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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One) 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                        to                       
Commission file number 001-10865
https://cdn.kscope.io/5072ed85efc1365bfaa1b1801fbc90e6-amag-20200331_g1.jpg
AMAG Pharmaceuticals, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware04-2742593
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
1100 Winter Street,Waltham,Massachusetts02451
(Address of Principal Executive Offices)(Zip Code)
(617498-3300
(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per share
AMAGNASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No 
As of May 6, 2020, there were 34,272,805 shares of the registrant’s Common Stock, par value $0.01 per share, outstanding.


Table of Contents
AMAG PHARMACEUTICALS, INC.
FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 2020
TABLE OF CONTENTS
 
 
 
 
 
9
  
  
 

2



Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
3



Table of Contents
AMAG PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(Unaudited)
 March 31, 2020December 31, 2019
ASSETS
Current assets:  
Cash and cash equivalents$54,455  $113,009  
Marketable securities70,288  58,742  
Accounts receivable, net106,484  94,163  
Inventories33,676  31,553  
Prepaid and other current assets25,734  19,100  
Total current assets290,637  316,567  
Property and equipment, net3,312  4,116  
Goodwill422,513  422,513  
Intangible assets, net13,783  23,620  
Operating lease right-of-use asset22,835  23,286  
Deferred tax assets  630  
Restricted cash495  495  
Total assets$753,575  $791,227  
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$16,520  $27,021  
Accrued expenses167,661  177,079  
Current portion of operating lease liability4,065  4,077  
Current portion of acquisition-related contingent consideration  17  
Total current liabilities188,246  208,194  
Long-term liabilities:  
Convertible notes, net
281,038  277,034  
Long-term operating lease liability19,433  19,791  
Other long-term liabilities1,120  89  
Total liabilities489,837  505,108  
Commitments and contingencies (Note O)
Stockholders’ equity:  
Preferred stock, par value $0.01 per share, 2,000,000 shares authorized; none issued
    
Common stock, par value $0.01 per share, 117,500,000 shares authorized; 34,266,256 and 33,999,081 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively
342  339  
Additional paid-in capital1,300,572  1,297,917  
Accumulated other comprehensive loss(3,787) (3,239) 
Accumulated deficit(1,033,389) (1,008,898) 
Total stockholders’ equity263,738  286,119  
Total liabilities and stockholders’ equity$753,575  $791,227  
The accompanying notes are an integral part of these condensed consolidated financial statements.
4



Table of Contents
AMAG PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(Unaudited)
 
Three Months Ended March 31,
20202019
Revenues:
Product sales, net$68,628  $75,729  
Other revenues33  75  
Total revenues68,661  75,804  
Costs and expenses:  
Cost of product sales24,359  18,477  
Research and development expenses11,180  18,066  
Acquired in-process research and development  74,856  
Selling, general and administrative expenses52,697  74,682  
Restructuring expenses  7,420  
Total costs and expenses88,236  193,501  
Operating loss (19,575) (117,697) 
Other income (expense):  
Interest expense(6,604) (6,450) 
Interest and dividend income477  1,586  
Other income1,311  340  
Total other expense, net(4,816) (4,524) 
Loss before income taxes(24,391) (122,221) 
Income tax expense (benefit) 100  (137) 
Net loss$(24,491) $(122,084) 
Basic and diluted net loss per share$(0.72) $(3.54) 
Weighted average shares outstanding used to compute net loss per share (basic and diluted)34,104  34,469  

The accompanying notes are an integral part of these condensed consolidated financial statements.
5



Table of Contents
AMAG PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(IN THOUSANDS)
(Unaudited)

 Three Months Ended March 31,
 20202019
Net loss$(24,491) $(122,084) 
Other comprehensive loss:  
Holding (losses) gains associated with marketable securities arising during period, net of tax(548) 609  
Total comprehensive loss$(25,039) $(121,475) 

The accompanying notes are an integral part of these condensed consolidated financial statements.
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AMAG PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(IN THOUSANDS, EXCEPT SHARES)
(Unaudited)


Common Stock    
Shares    AmountAdditional Paid-in CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal Stockholders' Equity
Balance at December 31, 201933,999,081  $339  $1,297,917  $(3,239) $(1,008,898) $286,119  
Net shares issued in connection with the vesting of restricted stock units, net of withholdings267,175  3  (1,213) —  —  (1,210) 
Non-cash equity based compensation—  —  3,868  —  —  3,868  
Unrealized losses on securities, net of tax—  —  —  (548) —  (548) 
Net loss—  —  —  —  (24,491) (24,491) 
Balance at March 31, 202034,266,256  $342  $1,300,572  $(3,787) $(1,033,389) $263,738  



