and $30.8 million was recognized in in-process research and development impairment charges. Cost of sales impairment charges for the year ended December 31, 2023 of $36.1 million primarily related to a reduction in promotional focus on LYVISPAH™, resulting in significantly lower than forecasted future cash flows. IPR&D impairment charges for the year ended December 31, 2023 of $30.8 million were related to one Affordable Medicines asset and one Specialty asset, both of which experienced adverse clinical trials results in the fourth quarter of 2023 and resulted in significantly lower than expected future cash flows.
The following table presents future amortization expense for the next five years and thereafter, excluding $8.1 million of IPR&D intangible assets (in thousands):
| Future Amortization | |||||
| 2026 | $ | 114,842 | |||
| 2027 | 97,725 | ||||
| 2028 | 79,182 | ||||
| 2029 | 69,433 | ||||
| 2030 | 72,524 | ||||
| Thereafter | 121,692 | ||||
| Total | $ | 555,398 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.