Common Stock    
Shares    Amount    Additional Paid-in Capital    Accumulated Other Comprehensive Loss    Accumulated Deficit    Total Stockholders' Equity
Balance at December 31, 201834,606,760   $346   $1,292,736     $(3,985)    $(542,442)    $746,655  
Net shares issued in connection with the exercise of stock options and vesting of restricted stock units, net of withholdings214,868  2  (1,606) —  —  (1,604) 
Repurchase of common stock pursuant to the share repurchase program(1,074,800) (11) (13,719) —  —  (13,730) 
Non-cash equity based compensation—  —  4,873  —  —  4,873  
Unrealized gains on securities, net of tax—  —  —  609  —  609  
Net loss—  —  —  —  (122,084) (122,084) 
Balance at March 31, 201933,746,828  $337  $1,282,284  $(3,376) $(664,526) $614,719  

The accompanying notes are an integral part of these condensed consolidated financial statements.

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AMAG PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(Unaudited)
Three Months Ended March 31,
 20202019
Cash flows from operating activities:  
Net loss$(24,491) $(122,084) 
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:  
Depreciation and amortization10,318  4,375  
Provision for bad debt expense223  (16) 
Amortization of premium/discount on purchased securities4  (27) 
Write-down of inventory616    
Non-cash equity-based compensation expense 3,868  4,873  
Non-cash IPR&D expense  18,029  
Amortization of debt discount and debt issuance costs4,004  3,783  
Gains on marketable securities, net(9)   
Change in fair value of contingent consideration  (6) 
Deferred income taxes630  458  
Non-cash lease expense451    
Gain on sale of assets(1,409)   
Changes in operating assets and liabilities: 
Accounts receivable, net(12,547) (7,971) 
Inventories(2,770) (2,973) 
Prepaid and other current assets(6,490) (21,580) 
Accounts payable and accrued expenses(19,671) 31,432  
Other assets and liabilities664  1,799  
Net cash used in operating activities(46,609) (89,908) 
Cash flows from investing activities:  
Proceeds from sales or maturities of marketable securities11,255  27,945  
Purchase of marketable securities(23,345) (14,815) 
Net proceeds from the sale of assets1,440    
Capital expenditures(68) (1,794) 
Net cash (used in) provided by investing activities(10,718) 11,336  
Cash flows from financing activities:  
Payments to settle convertible notes  (21,417) 
Payments of contingent consideration(17) (17) 
Payments for repurchases of common stock  (13,730) 
Proceeds from the exercise of common stock options  33  
Payments of employee tax withholding related to equity-based compensation(1,210) (1,636) 
Net cash used in financing activities(1,227) (36,767) 
Net decrease in cash, cash equivalents, and restricted cash(58,554) (115,339) 
Cash, cash equivalents, and restricted cash at beginning of the period113,504  253,751  
Cash, cash equivalents, and restricted cash at end of the period$54,950  $138,412  
Supplemental data for cash flow information:
Cash (refunded) paid for taxes$(256) $78  
Cash paid for interest$  $267  
Non-cash investing and financing activities:
Settlement of note receivable in connection with Perosphere acquisition$  $10,000  
Right-of-use assets obtained in exchange for lease liabilities$  $918  
The accompanying notes are an integral part of these condensed consolidated financial statements.
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AMAG PHARMACEUTICALS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
A.  DESCRIPTION OF BUSINESS
AMAG Pharmaceuticals, Inc., a Delaware corporation, was founded in 1981. We are a pharmaceutical company focused on bringing innovative products to patients with unmet medical needs by leveraging our development and commercial expertise to invest in and grow our pharmaceutical products and product candidates across a range of therapeutic areas. Our currently marketed products support the health of patients in the areas of hematology and maternal and women’s health, including Feraheme® (ferumoxytol injection) for intravenous use, Makena® (hydroxyprogesterone caproate injection) auto-injector, Intrarosa® (prasterone) vaginal inserts and Vyleesi® (bremelanotide injection). In addition to our approved products, our portfolio includes two product candidates, AMAG-423 (digoxin immune fab (ovine)), which is being studied for the treatment of severe preeclampsia, and ciraparantag, which is being studied as an anticoagulant reversal agent.
In December 2019, we completed a review of our product portfolio and strategy. This strategic review resulted in our intention to divest Intrarosa® (prasterone) and Vyleesi® (bremelanotide injection), as announced in January 2020. We determined that these anticipated actions did not result in the related assets meeting the criteria to be recorded as held for sale at March 31, 2020.

Throughout this Quarterly Report on Form 10-Q, AMAG Pharmaceuticals, Inc. and our consolidated subsidiaries are collectively referred to as “the Company,” “AMAG,” “we,” “us,” or “our.”
COVID-19
The global spread of COVID-19 has created significant volatility, uncertainty and economic disruption on a global scale, including in the United States, where we market our products, where our operations and employees reside and where we conduct clinical trials, as well as in Europe and other countries where we are conducting our AMAG-423 Phase 2b/3a study. The COVID-19 pandemic did not significantly impact our financial results during the three months ended March 31, 2020, but will likely impact our financial results in future periods in 2020. The extent to which the COVID-19 pandemic impacts our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict. While there have been no material impairments to date, any prolonged material disruptions to our sales, supply, research and development efforts and/or operations could negatively impact the Company’s business, operations and/or financial results.

B.  BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
These condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments necessary for a fair statement of our financial position and results of operations for the interim periods presented. Such adjustments consisted only of normal recurring items. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”).
In accordance with GAAP for interim financial reports and the instructions for Form 10-Q and the rules of the Securities and Exchange Commission, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. Our accounting policies are described in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2019 (our “Annual Report”). Interim results are not necessarily indicative of the results of operations for the full year. These interim financial statements should be read in conjunction with our Annual Report.
Principles of Consolidation
The accompanying condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
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Use of Estimates and Assumptions
The preparation of our condensed consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent liabilities. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities, equity and the amount of revenues and expenses. The full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations and financial condition, including product sales revenue; product sales allowances and accruals; allowance for expected credit losses; marketable securities; inventory; fair value estimates used to assess impairment of long-lived assets, including goodwill and other intangible assets; debt obligations; certain accrued liabilities, including clinical trial accruals; equity-based compensation expense; and income taxes, inclusive of valuation allowances, will depend on future developments that are highly uncertain, including new information that may emerge concerning COVID-19 and the actions taken to contain or treat its impact, as well as the economic impact on local, regional and national customers and markets. We have made estimates of the impact of COVID-19 within our financial statements and there may be changes to those estimates in future periods. Actual results could differ materially from these estimates.
Restricted Cash
We classified $0.5 million of our cash as restricted cash, a non-current asset on the balance sheet, as of March 31, 2020 and December 31, 2019. This amount represented the security deposit delivered to the landlord of our Waltham, Massachusetts headquarters.
Concentrations and Significant Customer Information
Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities, and accounts receivable. We currently hold our excess cash primarily in institutional money market funds, corporate debt securities, U.S. treasury and government agency securities and certificates of deposit. As of March 31, 2020, we did not have a material concentration in any single investment.

Our operations are located entirely within the U.S. We focus primarily on developing, manufacturing, and commercializing our products and product candidates. The following table sets forth customers who represented 10% or more of our total revenues for the three months ended March 31, 2020 and 2019:
Three Months Ended March 31,
20202019
McKesson Corporation40 %37 %
AmerisourceBergen Drug Corporation31 %27 %
Cardinal Health12 %13 %
 
Our net accounts receivable primarily represent amounts due for products sold directly to wholesalers, distributors and specialty pharmacies. Accounts receivable for our products are recorded net of reserves for estimated chargeback obligations, prompt payment discounts and any allowance for expected credit losses. At March 31, 2020 and December 31, 2019, three customers accounted for 10% or more of our accounts receivable balances, representing approximately 87% and 85% in the aggregate of our total accounts receivable, respectively.
We are currently dependent on a single supplier for certain of our manufacturing processes, including for Feraheme drug substance (produced in two separate facilities) and a single supplier for our Makena auto-injector product. We have been and may continue to be exposed to a significant loss of revenue from the sale of our products in the event that our suppliers and/or manufacturers are not able to fulfill demand for any reason.
Credit Losses
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“Topic 326”). We adopted Topic 326 effective January 1, 2020 using a modified retrospective approach. The adoption of Topic 326 did not have a material impact on our condensed consolidated financial statements and accordingly, no transition adjustment was recorded at the adoption date. Under Topic 326, we estimate expected credit losses for our trade receivables held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. We also evaluate any impaired marketable securities against the new impairment model within Topic 326 to determine whether any loss or allowance for credit loss should be recorded at the reporting date.

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C.  REVENUE RECOGNITION
Product Revenue and Allowances and Accruals

The following table provides information about disaggregated revenue by products for the three months ended March 31, 2020 and 2019 (in thousands):
 Three Months Ended March 31,
20202019
Product sales, net
Feraheme$44,433  $40,015  
Makena21,777  31,257  
Intrarosa3,169  4,414  
Other(751) 43  
Total product sales, net$68,628  $75,729  

Total gross product sales were offset by product sales allowances and accruals for the three months ended March 31, 2020 and 2019 as follows (in thousands):
 Three Months Ended March 31,
 20202019
Gross product sales$232,741  $211,718  
Provision for product sales allowances and accruals:  
Contractual adjustments143,175  108,884  
Governmental rebates20,938  27,105  
Total164,113  135,989  
Product sales, net$68,628  $75,729  

The following table summarizes the product revenue allowance and accrual activity for the three months ended March 31, 2020 (in thousands):
 ContractualGovernmental 
 AdjustmentsRebatesTotal
Balance at December 31, 2019$95,221  $41,319  $136,540  
Provisions related to current period sales147,235  18,175  165,410  
Adjustments related to prior period sales(4,060) 2,762  (1,298) 
Payments/returns relating to current period sales(95,284)   (95,284) 
Payments/returns relating to prior period sales(37,969) (29,646) (67,615) 
Balance at March 31, 2020$105,143  $32,610  $137,753  


D. MARKETABLE SECURITIES

As of March 31, 2020 and December 31, 2019, our marketable securities consisted of securities classified as available-for-sale in accordance with accounting standards which provide guidance related to accounting and classification of certain investments in marketable securities.

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The following is a summary of our marketable securities as of March 31, 2020 and December 31, 2019 (in thousands):
March 31, 2020
GrossGrossEstimated
AmortizedUnrealizedUnrealizedFair
CostGainsLossesValue
Short-term marketable securities:*
Corporate debt securities$44,888  $42  $(101) $44,829  
Certificates of deposit4,800      4,800  
Commercial paper1,000      1,000  
Total short-term marketable securities$50,688  $42  $(101) $50,629  
Long-term marketable securities:**
Corporate debt securities$18,858  $29  $(228) $18,659  
Certificates of deposit1,000      1,000  
Total long-term marketable securities$19,858  $29  $(228) $19,659  
Total marketable securities$70,546  $71  $(329) $70,288  

* Represents marketable securities with a remaining maturity of less than one year.
** Represents marketable securities with a remaining maturity of one to three years classified as short-term on our condensed consolidated balance sheets.
December 31, 2019
GrossGrossEstimated
AmortizedUnrealizedUnrealizedFair
CostGainsLossesValue
Short-term marketable securities:*
Corporate debt securities$46,186  $140  $(2) $46,324  
U.S. treasury and government agency securities2,750      2,750  
Certificates of deposit1,500      1,500  
Total short-term marketable securities$50,436  $140  $(2) $50,574  
Long-term marketable securities:**
Corporate debt securities$8,016  $152  $  $8,168  
Total long-term marketable securities8,016  152    8,168  
Total marketable securities$58,452  $292  $(2) $58,742  

* Represents marketable securities with a remaining maturity of less than one year.
** Represents marketable securities with a remaining maturity of one to three years classified as short-term on our condensed consolidated balance sheets.

Impairments and Unrealized Gains and Losses on Marketable Securities
We adopted Topic 326 effective January 1, 2020. Under Topic 326, we evaluate any impaired marketable securities against the new impairment model within Topic 326 to determine whether any loss or allowance for credit loss should be recorded at March 31, 2020.

We did not recognize any allowance for credit losses on our condensed consolidated statements of operations related to our marketable securities during the three months ended March 31, 2020. As of March 31, 2020, we had no losses in an unrealized loss position for more than one year. Based on the contractual terms and credit ratings of these investments, we expect to recover the entire amortized cost basis of each security. We do not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases. We considered various factors, including the length of time that each security was in an unrealized loss position and our ability and intent to hold these securities until the recovery of their amortized cost basis occurs. Future events may occur, or additional information may become available, which may cause us to identify credit losses where we do not expect to receive cash flows sufficient to recover the entire amortized cost basis of a security and may necessitate the recording of future realized losses on securities in our portfolio. Significant losses in the estimated fair values of our marketable securities could have a material adverse effect on our earnings in future periods.
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As of March 31, 2019, we had no material losses in an unrealized loss position for more than one year and did not recognize any other-than-temporary impairment losses in our condensed consolidated statements of operations related to our marketable securities during the three months ended March 31, 2019.

E.  FAIR VALUE MEASUREMENTS
The following tables present information about our assets and liabilities that we measure at fair value on a recurring basis and indicate the level within the fair value hierarchy of the valuation techniques utilized to determine such fair value as of March 31, 2020 and December 31, 2019 (in thousands):
 Fair Value Measurements at March 31, 2020 Using:
  Quoted Prices in Significant
  Active Markets forSignificant OtherUnobservable
  Identical AssetsObservable InputsInputs
 Total(Level 1)(Level 2)(Level 3)
Assets:
Cash equivalents$1,890  $1,890  $  $  
Corporate debt securities63,488    63,488    
Certificates of deposit5,800    5,800    
Commercial paper1,000    1,000    
Total assets$72,178  $1,890  $70,288  $  
 
 Fair Value Measurements at December 31, 2019 Using:
  Quoted Prices in Significant
  Active Markets forSignificant OtherUnobservable
  Identical AssetsObservable InputsInputs
 Total(Level 1)(Level 2)(Level 3)
Assets:    
Cash equivalents$13,732  $13,732  $  $  
Corporate debt securities54,492    54,492    
U.S. treasury and government agency securities2,750    2,750    
Certificates of deposit1,500    1,500    
Total assets$72,474  $13,732  $58,742  $  
Liabilities:    
Contingent consideration - MuGard$17  $  $  $17  
Total liabilities$17  $  $  $17  
 
Cash Equivalents
Our cash equivalents are classified as Level 1 assets under the fair value hierarchy as these assets have been valued using quoted market prices in active markets and do not have any restrictions on redemption. As of March 31, 2020 and December 31, 2019, cash equivalents were primarily comprised of funds in money market accounts.
Marketable Securities
Our marketable securities are classified as Level 2 assets under the fair value hierarchy as the values of these assets are primarily determined from independent pricing services, which normally derive security prices from recently reported trades for identical or similar securities, making adjustments based upon other significant observable market transactions. At the end of each reporting period, we perform quantitative and qualitative analysis of prices received from third parties to determine whether prices are reasonable estimates of fair value. After completing our analysis, we did not adjust or override any fair value measurements provided by our pricing services as of March 31, 2020. In addition, there were no transfers or reclassifications of any securities between Level 1 and Level 2 during the three months ended March 31, 2020.
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Debt
We estimate the fair value of our debt obligations using quoted market prices obtained from third-party pricing services, which are classified as Level 2 inputs. As of March 31, 2020, the estimated fair value of our 2022 Convertible Notes (as defined below) was $247.7 million, which differed from its carrying value. See Note Q, “Debt” for additional information on our debt obligations.

F.  INVENTORIES
Our major classes of inventories were as follows as of March 31, 2020 and December 31, 2019 (in thousands):
 March 31, 2020December 31, 2019
Raw materials$8,438  $5,211  
Work in process5,131  6,248  
Finished goods20,107  20,094  
Total inventories$33,676  $31,553  

G.  PROPERTY AND EQUIPMENT, NET
Property and equipment, net consisted of the following as of March 31, 2020 and December 31, 2019 (in thousands):
 March 31, 2020December 31, 2019
Computer equipment and software$1,568  $1,568  
Furniture and fixtures1,714  1,714  
Leasehold improvements4,985  4,984  
Laboratory and production equipment6,278  6,570  
Construction in progress236  656  
 14,781  15,492  
Less: accumulated depreciation(11,469) (11,376) 
Property and equipment, net$3,312  $4,116  
 
H.  GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill
During the first quarter, as a result of a number of business factors, including our market capitalization being below our carrying value and the potential impact of the COVID-19 pandemic, we performed a qualitative interim impairment assessment of our goodwill balance as of March 31, 2020. We determined that it was not more likely than not that the fair value of our reporting unit was less than its carrying value and therefore, did not perform a quantitative interim impairment test as of March 31, 2020. Our qualitative assessment was based on management’s estimates and assumptions, a number of which are dependent on external factors, including the severity and duration of the COVID-19 pandemic. To the extent actual results differ materially from these estimates and we experience further negative developments in subsequent periods, interim impairment assessments could be required, which could result in an impairment of goodwill.

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Intangible Assets
As of March 31, 2020 and December 31, 2019, our intangible assets consisted of the following (in thousands):